Full text of Federal Reserve Bulletin : April 1926
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BULLETIN APRIL, 1926 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Recent Banking Developments Business Conditions in the United StatesGold Reserves of Principal Countries WASHINGTON GOVERNMENT PRINTING - OFFICE 1020 FEDERAL SESEMYE BOARD Ex officio members: * D8 R. CKISSINGBE, Governor. EDMUND PLATT, Vice Governor. -ADOLPH C. MILLEK 8 CHARLES S. HAMLINO GEORGE R. JAMES, EDWARD H. CUNNINGHAM* A* W« MELLONJ Secretary of the Treasury•, Chairman. Je We MCINTOBHJ Comptroller of the Currency\ WALTER L, EDDY ? Secretary. WALTER WYATT, General Counsel J. Cs NOELLJ Assistant Secretary. E. Me MCCLELLAND, Assistant Secretary. W. M. IMLAY, Fiscal Agent Director, Division of Research and Statistics* Director, Division of Eo Ao GOLDENWEISER, Research and Statistics. CTie/, Division of Examination^ and Chief Federal Reserve Examiner. E. Lo SMEAD, Cfa'e/, Division of Bank Operations. J. F. HERSON, FEDERAL ADVISORY COUNCIL District No. 1 (BOSTON).D««_—.„„-„.-.„_.„„...„.„„....„. CHAS, A MORSB! Vice President. District No. 2 (NEW^YORK) D _» D « »=ra«».»»_»_»____=.!_m.»=,^_ JAMES S« ALEXANDER, District No. 3 (PHiLADELPHiA)mra«.»»__»>ra_»__.»^_ = »_»mra»»._ra_. L. L. R U E . District No. 4 (CLEVELAND)„„=.„„„._„__.____.,„_ ___„„_„_„.,_ GEORGE A. COTJLTON. District No. 5 (RICHMOND)„„„__ _„ _„„_„.„ - JOHN F S BRUTON. District No. 6 (ATLANTA)»_»»» DD ».. aramDra ».»_»»._»» oa »-»_«»._ P. D . H O U S T O N . District NO. 7 (CHICAGO).. - . - - - . _ _ - _ _ - . _ _ _ _ . . _ _ _ _ _ _ . . _ _ - - _ - 'FRANK O. WETMORE ? President. District No. 8 (ST. L O U I S ) - - - - - - - - _ - - - - - - _ _ - - - _ _ _ _ - - - - - - - - _ - BRECKINRIDGE JONES. District No- 9 ( M I N N E A P O L I S ) - - . - - - - - - - - - - - - - - - — _ _ - - - _ _ _ . - _ THEODORE WOLD. District,No. 10 (KANSAS C I T Y ) ^ ^ ^ , ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ - . ^ - - - - - - P. W. GOEBEL. District No. 11 (DALLAS) •_,=„„„„„„„=-_„_„__„„„-__-_ B. A. MCKINNEY. District No. 12 (SAN FRANCISCO)- — - — — — _ — _ — - - - - - - - HENRY S. M C K E E . II OFFICERS, OF FEDERAL RESERYE BANKS Federal Reserve Bank of— Governor Chairman Deputy governor Boston New York. Frederic H. Curtiss__... Pierre Jay——_ ---- W. W. Paddock— W. P. G. Harding—..-. H. Case—........ JBenj. Strong.. _.___._. J. L. F. Sailer......... G. L. Harrison._„.. E. R. Kenzel—.—• Philadelphia..—-..Cleveland——.—— Richmond.——_„— Atlanta.—_._..... ____ Chicago.-———— R. L. A u s t i n — — — . George DeCamp........ Wm. W. Hoxton........ Oscar Newton_».__--.— Wm. A. H e a t h — — — Geo. W. Norris.. E. R. Fancher—. George J. Seay... M. B. Wellborn.. J. B. McDougal.. St. Louis..... Minneapolis.. Wm. McC.'MartinJohn R. Mitchell— D. C. B i g g s — R. A. Young..... Kansas City.. Dallas......... M. L. McCIure.. C. C. Walsh — San Francisco.. Isaac B. Newton., * Controllers W. Willett. L. H. Hendricks.* A. W. Gilbart.i J. W. Jones.* Ray M. Gidney. L. R. Rounds.* C. A. McHhenny. W. G. McCreedy.i H. F. Strater. Wm. H. Hutt.. M. J. Fleming....... Frank J. Zurlindenj. C. A. Peple.__„„„„„ R. H. Broaddus—-^... J. L. Campbell...... Creed Taylor—..... C. R. McKay....... John H. Blair—...... Geo. H. Keesee. John S. Walden,Jr.> M. W. Bell.. W. C. Bachman.i K. C. Childs.^ ' J. H. Diilard.i D. A. Jones.* O. J. Netterstrom.^ J. W. White. Gray Warren. Frank'C.Diinlop.1 J. W. Helm. Fred Harris. O. M..At.tebery.-•___. W. B. Geery-——. B. V. Moore——. Harry Yaeger2.___„. W. J. B a i l e y — — C. A. Worthington... Lynn P. Talley——__— R. R. Gilbert——.. R. B. Coleman. ., J. U. C a l k i n s — — . Wm. A. D a y — — Ira C l e r k — — . . L. C. Pontious—: - Cashier W. N. Ambrose. Assistant deputy governor, MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE. "BANKS" Federal Eeserve Bank of— New York: Buffalo braneh__.____•__...__ Cleveland: Cincinnati branch.._-„_„__.. Pittsburgh branch.„__„____ Richmond: Baltimore branch...._...—.. Atlanta: • New Orleans branch.,.......,Jacksonville branch_..____._ Birmingham branch......... Nashville branch.___.__.____ Chicago: Detroit branch.............. St. Louis: Louisville branch............ Memphis branch._.._.__..__ Little Rock branch_____.__.. Managing director W. W. Schneckenburger. C. P. MeCombs. J. C. Nevin. A. H. Dudley. Marcus Walker. Geo.'R. DeSaussure. A. E. Walker. J. B. Port," jr. W. R. Cation. W. P. Kincheloe W. H. Glasgow. A. Fo Bailey. Federal Reserve Bank of— .Minneapolis: Helena branch... _____________ Kansas City: Omaha branch......_..—..... Denver branch.._._„__„___„ Oklahoma City branch....... Dallas: El Paso branch....__.____„__. Houston branch .._._.._..__. San Francisco: Los Angeles branch........... Portland branch__.._._.i-_....Salt Lake City branch......... Seattle branch...____.__.._.;.. Spokane branch.... Managing director R. E.'Towle. L. H. Earhart. J. E. Olson. .0. E. Daniel. M.. Crump. D. P. Reordan. R. B. Motherwell. R. B. West. W. L. Partner. C.R.Shaw. D. L. Davis. . , SUBSCRIPTION PRICE OF BULLETIN THE FEDERAL RESERVE BULLETIN is .the board's medium of communication with .member,, banks, of the Federal reserve system.and is the only official organ or periodical publication of the board. It contains, in addition to the regular official announcements^ the national review of business conditions, • detailed analyses of' business, conditions, research studies, reviews of foreign banking, and complete statistics showing the. condition of Federal reserve banks. and member banks, The BULLETIN will be sent to all member banks without charge. To.. others the subscription price, which covers the cost of. paper and printing, is $2. Single copies, will be sold at.20 cents Outside of the United States,- Canada.,: Mexico, and the insular possessions, $2e,60; single copies, 25 cents. • ,: . in ' TABLE OF CONTENTS The m o n t h : ~ ~~~ Page Review of t h e month—Recent banking developments__ __ .... . ._ 221 Treasury finance _-----_._ — _ _ . . . ... „____-_ .. .......... ... 224 Business conditions in t h e United S t a t e s . . ... . _. ----------_—— 226 Special articles: Bank suspensions in 1924 a n d 1925 . „__„ .... 247 Annual report of t h e National Bank of Belgium _._ .... _„__„__„ 260 Annual report of the Swiss National Bank____ .... 265 Gold reserves of principal countries, 1913-1925 „___„ ._ 270 Official: Rulings of t h e Federal Reserve Board— Eligibility for discount of factors' notes covering advances to producers of eggs, poultry, a n d b u t t e r . _ - - . — ..-____.___.._._____._ ------------- ————— -—— .- —251 Eligibility for rediscount a t a Federal reserve bank of notes made or indorsed b y a Federal intermediate credit bank when offered b y a member b a n k _ . _ - - - . .__—__ . 252 Law department-— Opinion of Attorney General re eligibility of trustee, officer, or employee of a mutual savings bank to serve as class B or class C director of a Federal reserve b a n k . . _ . . . . . . _ . _ _ _ , 253 Changes in State bank m e m b e r s h i p - . ' - - — --—-__- — — — . . .... 254 Changes in national bank membership -----------•—-- — — — - - — — —.— — —254 Fiduciary powers granted t o national b a n k s . - - — — — _ . . —— _————— ———254 Business statistics for t h e United States: Industrial activity —————— ————— ———— - — — -- — — — — — — — — 255 Commodity movements.-._„_„-„_ — — — — — — -.-_- - - . „ - . » _ - - „ _ „ - - = _ - . - —— — 257 Wholesale a n d retail t r a d e . - . . . . . _ , . _ - _ - . „ - - _ - — —————— —————— .- —258 Foreign banking a n d business conditions: Financial statistics for England, France, Germany, and Canada._ ————————— „272 Foreign trade of principal c o u n t r i e s . - - - — ————————— ._ — — — — 275 Price movements in principal countries—Wholesale prices in principal c o u n t r i e s - - - - - — . — _ — — _ — — — — — —— — __ — 276 ;_ —— Retail prices and cost of living in principal c o u n t r i e s _ - _ . - - . „ . . „ _ „ __._ „ — — — — -• 278 Banking and financial statistics: Federal reserve b a n k s Condition of Federal reserve banks . —— — .-_-._._.__ 279 Federal reserve note account . . ___. _„„-_ ,„__ . - _ . _ - _ - - - - _ - _ _ . _ . - 283 Holdings of earning assets ._.. __--__.^ -„-__„ -___-_______--..-_-•_-_-..-284 Discount a n d open-market operations of Federal reserve banks-__._____•__._________._ 285 Gold settlement fund-____•____--_-__---_ _--,_---_--.---_-------------_-— 301 Discount rates of Federal reserve b a n k s — - - - - - - - - - - - - . - - - - - - - - — -,_.-------------301 Member banks-— Reporting member banks— ' Condition of reporting member banks in leading c i t i e s . . „ _ _ _ - _ _ „ - _ - „ „ „ - - - - _ „ „ _ „ . 286 Bankers' balances a t reporting member banks in Federal reserve bank c i t i e s - - - - - - - - - - 287 Loans t o brokers and dealers secured by stocks a n d bonds made by 61 weekly reporting member banks in New York C i t y . _ . _ - - .-. --«-_— --------287 All member banks— .Deposits-.--....--.--.-..---.-^---.-..-.--.-.. — — — — — —— . — — - — — 288 Changes in membership during 1925— 292 All stock banks in t h e United States—Condition on "December 31, 1925 ------289 Bank d e b i t s . . — .— — . . „ - . . - . —— — -—-—. —- — 295 Member banks and nonmember banks on par list and not on par list - - - - .---•_-_-_------298 Money in circulation ______-----------_-._--_-------_--— -_- — - - — — ---• 298 Money rates in principal cities^ „--„--- — _.-.—-.------ — - - - - - 296 Gold and silver imports and exports ___-_ __ _-----___.-.----__-299 Foreign exchange rates.. -.-------__-----__ -----^----. 300 IV FEDERAL RESERVE BULLETIN VOL. APRIL, 1926 12 REVIEW OF THE MONTH During the past month the principal changes in the banking situation were a rapid liquidation of member bank collateral Changes in loans, particularly of loans to banking situa- t.on i i J J i brokers and dealers m securities, a considerable growth in the commercial demand for credit, and a reduction in demand deposits. These developments were centered in large part in New York City, where a reduction in the volume of security loans and a decline in deposits accompanied the recent drop in security prices. During the month Treasury operations in connection with the issue and retirement of United States obligations and the collection of income-tax payments were an important factor in the immediate credit situation. Notwithstanding the large reduction in loans, conditions in the money market have remained firm, with the commercial paper rate at between 4]4 and 4J^ per cent and the rate on call loans fluctuating around 5 per cent. At the reserve banks discounts for member banks at the end of March were larger than at any time since the turn of the year and the largest for this season since 1924, while the total volume of reserve bank credit outstanding was at about the same level as a year ago. Between the end of December, 1925, and the end of March of the present year the volume of loans secured by stocks and ^ at member banks in leading cities declined by about $450,000,000, a reduction amounting to more than 40 per cent of the increase in this class of loans during the preceding year. This liquidation, which during the early weeks of the year was partly seasonal in character, continued in the later weeks largely as the result of the decrease in the credit requirements of the No. 4 security market consequent upon the drop in security prices. That it was the reduced volume of loans to finance the trading in securities that was the principal factor in the recent decline in the volume of this class of loans is indicated by the fact that total loans of reporting banks to brokers and dealers made by reporting member banks in New York City declined from $3,139,000,000 on February 17, a figure close to the peak for the current year, to $2,573,000,000 on March 31, a drop during the six-week period of $566,000,000, or about 18 per cent. This rapid decline in the credit requirements of the security market was accompanied by a growth in the demand for loans to finance the current operations of industry and trade, which continued to be active during the first three months of the year. This demand was reflected in a considerable increase after the end of January in the volume of commercial loans at member banks in leading cities; these loans rose by the end of the first quarter to a level near that reached last autumn when commercial loans were in larger volume than at any time in the past four years. Changes in the volume of bank loans, both in loans on securities and in commercial lo ansf since the opening of the year Loans of banks have occurred to a large extent TwJ°f and City City is brought out ID the following table, changes at reporting banks outside New York being relatively small: M E M B E R BANKS IN LEADING CITIES . [In millions of dollars] New York City Outside Dec.30, Mar. 24, Change Dec.30, Mar. 24, Change 1925 1925 1926 1926 Loans on securities.. All other loans Investments. Total loans and investments _•_ 2,485 2,243 1, 696 2,091 2,368 1,724 -394 +125 +28 3,445 6,063 3,766 3,397 6,092 3,851 +20 +85 6,424 6,183 -241 13,274 13,340 +66 221 -48 222 FEDERAL RESEBVE BULLETIN Security loans by banks, in New York City declined by $394,000,000 between the close of last year and the end of March, while at banks in other cities the decline in these loans during the period was only $48,000,000* Commercial loans, on the other hand, which at the New York City banks increased by $125,000,000, advanced by less than- $30,000,000 at the outside banks. Investment holdings of New York City banks showed an Increase of $28,000,000 for the three months, while outside banks increased their investments In securities by $85,000,000. The movement of loans to brokers and dealers placed through New York City banks also shows that It is In the volume of operations of these banks on their own account that the principal changes have occurred since the beginning of the year. This Is brought out In the table below: LOANS TO BROKERS AND DEALERS MADE PORTING MEMBER BANKS IN N E W ' Y O R K APEIL, 1926 ever, when the entire volume of loans on the market began to decline rapidly, the withdrawal of out-of-town funds has been more rapid than the reduction In the street-loan account of the local banks. In order to give a somewhat longer view of member bank credit developments, with special reference to differences In the movements of bank loans In New York City and outside, a chart is presented showing the movement of loans on securities for the two groups of banks since the opening of. 1924, when the recent rapid growth of bank credit began. MILLIONS OF DOLLARS MILLIONS OF DOLLARS 40001 14000 Outside N.Y.City 3000 3000 BY R E CITY New York City [In millions of dollars] Date 1926 Jan. 5 ._ Feb. 17 Mnr 10 Mar. 3 1 . . . . . . . — - Total 3,141 3,139 2,885 2,573 For For their account of outown account of-town banks 1,338 1,159 1,021 1,048 1,239 1,354 1,266 1,006 2000 1000 1000 For account of others 564 620 598 519 Loans to brokers and dealers by the New York City banks for their own account declined-continuously until early in March and were on March 10 more than $300,000,000 smaller than on the first report date. After that time these loans Increased somewhat. Loans for account-of. correspondents, on the other hand, Increased by more than $100,000,000 during the first six weeks and then declined by about $350,000,000. during the- last six weeks. It appears, therefore, that during the earlier weeks .of the year out-of-town funds flowed into the New York market and were used t o ' replace funds withdrawn from the market by the New York banks for their own • account. Since the middle of February, how- 2000 SECURITY LOANS 1924- 1925 1926 The chart shows that in 1924, when security loans Increased by about $600,000,000, twothirds of the growth was at member banks In New York City; during that year thegrowth of commercial loans was considerably larger at banks outside the financial center. In 1925, on the other hand, the growth In security loans until the closing months of the year was almost entirely In banks outside of New York City, and of the increase of about $1,000,000,000 in this class of loans for the year over one-half was at banks located outside of New York. The volume of commercial loans In 1925 changed relatively little, APBIL, 1926- and the increase for the year was entirely In outside banks, as the. commercial loan account of the New York City banks showed a decrease for the year. Since the opening of 1926, as has already been stated? changes In the member banks' loans3 both on securities, and for commercial .purposes? have taken place largely at the banks in New York City. At the reserve banks recent changes have also been, largely confined to the New York district* During January Movements of m e m b e r .banks outside New reserve ba.nk York used currency? which was credit released from circulation following the holiday-demand, to. reduce their borrowings at the reserve banks from about $530,000,000 to $400,000,000. During February New York lost funds to other sections of the country in about the same volume as the increased demand for currency outside of New York; and discounts of member banks outside New York remained close to the $400,000,000 reached at the end of January/ Thus the entire Increase In currency demand, which amounted to $75,000,000 during February, was felt In New York, where member banks met the demand partly by the use of gold received, chiefly from Canada, and partly by Increased borrowings at the reserve banks. Keserve bank holdings of United States securities were fairly constant during January and February but fluctuated somewhat during March,.-as $66,000,000 of the holdings consisted of Treasury notes which matured on March 15 and were replaced through purchases of other issues in the open marked Holdings of acceptances have declined during the quarter as bills drawn to finance agricultural exports In the autumn matured and were repaid. The total volume of reserve bank credit in use has fluctuated between $1,100,000,000 and $1,200,000,000 during February and March and in the latter month was at about the same level as in March of last year. In March, 1925, however, only about 35 per cent of this total consisted of discounts for member .banks,, while at the present time discounts constitute 223 FEDERAL EEBEEVE BULLETIN about one-half of the outstanding volume of reserve bank credit. In the more recent temporary fluctuations in the volume of reserve bank credit,, an Important Influence has been the fiscal Influence of o p e r a tions of the Treasury, Treasury opera- lions -, -L j • J ± -i - described m more detail in a separate statement in this issue of the BULLETIN.. On March 15 the Treasury was called upon to pay out over $700,000,000 for the redemption of maturing security issues and for interest on the public debt, and during the following week it purchased over $100,000,000 of third Liberty bonds for account of the sinking fund. At the same time the Treasury was to receive more than $400,000,000 In income- taxes and about $500,000,000 as the proceeds of a new refunding issue of United States bonds. As receipts from these sources were not available to the Treasury In time to cover the full amount of disbursements,'the Treasury on March 15 issued to the Federal Reserve Bank of New York a special certificate of indebtedness for $190,000,000 • and one to the Federal Keserve Bank of Chicago for $19,000,000. . These certificates were redeemed as funds from income tax payments were realized and the last portion was taken up by the Treasury on.March 19. In New York, owing to the large volume of holdings of the maturing Issues of" securities, Treasury outlays exceeded receipts by about $130,000,000, and this created a temporary accumulation of funds in the money market. To offset this In part the New York Federal Reserve Bank on March 13 and 15 sold United States securities under repurchase agreement to banks in that city. This brought the reserves of the banks below requirements for the first two days . of tEe reserve week and caused them to. use the funds received, from the Treasury in r redemption of maturing obligations as a means to bring average reserves for the week to the required level. In the Interior Treasury receipts exceeded disbursements, and? to make these payments to the Government, interior banks drew heavily on their funds in New York* By 224 FEDERAL RESERVE BULLETIN 1926 Of the third Liberty loan bonds payable September 15, 1928, the amount outstanding had been reduced by retirements aggregating on all accounts $1,453,955,950—from $4,175,650,050, the amount of the original issue in May, 1918, to $2,721,694,100, the amount outstanding on February 28. On March 1 the Secretary of the Treasury announced that, following the plan adopted in November of last year, further purchases of these bonds would be made from holders through the Federal reserve banks for account of the cumulative sinking fund. This procedure, it was noted, NOTES would save commission charges to the GovernGovernors' conference. ment and to sellers. Under the terms of the On March 22 and 23 the governors of the announcement purchases in the amount of Federal reserve banks held their customary $100,000,000 or thereabouts were to be made spring meeting in Washington,, Conferences at the lowest prices offered, the privilege of were held among the governors and with the tendering bonds for sale to expire March 10. Over $148,000,000 face amount of bonds were Federal Reserve Board, tendered, and all proposals not exceeding Annual report 101^1"—in aggregate amount about $121,750,The text of the annual report of the Federal 000—were accepted, at an average cost to the Reserve Board covering operations for 1925 was Government slightly under 101-& and accrued presented to Congress on April 10 and released interest. In response to a similar proposal for publication on April 12. made in November of last year to purchase some $50,000,000 of this issue at the lowest prices offered not exceeding 101}4> bonds were TREASURY FINANCE tendered to the amount approximately of March financing and sinking-fund operations $176,000,000, and all proposals at prices not effected a reduction of some $242,000,000 in exceeding 101J^ were accepted, the average the interest-bearing debt of the United States. cost to the Government being approximately These operations included direct purchases of third Liberty loan bonds for account of the 101*. The Treasury notes maturing March 15 cumulative sinking fund, redemption of Treasury notes coming payable March .15, and an were a refunding issue of March 15, 1922. issue of long-term bonds. Amounts involved in They had been issued at par in exchange for payable May 20, these several transactions were approximately Victory Liberty loan notes 1923, under the Treasury7s program of gradas follows: ually refunding the Victory notes in succesProposals accepted for sale of third Libsive note issues which would distribute maturierty loan 4}^ per cent bonds to the United.States, about._----„__„._„_- $121, 750, 000 ties through the period from the date of Redemption of &% per cent Treasury notes coming payable Mar. 15____„.,_ 615, 677, 900 maturity of the Victory notes to September 15, 1928, when the third Liberty loan bonds come Total retirements on these accounts, about„...... . . _ . 737, 427, 900 payable. Practically the entire issue of fouryear notes maturing March 15—$615,677,900 Allotments of 3% per cent Treasury bonds of 1946-56. . , — . . . . . . . . . . 494,898,100 of $617,769,700 originally issued—were outExcess of retirements, about 242, 529, 800 standing on March 1, when the Secretary of the Treasury authorized Federal reserve banks By reduction in the interest rate and in the to begin redemption in cash at the holder's amount of the debt outstanding an annual option before March 15, with interest accrued saving of more than $15,000,000 is effected in to date'of such optional redemption. aggregate interest charges. Also a substantial Subscriptions for the offering of some $500,amount of floating indebtedness has been 000,000 of 3M per cent bonds dated March 15, eliminated, and some reduction effected in the 1926, payable in 30 years and redeemable at short-dated bonded indebtedness of the Gov- the option of the Secretary of the Treasury ernment. The securities retired were running in 20 years, were invited on March 8 at 100J^. at 4M and 4% per cent, the rate on the new Treasury notes maturing March 15 were issue being 3% per cent. accepted in part payment but were not given March 19 these withdrawals had removed the temporary surplus in New York, and by March 20 the New York Reserve Bank repurchased the United States securities sold earlier in the week. Security transactions of this character are a part of the technique developed by the Federal reserve system for the purpose of reducing to a minimum the temporary disturbing influence of large-scale Treasury operations on conditions in the money market. APEIL, 225 FEDERAL RESERVE BULLETIN 192@ preferred allotment. Reports from the re- amount outstanding are shown in the table serve banks showed total subscriptions for following: these bonds to the close of business on March COMPOSITION OF THE PUBLIC D E B T ON FEBRXTABY 28, 11 in the aggregate amount of some $647,000,1926, AND N E T CHANGES DURING THE FISCAL 000, of which $494,898,100 were allotted. All ' Y E A R 1 subscriptions in amounts not exceeding $50,000 were allotted in full, and subscriptions in larger Amount of Increase (+) debt outamounts upon a graduated scale. Subscripor decrease Account standing (—) since tions and allotments for each Federal reserve Feb. 28, 1926 June 30,1925 district are shown in the table following: Total gross d e b t . . . . . . . . . . . . . . . . . TREASURY BONDS OF 1946-1956, DATED MARCH 15, 1926—SUBSCRIPTIONS AND ALLOTMENTS, BY FEDERAL RESERVE DISTRICTS Federal reserve district Subscriptions Allotments Boston._ „. New York Philadelphia.. Cleveland...,.,. Richmond.-.. Atlanta .. Chicago St. Louis—... Minneapolis.. Kansas. City.. Dallas. „. San Francisco. $80,855,700 171,108,600 77,456,300 67,819,800 28,303,200 28,835,100 54,373,200 22,017,100 16,438,900 22/402/100 17,620,400 60,013,500 $69,110,700 98,601,600 67,061,300 51,090,000 20,740,400 26,945,100 48,655,200 19,348,100 13,894,700 18,087,100 12,920,400 48,443,500 Total... 647,243,900 494,898,100 Net reductions of some $192,000,000 in the period from June 30, 1925, to the end of February, 1926, brought the amount of interestbearing debt outstanding in round numbers to $20,000,000,000. The composition of the debt on February 28 and the net changes during the present fiscal year to that date in the 88806—26f—2 $20,276,143,040 -$240,050,848 245,585,962 Bearing no interest—>._——_——11,680,620 Matured on which interest had ceased-Interest bearing... _ _._._...;_ 20,018,876,458 -29,442,031 -18,578,360 -192,030,456 Bonds, total... ^._.._^.». .„__ Pre-war bonds . „ Liberty bonds, total—. „. First Liberty loan of 1932-1947— Second Liberty loan of 1927-1942. Third Liberty loan of 1928 ___„— Fourth Liberty loan]of 1933-1938. Treasury bonds, t o t a l . . . . . . . . 4 % per cent bonds of 1947-1952.. 4 per cent bonds of 1944-1954 Treasury n o t e s . - — _ - . Treasury certificates._-... . War savings securities..._.„'...__._ 16,671S 269,970 765,860,170 14,094,373,000 1,943,666,300 3,104,535,850 2,721,694,100 6,324,476,750 1,811,036,800 763,948,300 1,047,088,500 2,158,081,500 822,502,000 367,022,988 -171,019,790 +544,160 -171,563,950 —7,853,350 -22,900 -163,683,250 -4,450 -246,159,900 +243,817,000 -18,667,766 Net balance in general fund.... Gross debt less net balance...... 340,831,406 19,935,311,634 +122,995,674 -363,046,522 i On the basis of daily Treasury statements. In March, 1925, the Treasury issued 4 per cent bonds of 1944-1954 at 10034 following an offering of similar bonds in the preceding December at par. These issues, for an aggregate amount of $1,047,000,000, together with the present offering/ are the only issues of long-term bonds since the issue in October, 1922, of 4M per cent bonds of 1947-1952 at par. 220 FEDERAL RESERVE BULLETIN 1926 BUSINESS CONDITIONS IN THE UNITED STATES Production and trade continued in February at the high. level of the preceding month-, while the general average of prices declined and was lower in February than at.any time since the latter part of 1924. Production.—-The Federal Reserve Board's index of production in basic industries,- which is adjusted for seasonal variations, indicated a continuation of productive activity during February in about the same volume as in the preceding two months. Mill consumption of cotton and the output of flour, anthracite coal? copper, and newsprint showed increases in February, when allowance is made for usual seasonal changes, and the output of iron and steel and lumber remained practically unchanged* Activity in the woolen industry and the production of cement declined. Automobile production was in considerably greater volume in February and was larger than a year ago, although smaller than in the corresponding month of 1924. Employment and earnings of factory workers increased, after the seasonal recession of January, and were in February at practically the same levels as during the latter part of 1925, The volume of building contracts awarded declined both in January and in February, but remained larger than in the corresponding months of last year* Reports by farmers to the Department of Agriculture of intentions to plant in 1926 indicate that the acreage of spring wheat and tobacco will be slightly smaller, the acreage of corn will be about the same, and that of oats, barley, hay, and potatoes larger than that in. 1925. Trade*—Wholesale trade in February was in about the same volume as a year ago. A smaller volume of sales was reported for groceries, dry goods, and hardware, while sales of meats, shoes, and drugs were larger. Inventories of wholesale firms dealing in groceries, dry goods, shoes, and hardware were smaller at the end of February than a year ago. Trade at department stores and at mail-order houses was larger than in February of last year, and department-store stocks were about 5 per cent greater than on the corresponding date of 1925* . Freight-car loadings continued at about the same daily rate in February as in the preceding two months. Shipments of merchandise in less-than-carload lots and of miscellaneous commodities were particularly large* Prices,—-The general level of wholesale prices, as measured by the Bureau of Labor Statistics index, after remaining unchanged for two months, declined in February to a point slightly below the low figure of 1925., reported for last May. The greater part of the decline since last autumn.has been in prices of agricultural commodities. In February prices of allmajor groups of commodities, except fuels, declined, and particularly large reductions occurred in the prices of grains, cotton, wool, silk, and rubber* Price advances in February were shown for petroleum, • coke, and paper. During the first three weeks of March prices of grains, cotton, wool, and silk continued to decline, and recessions were also reported in the prices of .sugar and hardwood lumber. 150 200 PERCENT [200 150 150 !00 too 100 SO PRODUCTION IM BASIC INDUSTRIES 1922 1923 WHOLESALE PRICES 1924 1926 Index of 22 basic commodities adjusted for seasonal variations. (1919=100.) Latest figure, February, 120 50 1922 19241925 1923 1926 Index of United States Bureau of Labor Statistics. (1913=100, base adopted by bureau.) Latest figure, February,, 155 227 FEDERAL BESERVE BULLETIN" APHID* 1926 BILLIONS OF DOLLARS BILLIONS OF DOLLARS to 10 - FACTORY EMPLOYMENT AND-PAY ROLLS 1922 1923 1924- 1925 1926 Federal Reserve Board's indexes of factory employment and pay rolls. (1919= 100.) Latest figures, February, employment, 97 pay rolls 112; 2 1922 192V 1925 1926 1923 Monthly averages of weekly figures lor banks in 101 leading cities. Latest figures are averages for first 3 weekly report dates in March Bank credit.—At member banks in leading cities demand for loans, chiefly for commercial purposes, showed an increase, partly seasonal in character, between the middle of February and the middle of March, and on March' 17 the total volume of these loans was close to the high point reached last autumn. A further decline of loans, on securities, which accompanied the sharp recession in security prices in March, carried the total to a point nearly $430,000,000 below that reached • at the end oi the year. . • Following a growth during February in the volume of reserve bank credit outstanding, there was a sharp decline, early in March to about the same level as a year ago. Factors contributing to the decline have been continued imports of gold and some reduction in member bank reserve requirements, as well as the temporary abundance of funds resulting from the excess of Treasury disbursements over receipts around March 15. Open-market rates on prime commercial paper, after a slight decline in February, advanced in March to 4 3^-4 % per cent, the level which had prevailed since last October, BUSINESS INDEXES OF T H E FEDERAL RESEBVE BQAUB [Monthly average 1919-100] Year and month Production in basic industries i Factory employment 127 124 120 119 111 110 113 109 111 116 115 121 94 96 96 ' 96 95 94 93 94 95 97 97 97 103 109 110 107 107 105 102 105 104 111 112 112 164 166 172 169 151 173 188 225 235 210 229 276 120 120 96 97 107 112 243 208 Building Railroad- WholeFactory contracts car sale • pay rolls awarded » loadings* trade Department-store sales * Unadjusted Adjusted ' Department-store stocks i Unadjusted Adjusted Bank debits outside of NewYork City* ' • 1925 January February „—.._.—_-._.__.March April . ..._______.___.________ May Fune . . _.-_ ...» Fuly September October . . — November December „ _.„„ —_ 1926 January... =. . . . _ . . . . February..................... . 123 125 117 129 123 117 122 123 121 121 121 130 79 76 83 79 79 83 83 87 94 101 86 80 108 101 121 136 128 126 95 98 121 165 145 226 124 131 121 133 124 126 128 125 134 145 129 141 119 127 139 141 136 129 125 131 143 149 154 129 134 135 137 136 137 135 133 131 133 134 137 139 119 118 118 120 US 122 124 120 123 128 122 124 118 127 78 76 114 104 130 136 125 132 141 140 126 128 * The indexes of production in basic industries, building contracts, car loadings,'and bank debits are adjusted to allow for seasonal variations; tbe indexes of 4epartment4tores sales and stocki are .shown both with and without seasonal adjiutments. ' 228 FEDERAL RESERVE BULLETIN APRIL, 1926 MONEY RATES ACCEPTANCES Commercial paper rates in March were again at the levels prevailing before their temporary decline in February. Prime names were quoted at 4 3^-4 % per cent, but toward the end of March an increased volume of sales occurred at 4)^ per cent. The amount of borrowing through the commercial paper market has been much less than at the same season last year, and the demand has been relatively inactive, coming in March chiefly from New England and Pennsylvania country banks. Rates on bankers' acceptances were the same in March as in February. Yields on both long and short term Government securities declined slightly. The new issue of 20-30 year Treasury bonds dated March 15 bore a rate of 3% per cent and was oversubscribed at a selling price of 100J^. The renewal rate on stock exchange call loans, after fluctuating between A% and 53^ per cent the last three weeks in February, declined early in March and remained at 434 per cent for over two weeks, but later in the month advanced to 5 per cent. The table below shows money rates prevailing, in the New York market during the last three months: The acceptance market was generally quiet during the four weeks ending March 17, although a somewhat larger volume of transactions was reported by dealers in New York, Boston, and Chicago than during the preceding four weeks. The supply of bills offered in the market remained small except for a temporary increase at the end of February. An improvement in demand accompanying easier money conditions around the middle of March resulted in a reduction of dealers' portfolios from the unusually high volumes reported on February 18. Federal reserve bank purchases were moderate, and those made from dealers were generally for foreign account. Bill rates in New York remained unchanged throughout the period. These rates are given in the following table: MONEY RATES IN N E W YORK Prime commercial paper, 4-6 months March, 1925...... January, 1926 February, 1926.. March, 1926 Average for week ending— Mar.6.-~-'-— Mar. 1 3 . . . Mar. 20 Mar.27——— Yield on AverPrime U.S. age ReAverbank- Treas- yield age ers' ury 4M newal rate on accept- notes onper rate and time ances, on call cent certifiloans loans 3 90 days cates, Liberty bonds 3-6 months 2.78 1 3.49 1 3.18 /13. 03 \«3..26 4.02 4.04 4.01 3.97 4.33 4.85 4.55 4.19 4.79 4.68 4.72 13.09 i 2.98 / 1 2.97 3.99 3.97 4.80 4.25 4.25 4.70 4.87 4.80 4.65 4.59 \ 2 3. 27 3.25 3.98 1 Issues maturing June 15,1926. tissues maturing Sept. 15,1926. 3 Weekly average of daily average rates on principal maturities. In the London money market rates hardened in March and three-months' bank bills were quoted at 4 ^ per cent the third [week of the month, as compared with 4J^ per cent the last week in February. Treasury bills were tendered at an average rate of 4.396 per cent. ACCEPTANCE RATES WITH N E W MARCH 17, 1926 Maturity YORK MARKET, Bid Offered Per cent 30 days.. . 60 days... 90 days... 120 days.. 150 days_. 180 days- CAPITAL ISSUES The volume of new domestic securities issued in February, according to the compilation of the Commercial and Financial Chronicle, was smaller than in January but larger than in any preceding February since the war, and surpassed the amount issued in every month in 1925 except three. The total of $472,800,000 included an unusually large amount of municipal securities, while the corporate issues were less than in February, 1925. Over one-half of the municipal issues, which totaled $144,800,000, is accounted for by a New York City offering of $75,000,000. Of the corporate flotations, those of industrial corporations exceeded those of public utilities and railroads, but all three classes showed decreases as compared with January. The following table shows the domestic securities issued in February, 1925, and in January and February, 1926: 229 FEDERAL RESERVE BULLETIN APRIL, 1926 DOMESTIC CAPITAL ISSUES [In millions of dollars] February, 1926 New Total Corporate «, Long-term bonds and notes Short-term bonds and notes Stocks... _... Farm-lpan issues Municipal Refunding January, 1926 New February, 1925 Refunding New Refunding 472.8 25.6 566.9 65,3 460.8 51.3 323.7 25.0 493.1 63.5 ,374.2 48.2 172.8 22.6 300,8 56.7 254.1 44.3 2.4 43.1 149.2 5.0 6.8 24.2 95.9 9.4 77.2 3.0 28.2 122.7 4.3 144.8 3.1 and cable, and theater stocks. The market was exceptionally active early in the month, and the volume of sales during the week ending March 6 was the largest on record. Later the daily average of sales was moderate in volume. Bond prices declined early in March from the high levels of February, but recovered part of the decline later in the month. The following table gives indexes of stock prices computed by the Standard Statistics Co. of New York, the average price of 40 bonds computed by Dow, Jones & Co., and the average number of shares of stock sold daily on the New York Stock Exchange for the last six months and for March a year ago. ' INDEX NUMBERS OF SECURITY PRICES The volume of foreign securities issued-in the United (States in February, according to the compilation of the Federal Reserve Bank of. . New Yorky considerably exceeded those issued in January. The revised total for January was $83,157,900, of which $13,029,500 were for refunding purposes, and for February $108,088,400, .of which $43,608,900 were refunding issues. In addition, there were two offerings of bank, stock in February, the amount of which could not be ascertained. The new governmental issues, including those of provinces and municipalities, were over twice • as large as those of corporations and the refunding issues ten times as large. All of the new governmental and the bulk of the new corporate offerings were from Germany and Italy, but Canadian and Newfoundland corporations raised some new capital in this country, and the Dominion of Canada floated a refunding loan of $40,000,000. SECURITY PRICES Further declines in the prices of common stocks in March brought the average price of representative issues considerably below the level reached during the market reaction last November. After the abrupt fall of prices early in the month, a slight rally occurred, but this was followed by a further decline of industrial shares to a new low point and a less pronounced reaction in railroad stocks. At the end of March the index of the former was 20 points below its record high level of early February and the index of the latter 10 points below its high reached at the end of December. They were still 15 and 10 points, respectively, above the lowest levels of 1925. Almost all the major groups of stocks declined, with the smallest change in the petroleum, telegraph Price indexes of 1— Average Aver- number age of shares 201 in- 31 rail- Total, price of stock of 40 sold daily 232 dustrial road (000 stocks stocks stocks bonds 2 omitted) § Average for— . March, 1925 October, 1925—... November, 1 9 2 5 . . . . . . . December, 1925 January, 1926. •—_ .. February, 1926__——_. March, 1926_ Average for week e n d i n g Mar. 1__—i— Mar. 8 _ Mar. 1 5 . . Mar. 22._. Mar. 29_ 123.9 145.8 150.4 151.6 153.7 154.9 144.0 110.3 116.2 120.0 125.4 125. 5 123.5 119.4 119.9 137.2 141.6 144.0 145.5 145.7 136.7 $91.35 92.17 92.44 92.76 93.46 94.31 93.94 l,65f 2,302? 2,397" 1,88$ 1,76© 1,80$ 1,79(11 146.9 145.9 147.0 144.4 135.6 119.9 119.7 121.2 119.7 116.5 139.0 138.2 139.4 137.1 130.0 94.34 93.90 94.00 94.15 93.69 1,912 2,885 1,590 1,755 1,865 1 For the industrial]stocks, the average of 1917-1921 prices .equalsJIOQ, for the rails the'-averagelof the high and low prices made in the 10 years? 1913-1922, equals 100. The indexes are weighted by the number of shares of each stock outstanding. Prices used are closing quotations on Monday. 2 Arithmetic>veiage of daily average closing prices, as published in the Wall Street-^Journal. Weekly averages are for week ending^with Saturday preceding date given. 3 Saturday omitted. Weekly averages are for five days ending'with Friday preceding date^given. AGRICULTURAL CREDIT The consolidated statement of the 12 Federal intermediate credit banks for the month of February disclosed a continued decline in direct loans and an increase in • rediscounts, resulting in a net gain of $1,638,000. A net decrease of $1,339,000 was made in direct loans, declines taking place in all outstanding commodity advances with the exception of those based on cotton and rice and on raisins, in which there was no change. The greatest. liquidation took place in tobacco loans, which. ware reduced $2,592,000 during the month,. with an additional reduction of. $1,500,000' during the first three weeks of March. Wool loans, reflecting the influence of a slow market^ had been liquidated less than 50 per cent on January 2, 1926, but have since been rapidly 230 FEDERAL RESERVE BULLETIN" reduced and, with a continuation of the present rate of liquidation, should be cleaned up by the time advances are commenced on the new clip in April or May. Advances on cotton continued to increase during the month, but reached their peak of $26,493,000 in the closing week, and the reports for the first half of March reflect a downward trend. Kice loans maintained a slight increase during February, as stocks continued to pass out of the hands of growers and into the control of their marketing organizations. Rediscounts, chiefly from agricultural credit corporations, increased approximately $3,000,000 during February, reflecting the seasonal demand for crop production needs. Of this amount, slightly more than $2,000,000 was placed by the Columbia (S. . C.) bank. Demand for accommodations during the first two weeks in March was even more active, as additional rediscounts of $3,000,000 were made during that period. Moderate increases were also effected in accommodations to livestock loan companies. • Loans based on different commodities and rediscounts for the different financial institutions for the latest available date in March are shown in the following table: INTERMEDIATE CREDIT BANKS [In thousands of dollars] Mar. 20, F e b . 20, Direct loans outstanding o n Cotton Tobacco Wheat >___ ____ C anned fruits and vegetables .___>_. Raisins _-_.. «,„. Prunes Peanuts Wool . . . . Rice All other ____„ Total—_. „ Rediscounts outstanding for— Agricultural credit corporations....... National banks..„_ „-__ _.. State banks Livestock loan companies.™ _ Savings banks and trust companies. Total .._. - M a r . 21, 1925 1926 1926 26,479 15,588 1,910 489 3,600 25,614 17,062 2,370 561 3,600 84 157 894 432 122 431 734 493 49,633 =s 50,987 35,309 21,390 34 417 12,046 65 16,062 34 357 12,027 85 12,798 14 678 8,940 150 33,952 28, 565 22, 578 4,858 22,808 1,453 234 4,000 1,216 340 314 86 Federal and joint-stock land bank loans maintained their customary rate of increase during February, the net outstanding loans of the former being expanded approximately $8,000,000 and the "latter $12,000,000. The total of outstanding farm loans of reporting life-insurance companies increased $10,000,000 during the first two months of 1926, The total investments in farm real-estate loans of 52 companies representing 93 per cent of the funds APRIL,- 1926 of all legal-reserve life-insurance companies in the United States, as reported by the Association of Life Insurance Presidents, reached a total of $1,871,056,000 in 1925. The following table shows the outstanding volume of net mortgage loans at the end of February held by the 12 Federal land banks, 56 joint-stock land banks, and 41 life-insurance companies owning more than 82 per cent of the assets of all lifeinsurance companies: N E T FARM MORTGAGE LOANS OUTSTANDING [In thousands of dollars] Feb. 28, 1926 Total, all joint-stock land banks. Total, Federal land banks..»____. 41 life-insurance companies....... 567,544 1, 019, 486 1, 533,000 Feb. 28, 1925 464, 874 944,995 1,460, 000 AGRICULTURE Weather conditions continued favorable in most sections of the country during the late weeks of February and the early weeks in March for spring plantings, winter-sown crops, and livestock. In certain areas.of the South, however,'low temperatures delayed growth of early fruits and vegetables in the early weeks of March. Reports by farmers to the Department of Agriculture of their intentions to plant in 1926 indicate that the acreage of oats, barley, potatoes, both Irish and sweet, rice, and hay will be larger than that grown in 1925 and that of peanuts and tobacco will be smaller. Acreage of corn will be about the same as in 1925. Movement of the 1925 crops .to market showed the usual seasonal decline in February from January and the closing months of 1925 when crops were marketed in large volume. As marketing in the early months of the year slowed down and -preparations* for spring plantings began, loans necessary for marketing were reduced and those necessary to .finance production began to expand, according to reports of the intermediate credit banks of loans to cooperative marketing associations and to agricultural • credit corporations. Partly as a consequence of the smaller wheat crops in 1925 than in other recent years, the amount of this crop left on farms on March 1 was considerably smaller than in 1925 and 1924, and -was much less than the average for the five, years 1921-1925. Stocks of corn, oats, and barley, on the other hand, were larger than in the two preceding years and exceeded the average amount on farms for the past five years. Exports of agricultural commodities, as measured by the index prepared by the Depart- APEIL, 231 FEDEBAL BESERVE BTTLLETiK" 192@ ment of. Agriculture, continued to fall off in -February, and as a result of this decline the total volume for that month was the smallest for any recent year* All groups of commodities except dairy products, tobacco, and veggs were shipped abroad in smaller volume than in January, and exports of all groups except fruits and vegetables, tobacco, and lard were less than in February of last year. Wheat exports, including flour, were smaller than for any previous month in six years and were about one-half the monthly average amount exported during the five years preceding the war. Alter remaining at about the same level from September through February, farm prices, according to the Department-of Agriculture's index, declined In March to the lowest point since December, 1924. In March, 1925, the index reached 151, the highest level since 1920, but in March of this year all groups except fruits and vegetables, livestock, and livestock products were lower, but the greatest declines were in the -prices of grains and cotton. Grains* Generally declining prices were in evidence in the wheat market during February, and.the lowest level of prices since last November was reached during the first week in March, when quotations' on Minneapolis May futures fell to $1.53%. Lower prices were attributed to the,continued weakness in foreign markets and to the favorable reports of the growing winterwheat crop in the united States. The March 1 estimate of stocks of wheat, made by the Department of Agriculture, was placed at 99,279,000 bushels on the farms and 75,429,000 bushels in country mills and elevators. This is. a smaller amount than was on hand last year at this time and much less than the -five-year average, The report of low reserves had a tendency to strengthen the market, and wheat was quoted at a 4 or 5 cent advance at most markets by March. 13. MILLIONS OF BUSHELS «V11LL!ONS OF BUSHELS 1400 1 STOCKS OF GRAIN ON FARMS moo 1200 1200 : The condition of the winter-wheat crop continues favorable in most sections, although some damage is reported by blowing soil in western Kansas, central Nebraska, and northeastern Colorado, and in Oklahoma more moisture was needed. In Missouri the latesown wheat is reported thin and poor; some .damage by ice has occurred in the northern lowlands of Ohio, and the crop is' still somewhat uncertain in Illinois. The main producing States, however, report conditions as good to excellent. The March. 1 "intention-to-plant" report has been issued by the Department of Agriculture, and the following table indicates what the farmers had In mind to plant at the time they made their report, compared with the acreage grown by them, last year. These plans, of course, are subject to material change, as subsequent weather and market conditions and other factors may influence their arrangements. INTENDED PLANTINGS IN 1926 [In per cent of acreage grown for harvest in 1925] Crop Smith South United North North Cen- Atlan- CenI States Atlantral tral tic tic All spring wheat '• 98.2 Durum wheat (4 States)..— 119.5 Other spring wheat-. 92.0 100.4 Flaxseed 99.9 Corn. Oats... _ 104.6 105.7 125.0 125.0 101.6 104.2 114.6 Western 101.4 90.6 120.6 92.7 101.6 99.1 101.9 105.8 80.2 89.7 87.8 99.3 98.9 100.8 100. 3 115.7 104.9 102.2 133.5 133.7 1000f— 1OOO 5 YEAR MAR.1 MAR.1 AVERAGE 1S25 1926 800 800 600 600 400 200 o 200 CORN WHEAT OATS BARLEY . The movement of corn to the principal interior markets, despite the much larger crop of this season, was only slightly larger during January] and February than during the corresponding period last year. Poor roads during the latter part of February and the continued favorable feed ratio may have tended..to retard the movement. Reports still indicate excessive moisture in the corn being marketed, and country elevators are not keeping large stocks on hand. A fairly firm market was in evidence during the month, with the industrial /demand and the southern and southwestern feed requirements quite active. Farm stocks were reported as 1,318,793,000 bushels on March 1/ or about 45.5 per cent of the 1925 crop. With the stocks held at the principal markets, the March 1 supply totals about 1,353,000,000 232 bushels, which is approximately 560,000,000 more than the amount held last year. The trend in the oats market has been fairly firm, with receipts at the principal markets being much less in February than in the corresponding month last year. Receipts at the 17 principal interior markets totaled 12,244,000 for the current February, as contrasted with 14,903,000 bushels last year. Both consumption and exports have been maintained at a greater rate than last year, so that despite the large carry-over from the preceding crop, stocks of oats on farms and in the principal markets were only approximately 17,000,000 bushels larger on March 1? 1926, than they were a year ago. Rye did not follow the full decline with wheat, as strength in the German markets and the limited offerings in the United States cash market were sustaining influences. Lower prices for flax in Argentina, due to the large supply available for export, have been reflected by a decline in the market in this country. Cotton. Statistics published by the Department of Commerce snowing the amount of cotton ginned up to the beginning of March from the 1925 crop indicate that production exceeded early estimates and was the second largest on record. Since 1921 the crop has increased each year, and in 1925 the yield amountedfto 16,085,905 bales, a crop more than twice as large as in 1921 and nearly as large as the record yield of 16,135,000 bales in 1914. A more detailed comparison of the 1925 yield with that of other recent years and 1914 is presented in the chart. In all States except Texas, where the midsummer drought seriously injured the crop, production was larger than m 1924, and in Virginia, North Carolina, Mississippi, Tennessee, Arkansas, Louisiana, and California the yield was larger than in any previous year. Comparison of the yields in the several States with those in 1914, when the record crop for the country was grown, although in some States production in that year was not the largest on record, shows that in South Carolina, Georgia, Florida, Alabama, and Texas there was a perceptible decline between 1914 and 1925, but that production in Virginia, Mississippi, Tennessee, Arkansas, Louisiana, and Oklahoma increased. The decline of production in all of the first group of States except Texas, which can be explained largely by the drought in 1925, probably indicates a change from cotton to other types of agriculture. Statistics APRIL, 1926 FEDERAL RESERVE BULLETIN showing production in each of the leading cotton-growing States in 1925 and in 1914 are given in the following table: COTTON PKODUCTION, $Y STATES [Equivalent, 500-pound bales] 1925 State 1914 1,163,902 38,168 1,356, 088 1,979,065 517,162 1, 603,227 909,755 1,690,748 4,164, 569 ' 120,519 25,222 930,631 1, 533,810 2, 718,037 81,255 1,751,375 1,245,535 383,517 1,016,170 449,458 1,262,176 4, 592,112 49,835 16,085,905 16,134,930 52,380 1,101,090 Virginia-.. N o r t h Carolina South Carolina Georgia. Florida. Alabama Mississippi Tennessee Arkansas Louisiana Oklahoma Texas.. California United States MILLIONS OF BALES 18 MILLIONS OF BALES 1921 1922 1923 192*5- 1925 In February and the early weeks of March exports continued to fall below the volume of last year? and from the beginning of the cottonmarketing season last August through the week ending March 19 exports amounted to 6,364,000 bales, as compared with 6,786,000 bales for the same period a year ago. Takings, on the other hand, of American cotton during the same period by spinners throughout the world were larger than in the previous season, but the greater part of this increase was due to larger takings by mills in the United States and Canada. Consumption by mills in the United States has not increased as rapidly as takings, and stocks were 18 per cent larger at the end of February than a year earlier. Stocks at warehouses throughout the country, especially in the South, were 54 per cent larger at the end of February than in 1925 and reflected the large increase in the crop and the falling off in the foreign demand. AFRIL, 1926 3FEDEBAL BESE&VE BULLETIN" 233 of 1925 and were generally lower than for any month since 1920. Preparations for the new crop made good progress in March and plant beds were prepared. Eeports by farmers to the Department of Agriculture of their intentions to plant in 1926 indicate that total tobacco acreage will be smaller than in 1925, but reductions are not indicated for all areas. Growers of cigar types and of most dark types indicate a smaller acreage, but growers of burley and of Maryland export type tobacco indicate that plantings will be about 8 per cent and 20 per cent larger, respectively, than in 1925. In the tobacco-manufacturing industry the output of cigars was larger in February than in January, but production of cigarettes and manufactured tobacco products declined. Compared with other recent years, the output of cigarettes exceeded all previous records for the Tobacco. Late in February and in March marketing month of February, but that of cigars was of the 1925 tobacco crop was practically com- smaller for that month than in any other recent pleted, and markets in several of the leading year; producing sections closed. Total sales by Fruits and vegetables* producers for the season, August through Early fruit and truck crops suffered some February, in the Virginia, Carolina, Kentucky, damage from the March frost which affected and Tennessee markets, exclusive of deliveries the region south of North Carolina and to cooperative marketing associations, amount- Tennessee. Northward, however, the cool ed to 657,732,000 pounds, as compared with weather has had a favorable influence in re467,602,000 pounds during the corresponding tarding too rapid development. period last year. Sales in the Virginia, North The marketing of fruits during February Carolina, and South Carolina markets were was carried out at a slower rate as compared considerably larger than in the previous with the corresponding month a year ago, season, and in the burley tobacco sections of car-lot shipments of grapefruit showing a deKentucky sales were also larger, notwith- crease of more than 40 per cent, oranges standing the fact that the crop was smaller approximately 7 per cent, and lemons 6 per than in 1924, The following table shows in cent. Apple shipments, however, were almost greater detail the amounts of the different double those of last year. Strawberry shiptypes of tobacco sold in the several producing ments, which have been slow in getting under sections during the seasons ending with Feb- way this season, showed an increase over ruary in 1925 and 1926: January, but were still considerably under those of last February. SALES OF TOBACCO AT LOOSE-LEAP WAREHOUSES X The trend of the apple market is still un(AUGUST TO FEBRUARY, INCLUSIVE) certain, heavy supplies tending to lower prices. 1925-26 1924-25 Reports of cold-storage holdings indicated that Virginia: Pounds Pounds March 1 stocks were fully 20 per cent above Dark belt ___ _ 26,560,363 22,268,411 Bright b e l t 62,550,885 56,891,113 the 5-year average, with boxed apples running North Carolina 232,015,764 338,106,775 Demand, South Carolina 39, 759, 569 27 per cent above the average. 52,293, 682 72,053, 632 however, continues fairly active and some Burley 87,715,457 44,613, 266 Western dark_ _._ _ 90, 504,835 Total. -- — • . • 657,731,997 467,601, 755 improvement has been noted in the foreign trade. 1 Exclusive of deliveries to cooperative marketing associations. In the vegetable markets, potatoes, sweet Partly because of the offering of poor grade potatoes, onions, and spinach were slightly tobacco for sale at the end of the season, prices lower in the first half of March as compared of all types of tobacco in the Virginia markets with the month of February. Mexican tomawere lower in February than in January. Prices toes and Spanish onions have been entering of nearly all types were lower than in February the market in greater amounts, the former Limited buying by mills and exporters; weakness in the price, of textiles, and no generally unfavorable conditions regarding the new crop were accompanied by a decline in the price of raw cotton in February and the first weeks of March, and following the ginning report on March 20 the price declined to the lowest level since 1922. Weather conditions in February and the early weeks of March were generally favorable for the development of the new crop, and in certain sections of Florida and In the southern part of Texas the crop was planted early and the young plants are growing rapidly. In view of the larger crop and lower prices in 1925 than in other recent years, efforts are being made throughout the Cotton Belt to reduce the acreage this year, but it is yet uncertain as to the extent to which a reduction has taken place. 234 FEDERAL' RESERVE BULLETIN making up the larger part of the supply, while the latter totaled about 7 per cent of the supply. Potato shipments during March were under those of a year ago amounting to about three-fourths of the we ly movement last year. Shipments of Florida veg< cables continue under those of last year, both acreage and yield being light, Texas cabbage is moving rapidly to market and growers are realizing about $35 per ton, about three times the amount realized last year. The March 1 report of uIntentions to plant/' Issued by the Department of Agriculture, indicates that farmers are planning an increase of 4 per cent in the acreage of potatoes as compared with last year* The chief increase in the acreage now planned is found in the Southern and Western States, where an increase of around 14 per cent is planned or planted. Livestock. Reports from the western range area indicate that livestock wintered in good condition and that losses were lighter than usual. The Department of Agriculture reports the average range condition for the Western States as 90 per cent of normal on March 1, as compared with a condition of 79 percent on the same date last year. ' The month of February was mild over much of the range country, and winter ranges which had been covered with snow became available to an increasing extent. Supplies of hay and other feeds have been ample, for the most part, and are sufficient to last until spring grass. ' Estimates of the spring move•ment of cattle from the Southwest States are lower than for last year, although the quality of stock is reported much better, and a good proportion of grass-fat cattle will go to market. The estimated movement from Texas is larger than last year, while a decrease in the movement from New Mexico and Arizona is anticipated. The receipts of cattle at the principal markets during February showed the usual seasonal decline from January, but short-fed beef animals swelled the total above the usual February marketings of preceding years. Average prices of native beef steers in February were approximately on the same level as In January, while a very slight decrease was effected in quotations on fat cows and heifers. The market for both classes, however, showed an upward trend in March, an average gain of 20 cents per hundred for the former and 65 cents per hundred for the latter being recorded in the Chicago market in the week closing March 13. 1926 Feeders are offering sharp competition for animals suitable for returning to the feed lot and, as a consequence, the spread between the lower grades and finished stock has been greatly reduced. Good profits were realized by feeders who stocked their feed lots at the lower level of prices prevailing last fall, and the favorable feeding ratio of corn is stimulating buying, even at the comparatively high level of prices now prevailing. The hog market averaged 40 cents higher on the bulk of sales in the Chicago market during February as compared with January. The average weight is continuing to increase, reflecting the favorable feeding ratio of corn, and lightweights are commanding a premium of $1.50 to $2.00. Receipts at public stockyards during February were materially reduced as compared with January, and the slaughter for the month was approximately a third less than for February of last year, 4,447,000 head being killed In 1925 as compared with 3,351,000. head for February of this year. The trade in sheep and lambs was marked by declines of $1.75 in Iambs and approximately $1 in yearling sheep. The movement of lambs from Colorado and Nebraska feed lots, which was under way during February, brought a sharp decline in the lamb market, as shipments consisted of a high proportion of overweight lambs which packer buyers purchased only at a discount. The run of overweight lambs is attributed to delayed marketing on the part of western feeders, coupled with the fact that Iambs entered the feed lots last fall at higher-than-average weights. Reports indicate a continued lack of interest in contracting of lambs for fall delivery. Very little wool Is being sold in advance of shearing, and the few sales that have been made Indicate a level of prices about 4 cents below that of last year. The average prices of livestock at the Chicago market for February, with comparisons, is reported by the Chicago Federal Reserve Bank as follows: AVERAGE PRICES OF LIVESTOCK [Per hundred pounds at Chicago] Months of— Week ending Mar. Febru- Janu- February, ary, 13,1926 ary, 1926 1925 1926 Native beef steers (average) Fat cows and heifers _ Hogs (bulk of sales) Yearling sheep Lambs (average) __ _. . - $9.85 7.25 12. 25 10.10 12. 20 $9.65 6.60 12.35 11.65 13.50 $9.65 6.65 11.95 12.70 15.25 $9.35 5.65 11.05 14.05 17. 50 APRIL, 1926 Dairy products* FEDERAL RESERVE BULLETIN PER 235 CAPITA CONSUMPTION OF DAIRY PRODUCTS THE UNITED STATES IN A marked increase In the production of dairy products was In evidence during the month^of ConIce February, receipts of butter at the five prinMilk Butter Cheese densed cream Year milk cipal markets showing a gain of about 12 per cent, over the same month last year. Receipts Gallons Pounds Pounds Pounds Gallons of cheese at the primary markets in Wisconsin 1910 17.70 3.92 1.04 4.00 16.90 1914... 1.68 also showed an increase of 10 per cent for the 1916 3.04 15.40 2.08 2. 89 1917 10.49 42.4 same period. 2.07 14.57 14.00 .___ 43.0 3.00 12.50 2.14 The butter situation remains fairly stable, 1918-1919 14.80 43.0 3.50 12.30 2 49 14.70 3.50 10.17 43.0 2.46 the price having recovered from, the break in 1920 1921 16.10 49.0 3.50 11.40 2.28 early' February, and the average price for the 1922. 16.50 50.0 3.70 12.69 2.43 1923 17.00 3.90 13.25 53.0 2.68 month did not vary greatly from that of Janu- 1924 17.25 4.20 14.00 2.50 54.75 2.80 ary. Stocks in cold storage on-March 1 totaled 1925 26,321,000 pounds, as compared with 28/739*000 pounds on the same date last year. The decline MINING In storage holdings during February, however, Mineral production was smaller in February was approximately 4,000,000 pounds less than last year. By action of the President, the than in-January, owing partly to the shortness tariff on butter Imports has-been raised, from of the month and partly to the seasonal 8 to 12 cents a pound, effective April 5, 1926. decline in bituminous-coal production. The The trend In the cheese market was slightly index of mining output was also smaller than downward during February, and a further a year ago, decreases as compared with last reduction of 1 to 1M cents was made during February In the production of anthracite, pig the first . week In • March, Storage . holdingsiron, copper, and silver offsetting increases in still remain above those of last year, the stocks bituminous coal, petroleum, zinc, and lead. on March 1, totaling 42,779,000 pounds, as Weekly figures for March showed increases in compared to 34,647,000 pounds on the same output of anthracite and decreases in that of date last year. The reduction of storage bituminous coal, with both greater than in 1925. holdings during the month of February, how•ever, was slightly greater than for the same Coal and coke. Due to the resumption of anthracite-coal month last year, indicating that the movement into consuming channels is progressing satis- production and the usual seasonal recession, •factorlly. The Chicago Federal Reserve Bank markets for coal and coke were unsettled .reports that the distribution-in February from during the latter part of February and the the primary markets in Wisconsin, in which first part of March. With industrial demands State 75 per cent of our total American type of continuing at a high rate, however, the re-cheese Is produced, Increased 19 per cent over adjustment was orderly. The Coal Age index of spot prices for bituminous coal declined the same period a year ago. The trend in the consumption of dairy prod- slightly during the period, falling from $2.10 ucts in the United States reflects a gradual on February 15 to $2.03 on March 15, about increase, which has tended to offset the mate- the same level as in March, 1925. Output of rial increase in production during recent years. bituminous coal in February was estimated at The following figures, .supplied by the Depart- 48,577,000 net tons, the lowest since August, ment of Agriculture, indicate the rate at which but still 20 per cent above February, 1925. -During the first two weeks of March production this Increase has taken place: 236 FEDERAL RESERVE BULLETIN fell off rapidly, average production per working day being 1,782,000 net tons for the week ending March 13, as compared with 2,002,000 net tons four weeks earlier and 1,440,000 net tons for the second week in March, 1925. As production of anthracite coal did not begin in large volume until the third week in February, total February output was only 2,083,000 net tons, as compared with 7,176,000 net tons in February, 1925. During the first two weeks of March output was high, daily production averaging 1,966,000 net tons during the week ending March 13, as compared with 1,656,000 net tons during the corresponding week last year. Although total production of coke during February of 4,902,000 short tons was 283,000 tons under the January peak, it represented a higher daily rate of output. Actual production of beehive was 1,402,000 tons, the highest since August, 1923, while output of by-product at 3,500,000 tons was the lowest since October, 1925, but above all previous months. During the first part of March output of beehive fell off rapidly, but was still above the first half of March, 1925, production for the week ending March 13 being 262,000 tons, as compared with 362,000 tons four weeks earlier and 243,000 tons for the second week in March, 1925. Quotations for coke fell rapidly following the settlement of the anthracite strike. Connellsville coke being quoted at $3.25 on March 16, as compared with $10.50 on February 10. Petroleum. Declines in the production of crude petroleum during January and a continuation of the output in a relatively small volume up to the middle of February were followed by rising prices, and for the week ending March 20 the average price of crude petroleum for ten fields was $2,048 a barrel, as compared with $1,842 early in January. Partly as a consequence of this improvement in prices, production was stimulated late in February and in the early weeks of March, and for the week ending March 13 the daily average output amounted to 1,935,200 barrels, the largest since the middle of January. Price advances in March occurred in nearly all of the leading producing fields, but those in California, which were advanced from 1 to 44 cents per barrel, according to gravity, seemed to be the most significant, since they were the first in more than a year. Declines in production in California since January have been relatively greater than for the country as a whole, as is shown in the APRID, 1926 following table, and it was probably in consideration of this factor that prices advanced. DAILY AVERAGE PRODUCTION OF CRUDE PETROLEUM 1 [In barrels of 42 gallons] United States California January Week ending— Feb. 6 Feb. 13 Feb. 20.. Feb. 27 Mar. 6 Mar. 13 __ 1926 1925 1926 1925 615,147 604,622 1,924,387 1,919,968 608,000 606,500 603,500 603,000 599, 000 607, 500 595,500 598,100 601,800 602, 000 603,000 603,000 1,906,250 1,902,500 1,902, 750 1,927, 050 1,920, 300 1,935, 200 1,941,600 1,935,100 1,947,600 1, 943, 750 1,944,450 1,949,200 1 Monthly figures, Bureau of Mines, Department of Commerce; Weekly figures, American Petroleum Institute. Statistics prepared by the Bureau of Mines of the Department of Commerce and published early in March showed that the production of gasoline in January was 14 per cent larger than a year earlier, and that stocks at the end of the month were 20 per cent greater than on the corresponding date in 1925, exceeding stocks at any previous period. The large increase in gasoline production in 1925 and in the first part of this year, which resulted in the large addition to stocks, notwithstanding the fact that gasoline consumption was in record volume, was due in part to the "cracking process" used in refining, which enables a larger amount of gasoline to be produced from crude petroleum than formerly. Despite the large increase in production and stocks, prices of gasoline have advanced somewhat since the beginning of the year, as will be seen in the accompanying table, but near the middle of March the market was not as firm as earlier in the year and quotations at refineries showed slight declines. PRICES OF GASOLINE1 [Cents per gallon] Refineries Average Average for 10 secat repre- tions of sentative the refining United centers States Week ending- Jan. 1 Feb.27 Mar. 6 Mar. 13 Mar. 20 __- --_ . .. i Oil, Paint, and Drug Reporter. Service stations 11.125 11. 375 11. 375 11. 325 11.287 20.92 21.77 21.97 22.17 22.17 APRIL, 1926 FEDERAL BESEBVE BULLETIN 237 Correction8—In this section of the BULLETIN levels since last October. The decline in the for February, 1926 (pe 85), the footnote to index of manufacturing production from Janthe table referring to November 30 should uary to February may be attributed to the have been omitted* Statistics showing stocks shortness of the latter month. As compared related only to stocks east of California and with February of last year, some increase in the December, 1924/figure should have been the index was shown, owing chiefly to the 312,725,000 barrels instead of 311,479,000 greater production of automobiles and petroleum products. The indexes for lumber and barrels, products, paper and printing, tobacco products, Nonferroiis metals. During the latter part of February and the and rubber tires were also slightly larger than a first part of March quotations for nonferrous year ago, and those for iron and steel and texmetals maintained the general trends that tiles showed no significant changes, while the characterized the preceding month. Tin con- food products and leather and shoe indexes tinued to rise, and lead, zinc, and silver reacted declined. Trade reports indicate continued further to the lowest levels in recent months. activity during March in iron and steel and Refined electrolytic copper delivered in New automobiles, with some evidences of curtailYork was stable at 14 £g to 14 M cents. Pro- ment in textiles. duction of copper in the United States during February fell"to 135,586,000 pounds, the lowest Food products. The production of meat products during Febsince November and 2 per cent under February, 1925, but stocks on hand at the end of the ruary reflected the usual seasonal decrease, and month again showed a slight increase. Feb- the number of animals slaughtered was less than ruary output of lead was the lowest since Sep- for the same period last year. Slight increases tember, but at.a higher daily rate than in Jan- in the number of cattle, calves, and sheep killed uary and 14 per cent above February, 1925. were greatly offset by a decline of over 1,000,000 Shipments of slab zinc in February were head of hogs. Total value of sales billed slightly under the corresponding month last to domestic and foreign customers by 47 meatyear, but output was 14 per cent greater, packing companies in the United States, as average daily production being higher than the reported by the Chicago Federal Reserve Bank, January peak. Stocks of slab zinc in the declined 7 per cent from January and was 8 hands of refineries at the end of the month per cent greater than in February, 1925. The increased as a result to 20,341 tons, the largest latter figure, however, is offset to some extent since July. On March 17 lead was quoted in by the increased level of prices prevailing this New York at 8M cents, the lowest since July, year. Storage stocks of pork and lard, which are 1925-, and 1J^ cents under the peak in November. -Quotations for zinc in St. Louis, after dropping increased at this season of the year in anticipafrom 8% cents in November to 7% cents in tion of the summer trade when the run of February, fluctuated between 7M and 73 hogs is light, displayed less than the average rate of increase. Stocks of salt pork increased cents during the first part of March. With the market quiet, the price for silver approximately 28,000,000 pounds during Februhas shown a further slight recession, quota- ary, but the March 1 holdings were about tions for bar silver in New York standing at 66 137,000,000 pounds less than on the same date cents on March 17. This is the lowest since last year.. The same trend was in evidence in July, 1924, and 6% cents under the September lard stocks where, with a February gain of high. Deliveries of tin to the United States 12,000,000 pounds, the storage holdings on during February fell off from the high January March 1 totaled only about one-half of the figure, but with that exception were the largest amount held on the corresponding date last since September, while stocks in New York at year. A fair export movement of lard was the end of the month were the largest since the maintained in February, and a slight increase end of August. Quotations for tin continued in the shipments from the principal ports of strong during the period, Straits tin being the United States during the first two weeks quoted at 66 cents on March 17, the highest in March brought the export movement for that period up to 29,621,000 pounds, as compared since August, 1919, with 27,149,000 pounds during the correspondMANUFACTURING . ing period last year. Manufacturing production and factory emThe activity in the flour trade has continued ployment and pay rolls have continued at high slow, with production during February running 238 FEDEBAL KESEBVE BULLETIN under January totals and below that of February of last year. Practically all milling centers participated in the decline with the exception of Buffalo, which increased its output. Export trade was very quiet, although the LatinAmerica trade was up to the seasonal average. January established a new low record in total exports for that month, when the outward movement totaled only 676,000 barrels. Flour prices declined in late February as a result of the lowered wheat market, and distributors and bakery interests, whose supplies had been running low, stepped into the market to replenish stocks. Although orders were only for immediate needs, milling activity was stimulated to the extent that all the principal milling sections, with the exception of the Pacific coast, were running at a higher rate of capacity during the first half of March than for the corresponding period last year. Pacific coast mills, during the same period, were producing an output about one-third less than • last year. The lowest level in four years was reached in the sugar market on March 24, when the refined product was offered at 4.90 cents. Refiners on the eastern seaboard had been offering refined stocks during the first half of March at a range of 5 to 5.20 cents. Meltings for February were the highest since last September, totaling 444,259 tons. Stocks at the end of the month materially increased also, amounting to 178,803 tons, as compared with 137,829 tons on the same date last year. The movement of Cuban sugar to this country has, so far, been under that of last season. Textiles* Textile markets were weaker in February and March, buying was limited in volume, and prices declined. The Fairchild composite textile-fiber index declined in March to the lowest point since April, 1922. The drop in rawmaterial prices has in recent weeks extended from wool and cotton to silk, and has likewise been reflected in prices of fabrics. The accompanying table shows certain of the Fairchild textile indexes for recent dates compared with previous figures APRIL, 1926 FAIRCHILD INDEXES OF TEXTILE PRICES For week e n d i n g Index Textile fibers—composite _ >. r Cotton __ Domestic raw wool Raw silk Rayon—. Textile fabrics: Cotton goods.. „. Woolen and worsted goods 1 _ Silk goods 2 Men's suits (spring) 3 Mar. 21, 1925 Mar. 19, 1926 Feb. 19, 1926 161. 92 19.33 100. 631 59.37 20.00 171.98 20.64 108. 642 65.10 20.00 198.45 25.67 130. 67a 13. 614 221. 714 132. 05 14. 075 222.119 132. 35 24.614 15. 794 246.190 123.69 24.614 20.00 1 Quotations as of 15th of month. Quotations as of 1st of month. February quotations. 2 3 In the cotton industry, the decline of yarn and goods prices? which began last fall but waschecked in January, wasjresumed in February, and the Fairchild indexes fell sharply to .the lowest pointerecorded since the spring of' 1922. These decreases reflect a similar drop in the price of raw cotton, which has continued rather steadily for several months. . Buying of cotton goods ' and yarns has slackened somewhat. Mill activity was. rather well sustained during Februarj^, cotton consumption was the largest ever recorded for that month, • and spindleactivity has been previously exceeded in only a few months. Unofficial reports, however,. indicate some curtailment in.yarn mills duringMarch, Finishers of cotton fabrics reported increases in billings and shipments during February as compared with January, and billings and orders were larger than in February, 1925. Stocks have decreased slightly since the end of December, but were larger than a year earlier. Raw-wool prices continued to decline in March and fell below the low levels of the three preceding years. The Fairchild index of domestic-wool prices for the week of March 19 was the lowest since May, 1922. Quotations on foreign wools recently have declined only slightly and the corresponding Fairchild index remained above the low point of last September. Total imports of raw wool in January and February were smaller than in the same months of last year, but receipts of foreign combing APRIL, 1926 FEDERAL RESERVE BULLETIN wools at principal ports from January 1 to March 20 totaled 76,933,000 pounds—18,474,000 pounds more than in the corresponding period of last year. Imports of clothing and carpet wools have been smaller this year. In piece goods, the heavy-weight season is well under way, with prices materially lower than those of a year ago. Operations were curtailed^ in February, according to statistics of machinery activity and employment, and pay rolls were smaller than in the corresponding month of last year. Some of this curtailment is due to a strike in certain New Jersey mills. Apparel manufacturers are busy supplying spring garments. Employment and pay rolls in the clothing industries showed the usual seasonal increase in February, but were not as great as a year ago. Since the first of the year a definite reaction from the high rate of activity of the latter part of last year has occurred in the silk industry. Prices of raw silk and of silk goods have declined and manufacturing operations have been curtailed. Raw-silk prices dropped rather sharply in the latter part of February and in March, • falling to near the low levels of last spring. Deliveries of raw silk to mills were fairly well maintained in February, and although seasonally smaller than in January, they equaled the December deliveries and exceeded those of any previous February, Loom activity was curtailed in December and January, but continued much greater than a year ago. Reports indicate some further curtailment in February and March, accompanying the slackening in the raw-silk and silk goods markets. Imports of raw silk were smaller in February than for any month since July. Prices on certain foreign makes of rayon were reduced in March, but domestic quotations remained unchanged. Buying of knit goods was reported to be somewhat limited in volume in March, and, reflecting declines in raw materials, hosiery prices were reduced. Operations among knit-goods manufacturers, as indicated by employment and pay-roll statistics, were well sustained through February. Preliminary February statistics from hosiery manufacturers in the Philadelphia and Atlanta Federal reserve districts indicate that production and shipments continued at about the same rate as in January, but that orders decreased. January knit-underwear figures showed a large production of summer garments and substantial increases in new orders as compared with November and December, 239 Iron and steel. Production of iron and steel during February was at close to the rate of output, prevailing during December and January, and trade reports indicate that this volume has been maintained during March. Buying has; not- kept up with production and shipments, and unfilled orders have declined, those of the United States Steel Corporation falling from 5,033,364 tons at the beginning of the year to 4,616,822 tons at the end of February. Toward the end of March new contracts for the second- quarter were entered into. Connellsville-coke contracts were made at prices averaging about $3.25 a ton, as compared with $3.75 to $4.10 for the first quarter. Iron-ore prices for the 1926 season have been reestablished by a recent sale at the, 1925 level—$4.25 a ton. . Ferromanganese prices were reduced in the latter part of March. Buying of pig iron has not been very active, and prices were reduced by some producers during March. Steel prices remained firm during February and March, with only minor changes in a few lines. Railroad buying of steel has been somewhat larger.'than a year ago, although smaller than in 1924. Building consumption has also been large, and bookings and shipments of structural steel were greater in February than in the same month last year. Fabricated steelplate bookings were also larger than a year earlier. Production and shipments of sheets by independent manufacturers exceeded those. of February, 1925, but sales and unfilled orders showed decreases. Automobiles and tires* Production of passenger automobiles during the first two months of this year was greater than in the corresponding period of 1925 and 1923, but less than in those months of 1924, the previous record. Truck output exceeded that of January and February of any previous year. Trade reports indicate a continuation of production at a high rate during March. Further readjustments in prices have been announced by various producers, many of them making allowances for the prospective reduction in the Federal tax on automobiles sold by manufacturers. Distribution of cars was large during February, exceeding that of a year ago by an appreciable margin. Reports indicate, however, that retail sales by dealers were much smaller than their receipts from manufacturers; the ratio of dealers* retail sales to receipts reported by manufacturers producing 63 per 240 FEDERAL KESEBVE BULLETIN cent of the total output equaled 73 per cent In February, as compared with 87 per cent in the corresponding month of 1925, 70 per cent in 1924, and 81 per cent in 1923. This indicates that dealers' stocks are increasing, and reports to the Chicago Federal Reserve Bank by representative dealers show stocks at the end of February 18 per cent greater than a month earlier and 30 per cent larger than on the same date in 1925. Wholesalers reported to the Chicago bank an increase of two-thirds in number of cars sold over those of a year ago, while retailers sales were 5 per cent larger. Sales of used cars were slightly smaller than during last February. Production and shipments of rubber tires and tubes increased in February as compared with January. Output was slightly greater than a year ago, but shipments were smaller. Stocks of tires and tubes were enlarged and at the end of the month were the largest on record. Crude-rubber prices, which declined almost steadily from early in December until late in February, falling to about 50 cents a pound, strengthened somewhat in March and rose to above 60 cents. Imports of crude rubber continued large. Lumber. Reports to the National Lumber Manufacturers Association for February show for all classes of lumber combined aggregate orders slightly in excess of shipments, and shipments running somewhat above production. A similar statement holds true for softwoods and for hardwoods, as shown by separate compilations for those two general classes of lumber except that shipments of hardwoods were slightly below production. For the 10 weeks ended March 13, also, orders of softwoods exceeded shipments, and shipments exceeded production, although in this period as a whole production of hardwoods ran above shipments. Total lumber cut in February was in nearly the same volume as in January of this year and in February of 1925. As reported by 157 mills to the Southern Pine Association, shipments of southern pine in February exceeded production, both production and shipments being in smaller volume this year than in February of 1925 (as reported in 1925 by 173 mills). Production of Douglas fir, as reported to the West Coast Lumbermen's Association by 95 mills this year, in February ran above shipments, both production and shipments being in nearly the same volume this year as last (as reported in 1925 by 113 mills of the association). APRIL, 1926 Hides, leather, and shoes. Little change has been noted in recent weeks in hide and leather markets, and the state of slackened activity prevailing earlier in the year has continued. Hide prices reached a low point in February, and, although some quotations advanced slightly toward the end of that month, they receded again in March. Leather production was generally smaller in January than in December or in the preceding January. Stocks of upper leather in process of manufacture were enlarged, the increase in goat and kid skins being especially worthy of note. Production of sole leather continued small in February, and tanners' finished stocks decreased further, but stocks in process increased slightly. Boot and shoe production increased in February, but for the fourth consecutive month was smaller than in the corresponding month of the previous year. In fact, February output was exceeded by that of the same month tor each of the three preceding years. The increase as compared with January was noted in all the important shoe-producing Federal reserve districts. Sales of shoes at wholesale were larger than in January and also greater than in February, 1924 and 1925, but smaller than in the same month of 1922 and 1923. BUILDING The record of construction for February indicated some recession from the very high level of January. On a comparison with February of last year, however, the value of contracts awarded in 37 States east of the Rocky Mountains in February of this year, as reported to the F. W. Dodge Corporation, shows a gain of 25 per cent. This gain over the year is fairly m. line with the general trend of construction activities for several years past, during which the volume of buildin the country has tended continuously to advance to new high levels. Over-the-year gains shown for January and December were, it is true, much greater. They- indicated a marked accentuation of the persistent upward trend of earlier months. Construction volume in December of last year ran some 56 per" cent above that of December, 1924; and in January, although the volume of building fell off by rather more than the usual seasonal December-January decrease, it was still 48 per cent above that of January, 1925. In comparing February with the month before, the very hign January record must be kept in mind and also the difference in number of working days, FEDERAL RESERVE BULLETIN APRIL, 1926 which accounts for some relative diminution of February totals. Extreme winter weather conditions also are noted as affecting the February totals. Percentage gains and losses over the month and over the year, as computed by the F. W. Dodge Corporation, are given in the table following, by regions: PERCENTAGE ' GAIN ( + ) OR LOSS (—) IN VALUE OF CONSTRUCTION CONTRACTS AWARDED 1926 compared with 1925 Area Total, 37 States east of the Rocky Mountains. _ New York State and northern NewJersey New England States.-... Middle Atlantic district (eastern Pennsylvania, southern New Jersey, Maryland, Delaware, District of Columbia, and Virginia) _____.--. Pittsburgh district (western Pennsylvania, West Virginia, Ohio, and Kentucky) _ „ Southeastern States (North Carolina, South Carolina, Georgia, Florida, Tennessee, Mississippi, Alabama, Arkansas, and Louisiana)The Central West (Illinois, Indiana, Iowa, Wisconsin, Michigan, Missouri, Kansas, Oklahoma, and Nebraska).-. The Northwest (Minnesota, North Dakota, South Dakota, and northern Michigan)... __. Texas. February compared First with two January February months of year +25 +37 +65 -19 +72 -7 -23 -19 +12 -22 -3 -1 +19 +83 +72 +30 +8 +22 +8 +15 +25 _4 +21 +32 -15 In the two months January 1 to March 1 of this year contracts awarded in the 37 States covered by the Dodge Corporation data (accounting for over 90 per cent of construction in the country as a whole) amounted to $847,000,000, exceeding awards in the corresponding period of 1925 by more than $225,000,000= In the 1926 total for these two months residential contracts accounted for $370,000,000, industrial buildings for $135,000,000, commercial buildings for $121,000,000, public works and utilities for $120,000,000, and other classes of construction for $101,000,000. For " contemplated projects " brought forward in February an aggregate valuation of $861,000,000 is reported by this corporation— an amount somewhat in excess of the corresponding figures for January. Distributing the net decrease of $67,000,000 (from $457,000,000 to $390,000,000) over the month in the total value of awards, it appears that this net change covered increases aggregating $34,000,000 in eight Federal reserve dis- 241 tricts—Philadelphia, Cleveland, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and Dallas; decreases of approximately $5,000,000 each in the Boston and Kichmond districts, and a decrease of $91,000,000 in the New York district. It is noted that the January figures for the New York district included a $50,000,000 power plant in New York City, and it will be apparent that the award covering this single project in January was a considerable factor in determining the percentage changes over the month for the district and for the country as a whole. Of the increase of $79,000,000, or 25 per cent, shown for February this year over the same month a year ago, nearly $42,000,000 is credited to the New York district, the remaining 10 Federal reserve districts showing a net increase of $37,000,000. Seven of these districts show increases and three-—Boston, Cleveland, and St. Louis— show decreases. For the value of residential contracts which constitute 46 per cent of the aggregate value of February contracts for all classes of construction a 6 per cent decrease over the month is shown, and a 28 per cent increase over February of 1925. The increase over February of last year for this class of construction amounted" to $39,000,000, of which $28,000,000 is credited to the New York district. Increases are shown for four other districts, Atlanta, Chicago, Minneapolis, Dallas, and decreases for six districts.On comparison of the February record of 168 selected cities with that for the preceding month, it appears that a slightly larger number of permits were issued in February for a slightly smaller aggregate estimated cost of construction. Both the number and estimated cost this year ran below the February record of 1925, the decrease over the year in estimated cost amounting to 8 per cent. Net increases over the year are shown for selected cities of the New York, Atlanta, and Dallas districts, and net decreases for cities in the nine remaining districts. In their survey for the month, the S. W. Straus Co. note that unfavorable weather conditions in the North and the coal strike " undoubtedly affected building conditions adversely/' but they do not find in the February record any indication of change in "fundamental conditions." Reports to the F* W. Dodge Corporation from the building departments of 207 cities show gains over February of last year for 73 .cities, decreases for 133 cities, and no change for 1 city. The Bureau of Labor Statistics index of wholesale prices of building materials fell off from 242 FEDERAL RESERVE BULLETIN 177.9 in January to 177.1 in February. On a 1913 base as 100 the New York Eeserve Bank's index of cost ofjbuilding advanced from 194 in January to 196 in February, covering a shifting in the building-wages index from 219 to 224, and in the building-material index from 178 to 177. TRANSPORTATION Although for all classes of freight combined freight-car loadings in February indicated a volume of shipments somewhat under that of the preceding month, the decrease was less than the usual seasonal change, and the Federal Reserve Board's index of freight-car loadings, calculated on a 1919 base as 100 and adjusted for seasonal variations, advanced from 118 in January to 127 in February. Measured in car loadings, the February distribution of freight ran in very nearly the same volume this year as in 1925. In the opening weeks of March, however, loadings were running fairly above 1925. For the year to March 20, according to compilations by the Bureau of Railway Economics, loadings reported this year ran above the fiveyear average for this period by 11.7 per cent. The excess over this average amounted to 16.8 per cent for manufactured products, 9.9 per cent for forest products, and 4.5 per cent for coal and coke, grain and grain products showing a deficiency of 1.5' per cent. February loadings of miscellaneous freight,' including merchandise in less than carload lots, and representing in general the distribution of manufactured products, were in nearly the same volume this year as last, and this class of freight also/ as well as total loadings, showed less than the usual seasonal decrease over the month, the Federal Reserve Board's adjusted index^advancing from 136 to 141. For each other class of freight also the seasonally adjusted index advanced in February Compared with the record for February of 1925, loadings of grain and grain-products, coal, and coke this year ran in somewhat larger, and loadings of ore, forest products, and livestock in somewhat smaller volume, but the differences except in the case of coke were relatively small. In totals for the several transportation districts, the usual seasonal change is apparent, a decrease over the month being shown for each district except the southern, and, except for rather substantial increases shown for the Pocahontas and southern districts, freight appeared, to be running in nearly the same volume this year as last in the several districts. APEIL, 1926 . During February the roads had in reserve available for service an average surplus of 227,000 cars, including 94,000 box and 87,000 coal cars, the average for February falling below that for January by some 57,000 cars. In reports for the first quarter of March. a further decrease in surplus to 202,000 cars is shown, but the surplus of reserve cars available for service has been generally at all times for a considerable period past adequate to pro» vide for current freight traffic requirements in the several districts. On March 1 the percentage of freight cars (93) and the percentage of locomotives (84) in serviceable condition were above the average percentages of recent years for this date, • R a t e of return earned in January on property investment, as shown by the carriers' books, is estimated by the Bureau of Railway Economics to be equivalent on an annual basis to 4.60 per cent, the corresponding figure for January of 1925 being 4.72 per cent. Carriers in the eastern district earned in January at the rate of 4.80 per cent this year and 5.04 per cent last year; in the southern district at the rate of 6.01 per cent this year and 5.45 per cent last year; and in the western district at the rate of 3.88 per cent.this year and 4.11 last year. According to computations by the bureau, the gross revenue of the roads in January fell short of the 1925 January revenues by $4,023,221, or 0.8 per cent, and total operating expenses were less this year by $5,313,265, or 1.4 per cent. As reduction in expenses somewhat exceeded the falling off in revenue, the operating ratio, or percentage of operating expenses to operating revenues, for the month decreased slightly over the year from 79.16 in January of 1925 to 78.72 per cent in January of this year, TRADE Wholesale trade. Wholesale trade was smaller in February than in January, according to the Federal Reserve Board's index of wholesale trade based on reports from firms in six leading lines of merchandise. Grocery, meat, and- drug sales were less than in January, but buying of dry goods and shoes by retailers in anticipation of the usual expansion in spring trade was larger. Sales of groceries declined from the January volume in all Federal reserve districts except St. Louis, and drug sales were less in all districts. Larger ,sales of dry goods than in January were indicated in all sections of the country except on the west coast, and buying APRIL, 1926 of shoes increased In all reserve districts except in the New York, Philadelphia, and St. Louis districts.. Total sales continued in about the same volume as in February of last year, declines occurring In sales of groceries, dry goods, and hardware and increases in those of meats, shoes, and drugs. Grocery and hardware sales were smaller in nearly all Federal reserve districts except in the Atlanta and Dallas districts, and sales of dry goods were smaller In seven districts. Shoe sales were larger in all districts except four, the largest increases occurring in the Boston, Atlanta, and St. Louis reserve districts. Merchandise inventories of wholesale firms increased in February in all leading lines, but a large part of this increase was in accordance with the usual seasonal developments. Compared with February of last year inventories were lower In nearly all lines, but the most substantial reductions occurred in the stocks of shoes, which varied from 4 per cent in the Richmond district to more than 33 per cent in the Chicago district. Reports from several districts indicate that accounts receivable at wholesale grocery, dry goods, and hardware firms were smaller at the end of February than last year and that those of shoe and drug firms were larger. Retail trade. Total sales at retail stores reporting.to the Federal reserve system from all sections of the country were smaller in February than in January, but, when allowance Is made for the smaller number of days In February, trade at department stores and mail-order houses and at nearly all reporting chain stores was maintained at a slightly higher level than In January. When compared with February of last year, sales at department stores were about 3 per cent and those of mail-order houses 6 per cent larger, and for the first two months of the year, January and February, trade at these stores exceeded that of last year by 4 per cent and 7 per cent respectively. February sales of department stores, however, were not larger than in 1925 in all Federal reserve districts, declines occurring in three eastern and two mid-western districts. In individual departments the most substantial Increases over February of last year were In sales of handkerchiefs, furs, gloves, knit underwear, shoes, toys and sporting goods, and luggage. Departments of these stores selling woolen dress goods, laces? trimmings, and embroidery, ribbons, 243 FEDERAL RESERVE BULLETIN women's suits and skirts, waists and blouses, and millinery, showed the .greatest declines. Merchandise inventories of department stores increased 5 per cent in February, .and at the end of the month were 3 per cent larger than a year earlier. In February retail merchants usually increase their stocks in anticipation of the expansion in the volume of spring trade, but the increase this year was not as large as that which usually occurs. As compared with February of last year, department-store stocks were larger in all Federal reserve districts except Boston, Cleveland, Minneapolis, and Dallas, the most substantial increases occurring at stores in the Chicago and San Francisco Federal reserve districts. Analysis of changes in inventories of separate departments at the reporting stores in. seven districts shows that the largest increases In stocks as compared with February of last year were at departments selling .silks and velvets, women's coats, juniors' and girls' ready-towear, furniture and bedding, and luggage, whHe those carrying woolen dress goods, cotton dress goods, neckwear and veilings, ribbons, women's suits and skirts, waists and blouses, and sweaters showed the most substantial declines. The rate at which stocks at department stores were turned over was slightly slower than in February of last-year, due largely to a slightly larger Increase In stocks than In sales. For the first two months of the year, however, the rate of turnover for the country as a whole was about the same as in 1925. EMPLOYMENT^ Employment and pay rolls In manufacturing industries recovered In February from the seasonal decrease noted in the preceding month, and the board's indexes again reached the high levels attained during the late months of 1925* Both Indexes were higher than In February of last year, although somewhat lower than In' the same month of 1924. Increases as compared with January were rather general among the various industries. Declines noted in some of the food-products and building-material industries were mainly seasonal in nature, and the large decreases in the woolen and worsted goods industry may be mostly attributed to. a . strike in certain New-Jersey nulls. The greatest increases were in automobiles, sugar refining, men's and women's clothing, shoes, and pottery. As compared with February, 1925, the iron and steel, lumber and products, paper and print™ 244 FEDERAL RESEEVE BULLETIN ing, and stone, clay, and glass products groups showed noteworthy increases in pay rolls, while declines were noted in the textile, leather, and tobacco groups. PRICES The wholesale price index of the Bureau of Labor Statistics for February stood at 155, compared with 156 for January. With the exception of "fuel and lighting," every group showed a decline from the previous month, the greatest fall being in " foods" and in the group of miscellaneous commodities. Fuels were higher, reflecting advanced quotations for coke and petroleum. The decline in prices in February brought the index to approximately the same figure as that of May, 1925, which was the lowest of last year. The prices of most of the different groups of commodities are also at about the same levels as in May, 1925, This is true of the food, metal, farm products, chemical, building material, and miscellaneous groups. The cloth and clothing group and that of house furnishings are considerably lower, however, the latter now standing at the lowest level since March, 1919. Fuels only were noticeably higher than last May, principally on account of higher prices for coke and crude petroleum, although gasoline is somewhat lower. In the first three months following last May, the general index rose from 155 (May) to 160 (August), falling again to 155 in February of this year. This advance and decline of the all-commodity index has not typified the movement of commodity prices in general so much as the specific fluctuations of the farm products group and the accompanying movement of the foods groups. Throughout the period the cloth and clothing group and that of house furnishings have declined almost continuously, although the net change has not been great, while fuels have advanced in about the same degree, and building materials, which fell in the first half of 1925, have since risen to the level of a year agoe The metal and chemical groups show little net change, the former being slightly higher and the latter a little lower than last year. Changes during the month of March were smaller than those of February. Corn, cattle, and sheep were somewhat lower, as well as raw textile materials, including cotton, wool, and silk. Changes among the other principal commodities were few and unimportant, except in rubber and cottonseed oil, which were up somewhat from the February quotations. APRIL, 1926 COMMERCIAL FAILURES AND BANK SUSPENSIONS COMMERCIAL FAILURES During the short month of February 1,801 commercial failures, involving indebtedness aggregating $34,176,348, were reported by R. G. Dun & Co. There was a decrease of about 22 per cent in both number and liabilities for that month as compared with January, during which month the number of insolvencies is usually at the high point for the year and the total indebtedness is also relatively large. As compared with totals for February of previous years, the number of failures in that month this year was the highest since February in 1922, and the aggregate indebtedness, 15 per cent lower than in February last year, was the lowest for that month since 1920. The number of failures this year was smaller than in February last year for trading organizations and for agents and brokers, but was larger for manufacturing class of enterprise; total liabilities were smaller for all three classes, the most marked decline from last year being in the liabilities of manufacturing enterprises, among which there were fewer large failures, with smaller average liabilities, this year than last. Failures during February, 1926, are shown in the following table, by class of enterprise: COMMERCIAL FAILURES DURING FEBRUARY Number Liabilities Class of enterprise 1926 1925 1926 All classes.____._. 1,801 1,793 34,176,348 40,123,017 Manufacturing Trading „.„._.. Agents, brokers, etc.._. 447 1,282 72 409 1,285 99 10,822,319 20,317,275 3,036,754 15,334,214 21,066,839 3,721,964 _ 1925 The number of failures was smaller in February than in January in all districts except the Philadelphia, Atlanta, and San Francisco districts, and was lower also than in February last year in all except the Philadelphia, Cleveland, and San Francisco districts. Total liabilities were lower in February than in January in all except the Philadelphia, Atlanta, St. Louis, and San Francisco districts, and were lower than in February last year in all except the Boston, Cleveland, Atlanta, Chicago, and San Francisco districts. Comparative data, by districts, for the month of February are presented in the table following. COMMERCIAL FAILURES DURING FEBRUARY, FEDERAL RESERVE DISTRICTS Liabilities Number 1926 1,801 Total.. . „ . _ _ 170 308 93 188 118 100 252 100 85 87 62 238 1926 1925 1926 Member * Nonmember All banks Federal reserve NumTotal 2 NumTotal district NumTotal ber deposits 2 ber deposits 2 ber deposits 1925 1,793 $34,176,348 $40,123,017 2,338,036 6,174,315 2,104,852 3,966,625 1,845,307 1,762,288 7,729,996 3,186,884 843,138 703,410 669,997 2,851,500 2,095,778 13,046,091 2,162,977 2,057,013 3,690,398 1,596,383 5,464,081 3,343,246 1,548,919 1,093,915 1,670,801 2,353,415 173 324 72 120 121 124 287 107 92 90 79 204 BANKS CLOSED DURING FEBRUARY, BY Federal reserve district Boston...... New York Philadelphia. Cleveland . Richmond Atlanta.. Chicago...„ St. Louis Minneapolis Kansas City Dallas San Francisco.. 245 FEDERAL' RESERVE BULLETIN APBIL/1926 All districts— 52 $13,808,000 Richmond AtlantaChicago. St. Louis Minneapolis Kansas City Dallas San Francisco... 105,000 $10,179,000 10 $3,629,000 694,000 2,347,000 1,013,000 5,910,000 2,193,000 474,000 1,072,000 105,000 279,000 2,347,000 796,000 4,647,000 1, 531,000 474,000 415,000 217,000 1,263,000 662,000 1,072,000 1 Comprises 8 national banks with deposits of $2,997,000 and 2 State member banks with deposits of $632,000. 2 Figures represent deposits for the latest available date prior to the suspension, and are subject to revision when information for the date ol suspension becomes available. FOREIGN TRADE BANK SUSPENSIONS During February 52 banks, with total deposits of $13,808,000, were reported to the Federal reserve banks as having been closed on account of financial difficulties. These totals are lower than for the preceding month, when there were 63 closed banks, with deposits of $16,653,000, and lower also than in February, 1925, when 60 banks, with deposits of $15,324,000, suspended operations. Of the banks reported as closed in February this year, 8 with deposits of $2,997,000 were national banks and 2 with deposits of $632,000 were member State banks—a total of 10 member banks with deposits of $3,629,000, as compared with 11 member banks with deposits of $5,373,000 in January. There were 42 nonmember banks with deposits of $10,179,000 that suspended in February, as against 52 with deposits of $11,280,000 the month before. Suspensions were most numerous in the Minneapolis and Chicago districts, and, within these districts, the largest numbers were in the States of Iowa, Minnesota, and North Dakota. Three banks in the Minneapolis district and one in the Kansas City district^ which had previously been closed^ were reported to have resumed operations during the month. The number and deposits of banks closed during February, 1926, are shown in the following table, by class of bank; the figures for closed banks represent so far as can be determined banks which have been closed to the public hj order of supervisory authorities, or by the directors of the bank on account of financial difficulties, and it is not known how many of the Institutions thus reported may ultimately prove to be solvent: Total Imports and exports of merchandise and the merchandise trade balance of the United States by months in 1925 and 1926, also the trade balance, including imports and exports of gold and silver, for the two months ended February, 1925 and 1926, are shown In the tables following: MERCHANDISE TRADE BALANCE OF THE UNITED STATES > [In thousands of dollars] Month 1925 Year January...... February _ March April . . . . May..,, _ June July August.. ._ September.. _ October.. November.. December 1926 January... __ _ . February Excess of imports Imports Exports 4,227,279 346,165 333,387 385,379 346,091 327,519 325,216 325,648 340,086 349,954 374,074 376,431 396,640 4,909,845 446,443 370,676 : : : : : : : : : : : : 453,653 398,255 370,945 323,348 1,868 339,660 379,823 420,368 490,567 447,804 468,306 416,767 388, 503 397,196 352,917 Excess of exports 684,434 100,278 37,289 68,274 52.164 43*426 14,012 39,737 70,414 116,493 71,373 71,666 19,569 35, 586 TRADE BALANCE OP THE UNITED STATES FOR TWO MONTHS ENDED FEBRUARY, 1925 AND 1926 [In thousands of dollars] Total Merchandise Gold 1925 8,641 Imports ___ 700,461 679,552 Exports 954,463 817,119 124,126 Net imports (—) or exports (+) +259,003 +137,567 +115,485 1926 Imports.... 864,663 805,270 44,767 Exports..... _.._ 774, 566 750,113 6,938 Net imports (—) or exports (+)_ -90,097 -55,157 -37,829 Silver 12,268 18,218 +5, 950 14,626 17,515 +2,889 246 FEDERAL. RESERVE BULLETIN GOLD MOVEMENTS GOLD IMPORTS INTO AND EXPORTS PROM GREAT BRITAIN—Continued UNITED STATES Total Imports and exports of gold during of origin or February and January, 1926, by countries of Country destination origin or destination, and comparative figures for the two months ended February, 1926 and 1925, are shown in the following table: EXPORTS GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES [In thousands of dollars] 2 months ended February— 1926 Country of origin or destination February January 1926 1925 IMPOETS Total - England.. .._— France Canada-=----=---Mexico _-Chile _._—-_—•_ Peru Japan All other.— - APRIL, 1926 25,416 19,351 44,767 5 19 9,826 286 9,753 668 4,000 859 3 52 17, 839 539 37 122 8 71 27, 665 825 9,790 790 4,000 1,618 ' 8,640 130 71 5,532 911 Total February January 1926 1925 £1,563,808 £2,447,525 £4,011,333 £8,622, 025 Belgium __ British India Egypt France Netherlands Russia . Straits Settlements.„.. Switzerland West Africa South America Allother Net exports Net imports 2 months ended February— 1926 8,175 158,324 8,150 50,159 1,694,642 8,175 681,175 8,150 213,256 1,773,608 480 44,000 651, 754 333,281 13,600 929 30,000 150,265 435,941 13, 600 1,409 74,000 802, 019 1,889,991 2, 077,050 3, 967,041 522,851 163,097 78,966 102,660 FOREIGN 88,453 5,500,515 135,461 34,114 468,369 327,052 9,500 3,500 37,927 2, 017,134 1,942,458 EXCHANGE The decline in sterling, which, began on February 18 with sterling quoted at $4.8641, came 1,996 to an end on March' 2, with sterling quoted at 759 $4.8573. On March 10 a definite upward EXPOKTS movement carried it to $4.8621, and again/ 124,126 6, 938 3,087 3,851 Total-.-— after a slight recession, to $4.8627 on the 23d, 6,110 England 1,339 after which it maintained. a level of about 18 18 France - -30, 010 $4.8623 . for the remainder 113 Germany 541 398 of the month. 4,318 Netherlands 94 119 French exchange continued its gradual down69 25 Canada.-— _ 1 014 1,014 Central America„___»_ movement, touching 3.43 cents on 1,013 740 ward 565 448 Mexico 51 210 March 29. The Belgian franc, after having 51 Argentina 1,300 500 800 Venezuela.,.-355 52, 694 been steady at between 4*53 and 4.55 cents 43 312 British India 1,317 991 326 British Malaya._._— 226 792 1,482 since the beginning of October last, declined 566 Hongkong.—— 23,147 on March 15 to 4.17 cents, again on the 17th to Australia 443 3,957 226 217 All other— 4.02 cents, and declined to 3.69 cents on the 16,264 37, 829 21,565 Net imports 115,486 30th. ' It was reported from.London that the Net exDorts Belgian Government had withdrawn its support from the exchange and that difficulties' had GREAT BRITAIN arisen in connection with the floating of a Following is a table showing gold imports stabilization loan. Italian lire maintained into and exports from Great Britain for their, level at about 4.02 cents. . The Danish February and January, 1926, and for two krone, which during February had twice passed months ended February, 1926 and 1925: above 26 cents, rose to 26.26 cents on March 13, the highest quotation since January, 1919, GOLD IMPORTS INTO AND EXPORTS FROM GREAT and thereafter averaged about 26.22 cents. BRITAIN The Norwegian krone rose from 21.12 cents 2 months ended on March 4 to 21.83 on the. 13th, the highest 1926 February— Country of origin or point touched since November, 1919; declined destination 1926 1925 January February to 21.31 on the 18th and rallied to 21.60 on the 27th. The Polish zloty continued its IMPORTS downward movement, declining from 13.16 £3,453,799 £4,524,575 £7,978,374 £6,679,567 cents'-on March 1 to 12.41 on the 18th, but Total—. 595,736 595,736 Belgium-L——..—— rallying .to 12.69 cents on the 20th. The 268 2,431,800 1,920,285 511, 515 Russia...—____-•___—. 378,083 Polish Finance Minister has announced that 364,396 182,474 181, 922 RhodesiaJ .-._ 1,806, 795 1,677,003 4,372,717 2,695,714 Transvaal 4,208,849 he will not. attempt to reestablish "the parity 412 4,213 United States.. 3,801 177, 758 of the zloty at 19.30 cents, but will try to 136,808 191,055 West Africa 54, 247 107,814 11,857 18,457 6,600 All other _ bring about stabilization at its present level APBIL, 1926 247 FEDERAL BESEBVE BULLETIN (about 12.50 cents). ^Netherlands florins, Spanish pesetas,- Swedish' kronor, and Swiss francs were very steady? as was also the Canadian dollar^ although the last named currency Is about one-half cent below the high levels reached last October and November. The downward movement of the Argentine eso/which began on February 13, continued uiing thefirsthalf of March, The peso declined from 93,22 cents on February 13 to 88.07 cents on March. 16, but rallied to 90.21 cents on the 29th.: Brazilian milrels declined from 14* 74 cents on March 1 to 14«08 cents on the 31st, while Chilean pesos stood at more than 99 per cent of their new parity. The Uruguayan peso declined from ^1.0337 "on February 18. to $1.0155 on March 17 and averaged $1.0218 during March, compared with $1.0311 during February, Japanese yen, after having reached 46.32 cents on February 20? declined to 44.82 cents on March 8, but rallied to 45,94 on the 31st. The Shanghai tael, which has shown a steady 'downward movement since last September, when It had risen to. 79.59 cents, declined to S 72.29 cents on March 31 and averaged 72.71 cents for . March, • compared with 73.75 cents for February and 74.75 cents for January. Indian rupees declined from 36.79 cents on February 4 to 36,30 cents on March 31 and averaged slightly lower during March than during February. • FOREIGN EXCHANGE RATES [In cents] March, 1926 Par value Exchange Sterling _. . Belgian franc... Danish krone. French franc. __ German reichsmark Italian lira..„-_._.__ Netherlands florin.. Swedish krona....__ Swiss franc Canadian dollar.... Argentine peso Shanghai tael... Japanese yen February, 1926 February, 1925; Low High Low High Aver- aver- 486.65 485. 73 486.27 486. 04 486. 51 486.34 477.24 19.30 3.69 4.54 4.54 4.55 4.54 5.08 26.80 25.90 26.26 24.61 26.04 25.38 17.81 19.30 3.43 3.73 3.55 3.76 3.68 5.28 23.82 23.80 23.81 23.80 23.81 23.81 23.80 19.30 4.00 4.02 4.01 4.04 4.03 4.11 40.20 40.02 40.10 40.04 40.14 40.08 40.17 26.80 26.80 26.82 26.76 26.83 26.78 26.94 19.30 19.24 19. 26 19.24 19.29 19.26 19.26 100. 00 99.41 99. 84 99.57 99.79 99,65 96.48 88.07 92.55 92.71 94.10 93.27 90.33 66.85 72.29 73.04 72.77 74.30 73.74 75.26 49. 85 44.82 45.94 44.85 46.32 45.40 39.08 BANK SUSPENSIONS IN 1924 AND 1925 A survey of bank suspensions in 1924 and 1925 naade during the past year shows that in 1925, 612. banks, with deposits of $172,900,000, , suspended "operations, compared with 777 banks, with deposits of $213,444,000, in 1924. Of the banks suspending in 1925, 146 with deposits of $67,264,000, were member banks and 466, with deposits of $105,636,000, were nonmember banks. The board's reports on bank suspensions cover all banks in the country, whether incorporated or unincorporated, which were closed to the public on account of financial difficulties, and it is not known how many of the institutions thus reported may ultimately prove to be solvent or may be restored to solvency. The record of suspensions during 1924 and 1925 is summarized, by class of banks and by geographic divisions, in the accompanying table. The 1,389: banks, with deposits of $386,344,000, that suspended during these two years were for the most part nonmember banks. Among member banks, which constitute about one-third of the number and hold nearly twothirds of the deposits of all banks in the country; there were 305 suspensions, involving deposits of $141,733,0(30. The number of member banks which suspended was thus about 22 per cent and their deposits about 37 per cent of the total number and deposits oi all banks which suspended during the period. BANK SUSPENSIONS DURING 1924 AND 1925 " [Amounts in thousands of dollars] Banks suspending in the period from Jan. 1, 1924, to Dec. 31, 1925 Number Ratios (per cent) Number of suspending banks to total Total number of banks 2 Total deposits * 1924 1925 Total 1924 1925 Deposits of suspending banks to deposits of all banks» All banks in Unit| ed States _______ 612 1,389 213,444 172,900 386,344 4.6 0.88. Member banks National . State—. Nonmember banks. 1,733 240 60,889 58,537 119,426 65 13,580 8,727 22,307 466 1,084 138,975 105,636 244,611 3.1 2.9 4.0 5.3 .52 '.71 .22 1.44 1,605 1,: 2,903 18 2,647 11,845 14,492 25,335 59,730 34,395 312 ,5 4.4 .06 ..08 1.35 433 75,356 60,393135,749 •4. 0 146 305 74,469 _., GEOGRAPHIC DIVISIONS New England States Eastern States _____ Southern States.___ Middle Western States......—... Western States Pacific States. _____ 570 101,808 56,498158,306 53 6,693 8,471 15,164 9.7 3.0 1.20 7.07 .44 1 Deposits are for 770 banks in 1924 and 604 in 1925, figures not being available for 15 banks. 2 Number of banks that suspended in 1924 and 1925, and amount of their deposits at the time of suspension, compared with the number and deposits of all banks as of June 30,1923, the latest available date prior to the period covered in the table. 248 FEDERAL RESERVE BULLETIN The number of member banks that suspended during the two years constituted 3.1 per cent of all member banks in operation at the beginning of the period, while the number of nonmember banks that suspended was 5.3 per cent of the total number of nonmember banks. Total deposits of suspending member banks represented 0.50 per cent of the deposits of all member banks, whereas the deposits of suspending nonmember banks were 1.44 per cent of the deposits of all nonmember banks. Suspensions occurred during these two years in nearly all States of the country, but the greater proportion were in Western, Middle Western, and Southern States. Suspensions among member as well as nonmember banks were most numerous in the Western States, which include North Dakota, South Dakota, Nebraska, Kansas, Montana, Wyoming, Colorado, New Mexico, and Oklahoma. £1 these Western States the banks that suspended during 1924 and 1925 were nearly 10 percent of all banks and had deposits which were more than 7 per cent of the deposits of all banks; the number of member banks that suspended was more than 8 per cent and their deposits more than 5 per cent of the number and deposits of member banks, while suspending nonmember banks were more than 10 per cent of the number and had more than 9 per cent of the deposits of nonmember banks in these same States. More than one-half of the total number of suspensions during these two years were in the six States of Minnesota, Iowa, Missouri, North Dakota, South Dakota, and Oklahoma, while more than 80 per cent of the suspensions were in these and the nine States of North Carolina, South Carolina, Georgia, Texas, Nebraska, Kansas, Montana, Wyoming, and New Mexico. The banks which suspended both in 1924 and 1925 were for the most part small institutions. This is shown in the accompanying table, in which the banks that suspended during the two years are classified for each Federal reserve district according to the amount of their capital stock; the distribution of suspending banks among these classes was approximately the same for each year. The table shows that in the two years taken together more than 63 per cent of the banks that suspended had capital of $25,000 or less, and nearly 71 per cent had capital of less than $50,000; only about 10 per cent of the banks had capital of $100,000 or more. APRIL, 1926 BANK SUSPENSIONS DURING 1924 AND 1925, BY SIZE OF BANK Total Number of banks with capital stock of—• number Federal reserve district sus-of $25,000 $25,001 $50,000 $100,000 $200,000 pento to and to to sions less $49,999 $99,000 $199,999 $500,000 Boston _ 3 New York 6 5 Philadelphia.Cleveland 20 Richmond Mil Atlanta 92 2 217 Chicago 106 St. Louis 463 Minneapolis Kansas City. 210 103 Dallas 53 San Francisco Total..... !»2I,389 Per cent of total number100 Cumulative per cent of total number 100 1 2 6 2 1 3 16 58 54 114 77 349 137 47 22 880 63.4 16 8 19 6 26 13 10 3 101 7.3 25 18 48 15 67 38 25 22 263 18.9 1 3 11 9 22 4 16 16 15 6 104 7.5 33 2.4 63.4 70.7 89.6 97.1 99.5 1 1 3 7 4 5 6 6 Includes 1 bank for which figure for capital is not available. Includes 7 banks for which no figure for capital is available. Although a large proportion of the suspending banks were small institutions, it should be noted that most of the banks of the country are relatively small banks and that the proportion of small banks is largest in those regions in which most of the suspensions occurred. These facts are brought out by the accompanying table, which gives average capital per bank and average deposits per bank, both for suspending banks and for all banks, in each of the geographic divisions of the country and in the six States in which suspensions were most numerous. AVERAGE SIZE OP SUSPENDING BANKS AND ALL BANKS Average amount of capital per bank* Number of suspen- Banks sions, susAll 1924 pendand ing in banks (June 1925 1924 30,1923) and 1925 Total, U n i t e d States New England States Eastern States Southern States Middle Western States.. Minnesota Iowa Missouri Western States..North Dakota South Dakota. Oklahoma Pacific States 1,389 3 18 312 433 105 167 88 570 108 175 70 53 Average deposits per b a n k l Banks suspending in 1924 and 1925 All banks (June 30, 1923) $38,243 $100,136 $281,182 $1,462,983 91,667 168,458 967,667 4,449,666 71,471 260,647 852, 471 4,990,361 73,160 192,677 43,048 624,150 38,406 84,970 322,444 1,050,344 33,390 49,970 396,810 633,445 47,909 48,267 368,826 554,308 70,612 216,318 30,034 736, 541 33,333 36,817 277,730 382,988 19,352 22,019 149, 787 201, 304 29,469 27,684 317,320 340,189 31,814 42,983 262,557 440,366 •47,774 144,955 286,113 1,959,283 * Figures for capital of 8 banks and for deposits of 15 banks were not available; averages are for banks for which figures were available. The table shows that the average bank in the United States has a capital of about$100,000 and deposits of about $l?500;000? while the banks that suspended in 1924 and 1925 averaged less than $40,000 capital and about $230,000 deposits. But in the Western States, where suspensions were relatively numerous, the average bank has about $37,000 capital and less than $400,000 deposits and the suspended .banks had, on the average, .about $33,000 capital and about $275,000 of deposits. Thus, the banks that suspended in this section were somewhat more nearly comparable in size to the average bank in this particular section. In South Dakota, where suspensions were more numerous than in any other State, the average suspending bank had capital slightly larger and deposits but slightly 'smaller than the average bank of the State, and in North Dakota the banks that suspended did not differ appreciably in average size from the other banks in these States. The sections of the country in which suspensions were most numerous were also the sections in which the number of banks was relatively large in proportion to the population and in which the communities served by banks are of relatively small size. There was one bank to about 7,300 people in the New England and Eastern States; compared with one bank to about 1,500 to 2,900 people for the Western and Middle Western States. In the six States in which suspensions were most numerous in 1924 and 1925—Iowa, Missouri, Minnesota, North Dakota, South Dakota, and Oklahoma— the average number of people to each bank ranged from about 800 and 960 in North Dakota and South Dakota to 2,100 and 2,400 in 249 FEDERAL RESERVE BULLETIN APRIL, 1926 88806—26t- 3 Missouri and Oklahoma, and compared with an average of about 4,000 for the country as a whole. ' A classification of the banks that suspended during the two years according to the size of the centers in which they were located shows that 40 per cent of these banks/ were in towns with a population of less than 500, 80 per cent were in towns with a population of less than 2,500, and 96 per cent were in towns of less than 25,000 population. In the following table bank suspensions for 1924 and 1925 are classified for the major geographic divisions of the country, by size of the centers in which the.banks were located: BANK SUSPENSIONS DURING 1924 AND OF TOWN OR CITY Total number of suspensions, 1924 and 1925 New England States.... Eastern States Southern States-__ _ Middle Western States... Western StatesPacific States BY SIZE Number of bank suspensions In villages, towns, and cities with population of — Less 500 1,000 1,500 2,500 5,000 26,000 to to to to than to and 500 999 1,499 2,499 4,999 24,999 over 2 3 26 29 38 3 p« 115 101 55 8.3 7.3 4.0 100 40.4 61.1 71.0 80.4 88.7 96.0 100 1 3 18 1 312 103 433 177 570 267 53 12 Total United States. 1,389 Per cent of total number. Cumulative per cent of total number 1925, 1 "~°33 79 94 36 106 63 8 6 561 288 100 40.4 20.7 138 9.9 1 32 41 48 9 1 31 37 33 14 131 9.4 11 19 16 1 The number and deposits of banks that suspended in 1924 and 1925 are presented in the table on the following page? by class of bank and by Federal reserve, districts. 250 FEDERAL RESERVE BULLETIN APRIL, 1926 N U M B E R AND D E P O S I T S O F BANKS SUSPENDING I N 1924 AND 1925, BY FEDERAL R E S E R V E D I S T R I C T S [Amounts in thousands of dollars) Number of suspending banks Federal reserve district Member banks Nonmember banks Total National All districts: 1925 . . . . _ 1924 Boston: 1925 _.. 1924 New York: 1925 . . . . 1924 Philadelphia: 1925 1924 Cleveland: 1925 1924 Richmond: 1925 1924 Atlanta: ' 1925 1924 Chicago: 1925 1924 St. Louis: 1925 1924 . . . Minneapolis: 1925 1924 Kansas City: 1925 1924 . Dallas: 1925 1924 San Francisco: 1925 „ . 1924 .. . _ . . . Total State 28 37 Deposits of suspending banks 146 159 612 777 118 122 2 1 1 1 6 1 1 Member banks Total National State 8,727 13, 580 Total Nonmember banks 105,636 138,975 466 618 172,900 213,444 58,537 60,889 2 1,298 1,605 1,605 1,605 5 1,746 765 765 981 2,665 901 67,264 74,469 1,298 3 2 1 1 3 1 247 247 2,665 654 14 6 3 3 11 6 9,624 1,137 3,621 3,621 6,003 1,137 68 43 10 3 1 1 57 39 13,182 5,822 3,528 1,243 9,547 4,280 10 4 5 9 29 35 6,079 5,002 2, 782 1,035 107 299 1,118 833 3,635 1,542 44 48 11 4 15 13 3,900 1,868 2,179 3,134 109 108 16 6 8 24 16 85 92 34,126 36,950 7,658 4,868 4,744 3,364 12, 402 8,232 21, 724 28, 718 53 53 1 1 2 1 3 52 50 11, 942 13,674 618 26 753 26 1,369 11,916 12,305 168 295 44 49 5 9 119 237 44,985 85, 539 17, 806 19, 764 736 6,187 18, 542 25, 951 26, 443 59, 588 77 133 16 30 2 49 58 16 32 61 101 28, 698 34, 763 16, 410 15,984 572 16,410 16,556 12, 288 18, 207 __ 50 53 10 16 5 3 15 19 35 34 11, 830 19, 612 4,011 12, 325 1,630 1,382 5,641 13, 707 6,189 5,905 ... 24 29 9 3 10 1 12 11 12 18 8,471 6,693 2,721 2,437 366 190 3,087 2,627 5,384 4,066 APKIL, 1926 FEDERAL BESEBVE BULLETIN 251 RULINGS OF THE FEDERAL RESERVE BOARD Eligibility for discount of factors9 notes covering ad- growers may also be engaged in producing vances to producers of eggs, poultry, and butter. products which can not properly be considered The Federal Reserve Board lias recently been requested to rule upon certain questions arising under that provision of the second paragraph of section 13 of the Federal reserve act which makes eligible for discount at a Federal reserve bank the notes, drafts, and bills of exchange "of factors issued as such making advances exclusively to producers of staple agricultural products in their raw state/ 7 It appears that a certain cold-storage and warehouse company which is engaged in business as a factor makes advances to farmers who consign to the company chickens, eggs, and butter to be stored in the company's warehouse. The advances are made .pending the sale of these products by the company for the account of the farmers. The question presented is. whether or not the notes of this warehouse company issued in its capacity as factor for the purpose of making advances exclusively to producers of eggs, poultry, and butter should be considered eligible for discount at a Federal reserve bank. Inasmuch as the warehouse company in this case is a factor, the only question to. be decided is whether the advances made by the company • to its customers from the proceeds of these notes are advances to "producers of staple agricultural products in their raw state." In considering this question it is important to note that the test of eligibility.of paper of this kind is to be found in the character of the person to whom the advances are made rather than iri the kind of products securing these advances. If the advances are made to any person of the class described by the term "producers of staple agricultural products in their raw state," the notes given by the factor may be eligible for discount, regardless of whether the products by which particular advances are secured are or are not agricultural products in their raw state or whether the advances are secured at all. Broadly speaking, the term "producers of staple agricultural products in their raw state7' is synonymous with farmers, dairymen, and livestock growers and, therefore, the notes of factors issued as such for funds to be used in making advances exclusively to this class of producers will be eligible for rediscount at a Federal reserve bank; and this is true even though these farmers, dairymen, or livestock agricultural products in their raw. state and regardless of the kinds of products securing the advances made by the factors* . Applying these principles to the facts of this particular inquiry, the board ruled that the notes of such a cold-storage and warehouse company issued in its capacity as factor are eligible for rediscount at a Federal reserve bank, provided that the proceeds of the notes are used by the factor in making advances exclusively to producers of eggs and poultry or other staple agricultural products in their raw state and the notes comply in all other respects with the relevant provisions of the law and the board's regulations. In the opinion of the board butter is not a staple agricultural product in its raw state; but this does not affect the eligibility of notes of factors covering advances to farmers, dairymen, or livestock growers who produce butter, because any member of this class is, of course, engaged in the production of some agricultural products in their raw state even though he also produces butter. The board holds, however, that the notes of a factor covering ad- . vances to those engaged in the commercial production of butter with cream purchased from others are ineligible for rediscount, unless the persons so engaged are also producers of some staple agricultural products in their raw state. The paper of a factor issued as such for the purpose of making advances exclusively to creameries or dairies, therefore, would ordinarily be ineligible for rediscount under this provision of the law. In this connection it also seems appropriate to jixention a ruling made by the board prior to 'the date of the amendment to the law regarding factors7 paper, which holds that while the notes of a cold-storage company itself are ineligible for rediscount because the proceeds are used to make loans to third parties, the notes of the customers of the cold-storage company representing loans made to them by the company, when indorsed and discounted by the company, would be eligible for rediscount by a member bank at a Federal reserve bank, provided that the customers have used or are to use the proceeds for agricultural or commercial purposes and provided also that 252 FEDERAL RESERVE BULLETIN the notes comply in other respects with the provisions of the. law and the regulations of the Federal Keserve Board. (See 1921 Bulletin, page 308.) Under this ruling, of course, the notes of the customers of a factor may be eligible for rediscount without regard to the provisions of the second paragraph of section 13 of the Federal reserve act providing for the rediscount of factors7 paper. APRIL,, 1926? If the paper is otherwise eligible this provision of the board's regulations would not prevent its rediscount by a member bank. The ^ question whether a note made by a cooperative marketing association and indorsed by a Federal intermediate credit bank is eligible for rediscount at a Federal reserve bank, when offered by a member bank, is to be determined by the purpose for which it was issued or the use made of its proceeds and is not affected by the fact that it is indorsed by a Federal interEligibility for rediscount at a Federal reserve bank of mediate credit bank (except for the prohibinotes made or Indorsed by a Federal intermediate tion contained in section 19 which is discussed credit bank when offered fey a member bank below). As the board has ruled heretofore, it The Federal Reserve Board has been re- is the purpose of the original negotiation which quested to rule upon the eligibility for redis- is determinative of the eligibility of a note for count at a Federal reserve bank of a note of a rediscount. In the fourth paragraph of section Federal intermediate credit bank and also of a 13 (a) of the act, it is provided that a note isnote made by a cooperative marketing asso- sued by a cooperative marketing association ciation and indorsed by a Federal intermediate shall be deemed to have been issued for an agcredit bank. In each case the note is offered ricultural purpose if its proceeds have been or for rediscount by a member bank which has are to be used for certain specified purposes. discounted it for the Federal intermediate If, therefore, a note made by a cooperative marketing association has been issued for one credit bank. It was suggested to the board that if such of the purposes so enumerated, or majr be othpaper is eligible for rediscount, the provision of er-wise considered agricultural paper, it is elithe board's Regulation A, which prohibits a gible for rediscount at a Federal reserve bank Federal reserve bank to discount paper for any when offered by a member bank, regardless of Federal intermediate credit bank when its own the fact that it may have been discounted, by reserves are less than 50 per cent of its aggre- the member bank for a Federal intermediate gate liabilities for deposits and Federal reserve credit bank. Of course, it is necessary that notes, might be circumvented and a Federal the note comply in all other respects with the intermediate credit bank might obtain ac- pertinent provisions, of the Federal reserve act commodation indirectly from a Federal reserve and the board's regulations. bank even though the Federal reserve bank's While in theory the general principles reserve might be less than 50 per cent. The applicable in determining the eligibility of principle underlying this provision of the regu- other paper would govern the eligibility of a lation, however, is that member banks are en- note made by a Federal intermediate credit titled to preferential treatment in the matter bank when offered for rediscount by a memof receiving credit accommodations from the ber bank, as a practical matter, since Federal Federal reserve bank because they contribute intermediate credit banks are not ordinarily to the resources of the Federal reserve banks engaged in commercial, agricultural, or indusand their credit facilities ought not to be cur- trial pursuits but in the business of lending tailed in any way through the extension of money, it seems almost certain that such a credit to Federal intermediate credit banks, note would not be issued for an eligible purwhich contribute nothing to the resources of pose but for the purpose of obtaining funds the Federal reserve system and which are not to be advanced or loaned to some other bormembers, of the system. This principle, of rower. Under such circumstances, of course, course, would not be applicable when a member the note made by the Federal intermediate hank offers for rediscount at a Federal reserve credit bank would be ineligible for rediscount bank paper made or indorsed by a Federal in- under section II (b) of the board's Regulatermediate credit bank, because in such a case tion A. the member bank would be obtaining credit The eligibility for rediscount of paper made accommodation from the Federal reserve bank. or indorsed by a Federal intermediate credit APRIL, 1926 FEDERAL RESERVE BULLETIN bank when offered by a member bank is also affected by that provision of section 19 which prohibits a member bank from acting as the medium or agent of a nonmember bank In discounting with a Federal reserve bank except by the board's permission; and it is accordingly, necessary, under the principles laid down In the board's ruling published in the 1923 BULLETIN at page 891, for the board to grant its permission before paper bearing the signature or'indorsement of a Federal intermediate credit bank may properly be rediscounted for a member bank. Accordingly, the Federal Reserve Board hereby grants Its permission for Federal reserve banks to 258 rediscount for member banks paper bearing the signature or indorsement of Federal Intermediate credit banks, If such paper is other™ wise eligible under the law and the regulations,, In the ruling referred to It was stated that as a general rule, the board will not grant to member banks permission to rediscount with Federal reserve banks the paper of nonmember banks which are eligible for rnemhersliip in the Federal reserve- system. Federal intermediate credit banks, ho'wever, are not eligible for membership in • the Federal reserve system and, therefore, the granting of this permission is not a departure from the policy announced in that ruling. Eligibility of trustee, officer, or employe© of a mutual The word "bank" is inclusive and can not be resavings bank to serve as class B or class C director stricted to institutions transacting all of the business of a Federal reserve bank. • ' , usually transacted by commercial banking institutions. There is published below a copy of an opinion recently rendered by the Attorney General on the question whether a trustee, officer^ or employee of a mutual savings bank Is eligible to serve as a class B or class C director of a Federal reserve bank. " DEPARTMENT OF JUSTICE, A mutual savings bank, although having no capital stock, accepts deposits, makes loans, and invests its money in securities, paying over to its depositors the principal of their deposits and accrued net earnings. To that extent it is engaged in the banking business. Bouvier defines a bank as "A place for the deposit of money." The Supreme Court of the United States, in Smith v0 Kansas City Title Company, 255 U. S., 180, 210, said: "Generally speaking, a bank is a moneyed institution to facilitate the borrowing, lending and caring for money." In Bank of Savings v. The Collector, • 70 U. S. 495, the Supreme Court of the United States had under consideration the status of mutual savings banks operating without capital stock, such as those referred to in your communication. At pages 512-513 the court said: Banks, in the commercial sense, are of three kinds, to wit: 1, of deposit; 2, of discount; 3, of circulation. All or any two of these functions may, and frequently are, exercised by the same association; but there are still banks of deposit, without authority to make discounts or issue a circulating medium. Savings banks which receive deposits and loan the same for the benefit of their depositors, although they may have no capital stock, and neither make discounts nor perform other functions usually performed by commercial banks, are, nevertheless, engaged in the business of banking and are, therefore, banks within the meaning of section 4 (5) of the Federal reserve act, supra. I have the honor, therefore, to advise you that mutual savings banks are banks within the meaning of section 4 (5) of the Federal reserve act, prohibiting directors of class B and class C from being officers, directors or employees of "any bank." Respectfully, Washington, March 4} 1926. SIR: I have the honor to reply to your letter of January 12, 1928, transmitting one from the Governor of the Federal Reserve Board, and submitting for my consideration and opinion the question whether a trustee, officer or emploj^ee of a mutual savings bank is eligible for appointment as a class B or class C director of a Federal reserve bank. Section 4(5) of the Federal reserve act (act of December 23, 1913, c. 6, 38 Stat. 254) provides that the board of directors of Federal reserve banks shall consist of nine members divided into three classes designated as classes A, B and C. It is further provided that: No director of class B shall be an officer, director or employee of any bank. No director of class C shall be an officer, director, employee or stockholder of any bank. It has been contended that a mutual savings bank? having no capital stock, and not engaged in a general banking business, is not such a bank as is contemplated by the statute, and that, therefore, an officer of such mutual savings bank is not prohibited from serving as a class B or class C director of a Federal ^reserve bank. The real question presented for my consideration, therefore, is whether a mutual savings bank of the character above described, is to be considered a "bank," as that term is used in section 4(5) of the Federal reserve (Signed) JNO. G. SARGENT, act, prescribing the qualifications of class B and class Attorney General. C directors. The honorable the SECRETARY OF THE TREASURY. 254 FEDEEAL RESERVE BULLETIN" Changes In State Bank Membership APRIL, 192$ Fiduciary Powers Granted to National Banks The following list shows changes affecting State During the month ended March 21, 1926, the Federal bank membership during the month ended March Reserve Board approved applications of the national 21, 1926, on which date 1,434 State insitututions were banks listed below for permission to exercise one or members of the system: more of the fiduciary powers named in section 11 (k) of the Federal reserve act as amended, as follows: ADMISSIONS (1) Trustee; (2) executor; (3) administrator; (4) registrar of stocks and bonds; (5) guardian of estates; Total (6) assignee; (7) receiver; (8) committee of estates of Capital Surplus resources lunatics; (9) in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are District No. 6 permitted to act under the laws of the State in which $64,102 the national bank is located. Citizens State Bank, Reynolds, Ga._ $25,000 $1,250 District No. 9 Peoples State Bank, Plain view, Minn 20,000 4 000 204,963 Location 213,505 Floral Park, N . Y . . Kingston, N. Y Kane, Pa Reidsville, N. C—. Opelika, Ala Montgomery, Ala _ Hartford City, Ind. Havana, 111 Effingham, 111 „. Fort Branch, Ind— District No. 11 First State Bank, Celina, Tex_ 25,000 CHANGES District No. 2 Coal & Iron Bank of the City of New York (merged with Fidelity International Trust Co., New York, N. Y., a member, under title of Millstadt, 111-._...Fidelity Trust Co.) .. $1,500,000 $1,000,000 $28,746,810 I n d e p e n d e n c e , Peoples Trust Co., Brooklyn, N. Y. Kans. (merged with National City Bank, Ogden, Utah New York, N. Y.)~ 1,600,000 2,400,000 65, 717, 253 District No. Powers granted Name of bank First National Bank ..._ National Ulster County Bank First National Bank First National Bank.—-.First National Bank Exchange National Bank First National Bank Havana National Bank First National Bank Farmers & Merchants National Bank. 8 First National Bank.__ 10 Citizens-First National Bank 12 National Bank of Commerce 2 2 3 5 6 6 7 7 8 8 Ito9 1 to 9 1 to9 Ito9 1 to7 1 to9 1 to9 1 to 9 1 to 9 Ito9 1 to 9 Ito9 Ito9 District No. 5 The State & City Bank & Trust Co., Richmond, Va., has absorbed the following member: Planters National Bank, Richmond, Va_.-. 1,000,000 1,800,000 20,221,222 Bank of Lunenburg (Inc.), Kenbridge, Va., a member, has absorbed the following member: First National Bank, Kenbridge, Va 11,450 269,236 45,800 Changes in National Bank Membership The Comptroller of the Currency reports the following increases and reductions in the number and capital of national banks during the period from February 20 to March 19, 1926, inclusive: District No. 7 Absorbed by nonmember: State Savings Bank, Marlette, Mich Voluntary withdrawal: First Commercial Savings Bank, Constantine, Mich... 25,000 5,000 60,000 New charters issued Restored to solvency Increase of capital approved 50,000 25,000 290,000 District No. 9 Reopened: Rock County Bank, Luverne, Minn Voluntary liquidation: Mercantile State Bank, Minneapolis, Minn_. 50,000 25, 000 814,368 250,000 50,000 2,391,482 Aggregate of new charters, banks restored to solvency, and banks increasing capital Liquidations Reducing capital l ._ _-. - ._ Total liquidations and reductions of capital. - 75,000 30,000 Aggregate increased capital for period 613, 230 Reduction of capital owing to liquidations, etc District No. 12 Voluntary withdrawal: Victor State Bank, Victor, Idaho __ Consolidation of national banks under act of Nov. 7,1918 District No. 11 Voluntary withdrawal: First State Bank, Wylie, Tex_.___ Net increase 25,000 Amount of capital 1,422,894 District No. 8 Closed: Dardanelle Bank & Trust Co., Dardanelle, Ark Number of banks 595, 885 10,000 156, 309 14 1 17 $2, 060, 000 40, 000 3,420,000 '32 5, 520, 000 21 4 2, 530,800 390, 000 25 2, 920, 800 4 5,150, 000 5, 520, 000 2, 920, 800 2, 599, 200 1 Includes two reductions in capital aggregating $300,000 incident to consolidations under act of Nov. 7, 1918. 255 HEDEKAL RESERVE BULLETIN APBIL, 1926 BUSINESS STATISTICS FOR THE UNITED STATES INDEX OF PRODUCTION IN BASIC INDUSTRIES * [Index and relatives for each industry adjusted for seasonal variations. Monthly average 1919=100] Iron and steel fear and month General index Animals slaughtered •Steel ingots Pig iron 1925 Famiary-... February... March....... April. „„„.„_, May • Tune...... July—.—.. August September... October..... November..,. December... 1926 January. February Food products Textiles Cotton Wheat flour Wool 94 113 94 90 88 102 122 94 100 96 79 127 124 120 119 111 110 113 109 111 116 115 121 134 143 136 128 113 107 105 102 106 113 116 130 151 150 147 128 121 115 110 117 123 130 136 149 91 103 111 116 120 100 99 95 92 91 88 87 90 95 98 97 95 120 120 131 130 149 152 114 119 84 Coal 115 114 110 121 103 Bituminous Anthracite 125 109 95 105 99 101 105 109 114 121 126 130 104 116 96 103 103 98 113 129 130 Cattle 132 104 133 134 115 117 117 107 143 167 135 203 164 147 100 96 100 104 104 95 107 97 93 99 84 102 Calves Copper Lumber Sheep 140 157 138 124 114 126 131 138 129 147 131 166 Hogs 121 107 96 101 92 101 91 102 120 117 105 101 145 127 125 123 116 117 125 116 116 125 117 133 120 115 96 76 125 122 95 105 146 157 Nonferrous metals Year and month 1925 January.^..—.... February.—...... March-„________„, April.............. May...—. June.-....._._.... July August September........ October.-.. November .... December .__. 1926 January . _ . . . . . . _ . February-.„_- Sui meli Tobacco products Sole leather Newsprint Zinc Cement Petroleum Cigarettes Manufac# tured tobacco 1 1 2 3 148 147 142 136 135 136 140 135 139 136 138 139 128 119 131 124 127 117 121 122 121 129 129 137 106 108 110 115 112 110 108 105 111 115 116 117 243 193 199 199 193 197 215 207 204 198 194 188 193 191 187 194 212 210 204 206 208 198 200 196 91 88 86 87 88 93 94 91 95 106 95 85 * 195 105 97 89 95 96 97 101 94 96 99 89 94 2 34 2 141 145 144 135 115 123 219 181 193 193 80 84 196 188 102 100 120 188 171 170 178 175 188 179 173 183 169 165 1 This table contains for certain months the index numbers of production in basic industries which are shown in the chart at the bottom of page 226, together with the series of relatives used in constructing the index. In making the final index the relatives are adjusted to allow for seasonal fluctuations and are weighted. The methods of construction were described in detail and all relatives for each series since January, 1913, were published on pages 1414-1421 of the BULLETIN for December, 1922. 2 Revised. INDEX OF E M P L O Y M E N T IN MANUFACTURING I N D U S T R I E S ! [No seasonal adjustment. Monthly average, 1919=1003 Year and month General index 1925 January February. _. March...... April.. May June July—— August...... September.. October...-. NovemberDecember-.. 1926 January February. _ _ 94.4 95.8 96.4 95.9 94.9 94.2 93.1 93.9 95.1 97.0 97.2 97.1 Metals and products Group index Iron and steel Textiles and products Group Prodindex Fabrics ucts Lumber and products Railroad vehicles 87.5 89.6 90.1 89.2 88.0 86.9 85.6 86.1 87.4 89.4 91.0 92.6 87.1 89.1 89.5 88.7 87.5 86.3 84.9 85.4 86.6 88.4 89.9 91.6 97.4 99.9 100.0 98.9 96.4 95.4 93.3 94.0 94.1 96.9 97.3 97.2 100.6 101.4 101.0 100.8 99.1 97.5 93.1 93.6 93.3 97.7 99.1 99.3 93.4 97.9 98.6 96.5 92.9 92.8 93.4 94.5 95.1 95.8 95.0 94.6 99.8 100.4 99.6 100.6 99.8 100.1 99.3 99.9 102.2 102.8 102.0 100.9 89.3 89.8 92.6 94.2 91.9 93.5 97.3 97.4 99.1 97.6 95.0 98.3 Paper and Automobiles printing Foods Leather Stone, and and clay, prod- prodand ucts ucts Tobacco products 84.9 84.7 84.5 84.5 83.7 83.0 82.6 84.6 103.8 105.1 112.7 121. 7 128.5 122.8 122.2 124.2 129.4 137.7 136.3 129.6 105.1 104.9 105.7 104.7 103.8 103.5 103.4 103.2 104.3 106.0 107.2 107.8 88.4 88.5 86.2 83.0 83.2 85.6 85.4 85.9 88.0 90.6 89.6 88.5 90.9 92.5 92.5 88.8 86.8 83.0 85.7 90.2 92.1 91.8 89.0 86.1 109.7 110.7 116.8 123.2 125.5 125.9 121.3 124.9 125.3 124.7 123.1 121.0 87.0 87.7 88.5 81.7 87.0 85.8 85.9 85.0 87.1 90.1 89.7 90.1 84.6 85.7 130.2 133.0 107.5 106.7 86.5 85.7 87.9 89.5 114.4 114.6 80.4 84.2 Chemicals and products 74.0 74.6 75.5 75.4 73.2 72.9 73.0 72.6 75.4 76.4 77.4 77.6 76.9 77.0 i This table contains for certain months index numbers of employment, together with group indexes for important industrial components. T h e general index is a weighted average of relatives for 34 individual industries. The method of construction was described in detail and indexes for the above groups since January, 1919, were published on pp. 324-325 of the BULLETIN for May, 1925. See also p. 668 of BULLETIN for Seotember, 1925, or certain revisions. 97.0 97.2 256 FEDERAL RESERVE BULLETIN APRIL, 1926 INDEX OF PAY ROLLS IN MANUFACTURING INDUSTRIES 1 [No seasonal adjustment. Monthly average, 1919=100] Metals and products Year and month General index Group index Iron and steel Textiles and products Group Prodindex Fabrics ucts Lumber and products Railroad vehicles Paper Autoand mobiles printing Foods Leather Stone, and clay, and and prod- products ucts Tobacco products Chem icals and products 1925 January.--February- _ March April>__.— May-... J u n e . »__.._ July August—-. September . October NovemberDecember— 102.9 108.5 110.1 107.3 107.4 104.8 102.4 104.5 103.9 111. 3 111.7 112.1 92.9 96.3 97.2 94.4 94.6 91.1 86.8 89.7 88.7 96.2 97.7 101.7 92.6 95.8 96.5 93.9 94.0 90.4 86.1 88.8 87.7 95.1 96.3 100.6 108.6 113.4 114.4 108.0 105.0 101.6 101.2 103.8 99.1 107.5 107.0 107.9 112.9 114.2 114.2 111.7 109.9 103.9 100.9 101. 7 96.6 107.9 109.0 111.1 103.3 112.4 114.7 103.5 99.0 98.8 101.6 106.2 102.1 107.0 104.5 103.9 103.1 108.5 109.7 107.9 108.6 109.7 105.9 108.0 111.8 117. 2 116.7 116.4 91.5 100.0 100.2 95.4 91.6 90.4 86.7 88.0 84.9 89.2 91.4 91.7 132.1 142.9 156.2 163.9 151.2 150.0 146.1 155.3 178.0 178.9 163.5 138.2 137.5 139.4 137.1 136.7 135. 5 133.8 133.7 135.8 142.3 145.4 148.7 100.4 99.8 98.8 94.0 97.2 100.0 98.9 99.1 100.0 104.5 103.6 103.2 95.3 99.7 •100.0 91.5 90.3 85.1 89.0 98.9 94.8 95.8 87.9' 86.5 128.8 136.4 143.4 149.9 154.6 154.3 145.9 155.7 151.6 156.8 155.4 151.3 93.5 87.0 88.3 74.2 90.9 90.3 89.0 90.0 90.0 97.1 98.7 L 99.3 97.0 99.7 101.6 97.6 98.4 95.7 95.6 93.1 94.9 101.1 [ 103. 6 104.9 1926 January February- _ 107.0 111.5 99.1 102.4 101.7 108.1 110.2 110.4 109.0 105. 3 111.5 105.8 111.0 85.8 91.9 136.0 166.3 145.5 144.9 100.1 99.8 89.7 94.2 136.9 140.1 84.0 102.2 102.8 a This table contains for certain months index numbers of pay rolls, together with group indexes for important industrial components. T h e general index is a weighted average of relatives for 34 individual industries. The method of construction was described in detail and indexes for t h e above groups since January, 1919, were published on pp. 324-325 of the BULLETIN for May, 1925. See also p . 668 of BULLETIN for September, 1925, for certain revisions. INDEXES OF INDUSTRIAL ACTIVITY i [No seasonal adjustment. Monthly average 1919=100] Agricultural movement Year and month 1925 January February. March April MayJune July August = _ September October _ . November December.__ 1926 January . February— Mineral production AnAniLive- mal Grains Cot- Vege- Fruits To- Total thraTotal stock ton tables cite prodbacco coal ucts 101 98 134 100 189 171 132 126 148 137 128 119 96 99 97 87 140 128 149 140 131 124 5 1 124 124 129 108 103 113 91 96 102 191 194 212 914 115 105 105 140 139 136 127 117 121 137 131 904 198 119 119 141 134 129 129 136 194 112 76 197 79 130 121 85 72 108 123 73 40 128 125 106 94 135 142 110 136 92 151 (8) 104 152 91 93 62 75 99 98 88 86 139 164 150 71 43 166 149 117 105 101 110 53 17 133 149 75 934 107 204 122 244 '73 171 310 977 233 116 391 177 165 223 130 125 1 2 3 96 108 Zinc 123 117 89 90 91 87 86 119 101 Copper 141 119 122 94 86 72 14 Pig iron 292 161 118 88 79 83 88 Bitumi- Petronous leum coal 136 121 117 1 116 121 212 906 135 134 122 121 128 137 137 106 107 106 117 135 239 88 98 326 129 108 99 96 92 114 106 80 344 129 2 138 190 130 8 141 144 88 81 93 79 74 94 77 273 115 28 120 173 115 135 136 148 Lead Silver 146 131 154 143 •" 147 151 145 143 138 164 153 3 161 158 149 117 107 104 109 111 116 114 104 103 98 104 105 3 109 105 Manufacturing production Year and month Total 1925 January February March „_ ~~. ApriL „— _—. May June July .-__——. August September . . . » October. ___.= „_ November December..™ 120 U35 3133 3130 3126 126 §122 126 141 129 3128 1926 January February 3128 . __ §128 125 Iron Auto- Texand steel mobiles tiles 145 132 147 128 121 112 109 118 120 134 134 138 144 131 14? 191 121 114 122 119 109 105 107 104 107 118 114 119 186 220 120 115 223 260 939 239 193 270 Food products Leather Petro- Cement TobacLum- Paper and and and ber printing co brick shoes3 leum 9Q 105 114 98 107 145 134 150 155 165 160 164 167 160 172 139 133 135 125 142 142 136 133 125 128 128 139 136 104 92 135 137 118 98 95 88 87 94 97 91 92 101 98 86 84 87 97 97 103 199 186 204 201 209 218 139 84 85 216 142 135 83 85 216 222 125 109 158 188 213 207 207 191 206 173 152 130 118 105 116 113 119 133 135 127 131 141 120 171 176 190 191 195 194 202 203 183 165 155 110 175 115 110 176 *2 For description and early figures see BULLETIN for March, 1924, and for certain revisions see p . 739 of the October,, 1925, BULLETIN. Less than one-half of 1 per cent. * Revised. Rubber tires 178 257 FEDERAL RESERVE BULLETIN APRIL, 1926 COMMODITY MOVEMENTS The following statistics are secured from various sources and compiled in the form given below by the Board's Division of Research and Statistics. Earlier figures (in most cases since 1919) can be obtained from previous issues of the BULLETIN or upon application to the Division of Research and Statistics, Federal Reserve Board. Febru- January, February, 1926 1926 ary, 1925 Febru- January, February, 1926 1926 ary, 1925 Transportation Revenue freight loaded and received from connections (cars loaded, 000 omitted): Classified by nature of p r o d u c t s Grain and grain products _______ Livestock _„ Coal. Coke Forest products Ore Merchandise, 1. c. 1 Miscellaneous.... — _ _ Total.. Grain and Flour Receipts at 17 interior centers (000 omitted): Wheat (bushels) _.._. Corn (bushels) __„ Oats (bushels). ___. Rye (bushels) Barley (bushels).._„ — _ Total grain (bushels) _ Flour (barrels).. Total grain and flour (bushels) _ _. 17,165 26,765 12,244 1,082 2,588 59,844 1,728 67, 622 Shipments at 14 interior centers (CCO I omitted): Wheat (bushels) ..... Corn (bushels) Oats (bushels) Rye (bushels) . Barley (bushels) _ — — Total grain (bushels). Flour (barrels).. „__ Total grain and flour (bushels) _ _. 9,093 10,887 530 1,332 31,704 2,803 44,317 11, 549 8,592 11,094 345 1,557 33,136 3,047 46,849 Stocks at 11 interior centers at close of month (000 omitted): Wheat (bushels) Corn (bushels) Oats (bushels) Rye (bushels) Barley (bushels) Total grain (bushels) . 29,395 28,861 51, 028 12, 721 5,576 127, 581 30,308 24,305 54,318 12,248 5,844 127,022 19,979 28,859 15, 453 1,520 3,034 21,191 14,903 2,823 4,210 1,876 77, 288 62, 555 2,184 72, 384 Receipts at 9 seaboard centers (000 omitted): Wheat (bushels)..... Corn (bushels). Oats (bushels)... Rye (bushels) Barley (bushels) Total grain (bushels) _ Flour (barrels)......... Total grain and flour (bushels)... 8,879 1,209 1,876 396 2,121 14,481 1,669 21,992 12, 578 3,218 2,008 630 2,373 20,806 1,495 27, 536 Stocks at 8 seaboard centers at close of month (000 omitted): Wheat (bushels) „ Corn (bushels) Oats (bushels) _-_...__._ Eye (bushels) .._._„ Barley (bushels).. _ Total grain (bushels). 4,593 1,756 1,412 295 2,349 10,405 5,568 2,151 1,578 392 2,858 Wheat flour production (barrels, 000 omitted) ... 8,881 Tobacco Tobacco sales at loose-leaf warehouses (pounds, 000 omitted): Dark belt Virginia..... Bright belt Virginia North Carolina _. Burley Western dark 3,978 8,121 12,703 23,937 34, 724 88806—261 12, 548 10, 287 7,754 10,941 23,880 35, 392 33, 233 19,428 , Classified by geographical divisions— E astern _Allegheny. „ Pocahontas..-. Southern Northwestern Central western _Southwestern Total-....-.. 171 113 698 72 299 42 990 1,292 196 139 782 75 277 43 1,017 1,310 169 123 682 53 320 45 978 1,255 3,676 3,839 3,623 842 747 215 609 458 539 266 868 765 233 608 473 611 281 854 748 176 586 460 536 264 3,676 3,839 3,623 1,128 6,472 1,296 2,960 2,416 4,304 5,777 1,552 575 1,314 2,215 9,307 1,458 6,179 1,908 3,892 2,991 3,538 8,238 2,525 816 2,782 2,461 10,021 39,316 46,809 6,037 95,228 10,547 11,750 9,695 12,936 34,005 5,842 2,088 4,187 8,761 29,166 9,153 67,537 14,182 20,500 14,547 12,653 46,463 10,313 3,200 11,013 6,290 32,649 230, 242 248,500 24,256 195,564 20,322 29,905 30,855 50,841 51,122 22,255 6,363 9,946 15,730 23,113 62,810 24,398 40, 267 23,688 32,438 52,305 25,000 6,173 7,719 12,972 457,159 310,883 BUILDING STATISTICS 15,770 10,676 13, 245 Building permits issued in 168 cities, 362 grouped by Federal reserve districts: 3,186 Number of permitsBoston (14 cities) — — 859 43, 240 New York (22 cities) . . . . . 5,045 3,157 1,206 Philadelphia (14 cities) _ _ — 57,444 3,560 Cleveland (12 cities) _______ 2,484 Richmond (15 cities) 4,380 Atlanta (15 cities) — 6,766 Chicago (19 cities) _ — . — 44, 726 2,158 St. Louis (5 cities) — „_ 27,018 Minneapolis (9 cities) . — — 721 64,208 2,058 Kansas City (14 cities) - . „ 9,906 2,392 Dallas (9 cities) 2,542 8,898 San Francisco (20 cities) 148, 400 40,527 TotaL. 13, 931 891 1,817 848 1,999 19,486 2,109 28,978 Value of permits (dollars, 000 omitted)— Boston (14 cities)....... . . . New York (22 cities) Philadelphia (14 cities) ________ Cleveland (12 c i t i e s ) — — Richmond (15 cities) ___.._ Atlanta (15 c i t i e s ) . _ . — _ — Chicago (19 cities)— St. Louis (5 c i t i e s ) — . Minneapolis (9 cities) Kansas City (14 cities) Dallas (9 cities) San Francisco (20 cities) _______ 5,378 76,895 13, 247 10, 259 10,784 19,189 42,876 6,401 2,743 6,515 7,660 26,736 10,904 955 Total228,683 1,518 9,583 1,834 Building contracts awarded, by Federal reserve districts (dollars, 000 omitted): 24, 793 Boston.. __„„„____ — — . 18,494 New York— 104,568 Philadelphia _.._• 25,536 11,189 Cleveland .. 35,033 Richmond—.-..-. .___. 25,969 Atlanta 63,558 Chicago. _.__„___„___ — . . 53,848 . St. Louis.———.... 23,551 Minneapolis __.__ —___•. 6,893 4,251 Kansas C i t y . . ___. 12,736 6,114 19,714 Dallas..— — . . . . 9,500 16,907 Total (11 districts) 389,900 15,062 258 FEDEEAL RESERVE BULLETIN APRIL, 1926 WHOLESALE AND RETAIL TRADE WHOLESALE TRADE IN THE UNITED STATES, BY LINES* CHANGE IN CONDITION OF WHOLESALE TRADE, BY LINES AND DISTRICTS—Continued [Average monthly sales 1909=100] General index 1924 October „_ November December. _ 1925 January __ February IvEarch ApriL. „ May June July_. ___ _ . August September October _. __ November December 1926 January __ February _ Percentage Percentage change in sales, change in stocks1 February, 1926, at end of February, 1926, comcompared pared with— with— HardGroDry ceries Meat goods Shoes ware Drugs 110 98 99 95 84 79 100 89 83 78 69 66 104 88 77 67 57 57 79 76 83 79 79 83 80 73 71 82 43 89 69 73 88 96 46 63 90 107 75 79 68 75 85 107 101 83 87 84 85 83 79 79 78 65 54 94 101 92 99 82 87 86 80 90 83 72 72 78 76 76 71 79 79 54 47 65 105 99 98 112 118 72 77 109 122 92 75 59 54 103 101 116 109 121 115 106 110 111 108 120 134 110 111 79 87 43 50 86 87 111 110 77 82 85 106 75 For description of the wholesale trade index see FEDERAL RESEEVE BULLETIN for April, 1923. CHANGE IN CONDITION OF WHOLESALE TRADE, BY LINES AND DISTRICTS Percentage Percentage change in sales, change in stocks1 February, 1926, at end of Febcompared ruary, 1926, comwith— pared with— Janu1926 Groceries: United States Boston district New York district Philadelphia district Cleveland district Richmond district Atlanta district. _ « Chicago district St. Louis district Minneapolis district Kansas City district Dallas district _ San Francisco district Dry goods: United States _, — New York district Philadelphia district Cleveland district Richmond district Atlanta district. . _ Chicago district—— St. Louis district Minneapolis district Kansas City district Dallas district San Francisco district Shoes: United States. Boston district...- New York district _ Philadelphia district Cleveland district Richmond district _ Atlanta district Chicago district -7.6 _ _ -9.7 -14.8 -2.7 -3.8 -5.2 _ _ -7.8 -3.6 3.3 ._ - 5 . 0 -8.7 _ _ -3.5 -9.5 ___. — _ . _. _ .. February, 1925 January, 1926 -1.9 -8.0 -3.1 -9.4 -2.0 -2.7 6.0 -7.3 -.9 -12.0 -3.5 .5 -1.3 1.1 -1.8 9.0 3.3 3.7 17.7 5.8 8.5 6.5 13.7 6.0 2.6 35.5 -6.4 —2.6 -1.8 -15.8 -5.9 .7 6.9 -6.6 1.1 -11.0 10.2 -6.1. —4.4- 15.9 31.7 7.8 12.7 -5.2 -12.2 4.9 -4.5 15.5 -3.4 —14'. 2 6.9 30.5 21.0 33.7 Janu- Febary, ruary, 1925 1926 128 109 109 February, 1925 -2.1 6.2 -L9 —3.6 -.5 -1.8 -6.2 1.3 0.0 3.0 5.2 5.5 -3.7 -19.4 2.0 -1.2 -2.0 .5 -6.1 .5 .7 -4.3 7.4 2.6 -6.4 -1.0 -7.2 -3.6 6.9 -12.7 -20.6 19.8 -4.8 -11.9 2.0 8.5 -5.0 3.8 -4.3 11.5 21.1 -.1 1.8 -23.2 -13.0 4.6 -26.1 -13.7 -3.9 8.5 -33.5 Shoes—Continued. St. Louis district Minneapolis district San Francisco district Hardware: United States New York district _ > __ Philadelphia district Cleveland district. _ Richmond district _ Atlanta district Chicago district...__„ St. Louis district _ Minneapolis districtKansas City district __ Dallas district—. ... San Francisco d i s t r i c t — Drugs: United States New York district _ Philadelphia district Cleveland district. _______ Richmond district —__ Atlanta district . Chicago district... __ St. Louis district Kansas City district Dallas district _ _ San Francisco district _ Furniture: Richmond district •_ Atlanta district. St. Louis district.— Kansas City district San Francisco district Agricultural implements: Minneapolis district Dallas district.-... _______ Stationery and paper: New York district-.. Philadelphia district Atlanta district-_., San Francisco district „_.. Automobile supplies: San Francisco district.._ Clothing: New York district _______ St. Louis district Cotton jobbers: New York district -__. Silk goods: New York district Machine tools: New York district Diamonds: New York district Jewelry: New York district Philadelphia district Electrical supplies:" Philadelphia district Atlanta district St. Louis district San Francisco district Millinery: Kansas City district _.— Stoves: St. Louis district — January, 1926 February, 1925 38.7 0 5.2 2.6 1.0 15.2 -7,0 -4.2 .6 -7.5 3.3 -7.4 -7.5 —6.3 10.0 -3.0 -10.6 24.8 -8.0 -8.9 2.6 .2. 8.8 - 1 . 0 -11.0 -6.7 16.6 10.3 4.9 —.1 —1 3 5.7 7.2 1.7 1.5 4.3 -.5 8.8 11.4 2.0 -.4 8.1 -3.7 1.4 -10.1 -17.0 .2 2.9 -6.3 -3.6 -1.0 5.6 1.2 .7 5.0 -2.3 6.1 -14.0 45.0 7.9 —9 -L9 -6.5 10.9 -.8 -5.4 -4.8 -7.0 -3.1 -12.2 1.0 —.7 2.4 2.2 4.8 12.7 .8 1.9 -.2 —1.3 5.0 -24. 2 2.2 17.6 24 -3.9 2.0 -10.9 —10.3 2.4 5.8 -2.3 -.1 -4.6 3.1 .1 -1.8 8.8 3.1 18.0 —1.6 31.0 -1.5 -.9 -3.2 -10.2 2.8 6.8 82.0 -5.0 79.0 8.6 2.4 -10.5 -2.7 —12 1 10.7 -17.3 2.1 7.9 —2.3 —3.9 53.3 —27 8 -9.7 54.4 33.2 -13.5 22.1 -.9 .7 —.4 12.7 27.7 -35.6 -10.0 36.1 18.2 7.0 13.9 15.4 4.3 -3g.O -7.3 3.3 6.4 11.8 —5 7 -4.1 87.2 10.1 —4.1 1.9 5.4 3.2 -20.5 -5.9 -17.8 43.3 -13.1 8.1 -9.2 2 37.0 ........ _ 2.6 _ • _ _ -28.1 1 Changes in total stocks for the United States are weighted averages computed on the basis of firms which have reported regularly to the Federal reserve system since January, 1923. 2 Stocks at 1st of month; quantity, not value. 3 Includes diamonds. 259 FEDERAL RESERVE BULLETIN APRIL, 1926 RETAIL TRADE, BY R E P O R T I N G LINES 1 [Average monthly sales 1919=100] Sales with seasonal adjustment Sales without seasonal adjustment Year and month n Is }i O 1925 January __.. February..__ March. „. April ... May June. July— ... August •__. Sept ember, _„„___ October _. November December January February 108 101 121 136 128 126 95 98 121 165 145 226 108 105 119 117 95 102 87 89 114 170 144 166 250 233 252 258 254 254 259 243 245 318 272 332 92 151 156 177 195 191 187 183 195 191 237 220 427 155 146 160 159 163 167 166 171 169 179 167 225 122 119 131 134 143 134 138 142 142 151 136 212 107 100 127 177 149 152 122 120 129 164 136 166 170 178 172 127 127 108 97 104 128 136 141 139 214 162 175 188 210 195 184 181 202 202 215 195 280 124 131 121 133 124 126 128 125 134 145 129 141 101 .105 167 173 130 136 105 107 35 I I 106 120 117 118 120 131 116 140 249 243 233 255 254 257 269 255 258 309 270 318 207 209 185 208 201 203 201 205 206 219 211 231 161 161 159 164 166 170 164 171 172 175 177 185 141 140 135 139 140 137 137 145 142 145 138 157 141 ±49 127 152 1L9 142 134 153 135 145 126 143 112 120 116 126 116 125 140 143 136 117 111 114 193 207 188 210 202 197 185 202 204 209 205 191 118 123 284 301 228 227 185 189 140 151 142 145 122 127 199 205 110 116 103 I 114 1926 114 ! 116 104 111 * For description of the retail trade indexes see FEDERAL RESERVE BULLETINS for January and March, 1924. * Index of sales of grocery chains revised. Comparable index numbers for all months since January, 1919, may be obtained from Division of Research and Statistics, Federal Reserve Board. DEPARTMENT STOKE SALES, BY FEDERAL RESERVE DISTRICTS [Average monthly sales 1919—100] Federal reserve district Number of reporting firms United States. 359 Boston. New York.-... PhiladelphiaCleveland.™-.. Richmond _„„. Atlanta Chicago Minneapolis _. Dallas. __... San Francisco. 24 63 22 54 23 35 63 23 21 31 Sales without seasonal adjustment 1926 Feb. 108 103 106 92 92 119 117 1926 1925 Dec. Nov. Oct. Feb. Jan 104 Sales with seasonal adjustment Jan,Feb. 1925 Jan. Dec. Nov. Oct. Feb. 114 226 145 165 101 108 136 130 141 129 145 131 124 131 124 112 108 103 89 119 85 94 129 225 243 222 218 230 190 244 167 180 253 143 158 167 134 146 122 154 105 115 158 156 186 167 160 160 139 173 135 141 94 107 101 106 89 84 107 81 90 113 110 120 105 107 93 83 112 92 92 128 125 145 141 136 128 127 136 • 1 2 4 125 127 108 121 140 151 100 108 109 118 145 154 141 148 141 138 133 117 156 113 111 161 130 137 129 123 125 106 139 98 101 156 142 155 145 146 139 117 158 120 120 154 126 140 125 137 120 111 136 115 114 149 122 132 120 123 113 102 132 107 106 145 DEPARTMENT STORE STOCKS, BY FEDERAL BESERYK DISTRICTS [Average monthly stocks 1919=100] Federal reserve district Number of reporting firms Stocks without seasonal adjustment 1926 Stocks with seasonal adjustment 1926 1925 Feb. Jan. Dec. Nov. Oct. Feb. Jan. Feb. 1925 Jan. Dec. Nov. Oct. Feb. Jan. United States. 314 132 125 129 154 149 127 119 140 141 139 137 134 135 134 Boston, _. New York Philadelphia.. Cleveland... „_. Richmond Atlanta Chicago...... Minneapolis „„ Dallas....._.. San Francisco. 24 63 13 52 19 22 51 22 19 29 113 128 183 124 121 112 153 101 118 132 110125 167 112 114 111 144 96 1C8 126 119 131 176 123 120 102 148 101 111 124 140 153 213 145 147 126 175 124 135 148 132 148 210 141 138 124 168 122 135 147 115 123 167 125 118 107 145 106 113 126 112 118 147 112 109 121 138 195 134 129 116 165 104 125 137 122 140 187 133 135 123 162 108 126 137 122 138 183 132 133 114 159 110 130 136 121 135 192 129 129 113 156 113 122 135 117 133 188 126 119 111 150 112 119 136 123 132 177 134 126 111 156 109 124 132 164 133 129 110 154 111 119 134 99 137 99 103 123 12.0 131 260 FEDERAL RESERVE BULLETIN APRIL, 1926 FOREIGN BANKING' AND BUSINESS CONDITIONS ANNUAL REPORT OF THE NATIONAL BANK OF BELGIUM FOR 1925 The annual report of the National Bank of Belgium for 1925? presented b}^ the governor at the annual meeting on February 22, 1926, contains the following summary of events during the. past seven years and survey of the present situation: Seven years have passed since the National Bank of Belgium, yielding to the express demand of the Government and the unanimous wish of the people, agreed to replace with Belgian bank notes the paper currency imposed upon the country during the occupation. The quantity of marks presented for exchange exceeded all expectations. It then became evident that the fiduciary circulation of Belgium could not be increased in such proportions without causing the franc to decline steadily. Moreover, the bank did not fail to make the rapid retirement of the excess notes a condition of its intervention. In the beginning it was believed that Germany would redeem without delay the marks which she had left in Belgium. When the fact was recognized that this expectation was not to be realized in the near future, the bank obtained from the Government a pledge that it would take advantage of an early large-scale fiscal operation to retire the greater part of this paper currency before it could exercise its vicious influence on the price level and the course of exchange. The Government affirmed this pledge with many assurances. In the agreement of July 19, 1919, between the Government and the bank, article 3 stipulated that "the Government promises to repay with the least delay possible the advances made by the bank." On the first of October of the same year the board of directors of the bank sent to the Government a resolution couched in the foliov/ing terms and reproduced in the report of the bank for the year 1919: Whereas fiduciary inflation has as its inevitable corollary the rise of prices; Whereas the economic recovery of the country demands the concentration of all efforts to lessen as soon as possible the cost of living, so intimately bound up with the problem of wages; Therefore the board of directors of the National Bank of Belgium believe that they should again direct the special attention of the Government to the absolute necessity of immediately taking the measures necessary to effect a great reduction in the demand liabilities of the National Bank, which are vastly increased by the advance of 5,800,000,000 francs to"the State for the redemption of marks. The loan of 5 billions which Parliament authorized the Government to issue at the beginning of 1920 was Intended to be used largely for the withdrawal of the excess paper currency. On January 15, 1920, M. Delacroix stated to the Chamber that of the first installment of 2.5 billions, the Government would set aside 1 billion to repay the bank, and continued: "To the extent of this sum of 1 billion francs, the loan will not have the effect of increasing the national debt, for it will be used at once7Jto reduce the credit of the bank to the State. The governor of the bank in his report to the general assembly on February 23, 1920, described in the following terms the pledge made by the Government: Inasmuch as the Government is-under the necessity of making a series of loans, the first of which will not exceed 2.5 billions, we have agreed with the Minister of Finance that a repayment of 3 billion francs shall be made out of the successive loans,fixingsuch repayment at 50 per cent of their total yield, and averaging.a just assessment on each one. It"has been especially agreed that from each of the first two loans of 2.5 billions, there shall be turned over to the bank 1 billion francs. Furthermore, the Government shall repay annually, beginning with 1921, an amount of at least 150,000,000 francs. Unfortunately? these demands .were not heeded as they should have been. The bank was greatly disturbed over this, and In its Whereas the demand liabilities of the National Bank report for the year 1922, It said: of Belgium (note circulation and demand deposits) have during the last six months reached an average value of 7 billion francs (4,700 millions of notes, 2,300 millions of demand deposits), while before the war this average was not more than 1,100 millions (1 billion notes and 100 millions deposits); Whereas it has been proved by experience that under a regime of overexpanded note issues, the inflation of the fiduciary circulation has always contributed to the depreciation of the monetary unit, and then by reciprocal action, to a loss in its value on the foreign exchanges; From the,beginning of the monetary crisis, the bank, in taking a position on the question of the policy to be followed, has urged deflation. It believes that this is the only way to return to economic equilibrium, But the further one gets from the starting point of inflation and the longer one delays to reverse his steps, the more difficulties one will encounter. However slow and burdensome it may be, deflation ought nevertheless to be carried on regularly and tenaciously. It is also much to be regretted that the first three quarters of the year have passed without our having received any repayments. ^ 1926 Nevertheless, the Government, face to face with other difficulties, the solution of which seemed to it more urgent, always put off the vigorous effort which would remedy the monetary situation. Then the inevitable happened—domestic price indexes rose rapidly; more and more the foreign exchanges appreciated in terms of . our money. We recognized the detestable regime of instability and currency depreciation. As the years passed, in proportion as the value of the franc declined, the hope of restoring it to its pre-war parity grew feeble; at the same time the social, moral and economic advantages of such restoration gradually grew less; a new order of things, a new scale of values tended to become established on the basis of the depreciated money. Some intelligent people asked whether it had not become necessary to give up once for all the hope of restoring our money, and to undertake a plan of stabilization which would have reduced the evils of the situation to a third or a half of what they now are. But this plan could not be carried out for several reasons of both domestic and foreign, economy. First of all it was necessary that the reconstruction of the devastated regions should be almost finished; that Belgium should have recovered, at least in large measure, her power of production. Then it was necessary—an essential condition—that a balanced budget should have been reestablished. It is pure folly to try to stabilize a currency if this condition has not been met. The Government was resolutely determined upon it, but up to the present the aim has not been realized. Abroad, two problems of international finance heavily depressed, the.exchange market; the question of reparations and of inter-ally debts. On their solution depended, directly or indirectly, the choice of the level at which one could hope to fix the new value of the franc. Meanwhile only one policy was possible; and it required, if one wished to hold the evil in check, the prevention of excessive depreciation and the preparation for stabilization at a level as little unfavorable as possible; that meant to bring about methodically and firmly the reduction of the fiduciary circulation in a way which would decrease the excess circulation in conformity with prices and the level of the exchanges. The National Bank did not cease to urge this with an insistence which some people regarded as excessive. And as regards the bank, in spite of some lively complaints 261 FEDERAL RESERVE BULLETIN from industry and commerce, which were all the more hungry for credit as the Belgian exchange depreciated, the bank followed # a thankless and painful policy of credit restriction difficult to pursue, in view of its keen desire to support the exporting industries. It contracted the actual volume of commercial bills and advances. . Following, expressed in gold at the average rate of the dollar, are comparative figures:. [Yearly averages in millions oft ranesj. Commercial bills _„ Advances on Government securities > __ _ 1913 1924 561.9 71.3 313.9 98.2 1925 315.4 97.1 For the last year or two the. various factors in the financial and economic situation in Belgium have tended toward steadiness, and little by little a certain stability has evolved spontaneously out of the facts themselves. We have endeavored in our preceding reports to show by means of selected items the economic progress which has been made from year to year. For the year 1925 we shall make the same observations. Unemployment has remained at almost the same level as during the last few years; that is, within limits which do not appear to be disturbing. The port of Antwerp has seen a great increase in the tonnage of the ships which have entered and cleared. Number of ships entered 1924.. 1925 „ . 9,709 9,971 Tonnage 19,305,907 20,201,598 The number of kilometer tons carried by the railways, which was 5,729 millions in 1913 and about 4,500 millions in 1920, rose to 7,040 millions in 1924. The amount of clearings handled by the clearing houses, which in 1923 was about 191,647,392,000 francs, and in 1924 about 229,532,725,000 francs, reached the sum of 251,385,234,000 in 1925, An examination of the trend of our trade balance shows a ratio of exports to imports in 1913 of 73.53 per cent, in 1924 of 79.24 per cent, and for 11 months of 1925 of 80.68 per cent. In the report of last year, describing the economic movement of 1924, we said: Although the year 1924 was more favorable than the year before, a slowing up in the rate of improvement is 262 FEDEEAL RESERVE BULLETIN APRIL, 1926 to be noted. Evidence of this is shown strikingly in the rate of the dollar have been between 19.36 and items of our principal products where the improvement of 1924 in comparison with 1923 seems much less 21.78. pronounced than that of 1923 over 1922. Further1923 19. 3697 more, certain products such as coal and iron manufac1924 _„__„„__ 21. 7884 tures show either a stationary production or even a 1925 . „_ 21.0668 retrogression. One gets the impression both from statistics and from actual practical affairs that we have During all the first part of the year 1925 the about reached the end of the period of reconstruction exchange reserves, which had been placed at and are approaching more nearly normal conditions. This double impression of improvement and of stabilization we shall have again as we go on with our examination. Let us take the situation of the domestic capital market. During the entire year 1925, the Belgian Government borrowed only about 950,000,000 francs, in the form of treasury bills; on the other hand, it redeemed maturing interprovlnciai bonds to the amount of 533,750,000 francs, Since May 31, 1923, the date of the last loan for the compensation for war losses, the Government has borrowed in all from the' Belgian market a sum of about 1,000,000,000 francs. Thus it may be said that the Belgian money market has not been depleted for public needs, and that it has been able, little by little, to reorganize its forces for other uses. The very great and ^necessary work of reconstruction made imperative by the war has now been almost finished. As to the budget, it should be realized that the persevering efforts carried on during the preceding years have brought us nearer and nearer to equilibrium. The deficit of 420 millions with which 1925 closed, as usual, corresponds almost exactly to the increase in the service of the foreign debt, the bitter fruit of the currency depreciation which has taken place since the budget was presented. The growing tendency toward stabilization of Belgian economic conditions is shown with great clearness by the balance sheet of the National Bank. The amount of notes in circulation plus deposits has scarcely varied in •the past few years. Since the beginning of January, 1924, it has moved very1 little from an average of 7,900,000,000 francs. The annual average of bills and that of advances on Government securities was 1,319 millions and 412 millions, respectively, for 1924 and 1,282 millions and 394 millions for 1925. The retail price index reflects a genuine stabilization In the domestic purchasing power of the Belgian franc. It was 521 in December, 1924, 534 in December, 1925, and 527 In January, 1926. The foreign exchange market gives the same impression of relative stability. In fact, since 1923 the variations of the annual average of the i On Feb. 4,1926, the total demand liabilities of the bank had fallen to 7,763,000,000 francs. our disposal the previous year so that we mightdefend the market from purely speculative maneuvers, were untouched; the exchanges without assistance maintained a level of about 95 francs to the pound and 20 francs to the dollar. In brief, the conclusion to be drawn from the facts was more and more clear that we were making progress toward a stabilization of our currency at about the existing level, that is, about 20 francs to the dollar. The ground'was appropriately prepared for stabilization. But the effective bond which had existed so long between the Belgian and the French franc, and to which we again especially called your attention last year, had not in any way been relaxed. In May, 1925, a simultaneous reaction affected both currencies, and in this country the pound rose from 95.88 on May 12 to 109.225 on July 1. Investigations made at that time in the money markpt showed that this was not the result of mere speculation which we could control by the use of the exchange reserves; in order to keep this intact for some decisive effort, the bank refrained from taking a hand, and after several months the Belgian franc steadied at about 107.50 to the pound. Certain circumstances then led the Government to hasten action In order to bring about financial soundness. In international financial circles it was expected that autumn was going to be a very difficult time for the French franc, and it was feared that once again causes outside Belgium herself would work against the exchanges and result in a new depreciation of the Belgian franc. The fruits of many years of effort, the prospects of improvement in conditions generally, all were in danger, if not of being utterly lost, at least of being seriously threatened if the foreign exchanges should continue their upward movement and if Belgian capital in dismay should seek to break through the barriers which were intended to prevent Its flight abroad. At that moment, two chief causes of uncertainty and unrest disappeared from our international horizon; the Dawes plan had settled the question of reparations; the problem of inter-ally debts as far as Belgium was concerned had been solved by the Washington agreement. The Government decided to act. APRIL, 1926 FEDERAL RESERVE BULLETIN For its part, the National Bank has always been deeply sensible of the injustices which any depreciation of the currency brings about, and of which the great number of those are victims who have shown their confidence in their country by lending it the fruit of their savings. But it is not only this part of the population for whom depreciation is a misfortune which must be stopped as soon as possible. Even industry, which for a time apparently benefits from depreciation, has come to understand that its real. interests are dependent on currency stability, and that a country empties itself of its own wealth when it exports in a period of rapidly depreciating currency. Undoubtedly it would be foolish and dangerous to try to stabilize at a level too high, which the economic condition of the country would not make it possible to maintain; but the principles of elementary justice require that depreciation should be stopped as soon as actual circumstances permit. For these reasons the bank decided to offer the Government the support of its services, its experience, and its credit. The first practical measures were taken as soon as the course of action had been determined. The news that the Government had decided to present, to Parliament a definite plan of monetary reform was sufficient to check speculation and to prevent . a panic. The movement of the exchanges was reversed, and the pound went down to about 107 francs in the early days of October. From that moment, at the express wish of the Minister of Finance and of the entire Government, the bank has tried by a suitable exchange policy to keep the exchanges at the level which they had established of themselves. In order to keep the Belgian franc from being dragged down by the fall of the French franc, it became necessary to intervene on a rather. large scale. The bank was able to do this, thanks to the exchange reserves which had been turned over to it after the loan of $100,000,000 floated in the United States in December, 1924, and June, 1925. But after the break had been definitely made the market settled down of itself, and the bank was able to build up again a considerable part of this reserve. The plan of stabilization proposed to our legislative bodies by the Government was based on those principles which in the past few years have been shown to be correct by many experiences throughout Europe. First of all, it was necessary to safeguard against all further depreciation of the franc with a 263 view to legal stabilization. To reach this result the bill emphasized the necessity for complete separation of the credit of the State from that of the bank; in other words, to make the bank note independent of the credit of the State. To this end the State undertook from now on to repay to the bank, if not the whole, at least the greater part of the debt incurred for the redemption of marks. At the same time it was necessary to assure the bank a reserve in gold or in foreign exchange equivalent to gold large enough to enable it to meet any emergencies. Under the circumstances, the percentage of such a metallic reserve was fixed at about 60. The Government therefore decided to float a foreign loan of $150,000,000. It is imperative to be prepared in case an}^one should offer a very large sum. for exchange, for the amount of notes in circulation is much above the actual needs of the country. The vault reserve ought always to be large enough to give complete security to any who should bring in notes. A legal provision will abolish the forced circulation of bank notes. The bank will be obliged to resume the redemption of its notes on demand. It may do this at its choice or according to circumstances either in gold or in checks drawn on places having a free gold market, and at the legal rate of stabilization. The bank will revalue its present metallic reserve; the difference created by this revaluation shall be turned over by the bank to the State, which shall use it to the due amount to amortise its debt to the bank of issue. The Latin Union long ago ceased to perform its functions; it has been denounced by the Government and our country will shortly reassume its full liberty of action. From all this explanation it is clear that the plan of monetary reform requires the cooperation of the National Bank, and necessarily implies the renewal of the right of note issue for a long period. Facing the present emergencies, both the Government and the bank realized, that it was better simply to continue the existing situation as regards the principles on which the bank was founded. The bill for extending the right of note issue corresponds to this general idea. Undoubtedly it carries certain modifications in organization, but these will not change the essential form. The Government will receive new benefits from our activity; in return, the existence of the bank on sound foundations is assured for 27 years longer. At this moment, when the bills for 264 FEDERAL RESERVE BULLETIN monetary reform and the extension of the right of note issue for the bank are under discussion in Parliament, we must be extremelycautious in our comments. Actual conditions had prepared the way for stabilization: to defer it again would have been to run the risk of never being able to do it except at a level far lower and under conditions far more unfavorable. These principles are in accord'with well-established doctrine. But their success implies the cooperation of all the many factors involved—-first, the bank, then the Government, and third the country itself. The past history of the bank, the care with which it has always guarded the interests of the whole country, make it a supreme duty •to devote to the realization of these plans all its activity, all its support. The board of directors, no matter how heavy may be their task, will not fail to do this, being assured in advance that they can count on the support of all the stockholders, who will also be animated by the conviction that the National Bank of Belgium, an institution which is truly national, should at all times place the general welfare before its own interests. The task of the Government will be hard, but it is clearly indicated. The genuine and unfailing equilibrium of the budget in its entirety is a condition sine qua non for maintaining currency stability. The Minister of Finance has given his positive assurance in the most formal way that the budget is balanced. The country has taken note of this official declaration. Except at the risk of compromising forever the prosperity of Belgium, of destroying the confidence of people in other lands who have never hesitated to come to our aid, it is absolutely imperative that the budget be kept in balance. Currency stability, furthermore, is also as indispensable to the equilibrium of the budget as that is to currency stability. The two conditions have to go together. We must now more than ever recognize the absolute necessity of keeping the public expenses at a level suitable to the actual resources of the country. For a nation just convalescing from the sickness of war, obliged to rebuild little by little the heavy losses thus brought about, the most rigorous economy is imposed by absolute necessity. It is not enough that the budget should be balanced. The Treasury must be fortified against any surprise. The Government has learned that it will have to take measures to bring this APRIL, 1926 about. Some of these have already been announced by the Minister of Finance; we ardently hope that these will be sufficient to prevent any embarassment to the Treasury. Whatever happens, moreover, the bank has affirmed many times, and it repeats once again, that it will oppose with all the powers at its command any issue of paper money for the account of the Government. Finally a part, and a large part, in the realization of the plan of financial recovery rests with the public. Fundamental indications, the many studies made abroad as well as in Belgium, lead us to believe that our balance of payments, leaving out the movements of capital due to special causes, is almost at equilibrium. But there is no doubt that in recent years it has been, and for a long time will continue to be, governed by the movement of capital which reflects the confidence or the lack of confidence of our own nationals or of strangers in the Belgian currency, and still more in the economic health of the country. During the years of currency depreciation large amounts of capital left Belgium to seek abroad the protection which the exchanges of stable currencies offered. When stability shall'have become an accomplished fact it is reasonable to hope that a great part of this capital will return to Belgium, there to profit bj conditions more favorable than elsewhere. But to change the direction of the current of capital it is necessary that the Belgians themselves should now become aware of their responsibilities, their powers, and their true interests. Those whose duty it is to enlighten the people, leaders in the banking world, members of the stock exchange, and all those who guide the investment of savings, must open the eyes of the people to these elementary truths. Finally and above all each one should realize that currency stability is not an end by a means. It is a means for restoring our country to herself, for making it possible to work and to produce under healthy, normal conditions, which will permit each person to receive and to keep the just reward of his efforts. Here again, and in happy fashion this time, we see the reciprocal bonds which unite economic phenomena; it is, thanks to currency stability, that the Belgians will be able to take up their work again with profit; and it is this same work, persevering, energetic and fruitful, which will be the best guarantee of the stability of the franc. APRIL, 1926 FEDERAL RESERVE BULLETIN 265 ANNUAL REPORT OF THE SWISS NATONAL BANK The eighteenth annual report of the Swiss National Bank, for the year 1925, contains the following account of its operations during the past year: The necessity for accord which under the pressure of economic demands had been making itself felt more and more throughout Europe crystallized, so to speak, In the results of the Locarno Conference In the fall of 1925. The agreements reached at this conference, and their ratification, already accomplished by the greater number of the Governments concerned, constitute a newadvance toward clearing away those obstacles, political and otherwise, which blocked the normal development of the economic situation. It is now realized, however, that it is not enough for an exhausted Europe to rely on artificial measures to come through her difficulties; she will emerge only little by little, by adapting herself to new circumstances, by long-continued effort, and, above all, by cooperation and collaboration of the various economic domains. Those who used to imagine that everything essential has been achieved when once the exchanges have been stabilized have- surely been disillusioned by the events of the past year. They will have recognized clearly that after the reestablishment of sound money the evils produced by Inflation disappear only as regards the particular form which is characteristic of the Inflation period, while under a different form, they continue to breed grave crises, the effects of which reach far beyond the countries directly concerned. Nevertheless, monetary reform in the various countries is the indispensable condition, not only of their own prosperity, but also of that of other countries. This interdependence explains and justifies that international collaboration which has played a part in practically air the great operations of currency reform and in which Switzerland also has participated. Just recently there has been another instance of the happy effects of close connections between the banks of issue. Currency problems were destined to remain in the foreground during 1925, and currency reforms have made further definite progress. To Sweden "and Holland, which like Switzerland had succeeded in reestablishing their gold parity, was added also England, whose pound sterling moved strongly toward its pre-war value. An epoch-making date in the monetary history of the year was the 28th of April, on which the English Minister of Finance, in the course of his budget speech, offered prospects of the return to gold currency, The significance of this event is in no way lessened by the fact that the system temporarily adopted by England differs considerably from her pre-war system. At the same time Holland adopted measures very similar to those of England; and it is to be expected that in the near future the other countries of northern Europe will similarly reform their currencies. While a certain number of countries have thus achieved their reforms, there are some others for whom the question whether, and to what extent, they will be forced to make radical changes in order to put their currency on' a sound basis, is still reserved for the future. They too will have to reestablish order in their public finances first of all, which they can do only after surmounting many obstacles, of which the greatest is the settlement of the war debts. This problem is far from being entirely solved, although important progress has been made by cooperation, among the Governments concerned.. We may at this point note the reassuring fact that the solidarity which used to exist among the various money markets is gradually reappearing, at least among those with high exchanges. Parallel with this fact, it may also be said that the official discount rate is recovering some of its old importance; this condition is once more producing an active discount policy. Until now the international movement of capital has in large measure continued to take the form of American loans to Europe; this has also contributed to the steadiness of the exchanges. Conditions are not wholly satisfactory in the realm of international commerce, for the growing tendencies toward protective tariffs constantly create new impediments.. Switzerland feels these especially because of her manyindustries producing for export. Regarded from the point of view of the general welfare, this protectionist policy is in flagrant contradiction to the great efforts being made by all the countries to develop their export trade as much as possible. The economic isolation of Russia, which has been but slightly relieved during 1925, has perceptibly helped to aggravate the situation. Switzerland has experienced new disappointments in spite of the cheering reports from many branches of our national economic 266 FEDERAL RESERVE BULLETIN life. Agriculture, the hotel business, the building industry, and various lines of the textile and machine industries report in varying degrees a satisfactory employment. Others—in particular watch making—complain of very irregular conditions; while a third group—-especially embroidery and ribbon weaving—are still experiencing a severe crisis, It is easy to understand that certain circles regarded with mixed emotions the complete removal of restrictions on imports which took place on December 31, 1925. The fact has to be recognized that, considering the conflicting interests of producers and consumers, and the difficulties at home and abroad which tariff policies present for Switzerland, the reform of the customs r6gime by making commercial treaties on the basis of a general provisional tariff, is indeed a hard problem to solve. If, on the whole, the financial situation presents a not unfavorable impression, the reason lies chiefly in the improvement of the public finances, begun back in 1924 and successfully continued. The return to sound financial methods, the continued funding of debts, and the gradual reestablishment of budget equilibrium have not failed to strengthen the credit of the country. In a general way conditions during the, past year have been characterized by less fluctuation than for several years preceding, especially as regards the bank. In the money market, the favorable development which began toward the end of 1924 has been quickened. As early as the beginning of the year the Federal railways were able to float a loan of 175,000,000 francs at 5 per cent (to mature in 11^2 years and at a subscription price of 98 per cent), of which 81,000,000 francs were applied to conversions; and in March they decided to accept an pffer from Holland of a loan of 50,000,000 Swiss francs. They were thus able under most favorable conditions to cover all their financial needs for more than the year 1925. In July the Confederation successfully floated a 5-year conversion loan for 139,000,000 francs of treasury bills maturing September 5, at a subscription price of 98 per cent and bearing 5 per cent interest. These are the only calls upon the money market which the Confederation and the Federal railways made during 1925. The leading securities quoted on the Swiss Stock Exchange benefited from the beginning of August until October from the general improvement, due above all to the trend toward lower rates of interest and to the prospect of a reduction in the official discount rate. It APRIL, 1926 is thiis that the long-term 5 per cent loans of the Cantons could be floated almost at par, and that, in general, the yield of gilt-edged securities declined slightly below 5 per cent. The interest rate of 5% per cent on certificates of deposit, adopted the year before by many of the banks, with some precipitancy, perhaps, was changed rather soon, and declined generally to 5 per cent, and for some important establishments even to 4J^ per cent. The last three months of the year fortunately saw announcements of numerous reductions of rates on mortgages which were to become effective at the beginning of 1926. These reductions, it is true, do not extend to very considerable amounts of capital; they are, nevertheless, an encouraging sign, for they give reason to hope that the improvement will continue. The building up of new capital in the country itself probably contributes but slightly to these better conditions. The increase of available money on the market is due, most of all, to a relatively small demand for new money compared with the demands of the year before (about 270,000,000 francs) and to a strong influx of capital from other countries. It is true that rather large sums of capital have found their way abroad, but in spite of the acute scarcity of funds among our neighbors and the resulting offers of attractive rates of interest, the export of capital has not yet reached a proportion sufficient to threaten the stability of the domestic market. The many sad experiences of recent years have without doubt exerted a restraining influence, for the Swiss capitalist, as a rule, has again become conservative in regard to foreign investments, although it is surprising to see the rapidity with which heavy losses incurred during and after the war have been forgotten in certain circles. It is no wonder that the public has come to be on its guard against the dangers of overinvestment in foreign securities. Still, one may ask how far this type of export serves the interests of our national economy. It is a question which can not be answered by any general formula, but should be specially studied in each case and decided according to the particular economic and financial situation; this, under certain circumstances, might demand that available funds should be kept for the needs of the country. The national economic life of Switzerland is closely bound up with that of other countries; the total isolation of our capital market is impossible, especially as for a long time before the war, and again recently, Switzerland has reaped great advantages from APRIL* 1926 FEDERAL RESERVE BULLETIN" the influx of foreign capital. When it is a question of supporting the level of our currency or of satisfying the financial needs of the Confederation, the bank of issue should be able to give an exact account of the capital operations which it carries on with foreign countries. The introduction of the "letter of security," now under consideration, will introduce a new factor into the money market. In the money market the private rate has declined with slight fluctuations from 3 per cent at the beginning of the year to 2 per cent by August; it began to rise again almost imperceptibly only at the end of October, and stiffened a little to 2 ^ per cent at the end of the year. Switzerland has maintained the lowest open-market rate of any country, but our market has been subject, to the same tendencies as that of other countries with sound currencies; for all that, the fluctuations,of the English and the American money markets have had but little influence on the private rate here. To Swiss capital returning from , abroad, where it was displaced by American money offered at a better rate, there has been added money' which foreign countries have sent to us. The purchase of foreign exchange carried on by the National Bank in its fight against an excessive rise in our franc above its gold parity has also enlarged the resources of our market to a considerable extent. On the other hand, paper offered for discount has not been sufficient to meet the needs of the banks. The changes made during the war in the methods of payment have diminished the use of commercial bills, and the credit needs of commerce and industry have been too moderate during recent years to stimulate, as would have been desirable, the creation of commercial paper. The National Bank has tried to alleviate this condition by turning over to the market part of the nonmterest-bearing securities which it received from the Confederation at the time of the withdrawal of the foreign 5-franc pieces of the Latin Monetary Union. Its purpose in doing this was to facilitate the placing of the liquid funds of the financial establishments and to curtail the export of capital. On account of a considerable amount of available funds in our market, the raising of the official rate in New York in February from 3 to 3J^ per cent and in London in March from 4 to 5 per cent passed almost without notice in Switzerland. On the other hand, the general easing of the money market which came during the summer, 267 bringing about a number of reductions in the discount rate (in England, for example, the rate was lowered in August from 5 to 434 per cent), was more clearly perceived with us. At this time" many recommendations were made that Switzerland should adopt a similar measure. It was not until October 22, however, that the National Bank decided to lower its discount rate from 4 to y% per cent and the rate for advances on securities from 5 to 43^ per cent; in the meantime the slight tension shown on the market at the beginning of September had relaxed a little, and the Bank of England, as well as the Bank of Netherlands, put into effect a new reduction from 43^ to 4 per cent. ' To tell the truth, the National Bank could have acted, earlier, at least so far as the discount rate was concerned, but it has always preferred to wait a little so as to be able without fear to reduce the rate for advances on securities in equal measure; the reduction of the . discount rate alone seemed inopportune, solely by reason of the wide disparity which would have resulted between the two rates. The National Bank was not trying by this reduction to tighten its relation with the market, but to point out to. the nation that it considered the international market in an easier state; that it felt that the time had come to lower rates of interest somewhat in favor of commerce and industry; and that, considering its own strong situation, the gold parity of the Swiss currency, reached a year before, might be regarded as assured. The market did not react at once; the lowering of the bank rate had in fact been expected for a long time, and the stock market had made allowances for it. But if the low rates have been maintained, it is to this action that it must be attributed. Although shortly afterwards the Bank of England was compelled to raise its rate from 4 to 5 per cent at the beginning of December, the National Bank has been able to keep its rate without difficulty through the end of the year. The average rate of discount in Switzerland was 3.90 per cent in 1925; 4 per cent in 1924; and 3.47 per cent in 1923. The rate for advances on securities was 4.90 per cent, compared with 5 and 4.47 per cent in 1924 and 1923, respectively. * * * The Swiss franc reached gold parity toward the end of the autumn of 1924. Later it even went above parity for short intervals to an extent which led the bank to change its monetary policy; the bank suddenly found itself compelled to intervene in order to prevent a new 268 FEDERAL, RESERVE BULLETIN rise of the franc, as before it had been compelled to act in support of the exchange. It is true that during the first three months the dollar showed a new upward tendency, but in April it was again approaching the lower gold point. At this time Switzerland-experienced— though to a less extent than Denmark and Norway later on—those difficulties which in some cases result from trying to control the course of a rising exchange. Realizing that a premium on the franc would, as little benefit the economic situation of Switzerland as would a level below parity, the -National Bank made large purchases of foreign exchange in order to keep the franc from rising above the gold import point. This task was made, easier by the fact that, besides the cities of Zurich and Berne, the Confederation needed large amounts in dollars, both to settle purchases in America and to assure the service of interest and amortization of loans floated in New York; and that the Government had decided to provide as early as 1925 for the repayment of the $20,000,000 loan maturing in 1926, In this way the level of the franc was successful!}?- maintained, so that in September the exchange had reassumed a quieter tendency. At this time the franc came down to parity with the dollar and even slightly below; it was no longer necessary for the bank to intervene either in one direction or in the other, and it was able to sell again a part of its foreign bills, which the sales of gold had helped, to increase, and which had reached a rather high figure. The year just past has seen little change in the circulation. Following the currency reforms in the more" important countries, one might have expected a very considerable return of Swiss bank notes which had found their way into those countries during the period of their inflation; and there was even more reason to expect a decline in the circulation from the fact that the issue of gold francs and of 5-franc silver pieces would decrease the hoarding of bank notes. The average circulation, however, showed only a slight decline and remained above the figure obtained by using the coefficient of the higher price level with the pre-war circulation as the base. This almost negligible decline is surprising, considering that the emergency currency put out by the Confederation, the state railways, the Cantons, and the towns—issues which at one time ran into hundreds of millions of francs—have come down since the beginning of 1923 to a very modest level; and that besides there have been put into circulation since 1922 not only about 70,000,000 in 5-franc pieces, but also APRIL, 1926 large quantities of gold coins. Experience shows, however, in all countries that bank notes once issued tend to remain in circulation as trade becomes accustomed to use them in larger amounts. Considering the progress made in consolidating the finances of the Confederation, and consequently, the reestablishment of more normal relations between the Government and the bank of issue, and given, on the other hand, the slight contribution of the bank to the money market, the amount of the note circulation can be explained to-day, so to speak, exclusively by the needs of business; and the elasticity of the currency during the entire year is a matter for much satisfaction. It is interesting to note that the curve of the wholesale price index also showed a downward movement in 1925, and that this preceded the reduction of the note issues. However, one ought not to conclude that there is a fixed relation between the two curves; indeed, the fluctuations of the figures which the3r represent are so slight that all kinds of factors difficult to determine, and influences, purely accidental, might have brought about this coincidence. Because of a forgery, the source of which is certainly to be sought abroad but which has not yet been discovered, the National Bank decided to call in the 100-franc notes with the portrait of Tell, which had been printed during the war. This decision was made easier by the fact that it had to do with a war note, issued during a short period in 1917-18, under the pressure of a rapid increase in demands for notes. The circulation of this note, which at first reached the total amount of 150,000,000 francs, had Mien to 15,000,000 francs by the end of the year. The bank made use of this occasion to call in at the same time the "interim notes'/ of 50, 100, 500, and 1,000 francs issued in 1907 after the pattern of the notes of the old banks of issue. All these notes thus called in lost their legal-tender status on December 31, 1925, but the National Bank is obligated to redeem them or to exchange them for their nominal value for 20 years more, that is, until June 30, 1945. On November 30, 1925, the period of repayment expired for the state currency notes of 5, 10, and 20 francs, issued as Government paper currency in 1914 at the beginning of the war. Of the war currency, there now remains in circulation only the notes of 5 and of 20 francs of the National Bank. The 25™franc notes of the Confederation Loan Office, of which the period of repayment has also expired, will still be redeemable at the Federal treasury until APRIL* 1926 FEDERAL RESERVE BULLETIN June 30, 1934, but in fact they have practically all been withdrawn. The issue of gold coins was again made possible at the end of 1924, because the franc had by that time reached its gold parity, a circumstance which evoked much interest. As in other countries, especially in England and in Holland, the question whether it was expedient to put gold coins into circulation provoted lively discussion in Switzerland. England definitely declared in • the negative. At first Holland followed that example, but recently a reversal of opinion seems apparent infthat country. The Swiss National Bank took the position, in principle, that it was not sure that the time had come for a return to an unlimited issue of gold, even if that could be done without restoring the obligation to redeem all notes in gold on demand. But in order to satisfy certain wishes and to remove all reasons for hoarding, the bank decided to put back into circulation, on demand, the gold coins presented at its windows. Since this decision the facts have shown that there is scarcely any demand for the yellow metal and that in general the public prefers bank notes., The board of directors have stated their agreement that there should be given a general authorization for the export of gold. This measure, which has now been passed by the Federal Government, can be revoked at any time. The practice of payments in gold has not been restored to any great extent; nevertheless, the facilities given have succeeded in. bringing out from their hiding places manygold coins, which, put into circulation in 1922, had again disappeared. As the bank has always kept the franc from, rising above the gold import point, there could be no serious question as to importing gold In bars for the mint. But because of the slight premium above par value, it was possible to buy abroad, by the weight of the metal, and at a slight profit, gold coins of the Latin Union countries, and to put them in circulation in Switzerland. When this business had been going on for some time on a rather large scale, the National Bank felt it a duty to request certain friendly banks of issue not to give out any more of this kind of coins for export.- This business was in fact not without its disadvantages, for it was carried on for the most part in. abraded coins, the melting down of which brought a certain loss to the charge of Switzerland, because, on account of the exchange, these coins could not be returned to any of the other countries and thus had to be kept here. For this reason, also, the Confederation has con- 269 sidered the possibility of putting severe restrictions on the import of gold coins, and even, if necessary, of prohibiting it altogether. ^ For the time being, however, this type of business has lost its interest on account of the decline of the franc from dollar parity. The question should not be lost sight of; all the less because the denunciation of the Latin Monetary Union by Belgium at the end of December brings up the question of the dissolution of the Union, and thus adds special interest to the problems connected with it. The metallic cover for notes in circulation has fluctuated during the year between 63 and 79 per cent; gold cover alone between 53 and 68 per cent. These fluctuations have corresponded to the monetary policy of the National Bank, which deemed it advisable, in order to. avoid the costs of transportation, to deposit part of its gold in some of the large foreign banks of issue. Although in principle it has held to the tried and proved rule of'an effective gold cover, the bank has judged it wise at times to put a fairly large part of its note cover into foreign exchange of the highest quality, to be better prepared to intervene in defense of our exchange. ' The 5-franc coins out of circulation. in the other countries of the Latin Union represent a total amount of 156,000,000 francs, and are included in the metallic note cover at about onehalf their nominal value; that is, at about the commercial value of their silver content; their repayment is guaranteed by noninterest-bearing obligations of the Confederation. According to the Paris agreement of December 9, 1921, part of this amount, about 136,000,000 francs, bears Interest since January 15, 1925, at 1 per cent on the nominal value of those coins which the countries of origin have paid to the Confederation; the latter, in conformity with the agreement made in November, 1923, with the National Bank, has turned over to it the entire amount of this interest. The repatriation of these coins will begin in 1927 and should be finished in 1932. **i't X-v We have already mentioned in our comments on the money market the most important event In the realm of discount policy, the reduction of the official rediscount rate. After this change, our portfolio of Swiss bills has remained within very moderate limits, and the bank has rarely had ally contact with the market. The necessity for having a rather large portfolio of foreign bills has had this result—that the flow of bank notes to the market has not come about to the same extent as formerly through the agency of Swiss 270 FEDERAL KESERVE BULLETIN" bills, but far more through the channel of foreign bills. But we ought to state that the portfolio of Swiss bills showed a considerable, although temporary, increase during the last 10 days of December. Nevertheless, in spite of the insignificant amount of Swiss securities, the National Bank could not change the fundamental principles of its discount policy and seek profits by discounting paper which, because it was not sufficiently liquid, ought not to be given place in the portfolio of a bank of issue. Even though the Confederation has recently at times discounted its securities at the bank within the limits fixed by the directors APRIL, 1926 of the bank, it has done so, not as formerly under the stress of an unusual situation, but merely the better to adapt its financial measures to the conditions of the moment, and to meet the temporary needs of the treasury, which were greater than its immediate receipts. The advances on securities, which have at times reached a ver^ high figure in comparison with the domestic bill portfolio, declined during the course of the year to about 41,000,000 francs, to rise again temporarily to 72,000,000 francs in the last week in December. ^C ^S JfJ GOLD RESERVES OF PRINCIPAL COUNTRIES, 1913-1925 The total gold stocks of. the principal countries of the world amounted to about $9,343,399,000 at the end of 1925, a decline of about $40,000,000 from the total for the same countries at the end of 1924, as shown by the table on the following page. The largest reductions were those of $139,000,000 for the United States and of $54,000,000 for England; the largest increase was that of $107,000,000 in the stock of the German Reichsbank, whose holdings are now above the figure recorded at the end of 1913. Lesser reductions were reported for the Netherlands, Switzerland, South Africa, and Japan, and increases for Russia, Java, Australia, and Canada.. Except for the countries enumerated above, the net changes were mostly small. The stock of European countries as a group increased slightly. The holdings of England declined by $54,000,000, those of the Nether- lands by $25,000,000, and of. Switzerland by about $7,500,000; on the other hand Germany added $107,000,000 to its holdings, Russia $21,000,000, Poland $6,000,00,0, and Hungary $3,000,000. As changes in other European countries were small, it appears.that the total gold reserves of Europe showed a net increase of about $50,000,000 in the course of 1925. In addition to this increase in monetary stocks, a certain amount of gold coin was put into circulation during the year in Switzerland and the Netherlands. The holdings of the European banks of issue included in the table were, therefore, about $3,128,000,000 at the end of 1925 and about $300,000,000 above the total reported holdings of such institutions at the' end of 1913, representing an increase of approximately 10 per cent over that vear, 271 FEDERAL RESEEVE BULLETIN APRIL, 1926 GOLD RESERVES OF PRINCIPAL COUNTRIES, 1913-1925 [In thousands of dollars, converted at par of exchange] United States End of year Total stock 1,924,361 1,815, 976 2,312,444 2,864,842 3,040,439 3,080,510 2,787,714 2,928,848 3,656,989 3,933,476 4,247,201 4,547,407 4,408,696 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920. 1921. 1922. 1923. 1924. 1925. End of year 1913... 1914.. 1915... 1916... 1917... 1918... 1919. 1920.. 1921. 1922.. 1923.. 1924.. 1925.. End of year 1913 1914 1915 1916 1917 1918. 1919 1920 1921, 1922 1923 1924, 1925 In Treasury and in Federal reserve banks 262, 5,443 504,:,672 758,1,595 973, !,233 1,770, >,347 2,243, E, 895 2,091, .,051 2,216, 1,154 3,021, .,266 3,201, .,540 3,249, ),852 3,118, 2,870,328 I Czechoslovakia: Banking National Bank Bank al National Austrian AustroNation; Bank Hun- Bank of Bank of Office National garian of of of the of Den- Finland Bank Belgium Bulgaria In circuFrance Bank Ministry mark lation of Finance 251,421 213,757 138, 758 58,759 53,717 53,074 45,111 ill 116 19 661, 918 311,304 553,649 891,609 270,092 836,615 712,694 635,723 731,936 997,349 428,771 1538,368 1,313 1,560 2,087 10,615 10,615 11,773 13,124 12,159 12,352 7,141 7,141 7,334 7,415 7,565 7,792 7,932 4,053 12,545 20,874 22.574 31,745 30.575 Banks of Italy, Naples, NaNaand NaNational of Bank of tional Bank of tional Sicily Bank tional Bank of NetherBank of Portuand Bank of HunNorway Bank of lands RuNaPoland Greece gary mania tional Treasury 5,211 7,527 11,194 11,580 12,159 10,422 11,001 11,001 10,808 6,058 7,250 7,680 8,875 7,460 10,365 288,103 299,759 293,453 255,772 238,931 243,566 203,441 204,362 210,739 217,284 215,699 218,382 218,825 60,898 12,846 83,663 • 11,181 172,530 18,028 236,217 33,027 280,689 31,214 277,155 32,691 256,204 39,590 1,667 255,729 39,472 2,858 243,600 39,475 5,955 233,880 30,4.74 9,769 233, 876 39,472 13,078 202,854 39,457 19,949 178,080 39,456 8 25,793 8,760 9,261 9,261 9,261 9,261 9.266 9.267 9,267 9,267 9,267 9,267 29,242 29,714 36,264 22 19,666 24,506 29,833 42,847 46,611 52,159 60,807 60, 992 61,192 61,173 56,171 56,145 56,085 Russian State Bank 2 142,517 137,872 169,128 176,064 195,172 190,688 192,265 175,187 154,723 222,050 171,191 192,504 203,495 224,989 213,906 251,158 252,390 269,628 299,119 450,057 450,057 450,057 454,035 435,880 435,880 * 53,202 * 26,601 •14,598 * 14,598 *14,598 15,571 15,571 19,464 25,303 27,401 48,665 53,799 56,451 1,330 1,330 1,330 9,039 23,413 24,384 32,893 34,025 34,025 34,025 34,025 34,025 10,826 21,899 13,483 38,932 22,530 73,484 33, 251 78,351 42,003 85,650 46, 718 104,143 56,756 116,796 57,307 115,336 59,494 113,389 56,807 116,499 56,812 121,088 56,809 '130,904 56,811 §164,828 3 25,306 27,739 33,092 36,012 39,419 39,419 38,932 37,472 37,472 38,367 38,294 37,581 37,589 72,780 30,202 41,361 86,712 63,842 96,205 116,249 118,341 118,341 108,609 108,609 108,609 802,591 967,950 652,885 639,682 664,017 694,847 685, 517 690,141 708,403 709,479 710,394 710,968 278,687 498, 508 581,954 599, 873 572,768 538, 861 259, 519 280,028 237,102 227,436 111,247 180,939 287,763 B a n k of Spain Swedish Riks- National Bank of Switzerland 92,490 110,444 166,414 241,424 379,597 430,072 472,041 474,228 484,984 487,278 487,841 489,292 489,631 27,372 29,088 33,385 49,183 65,513 76,532 75,350 75,516 73,631 73,,428 72,853 63,508 61,646 32,801 45,922 48,275 66,585 69,025 80,041 99,779 104,780 106,058 103,283 103,669 97,642 90,140 786,800 803,400 831,200 758,396 667,041 2 200 329 329 7,585 24,563 26,020 26,735 8,299 8,299 8,299 8,299 8,299 8,299 8,299 8,299 8,371 8,242 8,354 8,357 2,607 45,043 73,050 94,095 Domestic Canada: holdings UruMinister Argentine Brazil: Chilean of the India: Governguay: New Zeaof finance Govern- Guaran- ment Australia: GovernBank of Bank Bank land and ment con- tee of ment of Note Japan conof the reserve chartered version currency version rupee Java and of reserves Rebanks fund fund banks reserve the fund public Government » Austrian account only. 2 Oct. 16-29. 34 Includes 54,912,948.87 zlote ($10,598,000) held abroad. Conversion fund. «6 Mar. 31,1914. Includes a small amount of gold held abroad. * Includes $9,704,000 in banking department. 8 Includes $36,990,000 in banking department. 59,131 56,619 50,759 50,759 50,759 51,145 51,417 51,438 51,451 51,901 52,204 52,543 52,855 Great Britain: Bank of German Reichs- England and bank currency note reserves 64,963 64,062 68,187 113,411 229,981 225,821 349,947 551,840 610,663 605,678 600,194 585,738 575,768 10,027 12,418 18,804 28,984 37,051 51,600 69,817 88,214 58,728 61,306 62,869 53,726 73,394 bank National Bank of Egypt South Africa: jointstock banks and Reserve Bank 10,381 21,750 35,096 29,164 19,278 16,312 16,312 16,807 16,807 16,619 16,510 16,510 16,510 « 39,905 6 43,799 8 44,772 6 34,066 30,172 33,579 35,525 50,612 57,911 50,782 51,838 52,441 43,594 170,245 428,221 389,205 402,970 422,594 523,632 583,211 762, 912 763.719 751, .>79 754,400 757,033 703,482 Yugoslavia National Bank 12,352 14,282 12,354 13,286 13,965 14,657 Total 5,421,248 5,921,145 6,862,300 7,190,850 7,641,923 7,224,527 6,978,234 7, 670,570 8,424,829 8,770,836 9,000,423 9,380,964 9,343,399 272 FEDERAL EESEB.VE BUI/LETIN APEIL, 1926 FINANCIAL STATISTICS FOR PRINCIPAL FOREIGN COUNTRIES [Bank figures are for the last report date of month, except for London clearing banks, which are daily averages GERMANY [Millions of reichsmarks] ENGLAND [Millions of pounds sterling] 1925 1926 Febru- Janu- Decem- February ary ary ber Bank of England; Issue departmentGold coin and bullion Notes issued.. Banking department— Gold and silver coin___ Bank notes... ._-. Government securities Other securities _ Public deposits Other deposits __«. Ratio of gold and note reserve to deposit liabilities (per cent) _ Bank notes in circulation1 Currency notes and certificates Nine London clearing banks: Money at call and short notice._. Discounts and advances Investments Total deposits.— Total clearings Government floating debt: Total., Treasury bills „ Temporary advances Index of security prices (December, 1921=100) (per cent)..-.. Index number of foreign exchange. value of the pound sterling (per cent) K. _.___...-_.. 143 163 143 163 143 163 127 147 1 22 38 79 16 106 1 21 46 74 23 101 2 17 64 103 8 161 2 22 42 74 16 106 18.9 85 284 18.1 85 286 11.5 88 297 19.4 98 281 110 1,073 255 1,606 3,140 113 1,088 262 1,637 118 1,078 261 1,647 3,548 121 1,055 287 1,643 3,316 729 582 147 785 639 146 817 636 181 760 592 168 117.6 117.5 116. 5 117.9 Febru- Janu- Decem- Februber ary ary ary Reichsbank: Gold at home . „__ Gold abroad Reserves in foreign exchange..... B ills of exchange and checks..... Miscellaneous assets Deposits_«-. R eichsmarks in circulation_ _ _. Rentenmarks in circulation Reichsbank clearings 6 Berlin banks: * Cash Bills. . . . . _ . . Due from other banks Miscellaneous loans Deposits -..__. Index of security prices (Jan. 2,1925= 100) (per cent) - Capital issues ..... 1,192 190 461 1,346 783 586 2,822 1,587 3,886 1,112 143 418 •1,464 609 579 2,649 1,589 4,177 71.62 20 72.61 20 1,111 97 403 1,915 590 697 2,960 1,609 4,398 700 207 302 1,737 1,684 918 2,106 1,967 3,637 249 1,247 642 2,383 4,686 85 883 624 1,874 3,571 58.56 16 101.47 i Bimonthly statements. ITALY [Millions of lire] 1925 1926 100:0 1 Notes issued, less amounts held in banking department and in currency note account. 2 New series. FRANCE [Millions of francs] Bank of France: Gold reserve L... .._.._... Silver reserve .... War advances to the GovernmentNote circulation....... Total deposits -.._._._. Three commercial banks: Demand deposits. Bills _„__... _.__ Other loans Clearings, daily average of Paris 1925 1926 3,684 329 34,500 50,991 3,013 Price of 3 per cent perpetual rente____ 49.00 3,684 325 34,200 50,618 3,188 3,684 321 35,950 51,085 3,335 3,681 306 21,900 40,792 2,028 19,980 19,210 13,221 4,862 14,622 10,280 4,397 1,554 49.15 1,855 48.35 1,027 48.10 Janu- Decem- Novem- Januber ary ary ber Banks of issue: 1,134 Gold reserve * 2,026 Total reserve _ _ ._ Loans and discounts,._ _.=„__ 11,589 Note circulation for commerce .. 7,065 Note circulation for the State Total deposits.___-„—.._._--_-. Leading private banks: Cash -_.„_..._„„„ Loans and discounts Due from correspondents Participations __„»_ Total deposits State note issue. - . . 2,100 205 Index of security prices (per cent)--— 1,134 2,041 10,477 12,287 7,063 2,466 1,134 2,070 9,666 12,134 7,067 2,366 1,131 1,819 7,626 10, 500 7,146 2,806 2,100 216 1,051 9,086 4,217 516 13,271 2,100 230 1,246 9,065 4,089 404 13, 284 2,400 259 * N o t including gold held abroad. 1 N o t including gold held abroad. JAPAN CANADA [Millions of dollars] [Millions of yen 1926 1925 Janu- Decem- Novem- January ber ber ary Chartered banks: Gold coin and bullion J_ ..... Current loans and discounts.__„_... Money at call and short notice Public and railway securities Note circulation Individual deposits Gold reserve against Dominion notes. Dominion note 2circulation _ Bank clearings __. . . . Bank debits 2 1 Not including gold held abroad. 62 1,123 377 563 161 2,168 127 214 1,331 2,368 69 1,142 394 550 174 2,270 135 227 1,898 3,121 60 1,130 392 559 184 2,313 132 226 1,670 2,787 2 Total for month. 1925 1926 53 1,114 319 542 155 2, 083 131 222 1,410 2,230 Febru- Janu- Decem- February ber ary ary Bank of Japan: Gold at home and abroad .... Advances and discounts Advances on foreign bills.. Notes issued... . . . . . Total deposits Total note and deposit liabilities. Tokyo banks: Cash on hand . « _. Total loans.-. „. __ _„_ . Total deposits Total clearings. _ .- 1,057 330 147 1,293 769 2,062 1,057 374 172 1,388 713 2,101 1,057 456 207 1,500 736 2,236 l,05§ 507 82 1,297 932 2,229 116 2,449 1,959 3,245 127 2,416 1,922 2,743 117 2,403 1,908 3,853 110 2,392 1,861 2,552 273 FEDERAL RESERVE BULLETIN APRIL, 1926 CONDITION OF CENTRAL BANKS IN OTHER COUNTRIES 1925 1926 Febru- Janu- De- February cember ary ary Austrian National Bank (millions of schillings): Gold Foreign bills Domestic bills __ . . . Treasury bills . Total principal earning assets Notes Deposits Total note and deposit liabilities. National Baefe of Belgium (millions of francs): Gold Foreign bills and balances abroad Domestic bills . _____ . Loans to State Notes --_ Deposits Total notes and deposits __ National Bamk of Bulgaria (millions of leva): Gold Foreign bills, etc D omestic loans and discountsAdvances to State Total principal earning assets Notes Deposits Total notes and deposits Banking Office, Czeehoslovakla, (millions of Czechoslovak crowns): Gold and silver Balances abroad and foreign currency Bills discounted Advances on collateral ._ Note circulation Deposits. _.Bunk of B&ezlg (millions of Danzig gulden): Balances with Bank of England.. Foreign bills, etc Loans and discounts Total principal earning assets Notes Deposits. Total note and deposit liabilities. National Bank of Dtumark (millions of kroner): Gold Foreign bills, etc Loans and discounts Advances to State . „» tal principal earning assets m To Notes Deposits 1 note and deposit liabilities Bank of Finland (millions of Finnish marks): Gold Balances abroad and foreign credits Foreign bills _ _ Domestic bills State debts... Note circulation.. _____.__.. Demand liabilities Total notes and demand liabilities. National Bunk of Greece (millions of drachmae): Gold and balances abroad Government loans and securities Discounts and loans _ Note circulation Total deposits Total note and deposit liabilities 1925 1926 15 541 111 188 838 812 28 840 15 520 144 187 851 823 45 868 15 558 180 188 926 890 55 94? 274 274 274 30 984 5,200 7,415 162 7, 577 30 1,125 5,200 7,462 344 7,806 30 1, 036 5,200 7,471 556 8,027 30 1,325 5,200 7,599 260 7,859 41 513 1,321 5,390 7,224 3,655 2,598 6, 253 40 976 1,241 5 281 7,498 4,380 2,059 6,439 11 473 128 215 816 796 32 828 ; 272 1,072 1,07! 1,032 1,029 1,179 544 378 7,074 1,070 1,180 648 422 7,245 1,228 1,199 748 458 8,408 742 595 978 542 7,728 633 16 19 15 34 32 4 36 15 17 19 36 32 5 37 17 17 .18 35 35 4 39 15 10 16 26 30 9 39 209 78 110 15 203 399 42 441 209 70 117 16 203 403 40 443 209 90 121 22 233 438 68 506 209 30 262 38 330 453 64 517 332 332 332 332 1,227 80 433 262 1,350 644 1,994 1,361 104 421 262 1,292 788 2,080 1,408 102 424 361 1,309 862 2,171 907 5 597 470 1,288 560 1,848 2,361 3,799 3,322 5,339 3,380 8,719 2,080 3,811 2,924 4,979 3,610 8,589 Febru- Janu- De- February ary cember ary National Bank of Hungary (millions of pengos): Gold Foreign bills, etc Loans and discounts Advances to Treasury Other assets.. _ __ _ _. Note circulation.^. „ Deposits. _ Miscellaneous liabilities 59 194 151 156 280 405 195 213 59 207 134 156 327 416 214 227 48 159 134 158 267 339 203 203 202 21 65 86 345 56 401 183 21 80 101 353 40 393 134 18 74 92 273 69 342 24 31 65 51 29 78 50 24 28 63 52 29 75 49 24 31 64 52 29 73 52 24 40 48 53 29 83 46 Bank of'Lithuania (millions of litas): Gold Foreign bills Loans and discounts Total principal earning assets Notes—. _. Deposits Total notes and deposits _ 30 30 49 79 82 25 107 32 29 50 79 79 25 104 32 30 49 79 82 24 106 31 63 37 100 93 34 127 Netherlands B&ek (millions of florins): Gold . .. — Foreign bills Loans and discounts Total principal earning assets 1 Notes.. _ _ ___Deposits Total note and deposit liabilities.. 432 203 203 406 818 77 895 438 248 220 468 833 96 929 443 247 204 451 875 42 917 504 128 252 380 881 64 945 147 90 286 376 330 148 147 60 298 358 335 111 147 55 320 375 363 99 147 31 370 401 368 100 478 446 462 468 4,047 759 2,565 6,473 752 4,050 728 2,506 6,425 648 3,938 705 2,822 6,400 973 4,094 982 1,462 5,828 673 134 60 323 377 134 61 315 362 133 70 326 381 107 206 315 550 88 94 7 36 84 17 36 48 5 9 76 173 149 154 275 394 207 199 Hauls of Java (millions of florins): Gold . . . Foreign bills Loans and discounts. . Total principal earning assets Notes Deposits Total note and deposit liabilities.. Bank ©f Latvia (millions of lats): Gold Foreign exchange reserve. _. Bills Loans Note circulation... Government deposits Other deposits.- Bunk of Norway (millions of kroner): Gold —. Foreign exchange Domestic credits Total principal earning assets Notes Deposits.. . Total note and deposit liabilities SescorYe Bank of Peru (millions of libras): Gold at home Gold abroad _ Bills.-.—. --. Note circulation DepositsBank off Poland (millions of zlote): Gold Foreign exchange, etc. __ __„. _ Loans and discounts Note circulation Current accountsPrivate ___.- ...» Treasury,. . Liabilities in foreign currency.... 42 274 FEDERAL RESERVE BULLETIN APRIL,, 1926 CONDITION OF CENTRAL BANKS IN OTHER COUNTRIES—Continued 1925 .1926 February JanuDe- February ary cember B a n k of P o r t u g a l (millions of escudos): Gold.... ...— Balances abroad. Bills Note circulation . . . - - _ Deposits.. -..-..-.„„ National B a n k of Hiimamta (millions of lei): Gold Bills . —„—.... Government loans Note circulation . __ Deposits _ 9 344 156 1,820 78 568 8,199 17,013 19,989 8,784 S t a t e S a n k of Russia (note-issuing department; thousands of chervontsi): 15,334 Gold Foreign currency _. 4,981 54,114 Loans and discounts 75,892 Bank notes.-N a t i o n a l B a n k of t h e K i n g d o m of Sertoss Croats* a n d Slovenes (millions of dinars): Gold Foreign bills, etc Loans and discounts-_-__ Advances to State Note circulation..,-_ _ __ „_ Deposits Total note and deposit liabilities— 9 325 155 1,716 81 567 8,313 17,121 20,222 8,594 563 7,243 16,724 19,122 7,588 17,723 18,239 4,967 4,887 51, 750 52,315 75,992 78,136 15,214 9,566 31,281 56,055 567 8,230 17,013 19,881 8,659 77 353 1,330 2,966 5,718 510 6,228 77 353 1,310 2,966 5,783 568 6,351 76 367 1,371 2,966 6,063 491 6,554 1925 1926 72 352 1,355 2,965 5,760 583 6,343 De- FebruJanuary cember ary February S o u t h African Reserve B a n k (thousands of pounds sterling): Gold___„ .-.__. 8,116 5,587 Foreign bills „.___— 1,825 Domestic bills. __ 7,413 Total principal earning assets Notes .___.„_—__-. 8,194 6,121 Deposits.. Total note and deposit liabilities. 14,315 B a n k of Spain (millions of pesetas): Gold ._.. Balances abroad-_--_....-Bills discounted.. .. Note circulation.... Deposits _ B a n k of Sweden (millions of kroner): Gold Foreign bills, etc._-__-.Domestic credits Total principal earning assets Notes.. .-„_-_. Deposits ._ Total note and deposit liabilities.. Swiss N a t i o n a l B a n k (millions of francs): Gold...... .„ ..__. Total principal earning assets.—. Notes _.-.„„Deposits.-.. Total note and deposit liabilities.. 8,164 6,131 1,314 7,445 8,609 6,018 14,627 8,957 6,319 1,286 7,605 8,756 6,796 15,552 14,073 1,718 2,197 3,915 11,136 6,578 17,714 2,537 29 779 4,373 1,295 2,537 29 801 4,406 1,257 2,537 29 769 4,423 1,264 2,536 30 939 4,472 1,032 230 183 230 202 475 511 475 230 203 434 637 530 277 807 234 149 430 579 493 27G 763 467 478 876 127 1,003 348 819 80 163 654 427 385 775 447 375 776 103 879 DISCOUNT RATES OF 31 CENTRAL BANKS [Prevailing rates, with date of last changel Country Austria Belgium ____Bulgaria Czechoslovakia Danzig Denmark.. . England Rate In effect since— 7H Mar. 31,1926 Mar. 11,1926 10 Aug. 31,1924 6 8 5 Jan. Jan. Sept. Dec. 13,1926 19,1926 8,1925 3,1925 Country Rate Esthonia Finland France Germany. __ Greece Hungary India.. _ Italv ... 10 6 7 10 7 6 7 In effect since— July Oct. July Mar. Aug. Oct. Dec. June 1,1925 29,1925 9,1925 27,1926 18,1925 21,1925 3,1925 18,1925 Country Japan Java...—..Latvia Lithuania.. _ Netherlands Norway. __._ Peru... Poland Rate 7.3 6 8 7 3H 6 6 12 In effect since— Apr. May Feb. Feb. Oct. Jan. Apr. Aug. 15,1925 3,1925 16,1924 1,1925 2,1925 12,1926 1,1923 12,1925 Country Portugal Rumania Russia _ South Africa Spain-. Sweden... Switzerland . Yugoslavia.. Rate 9 6 8 5H 5 4M 3H 6 In effect since— Sept. Sept. Apr. Nov. Mar. Oct. Oct. June 12,1923 4,1920 —,1924 21,1924 23,1923 9,1925 22,1925 23,1922 Change.—National Bank of Belgium from 7 to 7}4 per cent on Mar. 11,1926; German Reichsbank, from 8 to 7 per cent on Mar."27,1926; Austrian National Bank, from 8 to 1XA per cent on Mar. 31,1926. 275 ' FEDERAL RESERVE BULLETIN APRIL, 1926 FOREIGN TEADE OF PRINCIPAL COUNTRIES (UNITED STATES) FOREIGN COUNTRIES [Thousands of dollars] 12 months ended February— 1926 1926 Febru- January ary 12 months ended February— 1926 IMPORTS By classes of commodities: Total. . . . . . . . . . . . . . . . . _ 388,503 416,766 4, 352, 295 Crude materials i „ . . 174,020 201,092 1,844,994 Foodstuffs, crude, and food animals. _ . _ _ — . 42,110 48,632 510,102 425, 890 Manufactured foodstuffs _____ 35,998 774, 630 Semimanufactures „__„__ 72,844 71,140 800,243 Finished manufactures..',. 63,531 67,076 By countries: Total E u r o p e . . . 105,318 111,210 1,248,918 153, 485 France.._—.._...__..__— 12,080 12,826 173, 376 Germany.. — . _ . _ . . . . . . . _ 16,548 16,006 100,804 8,554 I t a l y . . . . . . . . . . . . . . . . . . . . . 6,774 415, 477 34,620 United Kingdom........_ 37,281 980,426 Total North America. __ 87,047 73,559 460,906 Canada.... 37,646 35,576 538,255 Total South America___..__.» 51,955 53,518 80,517 A r g e n t i n a . . . . . . . . . . . . . . . . .9,412 7,678 Total Asia and Oceania...... 132,612 162,083 1,488,846 403,613 Japan......... . . . . . . . 33,177 40,407 96,414 Total Africa — _ _ _ . . _ . 11, 571 16,397 France (million francs): Imports ......... Exports, Germany (million gold marks): Imports ........... 3, 661, 686 Exports.. „ ..... United Kingdom (thousand £ 1,311,172 sterling): Imports.. 436, 607 Exports „_.,. 496,762 Keexports_—_.._...._.. 657,908 Canada (thousand dollars): 759, 237 Imports .. ...... Exports _-..1,113,090 Japan (million yen): 152,109 Imports _ ...... 138,776 Exports ...... ... 80,165 370,201 981,998 400,957 476,950 81,926 1, 011, 055 335,580 77, 595 EXPORTS By classes of commodities: Total............ ......352,917 397,196 4,842,841 4,647,148 Crude materials i . . . . . . . . 89,317 Foodstuffs, crude, and food animals. _ _ . _ _ . . . . . . _ . . . . . . . 12,172 Manufactured foodstuffs . 41,837 Semimanufactures 47,917 Finished manufactures....___ 154,576 R e e x p o r t s . . . . . . . . . . . . . . . . . . . . . 7,098 By countries: Total Europe.. 171,968 France—.__._—__ 21,724 Germany 22,166 Italy „...___ 12,823 United K i n g d o m . . . . . . . . . 75,834 Total North America 82,588 Canada 45,976 Total South America ._ 35,265 Argentina ..—— 10,885 Total Asia and Oceania _ 56,063 Japan „_ . . . . . 18,934 Total Africa ______ 7,032 1 Tndudes miscellaneous. 113,925 1,332,478 February January 5,244 4,409 4,483 3,868 47,198 46, 536 39, 845 42,037 721 788 733 801 12,117 9,097 10,487 7,015 96,845 117,689 1, 298,303 757, 900 62, 814 60,380 13,221 11, 742 152,211 1,318, 657 807,138 140, 591 69,736 911,107 85,716 1,310,459 799,248 1,079,089 1926 1925 1925 1,383,315 15,845 414,306 295,901 47,788 562,253 562,691 51,853 656, 717 612,143 158,708 1,899,994 1,583, 774 9,077 95,590 91,357 199,794 2, 484, 002 2, 533,554 29,731 279,903 290, 587 25,537 424,648 443,749 14,382 186, 536 200,129 82,159 992,420 1, 022,823 84,780 1,153, 378 1,090,977 47,437 614, 241 37,775 418,446 323,131 14,938 151,752 122, 238 66,545 695,390 629, 769 23,425 227, 573 227,176 8,302 92, 480 69, 716 70,709 243 160 January, 1926 205 166 December, 1925 2,504 2,319 2,461 1,-903 12 months ended Janunry— 1926 Denmark (million kroner): 147 156 2,036 Imports ........ 121 1,901 Exports.. 132 Czechoslovakia (million crowns): 1,979 17, 304 Imports . . . . . 1,117 1,179 1,950 Exports . 18, 471 Ssthonia (million Esthonian marks) : 702 9, 594 779 Imports..-.. 1,004 Exports ._-._ 683 Finland (million finmarks): 5,479 287 697 Imports....... 327 197 5,526 Exports -_ . . . Hungary (thousand gold crowns): 731,000 Imports.. -— 53,308 65, 482 719, 200 Exports . . . . . . . 53, 426 69,029 Italy (million lire): 2,459 26, 299 Imports.— _._.__ 1,953 1,786 1,118 Exports.. 18, 275 Netherlands (million guilders): 205 205 2,450 Imports 141 122 Exports.-. 1,784 Norway (million kroner): 106 94 1,399 Imports 72 1,029 Exports ._—__.__.._.._ 77 Poland (thousand zloty): 68,492 83,039 1,564,976 Imports... Exports.. --- 159,304 186,704 1,448,344 Russia (thousand rubles): 766,138 Imports ..— 61,000 55,900 553,211 Exports -.._--.„.-. 34,800 42,400 Sweden (million kronor): 107 120 1,438 Imports.— __----. 76 1,352 117 Exports _— Switzerland (million francs) : 201 252 2,612 Imports........ . . 124 157 1,998 Exports..—.—... Australia (thousand £ sterling): 13, 495 14,775 159, 037 Imports 154,979 Exports. . _ . 14, 636 14,675 Egypt (thousand Egyptian pounds): 5,287 58,135 Imports--. . . . . . . 4,644 6,750 56,137 Exports __—_—. 4,804 India (million rupees): 225 161 2,244 Imports,—. 315 4,021 353 Exports . South Africa (thousand £ sterling): 6,270 68,479 Imports.... . — . . . . 5,917 85,062 Exports . - . _ . . . . — . 7,098 9,266 1925 2,406 2,193 16,459 17, 742 • 8,195 7,992 4,658 718, 700 577, 900 20, 037 14, 647 2,397 1,684 1,557 1,083 1,566,894 1,276, 531 1,426 1,273 2,539 145,312 141,150 51, 546 65, 223 2,455 3,858 66, 350 71,477 276 FEDERAL RESERVE B U L L E T I N APRIL, 1926 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES ALL C O M M O D I T I E S J Pre-war—100] Europe Year and month Austria (gold basis) 1925 January February March April May _ June July _ . August _,___ September October November December . 1926 January..... February March Bulgaria 147 559 146 143 551 546 3,275 3,309 3,272 3,244 3,177 3.225 3,041 2,870 2,834 2,823 2,822 2,913 1,045 1,048 1,034 1,020 1,006 2,901 139 138 141 137 131 127 127 125 125 . England Czecho- Denslo- J mark i (Board of vakia Trade) BelgiuiD. 122 . 538 537 552 559 567 577 575 569 565 560 556 1925 January . February March April May June July August September October November 1926 January February Anarch 151 149 1,094 1,091 634 636 169 166 993 996 989 977 220 216 216 206 189 168 163 158 163 159 158 158 157 156 155 154 977 160 966 950 157 151 998 1,009 513 520 543 557 557 556 572 606 633 159 518 138 137 134 131 132 134 135 132 126 124 121 122 527 540 120 118 456 457 463 460 467 483 490 491 482 482 498 160 161 161 156 155 166 165 162 157 159 161 161 162 161 157 160 159 158 159 169 169 168 163 162 191 188 175 173 174 187 188 184 Peru 199 194 206 208 200 Australia Nether- Norway Poland lands (Oslo) 658 160 153 145 660 659 158 155 144 141 141 136 134 135 131 129 658 660 883 707 731 721 716 712 151 151 153 155 155 155 154 154 267 260 258 254 245 231 221 217 130 715 155 218 120 121 122 119 118 119 120 124 127 128 137 155 127 707 704 153 150 214 211 142 148 China Dutch (Shang- East Indies hai) India (Calcutta) 171 172 168 169 163 163 160 158 159 160 159 160 159 158 178 177 179 175 163 162 157 163 173 175 157 160 162 160 160 159 176 157 162 163 160 160 160 185 187 157 154 159 159 157 157 175 179 186 187 155 156 157 157 160 158 200 198 200 205 205 158 156 161 164 204 203 165 170 158 158 183 190 186 153 152 156 155 151 156 155 164 162 206 205 204 161 160 164 163 1 Italy Asia L d Oceania North and South America 171 171 170 166 163 191 192 193 190 191 195 197 515 514 Hungary (gold basis) 145 United States Switzer(Bureau Russia i Spain Sweden land i of Labor Canada Statistics) 172 178 183 _„ 514 153 1,137 1,141 1,131 1,133 1,122 1,129 1,118 1,142 1,133 1,121 1,118 1,120 171 234 230 Europe—Continued Year and month 234 Germany [Federal Statis- FederRe- Statistical tical al serve Bureau) Bureau Board France Finland 174 175 177 178 164 279 281 276 Africa Japan New Egypt South (Tokyo) Zealand (Cairo) Africa 213 210 204 202 178 175 175 175 199 175 158 160 200 198 200 201 200 164 163 198 194 163 158 192 188 174 175 175 175 176 176 176 157 161 155 154 151 150 151 151 152 1.53 L45 140 130 134 134 124 130 127 124 First of month figures. The foreign index numbers of wholesale prices are cabled to the Federal Reserve Board by the various foreign statistical offices. Index numbers of commodity groups for most of the countries are also available in the office of the Division of Research and Statistics of the board, and may be had upon request. Wherever possible the indexes have been shifted from original bases to a 1913 base. Further information as to base periods, sources, number of commodities, and period of the month to which the figures refer may be found on page 48 of the January, 1924, issue of the BULLETIN. 277 FEDERAL RESERVE BULLETIN APBIL, 1926 GROUPS OF COMMODITIES (Pre-war-100) UNITED STATES—BUREAU OF LABOR STATISTICS All com- Farm modities products Year and month Foods Cloths and clothing ChemiMetals Fuel Building cals and and materials and metal lighting products 1925—February.. 161 162 157 191 178 136 183 135 September. October..... November, December. 1926—January. „. February,. 160 158 158 156 156 155 160 155 154 152 152 150 160 158 160 157 156 153 189 190 188 187 186 184 169 172 175 175 177 179 127 128 130 130 429 128 174 174 176 177 178 177 136 135 135 135 133 132 House fur- Miscellaneous 173 125 168 166 166 165 164 135 138 142 138 135 133 ENGLAND—BOARD OF TRADE Total food All eommodities Year and month Cereals Meat and fish Other foods Total not food Iron and steel Other minerals and metals Cotton Other textiles Other articles 1925—February. 169 176 184 163 182 165 134 139 233 206 161 September October. __ November, December., 1926—January... _ February. 156 155 154 153 151 149 166 159 148 152 158 154 148 166 167 167 173 165 156 170 176 175 169 167 170 151 150 148 146 148 144 121 120 119 118 119 118 130 131 130 131 131 131 204 194 182 175 175 174 179 181 181 178 176 172 157 158 158 156 153 149 164 165 167 182 159 FRANCE—STATISTICAL All commodities Year and month 1925—February September October November December 1926-—January February - ; -- All foods BUREAU Animal foods Vegetable foods Sugar, coffee, cocoa All industrial material Minerals Textiles Sundries 515 467 446 487 ' 452 555 473 758 507 556 572 606 633 634 636 492 $91 510 538 543 546 486 485 496 535 532 536 490 496 522 537 544 541 495 480 502 529 548 567 608 637 682 709 707 708 522 585 606 622 627 646 807 830 928 953 941 925 566 578 611 647 645 643 Colonial goods, Total in- Hides coffee, dustrial and cocoa, products leathers etc. Textiles Metals and minerals GERMANY—FEDERAL STATISTICAL BUREAU Year and month Total All comfood modities products Grains and potatoes Fats, sugar, meat, and fish 1925—February.. 137 135 130 137 179 139 135 September. October. _. November. December. 1926—January... February.. 126 124 121 122 120 118 121 118 115 116 115 113 106 103 150 146 142 137 134 134 181 181 181 183 185 183 135 134 133 131 130 130 125 123 120 116 113 110 103 101 189 192 188 182 176 172 Coal and iron 134 122 132 131 130 128 128 127 121 120 120 120 120 120 278 FEDERAL BESEBVE BULLETIN APRIL, 1926 RETAIL FOOD PRICES AND COST OF LIVING RETAIL F O O D P R I C E S [Pre-war=100] European countries United States Austria Bel- 2 Bul(51 cities) (Vienna) • gium garia 1925 Jan Feb.Mar... MayJune... July— Aug... Sept... Get-... Nov Dec... 1926 Jan Feb Mar 27,168 27,065 26,7fe6 26,448 27,037 27,031 26,550 25, 739 25,294 25,186 25,108 25,373 151 148 148 148 149 152 157 157 156 158 164 162 161 158 Netherlands Norway Russia a Switzerland* 590 610 624 620 599 599 602 621 643 646 649 660 156 157 157 155 154 152 152 152 152 149 149 148 277 283 284 276 265 261 260 254 241 228 223 221 205 208 211 217 221 219 218 210 208 215 217 224 172 172 171 169 168 169 169 169 170 168 168 167 145 147 145 142 141 141 141 146 146 147 151 156 148 149 151 152 154 155 156 156 156 157 156 155 152 152 155 153 151 149 152 147 146 148 149 151 681 676 148 147 216 212 226 230 165 163 157 155 155 154 151 150 151 Eng- France Ger- Greece Italy (Miland 8 (Paris) many (Athens) lan) 140 3,131 137 3,163 134 3,128 127 3,100 122 3,032 127 3,083 130 2,906 135 2,744 140 2, 710 144 2,698 148 2,698 148 2,785 178 176 176 170 167 166 167 168 170 172 172 174 408 410 415 409 418 422 421 423 431 433 444 463 137 145 146 144 141 146 154 154 153 151 147 146 141 171 168 165 480 495 143 139 2,773 Other countries 1,506 1,510 1,562 1,478 1,443 1, 516 1,515 1,511 1,544 1,597 1,676 1,718 Can- Aus- India New Zea- South ada » tralia (Bom* bay) land Africa 147 146 149 149 150 149 151 152 153 155 156 154 120 120 121 124 123 122 120 119 118 y 119 117 116 116 117 COST O F LIVING [Pre-war=100] Other countries European countries Massachu- Bel- Czech- Eng- Esoslothosetts gium vakia . land 3 nia 1925 Jan... F e b .1. , Mar .. Apr... May_. June.. July__ Aug... Sept.'. Oct... Nov.... Dec... 1928 Jan Feb Mar 158 157 158 158 158 159 160 161 161 162 162 165 NethSwit- Can- Aus- India South Fin- France Ger- Greece Hun- Italy (Mi- er- Nor- Po- Spain Swezer- ada 3 tra- (Bom- Africa den land* land (Paris) many (Athens) gary lan) lands way land lia bay) 521 517 511 506 502 505 509 517 525 533 534 534 899 911 90$ 901 894 914 916 894 884 875 863 866 180 179 179 175 173 172 173 173 174 176 176 177 113 1,199 110 1,191 114 1,210 112 1,201 111 .1,176 112 1,191 114 1,218 112 1,266 110 1,242 108 1,228 107 1,227 109 1,197 527 526 521 854 845 175 173 172 110 1,166 1,175 386 390 4.01 421 124 136 136 137 136 138 143 145 145 144 141 141 140 139 1,417 1,420 1,449 1,419 1,408 1,448 1,472 1,484 1,503 1,547 1,610 1,644 141 135 132 130 131 130 126 127 126 124 123 123 580 592 602 ,600 591 596 598 610 624 643 643 649 122 665 661 179 271 179 259 179 248 177 234 145 146 147 146 143 144 146 149 149 152 157 173 188 178 189 192 191 177 188 190 190 176 190 190 189 "175"" 186 183 173 172 172 170 170 170 170 170 170 168 168 168 149 150 148 ~150~ 147 146 146 "153" 146 148 148 "l54~ M9 152 154 157 157 159 158 156 154 157 152 151 153 153 155 133 133 133 134 134 134 133 132 132 132 131 131 170 171 188 167 165 155 154 155 154 155 131 131 174 "1 1 January, 1921= -100. 3 First of the month figures. 4 2 1921=100. Revised index. NOTE.—Information as to the number of foods and items included, the origina ibase periods, and sources may be found on page 276 of he April, 1925, issue of the BULLETIN. The original bases of the indexes have been shifted to July, 1914, wherever possible. 279 FEDERAL RESERVE BULLETIN J, 1926 BANKING AND FINANCIAL STATISTICS FEDERAL -RESERVE BANKS AVERAGE DAILY CONDITION FOR FEBRUARY AND JANUARY, 1926 [Amounts in thousands of dollars] Total bills and securities Federal reserve notes in circulation Total deposits Total cash reserves Reserve' percentages Federal reserve bank January February Boston New York Philadelphia— Cleveland Richmond.. Atlanta _ Chicago. _ St. Louis Minneapolis Kansas City.... Dallas San Francisco . _„ _. Total: 1928 1925________ 1924 1923........ 1922 1921 1920. _ „ _ - _ 1 February 108,148 297,330 98,385 91, 998 53, 746 74, 795 144,341 62,134 30,887 66, 678 52, 948 . 94,938 128, 673 245, 922 91,284 105,029 51, 912 102, 598 162, 760 67, 946 34,384 68, 056 63,163 109, 610 207,586 957, 503 209,059 313,020 103,989 173,667 367, 040 66,293 93,191 92, 297 59, 760 282,124 1,176,328 1, 050,323 921, 588 1,152, 862 1, 215, 221 2, 869,233 3,154,054 1,231,337 1,072, 077 1, 000, 668 1,191,191 1,304,165 3. 034, 65p 3,043, 952 2, 925,529 3, 041, 913 3, 239, 282 3, 208, 682 3, 070, 045 2.343. 537 2, 053,422 January February 922,498 072, 677 241, 596 201, 969 043, 984 287, 274 098, 498 February 148, 884 855, 864 134, 093 181,330 72,227 85, 237 328, 522 85, 658 54,274 91,859 64, 244 172, 536 148,192 872, 556 137, 443 177, 700 70,956 83,104 327,433 86, 804 55,560 91, 912 64,389 173, 249 2, 274, 728 2,233, 531 1, 954, 479 1, 969, 757 1, 814, 446 1, 804, 476 2, 002,503 2, 289, 298 2, 276, 911 1, 979, 913 1, 981, 717 1, 800, 989 •1,822,600 2, 027, 861 191, 588 1, 030, 504 216, 724 306,099 106, 707 144,451 350, 208 61,063 93,443 94,157 52, 628 274,926 2, 3, 3, 3, 3, 2, 2, January 153,527 369,155 149,403 203,226 79, 436 160,4.02 162,606 37,309 64, 701 66,290 39, 977 189, 554 1, 675, 586 1, 714, 929 2, 034, 540 2, 244, 733 2,176,529 3,068, 578 2, 946, 863 . February January January 162,934 372,469 148, 057 215,544 85,034 162,771 172,285 38, 409 67,389 69, 768 43, 975 198,018 68.6 78.2 73.7 81.4 68.6 70.7 74.7 53.9 78.3 58.4 57.3 77.9 61.6 82.8 75.9 77.8 68.4 58.7 70.1 48.8 76.0 58.2 48.6 74.1 1, 736,653 1, 754,356 2,112,873 2, 288, 527 2, 272, 057 3,177, 656 2,887, 846 74.1 77.0 81.2 76.1 76.9 1 49. 6 1 43.3 72.5 76.2 79.2 75.0 74.7 !47.5 i 44. 9 Calculated on basis of net deposits and Federal reserve notes in circulation. FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS RESOURCES [In thousands of dollars] Gold with Federal reserve agents: Feb. 24 Mar. 3 Mar. 10 Mar. 17 Gold redemption fund with U . S . Treasury: Feb. 24 Mar. 3 Mar. 10 Mar. 17 Gold held exclusively against Federal reserve notes: Feb. 24 Mar. 3 Mar. 10 Mar. 17_Gold settlement fund with Federal Reserve Board: Feb. 24 Mar. 3 Mar. 10.. Mar. 17 . Gold and gold certificates held by banks: Feb. 24 _. Mar. 3 Mar. 10 Mar. 17 . Total Boston New York Phila- Clevedelphia land 1,406,149 1,383,170 1,408,708 1,432,402 104,350 105,983 112,813 119,295 299,433 309,315 329,315 379, 220 124,518 120,701 121,756 117,940 191,117 192,208 192,666 190,089 46,334 50,723 50,406 58,431 8,265 6,018 8,3211 11,051! 12,913 11,813 10,435 9,206 6,294 9,926 12, 776 1,359 3,145 3,592 4,761 1,452,483 1,433,893 1,459,114 1,490,833 112,615, 112,001 121,134 130,346 312,346 321,128 339,750 388,426 130,812 129,597 131,682 130,716 192,476 195,353 196,258 194,850 674,072 688,567 692,997 48,324 59,030 62,935 48,264 205,661 244,862 225,385 189,259 42,612 43,716 44,760 51, 541 640,048 642,324 647,047 631,833 42,323 44,634 46,402! 43,265i 368,325 363,227 366,4571 352,910 i 28,135 28,790 26,111 25,901 Richmond Atlanta Chicago St. Louis Minne- Kansas City Dallas apolis San Francisco 58,411 131,308 130,248 55,993 134,925 50,162 125, 032 129,509 129,467 129,467 129,420 16,593 15, 715 15,251 15, 061 61,071 62,349 62, 690 62,006 48,634 44,850 46, 587 45, 775 24,998 25,596 24, 676 26,466 216,207 189,753 182, 569 171, 936 3,059 1,609 2,619 3,508 3,192 3,062 4,493 3,555 2,720 6,563 326 1,232 1,213 870 1,010 1,465 3,419 3,859 1,731 2,088 1,854 1,743 2,028 1,489 1,066 2,503 3,304 3,876 61,127 59,971 59,052 51,771 133,927 133,756 138,117 128,094 134,002 133,022 132,187 135,983 16,919 16,947 16,464 15,931 62,081 52,053 63,814 48,709 63,575 48,318 63,086 47,863 26,852 27,339 26,704 27,955 217,273 192,256 185,873 175,812 64,523 51,748 47,938 i 46,179 28,824 27,300 23,454 30, 280 34,422 30,729 35,916 32,665 152,175 127,093 150,175 153,208 11,899 17,031 16,184 16,067 23,633 27,692 15,172 19,135 20,988 25,672 18,169 22,229 24,184 11,386 24,791 19,945 41,450 21,813 37,928 48,346 49,998 48,187 { 49,105! 4,365 4,715 5,f" 4,1 3,333 3,617 4,075 3,777 66,234 70,140 71, 633 72,257 17,407 15, 821 17,371 17,921 2,716 7,059 6,892 6,798 7,269 4,624 5,313 6,174 5,812 10,005 10,070 10,086 10,200 39,892 39,107 38,673 38,830 280 FEDERAL RESERVE BULLETIN APRIL, 1928 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued RESOU ECES—Continued [In thousands of dollars] Boston New York Phila- Cleve- Richdelphia land mond Atlanta 2,766,603 2,764,784 2,799,158 2,811,265 203, 262 215, 665 230,471 221,875 929, 217 931,592 930,595 201,559 202,103 202,553 208,158 305,345 297,099 292,383 290,134 94,316 91,986 87, 586 86,637 171,1 168,102 178,108 164,536 352,411 330,255 353,995 361,448 149,907 148,754 151, 682 153,392 20,442 19,660 18, 693 18,604 40,558 40,616 42,427 43,034 5,018 4,786 4,641 4,572 7,445 8,125 6,843 9,168 7,252 7,392 8,740 8,867 9,206 8,831 9,837 8,820 21,544 20,743 21,522 20,598 1.7,132 18,037 18,525 18,923 2,670 2,729 2,861 2r~~ 4,584 4,761 4,576 4,722 926,890 206,577 312,790 101,568 180,888 373,955 969,833 305,224 99,378 176,933 350,998 974,019 207,194 299,226 187,945 375,517 973,629 212,730 299,302 i5,504 173,356 382,046 63,357 67,836 68,544 68,842 95,443 94,423 97,418 93,108 88,953 84,455 84, 957 99,847 3,642 3,644 3,731 3,629 971 934 1,260 1,119 2,434 2,382 Total Total gold reserves: Feb. 24 Mar. 3 Mar. 10 Mar. 17 Reserves other than gold: Feb. 24 Mar. 3 Mar. 10 Mar. 17 Total reserves: Feb. 24 Mar. 3 . — - —— Chicago M a r . 10 ._. Mar. 17.— - • -• 916,510 913,538 950,840 964,657 223,704 235,325 249,164 240,479 -• 66,298 65,296 4,679 4,948 5,594 5,245 23, 568 23,984 27,074 24,580 2,444 M a r . 3_. 1,982 2,052 2,926 3,934 3,009 4,247 4, 4,531 4,386 4,392 4,218 3,799 4,615 3,897 311,570 319,423 263,904 260,479 13,796 14, 035 13,881 15,241 159,628 131,791 115,039 76,""" 34, 241 32,045 30,159 33,565 22,586 27, 618 24,643 29,008 14,159 14,795 14,681 15,721 7,035 7,054 4,393 13,059 228, 513 263,791 238,521 220,136 30,743 22,054 8,493 41,332 40,785 40,979 27,858 22,156 20,151 21,842 21,002 20,958 27,364 23,074 19,224 21,855 28,622 28,969 29,302 18,366 27,270 26,001 34,259 25,943 30,242 21,645 540,083 583,214 502,425 480, 815 44,539 36,089 22,311 23, 734 200, 960 172,576 156,018 104,190 304,128 286,607 284,520 257,138 47,316 43,37< 40,595 40,506 73,420 67,263 69,140 57.410 19, 754 19, 299 19, 717 16,426 18,025 19,124 21,009 20,883 9,634 9,374 10,841 10,223 60,213 60,285 60,437 63,831 572 572 572 571 1,93. 1,93 1,934 1,934 604 604 604 604 8,103 8,103 8,103 1,240 1,240 1,240 1,240 174, 954 171,432 187,335 75,418 2,154 2,438 1,768 597 43,314 38,172 41,202 15,459 3,637 3,638 3,778 470 18, 655 18, 655 19, 704 11, 796 3,06' 3,061 3,431 1,38! 95,418 94, 041 111,894 213,328 5,312 15,398 14, 822 14,243 14, 821 5,25' 5; 43! 18,161 16, 927 5,386 116, 744 16, 913 4,801 4,801 V5,595 "" 1,136 1,136 1,448 1,416 330,585 325, 758 359,666 352,577 60, 646 8,26' 5 4 , T • • 61,297 7,77 6,554 134,137 31,559 31,559 33,496 25,494 5,443 5,443 6,125 4,038 Nonreserve cash: Feb. 24 - --- Mar. 1 0 — — Mar. 17 -• Bills discounted: Secured by TJ. S. Government obligations— Feb. 24 Mar. 3 Mar. 10 Mar. 17... Other bills discounted— Feb. 24.. Mar. 3 _..,. Mar. 10... Mar. 17 Total bills discounted: Feb. 24 -Mar. 3 - . . — — — Mar. 10— — Mar. 17 _-_— -Bills bought in open market: Feb. 24 Mar. 3. Mar. 10 Mar. 17 --U.S. Government securities: Bonds— Feb.24__.._. Mar. 3 Mar. 10. Mar. 17 Treasury notes— Feb. 24.--.. Mar.3 Mar. 10 — Mar. 17 ---Certificates of indebtedFeb. 24.. Mar.3__ Mar. 10Mar. 17Total TJ. S. Government securi ties: Feb. 24 Mar.3 Mar. 10 Mar. 17 Other securities: Feb. 24 Mar.3 Mar. 10 . Mar. 17.. Foreign loans on gold: Feb. 2 4 . . . . . „ . „ . --. Mar.3. . Mar. 10. Mar. 17 .... Total bills and securities: Feb. 24 Mar.3 Mar. 10 Mar. 17 56,397 42,737 36,014 25,401 53,887 43,417 33,055 51,117 52,007 43, 650 30,336 56, 639 48,232 45,023 43,301 19,063 19, 063 21,309 17, 987 3,050 3,050 3,050 3,050 3,150 3,150 3,150 1,610 585 1,917 2,384 2,411 2,110 660 827 836 732 1,185,046 100,41 1,207,429 88,392 1,158,559 71,353 1,101,640 71,37! 336,943 296,572 288,866 297,847 '8,924 18,126 16,029 14,834 7,100 8,700 8,798 7,700 10,375 9,070 8,404 8,936! St. Louis 46,225 92,773 84,369 49,799 91,694 79,694 50,019 94,557 80,381 49,919 90,300 95,125 27,561 10,676 54,408 10,349 37,681 8,821 33,406 12,341 13,429 15,258 11,393 13,271 San Francisco Minne- Kansas Dallas apolis City 276,300 253,592 249,337 252,570 7,715 7,087 7,203 ^7,385 58,370 61,565 53,990 65,859 284,015 260, 679 256, 540 259,955 2,457 2,662 2,831 3,312 3,501 3,693 3,401 2,484 10,302 6,268 12,672 76f 3,591 474 827 742 888 8,628 7,561 8,167 20,462 5,256 5,817 5,963 5,683 16,831 34,015 29,378 29,352 5,730 6,644 6,705 6,571 25, 459 41,576 37, 545 49, 814 3,340 4,250 3,114 3,143 7,784 9,886 9,210 24,105 5,824 18,086 25, 607 10,518 22, 558 64,501 20, 214 3,876 14,145 55, 051 25, 612 6,734 15, 714 54,831 7,120 7,047 7,""" 7,430 15, 274 14, 739 13,896 12, 731 16,596 14,194 13, 723 12,082 22,886 24, 991 24,592 22, 646 2,035 2,035 2, 035 2,03" 7,665 7,665 7,665 7"~ 8,388 8,051 7,579 7,676 8,636 472 474 474 476 9,163 15, 906 13,420 9,165 17,390 13,420 10,248 18,673 15,120 3,887 7,817 5,673 6,415 6,415 7,227 2,711 16, 946 15,898 26,379 16, 946 15,74" 26,379 18,822 17,89: 29,465 7,163 6, 658 11,805 ,9 2,49 3,186 3,113 8,126 6,483 17.091 8,126 6,132 17.092 9, 714 7,820 19,704 9,546 7, 640 19, 926 26,269 31,376 16,458 22,312 31,092 13, 797 18,499 30,234 14,300 13,363 14,851 959 20,190 1,001 20,190 1,006 20,190 990 22,890 5,043 6,256 5,042 6,441 5,965 7, 953 7, 013 10,299 15,165 15,208 17,219 11,890 8,45 8,45 9,88 9,73 42,352 23, 901 44,021 23,907 46,816 27,044 41,006 17,44, 16,57* 16,57i 18,07£ 13, 48$ 8,938 33,460 33,960 37,474 25,396 30,432 29, 458 33,387 22, 934 43, 942 43,945 49, 643 32,207 249 305 308 270 497 600 607 531 100 100 10© 560 760 931 941 824 37( 46: 466 408 291 348 352 308 1,192 1,206 1,055 93,081 51,467 100,234 58,695 107,453 61,085 95,433 59,695 67,126 70,923 66,406 70,910 129,53' 164,97! 142,757 125,69S 234 278 28: 24( 64,797 63,681 61,93* 56,751 29,75e 34,421 30,20! 27,891 339 343 300 67,204 53,007 92,784 71,696 50,601 111,112 65,958 54,123 112,387 54,141 41,857 105,198 281 FEDERAL EESEEVE BULLETIN APBIL, 1926 FEDERAL RESEKYE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued 'RESOUBCE8—Continued [In thousands of dollars] Total Dues from foreign banks: Feb. 24._ Mar. 3 Mar. 10 . Mar. 17... .. ... Uncollected Items: Feb. 2 4 . . . . . . . _ .. ... Mar. 3 _ Mar. 10 Mar. 17.___ ............... Bank premises: Feb. 24 ............. Mar. 3 . Mar. 10. . . . Mar. 17 All other resources: Feb. 24.. Mar. 3 .... „ Mar. 10 Mar. 17 . Total resources: Feb.24... . Mar. 3 . . . . . . . Mar. 10 . Mar. 1 7 . . . — . . . . Boston 780 749 737 712 NewYork Phila- Cleve- Richdelphia land mond Atlanta Chicago Minne- Kansas Dallas apolis City San Francisco 780 749 737 712 697,429 711,125 628,454 831,669 62,889 61,469 54,594 73,657 156,025 155,005 140,105 197,767 63,220 63,450 57,152 80,691 69,282 75,979 54,620 75,990 55,013 56? 112 54,655 67,453 59,368 59,368 59,406 59,406 4,068 4,068 4,068 4,068 16,666 16,666 16,666 16,666 1,480 1,480 1,505 1,505 7,409 7,409 7,409 7,409 2,364 2,364 2,364 2,364 2,748 2,748 2,761 2,761 7,933 7,933 7,933 7,933 17,008 16,918 17,775 14,134 92 86 89 94 4,473 4,565 5,521 2,495 362 330 334 294 1,180 1,187 1,203 846 375 382 381 364 1,129 1,103 1,098 1,076 2,220 2,096 2,042 1,967 395,850 1,465,345 394,288 1,467,374 384,862 1,452,988 394,922 1,513,696 373,007 370,355 364,196 392,106 486, 668 493,967 472,920 483,227 215, 592 221,462 219,194 229, 769 299,110 294, 296 299, 326 297,642 614,985 632,796 613,543 641,312 4,942,439 4,974,423 4,884, 769 5,039,004 St. Louis 43,001 90,963 38,790 97,727 36,501 76,890 45,642 114,731 38,331 34,681 32,227 38,733 4,111 4,111 4,111 4,111 12,396 40,422 28,796 37,091 13,282 . 49,198 26,348 39,084 12,655 42,569 26,363 40,123 15,071 44,618 31,597 45,719 2,943 2,943 2,943 2,943 4,636 4,636 4,636 4,636 1,793 1,793 1,793 1,793 3,217 3,217 3,217 8,217 433 • 2,381 431 2,327 432 2,252 409 2,352 451 539 543 480 456 446 475 376 3,458 3,426 3,405 3,381 143,890 148,330 146,737 142,492 204,100 212,906 201,251 206,179 145,346 143,242 139,406 144,313 423,875 421,019 419,365 420,871 174, 671 174,388 170,981 172,475 • LIABILITIES Federal reserve notes in actual circulation: Feb. 24...—•___.__._.. Mar. 3 Mar. 10-.—................ Mar. 17—................... Deposits: Member bank—reserve account— Feb. 2 4 — . . . . . . . . . . . . . . . Mar. 3 . . . . . . . . . . . . . . . . . . . Mar. 10 Mar. 17. Grovernment— Feb. 24 .___ Mar. 3 Mar. 10 Mar. 17 Foreign bank—Feb. 2 4 . . . . . . . -.-„„. Mar. 3 . . . . . . . . . . Mar. 10 _ Mar. 1 7 . . . . . . . . Other deposits— Feb. 2 4 . . . . . . . . . . . Mar. 3 Mar. 10 • Mar. 1 7 . . . . . . Total deposits: Feb. 2 4 . . . . . . . . . . . . . . . . . . Mar. 3 . . . . . . . — . . . Mar, 10 Mar. 17.—_ Deferred availability items: Feb. 24..... _ Mar. 3... _. Mar. 10.. Mar. 17............. Capital paid in: Feb. 24... Mar. 3 Mar. 10 ..... Mar. 17. Surplus: Feb. 24 Mar. 3 . . . Mar. 10 Mar. 1 7 — _-. 88806—261- 1,679,362 1,675,354 1,671,754 1,659,210 161,577 157,404 155,036 153,518 148,131 208,223 371,283 145,049 203,448 371,325 145,993 204,189 371,788 145,861 199,058 2,202,879 2,224,329 2,209,698 2, 230,282 139,932 142,475 141,195 141,489 853,125 856,855 852,587 867,825 36, 670 52,472 48, 554 6,685 8,041 8,555 351 7— 130,849 132,655 129,920 137,427 3,833 750 4,230 2,595 3,044 • 2 , 1 7 " 428 260 78,179 77,556 78,235 77,331 172,405 65,055 179,034 70,680 177,130 174, 542 68,358 1,393 3,519 3,312 951 4,741 1, 159,518 160,832 161,213 160,309 162,381 163,046 164,209 163,632 37,043 36,974 37,118 64,31! 64, 519 64,222 64,109 65,629 65,165 64,740 64,194 39,435 39,338 38,508 37,649 188,103 190,671 187,110 184,643 79,208 317,159 80,234 324,041 321,176 81,086 327,301 81,521 83,347 82,506 80,127 54,146 52,113 50,893 51,920 86,305 87,135 83,519 85,405 61,400 58,703 60,013 58,582 161,774 157,057 156,982 156,220 1,804 10,868 7,244 721 2,380 2,321 2,054 132 1, 540 8,075 8,396 786 680 2,593 1,17" 81' 1,589 1,144 919 439 6,715 6,264 7,671 4,560 2; 017 2,371 . i; 231 146 827 405 407 481 1,646 2,291 891 1,376 498 506 509 601 561 570 574 677 278 28 284 209 213 214 253 718 730 735 22i 229 231 272 168 171 172 203 204 208 209 247 183 187 188 222 362 368 370 4S7 17,232 19,322 18,253 21,305 323 121 85 322 8,431 8,584 7,942 9,991 231 72 78 648 820 1,057 1,108 1,075 14: 128 81 81 42 48 76 93 822 1,194 1,025 1,255 437 1,408 1,306 1,056 165 213 181 207 163 145 165 160 39 52 4' 33 5,617 6,300 6,159 25 262,231 2,302,283 2,281,289 2,264,647 147,338 151,042 150, 242 142,643 867,035 871,960 864,464 879,620 132,328 135,828 132,684 138,936 175.179 184.180 182,124 177,245 70,216 71,895 70,887 68,920 86,174 86.759 92; 850 82,259 320, 503 336,833 330,180 330,144 84, 563 87,305 86,097 81,587 56,019 60,572 59,642 53,116 87,352 90,081 85,070 86,629 63,211 60,086 61,167 59,276 172,313 165,742. 165,882* 164,272* 648,557 644,103 60,656 59,528 53,247 72,332 135,334 127,839 120,675 165,742 59,728 56,666 52,640 74,411 65,794 577,943 761,108 49,063 69,357 48,450 53,235 51,242 64,645 32,611 31,127 40,849 83,512 84,269 70,213 98,415 37,700 34, 611 32,470 38f328 11,960 11,646 11,061 13,681 B7,301 43,831 37,580 41,508 31,424 27,334 38,41* 39,551 41,291 40,851 119,316 119,721 119,993 120,394 8,618 8,662 8,772 33,559 33,795 33,812 33,871 11,908 11,900 11,929 11,929 13,460 13,460 13,460 13,460 6,049 6,057 4,822 4,B70 4,877 4,919 15,852 15,889 16,140 16,292 5,137 5,155 5,150 5,150 3,158 3,155 3,152 3,152 4,227 4,237 4,237 4,286 4,270 4,279 4,279 4,280 8,257 8,261 8,23$ 8S237 220,310 220,310 220,310 220,310' 17,020 17,020 17,020 17,020 59,964 59,964 69,964 20,464 20,464 20,464 20,464 22,894 22,894 11,919 11,919 11,919 22,894: 11,919 8,700 8,700 8,700 8,700 30,613 30,613 30,613 30,613 9,570 9,570 9,570 9,570 7,501 7,501 7,501 7,501 8,979 8,979 8S979 8,979 7,615 7,615 7,615 7,615 15,071 15,071 15,071 15,071 5,450 6,160 4,784 5,971 282 FEDERAL RESERVE BULLETIN A P R I L , 1926 FEDERAL RESERVE BANKS—RESOURCES AM© LIABILITIES, BY WEEKS—Continued LIABILITIES—Continued [In thousands of dollars] Total All other liabilities: Feb. 24 Mar. 3 ._.. Mar. 10 Mar. 17—. 12,652 13,480 13,335 Total liabilities: Feb. 2 4 . . . . . . — Mar. 3 Mar. 10 Mar. 17—. -.-.-4,942,439 4,974,423 —-4,884,769 5,039,004 Boston 641 632 655 637 New York Phila- Cleve- Richdelphia land mond 2,565 2,533 2,748 2,711 448 439 505 1,118 1,093 1,190 1,213 Atlanta 780 524 559 606 854 858 Chicago St. Louis 2,124 2,146 2,188 2,216 Minneapolis Dallas City San Francisco 715 704 720 722 940 937 1,159 612 613 645 509 500 503 504 1,713 1,723 1,773 1,797 215,592 299,110 395,8501 , 465,345 373,007 394,288 1.,467,374 370,355 493,967 221,462 294,296 384,862 i; 452', 988 364,196 472,920 219,194 299,326 394,9221,513,696 392,106 483,227 229,769 297,642 614, 985 632,796 613,543 641,312 174,671 174,388 170,981 172,475 143,890 148,330 146,737 142,492 204,100 212,906 201,251 206,179 145,346 143,242 139,406 144,313 423,875 421,019 419,365 420,871 MEMORANDA Ratio of total reserves to deposit and Federal reserve note liabilities combined (per cent):* Feb. 2 4 . . — Mar. 3 Mar. 10 -----Mar. 17 .-._—. Contingent liability on bills purchased for foreign correspondents: Feb. 2 4 _ _ - - — Mar. 3 — Mar. 10 Mar. 17 Own Federal reserve notes held by Federal reserve bank: Feb. 24 Mar. 3 — Mar. 10— Mar. 17.. — 74.0 73.2 74. 75.6 72.4 76.3 81.6 81.2 75.1 78.0 78.8 77.8 73.7 73.7 74.3 74.7 81.6 78.7 77.5 79.5 68.4 66.5 64.6 65.3 73.6 71.5 74.0 71.5 77.4 70.2 76.0 77.4 52.1 54.6 55.7 58.0 79.3 75.5 78.6 79.4 58.1 54.4 56.7 66.2 56.9 61.9 54.2 67.9 78.8 73.1 72.7 74.5 82,168 82,408 83,009 78,975 6,360 6,241 22,153 21,648 23,393 22,773 7,853 7,951 7,801 7,354 8,845 8,955 8,786 4,381 4,436 4,352 4,103 3,307 3,348 3,285 3,097 11,325 11,465 11,250 10,608 3.555 3,531 3,329 2,645 2,678 2,628 2,477 3,224 3,264 3,202 3,019 2,893 2,929 2,874 2,709 5,704 5,775 332,007 330, 739 329,211 17,060 19,166 19,664 18,264 145,407 31,174 16,106 16,691 21,792 141,278 31,839 18,672 16,487 20,428 139,329 31,071 17,289 16,087 20,037 140,064 21,494 15,894 19,251 16,618 17,876 17,420 19,648 5,767 5,232 5,037 5,103 2,877 2,573 2,841 2,720 6,292 6,272 6,134 6,168 4,575 4,570 4,779 4,929 47,648 46,346 49,523 48,377 5, 342 FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS [In thousands of dollars] Total Bills discounted: Feb. 24... Mar. 3 Mar. 10 Mar. 17. Bills bought in open market: Feb. 24 Mar. 3 Mar. 10 --Mar. 17 — Certificates of indebtedness: Feb.24..._. Mar. 3 Mar. 10 Mar. 17. Within 15 days 16 to 30 days 31 to 60 days 61 to 90 days 91 days to 6 months 540,083 583,214 502,425 480,615 440,813 465,043 391,088 364,185 25,324 28,917 29,551 30,957 42,022 47,586 43,601 43,340 22,463 30,700 27,087 29,589 7,461 8,355 7,952 8,510 304,128 284,520 257,138 122,574 110,558 111, 474 96,085 59,878 55,568 66,139 70, 533 87,880 84,340 72,552 57,847 29,952 31,508 299 571 28,574 3,844 4,633 4,784 4,099 95,418 94,041 111, 894 213,328 74 18 48 99,013 1,505 24,988 83,379 83,554 99,414 74,362 Over 6 months 2,000 2,613 3,146 4,034 10,460 10,469 12,432 14,965 EEDEEAL RESERVE BULLETIN* APBIL, 1926 FEDERAL RESERVE NOTE&-FEDERAL RESERVE AGENTS* ACCOUNTS, BY WEEKS [In thousands of dollars] Federal reserve notes received from Comptroller: Feb. 24 Mar. 3 _ Mar. 10 . Mar. 17 Federal reserve notes held by Federal reserve agent: Feb. 24 _ _ _. Mar. 3 Mar. 10 Mar. 17 „ Federal reserve notes issued to Federal reserve bank: Feb. 24 _. Mar. 3 . . . „ Mar. 10.. Mar. 17 „..--_..... Collateral held as security for Federal reserve notes issued to Federal reserve bank: Gold and gold certificates— Feb. 24. Mar. 3 .. Mar. 10 .. Mar. 17.. Gold redemption fund— Feb. 24. Mar. 3 . . . . . _ Mar. 10 ...... Mar. 17.. Gold fund, Federal Reserve Board— Feb. 24 Mar. 3 Mar. 10 .__ Mar. 17 Eligible paper— Feb. 24. _ Mar.3.»... _..___-_ Mar. 10.... Mar. 17 Total collateral— Feb. 24... Mar, 3 . . . . . _ .„ Mar. 10Mar. 17.... _ Minneapolis San Francisco Total Boston New York Phila- Clevedelphia land RichSt. mond Atlanta Chicago Louis 2,845,999 2,839,467 2,826,107 2,819,409 230,037 226,670 223,500 219 982 738,655 738,921 737,014 738,212 208,945 205,528 206, 584 209,767 276,769 281,220 278,078 276,702 121,420 227,932 415,837 67,333 87,412 120,711 59,697 291,251 120,493 415,859 66,455 87,690 119,927 59,295 290,517 120,462 226,210 413,566 65,991 87,031 119,164 58,374 290,133 119,365 223,994 413,517 65,801 86,532 119,35f 57,665 288,520 834,630 833,374 825,142 829,901 51,400 50,100 48,800 48,200 226,360 226,360 226,360 226,360 29,640 29,520 35,520 52,440 59,100 56,600 56,150 2,011,369 2,006,093 2,000,965 1,989,508 178,637 176,570 174,700 171,782 512,295 512,561 510,654 511,852 179,.305! 176,888| 177,064' 174,2471 311,246 310,846 310,846 3l0, 748 35,300 186,698 35,300 35,300 186,698 35,300 186,698 1,600] 1,200' 1,200! 1,200 8,780 8,780 8,780 8,780 24,890 24,890 24,890 25, 655 12,655 12, 655 12,655 12,977 100,489 104,140 107,962 102,162 10,050 16,683 13,513 26,735! 11,529 26,617. 8,112i 26,617 11,167! 26,522 12,351 j 12,337 13,428 13,886 11,309 2,021 3,595 2,603 4,007 6,653 4,593' 9,270 7,055 994, 414 968,184 989,900 1,019,492 802,364 835, 592 754, 218 704,667 2, 208, 513 2, 218, 762 2,162,926 2,137,C~" 26,550 26,450 26,140 26,140 24,580 20,223 46,622 45,632 234,937 24,180 20,598 44,960 231,937 23,980 19,968 44,434 230,237 23,580 19,703 224,329 94,870 181,310 178,999 42,753 222,120 94,043 181,260 180,922 42,275 221,478 94,322 181,250 181,629 42,011 220,552 93,225 179,560 42,221 67,189 67,092 67,063 66,829 Kansas Dallas City 48,790 15,687 48,490 15,387 48,290 15,087 48,990 15,037 71,921 71,437 70,874 70,362 55,500 53,500 53,500 55,500 44,010 235,751 43,908 237,017 43,287 42,578 233,020 17,226 17,226 17,226 17,226 11,045 11,045 11,045 10,045 13,052 13,052 13,052 12,867 3,865 3,822 3,822 3,775 1,348 1,470 1,006 1,816 1,019 1,297 1, 638 1,139 3,274 2,490 3,727 2,915 2,772 3,370 2,450 3,240 18,663 18,263 18,038 59,000 86,000 111,389; 170,000 31,500 112,000 125, 644 54,000 96,000 111,389! 170,000 28,500 113,000 125, 645 64,000 116,000 109,389! 170,000 28, 500 113, 000 125, 645 74, 000 166,000 104,389; 170,000 20, 500 105,000 125,645 4, 200 3,200 3,200 3,200 47,000 48,000 48,000 48,000 45,360 42,360 42,860 42,860 5,000 5,000 5,000 6,000 197,321 171,090 164,306 153,898 41,883 51,146 86,040 40,287 49, 831 54,649 119,620 39,011 52, 249 48,033 94,584 34,026 52, 005 56,966 83,442 38,407 12,723 17,249 11, 509 13,908 33,244 37,158 27,884 28,237 21,901 20,344 19,836 17,938 47,911 66,084 61,346 72,070 56,880 54,726 49,277 53,468 73,794 79,598 74,199 75,914 81,878 82,008 74,471 74,012 46,899 45,940 44, 512 44, 404 264,118 255,837 243,915 244,006 91, 855 253, 619 79,464 219,467 211, 632 64,240 148,308 196,205 185,447 175, 719 183, 535 553, 052 528, 782 540,947 527, 528 62,3311 65,393! 58,321! 60,432! 59,424 67,322 71,892 68,714 186, 849| 186,094! 180,077' 178,372! 250,541 259,530 264,558 258,803 100,294 106, 816 108, 242 102,167 182,454 184, 897 182,958 l8i r~ 215, 549 249,087 224, 051 212,862 284 FEDERAL EESEEVE BULOLETIN APRIL, 192© FEDERAL RE3ERVE BANKS—HOLDINGS OP BILLS AND SECURITIES AND EARNINGS THEREON, FEBRUARY, 1926 [In thousands of dollars] ! Total HOLDINGS ON FEB, 28, 1926 Total bills and securities. 1,215,657 Bills discounted for members.... 576, 643 300,947 Bills bought in open market United States securities . . . 327,017 3,150 Other securities 7,900 Foreign loans on gold Bills Discounted Rediscounted bills: Commercial and agricultural paper, n. e. s 168,808 539 Demand and sight drafts 2,000 Trade acceptances, domestic Secured by U. S. Government obligations 1,775 Member banks collateral notes: Secured by U. S. Govern339,395 ment obligations Otherwise secured _ 64,126 576,643 Total discounted bills Bills Bought Bills payable in dollars: Bankers' acceptances based on— 126,837 Imports 92,348 Exports Domestic transactions... 47,670 4,806 D ollar exchange Shipments between or storage of goods in for25, 257 eign countries 2 255 All other Trade acceptances based on 979 imports Bills payable in foreign cur795 rencies _ _ 300,947 Total purchased bills United States Securities 60,142 United States bonds 172,461 Treasury notes 94,414 Certificates of indebtedness 327,017 Total U. S. securities DAILY AVERAGE HOLDINGS DURING FEBRUARY Total bills and securities 1 __ _ 1,176, 328 525,049 Bills discounted. 305, 631 Bills bought United States securities _ 335, 367 7,131 Foreign loans on gold EARNINGS DURING FEBRUARY' 3,430 Total bills and securities 1 _. 1, 609 Bills discounted 833 Bills bought 954 United States securities 24 Foreign loans on gold ANNUAL RATE OF EARNINGS Total bills and securities l 3.80 3.99 Bills discounted 3.55 Bills bought 3.71 United States securities 4.50 Foreign loans on gold Boston New York Philadelphia Cleveland Richmond San St.# Minne- Kansas Dallas FranAtlanta Chicago Louis apolis City cisco 1 100,142 314,302 103,362 103,674 43,811 187,451 60,829 52,315 47,670 67,376 19,670 18, 955 8,061 57,310 19,063 31, 559 3,050 600 750 845 2,165 57,722 42,058 9,802 5,443 72,932 150,195 31, 780 73,625 25,667 32,820 15,169 42,668 63,258 22, 795 16, 215 23,908 31,694 7,739 7,124 16, 578 52,019 5,968 15,919 29,855 96,48$ 27,731 24,270 43,943 277 545 419 316 1,082 340 253 69,868 20,541 15,459 33,460 100 308 2,224 6,945 4,399 101 25 8,899 235 119 27 157 7 29,465 16, 567 11,481 10,053 20,094 114 136 372 309 20,190 74 144 28,925 66 673 9,566 129 42 89 377 256 318 44 322 14,102 154,966 15, 804 37, 217 11,906 32,043 9,470 16,531 4,868 6,517 4,537 41, 656 2,327 11,073 1,663 4,279 1,236 11,619 1,950 455 831 8,937 9,534 43,811 187,451 60,829 52,315 42,058 31,780 73,625 22,795 7,739 20,541 5,968 27,731 26,300 11, 456 6,938 652 25,497 19, 006 9,898 1,583 8,316 6,822 3,589 171 7,745 5,693 3,042 451 3,481 2,728 2,885 40 9,730 9,679 3,953 90 12,382 10,688 6,505 298 6,349 5,020 2,568 731 2,213 2,665 1,299 207 7,165 5,777 1,542 89 6,491 6,425 1,045 157 11,168 6,389 4,406 337 2,279 45 8,858 1 419 772 1,301 64 578 90 2,139 76 2,908 39 1,419 128 503 237 886 1,801 1,813 157 178 979 659 136 47,670 67, 376 19, 670 18,955 9,802 25,667 32,820 16,215 7,124 15, 459 15, 919 24, 270 572 2,238 5,251 1,934 40,943 14, 433 604 3,638 14,821 8,103 18, 655 4,801 1,240 3,067 1,136 964 9,163 5,042 20,190 15,847 •6,631 2,035 13,421 8,452 7,665 6, 415 2,498 8,387 16,947 8,126 7,975 15,748 6,132 473 26,379 17,091 8,061 57, 310 19, 063 31, 559 5,443 15,169 42, 668 23,808 16, 578 33,460 29,855 43, 943 108,148 297, 330 38, 775 180,152 59, 975 59, 078 8,871 56,176 1,924 527 98, 385 56,248 18,379 20, 040 668 91, 998 42, 669 16, 459 32,103 767 53, 746 38, 287 8,883 6,169 377 74,795 144, 341 26, 617 66, 948 32, 271 31,182 15, 618 45, 228 983 289 62,134 20, 773 16,893 24 ; 140 328 30,887 6,369 7,224 17,060 234 66,678 17,063 14, 908 34,323 284 52,948 5,841 16, 361 30, 497 249 94,938 25,307 24,018 45,112 501 877 549 162 159 7 293 173 50 58 2 272 131 46 93 2 160 118 25 16 1 214 82 87 44 1 • 427 206 85 133 3 179. 64 46 68 1 92 20 20 51 1 192 52 41 98 1 150 18 44 87 1 269 77 66 124 3.85 3.98 3.58 3.69 . 4.50 3.87 3.99 3. 51 3.76 4.50 3.86 4.00 3.62 3.79 4.50 3.87 4.00 3.63 3.37 4.50 3.72 4.00 3.52 3.65 4.50 3.86 4.00 3.56 3.83 4.50 3.75 4. GO 3.55 3.67 4.50 3.87 4.00 3.58 3.93 4.50 3.76 4.00 3.55 3.71 4.50 3.70 4.00 3.53 3.71 4.50 3.70 3.99 3.58 3.60 4.50 305 119 161 23 2 3.68 4.00 3.51 3.31 4.50 2 i Figures include Federal intermediate credit bank debentures as follows: Philadelphia, average daily holdings $3,050,000; earnings, $10,288; annual rate of earnings, 4.39 per cent; and Kansas City, average daily holdings, $!C0,000; earnings, $299; annual rate of earnings, 3.89 per cent. 286 FEDERAL BESEBVE BULLETIN APRIL, 1926 REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS [In thousands of dollars] Federal reserve district Total Boston New York Phila- Clevedelphia land Bichmond Atlanta Chicago St. Minne- Kansas Dallas Louis apolis City Number of reporting banks: Feb. 17 „ „___„_ 716 36 100 Feb. 24 716 99 100 Mar. 3 712 100 Mar. 10_._, 712 100 Loans and discounts, gross; Secured by U. S. Government obligations— Feb. 17. 21,379 5,192 163,973 7,605 22,443 11,980 58,005 10,512 9,006 Feb. 24 .... 21,469 5,150 167,375 59,119 10,326 7,804 21,748 12,066 21,599 Mar.3.._._ 9,153 170,506 58,212 10,542 4,907 21,845 13,066 21,342 Mar. 10—.9,120 57,300 10,751 7,787 23,722 13,016 166,140 4,749 Secured by stocks and bonds— Feb. 17 „. 5,446,935 342,9812,378,804 405,584 514,560 145,429 98,720 823,502 209,054 Feb. 24 . 5,427,270 348,035 2,356,384 401,519 523,971 146,832 96,177 819,894 201,552 Mar. 3 5,434,559 346,259 2,334,304 402,099 529,762 146,886 97,550 832,136 205,107 5,313,275 332,836 2,235,002 398,347 527,777 147,554 Mar. 10 830,097 202,255 All other loans and discounts— Feb. 17 . . . . . . . 8,350,053 649,764 2,592,895 363,358 752,671 370,227 417,',6731,241,918 313,296 Feb. 24 8,335,753 646,666 2,608,521 360,461 749,187 368,362 417,r,3181. 224,817 315,159 Mar. 3... 8,404,391 646,005 2,656,419 362,266 753,157 367,815 418,6091, 235,780 313,884 Mar. io_— . 8,435,187 648,024 2,688,850 757,951 418; 287 i; 236,832 315,284 Total loans and discounts— Feb. 17 13,960,961 1,001, 742 5,029, 5,029,704 779,454 1,, 288,610 520,848 523, 534,330 1,001,742 Feb. 24 . 13,930,398 1,003,707 1,003,707 5,024, 5,024,024 772,306 1,294,627 520,344 521,., 299 ! , 066,459 528,777 2, Mar. 3 14,009,456 1,001,417 5,048,935 774,907 1, 304,518 519,608 524,567 2,089, 1,089,761 532,057 Mar. 10..... __ 13,914,602 989,980 4,981,152 774,3961r 307,070 524,742f2,090,651 — 530,555 XJ. S. pre-waKjbonds: Feb. 17... 223,529 39,312 9,486 25,274 14,882 20,528 12,957 Feb. 24 223,718 9,710 39,208 9,286 33,294 25,394 14,880 21,145 12,957 Mar. 3 225,068 9,710 39,793 9,478 33,303 25,194 14,869 21,452 13,157 Mar. 10 225,120 9,762 39,845 9,486 33,272 .25,194 14,837 21,452 13,157 U. S. Liberty bonds: Feb. 17 . . . ..._ 1,400,162 86,752 31,503 15,253 174,093 22,786 50,340 Feb. 24 1,387,509 602,205 49,522 163,722 30,867 15,153 178,481 22,788 Mar. 3. 1,383,205 598, 262 49,578 163,307 31,693! 15,272 178,907 22,953 Mar. 10 . 87,496 591,610 49,453 162,765 31,944! 15,326 186,075 23,103 1,395,781 U . S . Treasury bonds: 17,784 209,712 18,032 Feb. 1 7 . . . 451,073 35,528 6,802 5,769 54,289 13,079 Feb. 24__ 17,657 212,235 16,459 448,915 35,588 6,402 5,770 54,063 13,078 Mar. 3 449,537 17,730 35,654 18,333 5,29l| 5,770 53,592 13,152 Mar. 10_.__. 455,534 17,800 221,427 16,206 35,731 5,2911 5,771 51,242 13,169 U. S. Treasury notes: Feb. 17 ... 3,996 158,604 24,635 1,766! 2,034 59,823 7,333 321,386 7,343 Feb. 24..._ 4,296 157,773 24,723 321,524 59,093 7,357 7,120 1,765 2,035 4,251 156,396 Mar. 3 319,087 24,974 59,455 7,378 1,765 2,036 295,864 4,302 140,272 25,520 Mar. 10 7,235 55,865 6,872 1,765 2,036 U. S. Treasury certificates: 17,770 144,791 19,368 2,6 5,229 10,059 4,253 Feb. 17-. 42,042 6,793 16,813 139,267 40,950 8,263 19,597; 4,980 Feb. 24..._ 9,091 3,949 16,563 141,976 45,803 5,900 18,725: 2,023 4,r~ Mar. 3 9,338 4,064 39,689 5,300 16,563 123,728 12,321! 2,023 2,690 Mar. 10 3,565 Other bonds, stocks, and securities: 2,924,382 212,258 1, 110,240 252,103 341,491! 63,097 52,155 434,712 107,750 Feb. 17 2,971,164- 2 1 6 5,4041 , ""• ,156,181 252,360 339,727 62,195 51,355 436,933 108,309 Feb. 24 2,984,158 215,>, 872 ij,162,176 252,397 343,094j 60,165 52,303 441,124 107,776 Mar. 3 . . . . 3,010,377 220,), 056 1, 182,128 250,342 346,3531 60,764 52,645 440,280 108,250 Mar. 10 Total investments: 5,465,323 348,244 2,168,000 344,097 618,081! 131,138 95,322 753,504 168,158 Feb. 17..5,492,097 351,489 2,208,552 343,010 616,651 129,319 94,173 758,806 168,438 Feb. 24 5,503,031 350,92512,219,350 342,672 619,057 126,131 95,217 763,868 Mar. 3 5,506,404 355,979 2,214,971 338,022 615,962 126,981 93,305 764,340 168,116 Mar. 10 Total loans and investments: 19,426,284 1,349,986 7,197,7941,123,5511,906,691 651,986 619,320 2,841,367 702,488 Feb. 17 19,422,4^5 1,355,196 7,232,576 1,115,316 1,911,278 649, 663 615,472 2,825,265 697,215 Feb. 24......_ 19,512,487 1,352,342 7,268,285 1,117,579 1,923,575 645,739 619,784 2,853,629 700,537 Mar.3__. Mar. 10 19,421,006 1,345,959 7,196,123 1,112,418 1,923,032 647,864. 618,047 2,854,991 698,671 Beserve balances with Federal reserve bank: Feb. 17 1,684,457 95,040 779,178 80,476 127,095 41,796 44, 619 233,210 47,006 Feb. 24 1,636,439 94,461 755,906 80,556 116,947 39,205 43,532 233,593 49,020 96,699 751,787 81,381 123,507 44,101 43,825 242,354 50,940 Mar. 3 ...I.... 1,650,520 1,644,1291 757,067 78,896 123,684 41,423 48,663 238,915 49,871 Mar. 10 San Francisco 66 2,436 2,450 2,502 2,491 4,026 4,027 4,053 4,066! 69,631 70,692 71,561 70,402 116,183 115,509 114,811 112,247 3,407 3,144 3,146 3,138 7,991 11,066 13,073 865g 79,046 263,441 80,686 266,019 81,149 272,935 83,238 274,852 178,506 323,138 238,977 178,962 323,741 234,954 231,593 181,634 179,270 320,303 231,445 907,630 907s 605 912,770 905,063 250,573 252,104 255,697 252,163 443,347 443,277 443,323 436,616 7,071 7,071 7,071 7,071 8,783 8,783 8,853 17,439 17,239 17,439 17,439 24,750 24,751 24,74$ 24,752 26,950 57,472 26,675 57,709 27,029 58,908 27,281 59,795 20,640 21,672 21,726 21,900 142,497 132,106 128,771 139,03$ 14,904 17,993 14,904 17,924 14,654 1.7,998 14,654 17,901 4,610 4,699 4,641 4,690 52,571 50,136 45,802 51,652 15,490 15,400 15,415 13,716 4,682 15,733 16,488 14,405 4,282 4,273 19,986 21,647 19,661 19.60S 6,923 6,822 6,822 4,977 4,743 4,165 4,237 3,384 4,444 4,368 4,458 17,497 19,166 19,332 42,314 42,382 42,761 42,925 75,827 23,379 76,762 23,370 79,271 22,836 76,832 22,624 209,056 205,186204,383; 207,178 113,652 113,254 113,752 110,624 180,512 75,436 181,076 76,006 185,755 75,292 181,170 75,384 451,323 442,532 461,550 364,225 365,358 369,449 362,787 623,859 , 648,151 624,353 394,790 ,636,01$ 629,078 391,180 , 641,310 617,786 393,205 , 650,123. 27,288 27,995 26,573 23,591 33,573 118,988 53,433 30,681 111, 110 53,760 107,124 50, 111 29,707! 106,175 321, , 179,062 L, 430 . 1, 318,784 li,184,690 315,888 *.,198,77$ 317,821 1,188,573 285 FEDERAL RESERVE BULLETIN" APBIL* 1926 FEDERAL RESERVE BANKS—VOLUME OF DISCOUNT AND OPEN MARKET OPERATIONS DURING FEBRUARY, 1926 [Amounts in thousands of dollars] Total Boston New York Phila- Cleve- Rich- Atdelphia land mond lanta Chicago Min- KanSan St. nesas Dallas FranLouis apolis Cisco City . . . _. 3,387,382 241,200 1,909, 368234,466 152,199 179,376 60,142 236,950 89,205 19,718 124,852 13,078 126,828 Total Volume of Operations Bills discounted for member banks.. 3,081,457 205,643 1,746,766 223,971 139,674 173,699 53,829 205,972 83,082 15,283 118,490 Bills bought: 245, 482 33,104 124,932 7,169 ,10,435 5,550 5,484 21,344 4,666 4,357 5,695 In openKmarket. _ 758 572 13,615 3,087 876 18,908 From other Federal Reserve banks 1,075 731 7,455 1,044 35,358 1,734 21,458 d . S. securities bought in open market 95 127 78 719 2, 597 239 257 98 1,303 413 6,177 Foreignloans on gold ______ .._..— 6,789 108,259 4,346 18,400 1,859 84 2 167 Bills Discounted Eediscounted bills: Commercial, agricultural, and livestock 879 2,272 1,829 » 7,172 122,250 1, 433 10,147 6,724 4,911 8,894 119, 352 33,352 25,285 paper, n. e. s_ 280 192 1 213 128 613 Demand and sight drafts 44 114 115 90 34 48 229 18 76 Trade acceptances 768 Secured by IT. S. Government obliga153 147 151 28 57 88 448 1,072 tions Member bank collateral notes: Secured by U. S. Government obliga2,469,255 51,448 1,643,793 149, 214 84,320 117,400 21, 592 158,857 50, 431 10,124 111, 378 2,911 67,787 tions Secured by eligible paper 8 „ . . 486,899 152, 671 92,750 67, 897 50,063 47,138 12,495 13,645 6,287 4,280 4,840 1,769 33,064 Total bills discounted.—.... 3,081,457 205,643 1, 746, 766223,971 139,674 173,699 53, 829 205,972 83,082 15,283 118,490 - Average rate (365-day basis), per cent . . . . . . . Average maturity (in days): Member bank collateral notes Rediscounted bills „ „ _ . . « _, Number of member banks on'Feb. 2 8 — . Number of member banks accommodated during month _ . . . . Per cent accommodated . .. 6,789 108,259 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4 00 4.00 4,00 4.00 5.08 55.81 9,437 6.38 42.86 418 3.66 45.77 883 7.19 49.89 753 8.04 54.27 861 2.93 61.73 599 8.76 54.61 492 12.24 59.36 1,389 8.71 50.21 621 11.60 89.49 822 3.06 89.75 1,020 13.41 91.39 849 7.43 55.62 730 2,659 28.2 162 38.8 368 41.7 374 49.7 263 30.5 248 41.4 140 28.4 473 34.1 171 .27.5 68 8.3 149 14.6 88 10.4 155 21.2 68,162 8,913 11,979 1,865 5,481 2,583 3,741 9,466 2,088 2,247 3,007 1,588 5,204 136,885 17,241 50,435 6,950 108, 502 6,451 5,304 4,954 2,967 1,743 4,922 6,956 2,578 2,110 2,688 2,758 8,220 4,976 245,482 33,104 124, 932 7,169 10,435 5,550 5,484 21,344 4,666 4,357 5,695 4,346 18,400 6,063 3,501 800 1,867 2,735 656 2,753 1,797 84 2,568 1,678 94 2,840 2,354 405 850 710 101 2,177 5,377 1,725 12,135 362 - 7 4 4 47 ^ 30 71 203 89 8, 525 3,134 7,511 1,464 68 4,497 17 96 35 3.65 52.98 3.68 53.32 3.68 47.86 3.70 54.28 3.62 43.63 3.64 46.09 3.68 54.47 3.68 56.39 3.67 53.13 5,407 4,281 4,413 426 1,895 1,459 1,423 750 171 1,240 1,158 1,227 55 2,633 1,520 750 39 1,754 1,086 638 126 4,864 2,096 862 677 747 6 742 1,120 5,484 16,422 4,666 4,357 5,695 Bills Bought In Open Market f r o m member banks _.„_„___„._„._„„_ From nonmember banks, banking corporations, etc: With resale agreement Allother......—..... Total bills bought „ _. Hates charged: V/% per cent.. „ „.„ . . . . 3/^ per cent 3% per cent. 3J^ per cent 4 oer cent 4^r per cent. - _ __«, „ . _ . 4|f per cent Average rate (365-day basis), per cent „ Average maturity (in days) * Class of bills: Bills payable in dollars *— Bankers' acceptances based^on— Imports.. ,__„ „ _ Exports Domestic transactions Dollar exchange.... . . Shipment between, or storage of goods in foreign countries AlFother Trade acceptances, foreign Bills payable in foreign currencies....... Total 184,340 23,488 121,131 4,417 49,982 9,283 3,163 2,636 8,213 328 116 59 995 5 1,919 546 15 15 18 18 3.64 3.63 3.57 3.63 49.39 58.62 34.14 42.03 39, 567 27,055 26,356 1,622 8,436 2,152 3,750 127 4,051 5,152 5,062 302 2,511 2,124 1,872 168 3,999 3,095 2,273 137 2,075 1,719 1,256 1,138 1,249 2,335 12, 771 407 546 273 1,398 3,278 6 546 33 494 691 500 387 395 108, 597 15,863 18,430 71 240 7,169 10,435 5,550 4,346 10,180 U. S. Securities Bought In Open Market United States bonds Treasury notes Certificates of indebtedness _ _ _ Total 1 3 3 4 1,315 22,093 11,950 1, 518 216 15,023 6,435 1,075 35,358 1,734 21,458 . . . . . . . 1,075 369 362 Includes $300,000 discounted for the Federal Intermediate Credit Bank of Columbia, S. C. Includes $650,000 discounted for the Federal Intermediate Credit Bank of Berkeley, Calif. Includes bills taken under a resale contract. Exclusive of acceptances bought under a resale contract. 731 10 934 4,640 2,815 1,034 550 375 7,455 1,044 1,859 2 2 287 FEDERAL RESERVE BULLETIN APRIL* 1926 PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS—Continiied [In thousands of dollars] Federal reserve district Total Cash in vault: Feb. 17 277,176 Feb. 24 291,163 Mar. 3 278,250 Mar. 10 281,171 Net demand deposits: Feb., 17 ....__ 13,017,376 Feb.. 24 ..... 12,935,088 13,007,657 Mar. 3 M a r . 10 12,894,419 T i m e deposits: 5,421,383 Feb. 17 5,437,358 Feb. 2 4 . . . . 5,446,235 Mar. 3 5,454,576 Mar. 10 Government deposits: 201,291 Feb. 17 . 201,018 Feb. 24.. Mar. 3 | 200,982 Mar. 10~ " 198,201 Bills payable and rediscounts with Federal reserve bank: Secured b y United States Government obligations— 229,213 Feb.-17... 223,943 Feb. 24 237,278 Mar. 3 . 183,504 Mar. 10 . All other— 138,511 Feb. 17 138,718 Feb. 24 166,437 Mar. 3 140,817 M a r . 10 Phila- Clevedelphia land New York Boston Richmond Minne- Kansas Dallas St. Chicago Louis apolis City Francisco 48,129 51,613 49,243 48,516 7,581 7,641 7,591 7S583 5,573 6,255 377,326 374,571 375,054 370,718 369,0851,754,482 362,8761,750,013 361,1431,747,497 367,0181,769,654 423,354 418,944 419,471 419,561 228,848 230,445 229,333 228,184 499,398 494,900 496,034 481,342 282,525 804,444 276,147 776/102 277,479 740,491 276,777 752,142 762,319 764,720 767,819 767,631 204,286 206,673 204,123 206,604 215,564 1,037,243 217,113 1,034,912 217,1601,036,081 216,5251,035,882 221,662 220,518 218,122 219,074 113,134 113,110 111, 971 112,370 144,046 145,752 148,365 149,168 99,157 100,769 99,626 99,206 807,380 812,258 830,142 826,205 18,901 18,769 18,898 18,896 19,765 19,765 19,765 19,765 6,125 6,054 6,029 3,087 10,006 10,006 9,843 10,006 25,659 25,659 25,659 25,659 5,864 5,864 5,864 5,864 3,0651 3,0651 3,065! 3,065 1,851 1,781 1,804 1,804 7,565 7,565 7,565 7,565 26,265 26,265 26,265 26,265 147,603 139,005 112,920 96,834 9,176 11,406 9,801 8,241 10,442 12,252 17,345 13,768 1,829 6,739 7,279 5,452 3,204 6,319 3,714 26,955 21,415 47,460 32,957 6,120 4,910 5,255 4,256 4,450 7,240 3,300 8,600 7,600 10,875 1,500 3,367 544 294 594 464 9f560 7,293 9,139 11,186 23,799 30,016 30,210 29,886 14,221 11,406 11,714 10,329 16,144 12,379 13,972 20s,703 17,828 9,760 14,659 16,649 15,151 11,268 17,274 16,102 14,762 13,701 16,283 10,884 8,673 9,835 11,493 7,406 1,719 1,594 3,624 3,096 3,277 3,570 4,831 3,647 6,162 10, 870 25,154 18,994 30,009 33,366 29,024 30,208 13,491 14,049 13,408 13,969 894,006 5,604,464 879,473 5,605,929 "",434 5,691,243 887,910 5,584,291 757,6741,021,770 751,0591,014,629 757,1991,017,279 748,9531,007,869 395,4761,198,207 % 201,016 398,994 1., 197,925 398,150 1., 208,561 222,903 221,631 215,907 215,200 19,598 19,598 19,598 19,598 56,627 56,627 56,627 56,627 2,090 2,465 2,691 1,765 16,775 24,119 16,638 3,121 79,485 82,902 80,540 81,666 20,246 20,999 20,487 20,476 Atlanta 17,088 16,662 15,834 16,025 12,309 12,081 11,349 11,361 5,754 12,520 9,890 13,441 12,292 11,815 12,900 12,029 20,855 21,466 20,968 20,684 REPORTING M E M B E R BANKS IN 12 FEDERAL RESERVE BANK CITIES—BANKERS> BALANCES [In thousands of dollars] Federal reserve bank city Total (12 cities) Due to banks: Feb. 17 Feb. 24 Mar 3 Mar. 10 . Due from banks: Feb. 17.. Feb. 24 . Mar. 3 Mar. 10 Boston New York Philadelphia Cleveland Richmond San Minne- Kansas AtSt. lanta Chicago Louis apolis City Dallas Francisco 2,255,823 2,224,767 2,364,360 2,239,465 128,261 122,245 130,569 127,182 1,077,668 1,063,108 1,165,209 1,088,802 180,619 176,610 189,522 169,951 48,244 47,764 47,724 45,185 37,270 38,190 35,708 35,132 20,786 19,275 19,800 21,752 374,270 384,405 403,878 385,271 91,919 87,895 84,199 89,594 54,692 54,635 56,337 54,998 103,198 99,331 100,463 96,948 31,466 31,576 29,147 27,777 107,430 101,733 101,804 96,873 588,816 563,919 613,751 549,213 33,827 36,289 41,146 30,389 99,554 93,391 108,845 88,802 64,259 62,800 71,542 60,974 27,962 23,825 25,645 28, 906 19,211 16,923 18,156 16,322 13,592 14,143 14,729 14,686 161,187 152,583 163,705 147,037 30,447 29,820 28,291 28,171 16,750 17,823 21,409 20,203 42,461 39,102 41,753 40,306 27,033 23,831 28,477 22,879 52,533 53,389 50,053 50,538 LOANS TO BROKERS AND DEALERS, SECURED BY STOCKS AND BONDS, MADE BY REPORTING MEMBER BANKS IN NEW YORK CITY [In thousands of dollars] Demand and time loans Feb. Feb. Mar. Mar. 1926 17 24 3 10-._._— Demand loans Total For own account For For account of account out-ofof town others banks 3,138,724 3,109,331 3,048,392 2,885,609 1,158,905 1,149,391 1,125,071 1,021,191 1,354,170 1,342,665 1,321,265 1,265,957 625,649 617,275 602,056 598,461 Total 2,160,138 2,139,272 2,067,948 1,932,222 Time loans For For of For own account out-of- account of account town others banks 665,474 667,788 641,676 549,598 945,399 925,239 895,741 853,583 549,265 546,245 530,531 529,041 Total 978,586 970,059 980,444 953,387 For For of For own account out-of- account of account town others banks 493,431 481,603 483,395 471,593 408,771 417,426 425,524 412,374 76,384 71,030 71,525 69,420 288 FEDERAL BESEEVE BULLETIN REPORTING MEMBER A F E I L , 1926 BANKS IN NEW YORK CITY AND CHICAGO—PRINCIPAL WEEKS RESOURCES AND LIABILITIES, BY [In thousands of dollars] New York City Feb. 17 Feb. 24 City of Chicago Mar. 3 Mar. 10 Feb. 17 Mar. 3 Feb. 24 Mar. 10 61 61 60 60 46 46 46 46 53,390 2,103,820 2,271,999 54,458 2,087,335 2,284,109 53,548 2,060,926 2,333,091 52,574 1,959,165 2,368,070 15,913 620,505 684,757 14, 504 615,730 674,695 14,466 627,689 677,056 15,712 623,303 678,587 —_—„__ 4,429,209 4,425,902 4,447,565 4,379,809 1,321,175 1,304,929 1,319,211 1,317,602 United States pre-war bonds United States Liberty bonds United States Treasury bonds.-...„_„„.,.„_.,_„_ United States Treasury notes.-..,.....-.„_-...-_.» United States Treasury certificates........... Other bonds, stocks, and s e c u r i t i e s . . . . . . . . . . . " 29,571 524,318 192,414 152,255 40,240 812,146 29,568 519,821 194,937 151,425 39,223 857, 663 30,153 516,537 200,192 150,299 44,076 862,478 30,205 509,015 204,676 134,175 39,002 881S 709 4,884 102,340 17,161 46,449 1,963 198,286 5,501 106,789 17,123 45,405 1,500 200,513 5,808 108,038 17,297 45, 766 1,501 204,093 5,808 114,750 16,392 43,118 1,224 202,705 Mnrnber of reporting banks Loans and discounts* gross: Secured by United States Government obligations __ . . _..—___._.__. Secured by stocks and bonds.-____._...__ All other loans and discounts __..,., „_.„„.,__ Total loans and discounts , Total investments 1,750,944 1,792S 637 1,803,735 1,798,782 371,083 376,831 382, 503 383,997 Total loans and i n v e s t m e n t s . . . . . . . . . . . . 6,180,153 6,218, 539 6,251,300 6,178,591 1,692,258 1,681,760 1,701,714 1,701,599 Reserve balances with Federal reserve bank.. Gash in vault Net demand deposits Time deposits. . . _ . . . . . . . . _ . . . . . . . „ . . ..... Government deposits 722,107 64,023 5,034,377 799,987 49,995 697. 885 66J 671 5,045, 236 802,093 49,995 692,303 65,206 5,124,217 796,210 49,995 699,488 65,967 5,026,017 804,450 49,995 160,627 21,009 1,149,963 618,788 12,947 162,017 22,477 1,152,432 516,494 12,947 170,316 21,694 1,152,200 §16,592 12,947 167,055 21,186 1,169,398 514,177 12,947 Bills payable and rediscounts with Federal reserve bank: Secured by United States Government obligations All other . —. 125,892 19,304 115,532 26,394 93,332 26,004 77,287 26,252 11,780 9,758 6,415 3,719 29,610 10,405 16,307 349 Total borrowings from Federal reserve b a n k __ . ' *... „„,_. . . _ . . . . . . . 145,196 141,926 119,336 103,539 21,538 10,134 40,015 16,656 ALL M E M B E R B A N K S — D E P O S I T S , BY F E D E R A L R E S E R V E D I S T R I C T A N D BY S I Z E O F CITY [In thousands of dollars] Net demand deposits Federal reserve district Boston. -„._... New York..,,, Philadelphia Cleveland.. Richmond..._ _-__._. Atlanta .. Chicago ._.._..__. St. L o u i s . —. Minneapolis ........ Kansas C i t y . . . . . . . . . . . . Dallas San F r a n c i s c o . . . . . . . . . . Total..... Banks in pities a n d towns having a population of— Less t h a n 5,000..... 5,000 t o 14,999....... 15,000 to 99,999..—. 100,000 a n d over 1925 1926 1925 Nov. 25 Dec. 23 J a n . 27 F e b . 24 1,395.241 6,408,228 1,181,937 1,475,121 1,390.238 6,496,179 1,183,178 1,467,169 610,641 825,332 2,429,093 757,463 466,046 870,557 668,749 1,335,362 1,374,330 6,455,855 1,190,601 1,495,667 613,437 760,379 2,429,995 760,201 452,173 862,059 659,813 11,311,604 1,350,075 6,371,738 1,170,180 1,607,999 620,320 756,985 2,469,183 745,970 457,021 862,546 654,003 1,294,977 769,608 2,449,631 728,045 466,660 847,480 674,507 1,339,345 Time deposits 1925 1926 Feb. 25 Nov. 25 Dec. 23 1,311,144 6,289,886 1,134, 689 1,482,289 588,437 613,945 2,414,286 729,176 482,015 871, 625 680,428 1,289,740 794,772 2,183,450 843,884 1,342,997 516,547 431,355 1,877,294 459,517 433,519 313,791 166,821 1,328,098 795,819 2,180,939 F e b . 25 1,326,753 509,524 460,317 1,883,019 447,233 434,857 306,105 163,290 1,301,722 718,442 2,063,112 789,945 1,292,515 494,941 374,021 1,743,459 438,871 436,459 302,798 166,895 1,184,202 •10,802,607 10,892,885 10,005,660 18,500,007 118,366,114 |18,26O,997 17,887,660 10,692,045 10,653,414 1,773,720 1,158,411 2,407,394 13,023,241 1,813,189 1,720,826 1,724,373 1,160,017 1,158,992 1,157,660 2,405,814 I 2,399,216 2,419,650 13,107,151 113,080,482 12,979,748 1,681,531 1,087,366 2,211,432 12,907,331 1,734,527 1,118,658 2,149,836 5,689,024 1,750,155 1,113,508 2,136,370 5,653,381 F e b . 24 813,127 2,251,868" 876,312 1,354,620 1,864,418 513,875 516,626 438,920 446,715 1,883,018 1,883,284 466,253 467,704 441,449 440,772 314,084 320,650 167,330 171,024 L 1,322,578 1,340,365 18,362,766 * Revised figures. J a n 27 1925 801,024 2,230,372 1,761,695 1,129,972 2,169,045 15,741,895 1,774,543 1,143,679 2,181,037 5,793,706 1,678,232 1,072,914 2.021,190 5,233,324 289 FEDERAL RESERVE BULLETIN A P B I L , 192@ ALL STOCK BANKS IN THE UNITED STATES—CONDITION ON DECEMBER 31, 1925 Consolidated figures showing the condition ofiall banks in the United States^ other than mutual savings banks and private banks not under State supervision^ as of December 31, 1925, are given in the accompanying tables. Loans and discounts on this date aggregated $31,023,000,000, an increase of $720,000,000 over the September 28 total and of $2,780,000,000 since December 31, 1924. Investments show an increase of $3,000,000 since ' September 28, 1925, and of $198,000,000 for the year. Total deposits, exclusive of bank deposits, amounted- to $42,135,000,000 on December 31,, or $1,104,000,000 more than on September 28 and $3,QG9,G0G,G00iabove the total reported a year ago. Rediscounts and bills' payable increased $31,000,000 since September 28, 1925, and $378,000,000 since December 31, 1924. The accompanying table shows in summary form the amounts of loans, investments and deposits of all stock banks in the United States for report dates since December, 1924, and for June since 1920, with figures for member • banks and for nonmember banks, given separately. There are also presented on this and subsequent pages tables giving the principal resources and liabilities of these banks, , arranged by Federal reserve districts and by States. A table is also included giving the principal resources of all State banks and trust companies, by States, ALL STOCK BANKS IN THE UNITED STATES 1 -CONDITION ON DATES SPECIFIED 2 f Amounts in millions of dollars! Number of reporting banks All banks: June, 1920.. 28,715 June, 1921 29,477 June, 1922.-. 29,092 June, 1923.. 29,342 June, 1924 28,451 December, 1924 28,266 April, 1 9 2 5 — . . — 28,073 June, 1925— — 27,921 September, 1925 27,895 December, 1925 27S 705. Member banks: 9,399 • June, 1920-.— June, 1921---——— 9,745 June, 1 9 2 2 — . . — 9,892 June, 1923..._ _ 9,856 June, 1924. _______„ 9,650 December, 1924.— 9,587 April, 1925..— 9,531 June, 1925 — 9,538 September, 1925 9,539 December, 1 9 2 5 — 9,489 Nonmember banks: June, 1920-.— — 19,316 June, 1921 19,732 June, 1922 . . . 19,200 June, 1 9 2 3 — — — 19,486 June, 1924... 18,801 December, 1924 18,679 April, 1925. . 18,542 June, 1925.-.. 18,383 September, 1925 18,356 December, 1925 18,216 Total deposits, exclusive Invest- of bank ments deposits .boans ana investments Total Loans 36,813 34,318 34,166 37,359 38,407 40,202 40.813 41,561 42,457 43,180 28,177 8,636 25,857 8,461 24,647 9,519 26,793 " 10,566 27,222 11,185 28,243 11,959 28,775 12,038 29,464 12,097 30,303 12,154 31/023 12,157 25,945 24,311 24,358 26, 675 27,262 29,027 29,285 29, 702 30,369 31,200 19,784 18,206 17,296 18,880 19,284 20,182 20,390 20,814 21,450 22,276 10,868 10/007 9,808 10, 684 11,145 11,175 11,528 11,859 12,088 11,980 8,393 7,651 7,351 7,913 7,958 8,061 8,385 8,650 8,853 8,747 32,642 31,134 31,944 34, 512 36,841 39,066 39,112 40, 591 41,031 42,135 6,161 21,887 6,105 • 21,612 7,062 22,366 7,795 23,837 7,998 25,675 8,845 27,814 8,895 27,145 8,888 28,403 8,919 28,172 8,924 30,008 2,475 2,356 2,457 2,771 3,187 3,114 •3,143 3,209 3,235 3,233 10,755 9,522 9,578 10,675 11,166 11,252 11,967 12,188 12,859 12,127 * Includes all banks in the United States except (1) a certain number of nonreporting private banks, not under State supervision, and (2) all mutual savings banks, figures for which are available only for June calls, Three mutual savings banks in Ohio, however, and one in California, are included because the figures for these banks are included in the totals reported for all State banks by the State authorities and are not2 available separately except for June calls. Or dates nearest thereto for which figures are available. ALL STOCK BANKS 1—PRINCIPAL RESOURCES AND LIABILITIES, BY FEDERAL RESERVE DISTRICTS, DECEMBER 31, 1925 8 [Amounts in thousands of dollars] Federal reserve district § Number of reporting banks Boston ._._ New York Philadelphia Cleveland-.—— -.. Richmond.—... ." Atlanta.... Chicago... _.._ St. Louis.. . Minneapolis.._„ Kansas City.—..... Dallas———— .. San Francisco..—.— 677 1,356 1,277 1,954 2,036 1,928 5,153 3,101 3,050 3,857 1,706 1,610 Total, Dec 31,1925.. Total, Sept. 28,1925 27,705 27,895 Loans and discounts, including overdrafts 2,160,683 7, 586, 759 2,279,569 2,955,730 1,807,229 1,650,189 4,870,979 1,561,311 1,065,048 1,430,125 855,910 2,799,405 31,022,937 30,302,700 Investments KedisTotal deposTotal loans its, exclusive counts and and bills of bank investments payable 901,843 3,263,464 1,137,556 1,368,437 429,845 350,029 2,110,945 491,396 443,981 428,774 190,097 1,040,711 3,062, 526 10,850,223 3,417,125 4, 324,167 2, 237,074 2,000, 218 6,981,924 2,052, 707 1, 509,029 1,858,899 1,046,007 3,840,116 2,893,919 10, 548,981 3,083,308 4,043,388 2,063,610 2,107,257 6,831,400 2,018,411 1,572,349 1,957,883 1,059,425 3,954,660 102,894 357,016 94,937 102,645 12,157,078 12,154,379 43,180,015 42,457,079 42,134,591 41,031,329 1,102, 524 1,071,873 52,148 154,620 50,155 15,566 30,919 12,984 i Includes all banks in the United States except (1), a certain number of nonreporting private banks, not under State supervision, and (2) all mutual savings banks, figures for which are available only for June calls. Three mutual savings banks in Ohio, however, and one in California, are included because the figures for these banks are included in the totals reported for all State banks by the State authorities and are not available separately except for June calls. 8 Or dates nearest thereto for which figures are available. 8 Figures for State banks and trust companies of Indiana, Michigan, Kentucky, Tennessee, and Missouri, were not reported by Federal reserve districts and accordingly were prorated on the basis of such data as were available. * Revised figures. 290, FEDERAL RESERVE BUHLETIN A P R I L , 192 & ALL STOCK BANKS i—PRINCIPAL RESOURCES AND LIABILITIES ON S E P T E M B E R 28 AND DECEMBER 31, 1925 2 [Amounts in thousands of dollars] Number of reporting banks Loans and discounts, including overdrafts Investments Total loans and investments Total deposits, exclusive of bank Rediscounts and bills payable State Sep- Decem- September tember ber Maine.-_. New HampshireVermont._. Massachusetts Rhode Island Connecticut 112 249 31 150 New York...._. New Jersey Delaware Pennsylvania... Ohio ._-._. 985 486 45 District of Columbia. Maryland _ Virginia West Virginia North Carolina South Carolina 44 229 521 345 587 373 Georgia Florida Alabama.._ Mississippi. 322 354 338 Indiana.... Illinois.... Michigan.. Wisconsin. Iowa. „_„.,_ 710 983 1,548 Decem- September ber 154, 759 149,450 62,040 89,635 89,606 248 1,405,687 1,434,049 30 156,591 184,942 152 287,019 294,588 496 45 1,645 1,095 109,516 41,235 396,332 155,298 205,148 December September 264,275 106, 899 41,609 130,841 422,890 1,802, 019 140,845 311,889 207,226 492,167 110,190 December September December 7,446 2,130 2,851 56,761 304 6,117 4,609 9, 084,057 1, 707, 099 84, 839 4,153,498 2,303,707 286,871 36,512 695 98, 777 58,974 326,692 43,940 848 98,654 77,512 259,640 244,407 244,011 93,117 118,447 119,599 1,676,553 1,750,599 325,787 298,002 312,318 501,814 461,284 489,331 131,244 ',221 2, 739,726 2,684,810 9, 068, 854 9,352,031 8,978,584 6,329,128 629,695 1,694,595 1, 745,904 1,616,082 1,052,913 l', 116,209 641,682 91,024 78,742 89, 617 57,968 33,056 "' 56,894 32, 723 2,853,840 2,916,382 1,753,344 1,725,828 4,607,184 4,642,210 4,042,324 1,821,540 585,492 2,430,457 2,394,491 2,343,446 608,917 Septem- December ber 2,907 854 6,733 . 160,946 389,504 468,250 301,329 353,699 181,261 169,805 403, 650 468,509 309,216 348,231 170,501 61,274 176,837 71,094 59,406 38,927 61,307 180,636 71,693 59,787 36,407 35,530 222,220 566,341 539,344 360,735 392,626 214,144 231,112 584.286 540,202 369, 003 384,638 206,031 215,100 519,229 434,281 324,714 346,044 203,526 227,586 551,303 444, 771 334,801 370,552 207,027 4,965 14,600 35,108 16,840 39,223 11,114 6,515 16,193 30,921 16,885 14,670 6,074 432,764 214,690 172,041 325,914 509,799 213,373 161,978 127,806 46,116 39,243 143,466 48,550 43,941 560,570 260,806 211,284 369,862 653,265 261,923 205,919 682,391 267,039 788,825 283,599 233,783 1,003 9,581 14,855 17,457 1,241 2,730 2,896 622,272 1,091 1,1"" 2,538,123 2,563,197 715 710,441 738,314 983 600,362 603,098 776,496 761,791 1,518 874,117 918,367 218,179 102,048 811,312 189,040 772,201 886,119 3,412,240 3,449,316 3,265,910 3,317,513 922, 798 1,628,:" 1,661,112 1,623,256 1,659,539 226,164 818,541 803,303 825,685 95,431 878,544 857,222 874,520 870,567 34,477 27,920 11,863 20,539 36,397 55,816 39,275 13,78821,335 44 229 520 354 356 Tennessee. Arkansas._ Missouri... Kentucky. Minnesota North Dakota.. South DakotaMontana 551 487 1,565 610 485 1,551 342,574..... 190,779 181,437 925,759 949,317 361,429-- 46,607 24,304 322,094 89,759 389,181 378,375 222,921 214,287 25,779 215,083 207,216 324,019 1,247,853 1,273,336 1,182,210 1,251,043 390, 287 451,188 19,889 21,045 19,704 13,881 1,369 653 526 233 1,351 642 495 227 631, 766 120, 953 134, 541 79,628 616,365 114,472 123,102 78, 294 257,721 35,472 24,769 40,078 264, 944 40,134 23,804 44,106 889,487 156,42f 159, 310 119,706 881, 309 154, 606 146,906 122,400 871,012 173,003 183,717 133,783 874,929 175,154 169, 653 141, 859 4,175 4,995 1,"" NebraskaKansas Oklahoma.. Colorado... Wyoming.. Louisiana Texas New MexicoArizonaUtah ._ Idaho Nevada California.-. Oregon Washington. 1,083 1,274 767 1,072 1,269 751 321 95 367, 609 324,430 257,227 178,456 38, 713 371,738 328,846 244, 979 169,372 38,703 58,168 80,717 92, 399 92,354 11, 637 59,234 79, 534 104,460 89,426 12.731 425,777 405,147 349,626 270,810 50,350 430, 972 431,209 443,363 389,228 291,822 56, 038 431,418 431,450 401,219 289,655 58,312 6,197 3,632 7,332 2,444 536 14, 592 6,064 1,122 247 342, 941 740, 747 363,427 61.732 377,783 883,202 27,936 421,027 20,216 18, 346 795 19,423 3,017 2,494 2.300 1,061 1,627 704 53, 332 5,237 4,830 30,04? 4, 367 2, 665 Total.— 247 1,491 63 57 114 162 34 653 278 361 27,895 "~65 19,467 55,898 162, 032 6,020 113 158 34 637 274 43,184 45, 300 103,226 50,120 50,636 25, 697 26,891 2,116,062 2,189,533 167,926 163, 991 233,024 231,460 14,134 28,650 19, 376 7,061 763,439 82,424 115, 518 7,350 902,779 26, 719 349,439 258,798 51,434 425,159 26,817 32, 645 56, 915 59,434 67,571 69,158 13,731 137,541 117,087 28, 597 131,876 125, 55f 22,923 73,559 69,496 77,894 85, 329 7,139 36,45f 32,758 35,298 34,030 769,305 2, 879, 501 2, 958,838 2,865,166 3, 030, 625 85, 595 250,350 249,586 263,751 263, 542 351,136 360,841 369, 236 119,676 348, 542 6,03? 23,00a 6,738 2,467 4,142 542 2, 826 135 194 27,705 30,302,700 31,022,937 12,154,379 12,157,078 42,457,079 43,180,015 41,031,329 42,134, 591 1,071,873 1,102,524 1 Includes all banks in the United States except (1) a certain number of nonreporting private banks, not under State supervision, and (2) all mutual savings banks, figures for which are available only for June calls. Three mutual savings banks in Ohio, however, and one in California,, are included because the figures for these banks are included in the totals reported for all State banks by the State authorities and are not available separately except for June calls. 2 Figures include those of State banks and trust companies as given in the following table, which in some cases represent the condition of banks as of dates other than Sept. 28,1925, and Dec. 31,1925, respectively. 291 FEDERAL RESERVE BULLETIN , 1926 STATE BANKS AND TRUST COMPANIES i—PRINCIPAL RESOURCES AND LIABILITIES ON SEPTEMBER 28 AND DECEMBER 31, 1925 2 [Amounts in thousands of dollars] Number of reporting banks Loans and discounts, including overdrafts Investments Total loans and investments Total deposits, exclusive of bank deposits September September Rediscounts and bills payable State Sep- Decem- Septemtember ber ber Maine New Hampshire.. Vermont Massachusetts Rhode Island Connecticut New York New Jersey Delaware Pennsylvania.. Ohio.._-. District of Columbia Maryland Virginia.—.-West Virginia _.. _. North Carolina South Carolina Georgia Florida Alabama.-_ Mississippi. 221 27 777 742 31 145 340 221 505 297 31 145 339 222 501 279 265 251 301 484 271 253 301 September 51,919 18,066 17, T 141,309 130, 203 134,595 December 51,942 December December September December 127,472 6,377 3,058 71,803 716,321 250,812 268,312 1,207 16,915 1,522 16,020 100 2,707 3, 505,207 3, 631, 1, 330, 351 1,314,232 4,835,558 4,945,930 5,226,373 4,875,026 655,252 328,728 626,131 954,859 976, 010 914,153 959,909 320,758 44,896 46,570 67,180 70, 217 61,064 23,700 23,647 1,402,561 1,440,465 783,627 774,009 2,186,188 2,214,474 1,957,063 1,998, 597 1,305,924 1,295,474 365,891 1,671,815 1,639,240 1,675,206 1,637,229 343, 766 79,284 21,951 385 41,117 35,215 335 46,843 49,173 107,941 1,180 6,496 13,430 9,426 23,432 7,135 983 6,731 11,948 8,552 7,163 3,492 198, 530 3 423,244 481,707 135,458 »142,660 152,164 160,490 813 5,035 10,156 11,565 1176 1,181 2,130 16,306 18,774 7,451 12,673 31,562 20, BIS 23,713 615B 13,099 86,974 24, 265 56, 575 596,!""" 110,913 131,296 447 218 27 775 745 December 82,475 56,532 583,340 136,942 133,656 17,831 143,426 114,936 137,102 138,893 42,331 74,209 738,296 241,116 265,891 134,417 74,363 726,766 251,878 270,758 128,174 38,360 70,931 714,318 240,695 253,020 28, 534 100,016 17,151 23,983 19,289 13,040 28,611 101,585 17,470 23,496 16,321 15,018 198,803 309,492 107,709 111, 907 50,579 11,785 20,792 17,313 59,664 12,192 23,664 392,785 846 1,395 1,558,157 1, 560,003 447,913 587 425,207 354, 632 824 351,104 541,689 534,877 1,189 563,014 780,998 120,676 25,507 479,806 87,021 466,478 569, 723 2,121,171 2,129, 726 2,135,390 2,161,769 787,775 1,206, 205 1,235, 688 1, 206,987 1,228,940 123,050 471, 780 477,682 483,664 567,196 559,094 3 598? 758 595,883 24,217 81,703 231,082 183,044 172,586 221,411 100,216 86,395 243,633 182,478 176,528 216,635 88,35r 257,746 109,360 120,089 110,237 331,i 200,195 196, 549 240,700 113,256 308,325 121,145 140,881 115,006 345,218 200,024 232,956 103,370 216,116 369,156 119,901 135,571 106,442 316,904 161,050 181,931 221,924 110,090 114,043 340,626 164,159 188,442 3,170 75,379 Indiana, __ Illinois Michigan.. Wisconsin. Iowa 1,394 584 826 ls209 Tennessee _ Arkansas-_ Missouri.. Kentucky _ 445 400 1,430 471 1,416 184,382 127,551 577,416 186,365 118,138 579,371 17,309 9,225 216,180 36, 522 10,029 213,403 201,691 136,776 793,596 222,887 128,167 792,774 220,402 148,464 823, 705 204,311 136,215 845,694 10,564 16,460 16,153 4,232 19,117 Minnesota North Dakota.. South Dakota. Montana 1,051 495 414 149 1,043 482 385 147 282,117 67,241 88,443 38,168 275,313 61,563 79,270 36,919 93,173 9,732 5,147 19,526 95,224 11,161 3,851 22,380 375,290 76,973 93,590 57,694 370,537 72, 724 83,121 59,299 399,766 87, 795 116, 525 64, 977 401,413 86,071 103,640 69,954 9,064 3,350 3,616 956 4,710 2,054 2,950 350 Nebraska.. Kansas. __. Oklahoma . Colorado.. Wyoming.. 913 1,015 381 194 64 903 1,010 372 190 63 222, 718 196,067 50,597 45,620 15, 563 227,135 199,393 46,364 42,822 15,708 21,498 28,399 14,457 16,327 2,492 29,177 16,417 15,840 2,848 244,216 224,466 65, 054 61,947 18,055 247, 223 228,570 62,781 58,662 18, 556 274,003 263,888 78, 808 73, 512 20, 605 272,606 247,915 85,552 70,769 21,875 3,007 2,842 2,311 686 420 5,781 4,047 350 645 135 214 260,829 179,106 5,488 271,645 42,207 20,102 1,035 46,9391 303,036 199,208 6,523 318, 584 294,628 217,521 327,588j 15,090 10,226 30,424 36 74,486 93 20,676 102 16,157 24 370 1,537,080 58,802 176 76,480 248 29,2! 76,658 19,43" 16,805 9,465 17,681 8,689 2,449 554,638 22,752 34,152 8,406 17,601 Louisiana Texas New Mexico.. 214 Arizona _ Utah Idaho _. Nevada Calif o r n i a . . . Oregon Washington. 39 94 106 24 382 179 248 . Total. - 19,816 ~~34 5,299 1,435 6,734 8,125 370 128 37,623 3 45, 510 8 45,429 85,801 94,259 81, 324 36,107 29,405 34, 076 22,614 19,352 21,191 2,157,628 628 32, 2,134, 635 80,717 87, 87,132 111, 886 116, 678 118,649 * 1,654 2,237 1,154 1,325 404 «35,224 1,923 1,776 « 6,266 2,318 19,65717,157,136 17,481,134 6,404,579 6,386,900 23,561,715.23,868,034|23,977,249 24,076,198 509,709 453,642 57, 67' 75,344 92,167 29,365 2,547 18,608 559,236 2,091,718 23,040! 81,554 36,542 110,632 1 Includes all State banks in the United States except (1) a certain number of nonreporting private banks, not under State supervision and (2) all mutual savings banks, figures for which are available only for June calls. Three mutual savings banks in Ohio, however, and one in California, are included because the figures for these banks are included in the totals reported for all State banks by the State authorities and are not available separately except for June calls. 2 Or dates nearest thereto for which figures are available. 34 Includes amounts due to banks. Includes other liabilities. NOTE.—-All figures used in the September column are for Sept. 28, except as follows: Maine, Sept. 26,1925; Rhode Island, Sept. 8,1925; New York, Sept. 30, 1925; Maryland, Sept. 2, 1925; Georgia, June 30, 1925; New Hampshire, June 30, 1925; Indiana, June 30, 1925; Iowa, Sept. 8,1925; Tennessee, Oct. 26,1925; Kentucky, June 30, 1925; Minnesota, Nov. 2, 1925; North Dakota, Oct. 15, 1925; Kansas, Aug. 20, 1925; and XJtah, Oct. 5,1925. All figures used in the December column are for Dec. 31, except as follows: New Hampshire, June 30,1925; New York, Nov. 14,1925; Tennessee, Oct. 26,1925; Kentucky, June 30,1925; Iowa, Dec. 30,1925; Kansas, Dec. 10,1925; Oklahoma, Dec. 26,1925; and Texas, Sept. 28,1925. 292 FEDERAL RESERVE APBIL, 1926 CHANGES IN MEMBERSHIP IN' THE FEDERAL KESERVE SYSTEM DURING 1925 On December 31, 1925, 9,489 banks, with resources of $41,425,295,000, were members of the Federal reserve system. Of this number, 8,048, with resources of $25,839,450,000, were national banks and 1,441, with resources of $15,585,845,000, were State banks and trust companies. There was a decline of 31 in the number of national banks and a decline of 19 in the number of member State banks during the last quarter of the year. Notwithstanding the decrease in the number of member banks, total resources showed a growth of $2,371,941,000 for the period, owing to about equal increases for both National and State member banks. Gains and losses in membership for the last quarter of 1925 are classified.in the following table: CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM* BY CLASS OF BANK, SEPTEMBER 283 1925, TO DECEMBER 31, 1925 Member banks member banks. This decline is accounted for largely by decreases incidental to mergers, suspensions, and' voluntary liquidations which terminated the existence of member banks,* as is shown in the following table:! CHANGES IN MEMBEESHIP IN THE FEDERAL RESERVE SYSTEM:, DECEMBEB 31, 1924, TO DECEMBER 31, 1925 Number of banks Active member banks, Dec. 3 1 . 1 9 2 4 — . . . . . — — — Banks joining the s y s t e m . — — . — . . . . . . — — — . . Banks withdrawing from the system i — — — — . . . Net increase from banks joining and withdrawing..... Banks lost to membership through mergers between member banks, suspensions, e t c . — — . — ————— .. Net decrease for the y e a r . — — — — — . Active member banks, Dec, 31,1925........... ... ... 8,587 "lii 101 135 233 98 1 Includes 42 withdrawals which were incidental to the absorption of member banks by nonmember banks. In 1925,236 banks joined the Federal reserve system and 101 banks withdrew from membership. Thus there was a net addition,of 135 to National State the membership of the system through the exercise of the banks* option with regard to the Active member banks, Sept. 28,1925. 8,079 1,460 9,539 39,053,354 assumption or relinquishment of membership. Additions to membership: Against this voluntary accession to member5,807 25 25 Organization of national bank... ship there was a decrease of 233 In membership Conversion of n o n m e m b e r 9 9 1,337 bank to national........ .. Admission of State bank 7 69,107 resulting from mergers between member banks, 7 Resumption following suspenfrom bank suspensions, and from other causes 1 1 sion _ 2 238 11 Conversion within the s y s t e m 2 (88,468) not related to the banks*, choice in the matter 9 43 76,489 of membership. Of the 236 banks that joined 38 Total additions _—„ the system, 120 were newly organized national Losses to membership: banks, 69 were nonmember banks that conMerger between member banks— 13 Intraclass-.. 5 18 8 (144,764) 1 1 2 (2,869) verted into national banks, 40 were nonmemInterclass __ 7 Voluntary liquidation(terminal) 7 3,620 ber banks that were admitted to membership Suspension and insolvency. _____ 44 36 8 28,931 as State institutions, and 7 were banks preAbsorption of member by nonmember bank 2 8 10 7,969 viously closed which resumed operations durConversion of member to nonmember bank 4 3 2,186 ing the year. Of the banks that withdrew Withdrawal of State bank, 39 8,986 89 Conversion within the s y s t e m 2 (88,468) from the system, 37 were member State banks 11 13 69 93 28 51,692 that withdrew as such after advance notice to Total losses..... - 5 0 ^+2,371,941 the Federal Reserve Board and 64 were member -31 -19 Net change Active member banks, Dec. 31,1925. 8,048 1,441 9,489 41,425,295 banks that dropped out of the system because they were absorbed or succeeded by nonmemi'Change not affecting number of banks in the system. ber banks; the latter include 42 withdrawals s Change not affecting total resources of member banks. * Includes compulsory withdrawal of one bank with resources of $71,000. incidental to- the absorption of member by • Includes changes in resources due to reorganization, growth, contracnonmember banks, which in many instances tion, etc., in addition to changes enumerated. did not represent the exercise of the .bank's During the year 1925 the number of national option regarding membership in the system. banks increased by 5 and the number of State 1 All instances in which voluntary liquidation did not terminate the member banks declined by 103? with a conse1 existence of the bank, but was a step toward change in status, were quent net reduction of 98 in the number of classified according to the ultimate status of the bank. Number Resources (in thousands of Total dollars) 294 FEDERAL RESERVE BULLETIN APRIL, 1926 CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, BY DISTRICTS AND BY CLASS OF BANKS, DURING 1925 Resources, all districts (in thouAll sands of dis- Bos- New dollars) tricts ton York Total member banks: Dec. 31, 1924 D e c . 31, 1 9 2 5 - — • . . 38,986, 867 41,425, 295 1+2,438,428 Net increase (+) or decrease (—) 9,587 9,489 -98 419 420 855 880 +1 +25 Number Philadelphia Cleve- Rich- Atland mond lanta 738 753 • San St. Min- Kansas Dallas FranLouis neapcisco olis City 617 604 -13 510 495 -15 1,408 1,398 -10 624 628 885 829 -56 1,066 1,027 -39 +24 752 747 -5 555 548 382 379 -3 1,055 1,051 -4 492 498 -7 +6 785 744 -41 1,033 994 -39 871 863 -8 - Chicago - • +4 828 852 766 740 -26 +80 645 725 584 575 -9 : National banks: Dec 31, 1924 Dec. 31, 1925 Net increase (+) or decrease (—) 24, 368,991 25 839.450 |1+l,470,459 State banks: Dec 31, 1924 Dec. 31, 1925 Changes in State bank membership: Total additions Admission of State bank C on version of national bank Absorption of nonmember Resumption after suspension ! Total losses _ Merger between State members 2 • Absorption by national bank Conversion to national bank Voluntary liquidation 3 Suspension and insolvency Absorption by nonmember Conversion to nonmember Withdrawal..— 383 382 711 734 +23 i 666 671 +5 144 146 +2 +10 72 82 119 116 -3 62 56 -6 128 116 -12 353 347 -6 132 130 -2 100 85 -15 33 33 183 127 -56 182 165 -17 3 2 1 34 31 2 1 11 10 4 1 11 6 9 6 2 15 12 9 5 17 14 8 5 36,029 2,317 239 120 45 69 5 1 2 1 4 1 3 4 3 25 16 2 7 1 1 2 93 12 38 43 234 42 12 1 12 118 28 21 4 9 3 3 18 5 12 1 19 1 3 58 6 47 10 13 1 83,837 61,935 6,651 85,054 23,872 12,079 34 7 4 3 10 1 1 16 . . . . . . 1 1 1 44 4 3 5 16 7 9 1 10 | 1 1 3 1 10 3 139,865 43 40 3 3 9 8 1 10 10 5 5 1 1 1 1 4 4 1 1 60 2 1 38 18 2 2 2 1 3 2 17,844 Total losses.; _-„ Merger between national banks 2_._ Absorption by State member..Conversion to State member Voluntary liquidation 3 Suspension and insolvency Absorption by nonmember Conversion to nonmember._ +5 36 38 14, 617,876 15, 585, 845 1+967,969 Net increase (+) or decrease (—) Changes in national bank membership: Total additions Primary organization Conversion of State member Conversion of nonmember Resumption after suspension 8,043 8,048 1,544 1,441 -103 +2 11 7 2 1 3 6 1 1 1 1 1 2 1 (1) 2,470 468 31,418 173,236 1,560 16,155 13, 768 332 32,008 0 1 7 3 4 1 (2) 14 1 1 2 12 1 7 1 2 5 1 8 1 1 5 1 2 4 3 4 9 6 1 2 1 2 I 3 1 (3) 1 ~~146~ 11 6 45 1 29 14 1 ^ 39 6 5 1 3 9 7 4 (1) 16 1 ""I"::::::: 6 7 1 1 6 12 Includes changes in resources due to reorganization, growth or contraction, etc., in addition to changes enumerated. Counted only among losses in number. 3 All instances in which voluntary liquidation did not terminate the. existence of the bank, but was a step toward change in status, were classified according to the ultimate status of the bank. * Includes compulsory withdrawal of two banks with resources of $318,000. APBIL* 1926 FEDEBAL RESERVE BULLETIN The other decreases In membership were the consequence of 71 mergers between member banks, 13 voluntary liquidations terminating the banks' operations, 147 suspensions and Insolvencies, and 2 compulsory withdrawals. In the following table changes in membership are shown in detail, by class of bank, for the year 1925: 293 additions and 234 losses. There were 120 national banks which were newly organized during the year, in addition to 114 which represented the conversion of State banks into national banks. Of the latter, which for the most part were In the State of Texas, 69 were banks which had formerly been nonmember State banks and 45 had formerly been member State banks. Five national banks, previously CHANGES IN MEMBERSHIP IN THE FEDEEAL RESERVE suspended, resumed operations. Of the deSYSTEM DURING 1925, BY CLASS OF BANK creases In the number of national banks, 54 resulted from mergers% 12 from voluntary Member banks liquidations terminating the banks* existence, and 118 from suspensions. There were susNumber Resources pensions of national banks in all except the (in thouBoston, New York, Philadelphia, and St. sands of Nadollars) Louis districts, the largest numbers being in tional State Total the Chicago, Minneapolis, and Kansas City districts. In addition to these losses there Active member banks, Dec. 31,1924.. 8,043 1,544 9,587 38,986,867 Additions to membership: were 28 national banks that were absorbed by 17, 844 120 120 Organization of national bank Conversion of nonmember bank nonmember banks, 21 that were liquidated 69 36,029 69 to national . to be succeeded by banks organized as non139,865 40 Admission of State bank 40 Resumption following suspenmember banks, and 1 that was succeeded by a 2,785 2 7 sion 5 1 1 2 (235,171) member State bank. Conversion within the system.. 145 43 236 196, 523 239 Total additionsState banks numbering 43 joined the system during the year, all but 3 of them being Losses to membership: Merger of member banks— former nonmember State banks that were 53 2 (360,159) 42 11 Intra class.___ „ 18 2 (115, 255) admitted as such. 12 6 Inter class As against these additions Voluntary liquidation (termithere were 146 losses, of which 92 were inci13 8,211 1 12 nal) 101,209 147 29 Suspension or insolvency 118 dental to mergers, suspensions, terminal volAbsorption of member by non42 37, 640 14 member bank untary liquidations, and conversions Into 28 Conversion of member to nonnational banks, 14 were the result of mergers 12,411 22 member bank 1 21 3 32,008 Withdrawal of State bank 3 39 3 39 with nonmember banks, and 40 represented 2 (235,171) Conversion within the system. _ U 145 withdrawals. Of the banks that withdrew 334 191,479 234 146 Total losses from the system, 37 voluntarily relinquished +5 - 1 0 3 —98 4+2,438,428 membership after advance notice to the Net change _ ----Active member banks, Dec. 31,1925.. 8,048 1,441 9,489 41,425,295 Federal Reserve Board, 1 was succeeded by a nonmember bank, and 2 were deprived of i2 Changes not affecting total number of member banks. Changes not affecting total resources of member banks. membership on account of the violation of 3 Includes compulsory withdrawal of two banks with resources of $318,000. requirements of the Federal reserve act. 4 Includes changes in resources due to reorganization, growth, conIn the following table are shown in detail traction, etc., in addition to changes enumerated. the changes in membership In the Federal The increase of 5 in the number of 3aational reserve system, by districts, between December banks during 1925 was the net result, of 239 31, 1924? and December 31, 1925. 295 FEDERAL RESERVE BULLETIN APRIL, 1926 DEBITS TO INDIVIDUAL ACCOUNTS BY BANKS IN SELECTED CITIES MONTHLY SUMMARY' FOE BANKS IN 141 CITIES [In thousands of dollars] Numbe of centers Federal reserve district No. No. No. No. No. No. No. No. No. No. No. No. 2,467,796 28,106,044 2,242,478 2,466,903 795, 584 1,154,408 5,326,098 1,259,637 849,622 1,189,358 664,938 2,634,300 2,685,491 28, 500, 616 2,173,091 2,511,678 767, 253 1,201,107 5,490,747 1,306, 725 731,307 1,211,359 2,720,698 2,157,347 23, 574, 730 1,780,071 2,048,430 675, 206 976,073 4,479,475 1,074,542 637,553 1,024, 111 572,869 2,495,365 44,892,403 49,157,166 49,959,035 41,495,772 24,812,705 20,079,698 27,327,223 21,829,943 27,681,894 22,277,141 22,924, 386 18, 571,386 3,150,544 2,814,568 31,406, 762 2,262,212 2,708,317 825, 996 1,337,786 5,849,786 1,342,698 685,686 1,221,264 661,134 3,002,325 2,175,114 25, 533, 666 1,892,279 2,157,107 723,140 1,118,098 5,033,017 1,123,586 599,145 1,038,821 563,647 2,934,783 141 54,371,372 54,118,534 1 140 30,313,358 24,058,014 30,537, 751 23,580,783 f\ 711,056 31,147, 498 2,405,369 2,652,829 878,411 1,365,832 5,850,726 1,386,724 1,291,733 N e w York City. Other cities February February December 1925 January January 1—Boston 2—New York 3—Philadelphia 4—Cleveland 5—Richmond.-—__ 6—Atlanta _____ 7—Chicago.... 8—St. Louis._.__.. 9—Minneapolis.._. 10—Kansas C i t y 11—Dallas ___. 12—San Francisco.. Total . 1924 1926 1925 December WEEKLY SUMMARY FOR BANKS IN 258 CENTERS [In thousands of dollars] 1925 1926 Federal reserve district Number ofcenters Feb. 24 No. No. No. No. No. No. No. No. No. No. No. No. 1—Boston 2—New York 3—Philadelphia... 4—Cleveland _ 5—Richmond. 6—Atlanta. 7—Chicago _______ 8—St. Louis 9—Minneapolis _10—Kansas City.11—Dallas 12—San Francisco Total— 527,861 5,424,869 457,171 594,254 264,895 272,030 1,165, 733 271, 622 141, 524 250, 782 149,815 629, 396 Mar. 3 674,055 8,033,554 572,184 718,868 359,835 344,368 1, 560,239 347, 386 205,382 338,497 177,275 999,221 Mar. 4 Mar. 11 641,889 6,621,710 599,451 541, 773 6,059,127 485,843 296,200 1, 301,680 316, 504 214,947 330, 910 182,471 863,215 296,837 265,212 1,236,329 290, 935 184,064 303,306 176, 371 650, 356 587, 625 6,848, 334 571, 962 672,138 309,172 297,492 1,430,786 319, 642 220,010 315, 327 190, 389 690,412 9, 943, 628 12,366,50911,058, 646 12,453? 289 Feb. 25 Mar. 10 Mar. 17 584, 665 7,667,609 550,245 623,346 313,231 314,116 1,309,886 284,087 162,129 304,743 173,423 721, 857 674,843 510,152 7, 783,150 5,518,672 592,863 458,345 684, 520 524,240 326,418 259, 620 327, 714 233,203 1, 442, 632 1,056, 748 327,049 250,048 185,921 139,826 307,372 252, 610 180,404 156, 558 810,399 583, 606 258 10,149,952 14, 330,864 13,009,337 13, 643, 285 Mar. 18 BANK DEBITS FOR FEDERAL RESERVE BANK AND BRANCH CITIES [In thousands of dollars] No. 1~-Boston__ — No. 2™New York— Buffalo..... No. 3—Philadelphia No. 4—-Cleveland _ _. Cincinnati. Pittsburgh No. 5—Richmond. Baltimore- __ No. fl—Atlanta Birmingham Jacksonville Nashville New Orleans.-... No. 7—Chicago.—_—... Detroit ._„.. No. 8—St. Louis Little Rock....... Louisville.-. Memphis.... No. 9—-Minneapolis Helena ..... No. 10—Kansas City Denver.... Oklahoma City.. Omaha.......... No. 11—Dallas........... El Paso... Houston . No, 12—San Francisco- _. Los Angeles..-.. Portland. Salt Lake City_. Seattle Spokane 365,455 5,147,857 68,606 345,685 126,003 70f581 218,520 28,078 84,538 33,043 28,810 98 SQQ 18,438 70,976 684,397 199,474 146,500 17,209 42,820 32,374 67,353 1,524 70,627 34,155 17,072 42,014 48,672 7,004 26,510 217,725 177,461 35,570 13,771 39,765 10,810 468,183 7,634,927 92,450 429,614 175,373 86,464 245,185 41,335 124,807 44,730 41,330 Q1 QKf •SI, VOL 21,548 97,673 976,327 213,121 190,200 19,695 60,987 37,938 104,440 2,102 88,803 44,470 24,346 54,176 • 54,015 9,988 36,475 408,004 280,640 45,154 18,405 49,640 12,514 402,993 7.351,070 76,587 409,834 142,537 80,818 204,673 32,672 101,038 52,733 31,240 29,027 21,077 78,142 800,815 172,285 149,800 18,516 44,980 35,510 79,816 1,751 82,502 41,536 22,448 48,056 47,705 9,342 33,124 239,652 211,355 37,424 15,243 45,868 11,465 474,663 7,442,732 78,790 449,854 166,473 88,892 220,207 33,448 106,276 43,823 39,230 30,287 23,659 86,793 874,334 216,129 184,200 19,553 47,618 40,050 93,258 2,983 83,753 39,024 21,587 49,642 53,670 8,389 35,493 271,296 238,623 46,177 18,414 60,993 13,725 359,354 5,268,535 61,446 346,336 112,037 64,118 184,977 28,868 72,987 32,009 28,548 16,726 16,440 63,252 627,419 166,372 137,600 14,086 37,678 30,907 73,401 1,652 68,404 35,511 16,992 41,274 46,072 6,690 34,407 220,417 164,745 29,829 12,105 36,242 9,221 436,996 6,277,234 79,430 461,915 166,165 81,550 225,608 34,569 103,648 39,813 315334 18,854 20,091 93,407 804,638 149,335 181,500 15,383 47,087 39,405 109,070 2,346 89,893 43>011 20,877 53,528 52,216 10,688 39,275 332,310 254,633 40,834 17,095 45,091 10,948 369,163 5,775,382 68,540 366,324 129,491 72,810 185,869 31,803 87,749 35,326 27,775 17,435 18,442 77,442 737,576 178,150 155,900 15,453 48,911 393,120 6,529,015 71,506 439,398 156,022 90,968 227,264 32,697 94,851 39,968 30,493 19,134 21,397 93,434 913,891 191,221 183,700 15,689 48,510 OK 00, QQQ poo ne oO, on* o_& 99,805 1,769 83,180 37,707 21,161 51,144 51,677 9,918 33,690 209,639 193,517 34,037 14,996 43,188 11,368 117,918 1,546 92,125 38,752 22,650 49,376 56,481 7,365 42,722 224,780 194,067 40,025 16,868 57,178 14,654 296 FEDERAL RESERVE BULLETIN APRIL, 1926 M QNEY RATES PREVAILING IN FEDERAL RESERVE BANK AND BRANCH CITIES The following table shows the customary rates chargedjon loans and discounts in the various cities in which the Federal reserve banks and their branches are located, as reported by representative banks. These rates are not averages but are those rates at which the bulk of paper of each class is handled by reporting banks. Where it appears from the reports that no one rate clearly covers the bulk of the paper handled* a range of the rates most commonly charged is given. Rates prevailing during week ending with the 15th day of the month District and city Year and month 1925—March ____ 1926—January... February. March Boston.. Customers' prime commercial paper 4 -5 Loans secured by Liberty bonds Loans secured by other stocks and bonds Demand Time Loans secured by warehouse receipts Cattle loans 434-5 5 4M-5 4M-5 4 -5 DISTRICT 2 1925—March.... 1926—January... February... March 1925—March 1926—January... February. March 6 6 5 -6 5 -6 Philadelphia 1925—March.... 1926—January... February. March 5 5 5 Cleveland.. 1925—March.... 1926—January. __ February. March 1925—March 1926—January... February. March 1925—March.... 1926—January... February. March New York Buffalo. 4^5 5 5 5 5 5 -5M 5 5 -5H 6 6 6 -6 -6 -6 -6 DISTKICT 3 Cincinnati „ Pittsburgh. 5 5 5 5 5 5 5 -6 5 -6 5 -6 5 5 5 5 -6 -6 -6 -6 -6 534-6 -7 -7 5 -6 6 5 -6 5 -6 5 -6 DISTRICT 5 Richmond,.— Baltimore DISTRICT 6 Atlanta.. - Birmingham — Jacksonville...- Nasnville _ . . _ . . New Orleans.—- Chicago., Detroit - 1925—March 1926—January. __ February. March 1925—March.... 1926—January.. _ FebruaryMarch 1925—March.... 1926—January... I February . March 1925—March.... 1926—January.— February _ March 1925—March 1926—January __„ February . March 1925—March... _ 1926—January..... February . March 1925—March.... 1926—January... February _ March 1925—March 1926—January „_February. March _„__ 1925—March 1926—January „_„ February. March /4T 5 -5 5 -6 5 ~6 5 ~6 6 -8 6 -6 5 -8 8 6 6 5 -6 5 -8 5 -7 5 -8 53^-6 6 534-6 5^6 534-6 5 5 5 5 -6 -6 -6 -6 -5 434-534. 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 297 FEDERAL BESEBVE BULLETIN" APKIL* 1926 Rates prevailing during week ending with the 15th day of the month District and city Year and month Customers' prime commercial paper 30-90 1925—March __„ 1926—January.. February. March 1925—March. _„ 1928—January.February. March— 1925—March... 1926—-January.. February. March... St. Louis- Little Rock. Louisville.. 4-8 months Interbank loans Loans secured by Liberty bonds 5 -6 5 -53/ 5 -6 6 15 - 6 6 8 6 8 5 -6 5 -6 5 -6 8 5 -6 4H-5 5 -6. Loans secured by other stocks and bonds Demand Time Loans secured by warehouse receipts 4 -6 5 -5 5 -6 5 -7 6 6 -7 6 -7 Cattle loans 5 -6 5 -6 66 6 -8 6 -7 DISTRICT 9 Minneapolis— Helena. 1925—March... 1926—January.. February. March. __ 1925—March. „_ 1926—January.. February. March. __ 345M 4M-5M 4M5 1925—March. _. 1926T-January __ February. March. __ 1925—March... 1926—January.. February. March-.. 1925—March _.. 1926—January.. February. March 1925—March... 1926—January.. February. March... S -6 4K-0 4>f6 4M-5' 8 8 434-5 5 5 -6)4 5 -6% 7 6 -8 6 »7 4M5^ 7 DISTRICT 10 Kansas City- .... Denver Oklahoma City Dallas,. El Paso. Houston. 5 -6 6 6 6 5 -7 5 -7 .6 -7 5 ~7 5- -6 •6 -6. 5 -6 •5 - 6 5 -6 5 6 4M-6 4^6 5 -7 5 -7 6 -7 6 -7 5 -6 6 5 »6 6 ~7 6 6 ~6y6 -63/ 6 -7 6 -7 8 -7 6 -7 4 -6 4M-6 8 5 -8 5M-3 6 -8 5 ~8 5 -6 5 -6 5 -6 5 6 6 5 5 5 5 1925—March—. 1926—January ... February. March 1925—March.... 1926—January... February. March.... 1925—March.-. 1926—January... February. March,,.. 1925—March.... 1926—January. _, February. March.... 1925—March.... 1926—January.. February. March-.... 1925—March. - . 1926—January... February. March 5 -53/ 5 5 -6Y 5 =8 ' 5 -7 5 -6 5 5 -5^ 5 -6 ' 6 -7 6 6 -7' 6 6 6 -7 6 6 6 8 4 ~7 8 -8 -8 -8 -6 -6 -6 -6 ~6 -6 -6 -6 -6 5 5 5 5 5 8 -7 6 -7 6 -7 -6 -6 -6 -6 -6 6 -8 5 -6 6 6 6 6 6 6 6 -7 -7 -7 ~8 -8 -8 -8 8 4 -6 5 -6 5 -6 5 -6 1925—March— 1926—.January.. February. March..... 1925—March. 1926™January.. February. March — 1925—March.. _ 1926—January.. February. March — 5 5 5 5 5 5 -5 .5 -6' . 5 4 4 4 6 6 6 6 -6 »6 -6 -6 -7 -8 -8 -7 5 -6 5 -6 5 -6 53^-6 6 6 -7 5 -6 4 -6 4 -7 4 -68 6 -8 6 -8 6 -8 5 -6 5 -6 5 -6 5 -6 5 5 5 5 5 5 5 5 6 6 6 6 534-6 534-6 5 -6 6 -7 6 6 6 -7 -6 -6 -6 -6 7 6 6 6 5 5 6 6 -7 -6 -7 -7 8 6 -8 5 5 5 5 -8 -6 -6 -6 -6 -8 -8 -8 -10 8 8 - 9 8 - 9 8 6 -8 6 - 8 DISTRICT 12 San Francisco— Los Angeles. „ Portland.™ - - Salt Lake City— Seattle.—— Spokane...——- 88806—261—-6 5 -8 6 6 ~7 6 6 5 5 5 5 -7 -6 -6 -6 4 -6 4M-7 4^-6 4M-6 5 -6 5 ~6 5 -6 8 6 6 5 5 5 6 6 6 6 6 6 -7 -7 6 ~7 6 -7 -7 -7 -7 -7 -7 6 -6 -6 ~6 -6 -7 -7 -7 -7 5 -6 8 -7 6 5 -6 6 6 5. -6 6 6 6 6 -7 -7 -7 -7 6 -7 6 -7 6 -7 6 -7 6 -8 6 -8 6 6 6 6 -7 -7 -7 -7 7-7 6 -7 7 6 -7 7 6 -7 6 6 6 6 -8 6 -7 6 -7 7 5 -6 5 -6 6 -7 7 8 ~7 6 -7 7 -7 ~7 -7 -7 7 7 6 -8 6 6 6 6 7 - i 7 -J 7 - i 7 -* 6 -7 7 7 7 6 -8 7 6 -7 6 -7 7 6-7 6 -7 6 - 7 298 FEDERAL RESERVE BULLETIN APRIL, 1926 MEMBER BANKS AND NONMEMBER BANKS ON PAR LIST. AND NOT ON PAR LIST NUMBER AT END OF FEBRUARY, 1926 AND 1925 Nonmember banks Member banks 1 1926 Federal reserve district: 418 Boston New York 883 753 Philadelphia _____ €61 Cleveland 599 Richmond-. _. _. 492 Atlanta 1 389 Chicago S 621 St. Louis 822 Minneapolis Kansas City ._ _ _ _,„ 1,020 Dallas 849 730 San Francisco Total § 5 437 On par list Nonmember banks Not on par list 2 1925 1926 1925 422 858 744 870 623 516 1,419 627 904 1,077 833 769 245 394 513 1,072 704 362 3,790 2,076 1,136 2,645 761 792 237 383 520 1,076 734 386 3,898 2,204 1,406 2,731 846 847 1G 678 1,107 260 412 1,076 202 181 64 9 711 1,099 224 334 936 206 155 59 9,662 14,490 15,268 3,890 3,733 1926 1925 New England States: Mainfi New Hampshire Vermont Massachusetts Rhode Island Connecticut Eastern States; New York New Jersev Pennsylvania Delaware _ Maryland District of Columbia.., Southern States: Virginia West Virginia North Carolina South Carolina Florida 62 55 46 180 20 66 62 55 46 182 • 21 638 334 958 22 89 13 191 141 90 90 148 74 49 14 39 70 8 84 49 16 35 68 8 79 631 316 950 22 90 14 276 155 657 32 166 32 277 142 660 B5 169 33 196 142 96 100 171 70 225 396 88 22 76 88 237 198 98 26 75 80 Memberl banks 304 9 332 233 374 160 90 11 346 264 1926 Southern States—Contd. Kentucky Tennessee Alabama . Mississippi Arkansas . . . __ Louisiana Texas Middle Western States: Ohio Indiana __ Illinois Michigan Minnesota 1926 1926 1925 1925 146 117 125 43 117 45 775 146 121 125 44 123 47 751 430 214 27 23 245 32 710 441 262 34 25 273 43 791 21 238 201 276 121 173 96 17 204 197 271 84 168 72 439 263 586 291 185 329 447 268 583 287 188 363 658 822 1 287 514 611 500 661 831 1,302 521 640 603 10 20 92 192 519 8 19 88 167 452 • 31 AAR 1 1Q7 1 OP&. A7 193 1,298 1,354 35 32 160 123 179 265 109 34 134 34 378 173 133 188 264 129 37. 143 36 419 180 205 739 998 102 53 176 26 365 267 263 766 1,026 106 56 189 33 372 288 167 175 3 13 •9 6 3 5 241 157 172 4 10 13 7 3 5 157 .138 303 96 49 23 11 171 107 323 78 68 30 24 174 113 372 76 65 33 23 33 31 31 27 1 4 3 Nevada 154 133 295 78 46 20 10 Total 9,437 9,662 14,490 15,268 3,990 3,733 Arizona 159 Not on2 par list 198 Missouri Western States: North Dakota South Dakota Nebraska. Kansas Montana _. Wyoming Colorado __ _ ; New Mexico Oklahoma- _ . Pacifie States: Washington _ Oregon ;.. „ California Idaho Utah 37° 1925 On par list ,___„__„„ 1 Figures for 1926 represent the number of member banks in actual operation; those for 1925 represent the number shown by the capital stock records of the Federal reserve banks. The number shown by the capital stock records on February 28,1926, was 9,539. 2 Incorporated banks other than mutual savings banks. MONEY IN OSCULATION [Source: United States Treasury Department circulation statements] [In thousands of dollars] Date Total 1Q14—Julv 1 3,402,015 1917—Apr. 1 » 4,100,591 1920—Nov. 1__.__ *5,628,428 1922—Aug. 1 4,337,418 1924—Dec. 1 4,993, 570 1925—Mar. 1 ._ 4,804, 209 Apr. 1 4, 776,167 4, 725,191 May 1 4, 774,313 June! 4, 734, 236 Julyl 4,719,519 Aug. 1 4, 784,025 Sept. 1 Oct. 1_._._ 4, 827,005 4,900, 839 Nov. 1 D e c . 1 __•___ 4,-971, 765 5, 008,121 1926—Jan. 1. Feb. 1 . . . . 4, 739, 537 Mar. !____ 4,814,217 Gold Standard coin and Gold G&t- silver bullion tincaies dollars 611,545 641, 794 495,353 416, 282 437,971 462,925 469, 448 453,211 437, 612 428,102 428. 248 416,348 413, 973 429,985 425,853 424,037 407,148 422,079 1,026,149 1,348,818 231,404 171,985 933,688 913, 900 914, 968 918,862 972, 438 1, 003, 285 1, 014,311 1,036, 243 1, 050s 057 1,067,963 1,108, 743 1,114,331 1, 035, 774 1,076,070 70,300 70,863 89, 725 58,378 55,606 55,264 54, 666 54,398 53,908 54, 294 54,165 54,173 54,693 54, 769 54, 685 54,860 53,167 52,637 Silver certificates 478,602 459,680 60,385 268, 802 389,113 366,024 371,229 •376,442 380,681 379, 796 388, 016 396, 700 394,069 390, 089 388, 012 387,495 370, 852 371,149 Treasury Subsidinotes of ary 1890 silver 2,428 1,997 1,628 1,508 L, 407 :L,39S 1,396 L, 392 1,390 1,387 1,384 1,381 1,379 1,376 1,375 1,373 1,371 1,369 • 159,960 191,351 261,556 229,956 263,102 256,509 257,559 258,446 259,894 262,607 261, 750 264,450 267,768 269,439 272,217 274,860 266,155 265,853 United States notes 337,845 330,353 277,736 284,343 304, 418 288,668 285,780 281,043 284,799 279,943 284,806 298,493 303,597 306,575 305,986 292,998 288, 677 293,622 Federal reserve notes 356,448 3,310,225 2,115,350 1,862,055 1,734,606 1,702, 212 1,676,078 1,679,833 1,636,192 1,601,884 1,629,927 1,670,658 1, 706,622 1,741,965 1,815,687 1,672,223 1,672,027 Federal reserve notes 3,170 209,877 65,032 8,471 7,756 7,506 7,299 7,109 6,921 6,777 5,580 6,460 6,314 6,185 6,058 5,900 5,808 Total National circulabank tion per capita (in notes dollars) 715,180 697,160 715,023 725,782 737,739 717,159 711,403 698,020 696,649 681,709 678,178 680,730 684,351 667,707 666,744 636,422 638, 270 653,603 34.35 39.54 52.36 39.47 44.08 42.28 41.99 41.50 41.89 41.49 41.31 41. 84 42.17 42.77 43.35 43.62 41.24 41.84 i The figures for the several classes of money include mutilated currency forwarded to the Treasury for redemption and unassorted currency hel4 by the Federal reserve banks,, and consequently do not add to the total which is exclusive of such currency, 299 FEDERAL RESERVE BULLETIK GOLD AND SILVER: EXPORTS AND IMPORTS EXPORTS FROM AND IMPORTS INTO. THE UNITED STATES, DISTRIBUTED BY COUNTRIES February Two months ending February Exports Country of origin or destination 1925 Imports 1926 1925 Exports 1926 1925 Imports 1926 1925' 1926 $8,640,327 $44,766,857 -71,046 100 70,940 353 21,387 129,321 5, 532,691 223,726 911,720 60,209 8,260 337 7,572 27,665,038 '319,842 824,598 30, 644 38,581 301,303 75,087 389,693 9,789,949 187,309 193,499 789,997 29,770 55,728 GOLD All countries - „ $50, .599,708 France Germany __ . Netherlands _. Poland and Danzig Spain . Sweden _ England Canada—. __ Central America _ Mexico __ West Indies Argentina Brazil ___ Chile.—.— Colombia Ecuador... Peru _ Uruguay Venezuela. British India.______ _. _ „ _ British—Malaya. _. China _ _ Dutch East Indies...„__.,___ Hong Kong Japan Philippine Islands Australia.*. „_ New Zealand Egypt _ Portuguese Africa, ____„_ All other 30,008 _ _ _ . 12,510,336 ________ 1,034,600 1,103,948 230,100 . _ _ 1,031,574 48,653 ._ 397,519 81,000 110,000 20,000 $3,851,374 142,713 25,019 1,014,491 44.8,225 40,549 25,666 $3,602,527 $25,415,655 $124,125,651 $6,938,244 100 18,952 353 14,361 8,260 1,685 2, 412,365 107,099 394,064 11,227 5,054 9,825, 979 209,478 285, 858 3,994 30,604 124,139 75,087 235,851 9,753,058 76,985 99,771 667,538 52,290 __ _ 1,339,208 30,010,336 4,318,343 1,103,948 40,000 1,232,728 6,109,602 118, 651 740,192 91,'000 210,000 15,000 18,488 540,857 93, 664 1,014,491 1,013, 215 54,049 51,000 90,000 5,983 802,290 800,000 311, 510 326,250 8,427 16,228,118 : 100,500 35,000 540,000 150,200 565,917 42,795 267, 520 97,795 4,000,000 177,073 650 11,806 52,694,386 1,300,000 354,510 1,317,749 50, 000 1,481,605 290,220 792,253 _ 20,055 283,334 323,634 1,500 37,466 9,462 2,020 1, 305 22,500 1,765 1,631 165,137 18, 701 4,000,000 361,353 16,338 19,207 2,857 91,147 8,255 7,752,350 4,928,916 8,863,131 18,225,311 17, 515,319 12,267,475 14,625,891 180,523 3,137 350 3,946 3,352 17,995 4, 981 301,097 31,145 974 111, 221 4,137 29,025 15,886 508,751 11,682 3,903,906 6,794 1,772 97,252 5,954 288,878 14,723 17,818 317,061 152,110 2,392,302 5,763 4,150,393 220,815 12,665 388,741 28,045 102,460 306,813 2,600 361, 276 12,355 14,723 19,618 697, 786 337,477 6,751,101 16,891 2,417 373,287 23,716 6,042,464 7,880,997 4,701,365 435,610 8,813,866 7,173,170 44,461 20,098 1,169,364 144S 735 8, 111, 265 34,201 1,772 286,039 12,943 2,-215,807 4,108 99,867 190,397 25,137 65, 559 16,348 24,508 16,792,717 252,747 _ 290,331 76,504 16,792,717 6,454, 905 498,240 SILVER All countries France._ Qermany__« . _ _ _ _ Poland and Danzig.. „_„,____ ... Spain „ _ England______ __ Canada Central America . Mexico West Indies Bolivia... „___. Chile Colombia _ ~_ _ Peru. British India ._ China.— Dutch East Indies ___.. Hongkong __ ___ _ Portuguese Africa All other, _„__ _ _. 6,832,647 591,028 96,767 3,200 251,342 26,125 33, 581 148,900 100 239,526 3,755 3,938,567 1,579,823 139,105 2,872,922 4,133,938 22,752 232,832 1,809 5,582,500 123,922 345,435 360 823,935 10,210 22,567 3,724 11,269 360 1,091 800 FEDERAL RESERVE BTJX/LETIN APRIL, 1926 FOREIGN EXCHANGE RATES [Noon buying rates for cable transfers in New York, as published by Treasury. In cents per unit of foreign currency] Match , 1926 Countries Monetary unit Par of exchange Schilling ____ Franc... Lev Crown __Krone. Markka Franc . «. _ Reichsmark Pound Drachma _» Pengo Lira Florin Krone _.„ Zloty Escudo Leu Peseta Krona .__ Franc Dinar __ __ Dollar Peso do „ Peso (gold) _ __„„_ Milreis Peso _. _. „ do Mexican dollar Shanghai tael Dollar Rupee Yen _ Singapore dollar 14.07 19.30 19.30 28.80 2.52 19.30 23.82 486.65 19.30 17.49 19.30 40.20 26.80 19.30 108. 05 19.30 19.30 26.80 19.30 19.30 100.00 100.00 49.85 96.48 32.44 12.17 103.42 1 48.11 1 66.85 1 47.77 48.66 49.85 56. 78 11913 average. Average Average Low High Low High Rate Austria _ . Belgium.Bulgaria Czechoslovakia Denmark. Finland France Germany Great Britain.... Greece Hungary Italy Netherlands Norway™ Poland ,„ Portugal Rumania __ Spain Sweden Switzerland. Yugoslavia .. Canada Cuba Mexico _ Argentina Brazil Chile ... Uruguay China China __ Hongkong India Japan Straits Settlements„.. February, 1925 February, 1926 14.0510 3.6900 .7156 2.9616 25. 9000 2. 5211 3.4300 23. 8000 485. 7300 1.3148 17.5300 4.0000 40.0200 21.1200 12.4100 5.1100 .4111 14. 0800 26. 8000 19. 2400 1.-7603 99. 4111 99. 8875 48.4833 88.0700 14.0800 12.0300 101.5500 52. 2300 72. 2900 55. 7300 36.3000 44.8200 56.. 4600 14.0750 4. 5400 .7259 2.9621 26.2600 2. 5223 3.7300 23.8100 486.2700 1. 4182 17.5900 4.0200 40.1000 21. 8300 13.1600 5.1600 .4394 14.1000 26.8200 19.2600 1. 7628 99.8353 100.0188 48.6833 92. 5500 14. 7400 12.1400 103. 0800 53.9000 73.0400 57. 5700 36. 7300 45. 9400 56. 7500 14.0430 4.5400 .6725 2.9613 24. 6100 2. 5198 3. 5500 23. 8000 486.0400 1.4098 17.5400 4.0100 40.0400 20.3100 12.1400 5.0900 .4205 14.0700 26.7600 19.2400 1,7584 99.5664 99. 8906 48.3667 92.7100 14.7000 12.0700 102. 6900 53.2900 72.7700 57.4300 36.7000 44.8500 56. 5400 14.0760 4.5500 .7231 2.9626 26. 0400 2.5215 3.7600 23.8100 486. 5100 1.497S 17.5900 4.0400 40.1400 21. 7300 13.5300 5.1400 .4431 14.1400 26.8300 19. 2900 1.7648 99.7879 100.0094 48. 6333 94.1000 14. 8900 12.1600 103.3700 53.9500 74.3000 58.1300 36.7900 46.3200 56.7100 Per cent of par Low High Per cent of par Rate 14.0556 99.90 23.54 5.0000 5.1800 4.5432 .7279 .7344 .7046 3.65 2.9704 2.9518 2.9618 94.70 17.7700 17.8700 25.3786 2. 5183 2.5220 2. 5206 100.03 19.06 5.1300 5.4100 3. 6782 99.94 23.8000 23.8000 23.8068 99.94 475.7800 479.3300 486.3363 7.43 1.4349 1.5658 1. 6954 17. 5618 100.41 4 0264 20.86 4.0300 4.1600 99.70 40.0100 40.3100 40.0795 20.8273 77.71 15.2100 15.3100 68.15 19.1700 19.2000 13,1536 4.74 4. 8500 4.9600 5.1227 2.24 .4870 .5180 . 4321 14.1014 73.06 14.1500 14.3100 26.7782 99.92 26.9300 26.9500 19,2623 99.80 19.2100 19.3000 a 12 1.6017 1.6384 1.7610 99.65 99.7988 99.9189 99.6539 99.96 99.9799 100.0281 99.9612 97.29 48.9750 49.4667 48.4993 96.67 89. 6300 91.3100 93.2718 14.7818 45.57 10.9900 11.6300 12.1214 99.60 10.6500 10.9500 99.70 94. 2800 97.8200 103.1050 53.7464 111.72 54.4000 55.6700 73.7351 110.30 74- 7300 75.7500 57.8636 121.13 54. 9600 55.7900 36. 7600 75. 52 35. 5900 35.8600 45. 4045 91.08 38. 5200 39.7300 99.74 54.9600 55.5900 56.6327 5.0750 .7319 % 9600 17.8064 2. 5203 5. 2796 23.8000 477.2418 1.6134 26.30 3.79 4.1082 40.1700 15.2541 19.1800 4.9060 .5073 14. 2245 26.9441 19.2550 1.6216 99.8620 100.0114 49. 2673 90.3314 11.2673 10.8432 95.4572 55.0854 75.2614 55.3495 35.7309 39.0791 55.3423 21.29 99.93 56.92 99.38 4.54 2.63 73.70 100.54 99.77 8.40 99.86 100.01 98.83 93. 63 34.73 55.52 92.30 114.50 112.58 115.87 73.43 78.39 97.47 66.44 13.06 27.35 99.92 98.07 8.36 SILVER [Average price per fine ounce] March London (converted at average rate of exchange). New York „__„ ____.. $0.66340 February $0.67482 . 67108 301 PEDEBAL BESEE.VB BULLETIN APEIL, 1926 DISCOUNT RATES OF FEDERAL RESERVE BANKS IN EFFECT APRIL 1, 1926 Paper maturing— After 90 days but within 9 months Within 90 days Federal reserve bank Commercial, agricultural, and livestock papers n. e. s. Secured by United States Government obligations Bankers' acceptances Trade acceptances Agricultural and livestockl paper Boston.. . New York.... Philadelphia.. Cleveland. . . . Richmond---. Atlanta. ... Chicago . . . . . St. Louis..... MinneapolisKansas City-. Dallas San Francisco. 1 Including bankers' acceptances drawn for an agricultural purpose and secured by warehouse receipts, etc. GOLD SETTLEMENT FUND' INTERBANK TRANSACTIONS FROM 'FEBRUARY 18, 1926, TO MASCH 17, 1926 [In thousands of dollars] Transfers Transit clearing Federal reserve note clearing Federal reserve bank Debits Boston..................... . „___— New York Philadelphia.... -__—.._._.—„.-__ Cleveland—„„„„„„ „ KichmondAtlanta.... Chicago................ St. Louis-..__.__. . . Minneapolis Kansas C i t y . . . . . . . . . . . . . .... . . . .... Dallas San-Francisco—...... •._ . . . . . . . . . . . . . . 15,500 200 7,000 13,000 13,000 30,000 5,000 9,000 12,000 1,000 6,000 33,000 Total, four weeks ending— Mar. 17,1926. . . . Feb. 17,1926. Mar. 18,1925...... . . ...... Feb. 1 8 , 1 9 2 5 . . . . . . . . . . . . . . . . . . . . . . . . . 144,700 6,500 80,100 8,500 i Includes Federal reserve note clearing. Credits 144,500 200 Debits 734,771 2, 733,354 703,138 670,703 603.855 358; 880 1,224,283 542,413 154,567 388,327 257,036 348}123 144,700 8,719,450 6,500 8,274,910 80,100 18,372,935 8,500 17,826,262 Credits 770,336 •2,593,901 716,403 681,608 601,406 385,059 1,254,307 552,667 167,228 ' 391,290 265,933 339,312 8,719,450 8,274,910 i 8,372,935 17,826,262 Debits Credits 4,792 2,347 6,992 12,559 5,474 3,818 6,545 3,077 2, 936 ' 2,970 3,450 3,434 3,257 5,838 1,003 2,160 1,774 869 1,993 1,529 1,331 1,366 2,611 2,191 42,158 45,510 42,158 45,510 Changes in owners h i p of g o l d through transfers Balance and settlements in fund at close of period Decrease Increase 5,563 15,415 3,837 244 42,231 67,290 17,620 10,414 4,609 27,605 2,611 1,499 2,932 67,290 48,265 189,259 51,541 46,179 30,280 32,165 153,209 16,067 19,946 41,450 21,814 37,927 688,102 688,124 624,267 §78,549 INDEX Acceptances: Held and purchased by Federal reserve banks.... — — —-— . . . 284,285 Market for... _„___„______ 228 Agricultural credit banks, loans of 229 Agricultural movements, index of 256 Agriculture, monthly statistics . 230 Annual reports: Bank of Belgium. 260 Federal Reserve Board.„_„_„ 224 Swiss National B a n k . . . . . . 265 Attorney General, opinion of, on eligibility of an officer or employee of a mutual savings bank to serve as a class B or G director of a Federal reserve b a n k . . . . . _ — ____ 253 Automobile industry._ . ... 239 Bank debits.---.. 295 Bank of Belgium, annual report of 260 Bank suspensions: During February.__ 245 During years 1924 and 1925 247-250 Bankers' balances in Federal reserve bank cities.. —— — —287 Banking situation, discussion of 221 Brokers, loans to __ _-_. . 287 Building statistics.. „ 240, 257 Business and financial conditions: Abroad . — 272-278 United States. _„__„...___„___ 226-244, 255-259 Business failures . 244 Business indexes.of the Federal Reserve Board, 227 Canada: Cost of living and retail food prices 278 Financial statistics._—- _ 272 Foreign trade_„_„_. „ . 275 Wholesale prices......___..._______ — — 276 Capital issues .. 228 Chain stores, retail trade of — _ ___ 259 Changes in membership in Federal reserve system during 1925 292-294 Charters issued to national banks 254 Coal and coke production 235 Commercial failures-_.__ . _ _ _ 244 Commodity movements 257 Condition statements: All stock banks in the United States on December 31, 1925 __ 289-291 Federal reserve banks 279-282 Member banks in leading cities _„ 286 Cost of living in principal countries. 278 Cotton: Raw.-.---,..,-. ——._.._-. 232 Manufacturing....... .._„„ 238 Currency in circulation. __._„.__„. 298 Dairy p r o d u c t s . . . . . ... _._„-._ 235 Debits to individual apcount. _-___„ 295 Department-store business . _. 259 Deposits, time and demand, of member banks. _ 288 Deposits, note circulation, and reserves of Federal reserve banks 279 Director of Federal reserve bank, eligibility of officer or employee of mutual savings bank to serve as_ . 253 Discount and open-market operations of Federal reserve banks„ . _„___.„ 285 302 : Discount rates: Page Central banks of issue 274 Federal reserve banks 301 Prevailing in various centers__________ 296 Earning assets of Federal reserve banks. 284 Employment, United States 243 Index of _• 255 Factory employment and pay rolls, index of 256 Failures: Bank— During February •_• .__ 245 During years 1924 and 1925 __ 247-250 Commercial 244 Federal intermediate credit banks: Eligibility of notes for rediscount 252 Loans and discounts. _ 230 Federal reserve banks: Condition of ___ 279-282 Discount and open-market operations, 285 Federal reserve note account 283 Fiduciary powers granted to national banks. 254 Financial statistics for principal foreign countries 272-274 Food manufacturing • 237 Food prices in foreign countries 278 Foreign exchange 246, 300 Foreign trade: Principal foreign countries 275 United States-. 245,275 France: Cost of living and retail food prices _ 278 Financial statistics...: 272 Foreign trade 275 "Wholesale prices 276,277 Fruits-and vegetables _ _ _. 233 Germany: Cost of living and retail food prices 278 Financial statitistics ._ 272 Foreign trade . 275 Wholesale prices 276, 277 Gold imports and exports 246, 299 Gold reserves of principal countries, 1913-1925270 Gold settlement fund transactions 301 Governors of Federal reserve banks, meeting of 224 Grain and flour 231? 237, 257 Great Britain: Financial statistics 272 Foreign trade _ 275 Gold imports and exports 246, 299 Retail food prices and cost of living 278 Wholesale prices 276, 277 Imports and exports: Gold and silver..._____________________ 246, 299 Merchandise. ____ !__ 245 Industrial activity, index of :_____ 256 Interest rates prevailing in various centers 228, 296 Iron and steel manufacturing.„_. 239 Italy: Financial statistics . 272 Foreign trade ... 275 Retail food prices and cost of living ... 278 Wholesale prices . .. ..... 276 Japan: Financial statistics.—_-«. .... 272 Foreign trade 275 Wholesale prices _: _„ 276 INDEX 803 Prices—Continued. Page Law department: Security.229 Opinion of Attorney General on eligibility, Wholesale.244,276 of trustee, officer, or employee of mutual Production in basic industries, index of. 226, 255 savings bank to serve as class B or G direc__„_ 279 tor of a Federal reserve bank 253 Reserve ratio of Federal reserve banks Leather industry 240 Reserves, gold, of principal countries, 1913-1925. 270 Livestock industry 234 Resources and liabilities: All stock banks in the United States 289-291 Loans to brokers and dealers in securities. 287 Federal reserve banks.—__279-282 Lumber industry __ 240 Member banks in leading cities. 286 Mail-order houses, retail trade of 259 Rulings of the Federal Reserve Board: Manufacturing: Eligibility for discount of factors' notes Condition, by industries. . 237 covering advances to producers of eggs, Index of production 256 poultry, and butter 251 Maturity distribution of bills and certificates of Eligibility for rediscount at a Federal reindebtedness 282 serve bank of notes made or indorsed by Member banks: a Federal intermediate credit bank when Condition of __-_ 286, 289 offered by a member bank 252 Deposits, time and demand _ 288 Number discounting 285 Retail food prices.278 Number in each district 285 Retail trade -___ 243, 259 State banks admitted to system .__ 254 Security prices .___ 229 Membership in Federal reserve system, changes Shoe industry. ___„„___ 240 in, during 1925___ _ _ _ _ _ _ _ _ 292-294Silver: Merchandise trade balance of the United States245 Imports and exports 299 Mineral production, index of _ _ 258 Price of., , ___-_-_ 300 Metals _ 237 State banks: Mining_____ 235 Admitted to Federal reserve system 254 Money in circulation 298 Condition of, on December 31, 1925 291 Money rates, 228, 296 Stocks at department stores 259 Swiss National Bank, annual report of 265 Mutual savings bank, eligibility of officer or employee of, to serve as a class B or C director of Textile industry ___ — ,_ . 238 __ 288 a Federal reserve bank 253 Time deposits of member banks. Tobacco industry „__ . 233,257 National banks: Charters issued to _ 254 Trade: Foreign 245, 275 Fiduciary powers granted to 254 Retail _• - 243,259 Nonmember banks, condition of 289 Wholesale________-____-_-~--_242, 258 Par list, number of banks on_ 298 242, 257 Pay rolls in factories, index of_ 256 Transportation. finance 224 Petroleum industry _: 236 Treasury Wholesale prices -. 244, 276 Prices: 238 Food, in principal countries 278 Wool and woolen industry MHEAP0L1S > DALLAS® TEXAS BOUNDARIES, OF FEDERAL RESERVE' DISTRICTS —-"•BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES ® FEDERAL RESERVE BANK CITIES • - ' FEDERAL RESERVE BRANCH CITIES © FEDERAL RESERVE BANK AGENCY O