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FEDERAL RESERVE
BULLETIN

APRIL, 1930

ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

Lower Money Rates and the Banking Situation
Condition of All Banks in the United States
Branch, Chain, and Group Banking
Gold Holdings of Principal Countries
Final Act of The Hague Conference

UNITED STATES
GOVERNMEiNT PRINTING OFFICE
WASHINGTON: 1930

FEDERAL RESERVE BOARD
Ex officio members:

ROY A. YOUNG, Governor.
EDMUND PLATT, Vice Governor.

A. W. MELLON,

Secretary of the Treasury, Chairman.
J. W. POLE,

Comptroller of the Currency.

ADOLPH C. MILLER.
CHARLES S. HAMLIN.
GEORGE R. JAMES.
EDWARD H. CUNNINGHAM.

WALTER WYATT, General Counsel.

WALTER L. EDDY, Secretary.

E. M. MCCLELLAND, Assistant Secretary.
J. C. NOELL, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.

E. A. GOLDENWEISER, Director, Division of Research
and Statistics.
CARL E. PARRY, Assistant Director, Division of Research
and Statistics.
Chief, Division of Examination, and Chief Federal
E. L. SMEAD, Chief, Division of Bank Operations.
Reserve Examiner.

FEDERAL ADVISORY COUNCIL
District No. 1 (BOSTON)
District No. 2 ( N E W YORK)
District No. 3 (PHILADELPHIA)
District No. 4 (CLEVELAND)
District No. 5 (RICHMOND)
District No. 6 (ATLANTA)
District No. 7 (CHICAGO)
District No. 8 (ST. LOUIS)
District No. 9 (MINNEAPOLIS)
District No. 10 (KANSAS CITY)
District No. 11 (DALLAS).
District No. 12 (SAN FRANCISCO)

HERBERT K. HALLETT.
W M . C. POTTER.
L. L. R U E .
HARRIS CREECH.
JOHN POOLE.
J. P. BUTLER, Jr.
FRANK O. WETMORE, President.
W. W. SMITH.
G E O . H. PRINCE.
W. S. MCLUCAS.

B. A. MCKINNEY, Vice President.
___ F. L. LIPMAN.

WALTER LICHTENSTEIN, Secretary
II

OFFICERS OF FEDERAL RESERVE BANKS
Deputy governor

Governor

Chairman

Federal Reserve Bank of—

W. P. G. Harding.
Geo. L. Harrison

__ i W. W. Paddock
\ L. F. Sailer
1
E. R. Kenzel
A. W. Gilbart
L. R. Rounds
J. E. Crane
Walter S. Logan

Boston
New York..

Frederic IT. Curtiss
J. H. C a s e . - . . .

Philadelphia..

R. L. Austin

Geo. W. Norris

Wm. IT. Hutt

Cleveland

George DeCamp

E. R. Fancher

Richmond

Win. W. Iloxton

George J. Seay

Atlanta

Oscar Newton..

Eugene R. Black

Chicago.

Win. A. Ileath-

J. B. McDougal

M. J. Fleming
Frank J. Zurlinden..
C. A. Peple
R. II. Bfoaddus
Hugh Foster
Creed Taylor
C. R. McKay
J o h n H . Blair

St. Louis

Rolla Wells

Wm. McC. Martin

Minneapolis

John R, Mitchell

W. B. Geery

Kansas City...

M. L. McClure

W. J. Bailey

Dallas

C. C. Walsh

Lynn P. Talley.

San Francisco .

Isaac B. Newton..

Jno. U. Calkins.

I O. M. Attebery.

n a r r y Yaeger
H. I. Ziemer
C. A. Worthington.
J. W. Helm....
R. R. Gilbert
R. B. Coleman
Wm. A. D a y . . . .
Ira Clerk
2

Assistant deputy governor.

Cashier
W. Willett.
J. W. Jones.i
Ray M. Gidney.i
W. B. Matteson.i
C. IT. Coe.i
J. W. Jones.i
j ; M. Rice.1
Allan SprouU
C. A. Mcllhennv.
W. G. McCreedy.2
IT. F. Strater.
Geo. H. Keesee.
John S. AValden, jr.2
M. W. Bell.
W. C. Bach in an. 2
K. C. ChildsJ
J. H. Dillard.2
D. A. Jones.*
O. J. Netterstrom. 2
A. II. Haill.2
S. F. Gilmore.2
F. N. Hall.2
G. 0. Ilollocher.*
C. A. Schacht.2
Gray Warren.
Frank C. Dunlop. 2
J. W. Helm.
Fred Harris.
W. 0. Ford.i
Wm. M. Hale.

Controller.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
New York:
Buffalo branch
Cleveland:
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Charlotte 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

R. M. O'Hara.
C. F. McCombs.
J. C. Kevin.
. A. H. Dudlev.
_. Hugh Leach.
Marcus Walker.
W. S. McLarin, jr.
A. E. Walker.
J . B . Fort, jr.
W. R. Cation.
_ W. P. Kincheloe.
W. II. Glasgow.
A. F. Bailey.

Federal Reserve Bank of—

Managing director

Minneapolis:
R. E. Towle.
Helena branch
Kansas City:
L. IT. Earhart.
Omaha branch
J. E. Olson.
Denver branch
C. E. Daniel.
Oklahoma City branch
Dallas:
El Paso branch
J. L. Hermann.
W. D. Gentry.
Houston branch
M. Crump.
San Antonio branch
San Francisco:
W. N. Ambrose.
Los Angeles branch
_
Portland branch.
_.. R . B , West.
W. L. Partner.
Salt Lake City branch
C. R. Shaw.
Seattle branch
D. L. Davis.
Spokane branch
_

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. 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
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25 cents.

TABLE OF CONTENTS
Page

Review of the month—Lower money rates and the banking situation
Decline in money rates—Rates charged to customers—Causes of rate decline—Decreased demand
for reserve-bank credit—Decline in member-bank discounts—Member-bank credit.
Branch, chain, and group banking
Gold holdings of principal countries at the end of 1929
Final act of the Hague Conference
Condition of all banks in the United States on December 31, 1929

144-157, 258-266
170
172-249
143, 270-273

National summary of business conditions

158

Financial, industrial, and commercial statistics:
Reserve bank credit and factors in changes
Analysis of changes in monetary gold stock
Gold movements to and from United States
Member bank borrowings at Federal reserve banks
Discount rates and money rates
Member bank credit
Bankers' acceptances and commercial paper outstanding
Brokers' loans
Security prices, security issues, and building contracts
Production, employment, car loadings, and commodity prices
Industrial production and building
Factory employment and pay rolls

159, 160
160
160
161
161, 162
163
163
163
164
165
166
167

Banking and business conditions in Federal reserve districts:
Reserves, deposits, note circulation, and reserve percentages of Federal reserve banks
Discounts of Federal reserve banks
Bank debits
Building
Department stores—Indexes of sales and stocks
Commercial failures
Bank suspensions
Financial statistics for foreign countries:
Gold holdings of central banks and Governments
Gold exports and imports
Condition of central banks
Condition of commercial banks
Discount rates of central banks
Money rates
Foreign exchange rates
Price movements
Law department:
Digest of State laws relating to branch banking
Changes in national and State bank membership
Fiduciary powers granted to national banks
Resources and liabilities of Federal reserve banks in detail and Federal reserve note statement
IV

139

168
168
168
169
169
169
169

250
250
251, 252
253
254
254
255
256, 257
258-266
267, 268
268
269

FEDERAL RESERVE BULLETIN
VOL. 16
REVIEW OF THE MONTH

Conditions in the money market eased further in March, both in the United States and
abroad, continuing the moveDecline in money

No. 4

APRIL, 1930

ment

thftt

began

lflflt

O c tober.

At the end of March the decline
in open-market rates from the highest levels
of last year had amounted to more than 2 per
cent in New York, London, and Berlin, and
there was also a marked decline in average
rates charged on loans made directly to regular
customers by banks in the leading cities of all
sections of this country. New York rates on
loans of the most liquid types, including call
loans on securities and credit extended on
bankers' acceptances, reached in March the
lowest levels since 1924, with both acceptance
rates and renewal rates on call money at one
time below 3 per cent. The official discount
rate at the Federal Reserve Bank of New York
was reduced on March 14 from 4 to 3}i per cent,
and in the following week rates at the Cleveland, Philadelphia, and San Francisco reserve
banks were reduced from 4% to 4 per cent.
Discount rates of central banks in important
foreign countries also were reduced in March,
the Bank of England rate being reduced from
4% to 4 and later to 3% per cent, and the rate at
the German Reichsbank from 6 to 5}i and later
to 5 per cent.
Reports covering rates charged customers on
commercial and security loans by banks in Federal reserve bank and branch
cities
indicate that the average
of these rates declined further
in March to the lowest levels in more than a
year. This is brought out by the chart, which
covers the period since January, 1926, with
separate curves for banks in New York City,
banks in other northern and eastern cities,
and banks in southern and western cities.
Customers' rates advanced continuously from

early in 1928 until the third quarter of 1929?
but began to decline in November. The chart
also brings out the fact that this decline, like
the preceding advance, began in New York
City and other cities of the North and East,
and was followed somewhat later by declines
of rates in the southern and western group of
cities; since last December the rates charged
customers have been declining in leading cities
of all sections of the country. From last autumn to the middle of March average rates in
RATES CHARGED CUSTOMERS

1926

1927

1928

1929

1930

Weighted averages of prevailing rates on commercial loans and security
loans. (For explanation see p. 162)

New York City declined by more than 1 per
cent to a level under 5% per cent with some
commercial loans made at 4% per cent, while
in the other cities of the North and East the
rates declined by three-quarters of 1 per cent
to a level under 5K per cent, and in the group
of southern and western cities by about onethird of 1 per cent to a level under 6 per cent.
The sequence of these movements has been in
accord with previous experience. The most
sensitive rates are the rates in the open market,
especially the rates on call loans, bankers' acceptances, and commercial paper. At the time
of a turn in the course of rates these rates are
the first to register either an advance or a de139

140

FEDERAL RESERVE BULLETIN

cline. Continued ease in the open market
spreads in course of time over the other and
less sensitive markets, affecting at first the
rates charged by banks in the principal financial centers to borrowers who are in position
to choose between banks from which to borrow or obtain funds in the open market, and
later spreads to other borrowers and other
centers, first in the North and East and later
in the South and West.
Easier conditions in the money markets of
the United States in recent months have been
caused in part by Federal redeclines ° Fa e s e r v e policy as expressed in rate
reductions and in open-market
purchases of securities and in part by a decrease in the demand for funds since the
OF DOLLARS

BILLIONS OF DOLLARS

MEMBER BANKS IN LEADING CITIES

I ! ! I
"ALL OTHER" LOANS

APRIL, 1930

course of these loans since 1927 and brings out
the fact that the decline in their volume in
February and March carried them below the
levels of 1929 and 1928, and only slightly above
the level of 1927.
Decreased demand for commercial credit at
the member banks has been accompanied by
^
, ,
a continuous reduction in the
Decreased de-

mand for recredit b a n k

demand lor reserve-bank credit.
The
PrinciPal f a c t o r i n t h i s
reduction has been the decrease
in the demand for currency. Currency began
to return from circulation in large volume this
year, as in other years, immediately after the
cessation of the Christmas holiday demand, but
this year the return flow did not stop in January, as it usually does. In February and March
a certain amount of money usually flows out
into circulation again, but this year, in consequence of inactive trade and a smaller than
usual increase in pay-roll requirements of industry, the volume of money in circulation
continued to decline, by about $50,000,000, and
was at the end of March less than at any other
time since 1922. A chart showing the volume
of money in circulation for several }^ears past is
inserted at this point.
MILLIONS OF DOLLARS

52001

5100

~^~
1

MILLIONS OF DOLLARS

MONEY IN CIRCULATION
:

i52

°°

5100

5000
Jan.

Feb.

Mar. Apr. May June July Aug. 5«pt. Ccf.

Nov

Dec.

October-November break in the stock market. 4900
There has been a large decrease since that
time in the demand for loans to finance trans- 4800
actions in securities, and the reduced volume
of business activity has resulted also in a de- 1*700
crease in the demand for commercial loans.
So-called "all other" loans of reporting mem- 4600
ber ranks, changes in which are due chiefly to
4500
changes in the commercial demand for credit,
began to decline in November and continued 4400 L
Jan. Feb. Mar Apr May June July Aug". Sept OCT. NOV. Dec.
to decline rapidly for more than four months—
W e e k l y averages of daily figures
not only through December and January, when
the seasonal trend is downward, but also in
Another factor in the decrease in the demand
February and March, when it is usual for this for reserve-bank credit and consequently in the
class of loans to increase. The chart shows the easing tendency in the money market, has been

FEDERAL RESERVE BULLETIN

APRIL, 1930

an inflow of gold from abroad. The movement
of gold, which was outward in November and
December and small in January, was inward
in February and March, and there was an increase of $130,000,000 in the country's gold
stock during the two months.
The return flow of currency from circulation
and the imports of gold, together with some
open-market purchases by the
Decline in mem- re serve banks, resulted in a reberbankdis-

counts

auction oi member bank borrowings at the reserve banks to
the lowest level since 1917, with the exception
of a few weeks in 1924 and 1925. Throughout the month of March member banks in New
York City were practically out of debt at the
reserve bank, for the only period of any considerable length since 1924, and the member
banks in Chicago and several other important
cities were also out of debt. For a few days
at the middle of the month the credit situation
was exceptionally easy, especially at New
York, because of a temporary accession of funds
to the market that accompanied Treasury
financing. A slightly firmer situation developed thereafter, but the indebtedness of
member banks at the reserve banks on March 26
continued to be low throughout the country—
below $40,000,000 in the New York and Philadelphia reserve districts, below $30,000,000 in
the Cleveland and Chicago districts, below
$20,000,000 at Boston, Richmond, Atlanta,
St. Louis, and Kansas City districts, $8,400,000
in the San Francisco district, $5,600,000 in the
Dallas district, and $2,200,000 in the Minneapolis district. A chart showing member
bank indebtedness by districts appears at the
end of this review.
As has already been mentioned, the commercial demand for credit at member banks, as
well as the demand for reserveb a n k credit
> h a s b e e n decreasing since last autumn. The
total volume of loans and investments of member banks in leading cities declined almost
continuously from the peak on October 30 to
the low point of February 26. Beginning with
the last week in February, however, the total

141

volume of credit of these banks began to increase rapidly and at the end of March was
about $560,000,000 larger than a month earlier.
This increase consisted in part of a growth of
investments, particularly at the time of the
March 15 Treasury financing. The principal
growth of member bank credit, however, was
in loans on securities, which increased by
$540,000,000 between the end of February and
the end of March. This growth in security
loans represented an increase in loans to brokers
and dealers by the member banks. Brokers'
loans by reporting member banks in New York
City for their own account and for out-of-town
banks were at their low point on January 22,
when their total was $1,688,000,000. Between
that date and April 2, these loans to brokers by
domestic banks increased by approximate!}^
$1,000,000,000. During the same period brokers7 loans for account of corporations and individuals, as well as foreign banks, declined by
$340,000,000, so that the total increase in
brokers' loans was $625,000,000. The considerable growth in brokers' loans during the
past two or three months, which has accompanied an advance in security prices, has therefore
been financed entirely by the banks, and particularly by the New York banks for their own
account. Brokers' loans by the New York
banks on April 2 were, in fact, at the highest
figure on record, with the exception of the few
days immediately following upon the stockmarket break last October. Nonbanking lenders, on the other hand, have continuously withdrawn funds from the market since the last
week in October, and the volume of their
brokers' loans placed through New York reporting banks is now lower than at any other time
in nearly two years.
The banking system, therefore, entered
upon the second quarter of 1930 with a volume
of member-bank credit that had shown an
upward movement during the last month,
but was still at approximately the same level
as a year earlier. As compared with a year
ago, member-bank loans on securities showed
a considerable increase, while all other loans
were much lower and investments also showed

142

FEDERAL RESERVE BULLETIN

a substantial reduction. The volume of reserve-bank credit early in April was at the
lowest point since the middle of 1927. The
system's holdings of acceptances were somewhat higher than a year ago, and its holdings

APRIL, 1930

of Government securities were more than
$300,000,000 higher. Discounts for member
banks, on the other hand, were about $800,000,000 lower than last year, and with one exception
were at the lowest point since before the war.

FEDERAL RESERVE BANK DISCOUNTS-BY DISTRICTS
MILLIONS OF DOLLARS

1326

MILLIONS OF DOLLARS

-.(..Weekly report date figures )

1927

1928

1929

1930

1926

300

1927

1928

1929

1930

143

FEDERAL RESERVE BULLETIN

APRIL, 1930

Governor W. P. G. Harding, of the Federal
Reserve Bank of Boston, died on April 7, 1930.
Governor Harding was a member of the Federal
Reserve Board from its organization in 1914 to
1922, and was its governor from 1916 to 1922.
Since that time he has been governor of the
Federal Reserve Bank of Boston.

March 14.—Bank of Poland, from 8 to 7 per cent.
March 20.—Bank of England, from 4 to 3 ^ per cent.
March 21.—Bank of Norway, from 5 to 4J4 per cent.
March 22.—Austrian National Bank, from 6% to 6
per cent.
March 25.—Netherlands Bank, from Qfa to 3 per
cent; German Reichsbank, from 5% to 5 per cent.
March 29.—National Bank of Hungary, from 6 £ to
6 per cent.
April 3.—Imperial Bank of India, from 7 to 6 per
cent; Bank of Sweden, from 4 to 3J4 per cent; National
Bank of Switzerland, from 3}i to 3 per cent.

Changes in Discount Rates and Bill Rates

Condition of All Banks in the United States on December 31, 1929

The discount rate on all classes and maturities of paper was reduced from 4 to 3K per cent
at the Federal Reserve Bank of New York,
effective March 14; and from 4% to 4 per cent
at the Federal Reserve Bank of Cleveland,
effective March 15; at the Federal Reserve
Bank of Philadelphia, effective March 20; and
at the Federal Reserve Bank of San Francisco,
effective March 21.
At the Federal Reserve Bank of New York
buying rates on bills of all maturities were
successively reduced during February and
March as shown in the following table:

Total loans and investments of all banks in
the United States—including national banks,
State banks, trust companies, mutual and stock
savings banks, and private banks under State
supervision—increased by $151,000,000, or 0.3
per cent, during the year ending December 31,
1929, according to figures that have recently
become available. This increase brought the
total loans and investments of all banks to the
level of $58,417,000,000. The growth of $151,000,000 reflected an increase of $250,000,000
for member banks and a decrease of $99,000,000
for nonmember banks.
The entire increase in bank credit, both
inside and outside the Federal reserve system,
occurred in loans, as shown by the accompanying table. The banks' investment holdings

Death of Governor Harding

; 1 to 15
days

Date effective

In effect Feb 1
Feb. 11
Feb. 24
Mar. 5
Mar. 6.
Mar. 11
Mar. 14
Mar. 17. ...
Mar. 19
Mar. 20.
1

10 to 45 ' 40 to 120
(lays
'•• d a y s
3J6 :

4
1

356
3V&
3H
3

3H!
3^i

121 to 180
days
4H

ALL BANKS IN THE UNITED STATES

3H
3ii
3

4
3%

[Figures for end of December. Amounts in millions of dollars]

1929

Increase c r decrease
1928

Amount

Per cent

Rate of 3J4 on maturities of 91-120 days.

Changes in Foreign Central Bank Discount Rates

The following changes have been made since
the first of February in the discount rates of
central banks in foreign countries:
February 5.—German Reichsbank, from 6J4 to 6 per
cent.
February 6.—Bank of England, from 5 to 4% per cent.
February 10.—Bank of Java, from 5>72 to 5 per cent.
February 11.—Austrian National Bank, from 7 to
6% per cent.
February 13.—National Bank of Hungary, from 7 to
6}^ per cent.
March 3.—Bank of Italy, from 7 to 6H P e r cent.
March 6.—Bank of England, from 4}£ to 4 per cent.
March 7.—Danish National Bank, from 5 to 4}£ per
cent; Bank of Netherlands, from 4 to 3K per cent;
Bank of Sweden, from 4.]^ to 4 per cent.
March 8.—German Reichsbank, from 6 to 5}^ per
cent; Bank of Danzig, from 6 to 5}'2 per cent.
March 10.—Bank of Java, from 5 to 4}^ per cent.
103025—30

Loans and investments:
All banks
Member banks _. _
Nonmember banks
Loans:
All banks
Member banks
Nonmember banks
Investments:
All banks
Member banks
Nonmember banks

58, 417
35, 934
22,483

58, 266
35, 684
22, 582

151
250
-99

0.3
.7
-.4

41, 898
26,150
15, 748

40, 763
25,155
15, 607

1,135
995
141

2.8
4.0
.9

16, 519
9, 784
6, 735

17, 504
10, 529
6,975

-985
-745
-240

-5.6
-7.1
-3.4

continued the decline which began in the middle of 1928, and at $985,000,000 at the end of
the past year were 5.6 per cent smaller than on
December 31, 1928. Investments of member
banks decreased 7.1 per cent during the year,
and investments of nonmember banks decreased 3.4 per cent.
More detailed compilations of the principal
resources and liabilities of these banks, by
Federal reserve districts and by States, are
given on pages 270-273 of this BULLETIN

144

FEDERAL RESERVE BULLETIN

APRIL, 1930

BRANCH, CHAIN, AND GROUP BANKING: DECEMBER, 1929
Compilations by the board covering branch, State banks are permitted under State law and
chain, and group banking developments at the national banks under Federal law to establish
end of 1929 are presented in detail for States in branch offices has not changed materially in
general tables on pages 151 to 157 of this issue recent years. Within this area state-wide
of the BULLETIN, indicating changes during the branch banking, which has developed most
last half of the year, and also, in so far as data extensively in California, has shown considerare available, during the period following and able development also in Maryland, North
preceding passage of the McFadden Act early and South Carolina, Rhode Island, and Virginia
in 1927. In these tables the number of na- In several other States of the branch-banking
tional, State member, and nonmember banks area—New York, Michigan, Ohio, Pennsyland banking offices in the several States vania, New Jersey, Massachusetts—in which
affiliated in branch, chain, and group systems, the establishment of branches is restricted to
and the number of independent unit banks of the home city of the parent bank or territory
these classes is shown, together with aggregate nearly contiguous thereto, a considerable development of urban or local branch systems has
loans and investments.
Branch-banking developments during the been in evidence for several years past.
Comparison of figures compiled for June
last half of 1929.—On December 31, 1929, 822
of the 24,630 banks* of all classes in the country with those for December, 1929, indicates a conwere operating 3,547 branch offices, including tinuance of branch-banking developments dur119 banks operating 1,415 branches which were ing these six months at about the same rate of
also reported as affiliated in chain or group increase as during the past three years. In this
systems. Banks operating branches at the end half year the number of banks operating
of 1929 included 166 national banks operating branches increased by 4 and the number of
1,027 branches; 180 State member banks oper- branch offices by 107. Only inconsiderable
ating 1,299 branches; and 476 nonmember increases were, however, shown for some of the
banks operating 1,221 branches. Loans and principal branch-banking States, the number
investments of these banks totaled $25,000,- of branches of the California banks increasing
000,000, of which over $20,000,000,000 was only from 861 in June to 863 in December, and
reported from States which permit branches of Michigan banks from 433 to 439. More
only in the city in which the parent bank is considerable increases are reported for New
located or territory contiguous thereto, and in York, Ohio, Pennsylvania, and Massachusetts.
which accordingly branch banking is carried on
Although the number of branch systems
only in local urban or home-city systems. increased by only 4 during the last half of the
Nearly $11,000,000,000, or more than half of year, 36 banks w^hich were not operating
this $20,000,000,000, was reported from the 71 branches in June, were operating branches in
banks operating 580 branches in the city of December. This addition of 36 to the number
New York. A majority of these New York of branch systems was offset in large part by
City banks were, however, operating only one a decrease of 25 through merger procedures, a
or two branch offices each in the city. Approx- decrease of 6 as a result of suspension of operaimately $4,000,000,000 of loans and invest- tions of the parent bank, and a decrease of 1
ments was reported from banks operating by discontinuance of branches.
branches in the nine States which permit stateThe increase of 107 in number of branches
wide branch banking. This aggregate included also is a net increase covering 163 branches
nearly $2,700,000,000 reported for the 53 established during the six months7 period—82
branch systems operating 863 branches in de novo as branches, and 81 by conversion of
California, and about $1,300,000,000 from the banks into branches—and the discontinuance
8 remaining States which permit development of 56 branches, partly by merger with other
of branch systems on a state-wide basis, and branches, and in the case of 7 branches following
in which 151 banks (in a total of 1,567 banks suspension of parent banks.
of all classes) were operating 399 branch offices.
The number of banks operating branches,
A large majority of these banks, also, as well as and the number of their branches on June 30
the banks operating branches in California, and December 31, 1929, and for February 25,
were operating only one or two branch offices. 1927, and June 30, 1924, are shown, by States,
The branch-banking area, comprised of 21 in Tables 2 and 3.
States and the District of Columbia, in which
Branch banking developments since passage
of
McFadden Act.—Branch banking develop1
Based on abstracts of condition reports covering national and State
ments since February, 1927, when the McFadbanks for Dec. 31 or nearest available date, as shown on pp. 270-273.

APRIL, 1930

den Act became effective, have been principally
in the building up of urban branch systems.
In the period of approximately two years and
10 months from February 25, 1927, to December 31, 1929, the number of home-city branches
in the country as a whole increased from 1929
to 2,432, or by 503, and the number of branches
located outside the home city of the parent
bank from 971 to 1,115, or by 144. During
this period 120 branch systems were merged
with other banks, 15 suspended operations, and
28 (of which 26 operated only 1 branch and 2
operated 2 branches each) discontinued all
branches. These decreases were more than
offset by 206 banks which initiated branch
banking during the period, giving a net increase of 43 in the number of branch systems.
Of the 2,900 branches in operation in February, 1927, 224 were discontinued or merged,
with other branches during the period, including 30 discontinued following suspension of
parent banks, and 871 branches were established—511 de novo as branches and 360 by
conversion of banks into branches.
In this period, also, the classification of
branches operated by national and by State
member banks was materially affected by
nationalization of large State-bank systems in
California, either directly or by merger with
existing national banks. These procedures
account largely for the increase in the number
of branches of national banks from 390 in
February, 1927, to 1,027 in December, 1929,
and for the decrease in number of branches
of State member banks from 1,560 to 1,299.
In the same period nonmember bank branches
increased from 950 to 1,221.
Principal branch banking States and cities.—
At the end of 1929 branches were in operation
in 29 States and the District of Columbia—
1,286 in the 9 States and the District of
Columbia which permit state-wide branch
banking, 2,207 in the 12 States which restrict
the establishment of branches to the home city
of the parent bank or territory nearly contiguous thereto, and 54 in 8 States in which
the further extension of branch banking is
prohibited by State law. Two-thirds of the
3,547 branches in operation in December
were located in 5 States—California, New
York, Michigan, Ohio, and Pennsylvania—
and in each of 4 other States—Massachusetts,
New Jersey, Louisiana, and Maryland—more
than 100 branches were in operation.
Of the 2,432 home-city branches, 1,659, or
more than two-thirds, were located in 10 cities,
the number of such branches in each of these
cities being as follows:

145

FEDERAL RESERVE BULLETIN
New York
Detroit
Los Angeles
Philadelphia
San Francisco

580
i 309
201
133
1
97

' Cleveland
| Buffalo...•_
j Boston
, Baltimore
! Cincinnati

85
73
66
65
1
50

Size of branch systems.—At the end of the
year, 18 banks were operating each more than
30 branches, including six California systems,
one of 287 branches, and 5 of 160, 139, 94, 56,
and 31 branches, respectively. Three Detroit
banks were operating 94, 33, and 31 branches,
respectively; 7 New York City banks were
operating each from 33 to 67 branches; 1 Cleveland bank was operating 57; and 1 Buffalo
bank 33 branches. These larger branch systems represent in man}^ cases a succession of
mergers of smaller branch systems or of conversion into branches of independent banks.
All but 2 of these 18 banks were members of
the Federal reserve system.
It was still true in December, however, as at
earlier dates, that a large majority of the banks
operating branches in the country as a whole
were operating only 1 or 2 branches each. Of
the 822 banks operating branches, 448, or more
than half, were operating only 1 branch each,
150 were operating 2, and 124 were operating
3 to 5 branches each, the proportion of small
systems being not materially different from the
proportion shown in February, 1927.
Rural branches.—Of the 1,115 branches
located outside the home city of the parent
bank, 612 were located in places of less than
2,500 population; 136 in places of 2,500 to
5,000; 86 in places of 5,000 to 10,000; and 281
in places of over 10,000. The 281 outside
branches located in places of over 10,000 population represented largely branches of statewide California systems with head offices in
Los Angeles and San Francisco operating
branches in other large cities of the State.
The number of branches located in places of
less than 2,500 increased by 40 in the period
from June, 1928, to December, 1929.
Method of establishment of branches.—
More than two-thirds of the branches in operation in February, 1927, were offices which had
been established de novo as branches, the remaining branches representing largely conversions of independent banks into branches,
although in some instances the method of
establishment was not ascertained. In the
period from February, 1927, to December, 1929,
the number of de novo branches increased by
383—from 1,996 to 2,379—and the number of
branches representing conversions of banks
increased by 282—from 735 to 1,017, the method
» Exclusive of branches whose head offices were located in other cities.

146

FEDERAL RESERVE BULLETIN

APRIL, 1930

The number of banks of all classes in the
of establishment in the case of 151 offices not
country as a whole decreased in the period from
having been ascertained.
Suspension or failure of branch systems.— June, 1924, to the end of February, 1927, by
During the 9-year period 1921-1929, 41 branch 2,023. For the 21 States and the District of
systems operating a total of 80 branches sus- Columbia comprising the branch-banking area,
pended operations, with total deposits of the decrease amounted to 506, and in this area
$49,000,000. Five of these systems were subse- the number of branch offices increased in the
quently reopened, and later one of these was same period by 614, giving a relatively small
again closed. Of the 41 systems, 29 were oper- increase in the total of banking offices for the
ating 1 branch each, six 2 branches each, two 3, area, from 13,002 to 13,110. Outside this area
two 4, one 5, and one 20 branches. Ten of these the decrease of 1,517 in the number of banks
banks, operating a total of 18 branches, with was, of course, not offset by any extension of
deposits of $20,000,000, suspended operations branch systems. In the period of approxiduring 1929, one of these 10 operating 2 branches mately equal duration from February, 1927,
with deposits of $5,882,000 being later reopened. when the McFadden Act went into effect, to
Banking offices.—Branch-banking develop- the end of December, 1929, the number of
ments may involve some reduction in the num- banks in the country decreased further by 2,343,
ber of corporately independent banking insti- the decrease within the branch-banking area of
tutions without involving a corresponding 623 being relatively as well as absolutely less
reduction in the number of banking offices than the decrease of 1,720 outside this area, and
serving the public; as, for example, in case a being more than offset by an increase of 647 in
bank is acquired by a branch system and con- the number of branch offices. In the State of
verted into a branch office, or where a branch California the number of banks fell off in each
office is established de novo as a branch in place of these periods, the decrease being more than
of a bank which has closed its doors. In some offset in the first period and nearly offset in the
States'increase in the number of branches in second period by increase in the number of
recent years has partially offset a decrease in branch offices, so that the total number of
the number of corporately independent banks, banking offices increased in the first period from
as may be seen from the following table sum- 1,213 to 1,316 and fell off slightly in the second
marizing changes in the number of banking period to 1,300 at the end of December, 1929.
offices, in and outside the branch-banking area, In other States of the branch-banking area,
decreases and increases in the number
in the periods before and following passage of however,
of banks and of branches have been in varying
the McFadden Act early in 1927.
proportions, and no close correspondence has
In New York, for example,
BANKING OFFICES—INCREASE OR DECREASE (—) IN been in evidence.
THE NUMBER OF OFFICES IN AND OUTSIDE THE where the increase in number of branch offices
BRANCH-BANKING AREA: 1924-1929
since the passage of the McFadden Act has
been double the increase shown for California,
Nuinber of b a n k i n g
Increase
or
decrease
(—)
offices
the number of banks has remained nearly
Date and area
Total Banks Branches Total 11 Banks Branches constant, and this is true also of Michigan,
the third State in number of branches in operUnited States:
31, 289 28,996
ation at the end of December, 1929. In Penn1924, June
2,293
607
1927, Feb. 2 5 - . . 29, 873 26, 973
2,900) - 1 , 4 1 6 ' - 2 , 0 2 3
sylvania
the number of banks decreased over
!
1
,
696
2
,
343
28,177
24,
630
647
1929, Dec. 31. _ .
3,547
the whole period from June, 1924, to December,
Branch banking
area:
1929, by 84, and the number of branches
13,002 10, 770
1924, June
2,232
108
614 increased by 87; in Ohio the number of banks
1927, Feb. 25.._ 13,110 10, 264
2,846
24
1929, Dec. 3 1 . . . 13,134 9,641
3,493
647
fell off by 92, and the number of branches
Outside branch
increased by 65; in New Jersey the number
banking area:
61
1924, June
- 18, 287 18,226
both of banks and of branches increased by
54t - 1 , 5 2 4 - 1 , 5 1 7
1927, Feb. 2 5 . . - 16,763 116, 709
54I - 1 , 720 - 1 , 720
1929, Dec. 3 1 . . . 15,043 14, 989
89 and 82, respectively; in Massachusetts the
California:
number
of banks increased by 2 and the num1,213
675
538
1924, June
1554
762
-121
ber of branches by 63; and in Maryland the
103
224
1927, Feb. 2 5 . . . 1,316
437
863
-16
-117
1929, Dec. 31. __ 1,300
101
number of banks fell off by 20 and the number
Michigan:
of branches increased by 36. The number of
718
1,050
332
1924, June
1739
401
1927, Feb. 2 5 . . . 1,140
banking offices at the end of December, 1929,
743
439
1929, Dec. 3 1 . . , 1,182
is given, by States, in Table 4. On this date
New York:
1,482
1,120
362
1924, June
approximately one-eighth of the total banking
517
32
187
155
1927, Feb. 2 5 . . . 1,669 i 1,152
offices in the country as a whole were branch
1,849
1,127
722
180
205
1929, Dec. 3 1 - - .
-25
offices.
i Mar. 23, 1927.

-623

147

FEDERAL RESERVE BULLETIN

APRIL, 1930

Unit banks and chain, group, and branch ent unit banks of these classes at the end of

systems.—Chain or group banking developments are not reflected in changes in the number of banks, since these developments represent affiliation of corporately independent institutions usually through stock ownership control, by an individual or group of individuals,
a bank or a holding company. The grouping
up of bank offices of national, State member,
and nonmember banks in chain, group, or
branch systems, and the number of independ-

December, 1929, is shown in the following
table, which gives a corresponding classification
of loans and investments of banks. In this
table, as elsewhere throughout the board's
compilations, only affiliations of three or more
banks are classified as chain or group systems.
It follows that some single banks classified as
independent unit banks may be affiliated
through stock ownership with other single
banks.

BANKING OFFICES AND LOANS AND INVESTMENTS IN AND OUTSIDE CHAIN, GKOUP, OR BRANCH SYSTEMS, BY
CLASS OF BANK: DECEMBER 31, 1929
Banking offices—banks or branches
In independent branch
systems

In chains or groups
Classen f bank
Total
Banks not
operating
branches

Banks operating
branches
Head
offices

Unit
banks l
Head
offices

Branches

Branches
Number

Total..
Member banks
National
State
Nonmember banks.

28,177
10,848
8,430
2,418
17,329

1,984
855
757
98
1,129

119
83
45
38
36

1,415
1,150
550
600
265

703
263
121
142
440

2,132
1,176
477
699
956

21,824
7,321
6,480
841
14,503

Loans and investments (in millions of dollars)
Total
Member banks
National
State
_..
Nonmember banks.
1

58,417
35, 934
21,584
14,350
22, 483

4,913
3,726
2,825
901
1,186

6,264
5,579 :
3,083
2,496
686

Banks operating no branch ollices, and not affiliated with any chain or group system.

Of the 28,177 banking offices in operation at
the end of December, 21,824, or approximately
three-fourths, were unit banks having no
branches and operating independently of chain
or group systems; 2,103 were banks operating
in chains or groups; 1,415 were branches of
chain or group system banks, and 703 were
head offices and 2,132 were branch offices of
branch systems operating independently of
chain or group-system affiliations. Unit banks
unaffiliated with chain or group systems and
operating no branch offices reported approximately one-half of the loans and investments of
all banks in the country.
Area of chain and group banking.—While

chain and group banking developments have
not been generally restricted by provisions in
State banking codes, the area within which
these developments have been relatively more

(2)
(2)

(2)
(2)
(2)
2

18,839
13,354
5, 906
7,448
5, 484

(2)
(22)
(2)
(2)

()

28,401
13,275
9,770
3, 505
15,127

Included in figures for head offices.

considerable in extent is composed largely of
States which have prohibited the establishment
of branch banking offices—as, for example, in.
Minnesota, North Dakota, Kansas, Iowa,
Illinois, Oklahoma, and Texas. Developments
of this character have, however, by no means
been restricted to these States. In certain
other States, particularly in several which have
restricted the development of branch banking
to the building up of home-city or local branch
systems, as in Michigan and New York, as well
as in California, which permits state-wide branch
banking, and in Florida, Georgia, and Montana, chain or group banking has shown very
considerable developments. There were in fact
relatively few States in which no affiliation of
banking institutions in chain or group systems
was reported in December, 1929. The area
within which such affiliations have been re-

148

FEDERAL RESERVE BULLETIN

latively predominant, however, comprises the
Central, Middle Western, Northwestern, and
Western States. This chain or group banking
area is in general relatively much more extensive
and less clearly defined than the branchbanking area. Data for banks in and not in
chain or group systems, operating and not
operating branches, are given, by States, in
Tables 5 and 6.
As has been noted above, a number of banks
which operate branch systems, themselves
operate as members of chain or group systems,
and in individual instances these combined
branch, chain, and group systems control very
large resources and an extensive network of
affiliated banks and branch offices operating
in several States and comprising national with
State banks.
Number and loans and investments of chain
or group systems.—At the end of December, a
total of 287 bank chains or groups were in
operation, embracing 2,103 banks, with total
loans and investments in excess of $11,000,000,000 or approximately one-fifth of total loans
and investments of all banks in the country.
Banks operating in chain or group systems on
this date included 802 national, 136 State member, and 1,165 nonmember banks. Changes
during the last half of 1929 are summarized
in the following table:
NUMBER AND LOANS AND INVESTMENTS OF BANKS
OPERATING IN CHAINS OR GROUPS: JUNE AND
DECEMBER, 1929

banks

Loans and investments (millions of
dollars)

Members
of chains
or groups

Total, Members
chains1
all banks orofgroups

Number of
Classfcfbank and date
Total

APRIL, 1930

and to a relatively small number of systems—
one system increasing in this period from 20
to 92 banks, and one from 12 to 78 banks,
while one system not in existence in June was
operating in December 35 banks. Data for
June and December are given, by States, in
Table 7, and for the nine States showing the
more considerable increases, changes during
the last half year are summarized in the following table:
1

;

Number of banks operating in
chains or groups

State
December, 1929
Total...
Minnesota
Michigan
_
North D a k o t a . .
New York
Washington
Arkansas
Montana..
_
Massachusetts
Kentucky
Other States

June,
1929

2,103
308
135
114
102
75
72
45
45
16
1,191

Increase

1,821 !
261;
86 J
100

81 I

59
55
32
33
4
1,110

!
!
!
i
:
!

282
47
49
14
21
16
1 17
13
12
12
81

1
May include some banks not known to be operating in chains or
groups in June.

Size of banking chains or groups.—Chain or
group systems as reported for December, 1929,
are classified by number of banks comprised in
individual systems for States in Table 8. A
summary of this classification is given below:
^T

i. i

•

Number of banks in chain or group system:
3 banks
4 banks
5 banks
6 to 9 banks
10 to 19 banks
20 or more banks
Total

N u m b e r of

systems
64
56
39
86
32
10
287

Of the larger chain or group systems in operation on December 31, a very considerable number comprised one or more banks operating
9,305 branches, and while in a majority of instances
35,934
8,522
938
6,668
756
35, 711
8,707
the banking offices of these systems, including
Nationalhead
offices of banks with their branches, were
5,908
802
21,
584
7,403
December
4,159 located in the same State as the offices of the
21,457
645
7,530
June
controlling agencies, in some instances banks
State3,397
14, 350
136
1,119
December
2,509 and branches of a single system were located in
14, 254
111
1,177
June
several States. One Minneapolis system conNonmember banks:
1,872 trolled banks located in 8 States and in 4 Fed22, 483
1,165
16,108
December
1,632 eral reserve districts, and 1 group system with
22, 763
1,065
16,403
June
head office in New York City, with aggregate
i Based largely on condition figures published in July.
loans and investments in excess of $1,400,000,Increase during the last half of 1929 in the 000 comprised two extensive branch systems in
number of banks affiliated in chain or group California, 1 of 287 and 1 of 160 branch offices,
systems was confined largely to nine States, and 1 branch system of 34 branches located in

All banks:
December
June
Member banks:
December
June

24,630
25,110

2,103
1,821

58,417
58,474

11,177
8,300

149

FEDERAL RESERVE BULLETIN

APRIL, 1930

New York City. The system having the second
largest aggregate of loans and investments comprised 5 banks with 179 branch offices located
in three States—New York, California, and
Pennsylvania. One Detroit system, the third
largest in aggregate loans and investments, controlled 21 banks with 213 branches all located
in the State of Michigan, as were also the
branches of banks comprised in two other
systems with headquarters in Detroit. Detail
of loans and investments and number of banks
and branches is given in an accompanying table
for chain and group systems with loans and
investments in excess of $50,000,000.
CHAINS OR GROUPS WITH LOANS AND INVESTMENTS IN

EXCESS OF $50,000,000: 1929
Number of banking offices Dec. 31,
1929
Loans i!
and
in_
Rank by loans and invest- !
vestments and loca- ments,
I
Banks
tion of controlling
thou- ;
agency and of bank- in
sands
of
;
ing offices controlled dollars: !
!
op-1 Operat- Branches
|To- •: Not
19291 i
erating ! ing
' tal 1 branches! branches]
New York City:
Total
1, 418, 361 500 I
New York
278, 482 35 !
California
1,139, 879 j465
Xew York City:
Total
_"___. 815, 684 il84
!
550,911 181
New York
225, 072
!
California
39, 701
Pennsylvania.
Detroit:
1
Michigan
_. 705,032 ,234 j, 21 !
Boston:
568, 312
Massachusetts...
20
Chicago:
512, 669
Illinois
Pittsburgh:
458, 901
Pennsylvania
6
Buffalo:
!
425,436
13
New York..
|
19
j:
Detroit:
403,996 ;iO9 H 35 i
25
Michigan
Minneapolis:
339, 754 95 ; 92
91
Total
208,180 49 ! 46
45
Minnesota
15,116
Montana
7
7
14, 875 9 i 9
9 |
North Dakota.
22, 213 10 I 1 0
10 j
South Dakota.
35, 358 8 i 8
Nebraska
24,338
4
Iowa
8,973
Wisconsin
10,701
i li I •
Washington...
10. Minneapolis:
339, 267 8 1
77
Total.
252,785 39 jj 36 i
35
Minnesota
53,496 13 , 13 I1
13
Montana
14, 378 15 !! 15 !,
North Dakota.
11
9, 727 11 j 11 i
South Dakota.
3||
Michigan
8,881
Xew York City:
l 3 r
1
New York._
328, 789 74 ;
Chicago:
;
14
14
jj
14
j
Illinois
270,719
Boston:
18 j ! 6 I
5
Massachusetts...
194,642
Chicago:
5
Illinois
171,453
Milwaukee:
17
22 jj 18 \]
Wisconsin
168,466
Pittsburgh:
6
8 ij 7
Pennsylvania,...
167,180
Providence:
2 i
17 |i 3
Rhode Island
153,331
1
Figures based largely on July Bankers Directory.

482
34
448
4

179
78
94
7

I
I

213
7

1
1

3
3

I i

1
1

3
3

1
1

CHAINS OR GROUPS WITH LOANS AND INVESTMENTS IN

EXCESS OF $50,000,000: 1929—Continued
Loans
inRank by loans and in- and
vestvestments and loca- ments,
tion of controlling
agency and of bank- in thouof
ing offices controlled sands
dollars:
1929 1

18. San Francisco:
Total
California
Washington. __
19. Buffalo:
New York
20. Chicago:
Illinois
21. Nashville:
Total
_
Tennessee
Arkansas.
22. Syracuse:
New York
23. Atlanta:
Georgia.
24. Louisville:
Total...
Kentucky
Ohio
25. Jersey City:
New Jersey
26. Kansas City:
Missouri
27. Seattle:
Washington
28. Tulsa:
Total
Oklahoma
Kansas
Texas
_
29. Savannah:
Total...Georgia
South Carolina
30. Detroit:
Michigan.
_.
31. Columbus:
Ohio.
32. Augusta:
|
Maine.._
j
33. Boston:
Massachusetts...
34. St. Paul:
Total
Minnesota
Montana
North DakotaWisconsin

Number of banking offices Dec. 31,
1929
Banks
Not op- Operat- I Branches
erating
ing
tal!j branches
branches1

To-

146,138
145,066
1,072
1

132, 477

2
3

132, 329
131, 308
97,028
34, 280

61
6
55

115, 559

1 :

104,954

97,429
72, 341
25,088

1
1

1 •!

94, 382

82,025

77, 753
76,181
915
657

67, 683
59,951

5
4

i
"""

1"""
20
20

1 ,

19
1

1
2
1
1

10
:)

2 ,

1
2

7
0

3 ,

7,732

11
61, 701

3
61, 302

•t - y

59, 576
55,785

71
52, 932
32,919
1,893
15, 233
2,887

30 !
1 !
32|

Types of banking chains or groups.—Three
types of chain or group systems have been reported, which may be characterized with reference to the controlling agency, as follows:
(1) Instances where control is exercised by
a holding corporation, which has
usually been formed by interests
connected with one or more of the
principal banks belonging to the
system.
(2) Instances where control is exercised by
the principal bank of the system,
either through direct ownership of
stock by the bank, or through ownership by the stockholders or directors of the bank.

150

FEDERAL RESERVE BULLETIN

(3) Instances of ownership of controlling
or substantial interest in a number
of banks by an individual, family,
or group of individuals.

been made to group States with reference to
laws affecting the ownership of bank stock by
holding corporations, so as to show in which
States the growth of chain or group systems
may be retarded under such provisions. A
majority of the States have, in fact, adopted
no laws specifically regulating the development
of chain or group systems. As has been noted,
however, developments of this character have
been more or less affected by provisions in
State laws relating to branch banking, and the
grouping of States wdth reference to their
branch banking regulations has accordingly
some significance for chain or group banking
developments.
State-wide branch banking is permitted in
9 States; the establishment of branches in the
home city of the parent bank or in territory
nearly contiguous thereto is permitted in 10
States; the establishment of any branches,
whatever is prohibited in 22 States; and 7
States have enacted no legislation expressly
either permitting or prohibiting establishment
of branches. In Kentucky, however, which is
included as one of these 7 States, the establishment of additional offices or agencies is permitted under court decisions, and 28 such
offices were in operation in December; and in
Michigan, another of these 7 States, the State
banking department has raised no objection to
the establishment of home-city branches, of
which there were 439 in operation at the end of
1929. The grouping of States with reference
to branch banking provisions in State banking
codes is shown on page 258 of this issue of the

Chain or group systems in the several States
are classified with reference to these types of
control in Table 8. Recent developments have
been conspicuously of the first and second
types noted, and these developments, commonly
utilizing holding companies as controlling
agencies, have been distinguished in some discussions as "group systems/' the designation of
"chain system" being reserved for organizations of the third type. These classifications
by types of control are, however, very general,
since the actual method and agency of control
varies from system to system and may in the
case of any given system be modified from time
to time.
Suspension or failure of banks operating in
chains or groups.—On the basis of the best
information available, which is admittedly unsatisfactory for earlier years, it appears that a
total of 226 banks, with deposits of $102,000,000, reported as belonging to 50 different
bank chains or groups suspended operations
during the 9-year period 1921-1929. Of these
banks 61, with deposits of $35,000,000, were
subsequently reopened.
Classification of States.—In the tables giving
details by States for chain, group, and branch
banking developments, the States have been
grouped with reference to provisions in State
laws permitting, restricting, or prohibiting the
establishment of branches. No attempt has BULLETIN.

APRIL, 193a

FEDERAL RESERVE

APRIL, 1930

TABLE 1.—SUMMARY OF BRANCH BANKING DEVELOP-

MENTS: 1924-1929

Class of bank or branch

I Deo.
I 31,
' 1929

June i Feb. I June
30, 1 25,
30,
192S ; 1927 1924

Number of banks:
j
Total
j 24. (' 3 0 25,115 25,950 !i26,973
818
Operating branches
| 822
835 I
779
164
National banks
166
169 ,
145
190
State bank members.
180
186 !
189
Nonmember commercial banks
407
398
415 I
387
Mutual savings
'|
62
banks
58 |
4
Private banks
7i
Number operating
branches—
Only in home city.__
518
526 !
476
Only outside home
252
city
!
262 J 261
257
Both in and outside j
48
42
47 i
•home city
]
Number of parent banks j
in cities with popula- !
tion of—
I
100,000 or more
__;
50,000 to 100,000
J
25,000 to 50,000.
_,
Less than 25,000
.
Not classified
.

351
81

315

Number operating—
1 branch
2 branches

448
150

3-5 branches
6-10 branches

124
41

11-30 branches
Over 30 branches
Not classified

.
!
:.

Number of branches:
i
Total
'
Of national banks._.;
Of State bank mem- i
bers
..:
Of nonmember com- i
mercial banks
;
Of mutual savings
banks
;
Of private banks

359
84
70 i
305

41
18

372
81
66 I
316 i

353
65
61
300

469
150
126
35
41
14

446
127
124
35
35
12

28,996
714
108
191
387
28

391
283
40

284
108
289
3 33
376
129
176
3 33

3,440
993

3,230
941

2,900
390

2,293
248

1,299

1,298

1,220

1,560

1,137

1,115

1, 046

973

863

908

99
7

86
10

In home city
' 2,432
Outside home city... 1,115
Outside branches in
places with population !
of—
Less than 2,500
612
2,500 to 5,000
- 136
5,000 to 10,000
86
10,000 or over
281

2,362
1,078

2,214
1,016

591
133
84
270

572
128
79
237

2,329
958
153 !

N u m b e r of banks operat-;
ing branches
j

Class of bank or
State

Total
National
State member
State nonmember .
Mutual savings.._
Private

Dec.
31,
1929

June
30,
1929

822

818

1G6
164
180
190
407 i 398
65
62
4 i
4

Numbor of branches

Feb. i June ' Dec.
25, : 30, : 31.
1927 ! 1924 i 192'*

June \ Fob.
30. , 2.".
h)2\) 1927

June
30,
1924

779

714 ,:-i.547 '3.440 12. 900

2. 293

145
189
387 ,
50 |
8

108 ! 1, 027
Wi
191 j 1,299 ,1,295
387 1,115 i 1,046
28
99 • 96

248
1, 137
908
(i)

'• 390
IL, oriO
I 863
|
76

Total
I 216
Arizona
California
Delaware
Dist. of Columbia..
Maryland
North Carolina
,
Rhode Island
I
South Carolina
Vermont
'
7
Virginia
j 39
B R A N C H E S R E S T R I C T E D AS T O L O C A TION
Total
Georgia
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Mississippi
N e w Jersey
N e w York
Ohio
Pennsylvania
Tennessee

! 581
!
!

578 ;

16
16
10 :.
9
42 j 42
24
24
88 j 86
62 j 61
i
11 , 11
55:
53
106 ! 106
55 ! 58
80
81
! 32 ; 31

526

~2T
41
24
79
68
11
14
106
53
82
22

7 J2,207 2.121 1.726 : 1.397
447
2? 39 34 39
53
28
26
13
12
4
34 106 108 106
93
54
61
63 !
47
23
98
61 161 i 154 133
63 439 433 401
332
25
25
11
25
25
21
14 103 103
21
362
77 722 682 517
268
259
231
203
51
67 185 169 131
98
21
67
55
53

ESTABLISHMENT OF BRANCHES PROH I B I T E D BY LAW*
1,929
971

2,214 \

1,996

853 !
163

735
169

1,508
785

- March. 1927.

-c Not separately tabulated; included with "Stale bank nonmembers."
' M utual savings and private banks.

TABLE 2.—NUMBER OF BANKS OPERATING BRANCHES
AND NUMBER OF BRANCHES IN OPERATION, BY
STATES, FOR SPECIFIED DATES

I STATE-WIDE BRANCH BANKING PERMITTED

3, 547
1,027

Number established—
De novo as branches, 2,379
By conversion of ;
banks
1,017
Not reported
151

151

BULLETIN

Total..
Alabama
Arkansas
Florida
Indiana
Minnesota...
Nebraska...
Oregon
Washington..
Wisconsin...

4 I
2 i

4
3
2
1
5
7

62 ii
1 ;
5 i
9'

6 1

8
11

2 ;

1 i
6 !
9!

1
7
&

9
6

2
1
5
9

•

1 Not separately tabulated.
2 Branches reported were established prior to prohibitory legislation.
Other States which have prohibited establishment of branches in which
no branches were in operation include Colorado, Connecticut, Idaho,
Illinois, Iowa, Kansas, Missouri, Montana, Nevada, New Mexico,
Texas Utah, West Virginia. States which have enacted no legislation
respecting branch banking in which, also, no branches were in operation
include: New Hampshire, North Dakota, Oklahoma, South Dakota,
and Wyoming.

152

FEDERAL RESERVE BULLETIN

APRIL, 1930

TABLE 3.—NUMBER OF BANKS OPERATING BRANCHES AND NUMBER OF BRANCHES IN OPERATION, BY CLASS
OF BANK, BY STATES: DECEMBER 31, 1929
Number of banks operating branches

States

Number of branches

State
NonNational member
member

Total

Operated by-

Location i

NonNational State
bank
member
banks members
banks

l
| office city

Total.

822

166

180

3,547 i

476

1,027

1,221

2,432

1,113

475

811

STATE-WIDE BRANCH BANKING PERMITTED
Total

Arizona
California
Delaware
District of Columbia.
Maryland
North Carolina
Rhode Island
South Carolina
Vermont
Virginia
_

216

7 !I

30 !
39 !
11

156

2
5
2

5
36
5
6
25
33
5
6
7
28

6
3
3
2
3

2
3
4
2

1,286
22
863
13 '
24 I
124

526

189 ,

571

480

12
105
2

10
278
11
12
92
66
7
47
10
38

"12"

77 •

35
57 :
10
61 :

"24"
7
26
2

318
3
24

11
16
3
27

22
545
10
56
19
49
10
34

B R A N C H E S R E S T R I C T E D AS T O L O C A T I O N

Total...
Georgia
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Mississippi
New Jersey
New York
Ohio
Pennsylvania.
Tennessee

581

151

16
10
42
24
88
62
11
55
106
55
80
32

2,207

484

39
28
106
63
161
439
25
103
722
268
185

21
10

72
1
33
189 •

19
43 !
25

4
14
35
3
27
309
39
463
167
38

624

1,930

14
4
63
60
71
58
24
31
70
82
104
43

16
25
49
6
142
436
1
93
721
235
176
30

23
3
19
3
24
10
33
38

ESTABLISHMENT OF BRANCHES PROHIBITED BY LAW 1
Total.
Alabama
Arkansas
Indiana
Minnesota..
Nebraska...
Oregon
"Washington
Wisconsin...

27 i

4 !
2 !
2 •

1 Of the 2,432 branches located in head-office cities, 687 were operated by national banks, 1,163 by State bank members, and 582 by nonmember
banks. Of the 1,115 branches located outside head-office cities, 340 were operated by national banks, 136 by State bank members, and 639 by
nonmember
banks.
2
Branches reported were established prior to prohibitory legislation. See note 2 attached to Table 2.

153

FEDERAL RESERVE BULLETIN

APRIL, 1930

TABLE 4.—BANKS IN CHAINS OR GROUPS, OPERATING AND NOT OPERATING BRANCH OFFICES, NUMBER OF
BRANCHES, AND TOTAL OF BANKING OFFICES (BANKS PLUS BRANCHES), BY STATES: DECEMBER 31, 1929
Banks in chains or groups

Banks not in chains or groups

Total
number
Total
Operating
branches
of
Number j!
number ing bankNumber
offices
Number
of banks |
of
!
Total
operating;
operating
(branches
Total
branches
no
Number
!
number
no
Number
\
plus
1
number ! branches Number
j branches Number ,
banks)
!
branches \
| branches :
i
! Operating branches j

State

Total..

21,630

2,103

119

1,984

1, 415

22, 527

21,824

703 i

2,132 i

3,547 |

28,177

724

1, 286

3,331

22
316
13
24
124
77
21
56
10
61

22
863
13
24
124
77
35
57
10
61

STATE-WIDE BRANCH BANKING P E R M I T T E D
Total..
Arizona
-California
Delaware.. _
District of Columbia
Maryland
North Carolina
_
Rhode Island
South Carolina
Vermont
Virginia

2, 045
46
437
47 i
41
230
416
33
217
104

474

64 !

6 :
49
3 :
:

562

6 i

41 .
3 !

547

1
3 i
1 1

14
1

i
1

1,981
40
388
44
41 !
230
416
30
215 1
103
474

1,775
33
343
37
29
20
205
96
435

2C6
7 ;
45 |
7
12 j
30
39
10
10 ;
7 .
39 :

68
1,300
60
65
354
493
68
274
114
535

BRANCHES RESTRICTED AS TO LOCATION

Georgia
Kentucky
Louisiana.
Maine
Massachusetts
Michigan
Mississippi
New Jersey.
New York.
Ohio
Pennsylvania.
Tennessee.

2
3
2
5
13
26
1
13
18
3
7
11

836

7,C87 ;

19
13
9
21
53
353
2
27
271
18
13
37

383 ''
556 !
215 '
121 1
405 j
608 ,
287 i
508 '
1,025 !
1,009 j
1,518
452 !

6, 610

369
549
175
102
330
572
277
466
937
957
1,445

431

477

40
19
75
36
10
42
73
21

1,371

2, 207 !

20
15
97
42
108
86
23
76
4.51
250
1/2
31

;
:
:
:

'
!
i
,
:

39
28
106
63
161
439
25
103
722
268
185
68

444
600
331
196
611
1,182
333
671
1,849
1,283
1, 751
552

ESTABLISHMENT OF BRANCHES PROHIBITED
12,106

Alabama.
Arkansas.
Colorado.
Connecticut.
Florida..
Idaho..
Illinois.
IndianaIowa.
Kansas_
Minnesota..
Missouri.
Montana.
NebraskaNevada..
New Mexico..
OregonTexas.
Utah.
Washington.
West Virginia.
Wisconsin.

37 i

54 !

19 !
3|

19 '
3 !

1
4 |

6
2

l
3j

2
1

13,418
369
418
274
237
235
137
1,765
978
1,257
1,069
1,052
1,277
195
806
35
56
235
1, 308
104
345
297
969

NO PROVISION IN STATE LAW REGARDING BRANCH BANKING
Total
New Hampshire
North Dakota...
Oklahoma
South Dakota...
Wyoming
_.

1, 625
123
412
617
387

292
114
85
61
32

292

1,333

1, 625

114
85
61
32

123
298
532
326
54

123
412
617
387
86

154

FEDERAL RESERVE BULLETIN

APRIL,

1930

TABLE 5.—LOANS AND INVESTMENTS OP BANKS IN AND NOT IN CHAIN OR GROUP SYSTEMS, OPERATING AND
NOT OPERATING BRANCHES, BY STATES: DECEMBER 31, 1929

[In millions of dollars]

State

All banks

Banks in chains or groups

Banks not in chains or groups

Operating \ Operating
| no
branches' branches

Total

Operating Operating
no branches branches

1
Total..

58,417

11,177 |
i

4,913 |

6,264

47,240

STATE-WIDE BRANCH BANKING

Total

6,623

Arizona..
California-----Delaware
District of Columbia
Maryland..
North Carolina
Rhode Island
South Carolina
VermontVirginia

1,709

81
3.420
167
245
837
370
533
169
250
551

213

18 !
1 , 5 2 8 ••

18
178
1

153 !
8 '
1

4
1

Georgia
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Mississippi—
New Jersey
New York
Ohio...
Pennsylvania..
Tennessee

36,642 '.

5, 986

334
554
429
433
4,225
2,021
212
2,388
17,222
2,691
5,703
430

166
124
33
70
871
1,262
15
396
2,011
86
803
149

,
ji
j|
!
i|
i|
|i
h
I;
i:
!
',

i
|

18,839

PERMITTED

1,496

4,914

2,326

2,588

38
553
60
98
521
219
147
108
222
360

25
1,339
106
147
316
151
233
55
27
191

63
1,892
166
245
837
370
380
161 i
249 |
551 !

1,350

142
4

B R A N C H E S R E S T R I C T E D AS T O

Total....

28,401

LOCATION

1,624

4,362

30, 656

14, 500

16,156

35
37
17
21
91
302
12
160
226
32
668
23

131
87
16
49
780
960
3
236
1,785
54
135
126

168
430
396
363
3,354
759
197
1,992
15, 211
2,605
4,900
281

136
360
165
282
2,311
534
170
1,163
4,849
1,226
3,093
211

32
70
231
81
1,043
225
27
829
10,362
1,379
1,807
70

ESTABLISHMENT

OF B R A N C H E S

Total...

14,130

3,252

2,846

Alabama
Arkansas
Colorado
Connecticut._
Florida
_
Idaho
Illinois.Indiana
Iowa
Kansas
Minnesota
Missouri
Montana
Nebraska
Nevada
New Mexico..
Oregon
Texas
Utah
Washington..
West Virginia
Wisconsin

282
198
262
1,336
258
81
3,802
863
782
404
901
1,199
144
359
38
41
260
1,036
162
460
345
917

32
50
30
37
134
37
1,212
41
90
46
583
158
81
62
20
3
82
104
50
188

32
50
30
37
134
37
1,212
19
90
46
402
158
81
62
20
3
82
104
50
120

181

212

135

406

PROHIBITED
10, 878

10, 785

250
148
232
1,299
124
44
2,590
822
692
358
318
1,041
63
297
18
38
178
932
112
272
345
705

237
146
232
1,299
124
44
2,590
796
692
358
318
1,041
63
289
18
38
177
932
112
269
345
665

13
2

i NO PROVISION IN S T A T E L A W REGARDING BRANCH BANKING

i
Total

1,019

New TTfvmpshirp

North Dakota
Oklahoma
South Dakota
Wyoming

•
1

.._
. . . .

230

3 1 1

112
401 i
187
58

58
103
47 i
22 1
1

58
103
47
22

789 !

789

311 1
54 :
298 I

311 i
54 1
298
90
36

90 •

36 :

8
1
3
40

FEDERAL RESERVE

APRIL, 1930

155

BULLETIN

TABLE 6.—NUMBER AND LOANS AND INVESTMENTS OF MEMBER BANKS IN AND NOT IN CHAIN OR GROUP SYSTEMS, OPERATING AND NOT OPERATING BRANCHES, BY STATES: DECEMBER 31, 1929
[Amounts in millions of dollars]
Number of member banks
In chains or groups

Loans and investments of member banks

j Not in chains or groups

In chains or groups £ j Not in chains or groups

State
Total
Operat- OperatOperat- Opera
Total ing no
ing
•'
ing
ing
no
branches branches
branches branches

i T o t a l !•

Total

! 8,522 \\ 938

83 7,584

855

7,321

35,934

9,305

STATE- WIDE BRANCH BANKING
710

Total

17 1
« i

Arizona
- __
California
Delaware
-District of Columbia. _
Maryland
North Carolina _
Rhode Island
_.
South Carolina
Vermont
Virginia

Total.
Georgia
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Mississippi
New Jersey..
New York
Ohio
Pennsylvania
Tennessee

12
85 |
72 1
14;
55 '
46 !
172 ;

-I 3,315
i
:
''
1
!
|
j
;

115
145
42
55
177
273
38
364

30 |

1 i

30 ij

26 ;

;
i

|
|

2 ;'

i |

•!

i ;

40
70

388 ;

1 i .

:!""

277 i

204
11
9
5
5
24
32
2
32
55
2 i
21 I

I
.

620

675
W
187
20
12
85
72
12
54 '•
45
172

55 , 4,106

2
13
2
6
5
6
5
5

174
18
6
80
66
7
49

45
161

•
.'
'
i
I

11 i

42
2,474
80
127
322
174
328
98
70
391

Operat-1 Operat- j
i Opeiat- Operating no i ing
ing
Total I ing no
branches branches
[branches branches

Total

3,726 ;

5,579 126,629

13,354

1,106

1,664

PERMITTED

1,336

176

1,177

6 ;
159 i

1,160

2,770

1,018

36 1
1,297 i
SO
197

1
!
I

13,275

149
3 '
1

7
3
1

322
174
179
95 1
69 ;
391

142

I
1

15
947
47
82
164
57
154
42

350

33
45
158
117
25
53
69
935

156

4,012 17,

5,859

11,629

81
210
253
130
856
386
69
109 1,318
9,143
1,692
54 I 1874
1,874
128 I 2,988
99 I
180

69
148
87
127
381
224
68
709
1,207
711
2,005
123

12
62
166
3
475
162
1
609
7,936
1,163
983
57

B R A N C H E S R E S T R I C T E D AS TO LOCATION
73 i 3,038 !
3
1
10
21

104

101
133
36
50
143
220
36
324
596
383
923
93

2,8
97
130
30
49
120
200
35

199 22,707
'
i
,
!
'
;

295 I

542 j
358
894 !
89;

5,219

1,207

164
118
30 1
15
835
1,074

4
245
3
328
6
283
1
145
23 1,691
20 1,460
1
77
29 1,525
54 11,005
25 1,958
29 3,705
4
285

207
1,862
84
717
105

29
31
17
15
71
143

i
170
30
589
6

ESTABLISHMENT OF BRANCHES P R O H I B I T E D
3,895

483

478

119
94
123
67
61
60
544
234
291
252
276
187
88
160
10
29
120
689
42
146
131
172

13
17
11
4
19
15
29
4
34
25
134
14
21

13
17
11
4
19
15
29
3
34
25
132
14

1
4

22
3
5
23
28
10
30

Alabama
Arkansas
Colorado
Connecticut. _.
Florida
Idaho
Illinois
_
Indiana
Iowa
Kansas
Minnesota
Missouri
Montana
_.
Nebraska
Nevada
New Mexico...
Oregon
Texas.__
_
Utah
Washington....
West VirginiaWisconsin

28
10
31

1
2

3,412
106
77
112
63
42
45
515
230
257
227
142
173
67
138
7
24
97
661
32
115
131
151

3,403

105
77
112
63
42
45
515
229
257
227
142
173
67
136
7
24
96
661
32
114
131
148

;

1
!
1
1
i
1
I

N O P R O V I S I O N IN S T A T E LAW

Total

602

New Hampshire
North Dakota
Oklahoma
South Dakota
Wyoming . .

57
122
294
101
28

Less than $500,000.

143
44
55
34
10

9 8,544
1

2
1

1
3

211
125
218
306
164
54
2,575
436
350
203
535
856
113
190
18
30
214
861
86
317
202
480

!
1

!
1
i
!
!

2, 557 !

2,150

31 !
1
33
23
4
120
26
919
27
69
26
469
137
69 i
46
8
2
74
92 !
32
169

31
33
4
120
26
919
5
69
26
288
137
09
40
8
2
74
92
32
100

181 1

]REGARDING

143

459

578

44
55
34
10

57
78
239
67
18

73
71
331
69
34

193
44
97
37
15

407

22
181

69
135

5,987

5,926

180
92
195
302
44
28
1,656
409
281
177
66
719
44
144
10
28
140
769
54
148
202
299

180
92
195
302
44
28
1,656
397
281
177
66
719
44
136
10
28
139
769
54
146
202
261

BRANCH BANKING
193

385

44
97
"37
15

73
27
234
32
19

8
1
2
38

156

FEDEEAL RESERVE BULLETIN

TABLE

A P R I L , 1930

7- -NATIONAL, STATE MEMBER, AND NONMEMBER BANKS IN CHAIN OR GROUP SYSTEMS—NUMBER AND
LOANS AND INVESTMENTS, BY STATES: JUNE AND DECEMBER, 1929
[Amounts in millions of dollars]
Loans and investments of banks in chains or groups i

Number of banks iri chains and groups
Total

State

June , Dec.

Dec.
2; 103

Total

State member Nonmember

N ational

1,821

Dec.

June

802

136

645

Dec.

June
111

June

1,165

Total

1 !
11,177 1 8,300 5,908

1,065

June

Dec.

June

Dec.

4,159

3,397

2,509

1,872

June ' Dec.

Dec.

State member Nonmember

National

June
1,632

•

STATE-WIDE BRANCH BANKING
64

Total.

Arizona
California
Delaware..
District of Columbia.
Maryland.
North Carolina
Rhode Island
South Carolina
Vermont
Virginia

28 1 1,709

5 i
19
3 '•

5.
18
18 1,528
3
1

1;
1:

PERMITTED

18 i'
1,476
1

969.

864

368

371

423

6
952

6 !.
848 I 225

226

12
350
1

12
402
1

142

770 ,

573

3 !
55 i

8,
190
149 I

3
43
25
59
8
184
134

86
44

262

696

599

1
17

1
14
7

367

153 j!

153

B R A N C H E S R E S T R I C T E D AS T O L O C A T I O N
Total.

509

193

387

22
16
10
12
45
135
21
60
102
6
48
32

Georgia..
Kentucky
Louisiana
Maine
Massachusetts..
Michigan
Mississippi
New Jersejr
New York
Ohio
Pennsylvania...
Tennessee

143

62 |

232

20 I

i
33 i
86 i
21
56
81
48
23

2 I

26 !
52 j

1?!
15 j
11 I

4
6
2 '
19
9
2
25 i
45
15;
8 .

2
7
25

6
12

14
18
3
10

14
16
10

182 i 5,986 ! 4,027
027

2, 604

166
157
K
124 ,
33
33
53
70
530
87:
65
1,262
428
15
19 j
15
17 !
396
358
20 2,011
1,571
571

144
78
30
15
762
366
8
97
624
31
344
105

23
15

782
92

803
149

1,581 j 2,617 j 1.S76 j
143 j
30 i
10 '•
281 i
21

225
348 i

98 i
109 I
576 ! 1,238 |
54

344 l
62 ;

374

3 6 •'
188 •

76 !
861 j

352 !

i
I :STABLISHMENT

1
1,238 | 1,101 !

Total
Alabama
Arkansas
Colorado..
Connecticut
Florida
Idaho
.
Illinois
Indiana. . . .

Iowa
Kansas...
Minnesota
Missouri
Montana.
Nebraska
Nevada.
New Mexico
Oregon
._
Texas
Utah
Washington
West Virginia
Wisconsin

22 '
79

16
8
40
41
84
17
87
88
308
36
45
73
13

19
55
16
4X

36
84
26
75 •

41
79
10
83
85
261 •
34
32
68
16
8
33
79
27
59

58 •

i
j
i
j
1

438

361

13
15
11
4
19
11
20

10
10
11

16
22
3
5
18
25
(\
28

14
11
19
2
31
22
103
9
8
18
4
5
16
21
6
22

33
24
132
9

45
2

PROHIBITED

755

700

3,254

2,416

2,145

1,552

9
55

9
43

32
50

7
41
30

31
22
23
4
120
17
729

7
15
23

9
1
1

8
1
1

2
5

OF B R A N C H E S

5
3
4

5i
3
4

21
26
55
13
53
63
174
22
24
51
10
4
13
56
16
44
37

29
26
52
51
62

156
20
21
50
12
3
12
55
17

30
37
134
37
1,212
41
90

129
37
996
30
73
44

584
158
81
62
20
3
82
101
50

189

212

269
157
45
27
23 1
3
82
89
50
79
205

68
24
467
26
41
46
8
2
71
78
29
154
181 :

94
17
663
4
51
22
194
26
13
14
9
2
69
62
29
G3

411
11

7
33
14

190
22
1

61
22
1

2
111

3
14
3

35
11
271
3
21
20
74
20
9
13
14

293
14
21
20
115
20
12
16
12
1
8
12
18
20

175

10
12
18
15

NO PROVISION I N STATE LAW R E G A R D I N G B R A N C H

BANKING

Total

292

268

138

108

149

155

230

114
85
61

100
82
54
32

44
54
31
9

30
45
24
9

1
3
1

70
30
27
22

70
36
27
22

58
103

201

192

162

44
97
36
15

30
89
28
15

35 i

2 .

14
6
9
6

14
7
9
6

New Hampshire
North Dakota
Oklahoma
!
South Dakota
.. . . . .
W yoming
•
.....
1

Based largely on figures taken from the Bankers Directory for June, 1929.

•'

22 |

44
96
39 '<
22

:
i
1
1

APRIL,

157

FEDERAL RESERVE BULLETIN

1930

TABLE 8.—SIZE

OF CHAIN OR GROUP SYSTEMS AND CHARACTER OF CONTROLLING AGENCY, BY STATES:
DECEMBER 31, 1929
Bank chains or groups
Controlled b y -

Number comprising—
State

Total !
number ,

Total

287

3 banks

4 banks

5 banks

6 to 9
banks

10 to 19
banks

Maximum1
size

20 or
more
10

Holding
companies

Individuals

Banks

190

STATE-WIDE BRANCH BANKING PERMITTED
Total

Arizona.
California.
Delaware..
_
District of Columbia
Maryland
North Carolina
Rhode Island
_
South Carolina
Vermont
Virginia

_
_- -

1
5
1

1
2

6
17
3

1
2
1

BRANCHES RESTRICTED AS TO LOCATION
Total..
Georgia
Kentucky
_
Louisiana
Maine __
Massachusetts.._
Michigan
Mississippi
.
New Jersey
New York
Ohio. _.
Pennsylvania. _
Tennessee

_ „

5
3
2
2
5

1
1
1

11
3

10
1

15
20
2
12 ;
4

7
2

1
3

1
1
2
4
2
2

1
3

2
1
1
1
3

1
1

3
1

2
3

7
9
6
9
20
35
10
9

1
2

1
1
2
1
1

1
3
3
1
12
1
1

4
1

l ;

1
10
2

8
2

4
6
1
4
1

ESTABLISHMENT OF BRANCHES PROHIBITED
Total

171

Alabama
Arkansas..
Colorado
Connecticut
Florida
Idaho
Illinois
_. .
Indiana
Iowa
Kansas._
Minnesota
..
Missouri
Montana..
.
Nebraska . . .
Nevada
_
New Mexico
_
Oregon
_.
Texas
_
Utah
.
Washington
West Virginia
Wisconsin

4 I
3
3 j
1

3 !
12
3
12
19
37

1
1

1
1
1
1
4
1
5
2
1
6
18
3
2
3

1
1

1
2

2
10
1
2

2
4

2
5
6
4

1
4

i
1

16 !
5
12 i
6

2
3
7
2
1

2 '
4
4

2
1

4
4

2
1
1

1
4
2
1

1
1
1

1
1

133

10
11
8
7
8
10
16

1
3
3

1
1
1

17
7
92
9
8
10
12
5
10
12
25
22

1
5
3
1

3
1

1
5
1
1

1
1

2
9
1
12
19
34
6
2
10
1
1

2
14
3
5

NO PROVISION IN STATE LAW REGARDING BRANCH BANKING
Total
New Hampshire
North Dakota
Oklahoma
South Dakota
Wyoming
1

21 i

_ _

0
8
5
5

1
1
1

Maximum number of banks in any single chain or group system.

1
2
1
2

2
1

14
21 !

4
5

6
7
5
5

158

FEDERAL RESERVE BULLETIN

APRIL, 1930

NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled March 21 and released for publication March 24]

Industrial production increased in February,
while the number of workers employed in factories was about the same as in January.
Wholesale commodity prices continued to
decline. Credit extended by member banks
was further reduced in February, but increased
in the first two weeks of March. Money rates
continued to decline.
Production.—In February industrial production increased about 2 per cent according to
the board's index, which is adjusted to allow
for seasonal variations. This increase reflected
chiefly a substantial gain in the output of iron
and steel. Automobile production was in
larger volume than during January but was 30
per cent smaller than the large output of a
year ago. Cotton and wool consumption by
mills was substantially lower in February, and
production of bituminous coal and copper also
decreased.
In the first two weeks of March the output
of steel mills declined in comparison with
February, contrary to the usual seasonal movement. Bituminous coal output also was smaller.
The volume of building contracts awarded in
February was about the same as in the preceding month, according to the F. W. Dodge
Corporation. Residential building continued
at an exceptionally low level, while contracts
for public works and utilities were large in
comparison with the corresponding month in
other
recent years. Awards in the first two
wreeks of March were larger than in the first
half of February.
Employment.—The volume of factory employment, which had reached a low point in
January, showed little change in February,
when an increase usually occurs. Factory pay
rolls increased during the month, but by a
smaller amount than is usual at this season.
In the steel, automobile, agricultural implement, and tobacco industries, employment increased during the 4-week period, while further
decreases occurred in the cotton and wool
textile, lumber, automobile tire, electrical machinery, and machine-tool industries.
Distribution.—Freight car-loadings on an
average daily basis were slightly larger than
in January, but smaller than in the corresponding month of any other recent year. Slight

seasonal increase was reported during early
March. Department-store sales in February
continued to be below the level of a year ago.
Prices.—Wholesale prices of commodities
declined further during February, and the
Bureau of Labor Statistics index at 92.1 per
cent of the 1926 average was at the lowest point
since January, 1922. Marked declines occurred during the month in the prices of many
agricultural products—grains, hides, raw wool,
and cotton; in certain imported raw materials,
notably sugar and silk; and also in textiles,
petroleum, and pig iron.
During the first part of March, a number of
these commodities declined still further in
price. Wheat and cotton prices were considerably lower, and silver reached the lowest
point on record. By the middle of the month,
however, prices of cotton, hides, and silver had
recovered somewhat.
Bank credit.—Liquidation of credit at member banks continued throughout February, and
on February 26 total loans and investments of
member banks in leading cities were in about
the same volume as in the early summer of
last year. During the following two weeks,
however, there was an increase of $230,000,000
in loans and investments, chiefly in loans on
securities. All other loans, largely for commercial purposes, increased slightly.
From the middle of February to the middle
of March the volume of reserve-bank credit
outstanding decreased further by $90,000,000.
This decline reflected chiefly an increase in
gold stock of $75,000,000 and a further decline
of money in circulation, offset in part by some
increase in member-bank reserve balances.
Member-bank indebtedness at the reserve
banks declined to $267,000,000, the lowest level
since early in 1925; reserve-bank holdings of
bills declined, while those of United States
securities increased.
Money rates in the open market eased further, and bond yields declined rapidly to the
lowest level since 1928. At the middle of
March the discount rate
at the Federal Reserve
Bank of New York wras reduced from 4 to 3}i
per cent, and the rate at the Cleveland, Philadelphia, and San Francisco banks from 4}£ to
4 per cent.

159

FEDERAL RESERVE BULLETIN

FEDERAL RESERVE BANK CREDIT
RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES
MILLIONS OF DOLLARS

MILLIONS OF DOLLARS

5W0

5<t00

5200

5000

4800

^800
4600

200

1926

1927

1928

1929

Based on weekly averages of daily figures; latest figures are for week ending March 29

1930

160

FEDERAL RESERVE BULLETIN

APRIL, 1930

RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES
[Averages of daily figures. In millions of dollars]
i

Reserve bank credit outstanding
Month or week

Bills discounted

Bills
bought

United
QtotOG
oiaies
securities

Other
reserve
bank
credit«

Factors of increase <

Factors of decrease

Money Member
bank
in circu- reserve
lation
balances

Total

lock

I Nonj member
, clearing
I balances

!
j
j
j

Unexpended
capital
funds

j
1928—December
1929—January
February
March
April
May
June
July
August
September
October..
November
December
1930—January
February
March
Week ending (Saturday)—
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29

1,013

969
885
953
803
501
378
274

483
473
385
265
156
145
99
75
124
229
337
296
320
314
285
246

263
229
184
197
165
153
179
147
155
165
154
315
446
485
480
540

1,824
1,613
1,502
1,481
1,377
1,303
1,317
1,380
1,376
1,427
1,450
1,631
1,643
1, 357
1,181
1,095

360
329
267
246
230

289
261
238
209
261

482
494
554
593
528

1,165
1,126
1,095
1,078
1,053

859
889
969

1,004
956
978

1,096
1,043

!
'
I
j
I
i
j
i
I
!

4,142
4,115
4,143
4,166
4,226
4,292
4,311
4,335
4,351
4,368
4,381
4,374
4,324
4,283
4,319
4,395

1,790
1,789
1,784
1,791
1,785
1,787
1,779
1,790
1,781
1,766
1,785
1,789
1,797
1,784
1,781
1,797

4,344
4,364
4,388
4,407
4,419

1,765 !
1,797
1,810
1,805
1,786

i
I
!
!
i
|

5,008
4,748
4,686
4,709
4,679
4,684
4,687
4,764
4,777
4,811
4,810
4,845
4,943
4,652
4, 556
4,533

2,367
2,387 i
2,357
2,337

4,548
4, 564
4,535
4,517
4,505

29 I

2,296
2,314
2,334
2,322
2,335
2,386
2,521
2,395
2,349
2,305
2,330

31 '
29 !
31
35 i
32 I
30 '
31 j
27 !
28 :
28 !
33 !
27 I
29 i
'27 !
27 |

352
351
357
361
366
370
376
376
382
387
392
395
399
394
'393
397

2,307
2,303 :
2,337
2,348
2,326

25 I
27 I
28 i
28;
27 i

394
393
393
397
400

r
1 For explanation see BULLETIN for July, 1929, pp. 432-438.
Revised.
2 Includes "other securities," amounts due from foreign banks, and reserve bank float; for explanation see BULLETIN for July, 1929.

ANALYSIS OF CHANGES IN MONETARY GOLD STOCK

GOLD MOVEMENTS TO AND FROM UNITED STATES

[End of month basis. In millions of dollars]

[In thousands of dollars]

Increase or decrease (—) luring
month

1930

Gold

stock
at end
of
month

Month

1928—February
March
April
May _
June
July .
August
September
October.

November

December _

4,362
4,305
4,266
4,160
4,109
4,113
4,123
4,125
4,142
4,128
4,141

Total (12mos.)_.
1929—January

February

March
April
May .

June
July
August
September
October
November
December
Total (12mos.)_.
1930—January
February. .
March *>

_ _

4,127
4,153
4,188
4,260
4,301
4,324
4,341
4,360
4,372
4,386
4,366
4,284
4,293
4,355
4,421

Total

Through Through Through
net gold
ear- domestic
import marking producor
operation,
export
tions
etc.*

-11.2
-57.6
—38.7
-105. 7
—51.0
3.4
10.3
2.1
17.3
-14.0
13.2

-11.1
-94.9
—91.2
-81.7
-79.9
-63.9
0.7
0.5
13.3
23.3

2.9
35.8
45.7
-26.5
30.1
60.9
5.9
—1.2
1.2
-25.0
-15.7

-237.9

-392. 0

119.6

34.5

47.2
25. 5
24.8
23.1
23.6
30.2
34.7
18.4
17.6
17.5
-23.2
-64.4

-65.0

3.4
.9
2.1
0.7
0.9
0.7
3.6
1.5
1.1
1.4

—14.4 '
26.4 !
34.4
72.4
40.6
23.4
16.3
18.9
12.1
14.4
-19.8
-82.3

6.7

142.4

175.1

7.5
48.6
16.1
-7.5
-22.0
—1.0
-6.6
-4.5
1.0
-22.0
-55.4

8.8
61.9
66.8

- 4.0
60.0
47.5

2.5
0.0
13.0

-3.0
1.5
6.8

2.5
-1.2
6.4
3.7
2.8
2.8
4.3
5.6

22.7
2.3
1.9
6.3

March (preliminary)

Imports

Exports

1
1
2,629
184
1,491
297
11 823
17
71
144
80
37

5,327
1,007

Peru

Venezuela
'•
British India
China and Hong i
Kong
4,584
Dutch East Indies..
Japan
36,355
Philippine Islands
New Zealand
_ •
All other countries.. 1622

Total
1
2

_. 247,895

Exports

Imports

Germany
Italy
Netherlands
Canada
Central America
Mexico
Argentina
Brazil
_
Chile
Colombia
_
Ecuador

France

January-February

February

England

2.4
4.1

1
For explanation of this figure, which is derived from preceding columns, see BULLETIN for December, 1928, p. 831.
^Preliminary.

From or to—

1929

Im- ! Exports ! ports
2 i
20 i: 8,497
23
136

._
10
'
i
i
:
;

10
178

_
i

5,787
513
2,479
297
17 253
45 .
1.285
257
418
85

46
414
.
.

841
241
' 40,906
467
39
! 2,120

-40

391 | 60,198 i • 207

73,106

0,155

1391

119 :
123 ;
40,906 :
220 ]
17
2,039 i

•

Includes all movements of unreported origin or destination.
At New York—imports, $6,956,000; exports, $391,000. Elsewhereimports, $40,939,000.

161

FEDERAL RESERVE BULLETIN

A P R I L , 1930

MEMBER BANK BORROWINGS AT FEDERAL RESERVE BANKS
[Monthly averages of weekly figures. In millions of dollars]
!

Reporting member banks in le ading cities

Total i
Month or date

Total

New York City

To ;al
1929
January
February
March
April .
May
June
July..
August
September
October
November
December

1930

: 1929

462 1
371 j

891
893

247

978
991
951
972

i
1
1

1,100
1 013

;

974

885
944
755

Member banks
outside leading
cities »

O ther leading cities

663
659
740
725
661
670
801
717
706
634
655
490

; 1929

1930
247
174
81

!
i
i
'
i

190
131
166
162
145
165
319
196
166
74
60
80

1929

1930
39 '
21
1

j
!
j

473
528
574
563
516
505
482
521
540
560
595
410

Chicago

1930
•
:
'

1929

208 :
153 i
80
!
:

!
:
;
>
;
•

•

1930

71
96
121
46
36
64
47
32
18
38
28
37

1929
228
234
238
266
290
302
299
296
268
251
289
265

7
1

1930
215
197
166

i Includes (in small amounts) discounts by Federal reserve banks for nonmembers: (1) bills discounted for intermediate credit banks and (2)
notes secured by adjusted service certificates discounted for nonmember banks.

FEDERAL RESERVE BANK RATES

OPEN-MARKET RATES

DISCOUNT RATES

RATES IN NEW YORK CITY

[Rates on all classes and maturities of eligible paper]
Prevailing rate o n Federal reserve bank

Boston
New York
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. _
Kansas City..
Dallas
San Francisco

Rate in
effect on
Apr. 1

Date
established

Feb.
Mar.
Mar.
4
Mar.
4
4H Feb.
Dec.
Feb.
Feb.
Feb.
Feb.
Feb.
Mar.

BUYING RATES ON ACCEPTANCES
(Buying rates at the Federal Reserve Bank of New York]

Maturity

1-15 d a y s . . _ .
16-30 d a y s . . .
31-45 d a y s . .
46-60 d a y s . .
61-90 d a y s . .
91-120 d a y s .
121-180 d a y s
1

For all changes made during the month of March, see p. 143.
NOTE.—Rates on prime bankers' acceptances. Higher rates may
be charged for other classes of bills.

Averagejield

;

rate

13
14
20
15
7
10
8
11
8
15
8
21

Average rate

Call loans 1

Month or week j
I commerical
! paper,
! 4 to 6
• months

1929
March...
April
May....
June
July
August
September
October
November
December

;
! 594-6
|
6
__J.
6
j
6
j
6
!
6 -GJ4
j
6}4
j
6J4
J 5J4-6J4
j
5

Prime
bank- i Time
ers' i
accept- : loans,
ances, ! 90
90 ' d a y s 2
days

791-8
8H-9
8^-9
8 -8J4

U.S.
Treasury
notes Treasand
ury
Re- certifi- bonds 3
New newal
cates,
3 to 6
months
'

9.80
9.46
8.79
7.83
9.41
714-8
891-9
8.15
53,88.62
891-9
7 -9
6.10
491-6 i 5.40
491-5 : 4.S8

8.91
7.70
9.23
8.23
8.50
6.43
5.44
4.83

4. 60
4.80
5.09
4
4. 80
4. 55
4.70
4
4. 58
4.37
3.47
•3. 03

3.76
3.67
3.67
3.71
3.68
3.72
3.70
3.67
3.45
3.46

4.64
4.32
3.69

3.39
3.36
4
2. 95

3.51
3.50
3.40

4.40
4.00
3.90
3.00
3.80

3.06
3.01
^ 3. 06
2.94
2.83

3.49
3.44
3.38
3.37
3.40

9.10
'\ 8.89

j
\
'
I
;
''.

1930
4.31 \
January
__ 494-5
394-3% 4.V2-5
4.28
February
March
BH-iU: 3. 56
Week endingMar. 1
4h-491 4.28
Mar. 8
41/2-491
41-1-49-ij 3.84
4 - 4 H 3.56
Mar. 15
2 *-)7
4
391-4
Mar. 22
Mar. 29
4 ! 3.78
394-4
1
2
3

Stock exchange call loans; new and renewal rates.
Stock exchange 90-day time loans.
3 issues—394, 4, and 43-4 per cent; yields calculated on basis of last
redemption
dates—1956, 1954, and 1952.
4
Change of issues on which yield is computed.

162

FEDERAL RESERVE BULLETIN

APRIL, 1930

PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES
WEIGHTED AVERAGES
New York City

27 southern and western cfties

Month
1927
January
February
March
M
April
May
June
July
August
September
October
November
December

i
|
!

4.66
4.56 ]
456
4.56
4. 63
4.63
4.60 ,
4.56
4.41
4.44
4.49
4.35
4.50 ,

5.94
5.96
6.04
6.07
6.10
6.16
6.17
6.22
6.27
6.29
6.29
6.20

NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given
on preceding page). All averages are based on rates reported for three types of customer loans—commercial loans, and demand and time loans
on securities. The method of computing the averages takes into account (a) the relative importance of each of these three types of loans and (6)
the relative importance of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included is
weighted according to the importance of that city in the group, as measured by the loans of all banks.
PREVAILING QUOTATIONS

Prime commercial loans
Federal reserve
bank or branch city

Loans secured by prime stockexchange collateral

Loans secured by warehouse
receipts
January,
1930

5K-6

New York City
Boston
Buffalo
Philadelphia
Pittsburgh
Cleveland
Cincinnati
Detroit
Chicago...

6 -7
6

Richmond
Baltimore
Charlotte..
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
St. L o u i s . . .
Little Rock
Louisville. _
Minneapolis..
Helena
Kansas City
Denver
Oklahoma City
Omaha
Dallas
El Paso.....
Houston
San Antonio
San Francisco...
Los Angeles
Portland
Salt Lake City
Seattle.
Spokane_

6 -8

5^-6
6 -8
6 -8
5H-6
6 -634
6
6 -7
6
5V2-5H
6 -8
534-6
6 -8
7 -8
63/2

March,
1930

February, 1930

March,
January, Febru1930 I ary, 1930
1930

534-6 !

5 -534;

534-6

5 -5

5H-6 '
6 -634:

h\
6
534-6
6
5^-6
6 -7
6
5H-6

5 -5H

5^-6

6 -%\i'.
5H-6
6K2-7
6 -6H
5^-6

5H-6
6 -8
6 -8
534-6
6 -6M
5H-6
6 -7
&A-&A
6 -8
53^-6
6 -8
6 -8
6 -6J4
6 -6M
6 -8

VA-7
6 -7
7
6 -7
7

Interbank loans

6H-7
6 -7
7
6M-7

53/9-6

6H-7
6
5H-6
6
6
5*4-6
6 -8
6 -8
by2 6

;

|
I
i
j
1

534-6
6
6
6

51-2-6

5 -5H
6
534-6
6
6
5H-6

6
6-8
5K2-6
6 -63

6 -634
6
6
-6
6

T
6
-8

6 -7
6 -7
7

6H-7

534

5M-7
6
534-6

534-6
5^-6

6
5M-6
5£6

6
6
6
5M"6
5H-6
5H-6
6 -7

6 -8

5^-6
6 -8
5 -5J4;
6 8 I
534-6

5 -6
6

5*^-6
6 -6

6 -6
53^-6
6

534-6
6
5 -534
6 -634
6
6
6
6

5 -5
6 -63

NOTE.—Rates shown are those at which the bulk of the loans of each class were made by representative banks during week ending 15th of
month. Rates from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the larger banks in their respective cities.
r
Revised.

163

FEDERAL RESERVE BULLETIN

A P R I L , 1930

MEMBER BANK CREDIT
REPORTING MEMBER
[In millions of dollars.

M o n t h l y data are averages of weekly
Loans and investments
Loans

M o n t h or date
Total

Total:
1929—Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1930—Jan
Feb

Onse- All
Total curitics other

22,263
22,472
22,388!
22,113,
22, 231
22,479|
22,465
22,646
23,124
23, 663
23,012
22,368
22, 083

16,260
7,522
16,491
7,580
16,464
7,392
16,277 7,218
]
16,480 7,332
i
16,950 7,716
16,969
7,578
17,197
7,654
!
17, 706 8,098
j
18,041
8,249
_!
17, 444 7,968
16, 821 [ j 7, 794f
_.
16, 542 7, 671
!
Feb. 2 6 . . . 22,003 16,428
7, 641'
Mar. 5 . . . . 22,101 16, 547 7, 737!
Mar. 12... ! 22, 232 16, 704 7,883 i
Mar. 19...! 22, 514 16,847 8,054|
Mar. 26...| 22, 563 16,885 8,184
New York City: i
5,306| 2,820
1929—Feb
i 7,190
Mar
! 7, 296 5,424! 2,823
2,729
Apr
i 7,297 5,437
7,182 5,344
2,653
May
5,468
7,281
2,749
June
5,804
7,496
3,045
July
7,407 5, 688: 2.845
Aug
7,507 5, 803! 2,892
Sept
Oct
__ 7,837 6,108! 3,191
8,349 6, 3801 3,340
Nov
8,001
6, 0211 3,112
Dec
7, 664 5, 705! 2, 945
1930—Jan
7,493
5, 584j; 2, 909!
Feb

Feb. 26...
Mar. 5 . . . .
Mar. 12...
Mar. 19—
Mar. 26—
O t h e r leading
cities:
1929—Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1930—Jan..
Feb
Feb. 26. _.
Mar. 5....
Mar. 12...
Mar. 19...
Mar. 26...
Chicago:
1929—Feb. _
Mar....
Apr
May__.
June
July....
Aug
Sept
Oct
Nov
Dec
1930—Jan
Feb
Feb. 26.
Mar. 5..
Mar. 12.
Mar. 19.
Mar. 26.

BROKERS' LOANS
REPORTED BY THE NEW YORK STOCK EXCHANGE

BANKS

7,412
7, 4991
7, 595
7,747
7, 756!

5,499!
1
5, 582! ! o2,953
5,700j! 3, 065
5,787'j
5, 810 j

._ _!
i Due
Total , t to
invest- 1 hanks
merits'

8,737
8,911
9,073
9,059
9,149
9,234
9,390
9,543
9,608
9,792
9,476
9,027
8,871

6, 004i
5,981
5,924
5,836
5,751
5, 529
5,496
5,449
5,418
5,623
5,567!
5,548
5,541

figures]
i Borirowing
at
j P . R.
l)
j anks

2,918
2,861
2,709
2,545
2,532
2,738
2,604
2,718
2,916
3,008
2,886
2,828
2,818

659
740
725
661
670
801
717
706
634
655
490
247
174

8,786
8,810
8,821
8,793
8,702

14,
14,
14,
14,
14,

591
603
637
76'
807

2,096,
2,130
2,045
2,015
2,033
2,015
2,064
2,054
2,119
2,106;
2,037!
1,957'
1,928||

10,954j|
ll,067i
11,027!!
10,933 i
ll,012|]

4,703
4,7561
4,663
4,565
4,582
4, G70I
4,7341
ll'394(i 4,762!
11,698| I 4,906 i
4,909|
ll|424|! 4,856
11,115!! 4 , r •10,958!! 4,762
i|
10,929i! 4, 751
10,966i! 4, 784!
l l , 0 0 4 ! 4, 818i
11,059!! 4,8941
11.075J; 4, 904
1,641-:
1,676:
l,606 ! i
1,596'
1,616'
1

1* 659
1,663,
1,733|
1,7121
1,639!
1.5521
1, 534!
!
l,942!l 1, 546!
1,970| 1,564
1, 974 1,575
1,984
1,591
1, 981, 1,587

Total
End of month
1929
January
February __
March
..
A pril
May

June

Julv
August
September
October, _
November
December

1930

6,735
6,679
6,804
6,775
6,665
7,071
7 474
7,882
8,549
6,109
4,017
3,990

From New
From private
York banks
banks, brokers,
; and trust com- foreign banking
1
panies
agencies, etc.
|
1 1929
1929
1930
1930

3,985 ' 5,664
4,168 1 5,619
4,656 i 5,713
i 5,580
i 5,482
1
5,797
; 6,154
6,492
: 7,077
5,313
:
3,432
3,370

3,368
3,529
4,026

1,071
1,060
1,091
1 194
1,183
1,272
1 325
1,390
1,470
796
585
620

616
639
631

1 Call loans, $4,052,000,000; time loans, $604,000,000.
MADE BY REPORTING MEMBER BANKS IN N. Y. CITY

For banks

2,486
2,601
2,708
2,691
2,719
2,758
2,843
2,911
2,916
3,040
2,909
2.760
2,675

Month or date

2,609
2,629
2, 635
2,627
2, 530
6,251
6,310
6,364
6,368
6,430
6,476
6,547
6,632
6,692
6,752
6,568
6,267
6,196

4,119;
4,109 1,945J
4,065 1,835!
3,998i 1,7281
3,938 1,736i
3,837! l,803 !
3,776! 1,777!
3,745! 1,830
3, 690! 1,893
3,6541 1,875
3,587; 1,906
3,589! 1,8971
3, 632; 1,916!

528
574
563
516
505
482
521
540
561
594
410
208
152

6,176
6,181
6,186
6,165
6,171

3,
3,
3,
3,

1,886
1,966i
1,930|

115
126
96
51
47

662!
637
634;
707|

3, 732J

990j
9541
917;
922|

7311
726
701 !
6981
706!
695!
716:
730,
735;
722
685
635,
61i:

455.
454
440,
419
417;
4141
405|
391!
386i
395
398
406 i
394|

323
342
320
307
314
310
309
3131
309!
303!
310|
306!

935
942
956
979J
973!

623:
619i
612!
614!

396J
406
399
393
393

314;
330:
327,
341;
338,

950
905
897!
910|
906!
943!

In millions of dollars]

"in millions of dollars. Monthly data are averages of weekly figures]

r
15,073
15,176
15,092
14,931
14,950
14,983
15,058
15,139
15,288
15,314
15,011
14,705
14, 590

[Net borrowings on demand and on time.

1
1

Total

In
New
York
City 1

Outside
New
York
City 2

For
others

1929—January
February
March..
April
May
June
July...
August
September
October
November
December
1930—January...
February

5,408 i
5,555 1
5,679 !
i 5,477
5,491 !
5,383
5,841
6,009
G, 540 ,
6,498
4,023 ;
3,391
3,351
3 3,459

2,974
2,899
2,800
2,583
2, 526
2,443
2.849
2,778
2,898
2,896
1,869
1, 601
1, 706
1,913

1,173
1,082
1,071
934
861
895
1,198
993
1,048
1,257
1,090
888
844
942

L, 801
1,817
L,729
L, 649
1,665
L, 548
1,651
1,786
1,850
1,639
779
713
862
971

2,434
2,656
2,879
2,893
2,965
2,940
2,992
3,290
3,642
3,602
2,154
1,790
1,644
1,546

1930—Feb. 26_.
Mar. 5
M a r . 12
Mar. 19....
M a r . 26

3,489
3,583
3,720
3,841
3,820

1,933
2,038
2, 225
2,437
2,542

953
1,006
1,146
1,266
1,424

980
1,032
1,079
1,171
1,118

1,556
1,545
1,494
1,404
1,278

;

1 Weekly repotting member banks in Xew York City.
2
M e m b e r and nonmember banks outside New York City (domestic
banks only); includes u n k n o w n a m o u n t for customers of these b a n k s .
3 Call loans, $3,087,000,000; time loans, $371,000,000.

ACCEPTANCES AND COMMERCIAL PAPER
fin millions of dollars]

E n d of m o n t h
121
46
36
64
47
32
18
38
28
37
7
1

Total

Bankers' acceptances outstanding

Commercial paper outstanding
1930

January.
February
March
April.
May
June
•July
A ugust.
September
October.
November
December

1, 058
, 1,056
1,085
1,071
1,041
1,026
978
952

404
457

1,004

1,123
1,200
1, 284

Figures for acceptances as compiled by American Acceptance Council;
for commercial paper as reported by about 25 dealers.

164

FEDERAL RESERVE BULLETIN

APRIL, 1930

SECURITY PRICES, SECURITY ISSUES, AND BUILDING CONTRACTS
FOREIGN CAPITAL ISSUES

SECURITY PRICES
[Index numbers of Standard Statistics Co.]

[In millions of dollars]

Common stocks (1926=100)
Month or date
(Thursday)

1928—December
1929—January.—
February
March
April
May
June
July
August
SeptemberOctober..
November
December
1930—January
February
March
Mar. 6.-Mar. 1 3 . . .
Mar. 20
Mar. 27

r
;
404 stocks: 337 in- | 6ti
„
combined! dustrialsj

171.4
185. 2
186.5
189.1
186.6
187. 8
190.7
207.2 i
218.1 I
225.3 I

-._
__

201.7 i
151.1 !
153.8 j
15G.3 i
165.5 i
172.4;
169.2 !
169.8 i
173.8 i
176.6 i

178.4
392.5
192.3
196.0
193.4
192.6
191.0
202. 7
210.3
216.1
194.4
144.8
146. 9
148.8
155. 9
163.0
159.4
160.9
164.4
167. 2

rr a flilQ
ils

January-February

;
Bonds,
34 public 6 0 i s s u e s
| utilities
173.4
192.7
202.4 i
203.7
201.4 '
212.3 j
233.0
272.8 1
304.3 ;
321.0
276.6 •
194.4 ;
200.9 |
208.7 ,
230.5 j
241.6 !|
236.5
237.3 |
243.3
249.1 !
i

134.9
141. 8
141.6
140.4
138.3
138.7
144.8
160.0
165.4
168.1
157. 0
135.1
136. 3
136. 5
142.5
143.2
142.4
140.8
144.8
144.7

97.2
97.0
96.3
95.8
95.3
95.7
95. 3
95.2
95.0
94.8
95.1
95.7
96. 5
96.5
96.4
97.8
96.9
97.6
98.4
98.2

February,
1930

1930

Class of issue

1929

Gov-! Cor- Gov- Cor- Gov- Corern- i po- ern- porate ern- poment rate ment rate ment rate
Total
New issue
Europe
_ ..
Canada and Newfoundland
Latin America
.
United States insular
possessions
MiscellaneousRefunding issues
Total Government and
corporate __

42.8 ' 45.4

65.1

93.8

45.2

38.8

11.8 . 45.4
29.3

20.1

93.8
34.3

38.6
23.6

36.8
18.4

10.3 ' 16.1 13.1
1.5
5.5

19.6

1.5
12.0

9.4
2.2

1.5

6.5
.4

6.6

2J3

31 0 i
DO n
oo. Z

1.5
N

45 0
^
15* . 9

40.0

84. 0

DOMESTIC CAPITAL ISSUES

BUILDING CONTRACTS AWARDED, BY TYPES OF
BUILDING

[In millions of dollars. Source: Commercial and Financial Chronicle]

[Value of contracts in millions of dollars]
1

January-February
February,
1930

Month
1930

1929

ComResiTotal \ den- Industrial mertial
cial

Class of issue
Refunding

, ReNew !| fund- New
ing

New

Refunding

1929—January
February._
March
April

410.0 i
361.3 !
484.8 i
642.1 !

June _
July
August
September.
October
November
December..
1930—January
February __

545.9 ,
652 4
488.9 !
445.4
445.6 1
391.0 ,
316.4 !
324.0 i!
317.1

May

Total.
Corporate issues
Bonds and notes—
Long-term
Short-term
Stocks
Farm-loan issues
Municipal issues
Total new and refunding

465. 5:
387.4

8. 8! 1,182.11
27.'

85.6:1,703.6 265.9
82.8|1,565.5

262.9

224.2; 21.3 660. 2! 65. 5 402. 3 134.2
16.4; 30. 2
14. lj
5. 51 62.4|
4.7
. 9 1,133. C
149. l
.91 275. 9j
124.0
2.0_
2. 0|.
| "l."i! 181.6i~
138.1
76.494.3
L
1,969.4
1, 267. 7

587.8 i

138.1
129.5
197.2
256.8
192.0
189.8
199 9
146.1
118.4
137.7
113.5
114.0
66.6
74.8

63.1 100.4
56.1
68.3
55.8
75.6
68.2
78.0
80.8
86.5
80.9
70.0
66 6 91 3
72.0
75.3
76.9
52.6
67.7
60.9
39.7 101.8
33.4
67.4
54.1
38.3
72.9
33.5

Public
works Educa- All
and
public tional other
utilities
66.5
57.6
71.5
152.1
139.4
120.8
194.5
119.3
117.2
85.1
72.4
51.8
112.1
85.8

17.7
22.6
37.5
29.9
38.2
43.4
48.0
32.3
29.8
36.9
25.7
19.8
19.0
21.2

24.1
27.3
47.2
57.1
50.9
40.9
52.0
43.9
50.4
57.3
38.0
29.9
34.0
28.8

Figures for building contracts awarded are for 37 States east of the
Rocky Mountains, as reported b y the F . W. Dodge Corporation.

165

FEDERAL RESERVE BULLETIN

APRIL, 1630

PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND PRICES
[Index numbers; 1923-1925 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variations]
Industrial production*
Building contracts awarded

Year and
month

Total

Ad-

Unadjusted

1919
1920
1921
1922
1923
1924
1925
1926
1927.._.
1928
1929.
1926
January
February. _
March
April
May
June
July
August
September .
October
November.
December..
1927
January
February._
March
April
_.
May
June
July
August
September.
October
November.
December. _
1928
January
February..
March
April
May
June
July
August
September.
October
November.
December..
1929
January
February..
March
April
May
June
July
August
September.
October
November.
December..
1930
January
February..

; Manufactures

Unadjusted

justed

83
87
67
85
101
95
104
108
106
111
118

84
87
67
87
101
94
105
108
106
111
119

105
108
109
108
107
106
103
109
113
114
110

106
106
107
107
106
108
107
110
112
111
108

108
111
111
110
108
106
102
108
112
112
108

101

106

106
110
113
110
112

106
108
111
109
111
108
106
107
105
102
99

104
110
113
112
113

107
102
105
106
105
101
96

107
102
104
106
104
101
95

100

105

106

106
109
110
109
109
109

M12
112
110
110
108
105
111
116
118
115
108

'110

116
120
121
123
125

117
117
118
122
123

125
119
121
123

'127

114
115
113
111
108
106
110
116

112
114
115
113
115

124
123
122
117
106
99

'120

108
95

103

103
PIOH

Adjusted

P106

117
115
109
•

1 1 6

120
125

127
127
126
119
121
122
118
107
92
102
p 109

Minerals

Unadjusted

Adjusted

77
89
70
74
105
96
99
108
107
106
115

Unadjusted

Adjusted

ployment

Unadjusted

64
63
57
81

84
95
122
130
128
135
117

Unad- UnadAdjusted justed justed

107
108
82
90
104
96
100
101
99
97
100

98
118
81
103
96
101
104
109
102
107

84
91
79
86
100
98
103
107
103
103
106

92
95
104
107
104
106
107
109
110
114
118
119

111
106
146
139
134
133
126
148
137
126
119
131

143
145
129
120
123
121
124
133
134
122
130
142

101
102
103
102
101
101
99
101
103
103
101
100

101
106
107
105
104
104
99
104
105
108
105
104

94
96
99
98
106
110
111
113
122
123
113

105
107
109
109
111
109
107
107
105
102

112
113
111
96
108
108

116
117
118
107
109

99
99

105
97

94
96
151
147
135
154
130
135
127
137
114
116

120
131
134
127
122
141
128
121
125
133
125
126

98
100
100
100
99
99
98
99
101
99
97
95

106
110
111
110
109
111
111
113
116
115
113
115

'100

104

133
153
128
135
148
145
139
113
140
141
126
116

94
96
97

117
105
96
102
P105

103
111
111
112

'99
'98
94
104
'104

103
'111

' 105

99
106
104
105
101
103
103
'103
103
'105
105
'101
'101
105

115
107
122
'114
117 v 113
106
112
113
'116

101
'104

116
'116
' 118

121
127

'118
120

107
115
116
'113

114
114
118
118

'127
'114

'110

110

116

107
7)104

112
"108

Miscellaneous
and mdse. in
less-than-carload lots

Total

90
92
98
96
102
109
110
115
118
124
123
113

99
105
106
105
104
102
99
102
102
103
98
99

97
100
102
100
105
106
104
109
116
114
101
88

105
109
108
108
106
104
101
104
104
101
97
95

94
99
107

92
94
97

96
96
96
96
98
100
100
99
98

96
101
103
100
101
101
98
103
104
107
104
104

143
133
159
119
108
109
95
77

104
135
130
122
156
107
106
105
105
85

97
100
101
102
102
101
101
102
103
102
98
95

101
108
111
'111
'111
109
105
109
111
110
102
99

95
99
98
102
110

79
77

101
104

93
93

94
97

100
88
118
156

128
119

Farm

Adjusted

84
78
88
97
98
105
108
107
108
110
93
98
103
105
110
111
111
112
121
122
112
96

113
144
157
163
158
142
126
143
145
115
105

All
ties

Unadjusted

102
104
104
107
107
109
108
108
109
109
109
107

* Average per working-day, except for annual indexes.
t Wholesale price index of Bureau of Labor Statistics; 1926=100.

Factory
pay
rolls

109
108
108
107
106
108
107
111
112
110
106
103

117
116
120
123
125
129
126
124
122

j Commodity
j pricesf

Freight-car loadings*
Factory

107
107
106
106
109
109
108
107
109
110
108

139
154
98
97
101
98
104
100
95
98
97

158
151
88
94
99
100
110
100
99
106
105

104
102
100
100
101
101
100
99
100
99
98

107
105
102
103
102
101
99

107

98
95
95

107
90

108
109
109
110
108
108
107
108
108
106
103
100

95
94
94
96
97
98
102
106
105
104
104

100
102
102
104
105
102
102
104
106
106
104
103

93
97
105

107

109
111
114
121
118
102
90

104
107
103
111
111
108
108
109
108
104
99
97

95
99
109
113
115
114
115
118
126
123
107
90

109
109
111
114
114
112
112
113
113
111
103

89
92

97
99

89
96

102
105

96
104
103
105
109
119
119
108
95

109
110
110
110
112
120
118

107
111
109
112
114
123
123
111

v Preliminary.
' Revised.

106
106
108
110
107
109
109
111
111
107
108

100

99
100

106
105
104
108
110
107
107
107
109
104
102
104
106
105
107
105
102
103
108
107
107
104
101
102

101

166

FEDERAL RESERVE BULLETIN

APRIL, 1930

INDUSTRIAL PRODUCTION, BY INDUSTRIES
[Index numbers of the Federal Reserve Board. Adjusted for seasonal variations. 1923-1925 average = 100]
1929

1930

Industry
Feb. Mar.

iiy

Aug.

Sept.

Oct.

Jan. ! Feb.

Nov.

Manufactures
117
114
118
116
118
99
105

IRON AND STEEL .

Pig iron
Steel ingots...
TEXTILES

Cotton consumption
Wool
-•Consumption
Machinery activity l
Carpet and rug loom activity l-Silk
Deliveries
Loom activity l

135
144
119
103
98
102
90
95
109
100
129
122
117
94
124
109
112
134
101
114
141
136

FOOD PRODUCTS.__

Slaughtering and meat packing
Hogs
Cattle
Calves
Sheep__
Flour
Sugar meltings._

PAPER AND PRINTING __

Wood pulp and paper
Newsprint
Book paper
Fine paper
Wrapping paper
Paper board...
Wood pulp, mechanical..
Wood pulp, chemical
Paper boxes
Newsprint consumption

126
114
128
113
115
97
101
93
91
132
135
126
101
97
104
87
87
106
104
108
123
116
90
125
114
104
135
103
114
150
137

132
116
134
116
117
97
100
92
94
144
152
128
96
88
86
90
97
105
104
111
125
119
92
132
118
102
139
96
114
157
138

135
117
137
120
119
101
106
96

148
17
21
98

95
149
159
129

145
126
147
121
125
102
109
92
I
I
I
!

155
127
158

138 !
142 i
130 !

121
122
101
107
93
95
149
159
128

151
131
153
118
119
95
109
85
83
146
155
127
96
94
96
88
90
124
100
94
124
120
91
138
122
101
131
103
117
152
131

143
128
144
120
119
101
114
86
90
150
161
130
99
93
94
88
85
126
103
112
125
119
95
134
118
101
129
101
120
169
135

139
121
141
116
115
98
106
89
90
148
158
128
98
101
106
91
99
126
99
84
129
120
94
143
119
101
125
100
120
178
148

143
55
175
116
103
93

133
49
101
116
105
94

102 I
99 |
100
93 !
101
119
107

97
92
94
86
91
125
112

111
124
119

90
127
122

no
»o

no
yo

135
118
103
135
91
115
151
132

134
119
109
143
92
120
150
137

128
120
92
133
120
107
136
100
118
180
142

159
28
49
99

153 j
53 I
62 '

148 i
55 |
93 j

162
46
129

97 I

DQ
ov

QQ
©y

94 I

85
73
86
112
105

113
106
97

73
67
117
100

92
67
73
120
104

101 I
92 i
84 |

142
59
155
114
105
86

76
93 !
123 i
100 !

78
96
116
106

i
I
I
!

74
104
153
117

75
111
158
120

80
108
136
125

87
102
144
123

126
141
124
132
137

115
140
123
132
134

99
148
129
140
128

110
144

Ill I
146 !

116
154

137
147
143

137 I
145 i
145 I

126
130
137

118
164
127
133
123

122
168
122
126
121

118
174
126
127
131

159
186
93
134
123
137

160
187
94
136
123
142
152
157
118
126
93
153

165
194
93
141
125
145

168 I
196
103
140
126
149

170
199
110
140
126
151

148
153
113
131
86
167

160
187
97
138
116
139
152
157
116
129
95
159

161 |
166 |
126 i

158
163
121

162
167
125

142 I
109 !
173 !

142
101
178

139
100
173

171
205
95
138
123
151
141
146
105
131
97
160

176
209
108
142
131
152
119
123
87
133
99
163

173
208
95
141
123
148
116
120
90
136
100
168

104
110
137

' 110
110
137

'90
77
133

129
100
111
94

136
106
'100
91

135
112
112
93

' 1 0 2 | ' 104 I ' 1 0 2
95 '
86
76
132 !
134
135
143
126
141
139
124
116
120 !
122
125
122
112
103
94

102
72
143
119
122
125
114
88

'98
81
145
121
119
127
107
91

' 103
106
140
121
125
124
119
89

I
I
i
j

96
90
90
87
83
117
109
102

108
104

TRANSPORTATION EQUIPMENT:

Automobiles
Locomotives
Shipbuilding

150
15
48
95
88
94

LEATHER AND PRODUCTS..

Tanning
Sole leather i
Upper leatherCattle
Calf and kip...
Goat and kid...
Boots and shoes

CEMENT AND GLASS:

Cement
Glass, plate.

NONFERROUS METALS 2

Copper (smelter)
Tin (deliveries) l

FUELS, MANUFACTURED:

Petroleuni refining
Gasoline i
Kerosene
Fuel oil i
Lubricating oil 1
Coke (by-product)

RUBBER TIRES AND TUBES.

Tires, pneumatic
Inner tubes
TOBACCO PRODUCTS

Cigars
Cigarettes
COAL:

102
39
169
105
103
95

109
149 !

109
117

121
125
126

108
124

110
122

105
110

163
199
89
121
120
132

Minerals

Bituminous
Anthracite
Petroleum, crude.
Iron ore shipments
Copper (mined)
Zinc.
Lead
Silver

r 103
121 '
132

'106
132

102
135
95

1
Without seasonal adjustment.
2 includes also lead and zinc. See " Minerals."
» Preliminary.
r Revised.
NOTE.—The combined index of industrial production is computed from figures for 58 statistical series, 50 of manufactures, and 8 of minerals,
most of which are shown in this table. Adjustments have been made in the different industries for the varying number of working days in each
month and for customary seasonal variations, and the individual products and industries have been weighted in accordance with their relative
importance. The sources of data and methods of construction were described in the BULLETIN for February and March, 1927.

167

FEDERAL RESERVE BULLETIN

A P R I L , 1930

FACTORY EMPLOYMENT AND PAY ROLLS
INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS
[Without seasonal adjustment. Monthly average 1923-1925=100]
Factory employment
1928

1929

January
_ 98.1
February
99.7
March
100.4
April...
99.8
May
99.1
June
_ 99.0
July
98.0
August
99.2
September
100.6
October
99.3
November... 96.9
December
95.5
Annual index. 98.8

94.2
95.7
96.6
96.0
95.7
96.2
95.7
98.3
100.3
100.2
98.8
98.1
97.2

97.4 r92.9
99.7
92.9
101.3
101 8
101.6
101.2
100.7
102.0
103.4
102.1
98.2
94.8
100.4

1927

1930

1929

1928

98.6
95.7
104.8 101.1
105.3 102.5
105.0 100.3
104 3 ion s
102. 5 100. 9
98 6 98 3
102.2 102. 5
101.9 104.2
102. 5 107.5
98.5 103 6
99.4 104.2
102.0 101.8

1930

••100.7 94.2
r 108. 0 97.4
••110.8
r HI 3
r HI 2
109.2
104.8
109 4
110.5
110.0
102 0
98.7
107.2

110

FACT"ORYE MPLOY KENT
(1923- 25--100 )

Factory pay rolls

Month
1927

PERCENT

110

100

J;'

90
mmmm Adjusted for Seasonal Variations
Without Seasonal Adjustment

80
1923

1924- 1925 1926 1927 1928
Seasonal adjustment provisional

1929

1930

FACTORY EMPLOYMENT: INDEXES BY GROUPS

Iron
and
steel

Month

1928—October
November.
December..
1929—January
February..
March
April
May
June
July
August
September.
October
November.
December..
1930—January
February...

Food
Machinery Textiles! products

96.9
97.7
97.1
97.1
98.3
99.3
99.7
100.7
100.8
99.8
101.0
101.0
99.4
97.0
92. 2
91.7 j
93.5 I

102.8
103.8
105.2
106.7
110.4
113.8
116.7
119. 1
120.8
121.5
119.4
119.5
118.7
115.0
112.1
109.9
109.3

95.7 !

96.2 !
97.0 |
95.9 i
98.0 I
101.1 ]
99.3 !
97.3 !!
96.3
91.5
94.2
98.4
99.8
97.1
94.3
92.8
92.9

102. 6
101.9
102.0
98.6
98.8
97.6
96.2
97.3
99.2
99.8
99.7
102.4
104.2
101.6
100.5
97.4
96.7

Paper
and
printing

Lumber
and
products

102.4
103.7
103.6
102.5
103.4
103.1
102.5
102.8
103.2
103.6
104.1
106.0
106.1
106.7
106.9
105.1
104.0

90.6
90.5
88.2
85.5
85.8
86.6
88.2
89.2
90.0
90.5
92.2
91.8
90.1
86.7
81.6
76.8
75.0

Transportation
equipment

Chemicals
CeLeather ment,
ToRubber bacco
INonferand
clay, i rous
prodPetro- prod- prodAutoand
I
metals
ucts
Group mobiles ucts
ucts
Group leum
refining
94.4
90.2
89.9
94.0
99. 0
100.5
101.7
101.5
97.6
96.4
95.5
94.8
90.2
82.9
81.3
83.2
83.9

119.8
109.1
107.7
118.3
129.5
131.1
131.4
130.0
120.6
117.8
115.0
113.1
101.3
83.7
79.6
85.7
89.7

94.1
91.8
89.5
84.3
84.5
86.8
90.5 |
93.1 |
93.8 j
91.6 !
93.8;
93.6 j
91.9
88.9 j
82.3 |
74.7 |
75.3 |

94.6
89.3
88.6
91.9
94.1
92.7
90.6
90.3
89.4
94.6
98.1
99.5
99.3
94.4
90.0
91.4
92.4

100.0
102. 2
102.4
102.4
106. 1
107.9
107.7
105.3
102.9
100.5
99.8
98. 0
98.5
93.6
89.9
85.9
84.6

107.4
107.3
107.8
107.6
110.9
115.5
119.0
110.3
107.9
108.9
111.2
114.5
116.1
113.8
111.8
110.6
110.2

104.3
104.0
104.7
104.0
106.7
109.2
111.9
114.4
116.4
120.0
121. 9
124.0
124.6
123.7
120.9
120.8
120.9

113.2
109. 8
109.6
112.2
112.3
113.3
114.3
115.3
115.0
114.2
111.5
108.3
102.7
91.2
89.2
89.7
87.9

99.1
98.9
95.7
84.1
92.0
92.0
91.3
90.3
91.4
90.5
93.0
93.7
95.0
96.1
89.2
84.2
88. 9

FACTORY PAY ROLLS: INDEXES BY GROUPS
Transportation
equipment

Chemicals

L e a t her;

i and ;

Month

glass

1928—October....
November.
December..
1929—January
February,.
March
April
May
June
July
August
September.
October....
November.
December.
1930—January-February-.

95.9
80.1 :
86.0 !
97.0
103.6
108.8
103.2
99. 3
97.8
90.4
97.4
103.0
104.8
90.2
93.
90.5
98.1

102.2
102.5
101.2
100.4
103.1
105.6
105.
105.0
108.1
108.8
105.5
105.5

94.1 ! 116.6
90.7 ; 118.5
120.5
79.0 ! 117.4
81.0 ! 124. 1
84.8 lj 127. 6
89.3
127.0
91.8 i 123.1
92.5 !' 117.0
86.1
112.6
91.2 i 113.2
91.3 i 112.1
90.6 ! 112.5
86.4 ; 99.6
80.2 ; 96.1
67.3 ; 91.5
70.2 , 91.7
88.4 j

ToRubber bacco
rous
prodPetro- products
ucts
metals Group leum
refining
109. 2
108.2
108.1
106.3
111.3
113.6
117.8
113.1
111.2
111.2
113.0
116.0
118.2
115. 6
114.0
109.3
110.0

107.8
107.1
107.2
105.3
110.2
112.1
117.1
118.9
120.0
123.3
125.1
129.3
129.4
126. 3
124.8
121.1
125.0

120.4
112.4
114.1
••111.7
••123.3
" 123.6
••124.4
'125.7
120.6
115.1
110.9
104.9
100.9
85.9 j
85.0 j
88.9
92.1

95.2
94.1
94.3
76.3
82.3
84.4
86.1
86.1
88.5
87.9
90.6
93.4
94.2
94.3
88.8
77.0
80.0

' Revised.
NOTE.—These tables contain index numbers of factory employment and factory pay rolls for certain months, together with group indexes fot
important industrial components. The nature and sources of basic data and the method of construction were described and the indexes for the
period January, 1919, to November, 1929, were published in the BULLETIN for November, 1929, pp. 706-716.

103025—30

168

FEDERAL RESERVE BULLETIN

APRIL, 1930

BANKING AND BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICTS
FEDERAL RESERVE BANKS—RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES
[Averages of daily figures. Amounts in thousands of dollars]
Total cash reserves
Federal reserve
bank

February

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

1929

1930

263,083
912,761
222, 371
307, 581
109, 661
158,366
540, 311
120,963
84,011
138,079
64, 744
280,149
3, 202,080

266,297
910,040
209,986
279,819
112,175
152, 758
509,129
118,981
88, 455
144,430
63, 780
305, 465

Federal reserve notes in
circulation i

Total deposits
1929

1930

March
195,614
988,224
166,846
288, 854
92, 568
145, 672
401, 433
74, 733
86,448
109,994
71, 766
226, 434

March

March
March February

March

February

1929

1930

162, 250
205,347
146,422
180,335
76,299
131,943
296, 363
82, 262
59,843
79,044
37,440
158,404

162, 582
246,391
146, 724
177,865
80,969
132,116
297,460
85, 766
61, 393
80, 489
41, 261
164, 793

130,408
306,296
142,828
207, 272
73, 574
137,915
283,388
59,603
63,473
67, 021
38, 588
159,393

85.4
78.1
78.6
83.5
77.1
80.0
84.5
75.1
74.6
82.0
63.8
82.7

85.6
75.9
74.5
76.9
75.1
76.9
80.3
71.5
78.2
85.3
59.8
88.0

70.9
79.0
60.1
73.0
64.7
70.4
63.4
52.8
73.5
68.7
65.6
66.0

2, 361, 760 2, 384, 675 1, 615,952

1,677,809

1, 669, 759

80.3

78.3

70.3

145,498
944, 547
134,903
188,152
69, 457
68,910
349, 767
81,826
54,102
92,973
70, 894
183, 646

148,337
952,221
135, 034
186,035
68, 320
66, 538
336,187
80, 656
51, 758
88, 879
65, 327
182,468

145,896
962,762
136,457
188,058
65,920
65, 922
342, 821
78, 786
52, 740
89,295
63,972
180,450

3,161, 315 2,848, 586 2,373,079

1929

1930

March

February

March

Reserve percentages

i Includes " F . R. notes of other F. R. banks" as follows: Latest month $22,792,000; month ago, $24,282,000; year ago, $15,512,000.
ALL MEMBER BANKS—DEPOSITS SUBJECT TO RESERVE, RESERVES HELD, AND INDEBTEDNESS AT FEDERAL RESERVE
BANKS
[Averages of daily figures. In millions of dollars]
Reserves held
Net demand deposits

IndebtedE ess at Federal reser ve banks

Time deposits
Total

Federal reserve district

Excess

December, January, December, January, December, January, December, January, December, January,
1930
1929
1930
1929
1929
1930
1929
1930
1929
1930
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas - _ _ .
San Francisco

1,398
7,355
1,158
1,493
569

1,394
7,080
1,144
1,473
569

3,182
1,057
1,612
557

3,241
1,080
1,623
562

550

571

428

434

1,328

1., 312

1,663

Total

19,105

18, 713

13,065

1,756

150.1
999.6
133.4
180.1
65.3
62.6
342.7
79.3
53.3
89.0
64.4
175.1

149.9
956.5
133.8
182.2
66.2
64.5
337.0
79.3
51.3
88.7
63.0
176.7

13, 257

2,394.9

2,349.1

943

951

2,582
705

2,535
699

2,079
519

2,053
536

447
856
664

427
850
659

448
357
220

442
354
225

6.0
1.5

6.8
1.6

2.8
3.6
2.9
4.0

2.8
3.8
2.1
3.9

40.4
188.3
80.2
98.4
42.3
41.1
133. 0
30.9
17.3
46.0
19.1
64.3

48.3

44.5

801.3

1.9

23.1
1.1
-1.7
.8

14.0
1.8
2.0
1.4

2.3

2.4

23.9
110.9
52.0
72.8
31.2
31.8
87.4
17.7
7.027.8
13.3
21.8
497.6

Deficiency in reserves.

DISCOUNTS OF FEDERAL RESERVE BANKS
[Averages of daily figures. In millions of dollars]

Federal reserve bank

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

__
--

Total

Number February, January, February.
of centers
1929
1930
1930

1929

1930
March

BANK DEBITS
[Debits to individual accounts. In millions of dollars]

February

March

21.1
54.3
36.7
31.1
16.8
21.6
35.2
14.0
2.4
16.2
8.3
15.8

23.2
70.5
50.5
53.3
22.2
25.3
63.0
16.7
3.0
23.0
11.9
15.1

58.6
231.5
101.6
76.0
43.4
51.7
210.6
48.1
15.6
31.8
14.8
85.0

273.5

377.6

968.6

New York City
Outside New York City
Federal reserve district:
Boston..
New York
Philadelphia
Cleveland
Richmond
Atlanta
. __ ._
Chicago
St. Louis
Minneapolis ___
Kansas City.__
Dallas
San Francisco...
Total

-_
_..

1
140

31,117
21,534

34, 732
25, 723

46,289
24,515

11
7
10
13
7
15
21
5
9
15
10
18

2,329
31,940
2,233
2,325
654
1,009
5,489
1,050
664
1,222
646
3,090

3,050
35, 662
2, 609
2,827
780
1,211
6,563
1,281
751
1,409
741
3,569

2,674
47,146
2,536
2,74a
692
1,115
6,505
1,212
659
1,260
687
3,578

141 |

52,651

60,455

70,804

APRIL, 1930

169

FEDERAL RESESVE BULLETIN

BUILDING CONTRACTS AWARDED

BUILDING PERMITS ISSUED

[Value of contracts in thousands of dollars]

[Value of permits in thousands of dollars]

Federal reserve district

cities j F e b r u a r y January February

I February January February
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas

17,961
90,312
17,743
35,992
28, 707
19,526
37,983
24,510
4,980
18,071
21,267

16, 631
79, 462
50,914
34,861
27,433
21, 433
39,906
13,114
3,868
14,922
21,432

25,325
76,064
32, 369
36, 360
34, 252
22, 363
69, 845
23,372
4, 757
12.874
23,665

j 317,053

323,975

361, 274

\
'
i
;
!
;
..!

Total (11 districts)

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

14
22
14
12
15
15 j
19
5
9
14
9
20

Total. _.
Figures for building contracts awarded are for 37 States east of the
Rocky Mountains, as reported by the F. W. Dodge Corporation.

INDEX OF DEPARTMENT STORE SALES

1929

1930

Number of

Federal reserve district

168

4.076
30,231
4,241
9,(39
6,011
3,179
15, 729
2,670
1,083
6, 501
4,614
14,144

4,464
34,649
3,913
8,098
9,363
3,177
14,174
1,202
808
3,011
4,179
20,132

11,031
113,382
8,672
12,586
9,437
6,537
19,801
4,426
I,4ii4
4, 815
5, 515
21, 385

102,118

107,168

219, 240

INDEX OF DEPARTMENT STORE STOCKS
[Monthly average 1923-1925=100]

[Monthly average 1923-1925=100]

Federal reserve
district

Number of
stores

1930

1929

1930

Federal reserve
district

1929

Number of
stores

1930

Feb.

Jan.

36
60
57
55

77
89
73
77

104
99
80
78

76
90
75
83

103
114
90
98

110
92
93

102
114
93
105

Richmond
Atlanta _
Chicago
St Louis

28
41
97
19

81
83
88
83

85
76
"90
72

78
87
95
85

107
103
113
102

102
93
' 112
88

105
108
123
106

Minneapolis
Kansas City i
Dallas
San Francisco

19
27
22
36

73
75
85
90

70
74
80
104

68
76
85
91

107
117

93
117

107
118

497

106

102

110

' Revised.

87
101
79
86

85
96
71
80

91
99
85
91

93
108
83
90

93
104
77
9-±

97
106
90
96

Richmond . . .
Atlanta
Chicago
St. Louis

28
29
79
19

91
90
105
82

86
82
••100
79

94
98
106
86

96
92
110
88

98
89
' 113
91

99
100
110
92

Minneapolis
Kansas City i
Dallas
San Francisco

15
21
21
32

67
113
77
104

64
102
72
100

75
124
79
98

80
109

83
108

82
103

414

Total

Monthly average 1925=100.

1930
Feb.

All banks

Liabilities
1929

1929

Jan

Feb.

' 9 9 j 100

98
r

Revised.

IN FEBRUARY, 1930

[Amounts in thousands of dollars]

Federal reserve district

Jan. Feb.

34
42
45
49

BANK SUSPENSIONS

COMMERCIAL FAILURES1
Number

Feb.

1929

Boston
New York
Philadelphia
Cleveland. . .

i Monthly average 1925=100. .

1930

Feb.

Boston
New York
Philadelphia
Cleveland

Total.

1929

Jan.

Feb.

Jan.

Feb.

With seasonal
adjustment

Without seasonal
adjustment

With seasonal
adjustment

Without seasonal
adjustment

Feb.

Jan.

6,124
13, 466
3, 757
3,023

3,999
16, 603
6,887
6,101

Federal reserve
district

NumDe
ber
posits a

Member
banks 2

Nonmember
banks

NumNumDeDeber
posits a
ber
posits 3

Feb.

Boston
New York
Philadelphia
1
1,071
1
1,071
Cleveland
563
11
5,181
Richmond
1,584
10
3, 597
1
123
14
Atlanta.
2, 534
797
11
I, 737
3
166
168
23
8,285
969
20
7,316
Chicago _ _.
3
2,867
558
11
2,309
12
1
184
145
4, 510 1,942 St Louis
Richmond.
128 : 2,418
888
404
3
484
6
3
93
124
2, 587 1,711 Minneapolis
107 i 1,844
Atlanta
765
5
765
5
376
7,966 3,708 Kansas City
428
297 ! 8,845
Chicago
4
814
11 11,037
102
7 10, 223
170
St. Louis...
120 | 6,030 3, 054 1, 782 Dallas
579
1
320
1
2
San Francisco
259
Minneapolis
60
47 i 522
1,362
48
999
115
121 i 1,231 3,983 1, 505
18,413
Total
19 14, 794
Kansas C i t y . . .
163
85 33,207
66
40 | 1,359 740
Dallas
42
552
67
San Francisco..
204
231 ( 2,706 3,756 2,605
350
1
Banks closed to the public on account of financial difficulties by
2,262 2,759 1,965 I 51,326 61,185 34, 036 order of supervisory authorities or directors of the bank.
Total.
2 Includes 18 national banks with deposits of $14,744,000 and 1 State
member
bank with deposits of $50,000.
3
i Figures reporten by R. G. Dun Co.
Subject to revision.

Boston
New Y o r k . . .
Philadelphia.
Cleveland

251
588
177
197

232
378

4,151
9, 256
2,590
2,891

170

FEDERAL RESERVE BULLETIN

APRIL, 1930

FOREIGN BANKING AND BUSINESS CONDITIONS
GOLD HOLDINGS OF PRINCIPAL COUNTRIES AT THE END OF 1929
The annual table showing from 1913 to date
the central gold holdings of all countries for
which satisfactory figures are available is presented herewith.1 A large number of2 revisions
have been made in the table this year. The figures for total gold holdings have been affected
also by inclusion in the table for the first time
of Albania, Ecuador, Guatemala, and Mexico.
Total gold holdings of the 44 countries now
represented amounted at the end of 1929 to
$10,291,000,000, an increase of $280,000,000
during the year. This figure is to be compared
with an estimated output from the gold mines
in 1929 of about $405,000,000, an absorption of
gold by India in nonmonetary uses of nearly
$70,000,000, an annual industrial consumption
of new gold in the United States of between
$30,000,000 and $40,000,000, and an unknown
volume of new gold consumed industrially in
the other countries of the world. Making reasonable allowance for industrial consumption
elsewhere than in the United States, it is apparent that central gold holdings were built up
in 1929 not only from the new output
of the
mines but from other sources as well.3 This additional gold came partly, as in the previous
year, from the return of gold from "circulation"
in France, Russia, and the United States; but
also from the Canadian and, to a yet greater
extent, the Australian commercial banks which
were feeling the pressure of world financial and
agricultural conditions. Gold held by the
Australian commercial banks is now subject to
requisition by the Commonwealth Bank.
1 For a discussion of the items considered as "central gold holdings"
see2 the FEDERAL RESERVE BULLETIN for April, 1929, p. 262.

Every figure was reworked in terms of thousands of local currency
converted into dollars at par carried to four decimal points, and this
resulted in many minor differences from figures previously published in
the FEDERAL RESERVE BULLETIN. In addition several more substantial
improvements were made in the figures for the earlier years of the period.
In a few cases figures not strictly as of the year-end were replaced by yearend figures. From certain other figures small amounts of silver were
eliminated. In connection with yet other figures the handling of items
reported as gold abroad was changed. In view of the large number of
revisions, most of them of small importance, it has been decided not to
encumber the table with the usual notes calling attention to those figures
which differ from figures presented in the previous year. Instead, the
table is to be regarded as a new table throughout.
« It is probable that the real growth of central gold holdings during the
year was greater than that shown by the figures. Considerable amounts
of gold (at least $30,000,000) were in transit at the year-end, and in
general this gold had already been deducted from the central holdings
reported by the country of origin and had not yet been taken up into
the central holdings of the country of destination. As a result, the
Federal Reserve Board's monthly figures of central gold holdings actually showed a decline from November to December, 1929, followed
by an unusually large increase in January, 1930. (See p. 250.) December is always affected by the withdrawal of gold coin in the United
States for Christmas circulation, but in December, 1928, central holdings, nevertheless, increased. Only a small amount of gold was in
transit over the year-end 1928-29.

The more important changes in central gold
holdings during 1929 are shown in the table
below. The year for the United States was
characterized by a steady gain in gold stock
until the end of October followed by a loss of
$100,000,000 in November and December.
Since the figures in the table, however, refer
only to the last date of each year, they show
net changes for the year as a whole and do not
bring out turning points.
CHANGES

IN GOLD HOLDINGS OF CENTRAL
AND GOVERNMENTS
[In millions of dollars]
Holdings at
end of year
Country

Countries in which holdings increased:
France
United States
Russia
Belgium
SwitzerlandPoland..
-.
Italy
_
Rumania..Netherlands
_
_.
16 other countries showing increase.

1928

1929

1,253
3,746
92
126
103
70
266
49
175
1,465

1,633
3,900
147
163
115
79
273
55
180
1,483

Total increases
Countries in which holdings decreased:
Argentina
Germany
—
England
Canada
_
Australia
Java
Hungary
_
—
11 other countries showing decrease..
Total decreases .

BANK3

Change
during
1929

+380
+154
+55
+38
+12

+9
+7
+6
+5
+18

+684
434
544
7.11
78
89

607
650
750
114
108
68
35
324

56
28
314

-173
-106
-39
-36
-20
-12
—7
-10
-404

Note on commercial banks.—At the end of
1929 the gold held by member banks of the
Federal reserve system in the United States
amounted to $20,Q00,000; by Canadian banks
in vault at home and abroad to $73,000,000;
by the commercial banks of Australia (fourth
quarter average, 1929) to $104,000,000; and
by the Argentine banks (other than the Bank
of the Nation) to $11,000,000. A small amount
of silver is included in the figures for the
Canadian and Australian banks. The aggregate holdings of the above group of commercial banks are less than the corresponding
holdings of 1928 by $28,000,000, of which
amount $22,000,000 is attributable to the reduction in gold held bv the Australian banks.

171

FEDERAL RESERVE BULLETIN

APRIL, 1930

GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS, 1913-1929
[In thousands of dollars, converted at par of exchange]

E n d of year

United
States

Total

ArgenAlbania
tina

Belgium

Brazil

251,421
213.757
138.758
58,759
53,717
53,072

48, 062
50,963
50, 720
50,720
50, 720
50, 720

89, 610
44,805
24,588
24,588
24,588
26, 227

10, 615
10,615
11,773
13,124
12,159
12, 352

51,417
51,438
51, 451
! 51, 901
! 52,204
__| 52,543

26, 227
32, 784
42, 619
46,152
48, 669
53, 803

7,137
7,155
7, 335
7,415
7,629
7, 792

129,712
112,605
95, 073
146, 5F8
127,169
151,467

24, 384
32,893
34,025
34, 025
[34', 025
|34,025

i 52,856 54,305
j 86,214 56, 329
. . : 99,878 100, 746
. J125, 576 148,555
163,351 150,395

7,981
8,464
9,198
9,529
9,997

|L r 6,768
! 158,105
|151,978
113,948
77,626

34,025 !14,599
110,303 117, S01
\ 7,439 119,862
j 7,363 !24,271
! 7,695 "21,774

India

Italy

4,825
7,086
10, 939
11,378
11,907
10, 246

123, 921
80,068
67, 881
78,127
90,118
64, 231

265,476
269, 584
263, 278
223,400 113,411.
206,72l| 229,9801
202,403! 225, 622j

10, 398
15,118
12,053
29,452
31,517
43,423

259, 519 10, 744
260, 028 10, 765
237,102 10, 770
239, 354
5,944
111, 247
7,182
180, 939 7,533

128, 819
116, 249
118,341
118, 341
108,609
6,872 108, 609

200, 098 j
204, 372!
210, 739
217, 284
215, 6991
218,382|

349, 9711
556,475!
610, 822!
605, 532;
602,343j
585, 738;

69,134
88, 214
58, 728
61,306
62,869
53, 726

2,123
2,512
3,188
4, 555

218, 825i
220,732|
239,1771
265, 732
273, OOl!

575, 768
561,810!
541, 870|
540,873
542, 475

73, 394
79,369
71, 640
68, 264
56,101

4,548
4, 559
4,570
4,584
4,618

1913
1914
1915
1916
1917
1918

I 4,932,445
! 5,419,867
i 6,226,898
i 6,618,404
i 7,126, ?40
6,783,361

j 1,290,420
| 1,206.487
11,706,922
J 2, 202,157
| 2,523,084
12,657,885

256,126 21,899
241.539 38,932
238,906 73,484 |
265.540 78,351 I
288,020 85,650
304,466 104,143

1919
1920.
1921
1922
1923
1924

6.768,245
' 7,205,805
I 7,994,314
i 8,380,754
\ 8,612,199
I 8,933,486

112,517,722
|i2, 451,1S2
j|3, 221, 215
;!3, 505,551
|J3, 833, 735
|;4,0i;0.067

336. 707
473,913
72, 415
1472, 529
1466.495
[443, 8%

llo,796
115,409
!ll3,487
1116,499
1121,088
|121, 200

!450. 592
450,557
529,134
607,290
|433,932

•'127,838 I 2,087
! 106, 975 | 7,388
1105,121 11,883 _
108,430 !23,743
88,882 j23,727

1925
1926
1927
1928
1929

. . ! 8,925,922
', 9,191.219
-1 9,546,363
..JIO.010,178
10,290,638

'13,985.399
!'4, 083. 380 j
ji3, 977,181 I
i1^. 746, 111 |
!;3,900,160 !

19
303
251
241
340

Co- Czech- Den- EcuaChile lombia oslo- mark dor
vakia

AustriaHungary

Austria

Australia

!
I
!
j 1,313
| 1,560

45,111
Ul
1 16
i9

Bulgaria Canada

116,572
99,126 1,330
126, 545 1,330
131,558 1,330
139,823 9,039
129, 761 23, 413

119,666
124,506
129,833
|42,847
46,611
52,159

27
4,053
12,545
20,458
1,875 27, C20
6,774 27,020
27,213
27,032
29,737
34,237
37,24!)

,'60,807
|60,9Q2
161,192
|61,173
|56,171
56,145
i 56,085
156,007
148,780
46,298
46,204

2,046
1,124
1,114

I
"

j Egypt

1913
1914.
1915
1916
1917.
1918
1919
1920—
1921
1922
1923
1924
1925...1
1926
1927.
1928
1929...

------:
!
-.-.I
l

i
;
-!
I
!

i
Ij
!.
i
.[

FinEngland Estonia land
•

6,673
19,367
35,264
-29,318!
19,075!
16,357;
!
16,475;
16,475!
16,510i
16,619!
16,658i
16, 510!

170,245'
428,2231
389,203!
402,9711.
422, 592;
523,689;.
583,21l|
762,911!
763, 719|
751, 597
754,400!.
757, 033 i

94
1,476j

16,708
17,439
18,388!
19,006'
18,7891

703,482
735. 421
741, 698
749, 7671
710, 645|

6, 948!
8, 236!
8, 230.
8, 232!
8, 227!
8, 234 j

678,
802,
967,
652,
639,
664,

1,427

8, 227:
8, 227!
8, 227!
8,371|
8, 242!
8, 354:

694, 847
685, 517
690,141
708,403
709,480
710,394

, |
1, 353|
1,377
1, 710!
1,71

8,
8,
7,
7,
7,

;
l Nether-1 New
1 Mexico lands Zealand
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929

j 16,683
i 4,689
' 5,900
I 6,238
i 6,722

France

858
583
950
886
682
009

Germany

Greece

278, 687
498, 508
582,443
600, 377
573, 249
538, 861

357; 710,968 287, 763
250 711,106 436, 235
979 954, 000 444,158
672!1,
, 253, 500650,127
608 I]
, 633,402 543, 838

Norway

Peru

Poland

7,833
8,729
9,903
7,196
8,326

' Portugal

Guatemala

2, 535
1,955
1,977
2,341

Hungary

10, 365
29, 526
34, 432
35,169
28,465

Rumania

Russia

Africa
34,377
30, 693
32, 056
27,048
30, 036
33, 340
35, 540
50,441
49, 361
51,692
52, 500
53, 098
43, 594
36, 703
40, 032
39,273
36,474

60,899 25, 325
83, 664 30, 250
172, 531 33, 827
236, 216 37,414
280, 690 39,161
277,155 39, 506

11,892
10, 290
13, 837
33, 027
31,193
32, 691

8,140
8,662
9,195
9,247
9, 261
9,263

29, 240
29, 733
42, 647
95, 201
34, 531
34, 466

872, 367
891, 542
830, 572
758,962
666, 523

256, 204 38, 260
255, 729 37, 263
243,600 37, 394
233, 879 38, 367
233, 876 38, 290
202,854 37, 579

1,644
39, 590
2,954
39,472
5,931
39,474
39,474 19, 933 9,769
39,472 20,872 13, 099
39,457 19, 753 19,949

9,265
9,267
9,267
9, 267
9,267
9,267

34,467
34, 794
34, 794
42,050
46,364
47,822

()

9,267
9,267
9,267
9,267
9,267

48, 537
49, 588
50, 805
49, 324
55,112

178,080
166, 231
160, 796
174,692
179, 881

37, 667
38, 007
38, 280
34,873
31, 978

39, 456
39.457
39.458
39, 362
39, 302

19,164
20,084
19,437
19, 938

1 Austrian account only.

25,
26,
58,
69,
78,

793
677
041
685
598

108, 609
108, 609
119, 097
123,988
128,076

2,609
45,043
73, 047
93, 858
84, 605
97, 043
91, 887
147, 021
2

Java

Latvia

Lithuania

1,519
1,645
3,078
M
3,229
3,136
3,320
3,427
3,508

Switzer-i LTru- ! Yugoland i guay : slavia

Spain
92, 627
110,611
167, 375
241,423
379, 614
430, 070

27, 372
29, 088
33, 385
49,183
65,514
76, 532

472, 064
474, 228
484, 984
487, 278
487,841
489, 294

75, 351
75, 516
73, 631
73,428
72,853
63, 508

489, 630
493,489
502,484
493, 903
495, 227

61, 647
60,162
61, 685
63, 223
65, 569

32, 801
45, 922
48, 275
66, 585
69, 025
80,041

10,826 I
13,483 !
22,530 ;
33, 251
42,003
46, 718

11,194
11,034
12, 381
12, 321
12, 310
12, 306

99, 779 56,756 :
104,780 57,307!
106, 058 56,813 ;
103,283 56,812
103, 669 56,812
97, 642 56,809 •
90,140 56,815
91,050 I 56,823
99,785 I 59,319
102,874 I 68,365
114,832 I 68,205

12, 233
12, 386
14,318
12,355
13,286
13, 965
14, 657
16, 620
17,133
17, 566
18,426

Figures not available.

NOTE.—Figures are for central banks only, except in the following countries: United States—Treasury
and Federal reserve banks; Argentina—Government conversion fund and Bank of the Nation; Australia—
Prior to 1920, Treasury note reserve; subsequently, Commonwealth Bank note reserve; Brazil—Prior to
1923, guaranty of currency fund; subsequently, Bank of Brazil and Government stabilization fund; Canada—
Government reserve against Dominion notes and savings-bank deposits, and gold deposits of chartered banks
in the central reserve; Chile—Prior to 1926, Government conversion fund; subsequently, Central Bank of
Chile; Czechoslovakia—-Prior to 1926, banking office of Minister of Finance; subsequently, Czechoslovak National Bank; England—Bank of England and, prior to 1925, Government reserve against currency notes; India—•
Currency and gold standard reserves of Government; Italy—Prior to July, 1926, three banks of issue; subsequently, Bank of Italy; Japan—domestic holdings of Bank of Japan and Government; New Zealand—Six
banks of issue; South Africa—Prior to 1921, gold at home of note-issuing joint stock banks; subsequently,
South African Reserve Bank.

172

FEDERAL RESERVE BULLETIN

APRIL, 1930

FINAL ACT OF THE HAGUE CONFERENCE
Following the report of the committee of
experts on reparations on June 7, 1929 * a
meeting of delegates of the various countries
concerned was held at The Hague (August 6
to 31, 1929). As a result of this first meeting
at The Hague a protocol 2 was adopted in
which the report of the experts was approved
in principle, various questions connected with
its application were settled, and the necessary
organization committees were established. The
organization committees having submitted
their reports, the conference resumed its
sessions at The Hague on January 3, 1930.
This second meeting, which lasted until January 20, 1930, resulted in a general settlement
of reparation and other financial claims arising
out of the war, although the settlement with
Hungary was not in all respects final, but was
rather the definitive basis for a more detailed
agreement to follow. The instruments drawn
up and signed at the second Hague meeting
are presented in full below. They become
effective only upon ratification by the Governments concerned in accordance with the stipulations contained in the various agreements.

concerned also the Governments of Greece,
Portugal, Poland, Rumania, Czechoslovakia,
and Yugoslavia as well as the Governments of
Canada, the Commonwealth of Australia, New
Zealand, the Union of South Africa, and India,
invited these Governments to take part in the
negotiations and agreements affecting them.
In consequence the delegates of the Governments above mentioned, accompanied by the
representative of the Government of the United
States of America in the capacity of observer
and with specifically limited powers, met in
conference at The Hague under the chairmanship of His Excellency, Monsieur Henri Jaspar
Prime Minister of Belgium, and as the result
of meetings held from August 6 to 31, 1929, the
following instruments were drawn up:
(1) Letters of August 30, 1929, relating to
the evacuation of the Rhineland.
(2) Agreement dated August 30, 1929, as to
the Franco-German and Belgo-German Commissions of Conciliation established by the
Treaties of Locarno.
(3) Protocol of August 31, 1929, with its
annexes concerning the approval in principle of
the above-mentioned report of the experts,
FINAL ACT OF THE HAGUE CONFERENCE
the settlement of various questions connected
The representatives of Germany, Belgium, with its application, and the establishment of
France, Great Britain, Italy, and Japan, meet- various committees intended to prepare the
ing at Geneva on September 16, 1928, being putting into force of that report.
These committees and also the organization
inspired by the desire which was common to
all their Governments to reach a speedy settle- committees for which that report provided
ment of the questions arising out of the war, have submitted the result of their labors to the
declared to this end their agreement on the chairman.
Moreover, as it appeared necessary to secure
following points:
(1) The opening of official negotiations at the same time a general settlement of the
relating to the request put forward by the pecuniary liabilities resulting from the treaties
Chancellor of the Reich on the subject of the of St. Germain, Neuilly, and Trianon, of Austria,
Bulgaria, and Hungary, these powers were
early evacuation of the Rhineland.
(2) The necessity for a complete and final invited to take part in the negotiations and to
settlement of the question of reparations and send their representatives to The Hague.
These were the circumstances in which the
of the constitution for this purpose of a committee of financial experts nominated by the conference resumed its sittings and the repir
sentatives of the Governments above men
six Governments.
(3) The acceptance of the principle of the tioned met at The Hague on January 3, 1930
In consequence of the decision which wa?
constitution of a committee of verification and
conciliation, the composition, mode of oper- taken to establish at Basel the seat of the Bank
ation, object and duration of this committee for International Settlements, rep.esentatives
to form the subject of negotiations between of the Swiss Government werk invited to take
part for this purpose in the labors of the conthe Governments.
The committee of financial experts met at ference.
As a result of meetings held from January
Paris and made its report on June 7, 1929.
The Governments above mentioned, taking 3 to 20, 1930, the following instruments were
the view that the conclusions of this report drawn up:
1. Agreement with Germany.
See FEDERAL RESERVE BULLETIN for July, pp. 465-495.
2.
Agreement with Austria.
See FEDERAL RESERVE BULLETIN for December, pp. 792-796.
1

APRIL, 1930

3. Agreement with Bulgaria.
4. Agreement with Hungary.
5. Agreement with Czechoslovakia.
6. Convention with Switzerland.
7. Arrangement relating to the concurrent
memorandum accompanying the experts' plan.
8. Arrangement between the creditor powers
(Germany).
9. Arrangement between the creditor powers
(Austria, Hungary, Bulgaria—Liberation debt),
10. Arrangements as to the financial mobilization of the German annuities.
11. Letters exchanged concerning the German-American agreement.
12. Letters exchanged concerning the tariffs
of the German Railway Company.
13. Transitory provisions.
14. Letters of the German and Belgian Governments on the subject of the agreement on the
German marks in Belgium.
The president announces further that in connection with The Hague conference the following agreements have been signed by Germany
concerning the waiver of claims, the liquidation
of German property rights and interests, the
operations of the clearing offices, and German
marks in Belgium:
With Belgium: Agreements of'July 13, 1929,
and January 16, 1930.
With Great Britain: Agreement of December 28, 1929.
With France: Agreement of December 31,
1929.
With Italy: Agreement of January 20, 1930.
With Poland: Agreement of October 31,
1929 (deposited together in the archives of the
conference).
With Canada: Agreement of January 14,
1930.
With the Commonwealth of Australia:
Agreement of January 17, 1930.
With New Zealand: Agreement of January
17, 1930.
The present act will remain deposited in the
archives of the Belgian Government, which will
deliver an authentic copy to each of the Governments which have taken part in The Hague
conference and also to the powers signatory of
the treaties of peace of Versailles, St. Germain,
Neuilly, and Trianon.
Done at The Hague in a single copy the 20th
January, 1930.
The president of the conference, Henri
Jaspar; the secretary general, M. P. A.
Hankey; the secretary of the German
delegation, Doctor Boltze; the secretary
of the Austrian delegation, Doctor Hans;
the secretary of the Belgian delegation,

173

FEDERAL RESERVE BULLETIN

G. de Grunne; the secretary of the Bulgarian delegation, Doctor Poulieff; the
secretary of the French delegation, de
Felcourt; the secretary of the British
delegation, Rupert B. Howorth; the secretary of the Canadian delegation, J.
Reid Hyde; the secretary of the Australian delegation, Jas. R. Collins; the
secretary of the New Zealand delegation, E. Toms; the secretary of the Greek
delegation, G. Coustas; the secretary of
the Hungarian delegation, L. Gajzago;
the secretary of the Italian delegation,
Buti; the secretary of the Japanese
delegation, H. Kobayashi; the secretary
of the Polish delegation, J. Lipski; the
secretary of the Portuguese delegation,
Antonio Potier; the secretary of the
Rumanian delegation, Savel Radulesco;
the secretary of the Czechoslovakian
delegation, Arnost Heidrich; the secretary of the Yugoslav delegation, VI.
Martinac.
AGREEMENT

The representatives of Germany, Belgium,
France, Great Britain, Italy, and Japan, meeting at Geneva on September 16, 1928, expressed
their determination to make a complete and
final settlement of the question of reparations
and, with a view to attaining this object, provided for the constitution of a committee of
financial experts.
With this object the experts met at Paris and
their report was made on June 7, 1929. Approval in principle was given to this report by
The Hague protocol of August 31, 1929.
The duly authorized representatives of the
Government of the German Reich, the Government of His Majesty the King of the Belgians,
the Government of the United Kingdom of
Great Britain and Northern Ireland, the Government of Canada, the Government of the
Commonwealth of Australia, the Government
of New Zealand, the Government of the Union
of South Africa, the Government of India, the
Government of the French Republic, the Government of the Greek Republic, the Government
of His Majesty the King of Italy, the Government of His Majesty the Emperor of Japan,
the Government of the Republic of Poland, the
Government of the Republic of Portugal, the
Government of His Majesty the King of
Rumania, the Government of the Czechoslovak Republic and the Government of His
Majesty the King of Yugoslavia have reached
the following agreement:

174

FEDERAL RESERVE BULLETIN
ARTICLE I

The experts' plan of June 7, 1929, together
with this present agreement and the protocol of
August 31, 1929 (all of which are hereinafter
described as the new plan), is definitely accepted
as a complete and final settlement, so far as
Germany is concerned, of the financial questions resulting from the war. By their acceptance the signatory powers undertake the obligations and acquire the rights resulting for them,
respectively, from the new plan.
The German Government gives the creditor
powers the solemn
undertaking to pay the
annuities for wxhich the new plan provides in
accordance with the stipulations contained
therein.
ARTICLE II

As from the date when the new plan is put
into execution as provided in the final clause
of this present agreement, Germany's previous
obligation is entirely replaced, except in respect
of the German external loan, 1924, by the
obligation laid down in the new plan. The
payment in full of the annuities there mentioned, in so far as the same are due to the
creditor powers, is accepted by those powers as
a final discharge of all the liabilities of Germany still remaining undischarged, referred to
in Section XI of Part I of the Dawes plan as
interpreted by the decisions of the interpretation tribunal set up under the London agreement of August 30, 1924.
ARTICLE

III

A. The signatory Governments recognize
that the accounts between the Reparation
Commission and Germany relating to transactions prior to the period of the Dawes plan,
together with all accounts involving credits to
Germany, either now or in the future, against
the original capital debt are henceforth obsolete
and without practical effect and declare them
closed in their present condition.
B. (a) In execution of paragraph 143 of the
experts7 report of June 7, 1929, on the understanding that the following declaration is to
be considered as a full compliance with the
requirements of that paragraph as to a waiver,
Germany declares that she waives every claim
as defined by the following list, whether for a
payment or for property, which she may have
addressed or might hereafter address to the
Reparation Commission or to any creditor
power
signatory of the present agreement for
an}7 transaction prior in date to the signature

APRIL, 1930

of this agreement, connected with the World
War, the armistice conventions, the treaty of
Versailles, or any agreements made for their
execution:
(1) Claims relating to property or pecuniary
rights of prisoners of war in so far as they have
not already been settled by special agreements.
(2) Claims seeking to obtain the reimbursement of payments made under paragraph 11 of
the annex to article 296 of the treaty of
Versailles.
(3) Claims relating to loans issued by the
former German colonies.
(4) Any claims, whether for a payment or for
property, which the German Government has
presented or might present for its own account
other than State claims notified, under the
clearing procedure provided for under articles
296 and 72 of the treaty of Versailles, by the
creditor to the debtor office.
(6) By way of reciprocity the creditor powers
accept in conformity with the recommendation
of paragraph 96 of the experts' report of June 7,
1929, the payment in full of the annuities fixed
thereby as a final discharge of all the liabilities
of Germany still remaining undischarged and
waive every claim additional to those annuities,
either for a payment or for property, which has
been addressed or might be addressed to Germany for any past transaction falling under the
same heads of claim as those appearing under
(1) to (4) above.
(c) The provisions of the present article do
not affect the execution of agreements later in
date than January 10, 1920, for the abandonment of the liquidation of German private
property, rights, or interests or the restitution
either of those properties, rights, or interests or
the proceeds of their liquidation.
C. (a) The creditor Governments undertake, as from the date of the acceptance of the
experts' report of June 7, 1929, to make no
further use of their right to seize, retain, and
liquidate the property, rights, and interests of
German nationals or companies controlled by
them, in so far as not already liquid or liquidated or finally disposed of, including the rights
of the signatory creditor powers under article
306, paragraphs (5), (6), and (7) of the treaty
of Versailles.
(b) The execution of this undertaking will be
regulated by special agreements between the
German Government and each of the Governments concerned.
(c) The signatory Governments will use
every effort to clear up definitely all outstanding questions relating to the execution of this

APRIL, 1930

175

FEDERAL RESERVE BULLETIN

undertaking within one year after the coming
into force of the new plan.
(d) This undertaking has no application in
cases where special settlements have already
been made.
D. All or some of the questions mentioned in
the present article as to the waiver of claims
and the cessation of liquidation are governed,
as between the German Government on the one
hand and the following Governments respectively on the other hand, by the agreements
concluded on the following dates, that is to say:
Belgium, July 13, 1929, and January 16, 1930;
Great Britain, December 28, 1929; Canada,
January 14, 1930; Commonwealth of Australia,
January 17, 1930; New Zealand, January 17,
1930; France, December 31, 1929; Italy,
January 20, 1930; Poland, October 31, 1929.

ARTICLE

The contracting parties recognize the necessity, with a view to putting into force the new
plan, of the constitution of the Bank for
International Settlements.
They recognize
the corporate existence of the bank to take
effect as soon as it is constituted in accordance
with the statutes annexed to the law incorporating the bank which is the subject of the
convention concluded with the Government of
the Swiss Confederation.
ARTICLE

VII

The Government of the Reich will deliver
to the Bank for International Settlements, as
trustee for the creditor powers, the debt
certificate referred to in Annex I I I .
Further, the German Government guarantees
ARTICLE IV
that the German Railway Company (Deutsche
From and after the date on which the new Reichsbahngesellschaft) will deliver to the
plan comes into force, the Office for Reparation Bank for International Settlements the certifiPayments and the organizations in Berlin con- cate mentioned in Annex IV.
nected therewith shall be abolished and the
relations with Germany of the Reparation
ARTICLE V I I I
Commission shall come to an end.
With a view to facilitating the successful
Under the regime of the new plan only those
of the functions of these organizations the working of the new plan the German Governmaintenance of which is necessitated by the ment declares spontaneously that it is firmly
new plan will continue in existence; these determined to make every possible effort to
functions will be transferred to the Bank for avoid a declaration of postponement and not
International Settlements by the " small special to have recourse thereto until it has come to
committee " ; the Bank for International Settle- the conclusion in good faith that Germany's
ments will exercise them within the conditions exchange and economic life may be seriously
and limits of the new plan in conformity with endangered by the transfer in part or in full of
the postponable portion of the annuities. I t
the provisions of its statutes.
Under the regime of the new plan the powers remains understood that Germany alone has
of the creditor powers in relation to Germany authority to decide whether occasion has
will be determined in accordance with the pro- arisen for declaring a postponement as provided by the new plan.
visions of the plan.
In regard hereto the representatives of the
ARTICLE I X
Belgian, British, French, Italian and Japanese
Governments, and the representatives of the
The German Government undertakes to
German Government have made the declaratake the measures necessary for the enactment
tions contained in Annex I.
The other measures necessary in view of the of the special laws required for the application
change from the present system to that of the of the new plan; that is to say (a) the law for
new plan are those provided for in Annex I I the amendment of the bank law of August 30,
1924, in accordance with Annex V; (b) the law
for the amendment of the law of the Deutsche
ARTICLE V
Reichsbahngesellschaft, in accordance with
The annuities mentioned in the present Annex VI.
These laws may only be amended in the
agreement include tha amounts required for
the service of the German external loan, 1924. conditions and in accordance with the proThese annuities do not include the amounts cedure laid down by Annexes VA and V I A .
The German Government further underwhich the experts' plan of June 7, 1929, assigns
takes to apply the provisions contained in
to the United States of America.
103025—30
4

176

FEDERAL RESERVE BULLETIN

Annexes VII and XI relating to the assignment
of the proceeds of certain taxes by way of
collateral security for the service of the several
parts of the German annuities.
ARTICLE X

The contracting parties will take in their
respective territories the measures necessary
for securing that the funds and investments of
the bank, resulting from the payments by
Germany, shall be freed from all national or
local fiscal charges.
The bank, its property and assets, and also
the deposits of other funds intrusted to it, on
the territory of, or dependent on the administration of, the parties shall be immune from
any disabilities and from any restrictive measures such as censorship, requisition, seizure, or
confiscation, in time of peace or war, reprisals,
prohibition, or restriction of export of gold or
currency and other similar interferences, restrictions, or prohibitions.
ARTICLE XI

The Governments of the creditor powers have
settled the text of a trust agreement, appearing
in Annex VIII, for the receipt, management,
and division of the German annuities.
The Bank for International Settlements upon
its establishment will be invited to give its
adhesion to the agreement, and the Governments referred to will appoint delegates with
the powers necessary to sign.
The German Government declares that it has
been informed of the text of the agreement.
ARTICLE

XII

The system of deliveries in kind will be governed by the provisions contained in Annex IX
hereto and in the second Annex to the Protocol
of August 31, 1929.
The methods of administering the law of
Great Britain entitled "The German reparation
(recovery) act, 1921/' and the levy on German
imports into France have been settled by agreements between the German Government on the
one hand and the British and French Governments, respectively, on the other; the text of
these agreements is set out in Annex X.

APRIL, 1930

or in consequence of the termination of the
Dawes plan, diminishes or varies the nature
and extent.of its prior obligations and engagements assumed under the general bond securing said loan, all of which are preserved in
their integrity. The Governments of the other
signatory powers similarly confirm and recognize the absolute prior position of the service
of the German external loan, 1924, and declare,
in so far as they are concerned, that all the
priorities, securities, and rights hitherto granted
said loan remain unimpaired including those
under the London protocol dated August 30r
1924. In particular, but without limiting the
foregoing general declarations, the Governments of the German Reich and of the other
signatory powers recognize that the specific
first prior charge for the benefit of the said
loan continues to attach to all payments hereafter to be made by Germany for reparation or
other treaty costs, including not only the nonpostponable portion of the German annuities
to be paid into the annuity trust account but
also the postponable portion of the German
annuities to be paid into the annuity trust
account; and the said powers accordingly
agree that the amounts currently required
for the service of said loan shall be paid out of
said annuities to, or upon the order of, the
trustees of said loan in priority to any other
disbursements made therefrom. The Government of the German Reich further accepts and
confirms the provisions for the security of the
German external loan, 1924, which are contained in Annex XI, of which the English text
is alone authentic.
ARTICLE

XIV

The creditor powers recognize that their acceptance of the solemn undertaking of the
German Government replaces all controls,
special securities, pledges, or charges existing
at the present time, with the exception of those
specially mentioned in Article XIII and in
Annexes VI, VII, and XI.
ARTICLE

1. Any dispute, whether between the Governments signatory to the present agreement
or between one or more of those Governments
and the Bank for International Settlements,
ARTICLE XIII
as to the interpretation or application of the
The German Government confirms all th new plan shall, subject to the special provisions
priorities, securities and rights hitherto created of Annexes I, VA, VIA, and IX be submitted
for the benefit of the German external loan, for final decision to an arbitration tribunal of
1924, and declares that nothing in the new plan five members appointed for five years, of whom

APRIL, 1930

one, who will be the chairman, shall be a citizen
of the United States of America, two shall be
nationals of States which were neutral during
the late war; the two other shall be respectively,
a national of Germany and a national of one
of the powers which are creditors of Germany
For the first period of five years from the
date when the new plan takes effect this tribunal shall consist of the five members who at
present constitute the arbitration tribunal
established by the agreement of London of
August 30, 1924.
2. Vacancies on the tribunal, whether they
result from the expiration of the five yearly
periods or occur during the course of any such
period shall be filled, in the case of a member
who is a national of one of the powers which
are creditors of Germany, by the French
Government, which will first reach an understanding for this purpose with the Belgian,
British, Italian, and Japanese Governments;
in the case of the member of German nationality, by the German Government; and in the
cases of the three other members by the six
Governments previously mentioned acting in
agreement, or in default of their agreement,
by the president for the time being of the
Permanent Court of International Justice.
3. In any case in which either Germany or
the bank is plaintiff or defendant, if the chairman of the tribunal considers, at the request of
one or more of the creditor Governments parties
to the proceedings, that the said Government or
Governments are principally concerned, he will
invite the said Government or Governments to
appoint—and in the case of more Governments
than one by agreement—a member, who will
take the place on the tribunal of the member
appointed by the French Government.
In any case in which, on the occasion of a
dispute between two or more creditor Governments, there is no national of one or more of
those Governments among the members of the
tribunal, that Government or those Governments shall have the right to appoint each a
member who will sit on that occasion. If the
chairman considers that some of the said
Governments have a common interest in the
dispute, he will invite them to appoint a single
member. Whenever, as a result of this provision, the tribunal is composed of an even
number of members, the chairman shall have a
casting vote.
4. Before and without prejudice to a final
decision, the chairman of the tribunal, or, if he
is not available in any case, any other member
appointed by him, shall be entitled, on the
request of any party who makes the application,

177

FEDERAL RESERVE BULLETIN

t( make any interlocutory order with a view to
pie venting any violation of the rights of the
parties.
5. In any proceedings before the tribunal
the parties shall always be at liberty to agree
to submit the point at issue to the chairman
or any one of the members of the tribunal
chosen as a single arbitrator.
6. Subject to any special provisions which
may be made in the submission—provisions
which may not in any event affect the right
of intervention of a third party—the procedure
before the tribunal or a single arbitrator shall
be governed by the rules laid down in Annex
XII.
The same rules, subject to the same reservation, shall also apply to any proceedings before
this tribunal for which the annexes to the
present agreement provide.
7. In the absence of an understanding on the
terms of submission, any party may seize the
tribunal directly by a proceeding ex parte, and
the tribunal may decide, even in default of appearance, any question of w^hich it is thus
seized.
8. The tribunal, or the single arbitrator,
may decide the question of their own jurisdiction, provided always that, if the dispute is
one between Governments and a question of
jurisdiction is raised, it shall, at the request ol
either party, be referred to the Permanent
Court of International Justice.
9. The present provisions shall be duly accepted by the bank for the settlement of any
dispute which may arise between it and one
or more of the signatory Governments as to
the interpretation or application of its statutes
or the new plan.
FINAL CLAUSE

M. Henri Jaspar, Prime Minister of Belgium
as chairman of The Hague Conference of 1930,
will deliver to each of the signatory Governments a certified copy of the present agreement
(which expression here, and in all places where
the context admits, includes the annexes hereto)
immediately after signature. The French and
English texts are both, in the absence of special
provision to the contrary, authentic, provided
that, for the certificates mentioned in Article
VII and the German laws mentioned in Article
IX of the present agreement the German text,
and for the provisions of Annex XI the English
text, alone will be authentic.
The present agreement shall be ratified and
the deposit of ratifications shall be made at
Paris with the French Government.

178

FEDERAL RESERVE BULLETIN

The powers of which the seat of government
is outside Europe will be entitled merely to
inform the French Government through their
diplomatic representatives at Paris that their
ratification has been given; in that case they
must transmit the instrument of ratification as
soon as possible.
The new plan will come into force and will
be considered as having been put into execution on the date on which the Reparation
Commission and the chairman of the Kriegslastenkommission have agreed in reporting—
(1) The ratification of the present agreement by Germany and the enactment of the
German laws in accordance with the relative
annexes.
(2) The ratification of the present agreement
by four of the following powers; that is to say,
Belgium, Great Britain, France, Italy, and
Japan.
(3) The constitution of the Bank for International Settlements and the acceptance by the
bank of the undertakings by it for which the
present agreement provides, and also its receipt
of the certificate of the German Government
and the certificate of the German Railway
Company as provided in Annexes III and IV.
The report of the Reparation Commission
shall require a unanimous vote of the members
of the commission as constituted for the purposes of the treaty of Versailles when a question concerning Germ any is under consideration,
the Japanese delegate nevertheless taking part
in the discussion and giving his vote.
The report of the Reparation Commission
and the chairman of the Kriegslastenkommission will be notified to all the powers signatory
of the present agreement.
Provided always that the substitution of the
obligations and annuities of the new plan for
those of the experts' plan of April 9, 1924, shall
date from September 1, 1929, regard being had
to the provisions of The Hague Protocol of
August 31, 1929, and of Annex II to the present agreement.
The present agreement will come into force
for each Government other than the four of
those mentioned above by name who first
ratify, on the date of notification or deposit
of ratification.
Provided always that any such ratification
shall have the same effect as if it had taken
place before the report of the Reparation Commission and the chairman of the Kriegslastenkommission.
The French Government will transmit to
all the signatory Governments a certified copy
of the proces-verbaux of the deposit.

APRIL, 1930

Done in a single copy at The Hague, the 20th
day of January, 1930."
Curtius, Wirth, Schmidt, Moldenhauer,
Henri Jaspar, Paul Hymans, E. Francqui, Philip Snowden, Peter Larkin,
Granville Ryrie, E. Toms, Philip Snowden, Philip Snowden, Henri Cheron,
Loucheur, N. Politis, J. G. Politis, A.
Mosconi, A. Pirelli, Suvich, M. Adatci,
K. Hirota, J. Mrozowski, R. Ulrich,
Tomaz Fernandes, G. G. Mironesco,
N. Titulesco, J. Lugosiano, Al. Zeuceano, Dr. Eduard Bene&, Stefan Osusky,
Dr. V. Marinkovitch, Const. Fotitch.
LIST OF ANNEXES
ANNEX

ANNEX
ANNEX

ANNEX
ANNEX
ANNEX
ANNEX

I. Exchange of declarations between
the representatives of the Belgian, British, French, Italian,
and Japanese Governments on
the one hand and of the German Government on the other.
II. Measures of transition
III. Debt certificate of the German
Reich
IV. Certificate of the German Railway
Company
V. Provisions to be inserted or maintained in the German bank
law
VA. Procedure for the modification of
certain provisions of the German bank law

178
180
181
185
185
187

VI. Law for the amendment of the

ANNEX VIA.
ANNEX VII.
ANNEX VIII.
ANNEX IX.
ANNEX
X.

ANNEX

Page

XI.

\NNEX XII.

law on the Deutsche Reichsbahngesellschaf t
Procedure for the amendment of
the law on the Deutsche Reichsbahngesellschaf t
Assignment by way of " collateral
guaranty" of certain revenues
of the German Reich
Trust agreement
Rules for deliveries in kind
Agreements between Germany
and Great Britain and between
Germany and France as to the
" German reparation (recovery)
act" and corresponding French
legislation
Securities for the German external loan
Rules of procedure of the arbitral
tribunal

188
199
200
201
207

217
218
219

ANNEX I
Exchange of declarations between the Belgian,
British, French, Italian, and Japanese Governments on the one hand and the German
Government on the other

The representatives of the Belgian, British,
French, Italian, and Japanese Governments
make the following declaration:

APRIL, 1930

FEDERAL RESERVE BULLETIN

The new plan rests on the principle that the
complete and final settlement of the reparation
question is of common interest to all the countries which this question concerns and that the
plan requires the collaboration of all these countries. Without mutual good will and confidence the object of the plan would not be
attained.
It is in this sense that the creditor Governments have, in The Hague agreement of January, 1930, accepted the solemn undertaking
of the German Government to pay the annuities fixed in accordance with the provisions of
the new plan as the guaranty for the fulfillment
of the German Government's obligations. The
creditor Governments are convinced that, even
if the execution of the new plan should give
rise to differences of opinion or difficulties, the
procedures provided for by the plan itself would
be sufficient to resolve them.
It is for this reason that The Hague agreement of January, 1930, provides that, under
the regime of the new plan, the powers of the
creditor powers shall be determined by the provisions of the plan.
There remains, however, a hypothesis outside the scope of the agreements signed to-day.
The creditor Governments are forced to consider it without thereby wishing to cast doubt
on the intentions of the German Government.
They regard it as indispensable to take account
of the possibility that in the future a German
Government, in violation of the solemn obligation contained in The Hague agreement of
January, 1930, might commit itself to actions
revealing its determination to destroy the new
plan.
It is the duty of the creditor Governments to
declare to the German Government that if such
a case arose, imperiling the foundations of their
common work, a new situation would be created
in regard to which the creditor Governments
must, from the outset, formulate all the reservations to which they are rightfully entitled.
However, even on this extreme hypothesis,
the creditor Governments, in the interests of
general peace, are prepared, before taking any
action, to appeal to an international jurisdiction
of incontestable authority to establish and
appreciate the facts. The creditor power or
powers which might regard themselves as concerned, would therefore submit to the Permanent Court of International Justice the question

179

whether the German Government had committed acts revealing its determination to
destroy the new plan.
Germany should forthwith declare that, in the
event of an affirmative decision by the court,
she acknowledges that it is legitimate that, in
order to insure the fulfillment of the obligations
of the debtor power resulting from the new
plan, the creditor power or powers should
resume their full liberty of action.
The creditor Governments are convinced that
such a hypothetical situation will never in fact
arise and they feel assured that the German
Government shares this conviction. But they
consider that they are bound in loyalty and by
their duty to their respective countries to make
the above declaration in case this hypothetical
situation should arise.
The representatives of the German Government, on their side, make the following
declaration:
The German Government takes note of the
above declaration of the creditor Governments
whereby, even if the execution of the new plan
should give rise to differences of opinion or
difficulties in regard to the fulfillment of the
new plan, the procedures provided for in the
plan would be sufficient to resolve them.
The German Government takes note accordingly that under the regime of the new plan the
powers of the creditor powers will be determined in accordance with the provisions of
the plan.
As regards the second part of the declaration and the hypothesis formulated in this
declaration, the German Government regrets
that such an eventuality, which for its part it
regards as impossible, should be contemplated.
Nevertheless, if one or more of the creditor
powers refer to the Permanent Court of International Justice the question whether acts
originating with the German Government reveal its determination to destroy the new plan,
the German Government, in agreement with
the creditor Governments, accepts the proposal
that the Permanent Court should decide the
question, and declares that it acknowledges
that it is legitimate, in the event of an affirmative decision by the court, that, in order to
insure the fulfilment of the financial obligations of the debtor powder resulting from the
new plan, the creditor power or powers should
resume their full liberty of action.

180

FEDERAL RESERVE BULLETIN

APRIL, 1930

The French, German, and English texts of amounts due by her during the same period,
the present annex are equally authoritative.
whether under the fifth annuity of the Dawes
plan or under the new plan, and the provisions
CUHTIUS.
of Section II of Annex III and Section I of
WIRTH.
Annex IV of The Hague protocol, will be
SCHMIDT,
reimbursed to Germany.
MOLDENHAUER
HENRI JASPAR.
(ii) For the whole of the period during
PAUL HYMANS.
which the agent general for reparation payments has had such a surplus at his disposal,
E. FRANCOUI.
PHILIP SNOWDEN. interest will be credited to Germany in so far
as the agent general has received interest by
HENRI CHERON.
the investment in reichsmarks of the sums at
LOUCHEUR.
his disposal up to the amount of that surplus;
A. MOSCONI.
interest will be debited to Germany in so far
A. PIRELLI.
as, and for the period during which, the paySUVICH.
ments made by her have been less than those
ADATCI.
which she would have made if the new plan
K, HlROTA.
had been put into force on September 1, 1929,
regard being had to the sums referred to in the
ANNEX II
two following paragraphs; this interest will be
calculated
at a rate equal to that of the average
Measures of transition
interest produced by the total surplus to be
1. The transfer to the Bank for International reimbursed to Germany
(Hi) The sum of 6,000,000 reichsmarks reSettlements of the documents belonging to the
Reparation Commission and the organizations ferred to in section 2 of Annex III to The
of the Dawes plan, will take place in so far Hague protocol is to be deemed due by
only as may be deemed by the small special Germany on the day on which the agent general
committee referred to in Annex V of the experts' for reparation payments received from Gerreport of June 7, 1929 (sec. 166) to be strictly many payments in excess of the amounts due
necessary for the exercise of the functions of under the new plan sufficient to cover that
sum.
the Bank for International Settlements.
(iv) The sum of 30,000,000 reichsmarks re2. (i) Germany's previous obligation, except
in respect of the German external loan 1924, ferred to in section 1 of Annex IV to The
being entirely replaced by the obligation laid Hague protocol is to be deemed due by Gerdown in the new plan, the German A, B, and many as follows:
5,000,000 reichsmarks on September 20, 1929
C bonds, the bonds of the Deutsche Reichs5,000,000 reichsmarks on October 20, 1929.
bahngesellschaft the German industrial bonds
5,000,000 reichsmarks on November 20, 1929.
aud the bonds of the Bank fur Deutsche
5,000,000 reichsmarks on December 20, 1929.
Industrie Obligationen are finally cancelled and
the balance (10,000,000 reichsmarks) on December
31, 1929.
shall be destroyed
(v) The balance of the above interest account
(u) The claims of Germany against Austria,
Hungary, and Bulgaria referred to in article will be settled when the principal sum due to
261 of the treaty of Versailles and the debts of Germany is reimbursed in accordance with
Germany referred to in articles 213 of the the complete settlement of accounts to be
treaty of St. Germain, 196 of the treaty of approved by the small special committee.
(vi) This settlement of accounts is without
Trianon and 145 of the treaty of Neuilly are
finally cancelled and the securities and docu- prejudice to the right of the German Government to recover any savings made on the
ments relating thereto shall be destroyed
(Hi) The measures to be taken for the amount of 6,000,000 reichsmarks referred to
destruction of the instruments above mentioned in paragraph (Hi) above by the Reparation
will be settled by the small special committee. Commission and the organizations of the
3. (i) As soon as the new plan has been put Dawes plan whose expenses have hitherto been
into force the accounts of the transitional covered by the Dawes annuities The amount
period referred to in Annex III, Article I (1) of these economies, if any will be notified and
and (2) to The Hague protocol of August 31 paid to the German Government as soon as
1929 will be closed. Sums in fact paid by the Reparation Commission is in a position to
Germany during that period in excess of the do so.

181

FJEDERAL RESERVE BULLETIN

APRIL, 1930

Millions of
reichsmarks

ANNEX III
Debt certificate oj the German Reich
I
The German Government, by this present
certificate, undertakes a solemn engagement
subject to the stipulations of the new plan
as defined by Article I of the Agreement of
The Hague of January 1930, to pay to the
Bank for International Settlements as trustee
for the creditor powers, and not to any other
agent nor by way of direct payment to any
one of its creditors, and in conformity with
the following provisions, the annuities set
out in the following table plus the sums required for the service of the German external
loan, 1924, as provided in the general bond
dated October 10, 1924. The annuities set
out in the table shall be paid by equal monthly
installments on the 15th of each month, and if
the 15th is not a working day then on the
working day next following.
Millions of
reichsmarks

•Sept.1, 1929-Mar. 31, 1930
Apr. 1, 1930-Mar. 31, 1931
Apr. 1, 1931-Mar. 31, 1932
Apr. 1, 1932-Mar. 31, 1933
Apr. 1, 1933-Mar. 31, 1934
Apr. 1, 1934-Mar. 31, 1935
Apr. 1, 1935-Mar. 31, 1936
Apr. 1, 1936-Mar. 31, 1937
Apr. 1, 1937-Mar. 31, 1938
Apr. 1, 1938-Mar. 31, 1939
Apr. 1, 1939-Mar. 31, 1940
Apr. 1, 1940-Mar. 31, 1941
Apr. 1, 1941-Mar. 31, 1942
Apr. 1, 1942-Mar. 31, 1943
Apr. 1, 1943-Mar. 31, 1944
Apr. 1, 1944-Mar. 31, 1945
Apr. 1, 1945-Mar. 31, 1946
Apr. 1, 1946-Mar. 31, 1947
Apr. 1, 1947-Mar. 31, 1948
Apr. 1, 1948-Mar. 31, 1949
Apr. 1, 1949-Mar. 31, 1950
Apr. 1, 1950-Mar. 31, 1951
Apr. 1, 1951-Mar. 31, 1952
Apr. 1, 1952-Mar. 31, 1953
Apr. 1, 1953-Mar. 31, 1954
Apr. 1, 1954-Mar. 31, 1955
Apr. 1, 1955-Mar. 31, 1956
Apr. 1, 1956-Mar. 31, 1957
Apr. 1 1957-Mar. 31, 1958
Apr. 1, 1958-Mar. 31, 1959
Apr. 1, 1959-Mar. 31, 1960
Apr. 1, 1960-Mar. 31, 1961
Apr. 1, 1961-Mar. 31, 1962
Apr. 1, 1962-Mar. 31, 1963
Apr. 1, 1963-Mar. 31, 1964
Apr. 1, 1964-Mar. 31, 1965
Apr. 1, 1965-Mar. 31, 1966
Apr. 1, 1966-Mar. 31, 1967
Apr. 1, 1967-Mar. 31, 1968
Apr. 1, 1968-Mar. 31, 1969
Apr. 1, 1969-Mar. 31, 1970

676.9
1641. 6
1618. 9
1672. 1
1744. 9
1807.5
1833. 5
1880. 3
1919. 8
1938. 1
1983.4
2096. 1
2114.6
2131.9
2128.2
2141.4
2137. 7
2133.4
2149. 1
2143. 9
2240.7
2283. 1
2267. 1
2270. 1
2277. 2
2288.5
2283. 7
2278. 1
2285.7
2317. 7
2294. 5
2304.4
2322.2
2314. 1
2326.5
2326.0
2352. 7
1566.9
1566. 1
1575. 9
1589. 2

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

1, 1970-Mar.
1, 1971-Mar.
1, 1972-Mar.
1, 1973-Mar.
1, 1974-Mar.
1, 1975-Mar.
1, 1976-Mar.
1, 1977-Mar.
1, 1978-Mar.
1, 1979-Mar.
1, 1980-Mar.
1, 1981-Mar.
1, 1982-Mar.
1, 1983-Mar.
1, 1984-Mar.
1, 1985-Mar.
1, 1986-Mar.
1, 1987-Mar.

31, 1971
31, 1972
31, 1973
31, 1974
31, 1975
31, 1976
31, 1977
31, 1978
31, 1979
31, 1980
31, 1981
31, 1982
31, 1983
31, 1984
31, 1985
31, 1986
31, 1987
31, 1988

1602.9
1613. 1
1621. 5
1624. 9
1627. 6
1634.2
1637. 9
1644. 6
1654. 7
1659. 6
1670. 5
1687.6
1691. 8
1703. 3
1683. 5
925. 1
931. 4
897. 8

The service of the German external loan,
1924, shall constitute a part of the annuities
payable during the respective annuity years
until said loan is fully redeemed, and the
amount required for the service of the loan in
each annuity year as determined by the trustees
of said loan shall be added to the amounts specified in the foregoing table in determining the
aggregate sum of each annuity payable thereunder. The annual amounts payable for the
service of the loan shall be treated as payments
on account of the nonpostponable portion of
the respective annuities and shall be transferred
when received to the credit of the trustees for
the German external loan, 1924.
II
1. Except for any period in which the transfer of the postponable portion of the annuity
is suspended, the monthly payments of the
Reich must be made in currencies other than
the reichsmark.
2. Provided always that with a view to the
execution of the programs relating to deliveries in kind and of the arrangements under the
reparation recovery acts, and with a view to
meeting any administrative expenses incurred
in Germany, the Bank for International Settlements may request that a corresponding part
of these payments may be made in reichsmarks.
3. The bank may notify to the German
Government and the Reichsbank simultaneously one month at least in advance of the payment dates the bank's preferences with respect
to the currencies in which payment is to be
made. In case these preferences are not complied with, the Government of the Reich may
make payment of such parts of the German
annuities as do not relate to the service of the
German external loan, 1924, in the currencies

182

FEDERAL RESERVE BULLETIN

of the creditor countries whose nationals were
members of the committee of experts of 1929,
divided as nearly as possible in proportion to
their respective shares, it being, however,
understood that payments in currencies other
than the reichsmark which are not on a gold or
gold exchange standard shall be made only with
the consent of the bank.
4. The Bank for International Settlements
shall give its receipt to the German Government for all sums which it pays or causes to be
paid under this certificate. The receipt shall
make note of the currencies received, but credit
shall be given to the German Government in
the reichsmark equivalent of these currencies.
The bank's receipt giving credit in reichsmarks for payments made to the Bank for
International Settlements by the German Government or on its behalf for the execution of the
new plan, shall during the normal operation of
the new plan constitute a complete and sufficient discharge of the obligations of the German
Government with respect to such payments.
Should, however, transfer postponement be
in whole or partial effect, the bank's receipt
giving credit in reichsmarks shall constitute a
complete and sufficient discharge of the obligations of the German Government with respect
to all payments into the annuity trust account
made in foreign exchange and with respect to
such portions of the payments made in reichsmarks as in the opinion of the bank provide
current funds for deliveries in kind or services.
As to the remainder, the receipt of the bank
shall be in the nature of a temporary acknowledgment only.
5. The German Government undertakes
that the reichsmark shall have and retain its
convertibility into gold or devisen as contemplated in section 31 of the Reichsbank law of
August 30, 1924, and that in all circumstances
for the general purposes of the new plan the
reichsmark shall have and shall retain a mint
parity of 1/2790 kilogram of fine gold as defined
in the German coinage law of August 30, 1924.
Sums paid in currencies other than reichsmarks into the annuity trust account shall be
calculated in terms of reichsmarks subject to
the provisions of the last preceding paragraph
at the average of the mean rates (Mittelkurs)
prevailing on the Berlin Bourse during the 15
days preceding the date of payment.

APRIL, 1930

required for the service of the German external
loan, 1924; each coupon is divided into two
parts—part A represents that part of the
annuity which is mobilizable and nonpostponable; part B, the postponable portion of each
annuity. Each part of the annuity coupon
enjoys absolutely equal rights throughout
except with regard to the possibility of postponement hereinafter provided for.
2. The bank shall distribute moneys in
payment of the mobilized or mobilizable portions of the annuity coupon among the whole of
the bondholders and the creditor Governments
in proportion to the rights of each to share in
the portion of the annuity coupons not subject
to postponement, without allowing a priority
of any kind to any tranche or to any claim. It
will distribute the moneys relating to the
nonmobilizable portions of the annuity coupons
amongst the creditor Governments, the transfer
of these moneys taking place only after the
transfer of the moneys relating to the mobilized
or mobilizable portion of the annuity coupon.
IV

1. The service of interest and amortization
of the mobilizable or mobilized portions of the
annuity coupons shall be paid to the bank in
currencies other than the reichsmark by the
German Reich without any reservation, i. e., on
its own responsibility. The financial service of
these mobilizable or mobilized portions of the
annuities shall constitute a final and unconditional international obligation in the ordinary
financial sense of the word.
2. Furthermore, upon the request of the
Bank for International Settlements, acting as
trustee of the creditor powers, if and in so far as
the bank considers such a course opportune,
Germany undertakes to substitute for part A
of the coupons issuable bonds bearing its name,
representing, on the same conditions as this
certificate and the said coupons, an obligation
of the Reich. The amount and form of these
bonds and the specifications of the currency in
which they shall be issued shall be fixed by the
bank.
3. If any one or more of the creditor States
should intend to utilize internal issues of
German bonds in connection with operations for
the conversion of national debt, such bonds
shall be quoted only on their market of issue.
4. If and in so far as Germany shall redeem
Ill
reparation loans (general or conversion loans)
1. To this certificate are attached coupons which can be redeemed before their due date
representing each the whole of one annuity according to the issue conditions, the part of
payable, after deduction of the amounts the annuity destined for the service of the loan

APRIL, 1930

FEDERAL RESERVE BULLETIN"

so redeemed will accrue to Germany. It is
understood that the bank will, as far as possible,
make every effort to secure that loans will not
be issued without granting to Germany an
appropriate right of anticipated redemption.
5. Germany shall have the right to redeem
all or any part of the not yet mobilized annuities (parts A and B of the coupons) on a basis
of 5}i per cent discount.
V
1. The payment of the nonmobilizable portion of the annuity coupons shall be made to
the Bank for International Settlements by the
German Government in the same conditions as
that of the mobilized or mobilizable portion of
the annuity coupons.
2. Nevertheless (a) bonds representing the
nonmobilizable portion of the annuity coupons
cannot be created except with the consent of
the German Government; (6) it is in respect of
the nonmobilizable portion of the annuity coupons that the German Government may avail
itself of the right of postponing transfer or payment on the following conditions.
3. The German Government, by giving at
least 90 days' previous notice, shall have the
right to suspend for a maximum period of two
years from its due date all or part of the transfer of the postponable part of the annuity.
Transfer postponement thus declared shall
affect the postponable annuity as and from
that date on which transfer postponement
becomes effective.
4. If, during any annuity year, the German
Government shall avail itself of this power,
the transfers falling due during any second
year can not be postponed for more than one
year from their respective due dates, unless
and until the transfers due during the first
year shall have been effected in full, in which
case the transfers due during such second year
may be postponed tw^o years from their respective due dates; and the transfers due during
any third year can not be postponed at all
until the transfers due during the first year
have been effected in full.
5. At any time when postponement of transfer is in efi'ect but not until one year after it
has become effective, the German Government
shall have the right to postpone payment for
one year of 50 per cent of any sum the transfer
of which shall then be susceptible of postponement under the conditions stated above. This
percentage may be increased upon the recommendation of the advisory committee provided
for in part 8 (e) of the report of the experts of
1929.

183

6. Any sum in reichsmarks the transfer of
which is postponed shall be deposited to the
account of the Bank for International Settlements at the Reichsbank for eventual release of
balances not absorbed by deliveries in kind,
against payments in foreign currencies by the
German Government. At all times the employment, whether for investment or for deliveries in kind, of reichsmarks so deposited
shall be subject to agreement between the
Reichsbank and the Bank for International
Settlements.
7. In settling the way in which these sums
are to be employed account shall be taken of
the possibility of establishing special programs
in conformity with the procedure, provision for
which is made in Appendix I to Annex II to The
Hague protocol of August 31, 1929.
8. Interest at the rate of 1 per cent per annum above the prevailing Reichsbank discount
rate, or 5K per cent, whichever is lower, shall
be paid half-yearly by the German Government on the daily amount of the sums the
transfer or payment of which has been postponed and which have not been invested or
utilized for deliveries in kind. This interest
shall be treated in all respects similarly to the
principal sum upon which it accrues, and the
return upon that portion of the funds actually
invested shall be for the account of the creditor
powers.
9. At the end of any period in respect of
which a total or partial postponement of transfer or payment has been declared for any
monthly instalment, the instalment or part
thereof the transfer or payment of which has
been so postponed shall become immediately
payable to the Bank for International Settlements in foreign currencies, with the exception
of any amounts of which the creditor powers
have already had the benefit in some other
form in pursuance of the new plan. This
clause modifies in no way the functions of the
special advisory committee provided for in the
new plan.
10. In the event of any declaration of postponement made by Germany or at any other
time when the German Government declares
to the creditor Governments and to the Bank
for International Settlements, that it has come
to the conclusion in good faith that Germany's
exchange and economic life may be seriously
endangered by the transfer in part or in full
of the postponable portion of the annuities,
the Bank for International Settlements shall
convene the special advisory committee mentioned in chapter 8 (e) of the experts' plan of
June 7, 1929.

184

FEDERAL RESERVE BULLETIN

The special advisory committee shall forthwith consider the situation in all its aspects,
as provided in the plan, and shall indicate for
consideration by the Governments and the
bank what, in their opinion, are the measures
that should be taken in regard to the application of the plan. In application of article
124 of the report of the experts of June 7, 1929,
any recommendation of the committee affecting the rights of the creditor Governments
shall not bind the creditor Governments unless
it is accepted and
confirmed by the creditor
Governments wrho participated in the decision
of September 16, 1928, to set up the committee
of experts. Similarly, any recommendation
affecting the rights of the German Government shall not bind the German Government
unless it is accepted and confirmed by that
Government.
VI
The German Government undertakes during
the period up to March 31, 1966, to maintain
at the Bank for International Settlements a
non-interest bearing deposit equivalent to 50
per cent of the average deposit remaining in the
annuity trust account, but not exceeding
100,000,000 reichsmarks.
The bank shall to this end certify to the
German Government and to the creditor Governments every month the average of the balance at the close of each working day left by
the creditor Governments on deposit without
interest during that month, in respect of the
sums arising from the German payments under
the I)awes plan or under the new plan up to
the t me when they are drawn out by the
creditor Governments.
The first deposit will be paid b}^ the German
Government to the bank 15 days after the
putting into execution of the new plan, the
amount of the deposit being calculated on the
average of the daily balances above mentioned
left with the agent" general for reparation payments or the bank during the month ending
two working days prior to the date of deposit,
excluding sums returnable to the German Government under Annex III of The Hague protocol
of August 31, 1929.
The deposit shall be maintained at the
amount so calculated during one month. At
the end of this period the deposit will be adjusted by a further deposit or by the withdrawal of part of the existing deposit, on the
basis of the average of the daily balancfs
referred to above during the month ending two
working days before the date of the adjustment.

APRIL, 1930

A similar adjustment will take place at the
,end of the second month from the date of the
first deposit.
At the end of the third month, and thereafter at intervals of three months, the deposit
shall be adjusted on the basis of the average
of the daily balances referred to above during
the three months ending two working days
before the date of each such adjustment. The
intervals referred to in this paragraph may be
changed by agreement between the Governments concerned with the concurrence of the
Bank for International Settlements.
VII
As a collateral guarantee the German Government, without prejudice to its general liability
for payment of the annuities and its complete
freedom to make these payments out of its
general revenues and without prejudice to the
securities for the German external loan, 1924,
assigns, in pursuance of the provisions of the
relative annex of the Agreement of The Hague
of January, 1930, the proceeds of the customs,
tobacco, beer, and alcohol (monopoly administration) duties to the service of the present
certificate, including the service of any bonds
which may be issued in accordance with the
new plan.
The proceeds of the annual direct tax of
660,000,000 reichsmarks payable by the German
railway company are also assigned as a collateral guarantee to the service of the annuities.
The amounts of the
obligation of the German
Railway Compan3r will be paid in accordance
with the certificate
of debt of that company
on the first da}7 of each month, and if the full
amount of the previous monthly payment due
by the German Government has been paid, the
amounts so paid by the German Railway Company will be transferred, immediately on their
receipt, to the German Government.
VIII
The obligation of the German Government
in relation to the annuities for which this certificate provides shall not be deemed to have
been lulfilled until all sums, the transfer or payment of which may from time to time have been
suspended, have been either in fact completely
transferred to the Bank for International Settlements in the shape of approved currency
other than the reichsmark or employed for deliveries in kind.
IX
At the end of each annuity period, when the
Bank for International Settlements has re-

ceived from the German Government the
amounts due under this present certificate, the
bank will return to the Government the coupon
corresponding to the payments of that annuity
period. The certificate itself will be delivered
when all the coupons have been paid.
The foregoing provisions shall not be deemed
to affect the provisions of the new plan, which
are not dealt with in this certificate.
Annuity

185

FEDERAL RESERVE BULLETIN

APRIL, 1930

coupon (not including the service of the
German external loan, 1924)

The Herman Reich will
pay to the creditor powers
at the Bank for International Settlements on account of the nonpostponable part of the annuity
for the period from the
•, 19—, to the
,
19—, the sum of 612,000,000 reichsmarks.
The relative provisions
of the certificate apply to
the present coupon.
A note of the payment
of each instalment will be
endorsed on the present
coupon. When the full
amount of the above sum
has been paid this coupon
will be returned to the
German Government.
Berlin, the
, 1930.
Reichsschuldenverwaltung.
(Administration of the
debt of the Reich).

The German Reich will
pay to the creditor powers
at the Bank for International Settlements on account of the postponable
part of the annuity for
the period from the
,
19—, to the
, 19—,
the sum of
reichsmarks.
The relative provisions
of the certificate apply to
the present coupon.
A note of the payment
ANNEX V
of each instalment wrill be
endorsed on the present Provisions to be inserted or maintained
coupon. When the full
German bank law
amount of the above sum
has been paid this coupon
will be returned to the
ARTICLE 1
German Government.
Berlin, the
, 1930.
Remains unchanged.
Reichsschuldenverwaltung.
(Administration of the
ARTICLE 2
debt of the Reich).

ANNEX IV
Certificate of the Deutsche Reichsbahngesellschaft

By the present certificate, the undersigned
confirm that the German Railway Company
has to pay, as contribution to the annuity for
reparation purposes to be paid by the Reich, a
Reich tax amounting to 660,000,000 reichsmarks per annum.
This tax will fall due in equal monthly installments of 55,000,000 reichsmarks after the
end of each month on the first day of the following month, and—where the first day happens to be a Sunday or holiday—on the following working day. It shall be paid direct into
the account of the Bank for International Settlements at the Reichsbank. The payments
begin to fall due on October 1, 1929, and end

on April 1, 1966. Payments on the due dates
must be effected before 9 o'clock in the morning.
The tax is to be paid in accordance with
the conditions, privileges, and guarantees fixed
by the railway law of
, and, in
particular, in conformity with the following
provisions:
The tax shall be paid out of the operating
receipts of the company with recourse, if necessary, to all reserves. It shall rank after the
expenditure on personnel and on the same footing with expenditure on material and consumable stores. It shall enjoy priority over any
other tax now levied on the railway company,
or which may be levied in the future, and shall
rank prior to any other charge, by way of
mortgage or otherwise, on the company.
In conformity with paragraph 1 of article 5
of the law of
, the undertaking assumed by the compan}^ to pay the reparation
tax for the year 1965 and until March 31, 1966,
will be transferred to the organization to be
created to administer the railways of the Reich
in conformity with article 92 of the Reich constitution, the above provisions being applied
mutatis mutandis.

in the

Remains unchanged.
ARTICLE 3

Remains unchanged (in connection with
article 5 of the coinage law, 1924).
ARTICLE 6

The bank shall be administered by the
managing board of the Reichsbank (Reichsbank direktorium), which consists of a president
as chairman and the required number of members. In particular, the managing board shall
direct the currency, discount, and credit policy
of the bank.
The president and the members must be
German nationals.
The resolutions of the managing board are
passed by simple majority; in the case of an

186

FEDERAL RESERVE BULLETIN

equality of votes, the president has a casting
vote.
The president shall be elected by the general
council after the latter has heard the managing
board of the Reichsbank. Such election requires a majority of 7 votes and the confirmation of the president of the Reich, who signs
the deed of appointment. By the delivery of
the deed the president elected is duly appointed.
The members of the managing board shall
be appointed by the president after approval
by the general council. The same majority is
required for such approval as for the election of
the president. The appointment requires confirmation by the president of the Reich. The
members are duly appointed by delivery of the
deed of appointment. The appointment shall
be for a term of 12 years, subject always to the
condition that, on attaining the age of 65 years,
a member shall cease to hold office.
The term of the first-appointed members of
the managing board shall be as follows: With
the exception of the president they shall be
divided into three groups, of which the two
first must be equal in number and the third
group may be equal in number or less, but in
any case shall be as near as possible in number
to the first group. The first group shall contain the members youngest in years, and the
third group the oldest, the second group containing the remaining members. The members of the first group shall be elected for 12
years, the members of the second group shall
be elected for eight years, and the members of
the third group shall be elected for four years.
The same age limit of 65 years shall apply in
every case.
The term of office of the president is four
years. The president and the members are
eligible for reelection.
The election of a new candidate shall not
take place unless the candidate is approved by
the managing board. The approval shall be
considered as refused if two-thirds of the members have voted against the new candidate.
On important grounds the president or a
member of the managing board can be dismissed at any time without prejudice to their
contractual rights. Dismissal of the president
on important grounds can be voted by the
general council with the same majority as
provided for in paragraph 4 above, and in the
case of a member of the managing board it
can be voted likewise by the general council
with the same majority, but not without the
president's consent. The dismissal of the president or of a member of the managing board

APKIL, 1930

requires confirmation by the president of the
Reich.
ARTICLE

9 (first paragraph)

Remains unchanged.
ARTICLE 10

Remains unchanged.
ARTICLE 12

In every year a report as to administration
shall be presented to the general meeting. The
general meeting shall decide as to the balance
sheet and as to the distribution of profits in
accordance with this law.
The general meeting shall also determine the
"Satzung" and any changes in the "Satzung"
on the proposal of the managing board and
with the consent of the general council. The
"Satzung" and any changes therein shall be
published
by the managing board in the
1
' Reichsanzeiger.J'
ARTICLE 14

A general council of the Reichsbank shall be
constituted consisting of 10 members. These
members must be German nationals.
ARTICLE 15

The president of the Reichsbank managing
board shall be one of the members and also
chairman of the general council. .'
The term of office of a member of the general
council with the exception of the president
shall be three years.
ARTICLE 16

The members of the general council, with
the exception of the president, shall'be elected
by means of cooption by those members of the
general council who are in office at the time,
subject to confirmation on the part of such of
the shareholders as are German nationals.
Before the election the chairman of the general
council or his deputy shall consult the Government of the Reich concerning the election.
ARTICLE 17

The following classes of persons shall not be
elected as members of the general council:
(a) Officials in the immediate service of the
German Reich or of any German State, unless
they are in a permanent state of retirement.

FEDERAL RESERVE BULLETIN

A PHIL, 193G

187

(b) Persons who receive any payment from
ARTICLE 27
the German Reich Government or from the govThe preparation and completion, the issue,
ernment of any German State. Remuneration
for earlier services does not count as payment. the withdrawal, and the destruction of bank
notes shall be effected under the control of the
ARTICLE 18
president of the "Rechnungshof of the German
Reich" as commissioner.
Decisions of the general council shall require
The checking of the issue of notes shall be
a simple majority; if the votes are equally effected by numerically ascertaining the availdivided the chairman shall have a casting vote. able note cover as prescribed by law. The
This provision shall not apply to the election of examination shall take place on those days for
the president, nor to the assent to be given to the which the bank, according to article 36, paraappointment of the members of the managing graph 1, regularly publishes its returns. The
board.
reports as to such examination must be subAt each of its meetings, and at least once in mitted to the general council at each of its
three months, the general council shall examine meetings. No examination or discussion conthe reports submitted to it by the president. cerning the credit, discount, and currency
It shall decide on all proposals made to it by policy of the bank shall take place in connection
the president, provided that such decisions do with the checking.
not encroach upon the rights of administration
Statements as to the cover of notes and as to
of the bank reserved to the managing board.
the notes in circulation must be given to the
commissioner daily.
ARTICLE 21
Paragraphs 4 and 5 remain unchanged.
Add at end as new paragraph:
ARTICLE 28
"All functions confided to and obligations
imposed on central banks in general or any one
Remains unchanged.
such central bank specially by the new plan
(Hague Agreement, January, 1930) will be
ARTICLE 29
performed in Germany by the Reichsbank. All
functions confided to and obligations imposed
Remains unchanged.
on presidents of central banks in general or any
one such president specially by the new plan
ARTICLE 31
will be performed in Germany by the president
of the Reichsbank."
Remains unchanged.
ARTICLE 22

Remains unchanged.

ARTICLE 38, PARAGRAPH 4

While the note issue privilege is in force, the
Reichsbank may only go into liquidation with
ARTICLE 25
the consent of the Government of the Reich.
Thereafter the Reichsbank shall, before going
The Reich§bank is under obligation to accept into liquidation, give notice to the government
or make payment for the Reich at the request in good time.
of the Government authorities by any of its
ARTICLE 45
establishments appropriate for that purpose
and also to effect transfers without the transRemains unchanged.
mission of cash between the various financial
establishments of the Reich.
ARTICLE 46
Without prejudice to the rule contained in
the fourth paragraph of this section the bank
Remains unchanged.
shall be authorized to give credit to the Reich
for purposes of administration; but in each case
ANNEX VA
for a term not exceeding three months and only
up to the maximum amount of 100,000,000 Procedure jor the modification of certain proreichsmarks. On July 15 of each year the
visions of the German bank law
Reich must not be indebted to the bank in any
way.
Any proposal which may affect the provisions of Annex V must be submitted by the
Paragraphs 3 to 6 remain unchanged.

188

FEDERAL RESERVE BULLETIN

German Government to the board of directors
of the Bank for International Settlements.
The board may object to any such proposal,
on the ground that it is incompatible with the
new plan, by referring the question within a
period of two months, in the absence of an
agreement being reached, to an arbitrator
chosen by common consent, or, in default
of such consent, to the tribunal provided for
in the present agreement. The decision of the
arbitrator or tribunal shall be final and will
bind the Reich, the Bank for International
Settlements and the States signatory to the
present agreement.

SECTION

APRIL, 1930

4.—Reparation tax

(1) The company shall pay, as a contribution
of the Deutsche Reichsbahn to the reparation
annuities payable by the Reich, a tax of the
Reich to an amount of 660,000,000 reichsmarks
per annum (reparation tax). The reparation
tax shall fall due, in equal monthly installments of 55,000,000 reichsmarks, upon expiration of each month on the first day of
each subsequent month, and where the first
day is a Sunday or holiday, upon the first
working day following; the tax shall be pud
direct into the account of the Bank for International Settlements at the Reichsbank; (he
first payment shall fall due on October 1, 1929,
ANNEX VI
and the last payment on April 1, 1966, subject
Amendments to be made in the law concerning andto the provision of section 5 of the present law..
in the statutes of the Deutsche Reichsbahn- The payments shall be made before 9 a. in.
on the days fixed for the same.
gesellschaft
(2) The reparation tax shall be paid out of
the operating receipts of the company with
A.—German railway law
recourse, if necessary, to all reserves. It shall
rank after the expenditure on personnel and
SECTION 1.—Incorporation oj the company
on the same footing with expenditure on ma(1) A company is incorporated by the present terial and consumable stores. It shall enjoy
law to operate the railways of the Reich.
priority over any other tax now levied on the
(2) The company shall operate the railways railway company, or which may be levied in
of the Reich on behalf of the Reich in conform- the future, and shall rank prior to any other
ity with the provisions of the present law and charge, by way of mortgage or otherwise, on
the regulations annexed thereto. (Annex I.) the company.
(3) The company shall deposit with the
SECTION 2.—Conduct oj the undertaking
Bank for International Settlements a certificate
acknowledging its liabilities under paragraphs
No change.
(1) and (2) above. The reparation bonds
created
in virtue of section 4 of the law of
SECTION 3.—Capital
August 30, 1924, and handed over to the
(1) The original share capital of the company trustee shall be cancelled and destroyed in
shall be 15,000,000,000 reichsmarks, divided the presence of a representative of the company.
(4) The payment of the reparation tax by
into 2,000,000,000 reichsmarks of preference
shares (tranche A) and 13,000,000,000 reichs- the company shall be guaranteed by the
marks of ordinary shares subject to the special Government of the Reich. As soon as the
provisions laid down in section 26 of the stat- Bank for International Settlements notifies
the Government that a payment due has not
utes as regards the preference shares.
(2) For the purpose of obtaining the funds been effected either in whole or in part, the
required for the improvement, perfecting and Government shall authorize the company to
extension of the plant and rolling-stock of the devote to the payment of the arrears of repararailways of the Reich and for other extraordi- tion tax the proceeds of the transport tax
nary expenditure, the company is entitled to collected for the account of the Reich, in so
increase its capital by the issue of further prefer- far as such a tax exists. If these resources
ence shares (tranche B), the total nominal prove insufficient the Reich shall meet the
amount of such shares not to exceed the sum of deficit within one month of receiving notice
2,000,000,000 reichsmarks for each period of 10 from the bank, either by placing the sums,
years dating from the first issue of such prefer- required for the payment at the disposal of
ence shares. The increase of the capital is the company or by making a direct payment
conditional upon the assent of the Government into the account of the Bank for International
Settlements at the Reichsbank. Apart from
of the Reich.
the above provision, the transport tax shall
(3) formerly (2). No change.

be exempt from all special charges in respect
of reparations.
(5) The sums paid by the Government to
cover a deficit in the reparation tax and the
proceeds of the transport tax devoted by the
company to the same purpose in virtue of paragraph (4) above shall be repaid to the Reich in
conformity with the provisions of section 25,
paragraph (3), No. 3 of the company's statutes.
(6) The company is entitled, with the assent
of the Bank for International Settlements and
subject to the terms agreed on with the bank,
to discharge the reparation tax in whole or in
part by a capital payment. The Government
of the Reich may require the company to exercise this right of discharge provided that the
Reich places the necessary funds at the company's disposal. Any capital payment shall
extinguish the liability of the company under
paragraphs (1) and (2) in a corresponding
degree. The right of the Government of the
Reich provided for in the agreement of
of
relating to the redemption of reparation annuities remains unaffected.
SECTION

189

FEDERAL RESERVE BULLETIN

APRIL, 1930

5.—Concessions—Transfer
and obligations

of rights

(1) The Reich shall concede to the company
the exclusive right to operate the railways of
the Reich under the conditions set forth in this
law and in the company's statutes. The concession shall terminate on December 31, 1964,
provided that at the said date all the reparation tax payments payable up to that date,
including the payment falling due on January
2, 1965, have been discharged and all the preference shares have been redeemed. The liability of the company to the payment of the
reparation tax in 1965 and up to March 31,
1966 shall then be transferred, subject to the
continued application of the provisions of section 4, to the undertaking intrusted with the
operation of the railways of the Reich in accordance with article 92 of the constitution.
(2) In the event of the company's liability
to pay the reparation tax direct into the account of the Bank for International Settlements at the Reichsbank terminating before
December 31, 1964, the concession shall be
shortened accordingly and will terminate forthwith, provided that the preference shares have
all been redeemed by that date. On the other
hand, if at December 31, 1964, the whole of
the reparation tax payments due up to that
date have not been made, or if the whole of the
preference shares have not been redeemed, the
concession shall be prolonged under the same

conditions until such time as the payment of
the tax and the redemption of the preference
shares have been completed.
(3) to (7). No change.
SECTION

6.— Railway property of the Reich

(1) No change.
(2) The company shall be entitled to dispose
of property belonging to the railways of the
Reich where, in the opinion of the company,
such disposal is not inconsistent with reasonable operating needs. Nevertheless, before
disposing of any property the value of which
exceeds 250,000 reichmarks, the company shall
be required, subject to the provisions of section
8, to obtain the consent of the Government.
Where no other method of utilization has been
agreed upon with the Government of the Reich
the proceeds of sales shall be utilized for the
improvement, completion or extension of plant
and rolling stock.
SECTION 7.—Limited liability of railway

prop-

erty for debts of the Reich

No change.
SECTION

8.—Loans and credits

(1) The company shall have the right to
raise loans on its own account, provided that
their currency does not extend beyond January
1, 1965, and for the purpose of such loans to
mortgage the property of the railways of the
Reich.
(2) to (4). No change.
(5) For the purpose of guaranteeing loans
(pars. 1 and 2) by mortgages the company shall
be entitled to grant a collective mortgage
(Reichsbahnhypothek) on all land sites forming part of the property of the railways, together with all accessories, including rolling
stock.
SECTION 9.—Operation
(1) The company shall assume responsibility
for the safe operation of the railways of the
Reich and for such adequate maintenance, renewal, and development at its own expense of
the undertaking, with all its accessories, as will
meet the requirements of traffic and the progress in railway technique.
(2) Subject to these principles and other
legal prescriptions and within the limits of the
control reserved to the Reich (see sec. 31 and
following) the company shall be entitled to
operate the railways on its own responsibility.

190

FEDERAL RESERVE BULLETIN
SECTION

10.—Monopoly

No change.
SECTION

11.—Classification of railways

The government of the German State concerned and the company shall be entitled to be
heard on the question as to whether a railway
is to be considered as of general interest; the
final decision rests with the minister of the
Reich responsible for the control of the railways.
SECTION

12.—Transfer of rights under the concession

In special cases where it appears advantageous in the operation of the undertaking the
company may, with the assent of the Government of the Reich, transfer the concession of
individual parts of the system to third parties,
provided that the company's ability to pay the
reparation tax and the security of the same are
not diminished thereby.
13.—Services to or by departments of the
Governments
No change.

SECTION

14.—Exemption from taxation

No change.

APRIL, 1930

ileged position in virtue of the provisions of the
present law or of the company's statutes. The
laws and decrees relating to private railways
alone, in particular to their concession, operation or supervision, shall not be applicable to
the company.
(2) formerly (1). No change.
(3) formerly (2). No change.
(4) The company shall be entitled to claim
for itself and ite personnel the benefit of the
provision which exists in favor of the departments or undertakings of the Reich and their
personnel in the matter of the Versicherungs-,
Wirtschafts-, Arbeits-, Fiirsorge-, and Wohnungsrecht (insurance, economic, labor, pensions, and housing legislation). The right to
such benefit will be acquired by a declaration
to the Government of the Reich. Where a
special decree is required to establish the company's privileged position under the laws concerned, such decree shall be issued by the minis*
ter of the Reich responsible for the control of
the railways. The powers exercised by the
supreme authority of the Reich (Oberste
Reichsbehorden) in these matters shall, unless
otherwise stipulated in the laws, be exercised by
the director general.
(5) and (6). No change.
SECTION

17.—Company officials not State officials

The authorities of the company shall not be
15 (new).—Contributions toward the ad- authorities or official organs of the Reich.
They have, however, the same standing under
ministrative expenditure of the communes
public law and the duties connected therewith
In discharge of claims to a contribution to- as the Deutsche Reichsbahn undertaking prior
ward administrative expenditure put forward to the creation of the company. The company
by communes in which a relatively large pro- shall be entitled to use a seal displaying the
portion of railway staff is domiciled, the com- German eagle.
pany shall pay annually to the Government of
the Reich the fixed sum of 5,000,000 reichs- SECTION 18.—Representation of the company
marks agreed on with the Government, which
No change.
will lay down the principles of distribution
among the communes concerned. Should circumstances alter in the future, the amount pay- SECTION 19.—Legal position of the personnel
able by the company shall be fixed by a new
(1) The company shall draw up staff regulaagreement between the Government and the tions
(Personalordnung) in conformity with
company.
and subject to the following provisions. The
regulations shall define the rights, conditions
SECTION 15 (former).—Transport tax
of service, and salaries of the railway officials
(Beamten) on lines similar to those governing
Omitted.
the provisions in respect of officials of the
SECTION 16.—Other laws; their application to Reich. Where the company believes that the
special circumstances of the railway necessitate
the company
a deviation in its own regulations from the
(1) The company shall be subject to general provisions applicable to officials of the Reich,
legislation, in so far as it does not enjoy a priv- the company shall inform and discuss its intenSECTION

APRIL, 1930

FEDERAL RESERVE BULLETIN

191

tions with the Government of the Reich. If working hours of officials to employees and
no agreement can be reached, the final decision workers.
shall rest with the railway court. (Sec. 44.)
(4) and (5), formerly (3) and (4) No
Until the railway court takes a decision, the change.
existing regulations shall remain in force.
SECTION 20.—Protection of existing rights
Transitional provision
No change.
The regulations governing the rights, conditions of service and salaries of railway officials
SECTION 21.—Local employment of staff
on October 1, 1929, shall be considered as
No change.
having been issued in agreement with the
Government of the Reich.
SECTION 22.—Staff regulations
(2) The staff regulations may contain provisions in respect of the rights and conditions of
The staff regulations to be drawn up by the
service of employees and workers, where such
rights and conditions of service are not the company shall in particular determine the
matters, subject always to the prosubject of agreements based on recognized following
visions
of
this law:
general principle (wage agreements, working
(a)
The
conditions of appointment and proagreements, individual contracts).
motion of officials.
(b) Their classification.
Transitional provision
(c) Salaries, retaining pay, and all other
Matters regulated on October 1, 1929, allowances to officials, as also the pension scale
under sections 3 to 32 of the staff regulations and allowances to surviving dependants.
(d) Hours of work (hours on and off duty) of
or entrusted to the director general for settlement in virtue of the staff regulations shall be officials.
(e) Conditions of employment and appointconsidered to be matters which may be decided
by the staff regulations, save in so far as other- ment of candidates entitled to civil employment.
wise provided under section 19, paragraph 3.
(3) Save in so far as otherwise provided in
SECTION 23.—Duties of officials (Beamten)
the present law or in the company's statutes,
the general laws and ordinances governing
(1) No change.
labor, pensions, and insurance shall apply to
(2) In case of breach of duty the railway
the officials, employees, and workers of the official shall be subject to the same disciplinary
company.
In
particular,
legislation
on
the
procedure, with the necessary changes, as is
wxorking hours of employees and workers shall provided for at the time in question in the case
apply to the employees and workers of the of officials of the Reich. In any such case, the
company. In those branches of the service, director general or his authorized representahowever, in which the special conditions of the tives shall possess the powers of the supreme
railway system or the collaboration of officials, authority of the Reich (Oberste Reichsbeemployees, and workers calls for a uniform horden).
regulation of working hours, the company may
(3) No change.
secure such uniformity by applying the service
regulations for officials to the working hours of
SECTION 24.—Retirement on retaining pay
employees and workers. Those branches of
The company can place its officials tempothe service in which the service regulations
for officials may be given general application rarily on the retired list with retaining pay.
are enumerated under section A of Annex II The principles governing temporary retirement
to the present law; under section B are and the legal means of redress of officials
enumerated those branches of the service in against such a measure shall be laid down in
which such general application is not permis- the staff regulations. The provisions of the
sible. In the case of branches of the service staff regulations in force on October 1, 1929,
not included under either A or B, the regula- relating to temporary retirement, legal means
tion of working hours by general agreement, of redress, and the participation of representain particular by wage agreement, shall take tives of the officials in the decisions on legal
into consideration the principle established in means of redress, can not be amended without
sentence 3 in respect of the application of the the assent of the Government of the Reich.

192

FEDERAL RESERVE BULLETIN

25.—Persons entitled to civil employment
No change.

SECTION

26.—Reservations as to salaries

(1) In fixing the pay and permanent allowances of railway officials other than superior
officials (leitende Beamten) the company shall
act in conformity with the provisions of
section 19.
(2) formerly (3). This provision shall not
affect the right of the company to grant
bonuses on general principles for service in
particularly responsible posts or under particularly difficult circumstances, as well as for exceptional services rendered, provided that
the total of such bonuses does not exceed 4
per cent of the total expenditure on the pay
of officials. The principles in question shall
be established and published after consultation with the officials' council or with the
representative organization taking its place in
virtue of subsequent legislation.
(3) formerly (4). The company shall be free
to fix the emoluments of superior officials.
These officials will be designated by the board
of management. Should their number exceed
one-half per mille of the total permanent staff,
the assent of the Government of the Reich
must be obtained.
SECTION

27.—Unity of the undertaking

No change.
SECTION

28.—Domicile of the company

No change.
SECTION

29.—Accountancy

No change.
30.—Balance sheet, profit and loss
account
(1) No change.
(2) The Government shall have the right
to examine the company's balance sheet and
profit and loss account at any time, to inspect
all such books of account concerning the balance sheet and profit and loss account as are
kept at the head office of the company, and to
call for all necessary information, provided
that no unnecessary expenditure is thereby entailed on the company.
(3) No change.

SECTION

APRIL, 1930

31.—Government supervision

The Government reserves over the company
the rights following:
(1) The right to insure that the railways of
the Reich are administered in conformity with
the laws and in accordance with the requirements of traffic and of the German economy,
subject, at the same time, to the observance
of the special rights and duties arising in
respect of the management of the company
out of the provisions of the present law and the
company's statutes.
(2) The right to insure that the railways of
the Reich, together with all their works, rolling
stock, plant, and material, are maintained and
operated in a manner consistent with safety
and public convenience.
(3) The right to approve—
(a) The permanent closing for traffic of a
line or of an important station. Where the
company intends to close down a large workshop, it is sufficient if six months' notice is
given to the Government of the Reich.
(b) The general fundamental renewal or
alteration of technical installations, in particular the right to approve the extension or
restriction of electric traction or changes in the
system of safety appliances; the company shall
remain solely responsible for the technical
details of construction.
(4) The right to approve the foundation or
acquisition of other undertakings or participation in other undertakings.
(5) Such participation in fixing tariffs as is
specified in section 33.
(6) Such participation in fixing passenger
train services as is specified in section 35.
(7) The right to approve the abolition of any
of the existing classes in passenger traffic.
(8) The right to supervise the maintenance of
emergency services.
SECTION

32.— Government's right to information

(1) The Government may require the company to furnish all information of a financial
nature, together with all information required
in the exercise of its right of supervision. No
unnecessary expense is thereby to be caused to
the company.
(2) The minister of the Reich responsible for
the control of the railways is entitled to inspect
all plant and service departments throughout
the entire system, or to cause the same to be
inspected by his officials. He is entitled,
together with those of his officials intrusted

APRIL, 1930

193

FEDERAL RESERVE BULLETIN

with railway matters of the Reich, to travel
free of charge on the company's system.
(3) The Government of the Reich is entitled
to send one representative to the meetings of
the board of management in accordance with
section 16 of the company's statutes.
(4) The company shall inform the minister
of the Reich responsible for the control of the
railways of all important measures of a general
nature.
(5) Officials intrusted with the supervision
of the railways shall be bound to secrecy in
matters of a confidential nature concerning the
company.
SECTION S3.—Tariffs

36.—Negotiations with foreign Governments
No change

SECTION

37.—New works

(1) No change.
(2) Where new works or the modification
of existing railway works come within the
administrative sphere of the police of a particular German State, the company shall consult the authorities of the State in question
before definitely fixing its plans. Where new
works or modifications come within the administrative sphere of authorities of the Reich,
which have taken over duties of the police of
the State in question, such authorities of the
Reich shall also be heard. Where the hearing
leads to differences between the company and
the State or Reich authorities concerned, the
plans shall be finally decided upon by the
Government of the Reich. The plans for new
lines of the company shall always be decided
upon by the Government of the Reich. In
both cases the company shall submit the plans,
together with the memoranda, where such
have been drawn up by the authorities concerned, to the minister of the Reich responsible
for the control of the railways. The fixation
of the plan comprises the final decision in
respect of all matters affected by the drafting
of the plan.
(3) to (5) No change.

(1) No change.
(2) No change.
(3) The approval of the Government shall
be held to have been given if the company has
not received a reply from the minister of the
Reich responsible for the control of the railways
within twenty days of an application by the
company for approval. The definite decision
of the Government on any tariff proposal submitted by the company shall always be given
with the least possible delay. Where no
definite decision is pronounced within six
months, or where approval is withheld altogether or in part, the company may appeal
to the railway court. (Sec. 44.) In this
event the existing tariffs shall remain in force
until the railway court has made its award.
(4) No change.
SECTION 38.—Compulsory taking of lands
(5) The Government of the Reich may, in
addition, call for such tariff changes as it
(1) and (2) No change.
considers necessary. In the event of differences
(3) The expropriation or restriction of ownerbetween the Government and the company the ship of parts of the property of the railway
decision rests with the railway court (sec. 44). and of land sites owned by the company shall
require the previous assent of the Government
SECTION 34.—Protection of the reparation tax of the Reich.
and oj interest and sinking fund
SECTION 39.—Respective rights of road' and rail
The rights of supervision and control of the
When, at any point where a railway crosses
operation and tariffs of the company reserved
to the Government by the present law shall be a public road, the growth of traffic or any other
exercised in such a way as to secure the pay- change of circumstances renders necessary an
ments in respect of the reparation tax, the alteration either of the railway, or of the pubinterest and sinking fund for the bonds, the lic road, or of both railway and road, the costs
preference dividend, and the provision of funds shall be borne by the company if the alteration
is required exclusively to meet the needs of the
for the redemption of the preference shares.
railway service; they shall be borne by the
road authority if the alteration is required
SECTION 35.— Time tables
exclusively to meet the needs of road traffic;
in every case the other party shall bear a
No change.

194

FEDERAL RESERVE BULLETIN

share of the costs proportionate to the financial
advantages accruing to it as a result of the
alterations undertaken. The costs shall be
divided equitably between the two parties, if
the alteration is required to meet the needs
of both parties. In case of disagreement as
to the division of the costs, the question shall
be decided without appeal by the Minister of
the Reich responsible for the control of the
railways, except in cases where such decision
has to be given by an administrative tribunal.
SECTION

40.—Transfer oj duties incumbent upon
the transport administration

The Government of the Reich may, in agreement with the company, intrust individual
departments or officials of the company, in
particular the directorates (Reichsbahndirektionen), with the supervision on behalf of the
Reich of railways not operated by the company
(art. 95 of the constitution) and w^ith other
duties of transport administration. Such duties
are to be fulfilled in accordance with the instructions of the Government and for the account of
the same. Railway officials intrusted with such
duties are to be specially sworn in for these
functions.
SECTION

41.—Expiration of the concession

(1) As from the expiration of its concession
the company shall hand back to the Government in good condition and free of all cost the
undertaking and everything attached thereto,
together with an adequate supply of stocks and
stores and all subsidiary works and undertakings, subject to such agreements as may have
been concluded between the company and the
Government under section 8, together with all
holdings in other undertakings. On such
retransfer the Reich shall be held to take over
all the rights and obligations connected with
the company's operation.
(2) No change.
SECTION

42.—Liquidation

No change.
SECTION

43.—Staatsvertrag

(1) No change.
(2) Differences as to the interpretation or
application of the provisions of paragraph 1,
so far as they are applicable to the company,
shall be determined exclusively by the railway
court (sec. 44). In any such proceedings the
States shall be represented by the Reich.

SECTION

APRIL, 1930

44.—Railway court

(1) Disputes between the Government and
the company in respect of the interpretation
of the provisions of this law and of the company's statutes, or in respect of measures under
the law or the statutes, in particular tariff
matters, shall be referred to a special tribunal
(railway court).
(2) The railway court will be constituted at
the court of administration of the Reich
(Reichsverwaltungsgericht) as soon as the
latter is established. The railway court shall
comprise the chairman and two members of
a chamber of the court of administration appointed once for all by the president of the
said court of administration. In disputes on
tariff matters two further members will be
added, the one being appointed on the proposal
of the Government and the other on the proposal of the company in each case afresh by
the president of the court of administration.
Until the court of administration is established,
the railway court shall have its seat at the
Supreme Court of the Reich (Reichsgericht)
and shall comprise three permanent members
and two members appointed afresh in each
case. The permanent members, together with
two replacing members, shall be appointed by
the president of the Staatsgerichtshof and shall
be judges with special experience in matters of
public law. One of the permanent members
shall be appointed as chairman and another as
vice chairman by the president of the Staatsgerichtshof. Of the two members to be appointed afresh in each separate case the one
shall be appointed on the proposal of the
Government and the other on the proposal of
the company by the president of the Staatsgerichtshof. The provisions of section 19, sentences 2 and 3; sections 20 to 22, sections 24
to 26, section 28, paragraph 1; section 29,
paragraph 1 and paragraph 2, sentence 1, and
section 30 of the law relating to the Staatsgerichtshof (Reichsgesetzblatt 1921, p. 905)
apply mutatis mutandis. The detailed provisions governing procedure shall be fixed by
regulations to be issued by the president of
the court of administration, or until the constitution of this court, by the president of the
Staatsgerichtshof, and published in the Reichsgesetzblatt. The said regulations shall insure
the pronouncement of a decision by the railway
court with the minimum of delay.
(3) and (4) omitted.
SECTION

Omitted.

45.—Arbitrator

195

FEDERAL RESERVE BULLETIN

APRIL, 1930

SECTION

46.—Gold mark

Omitted.
SECTION

47.—-Temporary provisions

Omitted.
ANNEX I TO THE GERMAN RAILWAY LAW

B. Regulations of the German Railway Company

the preference shares of Group A in accordance
with the provisions of section 25 below.
(2) No change.
(3) Any series of preference shares may be
redeemed at any time in whole or in part,
subject to the special provisions of section 26
in regard to the preference shares of Group A,
Series I to V.
(4) No change.
(5) No change.
(6) The preference shares shall be redeemed,
subject to the special provisions in section 26
for the preference shares of Group A, Series I
to V, at rates to be determined by the company
at the time of issue. Where the rate is fixed
at more than 10 per cent above par, the assent
of the Government of the Reich is required.
(7) Subject to the above provisions, the
Government may call upon the company to
exercise its right of anticipatory redemption,
provided that the Reich places the necessary
funds at the disposal of the company.

1.—Name of the company
(1) No change.
(2) Its legal status is fixed by the Deutsche
Reichsbahngesellschaft law of August 30,1924,
as amended by the law of
and by
these regulations which form an integral part
of the law. The head offices of the company
shall be in Berlin.
(3) The company's financial year shall begin
on January 1 and shall end on December 31
of each year.
SECTION 5.—Division of proceeds from the sale
of preference shares
SECTION

SECTION

2.—Objects of the undertaking

No change.
SECTION

3.—Original capital

(1) The company's original capital shall consist of 15,000,000,000 reichsmarks divided into
2,000,000,000 reichsmarks of preference shares
(Group A) and 13,000,000,000 reichsmarks of
ordinary shares. The provisions of section 26
in regard to the preference shares of Group A,
Series I to V, remain unchanged.
(2) Further preference shares (Group B) to
increase its capital may be issued by the company in conformity with the provisions of
section 3, paragraph 2, of the law in virtue of a
decision by the board of management.
SECTION

4.—Preference shares

(1) One-fourth of the total proceeds from
the issue of the preference shares of Group A
shall be the property of the Reich and threefourths the property of the company. Notwithstanding, the proceeds from individual
issues may by agreement between the Government and the company be divided differently,
provided that the total shall be divided as
set forth above.
(2) During the first two years after the
commencement of the concession the company
shall sell preference shares to the nominal
value of 500,000,000 reichsmarks. The Government may claim that the whole of the proceeds of this sale shall be assigned to it.
SECTION

6.—Ordinary shares

No change.

(1) The preference shares shall be issued as SECTION 7.—Form and wording of the certificates
payable to bearer and be transferable by
No change.
delive^. They will carry with them a right
to the repayment of capital on or before the
SECTION 8.—Reparation bonds
termination of the concession and the right to
a preferential dividend. Should the preferOmitted.
ential dividend not be fully paid in any year
it shall be paid, out of the profits of subsequent
SECTION 9.—Other bonds
years. If a dividend is paid on the ordinary
shares an additional dividend shall be paid on
Omitted.

196

FEDERAL RESERVE BULLETIN

SECTION 10.—Organization of the company

No change
SECTION

11 —Board of management

(1) The board of management shall consist
of 18 members, who must be of German
nationality.
(2) formerly (2) and (3) The members of
the board shall be appointed by the Government of the Reich. If preference shares of
Group A have been issued, 4 of the 18 seats on
the board shall be assigned to the holders of
preference shares in such a manner that for
each 500,000,000 reichsmarks of shares issued,
one representative of such shares shall be
entitled to a seat on the board.
(3) formerly (4) No change.
(4) formerly (5) No change.
SECTION 12.—Qualifications

which term of office in conformity with the
above regulation ends on December 31 of the
years 1930, 1931, or 1932.
(2) and (3) No change.
14.—President of the board of management
(1) The board of management shall elect a
president each year at the beginning of the
financial year. He shall be eligible for reelection. The election requires confirmation by
the president of the Reich. When the holders
of preference shares of Group A are represented by three members on the board, the
president shall be chosen from among their
number.
(2) The board shall each year elect one or
two vice presidents, who shall be eligible for
reelection.
SECTION

oj the members of SECTION 15.—Functions of the board of manage-

the board

No change.
SECTION 13.—Replacement of members of the

board

(1) As from December 31, 1930, six members
of the board shall retire each year; subsequently
each member shall remain in office for three
years. A retiring member shall be eligible for
reelection. The appointment of new members
or reappointment of retiring members must
take place before the beginning of the following
financial year.
Transitional provision
The term of office of the present members
of the board of management shall expire:
On December 31, 1930, in the case of members due in any event to retire on that date
under the provisions hitherto in force.
On December 31, 1931, in the case of members due to retire on December 31, 1932, under
the provisions hitherto in force.
On December 31, 1932, in the case of members due to retire on December 31, 1934, under
the provisions hitherto in force.
Their successors will be appointed for three
years.
In deviation from this provision, the four
foreign members retire upon the coming into
force of the present law. Their successors will
be appointed at the same date by the Government of the Reich for the remainder only of
the term of office of the foreign members,

APRIL, 198O

ment
(1) The board of management shall control
the management of the company and shall decide on all questions of importance or of principle, or of general application, and more
especially on such questions and matters as are
set out below:
The appointment of the director general and
of the superior officers on the recommendation
of the director general;
The budget proposals;
The balance sheet and the profit and loss
account;
The distribution of profits;
The application of the liquid resources of the
company;
The authority to take up loans and credits at
the charge of the company, and to give mortgage security for the same;
The approval of any expenditure on capital
account beyond such limit as may be fixed by
the board;
The approval of the general regulations governing the legal status and conditions of service
and of pay of the employees, including the
general regulation of salaries and wages.
(2) and (3). No change.

SECTION 16.—Meetings of the board of manage-

ment

(1) The board shall hold ordinary meetings
at least every two months. It shall hold an
extraordinary meeting whenever at least six
members, or the president, or the Government
of the Reich, shall so require in writing.

APRIL, 1930

FEDERAL RESERVE BULLETIN

197

(2) and (3). No change.
SECTION 22.—Functions of the commissioner
(4) Decisions shall be taken by a simple
Omitted.
majority of members voting. The president
shall have a casting vote.
(5) The Government of the Reich may ap- SECTION 23.—Staff and expenses of the commissioner's office
point one permanent representative, who is
Omitted.
entitled to take part without vote in the meetings of the board of management and of its
committees. If he is prevented from attending, SECTION 24.—Exceptional powers of the commissioner
his permanent deputy may take part in the
Omitted.
meetings. The representative of the Reich
and his deputy shall be appointed at the begin- SECTION 25.—Financial management oj the
ning of each financial year.
company
(1) At the close of each financial year the
SECTION 17.—Permanent committee
company shall draw up a balance sheet and
(1) The board of management may delegate profit and loss account.
its power, so far as it thinks fit, to a permanent
(2) The net operating income, after paying
committee consisting of six members. One of the reparation tax and covering the operating
the members shall be chosen from the repre- payments out of operating receipts in accordsentatives of the preference shareholders of ance with the provisions of section 4 of the law,
Group A, if they so require.
shall be applied as follows:
(2) and (3). No change.
1. In the first place provision shall be made
for the service of interest on the bonds and loans
SECTION 18.—Remuneration oj members of the of the company and for the sums requiring to
board
be written off.
2. As cover for any operating deficit of the
No change.
company and as security for the prompt payment of the reparation tax and the prompt setSECTION 19.—Directorate (Vorstand) of the tlement of the interest and amortization paycompany
ments on the bonds and loans of the company,
a reserve (adjustments reserve) shall then be
(1) and (2). No change.
established.
Two per cent of the gross receipts
(3) The director general shall be appointed from the operation
the railways shall be paid
for a period of three years by the board of man- into this reserve offund
year, until it
agement, which shall first confer with the Gov- amounts to the maximum each
total
of 450,000,000
ernment of the Reich; he shall be eligible for re- reichsmarks.
appointment. The directors shall be appointed
When the adjustments reserve has reached
by the board on the recommendation of the
the
before-mentioned maximum amount, a
director general.
further reserve (dividend reserve) shall imme(4) No change.
(5) The board may at any time remove the diately be formed as security for the payment
director general. The removal of the director of the preference dividend on the preference
general shall not affect the rights to salary and shares. One per cent of the gross receipts from
allowances w^hich he may possess under his the operation of the railways shall be carried
to this fund, until it amounts to the maximum
contract of appointment.
(6) Where the Government of the Reich is total of 50,000,000 reichsmarks. Appropriaof opinion that the director general has violated tions from the net operating income to the
the company's statutes, it may require the adjustments and dividend reserves may not,
board of management to take a decision on however, in any one financial year together
exceed 2 per cent of the gross operation receipts.
the discharge of the director general.
The provision of section 4, paragraph 2, sentence 1 of the law applies to the dividend reserve
SECTION 20.—Functions of the directorate
as well as to all other reserves.
If sums have to be withdrawn from the
No change.
reserves after the maximum amounts have been
reached, the annual appropriations for their
SECTION 21.—Railway commissioner
replenishment shall immediately be resumed in
conformity wdth the above provisions.
Omitted.

198

FEDERAL RESERVE BULLETIN

APRIL, 1930

(3) The net profits remaining after the fore- SECTION 26.—Special provisions for series I to
going payments out of the operating income
V of preference shares, Group A
have been made shall be employed as in the
following order:
For the preference shares of Group A, Series
1. Arrears of dividend on the preference I to V, the following provisions apply:
shares of Group A, if any, shall first be paid in
1. The preference shares are expressed in
full. The current dividend on the said shares gold marks. Preference and supplementary
shall then be paid.
dividends, together with the redemption
2. Arrears of dividend on the preference amount of the preference shares, are payable
shares of Group B, if any, shall first be paid in in gold marks or their equivalent in reichsfull. The current dividend on the said shares marks. One gold mark within the meaning of
the present provision shall be equal in value to
shall then be paid.
3. Any sums which the Government of the %79o kilogram of fine gold. This value shall be
Reich may have paid under section 4, para- calculated on the price for gold in London
graph 4, of the law with a view to guaranteeing officially notified on the third working day
before the acceptance of the balance sheet by
the reparation tax shall be refunded to it.
4. The board, acting in agreement with the the board of management, and on the mean
Government of the Reich, shall decide on the rate for telegraphic transfers on London offiemployment of the remainder of the net profits cially quoted on that day on the Berlin Bourse.
In cases where on the third working day before
in accordance with the following principles:
In the first place at least 25 per cent of the the acceptance of the balance sheet no official
remainder, not including the balance brought price for gold is published, the calculation shall
forward from the previous year, shall be carried be based on the last London price for gold
to the dividend reserve up to an amount not officially notified before that day. If the price
exceeding 100,000,000 reichsmarks. If the sums per kilogram of fine gold works out at not more
have to be withdrawn from the dividend then 2,820 and not less than 2,760 reichsmarks,
reserve after the maximum limit has been 1 reichsmark in legal tender shall be paid for
reached, appropriations for its replenishment each gold mark owed.
shall be resumed in conformity with the above
In respect of the dividend on each preference
provisions.
share of Series IV and V of Group A, an installSpecial reserves may also be established. A ment in reichsmarks will be paid on January 2
special preference share redemption reserve of each year, in conformity with the terms of
shall be established as from the year 1935 and issue.
may be established at an earlier date. No
Upon the redemption of preference shares
reserve shall be established for the redemption which have been called in, gold marks will be
of the ordinary shares.
converted into reichsmarks in the manner
If the board decides to distribute any re- provided for the dividend payments, the calcumaining profits, they shall be applied: As to lation being based on the quotations of the
one-third as a supplementary dividend for the third working day before redemption.
preference shares of Group A, and as to two2. The preference shares may not be rethirds as a dividend on the ordinary shares.
deemed in whole or in part until the commenceProvided, however, That if preference shares ment of the sixteenth year from the date of
of Group A are not outstanding to the full issue. Notwithstanding, if the liability of the
amount of 2,000,000,000 reichsmarks, such a company to pay the reparation tax lapses at an
portion of the remaining profits as would have earlier date, the company shall be at liberty to
belonged to those preference shares which are redeem the preference shares from the date on
not outstanding shall belong to the ordinary which the said liability lapses.
shares.
3. The redemption rate of the preference
(4) From the reserve constituted under sec- shares, together with current dividends and
tion 25, paragraph 2, point 3, of the company's dividend arrears, shall be determined as follows:
statutes appended to the railway law of August Upon redemption before the expiration. of the
30, 1924, 450,000,000 reichsmarks shall be car- twenty-fifth year from the transfer of the conried to the adjustments reserve. Any balance cession to the company, the redemption rate
then remaining shall be transferred to the shall be 20 per cent above par, upon redemption
dividend reserve.
from the twenty-sixth to the thirty-fifth year,

FEDERAL RESERVE BULLETIN

APRIL, 1930

199

inclusive, it shall be 10 per cent above par. V.—Staff accompanying passenger and goods
After the thirty-fifth year redemption will take
trains
place at par.
VI.—Traction service
4. The preference shares carry a claim to
repayment of the capital by December 31,
1. Inspection staff.
1964, at the latest.
2. Accountants and clerks.
3. Staff of locomotives and self-propelling
ANNEX II TO THE GERMAN RAILWAY LAW
vehicles.
(A) Under section 19, paragraph (3) of the
law, the company may apply the working VII.—Shipping in inland and coastal waters,
hours of officials to employees and workers ir
not including chain tugs on the Main
the following branches of the service:
1. Deck staff.
2. Engine-room staff.
I.—Permanent way inspection service
3. Dock staff.
1. Gatekeepers (men and women).
4. Other staff.
2. Flagmen.
3. Other staff engaged in permanent way VIII.—Office staff of the central administration,
inspection.
the Reichsbahn directorates, and the inspection
departments
II.—Service of block signalmen on the open line
(B) The company is not authorized to apply
the working hours of officials to employees and
III.—Station service
workers in the following branches:
1. Administrative staff (including heads of
I. Upkeep of permanent way and telegraph
departments).
lines, storehouses for super-structure materials,
station and other buildings, stone quarries,
2. Accountants and clerks.
3. Circulation of trains and inspection service ballast works, gravel pits, timber impregnation
within the meaning of section 9 of the Fahr- works, horticulture, forestry, and agriculture.
dienstvorshriften (train service regulations).
II. Reichsbahn repair shops and exploita4. Transmission of telegraph and telephone tions run in connection therewith, such as
power stations, gas works, and laboratories.
messages.
III. Telegraph workshops.
5. Points in signal cabins or operated by hand.
IV. Laundries.
6. Shunting.
7. Ticket collectors (including officials supV. Workshops of the railway depots.
plying information to the public).
VI. Staff employed exclusively as warehouse
workers on warehouse platforms or in tranship8. Watchmen and messengers.
9. Other station services, where the staff in ping sheds where more than 25 of such workers
question is partly employed in other branches are usually employed.
indicated under A.
ANNEX VIA
IV.—Cash and dispatch service (unless otherwise
provided under B, Section VI)
Procedure to be followed in the event of any subsequent modification of the railway law and
1. Administrative staff (including heads of
regulations
departments).
2. Accountants, clerks, and cashiers.
For the duration of the concession of the
3. Ticket offices (including inquiry offices).
company, the Reich may—in conformity with
4. Dispatch of luggage and express goods.
the procedure outlined hereafter—introduce in5. Dispatch of goods by fast or slow train to the railway law and regulations modifications
and of livestock.
which may appear justified by changed circum6. Reception, delivery and loading of lug- stances, or the real utility of which has been regage and goods.
vealed by past experience, provided that such
7. Railway cars service and service for the modifications respect the provisions relating to
dispatch"of trains.
the reparation payments and the pledges
8. Watchmen and messengers.
provided therefor and the independent char9. Other staff employed in the cash and dis- acter of the company with its autonomous
patch service.
administration.
103025—30

200

FEDERAL RESERVE BULLETIN

The proposed modifications to the law shall
be discussed in a permanent committee of four
members, which shall decide whether the said
modifications conform to the provisions of paragraph 1 or not. When a decision of the committee (whether affirmative or negative) is
taken unanimously such decision shall be final.
Should the committee not arrive at a unanimous decision, existing conditions will be maintained. The question may, however, be submitted for decision to the tribunal, for wilich
provision is made in The Hague agreement of
January, 1930, with Germany, at the request
of any member of the committee.
The decision may also be intrusted to a single
arbitrator, in the person of the chairman or one
of the members of the Court of Interpretation
and Arbitration, upon the unanimous desire
of the committee.
The committee will take its decision within a
period of two months from the date on which
the four members of the committee are notified
of the proposed modifications.
The members of the permanent committee
must be experts, competent on the questions
treated in the railway law. They are to be appointed for five years from the coming into
force of the new railway law. Two members
will be nominated by the Government of the
Reich and two by the Governments of the other
powers which issued the invitations to The
Hague conference. Should a member of the
committee be prevented from attending in any
particular case, the Government of which he
is a national will appoint a deputy for this
particular case.
The Government of the Reich will notify the
members of the committee of the proposed
modifications. The German members are to
come to an agreement with the other members
as to the date and place of meeting of the committee. The expenses of the committee will be
borne by the Government of the Reich.
In deviation from the preceding provisions,
the Reich may modify independently, after
hearing the board of management, articles 11,
20, 21, 25, 28, 35, 36, 37, 38 and 40 of the law,
which deal with matters that are of minor importance from the point of view of the agreement. Such modifications, however, shall not
entail fresh charges for the company; furthermore, they must respect the provisions concerning reparation payments and the pledges
provided therefor and the independent character of the company with its autonomous
administration.

APRIL, 1930'

ANNEX VII
Assignment by way of collateral guarantee of certain revenues of the Reich
1. The German Government assigns, subject
to the charge in favor of the trustees for the
German external loan, 1924, the proceeds of
the customs, of the tobacco taxes, the beer tax,
and the tax on spirits (administration of the
monopoly) for the service of the certificate
representing the annuities payable by Germany, including the service of any bonds which
may be issued under the provisions of the new
plan. To this end, the Reich, without prejudice to its general responsibility for the payment of the annuities and its entire discretion
to effect these payments out of general revenues, will secure out of the receipts from the
above revenues by way of collateral guarantee
the sums necessary to cover the annuities as
elsewhere determined. The assignment constitutes a negative pledge and is ruled by the
following conditions:
2. The Reich will not create any charge on
the assigned revenues for any other loan or
credit without the consent of the Bank for
International Settlements. If any such charge
is created on the assigned revenues with the
consent of the bank, the charge for the annuities payable by Germany will rank ahead of
any such other charge.
3. If at any time the total yield of the
assigned revenues should fall below 150 per
cent of the highest budgetary contribution payable by Germany under the new plan, the
bank may require that additional revenues
suPcient to assure the immediate restoration
of the yield to the above percentage be assigned
and the German Government will forthwith
comply with that requirement accordingly.
4. Should the German Government change
the system of collecting any of the assigned
revenues, then the receipts secured to the Reich
by the new system will be assigned in substitution for the original tax.
5. The provisions of this annex shall takeeffect in substitution for the provisions of the
protocol concerning the contributions to be
made by the German Government and the
institution of control over the revenues from
the customs and from the taxes on spirits, beer,
tobacco, and sugar, which is Annex I to the
agreement between the Reparation Commission
and the German Government for the carrying
out of the report of the first committee of

APRIL, 1930

FEDERAL RESERVE BULLETIN

201

experts, London, August 9, 1924, and that of debt, with coupons attached, issued and
protocol shall cease to have effect accordingly. delivered by the German Government pursuant
to the terms of the plan, the receipt of which
ANNEX VIII
the trustee acknowledges and a copy of which
is attached hereto as Exhibit A;
Form, of trust agreement
(c) To hold in safe-keeping as trustee, until
the same shall be duly discharged, the certificate
Entered into this •
day of •
1930, issued and delivered by the German Railway
between the Governments of
et cetera Company in acknowledgment of its liability,
(hereinafter called the creditor Governments), pursuant to the terms of the plan, the receipt
of the one part, and the Bank for International of which the trustee acknowledges and a copy
Settlements (hereinafter called trustee), of the of which is attached hereto as Exhibit B ;
second part,
(d) Commencing
, 1930, to receive in
Witnesseth:
trust each month from the German Reich for
Whereas the creditor Governments in con- the account of the creditor Governments signanection with the carrying out of the new plan tory hereto and for the account of the trustees
as denned in The Hague agreement of January, of the German external loan, 1924, all payments
1930 (hereinafter called the plan) desire jointly thereafter to be made by Germany under the
to appoint the Bank for International Settle- plan and the above-mentioned certificate of
ments their joint and sole trustee to receive, debt representing the service of the said loan
manage, and distribute the annuities payable by or the payment of the sums attributable to the
Germany, and to perform other functions with said creditor Governments on account of the
respect thereto, all as provided by the plan; and, nonpostponable annuities and the postponable
within the limits of the statutes of the bank.
annuities as defined and specified in the plan.
Whereas the Bank for International SettleA certified schedule stating the monthly and
ments has taken note of the provisions of the annual
during the whole period of the
plan and is prepared to accept the appointment annuitiesshare
of
each
creditor Government signaas such trustee;
tory
hereto
in
the
and postTherefore, it is agreed between the parties ponable portions andnonpostponable
in
the
total
of
the
German
hereto that the description, the conditions and annuity is attached hereto as Exhibit C.
the limitations of the functions of the trustee
with respect thereto and of the relations, obligaARTICLE III
tions, and rights of the parties are those set
forth as follows:
Except during a period when the transfer of
the postponable annuity is suspended, as proARTICLE I
vided for in Article XI below, the trustee will
The creditor Governments jointly appoint accept only currencies other than reichsmarks
the Bank for International Settlements their in payment of the monthly installments of the
joint and sole trustees for the purposes herein annuities payable by Germany, subject always
defined. The bank accepts the appointment to the proviso that the trustee may accept
and agrees to carry out the trust on the condi- reichsmarks, in each month of a given annuity
year, for an amount equal to one-twelfth of the
tions herein stated.
total of any current annual program for payments under delivery in kind and reparation
ARTICLE II
recovery act procedures for the year in question.
The trustee is empowered and agrees—
In arranging for the receipt of currencies
(a) To receive any balances transferred by other than reichsmarks the trustee, after haying
the agent general for reparation payments on been notified of the requirements of the creditor
the winding up of his accounts, subject to the Governments, will inform the German Govrights of the different creditor Governments in ernment and, at the same time, the Reichsthe distribution of such balances and to any bank, at least one month in advance of the due
claims and commitments thereon wrhich may dates for payment, of its preferences relative
be outstanding at the time of transfer, all of to the currencies which it desires to have paid
which, as shown by the records of the agent into its account. If these preferences are not
general for reparation payments, will be re- complied with, the trustee is authorized to
ported to the trustee w^hen the transfer is made; accept payment from Germany entirely in the
(6) To hold in safe-keeping, as trustee, until currencies of the creditor countries whose nathe same shall be duly discharged, the certificate tionals were members of the committee of ex-

202

FEDERAL RESERVE BULLETIN

perts and as nearly as may be in proportion
to the respective shares of these countries, it
being understood that payments in currencies
other than reichsmarks which are not based
upon the gold or gold exchange standard will
only be made with the consent of the trustee.
The trustee will give receipts to the German
Government for all sums which it pays or
causes to be paid both on account of the postponable and on account of the nonpostponable
annuity. These receipts will show the currencies received as well as the equivalent value in
reichsmarks, with which the German Government will be credited.
At the end of each annuity 37ear, when the
trustee has received from the German Government the sums due for that year, in accordance
with the plan, the trustee shall surrender to the
German Government the coupon of the certificate of the German Government which corresponds to the payments of the year in question.
The trustee takes note of the undertaking
given by the German Government that the
reichsmark shall have and shall retain its convertibility in gold or foreign exchange as provided in section 31 of the law of August 30,
1924, and that, in all circumstances, for the
general purposes of the plan, the reichsmark
shall have and shall retain a mint parity of
K790 kilogram of fine gold, as defined in the
German coinage law of August 30, 1924.
The sums paid in currencies other than reichsmarks into the annuity trust account shall be
calculated in reichsmarks, subject to the provisions of the above undertaking, at the average
of the mean rates (Mittelkurs) prevailing on
the Berlin Bourse during the period of 15 days
preceding the date of payment.
The sums in reichsmarks paid by the German
Railway Company to the account of the trustee
at the Reichsbank under the terms of the abovementioned certificate of liability delivered by
that company, for an amount of 55,000,000
reichsmarks on the first day of each month in
respect of the previous month, shall, until the
due discharge of the certificate be placed each
month at the disposal of the German Government by the trustee as soon as they have been
received, provided that the installment of the
annuity payable by the German Government
on the 15th day of the preceding month has
been duly received.

APRIL, 1930

received into an annuity trust account. All
the sums paid by Germany on account of the
annuities shall be managed by the trustee
and shall be employed and distributed each
month upon receipt as follows, on the understanding that the obligations of the trustee
in regard to the said sums shall be only those
normally incumbent upon a banker for the
ixecution of a trust agreement, and in no case
shall the trustee permit the accounts or credits
of any creditor Government to be overdrawn.
(a) In the first place, the sums required
monthly for the service of the German external
loan, 1924, shall be transferred to the account
or order of the trustees of the said loan, in
conformity with the terms of the general bond
iecuring it, on the understanding that this
appropriation shall have priority over all
others. This service constitutes a first charge,
expressly provided for as such, on the German
annuities, whether nonpostponable or postponable.
(b) One-twelfth of the share of each creditor
Government in the nonpostponable annuity
shall be forthwith allocated in the books of the
trustee to that Government within the annuity
trust account in currencies other than reichsmarks. If one of the Governments has mobilized a part of the nonpostponable annuity
allotted to it, there shall be retained every
month, out of the share due to that Government in virtue of the present paragraph, the
sums required for the service of the obligations
issued and outstanding, in conformity with
the conditions of the contracts made on the
occasion of such issues; these sums, deducted
from the share of each of the Governments
concerned in the issues, shall be transferred
each month to a trustee account relating to
the loan thus issued and shall remain there
until the moment when payments have to be
made for the interest service and amortization
of the obligations, in accordance with the terms
of the respective loan agreements.
(c) One-twelfth of the share due to each
Government for settling the quota of deliveries
in kind allotted to it in a given year shall be
forthwith allocated in the books of the trustee
to that Government within the annuity trust
account in reichsmarks, if no other provision
has been made by the Governments concerned,
including Germany, for the settlement of this
quota.
(d) One-twelfth of the sum due to each
ARTICLE IV
Government in each annuity, after the allocaAll the sums transferred from the account tions provided in paragraphs (b) and (c), shall
of the agent general for reparations or paid be forthwith allocated in the books of the
on account of the German annuities shall be trustee to that Government within the annuity

trust account in currencies other than reichsmarks.
(e) In application of article 88 of the annexes
to the experts' report of June 7, 1929 (hereinafter called the "experts' report"), the sums
allocated as provided in the preceding paragraphs will remain without interest in the
national subdivisions of the annuity trust
account up to the equivalent of the following
minimum amounts:

ARTICLE VII

The trustee is authorized and agrees in
connection with delivery in kind, reparation
recovery act, and other similar systems to
pay in reiehsmarks up to the amount of the
monthly reichsmark balances available to the
respective creditor Governments on cheques,
drafts, or orders duly executed by the authorized representative of any such creditor GovReiehsmarks ernment. The creditor Governments respec68, 037, 500 tively agree to keep the trustee advised of the
26, 587, 500 identity and authority of such representatives
13, 887, 500 and to supply it with their specimen signatures.

France
Great Britain
Italy
Belgium
Rumania
Yugoslavia
Greece
Portugal
Japan
Poland

7, 512, 500
1, 312, 500
5, 462, 500
450, 000
862, 500
862, 500
25,000

125, 000, 000

All sums standing in the national subdivisions
of the annuity trust account in excess of the
above minimum noninterest-bearing deposits,
may be freely withdrawn from the said account
by the creditor Governments, in accordance
with the following paragraph:
(/) Subject to the foregoing and in accordance
with the provisions of the plan, the trustee is
authorized and agrees to transfer at such dates
as may be indicated any sum allocated to any
Government within the annuity trust account
to any interest-bearing account in the Bank for
International Settlements or to any other bank
or banker, or otherwise to dispose of it as the
interested creditor Government may direct;
but in no case will the trustee permit the accounts or credits of any creditor Government to
be overdrawn.
ARTICLE V

The trustee shall not be bound to pay any
interest on balances in the annuity trust
account.
ARTICLE VI

Any exchange profit or loss arising from
transactions carried out by the trustee for
account of creditor Governments in connection
with the management of the German annuities
shall, unless otherwise settled, be credited or
charged quarterly by the trustee to the accounts
of the Governments concerned, in proportion
to their respective shares in the principal
moneys involved, subject to the provisions of
Article IV.

203

FEDERAL RESERVE BULLETIN

APRIL, 1930

VIII
Payment by the trustee in compliance with
the documents referred to in the preceding
article shall constitute full discharge to the
trustee for the reichsmark payments made.
Payments in currencies other than reichmarks
made or transferred out of the annuity trust
account upon the order of a creditor Government or effected under the authorizations
contained in Article IV above, shall constitute
a full discharge to the trustee for the payments
made. In addition, as soon as possible after
the close of each annuity year when the respective creditor Governments shall have received
the annual account and auditor's report referred
to in Article XVII hereof, the competent
authority of each creditor Government shall
give the trustee a final global quittance and
release for the actual payments made, during
the annuity year in question, to or upon the
order of the creditor Government concerned,
as disclosed by the said accounts.
ARTICLE

ARTICLE IX

The trustee declares that it has taken note
that the German Government undertakes during the period up to March 31, 1966, to maintain at the bank a noninterest-bearing deposit
equivalent to 50 per cent of the average deposit
remaining in the annuity trust account, but
not exceeding 100,000,000 reiehsmarks.
The bank shall to this end certify to the
German Government and to the creditor
Governments every month the average of the
balances at the close of each working day left
by the creditor Governments on deposit without interest during that month, in respect of
the sums arising from the German payments
under the Dawes plan or under the present
plan up to the time when they are drawn out
by the creditor Governments.

204

FEDERAL RESERVE BULLETIN

The first deposit will be paid by the German
Government to the bank 15 days after the
coming into force of the new plan, the amount
of the deposit being calculated on the average
of the daily balances above mentioned left
with the agent general or the bank during the
month ending two working days prior to the
date of deposit, excluding sums returnable to
the German Government under Annex III of
The Hague protocol of August 31, 1929, or
any supplementary arrangement. The deposit
shall be maintained at the amount so calculated
during one month. At the end of this period
the deposit will be adjusted by a further deposit
or by the withdrawal of part of the existing
deposit on the basis of the average of the daily
balances referred to above during the month
ending two working days before the date of the
adjustment. A similar adjustment will take
place at the end of the second month from the
date of the first deposit. At the end of the
third month, and thereafter at intervals of
three months, the deposit shall be adjusted on
the basis of the average of the daily balances
referred to above
during the three months
ending two wTorking days before the date of
each such adjustment. The intervals referred
to in this paragraph may be changed by agreement between the Governments concerned with
the concurrence of the trustee.
The trustee will accept this deposit under the
conditions set out in this article.
ARTICLE X

The trustee declares that it has taken note
of the provisions of the plan with respect to
the functions assigned to the Bank for International Settlements in connection with any
declaration of the German Government requiring the convening of the special advisory committee, and the trustee agrees and the creditor
Governments confirm that the trustee shall
carry out the functions assigned to it in that
respect and in the manner described in the plan.
The trustee takes note that, in application of
article 124 of the experts7 report, any recommendation of the advisory committee affecting
the rights of the creditor Governments shall not
bind those Governments unless it is accepted
and confirmed by the creditor Governments
which participated in the decision of September
16, 1928, to set up the committee of experts;
and that similarly any recommendation affecting the rights of the German Government shall
not bind that Government unless it is accepted
and confirmed by that Government.

APRIL, 1930

ARTICLE

Immediately on receiving from the German
Government in conformity with the plan
notification of suspension of transfer of the
whole or part of the postponable annuity the
trustee shall inform the creditor Governments
accordingly.
(a) As soon as this suspension becomes
effective:
(1) The trustee shall continue to transfer
each month the sums necessary for assuring
the service of the external loan of 1924 in accordance with paragraph (a) of Article IV of
this contract;
(2) The trustee shall continue to credit or
transfer each month in accordance with the
provisions of paragraph (b) of Article IV of this
contract the sums paid by the German Government in respect of the nonpostponable annuity;
(3) In the event of a partial postponement,
in any year, of transfer or of payment of the
postponable annuities, the trustee shall distribute the part of the postponable annuities
actually paid and transferred in that year in
such a manner as to insure, so far as may be
possible, that the receipts of the several creditor
Governments out of the aggregate payments
actually transferred by Germany (whether on
account of the unconditional or of the postponable annuities) shall be proportionate to
their respective shares in the total annuities
due by Germany under the plan in respect of
that year, provided always that the creditor
Governments entitled to an allocation out of
the unconditional annuities shall in no case
receive less than the allocations due to them,
respectively, out of those annuities;
(4) Should the amount of the postponable
annuities paid and transferred by Germany be
insufficient to provide in full to each of the
creditor Governments its due share of the
total German payments transferred, having
regard to the allocations out of the unconditional annuity referred to in the previous
paragraph, the trustee shall, in accordance
with the provisions of paragraph 202 of the
annexes to the experts' report withdraw from
the guarantee fund, to be constituted by the
French Government, the sums necessary to
make up the deficiency to each of the creditor
Governments concerned. The sums so withdrawn from the guarantee fund shall be repaid
to that fund in accordance with the plan at
the end of the period of postponement.
(6) During the course of a partial or total
postponement of transfer the trustee may

FEDERAL RESERVE BULLETIN

APRIL, 1930

accept from Germany payments in reichsmarks in respect of the amounts of which
transfer has been postponed and of which
payment has not been postponed under the
plan. The trustee is authorized to give to the
German Government receipts for such payments which will be in the nature of temporary
acknowledgments. These acknowledgments
will be converted into final receipts pro tanto
on the transfer of the amounts postponed, or
on the utilization of the reischsmarks accepted
by the trustee under this paragraph for payments in respect of deliveries in kind or in
respect of reparation recovery acts and similar
procedures under the special programs referred
to in Annex IV of the experts' report.
(c) Any sums accepted in reichsmarks by
the trustee under paragraph (6) above will
be distributed in the form of credits in the
trustee's books in such a way as to complete
the credits due to each creditor Government for
the year in question under the plan, and the
guarantee fund in so far as it has been drawn
upon. These reichsmarks will be administered
by the trustee in the manner provided in the
plan.
(d) The parties to this contract agree that
all investments of such reichsmaxk funds
effected by the trustee shall be made for the
individual account of the creditor Governments, as their interests require, for their
advantage and at their risk. In particular
the proceeds of investment of reichsmarks
credited to the gurarantee fund will be assigned
to the French Government.
ARTICLE

XII

The creditor Governments and the trustee
agree that the trustee shall have exclusive
authority to act as agent of the creditor
Governments, or any one of them, so far as
concerns the operations relating to the mobilization of the German annuities, and that ii?
the discharge of the functions and in the use
of the authority intrusted to it as agent in this
matter, the trustee will be guided by the provisions of the plan which govern mobilization.
In particular the trustee will abide by the
following provisions:
(a) When it appears to the trustee practically
possible to proceed with an issue of bonds representing the capitalization of a part of the annuity, the trustee will inform the creditor Governments. The possibility of proceeding with
such an operation shall also be considered by
the trustee whenever so required by one or
more of the creditor Governments.

205

If, after examination, and in cases other than
that dealt with in the second part of paragraph (b) below, the trustee considers such an
operation inopportune, it shall indicate to the
Governments concerned the reasons for this
opinion.
(b) If one or more of the Governments concerned intend themselves to proceed in their
own markets with an issue, the trustee shall fix
the mimimum conditions of issue at the time
of the operation.
If, however, such an operation is intended in
connection with internal conversion operations,
the Government concerned will be free to offer
the bonds on its own market on whatever
conditions it may be able to obtain, without
its being necessary for the trustee to consider
whether the creation of the bonds is opportune,
and on the understanding that the bonds will
only be quoted on the market of issue.
(c) If one or more of the Governments concerned propose an international issue on other
markets than their own respective markets,
the trustee shall at their request, if it considers
on examination that conditions on these markets
permit such an operation, take steps to proceed
with this issue, and determine, after making
sure that the central banks concerned have no
objection, the markets on which such offers
may be made.
In the case of such issues, the various Governments having a share not yet mobilized in the
nonpostponable portion of the annuity shall
be given the right to participate in proportion
to the following figures: France 500, Great
Britain 84, Italy 42, Japan 6.6, Yugoslavia 6,
Portugal 2.4.
No issue of an international character may,
however, be made in the market of any of the
countries the Government of which has signed
this trust agreement, without the approval of
that Government both as regards the amount
of the issue and as regards the conditions on
which it shall be authorized.
(d) If it is decided to proceed with an issue
and if one or more of the creditor Governments
so request, the trustee shall arrange, in agreement with those Governments and with the
issuing bankers, the detailed conditions on
which the bonds shall be issued.
(e) The trustee shall apply to the German
Government, as provided in the plan, for the
creation of issuable bonds.
(/) The trustee declares its willingness to act
as trustee or representative of the bondholders,
or as agent for all issues of bonds made in
pursuance of the provisions of the plan relative
to mobilization, to the extent provided in the

206

FEDERAL RESERVE BULLETIN

loan contract to be concluded between the
trustee and the Governments concerned on the
occasion of an issue of such obligations.
(g) The expenses and commissions to be
received by the trustee both for the creation
of bonds and for their issue shall be determined
between the trustee and the Governments
concerned with regard to the importance of the
functions which may be attributed to it on the
occasion of each operation.

APRIL, 1930

declares that it takes note of the arrangements
regarding deliveries in kind and reparation recovery acts contained in the relevant annexes
to The Hague agreement of January, 1930, and
agrees to observe the same as far as lies within
its province and powers as a bank as set forth
in the statutes.
ARTICLE

XVI

The trustee is authorized and agrees with
respect
to the assigned revenues of the Reich
ARTICLE XIII
to exercise the discretions referred to in secThe trustee will credit to a special trust tion 3 of Annex III of the experts' report.
account the deposits which the French Government has undertaken to make, in the circumARTICLE XVII
stances contemplated in the plan, up to an
The trustee shall furnish to each creditor
amount of 500,000,000 reichsmarks, in currencies other than reichsmarks based upon Government at the close of each month an
account showing all the receipts and payments
the gold or gold exchange standard.
The trustee undertakes to administer these of the trustee during that period in respect of
funds in such a way that the sums deposited the annuity received from Germany. The
shall be available in currencies other than trustee shall also furnish to each creditor Govreichsmarks, based upon the gold or gold ernment as soon as may be after March 31, in
exchange standard, in order to equalize the the year 1931, and every succeeding year, a
short payments to the other creditors during a copy of the account as approved by the auditors of the Bank for International Settlements
period of transfer postponement.
Subject to the provisions of Article XI (c) of all its operations in respect of the whole of
and (d), the trustee will pay interest to the the German annuities, including the service of
French Government, at the maximum current the German external loan, 1924, since the close
rate paid for long-term deposits, on the amount of the last preceding yearly account or, in the
standing in this account in currencies other case of the first account, since the commencement of the operations of the bank, and of any
than reichsmarks.
report
that may be made by the auditors on
If it is agreed that this deposit shall remain
such
accounts.
The bank shall also furnish to
for more than five years, the French Government shall be entitled to participate in the each creditor Government a copy of its annual
profits of the bank in respect of this deposit general report as soon as published.
on the terms laid down in article 53 (e) (1) of
ARTICLE XVIII
its statutes. It shall be restored to the French
Government in the circumstances contemFrom the date of coming into force of the
plated in the plan.
present contract until its completion, the creditor Governments, in addition to maintaining
ARTICLE XIV
the deposits referred to in Article IV (e), agree
If the German Government elects to make to pay to the trustee a commission of 1 per
the long-term deposit, up to 400,000,000 reichs- mille on the actual payments received from the
marks, provided for in the plan, the trustee German Government on their behalf, in respect
agrees to receive and administer this deposit of the remuneration provided in article 84 of
and to take the consequent measures for allo- the annexes to the experts' report.
This payment will form a prior charge in
cation and utilization of its profits according to
the provision of article 53 (e) of the statutes of favor of the trustee in accordance with the plan,
on the sums received by it on behalf of the
the bank.
creditor Governments within the annuity trust
ARTICLE XV
account.
In addition to making disbursements and
The provisions of this article will remain in
keeping accounts in connection with deliveries force failing any new arrangement; such new
in kind, reparation recovery acts, and other arrangement may be made at the end of the
similar systems as above provided, the trustee first or of any one of the first five financial

FEDERAL RESERVE BULLETIN

A PRIL, 1930

years, at the request of one of the signatorypowers or of the trustee.
ANNEX
ARTICLE XIX

The trustee is authorized and agrees to notify
forthwith to the creditor Government any
difficulty which may arise between it and the
German Government relative to the interpretation or the application of the plan.

207

ANNEXES TO THE REGULATIONS

I.—Table showing the distribution of deliveries in kind among the creditor powers.
ANNEX II.—List of excluded commodities (list A).
ANNEX III.—List of rationed commodities (list B) (to
be drawn up at a later date if necessary.)
ANNEX IV.—List of commodities which can only be
partially paid for out of the funds for
deliveries in kind (list C).

I.—Definition of the commodities and
services which may be supplied as deliveries in
kind

ARTICLE
ARTICLE XX

The creditor Governments and the trustee
agree that, if any dispute shall arise between
them or any of them with regard to the meaning
or application of the provisions of this trust
agreement, the dispute shall be referred for
final decision to the tribunal provided for by
The Hague agreement of January, 1930, unless
the parties to the dispute shall elect to refer
the same to the president of the tribunal or a
member thereof selected as sole arbitrator.
ARTICLE XXI

The present contract shall come into force
between the trustee and the creditor Governments whose representatives have signed it
as soon as the plan has been put into application
and this contract has been signed on behalf of
the trustee and of four of the following powers:
Belgium, France, Great Britain, Italy and
Japan.
The French text is alone authentic.
ANNEX IX
Regulations for deliveries in kind
SUMMARY

Text of the regulations for deliveries in kind
ARTICLE
ARTICLE
ARTICLE
ARTICLE

ARTICLE
ARTICLE
ARTICLE

I.—Definition of the commodities and
services which may be supplied as
deliveries in kind.
II.—-Utilization of the quota allotted to
each of the creditor powers for
deliveries in kind.
III.—General provisions concerning the
execution of contracts for deliveries
in kind.
IV.—Organization.

V.—Preparation and revision of lists.
VI.—Direct payments.
VII.—Approval of contracts.

ARTICLE VIII.—Payments.

ARTICLE
ARTICLE

IX.—Prohibition concerning reexportation.
X.—Infractions and frauds.

ARTICLE

XI.-—Arbitration.

ARTICLE XII.—Temporary provisions.
ARTICLE XIII.—Revision of the regulations.
ARTICLE XIV.—Authenticity of texts.
103025—30
6

1. Deliveries in kind within the meaning of
the present regulations are commodities and
services produced by the German economic
system and supplied to a power which is a
creditor of Germany, the payment in respect
of such commodities and services being effected
wholly or in part by means of funds reserved
for this purpose in execution of the experts'
plan of June 7, 1929, according to the distribution of these funds as shown in the appended
table. (Annex I.)
2. The commodities and services which may
form the subject matter of a contract for deliveries in kind are, subject to the provisions
of the present regulations, all commodities
which are of German origin or manufactured in
Germany and all services of a commercial nature performed by the German economic system, such as transport by land in Germany;
transport by river, sea, or air under the German flag; plans for public works and preparation of schemes for w^orks to be executed outside Germany; sales of German licenses or
patents to be utilized outside Germany; insurance contracts underwritten by German companies.
3. The commodities shown on list A (Annex
II) are described as "excluded" commodities
and can only be paid for as a delivery in kind
in the case mentioned in paragraph 45 hereafter.
4. The commodities which may be eventually
included in list B (Annex III) are described as
"rationed" commodities and can only be supplied as a delivery in kind within the limit of
the ration existing at the time when the contract for such commodities is made and subject
to the provisions of paragraphs 69 and 70 hereafter.
5. The commodities shown in list C (Annex
IV) can only be supplied as deliveries in kind
on condition that the buyer pays a part of their
value direct to the seller according to the conditions laid down in Article VI of the present
regulations and subject to the provisions of
paragraphs 69 and 70 hereafter.

208

FEDERAL RESERVE BULLETIN

6. No contract the value of which is less than
3,000 reichsmarks can be approved as a contract for deliveries in kind unless it is a rider
to a contract previously approved.
II.— Utilization oj the quota allotted to
each oj the creditor powers for deliveries in
kind

ARTICLE

7. Each creditor power is responsible for the
utilization of its quota for deliveries in kind.
In principle and subject to the provisions of
paragraphs 8 and 14 hereafter, each power is
required to obtain approval for contracts providing for payments of which the total is
sufficient in any given year to absorb the quota
of that power for deliveries in kind.
8. Each power may carry forward a part,
not exceeding 40 per cent, of its quota for a
given year, to the following year. The part
thus carried forward will not be counted as part
of the credit for the following year for purposes
of calculating the part of the quota for that
year which may be carried forward.
9. Contracts covering the total credits provided for deliveries in kind shall be passed
before August 31, 1939, but these contracts
shall not provide for any payment to be effected
after that date.
Any credits which may be available at that
date as a result of a cancellation of contracts
shall be utilized subject to agreement between
the creditor Government concerned and the
German Government for new contracts for
deliveries in kind.
No delivery shall be made and no payment
effected in respect of deliveries in kind after
March 31, 1940.
10. In view of the delays w^hich normally
occur in the execution of certain contracts, each
creditor power may, upon its own responsibility, and on the understanding that payments
for which provision has already been made
shall not be thereby delayed, submit contracts
for approval which involve payments in excess
of the credits allotted to that power for deliveries in kind within a given month.
The authorized amount of such excess shall
be calculated as follows:
Of the credits wThich are blocked in the
accounts of a power as a result of delay in the
execution of contracts approved for that power,
an amount not exceeding 30 per cent may, if
the power so requests, be added to the credits
available to it for deliveries in kind during the
following three months. The amount of these
additional credits may never exceed that of
the credits still remaining available to the

APRIL, 1930

power in question for deliveries in kind during
the three months following the period of three
months in which the sums available have been
so increased.
At the end of each month the position shall
be adjusted on the basis of the amount of
credits blocked at that time.
11. If, owing to the adoption of the foregoing
procedure, the payments to be made to suppliers of deliveries in kind for the account of a
creditor power exceed the sums available to
that power for this purpose, the necessary
amounts shall be advanced by the power in
question. These advances may be drawn from
any funds belonging to the power which the
latter may select. The sums in question will
be refunded to the power during the three
months following the period of three months
in w^hich the advances were made. The refund
will be effected out of the credits available
for deliveries in kind, so that the total amount
of such credits allotted to the power in the
attached table (Annex I) shall not be increased.
III.—General provisions concerning the
execution oj contracts jor deliveries in kind

ARTICLE

12. The German Government undertakes to
facilitate as far as possible the conclusion,
within the scope of the present regulations, of
commercial contracts under ordinary commercial conditions by not taking or permitting to
be taken any measure which would result in
deliveries being unobtainable under ordinary
commercial conditions.
13. If a creditor Government considers that
the German Government has not fulfilled this
undertaking, and that owing to this fact it has
been unable to absorb in accordance with the
present regulations its quota of the credits set
aside for deliveries in kind as defined in the
appended table (Annex I) it may submit the
question to the arbitral tribunal for which provision is made in article 15 of The Hague Agreement of January, 1930.
14. If the tribunal considers the complaint
to be wholly or partially founded it will fix the
sum which the Government making the complaint has been unable for this reason to utilize
for deliveries in kind, and will cause such sum
to be placed at the free disposal of the said
Government. The obligation of the Government to utilize a part of its credit for deliveries
in kind shall thereby be reduced by an equivalent amount.
15. If on its own responsibility the Government making the complaint so requests, the
tribunal may, in accordance with paragraph 4

FEDERAL RESERVE BULLETIN

APRIL, 1930

of article 15 of The Hague Agreement of January, 1930, by an interlocutory order cause a
part or the whole of the sum which the Government has stated that it has been unable to
utilize for deliveries in kind, to be placed at
the disposal of the said Government.
16. In such a case the tribunal shall, when
delivering its award, fix the conditions under
which the payment is to be reckoned
against
the sums to be paid under the awTard, or the
conditions under which deliveries in kind shall
be taken to make good the sum paid.
ARTICLE

IV.—Organization

17. The management of deliveries in kind
includes two separate parts, namely, the
approval of contracts and the handling of the
funds reserved for deliveries in kind. The
creditor Governments concerned and the German Government remain responsible for the
approval of contracts and entrust the management of the funds reserved for deliveries in kind
to the Bank for International Settlements.
18. A contract is approved if there is agreement with regard to it between the creditor
Government concerned and the German Government.
19. Each creditor Government concerned in
deliveries in kind and the German Government
shall appoint an agent, whose duty it shall be
to deal with all matters concerning deliveries
in kind and to fulfill all functions devolving
upon him under the present regulations.
Each agent shall remain responsible to his
Government for the strict application of the
provisions of these regulations.
The agents of the German, Belgian, British,
French, Italian, Japanese, and Yugoslav Governments shall assemble whenever a Government concerned in deliveries in kind considers
a meeting to be necessary. The meeting shall
be called by the agent of the Government which
proposes it.
The same agents shall meet every year, in
principle during the second fortnight in May,
in order to review the general situation as
shown by the statistical documents supplied
by the Bank for International Settlements.
20. The agent of the German Government
will be in permanent residence at Paris, where
the agents will meet in all the cases for which
provision is made in the present regulations.
The agents of the creditor powders are under
no obligation to have a fixed place of residence.
21. The Bank for International Settlements
can incur no responsibility except with regard

209

to the duties arising from the mandate with
which it is entrusted.
22. The Bank for International Settlements
will effect the payments to be made in virtue
of duly approved contracts which are transmitted to it by the agent of the German
Government or are sent by the agent of the
creditor power concerned in execution of a
decision of the arbitrator in virtue of Article
VII hereafter.
23. The bank will keep all accounts and
statistics, and will exercise all supervision in
respect of these payments.
24. The bank is also at liberty, in accordance
with paragraph 28 of Annex I to the experts'
plan of June 7, 1929, to appoint an advisory
committee, the object of which would be to
nform generally the bank of the progress of
•deliveries in kind.
This committee may, if it thinks fit, convoke
those agents of the Governments who do not
form part of the committee.
V.—Preparation and revision of lists
25. The coefficients of list C represent the
proportion in terms of value which the raw
materials of foreign origin included in a commodity bear to the sale price of the commodity,
delivery taken at the factory or warehouse of
the seller.
The coefficients are based on a detailed costing of the sale price of the article.
26. The same methods of determining the
coefficients shall be applied whenever list C is
revised.
List C shall include after each revision commodities the coefficient of which determined as
described above is equal to or more than 25 per
cent.
27. Exceptions, however, which are admitted
regularly in accordance with Article VII hereafter, may be taken into consideration when the
list is drawn up.
28. Lists A and G (Annexes II and IV) may
be revised every two years, the first revision
taking effect as from April 1, 1932.
29. If one of the Governments concerned
wishes that such revision should be made, its
agent shall inform the agents of the other
Governments to this effect before February 1
of the year fixed for revision, and shall suggest
a date for the consideration of its request. He
will informUhem of the modifications which he
proposes to make.
30. Upon receipt of this request each agent
shall announce whether he intends to propose
other modifications.

ARTICLE

210

FEDERAL RESERVE BULLETIN

The revision committee, consisting of the
German, Belgian, British, French, Italian,
Japanese, and Yugoslav agents, will meet in
Paris.
31. If the agents present at the meeting
agree, they shall fix the lists for the period of
two years from April 1, next following.
32. In case of disagreement the question
shall be submitted to the arbitrator whose
functions are defined in paragraph 108 hereafter.
After hearing the parties concerned the arbitrator shall draw up the lists for the period of
two years as from April 1 next following.
33. The same procedure shall apply, if necessary, to the fixing of the rations of list B.
(Annex III.) If the German Government desires that such rations shall be fixed, its agent
shall submit a request to this effect to the agents
of the creditor Powers at least two months
before the date on which these programs come
into force.
ARTICLE

VI.—Direct payments

34. The payments to be made by the purchaser direct to the seller without any entry
being made to an account for deliveries in kind
are governed by the rules set forth hereafter.
35. In respect of any commodity delivered
which appears in list C, the purchaser shall pay
direct to the seller that part of the price which
corresponds to the coefficient fixed for this
commodity in accordance with paragraph 25
of the present regulations and subject to the
provisions of Article VII.
36. If a contract makes the seller responsible
for the transport of the commodity, and if the
transport is not carried out entirely by German
means a direct payment shall be due whenever
the cost of the transport exceeds 400 reichsmarks.
37. If the cost of transport carried out by
non-German means exceeds 400 reichsmarks,
the purchaser shall pay the entire cost direct to
the seller, unless there is a special agreement
between the agent of the creditor Government
concerned and the agent of the German
Government.
38. Transport by German means in or outside Germany of commodities ordered as a
delivery in kind shall not give rise to any direct
payment.
39. Transport under German flag by river,
sea, or air may of itself form the subject matter
of a contract for deliveries in kind whenever it
is effected between a German port and a port
situated in the territory of a creditor power or

APRIL, 1930

in one of its colonies, dependencies, or mandated territories, or vice versa.
40. If a contract stipulates that the seller
shall be responsible for erection outside Germany, such erection, whether carried out partly
or wholly by means of German resources, shall
not give rise to a direct payment unless its value
exceeds 1,000 reichsmarks.
41. Erection within the meaning of the
present regulations does not comprise foundations and masonry, but covers the installation
and assembling of machines and plant the parts
of which have been finished wholly or mainly
at the factory.
42. If the cost of erection carried out outside
Germany, either wholly or partly by means of
German resources, exceeds 1,000 reichsmarks, it
shall be subject to a direct payment of 50 per
cent of such cost, subject to the following limitations :
(a) Ten per cent of the value of the order for
contracts of an amount less than 200,000 reichsmarks.
(6) Ten per cent of the first installment of
200,000 reichsmarks and 5 per cent of the
balance for contracts exceeding 200,000 reichsmarks.
43. If the total value of erection outside
Germany exceeds these limits, the entire
amount of the excess shall be added to the direct
payment to be made by the purchaser to the
seller.
44. The foregoing provisions do not apply to
the employment of German personnel outside
Germany, which is governed by the provisions
of paragraphs 47 and 48 hereafter.
45. If a contract for the supply of a composite
object provides for the delivery as part of such
object of (a) commodities contained in list C,
(6) equipment of a specialized type not currently
manufactured in Germany, (c) commodities
mentioned in footnote 3 of list A, provided that
they are finished products, the delivery of these
commodities shall not give rise to a direct payment unless their total value, delivered either
by or to the seller at his factory or warehouse,
exceeds 10 per cent of the total value of the
contract.
A composite object within the meaning of the
present regulations is one for which the order is
placed with a single supplier, is executed by him
acting alone or with the assistance of subcontractors, and makes him responsible for the
working or output of the object supplied
(machinery, factory plant, ship, etc.).
46. If the value defined in the preceding
paragraph exceeds 10 per cent of the total price
of the contract, payment shall be made by the

APRIL, 1930

FEDERAL RESERVE BULLETIN

211

ARTICLE VII.—Approval of contracts
purchaser direct to the seller in respect of the
commodities contained in list C, according to
the rules applicable to such commodities under
52. No payment shall be made by means of
paragraph 35 of the present regulations, and the funds reserved for deliveries in kind, unless
for the entire value of the commodities men- in execution of a commercial contract previtioned under headings (b) and (c) of the preced- ously approved by agreement between the
ing paragraph.
creditor Government concerned and the Ger47. If a contract provides for the employ- man Government.
ment of German personnel outside Germany,
53. Every contract shall contain a clause
40 per cent of the total wages and salaries of indicating that it is to be paid for out of the
such personnel shall be paid by the purchaser funds reserved for deliveries in kind.
direct to the seller.
54. By a contract within the meaning of the
48. If, however, the food of the personnel present regulations is understood—
thus employed comes from Germany, or if the
(a) A document signed by the seller and the
personnel is provided with living accommoda- buyer.
tion in Germany while the work is being carried
(6) A firm offer, with or without specificaout, or if special arrangements for housing and tion, accepted without reserve by the buyer by
feeding are made locally by the purchaser and letter or by telegram.
the seller, the percentage shall be reduced by
(c) A firm order accepted without reserve by
agreement between the agent of the creditor the seller by letter or by telegram.
power concerned and the German agent. Fail55. In the first place the contracts must be
ing such agreement, the arbitrator for whom accepted by the creditor power concerned,
provision is made in paragraph 108 hereafter which shall ascertain at the outset that they
shall decide.
are in conformity with the regulations and that
49. If the commodity ordered under a con- sufficient funds stand to its credit to meet the
tract is the subject of a mortgage, a lien or payments for which the contract provides when
any other charge in favor of a* non-German they fall due.
creditor, and if it is to be delivered free of any
56. Two copies of the contracts will then be
such charge the payments required to pay off transmitted to the agent of the German
any such charge shall be made by the purchaser Government, either by registered letter or dedirect to the seller.
livered direct against a receipt given by an
50. No direct payment shall be made if the authorized person.
contract makes the seller responsible for—
57. Within three clear working days of re(a) The customary inspection and super- ceiving the contract the agent of the German
vision of commodities or of the manufacture Government shall inform the agent which has
of commodities in Germany by persons em- transmitted the contract whether he accepts it
ployed by the buyer or by inspectors belonging with or without reservation or whether he proto recognized inspection agencies, provided that poses its rejection.
these agencies, which need not necessarily be
58. If he has no objection to the contract he
German, are established in Germany.
will inform the Bank for International Settle(6) The transshipment or handling of com- ments, to which he will send a copy of the
modities by non-German means or labor.
contract.
(c) The suras required to cover temporary
59. If the agent of the German Government
advances for customs dues or similar non- considers that the contract should be modified
German charges.
or rejected, or if he regards the details which it
(d) The costs of guaranty deposits in non- contains to be insufficient, he will return it,
German currency.
accompanied by his observations and reasons,
51. A direct payment shall be made in re- to the agent from whom it was received.
spect of any contract for insurance which is not
60. If the agent of the creditor Government
accessory to a delivery or to work to be executed does not concur in the view of the German
as a delivery in kind, but which forms of itself agent, he shall bring the question before the
a contract for such delivery. The amount of arbitrator for whom provision is made in parathis payment will be fixed for each individual graph 108 hereafter. Alter calling for the
case by direct agreement between the agent of observations of the a™ no of the creditor power
the creditor power concerned and the German concerned and the German agent, the arbitraagent.
tor shall give a final decision within a maximum

212

FEDERAL RESERVE BULLETIN

of eight clear working days from the date on
which the question was referred to him.
61. The agent of the German Government
may apply direct to the German seller for
further information or to have any changes
made in the contract which he may consider
to be necessary. It shall be his duty, however,
to inform the agent of the creditor power, in
order that the agent may take the necessary
action with regard to the purchaser.
62. Whenever the procedure is suspended in
the manner described, it shall be resumed with
the same formalities and the same time limits
as from the day on which the agent of the
creditor power sends to the German agent the
necessary information or the agreement of the
parties concerning the changes required to be
made in the contract.
63. When an appeal is made to the arbitrator
the award shall be notified to the German
agent and the agent of the creditor power
concerned. The latter may then send the
contract direct to the Bank for International
Settlements, and shall be responsible for
informing the German agent to this effect.
64. When a contract does not provide a
definite scheme of payments, the German
agent will draw up a schedule in agreement
with the agent or authorized department of
the creditor Government, in order that the
Bank for International Settlements may set
aside the sums required for paying for the
contract.
65. The Bank for International Settlements
will keep accounts for each creditor country,
showing the dates and amounts of the payments for which the approved contracts provide and indicating how much of the quota
remains available for new^ contracts.
Abstracts of these accounts will be supplied
on the 1st and 15th of each month to the agent
of the creditor power concerned and to the
German agent.
66. Before submitting a contract for approval the creditor Government concerned
shall have definitely agreed with the purchaser
the terms on which he can obtain payments out
of the funds reserved for deliveries in kind.
67. If, in the course of execution of a contract, the buyer does not fulfill these conditions
he shall continue to bear the entire responsibility for the contract, as far as the seller is
concerned, under ordinary commercial conditions, even if the contract stipulates that it shall
only be executed as a delivery in kind.
68. In this case the Bank for International
Settlements shall, if the creditor power concerned so requests on its own responsibility,

APRIL, 1930

release the credits reserved but not yet utilized
for payment for the contract.
The agent of the German Government shall
be informed accordingly.
69. Exceptions to the present regulations
may be admitted by agreement between the
agent of the creditor Government concerned
and the agent of the German Government
provided that they do not exceed—
(a) In the case of any rations which may
eventually be fixed, 20 per cent of the ration
allowed for the year in question.
(6) In the case of direct payments, 30 per
cent of the payments of this kind which should
have been effected under the contract in question had the regulations been strictly applied.
70. If the conditions of a contract entail
other exceptions to which the German agent
agrees, the contract shall only be approved
provided that, of the Belgian, British, French,
Italian, Japanese, and Yugoslav agents, at
least three agree to the exception proposed.
71. In the case, however, of an exception to
the clause concerning reexportation, which in
principle remains forbidden, the unanimous
agreement of these six agents shall be required.
72. In transmitting to the Bank for International Settlements a contract in respect of
which exceptions have been admitted in application of paragraphs 69, 70, and 71 above, the
agent of the German Government shall attach
to the contract a note stating the nature of the
exception granted and indicating which agents
have given their consent.
In the case of contracts approved in virtue of
an arbitral decision in accordance with paragraph 63, the agent who transmits the contract
will attach to it a copy of the arbitral decision.
73. The statistics which the Bank for International Settlements will keep in execution of
paragraph 23 will be sent by the bank each
month to the agents of all the Governments
and will show^ (1) according to countries and
categories the total amount of the contracts
which it has received during the preceeding
month, those for an amount exceeding 5,000,000
reichsmarks and riders thereto being shown
separately; (2) the information transmitted to
it with contracts in accordance with paragraph 72.
ARTICLE

VIII.—Payments

(A) Payments for deliveries in kind.
74. For each creditor Government there shall
be opened at the Bank for International Settlements an account to which shall be credited all
sums to be reserved by that Government for

APJU1,1930

FEDERAL RESERVE BULLETIN

deliveries in kind according to the approved
schedule. All payments made in respect of
approved contracts shall be debited to this
account.
75. The credit balance at the end of each
month shall be added to the credits opened
during the following month. The sum available to the creditor power for deliveries in kind
during that month shall be the total of these
two amounts.
76. At the beginning of each month the
agent of the creditor Government concerned
and the agent of the German Government shall
be informed of the state of the account.
77. Subject to the reserves provided by the
present regulations the sums paid to this
account can only be employed for the payment
of contracts for deliveries in kind.
78. For the purpose of paying for duly approved contracts for deliveries in kind each
creditor power may dispose freely of the credit
balance lying in his account, by any method of
payment which is current in international commerce, and particularly by means of checks,
orders to transfer, and time drafts.
The payments will be made by the Reichsbank in Berlin.
79. The creditor powers will transmit to the
Bank for International Settlements the names
and signatures of the officials who are authorized to issue orders to pay.
80. In principle, orders to pay shall be made
out in reichsmarks. When a contract stipulates that payment is to be made in a nonGerman currency, the order to pay shall be
made out in this currency, but must bear the
inscription "payable in reichsmarks." In this
case the conversion into reichsmarks shall be
made at the time of payment, at the official
average rate of the Berlin Bourse as quoted for
the day preceding that of payment.
81. If a contract provides for an agreed rate
of conversion, the conversion into reichsmarks
shall be made at this rate.
82. All orders to pay must indicate the approval number of the contract in respect of
which they are issued.
83. Checks shall be issued by the creditor
Government made out in the name of the seller
and passed to the buyer for transmission to the
seller. They can not be cashed over the
counter, but must be passed through a bank
account.
84. Orders to transfer shall bear the names
of the buyer and seller, as well as that of the
bank responsible for collection.
85. Time drafts shall be made payable not
less than 30 davs and not more than 90

213

days at most from the date of issue. They
shall only be issued if the contract for which
they are required makes provision to this
effect.
They shall be drawn by the creditor Government on the Bank for International Settlements. They shall not be accepted.
They shall be issued to the order of the
buyer, who shall indorse them and transmit
them direct to the seller.
They shall bear the words: "Payable at the
Reichsbank in Berlin."
86. If a creditor Government which has
issued a time draft does not possess credits
sufficient to meet the payment when it falls
due, it shall place the necessary funds at the
disposal of the Bank for International Settlements two days before the due date.
A creditor Government which advances a
sum in this manner shall be reimbursed out of
the first credits which are thereafter placed at
its disposal for deliveries in kind.
87. The issuing authority and the agent of
the German Government will receive daily
advice and periodical statements of the payments effected.
88. The rules to be applied to the payments
made in application of the preceding paragraphs will be determined jointly by representatives of the German, Belgian, British, French,
Italian, Japanese, and Yugoslav Governments
and the Bank for International Settlements,
particularly in so far as concerns the requisite
measures for safeguarding these payments.
89. When a seller has to make a payment to
a buyer in executing or winding up a contract
the buyer shall inform his Government and request the seller to make the payment into the
account for deliveries in kind opened for this
Government.
90. This provision shall not apply to any
payments of less than 10,000 reichsmarks and
of less than 20 per cent of the value of the contract which the seller may be liable to make
to
the purchaser after the last payment for wThich
the contract provides has been made and the
contract is consequently regarded by the contracting parties as terminated. In such a
case the payments shall be made by the seller
direct to the purchaser.
(B) Direct payments.
91. When the case arises the provisions of
Article VI of the present regulations concerning the direct payment of a part of the value
of certain commodities or services shall be applied to a contract either—
(a) By the terms of the contract itself, or

214

FEDERAL RESERVE BULLETIN

(6) By the decision concerning the approval
of the contract, such decision being regarded as
conditional within the meaning of Article VII.
In the first case the dates and amounts of
the sums to be paid direct shall be stipulated
in the contract.
In the second case the dates and amounts of
the sums to be paid direct shall be fixed by the
decision of approval in such a manner that the
direct payments are made at the same time and
in the same proportions as the payments made
on account of deliveries in kind.
In both cases the purchaser shall make the
direct payments to the seller in accordance
with the rules of ordinary commerce.
92. The foregoing provisions shall not preclude the Bank for International Settlements in
agreement with the creditor power concerned
from meeting all the payments for which a contract provides when they fall due. In this
case the direct payments shall be made under
the conditions and in the currencies stipulated
in the contract, but it shall be debited to the
creditor power in an account other than that
relating to deliveries in kind.
ARTICLE

IX.—Prohibition concerning reexportation

93. Each creditor power undertakes, as far
as possible, to prevent the commodities which
it receives from Germany as deliveries in kind
from being reexported during five years.
94. It shall not be considered to be reexportation within the meaning of the present regulations :
(a) In cases of plant for public works which
is utilized abroad by a firm of the creditor
power during a short period not exceeding one
year, with an obligation for the return of the
plant to the territory of the creditor power.
(b) If commodities are exported to the colonies, dependencies,1 or mandated territories of
the creditor power.
(c) If they are intended for embassies, consulates, or higher educational institutes of the
creditor power abroad.
(d) If after transformation or being incorporated in another article the value of a commodity does not represent more than 60 per
cent of the value of the article sold abroad, such
value being estimated for delivery at the frontier or f. o. b. at a port of the creditor power.
95. The creditor power shall not submit for
approval any contract for the delivery of
1
If mandated territories are allowed the benefit of deliveries in kind
this shall, as in the past, be without prejudice to the legal status of the
mandate.

APRIL, 1930

commodities unless the following declaration
signed by the buyer is included in or attached
to the contract:
I undertake for fivv; years not to reexport the commodities which form the subject of the present contract.
In the event of my selling all or part of these commodities, I undertake to require my purchaser to take
upon himself all the obligations which I have assumed,
and to cause the same undertakings to be given by his
successive purchasers.
If I fail to perform any of these undertakings I consent to be deprived of the possibility of having new
contracts concluded by me paid for by means of the
funds which are reserved for deliveries in kind.
Commodities shall not be considered to be reexported:
(a) In cases of plant for public works which is utilized
abroad by a firm of the creditor power during a short
period not exceeding one year, with obligation for the
return of the plant to the territory of the creditor
power.
(b) If commodities are exported to the colonies,
dependencies, or mandated territories of the creditor
power.
(c) If they are intended for embassies, consulates, or
higher educational institutes of the creditor power
abroad.
(d) If after transformation or being incorporated in
another article the value of the commodity does not
represent more than 60 per cent of the value of the
article sold abroad, such value being estimated for
delivery at the frontier or f. o. b. at a port of the
creditor power.

96. If the contract is concluded by the
creditor Government itself, the latter will
transmit it to the agent of the German Government, with the undertaking for five years not
to reexport the commodities or, if it sells them,
to require of the buyer an undertaking in the
form prescribed by paragraph 95 above.
97. If a dispute arises between a creditor
Government and the German Government as
to whether there has been reexportation or not,
it shall be submitted to the jurisdiction for
which paragraph 107 hereafter provides.
X.—Infractions and frauds
98. It shall be the duty of the Governments
concerned to take such steps within their
respective territories as they may deem necessary in order that contracts may be executed
in accordance with the present regulations, and,
in cases of fraud or willful infraction, to apply
such penalties as they may consider appropriate in respect of their nationals.
99. The Bank for International Settlements
shall not incur any responsibility by reason of
any fraud or irregularity committed during
the execution of a contract. But it shall
inform the agent of the creditor Government
concerned and the German agent of any fact
which may appear to it to constitute a fraud
or willful infraction of the present regulations.
ARTICLE

APRIL, 1930

FEDERAL RESERVE BULLETIN

100. The agents of the creditor Government
and the agent of the German Government will
inform one another of the investigation which
their respective Governments cause to be undertaken in order to ascertain whether there has
been fraud or infraction of the present regulations in connection with a contract and they
shall inform one another of the result of such
investigations.
101. The Governments undertake to afford
one another full facilities for the purpose of
carrying out the investigations which any of
them may decide to make. For this purpose
the agents of the various countries will exchange such information as they possess and is
likely to facilitate their respective tasks.
102. If a creditor Government or the German Government considers one of its nationals
to be guilty of fraud or of willful infraction of
the present regulations, its agent will so inform
the agents of the other Governments.
103. Pursuant to such notification no contract to which one of the parties is a person
whose name has thus been notified shall be
approved during a period of two years from the
date of the notification.
104. A Government which has applied for
one of its nationals to be excluded may, before
the end of the period of two years mentioned
above, request that its national be removed
from the list of excluded persons.
105. If before the last payment under a contract has been made, the buyer or seller is found
guilty by his Government of fraud or willful
infraction of the present regulations, and if his
name is notified in accordance with paragraph
102, no further payment shall be made out of
the funds for deliveries in kind in respect of the
contract which shall be liquidated direct between buyer and seller.
If the sums paid up to that time exceed the
value of the commodities or services due to be
delivered under the contract, the Governments
concerned shall do their utmost to obtain repayment of the excess to the account for deliveries in kind of the creditor power.
106. In order that the provisions of the preceding paragraph may be applied, the agent of
the power which has declared its national to be
excluded shall inform the Bank for International Settlements of the measures taken in this
respect.
ARTICLE XI.—Arbitration
107. Any dispute which may arise between
a creditor power and the German Government
concerning the interpretation of the present
regulations shall be submitted to the arbitral

215

tribunal for which article 15 of The Hague agreement of January, 1930, provides.
The same procedure shall apply to any dispute which may arise concerning the application of the provisions of Article III or in the
case mentioned in paragraph 97 of the present
regulations.
108. All other disputes which may arise from
the application of the present regulations shall
be submitted to an arbitrator of neutral nationality who is resident in Paris, and who is
of high commercial or industrial standing.
This arbitrator shall be appointed for two
years by unanimous agreement between the
German, Belgian, British, French, Italian,
Japanese, and Yugoslav Governments, or failing unanimity, by the president of the arbitral
tribunal mentioned in the preceding paragraph.
ARTICLE XII.—Temporary provisions
109. Any contract which has been approved
by the date at which the present regulations
come into force shall continue to be executed
under the procedure of the Wallenberg Regulations with the sole exception that payment by
check shall take the place of payment by means
of sight drafts, and that the organizations for
which the present regulations provide shall be
substituted for those previously in existence.
110. During a period of two years from the
date when the verdict of guilt is pronounced no
contract shall be approved in which the name
of a person appears, either as purchaser or seller,
in respect of whom the penalties for which
Article XII of the Wallenberg Regulations
provides have been applied.
ARTICLE XIII.—Revision of the regulations
111. The present regulations may at the
request of one of the powers interested in
deliveries in kind be submitted to revision.
Such revision shall take effect as from April 1
of the year in question.
Revision may first take place in 1931 and
thereafter at intervals of two years.
112. The Government which proposes the
revision shall inform all the other Governments
concerned in deliveries in kind of its intention,
before January 1 of the year in which revision
may be made. It will state the points regarding
which it suggests that modifications should be introduced into the regulations and the date which
it proposes for the examination of its request.
113. The request shall be considered by a
committee consisting of the agents or representatives of the German, Belgian, British,
French, Italian, Japanese, and Yugoslav Governments.

216

FEDERAL RESERVE BULLETIN

114. No modification may be made in the
present regulations except by unanimous agreement between the members of the committee
constituted in accordance with the preceding
paragraph.
ARTICLE XIV.—Authenticity of texts
115. These regulations are drawn up in
French, English, and German, the three texts

APRIL, 1930

being equally authentic for purposes of interpretation. It is understood that, in the event
of an appeal to arbitration on the interpretation and pending the decision of the arbitral
tribunal, the interpretation considered by the
creditor power concerned to be the most
favorable to the proper execution of deliveries
in kind shall be taken to be correct.

ANNEX I TO ANNEX IX.—Table showing the distribution of deliveries in kind among the creditor powers

(Replacing the table of sec. 190 of Annex VII to the experts' plan and that of the annex to Appendix 2 to The
Hague protocol of Aug. 31, 1929)
[In thousands of reichsmarks]
France

Transition regime (Sept. 1,1929-Mar. 31, 1930)__
Year of deliveries in kind (Apr. 1, 1930-Mar. 31, 1931) _ j
Second year (1931-32)
I
Third year (1932-33)
|
Fourth year (1933-34)
!
Fifth year (1934-35)
Sixth year (1935-36)
I
Seventh year (1936-37)
Eighth year (1937-38).
I
Ninth year (1938-39)
'
Tenth year (Apr. 1, 1939-Aug. 31, 1939
Total .

Total

Italy

Belgium

Japan

272,293.0
364,090.4
305,540.0
306,180.6
304, 506. 3
274,773.4
225,977.9
196,314.9
166,674.6
137,124.4
45, 274.5

21.507.0
36, 609.6
32, 860.0
30,219.4
29,693. 7
27,226. 6
23.182.1
20, 545.1
17,985.4
15, 335.6
4, 710. 5

293,800
400,700
338,400
336,400
334,200
302,000
249,160
216,860
184,660
152,460
49. 985

46,036.00
190,964.00
186,638.70
140,718. 85
138, 270.60
126,782. 50
107,948. 70
95,669.70
83, 750.10
71,411. 25
21,934.60

37,000
52,500
52,500
52,500
52, 500
52,500
52, 500
52,500
52, 500
52,500
15,500

24,500.00
33,750.00
31,500.00
29, 250.00
27,000.00
24, 750.00
20, 837.50
17,756.25
14,675.00
11, 593.75
637. 50

2,550
5,625
5,250
4,875
4,500
4,125
3,750
3,375
3,000
1,825

2,598,750.0

259,875. 0

2, 858, 625

1, 210,125. 00

525,000

236, 250.00

39,375

Jugoslavia
Transition regime (Sept. 1, 1929-Mar. 31, 1930)
Year of deliveries in kind (Apr. 1,1930-Mar. 31, 1931.
Second year (1931-32)
Third year (1932-33)
_
Fourth year (1933-34)
Fifth year (1934-35)
Sixth year (1935-36)
Seventh year (1936-37)
Eighth year (1937-38)
Ninth year (1938-39)
Tenth year (Apr. 1, 1939-Aug. 31, 1939)

Great Britain
recovery act

Recovery
act (4.95
I per cent)

Deliveries

Portugal ; Rumania l

26,000
37, 500
35,000
32, 500
30. 000
27, 500
23, 300
19, 400
16,600
13,200
1, 500
262, 500

9,000
6.950
7,150
6,600
6,050
5,500
4,950
4,400
3,850
3,300
39, 375

57,750 j

Greece

TOt

erief V " ! Recovery act

366,943.00
512,013.40
444,340.00
439,555.60
431, 908. 30
396, 023.40
337,193. 40
298, 838.15
261,605.60
223,063.15 ;
68, 516. 00

500

Total

67, 543. 00
227, 573. 60
219, 498. 70
170, 938. 25
167, 964. 30
154, 009.10
131,130. 80
116, 214. 80
101, 735. 50
86, 746. 85
26, 645.10

434, 486. 00
739, 587.00
663, 838. 70
610, 493. 85
599, 872.60
550, 032. 50
468, 324. 20
415, 052. 95
363, 341.10
309, 810. 00
95,161.10

21, 000 I 3, 780,000. 00 j 1, 470, 000. 00

5, 250. 000.00

3,000
2,800 i
2,600 !
2,400
2, 200
2,000
1,800
1,600
1,400
1,200

i If the Rumanian Government and the German firms subsequently agree that the quota fixed in respect of a given period shall be exceeded,
a corresponding reduction shall be applied by agreement between the German and Rumanian Governments to the other annuities. The distribution in respect of the other powers shall, however, not be changed.

(b) Foodstuffs manufactured from imported
raw materials.3
List A
(c) Gold, platinum, and silver articles.4
Group II.—Industrial products the export of
Commodities which may not be
supplied as which is prohibited at the time of the concludeliveries in kind 2
sion of the contract.5
Group III.—Miscellaneous products:
Group I.—(a) All commodities of foreign
(a) Scrap iron and scrap steel (843).
origin which have not undergone any trans(b) Animal skins and hides (153 to 155), bone
formation in German territory.
(156f).
ANNEX II TO ANNEX IX

2 The numbers in parentheses are those of the German statistical list of
commodities.
3 This prohibition does not apply to foodstuffs for consumption by
German workmen employed within the territory of a creditor power
in execution of a contract for deliveries in kind.

* This prohibition applies only to articles of gold, platinum, or silver
which do not form part of a composite object. (See Art. VI, par. 45.)
* It is understood that no prohibition can be applied to the exportation
of coal, coke, briquettes or lignite as a delivery in kind.

FEDERAL RESERVE BULLETIN

APRIL, 1930

(c) Paper clippings, waste paper, etc.
(673a).
(d) Yarn waste, cotton waste, etc., and all
waste from weaving and other waste employed
in the manufacture of paper (543b).
(e) Natural phosphates of lime (227d).
(/) Minerals (237 a to s).
(g) Radium, radium salts, preparations from
radium (Ex. 266, Ex. 317 G, Ex. 388).
(h) Wood in the log of all varieties, with the
exception of pit props.
Commodities which can only be partially paid
for out of the funds for deliveries in kind
This list is similar to the old list C under the
Wallenberg Regulations, to which has been
added the following modifications:
(a) With regard to timber, the agreement of July 3,
1928, remains in force. Paragraph 4 bears the following additions:
Per cent

Pit props
55
Telegraph poles, clean
60
Railway sleepers, hard or soft wood,
clean
60
(b) Item 470 a and b to be modified as
follows:
470 a, b, and 28 c to f—flax and hemp
in the raw, steeped, bleached,
dyed, crushed, scutched free from
glutinous fiber, cleaned—
Tow
95
(c) Items 890 a and 909 are modified as
follows:
890 a—Wires (lacing, covering, etc.)
made of common metal, with the
exception of aluminum, or alloy of
these metals, covered with a casing or winding, or yarn or braiding, or other methods of covering
by materials for electro-technical
purposes
35
909—Cables for the transmission of
electric current, with the exception
of those in aluminum, with protective metal wrappings in the
form of casing made of strips,
wire, webbing, or similar materials—
Low-tension cables
35
High-tension cables
40
(d) Add:
Bronze propellers
35
(e) The following items:
ex 156 f, bones, etc.,
ex 237 h, Braunstein (oxide of manganese),
ex 869 Magnesium (metal),
are to be deleted.

ANNEX X

217

tering the German reparation (recovery) act,
1921, signed on April 3, 1925, to the provisions
of the experts7 plan of June 7, 1929, as adopted
by the final protocol of The Hague Conference
(hereinafter referred to as the new plan),
Now, therefore, it is agreed between the
Government of the United Kingdom of Great
Britain and Northern Ireland and the Government of the German Reich to substitute for the
terms of the above agreement the following
provisions:
I.
The German Government undertakes to pay
each month on the same dates as the other
payments forming the postponable annuity
to the Bank for International Settlements for
the account of His Britannic Majesty's Government the sterling equivalent of the reichsmark
sums available under the new plan for transfer
by means of the reparation (recovery) act to
His Britannic Majesty's Government, provided
always that the amounts so paid shall not
exceed 26 per cent of the sterling value of the
German goods imported into Great Britain
during the preceding month but one.
So long as no postponement of transfers is in
force the amount of reichsmarks available
each year for transfer under this agreement
shall be the amounts specified in the annex to
this agreement, representing 23.05 per cent 6
of the total annual amounts of deliveries in
kind (including deliveries under reparation
recovery acts) provided in the new plan for
each of the 10 years up to August 31, 1939.
In the event of any postponement of transfer
the sum available shall be calculated in accordance with Article III of this agreement.
Reichsmarks for this purpose shall be reichsmarks as provided for in the new plan. The
sterling equivalent shall be calculated at the
average of the mean rates (Mittelkurs) prevailing on the Berlin Bourse during the halfmonthly period preceding each payment.
The British Government undertakes in return to cause to be placed at the disposal of
the German Government, out of the share of
the British Government in the annuities provided for in the new plan and available for
deliveries in kind, the amount of reichsmarks
of which the sterling equivalent has been paid
by the German Government.

Agreement for amending the method of administering the German reparation (recovery) act,
1921

II
The German Government shall arrange for
the Collection by the Reichsbank or otherwise

Whereas it is desired to adapt the provisions
of the agreement between Great Britain and
Germany for amending the method of adminis-

« As regards the period from Sept. 1, 1929, to Mar. 31, 1932, the abovementioned percentage has been applied to the sum total of deliveries in
kind (including reparation recovery act payments) to be effected during
this period.

218

FEDERAL RESERVE BULLETIN

from the German exporters of the sterling
amounts referred to in Article I above. The
British Government agrees that, having regard
to the undertaking of the German Government
given in that article, the special reserve fund
provided for in article 6 of the agreement of
April 3, 1925, shall be dispensed with, and the
amount in that fund shall be placed at the
free disposal of the German Government immediately on the coming into force of this agreement.
Ill

APRIL, 1930

ANNEX

Reichsmarks amounts, the sterling equivalent of which is
payable by the German Government under Article I of
this agreement
Reichsmarks

Period Sept. 1, 1929, to Mar. 31, 1930_
Year to Mar. 31, 1931
Year to Mar. 31, 1932
Year to Mar. 31, 1933
Year to Mar. 31, 1934
Year to Mar. 31, 1935
Year to Mar. 31, 1936
Year to Mar. 31, 1937
•
Year to Mar. 31, 1938
Year to Mar. 31, 1939
Period Apr. 1 to Aug. 31, 1939

46, 036, 000
190,964,000
186, 638, 700
140, 718, 850
138, 270, 600
126, 782, 500
107, 948, 700
95, 669, 700
83, 750, 100
71, 411, 250
21, 934, 600

The British Government shall at all times
Total
1, 210, 125,000
during the period of the new plan have the
right to a reparation (recovery) act levy pari
ANNEX XI
passu w^ith any deliveries in kind, including
those furnished under a moratorium—that is
Securities jor the German external loan, 1924
to say, that of the total amount transferred in
The Government of the German Reich, deany year in deliveries in kind (including the
quotas under the reparation recovery acts) the siring fully to maintain the first charge by way
quota under the British reparation (recovery) of collateral security for the German external
loan of 1924, created by article 5 of the general
act will amount to 23.05 per cent.
bond dated October 10, 1924, upon the gross
revenues of the German Government from the
IV
customs and from the taxes on tobacco, beer,
It is understood that this'agreement merely and sugar and from the net revenue of the
amends the method of administering the repa- German Government from the spirits monopoly
ration (recovery) act, that payments made and also on such other taxes, if any, as may
under this agreement shall be regarded as hereafter be assigned by the German Governdeliveries in kind for the purposes of the ment for the purpose of assuring the German
deliveries in kind system, and that its provi- budgetary contributions to the annuities, has
sions are without prejudice to any rights en- proposed the following system for keeping
joyed by the British Government with regard effective said first charge on said revenues from
to that act under the new plan. So long, and after the termination of the Dawes plan
however, as this agreement continues in force, and in substitution for the system of remitting
the relations between Germany and Great and administering said revenues which has been
Britain with regard to the reparation (recov- in effect under the said plan, and the trustees
ery) act shall be governed exclusively thereby. of the German external loan of 1924 have consented to the application of the following system, provided it be incorporated as an annex
V
to the agreement of The Hague of January,
The present agreement shall become opera- 1930, and be duly ratified by the Government
tive simultaneously with the coming into force of the German Reich and provided the plan of
of the new plan. A certified copy thereof the committee of experts of June 7, 1929, shall
shall be transmitted by the parties to the be duly carried into effect:
Bank for International Settlements, so that
System
the bank may take note of its provisions for all
purposes under the new plan.
ARTICLE I
Done at Berlin the 2d day of January, 1930.
ivThe tax collecting offices of the German
RUMBOLD.
Reich will continue to remit the total proceeds
CURTIUS.

APRIL, 1930

FEDERAL RESERVE BULLETIN

of the five revenues which collaterally secure
the German external loan, 1924—namely, the
gross revenues of the German Reich from the
customs and from the taxes on tobacco, beer,
and sugar, and the net revenue from the spirits
monopoly—but they will remit the total proceeds of these five revenues directly to the
account of the trustees of said loan at the
Reichsbank. In the event that the German
Government, in compliance with the terms of
paragraph 132 of the annexes of the experts'
plan of June 7, 1929, shall assign any additional
revenues to assure a total yield of not less than
150 per cent of the highest budgetary contribution provided for by that plan, then the proceeds of such additional revenues shall also be
remitted by the collecting offices directly to
said account of the trustees at the Reichsbank.

219

marks to cover the current monthly loan service
installment, and there shall be similarly released for the remainder of the month the
balance of said reichsmark sums, such continuing system of monthly retention and release
to be repeated month after month during the life
of the loan, subject, of course, to revocation or
modification by the trustees, as provided below
in Article IV;
(b) On the 15th of each month, if and when
the foreign currency installment then due has
been paid, the reichsmark sum previously
blocked as cover therefor shall be released from
the account of the trustees and placed at the
disposition of the German Government;
(c) If prior to the 15th of any month the
German Government choose to anticipate the
foreign currency payment payable on the 15th,
then as soon as such payment is made to the
ARTICLE II
trustees the reichsmarks blocked as cover
therefor will be released from the account of the
The account of the trustees at the Reichsbank trustees and placed at the disposition of the
may be in the name of the trustees of the Ger- German Government.
man external loan, 1924, or, at their election,
in the name of the Bank for International
ARTICLE IV
Settlements for the account of the trustees of
This standing order of the trustees to the
the German external loan, 1924.
Reichsbank may be revoked or modified at the
discretion of the trustees at any time, whenARTICLE III
ever necessary in their opinion for the purpose
The funds received into the account of the of safeguarding fully the rights of the bondtrustees shall be subject to their disposition, at holders granted by the general bond.
their discretion, for the purpose of assuring the
regular service of the loan, but the trustees will,
ARTICLE V
at the time of opening their account at the
The foregoing system of receiving, remitting,
Reichsbank, issue a revocable standing order
and
releasing the revenues shall come into effect
to the Reichsbank to the following general
as soon as possible after the legal termination of
effect:
(a) As soon as, on or after the 1st of each the Dawes plan, and, if practicable, coincimonth, a sufficient number of reichsmarks has dentally therewith. The German Government
been received in the account of the trustees to agrees to consult with the trustees for the purcover the amount of foreign currency required pose of adopting, in agreement with them, any
for the monthly installment of the service of measures necessary to effect the transition from
the interest on and the redemption of the loan the past system of remitting the revenues to the
(including in such sum all charges, commis- new system of remitting the revenues in order
sions, or other payments to be made by the that the service of the loan may be fully proGerman Government in connection with said tected during any period of transition.
loan) which is payable pursuant to the terms of
ANNEXXII
the general bond on the next succeeding 15th of
each said month, the Reichsbank shall be
Arbitration.
Rules of procedure
authorized thereupon to release to the German
Government, or its order, all reichsmark sums,
1. The proceedings in any arbitration shall
being the remainder of the monthly proceeds, be governed by the dispositions of Chapter III
of the revenues thereafter entering into the of The Hague Convention of 1907 for the Pacific
trustees' account until the 1st day of the next Settlement of International Disputes, except in
month immediately succeeding, when there so far as the same are modified by the following
shall again be similarly retained in the account provisions or by those of the agreement of The
of the trustees a sufficient number of reichs- Hague of January, 1930:

220

FEDERAL RESERVE BULLETIN

In particular, article 85 of The Hague Convention shall apply to these proceedings, and
each party shall pay its own expenses and an
equal share of those of the tribunal.
" 2. The tribunal shall sit at The Hague or
such other place as may befixedby the tribunal.
The date of sitting shall be determined by
the chairman and at least 14 days7 previous
notice shall be given to the parties.
3. Each party shall appoint a representative.
Any communication between the parties and
the tribunal or between the parties themselves
shall be conducted through these representatives.
The tribunal shall appoint a secretary to
whom communications shall be addressed.
4. The procedure shall consist of two stages—
(1) Written cases or pleadings; and
(2) Oral debates.

The oral discussion shall be public.
5. The party which is in the position of plaintiff shall deliver its case within six weeks from
the date of the special agreement or a date to
be fixed by the chairman or by the tribunal, and
the other party shall present its counter-case
within six weeks from the date on which it
receives the case of the first party.
If any dispute shall arise as to which party is
in the position of plaintiff in any particular
case, the matter shall be decided summarily by
the president of the tribunal or any member
thereof appointed for this purpose by the president.
6. Cases shall contain—
(1) A statement of the facts on which the claim is
based.
(2) A statement of law.
(3) A statement of conclusions.
(4) A list of the documents in support; these documents shall be attached to the case.

Counter-cases shall contain—
(1) The affirmation or contestation of the facts stated
in the case.
(2) A statement of additional facts, if any.
(3) A statement of law.
(4) Conclusions based on the facts stated; these
conclusions may include counterclaims, in so far as
the latter come within the jurisdiction of the tribunal.
(5) A list of the documents in support; these documents shall be attached to the countercase.

7. The parties shall also respectively have
the right to deliver a reply and rejoinder within
three weeks after the receipt of the last preceding pleading.
All cases shall be printed, six copies at least
to be delivered to the opposing party and
twelve at least to the tribunal. Each party
shall acknowledge the receipt of any document

APRIL, 1930

to the party which has delivered it, and shall
inform the tribunal of the date of receipt.
Certified copies of any documents on which
reliance is placed shall be annexed to the pleading in which they are referred to.
8. The periods above fixed may be extended
either by the agreement of the parties or by a
decision of the chairman or of the tribunal.
9. The written proceedings may be in English,
French or (where Germany is a party) in German. It shall, however, be open to any
member of the tribunal to require that any
pleading or other document (including any
translation) delivered in one of those three
languages should be translated into another
and, if necessary, duly certified.
10. Not more than two advocates may
appear on behalf of each party for each separate
question submitted to arbitration.
11. The advocates may address the tribunal in
their own language, subject to the right of any
member of the tribunal or an opposing party to
require a translation into English or French.
12. Shorthand minutes shall be taken on
behalf of the tribunal of all oral arguments,
and transcripts shall be supplied with all
possible despatch to the members of the
tribunal and to the parties. The secretary of
the tribunal shall be responsible for the execution of this clause and for the preparation of
the necessary minutes.
13. For all the purposes of the arbitration up
to the commencement of the oral proceedings,
the president or any two members of the
tribunal appointed by him shall be qualified to
take in the name and on behalf of the tribunal
any decisions which the tribunal is authorized
to take.
14. No party may, without the consent of
the other party, make use in the course of the
discussion of any document which has not been
previously communicated to the other party.
15. Any member of the tribunal may put
to the parties during the discussion any questions which he thinks proper. The tribunal
may at any time before reaching a decision
employ any means of information which it
considers necessary, and may ask for any
supplementary notes, memoirs or documents
which it thinks desirable. Should, however,
the tribunal resort to other means of information than those supplied by the parties it will
allow them to submit arguments on the additional information.
16. No oral explanation will be received from
either party unless the other party is present
or has been duly summoned.

221

FEDERAL RESERVE BULLETIN

APRIL, 1930

17. Any request or communication addressed
to the tribunal by one of the' parties will be
communicated at the same time to the other.
18. The secretary of the tribunal shall notify
all proceedings instituted before the tribunal
to all parties to The Hague agreement of
January, 1930.
19. When any signatory power or the Bank
for International Settlements consider that it
has an interest of a legal nature which may be
affected by the decision in a case, it may submit a request to the tribunal to be permitted
to intervene as a third party.
In the absence of an agreement between the
parties, the chairman or any members of the
tribunal appointed by him for that purpose
shall fix the time within which the party intervening is to deliver his case.
Subject to any contrary decision of the tribunal, the foregoing rules and the provisions
as to arbitration of the agreement of The
Hague of January, 1930, and in particular those
relating to the appointment of an additional
member in certain cases, shall apply to a
party intervening in the same manner as to
the original parties.
AGREEMENT

AUSTRIA
The duly authorized representatives of the
Government of the Republic of Austria, the
Government of His Majesty the King of the
Belgians, the Government of the United
Kingdom of Great Britain and Northern Ireland, the Government of Canada, the Government of the Commonwealth of Australia, the
Government of New Zealand, the Government
of the Union of South Africa, the Government
of India, the Government of the French Republic, the Government of the Greek Republic,
the Government of His Majesty the King of
Italy, the Government of His Majesty the
Emperor of Japan, the Government of the
Republic of Poland, the Government of the
Republic of Portugal, the Government of His
Majesty the King of Rumania, the Government of the Czechoslovak Republic and the
Government of His Majesty the King of
Yugoslavia have reached the following agreement:
ARTICLE I

The financial obligations of Austria arising
under any provision of the armistice of November 3, 1918, and the treaty of St. Germain
and any treaties or agreements supplementary

thereto shall be finally discharged by the
payments, deliveries and cessions made by
Austria up to the date of the coming into force
of this agreement, subject to the provisions of
Article IV below. In consequence, the first
charge on all the assets and revenues of Austria
created by article 197 of the treaty of St.
Germain in favor of the cost of reparation
and all other costs arising under the said
treaty or any other treaties or agreements
supplementary thereto or under the armistice
ceases to be operative.
ARTICLE II

All relations between the Reparation Commission and Austria shall be terminated as
from the date of the coming into force of the
present agreement. The accounts of the Reparation Commission with Austria will be considered as finally closed at the date when this
agreement comes into force.
ARTICLE

III

Subject to the provisions of Article IV of this
agreement, all outstanding claims and counterclaims arising under the treaty of St. Germain
or under the armistice or in consequence of war
measures between Austria on the one part and
the other powers signatory to this agreement
on the other part or between Austrian nationals
and the said powers or between the nationals
of the said powers and Austria are hereby reciprocally waived.
ARTICLE IV

Any arrangements already signed by Austria
on the one part and any other power signatory
to this agreement on the other part in pursuance
of the treaty of St. Germain or any treaties or
agreements supplementary thereto, and any
credits resulting from the arrangements first
mentioned in this article remain unaffected by
this agreement.
ARTICLE V

The creditor powers signatory to this agreement undertake as from the date of coming
into force of this agreement to cease to apply
their right to retain and liquidate the property,
rights, and interests belonging at the date of the
coming into force of the treaty of St. Germain
to nationals of the former Austrian Empire or
companies controlled by them, in so far as such
property, rights and interests are not already
liquid or liquidated or have not yet been definitely disposed of:

222

FEDERAL RESERVE BULLETIN
ARTICLE VI

The claims of Austria against Germany referred to in article 213 of the treaty of St. Germain and any claims of Germany against Austria referred to in article 261 of the treaty of
Versailles have been canceled by The Hague
agreement of January, 1930, concluded with
Germany. Austria takes note of and accepts
this cancellation.
Equally any claim of Austria against Hungary or Bulgaria referred to in the said article
213 of the treaty of St. Germain and any claim
of Hungary or Bulgaria against Austria, respectively, referred to in article 196 of the
treaty of Trianon and article 145 of the treaty
of Neuilly are canceled; any securities and
documents relating to these claims shall be
destroyed.
ARTICLE

VII

Nothing in this agreement shall affect the
arrangements made in connection with the
guaranteed Austrian loan of 1923, in connection
with Austrian relief bonds and in connection
with the obligations arising under article 203
of the treaty of St. Germain.
The further execution of this article and its
annex in so far as the duties of the Reparation
Commission are concerned will in due course
form the subject of an arrangement between the
parties interested.
ARTICLE

VIII

APRIL, 1930

mit the instrument of ratification as soon as
possible.
The first proces-verbal of the deposit of
ratifications will be drawn up as soon as the
agreement has been ratified by Austria on the
one hand and, on, the other hand, by four of
the governments of the following Powers,
that is to say, Belgium, Great Britain, France,
Italy and Japan and three of the governments
of the following Powers, that is to say, Greece,
Poland, Portugal, Rumania, Czechoslovakia
and Yugoslavia.
The present agreement will come into force
between the contracting parties who have thus
ratified, from and after the date of the first
proces-verbal.
Save as above provided the agreement will
come into force for each signatory Government at the date of its notification of the
deposit of its ratification.
The French Government wdll transmit to all
the signatory Governments a certified copy of
the proces-verbaux of the deposit of ratifications.
Done at The Hague in a single copy the 20th
January, 1930.
Schober, Juch, Henri Jaspar, Paul
Hymans, E. Francqui, Philip Snowden,
Peter Larkin, Granville Ryrie, E. Toms,
Philip Snowden, Philip Snowden, Henri
Cheron, Loucheur, N. Politis, J. G.
Politis, A. Mosconi, A. Pirelli, Suvich,
Adatci, K. Hirota, J. Mrozowski, R.
Ulrich, Tomaz Femandes, G. G. Mironesco, Al. Zeuceano, Dr. Eduard Benes,
Stefan Osusky, Dr. V. Marinkovitch,
Const. Fotitch.

Any dispute between the contracting parties
as to the interpretation or application of the
present agreement shall be submitted for final
decision to the tribunal referred to in The
AGREEMENT
Hague agreement with Germany of January,
1930, in accordance with the procedure estabBULGARIA
lished in that agreement. Provided always
THE duly authorized representatives of the
that on the occasion of any such dispute the
place of the member of the tribunal appointed Government of His Majesty the King of the
by Germany will be taken by a member ap- Belgians, the Government of the United
Kingdom of Great Britain and Northern Irepointed by Austria.
land, the Government of Canada, the Government of the Commonwealth of Australia, the
FINAL CLAUSE
Government of New Zealand, the Government
The present agreement, of which the French of the Union of South Africa, the Government
and English texts are both authentic, shall be of India, the Government of the Kingdom of
ratified.
Bulgaria, the Government of the French
The deposit of ratifications shall be made at Republic, the Government of the Greek Republic, the Government of His Majesty the
Paris as soon as possible.
The powers of which the seat of government King of Italy, the Government of His Majesty
is outside Europe will be entitled to inform the the Emperor of Japan, the Government of the
French Government through their diplomatic Republic of Poland, the Government of the
representative at Paris that their ratification Republic of Portugal, the Government of His
has been given; in that case they must trans- Majesty the King of Rumania, the Govern-

APRIL, 1930

FEDERAL RESERVE BULLETIN

ment of the Czechoslovak Republic and the
Government of His Majesty the King of
Yugoslavia have reached the following agreement :
(1) The creditor powers waive their right to
Tranche B of the Bulgarian reparation debt
as defined by the protocol of March 21, 1923.
Furthermore, Great Britain, France, and Italy
waive their claim to payment of the outstanding balance in respect of armies of occupation;
(2) The creditor powers accept in full and
complete satisfaction of the total amount of
Tranche A of the Bulgarian reparation debt
which remains unpaid at this date the annuities
expressed in gold francs fixed in the following
schedule of payments, the gold franc as defined
by article 146 of the Treaty of Neuilly.
Number of annuities in
gold francs

Apr. 1, 1930
Apr. 1, 1930, to Mar. 31,
1940
Apr. 1, 1940, to Mar. 31,
1950
Apr. 1, 1950, to Mar. 31,
1966

5 millions.
10 annuities of 10,000,000.
10 annuities of 11,500,000.
16 annuities of 12,515,238.

The first payment provided for April 1, 1930,
shall be made in full at that date. Subsequentannuities shall be payable in two equal halfyearly installments on September 30 and
March 31 of each year, the first installment
falling due on September 30, 1930, and the
last on March 31, 1966.
(3) The annuities fixed in article 2 shall constitute an unconditional obligation and the
parties signatory to the present agreement
waive their right to demand the application of
article 122 of the treaty of Neuilly. Bulgaria
may, however, if the need arises request the
application of the system of postponement of
transfer instituted by the Reparation Commission's decision of July 23, 1926, pursuant to
the financial scheme approved on June 10,
1926, by the council of the League of Nations.
These annuites shall enjoy the benefit of the
same special securities as are assigned to the
annuities of the schedule of payments of
March 21, 1923, by virtue of the protocols of
March 21, 1923, and September 24, 1928.
They shall be represented by a debt certificate,
with coupons attached, which shall be handed
over by the Bulgarian Government to the
Bank for International Settlements acting as
trustee for the creditor powers.
The first charge established by article 132 of
the treaty of Neuilly upon all the assets and
revenues of Bulgaria for the cost of reparation
and other costs referred to in that article shall
cease to have effect. But if the product of the

223

special securities falls below 150 per cent of the
sums necessary for the service of the annuity,
the Bulgarian Government undertakes at the
request of the Bank for International Settlements, to assign to reparations additional securities which shall be considered acceptable by
the said bank and shall at least restore the
said percentage, and to promulgate any laws
necessary for this purpose.
(4) The National Bank of Bulgaria shall
retain its present functions and obligations in
regard to the payment of reparations arising
out of the regulations of July 7, 1923, regarding
the application of the protocol of March 21,
1923, and shall comply with those regulations
in regard to the collection of the proceeds from
the securities, the constitution in national currency of the annuity funds and their conversion
into foreign currencies.
(5) The rights and powers conferred on the
Reparation Commission and on the Interallied
Commission in Bulgaria shall, in so far as is
necessary, be transferred to the Bank for International Settlements.
Consequently, the relations between the
Reparation Commission and the Interallied
Commission in Bulgaria, of the one part, and
the Bulgarian Government, of the other part,
shall terminate as soon as possible. The conditions and the date of this transfer shall be
determined by a committee consisting of two
representatives of the Bulgarian Government,
of four representatives of the Reparation Commission, or of the Interallied Commission in
Bulgaria (one of whom shall be the common
delegate on the Reparation Commission or a
representative appointed by him), and, if possible, of two representatives of the Bank for
International Settlements.
(6) Further, and in addition to the payments
fixed by article 2, the Bulgarian Government
shall remain responsible for all its obligations
to the nationals of the creditor powers whose
rights as now existing are in no way affected
by the present agreement.
The creditor Governments who have not
yet adhered to the contract of April 14, 1923,
relating to a moratorium granted to the Bulgarian Government by the French and Belgian
creditors, to the rider of October 10, 1923, to
the said contract and to the agreement of April
14, 1923, relating to the issue of Bulgarian 6%
per cent State bonds, 1923, may adhere thereto
up to June 30, 1930, and the Bulgarian Government undertakes to accept such adhesions and
to give full effect thereto.
¥ i\
(7) As from the date of the coming into force
of the present agreement, the creditor Govern-

224

FEDERAL RESERVE BULLETIN

ments waive their right to retain and liquidate
the property, rights, and interests of Bulgarian
nationals, in so far as such property is not yet
liquid or liquidated or has not been disposed of
finally. Nevertheless, Bulgarian property subject to liquidation in Rumania has formed the
subject of an agreement on the basis of a payment of 110,000,000 lei to be made to Rumania
in two equal installments, the first of which shall
be payable three months after ratification, and
the second within a year. This agreement
forms an integral part of the present agreement.
(8) Bulgaria undertakes to conclude within
six months of the coming into force of the
present agreement the arrangements necessary
to ensure the regular service of the quota of
the Ottoman debt for which she is liable
and to meet without delay the obligations
devolving upon her as a result of the said
arrangements.
(9) With the exception of claims which have
been the subject of a previous special agreement
or of a convention concluded in pursuance of the
treaty of Neuilly and also of claims arising under
article 141 of that treaty, all claims of the Bulgarian Government against the creditor powers
or their nationals and also all claims of Bulgarian nationals against the creditor powers based
on the provisions of the treaty of Neuilly are
completely canceled by the present agreement.
(10) No private claims of nationals of the
creditor powers, which under the treaty of
Neuilly should be settled either by the intervention of the clearing office or by the mixed
arbitral tribunals and which have not been
regularly laid before those bodies before the
coming'into force of the present agreement,
shall be received by them.
(11) The claims of Bulgaria against Germany
referred to in article 145 of the treaty of
Neuilly and any claims of Germany against
Bulgaria referred to in article 261 of the treaty
of Versailles have been canceled by the agreement with Germany of even date concluded at
The Hague conference. Bulgaria takes note
of and accepts this cancellation.
Equally any claim of Bulgaria against Austria
or Hungary referred to in the said article 145 of
the treaty of Neuilly and any claim of Austria
or Hungary against Bulgaria respectively referred to in article 213 of the treaty of St.
Germain and article 196 of the treaty of Trianon
are canceled; any securities or documents relating to these claims shall be destroyed.
(12) Nothing in the present agreement shall
modify the rights which the Soci6t6 des Porteurs
de Cr£ances Civiles en Bulgarie derives from
the contract entered into with the National

APRII,

1930

Bank of Bulgaria on May 30, 1923. The
creditor Governments which have not yet
adhered to the said contract may adhere thereto
up to June 30, 1930.
(13) Should the Bank for International
Settlements not accept the whole of the functions attributed to it by the present agreement,
the appointment of some other trustee to be
substituted so far as necessary for the bank, will
form part of the task of the committee constituted under article 5.
(14) Any dispute between the contracting
parties as to the interpretation or application
of the present agreement shall be submitted for
final decision to the tribunal referred to in The
Hague agreement with Germany of January,
1930, in accordance with the procedure established in that agreement. Provided always
that on the occasion of any such dispute the
place of the member of the tribunal appointed
by the German Government will be taken by a
member appointed by the Bulgarian Government.
FINAL CLAUSE

The present agreement, of which the French
and English texts are both authentic, shall be
ratified.
The deposit of ratifications shall be made at
Paris as soon as possible.
The powers of which the seat of government
is outside Europe will be entitled to inform the
Government of the French Republic through
their diplomatic representative at Paris that
their ratification has been given; in that case
they must transmit the instrument of ratification as soon as possible.
A first procSs-verbal of the deposit of ratifications will be drawn up as soon as the agreement has been ratified by Bulgaria, on the one
hand, and, on the other hand, four of the following Governments; that is to say, Belgium, Great
Britain, France, Italy, and Japan, and three of
the following Governments; that is to say,
Greece, Poland, Portugal, Rumania, Czechoslovakia, and Yugoslavia.
The present agreement will come into force,
between the contracting parties who have thus
ratified, from and after the date of the first
proces-verbal.
Save as above provided the agreement will
come into force for each signatory Government
at the date of notification or of the deposit of its
ratification.
The French Government will transmit to all
the signatory Governments a certified copy of
the proces-verbaux of the deposit of ratifications.

Done at The Hague in a single copy the 20th
January, 1930.
Henri Jaspar, Paul Hymans, E. Francqui,
Philip Snowden, Peter Larkin, Granville
Ryrie, E. Toms, Philip Snowden, Philip
Snowden, A. D. Bouroff, VI. Molloff,
Henri Cheron, Loucheur, N. Politis,
J. G. Politis, A. Mosconi, A. Pirelli,
Suvich, Adatci, K. Hirota, J. Mrozowski, R. Ulrich, Tomez Fernandes, G. G.
Mironesco, N. Titulesco, J. Lugosiano,
Al. Zeuceano, Dr. Eduard Bene&, Stefan
Osusky, Dr. V. Maripkovitch. Const
Fotitch.
DECLARATION BY THE CREDITOR GOVERNMENTS
ATTACHED TO THE AGREEMENT WITH BULGARIA

The creditor Governments have taken note of
the Bulgarian Government's request to benefit
by a remission of a portion of its debt in the
event of the creditor Governments themselves
obtaining remission of the interallied debts.
They state their readiness collectively, if necessary, to consider favorably the possibility of
allowing Bulgaria to have the benefit of advantages proportional to those which the special
memorandum of the experts of the principal
creditor powers and Germany concerning outpayments, appended to the experts7 report of
June 7, 1929, grants to Germany, without, however, any power having its share in Bulgarian
annuities reduced by more than 50 per cent as a
result of this possible reconsideration.
CONFERENCE OF THE HAGUE, 1930

The Bulgarian Government hereby undertake to pay a sum of £8,000 toward the expenses of the liquidation of the Interallied
Commission, in addition to all monthly payments for which it is liable apart from this
undertaking.
A. D. BOUROFF.
YL. MOLLOFF.
JANUARY 20,

225

FEDERAL RESERVE BULLETIN

APRIL, 1930

1930.

REVISED TEXT
AGREEMENT RELATING TO HUNGARIAN OBLIGATIONS UNDER THE TREATY
The Governments of Belgium, France, Great
Britain, Canada, the Commonwealth of Australia, New Zealand, South Africa, India, Greece,
Hungary, Italy, Japan, Poland, Portugal,
Rumania, Czechoslovakia, and Yugoslavia met

at The Hague with a view to arriving at a final
and complete settlement of the question of the
reparation due by Hungary and that of various
special claims and to insure the settlement of
disputes of a financial nature which have arisen
between Hungary or Hungarian nationals, of the
one part, and certain powers, of the other part.
The appended and duly initialed texts set
forth and define the bases of the agreements
which now and henceforth constitute an
undertaking on the part of the signatory
Governments.
It is on these bases that the final texts will
have to be drafted. A committee which will
comprise a representative of each of the signatory powers is intrusted with the drafting
of these texts. This committee shall sit in
Paris as from February 5, 1930.
If the committee is unanimous the texts
drafted by it shall be definitive.
In the event of any difficulty in drawing up
these texts, the parties state that they will
accept the unanimous decision of France, Great
Britain, and Italy.
ANNEX I
GENERAL AGREEMENT BETWEEN THE CREDITOR POWERS AND HUNGARY

A certain number of claims on the basis
of Article 250 of the Treaty of Trianon have
been submitted by Hungarian nationals against
the three Governments of Rumania, Czechoslovakia, and Yugoslavia arising out of the
application of the agrarian reform legislation
in those countries.
Legal proceedings are at present pending
before the mixed arbitral tribunals provided
for in the treaty.
Although the three Governments interested
are prepared to conclude the present agreement in a spirit of conciliation with a view to
terminating as far as possible the existing
disputes with the Hungarian Government, they
declare formally that this fact can not constitute in any way a recognition by them of
the justice of the said claims.
On the contrary, they intend to enter an
express reservation as to their point of view
and the present agreement can not in any way
be considered as justification for any fresh
action or any claim.
In response to the appeal of friendly powers
not interested in these disputes, the three
Governments have desired to display their
spirit of conciliation and their desire for peace.

226

FEDEKAL RESERVE BULLETIN

For its part the Hungarian Government
states that from the legal point of view it
maintains the position which it previously
adopted in regard to these questions and it
wishes it to be recognized that it accepts the
present agreement in the same desire for
conciliation and peace.
ARTICLE I

The responsibility in connection with all
lawsuits now proceeding, and which may be
begun in regard to agrarian legislation, including the reform to be carried out in Yugoslavia which has not yet formed the subject
of a final law^, shall henceforth be borne by a
common fund hereinafter called the " agrarian
fund" in so far as this fund is available.
ARTICLE II

APRIL. 1930

has been notified. A final distribution shall
then be made amongst the beneficiaries, the
total of which shall not exceed the total of the
agrarian fund. This distribution shall be
effected on the basis of regulations to be
drawn up by the managing committee of the
fund.
ARTICLE VIII
The mixed arbitral tribunals shall not be
competent to pronounce on differences of
principle between the parties of the nature of
those set forth in the preamble to the present
agreement. They shall pronounce solely on
the basis of the present agreement by granting,
where the occasion arises, compensation to the
claimants against the agrarian fund.
ARTICLE IX

The mixed arbitral tribunal shall inquire
The agrarian fund shall have legal personality and shall be financially autonomous, whether the claimant is a qualified Hungarian
subject to the condition set forth in the special national and whether his property has been
expropriated by virtue of agrarian legislation
agreement concerning this fund.
and, if so, they shall pronounce on the amount
of the compensation to be allotted unless a
ARTICLE III
friendly agreement is arrived at with the
The fund shall entirely take the place of agrarian fund.
the present defendants in agrarian lawsuits
ARTICLE X
already brought before the mixed arbitral
tribunals or which may arise from an act of
For the purposes of the execution of the
seizure or disposal prior to the present agree- present agreement, each of the mixed arbitral
ment.
tribunals shall be completed by the appointARTICLE IV
ment of two extra members, selected by the
Suits brought against Rumania, Czecho- Permanent Court of International. Justice from
the nationals of countries which were neutral
slovakia or Yugoslavia shall ipso facto be during
the late war and who possess the qualities
considered as having been brought against necessary
to act as arbitrators.
the agrarian fund.
ARTICLE V

ARTICLE XI

In the relations between Rumania, CzechoJudgments shall be given in favor or against
the agrarian fund and shall be executed by its slovakia, and Yugoslavia or their nationals, of
the one part, and Hungary or her nationals,
means.
of the other part, the mixed arbitral tribunal
ARTICLE VI
shall henceforth in all cases be composed as
As stated above the agrarian fund shall be indicated in the preceding article.
solely and entirely responsible in so far as this
fund is available for the payment of comARTICLE XII
pensation allotted by the mixed arbitral triRumania, Czechoslovakia and Yugoslavia,
bunals in the lawsuits referred 1to above and
Rumania, Czechoslovakia, ar" Yugoslavia of the one part, and Hungary, of the other
shall be free of any responsibility present or part, agree to recognize the Permanent Court
of International Justice as the court of appeal
future.
from all judgments on questions of competence
ARTICLE VII
or of substance henceforth given by the mixed
No payment^shall be made by the agrarian arbitral tribunals in all suits other than those
fund until the total amount of the judgments referred to in the present agreement and relat-

APEIL, 1930

227

FEDERAL RESERVE BULLETIN

ing to agrarian matters, without there being
It is understood that if Czechoslovakia does
any need for any special terms of reference.
not liberate 200,000 jugars out of the properties
which have been expropriated or which have
ARTICLE XIII
been declared inalienable, the above-mentioned
reduction shall not be made in so far as CzechoThe mixed arbitral tribunals shall cease to slovakia is concerned. In brief, for this counfunction for a period of six months as from the try, the reduction will only be made in respect
date of the present agreement.
of the quantities of properties liberated of
upward of 200,000 jugars.
ANNEX II
CREATION AND WORKING OF AGRARIAN FUND

ARTICLE III

There shall be paid into the fund all the
sums, in the form of securities or otherwise,
which according to the local law are payable
subsequently and would be paid to the expropriated owners if the latter put forward claims.
If on the other hand an owner abandons all
claims in return for this payment he shall be
assimilated for the purpose of calculating the
ARTICLE I
fund to an owner of a property which has been
The capital of this fund has been fixed at returned in so far as the property is one the
liberation of which is such that no reduction in
240,000,000 gold crowns.
The figure of 240,000,000 gold crowns has pursuance of article 2 is involved.
been fixed on the basis of the figures indicated
ARTICLE IV
in the Hungarian delegation's memorandum
presented to The Hague conference (second
The final amount of the capital of the fund
commission—non-German reparations). At shall be fixed (taking into account the abovethat time, Hungary presented a total of claims mentioned reduction) in order to assure the
amounting to 310,000,000 gold crowns, which service of the interest and sinking fund of the
has been reduced to 240,000,000 gold crowns. bonds which it will create to an amount equal
The basic figures taken in the said memo- to the final amount of the capital. It will
randum as the average value of the cadastral dispose of annuities and of the proceeds of the
jugar in each country, must therefore be securities received by it as described in Articles
reduced in the proportion of 310 to 240.
II and III above in respect of the expropriated
For all the properties regarded as expropri- properties.
ated in the Hungarian memorandum above
The calculations have been made on the basis
mentioned and restored to the owners as from of interest at the rate of 4 per cent from 1933
the present date in Czechoslovakia and from the to 1966, the sinking fund of the securities being
beginning in Yugoslavia, the amount of the effected as from 1944 by equal annuities to
fund must be reduced pro tanto by the appli- include interest and sinking fund for each
cation to these jugars of the reduced basic year from 1944 to 1966.
price resulting from the above-mentioned calculation. Nevertheless, corrections may be made
ARTICLE V
in the application of the rule by the commission
The annuities available to the fund are the
for administering the fund so as to take into
following:
account the quality of the properties.
1. As from 1944, 6,100,000 gold crowns paid
by Czechoslovakia, Yugoslavia, and Rumania
ARTICLE II
by means of the sums received in respect of the
Account must similarly be taken of the sums special claims.
already paid according to the local laws to the
2. From 1931 to 1943 the annuities paid by
expropriated owners who have accepted this Hungary in respect of reparations representing
payment whether made in the form of money the shares of France, Great Britain, Italy, Poror of securities; these sums shall be considered tugal, Japan, and Belgium.
as having been paid into the fund and the lia3. Annuities paid by Great Britain, Italy,
bilities toward this fund shall be reduced and France, of which the maximum amounts are
pro tanto.
fixed below:

By an agreement signed to-day with the
Hungarian Government, provision has been
made for a fund, called "The agrarian fund."
The object of the present convention is to
define the conditions of the constitution and
operation of this fund.

228

FEDERAL RESERVE BULLETIN

APRIL, 1930

1931 and 1932: Nil.
1933 to 1943: 3,600,000 gold crowns.

the question shall be submitted to an arbitrator
selected b}r the managing committee unaniof which 40 per cent will be paid by France, 40 mously, or, failing that, by the president of the
per cent by Italy, and 20 per cent by Great Permanent Court of International Justice.
Britain.
1944 to 1966: 2,280,000 gold crowns.

payable in the same proportions.
These latter annuities shall be reduced, if
necessary in order to take account of the diminution of the final amount of the capital of the
fund.
The sums resulting from the reduction above
mentioned will be paid to fund B (referred to in
the agreement of to-day's date) by the abovenamed powers when the managing committee
considers, in agreement with these powers, that
it is possible, and then only if it is necessary.

ARTICLE

An organization committee consisting of four
members shall be appointed by the president of
The Hague Conference, M. Jaspar, after consultation with the Governments of France,
Great Britain, Italy, and Hungary.
This organization committee shall have the
task of drawing up the detailed regulations for
the constitution and the operation of the fund
referred to in the present agreement.
ANNEX III

AGREEMENT BETWEEN FRANCE, GREAT BRITAIN, ITALY, RUMANIA, CZECHOSLOVAKIA,
AND YUGOSLAVIA CONCERNING THE CONManaging committee.—The fund shall be
STITUTION OF A SPECIAL FUND CALLED
administered under the control of a committee
"FUND B "
ARTICLE

consisting of four members, of whom one shall
By an agreement of even date with the Hunbe named by the Hungarian Government and
three by the financial committee of the League garian Government a settlement has been
of Nations or any other organization chosen by reached on questions raised concerning agrarian
the three powers—France, Great Britain, and reform.
Nevertheless there remain outstanding beItaly.
tween
certain Hungarian nationals and the
ARTICLE VII
Governments of Rumania, Czechoslovakia, and
The committee referred to in article 6 shall Yugoslavia important difference concerning the
appoint a financial committee intrusted with application of articles 63, 191, and 250 of the
the task of inquiring into the detailed arrange- treaty of Trianon. France, Great Britain, and
ments to be made in order to secure to the Italy in the interests of peace and friendship
greatest extent and under the best conditions have agreed to intervene, with a view to settling
possible the mobilization or discount of the these differences, in the following manner:
I. A fund shall be created the nominal capital
bonds issued by the fund. In particular, the
committee shall endeavor to give these bonds of which shall be 100,000,000 gold crowns.
such a form as will enable the holders to obtain This fund can be constituted on an autonomous
basis with legal personality.
advances.
II. The fund shall not be made up of capital
The members of this committee shall be
chosen from the nationals of countries having payments but by means of the annuities as set
an important financial market, including Hun- forth below and calculated on the following
basis:
gary.
(1) As from January 1, 1931, at 3 per cent or
The committee shall use every endeavor to
secure that these detailed arrangements shall 3,000,000 gold crowns per annum.
(2) As from January 1, 1943, at 5 per cent,
be included in the final text of the agreements
as they will be submitted for ratification to the the whole to be paid off in 1966, or 7,400,000
gold crowns.
Hungarian Parliament.
For the first 13 years from 1931 to 1943 the
When, in the view of the managing committee, cash resources available permit, the com- 3,000,000 gold crowns necessary shall be paid
mittee may make lump sum payments in cash under the following conditions:
in return for the cancellation of bonds.
20 per cent, or 600,000 gold crowns, by Great
ARTICLE

VIII

Britain.
40 per cent, or 1,200,000 gold crowns, by France.
40 per cent, or 1,200,000 gold crowns, by* Italy.

In the case of differences as to the interpreta- to the extent of the requirements of the fund as
tion and application of the present agreement, set forth hereunder.

APRIL, 1930

FEDERAL RESERVE BULLETIN

These sums shall be paid in two equal installments on June 30 and December 31 of each
year.
IV. During each of the 23 years from 1944 to
1966 the maximum payments to be made to the
fund shall amount to 7,400,000 gold crowns per
annum. They shall be charged against the
13,500,000 gold crowns which Hungary has
undertaken to pay as from 1944 during 23 years
in respect of the special claims.
V. The fund may issue bonds or proceed to
any credit or discounting operations on the
basis of the above payments.
VI. The totals of the final judgments pronounced against the Governments of Rumania,
Czechslovakia, and Yugoslavia shall be debited
to this fund. For this purpose the amount
actually paid by each State during each period
of 6 months shall be notified to the fund.
Payment to each of the 3 States interested
shall be made proportionately to the total
sums with which each shall have been credited
at periods and in accordance with procedure
agreed between them and with the managing
committee of the fund. The fund shall in no
case be under an obligation to pay more than
the total of its assets derived from the annual
receipts specified above. It may meet its
obligations with bonds at the rates of interest
and with the conditions for redemption set
forth above.
VII. Recourse shall only be had to the payment provided for in the above article as need
shall arise. In consequence the payments for
which the three powers (Great Britain, France,
and Italy) are responsible shall not be exceeded.
VIII. Any saving realized on the receipts of
the fund shall be employed to redeem the sums
paid to the fund by Great Britain, France and
Italy, proportionately to the contributions of
each of these powers.
IX. In addition to the resources referred to
above the fund may be supplied (and in consequence its capital increased) by the surplus
available from the special fund called " Agrarian
fund" created by the agreement of even date
with Hungary.
X. The fund shall be administered by a managing committee consisting of six members appointed, respectively, by the Governments of
France, Great Britain, Italy, Rumania, Czechoslovakia, and Yugoslavia.
The managing committee shall elect its
chairman.
The organization and the working of the
fund shall form the subject of special regula-

229

tions drawn up by* the organization committee
referred to in Article XIII.
XI. The fund shall meet the whole of its
working expenses.
XII. In the event of any difference of opinion
as to the interpretation or application of the
present agreement the question shall be submitted to an arbitrator to be chosen by the
unanimous decision of the managing committee or, failing such decision, by the president
of the Permanent Court of International
Justice.
XIII. An organizing committee of six members shall be appointed by the Governments of
France, Great Britain, Italy, Rumania, Czechoslovakia, and Yugoslavia.
This organizing committee shall be intrusted
with the drafting of detailed regulations, the
constitution, and the working of the present
fund.
AGREEMENT BETWEEN THE HUNGARIAN GOVERNMENT AND THE CREDITOR GOVERNMENTS

1. For the complete and final settlement of
the charges incumbent on her b}7 virtue of the
treaty of Trianon, of the armistice of November
3, 1918, and of all supplementary arrangements
Hungary undertakes (without prejudice to the
payments specified in the decision of the
Reparation Commission No. 2797, dated February 21, 1924) to make on account of the
special claims which are based on the said
treaty, as from January 1, 1944, and during
the years 1944 to 1966 inclusive, the payment
of a constant annuity of 13,500,000 gold crowns.
2. The present agreement affects in no way
the obligations concerning pre-war public debts
which are chargeable to Hungary by virtue of
the treaty of Trianon nor her obligations under
all other agreements or arrangements concluded
up to the coming into force of the present
agreement.
3. The payments due up to January 1, 1944,
shall be subject to the conditions laid down in
the texts actually in force, and particularly in
the decision No. 2797 of the Reparation Commission. However, they shall be paid to the
Bank for International Settlements for the
account of the creditor States.
4. The payments due after 1944 constitute
an unconditional obligation; that is to say,
without any rights of suspension whatsoever.
They shall be made in gold or in currency
equivalent to gold in equal half-yearly periods
on January 1 and July 1 of each year, the first
payment falling due on Januar}7 1, 1944. Like

230

FEDERAL RESERVE BULLETIN

the preceding payments they shall be made to
the Bank for International Settlements for the
account of the creditor States.
5. Hungary undertakes to reserve from its
state revenues an annual sum at least equal to
150 per cent of the annuities laid down in
article 1 and it is understood that if an
annuity is not paid on the date due Hungary
shall immediately on receipt of a simple claim
from the creditors (representing at least onehalf of the annuity in question) constitute the
said annual sum as security.
6. Subject to the application of the provisions
of the precedingr article the right of first charge
established b} article 180 of the treaty of
Trianon on all property and assets of Hungary
for the settlement of reparation and other
charges contained in the said article shall cease
to have effect as from the date of the entry
into force of the present agreement.
7. The Hungarian Government shall transmit to the Bank for International Settlements
in its capacity of trustee for the creditor powers
certificates representing the annuities specified
under 1, which certificates in their text should
carry out the provisions of articles 3 and 5.
8. The creditor powers signatory to the
present agreement undertake, as from the date
of its application, to cease to exercise their
right of retention and liquidation of property,
rights, and interests which, at the date of entry
into force of the treaty of Trianon, belong to
nationals of the former Kingdom of Hungary
or to organizations controlled by them, in so
far as the said property, rights, and interests
are not already liquid or liquidated or in so far
as they have not already been finally disposed of.
9. The creditor powers signatory to the present agreement undertake to abstain from collecting those claims of Hungary on its former
allies which may have been transferred to the
said powers by article 196 of the treaty of
Trianon and Hungary renounces in so far as it
is concerned any net balance which may be
due to her by reason of these claims. The said
powers further undertake to refrain from recovering the claims which the former allies of
Hungary possessed on her and which were
transferred to the said powers by articles 261 of
the treaty of Versailles, 13 of the treaty of St.
Germain, and 145 of the treaty of Neuilly; in
consequence the said claims lapse entirely.
10. The relations between the Reparation
Commission and Hungary shall be terminated
as soon as possible.
The rights and powers conferred on the Reparation Commission shall be transferred as far

APML, 1930

as necessary to the Bank for International Settlements. The procedure and date for this
transfer shall be laid down by a committee
formed of two representatives of the Hungarian Government, by four representatives of the
Reparation Commission, to include the common delegate on the Reparation Commission,
or a representative nominated by him, and by a
representative of the Bank for International
Settlements.
Should the Bank for International Settlements not accept in its entirety the mandate
with which it is entrusted by the present agreement, it shall be the duty of the committee
formed as mentioned above to formulate the
amendments necessary to obtain its complete
adoption and failing that to choose a trustee as
far as this may concern the bank.
11. It is understood that, subject to the
approval of the Council of the League of
Nations, the committee of control for Hungary
shall cease to exercise its functions immediately
on the entry into force of the present agreement.
12. Any differences between the contracting
parties concerning the interpretation and the
application of the present agreement shall be
submitted for final decision to the tribunal
provided for in the agreement of The Hague of
January, 1930, with Germany in accordance
with the procedure laid down in that agreement.
Nevertheless, when such differences arise, the
member nominated by Germany shall be replaced by a member nominated by Hungary.
13. Subject to the above payments being
duly made, the governments of the creditor
powers, on the one hand, and the Hungarian
Government, on the other hand, reciprocally
renounce, each for its own part, all claims
arising out of the treaty of Trianon or the
armistice or all supplementary arrangements.
The present agreement, the French and English texts of which are authentic, shall be
ratified.
The deposit of ratifications shall be made at
Paris as soon as possible.
The powers, of which the seat of government
is outside Europe, will be entitled to inform
the French Government through their diplomatic representative in Paris that their ratification has been given; in that case they must
transmit the instrument of ratification as soon
as possible.
The first proc&s-verbal of the deposit of ratifications will be drawn up as soon as the agreement has been ratified by Hungary on the one
hand, and, on the other hand ; by four of the
Governments of the following powers—that is

231

FEDERAL RESERVE BULLETIN

APRIL, 1930

to say, Belgium, Great Britain, France, Italy,
and Japan—and two of the Governments of the
following powers—that is to say, Greece, Poland, Portugal, Rumania, Czechoslovakia, and
Yugoslavia.
The present agreement shall come into force
between the contracting parties who have thus
ratified from and after the date of the first
proces-verbal.
Save as above provided the agreement will
come into force for each signatory Government
at the date of its notification or the deposit of
its ratification.
The French Government shall transmit to
each of the signatory Governments a certified
copy of the proces-verbal of the deposit of
ratifications.

tional Settlements, for the account of the
creditor Governments, in pounds sterling, at the
average rate of exchange for the three days
preceding the date of payment.
The bank shall transfer the sums encashed to
the account of each of the creditor Governments, in accordance with the rules for distribution fixed by the arrangement between the
creditor powers (Austria, Hungary, Bulgaria,
liberation debt) concluded at The Hague
conference, 1930, and with any special arrangement between two or more of these Governments
concerning their respective shares, as fixed by
the said agreement which shall have been
notified to the bank by the creditor Governments concerned.

AGREEMENT WITH CZECHOSLOVAKIA

ARTICLE 3

The duly authorized representatives of the
Government of His Majesty the King of the
BcH°s-:, the Government of the United Kingdom oi. Great Britain and Northern Ireland,
the Government of Canada, the Government
of the Commonwealth of Australia, the Government of New Zealand, the Government of
the Union of South Africa, the Government of
India, the Government of the French Republic,
the Government of the Greek Republic, the
Government of His Majesty the King of Italy,
the Government of His Majesty the Emperor
of Japan, the Government of the Republic of
Poland, the Government of the Republic of
Portugal, the Government of His Majesty the
King of Rumania, the Government of the
Czechoslovak Republic, and the Government
of His Majesty the King of Yugoslavia have
reached the folioWPig agreement:

The present agreement constitutes as between the Czechoslovak Government, of the
one part, and the other signatory Governments,
of the other part, a final settlement of all the
obligations of Czechoslovakia which may result
from the treaties of Versailles, St. Germain,
Trianon, and Neuilly, from the agreement of
September 10, 1919, and from all arrangements
supplementary to the said treaties and agreements.
The present agreement, of which the French
and English texts are both authentic, shall be
ratified.
The deposit of ratifications shall be made at
Paris as soon as possible.
The powers of which the seat of government
is outside Europe will be entitled to inform the
French Government through their diplomatic
representative at Paris that their ratification
has been given; in that case they must transmit
the instrument of ratification as soon as
possible.
The French Government will transmit to all
the signatory Governments a certified copy of
the proces-verbaux of the deposit of ratifications.
Done at The Hague in a single copy the 20th
January, 1930.
Henri Jaspar, Paul Hymans, E. Francqui,
Philip Snowden, Peter Larkin, Granville Ryrie, E. Toms, Philip Snowden,
Philip Snowden, Henri Cheron, Louchcur, N. Politis, J. G. Politis, A.
Mosconi, A. Pirelli, Suvich, Adatci, K.
Ilirota, J. Mrozowski, R. Ulrich, Tomaz
Fernandes, G. G. Mironesco, Al. Zeuceano, Dr. Eduard Benes, Stefan Osusky,
Dr. V. Marinkovitch, Const. Fotitch."

ARTICLE 1

In complete and final settlement of her debt
arising out of the agreement of September 10,
1919, to the other powers having a credit on
reparation account in virtue of the treaties of
Versailles, St. Germain, Trianon, and Neuilly,
Czechoslovakia shall pay 37 annuities of
10,000,000 gold marks, the due dates of which
are fixed for the first complete annuity at
March 15, 1930, and, for the balance, payable
in half-yearly installments, at July 1 and
January 1 of each year, the final installment
being payable on Januaiy 1, 1966.
ARTICLE 2

The installments shall be paid by the Czechoslovak Government to the Bank for Interna103025—30 7

232

FEDERAL RESERVE BULLETIN

CONVENTION RESPECTING THE BANK FOR
INTERNATIONAL SETTLEMENTS

APltlL 1930

ment will notify the other signatory Governments and these provisions shall become valid
The duly authorized representatives of the during the bank's existence.
Governments of Germany, of Belgium, of
France, of the United Kingdom of Great Brit- Constituent charter of the Bank for International
Settlements
ain and Northern Ireland, of Italy, and of
Japan of the one part
Whereas the powers signatory to The Hague
And the duly authorized representatives of agreement of January, 1930, have adopted a
the Government of the Swiss Confederation of plan w^hich contemplates the founding by the
the other part
central banks of Belgium, France, Germany,
Assembled at The Hague conference in the Great Britain, Italy, and Japan and by a
month of January, 1930, have agreed on the financial institution of the United States of
following:
America of an international bank to be called
ARTICLE 1
the Bank for International Settlements;
And w^hereas the said central banks and a
Switzerland undertakes to grant to the Bank
for International Settlements, without delay, banking group including Messrs. J. P. Morgan
the following constituent charter having force & Co. of New York, the First National Bank
of law; not to abrogate this charter, not to of New York, N. Y., and the First National
amend or add to it, and not to sanction amend- Bank of Chicago, Chicago, have undertaken to
ments to the statutes of the bank referred to found the said bank and have guaranteed or
in paragraph 4 of the charter otherwise than arranged for the guaranty of the subscription
in agreement with the other signatory Govern- of its authorized capital amounting to 500,000-,
000 Swiss francs equal to 145,161,290.32 grams,
ments.
fine gold, divided into 200,000 shares:
ARTICLE 2
And whereas the Swiss Federal Government
Any dispute between the Swiss Government has entered into a treaty with the Governand any one of the other signatory Govern- ments of Germany, Belgium, France, Great
ments relating to the interpretation or appli- Britain, Italy, and Japan whereby the said
cation of the present convention shall be sub- Federal Government has agreed to grant the
mitted to the arbitral tribunal provided for by present constituent charter of the Bank for
The Hague agreement of January, 1930. The International Settlements and not to repeal,
Swiss Government may appoint a member who amend, or supplement the said charter and not
shall sit on the occasion of such disputes, the to sanction amendments to the statutes of the
president having a casting vote. In having bank referred to in paragraph 4 of the present
recourse to this tribunal the parties may arways charter except in agreement with the said
agree between themselves to submit their dis- powers;
1. The Bank for International Settlements
pute to the president or to one of the members
(hereinafter called the bank) is hereby incorof the tribunal chosen to act as sole arbiter.
porated.
2. Its constitution, operations, and activiARTICLE 3
ties are defined and governed by the annexed
The present convention is entered into for a statutes which are hereby sanctioned.
period of 15 years. It is entered into on the
3. Amendment of articles of the said statutes
part of Switzerland under reserve of ratifica- other than those enumerated in paragraph 4
tion and shall be put into force as soon as it hereof may be made and shall be put into force
shall have been ratified by the Government of as provided in article 59 of the said statutes and
the Swiss Confederation.
not otherwise.
The instrument of ratification shall be de4. Articles 2, 3, 4, 9, 15, 20, 25, 28, 46, 53, 56,
posited with the Ministry of Foreign Affairs at 59, and 60 of the said statutes shall not be
Paris. Upon the entry into force of the con- amended except subject to the following convention, the Swiss Government will initiate the ditions : The amendment must be adopted by a
necessary constitutional procedure in order that two-thirds majority of the board, approved by
the assent of the Swiss people may be obtained a majority of the general meeting and sancfor the maintenance in force during the whole tioned by a law supplementing the present
of the bank's existence of the provisions of the charter..
present convention. As soon as these measures
5. The said statutes and any amendments
have become fullv effective the Sw^iss Govern- which may be made thereto in accordance with

APRIL, 1930

paragraphs 3 or 4 hereof, respectively, shall be
valid and operative notwithstanding any inconsistency therewith in the provisions of any
present or future Swiss law.
6. The bank shall be exempt and immune
from all taxation included in the following
categories:
(a) Stamp, registration, and other duties on
all deeds or other documents relating to the
incorporation or liquidation of the bank.
(b) Stamp and registration duties on any
first issue of its shares by the bank to a central bank, financial institution, banking group,
or underwriter at or before the time of incorporation or in pursuance of articles 7 or 9 of the
statutes.
(c) All taxes on the bank's capital, re serve s,
or profits, whether distributed or not, and
whether assessed on the profits of the bank
before distribution or imposed at the time of
distribution under the form of a coupon tax
payable or deductible by the bank. This provision is without prejudice to the State's right
to tax the residents of Switzerland other than
the bank as it thinks fit.
(d) All taxes upon any agreements which the
bank may make in connection with the issue of
loans for mobilizing the German annuities and
upon the bonds of such loans issued on a foreign market.
(e) All taxes on the remunerations and salaries paid by the bank to members of its administration or its employees of non-Swiss
nationality.
7. All funds deposited with the bank by any
Government in pursuance of the plan adopted
by The Hague agreement of January, 1930,
shall be exempt and immune from taxation
whether by way of deduction by the bank on
behalf of the authority imposing the same or
otherwise.
8. The foregoing exemptions and immunities
shall apply to present and future taxation by
whatsoever name it may be described, and
whether imposed by the confederation, or by
the cantonal, communal, or other public authorities.
9. Moreover, without prejudice to the exemptions specified above, there may not be
levied on the bank, its operation or its personnel any taxation other than that of a
general character and to which other banking
establishments established at Basel or in
Switzerland, their operations and their personnel, are not subjected de facto and de jure.
10. The bank, its property and assets and
all deposits and other funds entrusted to it shall
be immune in time of peace and in time of war

233

FEDERAL RESERVE BULLETIN"

from any measure such as expropriation, requisition, seizure, confiscation, prohibition or restriction of gold or currency export or import,
and any other similar measures.
11. Any dispute between the Swiss Government and the bank as to the interpretation or
application of the present charter shall be referred to the arbitral tribunal provided for by
The Hague agreement of January, 1930.
The Swiss Government shall appoint a member to sit on the occasion of such dispute, the
president having a casting vote.
In having recourse to the said tribunal the
parties may nevertheless agree to submit their
dispute to the president or to a member of the
tribunal chosen to act as sole arbiter.
Done at The Hague, January 20, 1930.
Curtius, Henri Jaspar, Paul Hymans, E.
Francqui, Henri, Cheron, Loucheur,
Philip Snowden, A. Mosconi, A. Pirelli,
Suvich, M. Adatci, K. Hirota, G. Bachmann, W. Burckhardt, Dr. R. Miescher.
J. E. R.
ANNEX
STATUTES OF THE BANK FOR INTERNATIONAL
SETTLEMENTS
CHAPTER I.— Name, seat, and objects
ARTICLE 1

There is constituted under the name of the
Bank for International Settlements (hereinafter referred to as the bank) a company limited
by shares.
ARTICLE 2

The registered office of the bank shall be
situated at Basel, Switzerland.
ARTICLE 3

The objects of the bank are: To promote the
cooperation of central banks and to provide
additional facilities for international financial
operations; and to act as trustee or agent in
regard to international financial settlements
intrusted to it under agreements with the parties concerned.
ARTICLE 4

As long as the new plan as defined in The
Hague agreement of January, 1930 (hereinafter
referred to as the plan), is in force, the bank—
(1) Shall carry out the functions assigned to
it in the plan;
(2) Shall conduct its affairs with a view to
facilitating the execution of the plan; and

234

FEDERAL RESERVE BULLETIN

(3) Shall observe the provisions of the plan
in the administration and operations of the
bank; all within the limits of the powers granted
by these statutes.
During the said period the bank, as trustee
or agent for the Governments concerned, shall
receive, administer, and distribute the annuities paid by Germany under the plan; shall
supervise and assist in the commercialization
and mobilization of certain portions of the
aforesaid annuities; and shall perform such
services in connection with the payment of
German reparations and the international settlements connected therewith as may be agreed
upon by the bank with the Governments concerned.
CHAPTER II.—Capital
ARTICLE 5

The authorized capital of the bank shall be
500,000,000 Swiss gold francs, equivalent to
145,161,290.32 grams fine gold.
It shall be divided into 200,000 shares of
equal gold nominal value.
The nominal value of each share shall also be
expressed on the face of each share in terms
both of Swiss francs and of the currency of the
country in which it is issued, converted at the
gold mint parity.
ARTICLE 6

APRIL, 1930

or in countries whose currencies, in the opinion
of the board, satisfy the practical requirements
of the gold or gold exchange standard and that
the amount issued in any one of these countries
shall not exceed 8,000 shares.
(3) The seven banking institutions mentioned in article 6 shall, in accordance with
their several guaranties, subscribe or arrange
for the subscription in equal proportions of any
part of the authorized capital which at the end
of two years remains unsubscribed.
ARTICLE 8

(1) Twenty-five per cent only of the value of
each share shall be paid up at the time of subscription. The balance may be called up at a
later date or dates at the discretion of the
board. Three months' notice shall be given of
any such calls.
(2) If a shareholder fails to pay any call on
a share on the day appointed for payment
thereof the board may, after giving reasonable
notice to such shareholder, forfeit the share in
respect of which the call remains unpaid. A
forfeited share may be sold on such terms and
in such manner as the board may think fit, and
the board may execute a transfer in favor of
the person or corporation to whom the share is
sold. The proceeds of sale may be received by
the bank, which will pay to the defaulting shareholder any part of the net proceeds over and
above the amount of the call due and unpaid.

The subscription of the total authorized
capital having been guaranteed in equal parts
by the Banque Nationale de Belgique, the
ARTICLE 9
Bank of England, the Banque de France, the
Reichsbank, the Banca d'ltalia, Messrs. X
The capital of the bank may be increased
acting in place of the Bank of Japan, and or (1)
reduced
on the proposal of the board acting
Messrs. Y, New York, the bank may begin by a two-thirds
and adopted by a twobusiness as soon as a minimum of 112,000 shares thirds majority majority
of
the
general
meeting.
has been subscribed.
(2) In the event of an increase in the authorized capital of the bank and of a further issue of
ARTICLE 7
shares, the distribution among countries shall
(1) During the two years following incorpo- be decided by a two-thirds majority of the
ration the board of directors of the bank (here- board. The central banks of Belgium, Enginafter referred to as the board) shall arrange land, France, Germany, Italy, Japan, and the
for the subscription of any unissued portion of United States of America, or some other finanthe authorized capital.
cial institution of the last-named country
(2) This unissued portion may be offered to acceptable to the foregoing central banks, shall
the central bank or other banks of countries be entitled to subscribe or arrange for the
which have not participated in the original sub- subscription in equal proportions of at least 55
scription. The selection of countries in which per cent of such additional shares.
such shares shall be offered for subscription and
(3) No part of the amount not taken by the
the amount to be subscribed in each shall be banks of these seven countries shall be subdetermined by the board by a two-thirds ma- scribed in any other country unless it is interjority, provided that offers of shares shall only ested in reparations or at the time of issue its
be made in countries interested in reparations currency, in the opinion of the board, satisfies

235

FEDERAL RESERVE BULLETIN

APRIL, 1930

the practical requirements of the gold or gold
exchange standard.
ARTICLE 10

ARTICLE 16

Any subscribing institution or banking group
may issue or cause to be issued to the public the
shares for which it has subscribed.

In extending invitations to subscribe for
capital in accordance with article 7, paragraph
ARTICLE 17
2, or with article 9, consideration shall be given
Any subscribing institution or banking group
by the board to the desirability of associating
with the bank the largest possible number of may issue to the public certificates against
shares of the bank owned by it. The form,
central banks.
details, and terms of issue of such certificates
ARTICLE 11
shall be determined by the bank issuing them,
No shares shall be issued below par.
in agreement with the board.
ARTICLE 12

ARTICLE 18

The liability of shareholders is limited to the
The receipt or ownership of shares of the
nominal value of their shares.
bank or of certificates issued in accordance
with article 17 implies acceptance of the statutes
ARTICLE 13
of the bank and a statement to that effect shall
be embodied in the text of such shares and
The shares shall be registered and transfer- certificates.
able in the books of the bank.
ARTICLE 19
The bank shall be entitled, without assigning
any reason, to decline to accept any person or
The registration of the name of a holder of
corporation as the transferee of a share. It shares in the books of the bank establishes the
shall not transfer shares without the prior title to ownership of the shares so registered.
consent of the central bank, or the institution
acting in lieu of a central bank, by or through
CHAPTER III.—Powers of the bank
whom the shares in question were issued.
ARTICLE 20

ARTICLE 14

The shares shall carry equal lights to participate in the profits of the bank and in any distribution of assets under articles 53, 54, and 55 of
the statutes.
ARTICLE 15

The ownership of shares of the bank carries
no right of voting or representation at the
general meeting. The right of representation
and of voting, in proportion to the number of
shares subscribed in each country, may be
exercised by the central bank of that country
or by its nominee. Should the central bank of
any country not desire to exercise these rights
they may be exercised by a financial institution
of widely recognized standing and of the same
nationality, appointed by the board, and not
objected to by the central bank of the country
in question. In cases where there is no central
bank, these rights may be exercised, if the board
thinks fit, by an appropriate financial institution of the country in question appointed by the
board.

The operations of the bank shall be in conformity with the monetary policy of the central
banks of the countries concerned.
Before any financial operation is carried out
by or on behalf of the bank on a given market
or in a given currency the board shall afford
to the central bank or central banks directly
concerned an opportunity to dissent. In the
event of disapproval being expressed within
such reasonable time as the board shall specify,
the proposed operation shall not take place.
A central bank may make its concurrence subject to conditions and may limit its assent to a
specific operation, or enter into a general arrangement permitting the bank to carry on its
operations within such limits as to time, character, and amount as may be specified. This
article shall not be read as requiring the assent
of any central bank to the withdrawal from its
market of funds to the introduction of which no
objection had been raised by it, in the absence
of stipulations to the contrary by the central
bank concerned at the time the original operation was carried out.

236

FEDERAL RESERVE BULLETIN

APRIL, 1930

(j) Accept—Continued.
Any governor of a central bank or his alter(ii) Deposits in connection with trustee
nate or any other director specially authorized
agreements that may be made between
by the central bank of the country of which he is
the bank and Governments in conneca national to act on its behalf in this matter
tion with international settlements.
shall, if he is present at the meeting of the
(iii) Such other deposits as in the opinboard and does not vote against any such proion of the board come within the scope
posed operation, be deemed to have given the
of the bank's functions.
valid assent of the central bank in question.
The bank may also:
If the representative of the central bank in
(k) Act as agent or correspondent of any
question is absent or if a central bank is not
directly represented on the board, steps shall central bank.
(I) Arrange with any central bank for the
be taken to afford the central bank or banks
latter to act as its agent or correspondent. If
concerned an opportunity to express dissent.
a central bank is unable or unwilling to act in
this
capacity, the bank may make other arARTICLE 21
rangements, provided that the central bank
The operations of the bank for its own ac- concerned does not object. If in such circumcount shall only be carried out in currencies stances it should be deemed advisable that the
its own agency, the
which in the opinion of the board satisfy the bank should establish
r
practical requirements of the gold or gold sanction of a tw o-thirds majority of the board
will be required.
exchange standard.
(m) Enter into agreements to act as trustee
or agent in connection with international settleARTICLE 22
ments, provided that such agreements shall not
The board shall determine the nature of the encroach on the obligations of the bank toward
operations to be undertaken by the bank. third parties, and carry out the various operations laid down therein.
The bank may in particular:
(a) Buy and sell gold coin or bullion for its
ARTICLE 23
own account or for account of central banks.
Any of the operations which the bank is au(b) Hold gold for its own account under earthorized to carry out with central banks under
mark in central banks.
(c) Accept the custody of gold for account the preceding article may be carried out with
banks, bankers, corporations, or individuals of
of central banks.
(d) Make advances to or borrow from central any country, provided that the central bank of
banks against gold, bills of exchange, and other that country does not object.
short-term obligations of prime liquidity or
ARTICLE 24
other approved securities.
(e) Discount, rediscount, purchase, or sell
The bank may enter into special agreements
with or without its indorsement bills of ex- with central banks to facilitate the settlement
change, checks, and other short-term obliga- of international transactions between them.
tions of prime liquidity, including Treasury
For this purpose it may arrange with central
bills and other such Government short-term banks to have gold earmarked for their account
securities as are currently marketable.
and transferable on their order, to open ac(/) Buy and sell exchange for its OWTL ac- counts through which central banks can transcount or for account of central banks.
fer their assets from one currency to another,
(g) Buy and sell negotiable securities other and to take such other measures as the board
than shares for its ow^n account or for account may think advisable within the limits of the
of central banks.
powers granted by these statutes. The prin(h) Discount for central banks bills taken ciples and rules governing such accounts shall
from their portfolio and rediscount with cen- be fixed by the board.
tral banks bills taken from its own portfolio.
ARTICLE 25
(i) Open and maintain current or deposit accounts with central banks.
The bank may not—
(j) Accept—
(a) Issue notes payable at sight to bearer.
(i) Deposits from central banks on cur(b) "Accept77 bills of exchange.
rent or deposit account.
(c) Make advances to Governments.

FEDERAL RESERVE BULLETIN

APRIL, 1930

(d) Open current accounts in the name of
Governments.
(e) Acquire a predominant interest in any
business concern.
(/) Except so far as is necessary for the conduct of its own business, remain the owner of
real property for any longer period than is required in order to realize to proper advantage
such real property as may come into the possession of the bank in satisfaction of claims due
to it.
ARTICLE 26

The bank shall be administered with particular regard to maintaining its liquidity, and for
this purpose shall retain assets appropriate to
the maturity and character of its liabilities. Its
short-term liquid assets may include bank notes,
checks payable at sight drawn on first-class
banks, claims in course of collection, deposits
at sight or at short notice in first-class banks,
and prime bills of exchange of not more than
90 days' usance, of a kind usually accepted for
rediscount by central banks.
The proportion of the bank's assets held in
any given currency shall be determined by the
board with due regard to the liabilities of the
bank.
CHAPTER IV.—Management
ARTICLE 27

The administration of the bank shall be
vested in the board.
ARTICLE 28

The board shall be composed as follows:
(1) The governors for the time being of the
central banks of Belgium, France, Germany,
Great Britain, Italy, Japan, and the United
States of America (hereinafter referred to as
ex officio directors), or if any of the said governors are unwilling or unable to hold office, their
respective nominees (hereinafter referred to as
substitute nominees).
The tenure of office of a substitute nominee
shall be within the discretion of the governor
by whom he is appointed, but shall terminate
in any case when that governor vacates office.
Any ex officio director may appoint one person as his alternate who shall be entitled to
attend and exercise the powers of a director at
meetings of the board if the governor himself is
unable to be present.
(2) Seven persons representative of finance,
industry, or commerce, appointed once each
by the governors of the central banks men-

237

tioned in subclause (1), and being of the same
nationality as the governor who appoints him.
During the continuance of the liability of
Germany to pay reparation annuities, two
persons of French and German nationality,
respectively, representative of industry or
commerce, appointed by the governors of the
Bank of France and of the Keichsbank, respectively, if they so desire.
If for any reason the governor of any of the
seven institutions above mentioned is unable
or unwilling to serve as director, or to appoint
a substitute nominee under subclause (1), or
to make an appointment under subclause (2),
the governors of the other institutions referred
to or a majority of them may invite to become
members of the board two nationals of the
country of the governor in question, not objected to by the central bank of that country.
Directors appointed as aforesaid, other than
ex officio directors or their substitute nominees, shall hold office for three years but shall
be eligible for reappointment.
(3) Not more than nine persons to be elected
by the following procedure:
The governor of the central bank of every
country, other than those mentioned in subclause (1), in w^hich capital has been subscribed
at the time of incorporation, shall be entitled
to submit a list of four candidates of his own
nationality for directorship, which may include
his own name. Two of the candidates on each
list shall be representative of finance and the
other two of industry or commerce. From
these lists the board may elect, by a twothirds majority, not more than nine persons.
The directors so elected shall be divided by
lot into three groups, as nearly as may be
equal in number, of which one group shall
retire at the end of the first, one at the end of
the second, and one at the end of the third
financial year of the bank. The retiring
directors snail be eligible for reelection.
At the first meeting of directors in the second
and succeeding financial years the board may
elect by a two-thirds majority not more than
three directors from a panel of candidates
composed of lists of persons with similar qualifications to those specified in connection with
the first election. The governors of the
central banks of every country, other than
those mentioned in subclause (1), in which
capital has at the date of such meeting been
subscribed shall be entitled to submit a list
of four persons to be included in the panel.
Directors so elected shall hold office for three
years, but shall be eligible for reelection.

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APRIL, 1930

If in any of the countries referred to in the
ARTICLE 35
preceding paragraph there is no central bank,
the board by a two-thirds majority may
The members of the board may receive, in
nominate an appropriate financial institution addition to out-of-pocket expenses, a fee for
to exercise the right of submitting a list of attendance at meetings and/or a remuneration,
candidates for election.
the amounts of which will be fixed by the
board, subject to the approval of the general
meeting.
ARTICLE 29
In the event of a vacancy occuring on the
board for any reason other than the termination of a period of office in accordance with the
preceding article, the vacancy shall be filled
in accordance with the procedure by which
the member to be replaced was selected. In
the case of directors other than ex officio directors, the new director shall hold office for the
unexpired period only of his predecessor's
term of office. He shall, however, be eligible
for reelection at the expiration of that term.
ARTICLE 30

ARTICLE 36

The proceedings of the board shall be summarized in minutes which shall be signed by
the chairman.
Copies of or extracts from these minutes for
the purpose of production in a court of justice
must be certified by the general manager of the
bank.
A record of decisions taken at each meeting
shall be sent wdthin eight days of the meeting
to every member.
ARTICLE 37

Directors must be ordinarily resident in
The board shall represent the bank in its
Europe or in a position to attend regularly at
dealings with third parties and shall have the
meetings of the board.
exclusive right of entering into engagements on
behalf of the bank. It may, however, delegate
ARTICLE 31
this right to a member or members of the board
No person shall
be
appointed
or
hold
office
or
of the permanent staff of the bank, provided
as a director wTho is a member or an official that it defines the powers of each person to
of a Government or a member of a legislative whom it delegates this right.
body, unless he is the governor of a central
bank.
ARTICLE 38
ARTICLE 32

The bank shall be legally committed vis-a-vis
Meetings of the board shall be held not less third parties by the signature of the president
than 10 times a year. At least four of these or by two signatures either of members of the
shall be held at the registered office of the bank. board or of members of the staff who have been
duly authorized by the board to sign on its
ARTICLE 33
behalf.
ARTICLE 39
A member of the board who is not present in
person at a meeting of directors may give a
The board shall elect from among its memproxy to any other member authorizing him
bers a chairman and one or more vice chairmen,
to vote at that meeting on his behalf.
one of whom shall preside at meetings of the
board in the absence of the chairman.
ARTICLE 34
The chairman of the board shall be president
Unless otherwise provided by the statutes, of the bank.
decisions of the board shall be taken by a simple
He shall hold office for three years and shall
majority of those present or represented by be eligible for reelection.
proxy. In the case of an equality of votes, the
Subject to the authority of the board, the
chairman shall have a second or casting vote.
president will carry out the policy and control
The board shall not be competent to act the administration of the bank.
unless a quorum of directors is present. This
He shall not hold any other office w^hich, in
quorum shall be laid down in a regulation the judgment of the board, might interfere with
adopted by a two-thirds majority of the board. his duties as president.

239

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APRIL, 1930

ARTICLE

At the meeting* of the board at which the
election of a chairman is to take place the chair
shall be taken by the oldest member of the
board present.
ARTICLE

A general manager shall be appointed by the
board on the proposal of the president. He
will be responsible to the president for the
operations of the bank and will be the chief of
its operating staff.
The heads of departments, and any other
officers of similar rank, shall be appointed by
the board on recommendations made by the
president after consultation with the general
manager.
The remainder of the staff shall be appointed
by the general manager with the approval of
the president.
ARTICLE

The departmental organization of the bank
shall be determined by the board.
ARTICLE

The board may, if it thinks fit, appoint from
among its members an executive committee to
assist the president in the administration of the
bank.
The president shall be a member and ex
officio chairman of this committee.
ARTICLE

The chair shall be taken at general meetings
by the chairman of the board or in his absence
by a vice chairman.
At least three weeks7 notice of general meetings shall be given to those entitled to be represented.
Subject to the provisions of these statutes,
the general meeting shall decide upon its own
procedure.
ARTICLE 47

Within three months after the end of each
financial year of the bank, an annual general
meeting shall be held upon such date as the
board may decide.
The meeting shall take place at the registered
office of the bank.
Voting by proxy will be permitted in such
manner as the board may have provided in
advance by regulation.
ARTICLE 48

The annual general meeting shall be invited—
(a) To approve the annual report, the balance sheet upon the report of the auditors, and
the profit and loss account, and any proposed
changes in the remuneration, fees, or allowances of the members of the board;
(6) To make appropriations to reserve and to
special funds, and to consider the declaration of
a dividend and its amount;
(c) To elect the auditors for the ensuing year
and to fix their remuneration; and
(d) To discharge the board from all personal
responsibility in respect of the past financial
year.

ARTICLE 49
The board may appoint advisory committees
chosen wholly or partly from persons not conExtraordinary general meetings shall be
cerned in the bank's management.
summoned to decide upon any proposals of the
board:
ARTICLE 45
(a) To amend the statutes.
(b) To increase or decrease the capital of the
As long as the plan is in force, the board shall
convene the special advisory committee re- bank.
(c) To liquidate the bank.
ferred to in the plan, upon receipt of the notice
therein provided for.
CHAPTER VI.—Accounts and profits
CHAPTER V.—General meeting
ARTICLE 50
ARTICLE 46

The financial year of the bank will begin on
April 1 and end on March 31. The first finanGeneral meetings of the bank may be at- cial period will end on March 31, 1931.
tended by nominees of the central banks or
other financial institutions referred to in article
ARTICLE 51
15.
The bank shall publish an annual report, and
Voting rights shall be in proportion to the
number of shares subscribed in the country of at least once a month a statement of account
in such form as the board may prescribe.
each institution represented at the meeting.
103025—30
8

240

FEDERAL RESERVE BULLETIN

The board shall cause to be prepared a profit
and loss account and balance sheet of the bank
for each financial year in time for submission
to the annual general meeting.
ARTICLE 52

The accounts and balance sheet shall be
audited by independent auditors. The auditors
shall have full power to examine all books and
accounts of the bank and to require full information as to all its transactions. The auditors
shall report to the board and to the general
meeting and shall state in their report:
(a) Whether or not they have obtained all
the information and explanations they have
required; and
(6) Whether, in their opinion, the balance
sheet dealt with in the report is properly drawn
up so as to exhibit a true and correct view of the
state of the bank's affairs according to the best
of their information and the explanations given
to them, and as shown by the books of the bank.
ARTICLE 53

The yearly net profits of the bank shall be
applied as follows:
(a) Five per cent of such net profits, or such
proportion of 5 per cent as may be required for
the purpose, shall be paid to a reserve fund
called the legal reserve fund until that fund
reaches an amount equal in value to 10 per cent
of the amount of the paid-up capital of the bank
for the time being.
(6) Thereafter such net profits shall be
applied in or toward the payment of a dividend
of 6 per cent per annum on the amount of the
paid-up capital of the bank. This dividend
shall be cumulative.
(c) As to the residue (if any) of such net
profits 20 per cent shall be paid to the shareholders until a maximum further dividend of
6 per cent (which shall be noncumulative) is
reached, provided that the board may in any
year withhold all or any part of this additional
payment and place it to the credit of a special
dividend reserve fund for use in maintaining
the cumulative 6 per cent dividend provided
for in the preceding paragraph or for subsequent distribution to the shareholders.
(d) After making provision for the foregoing,
one-half of the yearly net profits then remaining
shall be paid into the general reserve fund of the
bank until it equals the paid-up capital. Thereafter 40 per cent shall be so applied until the
general reserve fund equals twice the paid-up
capital; 30 per cent until it equals three times

APRIL, 1930

the paid-up capital; 20 per cent until it equals
four times the paid-up capital; 10 per cent until
it equals five times the paid-up capital; and
from that point onward, 5 per cent.
In case the general reserve fund, by reason of
losses or by reason of an increase in the paid-up
capital, falls below the amounts provided for
above after having once attained them, the
appropriate proportion of the yearly net
profits shall again be applied until the position
is restored.
(e) As long as the plan is in force any remainder of the net profits after meeting the
foregoing requirements shall be disposed of as
follows:
(i) As to 75 per cent to such of the Governments or central banks of Germany and the
countries entitled to share in the annuities
payable under the plan, as have maintained
time deposits at the bank subject to withdrawal in not less than five years from the time
of deposit or after four years on not less than
one year's notice. This sum shall be distributed annually in proportion
to the size of
the deposits maintained b}T the respective Governments or central banks in question. The
board shall have the power to determine the
minimum deposit which would justify the
distribution provided for.
(ii) As to 25 per cent as follows:
If the German Government elects to make a
long-term deposit with the bank withdrawable
only on the terms specified under subclause (i)
above and amounting to the minimum sum of
400,000,000 reichsmarks, the said 25 per cent
shall go into a special fund, to be used to aid
Germany in paying the last 22 annuities provided for in the plan.
If the German Government elects to make
such long-term deposit amounting to a sum
below 400,000,000 reichsmarks the participation of the German Government shall be
reduced in proportion, and the balance shall
be added to the 75 per cent referred to in
subclause (i) above.
If the German Government elects not to
make any such long-term deposit, the said 25
per cent shall be distributed as provided in
subclause (i) above.
The special fund referred to above shall
carry compound interest, reckoned on an
annual basis, at the maximum current rate paid
by the bank on time deposits.
If the special fund should exceed the amount
required to pay the last 22 annuities, the
balance shall be distributed among the creditor
Governments as provided for in the plan.

241

FEDERAL RESERVE BULLETIN

APRIL, 1930

(/) At the expiration of the period referred president or a member of the tribunal as sole
to in the first paragraph of subclause (e) the arbitrator.
ARTICLE 57
disposal of the remainder of the net profits
referred to in subclause (e) shall be determined
In all cases not covered by the preceding
by the general meeting on the proposal of the
article, or by some other provision for arbitraboard.
tion, the bank may proceed or be proceeded
ARTICLE 54
against in any court of competent jurisdiction.
RESERVE FUNDS

The general reserve fund shall be available
for meeting any losses incurred by the bank.
In case it is not adequate for this purpose,
recourse may be had to the legal reserve fund
provided for in article 53 (a).
These reserve funds, in the event of liquidation, and after the discharge of the liabilities of
the bank and the costs of liquidation shell be
divided among the shareholders.

ARTICLE 58

For the purposes of these statutes:
(1) Central bank means the bank in any
country to which has been intrusted the duty
of regulating the volume of currency and credit
in that country; or where a banking system has
been so intrusted, the bank forming part of
such system which is situated and operating in
the principal financial market of that country.
(2) The governor of a central bank means the
person who, subject to the control of his board
CHAPTER VII.—General provisions
or other competent authority, has the direction
ARTICLE 55
of the policy and administration of the bank.
(3) A two-thirds majority of the board means
The bank may not be liquidated except by a not less than two-thirds of the votes (whether
three-fourths majority of the general meeting. given in person or by proxy) of the whole
It shall not in any case be liquidated before it directorate.
has discharged all the obligations which it has
ARTICLE 59
assumed under the plan.
Amendments of any articles of these statutes
other than those enumerated in article 60 may
ARTICLE 56
be proposed by a two-thirds majority of the
(1) If any dispute shall arise between the board to the general meeting, and if adopted by
bank, on the one side, and any central bank, a majority of the general meeting shall come
financial institution, or other bank referred to into force, provided that such amendments are
in the present statutes, on the other side, or not inconsistent with the provisions of the
between the bank and its shareholders, with re- articles enumerated in article 60.
gard to the interpretation or application of the
statutes of the bank, the same shall be referred
ARTICLE 60
for final decision to the tribunal provided for
by The Hague agreement of January, 1930.
Articles 2, 3, 4, 9, 15, 20, 25, 28, 46, 53, 56, 59,
(2) In the absence of agreement as to the and 60 can not be amended except subject to the
terms of submission either party to a dispute following conditions: The amendment must be
under this article may refer the same to the adopted by a two-thirds majority of the board,
tribunal, which shall have power to decide all approved by a majority of the general meeting
questions (including the question of its own and sanctioned by a law supplementing the
jurisdiction) even in default of appearance by charter of the bank.
J. E. R.
the other party.
(3) Before giving a final decision and without
RELATING TO THE CONCURprejudice to the questions at issue, the presi- ARRANGEMENT
RENT MEMORANDUM ACCOMPANYING THE
dent of the tribunal, or, if he is unable to act in
EXPERTS' PLAN OF JUNE 7, 1929
any case, a member of the tribunal to be designated by him forthwith, may, on the request
The duly authorized representatives of the
of the first party applying therefor, order any Governments of Belgium, France, Great Britappropriate provisional measures in order to ain and Northern Ireland, Greece, Italy, Porsafeguard the respective rights of the parties. tugal Rumania, and Jugoslavia have agreed
(4) The provisions of this article shall not with the German Government as follows:
(1) The creditor powers undertake that Gerprejudice the right of the parties to a dispute
to refer the same bv common consent to the many shall on the conditions contained in the

242

FEDERAL RESERVE BULLETIN

APRIL, 1930

annex hereto (which is a reproduction of the
Done at The Hague this 20th day of January,
concurrent memorandum
attached
to
the
report
1930.
of the experts7 committee of June 7, 1929) have
Curtius, Wirth, Schmidt, Moldenhauer,
the benefit of any relief which any one or more
Henri Jaspar, Paul Hymans, E. Francof those powers may receive in respect of its net
qui, Henri Cheron, Loucheur, Philip
outward payments on account of war debts.
Snowden, N. Politis, J. G. Politis, A.
The war debts referred to in this clause are
Mosconi, A. Pirelli, Suvich, G. G.
those dealt with by the following agreements:
Mironesco, J. Lugosiano, Al. Zeuceano,
Dr. V. Marinkovitch, Const. Fotitch.
Interallied debts which have been taken into conANNEX
sideration in calculating the annuities according to the Young plan
Concurrent memorandum but not a part of the report
(1) To the United States of America:
Great Britain—Agreement of June 18,
1923.
France—Agreement of April 29, 1926.
Italy—Agreement of November 14,1925.
Belgium—Agreement of August 18,
1925.
Yugoslavia—Agreement of May 3, 1926.
Rumania—Agreement of December 4,
1925.
Greece—Agreement of January 18, 1928.
(2) To Great Britain:
France—Agreement of July 12, 1926.
Italy—Agreement of January 27, 1926.
Rumania—Agreement of October 19,
1925.
Yugoslavia—Agreement of August 9,
1927.
Portugal—Agreement of December 31,
1926.
Greece—Agreement of April 9, 1927.
(3) To France \
Rumania—Agreement of January 17,
1930.
Yugoslavia—Agreement of January 20,
1930 (dealing with the war debt).
Greece—Agreement of January 20, 1930
(provisions relating to the prearmistice debt—tranche A).
(2) Any dispute between the contracting
parties as to the interpretation or application
of this agreement shall be submitted for final
decision to the tribunal established by the
agreement with Germany concluded at The
Hague in January, 1930.
(3) This arrangement, of which the English
and French texts are equally authentic, shall
be ratified, and shall go into force for each
Government after ratification by it, at the
same time as the agreement with Germany for
the complete and final settlement of the
question of reparations concluded on this same
day at The Hague goes into force.

Special memorandum oj the experts of the principal creditor powers and oj Germany regarding
outpayments
(Signed concurrently with the report of the committee
of experts)

1. In the annuities provided in the report the
following amounts are required to cover outpayments:
Equivalent
in millions of
reichsmarks

3
4
5
6
7
8

_ _ _

10
11
12
13

14
15

16
17
18
19

20 _ _
21
22

23
24

25
26

27
28
29
30

_ _

965 1
942. 3
995.4
1, 136. 4
1, 199. 0
1, 224. 9
1, 271. 8
1, 334. 0
1, 352. 5
1, 375. 0
1, 487. 6
1 437 9
1, 455. 1
1, 451. 5
1, 464. 7
1, 460. 9
1, 456. 5
1, 472. 3
], 467. 1
1, 461. 6
1, 503. 9
1, 487. 9
1, 491. 0
1,498. 1
1, 509. 4
1, 504. 5
1, 499. 1
1, 506. 7
1,538. 6

Equivalent
in millions o:
reichsmarks

31
32
33
34
35
36
37
38
39
40
41
49
43
44

45
46

47
48
49
50
51

52
53

54
55
56
57
58
59

1, 515 4
1, 525. 4
1, 543. 2
1, 535. 0
1, 547. 4
1, 546. 8
1, 573. 7
. 1 , 566. 9
1, 566. 1
1, 575. 9
1, 589. 2
1 602 9
1, 613. 1
1, 621. 5
1, 624. 9
I, 627. 6
1, 634. 2
1, 637. 9
_ 1, 644. 6
1, 654. 7
1, 659. 6
1, 670. 5
1, 687. 6
1, 691. 8
1, 703. 3
1, 683. 5
925. 1
931. 4
897.8

It is represented that in the event of modifications of those obligations for outpayments,
by which the creditors benefit, there should be
some corresponding mitigation of the German
annuities. The experts of the four chief
creditor countries and of Germany therefore
recommend that Germany and all the creditor
Governments having obligations for outpay-

APRIL, 1930

ments should undertake between themselves an
arrangement on the following basis:
2. Any relief which any creditor power may
effectively receive, in respect of its net outward
payments on account of war debts; after making due allowance for any material or financial
counterconsiderations, and after taking into
account any remissions on account of war debt
receipts which it may itself make, shall be dealt
with as follows:
As regards the first 37 years:
(a) Germany shall benefit to the extent of
two-thirds of the net relief available by way of
a reduction in her annuity obligations thereafter.
(b) One-third of the net relief shall be retained
by the creditor concerned, in addition to the
amounts otherwise receivable from Germany.
(c) Nevertheless, so long as any liability of
Germany persists in respect of the period after
March 31, 1966, the creditor concerned will
retain annually only one-fourth part of the
net relief, the balance being paid to the Bank
for International Settlements.
(d) These payments to the Bank for International Settlements shall accumulate to assist
Germany toward meeting her liabilities in
respect of the period after March 31, 1966; any
sums found after application of the funds provided in Annex I not to be required for this
purpose (together with the accumulations
thereon) shall be returned to the creditor by
whom they were provided.
As regards the last 22 years:
The whole of such relief shall be applied to the
reduction of Germany's liabilities.
3. We recommend that the creditor Governments should agree that, if the operation of the
relief to Germany envisaged in respect of a
possible reduction of net outpayments is such
as to change materially the proportions in which
the total annuities provided for in the present
plan are divided amongst them, they meet to
consider a revision tending toward the restoration of the present proportions; but having regard to the following conditions set out below
and any other relevant factors then existing:
(a) The service of any bonds mobilized by
the creditor country, and the balance of its net
outward payments in respect of war debts remaining to be covered must continue to be met
out of the share falling to it in the annuities
thereafter to be paid by Germany.
(6) Due allowance shall be made for any material or financial counterconsiderations accepted by the creditor country in connection
with the relief accorded to it in respect of war
debts payments.

243

FEDERAL RESERVE BULLETIN

4. It was originally suggested that the
amounts of the postponable annuities should be
regulated by reference to the net amounts which
the various creditors were themselves able to
postpone in respect of interallied war debts, the
general conditions therein governing postponements to be applied. For various reasons, this
method of calculation could not be adopted,
but endeavor was made to adapt the moratorium provisions in such a way that the rights
granted to Germany should not be greater
than those of the creditor powers. The unconditional part of the annuity has therefore
been fixed, while guarantees have been provided
for the remainder.
Francqui, Gutt, E. Moreau, J. Parmentier,
Dr. Hjalmar Schacht, Kastl, J. C. Stamp,
C. S. Addis, A. Pirelli, Suvich.
PARIS, June 7, 1929.
ARRANGEMENT

BETWEEN
POWERS

THE

CREDITOR

GERMANY
The duly authorized representatives of the
Government of His Majesty the King of the
Belgians, the Government of the United Kingdom of Great Britain and Northern Ireland,
the Government of Canada, the Government of
the Commonwealth of Australia, the Government of New Zealand, the Government of the
Union of South Africa, the Government of
India, the Government of the French Republic,
the Government of the Greek Republic, the
Government of His Majesty the King of Italy,
the Government of His Majesty the Emperor
of Japan, the Government of the Republic of
Poland, the Government of the Republic of
Portugal, the Government of His Majesty the
King of Rumania, the Government of the
Czechoslovak Republic and the Government of
His Majesty the King of Yugoslavia, have concluded the following arrangement:
1. The signatory powers accept the division
of the German payments resulting from the
new plan as a final settlement of all questions
relating to the distribution of payments, transfers, cessions, and deliveries already made by
Germany in execution of the treaty of Versailles,
the armistice conventions, and any supplementary agreements, subject only to the provisions set out in articles 3 and 4 of this
arrangement.
This division among the signatory powers
shall not be affected by any existing arrangements between them nor by the result of
accounts relating to past transactions.

244

FEDERAL RESERVE BULLETIN

2. In consequence, all accounts between the
signatory powers or between any one of them
and the Reparation Commission, relating to
questions dealt with in article 1, and regarding
the period
prior to the application of the
experts7 plan of June 7,1929 (including accounts
relating to the shares of the German pre-war
public debt), have henceforth no purpose or
effect and will be closed in their existing state,
subject only to the provisions set out in articles
3 and 4 of this arrangement.
3. Nevertheless—
(a) The shares of the Bagdad Railway Co.
at present held by the Reparation Commission
will be allotted in three equal portions to
France, Great Britain, and Italy, without giving rise to any adjustment of accounts between
the creditor powers.
(6) The method of distribution of the cables
ceded by Germany under the treaty of Versailles will be settled by the creditor powers
concerned.
(c) The expenses of the experts' committee
of 1929 to be met by the creditor powers will be
finally divided among them in accordance with
the percentages provided by the Spa agreement
and the complementary agreements.
(d) Any savings realized on the sums paid to
the sections of the Inter-Allied Rhineland High
Commission out of the fifth Dawes annuity
shall be used toward meeting the expenses of
the said sections after August 31, 1929, including costs of liquidation. The balance of these
expenses up to the following maxima: Belgium
250,000 reichsmarks, France 750,000 reichsmarks, Great Britain 364,000 reichsmarks, shall
be defrayed from the fund provided for by
Annex IV to the protocol of August 31, 1929.
(e) If the expenses of the Reparation Commission and of the organizations provided for
by the Dawes plan after August 31, 1929, are
not completely covered by the sums of 6,000,000
reichsmarks provided for by Annex III to The
Hague protocol of August 31, 1929, any excess
shall be met out of savings realized by the Reparation Commission and by the said organizations, respectively, on the sums allocated for
such expenses out of the fifth Dawes annuity.
(/) All questions relating to claims or assets
of the Reparation Commission, the distribution
of •which is not provided for by the above
paragraphs, will be settled by the Governments
of Belgium, France, Great Britain, Italy, and
Japan. Any receipts in respect of these claims
or assets will be distributed in accordance with
the rules of distribution laid down by the
agreement of January 14, 1925.

APRIL, 1930

4. For the application of paragraph 192 of
the annexes to the experts7 report, a sum of
118,100,000 reichsmarks will be handed over
to Great Britain, Italy, and Greece out of the
receipts in respect of the last five months of the
Dawes plan.
This payment will be divided as follows:
Reichsmarks

Great Britain
Italy
Greece

102, 000, 000
14, 800, 000
1, 300, 000

It wTill be charged on the excesses of the various powers in the following amounts:
Reichsmarks

France
Belgium
Japan
Yugoslavia
Portugal
Rumania
Poland

89, 380, 446
12, 014, 283
2, 527, 350
13, 021, 695
134, 661
912, 920
108, 645

5. The payments made to the Reparation
Commission by the Government of Denmark,
by the Free City of Danzig, and by the Danzig
Harbour and Waterways Board, are regarded
as constituting a final settlement of their
respective obligations toward the Reparation
Commission in respect of state property ceded
by Germany and of their shares in the German
pre-war public debt.
6. The excess of the fund dealt with in paragraph 113 of the annexes to the experts' report
of June 7, 1929 (penultimate sentence), will be
divided among the creditor Governments in
accordance with the arrangements to be concluded between them when the time comes.
7. In order to give effect to Article VI of
Annex I of the protocol of August 31, 1929, the
French and Italian Governments agree to pay
to Great Britain during each of the 36 financial
years commencing April, 1930, the annuities
provided for in their respective war debt
funding agreements by equal monthly installments on the 15th of each month, instead of in
half-yearly installments on September 15 and
March 15 of each year.
The dates of the release of the Italian gold
deposit provided for in article 7 of the AngloItalian war debt funding agreement will be
similarly modified.
8. The annuities provided by articles 3 and 4
of Annex I of The Hague protocol of August 31,
1929, shall be paid in two equal installments
on July 1 and January 1 in each year, from
July 1, 1930, to January 1, 1966. For the
current year, in the absence of any different
arrangement, the whole amount shall be paid

245

FEDERAL RESERVE BULLETIN

APRIL, 1930

on March 15, 1930, with interest at 5% per cent
from October 1, 1929.
9. The service of the annuity of 19,800,000
reichsmarks, payment of which to Great Britain
was guaranteed by France and Belgium under
Article III of Annex I of The Hague protocol of
August 31, 1929, will be met as to 16,650,000
reichsmarks by France and as to 3,150,000
reichsmarks by Belgium.
10. This arrangement, of which the English
and French texts are equally authentic, shall be
ratified, and shall go into force for each Government after ratification by it, at the same time
as the agreement with Germany for the complete and final settlement of the question of
reparations concluded on this same day at The
Hague goes into force.
Done at The Hague this 20th day of January, 1930.
Henri Jaspar, Paul Hymans, E. Francqui,
Philip Snowden, Peter Larkin, Granville
Ryrie, E. Toms, Philip Snowden, Philip
Snowden, Henri Cheron, Loucheur,
N. Politis, J. G. Politis, A. Mosconi,
A. Pirelli, Suvich, Adatci, K. Hirota,
J. Mrozowski, R. Ulrich, Tomaz Fernandes, G. G. Alironesco, N. Titulesco,
J. Lugosiano, Al. Zeuceano, Dr. Eduard
Benes, Stefan Osusky, Dr. V. Marinkovitch, Const. Fotitch.
AGREEMENT
Arrangement between the creditor powers (Austria, Hungary, Bulgaria—Liberation debt)

ARTICLE I

A complete and final discharge of their
liabilities is granted to the powers signatory
of the present agreement which are debtors
in respect of the properties ceded in virtue
of the treaties of St. Germain, Trianon, and
Neuilly and of the liberation debts arising out
of the agreements of September 10 and December 8, 1919.
Provided always that no one of the said
powers shall derive any benefit under this
article unless and until it shall have ratified
the agreements with Germany, Austria, Bulgaria, and Czechoslovakia concluded at The
Hague in January, 1930.
ARTICLE II

The annuity of 10,000,000 gold marks payable under the agreement of even date by
Czechoslovakia to the other creditor Governments shall be distributed among the creditor
powers other than Rumania, Czechoslovakia,
and Yugoslavia in accordance with the following
table:
Gold marks

France
Great Britain
Italy
Belgium
Japan
Portugal
Greece

3, 187, 854
1, 384, 519
3, 146, 632
418, 816
51, 920
51, 920
1, 758, 339
ARTICLE

III

Subject to the provisions of Articles IV and
V the payments made by Bulgaria and Hungary on account of reparation up to 1943
shall be distributed as follows:
Greece 76.73 per cent on the Bulgarian
payments and on the Hungarian payments.
Rumania 13 per cent on the Bulgarian payments and on the Hungarian payments.
Czechoslovakia 1 per cent, on the Bulgarian
and Hungarian payments.
Yugoslavia 5 per cent on the Bulgarian payments and 2 per cent on the Hungarian payments.
The balance both of the Bulgarian and of
the Hungarian payments being distributed
between the other creditor powers proportionately to the percentages of article 2 of the
Spa agreement of July 16, 1920, and subsequent
agreements.

The duly authorized representatives of the
Government of His Majesty the King of the
Belgians, the Government of the United Kingdom of Great Britain and Northern Ireland,
the Government of Canada, the Government
of the Commonwealth of Australia, the Government of New Zealand, the Government of the
Union of South Africa, the Government of
India, the Government of the French Republic,
the Government of the Greek Republic, the
Government of His Majesty the King of Italy,
the Government of His Majesty the Emperor
of Japan, the Government of the Republic of
Poland, the Government of the Republic of
Portugal, the Government of His Majesty the
King of Rumania, the Government of the
Czechoslovak Republic and the Government
of His Majesty the King of Yugoslavia, have
ARTICLE IV
concluded the following arrangement as to the
State properties ceded by Austria, Hungary,
Greece shall receive
and Bulgaria, the liberation debts and the
(a) The liquid assets realized by the Reparadistribution of non-German reparations.
tion Commission in pursuance of the treaty of

246

FEDERAL RESERVE BULLETIN

APRIL, 1930

Neuiliy and not distributed at the present ARRANGEMENT AS TO THE FINANCIAL MOBILIZATION OF THE GERMAN ANNUITIES
time.
(6) The payment of 5,000,000 gold francs
The duly authorized representatives of the
to be made by Bulgaria on April 1, 1930.
signatory Governments taking into consideration, on the one hand, article 165 of the experts'
ARTICLE V
report, which states that from the point of
Yugoslavia shall dispose of the whole of the view of the creditor powers, an essential aspect
sums to be paid by Hungary up to and includ- of the new plan is in the fact that the annuity
ing June 30, 1930, under the schedule of pay- is paid in a manner lending itself to mobilizaments at present in force less a sum to be re- tion in accordance with the provisions laid
tained by the Reparation Commission for its down in this respect; and, on the other hand,
article 161 of the same report which recognizes
administrative expenses.
the necessity to reestablish the financial
autonomy of Germany;
ARTICLE VI
Have agreed, in a spirit of collaboration,
The distribution fixed by the preceding ar- upon the following:
ticles is final and inclusive.
ARTICLE

VII

The present agreement constitutes a final
settlement as between the signatory Governments of all their claims in respect of the state
properties ceded in virtue of the treaties of St.
Germain, Trianon, and Neuiliy, of the liberation debts and of all payments and deliveries
made to the said Governments in virtue of the
treaties of St. Germain, Trianon, and Neuiliy
and the arrangements supplementary thereto.
The present agreement, of which the French
and English texts are both authentic, shall be
ratified.
Deposit of ratifications shall be made at
Paris as soon as possible.
The powers of which the seat of government
is outside Europe will be entitled to inform the
French Government through their diplomatic
representative at Paris that their ratification
has been given; in that case they must transmit
the instrument of ratification as soon as possible.
The French Government will transmit to all
the signatory Governments a certified copy
of the proces-verbaux of the deposit of ratifications.
Done at The Hague in a single copy January
20, 1930.
Henri Jaspar, Paul Hymans, E. Francqui,
Philip Snowden, Peter Larkin, Granville Ryrie, E. Toms, Philip Snowden,
Philip Snowden, Henri Cheron, Loucheur, N. Politis, J. G. Politis, A.
Mosconi, A. Pirelli, Suvich, Adatci,
K. Hirota, J. Mrozowski, R. Ulrich,
Tomaz Fernandes, G. G. Mironesco,
N. Titulesco, J. Lugosiano, Al. Zeuceano,
Dr. Eduard BeneS, Stefan Osusky, Dr.
V. Marinkovitch, Constantin Fotitch.

1. Certain creditor Governments state their
intention to proceed, as soon as possible, with
the issue on the international markets of
one or more tranches of reparation bonds of a
total amount of $300,000,000. They propose
to make this issue before October 1, 1930.
2. The German Government declares that it
will not issue any external long-term loan
before October 1, 1930, or, if the issue referred
to in the preceding paragraph has not taken
place before this date, before the expiry of one
year from the date of the delivery to the Bank
for International Settlements of the debt
certificate' of the Reich, on the understanding
that this undertaking shall not extend beyond
March 31, 1931. This declaration concerns
also the Reichspost and the German Railway
Co.
3. Moreover, the above-mentioned declaration of the German Government lapses in the
following cases:
(a) Immediately upon the effective accomplishment of mobilization operations for the
amount mentioned above;
(6) Two months after the Bank for International Settlements has notified, in accordance
with the provisions of article 143 of the annexes
to the plan, that it appears to be practicable
to proceed with the issue of the amount suggested above or of an issue completing the
amount if owing to the creditor powers this
issue has not taken place.
4. The sum of $300,000,000 mentioned
above refers to the effective proceeds, and not
the nominal value, of the bonds issued.
5. The Reich notifies that by virtue of an
act dated October 26, 1929, it had contracted
with the Svenska Tandsticke Aktiebolaget of
Stockholm and with the N. V. Financieele Mij.

APRIL, 1930

247

FEDERAL RESERVE BULLETIN

Kreuecr and Toll of Amsterdam for a loan of this collaboration by seeking practical solutions
to achieve this result.
$125,000,000.
It is understood that the above declarations
The German and French texts of the present
irrangement arc equally valid.
do not apply to this loan.
The German Government undertakes, howFor the German Government:
ever, that the obligations of the Reich which
MOLBENHAUER.
are to be created by virtue of this act shall
not be offered for public subscription until
For the British Government:
after June 30, 1933. .
PHILIP SNOWDEN.
The German Government undertakes, in
agreement with the Svenska Tandsticke
For the French Government:
Aktiebolaget of Stockholm and with the
HENRI CHERON.
N. V. Financieele Mij. Kreuger and Toll of
LOUCHEUR:
Amsterdam (whose adhesion is dealt with in a
For the Italian Government:
letter which shall be annexed to the present
document), that the service of this loan shall
SUVICH.
never give rise to any discrimination to the
For the Japanese Government:
prejudice of the service of the unconditional
M. ADATCI.
annuities.
K. HIROTA.
II
6. The German Government reserves to itself the right to participate in the mobilization
issue of an amount of $300,000,000 specified
in paragraph 1 above. This participation will
take place on the original terms.
7. These operations will be carried out
through the Bank for International Settlements. The proceeds and the service of the
loan shall be divided between the reparation
creditors who have a share in the unconditional
part of the annuities and the German Government in the proportion of two-thirds for the
former and one-third for the latter.
8. The charges for such loans shall be covered
in the above proportions by a deduction from
reparation payments and by a payment by the
Reich to the Bank for International Settlements. In the case of each of these loans, the
sums .provided by this deduction and this payment shall be merged by the Bank for International Settlements in an account exclusively
and solely reserved for the service of this loan.
9. The contracts for loans of the type mentioned above shall contain a clause for anticipated redemption after a period not longer
than 10 years.
10. If the German Government declares its
wish to make use of the option referred to
above, and if it proves impossible to secure the
suggested collaboration in the form described
above, the Governments concerned declare that
they are nevertheless firmly resolved to attain

For the Portuguese Government:
R. ULRICH.
TOMAZ FERNANDES.

For the Yugoslav Government:
DR. V. MARINKOVITCH.
C. FOTITCH.

EXCHANGE OF NOTES CONCERNING THE
GERMAN-AMERICAN AGREEMENT
(Addressed to His Excellency M. Henri Jaspar, President of The Hague Conference)
THE HAGUE, January 20, 1930.
M R . PRESIDENT: In the name of my Govern-

ment I have the honor to make the following
communication:
The German Government will not exercise in relation
to any one of the creditor powers the rights of postponement which it possesses under the agreements
already signed or initialed without exercising at the
same time any similar rights which it may possess in
relation to all the other powers whose claims are included in the annuities, as set out in the experts' report
of June 7, 1929. Moreover in the future the German
Government will not, in connection with postponement, give any special advantage to any one of those
powers.
Nothing contained herein above shall be construed
as impairing in any way Germany's rights and obligations under the agreements already signed or initialed.

I beg you to accept, Mr. President, the expression of my highest consideration.
CURTIUS.
(Signed)

248

FEDERAL RESERVE BULLETIN

(Addressed to M. Curtius, the Minister of Foreign
Affairs of the German Reich)
T H E HAGUE, January 20, 1930.
YOUR EXCELLENCY: I have the honor to

acknowledge receipt of your letter dated to-day
by which, in the name of your Government,
you made to me the following communication:
The German Government will not exercise in relation
to any one of the creditor powers the rights of postponement which it possesses under the agreements
already signed or initialed without exercising at the
same time any similar rights which it may possess in
relation to all the other powers whose claims are included, in the annuities, as set out in the experts' report
of June 7, 1929. Moreover in the future the German
Government will not, in connection with postponement, give any special advantage to any one of those
powers.
Nothing contained herein above shall be construed as
impairing in any way Germany's rights and obligations
under the agreements already signed or initialed.

I beg you to accept, Your Excellency, the
impression of my highest consideration.
(Signed)
HENRI JASPAR.
LETTERS EXCHANGED CONCERNING THE TARIFFS OF THE GERMAN RAILWAY COMPANY
THE HAGUE, January 20, 1930.
M R . PRESIDENT: I have the honor to inform

you that the German delegation accepts the
formula drawn up by the railway experts
specifying that the German Railway Co. will
be under the obligation, while observing in its
management the provisions of the railway law
and statutes, of regulating its expenditure and
of fixing its tariffs in such a wTay that the payments in respect of the reparation tax, of
interest and of redemption of the loans of the
company, of the preference share dividend, as
well as of the redemption of the shares, will be
secured.
The German Government is of the opinion
that this obligation already results from the
provisions of the draft of the law, as the experts
have observed. The German Government is,
however, ready to confirm this interpretation
by inserting an explanation to that effect in the
explanation of the objects of the draft law.
I beg you to accept, Mr. President, the assurance of my highest consideration.
(Signed)
CURTIUS.

APRIL, 1930

To the PRESIDENT OF THE CONFERENCE.

January 20, 1930.
have the honor to
acknowledge receipt of your letter of January
20, 1930, by which you w^ere so good as to
inform me that the German delegation accepts
the formula drawn up by the railway experts
specifying that the German Kailway Co. will
be under the obligation, while observing in its
management the provisions of the railway
law and statutes, of regulating its expenditure
and of fixing its tariffs in such a way that the
payments in respect of the reparation tax, of
interest and of redemption of the loans of the
company, of the preference share dividend, as
well as of the redemption of these shares, will
be secured.
I note also that the German Government is
of the opinion that this obligation already
results from the provisions of the draft of the
law, as the experts have observed. The
German Government is, however, ready to
confirm this interpretation by inserting an
explanation to that effect in the explanation
of the objects of the draft law.
I beg you to accept, Your Excellency, the
assurance of my highest consideration.
(Signed)
HENRI JASPAR,
THE HAGUE,
YOUR EXCELLENCY: I

President of the Conference.

To His Excellency M. CURTIUS,
German Minister for Foreign A fairs.
TRANSITORY PROVISIONS
The president of the conference reports that
the Governments represented at the conference
of The Hague have agreed upon the following
provisions:
By wxay of supplement to Annex III to the
protocol of The Hague dated August 31, 1929,
the agent general for reparation payments shall
be instructed to make available to the treasury
of the Reich by way of loan, during the period
from the signature of the agreement of The
Hague on German reparations of January,
1930, to the ratification of the said agreement
by the German Government, the difference
between the payments under the Dawes plan
and the amounts provided in the new plan.

FEDERAL RESERVE BULLETIN

APRIL, 1930

From the date of the ratification by Germany
of the agreement concluded at The Hague in
January, 1930, on the subject of German
reparations to the putting into execution of the
new plan as provided in the fifth paragraph of
the final clause of the said agreement, the
German Government shall be entitled to pay to
the agent general for reparation payments only
the annuities due under the new plan.
If it should be impossible to put the new plan
into execution, the present agreement shall
become null and void and the amounts withheld through its application shall be paid to the
creditor Governments within four months.
HENRI JASPAR.
M. P. A. HANKEY.
JANUARY 20,

1930.

LETTERS ADDRESSED TO THE PRESIDENT OF
THE CONFERENCE BY THE BELGIAN AND
GERMAN PLENIPOTENTIARIES CONCERNING THE AGREEMENT BETWEEN THEIR RESPECTIVE GOVERNMENTS RESPECTING THE
GERMAN MARKS IN BELGIUM
THE HAGUE, January 16, 1930.
Mr. PRESIDENT: In Annex VI of the experts' report of June 7, 1929, the experts
expressed the opinion that the new plan could
not enter into force before the German and
Belgian Governments had concluded an agreement, binding in international law, regarding
the so-called marks question.
With regard to this question, I have the
honor to inform Your Excellency that, in the

249

name of the German and Belgian Governments,
an agreement was signed at Brussels on July
13, 1929, to settle this question, and that after
ratification this agreement will enter into Aforce
at the same time as the new plan. This
declaration is made in agreement with the
Belgian Government.
I beg you to accept, Mr. President, the expression of my highest consideration.
(Signed)
CURTIUS.
THE HAGUE, January 16, 1930.
Mr.
PRESIDENT: In Annex VI of the experts7 report of June 7, 1929, the experts
expressed the opinion that the new plan could
not enter into force before the Belgian and
German Governments had concluded an agreement binding in international law regarding the
so-called marks question.
With regard to this question, I have the
honor to inform Your Excellency that, in the
name of the Belgian and German Governments,
an agreement was signed at Brussels on July
13, 1929, to settle this question, and that after
ratification this agreement will enter into force
at the same time as the new plan. This
declaration is made in agreement with the
German Government.
I beg you to accept, Mr. President, the assurance of my highest consideration.
(Signed)
HYMANS.
M. JASPAR, Prime Minister,
President of The Hague Conference.

250

FEDERAL RESERVE BULLETIN

APRIL, 1930

FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars. Figures for end of month or latest available preceding date; see BULLETIN for June, 1929, p. 396]

Month

Total
Ar(44
United gencoun- j! States 2 tina
3
tries) *'

28
;
! Swit- other
Ger- InBra- ! CanEngJa- Nether- Ruszer- counzil* . ada5 land France many dia 6 Italy pan7 lands
sia ! Spain i1 land
tries r

lit

10, 042
605 109 126
1929—January
3, 746
603 109 I 126
February
10,065
3, 776
585 110 126
March..
10,092
3,814
569 110 ! 134
April
10,049
564 106 | 134
May—.
i 10,121
3,931
527 108 139
June..
10,134
3,956
513 111 i 141
3,974
July
| 10,151
507 113 I 141
3,995
August
! 10,233
497 | 114 i 142
4,008
September...! 10,262
7ft ! 109 143
4,023
476
October
! 10,293
151
452
4,003
November... 10,298
163
3,900
434
December... "10,291
164
442
1930—January
!*>10, 351 3,921
164
3,988
'448
February.... i PIO, 427
124
'4,059
March

744 1,333
650
736 1.334
650
639
78 748 1, 340
451
78 762 1,403
795 1,435
420
1,430
455
76 ' 780
1,462
512
76 : 694
670 1,526
520
77 648 1,545
527
77 643 1, 570
531
659 1, 600
534
711 1,633
544
78 732 1,683
547
740 1,680
78
582
759 * 1, 668 '595

149
150 i
150 !'
150
151 l,
151
151 :
151 !
161 ,
151 !
151 I
150 !
139 I
127 '

128
128
128
128
128
128
128
128
128
128
128
128
128
128

541

: 266
i 266
270
270
1 270
i 271
j 271
1
271
! 272
i 272
1 273
! 273
273
, 273

92
92
92
92
93
93
103
119
132
142
142
147
147
150
156

175
175
170
174
176
176
181
178
178
178
180
180
177
176

541
542
542
542
542
541
541
541
541
542
542
520

477

494
494
494
494
494
494
495
495
495
495
495
495
495
476

i
,
;
'
|
'
|
'
i
j
1

i 93
;
!

i
1
|
:
;

i
!
;

93
93
95
96
96
98
98
103
103
105
115
108
108

712
713
713
708
709
707
700
704
704
709
708
'708
'710
'709

j
i
1
3
Revised 2 months ago to include figures for Albania, Ecuador, GuateGovernment conversion fund and Bank of the Nation.
mala, and Mexico; see BULLETIN for February (p. 73).
* Bank of Brazil and stabilization fund.
6
' Preliminary, based on latest available figures.
Includes gold held by Government against Dominion notes and
1 All countries for which satisfactory figures are available; see p. 256 of savings bank deposits, and such gold as is held by chartered banks in
this BULLETIN, where separate figures are given by years back to .1913. the6 central reserve.
The 16 countries here shown separately include all thoss which have
Currency and gold standard reserves.
held
gold in recent years to the amount of $90,000,000 or more.
' Domestic holdings of Bank of-Japan and the Japanese Government
2
Treasury and Federal reserve banks.
r

GOLD MOVEMENTS
[In thousands of dollars]

Month
I m - | Exports i ports

1929—January
February
March
April
May..
June
July
August
September
October
November
December
1930—January
February

Great Britain

Germany

United States
Imports

Met

47,199
48, 577!
1, 378
25,488
26,913
1,425
24,835
26,4701
1,635
23,093
24, 687 i 1, 594
23, 630
24,098:
467
30, 212
30,762!
550
34, 718
35,525
807
18,390
19, 2711
• 881
17, 576
18,781;
1,205
17, 516
21,321
3,805
7, 123 30, 289 -23,166
8,121 = 72,547 - 6 4 , 426
3, 960
12,908:'
8,948
59, 991
60,198
207

Exports

672
1,250
577
574
1,338
764
897
804
1,701
1,768 223,247 -221,480
1,165
781
1, 946
6,812
681
7,493
48,012
716
48, 728
26, 849
879
27, 728
9,088
851
9, 939
3,622
1,002
4,621
4,174
919
5,093
10, 290
806
11,096
4,423
629
5,052
37, 565
687
38, 252

February

JanuaryFebruary

Exports

Imports

Exports

Imports

Exports

208
France
2
Germany
Netherlands.
. __
Spain and Canaries. 19, 466
Switzerland
United States
240
South America
British India
321
Australia
New Zealand
Eevpt
450
Rhodesia
Transvaal.
_ 17, 825
West Africa
70
All other countries..

297
32,919
39
3
217

559

10, 974
36, 400
226
8
623

2,066
3,203
14, 382
4

162, 527
92,991
2,006
359
10, 781
61, 293

11,844 27, 891 -16,047'
12, 347 21, 383 - 9 , 0 3 6
7,746 17,987
25, 734
3,714 12,430,
10,144
4,652 23, 632
28, 284
21,085 40,001 -18,917
22, 578 100,479 -77,901
17, 226 59, 278 -42,052
18, 301 41, 283 -22.982
1,796
28, 591 26, 79-1
8,405
36, 249 27, 844
65, 343 16,430 48,903
41, 702 16,102 25,600
4,886
38,961 34, 074

504
181
133
165
4, 338
190
129
103
116
177
107
297
248
80

19,466
12, 627

315
10,152

49
1,201
2

23, 090
39,129

10, 320
24, 603
2,433

Exports

India

Net

14
490
175
6
14, 320 -14,187
163
2
4,315
23
173
17
121
8
2,522 - 2 , 4 1 9
'99
17
166
1?
92
lo
280
17
2
,
9
7
5
3,224
—946
1,026

4,730
7, 700
13,063
6,580
6,076
3, 596
4,164
2,771
3, 390
3,146
4,408
4,603
5,296

-16,607
-17,848
- 2 1 , 542
-15,871
-17,975
- 2 2 , 625
-14,816
-20,981
-15,375
-15,812
- 2 0 , 922
-18,220
-17,808
- 2 0 , 786

1929

Calendar year

Imports

38, 961

Imports

Net

1929

1930

Total

Exports

South
Africa

MOVEMENTS TO AND FROM BRITISH INDIA
[In thousands of dollars]

MOVEMENTS TO AND FROM GREAT BRITAIN
[In thousands of dollars]

From or to—

Imports

Net

Netherlands

3,786

284

811
36,197
748
95

4,641
184,954
5
4,216
687
1,003

8
33, 434

34, 074

80, 662

50,176 303, 725

377, 505

From or to—

December
Im- ! Exports : ports

England
United States
Aden and dependencies
Arabia
British Oceania
Bahrein Islands
Ceylon
China
Mesopotamia
Straits Settlements..
Egypt
Natal
All other countries .
Total

682 :
i

1928

JanuaryDecember
ImExports ports
10 461
22

4,605 !

64, 275

Im- ! Exports i ports
11 071
4,086

93 1
23 !
2,296 |

1,045
1,287
7,701
3 !\.:."..
119
4,151
135
8 ;•
188
410 j
_ 2,613
19
1
2
215 !
6, 867
738 !
29, 595
206

Calendar year

1
28

910 !
870
5,067
285
720
153
1,543 !
200
6,714
44,387

48
44

20
48

76,007

251

FEDERAL RESERVE BULLETIN

AcKIL, 1930

CONDITION OF CENTRAL BANKS
[Figures are for the last report date of month]
1930

1930

1929

Febru-!: Janu- .Decom-. February
ary
ber
ary

I Fcbru- Janu- DP com-! Februber , ary
| ary
ary
Bank of England (millions of pounds
sterling):
Issue department1 5 1 . 3 •• 150.1
Gold coin and bullion
Notes issued
411.3 410.1
Banking department—
.7
.3
Gold and silver coin
j
Bank notes
j 64.5
62.1
Government securities
' 34.4 i 54.3
Other securities
I 1 2 . 9 '• 14. 0
D iscounts and advances
|
4.7 | 5.5
Public deposits.
12.0 . 14.6
50.7 i 07.5
Bankers' deposits.
Other deposits..
36.2 | 36.0
Reserve ratio i (per cent)
65.9 , 52. 9
!
346.8 | 348.0
Bank notes in circulation 2

145.8
405.8
.2
26. 3
67.1
17.7
22.3
8.8
71.0
35.8
22. 9
379. 6

National Bank of Belgium (millions
of belgas):
Gold
Foreign bills and balances in goldDomestic and foreign bills
Loans to State
Note circulation
Deposits
_

Bank of Brazil (millions of milreis):
Gold...
Currency
_
Correspondents abroad
Loans and discounts
Securities
Note circulation
Deposits
,
Bank of Franco (millions of francs):!
National Bank of Bulgaria (millions
855 42, 921 41,668 i
Gold
I
of leva):
956 6, 984 7,249
Sight balances abroad
i
Gold
738 18. 732 18, 693
Foreign bills
!
Net foreign exchange
987 8,517 11,146
Loans and discounts
j
Total foreign exchange
453 5,453 5,612
Negotiable bonds
\
Loans and discounts
116 70, 339 68. 571
Note circulation
\
Government obligations
767 10,172 li; 737
Public deposits
i
Note circulation
136 7.512 7,850
Other deposits
'
Other sight liabilities
Central Bank of Chile (millions of
German Rcichsbank (millions of j
pesos):
reichsmarks):
|
Gold at home...
2,294 , 2,147 2,133
Gold reserve
Deposits abroad
150 ; 150 ! 150
Gold abroad
Loans
and discounts
384
397 I 404
Reserves in foreign exchange
Note circulation
2,288! 2,222 I 3. 099
Loans and discounts
Deposits
469
357 i 755
Deposits
_
Bank of the Republic of Colombia
4,722 li 4,653 I 5,044
Reichsmarks in circulation
(thousands
of pesos):
384
410
3S2
Rentenmarks in circulation
Gold at home—
_.
Gold
abroad
Bank of Italy (millions of lire):
i
Loans
and
discounts
_.
_.
5,189
I
5,190
Gold at home
' 5,190
Note circulation
Credits a n d balances abroad
j 4, 855 4,911 /U51
Deposits
Loans and discounts
| 4,614
4,713 ! 6,121
Total note circulation
! 10, 095 16, 329 I 16, 774
Czechoslovak National Bank (milPublic deposits
I
30()
lions of Czechoslovak crowns):
300 i 300
Other d e p o s i t s ™
1» 603
1, 560 ! 1, 685
Gold
Foreign balances and currency ___
Loans and advances
Bank of Japan (millions of yen):
Assets of banking office in liqui1,065
1,066
Gold
dation
793
732
Advances and discounts
I 3 755
!
Note circulation.187
179
Government bonds
144
3
Deposits
1,633
1,
231
Notes issued
i 1,277 1,347
638
Total deposits
| 3 733
822
Danish National Bank (millions of
kroner):
Commonwealth Bank of Australia
Gold
(thousands of pounds sterling):
Foreign bills, etc
Issue departmentLoans and discounts
Gold coin and bullion
25, 379 18,148 18, 264 22,481 jl
Note circulation
Securities
i 9, 769 17,263 j 20,967 22,741 jj
Deposits
;
Banking department—
Coin, bullion, and cash
_ 1,345 1,411 1, 223
1,436 11 Bank of Danzig (thousands of Danzig gulden):
Money at short call in Lon- j;
Balances with Bank of England _
4, 669 8,423
don
4, 351
Foreign bills, etc.
Loans and discounts
lo, 483 16,497 ; 19,160
Loans and discounts
Securities
l/,208 12,319 | 10, 503
Note
circulation
Deposits
! o/38, 348 33,239 ! 36, 626
Deposits
Bank notes in circulation
> 64b 38,466 | 42,423
Bank of Estonia (thousands of
Austrian National Bank (millions of j
krones) :
schillings):
j
Gold
169
169
Gold
169 ; 169
Net foreign exchange
Foreign exchange of the reserve _.;
Loans and discounts
204
204
238
209
Other foreign exchange
Note circulation
315
312
334
361
Domestic bills
Deposits234
238
306
164
Government
Government debt
io9;
109
109
116
Bankers
Note circulation
974 ' 981 1, 094
977
Other
Deposits
59
53
64
45
1
2
3

Ratio of gold and notes in banking department to deposit liabilities.
Notes issued, less amounts held in Danking department and in currency note account.
Figures arc for Mar. 1, 1930.

1929

1,179
548
80S
309
2, 798

1,177
1,175
542
578
81(5
816 •
338
322 '
2,768 i 2,685
249
138

906
490
738
344
2, 432
110

407
407
680 •
690
246
305 ,
1,440 i
1,478
128
128 I
592
592 j
1,830 : 1,079

407
6-13
331
1,118
147
592
1, 462

1,395
506
875
1,227
3,340
3,260 '
1,886

3,505 I
3,609
2,231 |

1,332
1, 934
3,000
1, 377
3, 6S5
3.894
3,210

501
103
344
181

63
403
91
346
140

i
i
i
j
!

61
423
67
345
131

21,315
9,477,
17,689'
33,241
6, 573

21, 270
10, 897
17,979
34, 246
6,720

22,371
15,377
IS, 135
39,074
6,865

j
i
I
!
i

25, 260
34,197
10, 400
51,395
10, 754

1,262 i
1,980 ;
292 ;

1,262
2,039
364

1, 400
352
724
1,292
3, 340
3,148
1,887

63
385
121
353
158

1, 380
912
1, 307
1,402

1,258 I
2,270
1,011 :

1,158
1, 841
196

354 :
355 •
362 i
0,838 I 6,923 : 8,230 !
395
407 '[
675 j

425
7, 063
405

172
128
79
352 i
29 :

172 ,

172

1 0 6 •'

347 !
35 !

14,502 13, 969
13,328 j 13, 883
20,155 i 20,481
36,045 ! 36, 281
1,696
1,333

6, 450
18,134
28, 202
33, 322

6,437
19,478
27,819
32, 260

16,660 j
12,433
22,427 I
3, 398

173
102
64
342
30

14, 516
18, 267
21,194
36, 923
2,174

6,408 ! 6, 234
20, 782 22, 980
27, 573 31,339
34,042 , 35, 700

9 289 :: 8,733 !! 8,127
112 6,187 5.71S
1,480 2 102 : 2,341

16, 313
1,876
3.101

252

FEDERAL RESERVE BULLETIN

APRIL, 1930

CONDITION OF CENTRAL BANKS—Continued
[Figures are for the last report date of month]

i Febru-' January
ary
Bank of Finland (millions of Finnish marks):
Gold
Balances abroad and foreign
credits
Foreign bills..
Domestic bills
Note circulation.
Demand liabilities

301

302 ,

303

739
16
1,223
1,369
342

705
15
1, 147
259
1,
308

670
21
1, 213 i
1, 361 i
237 i

698
14
1, 360
1, 523
376

648
2,537
3,739

644

640
2, 474 !
4,135 I
325 |
3,596 !
5,193 i
1, 529 |

560
3,446
4,605
127
3,790
5,465
2,136

Net foreign exchange in reserve. _
Total foreign exchange
340
Loans and discounts
3,513
Government obligations _
4,842
Note circulation
1,874
Other sight liabilities_._
National Bank of Hungary (millions of pengos):
Gold
Foreign bills, etc
Loans and discounts
,
Advances to treasury
|
Other assets
i
Note circulation_
|
Deposits
_.j
Miscellaneous liabilities
Bank of Java (millions of florins):
Gold
Foreign bills
Loans and discounts
Note circulation
Deposits.

I
j

3,830
377
3,596
4,907
2,081

163
25
227
83
93
441
77
46

163
18
293
88
97
476
63
94

139
31

140
31
95
279
37

275
32

!
i
!
I
I
i
'

163 '
39 I
329
501
98
60

204
43
314
92
114
451
216
75

140 i
23 !
112 !
289 I
38 I

169
37
86
300
50

Bank of Latvia (millions of lats):
Gold
Foreign exchange reserve.
Bills..
Loans
Note circulation..
Government deposits
Other deposits

24
46
95
56
49
92
74

Bank of Lithuania (millions of litas):
Gold..
Foreign currency
Loans and discounts
Note circulation
Deposits
_

35 I
76 !
95 |

!
I
!
'
:
'\
i

437
201
130
782
23

440
217
141
787
34

448
220 !
182 j
851
33 !

435
167
172
776
32

Bank of Norway (millions of kroner):
Gold
Foreign balances and bills
Domestic credits
Note circulation ._
Foreign deposits
Total deposits

147
27
233
297
2
68

147
30
233
298
3
71

147 i
59 i
240 |

147
36
266
301
2
91

Figures are for Mar. 1.

3,861
555
673
2,659
6,102
1,110

Bank of Poland (millions of zlotys):
Gold at home
Gold abroad . .
Foreign exchange of the reserve. .
Other foreign exchange
Loans and discounts . . -Note circulation
Current account of the treasury..
Other current accounts

,|
;!
I
i|
!|
i

24
71
82
47
44
102
75

Netherlands Bank (millions of
florins):
Gold...
Foreign bills
Loans and discounts
Note circulation-.
_
Deposits

Reserve Bank of Peru (thousands of
libras):
Gold
Gold against demand deposits._.
Foreign exchange reserve
Bills
Note circulation.
_
Deposits

Febru- Janu- Decem- February
ber
ary
ary

Decem-] Februber
ary

Bank of Greece (millions of drach- j
mas):
i
Gold

1929

1930

3, 836 : 4,266
580 :
150
677 i
815
3,177
1, 574
6,523
6,021
1,160
300

Bank of Portugal (millions of escudos):
Gold
Balances abroad
Bills
Note circulation
Deposits
National Bank of Rumania (millions
of lei):
Gold at home
Gold abroad
Foreign exchange of the reserve..
Other foreign exchange
Loans and discounts
State debt
Note circulation
Deposits
State Bank of Russia (thousands of
chervontsi):
Loans and discounts
Deposits
Issue departmentGold
Other precious metals
Foreign exchange
Note circulation
South African Reserve Bank (thousands of pounds sterling):
Gold
Foreign bills..
Domestic bills
Note circulation
Deposits—
Government
Bankers.
... .
Others
_
Bank of Spain (millions of pesetas):
Gold
Silver
Balances abroad
Loans and discounts
Note circulation
Deposits
Bank of S weden (millions of kronor):
Gold
. .
Foreign bills, etc
Loans and discounts
Note circulation
Deposits
_
Swiss National Bank (millions of
francs):
Gold
Foreign balances and bills
Loans and discounts
Note circulation
Demand deposits
_
National Bank of the Kingdom of
Yugoslavia (millions of dinars):
Gold
Foreign notes and credits
Loans and discounts
Advances to State
Note circulation
Deposits

« Converted into the terms of the leu adopted Feb. 7, 1929.

521
180
360
100
739
1,282
290
166

521
180
372
101
756
1,247
300
154

521
180
419
108
781
1,340
271
196

426
195
544
154
745
1,249
387
206

9
275
359
1, 905
77

9
313
361
1,972
108

9
332
354
2,001
98

9
329
280
1,880
72

5, 307
3, 919
3,610
22
9, 661
5,197
19, 518
8,487

5,280
3,919
5,063
39
9,529
5,469
19,767
9,097

5,266
3,919
6,745
44
9,718
5,631
21,150
9,389

5 12,104
4,000
20,074
4,385

472,486 473, 734
268, 314 268, 790

356, 212
206, 375

28, 567 28, 570
3,414
3,461
6,687
7,077
150,027 153, 697

17, 885
4,340
9,219
108,365

5,011
* 3, 264

7, 680
6,237
2,333
9,032

7,914
6,027
3,081
9,156

7,495
6,567
3,167
9,173

7,757
7,064
933
8,083

2,573
4, SCO
250

1,740
5,178
386

1,839
4,755
626

2,038
4,964
263

3 2,467
3 714
3 185
3 2,041
3 4, 431
3
889

2,567
711
86
2,062
4,399
1,017

2,566
705
103
2, 209
4,433
924

2, 559
713
93
1, 696
4, 294
1,029

244
234
298
534
166

244
237
296
521
183

245
266
411
569
272

235
199
331
499
186

561
344
120
893
129

560
378
135
890
188

595
353
224
999
200

482
181
241
843
7<

96
291
1, 377
2,999
5, 5(;0
1,409

96
276
1,434
2,999
5,586
1,372

95
268
1,518
2,999
5,818
1,411

91
185
1,614
2,966
5,159
750

Foreign exchange not reported separately.

253

FEDERAL RESERVE BULLETIN

APRIL, 1930

CONDITION OF COMMERCIAL BANKS
[Figures are for the last report date of month except for London clearing banks, which are daily averages]
1929

Jan.
Canada (millions of dollars):
Gold coin and bullion 1
Money at call and short notice
595
Current loans and discounts.
1,481
Public and railway securities
.
530
Note circulation
_.
158
Individual deposits
2,595
Gold reserve against Dominion notes.
59
Dominion note circulation
j 198
Argentina (millions of gold pesos):
j
j
Bank of the Nation
i
Gold.
125
Other cash
148
Loans and discounts..
511
Deposits
778

Feb. | Mar. j Apr. ! May

64
597
1,506

530
162
2,560

59
192

125
144
525
780

64 I
564 I
1, 572
516 I
524
171 I
189
2,596 i
2,560
59 i
58
205 I
205
63
560

1,560

125
125
531
772

i
'
i
I

106 !
133 I
543 ! j
773

1930

June ; July ; Aug.

64
61
62
61
594
594
577
584
1, 559 1,566 i. 1,572 1,585
523
462
525 : 470
168
170
190
187 !
2,560 2,559 '2,578 2,551
59
60
59 ; 59
197
196
199
210

102
130
549
769

78
125
569
777

67
129
561
761

Sept. | Oct. i Nov.

Dec.

Jan. j Feb.

61
594
1,639
487
197
2,654
60
201

61
507
1,653
448
175
2,605
60
204

61
449
1,641
431
156
2,485
63
173

30
85
620
733

7
124
584
731

62
521
1,715
487
185
2,679

532
1,684
475
187
2,636

212 ! 234

65
59 i 41
126
126 . 128 !
572 : 574 l 588 !
761: 750 ! 743 •

30
120
601
739

60
!
' 428
j 1,628
423
159
!
2,455
;
63
! 169

I
Other banks in Buenos Aires
11
Gold
12
12 : 1 2 i
12
15
11
11
13
12 i 12
12 I 13
i
170
Other cash
| 202
170
162 , 167 , 166 '.
180
184
154 155
197 j 190
156 ! 908
Loans and discounts
._, 851
883
889
884 :
877
873
893 i 888
862 ! 870
1,003
Deposits
i 1,018 1,011 1,027 1,016 1,012 1,015 ! 1,007 1,011 • 1,015 i 1,002
990
!
j
England (millions of pounds)
i
192
201
Cash in vault and at banks.
j 198
182
184
186
193 j 190
188 ! 191 i 189
186
188
144
Money at call and short notice
I 147
142
128
134
143
145
136
150 ! 143
144 I 149
151
143
227
Discounts
_
j 274
231
214
191
234
260
216
225
222 ; 227
243
218
195
236
235
Investments
_
250
244
244
242 , 242 , 242 ;
246
244
241
244
233
229
971
970
Advances
956
980
987
985
968
978
970
973
980 : 971 i 971
977
D
e
p
o
s
i
t
s
i
1,777 1,739 1,743 1,732 1,770 1,778 1,759: 1,754 ! 1,765 1,751 1,773 1,767 : 1714
France (millions of francs):
Bills and national-defense bonds
21,388 21,075 20, 815 20, 220 19,883 20, 664 19,959 19,299 19,661 20,511 20,903 21,064
Loans and advances
9,842 10,741 10,163 10,467 10,317 9,974 10,598 10,667 '10,773 ilO,825 10,746 10,743
Demand deposits
_
_. 34, 583 34,982 33,747 33,144 33, 279 33, 226 32,455 31,548 ;31,833 ,33,313 32,929 32,776
Time deposits._.
__
961
990 1,003 1,066 i 1,031 I 1,051 1,056 1,074
938
937 1,080
956
Germany 2 (millions of reichsmarks):
(3)
Bills and treasury notes
! (
3 148
2,819 2, 644 2,363 2,132 2, 365 2,365 2, 705 I 2, 807 2, 851 2, 885
(3)
Due from other banks
_J (
1,094 1.243 1,209 1,187 1,228 1,189 1,376 i 1,411 1,434 | 1,230
1 160
Miscellaneous loans
; (
6,963 7,189 7,138 7,046 6,956 7, 098 7,983 i 8,123 8,107 ! 8, 267
(3) , 8,561
(3) 12 035
Deposits
___j (
10,185 10,404 '10,036 9,659 9,908 9,989 11,282 11,588 111, 658 ill, 645
Acceptances
(
475
463
509
509 \ 496 487
434
491
(3)
525
441 I 459
Italy (millions of lire):
j
Cash
L__
| 1,178
1,138!
1,103
1,145
1,256
1,163
;
8,425
Bills discounted
_
i
i 8,628
8,390
8,404
;
8,260
8,425
,
,
\
8,938
;
I 5,656
Due from correspondents
_..'
5437
5501
5656
5, 091
J 5,407
5,501
5,437
, 0 I 5 6 ; 85,689
,98 9 '' I I
,
5,437
13747
Due to correspondents
13, 523
|13, 70i
13,505
|
.13,556
.13,714
..13,747
35
13556
13714 !!
Deposits
|
3,045
3,061
3,102 :
_ 3,115 i
I 3,164
! 3,041
Denmark (millions of kroner):
j
1,781 I 1,777 1,789
1,787
Loans and discounts
i 1,'
775
1,723 1,722 1,739 1,744 1, 767 I 1, 774 1,775
142
128 !_
Due from foreign banks
' :
160
146
138
143 ! 138 . 145
143
160
169 I 153
74 ! .
71
Due to foreign banks.__
_.;;
60 I
58
63
64 I 66
62
71
94
90 ! 78
1,961 1,941 i.
Deposits and current accounts
1,!
990 1,974 ! 1,964
1,940 1,939 | 1,946 1.963 1,955 i 1,952 1,969
Norway (millions of kroner):
1,252 ! 1,252
Loans and discounts
258
1,297 1,298 1,294 ! 1,266 1, 250 1,253 i 1,266
Due from foreign banks
136
142 . 126
102 j 124
103
129
116 : 102
128
124
Due to foreign banks
83
85 !
84
78 i 83
83
82
83
86 I 86
Deposits
1,537
587 1,588 1,568 ; 1,564 1, 558 1,557 j 1,557 1,558 i 555 1,545
101
Eediscounts
102 i
97
100
100
102 : 101
101 !
96
101
102
Sweden (millions of kronor):
Loans and discounts....
; 4,119 1 4,187 4,130 i 4,123 4,117 4,130 I 4,179 4,197 4,209 : 4,258 4,257 4,169 4,275 4,324
297
Foreign bills and credits abroad
'• 274 : 266
259 I
277
253
306 : 346
350
265 ; 276
294
297
265
115
Due to foreign banks
; 126
112 ; ii7
119
117 '
128
146
111
125
120
122
151 ' 126
Deposits
3, 530 i 3,527 3,540 •• 3,5243,469 3, 462 I 3, 530 3,530 ! 3,563 3,561 3,521 3,481 3,600 3,621
167
Rediscounts
i 165 | 167
262 !
191
202
212
176
251
156
154
231
230 ' 209
Japan (millions of yen):
!
319
276
238
Cash on hand__
260 ! 344
289 ! 259
301 ! 297 ! 329 | 344
344
260
263
Total loans
2,079 , 2,071 2,097 i 2,056 2,047 2,126 I 2, 087 2.086 2,055 i 2, 039 ' 2, 059 2,160 2,148 2,157
Total deposits..
! 2,102 I 2,108 2,140 ! 2,109 2,101 2,097 I 2,090 2,106 j 2,077 \ 2,072 2,096 2,089 2,072 2,063

1
2

Not including gold held abroad.
Figures given are not entirely comparable for dates shown. The difference arises from (1) a merger in October, 1929 of 2 included banks—the
Deutsche Bank and the Disconto-Gesellschaft—which incidentally involves inclusion for the first time of figures for 4 small affiliates of the latter, and
(2) inclusion,
beginning August, 1929, of an additional bank—the Berliner Handelsgesellschaft.
3
Figures not available.
NOTE.—Banks included are as follows: Canada—chartered banks; Argentina—Buenos Aires banks; England—-9 London clearing banks; France—
4 commercial banks; Germany—6 Berlin banks; Italy—i private banks; Denmark, Norway, and 'Sweden—joint-stock banks; Japan—Tokyo banks.

254

FEDERAL RESERVE BULLETIN

A P R I L , 1930

DISCOUNT RATES OF CENTRAL BANKS
[Rate prevailing April 1, 1930, with date of latest change]

Austria
Belgium
Bulgaria
Chile

In effect
since—

Rate

In effect
si n e e -

Country

6
3^
10
: 6

Mar. 22,1930
Jan. 1,1930
July 2,1929
Oct. 22,1928

England-.
Estonia...
Finland—France

Wz
8
7
3

Mar. 20,1930 Japan
Oct. 3,1929 ; Java
Nov. 16,1928 1 Latvia
Jan. 30,1930 Lithuania...

Nov. 20,1929
M a r . 8,1927
Mar. 8,1930
Mar. 7,1930
Jan. 10,1930

Germany _
Greece
Hungary..
India
Italy

5
9
6
7

Mar.
Nov.
Mar.
Oct.
Mar.

Country

Colombia
..:
Czechoslovakia.
Danzig
Denmark
Ecuador
__;

9
5
tyi
4^
9

Rate

Country

Rate

In effect
since—

5.48
4K2
6-7
7

25,1930 Netherlands 3
30,1928 1 Norway
29,1930 Peru
7
31,1929 1 Poland
7
13,1930

In effect
since—

Country

Rate

Oct. 10,1927
Mar. 10,1930
Apr. 1,1928
Feb. 1,1925

Portugal
Rumania
Russia
South Africa

s
9
8
6

July
Nov.
Mar.
Aug.

Mar.
Mar.
Nov.
Mar.

Spain.
Sweden
Switzerland.
Yugoslavia..

5*>
4
3^
6

Dec. 19,1928
Mar. 7,1930
Oct. 22,1925
June 23,1922

25,1930
21,1930
23,1929
14,1930

•

27,1926
26,1929
22,1927
17,1929

Changes.—Austria—Mar. 22, from 6 ^ to 6 per cent; Danzig—Mar. 8, from 6 to 5J4 per cent; Denmark—Mar. 7 from 5 to 4 ^ per cent; England—
Mar. 6, from 4H to 4 per cent and M a r . 20 from 4 to 3 ^ per cent; Germany—Mar. 8, from 6 to r~>y2 per cent a n d M a r . 25, from hYz to 5 per cent;
Hungary—Mar. 29, from 6 ^ to
6 per cent; Italy—Mar. 3, from 7 to (iYi per cent; Java—Mar. 10, from 5 to 4J-2 per cent; Netherlands—Mar. 7, from 4 to 3H
per cent and M a r . 25, from Zl/i to 3 per cent; Norway—Mar. 21, from 5 to 4K> per cent; Poland - M a r . 14, from 8 to 7 per cent; Sweden—Mar. 7, from
4l/2 to 4 per cent.

MONEY RATES IN FOREIGN COUNTRIES

Month

Bankers'
acceptances, 3
months

Netherlands (Amsterdam)

Germany (Berlin)

England (London)

Treasury
bills, 3
months

rate

1 month

money

4.32 i
5.05

5.33 j
5.21
5. 21 !
5.32 |

4.29
4.96
5.30
5.18
5.21
5.35

3.41 ,
4.33 i
4.51
4.43 i
4.67
4.23

5.80
5.80
6.31
6.63
7.49
7. 50 ,

7.51
7.07
7.30
7.57
9.65
9.89

5.13 I
6.33 !
6. 97 |
6.85 i
9.32 |
7.90 I

4.20
4.39
4.64
5.36
5.37
5.30

July
August
September.
October.__
NovemberDecember.
1930—January...
February __

5.38
5.47
5.59
6.13
5.35
4.76

j
'
I
:
,
!

5.39
5.48
5.63
6.19
5.30
4.75

4.54 ;
4.35 i
4.39 I

7.39
7.18 :
7.18
7.28
6.89

9.35
9.43
9.48
9.06
8.29
8.78

8.21
7.42
7.86
8.06
7.79
8.14

5.20
5.06
5.36
5.15
4.20
3.52

4.0? i
3.82 !

4.04
3.72

3.62 :
3.76 l

6.33 '•
5.53

7.71
6.72

6.03
6.01

2.99
*>2. 77

5.45 :
5.15
4.23 ,

Belgium
; (Brussels)

France
(Paris)

(Milan)

Private
discount
rate

Austria

(Vienna>

Sweden
(Stockholm)

Hungary

Private
discount
rate

rate

1929—January-__
February..
March
April
May
June
__

Switzerland

3.28
3.31
3.39
3.45
3.34
3.26

Japan (Tokyo)

Month

1929—January
February—.
March
April
May__
June
July
August
September.,
October
NovemberDecember. _.
1930—January
February

Private
discount
rate

i
:
!
|

3.50
3.39
3.37
3.44
3.49
3.50

5.83
6.00
6.31 6*4
6.75
-7%
6.83 \ 7% -7
-7H
6.75 !' \ -7J4

4.00 i
4.93 i
4.94 :
4.94 i
4.62 j
4.37 I

3.50
3.50
3.50
3.50
3.50
3.50

6.75
6.85 7H -7
7.01
7.18
7.00 73/4 -8W
7.00 ! 7H - 7 %

3.40 '
3.42 ;

3.38
2.91

7.oo : 6}^ -7%

3.94
3.94
3.94
3.94
3.94
3.94

6.95 |

Money
for 1
month
7U-SH
7H-SH
7H-8WJ
8 -9
8)4-9
8K-9
8J4-9
814-914
9 -10
83,4-10
8^-9 J4

Prime
commercial paper

Loans up Discounted
to 3
bills
6H-&H
6J4-8J4

4^,-6 y.
41,^-6 Yi

7 -9 !

4i^_gi,^
41^-6 H

7 -8H
7 -8 !

4H-6V6

\ -9
834-10 I
8^4-10H
894-10K
9 -10 U
SH - 9 %
3
71 >-10

7 -7H\

Call
money
overnight

5.84-6. 21
5. 66-5.84
5.68-5. 84
5.48-5.66
5.48-5.66
5.48-5.66

1.46-5.84
2.01-4.02
2.19-4.02
3.47-4.02
2. 56-4.02
2.56-4.02

5^-7
hYi-7
hM-7
5H-7

5.48-5.66
5.48
5.48
5.48
5.48
5.48

2.74-4.02
2. 56-4. 02
1.64-4.02
2.92-4. 02
2.74-4. 02
2.19-5.84

43^-6

5.48

1. 64-4. 02

4 l/^-g y±

7 -8

v Preliminary.
N O T E . — F o r sources used, methods of quotation, and back figures, see BULLETIN for November, 1926, April, 1927, July, 1929, and November, 1929.

255

FEDERAL RESERVE BULLETIN

APRIL, 1930

FOREIGN EXCHANGE RATES
[Monthly averages of daily quotations. 1 In cents per unit of foreign currency!
1930
i Par
Monetary unit ; of ex| change January : February March

Country

i Monetary unit

Par
of ex-

1930
January February March

SOUTH AMERICA:

EUROPE

Schilling.
Belga
Lev.
Crown.
Krone—

14.07
13. 90
.72
2.96
26. 80

14. 0597
13. 9377
7213
2*.9583
26. 7517

England
Finland..
France
Germany
Greece
Hungary

! Pound
I Markka
! Franc
' Reichsmark
j Drachma
I Pengo

486. 65
2. 52
3.92
23.82
1.30
17.49

486. 8823
2. 5160
3. 9291
23.8821
1. 2976
17. 4912

Italy
Netherlands
Norway
Poland
Portugal--.

5.26
40.20
26.80
11.22
108. 05

5. 2331
40. 2279
26. 7347
11.1973
4.4969

Austria
Belgium
Bulgaria
Czechoslovakia.._
Denmark

Rumania
Russia 2
Spain
Sweden
Switzerland
Yugoslavia

Country

Lira
_
' Florin
j Krone
j Zloty
Escudo
Leu_
__Chervonetz.
Peseta
Krona
Franc.
Dinar.

. 5962
.60
514. 60 515. 0000
19.30 13.1044
26.80 26. 8460
19.30 19.3486
19.30
1. 7658

\ Peso
96.
91. 3355 86. 5311 85.6357
14. 0605 14. 0705 Argentina
13. 9271 13. 9373 Bolivia 2
i Boliviano
36.50
36. 0000 36. 0000 36.0385
i Milreis
11.96
.7212
.7216 Brazil
11. 0857 11.1533 11.5012
I Peso.
12.17
2. 9590 2. 9622 Chile— 2
12. 0556 12.0319
12.0518
i
do
97.33
26. 7532 26. 7693 Colombia2
96. 3900 96. 3900 96. 3900
Ecuador
j Sucre
| 20.00 20. 0000 20.0000 20. 0000
2
486.1785 486. 3085 Peru
Libra
J486.65 400. 0000 400.0000 400.0000
Peso
103.42 92. 9796 88. 9679 89. 0137
2. 5162 2. 5166 Uruguay 2
19.30
3. 9155 3. 9132 Venezuela —_j Bolivar
19. 2500 19. 2500 19. 2408
23. 8711 23.8573
1. 2962 1. 2960
17. 4769 17.4738
China 4
! Mexican dollar. 32.73 35. 6106 34. 3963 33. 8100
5. 2346 5. 2375 China 44
\ Shanghai tael._ 45.45 49.6186 47. 9616 47.1132
I
Yuan dollar
32.97
40.1028 40.1066 China
35. 5497 34. 2746 33.6009
4
•: 32.24
26. 7212 26. 7589 Hong Kong __ 1 Dollar
39. 9497 38. 2350 37. 2238
36.50
_.i Rupee
11.1935 11. 2027 India.._
36. 3102 36. 2071 36.1138
49.85
4. 4957 4.4930 Japan.
49.
0905 49.1295 49. 3298
___|
Yen
_
_
40.20
Florin.
Java 2.
40.1769 40.0791 40.1365
.5953 Straits Settle- Singapore dol- 56.78
. 5950
56. 0259 56. 0006 55. 8994
lar.
s 515.0000 '515. 0000 ments.
Turkish pound. 439.65 5 46. 8929 6 46. 7776 7 47.3035
12. 6955 12. 3131 Turkey
26. 8262 26. 8563
19. 2938 19. 3453
AFRICA
1. 7604 1. 7637
Egypt...
j Egyptian pound 494.31 5 500.2389 6 500.6147 M99.2997

NORTH AMERICA

Canada
Cuba
Mexico

Dollar
Peso..
do

100.00
_- 100. 00
49.85

98. 8932 99.2408 99. 7637
99. 9247 100. 0313 99. 9596
47.4393 47.4758 47.4921

1 Based on noon buying rates for cable transfers in New York.
Averages based on daily quotations of closing rates as published by New York Journal of Commerce.
Chervonetz quotations nominal.
Silver currency. The figure given for parity represents gold value of unit in March, 1930, computed by multiplying silver content of unit
by New York average price of silver for March, 1930, which was $0.41959 per fine ounce. On the same basis, parity in March, 1929, for the ChineseMexican dollar was 44.52 cents; for the Shanghai tael, 61.37 cents; for the Yuan dollar, 43.54 cents; and for the Hong Kong dollar, 44.19 cents.
« November, 1929.
e December. 1929.
7 January, 1930.
Back figures—See BULLETIN for January, 1930, 1929, and 1928.
2
3
4

256

FEDERAL RESERVE BULLETIN

APRIL, 1930

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES
ALL COMMODITIES
Base of index and country
(See note)
Base: 1926=100
United States
Base: 1927=100
Poland
Base: 1926=100
Canada
_.
Finland
Base: 1914=100
Australia
Austria
Belgium
Czechoslovakia.
._
India
Switzerland
Base: 1913 = 100
China
Denmark
Dutch East Indies
Egypt
England _
France
__
Germany
Hungary
_
Italy
Netherlands
Norway.
_ _
Peru
Russia
Spain
Sweden
Base: 1910=100
South Africa
Base: 1909-1913=100
New Zealand
Base: 1900=100
Japan
_

Feb.

Mar.

Apr.

June

May

Sept.

Oct.

Nov.

| Dec.

Jan.

Feb.

95 i

100

96
100

94
99

92
98

93 !
98

96
97

98 ,
97

97
96

96 i
95 !

96
95

96
94

94
93

157
128
867
139
145
143

156
130
865
139
144
143

157
133
869
141
143
142

158
134
862
141
140
140.

156
135
851
137
139
139

158 !
134
848
134
138
139

159
132
858
135
142
143

160
132
850
134
143
143

163
128
846
132
143
142

161
127
838
131
140
142

158
125
834
130
137
140

154
123
823
128
134
139

151
125
808
126
131
136

147
123
791
124
126
133

162
159
149
122
138
660
139
136
463
146
150
185
177
173
145

164
154
150
123
140
654
140
136
461
147
150
189
178
174
144

161
150
148
120
139
648
137
135
455
]44
148
185
179
174
141

162
148
150
114
136
643
136
123
452
142
146
186
180
171
140

163
149
149
109
137
624
138
119
440
141
149
187
180
169
140

165
150
148
112
136
598
138
114
437 1
142 ,
148
187
180
170
141

167
150
148
113
136
608
138
109
437
141
148
186
181
171
140

168
149
147
115
136
607
137
111
436
140
147
186
182
172
138

165
147
146
112
134
603
136
107
431
137
146
184
181
171
135

165
146

170
143

160
151
149
125
138
657
139
132
461
146
149
186
177
171
144
135

163
146
149
108
136
629
135
122
'446
141
147
186
181
170
139

131

j
!
j
i
;
i
'
i
;

,
i

110
133
596
134
107
425
135
146
182
182
172
134

155

154

155

154

155

156

157

156

155

154

226

225

223

222

220

218 .

218

216

211

205

|
I 113 I 109
j
j
I
! 106 I 110 |
i
'
j
! 132 : 126 !

100 !

1928

103
104

100
100

159
136
558

161
123
744
139
148
144

159
162

j
!
i
I

1929

95
101

96
102

95
98

159 157
133*130
847 843
143
143
145
148
145
142

158
*130
851
135
141
141
164
150
148
115
137
627
137
121
446
142
148
186
171
140

89 i 100

106

159
210
166
152
159

164
163
159
132
148
695
134

170 i
153 i
154 j
121 !
141 |
642 I
138 !

161
153
149
120
140
645
140

596
155 ;
251 s
202 i
188 !
161 i

602
145
196
203
181
149

495
148
160
203
172
146

462
149
155
192
167
148

139 ; 140 J 135 131
!
|
156 155
170 i 162 ! 154
i
220
267 ; 237 ; 225 ! 226
144 |

:
,
:

]06
128
569
129

,
i
:

408
126
143
181

131 !

128

201 !

199

Revised.
NOTE

1926 • 1927

Base: 1926=100
United States
Base: 1927=100
Poland
Base: 1926=100
64
Canada
Finland
Base: 1914=100 (see note)
Australia
Austria
Belgium
Czechoslovakia
India
.1Switzerland
Base: 1913=100
I
China
Denmark
100 ...
Dutch East Indies
100 L.
Egypt
England
100 i 100
France
ioo !.
Germany
100
Hungary
100 j.
Italy
100
Netherlands
I 100 109 |
Norway...
Peru
i 100 ! 104
Spain
I 100 ! 101
Sweden
100 I

109
131
578
132
106
417
131
144
181
182

175
140
;

121

128

129

228

Base of index and country

Aug.

ANNUAL INDEXES

* N e w series.

July

96 '

» Corrected.

Base: 1910=100
South Africa
Base: 1909-1913=100
N e w Zealand
Base: 1900=100
Japan

1930

1929

Jan.

The foregoing table, first published in this form a
month ago, contains for the countries listed the same
index numbers that have heretofore appeared in the
BULLETIN, but with more precise information regarding base periods. In the case of three countries for
which the index was formerly shown on a 1913 base,
the old series may be continued by dividing the index
numbers given by the following yearly averages for
1913: Japan, 132.3; New Zealand, 105.5; South Africa,
112.5. In the case of one other country, Czechoslovakia,
the index now appears in revised form (gold basis).
All of these index numbers, with a few exceptions,
are published currently in the Monthly Bulletin of
Statistics of the League of Nations (Geneva) and the
Monthly Bulletin of the International Institute of
Statistics (The Hague). For France and Poland, for
which the figures published by the League and the
Institute belong to a different index, see the following
sources: France—Bulletin de la Statistique Generale;
Poland—Polish Business Conditions, published by
the Polish Institute of Economic Research.
The base periods shown in the table relate to calendar years, the average for the year (or period of years)
representing 100. In certain cases, however, the base
period more exactly described is a selected month or
selected series of months, as follows: Australia—July,
1914; Austria—January-July,
1914; Belgium—April,
1914; China—February, 1913; Czechoslovakia—July,
1914; Egypt—January 1, 1913-July 31, 1914; IndiaJuly, 1914; Japan—October, 1900; Norway—December 31, 1913-June 30, 1914; Switzerland—July, 1914.
All of the indexes shown, with two or three exceptions, are compiled by official agencies of the countries
to which they relate, as indicated specifically in the
BULLETIN for March (p. 124).

257

FEDERAL RESERVE BULLETIN

APRIL, 1930

WHOLESALE PRICES—Continued
GROUPS OF COMMODITIES
Annual indexes

1929

1930

Country and group
1913 j 1925

1926

1927

1928

1929

Oct.

Feb.

Nov.

Jan. ; Feb.

Dec.

UNITED STATES

Farm products
Foods
Hides and leather products..
Textile products
Fuel and lighting materials.
Metals and metal products..
Building materials
Chemicals and drugs
Hqusefurnishing goods
Miscellaneous

72 ;
64 j
68 !
57 !
61 '

110

91
57
80
56
93

103 i

Xonagricnltural commodities. _.

107
103
111
93
81
104
98
94
97

104
101
111
93
82
104
98
94
97
81

105
98
109
96
81
104
98

101 I

100

100
100
100
100
100
100
100
100
100
100
100
100

167 :
164 ;
162 j
173 !
155 !
126 ,
146 !
122 I
210;
197 i
172 ;
157 :

155
150
154
160
144
124
185
120
158
170
148
145

152
153
137
166
136
120
134
112
155
170
138
142

152
149
141
167
134
112
118
107
164
186
138
142

145
138
146
152
132
114
125
116
154
166
132
136

149
142
144 :
160 ;
133 ;
113 :
123" !
114 ,
159 j

581 !
600 i
550 I
793 |
598 !
l.ooi ;
'546 |
683 i
314 !
875 j
791 !
540 :

599
625
558
678
526
821
532
589
199
662
750
606

584
599
567
697
522
840
617
580
130
659
844
570

579
547
632
669
560
755
471
596
123
678
963
618

620
607 j
642
693
551
812 i
530
590
141
677
930
592 j

556
551
i !
487
639 ! 670
656 | 652
561 j
567
725
705
452
455
603
608
117
114
677
677
969
1,003
636
636
i

100
100
100

133
127
120
162
122
136

129
131
121
146
115
132

138
154
112
143
146
129

134
142
111
144
147
133

130
126
127
142
126
125

134
132
120
151
140
125

133 i
125 !
134
149
120
131

132
122 ,
134 ;
153
113 :
126

128
119 :
128
153 :
107
120

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

141
129
129 '
123
191
125
127
88
138
94
159
153
157
136
172

130
128
124
117
150
115
123

132
129
125
108
153
134
124
83
126
47
150
158
147
130
160

134
132
128
106
159
153
126
82
121
30
150
159
159
137
175

132
137
130
118
141
125
127
85
128
28
151
159
157
139
172

134
139
128
118
149
131 i
126 ;
87
126
34 i
151
157:
158 :
138 :
174 ,

132 |
137 |
131
118
136
122
127
82
134
28
151
162
157
140
170

131
138
131
116 :
133
121
127
82 '
132
26
151
162
157
140
170

130
139
130
113
130
118
127
83
129
23
152
161
157
139
169

102
102
103

177 •
!

136
137

!
143
141
143
145
132
115
126
116
154
158
132
138 |

145
137
148
150
131
115
128
114
152
154
130
137

i
!
;

I
:
i
!
|

i
!
i
:
;
j
!
i

142 j
132 !
150 !
145 •

129 j
115 '
128 ;
111 •
147
156 :
127
134

101

80
101
96
93
97
79

98
96
104
88
79
101
96
92
97
79

139
129
154
135
127
115
130 !
110
141 '
145
123:
130

135
122
152
133
124
115
129
110
134
135
120
129

518 ;
546
432 •
456
661
695
630
640
568 , 571 :
'655 i
684
438 '
433
602
603
97
89 :
685
685
987
987
636

507
422
648
623
570
639
439
610
94
667
987
708

126
120 :
126
146
105
115

122
117
128 .
134
98
115 !

116
112
123
129

129
138
130
112
128
116
127

128 :
138 l
130 ;
112
125
116
127 .
85
128
21
151
158
156
140
168

127
138
129
111
118
114
127
86
127
22
150
158
155
139
166

97 !
105 i
89 •

141 :
132 ;
158 i
135
128 !
115
130

111 I
144 !
152
125
131

i
100 i
100 I.
100 !
100
100 !
100 !
100
100
100
100
100
100

GERMANY

Total agricultural products
Vegetable foods
Cattle
Animal products
Fodder
Provisions
Total industrial raw materials and
semifinished products
Coal
Iron
_.
Nonferrous metals.
Textiles
Hides and leather
Chemicals
Artificial fertilizers
Technical oils and fats
Rubber
Paper materials and paper
Building material
Total industrial finished products..
Producers' goods..
Consumers' goods

93 ;

105
100
109
94
82
104
97
94

109 i

106
101
122
96
83
100
94
96
97
83

FRANCE

Farm and food products..
Vegetable products. __
Animal products
Industrial products
Minerals and metals.
Textiles..
Hides and leather
Chemical products._.
Rubber...
Paper
Lumber
Cement, brick, glass.

107
90
81
102
96
94
97

108
96
87
98
93
97

105
108
97

ENGLAND

Total food
Cereals
Meat and fish
Other foods
Total not food
Iron and steel
Coal
Other minerals and metals.
Cotton
Wool
Other textiles
Miscellaneous

101
99
108 :
92
82
102
96
94 :
97
80 ,

100
100
100
100
100
100
100
100
100
100

100 !

100 i
100 i
100 I

.
:
;
:
;
:

;
'
I
j

8 6 '••

131
63
152
145
150
133
162

;

I
i
|
'
!
!

|
i
|
;
'

555 ;
476
686
645
566
694
432
606
96
685
1,003
636

:
:
i
:
'

8 4 ••

130
22
151
161 i
156
140 :
169

NOTE.—For corresponding indexes for all commodities see preceding page. For current figures of the group indexes given in this table the
following sources may be used: United States—Wholesale Prices of Commodities, Bureau of Labor Statistics, Department of Labor; EnglandBoard of Trade Journal and Commercial Gazette, Board of Trade; France—Bulletin de la Statistique Generale de la France, Supplement Mensuel,
Statistique Generale de la France; and Germany— Wirt?ohaft und Statistik, Statistisches Reichsamt.
' Revised.

258

FEDERAL RESERVE BULLETIN

APRIL, 1930

LAW DEPARTMENT
DIGEST OF STATE LAWS RELATING TO BRANCH
BANKING

ALABAMA

Branches prohibited.—"No bank, or any officer,
On page 182 of the FEDERAL RESERVE BUL- agent or director thereof, shall be permitted to establish
branch or office for the transaction of the banking
LETIN for March, 1925, there was published a abusiness,
other than at its principal place of business. 7 '
digest of State laws relating to branch banking, (1928 Combined Banking Laws of Alabama, sec. 6354,
which was prepared by the counsej/s.office of the p. 25; Civil Code of Alabama, sec. 6354.)

Federal Reserve Board with the assistance of
the counsel to the various Federal reserve
banks, and which showed the status of branch
banking legislation in the various States at the
close of the year 1924. The following digest of
the branch banking laws of the several States,
which was also prepared by the office of the
board's counsel with the assistance of the counsel to the various Federal reserve banks, supersedes the digest published in the March, 1925,
FEDERAL RESERVE BULLETIN, and shows the
status of branch banking legislation in the various States as of December 31, 1929. It contains a digest of only such State laws as relate
to branches established within the United
States and does not cover laws relating to
branches established in foreign countries.
SUMMARY OF STATE LAWS
permitting States prohibit- States having no
States permit- Statesbranch
legislation
ting state-wide banking
ing branch
regarding branch
within
branch banking
banking
banking
limited areas
Arizona.
California.
Delaware.
Maryland.
North Carolina.
Rhode Island.
South Carolina.
Vermont.10
Virginia.

Total, 9.

Georgia.1 3
Louisiana.
Maine. 5
6
Massachusetts.
Mississippi.78
New Jersey.9
New York.
Ohio,"
Pennsylvania.12
Tennessee.13

Total, 10.

Alabama.
Arkansas.
Colorado.
Connecticut.
Florida.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Minnesota.
Missouri.
Montana.
Nebraska.
Nevada.
New Mexico.
Oregon.
Texas.
Utah.
Washington.
West Virginia.
"Wisconsin.
Total, 22.

Kentucky. 2
Michigan.4
New Hampshire.
North Dakota.
Oklahoma.
South Dakota.
Wyoming.

Total, 7.

12 City or municipality.
No provisions regarding branches, but court decisions permit establishment of additional offices or agencies to receive deposits and pay
checks.
3
Municipality or Parish.
* "Industrial "banks" may establish branches in city or village of head
office; but no provisions covering establishment of branches by other
banking
institutions.
8
County or adjoining county.
67 Same town.
Same city.
s Same city, town, township, borough, or village.
»10 City limits.
No provisions regarding branches but state-wide establishment of
"agencies"
permitted.
11
Same city, or city or village contiguous thereto.
12
Corporate limits of same place,
is County.

ARIZONA

Branches permitted.—Banks and trust companies in
this State may establish branches if they have the
capital required by law and if the consent of the superintendent of banks is obtained. The superintendent
of banks may give his consent if the public convenience
and advantage will be promoted by the opening of such
branch, and he may withhold such consent if he is
satisfied that the opening of the branch is undesirable
or inexpedient. (Banking Laws, 1922, sec. 21, p. 17;
Special S. L. 1922, ch. 31, sec. 21, p. 131.)
Capital required.—''Before any such branch office is
authorized, the corporation proposing to establish the
same shall have a paid-in capital and surplus of not less
than fifty thousand dollars, plus fifteen thousand dollars
of additional capital and surplus for each and every
branch so authorized." (Banking Laws, 1922, sec.
21, p. 18; Special Session Laws, 1922, ch. 31, sec. 21,
p. 131.)
ARKANSAS

Branches prohibited.—"* * * the return of
which said copy (certificate of incorporation) so indorsed and the filing of the same for record with the
county clerk of the county in which the said institution
(bank or trust company) is located, shall authorize it
to proceed with its business, but with only one office
for the transaction thereof in only the one town or city
as to which the application has been made." (Banking
Statutes, 1929, sec. 14, p. 9; sec. 13 of Act 113 of the
act of 1913, as amended by acts of Arkansas, 1923,
p. 519.)
CALIFORNIA

Branches permitted.—"No bank in this State, or
any officer or director thereof, shall hereafter open or
keep an office other than its principal place of business,
without first having obtained the written approval of
the superintendent of banks to the opening of such
branch office, which written approval may be given or
vithheld in his discretion, and shall not be given by
aim until he has ascertained to his satisfaction that the
dublic convenience and advantage will be promoted
by the opening of such branch office; * * *."
(Bank act of California, 1929, sec. 9.)
Capital required.—For each branch office located in
the place of business of the parent bank, the paid-in
capital, in cash, must exceed by $50,000 the capital
required for the transaction of business by a bank in
that place. (Bank act of California, 1929, sec. 9.)
For each branch office of a bank, other than an
exclusive trust company, located in any place in the
State other than the place of the principal place of
business of the parent bank, the amount of paid-in
capital, in cash, must exceed the amount required by
law in the sum required for the organization of a bank
in that locality, exclusive of the capital required for a
trust department. (Bank act of California, 1929,
sec. 9.)
For each branch of an exclusive trust company
opened or maintained in any place in the State other

than the place of the principal business of the parent
trust company, the paid-in capital, in cash, must exceed
by $50,000 the amount required by law for the transaction of a trust company business. (Bank act of
California, 1929, sec. 9.)
There are also provisions concerning the discontinuance of a branch, increase of capital upon increase in
deposits of branches, fee for the opening of a branch,
penalty for violation of the law covering the establishment of branches, advertising by branch, and the
establishment of branches by banks located in a city or
territory which is annexed by or consolidated with a
city or territory of a class requiring a larger capitalization. (Bank act of California, 1929, sees. 9, 19, 23, 28,
60, and 82.)
COLORADO

Branches prohibited.—"Every bank shall be conducted at a single place of business, and no branch
thereof shall be maintained elsewhere." (Banking
Laws, 1928, sec. 56, p. 31; 1921 Compiled Laws, sec.
2703; S. L. 1913, sec. 48, p. 128.)
CONNECTICUT

Branches prohibited.—"* * * no State bank,
trust company, mutual savings bank, or building and
loan association shall establish any branch office or
agency thereof, or employ any agent or person to make
loans or discounts at any other place than its banking
house." (Banking Laws, 1929, sec. 3920, p. 18;
General Statutes of 1918, sec. 3920, as amended by
chapter 10, P. A. 1923.)
Persons, partnerships, or corporations licensed to
transact a "small loan" business may not make any
loan provided for in the Connecticut small loan company act "under any other name or at any other place
of business than that named in the license. Not more
than one place of business shall be maintained under
the same license, but the bank commissioner shall issue
more than one license to the same licensee upon the
payment of an additional license fee and the filing of an
additional bond for each license." (Banking Laws,
1929, sec. 8, p. 114; ch. 219, P. A. 1919, as amended by
ch. 223 P. A. 1923.)
DELAWARE

Branches authorized.—"No bank or trust company
shall open any branch office or place of business in this
State unless authorized so to do by the certificate of
the State bank commissioner." (Banking Laws, 1929,
sec. 4, p. 16; Laws of Delaware, 1921, ch. 103, sec. '4,
p. 288.)
Capital requirements.—"No such certificate shall be
issued by the said commissioner unless satisfied that
the applicant has a paid-in capital stock to an amount
equivalent to at least twenty-five thousand dollars for
each office or place of business then established by said
corporation in this State and for the branch sought to
be established, and a surplus to an amount equivalent
to at least twenty-five thousand dollars for each office
or place of business then established by said corporation." (Banking Laws, 1929, sec. 4, p. 16; Laws of
Delaware, 1921, ch. 103, sec. 4, p. 288.)
Must be authorized by charter.—"Nothing in this
section contained shall be deemed to confer on any
corporation the power to establish branches not expressly authorized by its charter." (Banking Laws,
1929, "sec. 4, p. 16; Laws of Delaware, 1921, ch. 103,
sec. 4, p. 288.)

259

FEDERAL RESERVE BULLETIN

APRIL, 1930

FLORIDA

Branches prohibited.—" The place of business of each
banking company shall be in the city or town specified
in its charter, and the usual business of any such banking company shall be transacted at an office or banking
house located in the city or town so specified and not
elsewhere." (Banking Laws, 1921, sec. 4139; General
Compiled Laws of Florida, 1927, sec. 6070.)

Branches authorized but restricted as to location.—
Under the provisions of an act of the Georgia Legislature approved July 20, 1929, it is provided that
"banks chartered under the laws of this State and having their principal office in a city, now, or hereafter having
a population of not less than eighty thousand, or more
than one hundred and twenty-five thousand, may
establish branch banks in the city in which its principal
office is located." (Georgia Laws, 1929, p. 214.)
An act of the Georgia Legislature approved August
17, 1929, provides "that banks chartered under the
laws of this State, and having their principal office in a
municipality, now, or hereafter having a population of
not less than 200,000, according to the last census of the
United States or any future census of the United
States, may establish branch banks in the municipality
in which its principal office is located." This act also
provides "that all laws and parts of laws in conflict
herewith be and the same are hereby repealed."
(Georgia Laws, 1929, p. 214.)
IDAHO

Branches prohibited.—"No bank shall maintain any
branch bank, receive deposits or pay checks, except
over the counter of and in its own banking house:
Provided, That nothing in this section shall prohibit
ordinary clearing house transactions between banks."
(Banking and Public Depositary Law, 1925, sec. 84,
p. 42.)
ILLINOIS

Branches prohibited.—By an act approved June 28,
1923 (Laws of 1923, p. 164), the Illinois Legislature
prohibited branch banking, subject to the approval of
the people at the general election of 1924; and at an
election held on November 4, 1924, the act was approved by the people. This act provides:
"No bank shall establish or maintain more than one
banking house, or receive deposits, or pay checks at
any other place than such house; and no bank shall
establish or maintain any branch bank, branch office or
additional office or agency for the purpose of conducting
any of its business." (Smith-Kurd 111. Rev. Stat.,
1927. sec. 9. p. 193.)
On June 4, 1929, an act was approved prohibiting
branch banking; but this act is subject also to the
approval of the people " a t the next general election."
This act provides:
"No bank shall establish or maintain more than one
banking house, or receive deposits, or pay checks at
any other place than such banking house, and no bank
shall establish or maintain in this or any other State
or country any branch bank, nor shall it establish or
maintain in this State any branch office or additional
office or agency for the purpose of conducting any of
its business." (Cahill 111. Rev. Stat., 1929, sec. 9, p. 164;
Laws of 1929, p. 178.)

260

FEDERAL RESERVE BULLETIN

Branches prohibited.—"That it shall be unlawful for
any person, firm, or corporation engaged in the business of operating a State bank, private bank, savings
bank, or loan, trust, or safe deposit company to open
or establish a branch bank or branch office: Provided,
That the provisions of this section shall not apply to
branch banks or branch offices for which charters have
heretofore been granted." (Banking Laws, 1929, p.
139; Acts of 1921, p. 367.)
IOWA

Branches prohibited.—"No banking institution shall
open or maintain any branch bank, or receive deposits
or pay checks, other than at its principal place of business." (Banking Laws, 1929, sec. 9258-bl, p. 32; act
approved April 18, 1927, 1927 S. L. ch. 206, p. 181.)
KANSAS

Branches prohibited.—"The general business of
every bank shall be transacted at the place of business
specified in its charter or permit, and it shall be unlawful for any bank to establish and operate any branch
bank or branch office or agency or place of business."
(Banking Laws, 1929, sec. 1, p. 2; Laws of 1929, ch. 85,
sec. 1.)
KENTUCKY

APRIL, 1930

capital shall operate not more than three branches; of
more than one hundred thousand dollars, but not
more than two hundred thousand dollars capital
shall operate not more than five branches; of more
than two hundred thousand dollars, but not more than
two hundred and fifty thousand dollars shall operate
not more than six branches; of more than two hundred
and fifty thousand dollars, but not more than three
hundred thousand dollars capital shall operate not
more than seven branches; and for each additional
hundred thousand dollars capital stock shall operate
not more than one additional branch: And provided
further, That before any savings, safe deposit, or
trust and savings bank' shall open a branch office
under the provisions of this act, said savings, safe
deposit, or trust and savings bank must first obtain
a certificate of authority from the State bank commissioner: And provided further, That whenever any
such banks shall have taken advantage of the provisions of this act and section, and shall have established one or more offices of discount and deposit
within the limits of said municipality or parish, no
future political or legal subdivision of said municipality or parish shall have the effect of in anywise
affecting the right of such banks aforesaid to continue
the existence, maintenance, and operation of any
such offices already established, nor shall any provisions contained in this act be construed as in anywise affecting the right of any sayings, safe deposit,
or trust and savings bank to continue the operation
and maintenance of such branch offices as may have
been lawfully established prior to the enactment of
this act." (Banking Laws, 1928, sec. 1, p. 237; Act
No. 146 of 1926, sec. 1.)

No provision regarding branches.—There is no
specific provision in the laws of Kentucky regarding
the establishment of branches. The Court of Appeals
of Kentucky has held, however, that in the absence of
such a provision it is not within the power of a State
bank to establish a branch bank, though it may have
MAINE
additional offices or agencies to receive deposits and
Trust and banking company branches authorized.—
pay checks or transact other necessary duties not
requiring special discretion or business acumen. (Bruner " N o trust company now or hereafter organized shall
v. Citizens Bank of Shelbymile, 120 S. W. 345; Marvin establish a branch or agency until it shall have received
a warrant so to do from the bank commissioner, who
v. Kentucky Title Trust Company, 291 S. W. 17.)
shall issue such warrant only when satisfied that public
convenience and advantage will be promoted by the
LOUISIANA
establishment of such branch or agencj^ * * *.
Branches authorized.—"Every increase or decrease, No trust company shall be permitted to establish a
modification, alteration, or addition to the capital or branch or agency except in its own or an adjoining
of the number of the shares, shall be submitted to a county." (Banking Laws, 1927, sec. 88, p. 56; Maine
general meeting of the stockholders, held after thirty P. L., 1923, ch. 144, sec. 88.)
days' notice by publication and by mail, and shall be
Capital requirements.—Trust companies are required
approved by two-thirds of the amount of the capital to have a capital varying with the place in which they
stock; and shall be executed, recorded and published are located. Trust companies with branches must
as provided for the original articles, which shall pro- have the capital required of trust companies located in
vide for the location in the parish or domicile of any a place with a population equal to the aggregate popubanking association of not more than two branch lation of the place in which the parent institutions are
offices: Provided, That no banking association or located and the population of all places in which its
savings bank with capital stock of less than $50,000 branches are located. (Banking LawTs, 1927, sec. 69,
may locate or operate branch offices; but this provision p. 46; sec. 88, p. 56; Maine P. L., 1923, ch. 144, sees.
shall not apply to existing branch offices." (Banking 69 and 88.)
Laws, 1928, sec. 7, p. 7; Act No. 184 of 1916, p. 420.)
MARYLAND
Trust and savings banks, savings banks, and safe
deposit companies.—"Any savings, safe deposit, or
Branch banks and trust companies authorized.—
trust and savings bank may have one or more as The laws of Maryland provide for the capital of
hereinbelow provided offices of discount and deposit branches established by banks and trust companies
within the limits of the municipality or parish in and, therefore, impliedly authorize the establishment of
which the said bank is located: Provided, That a branches by these institutions. The capital required
savings, safe deposit, or trust and savings bank of for the organization of a bank or trust company depends
fifty thousand dollars or more capital shall operate upon the size of the place in which such bank or trust
not more than one branch; or more than fifty thousand company is located. A bank hereafter establishing a
dollars, but not more than seventy-five thousand branch outside of the city, town, or village in which itdollars capital shall operate not more than two is located must increase its capital stock for each branch
branches; or more than seventy-five thousand dollars, so established to a sum equal to the amount required
but not more than one hundred thousand dollars for the organization of such bank and the organization

261

FEDERAL RESERVE BULLETIN

APRIL, 1930

of a bank in the place in which the branch is located.
A trust company establishing a branch outside of the
city, town, or village in which it is located must add to
the amount of capital stock required for its organization for each branch so established a certain enumerated
sum depending upon the size of the place in which the
branch is established. No "branch shall hereafter be
established" by any bank or trust company "in the
city, town, or village where said bank (or trust company) is now located, and engaged in business," until
said bank or trust company "conforms to the requirements * * *, as to the minimum amount of capital
stock for banks (or trust companies) in said city, town,
or village." (Banking.Laws, 1927, sec. 20, p. 7; sec. 42,
p. 19; 1924 Annotated Code of Maryland, art. 11, sec.
20, and sec. 42, as amended by acts of 1927, ch. 188,
sec. 42.)
MASSACHUSETTS

Branches of trust companies authorized.—"The
board of bank incorporation may authorize in writing
any such corporation to maintain cme or more branch
offices of the town where its main office is located:
Provided, That in any town the population of which
according to the last preceding State or National census
does not exceed fifty thousand not more than one such
branch, and in any town the population of which according to said census exceeds fifty thousand but does
not exceed one hundred thousand not more than two
such branches shall be so authorized." These restrictions do not applv to branch offices authorized prior to
January 2, 1928/ (Act of May 8, 1928.)
"Any office of a trust company the business of which
has been taken over under section forty-four by, or any
office of a national bank purchased by or merged in, a
trust company located in the same town, may be
maintained as a branch office of such corporation, if
in the opinion of the commissioner public convenience
will be served thereby." (Trust Company Laws, 1926,
sec. 46, p. 24; General Laws of Mass., ch. 172, p. 46.)
MICHIGAN

"Industrial bank" may establish branches.—"To
establish branch offices or places of business within the
city or village in which its principal office is located, but
not elsewhere." (Banking Laws, 1929, sec. 86, p. 49;
Mich. Pub. Acts, 1917, Act No. 296, sec. 4; Comp. Laws
of Mich., Cahill's 1922 Supplement, sec. 8032 (6).)
There is no specific provision in the laws of Michigan
with reference to the establishment of branches by
other banks.
MINNESOTA

Branches prohibited.—"No bank or trust company
organized under the laws of this State shall maintain
a branch bank or receive deposits or pay checks within
this Scate except at its own banking house, and the
superintendent of banks shall take possession of and
liquidate the business and affairs of any State bank or
trust company violating the provisions of this act in
the manner prescribed by law for the liquidation of
insolvent State banks and trust companies." (Banking
Laws, 1929, sec. 1, p. 24; Laws of 1923, ch. 170, sec. 1;
Mason's Minn. Statutes, 1927, sec. 7693.)

superintendent of banks shall believe the convenience
and interest of the public will be served he may permit
banks in cities of not less than ten thousand population
to establish branch offices within the corporate limits
of the city where the bank is domiciled, and such offices
shall not be considered branch banks within the meaning of section 261, Code of Mississippi of 1906. But an
established bank or branch bank may, with the consent
of the superintendent of banks, be removed from one
municipality to any other municipality." (Brown's
Miss, and Federal Banking Statutes, 1925, sec. 79, p.
79; ch. 174, Laws of 1924.)
Capital requirements.—Every parent bank operating
one or more branch banks shall set apart and devote
from its capital a sum of not less than ten thousand
dollars for the exclusive use of each of said branch
banks in its business, and the amount of the capital of
the parent bank employed by each branch bank shall
never at any time be less than the said amount of ten
thousand dollars. (Brown's Miss, and Federal Banking Statutes, 1925, sec. 80, p. 80; Heminway ; s Code,
sec. 3522.)
MISSOURI

Branch banks prohibited.—" * * * no bank shall
maintain in this State a branch bank, or receive deposits or pay checks except in its own banking house."
(Laws of Missouri, 1927, sec. 1 (11737), p. 220.)
Branch trust companies prohibited.—" * * * no
trust company shall maintain in this State a branch
trust company or receive deposits or pay checks except
in its own banking house." (Banking Laws, 1919, sec.
11799, p. 98; Rev. Stat. of Mo., 1919, sec. 11799, p.
3702.)
MONTANA

Branch banks prohibited.—"No bank shall maintain any branch bank, receive deposits, or pay checks,
except over the counter of and in its own banking
house: Provided, That nothing in this section shall
prohibit ordinary clearing-house transactions between
banks." (Banking Laws, 1927, sec. 101, p. 58; Laws
of 1927, ch. 89, sec. 101.)
NEBRASKA

Branch banks prohibited.—"No bank shall maintain any branch bank, receive deposits, or pay checks,
except "over the counter of and in its own banking
house: Provided, Nothing in this section shall prohibit
ordinary clearing-house transactions between banks."
(Banking Laws, 1929, sec. 1, p. 45; Laws of Nebraska,
1927, p. 153.)
NEVADA

Branches prohibited.—" * * * No bank in this
State shall hereafter open or maintain any branch bank
or office * * *." (Banking Laws, 1927, sec. 8,
p. 6; Rev. Laws of Nevada, 1912, sec. 623.)
"Bank" defined.—"The words 'corporation,' 'banking corporation/ 'bank,' 'trust company,' or 'banker,'
as used in this act, shall refer to and include banks,
savings banks, and trust companies, individuals, firms,
associations, and corporations of any character conducting the business of receiving money on deposit or
otherwise carrying on a banking or trust company
business, except as herein specially provided." (BankMISSISSIPPI
ing Laws, 1927, sec. 75, p. 23; Rev. Laws of Nevada,
Branches in same city authorized.—"The creation or 1912, sec. 690.)
organization of any branch bank in this State shall be
NEW HAMPSHIRE
and the same is prohibited and forbidden, and no
No provision concerning branches.—There is no
branch bank shall be hereafter established in this
State, and no parent bank chartered under the laws of specific provision in the laws of New Hampshire regardthis State shall establish any branch bank either within ing the establishment of branches by banks or trust
or without the State: Provided, however, That when the companies.

262

FEDERAL RESERVE BULLETIN
NEW JERSEY

Bank and trust company branches authorized.—
" Banks (other than savings banks) and trust companies, organized under the laws of this State, ma3^
establish and maintain branch offices or agencies for
the transaction of their business, with the approval in
writing of the commissioner of banking and insurance,
which approval shall be given by him only if it shall
appear to him that the establishment of such branch
office or agency will be of public service; * * *."
(Banking Laws, 1928, sec. 15, p. 136; Laws of 1925,
ch. 27, p. 85, as amended by Laws of 1927, ch. 20, p. 54.)
Detailed provision is also made for obtaining the
consent of the commissioner of banking and insurance
to establish branches. (1929 Laws Relating to Banks
and Trust Companies, p. 20; Laws of 1929, ch. 294, p.
686.)
Capital requirements.—The commissioner of banking and insurance shall not give his approval to the
establishment of branch offices or agencies " unless the
capital of such bank actually paid in in cash shall exceed the amount required by law for the incorporation
of a bank, to the extent of fifty thousand dollars, and
the capital of such trust company actually paid in in
cash shall exceed the amount required by law for the
incorporation of a trust company, to the extent of one
hundred thousand dollars for each branch office or
agency so established; * * *." (Banking Laws,
1928, 'sec. 15, p. 137; Laws of 1925, ch. 27, p. 85, as
amended by Laws of 1927, ch. 20, p. 54.)
Establishment and number of branches restricted.—
The approval of the commissioner of banking and insurance shall not "be given for the establishment of
any such branch office or agency outside the city, town,
township, borough, or village in which such bank or
trust company is located, nor shall any bank or trust
company maintain and operate a branch office or
agency within the corporate limits of a city, town,
township, borough, or village where the population
by the last decennial census is ]ess than twenty-five
thousand; nor more than one such branch where such
population by said census is more than twenty-five
thousand and not more than fifty thousand; nor more
than two such branches where such population by said
census is more than fifty thousand and not more than
one hundred thousand, and where such population by
said census is more than one hundred thousand the
number of such branches shall be such as may be determined by the commissioner of banking and insurance: Provided, That nothing in this act contained
shall prevent the maintenance of any branch office or
agency heretofore lawfully established." (Banking
Laws, 1928, -sec. 15, p. 137; "Laws of 1925, ch. 27, p. 85,
as amended by Laws of 1927, ch. 20, p. 54.)
Merger of banks and trust companies.—Banks and
trust companies may merge each with the other and
branches resulting from such merger may be continued
under certain conditions. (Banking Laws, 1928, sec.
11, p. 55; sec. 19, p. 59; sec. 19, p. 108; sec. 27, p. 112;
sec. 18 (1), p. 139; sec. 18 (9), p. 143; Laws of 1925.
chs. 197, 198, and 203; Laws of 1927, ch. 14, p. 39; ch.
21, p. 55.)
Savings bank branches authorized.—"Any savings
bank incorporated under the laws of this State may
establish, with the written approval of the commissioner of banking and insurance, and maintain branch
offices or agencies for the transaction of its business:
Provided, That the approval of the commissioner of
banking and insurance shall be given by him only if
he shall be of the opinion that the establishment of
such branch office or agency will be beneficial to the

APRIL,

1930

public; * * *." (Act approved Mar. 7, 1927; Laws
of 1927, ch. 34, p. 75.)
Capital requirements.—u And "provided, That any
savings bank establishing such branch office or agency
shall have, according to its last annual report, a surplus
of not less than five per centum of the amount of its
deposits, and, in addition, fifty thousand dollars of
surplus for each branch office or agency established,
over and above said five per centum of the amount of
deposits; * * *." (Act approved Mar. 7, 1927;
Laws of 1927, ch. 34, p. 75.)
Establishment and number of branches restricted.—
<** * * Anci provided further, That such branch
office or agency shall be established only within the
corporate limits of the municipality (other than county)
in which such savings bank is located: And provided
further, That no such branch office or a^H$£ shall be
established in any municipality (othe^^llan county)
if the population thereof be less than twenty-five
thousand, according to the latest decennial, State or
Federal census, and not more than one such branch
office or agency shall be established by any such savings
bank if the population of the municipality wherein
the same is located be, according to such census, less
than fifty thousand, and no more than two such branch
offices or agencies shall be established by such savings
bank if the population of such municipality, according
to such census, be less than one hundred thousand."
(Act approved Mar. 7, 1927; Laws of 1927, ch. 34, p. 75.)
Savings-bank branches resulting from mergers or
consolidations.—" The merged or consolidated savings
bank may continue to maintain branch offices or
agencies for the transaction of its business established
pursuant to law by either or both of the merging or
consolidating savings banks." (New Jersey Laws of
1929, ch. 1, sec. 7, p. 844.)
Savings branch office buildings may be acquired.—
"Any savings bank may acquire and hold a lot or lots
whereon are erected or may be erected building or
buildings requisite for the convenient transaction of
the business of any such branch offices or agencies and
from portions of which, not required for its own use,
revenue may be derived, subject, however, to the
restriction and limitations contained in section thirtythree of an act entitled 'An act concerning savings
bank/ approved May second, nineteen hundred and
six; or may lease space for the transaction of such
business." (Banking Laws, 1925, sec. 81, p. 28; Laws
of 1925, ch. 228, sec. 2, p. 552.)
Savings branch office may be discontinued.—"Any
savings bank may discontinue any such branch office
or agency with the written approval of the commissioner of banking and insurance, and upon such prior
public notice as he shall prescribe." (Banking Laws,
1925, sec. 82, p. 28; Laws of 1925, ch. 228, sec. 3, p.
552.)
NEW MEXICO

Branches prohibited.—"Every bank shall be conducted at a single place of business, and no branch
thereof shall be maintained elsewhere: Provided, however, That nothing herein contained shall be construed
to prohibit any mercantile corporation which maintains a banking department in accordance with the
provisions of this act, from receiving deposits and
buying and selling exchange at any of its branch
stores." (Bank Code, 1929, sec. 47, p. 18; Laws of
1915, ch. 67, sec. 47.)
"Bank" denned.—"The word 'bank 7 as used in
this act includes every person, firm, company, copartnership, or corporation, except national banks, engaged
in the business of banking in the State of New Mexico.

APRIL,

1930

FEDERAL RESERVE BULLETIN

263

Banks are divided into the following classes: (a) Com- of this article for each branch opened." (Banking Law,
mercial banks; (b) savings banks; and (c) trust com- sec. 195.)
panies." (Bank Code, 1929, sec. 2, p. 5; Laws of
The approval of the superintendent of banks of an
1915, ch. 67, sec. 2.)
application by a trust company for leave to open a
branch office is made dependent upon whether or not
NEW YORK
he considers that "the granting of such application is
Branch offices of State banks authorized within city expedient and desirable" after he has made "such
limits.—"No bank, or any officer or director thereof, investigation as he may deem necessary to ascertain
shall transact its usual business of banking at any whether the public convenience and advantage will be
place other than its principal place of business, except promoted by the opening of such branch office."
that a bank in a city which has a population of more (Banking Law, sec. 51.)
than 50,000 may open and occupy in such city one or
Capital requirements.—Before branches may be esmore branch offices for the receipt and payment of tablished by a trust company, its actual paid-in capital
deposits and for making loans and discounts to cus- must exceed by $100,000 for each branch opened the
tomers of such respective branch offices only: Provided, following amounts (Banking Law, sec. 195):
That before any such branch or branches shall be
" (a) One hundred thousand dollars, if the place
opened or occupied:
where its business is to be transacted is an incorporated
" 1 . The superintendent shall have given his written or unincorporated village or city the population of
approval, as provided in section fifty-one of this chap- which does not exceed twenty-five thousand.
" (b) One hundred and fifty thousand dollars, if the
ter:
"2. The actual paid-in capital of such bank shall place where its business is to be transacted is a city the
exceed by the sum of one hundred thousand dollars the population of which exceeds twenty-five thousand but
amount required by section one hundred of this article does not exceed one hundred thousand.
for each branch opened since the twenty-seventh day
" (c) Two hundred thousand dollars, if the place
of April, nineteen hundred and eight; and by the sum where its business is to be transacted is a city the popof fifty thousand dollars for each branch opened pre- ulation of which exceeds one hundred thousand but
vious to said date and hereafter maintained/' (Bank- does not exceed two hundred and fifty thousand.
ing Law, sec. 110.)
" (d) Five hundred thousand dollars, if the place
The approval of the superintendent of banks of an where its business is to be transacted is a city the popapplication by a State bank for leave to open a branch ulation of which exceeds two hundred and fifty thouoffice is made dependent upon whether or not he con- sand." (Banking Law, sec. 180.)
siders that "the granting of such application is expeSavings bank branches authorized in cities of "first
dient and desirable" after he has made "such investiga- class.''—"2. No savings bank, or any officer or director
tion as he may deem necessary to ascertain whether the thereof, shall transact its usual business at any place
public convenience and advantage will be promoted by other than its principal place of business without the
the opening of such branch office." (Banking Law, written permission of the superintendent of banks,
sec. 51.)
given as provided in subdivision three of this section,
Capital requirements.—Before any branch or except that it may, provided the merger agreement so
branches may be established by a State bank the actual provides, continue to occupy and maintain as a branch
paid-in capital of an applying bank must exceed by the office, the place of business occupied and maintained
amounts as set out in the provision quoted above, for at the time of the merger by any savings bank which
each branch opened, the following amounts. (Bank- it has received into itself by merger pursuant to article
twelve of this chapter.
ing Law, sec. 110.)
" 3 . Upon written approval of the superintendent of
" (a) Twenty-five thousand dollars, if the place
where its business is to be transacted is an incorporated banks, given as provided in this subdivision, a savings
or unincorporated village the population of which does bank, located in a city of the first class (city of 175,000
or more inhabitants) may open and occupy within said
not exceed two thousand.
" (b) Fifty thousand dollars, if the place where its city one branch office, and if such city comprises more
business is to be transacted is an incorporated or unin- than one county or borough, such branch office may be
corporated village or a city the population of which located only in the same county or borough in which its
exceeds two thousand but does not exceed thirty main office is located. * * * The superintendent
shall ascertain by such investigation as he may deem
thousand.
" (c) One hundred thousand dollars, if the place necessary, whether or not public convenience and
where its business is to be transacted is a city the pop- advantage will be promoted by the opening of such
ulation of which exceeds thirty thousand." (Banking branch office. * * *." (Banking Law, sec. 245.)
ProAision is made for obtaining the authorization of
Law, sec. 100.)
Trust company branch offices authorized within the superintendent of banks to establish branch offices
city limits.—"No trust company, or any officer or of savings banks. (Banking Law, sec. 245.)
Savings and loan associations authorized to establish
director thereof, shall transact its usual business at any
place other than its principal place of business, except one "station."—"A savings and loan association
that a trust company may open and occupy in the city located in a city which has a population of more than
in which its principal place of business is located one or thirty thousand may open and maintain in said city
more branch offices, provided that before any such one station for the payment of dues and withdrawals
and the payment of interest, premium, fees, and fines
branch or branches shall be opened or occupied:
" 1 . The superintendent shall have given his written by its members and payments upon the principal of
approval, as provided in section fifty-one of this loans by its borrowing members, provided that before
chapter.
I any such station shall be opened or maintained:
"2. The actual paid-in capital of such trust company • " 1 . Its board of directors shall submit to the supershall exceed by the sum of one hundred thousand dollars j intendent a written application setting forth the reasons
the amount required by section one hundred and eighty ; therefor and the location of such station.
103025—30
9

264

FEDERAL RESERVE BULLETIN

APRIL,

1930

"2. The superintendent shall have given his written after be organized under the general corporation laws of
this State, which is engaged in lending money to be
approval thereto." (Banking Law, sec. 403.)
repaid in weekly pr monthly or other periodical installments, or principal sums, as a business: Provided,
NORTH CAROLINA
however, This definition shall not be construed to
Branches authorized.—"Any bank doing business include building and loan associations or commercial
under this act may establish branches in the cities in or savings banks." (Banking Laws, 1927, sec. 225 (a),
which they are located, or elsewhere, after haying first p. 41; North Carolina Code, Annotated Edition, 1927,
obtained the written approval of the corporation com- sec. 225 (a).)
mission, which approval may be given or withheld by
NORTH DAKOTA
the corporation commission, in its discretion, and
No provision concerning branches.—There is no
shall not be given until it shall have ascertained to its
satisfaction that the public convenience and advantage specific provision in the laws of North Dakota regardwill be promoted by the opening of such branch." ing the establishment of branches.
(Banking Laws, 1927, sec. 220 (r), p. 26; North Carolina
Code, Annotated Edition, 1927, sec. 220 (r).)
OHIO
Capital requirements.—"Provided, That the corporaBranch banks authorized.—"No branch bank shall
tion commission shall not authorize the establishment
of any branch, the paid-in capital stock of whose parent be established until the consent and the approval of
bank is not sufficient in an amount to provide for the the superintendent of banks has been first obtained,
capital of at least twenty-five thousand dollars for the and no bank shall establish a branch bank in any place
parent bank, and at least twenty-five thousand dollars other than that designated in its articles of incorporafor each branch which it is proposed to establish in tion, except in a city or village contiguous thereto.
cities or towns of three thousand population or less; If such consent and approval is refused, an appeal may
nor less than thirty thousand dollars in cities and towns be taken therefrom in the same manner as is provided
whose population exceeds three thousand but does not in section 45 of this act." (Banking Laws, 1928,
exceed ten thousand; nor less than fifty thousand dollars sec. 710-73, p. 28.)
"Bank" defined.—"The term 'bank' shall include
in cities and towns whose population exceeds ten thousand but does not exceed twenty-five thousand; nor any person, firm, association, or corporation soliciting,
less than one hundred thousand dollars in cities and receiving or accepting money, or its equivalent, on
towns whose population exceeds twenty-five thousand. deposit as a business, whether such deposit is made
All banks operating branches prior to February 18, subject to check or is evidenced by a certificate of de1921, shall, within a time limit to be prescribed by the posit, as passbook, a note, a receipt, or other writing,
corporation commission, cause said branch bank to and unless the context otherwise requires as used in
conform to the provisions of this section." (Banking this act includes commercial banks, savings banks,
Laws, 1927, sec. 220 (r), p. 26; North Carolina Code, trust companies, and unincorporated banks; provided
that nothing herein shall apply to * * * building
Annotated Edition, 1927, sec. 220 (r).)
"Bank" denned.—"The term 'bank' when'used in and loan associations or title guarantee and trust comthis act shall be construed to mean any corporation, panies incorporated under the laws of this State."
partnership, firm, or individual receiving, soliciting, or (Banking Laws, 1928, sec. 710-2, p. 5.)
accepting money or its equivalent on deposit as a
OKLAHOMA
business: Provided, however, This definition shall not be
construed to include building and loan associations,
No
provision
concerning
is no
Morris plan companies, industrial banks or trust com- specific provision in the lawsbranches.—There
of
Oklahoma
regarding
panies not receiving money on deposit." (Banking the establishment of branch banks.
Laws, 1927, sec. 216 (a) p. 3; North Carolina Code,
Annotated Edition, 1927, sec. 216 (a).)
"Industrial bank" branches authorized.—Every
industrial bank is given the power "to establish branch
Branches prohibited.—" Xo bank or trust company
offices or places of business within the county in which or any officer or director, agent or employee thereof,
its principal office is located, and elsewhere in the State, shall open or maintain any branch in this State or
after having first obtained the written approval of the receive deposits or pay checks other than at its princicorporation commission, which approval may be given pal place of business: Provided, That this section shall
or withheld by the corporation commission in its dis- not apply to branch banks or trust companies now
cretion: Provided, That the corporation commission existent or authorized to do business in this State as a
shall not authorize the establishment of any branch the foreign bank or trust company, under the provisions of
paid-in capital of whose parent bank is not sufficient in this act: Provided further, That every such foreign
an amount to provide for the capital of at least $25,000 branch bank or trust company shall hereafter in every
for the parent bank and at least twenty-five thousand respect be governed by and comply with the provisions
dollars ($25,000) for each branch which it is proposed of this act to the same extent as other State banks or
to be established in cities or towns of fifteen thousand trust companies now organized and doing business in
population or less; nor less than fifty thousand dollars this State: Provided, That any State bank may effect
($50,000) in cities or towns whose population exceeds a consolidation on the same terms and conditions now
fifteen thousand but does not exceed twenty-five or hereafter permitted to national banks." (Banking
thousand; nor less than one hundred thousand dollars Laws, 1925, sec. 113, p. 44; General Laws of Oregon,
($100,000) in towns whose population exceeds twenty- 1925, ch. 207, sec. 113.)
five thousand." (Banking Laws, 1927, sec. 225 (f),
p. 42; North Carolina Code, Annotated Edition, 1927,
PENNSYLVANIA
sec. 225 (f).)
General
establishment
of branches prohibited.—" No
"Industrial bank" defined.—''The term 'industrial bank/ as used in this act, shall be construed to bank, banking company, banking institution, savings
mean any corporation organized, or which may here- bank, trust company, title insurance company, or

APRIL. 1930

other corporation now or hereafter authorized to receive deposits or to carry on a banking or trust business,
whether incorporated under the laws of Pennsylvania
or of any other State or of the United States of America, * * * shall establish, maintain, or operate,
either directly or indirectly, any branch bank, branch
office, agency, suboffice, subagency, or branch place
of business, within the Commonwealth of Pennsylvania,
for the transaction of any part of its * * * business, but all of the business of such corporation,
* * * shall be carried on solely and exclusively at
its * * * principal place of business." (Act approved April 27, 1927, Laws of Pennsylvania, 1927,
sec. 1, p. 400).
Exception—Establishment permitted within corporate limits of places where national banks were operating branches on March 1, 1927.—"This act shall not
apply to any bank, banking company, banking institution, savings bank, trust company, title insurance
company, % or other corporation, now or hereafter
authorized to receive
deposits or carry on a banking or
trust business, wThether incorporated under the laws of
Pennsylvania or of any other State or of the United
States of America, * * * which has its * * *
principal place of business in a city, borough, or township within the Commonwealth of Pennsylvania, in
which one or more national banking associations,
* * * was, on March 1, 1927, operating one or
more branch banks, branch offices, agencies, suboffices,
subagencies, or branch places of business, for the transaction of any part of its business; and any such corporations * * * may hereafter establish, subject to
the approval of the secretary of banking, and thereafter
maintain and operate branch banks, branch offices,
agencies, suboffices, subagencies, and branch places of
business for the transaction of any part of its * * *
business, but only within the corporate limits of the
city, borough, or township in which its principal office
is located and in which such national banking association was, on March 1, 1927, operating one or more
branch banks, branch offices, agencies, suboffices, subagencies, or branch places of business. The right to
establish and maintain branch banks, branch offices,
agencies, suboffices, subagencies, or branch places of
business, under the provisions of this section, shall be
limited to the territory included within the corporate
limits on March 1, 1927, of the respective cities, boroughs, or townships in which such national banking
associations were on that date operating one or more
branch banks, branch offices, agencies, suboffices, subagencies, or branch places of business as aforesaid;
and such right shall not extend to additional territory
which may, after March -1, 1927, be added to such
cities, boroughs, or townships, by annexation, consolidation with one or more municipal corporations or
otherwise, nor shall it extend to other portions or divisions of municipal corporations to which such cities,
boroughs, or townships may be annexed, or with which
they may be consolidated after that date; the intention
being to limit to the respective corporate limits of such
cities, boroughs, or townships as they existed on March
1, 1927, the right to establish and maintain the branch
banks, branch offices, agencies, suboffices, subagencies,
and branch places of business authorized in this section."
(Act approved April 27, 1927, Laws of Pennsylvania,
1927, sec. 3, p. 401.)
Other exceptions are that the act does not apply
to branches established or for which locations had been
secured prior to March 1, 1927, or to branches resulting from consolidations of banks effective prior to
April 1, 1927; "and such corporations * * * shall
have the right to relocate the same within the corporate
limits of the city, borough, or township in which the

265

FEDERAL RESERVE BULLETIN

principal place of business is located at the time of
such relocation, subject to the approval of the secretary
of banking." (Act approved April 27, 1927, Laws of
Pennsylvania, 1927, sec. 2, p. 400.)
RHODE ISLAND

Branches authorized.—" Any bank or trust company
may establish a branch or branches within this State
at any other place than its principal place of business
upon obtaining the consent of the board of bank incorporation thereto. * * *" (Banking Laws, 1929,
sec. 9, p. 6; General Laws, 1923, ch. 269, sec. 9.)
Detailed provision is also made for obtaining the
consent of the board of bank incorporation to establish
branches. (Banking Laws, 1929, sec. 9, p. 6; General
Laws, 1923, ch. 269, sec. 9.)
SOUTH CAROLINA

Branch banks authorized by implication. " * * *
for each branch bank that is established the parent
bank must have a total unimpaired capital of at least
twenty-five thousand ($25,000.00) dollars above the
minimum requirements herein set forth." (Banking
Laws, 1928, sec. 20, p. 11, Acts of 1928, ch. 701, sec. 2.)
Provision is also made for the publication of statements of the assets and liabilities of branch banks or
offices, for the examination of branch banks, and for
the taxation of banks having branches. (Banking
Laws, 1928, sec. 61, p. 29; sec. 86, p. 45; sec. 106,
p. 54; Code of 1922, sections 3984, 3989; act approved
March 21, 1924, p. 1116, Acts of 1924.)
SOUTH DAKOTA

No provision regarding branches.—There is no specific provision in the laws of South Dakota regarding
the establishment of branch banks.
TENNESSEE

Branches authorized in county where located.—
"That no corporation, firm, or individual now or hereafter doing or carrying on a banking business in the
State of Tennessee shall have, maintain, create, or
operate any branch bank, office, or agency, for the
purpose of receiving deposits, paying checks, making
loans, or receiving or discounting bills or notes in any
place whatsoever other than the county of this State
wherein such banking business is carried on." (Act
approved April 6, 1925, sec. 3.)
TEXAS

Branch banks prohibited.—" No banking corporation
organized under the laws of this State shall ever engage
in business at more than one place, which shall be
designated in its charter. No such corporation shall
maintain a branch bank, receive deposits or pay checks
except in its own banking house. County or State
depositories or county depositories not located at the
county seat, and ordinary clearing house transactions
between banks, are not affected by this article."
(Banking Laws, 1929, art. 538, p. 51.)
UTAH

Branches prohibited.—"The business of every banking institution shall be conducted only at its banking
house, and no bank in this State or any loan, trust, or
guaranty company or trust company conducting a
banking business, or any officer, director, or agent
thereof, shall open, establish, or maintain any branch

266

FEDERAL RESERVE BULLETIN

bank or office, and shall receive deposits and pay checks
only at its banking house: Provided, That all branch
banks or offices in operation at the time of the approval
of this chapter shall be closed and discontinued within
one year from the date this chapter goes into effect."
(Banking Laws, 1927, sec. 1005, p. 12; Comp. Laws of
Utah, 1917, title 19, ch. 6, sec. 1005.)

APRIL, 1930

WASHINGTON

No provision regarding branches but ''agencies"
authorized.—"SECTION 1. Before a savings bank, trust
company or a savings bank and trust company opens an
agency of such corporation it shall petition the bank
commissioner to hold a public hearing in the town where
the proposed agency is to be located, to determine
whether the establishment and maintenance thereof
will promote the general good of the State. * * *
If after the hearing said commissioner finds and adjudges that the establishment and maintenance of the
proposed agency will promote the general good of the
State, he shall give said bank a certificate to that effect
under his seal. A savings bank, trust company or
savings bank and trust company shall not operate
any agency not certified by said commissioner as
herein provided."
" S E C . 2. An agency of a bank in operation prior to
February 1, 1929, permission to operate such agency
having been procured from the commissioner of banking and insurance, shall be permitted to continue."
(Act of March 13, 1929.)

Branches prohibited.—"* * * nor shall any
bank or trust company establish any branch. The
practice of collecting or receiving deposits or cashing
checks at any place or places other than the place where
the usual business of a bank or trust company and its
operations of discount and deposits are carried on shall
be held and construed to be establishing a branch:
* * *." (Banking Laws, 1929, sec. 25, p. 12; Laws
1919, sec. 7, p. 730.)
Definition of "bank."—"The term 'bank/ where
used in this act, unless a different meaning appears
from the context, means any corporation organized
under the laws of this State engaged in banking, other
than a trust company or a mutual savings bank."
(Banking Laws, 1929, sec. 24, p. 11; Laws 1917, sec.
14, p. 275.)
Definition of "branch."—"The term 'branch bank,'
where used in this act, means any office of deposit or
discount maintained by any bank or trust company,
domestic or otherwise, other than its principal place
of business, regardless of whether it be in the same city
or locality." (Banking Laws, 1929, sec. 24, p. 11;.
Laws 1917, sec. 14, p. 275.)
Mutual savings bank branches.—"No (mutual)
savings bank or any officer or director thereof shall
receive deposits or transact any of its usual business at
any place other than its principal place of business."
(Banking Laws, 1929, sec, 181, p. 84; Laws 1925, Ex.
Ses., sec. 10, p. 107.)

VIRGINIA

WEST VIRGINIA

VERMONT

Branches authorized.—"No bank or trust company
heretofore or hereafter incorporated under the laws
of this State shall be authorized to engage in business
in more than one place, except that, in its discretion
the State corporation commission may authorize banks
having a paid-up and unimpaired capital and surplus
of fifty thousand dollars or over to establish branches
within the limits of the city, town, or village in which
the parent bank is located or in other cities having a
population of not less than fifty thousand inhabitants.
This section, however, shall not apply to branch banks
already established, and this section shall not be construed to prohibit the merger of two banks in the same
or adjoining counties and the operation by the merged
company of the two banks. But any branch bank
heretofore or hereafter established shall not be operated
or advertised under any other' name than that of the
identical name of the home bank, unless permission be
first had and obtained from the State corporation commission, and unless such different name shall contain
or have added thereto language clearly indicating that
it is a branch bank and of what bank it is a branch.
Any bank or trust company violating the provisions of
this section shall be liable to a fine of one thousand
dollars, to be imposed and judgment entered therefor
by the State corporation commission, and enforced by
its process." (Banking Laws, 1929, sec. 4149 (14),
p. 30; Acts of 1928, ch. 507, sec. 13.)

Branch banking prohibited.—"No banking institution chartered and authorized to engage in business
hereunder shall hereafter install any branch bank, or
engage in business at any place other than at its principal office in the State of West Virginia; * * *."
(1929 S. L., ch. 23, sec. 5, p. 113.)
WISCONSIN

Branch banks prohibited.—"* * * but no bank
shall establish more than one office of deposit and discount or establish branch offices or branch banks,
provided that this prohibition shall not apply to any
branch office or bank established prior to May 14, 1909."
(Banking Laws, 1927, sec. 221.04 (1-f), p. 28; Wisconsin Statutes, 1927, sec. 221.04 (1-f).)
Branch trust companies prohibited.—"* * * nor
shall such corporation (trust company bank) establish
more than one office of deposit nor establish nor maintain branches." (Banking Laws, 1927, sec. 223.06,
p. 59; Wisconsin Statutes, ch. 223.)
WYOMING

No provision covering branches.—There is no specific
provision in the laws of Wyoming in regard to the
establishment of branch banks.

APRIL,

267

FEDERAL RESERVE BULLETIN

1930

CHANGES IN MEMBERSHIP
STATE BANK MEMBERSHIP

NATIONAL BANK MEMBERSHIP

The following list shows the changes affecting (State
The following list showTs reported changes (except
bank membership during the month ended March 21, suspensions and insolvencies) affecting national bank
1930, on which date 1,111 State institutions were mem- membership, concerning which information became
bers of the svstem:
available between February 25 and March 24, 1930:
Capital

Date

$1, 500,000

1930
Mar. 15

N o . 1—BOSTON

1930
Mar. 15

Capital

Federal reserve district-

American Trust Co., Boston, M a s s .
Consolidated with First National Bank of
Boston.

First National Bank, Boston, Mass
$43,500,000
American Trust Co., member
1,500,000
Consolidated under charter and title of First
National Bank
I 44,500,000

No. 2—NEW YORK
No. 2—NEW YORK

Mar. 24

State Bank of Endicott, Endicott, N . Y., title
changed to Endicott Trust Co.

Mar. 22

Niagara National Bank, Buffalo, N . Y._
Primary organization.

Mar.

First National Bank, Roebling, N. J., title
changed to First National Bank & Trust Co.
Terre Hill National Bank, Terre Hill, Pa._
Absorbed by Blue Ball National Bank, Blue
Ball, Pa.
First National Bank, Wrightstown, N. J
Absorbed by First National Bank & Trust
Co., New Egypt, N. J.
Gap National Bank, Gap, Pa., title changed to
Gap National Bank & Trust Co.

300,000

N o . 3—PHILADELPHIA
N o . 3—PHILADELPHIA

Mar.

Port Carbon State Bank, Port Carbon. Pa
Voluntary withdrawal.
No.

Mar. 10

50,000
1
7

4—CLEVELAND

Union Trust Co., Dayton, Ohio
Admitted to membership; a merger of City
National Bank & Trust Co. and Dayton
Savings & Trust Co., a nonmember.
Fayette Title & Trust Co., Uniontown, Pa_
Admitted to membership.
Union Bank & Savings Co., Bellevue, Ohio
Admitted to membership; a merger of Wright
Banking Co., a member, and Bellevue Savings Bank Co., a nonmember.

1, 500,000
13
15

150, 000

No. 4—CLEVELAND

Feb. 28
Mar.

Mar.

7
12

Orrville Bank & Trust Co., Orrville, Ala
Closed.
Exchange Bank, Cordele, Ga
Closed.
Algiers Trust & Savings Bank, New Orleans, La_
Absorbed by Whitney Trust & Savings Bank,
a nonmember.

100, 000
200, 000

Iowa State Bank, Osceola, Iowa
Voluntary withdrawal.

50, 000

Mar.

American Exchange Trust Co., Little Rock, Ark._
Admitted to membership; a merger of American Southern Trust Co., a member, and
Exchange National Bank of Little Rock.
Mississippi Valley Merchants State Trust Co.,
St. Louis, Mo., title changed to Mississippi Valley Trust Co.

1, 000, 000

Mar.

Farmers & Merchants Bank, Odessa, Wash
Succeeded by Security State Bank, nonmember.
First State Bank, LaCrosse, Wash., amember
And Security State Bank, LaCrosse, Wash., a
member—
Consolidated under title of First State Bank,
member

W allins National Bank, Wallins Creek, Ky
Absorbed by Harlan National Bank, Harlan,
Ky.
First National Bank, Ligonier, Pa
National Bank of Ligonier
Merged under new charter and title of Ligonier National Bank
City National Bank & Trust Co., Dayton, Ohio.
Succeeded by Union Trust Co., member.

25,000
25,000
50,000
125, 000
750,000

Front Royal National Bank, Front Royal, Va..-j
Succeeded by Citizens National Bank..
Farmers National Bank, Tazewell, Va.._
Absorbed by Farmers Bank of Clinch Valley, Tazewell, Va., nonmember.
Peoples First National Bank, Charleston, S. C_—
Succeeded by Peoples State Bank of South
Carolina, nonmember.

50,000
60,000
100,000
1,000,000

N o . 6—ATLANTA

Mar.

100, 000

25,000
32,000

First National Bank, Fort Games, Ga
Union Savings Bank, nonmember
Consolidated under charter and title of First
National Bank
Citizens National Bank, Barnesville, Ga
Absorbed by First National Bank.
First National Bank, Fairfield, Ala., title changed
to Fairfield American National Bank.
Snell National Bank, Winter Haven, Fla__
Primary organization.

50,000
27,150
50,000
50,000

200,000

N o . 7—CHICAGO

N o . 12—SAN FRANCISCO

Feb. 24

Feb. 25

N o . 11—DALLAS

Feb. 22
Mar.

N o . 8—ST. LOUIS

Citizens State Bank, Greenville, Tex., a member,.
Absorbed the First National Bank of Merit,
Tex
First State Bank, Bomarton, Tex
Withdrawal.

N o . 5—RICHMOND

Jan. 20

Mar. 12

35,000

No. 7—CHICAGO

25,000

150, 000

No. 6—ATLANTA

Feb. 28

40,000

Feb. 20
25,000
26
60,000

30,000
60,000

First National Bank, Winterset, Iowa
Absorbed by Winterset Savings Bank, nonmember.
First National Bank, Flint, Mich., title changed
to First National Bank & Trust Co.
National Bank of Bloomfield, Iowa
_.
Absorbed by State Bank of Davis County,
Bloomfield, Iowa, nonmomber.
Commercial National Bank, Union City, Ind
Succeeded by Commercial Bank & Trust
Co., nonmember.

50,000

55,000
50, 000

268

FEDERAL RESERVE BULLETIN

APRIL, 1930

CHANGES IN MEMBERSHIP—Continued

NATIONAL BANK MEMBERSHIP—Continued

NATIONAL BANK MEMBERSHIP—Continued
Date

Federal reserve district

Date

Federal reserve district

No. 7—CHICAGO—Continued
1930
Mar. 1

Security National Bank, Grand Rapids, Mich___
Primary organization.
First National Bank, Sterling, 111
_
Sterling National Bank
_
Consolidated under charter of First National
Bank and under title of First Sterling National Bank
-_
First National Bank, New London, Wis
Bank of New London, nonmember
Consolidated under charter and title of First
National Bank
First National Bank, Ripon, Wis
American National Bank
Consolidated under charter and title of First
National Bank
National Bank of Commerce, Milwaukee, Wis._Second Wisconsin National Bank
Consolidated under charter and title of National Bank of Commerce.-.

No. 11—DALLAS

$500,000
200,000
100,000

1929
Dec. 31
1930
Jan. 15

200, 000

50, 000
30,000

75,000
100,000
100,000

Feb. 28
Mar. 4

300,000

1,000,000

200,000

1,000,000
18

N o . 8.—ST. LOUIS

Exchange National Bank, Little Rock, Ark
American Southern Bank & Trust Co., member..
Consolidated under the new charter and title
of American Exchange Trust Co., member.
Mar. 3 First National Bank & Trust Co Owensboro,
Ky
_
Voluntary liquidation.
11 Mercer National Bank, Harrodsburg, K y
First National Bank
Consolidated under charter of Mercer National Bank and under title of First Mercer
National Bank
Feb. 21

400,000

1, 000, 000

1930
Feb. 11
15
18
27
Mar. 8

100, 000
50, 000

Feb. 26
Mar. 1
18

150, 000

First National Bank, Canby, Minn
Absorbed by Bank of Canby, nonmember.

25, 000

First National Bank, Reeder, N . Dak
Absorbed by First State Bank, nonmember.
First National Bank, Montpelier, N . Dak
Absorbed b y Montpelier State Bank, nonmember.
First National Bank, Lanesboro, M i n n .
Absorbed b y Scanlan-Habberstad Bank &
Trust Co., nonmember.
First National Bank, Iona, Minn
Absorbed by Murray County State Bank,
Slayton, Minn., nonmember.
First National Bank in Neche, N . Dak
Succeeds First National Bank of Neche.

25, 000

1930
Feb. 18
24

27
Mar. 5
7

Live Stock National Bank, Pawimska, Okla
Voluntary liquidation.
Depew National Bank, Depew, Okla
Absorbed by State National Bank.
Oklahoma National Bank, Chickasha, Okla
Chickasha National Bank.
Consolidated under charter and title of
Oklahoma National Bank..
Cattle National Bank, Seward, Nebr
Conversion of State Bank of Nebraska,
Seward, Nebr., nonmember.
First National Bank, Glenvil, Nebr
_.
Conversion of State Bank of Glenvil, nonmember.
Farmers & Merchants National Bank, Ashland,
Nebr
Conversion of Farmers & Merchants Bank,
nonmember.
First National Bank, Victoria, Kans
Farmers State Bank, nonmember
Consolidated under charter of First National
Bank and under title of Farmers National
Bank
Farmers National Bank, Greensburg, Kans., title
changed to First National Bank in Greensburg.
Kimball National Bank, Kimball, Nebr
Conversion of Bank of Kimball, nonmember.

$100,000

25,000
27,500
25,000

25,000
25,000
25,000

25,000

No. 12—SAN FRANCISCO

137, 900

25,000
50,000
25, 000

25,000

No. 10—KANSAS CITY

1929
Nov. 29

Bevans National Bank, Menard, Tex
Succeeded by Bevans State Bank, nonmember.
State National Bank, Karnes City, Tex
Absorbed by Karnes County National Bank,
Karnes City.
First National Bank, Bagwell, Tex
__
Voluntary liquidation.
Security National Bank, Nocona, Tex
Absorbed by Farmers & Merchants National
Bank.
Farmers & Merchants National Bank, Achille,
Okla
. ,
Absorbed by Durant National Bank, Durant, Okla.
First National Bank, Newcastle, Tex
Absorbed by First National Bank, Throckmorton, Tex.
First National Bank, Merit, Tex
Absorbed by Citizens State Bank, Greenville,
itjx., rutjiiiuer.
Hot Springs National Bank, Hot Springs, N.
Mex
Succeeds First National Bank.

1,000, 000

No. 9—MINNEAPOLIS

1929
Dec. 31

Capital

100,000

First National Bank, Colton, Calif
Absorbed by Bank of America of California,
Los Angeles, Calif., nonmember.
Burley National Bank, Burley, Idaho
Succeeded by nonmember bank.
National Bank of East Stanwood, Wash
Conversion of State Bank of East Stanwood,
nonmember.

50,000
50,000
25,000

Fiduciary Powers Granted to National Banks
During the month ended March 21, 1930, the
Federal Reserve Board approved applications of the
national banks listed below for permission to exercise
one or more of the fiduciary powers named in section
11 (k) of the Federal reserve act as amended, as follows: (1) Trustee; (2) executor; (3) administrator;
(4) registrar of stocks and bonds; (5) guardian of estates; (6) assignee; (7) receiver; (8) committee of
estates of lunatics; (9) in any other fiduciary capacity
in which State banks, trust companies, or other corporations which come into competition with national
banks are permitted to act under the laws of the State
in which the national bank is located.

25, 000

100, 000

Location

100,000

District
No.

Name of bank

Powers
granted

200, 000
35, 000

30, 000

75,000
25, 000
25, 000

25, 000

50,000

Torrington, Conn

Everett, Mass...
Farmington, Me
Cranford, N. J._
Farmingdale, N . Y__.
Berwyn, P a .
Donora, Pa
Williamsport, Md

1
1
2
2
3
4
5

Lenoir, N. C
Macon, Ga
Belle Plaine, Iowa
Grand Rapids, Mich.
Hillsdale, Mich
Mount Vernon, Wash.

5
6
7
7
7
12

Supplementary.

Torrington National Bank
i 8 and 9
& Trust Co.
Everett National Bank
Ito9
Peoples National Bank
1 to 3 and 5
First National Bank
1 to 9
First National Bank
1 to 9
Berwyn National Bank
1 to 9
First National Bank
1 to 9
Washington County NaIto9
tional Bank.
First National Bank
1 to 9
Macon National Bank
1 to 9
Citizens National Bank
1 to 3,5 to 9
American National Bank
2, 3, 5 and 8
First National Bank
i 5 and 8
First National Bank
14 to 9

269

FEDERAL RESERVE BULLETIN

APRIL, 1930

FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES IN DETAIL AND FEDERAL RESERVE NOTE STATEMENT
I In thousands of dollars]
1929

1930
M a r . 31

Feb. 28

Mar. 31

Gold with Federal reserve agents
_
Gold redemption fund with United States Treasury
Gold held exclusively against Federal reserve notes.
Gold settlement fund with Federal Reserve Board
Gold and gold certificates held by banks

1,695,084
51,852

1, 619,405
54, 297

1, 250, 663
62, 694

1, 746,936
601,913
666,395

1, 673, 702
646,153
644,884

1, 313, 357
733,450
654,170

Total gold reserves...
Reserves other than gold
Total reserves..
_
Nonreserve cash.

3,015, 244
182,428

2,964. 739
186, 287

2, 700, 977
161,864

3,197,672
61,489

3,151,026 j
60,874 '

2, 862, 841
64,805

_
_

...

Bills discounted 1

310, 228

352.917

1,095,031

Bills bought:2
Outright
Under resale agreement .

143,563
134,973

233, 089
37,161

183,906
15, 797

278,536

270, 250

199, 703

526, 739
8,490

477,044
2,890

165. 663
6,238

535,229

479,934 i

171,901

13, 080
721
23,317

6,845
722
62,158

Total bills bought..
United States securities:
Bought outright
__
"* Under resale agreement.
Total United States securitiesOther reserve bank credit:
Other securities
Due from foreign banks.
Reserve bank float3

8,780
723
15,779

Total reserve bank credit outstanding...

1,149, 275

1,140,219 |

1,536,360

Federal reserve notes of other reserve banks.-.
Other uncollected items not included in float..
Bank premises.
_
All other resources
_

20,008
481,482
58, 507
11,543

24,721 !
583,197 i
58, 419
14,861

16,624
5(54,070
58, 693
7, 971

Total resources..
Federal reserve notes:
Held by other Federal reserve banks.
Outside Federal reserve banks
Total notes in circulation.
Deposits:
Member bank—reserve account.
Government
Foreign bank
Other deposits..
Total deposits.
Deferred availability items..
Capital paid in
Surplus
All other liabilities
Total liabilities
Contingent liability on bills purchased for foreign correspondents

4,979,976

5,033,317

5,111,964

20,008
1, 574, 247

24,721
1,631,255

16, 624
1, 674, 626

1,594, 255

1,655,976

1, 691, 250

2,366,934
40,326
7,296
20,423

2, 260,130
42,289
6,638
18,385

2, 356, 748
28,075
20, 353
20, 212

2,434, 979

2,327,442

2,425, 388

481,482
174,227
276,936
18,097

583,197
171,841
276,936
17,925

564, 670
154, 356
254, 398
21, 902

4,979,976

5,033,317

5, 111, 964

482,462

502,969

337,425

1,916, 435
322.180
1,594, 255

2, 027,350
371, 374
1, 655,976

2,051, 324
360,074
1, 691, 250

1,695,084
576.358

1,619,405
594,683

1, 250, 663
1, 245,132

2, 271,442

2, 214,088

2,495, 795

FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to Federal reserve banks4 by Federal reserve agents
Held by Federal reserve banks
_
In actual circulation._
Collateral held by agents as security for notes issued to banks:
Gold
Eligible paper..
Total collateral.

i Includes bills discounted for intermediate credit banks as follows: Latest month, $1,043,000; month ago, $253,000; year ago, $13,337,000;
and notes secured by adjusted service certificates discounted for nonmember banks as follows: Latest month, $38,000; month ago, $20,000; year
ago, 3$128,000.
Includes bills payable in foreign currencies as follows: Latest month, $1,040,000; month ago, $1,038,000; year ago, $1,036,000.
1
Uncollected items (exclusive of Federal reserve notes of other Federal reserve banks) in excess of deferred availability items.
Excludes " F . R. notes of other F. R. banks," which are consequently included in "actual circulation."

270

FEDERAL RESERVE BULLETIN

APRIL, 1930

CONDITION OF ALL BANKS IN THE UNITED STATES
TABLE 1. -ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES, ON CALL DATES, BY FEDERAL
RESERVE DISTRICTS
[In millions of dollars. Figures for nonmember banks are for the dates indicated or nearest dates thereto for which figures are available]
Total loans and investments
Federal reserve district and call date

AH districts:
1928—Dec. 3 1 . . .
1929—Mar. 2 7 . .
June 29. _.
Oct. 4
Dec. 3 1 . . .
Boston:
1928—Dec. 3 1 . . .
1929—Mar. 2 7 . .
June 29...
Oct. 4
Dec. 3 1 . . .
Sew York:
1928—Dec. 327...
1...
1929—Mar.
June 29. ._
Oct. 4
Dec. 3 1 . . .

Loans ( including overdrafts)

banks

Member

Nonmember

banks

58, 266
58, 019
58,474
58,835
58,417

35, 684
35,393
35, 711
35,914
35,934

22, 582
22, 626
22, 763
22,922
22,483

6,649
6,692
6,818
6,865
6,782

2,571
2,600
2,613
2,634
2,561

18, 776
18,349
18, 898
18,835
19,494

All

Deposits, exclusive of
interbank deposits

Trn
m i /estiueni s

ber

Nonmember

banks •

40, 763
40, 557
41, 512
42, 201
41,898

25,155
24,945
25, 658
26,165
26,150

15,607
15,612
15,853
16,036
15,748

17,504 ! 10, 529 6,975
17,462 | 10,448 7,013
16, 962 10, 052 6,910
16, 634
9,749 6,885
16, 519
9,784 6,735

4,078
4,092
4,205
4,231
4,221

4,271
4,279
4,434
4,508
4,508

1,824
1,823
1,871
1,920
1,910

2,446
2,456
2,563
2,588
2,598

2,378
2,413
2,384
2,358
2,273

11, 593
11,317
11, 775
11, 763
12, 316

7,183
7,031
7,122
7,072
7,178

13,435
13,028
13,801
13,839
14, 252

8,404
8,139
8,769
8,813
9,097

5,031
4,888
5,031
5,025
5,155

5,341 !
5,321 1
5,097
4,996
5,243

All

Mem-

All

Member

NonAll
Memmem- banks ' ber
ber

Rediscounts and
bills payable

Nonmember

banks

Mem- Nonmember
ber

All

56,766 !
54,545
53,852
55,180 i
55,289

34, 826
33, 215
32, 284
33,004
33, 865

21,940
21,330
21, 567
22,176
21,424

1,512
1,507
1,598
1,512
1,238

1,162
1,153
1,198
1,150
879

350
354
399
363
359

747
111
742
715
650

1,632
1,636
1,642
1,643
1,623

6,225
6,134
6,209
6,308
6,298

2, 397
2,323
2,297
2,368
2,391

3,828
3,811
3,912
3,940
3, 907

93
103
111
103
78

76
80
86
80
49

17
24
25
23
30

3,189
3,178
3,006
2,950
3,220

2,152
2,143
2,091
2,046
2,023

18,915
17, 673
17,028
18,090
18,490

12,140
11, 329
10, 351
11,056
11,810

6,776
6,344
6,677
7,034
6,679

542
386
488
284
279

499
343
453
255
258

43
43
35
29
21

1928—Dec. 3 1 . . .
1929—Mar. 2 7 . .
June 29...
Oct. 4
Dec. 3 1 . . .
Cleveland:
1928—Dec. 3217. . .
1929—Mar.
June 29...
Oct. 4
Dec. 3 1 . . .
Richmond:
1928—Dec. 3217. . .
1929—Mar.
June 29...
Oct. 4
Dec. 3 1 . . .
At! int'd:
1923—Dec. 3 1 . . .
1929—Mar. 2 7 . .
June 2 9 . . .
Oct. 4
Dec. 3 1 . . .

4,395 ;
4,422
4,460
4,505 i
4,395

2,666
2,714
2,710
2, 755
2, 687

1,730
1,708
1,750
1,750
1,708

2,747
2,818
2,859
2,929
2,859

1,745
1,813
1,832
1,890
1,859

1,002
1,005
1,027
1,039
1,000

1,649
1,604
1,601
1,576
1,535

921
900
878
865
828

728
703
723
711
708

3,874
3,770
3,760
3,752
3,745

2,287
2,250
2, 251
2,255
2,265

1,587
1,520
1,509
1,497
1,480

153
181
164
170
175

99
126
105
102
94

54
55
58
68
81

4,854
4,948
4,927
4,964
4,869

3,414
3,478
3,488
3,498
3,455

1,440
1,471
1,439
1,466
1,414

3,279
3,359
3,380
3,450
3,413

2,291
2,352
2,376
2,418
2,410

988

1,007
1,004
1,031
1,004

1,575
1,589
1,547
1,515
1,456

1,123
1,125
1,112
1,080
1,046

452
464
435
435
410

4,526
4,525
4,523
4,568
4,452

3,165
3,167
3,190
3,164
3,154

1,361
1,358
1,333
1,403
1,298

139
139
138
114
155

105
102
98
104
100

34
37
40
10
55

2,522
2,537
2,501
2,501
2,435

1,338
1,351
1,329
1,299
1,278

1,183
1,186
1,172
1,202
1,157

1,879
1,883
1,865
1,868
1,813

1,022
1,024
1,010

990
974

857
860
855
878
838

643
653
636
633
622

317
327
319
309
303

326
326
317
324
319

2,351
2,302
2,255
2,262
2,271

1,214
1,196
1,166
1,142
1,152

1,137
1,106
1,089
1,119
1,119

74
86
113
111
76

49
55
70
65
48

25
31
43
46
28

1,749
1,763
1,734
1,719
1,629

1,188
1,191
1,177
1,149
1,115

560
572
558
570
514

1,346
1,370
1,345
1,346
1,262

895
907
898
889
855

451
463
447
457
408

402
393
389
373
366

293
284
279
260
260

109
109
110
113
106

1,673
1,629
1,581
1,571
1,548

1,093
1,065
1,041
1,004
1,020

.580
564
540
567
527

74
87
104
123
66

52
61
72
91
42

21
26
32
33
23

1928—Dec. 3 1 . . .
1929—Mar. 2 7 . .
June 29. _.
Oct. 4
Dec. 3 1 . . .
St Louis*
' 1928—Dec. 3 1 . . .
1929—Mar. 27
June 29. _.
Oct. 4
Dec. 3 1 . . .
Minneapolis:
1928—Dec. 3 1 . . . I
1929—Mar. 2 7 . .
June 29. __ i
Oct. 4
;
Dec. 3 1 . . .

7,904
7,963
7,958
8,065
7,740

5,163
5, 072
5,052
5,117
4,934

2,741
2,891
2,906
2,949
2,806

5,933
5,999
6,046
6,195
5,953

3,812
3,777
3,792
3,901
3, 770

2,121
2,222
2,254
2,294
2,183

1,971
1,964
1,912
1,871
1,788

1,350
1,295
1,260
1,216
1,164

620
668
652
655
623

7,667
7,435
7,543
7,590
7,381

4,914
4,612
4,721
4,757
4,617

2,752
2,823
2,822
2,834
2,764

234
272
221
224
205

164
201
143
147
148

71
71
79
77
58

2,163
?, 162
2,099
2,160
2,072

1,406
1,377
1,341
1,375
1,337

757
784
757
785
736

1,546
1 561
1,531
1,596
1,526

954
945
937
984
955

592
616
594
612
571

617
601
568
564
546

452
433
405
391
381

166
168
163
173
165

2,045
1,972
1,911
1,980
1,962

1,256
1,184
1,177
1,199
1,213

788
788
733
781
750

82
92
98
122
66

39
58
59
82
32

43
34
39
39
34

1,555
1, 563
1,539
1,580
1,507

933
938
923
957
911

622
625
616
623
597

951
953
945
987
936

560
564
559
597
563

391
389
387
390
373

605
610
594
593
572

373
374
364
360
348

232
236
230
233
224

1,596
1,554
1,547
1,571
1,519

929
894
904
906
892

666
660
642
655
626

13
22
22
47
22

5
15
12
40
12

8
6
9
8
10

1928—Dec. 31.._
1929—Mar. 2 7 . .
June 29. __
Oct. 4
Dec. 31.__

1,929
1,898
1,881
1,901
1,842

1,250
1,242
1,241
1,247
1,212

679
656
640
655
630

1, 332
1,310
1,310
1,332 i
1,293 i

803
800
810

530
511
499
509
489

596
588
571
569
549

447
443
430 !
424 ;
408 :

149
145

141
145
141

2,028
1,960
1,929
1,958
1,909

1,241
1,211
1,207
1,202
1,190

787
749
722
756
719

34
30
52
48
49

22
23
39

12
7
13
3
15

993
957
987
936

254
266
260
258
243

839
940
914
957
907

201
210
209
208
193

310
325
302
288
273

257
270
251
238
222

53
56
51
50
50

1,290
1,249
1,177
1,209
1,186

989
964
911
935
913

301
286
266
274
272

14
17
27
41
21

3,169
3,113
3,105
3,133
3,192

1,354
1,344
1,338
1,362
1,279

998
986
983

1,416
1,401
1,371
1,298
1,295

3,200
3,022
3,068
3,016
3,247

1,376
1,320
1,323
1,316
1,282

59
92
60
125
55

1928—Dec. 3 1 . . . !
1929—Mar. 2 7 . .
June 29. __
Oct. 4
Dec. 3 1 . . . :
odii rrdncisco,
1928—Dec.
1929—Mar. 3217. . . ;1
June 2 9 . . .
Oct. 4___. '•
Dec. 3 1 . . .

1,247
1,265
1,217
1,245
1,179
4,523
4,457
4,443
4,494
4,472

1,000

823
804
736
730
705
749

. 714
3,107 ! 2,019
3,056 i 2,071
3,082
2, 099
3,196
2,192
3,177
2, 239

1,004

938

1,060
1,042 '
1,007 i
941
953

i 4,576
358 1 4,342
355 1 4,391
357
4,332
342
4,529
356

!
;

45
35

i
i

13
20

12
35
17

;
!

39
76
42
105
44

Includes all national and State banks (including stock and mutual savings banks) and all private banks under State supervision.
Back figures—See Tables 44, 45, and 85-88, Annual Report of Federal Reserve Board for 1923.

2
4
8
6
4
20
15
18
20
11

271

FEDERAL RESERVE BULLETIN

APRIL, 1930

TABLE 2—ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND JUNE 29 ,
1929, BY STATES
[Amounts in thousands of dollars]
Loans and investments
Loans (including
overdrafts)

Total
State
December

June

December

June

Investments

December

June

I Deposits, exclusive
j of interbank de!
posits

December

June

Rediscounts and I
bills payable
|

6 m
hp
r " i J^e
Der

! c?mi ber

I
New England:
Maine
432,528;
437,013
201,911
230, 617
230,329
206, 684i
396,468!
396, 210
10,471'
13,115!
New Hampshire
311,333
312,481
153,864
157,469
157, 726
154,755,
282,104,
279,683j
4, 222;
4,897i
256, 611
91,649
Vermont
250,098
158,449
162, 055
94, 5561
235, 599'
241, 644
5,885|
7,002;
Massachusetts
4,224,673 4, 256,805 3, 007, 510 2,947,489 1,217,163 l,309,316| 3,932,012J 3,861,900
43,837! 67, 981 i
222,414
310, 677
306, 642
Rhode Island
533,091
533, 554
226, 912!
499, 685:
498, 399 . 2,193 6, 2251
529, 393
806,945
794,812
Connecticut
1,336,338 1, 334, 3561
539,544! 1,232,420 1,215,908
18, 574 i
16,206
1
Middle Atlantic:
New York
17, 222,139 16, 563,160 12, 754, 661 12, 281, 719 4, 467,478 4,281,44116,340,125 14,:, 844, 221 242,451! 431, 554!
795,292! 2,260,738 2,284, 6761
New Jersey
2,388,312! 2,449,523 1, 633, 659 1,654,231
754, 653
48,160! 72,029!
Pennsylvan ia
5,703,176 5, 794, 577 3, 574, 655 3, 568,154 2,128, 521 2,226,423| 4,883,774 4, 935, 055! 207,163 j 187,125;
East North Central:
j
;
634,085
684, 920 2, 532,157, 2, 569, 047
Ohio
2,691,493 2, 715, 099 2, 057,408 2,030,179
93,819' 81, 5361
214,435
225, 769
670,493
S09,987i
835, 050
Indiana
! 862,926j
896, 262
648,491
27,190! 58, 579,
966, 968 3,569,283 3,645,638
Illinois
: 3,802,263| 3, 918, 544 2,888,118 2, 951, 576 914,145
77, 906j 85, 335j
554, 944 l,900,537| 1,975,821
Michigan
] 2, 020, 634 2, 070,043^ 1, 514,120 1, 515, 099 506, 514
87,450! 57, 233
262,355
276, 682
Wisconsin
917,092
654, 73^
676,316
894, 209]
918,472
18, 350J 26, 632
West North Central:
355, 806
541, 526
374,172
879,134! 894, 369
Minnesota
! 901,370
545, 564
15, 207! 12, 017
915, 698
119,156
128, 943
821,931.' 821, 913
662,441
Iowa
! 781,597
797, 323
12, 945! 11, 906
868,107
331,161
835,145
340, 641 1, 200,482 1,106,878
19,284', 42,830
Missouri
1,199, 268 1,175, 786
79, 091
121, 283
314,686
32, 556
83,192
31, 494
119, 331
2,814
North Dakota
111,647
1,165
96, 370
148,777
136,1141
41,124
95,356
40, 758
149, 808
South Dakota
137,494
1,568
2,424
389,814
385,441 < 272, 082
Nebraska
359, 293
87, 211
291,801
93, 640
360,964
14, 661
11,815
292, 628
421,159
412, 875
Kansas
404,409
9,413
111, 781
295, 61'
117, 258
405, 375
7,470
South Atlantic:
48,394
119, 325
48, 527
138, 396
138, 312
4,036
119,013
2,715
Delaware
167,407
167, 852
319,057
515, 876
329,193
792,094
782, 723
518, 324
15, 340
845,069.
Maryland
837,381
13, 708
59, 838
194, 331
61, 637
239,895
249, 710
184,67
255, 968'
6,021
District of Columbia...!
244,510
95, 389
456,136
98,157
460, 7181 457,016
455, 975
554, 293;
32,084
Virginia
|
551,364
27,850
64,983
288, 601
315, 589
332,053
280,143
357, 639,
West Virginia
! 345,126
17,217! 15, 0651
57,394
335, 542
356, 777
339,874
312,154
390, 376'
54, 834
North Carolina
369,548
12, 6771 40,1411
42, 677
138, 851
178,103
169, 768
125,941
180,992'
42,141
South Carolina
168,618
1,218
7, 296!
57,249
295, 757
315, 389
313, 742
277,199
352, 429
56, 672
Georgia
334,448
9,920
18,3531
108,483
190, 069
262, 639
311,854
149, 838
311,464;
Florida
i 258,321
121,395
6,230
7, 2301
East South Central:
i
434, 595
116, 037
125, 698
447,941
443,369
32,107
438, 200
21, 595
Kentucky
554,237
560, 293!
69,254
356, 809
75,147
403,645
413,002
19,863
20, 229
431, 956
360, 570
Tennessee
i 429,824
53, 361
249,35"
14,155
306,865!
57, 508
266, 074
257,033
33,118
229,081
Alabama
! 282,442
54,373
170, 095
5,598
222, 291 j 157, 979
52,196
228,027
213,399
15,858
Mississippi
'
212, 352i
West South Central:
j
|
164,407
42, 336
43, 767
155,171
208,490; 201, 989
3,351
10, 052
208,174;
Arkansas
197, 507j
345,688!
81,679
81,219
409, 772
388, 925 17,950
347, 536
426,907,
Louisiana
! 429,215;
27, 584i
262,220: 147,092
147, 676
253,432
417,127
431,462
16,198
409,896'
Oklahoma
i 400,524'
13, 665
803, 443
237, 81" 268,189 1,030,215 1,033,323
798, 590
18, 512
Texas
! 1,036,407 1,071, 632
22,473
Mountain:
:
94,242
156,463
87, 700
56,430
56,356
157, 573
508
2,498
150, 598^
Montana
! 144,130
48,494
30, 750
91, 958
49,973
28, 743
85,448
193
949
77,2371
Idaho
I
80,723
17,640
40,
345
62,
672
40,000
18,154
60,103
602
2,006
58,499'.
Wyoming
j
57,640
88, 850
173,471
171, 380
94, 044. 283, 978! 281,856
3,720
3,200!
265,424|
Colorado
'
262,321
14, 816
46,044
1,024
25, 743
25,932
14,756
201
40, 559
42, 610
40,688;
New Mexico
31,27"
425
91,918
49, 911
54, 331
30, 598
592
93, 216
84, 929'
Arizona
81,188
35,
706
139,755
3,242
126,042
121,972
36,008
132,769
2,440
Utah
157,980
i
161, 748
8,792
41,054
29,196
30,819|
9,686
44,430
Nevada
40, 505|
37,988
Pacific:
156,182
303, 645
286, 305
161,030
468, 879
450, 683
5,756
459, 827
447, 335!
Washington
145,445
112,456
114,578
208,181
263,340
4, 704)
6,993
148, 041
, 260,497
Oregon.
260, 023
994,143 3,461,269 3,356,346
42, 858i
43, 285|
California
i 3,419,964 3,407, 742 2,487, 056 2,413, 599 932,908
Total

June

133!
123|
104|
4501
33!
237

123
104
452
33
237

1,1271
5681
1, 5661

1,141
567
1,589

1, 015)

1, 029

1, 7651 1,801
743 i
742
964
1,046J
1, 257 j
1,277!
412
387
804
1,069

1,072
1,286
1,325
433
396
846
1,077

47
230
41
474
297'
416
217
405
235

48
235
41
481
310
428
223
420
257

572
4841

3591

572
490
350
312

415
2251
617
1,308

420
226
649
1,333

195
13'
81
274
56
46
104
35

198
137
87
278
58
46
105
35

340
234
437

344
235
455

41, 511,803 16, 518, 595|16,962, 202 55,289,185 53,851, 845 1, 237, 596 1, 597, 579; 24, 630 25,110
58,416,990 58,474, 005 !41, 898, 395
I
i!

1 Includes all national and State banks and all private banks under State supervision. Figures for State institutions are taken from Table 4
and represent in some cases the condition of banks as of dates other than Dec. 31 and June 29.
Bid: figures.—See Tables 89-91, Annual Report of Federal Reserve Board, 1923.

272

FEDERAL RESERVE BULLETIN

APRIL, 1930

TABLE 3.—NATIONAL BANKS i—PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND JUNE 29, 1929, BY STATES

[Amounts in thousands of dollars!
Loans and investments
Total

State

December
New England:
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Middle Atlantic:
New York
New Jersey
Pennsylvania.. _
East North Central:
Ohio
Indiana
Illinois.
Michigan
...
Wisconsin
West North Central:
Minnesota
-Iowa
Missouri
North Dakota
South Dakota
Nebraska
Kansas
South Atlantic:
Delaware
Maryland...
District of Columbia. _.
yirginia
West Virginia
North Carolina
South Carolina
.._
Georgia
Florida
_..
East South Central:
. Kentucky
Tennessee.
Alabama
Mississippi
-West South Central:
Arkansas
Louisiana
Oklahoma
Texas..
Mountain:
Montana
Idaho
___
Wyoming
Colorado
New Mexico
_
Arizona
Utah...
Nevada
Pacific:
Washington
Oregon
California
Total

Loans (including
overdrafts)
June

December

139,196 140, 300
75, 354
72, 478
44,851
71, 330
71, 417
42, 314
70, 462
1, 311, 301 1,196,162 1,020,819
53, 476
35, 368
54, 312
194, 310
258, 212 276,260

June

76,263
45,1081
42, 772
853, 780
33, 756
202, 817

Investments
December

63,842
26, 479
28,148
290,482
18, 944
63,902

December

June

64,037,
126, 969
123,230
27, 370!
60, 598
58,177
60, 962
28,645'
59, T "
342,382: 1,236,316 1,012,870
39, 791
19, 720i
42, 538
247, 760
73,443
240,199

DecemDecem-;
June
June
ber
ber

4,1
4,345
2,441
45,917
2,806
8,343

62|

53
56
46
155
10
64

4, 662,103 4,488,239 3,221,953 3,201,437 1,440,150 1,286,802 4,357,111 3, 861, 320 124,103 188,626
602,064 595,641;1 295,673 309, 780; 854,960 845,263 21,113 27, 553
897, 737 905, 421
989,428; 2,225, 782 2, 258, 331 84, 039 91, 575
926, 922
2, 584, 111 2, 643, 764 1, 657,189 1, 654, 336

559|
300
851|

562
299
861

725,194 727, 501
373, 493 372, 333
1, 267, 508 1,245,633
521, 906 527,438
419,141! 434, 462

513, 715
262, 365
954, 674
384, 256
303, 347

496, 392
256, 889
918,054
373, 524
311,129

211,479
111, 128
312, 834
137, 650
115, 794

231,109,
670,434
659, 512
115,4441
345,166
342, 492
327,579, 1,205,450 1,149,232
153,914!
510,058
528,081
123, 333|
393.199

28, 291
12, 453
19, 625
22, 952
5,651

24,606
10,131
31,095
11, 305
17,152

317i
219,
482;
130!
157

323
224
487
133
157

530, 858 531, 784
277, 283 284,405
431, 968 471, 791
69, 651
71, 429
63, 226
63, 434
188, 5541 192,073
198, 338, 205,182

343, 483
183,156
312, 035|
44, 717'
37,150
135, 405J
132, 803

331, 639
184, 818
338,190
43, 673
37,018
135, 302
135, 377

187, 375
94,127
119, 933
26, 712
26, 284!
53,149
65, 535

200,145
99, 587
133, 601!
25, 9781
26, 208
56, 771

499,134

387,835
74, 052
66,409
173,433
200,825

504, 710
269, 358
400, 382
71, 349
66, 548
170,444
206, 251

8,727
6,264
5,839
626
504
8,634
3,647

6,956
5,627
21,023
1,548
637
8,117
3,674

266
251
130
122
92
157
246

272
265
134
125
93
158
247

22, 715J
229, 248i
126, 506i
319, 254
167,0011
113,166:;
89. 434
208, 602:
162, 22li
!
241, 6811
254, 815!
188, 3761
74, 287|

22, 506
230, 506
130, 887
320,130
169,194
150, 681
101, 380
209, 482
173,129

13, 699
151, 244
91, 790
257,054
129,435
91,253
66,150
167, 690
89,480

13,081
153,019
95.191
255,849
129,854
122, 534
76,417
169, 646
97,506

9,016
78,004
34, 716
62,200
37, 566
21, 913
23,284
40, 912!
72, 74l|

9,425
77,487
35, 696
64,281!
39,340
28,147|
24,963

75, 623

18,450
210,076
121, 285
268, 365
147,695
103, 293
86,720
193, 687
164, 669

18,420
203, 326
126,472
269,475
151, 676
126, 852
91, 315
194,096
171,214

1,117
973
4,922
5,559 4,715
15, 373 16, 245
8,705 8,188
4,160 15, 619
529 4,001
2,638 5,231
2,045 1,502

1
80
12
159
115
66
47
76
57

17
82
12
164
116
73
53
80
55

247, 737
237, 716
197, 595
76, 030

184,838
213, 635
145, 795
52. 865

181, 233
189,457
150, 975
56, 378

56,843
41,180
42, 581
21, 422j

66, 504
48, 259
46, 620
19, 652

204,053
224, 371
168,145
73, 681

199,481
207,121
161, 940
70, 243

10,296
9, 8941
9, 226:
3,210|

20, 808
12, 062
19, 985
6,122

138
99
107
35

138
99
106
35

75, 808!
104, 215i
330, 380

78, 794
103,402
334, 673
830, 849

52, 058
89, 279|
205, 9961
613,122!

54, 454
87,002
209, 325
607, 331

750!
936i
384|
742i

24, 340
16,400
125, 348
223, 518

73, 939
94, 379
334, 668
778, 525

74, 322!
88, 527|
347, 333
789, 650

907
3, 710!
15, 692!
15, 615|

1,
5,
11,
16,

719!
705|
5471
747!

72
34
292
609

73
33
307
623

77, 962;
37, 775:
33,181;
203,907!
29, 388
27, 673!
49, 206!
17, 547

81, 085
35, 729
33, 613
206,194
29, 352
29,180
46, 476
17, 340

46, 646,
24,827
21, 365
130, 553
18, 2291
15, 692i
35,076!
11, 822|

49, 554
24, 331
20, 852
127, 730
18,162
17.192
32,161
11, 852

81, 316J
12, 948|
11, 816!
73, 354|
11,159!
11, 981!
14,130
5, 725i

31, 531
11, 398
12, 761
78, 464
11,190
11, 988
14, 315
5,488

83, 962
41, 569
34,421
219, 814
33, 526
30, 935
45, 650
17,090

84, 606
38, 843:
33, 505j
219, 351
31,040i
30, 7851
40, 891,
17,523'

35
327
3, 291|
68!
26589

1,146!
492
809
2,249
553

67
43
25
120
27
14
20
10

43
25
121
28
14
20
10

2, 945;
5, 206!
23, 373

105
94
2O.f

106
93
211

..21,584,328,21,456,563 15,136,414 14,805,401 6,447, 914| 6, 651,162J20, 290, 373 19, 411, 384 545, 587J 714,107,
I

7, 403

7,530

267,005
170,180
166,049
266,174
102, 087
98, 734
„190,
„ , 942i
„ -_
189, 600
2,018,130| 1,933,302 1,443,226 1,321,617

23,
14,
124,
193,

95,994!
88, 855!
574, 904,

1 Member banks only; i. e., exclusive of national banks in Alaska and Hawaii.

June

Deposits, exclu- Rediscounts and Number of resive of interbank bills payable porting banks
deposits.

100,956 267,183K 266, 394!
90, i
193, 69,
188, 885
611, 685 2, 057, 633 1, 898, 8361

2,181
3,670
2,733
23, 891
1,322
5,781

2, 360,
3, 303
29, 898:

986,

273

FEDERAL RESERVE BULLETIN

APRIL, 1930

TABLE 4.—STATE BANKS i—PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND JUNE 29, 1929, BY STATES

[Amounts in thousands of dollars]
Loans and investments
State

Loans (including
overdrafts)

Total
December

June

December

June

Investments

December

June

Rediscounts
and bills
payable

Deposits, exclusive
of interbank deposits

December

June

Number o/ reporting banks

Decem-'
December ; June
ber j June

New England:

Maine
293,332
155,263
154,066
296,713
New Hampshire
240,003
112,618
112,618
240,003
116,135
119,283
Vermont
179,636
185,194
Massachusetts
2,913,372 3,060, 643 1, 986,691 2,093,709
275,309
272,886
Rhode Island
478,779
480,078
612, 635
591,995
Connecticut
1,078,126 1,058,096
Middle Atlantic:
New York.
12, 560,036 .2,074,921 9, 532, 708 9,080,282:
New Jersey
1,490,575 1, 544,102 1,031, 595 1, 058, 590
Pennsylvania
3,119,065 3,150, 813 1,917,466 1,913,818!
East North Central:
Ohio
1,966,299 1,987,5981! 1, 543,693 1, 533,787
Indiana
_ 489,433
523,929'i
386,126
413, 604
Illinois.
.._
2,534,755 2, 672,911 j 1,933,444 2, 033, 522
Michigan
1,498,728 1, 542, 605 I 1,129,864 1,141, 575
Wisconsin....
497,951
518, 536
351,390
365,187
West North Central:
383,914
202,081
Minnesota....
_J 370,512
209,887
512,918|
Iowa.
I 504,314
479,285
483,562
703, 995;
Missouri..
1 767,300
556,072
496,955
45,035!
North Dakota
!
40,218
34,374
39, 519
South Dakota
j
74,060
72,888'
59,220
58,338
Nebraska
170,739
193, 368 i
136, 67"
156,499
Kansas
206,071
207, 693
159, 825
160, 240
South Atlantic:
Delaware
144,692
105, 314
145,346
106,244
Maryland
608,133
367, 080
614,563
362,857
District of Columbia...
118,004
125, 081
92,882
99,140
Virginia
232,110
234,163
198,921
200, 287
West Virginia
178,125
188,445
150, 708
158, 747
North Carolina
256,382
239, 6951
220,901
213, 008
South Carolina
79,184
79, 612'
59,791
62,434
Georgia
125,846
142,947 j
109, 509
126, 111
Florida
96,100
138, 335
60,358
92, 563
East South Central:
Kentucky
312,556
312,556!
253,362
253,362
Tennessee
175,009
194, 240
146,935
167,352
Alabama
i!
94,066
98, 382
109,270; |
83,286
Mississippi
138,065
113,717
146, 26111
105,11
West South Central:
129,380ii
103,113!
109,953
Arkansas.j 121,699
Louisiana
i 325,000
323,505!]
258,2571
258,686
75,223H
47,436!
52,895
Oklahoma
!
70,144
Texas
! 229,543
240,78311
185,468!
196,112
Mountain:
41,054
69,513;
Montana
66,168!
44,1
25,146:
41, 5081
24,163
Idaho
42,948
18,6351
24,886
19,493
Wyoming
24,459
42,918|
59, 230i
43, 650
Colorado
'
58,414
7, 514
11,336
7,770
New Mexico
I!
11,171
34,219|
55, 749
37,139
Arizona
53,515
!
90,9661
111, 504
89,811
Utah
112,542
17, 3741
23,165
18,967
Nevada
!
20,441
Pacific:
Ij
180,330
133,465!
120,256?
Washington193,653
70,423!
45,954i
46,711
Oregon.
!
69,555
California
j 1,401,834 1,474, 440 j l,043,830i 1,091,982!
Total

272,980 8,290
8,226
221,506
552
552 j
180,682 4,
3,444
2, 849,030 19,946 22,064'
457,147
458, 608
8711
968,148 10,425 10,231
992,221

67
58
298
23
175

3,027,328 2,994,639 11,983,014 10,982,901 118, 348 242,928;
458,980 485,512 1,405,778 1,439,413 27,047 44,476!
201, 599 l,236,995i 2,657,992 2,676,724 123,124 95, 550;
1,

568
268
715

127,385
63, 501
926,681
203,470
465,491

142,647
127,385
65,911
966,934
207,192
466,101

269,499
221,506
175, 611

81
67
58
297
23

173
579
268
728

422, 606
103,307
601,311
368,864
146,561

453,811 1, 861,723 1,909, 535 2 65, 528 2 56, 930^
110,325 464,821
492,558 14, 737 48,448J
639,389 2,363,833 2,496,406 58,281 54,240:
401,030 1,390,479 1,447,740 64,498
153, 349 499,510 525,273 12,699 9,480

7501
1,283|
613 !
803

706
762
1,314
609
807

168,431
25,029
211,228
5,844
14,840
34,062
46,246

174,027 380,000
389,659
29,356 3 554,993 3 552, 555
207,040 3 812,647 3 706,496
5,516
45,279
49, 934
14, 550
83,399
82,229
187, 531 219,370
47,453 3 204, 550 3 214,908

6,480 5,061
6,279
6,681
13,445 21,807
1,266
539
1,787{
1,064
6,027 3, 698
5,766 3,796J

780|
1,006
1,147i
290
295
647;
823:

800
1,021
1,191
308
303
688
830

39,378
241,053
25,122
33,189
27,4r
35,481
19, 393
16,337
35, 742

39,102
251,706
25,941
33,876
29,698
26,687
17,178
16,836
45, 772

119, 892 1,742
2,919
579.397 8,786
8,671
123, 238 2,534
1,306
187, 541 12,477 15,839
180, 377 8,512
6,877
213,022 8,517 24, 522
689
78,453
3,295
119, 646 7,282 13,122
140,640 4,185
5,728

30i
150
29
315|
182,
350
170
329:
178;

31
153
29
317
194
355
170
340
202

119,946
582,018
118,610
192, 353
167,894
253,484
91, 383
121, 702
97,970

59,194
28.074
10,780
32,951

59,194 243,888
243,888
26,888 a 179,274 3 205,881
10,888 3 97,929 3 95,093
32,544
154, 346 143,156

11,299
9,969
4,929
2,388

11,299.
8,167!
13,133;
9,736'

434
385
243
273

434
391
244
277

18, 586
66, 743
22, 7081
44.075

19,427
64,819
22,328
44,671

134,551
315, 393
82,459
251,690

2,444
14,240
506
2,897

8,333
21,879i
2,118
5, 726:

343
191
325

347
193
342
710

25,114
17,802
5,824
15,496
3,657
19,296
21, 576;
3,067

24,825
17,345
5,393
15,580
3,566
18,610
21,693
4,198

72, 501
50,389
28, 251
64,164
12, 518
3 60,983
94,105
23,964

318
158
275

1, 352!
457;
1,197
951j
471
* 425!
2, 256^

60,188
23, 601!
358, 004J

127,667
300.398
84,129
243,673
72,967
46,605!
26, 598!
3

??^!
;
62,431!
91,878
26,907

429

133
<566
1,851

60,074
201,696
184, 289! 1,478
23, 712
74,486
74,455
1, 401 1, 787;
382,458 1,403,636 1, 457, 510! 13, 387 19,485

;36,832,662^7, 017, 442| 26,761,98126, 706,402 10, 070, 68110, 311, 040 34, 998,812J34,440,461| 692, 009 880, 053

1 Includes all State banks (including stock and mutual savings banks) and all private banks under State supervision.
given
or dates nearest thereto for which figures are available.
1
Includes bonds borrowed.
8
Includes due to banks.
* Includes miscellaneous liabilities.

154
29
32
84
25

129
94
62
157
30
32
85
25

235
140
232

238
142
244

94|

17,227 j

17,580

Figures relate to dates

NOTE.—-All figures in the December columns are as of Dec. 31, except as follows: Maine, Dec. 28; New Hampshire, June 30; Massachusetts,
State banks Dec. 28, savings banks Oct. 31; Kansas, Dec. 3; Kentucky, June 29; Tenrfessee, Nov. 29; Colorado, Nov. 25; Oklahoma, Dec. 28. All
figures in the June columns are as of June 29, except as follows: Minnesota, July 15; Missouri, Apr. 10; Kansas, June 27; Tennessee, Apr. 15.

FEDERAL RESERVE DISTRICTS

N. DAK,

MINN. ;

MINNEAPOLIS^)
S.DAK.

KANSAS CITY
KANS.

ARK.

Little*Rock/

——•BOUNDARIES OF FEDERAL RESERVE DISTRICTS
. - — B O U N D A R I E S OF FEDERAL RESERVE BRANCH TERRITORIES
®
FEDERAL RESERVE BANK CITIES
•
FEDERAL RESERVE BRANCH CiTJES
O
FEDERAL RESERVE. BANK AGENCY

Full text of Federal Reserve Bulletin : April 1930

FRASER