Full text of Federal Reserve Bulletin : April 1932
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FEDERAL RESERVE BULLETIN APRIL, 1932 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Recent Banking Developments Comments and Recommendations on the Glass Bill Report of Reconstruction Finance Corporation Annual Reports of Central Banks: Belgium, Germany, Switzerland UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1932 FEDERAL RESERVE BOARD Ex officio members: EUGENE MEYER, Governor, CHARLES S. HAMLIN. ADOLPH C. MILLER. GEORGE R. JAMES. WAYLAND W. MAGEE. OGDEN L. MILLS, Secretary of the Treasury, Chairman. J. W. POLE, Comptroller of the Currency. LEO H. PAULGER, Chief, Division of Examinations E. A. GOLDENWEISER, Director, Division of Research and Statistics. CARL E. PARRY, Assistant Director, Division of Research and Statistics. E. L. SMEAD, Chief, Division of Bank Operations. FLOYD R. HARRISON, Assistant to the Governor. CHESTER MORRILL, Secretary. E. M. MCCLELLAND, Assistant Secretary. J. C. NOELL, Assistant Secretary and Fiscal Agent. WALTER WYATT, General Counsel. FEDERAL ADVISORY COUNCIL District District District District District District No. No. No. No. No. No. 1 2 3 4 5 6 (BOSTON) ( N E W YORK) (PHILADELPHIA) (CLEVELAND) (RICHMOND) (ATLANTA) District No. 7 (CHICAGO) District No. 8 (ST. LOUIS) District District District District No. No. No. No. ' THOMAS M. STEELE. ROBERT H. TREMAN. HOWARD A. LOEB. J. A. HOUSE. HOWARD BRUCE. JOHN K. OTTLEY. MELVIN A. TRAYLOR, Vice President. WALTER W. SMITH, President. 9 (MINNEAPOLIS) THEODORE WOLD. 10 (KANSAS CITY) WALTER S. MCLUCAS. 11 (DALLAS) J. H. FROST. 12 (SAN FRANCISCO) HENRY M. ROBINSON. WALTER LICHTENSTEIN, Secretary. u OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Governor Boston New York Frederic H. Curtiss... Roy A. Young J. H. Case Geo. L. Harrison Philadelphia Cleveland. _ Richmond R. L. Austin _ George DeCamp Wm. W. Hoxton Atlanta Chicago _ Oscar Newton Eugene M. Stevens St. Louis _... John S. Wood Deputy governor Cashier W. W. Paddock W. R. Burgess J. E. Crane A. W. Gilbart E. R. Kenzel Walter S. Logan L. R. Rounds L. F. Sailer Wm. H. Hutt . . M. J. Fleming W. Willett. C. H. Coe.i Ray M. Gidney.* J. W. Jones.1 W. B. Matteson.i J. M. Rice.1 1 Allan Sproul. L. Werner Knoke.1 C. A. Mcllhennv. Geo. W. Norris W. G. McCreedy.2 H. F. Strater. E. R. Fancher Geo. H. Keesee. George J. Seay C. A. Peple John S. Walden, jr.* R. H. Broaddus M. W. Bell. W. S.Johns Eugene R. Black W. S. McLarin, jr.* H. F. Conniff 1 C. R. McKay . . W. C. Bachman. J. B. McDougal D. A. Jones.1 John H. Blair 0. J. Netterstrom.1 J. H. Dillard E. A. Delaney.21 S. F. Gilmore. Wm. McC. Martin.__ 0. M. Attebery A TT TJ 111 2 F. N. Hall.* G. 0. Hollocher.* 0. C. Phillips.* H. I. Ziemer. Harry Yaeger W. B. Geery Frank C. Dunlop.2 H. I. Ziemer C. A. Worthington.__. J. W. Helm. Geo. H. Hamilton T W TTplm Fred Harris. R. R. Gilbert B. A. McKinney W. 0. Ford.1 R. B. Coleman Wm. M. Hale. Wm. A. Day Jno. U. Calkins.. Ira Clerk Q Minneapolis Kansas City Dallas John R. Mitchell M. L. McClure C. C. Walsh San Francisco Isaac B. Newton 1 Assistant deputy governor. ' 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. Nevin. Hugh Leach. W. T. Clements. Marcus Walker. ... Hugh Foster. A. E. Walker. J. B. Fort, jr. W. R. Cation. John T. Moore. W. H. Glasgow. A. F. Bailey Federal Reserve Bank of— Minneapolis: Helena branch Kansas City: Omaha branch Denver branch Oklahoma City branch Dallas: El Paso branch Houston branch San Antonio branch San Francisco: Los Angeles branch Portland branch Salt Lake City branch Seattle branch __ __ Spokane branch Managing director R. E. Towle. L. H. Earhart. ___ J. E. Olson. C. E. Daniel. J. L. Hermann. W. D. Gentry. M. Crump. W. N. Ambrose. R. B. West. W. L. Partner. C. R. Shaw. D. L. Davis. SUBSCRIPTION PRICE OF BULLETIN The FEDERAL RESERVE BULLETIN is the board's medium of communication with member banks of the Federal reserve system and is the only official organ or periodical publication of the board. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60; single copies, 25 cents. in TABLE OF CONTENTS Page Review of the month—Recent banking developments Changes in foreign central bank discount rates , Federal Reserve Board's comments and recommendations on the Glass bill Statement of Federal Advisory Council on the Glass bill First quarterly report of the Reconstruction Finance Corporation Condition of all banks in the United States on Dec. 31, 1931 Annual report of the National Bank of Belgium Annual report of the German Reichsbank Annual report of the National Bank of Switzerland National summary of business conditions Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, etc Member and nonmember bank credit— All banks in the United States All member banks Weekly reporting member banks in leading cities Brokers' loans Acceptances and commercial paper Discount rates and money rates Bank suspensions and banks reopened Member bank holdings of eligible assets (Government securities and eligible paper) Security prices, security issues, United States Government securities Production, employment, car loadings, and commodity prices Merchandise exports and imports Department stores—indexes of sales and stocks Freight-car loadings, by classes Financial statistics for foreign countries: Gold reserves of central banks and governments Gold production Gold movements Government note issues and reserves Bank for International Settlements Central banks . Commercial banks Discount rates of central banks Money rates Foreign exchange rates Price movements— Security prices Wholesale prices Retail food prices and cost of living Federal reserve statistics by districts, etc.: Banking and financial statistics Industrialjmd commercial statistics IV 203 205 206 222 225 234, 270-273 242 244 251 227 228-231 234, 270-273 232-234, 274 235, 275 235 236 238, 276 237, 278-280 237 239 240, 281-283 241 241 241 255 256 256-258 259 259 260-262 263 264 264 265 266 266,267 267 268-280 281-284 FEDERAL RESERVE BULLETIN VOL. 18 APRIL, 1932 REVIEW OF THE MONTH Banking conditions showed further improvement in March. Bank suspensions, which had numbered 342 in January and 122 in February, were 45 in March, and deposits of banks that reopened their doors in March were approximately as large as deposits in those that suspended during the month. Restoration of confidence, following upon the reduction in bank failures, was reflected in a continued and accelerated return flow of currency from the public to the banks. Liquidation of bank loans continued during the month, but was offset in part by an increase in investments, particularly in holdings of United States Government securities. Reserve balances of member banks with the reserve banks, which had declined practically continuously from the middle of last year to the end of February, showed an increase in March. As a consequence chiefly of the return flow of currency, together with an increase in the country's stock of monetary gold, the total volume of reserve bank credit declined in March by $112,000,000. There was an increase of $130,000,000 in the reserve banks' holdings of United States Government securities, accompanied by a decline in their holdings of acceptances and a reduction of $200,000,000 in the indebtedness of member banks to the reserve banks. Although purchases of United States Government securities by the reserve banks were made largely in New York, the funds thus placed in the market were distributed to a considerable extent to other parts of the country through Treasury transfers of funds, in part to cover payments of loans made by the Reconstruction Finance Corporation and in part as ordinary Government ex- No. 4 penditures. As a consequence of the return flow of currency, the Treasury transfers, and other factors affecting the interdistrict movement of funds, discounts for member banks declined at all the Federal reserve banks, the largest declines being reported by the Federal Reserve Banks of New York, Philadelphia, and Cleveland. Conditions in the money market continued to be easy and there was some decline in short-term money rates. On March 29 the Federal Reserve Board submitted to the Committee on Banking and Board's letter to Currency of the United States Senate ComSenate its comments and recmittee ommendations on Senate Bill 4115, introduced by Senator Glass on March 17, 1932. This bill was drafted in accordance with a resolution adopted by the Senate in 1930, and proposes many fundamental changes in the country's banking laws. The board's report on the bill, which represented the unanimous recommendations of the Federal Reserve Board, was presented to the committee by Governor Eugene Meyer at a hearing on March 29, and has been printed in the record of the committee's hearings, together with Governor Meyer's oral testimony. The report was in the form of a memorandum in which the bill was discussed in detail, section by section, and was accompanied by a letter of transmittal summarizing the board's comments and recommendations regarding the bill. The full text of the report and of the accompanying letter will be found on pages 206-221 of this issue of the BULLETIN. The Federal Advisory Council at a special meeting on March 29 issued a statement of its recommendations respecting the bill, which appears on pages 222-225. 203 204 FEDERAL RESERVE BULLETIN Gold movements in Europe during the past month were similar in character to those of the month preceding. The B m k of F r a n c e * increased its gold stock by $106,000,000, nearly two-thirds of which was taken from the United States. The remainder was drawn largely from the London bullion market, where Indian and South African shipments were disposed of in substantial volume. The loss of $13,000,000 of gold by Germany reflected the partial repayment by the Riechsbank of the $100,000,000 emergency credit obtained last June and periodically renewed. The most recent renewal—that of March 4— provided for the repayment of 10 per cent of the principal; and the Keichsbank drew the required funds from its gold reserves. GOLD RESERVES OF SELECTED CENTRAL APRIL, 1932 change had fluctuated between $3.40 and $3.50. This level was considerably above that of last December; and its maintenance, at a time when the British Government was preparing to liquidate indebtedness abroad, was followed by increased confidence in the pound. The resulting high premium on forward transactions heightened the attractiveness of London as a market for the investment of short-term funds. Late in March the dollar rate on sterling was at the level of $3.75. Money rates on the open-market in London continued to ease. Bankers' balances at the Bank of England remained large throughout the month ending March 23, as indicated by the accompanying condition statement. In fact, heavy purchases of securities by the Bank of England increased these balances substantially, notwithstanding large withdrawals of BANKS BAXK OF ENGLAND [In millions of dollars] [In thousands of pounds sterling] Change from— Date 1932 Central bank of - Gold reserves I England France Germany Italy Belgium Netherlands Switzerland v Preliminary. i Ma .. Ma Mai Ma _.; Ma ; MM : Mar 588 : 2,999 | 209 i 349 ! 352 ! 471 i ! Month before -13 -2 +3 -11 Mar. 23, Year before -118 +800 -33(5 +17 +149 +173 +347 j Gold Discounts and advances Securities... Bankers' - - deposits.. " Other deposits..... Notes in circulation. m 2 [ 120,807 I 11,273 | 357,450 73,449 43. 409 358. 835 Change from— ... Feb. 24, ! Mar. 25, . 1932 ! 1931 ! +34 , -22,807 -220 1 -89 +15,302 ; +49, 423 +5,525 i +15, 745 - 2 . 914 +198 + 12,432 + 10,028 notes into circulation. In the latter part of The British Government on March 4 repaid March the rate on prime bankers' acceptances $150,000,000 and on March 29 an additional averaged below 3 per cent and that on treasury bills below 2 per cent. The Bank of England «' L. <• IT i A $30,000,000 of the $200,000,000 Bank of England ' ,., , , , . lowered its rate of discount on March 10 from 1-year credit extended on Au5 to 4 per cent and on March 17 to 3}i per cent. gust 28, 1931, by a consortium of private banks Bank of France holdings of foreign exchange in this country. Retirements of $100,000,000 declined further during the four weeks ending of a similar credit granted by private lenders in March 18, by about 3,800,000,France were also announced during the month. Bank of France 000 francs. Only 2,700,000,000 In conjunction with these payments all restricfrancs of this decline was represented by direct tions on dealings in sterling exchange were reconversions into gold. The remaining 1,100,moved. 000,000 francs was purchased from the bank Throughout most of January and February, with drafts on "other deposits," wliich include the two months immediately preceding the first of these repayments, quotations on sterling ex- balances of the French commercial banks. 205 FEDERAL RESERVE BULLETIN APRIL, 1932 Until recently the flow of short-term funds of the German commercial banks now in proginto Paris, including the drawing by French ress. This reorganization is discussed more private banks on their foreign balances, had KEICHSBAXK been for some months a principal source not only [In millions of reichsm.irks] of the gold acquired by the Bank of France outside of conversion operations, but also of foreign Change from— currencies used in paying for a net excess of Mar. 23, \ '• 1932 F e b . 23, i M a r . 23, merchandise imports into the country. The 1932 ! 1931 flow of short-term funds into France has lately Gold.... Foreign exchange reserves Discounts and advances.. Securities Deposits Notes in circulation _ BANK OF FRA.VCE lln millions of francs] 877 142 3,354 302 49i : 4,005 -53 -4 +41 +200 +159 +3 i i i • -1,409 -81 +1,793 +260 +148 +240 Change from— ! M a r . IS, !• | 1932 Gold Foreign exchange Domestic discounts and advances Government deposits Other deposits : : Notes in circulation"-"."._ "~~~ ~ I ~ ~ . . . . . . . Feb. 19, i Mar. 20, 1932 ; 1931 76,f>09 + 2 , 094 i +20, 406 12,728 - 3 , 8 2 7 i - 1 3 . 548 7,101 -1,804 -007 I 3,823 +349 : - 8 , 034 23,837 i -1,339 +11.953 81,929 ! -050 + 4, 559 diminished, however, partly because the foreign balances of French banks, as evidenced by the reports of the four large Paris institutions, have been largely repatriated. An additional factor has been the increased flow of funds from Paris and elsewhere to London, consequent upon the improvement of financial conditions in England. At the same time French foreign trade has continued adverse, and it has therefore been necessary for the market to purchase exchange from the Bank of France. The German Ileichsbank lost 57,000,000 reiehsmarks of gold and foreign exchange reserves in the month ended Reichsbank March 23. About 42,000,000 reichsmarks of this loss was attributable to the fact that on March 4 the bank repaid 10 per cent of the $100,000,000 credit granted by a group of central banks last June. Deposits at the Reichsbank increased during the month to the largest figure reported since last November. This expansion is to be associated with the increase of 200,000,000 reichsmarks in security holdings consequent upon the reorganization fully in the Reichsbank's annual report for 1931 printed elsewhere in this BULLETIN. The increase in the security portfolio of the bank represents the purchase of 200,000,000 reiebsmarks of new capital stock of the Gold Discount Bank to enable the latter to participate in the program of the German Government for reconstruction of the principal commercial banks. The Gold Discount Bank, with the funds thus placed at its disposal, purchased capital shares of the reorganized institutions, while the Government not only purchased capital shares in substantial volume but in addition advanced funds to be used in absorbing losses sustained by the commercial banks. Changes in Bill Rates At the Federal Reserve Bank of New York buying rates on bills having maturities up to 120 days were reduced March 25 as follows: Bills having maturities up to 45 days, from 2% to 2% per cent; 45 to 120 days from 2% to 2% per cent. Changes in Foreign Central Bank Discount Rates The following changes in discount rates during the period March 13-April 1 have been reported by central banks in foreign countries: Austrian National Bank—March 18, from 8 to 7 per cent. Bank of England—March 17, from 4 to 3% P e r cent. Bank of Italy—March 21, from 7 to 6 per cent. 206 FEDERAL RESERVE BULLETIN APRIL, 1932 FEDERAL RESERVE BOARD'S COMMENTS AND RECOMMENDATIONS ON THE GLASS BILL (S. 4115) MARCH 29, 1932. Hon. PETER NORBECK:, Chairman Committee on Banking and Currency, United States Senate, Washington, D. C. DEAR SENATOR NORBECK: On March 17, 1932, I received a letter from Senator Glass inclosing copies of Senate bill 4115, and stating that the Banking and Currency Committee would be glad to have the Federal Reserve Board make any comments or suggestions that in its judgment would seem desirable. Accordingly, there is inclosed herewith for the consideration of your committee a memorandum containing the board's comments and recommendations. The subjects dealt with in the bill may be classified under three general heads: (1) Those relating more directly to the Federal Reserve Board and the reserve banks; (2) those concerning primarily member banks, and (3) those dealing with affiliates of member banks. The Federal Reserve Board is in sympathy with the purpose of the bill to strengthen the supervision of the Federal reserve system over general credit conditions and to invest the Federal reserve authorities with certain disciplinary powers in relation to banks that pursue unsafe and unsound policies or abuse the privileges of membership. The board's recommendations on this subject are incorporated in its proposed revision of sections 3 and 29 of the bill. With respect to the section of the bill dealing with open-market operations, the board calls attention to the fact that there is already in existence an open-market committee on which each of the Federal reserve banks has representation. This has come about as the result of natural development. The board believes that it would be inadvisable to disturb this development by crystallizing into law any particular procedure. The board believes that nothing further is necessary or advisable at this time than an amendment clarifying its power of supervision over open-market operations of the Federal reserve banks and their relationships with foreign banks, as set out in the memorandum attached. The board is not in sympathy with the provisions of the bill discriminating against member-bank collateral notes. Experience shows that the particular instrument on which Federal reserve credit is obtained is not an adequate test of the use to be made by the member bank of the proceeds of the credit and that an attempt to control speculation through restrictions on member-bank collateral notes would not be effective in accomplishing the purpose of this section of the bill. Indeed, it probably would interfere seriously with the convenient and economical operation of the system. In this connection the Federal Reserve Board desires to renew the recommendation made in its annual reports for several years, that the maturity for which advances may be made to member banks on their promissory notes secured by paper which is eligible for discount be increased from 15 to 90 days. Such an amendment would be especially helpful to country banks. The board is of the opinion that the adoption of a system of reserves based on velocity of accounts as well as on their volume, as recommended by the system's committee on reserves, would be an important step in strengthening the influence that the Federal reserve system could exert in the direction of sound credit conditions. The section of the bill dealing with reserves would accentuate rather than reduce the inequalities that have grown up in the distribution of reserves between different classes of member banks. The board also believes it should not be overlooked that this section of the bill would exert a tightening influence on 207 FEDERAL RESERVE BULLETIN APRIL, 1932 credit conditions at times when it would be contrary to the public interest. The board is in favor of establishing a liquidating corporation, but proposes to limit the scope of its operations to member banks and suggests a different method of financing it, together with certain changes in the provisions for its administration. If the section on branch banking is enacted in the form proposed in the bill, it is suggested that certain sections of existing law be modified so as to bring them into harmony with the purposes indicated in this section of the bill. With respect to affiliates the board believes that important reforms to be accomplished at the present time are the granting of power to the supervisory authorities to obtain reports and to make examinations of all affiliates of member banks and the prescribing of limitations on the loans that a member bank may make to its affiliates. The board realizes that many evils have developed through the operation of affiliates connected with member banks, particularly affiliates dealing in securities. The attached memorandum contains a draft of a provision for the separation of such affiliates after a lapse of three years. The board takes the view that legislation further materially restricting the character of member-bank loans and investments is not desirable at a time when the country's banking system is going through a period of severe readjustment. Some of the provisions of the proposed bill would have a tendency to bring about further contraction of credit and thus retard the recovery of business. It is for these reasons that changes in a number of sections of the bill are suggested. It should be recognized that effective supervision of banking in this country has been seriously hampered by the competition between member and nonmember banks, and that the establishment of a unified system of banking under national supervision is essential to fundamental banking reform. Copies of this letter and the inclosed memorandum are being sent to Senator Glass, and the board will be glad to supply you with copies 110331—32 2 for the convenience of each member of your committee. Very truly yours, EUGENE MEYER, Governor. COMMENTS AND RECOMMENDATIONS l SECTION 2 This section defines affiliates and upon its scope depends in a large measure the scope and effect of all provisions of the bill relating to affiliates. While the definition contained in the bill mentions certain specific types of institutions which are frequently affiliated with member banks, the words "or a corporation" in line 4 on page 2 make it applicable to corporations of any character which are affiliated with member banks in any of the ways described in the succeeding paragraphs of the definition. It is believed that the most satisfactory solution of this problem is to make the definition very broad, but in dealing with affiliates to observe the following principles: (1) To require them to make reports and to submit to examination at the discretion of the Federal Reserve Board or the Comptroller of the Currency; (2) to limit the loans that can be extended to an affiliate by a member bank; and (3) to prohibit the tying up of capital stock of an affiliate with the capital stock of a member bank. In favoring these limitations the board has in mind that it may not be desirable to abolish all the existing relationships between member banks and their affiliates, but that it is desirable to protect the operations of the member banks from being unduly influenced by their affiliates. Recent experience has demonstrated that operations of the affiliates at times have unfavorable effects on the condition of member banks. With these principles in mind it is recommended that the definition of affiliates be broadened by eliminating from paragraph (b) in lines 1 to 4, page 2, all references to specific types of corporations, and by inserting other words which would make the definition applicable not only to corporations but to business trusts, associations, or other similar organizations, regardless of the type of business in which they are engaged. Certain other changes in the phraseology of the definition are also suggested for the purpose of clarifying them. The changes suggested are as follows: 1 All references are to sections, pages, and lines of Senate bill 4115 in the form in which it was introduced on Mar. 14 (calendar day, Mar. 17), 1932. 208 FEDERAL RESERVE BULLETIN A PHIL, 1932 1. On page 2 change lines 1 to 4, inclusive, it from the privilege of using the system's to read as follows: credit facilities. In this connection attention (b) The term "affiliate" includes any corporation, is invited to the fact that section 4 of the Fedbusiness trust, association, or other similar organiza- eral reserve act requires the chairman and tion. Federal reserve agent at each Federal reserve 2. In lines 9, 11, and 22 on page 2, strike out bank to "make regular reports to the Federal the words "managing officers" and substitute Reserve Board" and to "act as its official in lieu thereof the words " persons exercising representative for the performance of the functions conferred upon it by" the Federal reserve similar functions." 3. In lines 9 and 18 on page 2 and in line 3 act, It is recommended that section 3 of the bill on page 3 strike out the words " annual meeting" and substitute in lieu thereof the word be changed to read as follows: SEC. 3. The paragraph of section 4 of the Federal "election." SECTION 3 The Federal Reserve Board understands that the principles underlying section 3 of the bill are (1) that discounting at the Federal reserve banks is a privilege and not a right; (2) that the Federal reserve system has the responsibility of keeping itself informed about the use of bank credit; (3) that the power of Federal reserve banks to withhold credit accommodations should be used to discourage unsound banking practices; and (4) that the Federal Reserve Board should have power to suspend a member bank from the use of Federal reserve credit facilities. The board is in sympathy with these principles. For the purpose of accomplishing these objectives a substitute for section 3 is suggested. This substitute includes a revision of the paragraph of section 4 of the Federal reserve act which now reads as follows: Said board shall administer the affairs of said bank fairly and impartially and without discrimination in favor of or against any member bank or banks and shall, subject to the provisions of law and the orders of the Federal Reserve Board, extend to each member bank such discounts, advancements and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks. In this revision [see below] the word "may" is substituted for "shall" and the remaining language of the section is made somewhat more general than in the bill. Member banks as a rale do not borrow to relend, but to make up deficiencies in reserves arising from withdrawals of deposits or from other causes. It is therefore usually impossible to say that a loan to a member bank is granted for this or that specific purpose. However, it would be possible to determine whether the loan and investment policies of a bank are inconsistent with the purposes of the Federal reserve act, and, if so, to refuse accommodation to such bank or in aggravated cases to suspend reserve act, as amended, which begins with the words* "Said board shall administer the affairs of said bank fairly and impartially," is amended and reenacted to read as follows: "Said board of directors shall administer the affairs of said bank fairly and impartially and without discrimination in favor of or against any member bank or banks and may, subject to the provisions of law and the orders of the Federal Reserve Board, extend to each member bank such discounts, advancements and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks, the maintenance of sound credit conditions and the accommodation of commerce, industry and agriculture. The Federal Reserve Board may prescribe regulations further defining within the limitations of this act the conditions under which discounts, advancements and accommodations may be extended to member banks. Each Federal reserve bank snail keep itself informed of the general character and amount of the loans and investments of its member banks with a view to ascertaining whether undue use is being made of bank credit for the speculative carrying of or trading in securities, real estate or commodities, or for any other purpose inconsistent with the maintenance of sound credit conditions; and, in determining whether to grant or refuse advances, rediscounts or other credit accommodations, the Federal reserve bank shall give consideration to such information. The chairman of the Federal reserve bank shall report to the Federal Reserve Board any such undue use of bank credit by any member bank, together with his recommendation. Whenever, in the judgment of the Federal Reserve Board, any member bank is making such undue use of bank credit, the board may, in its discretion, after reasonable notice and an opportunity for a hearing, suspend such bank from the use of the credit facilities of the Federal reserve system and may terminate such suspension or may renew it from time to time.'' SECTION 4 It is recommended that this section be omitted. It prohibits banks that belong to a group or a chain from voting for Federal reserve bank directors. The -wording of the section is such as not to confine the prohibition to group and chain banks, however, but to include all banks that are not controlled entirely by locally resident stockholders. Since the stock of many important banks is widely owned throughout the country, this might restrict the voting FEDERAL RESERVE BULLETIN APRIL, 1932 privilege to smaller and less important banks that are owned by local stockholders. It is to be feared that this section would bar from participation in the selection of Federal reserve directors many of the better managed banks. SECTION 5 This section would amend the first paragraph of section 7 of the Federal reserve act so that, after the payment of expenses and dividends, all of the net earnings of a Federal reserve bank over and above any amounts necessary to restore its surplus to the amount on December 31, 1931, would be paid to the Federal Liquidating Corporation. The amendment is also worded in such a way as to prevent the payment of any dividends out of surplus and to prevent the payment of dividends whenever the surplus of a Federal reserve bank is less than it was on December 31, 1931. A different method of financing the liquidating corporation is proposed and will be discussed under the appropriate section. For this reason a modification of section 5 is suggested which would not change the provisions of the present law in regard to the surplus of the Federal reserve banks, but would authorize the Secretary of the Treasury to use the franchise tax received from the Federal reserve banks for the purpose of supplementing the funds of the corporation. As changed, section 5 of the bill would read as follows: SEC. 5. The second paragraph of section 7 of Die Federal reserve act, as amended, is amended to read as follows: "The net earnings derived by the United States from Federal reserve banks shall, in the discretion of the Secretary of the Treasury (1) be used to supplement the gold reserve held against outstanding United States notes, or (2) be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury, or (3) be invested in debentures or other such obligations of the Federal Liquidating Corporation. Should a Federal reserve bank be dissolved or go into liquidation, any surplus remaining, after the payment of all debts, dividend requirements as hereinbefore provided, and the par value of the stock, shall be paid to and become the property of the United States and shall be similarly applied." SECTION 6 209 it is recommended that section 6 of the bill be changed to read as follows: SEC. 0. Section 9 of the Federal reserve act, as amended, is further amended by adding at the end thereof two new paragraphs reading as follows: ""Whenever it shall be deemed necessary in order to obtain adequate information regarding the relations between any bank admitted to membership under the provisions of this section and its affiliates or the effect of such relations upon the management or condition of such bank, it may be required under rules and regulations prescribed by the Federal Reserve Board to obtain and furnish such reports as to any or all of its affiliates as may be called for. Each such report shall contain such information and shall be submitted at such time as may be specified in the call therefor. Any member bank which fails to furnish any report of an affiliate when and as required shall be subject to a penalty of $100 for each day during which such failure continues. Such penalty may be assessed by the Federal Reserve Board, in its discretion, and, when assessed, may be collected by the Federal reserve bank by suit or otherwise. "Any examiner selected or approved by the Federal Reserve Board may examine any affiliate of any bank admitted to membership under the provisions of this section when it shall be deemed necessary in order to inform the Federal Reserve Board or t lie Federal reserve bank of the relations of such affiliate with such member bank or of the effect of such relation* upon the management or condition of such member bank. The examiner making the examination of any such affiliate shall have power to make a thorough examination of all the affairs of the affiliate, and in doing so he shall have power to administer oaths and to examine any of the officers, directors, employees, and agents thereof under oath, and to make a report of his findings to the Federal Reserve Board or to the Federal reserve bank. The expenses of any examination made under the provisions of this paragraph may, in Die discretion of the Federal Reserve Board, be assessed against the affiliate examined and, when so assessed, shall be paid by the affiliate examined. If such affiliate shall refuse to pay such expenses or shall fail to do so within sixty days after the date of such assessment, then such expenses may be assessed against the affiliated member bank and, when so assessed, shall be paid by sr.ch member bank: Provided, hoircrcr, That, if the affiliation is with two or more member banks, such expenses may be assessed against, and collect eel from, any or all of such member banks in such proportions as the Federal Reserve Board may prescribe. If any affiliate of a bank admitted to membership under the provisions of this section shall refuse to permit, an examiner to make an ! examination of such affiliate or refuse to give any in| formation required in the course of any such examination, the member bank with which it is affiliated shall be subject to a penalty of not more than $100 for each day that any such refusal shall cont inue. Such penalty may be assessed by the Federal Reserve Board in its discretion, and, when so assessed, may be collected by the Federal reserve bank bv suit or otherwise." In order that reports of affiliates of State | SECTION 7 member banks may be required only when ; deemed necessary by the Federal Reserve ; If this section is adopted in its present form, Board and also in order that suitable provision ; certain changes should be made in the text for may be made for the examination of affiliates j the purpose of clarification and of providing for of State member banks when deemed necessary, ' certain matters not now covered in the bill 210 FEDERAL RESERVE BULLETIN APRIL, 1932 which will be referred to at the appropriate places. For the purposes of clarification, it is suggested that subsection (b) be amended as follows: 1. In lines 6, 11, and 12 on page 8 it is suggested that the word "appointive" be inserted before the word "member." 2. In line 13 on page 8 it is suggested that after the words "twelve years" there be inserted the words "from the expiration of the term of his predecessor." In order that the domicile of the board may be fixed for legal reasons, and in order that provision may be made for a chairman of the board, it is suggested that the following be inserted at the beginning of line 23 on page 8: reserve banks, in proportion to their capital stock and surplus, assessments sufficient to defray all costs and expenses incurred under the provisions of this paragraph." SECTION 8 The principal offices of the board shall be in the District of Columbia. At meetings of the board the governor shall preside as chairman, and, in his absence, the vice governor shall preside. In the absence of both the governor and the vice governor the board shall elect a member to act as chairman pro tern. SEC. 9. The Federal reserve act, as amended, is amended by inserting between sections 23 and 24 thereof the following new section: ''Section 23(a). No national banking association and no State member bank shall (1) make any loan or any extension of credit to, or purchase securities under repurchase agreement from, any of its affiliates, or (2) invest any of its funds in the capital stock, bonds, or other obligation of any such affiliate, or (3) accept the capital stock, bonds, or other obligations of any such affiliate as collateral security for advances made to any individual, partnership, association, or corporation; if, in the case of any such affiliate, the aggregate amount of such loans or extensions of credit, repurchase agreements, investments, and advances against such collateral security will exceed 10 per centum of the capital stock and surplus of such national banking association or State member bank, or if, in the case of all such affiliates, the aggregate amount of such loans, extensions of credit, investments, and advances against such collateral security will exceed 20 per centum of the capital stock and surplus of such national banking association or State member bank: Provided, however, That nothing in this section, or in any section of the banking act of 1932, shall be construed as authorizing member banks to invest their funds in stock otherwise than as specifically authorized by existing law. "Each loan or extension of credit to an affiliate within the foregoing limitations shall be secured by collateral having a market value at the time of making the loan or extension of credit of at least 20 per centum more than the amount of such loan: Provided, That this requirement shall not apply to loans or extensions of credit on the security of obligations of the United States Government, Reconstruction Finance Corporation, Federal intermediate credit banks, or Federal land banks, or on the security of notes, drafts, bills of exchange, or acceptances eligible for discount or purchase by Federal reserve banks: And provided further, That when any loan is made on the security of obligations of any State or political subdivision or agency thereof such obligations shall have a market value at the time of making the loan of at least 10 per centum more than the amount of such loan. A loan or extension of credit to a director, officer, clerk, or other employee or any representative of any such affiliate shall be deemed a loan to the affiliate to the extent that the proceeds of such loan are_used for the benefit of, or transferred to, the affiliate. If the authority of the Secretary of the Treasury to assign quarters to the Federal Reserve Board is repealed, it would seem that the board should be authorized to purchase or construct a building for its own use and that, in the interest of convenience and efficiency, space should be provided in such building for the Comptroller of the Currency and his staff and for the proposed Federal Liquidating Corporation. For this purpose it is suggested that the following be added at the end of section 7 of the bill: (d) Section 10 of the Federal reserve act, as amended, is further amended by adding at the end thereof a new paragraph reading as follows: "The Federal Reserve Board is authorized and empowered to acquire by purchase, condemnation, or otherwise, a building located in the District of Columbia which will provide suitable and adequate offices wherein the functions of the board and the Comptroller of the Currency may be carried on, or to acquire by purchase, condemnation, or otherwise such site located in the District of Columbia as it may deem necessary and to cause to be constructed thereon a building which will provide suitable and adequate offices for the purposes of the Federal Reserve Board and the Comptroller of the Currency, and to maintain, repair, enlarge, or remodel any building so acquired or constructed. The Federal Reserve Board may assign offices in any such building for the use of the Comptroller of the Currency and the Federal Liquidating Corporation without making any charge for the use of such offices, and nothing contained in the act of June 3, 1864, or in section 331 of the Revised Statutes (title 12, section 13, U. S. C ) , or in any other provision of law shall be construed as preventing the Comptroller of the Currency from making full use of any offices so assigned and from keeping therein the records and all other valuable things belonging to his department. The Federal Reserve Board may levy upon the Federal The purpose of this section is to prevent the undue use of bank loans for speculation in securities. It is believed that this is sufficiently covered in section 3, and therefore the omission of section 8 is recommended. SECTION 9 In accordance with the principles indicated in the discussion of section 2 it is recommended that section 9 of the bill be changed to read as follows: FEDEJRAL RESERVE BULLETIN APRIL, 1932 "The provisions of this section shall not apply to any affiliate of such national banking association or State member bank, (1) the sole function of which is to hold its banking house or houses and the site or sites thereof, (2) the sole function of which is to conduct a safe deposit business, (3) in the capital stock of which such bank has been authorized to invest pursuant to section 25 of the Federal reserve act, (4) organized under section 25 (a) of the Federal reserve act, or (5) transacting only the business of an agricultural credit corporation or livestock loan company; but as to such affiliates member banks shall continue subject to the provisions of existing law limiting the amounts which they may lend to, or invest in the stock or other obligations of, such colorations." SECTION 10 This section of the bill deals with two separate and distinct subjects—(1) open-market operations of the Federal reserve banks, and (2) the proposed Federal Liquidating Corporation. For convenience, these subjects will be discussed separately. OPEN-MARKET OPERATIONS The first part of section 10 would establish a Federal open-market committee along the lines of the existing open-market policy conference, which functions as a piece of administrative machinery without specific legal status. The statement in paragraph (b) of section 10 which says that "No Federal reserve bank shall engage in open-market operations, except after approval and authorization by the committee," appears to be too rigid. It deprives an individual reserve bank of all authority to make purchases in the open market except after obtaining the consent of both the board and the committee. The open-market committee would have no authority to act without approval of the board and the board would have no authority to act without approval of the committee. This would result in the possibility of obstruction of any system program and would tend to make the operation of the Federal reserve system less timely and less efficient. Lines 19 to 23 in paragraph (c) on page 12 of this section would incorporate into law a principle which the Federal Reserve Board has adopted in practice. The following substitute for the first part of section 10 of the bill is suggested: SEC. 10. Section 14 of the Federal reserve act, as amended, is further amended by striking out the words "Every Federal reserve bank shall have power;" and inserting in lieu thereof the following: "Subject to such regulations, limitations, restrictions, and procedure as the Federal Ileserve Board may prescribe, every Federal reserve bank shall have power." Section 14 of the Federal reserve act, as amended, is further amended by adding at the end thereof a new paragraph reading as follows: 211 "The time, character, and volume of all purchases and sales in the open market under this section shall be governed with a view to accommodating commerce and business and with regard to their bearing upon the general credit situation of the country." FEDERAL LIQUIDATING CORPORATION The other part of section 10 deals with the proposed Federal Liquidating Corporation, and there is submitted a proposed substitute for the section as drafted in the bill. The substitute would confine the benefits of the liquidating corporation to member banks. Provision is made for assistance to nonmember banks in the Reconstruction Finance Corporation act, and it would render membership in the system more attractive if the benefits of the corporation were confined to member banks. In the substitute it is proposed that $100,000,000 of the capital of the liquidating corporation be subscribed by the Treasury. This subscription to capital may be considered as being derived from the franchise tax previously paid to the Treasury by the reserve banks. In addition, it is proposed that the corporation be authorized to issue debentures up to twice the amount of its subscribed capital and that the Federal reserve banks be given authority to purchase those debentures up to one-fourth of their surplus. This is not a propitious time to ask the member banks to contribute to the liquidating corporation. The banks are going through a very difficult period and to tax them for this purpose would be a considerable hardship on them. In order to make the operations of the corporation more easily manageable, it is proposed that the directorate be comprised of 5 members instead of 14, as proposed in the bill. For the reasons which have been stated the following separate section on the Federal Liquidating Corporation has been drafted: SEC. 5A. The Federal reserve act, as amended, is further amended by inserting between sections 28 and 29 thereof the following new section: "SEC. 28A. (a) There is hereby created a Federal Liquidating Corporation (hereafter referred to as the 'corporation') for the purpose of making loans on, or purchasing and liquidating as hereinafter provided, all or any part of the assets of any member bank for which a receiver has been appointed. The term 'receiver7 as used in this section shall mean a receiver of a national bank, and a receiver, liquidating agent, commission, person, or other agency charged by State law with the responsibility and the duty of winding up the affairs of an insolvent State member bank. "(b) The management of the corporation shall be vested in a board of directors consisting of five members, one of whom shall be the Comptroller of the Currency, one a member of the Federal Reserve Board designated by the board for the purpose, and three selected an- 212 FEDERAL RESERVE BULLETIN APRIL, 1932 nually by the governors of the twelve Federal reserve tion and the receiver, subject to the approval of (1) banks under such procedure as may be prescribed by the Comptroller of the Currency in the case of any national bank, or (2) the person or agency designated the Federal Reserve Board. "(c) The corporation shall have a capital stock of by State law in the case of any State bank; except $100,000,000, all of which shall be subscribed by the that, in no case shall the corporation make any loan United States of America and payment for which shall or purchase any assets in an amount which in the be subject to call in whole or in part by the board of opinion of the corporation shall not fully protect such corporation and no such loan or purchase shall be directors of the corporation. "There is hereby authorized to be appropriated out of made in the case of State member banks unless expressly any money in the Treasury not otherwise appropriated authorized by the law of the State in which the bank the sum of $100,000,000 for the purpose of making is located. Receivers of national banks are hereby payments upon such subscription. Receipts for pay- j authorized and empowered with the approval of the merits by the United States for or on account of such Comptroller of the Currency to borrow on, or sell, stock shall be issued by the corporation to the Secre- assets of banks of which they are receivers, and the tary of the Treasury and shall be evidence of the stock proceeds of every such sale or loan shall be utilized for the same purposes and in the same manner as other ownership of the United States. "Any Federal reserve bank may purchase and hold funds realized from the liquidation of the assets of such any debentures or other such obligations of the cor- banks. The Comptroller of the Currency may, in his poration in an amount noft exceeding one-fourth of discretion, pay dividends on proved claims at any time after the expiration of the period of advertisement the amount of its surplus fund. made pursuant to section 5235 of the Revised Statutes, " (d) The corporation shall have power— and no liability shall attach to the Comptroller of the "First. To adopt, alter, and use a corporate seal; "Second. To have perpetual succession from the Currency or to the receiver of any national bank by date of enactment hereof, unless it is sooner dissolved reason of any such payment for failure to pay dividends to a claimant whose claim is not proved at the time of by an act of Congress; "Third. To make contracts; to purchase, lease, and any such payment. If the amount realized from any hold or dispose of such real estate or personal property assets acquired by the corporation under the provisions as may be necessary or convenient for the transaction j of this section exceeds the sum paid therefor or loaned of its business; j thereon, the corporation shall"make an additional pay"Fourth. To sue and be sued, complain and defend : ment to the receiver of the bank equal to the amount of such excess, if any, after deducting the expenses of in any court of competent jurisdiction; "Fifth. To appoint, employ, and fix the compensa- j liquidating such assets and an amount equal to interest tion of such officers, employees, attorneys, and agents i at the rate of 6 per centum per annum. All loans made as shall be necessary for the transaction of the business by the corporation to receivers shall bear interest at of the corporation, without regard to the provisions of the rate of 6 per centum per annum. other laws applicable to the employment and com" (g) Money of the corporation not otherwise empensation of officers or employees of the United States, ! ployed shall be invested in securities of the Government to define their authority and duties, to require bonds of the United States, except that for temporary of them and fix the penalty thereof and to dismiss them periods, in the discretion of the board of directors, at pleasure. Nothing in this or any other act shall be funds of the corporation may be deposited subject to construed to prevent the appointment and compensa- check in any Federal reserve bank or with the Treastion as a director, officer, or employee of the corpora- urer of the United States. When designated for that tion of any officer or employee of the United States in purpose by the Secretary of the Treasury, the corporaany board, commission, independent establishment, or tion shall be a depositary of public moneys, except executive department thereof; receipts from customs, under such regulations as may "Sixth. To prescribe, amend, and repeal by its be prescribed by the said Secretary, and may also be board of directors by-laws and rules and regulations employed as a financial agent of the Government. not inconsistent with law governing the manner in It shall perform all such reasonable duties a depositary which its general business may be conducted and the of public moneys and financial agent of the Governprivileges granted to it by law may be exercised and ment as may be required of it. enjoyed; " (h) The corporation is authorized and empowered "Seventh. To exercise such incidental powers as to issue and to have outstanding at any one time in an shall be reasonably necessary to carry out the powers amount aggregating not more than twice the amount so granted. of its capital, notes, debentures, bonds, or other such " (e) The board of directors of the corporation shall obligations, to be redeemable at the option of the corpodetermine and prescribe the manner in which its l ration before maturity in such manner as may be obligations shall be incurred and its expenses allowed | stipulated in such obligations, to bear such rate or and paid. The corporation shall be entitled to the | rates of interest, and to mature at such time or times free use of the United States mails in the same manner i as may be determined by the corporation: Provided, as the executive departments of the Government. j That the corporation may sell on a discount basis The corporation with the consent of any Federal | short-term obligations payable at maturity without reserve bank or of any board, commission, independent ! interest. Obligations of the corporation may be seestablishment, or executive department of the Govern- I cured by assets of the corporation in such manner as ment, including any field service thereof, may avail ' shall be prescribed by the board of directors. Such itself of the use of information, services, and facilities i obligations may be offered for sale at such price or thereof in carrying out the provisions of this act. ! prices as the corporation may determine. The said " (f) Upon the application of the receiver of any obligations shall be fully and unconditionally guarmember bank, the corporation may in its discretion anteed both as to interest and principal by the" United purchase the assets of such bank, in whole or in part, ! States, and such guaranty shall be expressed on the face or make loans to the receiver on the security of such [ thereof. In the event that the corporation shall be assets or any portion thereof, on such terms and con- unable to pay upon demand, when due, the principal ditions as shall be agreed upon between the corpora- j of or interest on notes, debentures, bonds, or other such APRIL, 1932 obligations issued by it, the Secretary of the Treasury shall pay the amount thereof, which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amounts so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such notes, debentures, bonds, or other such obligations. " (i) All obligations issued by the corporation shall be exempt, both as to principal and interest, from all taxation (except estate or inheritance taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority. The corporation, including its franchise, its capital, reserves, and surplus, and its income, shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority, except that any real property of the corporation shall be subject to State, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. 11 (j) In order that the corporation may be supplied with «euch forms of obligations as it may need for issuance under this act, the Secretary of the Treasury is authorized to prepare such forms as shall be suitable and approved by the corporation, to be held in the Treasury subject to delivery, upon order of the corporation. The engraved plates, dies, bed pieces, and other material executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The corporation shall reimburse the Secretary of the Treasury for any expenses incurred in the preparation, custody, and delivery of such obligations. 44 (k) The corporation shall annually make a report of its operations to the Congress as soon as practicable after the 1st day of January in each year. 44 (1) Whoever, for the purpose of obtaining any loan from the corporation, or any extension or renewal thereof, or the acceptance, release, or substitution of security therefor, or for the purpose of inducing the corporation to purchase any assets, or for the purpose of influencing in any way the action of the corporation under this act, makes any statement, knowing it to be false, or wilfully overvalues any security, shall be punished by a fine of not more than $5,000, or by imprisonment for not more than two years, or both. "(in) Whoever (1) falsely makes, forges, or counterfeits any obligation or coupon, in imitation of or purporting to be an obligation or coupon, issued by the corporation, or (2) passes, utters, or publishes, or attempts to pass, utter, or publish, any false, forged or counterfeited obligation or coupon, purporting to have been issued by the corporation, knowing the same to be false, forged or counterfeited, or (3) falsely alters any obligation, or coupon, issued or purporting to have been issued bj* the corporation, or (4) passes, utters, or publishes, or attempts to pass, utter, or publish as true, any falsely altered or spurious obligation or coupon, issued or purporting to have been issued by the corporation, knowing the same to be falsely altered or spurious, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. " (n) Whoever, being connected in any capacity with the corporation, (I) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged, or otherwise entrusted to it, or (2) with intent to defraud the corporation or any other body, politic or corporate, or any individual, or to deceive any officer, 213 FEDERAL RESERVE BULLETIN auditor, or examiner of the corporation, makes any false entry in any book, report, or statement of or to the corporation, or without being duly authorized draws any order or issues, puts forth or assigns any note, debenture, bond, or other such obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. "(o) No individual association, partnership, or corporation shall use the words ' Federal Liquidating Corporation,' or a combination of these three words, as the name or a part thereof under which he or it shall do business. Every individual, partnership, association, or corporation violating this subdivision shall be punished by a fine of not exceeding $1,000, or by imprisonment not exceeding one year, or both. "(p) The provisions of sections 112, 113, 114, 115, 116, and 117 of the Criminal Code of the United States (U. S. C , title 18 ch. 5, sees. 202 to 207, inclusive), insofar as applicable, are extended to apply to contracts or agreements with the corporation under this act, which for the purposes hereof shall be held to include loans, advances, extensions and renewals thereof, and acceptances, releases, and substitutions of security therefor, purchases or sales of assets, and all contracts and agreements pertaining to the same. " (q) The Secret Service Division of the Treasury Department is authorized to detect, arrest, and deliver into the custody of the United States marshal having jurisdiction any person committing any of the offenses punishable under this section." SECTION 11 Section 11 imposes a discriminatory rate against member-bank collateral notes. It also prescribes limitations on the use of such notes by banks that may be making loans on stockexchange collateral. It is believed that the purposes of this section are accomplished by the proposed revision of section 3 and that no further limitations along this line are desirable. The theory underlying this section, namely, that there is a more direct connection between member-bank collateral notes and the use of reserve credit for speculative activity than between other borrowings and this activity, is unfounded. Member banks borrow on 15-day notes, because of the greater convenience both to them and to the Federal reserve j bank; and if this form of borrowing were pro! hibitcd or made more expensive, they would ! merely substitute the procedure of rediscount| ing eligible paper without any change in the use of the proceeds. For these reasons it is believed that this section would make the operation of the Federal reserve banks less efficient and more expensive. The recommendation has been made by the Federal Reserve Board in its annual reports for several years that the maturity for which advances may be made to member banks on their promissory notes secured by paper which 214 FEDERAL RESERVE BULLETIN is eligible for discount be increased from 15 to 90 days. Such an amendment would be especially helpful to country banks, and it is recommended that the following be substituted for section 11 of the bill: SEC. 11. The seventh paragraph of section 13 of the Federal reserve act, as amended, is amended and reenacted to read as follows: "Any Federal reserve bank may make advances for periods not exceeding fifteen days to its member banks on their promissory notes secured by the deposit or pledge of bonds, notes, certificates of indebtedness or Treasury bills of the United States; and any Federal reserve bank may make advances for periods not exceeding ninety days to its member banks on their promissory notes secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible for rediscount or for purchase by Federal reserve banks under the provisions of this act. All such advances shall be made at rates to be established by such Federal reserve banks, subject to the review and determination of the Federal Reserve Board." SECTION 12 Section 12 deals with relations of Federal reserve banks with foreign banks.. It is recommended that the words "subject to the powers conveyed to and bestowed upon the Federal open market committee by section 12A of this act" be omitted. From the middle of line 18 on page 26 through the word "writing" in line 11 on page 27, the section is acceptable, but the omission of the words "and control" in line 19 on page 26 is suggested, in order to preserve the distinction between supervision and operation. It is recommended, therefore, that section 12 of the bill be amended as follows: 1. Strike out the following language in lines 16, 17, and 18 on page 26: (g) Subject to the powers conveyed to and bestowed upon the Federal open market committee by section 12A of this act; 2. Strike out the words "and control" in line 19 on page 26; and 3. On page 27, line 11, insert a period after the word "writing" and strike out everything in line 11 after that word and all of lines 12, 13, 14, and 15. SECTION 13 The principal feature of this section is that it discontinues the distinction between time deposits and demand deposits in so far as reserve requirements are concerned. The distinction between these two types of deposits has led to many abuses and has been a factor in making possible a growth of bank credit without a corresponding growth in reserves. The proposal which would raise the require- APRIL, 1932 ments on time deposits to the level of those on demand deposits would increase reserve requirements by $132,000,000 a year for five years with an" ultimate increase of $660,000,000. Unless there were a contraction in the amount of member-bank deposits, this increase would result in an addition of about $230,000,000 to the gold requirements of the Federal reserve banks. It would be an influence in the direction of credit contraction without regard to the course of business and credit and would be particularly undesirable at this time. Furthermore, the increase would fall heaviest on banks outside of the principal financial centers, which have been discriminated against under the existing reserve requirements both because, owing to their distance from the cash facilities of the Federal reserve banks, they are required to carry relatively large amounts of cash in vault, which under existing law does not count as reserve, and because they are not in a position to take advantage of deductions in determining net deposits. The proposal, therefore, would both increase the burden of reserves and increase the inequalities in their present distribution. Any thorough-going revision of section 19 of the Federal reserve act should base required reserves, in so far as practicable, upon the activity of the business handled through each bank, rather than on an arbitrary classification of banks according to location. A proposal submitted in the Report of the Committee on Bank Reserves of the Federal Reserve System embodies a method of calculating required reserves which is believed to be sound in principle and which would make fluctuations in the volume of required reserves exert an influence in the direction of sound credit conditions and would also eliminate many inequitable and unfair features of the present law. There is submitted a proposed substitute for section 13 of the bill which incorporates the proposals of the committee on bank reserves of the Federal reserve system with slight modifications. Section 13 includes two subjects not directly related to bank reserves and not covered in the report of the reserve committee, namely, a prohibition against brokers' loans for the account of others and a provision subjecting the market for Federal funds to regulation by the Federal Reserve Board. The purpose sought to be accomplished by paragraph (d) is desirable, but it is believed that the language used is too far-reaching. It is suggested that the paragraph be changed FEDERAL RESERVE BULLETIN APRIL, 1932 so as to prohibit a member bank from acting as a medium or agent of a nonbanking corporation or individual in making loans on the security of stocks, bonds, and other investment securities to brokers or dealers in such securities. This suggestion is incorporated in paragraph (n) of the proposed revision of section 13 of the bill. It is not thought that a provision prohibiting a member bank from making loans to any corporation or individual, if the proceeds of such transaction are to be used directly or indirectly for the purpose of making loans protected by collateral security in favor of any investment banker, broker, or member of any stock exchange or any dealer in securities, would be enforceable, as it is impossible to follow the proceeds of loans once they have been granted. Paragraphs (f) and (g) of the bill seek to control the market for Federal funds by placing limitations on the use of balances standing to the credit of member banks upon the books of the Federal reserve banks. It is not believed that regulation of the market for Federal funds by law is desirable. It is better to have these liquid funds move freely where they are most needed than to have them thrown on the call market. The Federal reserve banks keep in close touch with transactions in Federal funds and a ruling of the Federal Keserve Board now requires member banks to report purchases of Federal funds as borrowed money. The proposed substitute for section 13 of the bill is as follows: SEC. 13. Section 19 of the Federal reserve act (United States Code, title 12, sections 461 to 466, inclusive, and section 374), as amended, is further amended and reenacted to read as follows: "RESERVES OF MEMBER BANKS ''SEC. 19. (a) Each member bank shall establish and maintain reserves equal to five per centum of the amount of its net deposits, plus fifty per centum of the amount of its average daily debits to deposit accounts: Provided, That any member bank, at its option, for any period not less than 90 days, may omit any specific deposit account or accounts from such computation of its reserve requirements if such account or accounts are reported separately to the Federal reserve bank and if a reserve of 50 per cent is maintained against such account or accounts: Provided, however, That, in no event, shall the aggregate reserves required to be maintained by any member bank exceed fifteen per centum of its gross deposits. " (b) Each member bank located in the vicinity of a Federal reserve bank or branch thereof shall maintain not less than four-fifths of its total required reserves in the form of a reserve balance on deposit with the Federal reserve bank, and every other member bank shall maintain not less than two-fifths of its total required reserves in the form of a reserve balance on deposit with the Federal reserve bank. The remainder of the total required reserves of each member bank, over and above the amount required to be maintained 110331—32 3 215 in the form of a reserve balance on deposit with the Federal reserve bank, may, at the option of such member bank, consist of a reserve balance on deposit with the Federal reserve bank, or of cash owned by such member bank either in its actual possession or in transit between such member bank and the Federal reserve bank: Provided, That when, in its judgment the public interest so requires, the Federal Reserve Board may limit to an amount less than that permitted hercunder the amount of cash which any member bank or banks may count as reserve: Provided, however, That, in prescribing such limitations, the Federal Reserve Board shall be guided by the general principle that member banks should be permitted to count as reserve, within the limitations of this section, as much cash as they reasonably need in view of the character of their business and their degree of accessibility to the currency facilities of the Federal reserve banks. " (c) The term 'gross deposits/ within the meaning of this section, shall include all deposit liabilities of any member bank whether or not immediately available for withdrawal by the depositor, all liabilities for certified checks, cashiers', treasurers', and other officers' checks, cash letters of credit, travelers' checks, and all other similar liabilities, as further defined and specified by the Federal Reserve Board: Provided, however, That, in computing the amount of 'gross deposits,' (1) amounts shown on the books of any member bank as liabilities of such bank payable to a branch of such bank located in a foreign country or in a dependency or possession of the United States, and (2) liabilities payable only at such a branch, shall be treated as though said liabilities were due to or payable at a nonmember I>ank. " (d) The term 'net deposits,' as used in this section, shall mean the amount of the gross deposits of any member bank, as above defined and as further defined by the Federal Reserve Board, minus the sum of (1) all balances due to such member bank from other member banks and their branches in the United States, and (2) checks and other cash items in process of collection which are payable immediately upon presentation in the United States, within the meaning of these terms as further defined by the Federal Reserve Board. " (e) The term 'average daily debits to deposit accounts,' as used in this section, shall mean the average daily amount of checks, drafts, and other items debited or charged by any member bank to any and all accounts included in gross deposits as above defined and as further defined by the Federal Reserve Board, except charges resulting from the payment of certified checks and cashiers', treasurers', and other officers' checks. "(f) The term 'cash,' within the meaning of this section, shall include all kind of currency and coin issued or coined under authority of the laws of the United States. " (g) The term 'reserve balances/ as used in this section, shall mean a member bank's actual net balance on the books of the Federal reserve bank representing funds available for reserve purposes under regulations prescribed by the Federal Reserve Board. "(h) The term 'vicinity of a Federal reserve bank or branch thereof/ as used in this section, shall mean the city in which a Federal reserve bank or branch thereof is located, until such term is otherwise defined by the Federal Reserve Board: Provided, That, with respect to each Federal reserve bank and each branch thereof, the Federal Reserve Board, from time to time, in its discretion, may either (1) define a specific geographic area as comprising the vicinity of such Federal reserve bank or branch thereof, within the meaning of 216 FEDERAL RESERVE BULLETIN this section, or (2) compile a list of member banks which shall be deemed to be located in the vicinity of such Federal reserve bank or branch thereof, within the meaning of this section, and add banks to, or remove banks from, such list, from time to time: Provided, however, That, in defining such areas and compiling such lists, the Federal Reserve Board shall be guided by the general principle indicated in subsection (b) hereof. "(i) With respect to each member bank, the term 'Federal reserve bank,' as used in this section, shall mean the Federal reserve bank of the district in which such member bank is located. "(j) The Federal Reserve Board is authorized and empowered to prescribe regulations defining further the various terms used in this act, fixing periods over which reserve requirements and actual reserves may be averaged, determining the methods by which reserve requirements and actual reserves shall be computed, and prescribing penalties for deficiencies in reserves. Such regulations and all other regulations of the Federal Reserve Board shall have the force and efFect of law and the courts shall take judicial notice of them. "(k) Subject to such regulations and penalties as, may be prescribed by the Federal Reserve Board, any member bank may draw against or otherwise utilize its reserves for the purpose of meeting existing liabilities: Provided, however, That, whenever the reserves of any member bank have been continuously deficient for fourteen consecutive calendar days, the ^Federal reserve agent or assistant Federal reserve agent of the district in which such member bank is located shall send to each director of such bank, by registered mail, a letter advising him of such deficiency and calling attention to the provisions of this subsection; and each director of such bank who after receipt of such a letter, assents to or acquiesces in the making of additional loans or investments by such bank before the reserves of such bank shall have been restored to the amount required by this section, shall be held liable in his personal or individual capacity for any and all losses sustained by such bank on any such loans or investments. " (1) All penalties for deficiencies in reserves incurred under regulations prescribed by the Federal Reserve Board pursuant to the provisions of this act shall be paid to the Federal reserve bank by the member bank against which they are assessed. "(m) No member bank shall keep on deposit with an}' State bank or trust company which is not a member bank a sum in excess of ten per centum of its own paidup capital and surplus. No member bank shall act as the medium or agent of a nonmember bank in applying for or receiving discounts from a Federal reserve bank under the provisions of this act, except by permission of the Federal Reserve Board. " (n) No member bank shall act as the medium or agent of any nonbanking corporation, partnership, association, business trust, or individual in making loans on the security of stocks, bonds, and other investment securities to brokers or dealers in stocks, bonds, and other investment securities. Every violation of this provision by any member bank shall be punishable by a fine of not more than $100 per day during the continuance of such violation; and such fine may be collected, by suit or otherwise, by the Federal reserve bank of the district in which such member bank is located. "(o) National banks or banks organized under local laws, located in Alaska or in a dependency or insular possession or any part of the United States outside the continental United States, may remain nonmember banks, and shall in that event maintain reserves and APRIL, 1932 comply with all the conditions now provided by law regulating them; or said banks may, with the consent of the Federal Reserve Board, become member banks of any one of the Federal reserve districts, and shall in that event take stock, maintain reserves, and be subject to all the other provisions of this act. " (p) All acts or parts of acts in conflict with this section are hereby repealed only in so far as they are in conflict with the provisions of this section." There are hereby repealed the provisions of section 7 of the first Liberty bond act, approved April 24, 1917, section 8 of the second Liberty bond act, approved September 24, 1917, and section 8 of the third Liberty bond act, approved April 4, 1918 (U. S. Code, title 31, section 771), which read as follows: "That the provisions of section fifty-one hundred and ninety-one of the Revised Statutes, as amended by the Federal reserve act, and the amendments thereof, with reference to the reserves required to be kept by national banking associations and other member banks of the Federal reserve system, shall not apply to deposits of public moneys by the United States in designated depositaries." This section shall become effective on the first day of the seventh calendar month following the enactment of this act. SECTION 14 The first portion of this section down to line 4 on page 33 is existing law. The sentence in lines 4 to 8, inclusive, is new and would interfere greatly with the financing of realestate transactions. When a time loan has been made, there appears to be no warrant, in the absence of default, for revising the valuations on which the loan is based; and this provision, together with that in lines 4 to 9 on page 34, would require the real estate on which each such loan is based to be revalued at least five times each year. It could not reasonably be expected that real-estate loans would be made or applied for under such conditions. The sentence in lines 17 to 20 on page 33 would classify as real-estate loans all unsecured loans whose eventual safety depends upon the value of real estate, thereby subjecting all such loans to all the limitations or restrictions in this section. This would produce confusion and uncertainty in a large volume of loans and would interefere with the extension of adequate credit, particularly in the agricultural sections of the country. The remaining amendments in this section make what appear to be unnecessary changes in the proportion of the real-estate loans permitted and propose, without segregation, to give time depositors a preferred claim on all real-estate loans and other assets of the bank acquired under this section. Such a provision would be difficult to administer and would be unfair to the other depositors. 217 FEDERAL RESERVE BULLETIN APRIL, 1932 The sentence in lines 15 to 22 on page 34 is existing law and is inconsistent with section 24 of the bill, which will be discussed later. It would seem desirable to limit the amount which banks may invest in bank premises, but it is suggested, that this be accomplished directly instead of indirectly. It is recommended, therefore, that section 14 of the bill be stricken out and that the following new section be substituted: The modification of the units in which bank stocks can be issued would create unnecessary complications; and it is recommended that all of section 17 be omitted, with the exception of the sentence in lines 17 to 23 on page 38, which should be made effective not less than three years after enactment. As modified, section 17 would read as follows: SEC. 14. The Federal reserve act, as amended, is amended by inserting between section 24 and section 25 thereof the following new section: "SEC. 24(a). Except with the permission of the Comptroller of the Currency, no national bank, and except with the permission" of the Federal Reserve Board, no State member bank, shall hereafter invest in bank premises or in the stock or obligations of, or in loans to, any corporation owning or holding its bank premises a sum exceeding the amount of the capital stock of such bank." SEC. 17. Section 5139 of the Revised Statutes, as amended, is amended by adding at the end thereof a new paragraph reading as follows: "After three years from the date of the enactment of this act, no certificate representing the stock of any such association shall represent the stock of any other corporation, nor shall the ownership, sale, or transfer of any certificate representing the stock of any such association be conditioned in any manner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation." SECTION 15 SECTION 18 This section would make it necessary for member banks to dispose of a large amount of securities at this time which would be very unfortunate. Since it is aimed generally at investments in securities, it is believed that its purpose is covered sufficiently by the proposed substitute for section 3 of the bill. The clause commencing in line 19 on page 35 apparently is intended to enable national banks to compete more effectively with State banks. Its tendency would be to lower the standards of banking in the national banking system to the standard of the State banks, where more liberal powers are granted to State banks by State law. The definition of investment securities which is contained in the law, as amended by the act of February 25, 1927, would be stricken out and apparently the comptroller would be given unlimited power to prescribe his own definition except that stocks could not be included. This modification is undesirable. For the reasons stated it is recommended that this section be omitted entirely. SECTION 16 This amendment is believed to be desirable; but it is recommended that it be strengthened and that a means of evasion be eliminated by striking out the exception in lines 17 to 21, inclusive, on page 37, which would permit the organization of national banks with a capital of $25,000 in certain circumstances. SECTION 17 The first part of this section would prohibit any director, officer, or employee of any member bank from acting as a director, officer, or employee of certain other specified classes of business enterprises. It would be capable of easy evasion and would become ineffective in many cases. The latter part of the section would prohibit any member bank from clearing checks or doing the ordinary banking business of a correspondent for any of the types of business enterprises mentioned in this section. The language of the section is so broad that it would include banks within the classes of business enterprises to which the prohibitions of the section would apply. For example, all interlocking bank directorates now expressly authorized by law or permitted under certain conditions would be prohibited, and one bank would be prohibited from acting as a correspondent of another bank. It is therefore recommended that this entire section be omitted. It has been clearly demonstrated that affiliations between member banks and security companies have contributed to undesirable banking developments. There are, however, difficulties in the way of accomplishing a complete divorce of member banks from their affiliates arising from the fact that a law intended for that purpose is likely to be susceptible of evasion or else to apply to many cases to which it is not intended to apply. Therefore the board is not prepared at this time to make a definite recommendation, but 218 FEDERAL RESERVE BULLETIN submits, for the consideration of the Committee on Banking and Currency, a substitute for section 18 which is designed to provide for the divorce of security affiliates from member banks after three years: SEC. 18. From and after three years from the date of the enactment of this act, no member bank shall be affiliated in any manner described in section 2 (b) hereof with any corporation, association, business trust, or other similar organization engaged principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail, of stocks, bonds, debentures, notes, or other securities. For every violation of this section the member bank involved shall be subject to a penalty not exceeding $1,000 per day for each day during which such violation continues. Such penalty may be assessed by the Federal Reserve Board, in its discretion, and, when so assessed, may be collected by the Federal reserve bank by suit or otherwise. If any such violation shall continue for six calendar months after the member bank shall have been warned by the Federal Reserve Board to discontinue the same (a) in the case of a national bank, all the rights, privileges, and franchises granted to it under the national bank act may be forfeited in the manner prescribed in section 5239 of the Revised Statutes, or, (b) in the case of a State member bank, all of its rights and privileges of membership in the Federal reserve system may be forfeited in the manner prescribed in section 9 of the Federal reserve act. ! APRIL, 1932 panies and requiring all eligible State banks controlled by them to be members of the Federal reserve system. It is therefore recommended that section 19 of the bill be changed to read as follows: SEC. 19. Section 5144 of the Revised Statutes, as amended, is amended, to read as follows: " S E C . 5144. In all elections of directors and in deciding all questions at meetings of shareholders each shareholder shall be entitled to one vote on each share of stock held by him, except that shares of its own stock held by any national bank as trustee shall not be voted, and shares owned or controlled by any affiliate, as defined by the banking act of 1932, or by any officer, director, employee, proxy, nominee, or representative or agent thereof, shall not be voted unless such affiliate shall have filed with the Comptroller of the Currency an agreement in such form as may be prescribed by him accepting, and agreeing to submit to and comply with, all of the provisions of this section, and such agreement shall not have been terminated. Shareholders may vote by proxies duly authorized in writing; but no officer, clerk, teller, or bookkeeper of such association shall act as proxy; and no shareholder whose liability is past due and unpaid shall be allowed to vote. "Within a period of one year from the date of any such agreement, each nonmember State bank owned or controlled by such affiliate which is eligible for membership in the Federal reserve system shall apply for membership therein in the manner prescribed by, and subject to the terms of, section 9 of the Federal reserve act. If such application is approved by the SECTIONS 19 AND 20 Federal Reserve Board, such bank shall become a member of the Federal reserve system and shall It is recommended that section 19 of the bill comply with all of the provisions of law applicable to be combined with section 20 in the manner member banks. If such application is not approved by the Federal Reserve Board, or if any such bank hereinafter proposed; that the combined section shall to become, or shall cease to be, a member be known as section 19; and that a new section of thefail Federal reserve system at any time while such applicable to holding companies which own or agreement remains in effect, such affiliate shall divest control State member banks be substituted for itself of all stock ownership or other interest in, or control of, such bank. section 20. 1 'Except as otherwise provided herein, every such Under the definition of "affiliate" contained affiliate, (1) on January 1, 1934, and at all times therein section 2 and under the provisions of sections after while such agreement remains in effect, shall 6, 27, and 28 of the bill, if amended in accord- possess, free and clear of any lien, pledge, or hypothecaany nature, readily marketable assets other ance with the recommendations contained in tion of bank stock, which shall not amount to less than this report, all holding companies which control j than lo per centum of the aggregate par value of bank member banks and all banks owned or con- stocks held or owned by such affiliate, and (2) shall trolled by such holding companies will be affili- reinvest in readily marketable assets other than bank stock all net earnings over and above 6 per centum per ates of such member banks and will be required annum the book value of its own shares outstanding, to make reports and submit to examinations until itsonreadily marketable assets other than bank whenever deemed necessary or advisable by the stocks shall amount to 25 per centum of the aggregate Comptroller of the Currency, the Federal j par value of bank shares held or owned by it: Provided, however, That, in computing the amount of readily Reserve Board or examiners appointed by them; j marketable assets, other than bank stock, which any and therefore it is suggested that the provisions such affiliate is required to possess at any given time, regarding examinations and condition reports credit shall be given to such affiliate for all contribuof holding companies be omitted from this sec- tions which it has made during the preceding three years to banks owned or controlled by it at the time tion and from the corresponding sections re- such computation is made. The term 'contribution,' garding holding companies which own or control as herein used, shall include all such gifts of money, assets or other things of value to any such bank, all State member banks. amounts paid for worthless or doubtful assets It is also suggested that there be inserted in such from any such bank, and all such other section 19 and in the proposed new section 20 purchased similar amounts as the Comptroller of the Currency, certain additional provisions providing for the in his discretion, may permit to be treated as conregulation and supervision of holding com- tributions. APRIL, 1932 FEDERAL RESERVE BULLETIN "If any such affiliate shall fail to comply with the provisions of this section or with the provisions of any agreement with the Comptroller of the Currency made pursuant thereto, the comptroller, in his discretion, may terminate such agreement. " Any officer, director, agent, or employee of any such affiliate, which has entered into an agreement with the Comptroller of the Currency in accordance with the provisions of this section, who shall make any false entry in any book, report or statement of such affiliate with intent in any case to injure or defraud such affiliate, any member bank or any other company, body politic or corporate, or any individual person, or with intent to deceive any officer of such affiliate or of any member bank, or the Comptroller of *he Currency, or any agen: or examiner appointed to examine the affairs of such affiliate, shall be deemed guilty of a misdemeanor and upon conviction thereof in any district court of the United States shall be fined not more than $5,000 or shall be imprisoned for not more than five years, or both, in the discretion of the court. "No national bank shall (1) make any loan on the stock of any affiliate which owns or controls such national bank directly or indirectly, (2) make any loan to any affiliate which owns or controls such national bank, directly or indirectly, on the security of any shares of stock of any corporation owned or controlled by such affiliate, or (3) be the purchaser or holder of the stock of such affiliate; unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and any stock so purchased or acquired shall be sold or disposed of at public or private sale within two years from the date of its acquisition. " Unless there is an effect at the time an agreement filed with the Comptroller of the Currency pursuant to the terms of this section, any person, firm, corporation, association, business trust, or other organization, which shall vote, or cause, direct, authorize, or permit to l)c voted, the stock of any national bank owned or controlled by any affiliate, or by any officer, director, employee, proxy, nominee or representative or agent thereof, shall be deemed guilty of a misdemeanor and, upon conviction thereof in any district court of the United States, shall be fined not more than $5,000 for each such offense. Each vote cast shall constitute a separate offense within the meaning of this paragraph." It is recommended that, in lieu of section 20, there be inserted a new section 20 making similar requirements regarding holding companies which own or control State member banks of the Federal reserve system; and it is recommended that such new section 20 read as follows: SEC. 20. The Federal reserve act, as amended, is further amended by inserting therein immediately after section 9 thereof a new section reading as follows: "Sue. QA. No State bank shall bo permitted to become a member of the Federal reserve system unless any affiliate of such State bank or trust company, as defined in the banking act of 1.9^2, which owns or controls such member bank directly or indirectly shall have filed with the Federal Reserve Board an agreement in such form as may be prescribed by such board accepting, and agreeing to submit to and comply with, all of the provisions of this section; and no State bank shall remain a member of the Federal reserve system after one year from the date of the enactment of this act unless anv affiliate of such State bank which owns 219 or controls such member bank directly or indirectly shall have filed such an agreement with the Federal Reserve Board. "Within a period of one year from the date of any such agreement, each nonmember State bank owned or controlled by such affiliate which is eligible for membership in the Federal reserve system shall apply for membership therein in the manner prescribed by, and subject to the terms of, section 9 of this act. If such application is approved by the Federal Reserve Board, such bank shall become a member of the Federal reserve system and shall comply with all of the provisions of law applicable to member banks. If such application is not approved by the Federal Reserve Board, or if any such bank shall fail to become, or cease to be, a member of the Federal reserve system at any time while such agreement remains in effect, such affiliate shall divest itself of all of the stock ownership or other interest in, or control of, such bank. "Except as provided herein, every such affiliate (1) on January 1, 1934, and at all times thereafter during the membership in the Federal reserve system of any State bank owned or controlled by it, shall possess, free and clear of any lien, pledge or hypothecation of any nature, readily marketable assets other than bank stock, which shall not amount to less than 15 per cent of the aggregate par value of bank stocks held or owned by sucn affiliate; and (2) shall reinvest in readily marketable assets other than bank stock all net earnings over and above 6 per centum per annum on the book value of its own shares outstanding, until its readily marketable assets, other than bank stocks, shall amount to 25 per centum of the aggregate par value of bank shares held or owned by it: Provided, however, That, in computing tne amount of readily marketable assets, otner than bank stock, which any sucli affiliate is required to possess at any given time, credit shall be given to such affiliate for all contributions which it has made during the preceding three years to banks owned or controlled by it at the time sucn computation is made. The term 'contribution,' as herein used, shall include all such gifts of money, assets or otlier things of value to any such bank, all such amounts paid for worthless or doubtful assets purchased from any such bank, and all such other similar amounts as the Federal Reserve Board, in its discretion, may permit to be treated as contributions. "If any such affiliate shall fail to comply with the provisions of this section or with the provisions of any agreement with the Federal Reserve Board made pursuant thereto, the said board, in its discretion, may require any State member bank owned or controlled by such affiliate to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership in the Federal reserve system as provided in section 9 of this act. "Any officer, director, agent, or employee of any such affiliate which has filed an agreement with the Federal Reserve Board, as provided in this section, who shall make any false entry in any book, report, or statement of such affiliate with intent in any case to injure or defraud such affiliate, any member bank or any other company, body politic or corporate, or any individual person, or with intent to deceive any officer of such affiliate or of any member bank, or the Federal Reserve Board, or any agent or examiner appointed to examine the affairs of such affiliate, shall be deemed guilty of a misdemeanor, and upon conviction thereof in any district court of the United States, shall be fined not more than $5,000 or shall be imprisoned for not more than five years, or both, in the discretion of the court. 220 FEDEKAL KESERVE BULLETIN "No State member bank shall (1) make any loan on the stock of any affiliate which owns or controls such State member bank directly or indirectly, (2) make an}' loan to any affiliate which owns or controls such State member bank, directly or indirectly, on the securit}^ of any shares of stock of any corporation owned or controlled by such affiliate, or (3) be the purchaser or holder of the stock of such affiliate; unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and any stock so purchased or acquired shall be sold or disposed of at public or private sale within two years from the date of its acquisition." SECTION 21 If the Committee on Banking and Currency decides to recommend the enactment of section 21 of the bill in substantially its present form, it is suggested that paragraph (d) of section 5155 of the Revised Statutes (which forbids the establishment of any branch in a place with a population of less than 25,000), be amended in order that small communities may not be denied the banking facilities which otherwise might be provided under this section. It is also suggested that the second paragraph of section 9 of the Federal reserve act be amended so as to place State member banks on the same basis as national banks with respect to branches either in this country or in foreign countries. The sentence commencing in line 7 on page 46 of the bill might be substituted for paragraph (d) of section 5155 of the Revised Statutes; and the following might be added at the end of the second paragraph of section 9 of the Federal reserve act: Provided, however, That nothing herein contained shall prevent any State member bank from establishing and operating branches in the United States or any dependency or insular possession thereof or in any foreign country, on the same terms and conditions and subject to the same limitations and restrictions as are applicable to the establishment of branches by national banks. SECTION 23 APRIL, 1932 would place member banks at a disadvantage in competition with nonmember banks. It is therefore recommended that this section be omitted. SECTION 25 In the interests of clarity it is recommended that subsection (a) of section 25 of the bill be amended by striking out the period at the end thereof (i. e., at the end of line 8 on page 48) and inserting the following: "in which such corporation owns or controls a majority interest." It is recommended that the remainder of section 25 of the bill (p. 48, lines 9 to 25, and p. 49, lines 1 to 21) be omitted entirely. The first part of paragraph (b) (lines 9 to 18, inclusive, on p. 48) would seem to be unnecessary because the exceptions in section 5200 are not applicable to borrowers of the kind described, except the eighth exception, which applies only to loans secured by Government securities. In so far as the remainder of paragraph (b) and the provisions of paragraph (c) relate to affiliates of national banking associations, the exact meaning of the restrictions is not clear; but these provisions appear to be in conflict \yith those of section 9 of the bill, and the limitations on loans which may be made by national banking associations to their affiliates are covered adequately by the proposed substitute for section 9. This substitute contains a limitation on loans that may be made to one affiliate and a separate limitation on the aggregate amount of loans that may be made to all affiliates of the same member bank. In the comments upon the definition of the term "affiliate" in section 2 of the bill certain principles were indicated which have been applied in the recommendations with respect to various sections of the bill relating to affiliates; and it is believed that these recommendations arc sufficient. This section is desirable; but, in view of the fact that the Federal reserve act authorizes different rates of discount for different classes of paper, it is recommended that this section SECTION 26 be amended by striking out the word "of" in It is recommended that this section be line 2 on page 47 and inserting in lieu thereof the words "on 90-day commercial paper in omitted entirely. It would apply to all loans on "collateral effect at." security" regardless of the nature of the seSECTION 24 curity, and would nullify certain provisions of While it is recognized that certain evils arise section 5200 of the Revised Statutes, including from the competitive bidding for deposits those permitting national banks to make loans through the payment of unduly high rates, it (1) in amounts not exceeding 25 per cent of is believed that it is undesirable to further their capital and surplus on the security of regulate by law the rates of interest which ma}^ shipping documents or chattel mortgages on be paid on deposits, especially since to do so livestock, and (2) in amounts not exceeding 50 per cent of their capital and surplus on the security of shipping documents, warehouse receipts, or other such documents covering readily marketable nonperishable staples. It would greatly curtail the amount of credit which could be extended by banks in agricultural communities to farmers, cattlemen, and dealers in cotton, grain, and other agricultural com modi ties. SECTION 27 In order that reports of affiliates of national banks may be required only when deemed necessary and to clarify the provisions of the bill with respect to such reports, it is recommended that section 27 of the bill be amended to read as follows: SEC. 27. Section 5211 of the Revised Statutes of the United States, as amended, is further amended by adding at the end thereof the following new paragraph: "Whenever it shall be deemed necessary in order to obtain adequate information regarding the relations between any national bank and its affiliates, or the effect of such relations upon the management or condition of such bank, it may be required under rules and regulations prescribed by the Comptroller of the Currency to obtain and furnish such reports as to any or all of its affiliates as may be called for. Each such report shall contain such information and shall be submitted at such time as ma}' bo specified in the call therefor." SECTION 28 Section 28 of the bill purports to authorize examinations of affiliates of both national banks and State member banks; but it is doubtful whether it would accomplish this purpose as to State member banks, because it amends the first paragraph of Section 5240 of the Revised Statutes so as to provide for such examinations to be made by examiners acting under the jurisdiction of the Comptroller of the Currency, whereas section 9 of the Federal reserve act, as amended by the act of June 21, 1917, exempts State member banks from examination by the Comptroller of the Currency under the provisions of the first two paragraphs of section 5240 of the Revised Statutes. It has been recommended above that section 6 of the bill be amended so as to provide for examinations of affiliates of State member banks; and it is recommended that section 28 of the bill be amended to read as follows: ^ SEC. 28. Section 5240 of the Revised Statutes of the United States, as amended, is further amended by adding at the end thereof a new paragraph reading as follows: "Examiners appointed under the provisions of the first paragraph of this section may examine any affiliate of a national bank whenever it shall be deemed necessary in order to obtain adequate information concerning the relations of such affiliate with such national bank 221 FEDEKA.L RESERVE BULLETIN APRIL, 1932 or the effect of such relations upon the management or condition of such national bank. The examiner making the examination of any affiliate of a national bank shall have power to make a thorough examination of all the affairs of the affiliate, and in doing so he shall have power to administer oaths and to examine any of the officers and agents thereof under oath and to make a report of his findings to the Comptroller of the Currency. The expense of examinations provided for in this paragraph may be assessed by the Comptroller of the Currency upon the affiliates examined in proportion to assets or resources held by the affiliates upon the dates of examination of the various affiliates. If any such affiliate shall refuse to pay such expenses or shall fail to do so within sixty days after the date of such assessment, then such expenses may be assessed against the affiliated national bank and, when so assessed, shall be paid by such national bank: Provided, however, That, if the affiliation is with two or more national banks, such expenses may be assessed against, and collected from, any or all of such national banks in such proportions as the Comptroller of the Currency may prescribe. If any affiliate of a national bank shall refuse to permit an examiner to make an examination of the affiliate or shall refuse to give any information required in the course of any such examination, the national bank with which it is affiliated shall be subject to a penalty of not more than $100 for each day that any such refusal shall continue. Such penalty may be assessed by the Federal Reserve Board, in its discretion, and, when assessed, may be collected by the Federal reserve bank by suit or otherwise." SECTION 29 Section 29 provides for the removal of officers or directors of national banks under certain circumstances. It is believed that there should be some means by which in extreme cases unsatisfactoiy management could be corrected through the removal of officers and directors responsible there!"or. It is believed however that the power of removal should be vested in the Federal Reserve Board as a whole rather than in a special committee consisting of three officials, one of whom is the person bringing the charges against the accused officer or director; and in order to afFord adequate additional protection to the interests of the banks and their officers and directors, certain other changes in this section should be made. It is therefore recommended that section 29 be amended to read as follows: SEC. 29. Whenever, in the opinion of the Comptroller of the Currency, any director or officer of a national bank, or of a bank or trust company doing business in the District of Columbia, or whenever, in the opinion of a Federal reserve agent, any director or officer of a State member bank in his district, shall have continued to violate any law relating to such bank or shall have continued unsafe or unsound practices in conducting the business of such bank after having been warned by the Comptroller of the Currency or the Federal reserve agent, as the case may be, to discontinue such violations of law or such unsafe or unsound practices, the Comptroller of the Currency or the Federal reserve 222 FEDERAL RESERVE BULLETIN agent, as the case may be, may certify the facts to the Federal Reserve Board. In any such case the Federal Reserve Board may cause notice to be served upon such director or officer to appear before such board to show cause why lie should not be removed from office. A copy of such order shall be sent to each director of the bank affected by registered mail. If, after granting tne accused director or officer a reasonable opportunity to be heard, tne Federal Reserve Boardfindsthat he has continued to violate any law relating to such bank or has continued unsafe or unsound practices in conducting tne business of such bank after having been warned by the Comptroller of the Currency or the Federal reserve agent to discontinue such violation of law or such unsafe or unsound practices, the Federal Reserve Board, in its discretion, may order that he be removed from office. A copy of such order shall be served upon APRIL, 1932 such director or officer. A copy of such order shall also be served upon the bank of which lie is a director or officer, whereupon such director or officer shall cease to be an officer or director of such bank: Provided, however, That such order and the findings of fact upon whicn it is based shall not be made public or disclosed to anyone except to the officer or director involved and the directors of the bank involved, and no such finding or order nor the evidence upon which it is based shall be produced in any court of law except as evidence to punish violations of law under this section. Any such director or officer upon whom any such order has been served as herein provided and who thereafter participates in any manner in the management of such bank shall be fined not more than $5,000 or imprisoned for not more than 5 years, or both, in the discretion of t^e court. STATEMENT OF FEDERAL ADVISORY COUNCIL ON THE GLASS BILL (S. 4115) MARCH 29, 1932. The Federal Advisory Council has given careful consideration to Senate bill 4115. It is of the opinion that the present is an inopportune time to raise many of the issues presented in this proposed legislative measure. Reforms in our banking system may be desirable, but such should be made at a time when the country has passed through the present crisis and when there is no danger that legislative enactments will retard recovery and add to the existing difficulties with which banks are confronted. The council feels that the effect of this proposed measure is likely to destroy the benefits of the Glass-Steagall Act, the Reconstruction Finance Corporation act, and similar measures. If the bill should be enacted into law it would necessitate a wholesale liquidation of securities, which would most certainly cause a further decline in the prices of all securities. Such deflation would work extreme hardship not merely upon banks but upon all holders of securities in this country, and especially upon those who have borrowed from banks and who are finding difficulties even at present in meeting their obligations. It must also be pointed out that, in the opinion of the council, the thesis apparently underlying this measure that loans upon securities are in general undesirable and should be drastically limited would undermine the customary system of capital financing which has been an inherent part of the present industrial and financial system almost from its beginning. Without the flotation of securities which have been financed directly or indirectly by banks, it would have been impossible to build up the large enterprises which have contributed so much to the progress of industrial development in this country. In addition to the above general expression of opinion, the Federal Advisory Council desires to point out, in some detail, its specific objections to certain features of the bill. 1. Control of affiliates.—The Federal Advisory Council is in accord with the purpose sought to be achieved in section 20 and believes that a control of affiliates is desirable. The definition of affiliates in section 2, however, is much too broad and comprehensive. It brings within the provisions of the act any corporation, regardless of its business, which may happen to have a majority of its executive committee, directors, or managing officers directors of a member bank. Section 9 limits the sum which a parent member bank may lend to an affiliate to 10 per cent of the capital and surplus of the parent bank, and such loans must be secured by 120 per cent of listed exchange securities or 100 per cent of either eligible paper or savings banks' securities, neither of which would be for the most part in the possession of an affiliate, unless it happened to be a bank. Furthermore, this provision would seem to bar the acceptance of real-estate mortgages as collateral from an affiliate upon the part of those banks located in States where there are no laws regulating the investments of savings banks. Likewise, commodity or livestock paper, unless its maturity is such as to make it eligible, could not be used as collateral for a loan made to an affiliate. The Federal Advisory Council also believes that the provision in section 25, page 49, paragraph 2, which refers to the sale for cash of the stock of an affiliate within a 3-year period is not at all clear. If this means that the stock of the affiliate held by the parent institution must be sold for cash away from the bank, in other words divorcing the affiliate from control FEDERAL RESERVE BULLETIN APRIL, 1932 223 by the bank, it will create a distinct hardship, undesirable, entirely aside from other features as there are large numbers of such affiliates in in this section to which reference will be made existence to-day whose compulsory liquidation hereafter. would cause serious financial losses. ApparThe Federal Advisory Council believes that ently this section is in conflict with some of the subdivisions F and G of section 13 give power provisions of section 20. to the Federal Reserve Board to regulate what 2. Centralization of power.—It was the origi- is a purely routine loan operation of a member nal intention of the Federal reserve act to bank. The ability of member banks to trade decentralize the banking power in this country in Federal reserve funds tends to maintain a by establishing 12 autonomous regional Federal greater degree of liquidity in the general reserve banks. The Federal Reserve Board banking situation than would otherwise be the itself was planned originally to be largely a case. In this connection attention is called to supervising and coordinating body. The pro- the ever increasing restrictions upon, and to posed act, however, tends to increase radically the diminishing scope of, loaning operations of the power of the Federal Reserve Board at the banks. This results in increasing unnecessary expense of the individual Federal reserve banks balances on the part of member banks and and to make of the Federal reserve system in makes it more difficult for them to employ effect a centralized banking institution. In funds profitably. support of this statement attention is called 3. Liquidating corporation.— In general the to the following sections. 3ouncil indorses the idea of a liquidating Section 3 delegates the power of direct action corporation. It is, however, not in harmony to the Federal Reserve Board, which even if with the provisions as set forth under section practical would result in so embarrassing the 10 (sec. 12B) of the proposed act. The council operations of member banks as to lead to the is of the opinion that such a corporation as is elimination of important and necessary activities proposed should be financed entirely by Govor to the virtual surrender of individual bank ernment money, as is intended to be done in the case of nonmember banks. Furthermore, management to the Federal Reserve Board. Section 8 gives power to the Federal Reserve the council believes that it might be well to Board to fix the percentage of the capital and consider the possibility of creating 12 agencies, surplus which any member bank may lend in one in each of the Federal reserve districts, the form of collateral loans, and it is within the rather than seeking to create a single body for power of the Federal Reserve Board to change the whole country. Such 12 agencies might this percentage at any time upon 10 days' then be placed under the control and guidance notice and to direct any member bank to refrain of the Federal Reserve Board or some other from an increase of its security loans for any coordinating group. In no event does the period up to one year. This would be a tre- council believe it proper to require member mendous increase in the powers of the Federal banks to furnish the funds needed for such a Reserve Board and would introduce an element corporation without at the same time giving of uncertainty in the minds of those directing the member banks control of such a corporation any given member bank as to when the bank in for which they are to furnish the capital from question might be subjected to the direct action out of their own resources. The council furthermore suggests the possibility of having authorized in this section. The power of control by the Federal Reserve ! the activities of a Federal Liquidating CorporaBoard over the actions of the Federal open- j tion taken over by the Reconstruction Finance market committee, as authorized in section 10, !Corporation. might possibly tend to slow up open-market j 4. Increase of reserves.—The Federal Advioperations at times when quickness of action sory Council presumes that the requirement of might be absolutely essential in order to bring larger reserves as set forth in section 13 of the proposed act is intended to provide for greater about desired results. In section 11 the Federal Reserve Board is liquidity on the part of banks. The council empowered to cancel the right of any member believes, however, that the experience of the bank to borrow on so-called 15-day paper and last 10 years has clearly indicated that there is to declare existing loans due if such a member little or no relation between reserves and bank has failed to heed a notice instructing it liquidity. In the opinion of the council not to increase loans on collaterial security. liquidity is the result of careful and prudent It would appear to the Federal Advisory bank management and is measured by the Council that this endows the Federal Reserve character of the assets held by the bank. FurBoard with an arbitrary power which is highly thermore, the imposition of additional reserves lio:t3l—32 4 224 FEDERAL RESERVE BULLETIN will reduce available resources in the member banks at a time when these are largely needed, while at the same time they will bring no advantage to the system, the resources of which have been and are ample to take care of changing financial situations. The effect of this requirement would also be to tie up an additional volume of gold as a reserve against increased member-bank deposits in the Federal reserve banks without any apparent justification. 5. Segregation of time deposits.—The Federal Advisory Council regards the provisions in section 14 of the proposed act, intended to segregate the assets behind time deposits from those against other deposits, as likely to lead to undesirable results. In the opinion of the council this provision will lead either to the withdrawal of demand deposits or the diversion of demand deposits into time deposits. It believes that the increase of investment in real estate foreseen in this section will tend to reduce the liquidity of banks. There is also imposed upon the Comptroller of the Currency a duty which burdens him with tremendous responsibility, in so far as he is required to specify the type of property and the securities in which one-half of the time deposits of the member bank may be invested in the absence of State laws governing the investment of such funds. It has been the experience of a number of members of the council that the absence of restriction in respect to the investment of time deposits has produced a greater degree of liquidity in banks than can possibly be accomplished under the permissions granted in this section. The council feels that the views here setforth in regard to section 14 might be much amplified. In its opinion the most important effect of this section would be to bring about a disruption of the present credit structure of the country. Many banks in this country having a large percentage of time deposits use these funds for the purpose of aiding commerce, industry, and agriculture in their respective communities. These would be compelled under the provisions of section 14 to liquidate a large proportion of these loans and invest the funds so obtained in real estate or specified securities. 6. Fifteen-day paper.—Section 11 penalizes borrowers on so-called 15-day paper. In the opinion of the Federal Advisory Council such a provision would make Government bonds a much less desirable form of investment for member banks. It would handicap the United States Treasury in its necessary financing, increasing the rate on Government securities APRIL, 1932 and thereby the interest rate on all other classes of securities, and thus depreciate the market price of securities generally. It should also be pointed out that the ability of member banks to borrow on their promissory notes for a period of not exceeding 15 days is essential in periods of depression when sufficient eligible paper is not available for rediscount. 7. Limitation of interest on deposits.—The limitation of interest which member banks may pay upon deposit balances, provided for in section 24 of the proposed act, places such banks in unfair competition with nonmember banks not so restricted. It should be remembered that money is a commodity like any other and that member banks should be free to pay the rates necessary to hold their deposits. 8. Branch and group banking.—In reference to section 21 and other sections of the proposed act referring to branch or group banking, the council begs leave to refer to the recommendations which it made on September 15, 1931, a copy of which is appended hereto [see below]. 9. Collateral loans and securities.—In the general statement the Federal Advisory Council has already expressed its views regarding the desire to limit collateral loans. It wishes here, however, to discuss somewhat more in detail the provisions in sections 8, 11, 13, 15, etc., all of which deal in whole or in part with the control of the volume of collateral loans and the volume of securities held by member banks. These sections give arbitrary powers of control and the right to impose penalties to the Federal Keserve Board. These sections deal with control of volume of collateral loans and volume of securities held by member banks and place arbitrary powers of control and penalties in the Federal Reserve Board. The enforcement of the mandatory provisions of these sections will result in the enforced liquidation and to the detriment of general business. The council believes that such liquidation will retard if it docs not entirely defeat the beneficent effects that may be expected to be realized as a result of the Glass-Stengall bill and the Reconstruction Finance Corporation act. The council does not share the view of the proponents of the bill that the underlying cause of either bank disasters or depression is directly related to the volume of collateral loans or the volume of securities held by banks. These did not, and do not now, impair the ability of member banks properly to care for those types of loans the proceeds of which go more directly into commerce, industry, and agriculture. In conclusion the council calls attention to the fact that the bill, if enacted into law, would APRIL, 1932 FEDERAL RESERVE BULLETIN in effect place an undeserved stigma upon the flotation and selling of securities and make it almost impossible for banks to do business with dealers in securities. There would seem to be no justification whatsoever for such drastic action. Finally, the council believes that it is not possible to promote activity in commerce, industry, and agriculture under an easy-money and credit policy and at the same time prevent people by admonition or restriction from buying securities which are being made attractive by this very activity. STATEMENT OF SEPTEMBER 15, 1931 I. Group and chain banking.—No national bank should be permitted to become a part of a group banking system except on the condition that all other banks in the group are members of the Federal reserve system to the end that the Federal Government have visitorial powers over the entire group. More specifically: (a) No corporation should be permitted to own in excess of 20 per cent of the stock of a national bank if it owns at the same time in excess of 20 per cent of the stock of a State bank unless said State bank is a member of the Federal reserve system. (6) The Comptroller of the Currency should be given visitorial power over any corporation 225 owning in excess of 20 per cent of the stock of a national bank. (c) No national bank should be permitted to make a loan on the security of the stock of a corporation owning in excess of 20 per cent of the stock of the lending bank. II. Branch banking.—A. The McFadden Act should be amended to permit national banks in important commercial and financial centers to establish branches in the area that is economically and financially tributary to such centers without regard to State boundaries or to State banking laws. The privilege should be limited to banks in cities serving a territory sufficient to provide economic diversification. The area within which banks located in such cities may extend their branches should be defined by a committee consisting of the Comptroller of the Currency, the Secretary of the Treasury, and the Governor of the Federal Reserve Board. Banks permitted to have branches in an area should have capital adequate to their deposit liabilities, the minimum not to be less than $1,000,000. The extension of branches Should be subject to the approval of the Comptroller of the Currency. B. The national bank consolidation act should be amended to permit any bank within the branch-bank area to consolidate under national charter with the approval of the Comptroller of the Currency. FIRST QUARTERLY REPORT OF RECONSTRUCTION FINANCE CORPORATION The Reconstruction Finance Corporation made its first quarterly report to Congress on April 1, 1932. The text of the report, together with a table showing aggregate loans to each class of borrower, is given herewith:l Pursuant to the provisions of section 15 of the Reconstruction Finance Corporation Act, we have the honor to submit the first quarterly report of the corporation covering its operations to and including March 31, 1932. As the act was approved by the President on January 22, 1932, and the board of directors of the corporation was organized on February 2, the operations reported herein coyer a period of only two months. During this time the board has set up its central organization in Washington and established 33 separate agencies in various sections of the country. These agencies are located at Atlanta, Ga.; Birmingham, Ala.; Boston, Mass.; Charlotte, N. C ; Chicago, 111.; Cleveland, Ohio; Dallas, Tex.; Denver, Colo.; i The report contains, in addition, the following tables: Number of borrowers, by States and classes; statement of condition as of Mtir. 31, 1932; names and compensation of directors, officers, and employees receiving from the corporation more than $400 per month. Detroit, Mich.; El Paso, Tex.; Helena, Mont.; Houston, Tex.; Jacksonville, Fla.; Kansas City, Mo.; Little Rock, Ark.; Los Angeles, Calif.; Louisville, Ky.; Memphis, Tenn.; Minneapolis, Minn.; Nashville, Tenn.; New Orleans, La.; New York, N. Y.; Oklahoma. City, Okla.; Omaha, Nebr.; Philadelphia, Pa.; Portland, Oreg.; Richmond, Va.; St. Louis, Mo.; Salt Lake City, Utah; San Antonio, Tex.; San Francisco, Calif.; Seattle, Wash.; Spokane, Wash. Each of these agencies is in charge of a manager, selected by the board, who receives applications for loans and transmits them to Washington with his recommendations. Competent local advisory committees, the members of which serve without compensation, also have been appointed by the board to assist the managers. The membership of these advisory committees totals 363. The Reconstruction Finance Corporation functions solely through the medium of loans. These loans, exclusive of acceptances referred to in section 5 (a) of the act and of the direct loans or advances to farmers which, under 226 FEDERAL RESERVE BULLETIN section 2, are to be negotiated by the Secretary of Agriculture, are authorized to be made to banks, savings banks, trust companies, building and loan associations, railroads and railroad receivers, insurance companies, mortgage-loan companies, credit unions, Federal land banks, joint-stock land banks, Federal intermediate credit banks, agricultural credit corporations, livestock credit corporations, and to aid in the reorganization or liquidation of closed banks. It is provided by law that the loans shall be fully and adequately secured. Realizing that it was essential and in the public interest that its work should be expedited as much as possible, the active loaning operations of the corporation were commenced and carried on while it was in the process of building up its executive and administrative staffs. This threw an immense amount of work on that portion of the staff which was first assembled. The board expresses its appreciation of their accomplishment, which necessitated incessant and continuing work on their part, night*and day. The board is endeavoring to give prompt consideration to the many applications which come to it each day and to make its decisions without undue delay. Altogether, at the close of March 31, 1932, the corporation had authorized 974 separate loans in the aggregate sum of $238,739,939.06 to 935 institutions, as follows: $158,182,242.06 APKIL, 1932 to 858 banks and trust companies (including $2,173,000 to aid in the reorganization or liquidation of 7 closed banks); $4,879,750 to 30 building and loan associations; $7,080,000 to 18 insurance companies; $775,000 to 2 joint-stock land banks; $496,990 to 1 livestock credit corporation; $21,200 to 2 agricultural credit corporations; $6,517,000 to 8 mortgageloan companies; and $60,787,757 to 16 railroads (including $7,335,800 to 2 railroad receivers). In addition, the corporation had outstanding on March 31, 1932, as indicated in the attached table, agreements to make loans totaling $6,817,500 upon the performance of specified conditions. The corporation also allocated $50,000,000 to the Secretary of Agriculture in accordance with the provisions of section 2 of the Reconstruction Finance Corporation act, and agreed to take all or any part of the February 15 and March 15 issues of Federal intermediate credit bank debentures, aggregating $47,345,000, which might remain unsold on the dates indicated. As all the Federal intermediate credit bank debentures were sold in the open market, it was unnecesI sary for the corporation to take any part of the ' issues in question. Of the total loans authorized, the corporation at the close of March 31, 1932, had advanced $192,346,308.01, and repayments amounted to $7,471,894.36, leaving $184,874,413.65 outstanding on the books of the corporation. AGGREGATE LOANS TO EACH CLASS OF BORROWER, FEBRUARY 2 TO MARCH 31, 1932, Authorized 1 Hanks and trust companies 2 Building and loan associations..Insurance companies Mortgage loan companies Joint-stock land banks Livestock credit corporations Agricultural credit corporations. Railroads (including receivers). . Advanced .__ $158,182,242. 0t> $125,417,141.01 ' """ ~ " "" 2, 430, 500. 00 'i, 035, 920. 00 . 1,277,000.00 "EXCLUSIVE Repaid $6, 249, 542. 36 74," 400." 66" Outstanding $119,107,598.05 2, 430, 500. 00 0, 501, 520. 00 1, 277,000. 00 A VEIL, 1932 FEDERAL RESERVE BULLETIN 227 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled March 25 and released for publication March 28] Volume of industrial production and factory decrease in the value of awards reflects reducemployment increased from January to Feb- tions in building costs. ruary l>3^ an amount smaller than is usual at Distribution.—Ca rl o a dings o f mcrcha nd i se this season. Improvement in the banking situ- j and of miscellaneous freight showed none of the ation during February and the first three weeks \ usual seasonal increase in February, while sales of March was reflected in a decline in bank j at department stores remained unchanged, as is suspensions and a return flow of currency from \ usual at this season. the public to the banks. ; Wholesale prices.—Wholesale commodity Production and employment.—Output of prices, as measured by the index of the Bureau industrial products increased less than season- of Labor Statistics, declined further from 67 ally in February, and the Federal Reserve per cent of the 1926 average for January to 66 Board's index, which makes allowance for the per cent for February. Between the first week usual seasonal variations, declined from 71 per of February and the third week of March there cent of the 1923-1925 average to 70 per cent. were increases in the prices of cotton, livestock, Activity in the steel industry during February and meats, while prices of grains, nonferrous and the first three weeks of March showed metals, and imported raw materials, including little change from the January rate, although silk, sugar, and rubber, declined considerably. ordinarily substantial increases are reported Bank credit.—In the banking situation the at this time of year. Automobile production | important developments in February and the continued in small volume, showing none of the first half of March were a considerable reducusual seasonal expansion, and the number of tion in the number of bank suspensions and a cars produced in the 3-month period ending in return flow of currency from the public to the February was about 35 per cent less than in banks. The country's stock of monetary gold the corresponding period a year ago. In the declined in February but increased somewhat lumber industry output declined further, con- in the first half of March. Member bank trary to seasonal tendency. Activity at cotton reserve balances, after decreasing almost conmills and shoe factories increased by more than tinuously since last summer, showed a slight the seasonal amount and was at about the increase for the first two weeks in March. same level as in the corresponding month last- Purchases of United States Government obliyear. gations by the Federal reserve banks, beginning Volume of employment at factories increased in March, were accompanied by a considerable in February by somewhat less than the usual decline in member bank indebtedness to the seasonal amount. In the iron and steel, auto- reserve banks. mobile, and machinery industries the number ' Loans and investments of member banks in employed showed an increase smaller than is | leading cities continued to decline until the usual in this month, and at lumber mills a con- middle of March, when there was a substantial tinued decline in employment was reported. increase, owing largely to the banks' purchases At establishments producing fabrics, wearing of United States Government securities issued on apparel, and shoes volume of employment March 15. Demand and time deposits of these increased by more than the seasonal amount. banks decreased further during February but Daily average value of total building con- showed little change in the first half of M&rch. Open-market rates on acceptances and comtracts awarded, as reported by the F. W. Dodge Corporation, showed little change in mercial paper declined during February and the February and the first half of March, and for first half of March. During this period yields the period between the 1st of January and the on Treasury and other high grade bonds middle of March the value of contracts was decreased to the lowest point since early De65 per cent less than a year ago, reflecting con- cember, but after the middle of the month tinued declines in residential building as well yields on high-grade corporate bonds increased as in other types of construction; part of the somewhat. 228 FEDERAL RESERVE BULLETIN APRIL, RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES MILLIONS OF DOLLARS MILLIONS OF DOLLARS 6000 6000 5500 [5500 —• 5000 5000 4500 4500 *' , 4 - > :: ::-—— 4000 Member Bank Reserve Balances ; 2500 r 2500 2000 2000 1500 -' 1500 ; t 1000 500 .[_..... 1927 1928 1929 1930 1931 Based on weekly averages of daily figures; latest figures are for week ending March 2G 1 1932 j 0 1932 229 FEDERAL RESERVE BULLETIN A P R I L , 1932 FEDERAL RESERVE BANK CREDIT RESERVE BANK. CREDIT OUTSTANDING AND FACTORS IN CHANGES [In millions of dollars] Averages of daily figures Factors of decrease Reserve bank credit oiitstandiitg Factors o "increase Month or week 1931—Januarv February March \pril Mav _. Week ending (Saturday)— Dec 20 842 _ Jan 2 Jan.9 Jan 10 Jan. 23 Jan 30 Feb. Fob Feb. Feb 6 13 20 27 Mar Var Mar Mar. 5 12 19 20 --- Apr. 2 -- : : : Member Nonbank member reserve deposits, balances etc. 952 926 945 954 1,107 1.313 2,088 2,035 1,950 28 25 24 27 28 35 83 187 199 208 171 144 379 379 381 383 382 380 370 307 304 301 357 358 57 43 24 1,865 1,785 1, 652 4.452 4, 384 4,372 1,773 1,787 1,792 5, 045 5, 027 5,531 1, 979 1, 907 1,899 113 73 37 353 349 349 1,129 936 281 790 72 1,991 4, 467 1, 780 5, 727 2,013 145 359 803 • 815 ! 820 : 831 859 : 315 288 222 187 : 102 • 791 771 752 752 749 58 00 55 53 52 1,967 1,934 1,855 1,823 1,822 4, 459 4, 404 4. 404 4,454 4, 429 1, 707 1, 700 1,774 1,780 1,773 5, 666 5, 680 5. 040 5, 032 5,017 2. 053 2. 020 1,087 1,950 1, 911 118 111 108 119 117 350 353 352 350 349 802 • 843 '• 850 : 842 157 166 150 ; 139 ' 749 742 741 740 54 52 43 31 1,822 1,803 1,790 1,752 4,410 4, 405 4, 379 4, 350 1,777 1,777 1,794 1, 795 5, 045 5, 042 5, 027 5, 005 1, 925 1,917 1, 900 1, 895 91 78 82 55 318 348 348 348 828 757 084 007 125 130 • 107 84 754 780 820 825 : 24 20 23 23 1,731 1,705 1,634 1,599 4, 352 4, 303 4, 374 4,382 1,783 1,778 1,825 1,791 5, 594 5, 503 5, 537 5,498 1,885 1,901 1,909 1, 890 41 34 37 33 346 348 350 351 051 68 1 22 1,595 4,390 1,789 5, 409 1,909 45 351 854 E n d of m o n t h series "Wednesday series 1932 1932 i ! i I Oct. i X o v . ! Dec. Jan. F e b . : M a r . 31 • 30 31 : 31 29 j 31 Bills discounted Bills bought United Stales securities Other reserve bank credit _ T o t a l reserve b a n k c r e d i t Monetary gold stock Treasury currency adjusted Unexpended capital funds 2, 433 2, 370 2, 380 2, 376 2, 3S7 2, 404 2, 407 2, 345 2, 333 2, 250 2,118 2, 009 759 743 809 828 : 848 i 714 _ • Money in circulation 4, 095 4, 598 4, 590 4, 047 4, 079 4, 750 4. 830 4,947 5,133 5, 478 5.518 5, 011 221 151 105 1932—January . February March - - : : Monetary Treasury gold stock currency adjusted 1,784 1,780 1,778 1,770 1, 783 1,759 1, 784 1, 704 1, 708 1, 708 1,766 1, 782 23 15 18 24 20 20 32 38 38 50 53 59 200 H)2 123 173 144 121 79 135 259 092 500 340 Total 4, 022 4, 050 4, 082 4,711 4, 707 4,805 4,958 4,975 4,948 4, 447 4, 363 4, 450 047 003 004 000 599 010 674 712 730 733 727 777 253 216 176 155 163 188 • 109 i 222 i 280 013 095 774 J line Julv August September October . November December Other reserve bank credit | United Bil]s Bills discounted 7,8 452 717 44 038 339 81? 59 899 153 74'i 58 828 109 i 740 j 32 I 2,184 1,931 1,853 1,856 1,709 4,292 1, -114 |4,4C0 ;4,415 ;4, 353 1, 7-37 1, 7)9 11, 759 : 1,775 il. 791 039 08 872 18 ,597 3s8 800 Money in circulation 5,540 5, 53'i i.V-47 5,042 ;5.003 '*; 459 921 1,947 M e m b e r bank reserve balances. 2, 1('>7 2,051 59 Xonmember deposits, etc 181 170 ' 110 : 107 . 354 ! 350 ; 347 I 349 Unexpended capital funds 355 357 1 F e b . Mar. • M a r . ' Alar. M a r . • M a r . 24 2 '. 9 . 10 23 i 30 Bills discounted ' 835 828 Bills bought I 133 • 116 Special Treasury certificates ! Other United States securities.J 741 . 7(0 Other reserve bank credit.. ; 2 5 ; 25 T o t a l reserve b a n k credit Monetary gold s t o c k . . Treasury currency adjusted 1,734 4,350 ,1,780 Money in circulation '5, 592 Member bank reserve balances. 1,878 Unexpended capital funds, non- j member deposits, etc _J 395 748 661 C66 138 . 100 ' 82 : 32 785 810 835 27 • 25 15 633 06 872 10 ,729 1,698 1,634 1,597 i 1,587 ,350 4,362 4,374 4,381 4,388 ,791 1,775 1,838 1,792 1,780 583 5,544 5,522 5,480 j 5,439 902 1,910 :1,919 1,911 1,9.11 385 382 405 380 \ 405 * Preliminary. For explanation of relations between movements of reserve bank credit, factors of decrease, and factors of increase see BULLETIN for July, 1929, p p . 432-438. Back figures.—Sec (for averages of daily figures) Annual Report for 1930 (Tables 1, 2. a n d 3). 230 FEDERAL RESERVE BULLETIN APRIL, 1932 RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL RESERVE NOTE STATEMENT [In thousands of dollars] • Mar. 31, 1932 '• Feb. 29, 1932 M a r . 31, 1931 HESOURCES 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 Total gold reserves Reserves other than gold Total reserves Nonreserve cash ... Bills discounted: For member banks For intermediate credit banks For nonmember banks (secured by adjusted service certificates). Total bills discounted Bills bought: Payable in dollars— Bought outright Under resale agreement Payable in foreign currencies ... .. ... Total bills bought United States securities: Bought outright Under resale agreement 2,008,907 55,743 1, 733,124 32, 047 2,255,712 270,289 ' 487,702 2, 12-1, 050 203,003 519, 790 1,705.771 499, 970 848,894 3,019,703 215,401 2.93S, 109 201,045 3.114,041 181,037 3,235,104 77,805 3,139, 754 71,548 3. 290, 278 73,124 032,300 i 5.910 : 208 i 817,489 10, 573 415 250, 027 121 038,550 828, 477 250,225 31,843 4,930 30,778 08,819 0,852 33, 478 113,380 9,800 1,003 109,149 124,303 800,070 11,502 . 740, 032 598, 431 100 871,C32 I 740, 032 598, 531 07,557 . .... Total United States securities. Other reserve bank credit: Federal intermediate credit bank debentures Federal land bank bonds Munici pal warrants Due from foreign banks Reserve bank float (uncollected items in excess of deferred availability items)... Total reserve bank credit outstanding Federal reserve notes of other reserve banks Uncollected items not included in float Bank premises All other resources ._ .. . .. . . .. ... .. Federal reserve notes: Held by other Federal reserve banks. Outside Federal reserve banks Total notes in circulation . . . . . . . . .. i—•; ...| 10,000 7,040 0,045 : 4,011 i 4,003 8, 007 8, 019 707 10,553 1,596,841 i 1,708,887 990,319 15,792 " 349,448 57,853 30,199 15,910 340, 027 57,821 39, 577 14,278 403,183 58, 322 17,001 5,309,102! 5,374,130 4,913,105 2.547,094 15, 792 ! 1 2,503,480 ! 15,910 2,035, 253 14,278 1,472,080 2,051,109 1,480,358 1,923,533 29,540 30,300 28,397 1.848,887 35, 825 10,583 30,023 2, 428, 081 55,910 5,145 10,515 2,012,100 349,448 155,023 259,421 29,018 1,937,318 340, 027 157, 492 259,421 28,103 2, 505, 057 403,183 108,828 274, 030 .14,443 5,309,102 335,432 : 5.37-1,130 311,870 4,913,105 430, 779 2,810,584 ; 253,098 2,911,743 200,574 1,875, 042 389,284 2, 503, 480 2,051,109 | 1,480,358 2.211,147 007, 000 2, 008,907 892,153 1,733,124 351,122 2,878,147 2,901.000 2, 084, 240 LIABILITIES Deposits: Member bank—reserve account... Government Foreign bank Other deposits . 200 _ Total resources.. Total deposits Deferred availability items Capital paid in Surplus All other liabilities 2,211,147 44,565 ! ... .. ... . Total liabilities Contingent liability on bills purchased for foreign correspondents : ; : ; FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks1 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.. ' Excludes "Federal reserve notes of other Federal reserve banks" which are consequently included in actual circulation. 231 FEDERAL RESERVE BULLETIN APRIL, 1932 ANALYSIS OF CHANGES IN MONETARY GOLD GOLD MOVEMENTS TO AND FROM UNITED STOCK STATES [In thousands of dollars] [In millions of dollars] 1932 Analysis of changes Month I Gold I stock Net re- Domesat end Increase j in stock ;! set gold lease tic proof month. during '; import from ear- duction, I month : etc.2 mark i J 1929—January February March April May June July— August Septern her October November December I \ I ! i | ! j | j j 4,127 4,153 4,188 4,260 4,301 4,324 4,341 4,360 4,372 4,386 4,367 4,284 :j jj ! I, ,. ;. 48.6 7.5 16.1 -7.5 -22.0 -1.0 -6.6 -4.5 1.0 -22.0 3.4 .9 2.1 0.7 0.9 0.7 3.6 1.5 1.1 1.4 2.3 3.5 175.1 , - 5 5 . 4 22.7 47.2 25. 5 24.8 23.1 23.6 30.2 34. 7 18.4 17.6 17.5 16.3 : 18.9 !• 12.1 i. 14.4 i -19.2 ! -23. 2 - 8 2 . 9 ;l - 6 4 . 4 142.4 i -65.0 1930—January ____; 4,291 4.0 : 0.5 6.8 ;. February I 4,353 60.0 0.0 59.9 |! . March | 4,423 55.5 j 13.0 68.2: April ] 4,491 65.7 0.5 68.5 ;! 23. 5 2.0 25.9 ii May.— 4,517 13.9 , 2.0 17.6 j! June _ ! 4,535 -3. 0 - 1 8 . 4 |; - 1 9 . 6 July. -_i 4,517 0.0 August.. - 1 5 . 5 i| - 1 9 . 6 4,501 September. 2.5 4.0 10.2 ;; 4,511 October 26.4 ' - 6 . 1 • 4,535 23.3 I, November. 35. 2 4,571 -2.1 ' 36.8 i! 32.7 -15.2 | 22.1 j| December j 4,593 ! Total (12 mos.)..; : 305.4 280.2 -4.4 I 4,643 i 11.9 : 34.4 49.4 4,665 ! 16.1 22.0 2.5 : \ 4,697 :i 25. 6 32.0 ! 3.0 i 4,726 49. 5 28.7 7 .5 4,798. 49.6 72.4 4.0 , 4,956 ! 158.0 63. 8 92.3 4,949. - 6 . 6 19. 5 - 2 9 . 7 ; _ 4,995 ! 57. 5 - 1 6 . 0 | 45.7 ___; 4,741 j -254.3 20.6 -279.1 : '. 4,292 : -448. 4 -337. 7 -107.6 4,414 i 122.0 i 89.4 28.3 4,460 ; 56.9 45.8 -22.9 : ! Total (12mos.).. ; -133.4 145.3 - 3 2 0 . 8 ! 1931—January February. March April May June July August September October November December 1932—January... February March v Imports •• -14.4 26.4 34.4 72.4 40.6 23.4 Total (12mos.)~; March (preliminary) From or to— ! : 4,416 ; - 4 4 . 2 ;: - 7 5 . 0 __; 4,354 : - 6 2 . 3 j - 9 0 . 6 _..: 4, 389 j -4-34. 0 |i - 2 6 . 7 25.4 26.4 58.3 2.3 1.9 -0.3 2.3 0.5 1.7 4.3 4.2 3.7 3.1 3.8 4.5 Exports •pphrmrv Jjeoruarj, Imports JanuaryFebruary Belgium.. 6,341 ; 17,859 England.. j 235 ' France j 98, 203 37,533 I 495 • Germany Italy. 8,672 ! Netherlands 2,386 Portugal.. _ i Sweden 254 Switzerland 6 8,417 11 Canada. 7,002 69 ! Central America. 965 : Mexico.. 2,375 • Argentina [ 2,683' 1,157 | ; Colombia i 7i Ecuador __ __' 205 ! Peru ._•; i .! Uruguay i 1,000 ' Venezuela.. 133 '• British India _ 2,575 ; China and Hong I Kong 2,903 I : 819 Dutch East Indies. 1 .. ' 278 ; : Japan _. 19,441 i : Philippine Islands i 289 I 24 All other countries!.. 2,208 \ 33 j 2,288 i Total * 17,171 : 2 43,913 Exports Ex- I Imports | ports 37,644 128,211 • 30,412 171 I i 3,604 181,987 566 14, 929 2,386 10,579 !j 191 2,073 ! 10,267 2,956 312 ! 166 . 1, 000 • 254 7,252 2,013 27 20 57 987 693 : 29,410 | 581 ! 3,656 i 70,550 74 236,075 32.0 3.1 3.3 3.3 -13.3 18.8 1.9 3.6 4.2 4.2 -3.1 4.2 11.9 1 Includes all movements of unreported origin or destination. 2 At New York—imports, $6,585,000; exports, $43,913,000. Elsewhere imports, $10,586,000* KINDS OF MONEY IN CIRCULATION [In millions of dollars] 1932 1931 Mar. 31 v \ Feb. 29 Mar. 31 Kind of money 42.1 5.4 1.9 3.3 Gold coin Gold certificates Federal reserve notes. 404 779 2,546 . 406 820 I 2, 634 I 354 1,047 1,471 Treasury currency: 1 31 ! 35 Standard silver dollars 355 j 372 Silver certificates 1 1 1 1 Treasury notes of 1890 Gold released from earmark at Federal reserve banks less gold placed 271 260 259 Subsidiary silver under earmark. 116 114 114 Minor coin 2 This figure, derived from preceding columns, represents the excess of 289 280 274 . United States notes domestic production over nonmonetary consumption of gold—chiefly 3 3 3 Federal reserve bank notes.. consumption in the arts. In any given month, however, it may be 648 691 National bank notes predominantly affected by the fact that on the final day of the month (a) gold bullion or foreign gold coin recently imported may not yet have 1,743 1,730 Total Treasury currency reached a reserve bank or the Treasury, and (6) gold bullion recently withdrawn from stock for export may not yet have been actually Total money in circulation.. 5,603 5,459 exported. The figures are subject to certain unavoidable inaccuracies in official reports of gold imports and exports. p Preliminary figures. v Figures preliminary. i For explanation of the term "Treasury currency" see BULLETIN for July, 1929, p. 432. Total (3 mos.) *_'. - 7 1 . 6 i! -192.3 110.1 I 10.6 232 FEDERAL RESERVE BULLETIN APRIL, 1932 MEMBER BANK RESERVE BALANCES [In millions of dollars] Averages of daily figures Reserves held Month or week Total—all member i New York : banks uity» Excess reserves Other Other reserve cities Country"! ™aJ-aU New York Cityi banks banks | cities 1931—January February... March April May.. June July August September.. October NovemberDecember.. 2,433 2,370 2,386 2, 376 2,387 2, 404 2,407 2.345 2,333 2, 256 2,118 2,076 891 • 847 860 829 . 848 882 887 843 864 848 774 766 955 945 945 962 961 949 950 943 918 872 832 807 587 578 580 585 578 573 570 559 551 536 512 503 104.7 56.6 66.5 55.6 66.8 128.9 124.4 100.6 120.3 129.1 57.0 66.3 51.5 11.6 19.4 7.2 15.5 j 71.4 ! 60.6 i 34.3 53.8 ! 52.5 : 10.7 i 18.5 j 1932—January.. February- 1,979 1, 907 724 681 767 753 488 473 35.4 43.8 4.5 i 2,020 ; Week ending (Friday)— Dec. 25 748 ' 782 489 2,041 2,035 1,990 1,903 1,941 752 748 727 717 712 800 780 773 759 755 489 507 490 487 474 i7.5: 9.1 Feb. 5.. Feb. 12. Feb. 19. Feb. 26. 1,930 1,917 1, 906 1, 895 699 686 (580 673 753 754 754 752 478 477 473 469 4.5 i io.5; 7.8; 8.7 : Mar. 4... Mar. 11. _ Mar. 18- 1,890 1, 894 1,913 675 070 689 740 753 759 4(58 Jan. 1 Jan. 8. Jan. 15 Jan. 22_.__ Jan. 29_ 470 465 1 i Central reserve city banks only. Backfigures.—See(for monthly data) BULLETIN for June, 1931, p. 347. 22.5 18.2 18.7 20.2 23.6 27.0 32.8 35.7 36.7 39.7 19.4 3.9 1.8 i 11.3 ! 29.2 25.3 : ! ! ' i l | ! " s i I 5.8 : 11.7 10.2 i 13.4 11.1 : 19.9 j 24.3 ; 7.2 • ( ) 16.9 i 30.7 26.7 28.4 28.2 27.7 30.5 30.9 30.6 29.8 37.0 26.9 30.9 22.5 1.1 3.2 -2.1 1.9 7.6 j 6.0 I 4.8 | 2 ; i ' 4.9 j 8.4 ; (2) 'Country" banks 14.4 ! (*) Figures not available by weeks. MEMBER BANK DEPOSITS [In millions of dollars] Averages of daily figures Net demand and time deposits Month ber banks Net demand deposits Time deposits i ! New Other City i cities T o t a l - | New "Coun- all mem-1 try" ber i York banks banks I Cityi : New Other ' ' Coun- oilTotal— mam ' York reserve try" ber i Cityi cities banks banks ; Other ' ' Counreserve try" cities banks j 1931—January February.._ March April May June July August.._ September October. November December ._._ 32,048 ' 31,968 i_J 32,069 •: i 32,179 : 32,168 :i I 31,602 •• ! 31,526 ij - - I 31,041 : ' 30,500 ij •' 29,138 !i ! 28,218 \ ! 27,438 ! 1932—January... February... ! 26,592 !! ; 25,715 || 12,942 12,932 13,003 13,181 13,157 12,939 12,831 12, 702 12,356 11,657 11,350 11, 048 11,662 11,583 11,594 11,662 11,573 11,432 11,371 11,192 11,018 10,544 10,256 9,976 18,572 18,389 18,431 18.491 18,419 18,055 18,122 17, 783 17,525 16,859 16. 358 15,985 6,163 6,120 6,169 6,019 6,094 5,934 6,064 5,946 5,962 5,872 5,653 5,546 7,243 7,170 7,159 7,309 7,236 7,132 7,102 7,012 6,805 6,421 6,273 6,106 5,165 5,099 5,103 5,163 5,090 4, 988 4,956 4,825 4,758 4. 567 4, 432 4,333 13,477 13,580 i 13.637 | 13,688 i 13,749 i 13,548 : 13,404 13,259 12,974 i 12,279 : 11,860 11,452 6,165 10,706 5, 797 : 10,413 9,720 9,505 15, 447 14,789 j 5,343 5,001 5,921 5,723 4,183 4,0(54 11,145 10, 926 7,445 • 7,453 7,472 7,336 7,439 7,232 7,325 7,147 7,126 6,937 6,612 6,414 i Central reserve city banks only. Backfigures.—SeaBULLETIN for June, 1931, p. 347. 1,282 1,334 1,303 1,317 1,345 1,297 1,260 1,201 1,163 1,065 959 868 5,698 5,761 5,843 6,872 5,921 5,807 5,728 5,691 5, 552 5,236 5,076 4,942 6,496 6,485 6,491 6,498 6,483 6,444 6,415 6,367 6,259 5,977 5,825 5,643 822 796 4,786 4,090 5,537 5,440 FEDERAL RESERVE A P R I L , 1932 233 BULLETIN ALL MEMBER BANKS—CLASSIFICATION OF LOANS AND INVESTMENTS [In millions of dollars] Open-market loans Loans to other customers _|l !| j •I ll Purchased paper Total loans .1 Loans! and :| to ! invest- •! banks Total ments i| Call date SeSecured cured by by stocks real and bonds Other- ! wise secured Total and unse- ; cured i 6,646 i 7,348 ! 7, 540 7. 734 8, 109 8,488 i 7,730 ! 8.061 i 7.864 , 7,942 7.423 7,117 ! 0,842 ! 0,290 11, 507 10,991 11,240 11,618 11.9SS 11,515 10, 595 10. 349 9.9S2 9,831 9, 298 8,922 8, 722 8,244 Acceptances payable in United States Investments Accept- Comances j merpay- | cial able paper abroadj Total loans sej Loans U.S. cured to j I Gov1 by Other bro| ernkers Total I ment secur- i stocks ;! a n d in 1 secur- ities ! ( b o n d s 1 New ities •I York i TOTAL—ALL MEMBER RANKS 31,929 : 35, 684 35, 393 35,711 | 35,914 i 35,934 . 35,056 I 35,656 , 35,472 i 34,860 34,729 33,923 33, 073 30,575 1928—Oct. 3 Dec. 31 1929—Mar. 27 June 29 Oct. 4 Dec. 31 1930—Mar. 27 J u n e 30 Sept. 24 Dec. 3 1 . — 1931—Mar. 25 J u n e 30_ -Sept. 29 Dec. 31 NEW YORK CITY 3 7,197 7,951 7, 720 8, ltiO 8,150 8, 774 8,238 8, 798 8, 557 8, 582 8,473 8,287 • 8,253 7,400 1928—Oct. 3 Dec. 31 1929—Mar. 27 J u n e 29 Oct. 4 . . . Dec. 3 1 . — 1930—Mar. 27 J u n e 30 Sept. 21 Dec. 31 1931—Mar. 25 J u n e 30 Sept. 29 Dec. 31 OTI1ER RESERVE CITIES 1928—Oct. 3._ Dec. 31 1929—Mar. 27 J u n e 29 Oct4 Dec. 31 1930—Mar. 27 June 3O._ Sept. 21 Dec. 31 1931—Mar. 2 5 . . . J u n e 30 Sept. 2 9 . . . Dec. 3L_. --— - 548 538 548 670 640 714 527 535 466 631 446 457 599 790 i 21,242 ! 21,462 21,903 22, 516 23, 249 I 23.194 I 21, 495 | 21, 565 21,010 ;21.007 ' 19, 940 19, 257 18,713 j 17,570 3,089 3.123 3,123 3,164 3,152 3. 191 3,170 3, 155 3,163 3,234 3, 220 3, 21.0 3,149 3, 038 2, 537 3, 15S 2, 494 2.472 2, 276 2,243 3, 097 3,113 3, 262 2, 233 2,454 2,103 1, 563 901 287 I 3,919 288 ! 3,940 " " " 4,253 251 314 4, 532 302 4, 84(5 322 4, 904 199 4, 338 190 4, 308 109 4, 270 283 4, 338 154 4,007 150 3, 839 250 3, 850 374 3, 094 1,530 1,708 1,744 1,877 ! 1,944 i 2,200 , 1,930 I 2.022 ! 2,0.'U j 2. 137 ! !,<H;O I 1,897 | 1,810 i 1,728 j 214 213 258 308 294 346 263 277 235 286 235 247 284 347 9, 090 9, 267 9, 280 9,434 9, 775 9,748 8,951. 9. 029 8, 720 8, 900 8, -109 S, 100 7.845 7,407 3, 382 3, 734 IJ, 740 .'5,718 3, 869 3, 975 3, 004 3,811 3 , (V.i'?. 3, 650 3,366 3.188 3,092 2,800 4,178 875 1,530 3, 980 742 1,547 4,036 645 1,509 4,213 480 1,503 4,415 526 1,491 438 1,559 | 4,214 945 1,544 I 3,802 710 1.524 ' 3, 093 3, 507 1,004 1,526 3, 020 531 1,631 3,423 645 1,619 3,291 470 1,021 3, 108 326 1,585 • 3,003 135 1,538 8, 225 8, 254 8, 364 8,551 8, 027 8,4Sl 8, 200 8, 229 8,007 7, 702 7, 521 7,3J 8 7,018 6,469 1,727 1, 900 2,050 2, 139 2.295 2,314 2,190 2, 227 2,200 2, 149 2,097 2,031 1,935 1,756 5,075 1,423 4,904 1,444 1,405 . 4, 843 4, 920 1,486 1,482 4, 847 1,462 4,705 1,475 4,541 1, 475 4,527 1,480 4,320 1,455 4,158 1,449 3,978 3,849 1,437 1,411 3,673 . 3,307 I 1,346 I 130 132 148 175 176 109 150 157 157 147 150 160 152 153 j ; I ' | I 2, 253 2. 100 2, 301 2,480 2, 720 397 2, 595 055 2, 252 091 2, 129 912 2, 087 2, 054 . , 525 1, 890 | ,051 497 1,782 i 1,497 1,881 I 1, 121 1,813 '•• 095 1,899 2, 556 1,879 2, 025 1,885 1,660 2,344 I 2,365 ' 2,472 i 1,498 | J,030 ! 1,217 : 928 575 . 80 109 146 10S 93 212 175 170 205 315 361 389 268 140 101 103 93 90 70 80 79 71 62 55 101 113 70 41 457 390 376 249 22* 291 499 507 5'23 366 301 381 290 140 50 01 59 58 59 128 89 144 148 188 199 290 201 107 55 61 52 58 33 40 40 29 28 22 51 44 33 17 03 29 37 21 8 21 49 35 22 34 35 94 48 29 6 18 43 17 8 51 59 18 54 122 158 91 67 35 30 34 32 25 31 29 35 38 31 29 48 67 35 21 199 150 147 88 75 108 242 301 337 212 212 189 167 62 541 423 349 413 250 609 353 643 107 227 124 56 16 17 i 195 211 1.92 140 144 1GS 207 171 104 120 114 101 81 378 : 376 ! 354 • 316 ! 370 208 258 i 129 • 115 49 36 ! 30 32 16 10,604 ; 10.529 ! 10,448 ' 10,052 ! 9,749 • 9,784 I 9,937 ; 10, 442 ; 10,734 || 10,989 J 11,889 12, 100 12,199 11,314 4,386 4,312 4,454 4,155 4, 022 3,863 4.085 4,061 4, 095 4,125 5, 002 5, 343 5, 564 5,319 6,218 6,217 5,994 5,898 5. 727 5,921 5, 852 6, 380 6, 639 6, 864 i), 880 0, 763 6, 035 5, 996 1,942 N 1,130 813 .; 1, 933 :| 1,094 83!) il 1,972 ;! 1,135 838 i: 1, 810 1 1,000 813 :; 817 989 llouJi ! 1,807 979 1,112 1, 202 2,091 J, 477 2,046 897 \ 1, 150 ,050 !' 1,147 1,883 ; 2,203 1,714 ' 2,198 1, 091 , 1071: 1,239 .1,281 : 2,435 197 i| 1,307 : 2, 662 1, 400 190 ;j 1,003 i 2, 801 1,056 145 !i 839 j 3, 032 1,830 202 ': 542 | 2, 697 1,708 928 I 880 1,039 ! 1,102 041 i 8,819 10,172 9,693 10,094 10,314 10,505 10,334 10,656 10,511 9,754 9,272 8,503 8,081 7,320 2, 500 3,491 2,971 3,393 3,191 3, 502 3, 504 3,983 3, 798 3, 550 3, 397 3, 026 2,780 2,474 2,041 j 2,008 I 1,840 ; 1,846 j! 1,717 ' 1,709 .' 1,754 ! 1,909 | ; 2,161 1,785 1,727 2,308 2,313 2, 304 2,408 2,342 • 2,301 2.200 i 2 , 1 3 3 2,093 : 4,130 4,381 4,292 4,221 4,429 4,397 4,368 4,306 4,387 3,991 3,729 3.459 3,317 3,050 .! 1,302 3,365 li 1,382 3,370 I i! 1,424 3,316 ! : 3,240 : j 1,384 "; 1,301 3.193 I j 1,267 3,172 !, 1,273 3,202 | ' 1,229 3,326 1,219 3,370 1,159 3,359 1,224 3,326 3, 276 ! 1,279 3,172 !: 1,433 1,418 2,974 2,129 2,300 2,429 2,480 2, 694 2, 545 2,462 2,307 2,326 2,213 2,147 2,078 1,985 1,796 3, 935 i 3,814 3, 736 3,611 , 3,388 3,253 ! 3,416 \\ 3, 685 i! 3, 917 ! l : 4,035 il i 4, 676 i," ! 4, 750 il : 4, 561 II . 4,226 H 1,894 1,836 1,896 1, 705 1,671 1,484 1,602 1,686 " C O U N T R Y " BANKS 1928—Oct. 3 . Dec. 3 1 . 1929—Mar. 27 June 29 Oct. 4 Dec. 31 1930—Mar. 27 J u n e 30 Sept. 24 Dec. 31 1931—Mar. 2 5 — . J u n e 30 Sept. 29 Dec. 31. 13,612 - 13,667 13,741 13,719 13,780 13,375 13,243 —_ 13,157 12,944 _ 12,519 12,290 . 12,068 . 11,805 - 10,999 614 625 598 496 553 409 496 312 280 177 158 135 11.6 71 24 ; 30 ! 44 l 33 27 33 ! 27 ! 8 I 4 i 5! 5 ! 5 4 4 4 3 2 2 2 2 ! : j i i 4,727 4, 751 4,740 4,623 4,554 4,439 4,475 4, 554 4, 5*9 4,519 4,550 4, 555 4.000 4,392 i Loans (secured by stocks and bonds) to brokers and dealers in securities at New York City. 'Including loans to banks secured by stocks and bonds, reported separately after 1929 and estimated for preceding dates as one-half of total loans to banks. * Central reserve city banks only. Back figures.—This classification of loans is not availabe for dates prior to Oct. 3, 1928, but comparable figures of total loans secured b y stocks and bonds are given for Juno 30, 1925-1928, in the board's Annual Report for 1928 (Table 52); for separate figures of United States Government securities and other securities back to 1914, see Annual Report for 1930 (Table 47). 234 FEDERAL RESERVE BULLETIN APRIL, 1932 ALL BANKS IN THE UNITED STATES—TOTAL LOANS AND INVESTMENTS, DEPOSITS [In millions of dollars. Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private banks under State supervision. For back figures see BULLETIN for May, 1931 (p. 253), and Annual Report for 1930 (Tables 42-43)] Total loans and investments Deposits (exclusive of interbank deposits) Member banks Date Total 1928—June 30 Oct. 3 Dec. 31 57,265 57, 219 i 58,266 39, 464 39, 671 40, 763 17,801 j 35,061 17,549 i. 34,929 17,504 ; | 35, 684 1929—Mar. 27 June 29 Oct. 4 Dec. 31 j i ! ' 58,019 58,474 58,835 58,417 40, 557 41,512 42, 201 41,898 17,462 j 16,962 ! 16,634 j 16,519 h 1930-Mar. 27 June 30 Sept. 24 Dec. 31 _J i j i 57,386 58,108 57,590 56,209 40, 686 40, 618 39, 715 38,135 16,700 ! 17,490 |! 17.875 j! 18,074 || 55,924 55.021 53,365 50,097 36, 813 35, 384 33, 750 31,010 19,111 19, 637 19,615 18, 481 1931—Mar. 25.. June 30.. Sept. 29_ Dec. 3 1 . . 35, 393 35,711 35, 914 35, 934 BANK LOANS AND INVESTMENTS, PERCENT AGE DISTRIBUTION NUMBER OF BANKS Member banks Date Total National State [Figures for December 31, 1931] Nonmember banks Total loans and investments Number . of banks Amount Percent(millions age dis of dollars) j tribution 1925—Dec. 31 28,257 8,048 1,441 18,768 1926—Dec. 3 1 . _ _ 27, 367 9,260 7,906 1,354 18.107 All banks in the United States . 1927—June 30 Dec. 31 26, 765 26,416 9,099 9,034 7,790 7,759 1,309 1,275 17, 606 17, 382 Member banks—total 1928—June 30 Dec. 31 25,941 25, 576 8,929 8,837 7,685 7,629 1,244 1,208 ' 17,012 16,739 1929—June 29 Dec. 2 9 . . 25,110 24, 030 8,707 8,522 7, 530 7,403 1,177 1,119 10, 403 16.108 23, 852 22, 769 8, 315 8, 052 7,247 7,033 1,068 1,019 15, 537 14,717 .__. 21.903 21,294 19,908 7,782 7,599 7,246 6,800 6,053 6,308 982 946 878 14,121 13,695 12,722 _ 1930—June 30 Dec. 31 1931—June 3O._ Sept. 29 Dec. 31 i All banks in the United States; includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private banks under State supervision. ' Revised. : Reserve city banks (62 cities) Central reserve city b a n k s New York City ! Chicago Other reserve city b a n k s New York City | Chicago | Other Federal reserve bank cities : (10 cities) I Federal reserve branch cities (25 • cities) _.._; Other reserve cities (25 cities) ; "Country" banks 1 Nonmember banks 1 19,968 50, 097 100 7,246 30, 575 61 403 19, 570 39 39 ; 12 i 9 23 ! 7,400 ! 1,517 j 15 3 31 L 09 L 97 5, 200 10 133 90 0,843 4, 099 1, 200 10, 999 2 22 12,722! 19,522 Includes certain outlying banks in reserve cities. 235 FEDERAL RESERVE BULLETIN APRIL, 1932 REPORTING MEMBER BANKS [In millions of dollars. Monthly data are averages of weekly figures] Total—all weekly reporting member banks Loans and investments Month or date Total Loans All on se- other curities loans New York City Loans and investment : Bor. rowInvestments :: ings at : F. R. U. S. so- banks Total curities Borrowings at Loans All F. R. on se- other banks l o a D S U. S. securities ! Total curities Investments Total i 1931 January February... March _ April May. _. June July August September.. October November.. December _ 22, 600 22,659 22, 839 22,942 22, 713 22,439 22, 393 22,093 22, 078 21, 425 21,023 20, 749 7,495 7,315 7,302 7,157 8,399 8,242 8,150 8,040 7,893 7, 853 7, 904 7,900 7,870 7, 079 7, 586 7,441 0, 700 7,102 7,387 7,745 7,822 7,810 7, 798 7, 713 7,795 7,775 7, 578 7,545 3,163 3,385 3,638 3, 913 3,957 4,048 4,121 4,074 4,154 4,171 4,072 4, 127 57 I 7,965 35 7,975 26 ! 7,889 28 7,875 50 7, 094 44 7,780 75 7, 633 127 7,744 398 7,400 404 7,258 499 7,105 3,111 3,079 3,176 3,080 3,039 2.846 2, 764 2, 640 2, 657 2, 369 2,277 2,237 2,472 2,410 2,295 2,242 2,194 2,204 2,305 2,370 2,375 2,272 2,243 2,218 January. February.. March 20,178 19, 775 19, 434 5,644 7, 331 5,497 7, 214 5,388 ' 6,987 7, 203 7, 004 7. 059 3, 943 3, 856 3, 866 409 484 308 6,921 6, 645 6.521 2,209 2,127 2,005 2,220 ; 2,171 2,078 2,492 2,347 2,378 Jan. Jan. Jan. Jan. f>__. 13.. 20.. 27.. 20,379 20, 287 20, 052 19,992 5, 087 5, 000 5, 032 5,596 7,302 7,250 7,117 7,137 4,057 3,990 3,880 3,841 483 7,039 I 409 . 457 j 6,838 467 | 6,819 | 2,223 i 2,210 ! 2,205 2,194 2,249 2, 249 2,211 2,171 2,567 1, 722 2,523 | 1,670 2,422 ! 1,578 2,454 j 1,547 Feb. Feb. Feb. Feb. 3.. 10. 17. 24. 19,979 19, 785 19, 731 19,600 5,574 7, 256 5, 504 ; 7,212 5,474 ! 7,217 5,438 I 7,171 7,149 7,009 7.040 6, 997 3,925 3,853 3,840 3,800 492 472 493 478 2,178 2,124 2,112 2,092 2,181 2,108 2,177 2,158 2,435 2,340 2,314 2,294 I j 1,593 i 1,520 : 1,490 1,477 Mar. Mar. Mar. Mar. Mar. 2... 9— 10.. 23.. 30. 19,523 | 19,305 ! 19,588 ! 19,403 19, 354 5,440 5,420 5,413 5,337 5,328 0, 935 0,869 7,200 7,149 7,143 3,742 3,704 4,016 3,951 3,920 j 474 0,540 ! 397 0,421 j 328 " 0,017 ! 334 0,480 i 305 6,541 | 2,109 2, 097 2,006 2, 009 2,043 2,100 2,077 2,082 2,039 2,031 2,271 2,247 2,469 2,438 2,467 | I I i ! 6,770 (i, 631 0, 480 6,413 5, 971 5, 859 5, 703 82 7,906 2,323 2,476 2,504 2,567 • 2,642 ' 2,644 2, 051 2, 623 2,712 2,825 2,738 2,710 i : : 1,254 1,353 1,391 1,414 1,460 1,523 1,608 1,600 1, 052 1,750 1,705 1,732 14,754 14,694 I 14,864 | 15,053 I 14,838 14,745 14, 613 14, 400 14,334 13,959 13,765 13,584 77 55 35 26 28 56 44 72 124 324 388 416 1, 031 1,521 1, 547 13, 257 13,130 12,913 435 461 365 00 ! 45; 15 i 15 i 13,340 13, 299 13, 214 13,173 423 424 442 452 35 15 20 20 13,185 13,147 13,128 13, 002 457 457 473 458 12, 983 12,884 12,971 12,917 12,813 459 397 328 334 305 1932 7,390 7,371 7, 303 7, 259 7,148 7,010 0, 975 0,917 6,883 0,794 (>,038 6, 003 0,544 ; 1,445 1,437 1,643 1,601 1,610 15 i I ' i BROKERS' LOANS MADE BY REPORTING MEMBER BANKS IN N. Y. CITY REPORTED BY THE NEW YORK STOCK EXCHANGE [In millions of dollars. Monthly data are averages of weekly figures] [Net borrowings on demand and on time. In millions of dollars] For ac- Total End of month i 1931 January February March April.... May June _ 1932 From New From private York banks banks, brokers, and trust com- foreign banking panies agencies, etc. 1932 ; 1,720 i 1,840 | 1,909 217 | 1,651 | 1,435 : 1,391 185 ' 141 170 July August September October November December 1931 163 1 9 4 '• 173 ! 194 112 ._ Back figures.—See Annual Report for 1930 (Table 57). 108 148 i 132 i 1932 138 140 142 1931—January.. February. March.... April May June July August September October November. December. 1932—January... February.. March Mar. 2... Mar. 9... Mar. 10Mar. 23.. Mar. 30.. For count of For acown ac- out-of- count of count town others banksi Total Month or date 1,798 1,759 1,858 1,824 1,644 1,464 1,434 1,342 ! : •; i ; : ' 1,268 921 802 655 544 495 531 ! ; ;; !; .; i; ! 495 • 552 561 524 525 i 1,132 1,186 1,335 1,322 1,279 1,110 1,062 951 943 674 588 554 473 417 432 429 l 404 431 399 438 329 290 264 271 191 181 204 226 174 90 124 88 65 72 94 337 283 259 231 174 173 168 165 151 157 90 13 6 6 5 01 84 125 120 82 5 4 5 5 5 i Member and nonmember banks outside New York City (domestic banks only). Backfigures.—SeeAnnual Report for 1930 (Table 56). 236 FEDERAL RESERVE BULLETIN APRIL, 1932 ACCEPTANCES AND COMMERCIAL PAPER BANKERS' ACCEPTANCES OUTSTANDING CEPTANCES) (DOLLAR AC- CLASSES OF BANKERS' ACCEPTANCES ACCEPTANCES) [In millions of dollars] Jin millions of dollars] ^: End of month Total outstanding r JJssee^^e 'e! !H e ll ddb77 group of o ac! banks For own account (DOLLAR cepting banks cepting ! For ! i ac- i i count: : of for-\ j eign j corrc- j spond-j 1 ents i bills Bills bought Based on goods stored in Based Based United States on ex- (ware- Dollar exTotal im- ports house from credits) change into U.S. or TT Q shipped between domestic points ! j Held I by j others End of month Based on goods stored in foreign countries or shipped between foreign points OUTSTANDING 1930—January 1,693 February... 1,624 March ., 539 April ,414 May ,382 June ,305 July ., 350 August ,339 September . ,367 October ., 508 November- ,571 December. . ,556 1931—January ,520 February... ,520 March ., 4(57 ,422 April ,413 May June ., 368 July ,228 ,090 August 996 SeptemberOctober 1.040 November.. 1,002 December.. 974 293 269 277 209 184 127 129 167 208; 141 , 143 j 328 I 89 85 123 162 124 95 39 70 420 647 418 305 1932—January February... March- 119 76 37 961 919 526; 503 : 482 465 '. 403 ; 470 i 479 ! 471 ' 432 | 433 | 429 I 439 ; 220 183 167 158 166 205 279 |! 267 ' 317 384 493 371 63 71 72 55 63 64 63 95 131 172 180 90 157 112 95 i 103 103 141 216 172 186 212 313 282 653 669 613 582 570 503 463 434 411 550 507 417 447 : 456 431 409 i 380 ! 341 243 228 100 ! 99 126 251 I 314 ; 312 ! 335 : 571 550 472 410 464 554 668 606 410 230 296 262 134 151 131 125 171 196 232 168 162 112 125 131 437 398 341 285 293 357 436 438 248 118 171 131 412 429 441 441 444 379 278 186 66 63 162 156 159 175 174 168 195 189 332 343 1 ! i ! i i ! : Figures for acceptances outstanding (and held by accepting banks) from American Acceptance Council. Back figures.—See Annual Reports for 1929 (Table 58) and 1928 (Table 61). ACCEPTANCES PAYABLE IN FOREIGN CURRENCIESHOLDINGS OF FEDERAL RESERVE BANKS [In thousands of dollars] End of month 1929 1930 1931 1932 1931—January February March April May June Julv August September October November December 1932—January February .. . 1,520 1,520 1,467 1,422 1,413 1,368 1,228 1, 090 996 1,040 1,002 974 214 212 212 211 207 202 186 178 174 173 158 159 400 398 390 360 361 349 330 276 257 261 254 222 292 295 282 271 264 254 238 202 190 238 258 267 65 71 62 73 75 69 52 43 37 38 34 31 549 544 520 507 505 494 423 391 338 330 298 296 961 919 150 142 207 195 272 271 34 26 298 284 89 85 123 162 124 95 39 70 420 647 418 305 10 13 17 24 20 15 7 10 68 105 61 43 13 11 23 25 18 16 6 9 55 93 66 55 23 17 27 37 19 17 8 88 129 99 84 ;-;, 42 52 60 59 39 16 38 185 285 170 104 119 76 16 9 19 12 32 27 8 2 3 8 f> 5 2 3 17 24 16 14 2 HELD BY F. R. BANKS (OWN ACCOUNT)! 1931—Januarv lebruary March April May June July August September October November December 1932—January February Q 1 47 25 i Total holdings of Federal reserve banks include a small amount of unclassified acceptances. Back figures.—See Annual Report for 1930 (Tables 61 and 14). COMMERCIAL PAPER OUTSTANDING [In millions of dollars] 1931 End of month 1930 1932 1929 33, 444 407 404 327 33,478 January... ••108 411 457 30,778 February 315 103 387 March | 529 311 30,778 351 April 553 307 ; 304 May _ __.j 541 305 274 June _ _ | 527 292 265 July ; 528 289 267 August— j 526 271 265 September J 513 248 285 October j 485 210 316 November I 448 174 334 December ! 358 118 i Back figures.—See Annual Report for 1928 (Table 12), 1927 (Table 12), r Revised. 926 (Table 24), etc. Figures for commercial paper as reported by about 20 dealers. Back figures.—See Annual Report for 1930 (Table 60). January FebruaryMarch April May June July August September. October November.. December— 1,019 1, 029 1,036 1, 036 1,040 1,043 2, 061 12, 346 16, 955 17, 064 1,027 1,030 1,035 1,038 1,040 1,054 1,058 1,064 1, 065 1,071 1, 075 21, 583 31, 587 35, 983 36,119 23, 958 1,063 1,074 1, 073 10, 551 34, 371 145,215 48,804 33, 501 33, 386 33, 429 APRIL, 237 FEDERAL RESERVE BULLETIN 1932 BANK SUSPENSIONS AND BANKS REOPENED Banks suspended Number Banks reopened Deposits (in thousands of dollars) Deposits (in thousands of dollars) Year and month Members Members Non- | All memAll banks banks i NaI bers ! National State i tional State 1921. 1922. 1923. 1924. 1925. 1926. 501 354 648 776 612 956 : i ! | 51 | 45 I 90 I 122 118 125 1927.. 1928. 1929. 1930.. 1931. 662 491 642 1,345 2,298 i I i ! | 91 57 64 161 409 1930—September October November December _.i I , | 1931—January... February March April _ May June July August September October November December r..\ j J ! I ! i _J 1932—January... February.. March 19 :! 431 196,460 21, 285 12 297 i 110,721 19,092 524 j 188,/ 01 32,904 : 60,889 37 : 617 ! 213,338 58,537 • 28 ; 466 ! 172,900 47,866 35 796 | 272,488 33 538 i 193,891 46,581 418 ! 138,642 31,619 16 37,007 561 I 234,532 17 26 1,158 ! 864, 715 173, 290 439,171 108 1,781 :l, 691, 510 34 • All j; Mem banks!; bers 21,218 : 153,657 5,151 ! 86,478 18,324 : 137,473 13,580 i 138, 8,727 I 105,636 20,946 ! 203,676 19,755 10, 621 20,128 207,150 294, 357 127, 555 96, 402 177,397 484, 275 957,982 14, 361 23,947 6,606 15, 272 8,311 6,610 2,273 3,538 53,944 66 72 254 344 7 10 26 49 2 7 7 57 ! 23,666 62 ! 24,599 221 • 186,306 2«8 367,119 202 77 86 64 91 167 93 158 305 522 175 358 20 15 18 17 24 26 16 29 46 100 35 63 6 5 1 3 2 10 2 12 16 25 8 18 176 j 76, 553 5 7 |! 34,616 67 34, 320 44 | 41, 683 65 ! 43, 210 131 | 190, 480 75 40, 745 117 | 180,028 243 I 233,505 397 i 471, 380 132 67, 939 277 277,051 342 M.22 74 '26 ,7 13 5 255 I •• 219,300 63,686 ,'10,873 j'144,741 '91 ' r 64, 677 i '22,628 ! '7,998 ! •'34,051 v ii,452 ! *38 ; v 15, 936 i 1-4,484 i 1,769 3,336 62, 373 44, 884 17,493 35, 565 11,674 22,462 16, 618 60,610 171 21,726 21, 263 35, 742 88,191 163, 993 158, 242 1,688 11,972 6,770 16,340 14,569: 7,615 54,369 7,901 20,893 : 5, £22 108 23.313! ; 10,899 19,921 19,498 . 2,264 5,055 25,835 .' 12, 320 31,368 : 39, 434 119,678 ' 31,895 ' 7.045 i 1,805 31,629 ' 52, 660 95,739 i 79,446 30, 272 123,787 | 111,088 117, 259 2 4 3 , 0 3 3 •• 4,216 35,684 28,039 87,448 25, 768 163,835 | p Preliminary. 27, 418 9,117 23, 556 58,061 104, 243 1,856 3.333 3,381 15,893 401 23,816 17,466 13, 824 8,407 7,720 3,489 706 2,525 14, 4,258 4,105 9, 357 17,990 16 i 10,952 ' 40 | ' is, 893 18 i v 15,499 ' ltevised. Banks suspended and banks reopened.—The statistics of bank suspensions relate to banks closed to the public, on account of financial difficulties, by order of supervisory authorities or directors of the bank. Some banks reopen before the end of the calendar month in which they were closed; such banks are included, in the record of suspensions for the month as given in the table. Reopenings are recorded as of the month in which they occur, and include for any given month reoponings both of banks closed during the month and of banks closed earlier. Deposits.—Figures of deposits in banks suspended are as of date of suspension whenever data as of this date are available; otherwise they are as of the latest available call date prior to suspension. For banks reopened the figures of deposits are not as of date of reopening, which are seldom available, but are taken from the record of suspensions. Bad: figures.—See annual report for 1930 (Tables 66 and 67). MEMBER BANK HOLDINGS OF ELIGIBLE ASSETS [In millions of dollars] Holdings of Government securities * and eligible paper (including paper under rediscount) By reserve city banks Date ; U. S. ; Govern- , Eligible ; ment se- paper j curities | 2,730 2, 832 2, 577 2,469 2,403 2,619 2,640 2,682 2,777 3,584 3,871 3,942 3,706 2,349 2,582 2,688 2. 865 2,713 2,542 2,285 2, 271 2,100 2,045 1,870 1,787 1, 505 T t By " country " banks ! : U. S. j \ Govern- j Eligible ' j ment se- j paper i \ curities i 5,079 : 5,414 5,265 5,334 5,116 5,161 4,925 4,953 4,877 5,629 5,741 5,729 5,211 932 974 929 912 814 818 772 764 708 776 836 994 1,811 1,761 1,773 1,733 1,684 1.662 i 1,620 i 1,541 | 1,438 j 1,373 ; 1,328 I 1, 209 1,068 ! Txnut nu lu 2,744 2,735 2,702 2,645 2,498 2,480 2,392 2,305 2,146 2,149 2,164 2,203 2,056 By all member banks U. S. . I i Govern- ! Eligible ' ment se-'; paper j curities 3,662 : 3,807 | 3,506 ' 3,381 ! 3,217 i 3,438 I 3,412 i 3,446 ' 3,485 i 4,360 ! 4,707 ! 4,936 ! 4,694 : i Exclusive of approximately $650,000,000 of Government securities pledged against national bank note circulation. Back figures.—See BULLETIN for March, p. 156. 4,160 4,343 4,461 4, 598 4,397 4,204 3,905 3,812 3,538 3,418 3,198 2,996 2,573 Total 7,822 8,150 7,%8 7,979 7,614 7,642 7,317 7,258 7,023 7,778 7,905 7,932 7,267 Member bank borrowings at Federal reserve banks 1,041 9S1 1,029 899 646 206 274 173 248 165 147 323 238 FEDERAL RESERVE BULLETIN APRIL, 1923 FEDERAL RESERVE BANK RATES OPEN-MARKET RATES DISCOUNT RATES RATES IN NEW YORK CITY I ! [Rates on all classes and maturities of eligible paper] Rate in effect on Apr. 1 Federal reserve bank Boston New York Philadelphia Cleveland Richmond Atlanta Chicago. _ St. Louis Minneapolis Kansas City Dallas.... San Francisco Date established Oct. Feb. Oct. Oct. Jan. Nov. Oct. Oct. Sept. Oct. Jan. Oct. Previous rate 17,1931 26,1932 22,1931 24,1931 25,1932 14,1931 17,1931 22,1931 12,1930 23,1931 28,1932 21,1931 3H 3 3 4 3 Back figures.—See Annual Report for 1930 (Table 33). BUYING RATES ON ACCEPTANCES [Buying rates at the Federal Reserve Bank of New York] Maturity Previous rate Apr. 1 2Yz Mar. 25, 1932 2^: do 2\i do 2Yi do 2^j do 2Vi do 3 ; Feb. 26, 1932 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-GOdays... 91-120 days.. 121-180 days. 2H 2H m 2% 2% 2% NOTE.—Rates on prime bankers' acceptances. Higher rates may be charged for other classes of bills. Average rate Average yield on— on— Prevailing rate o n - i Call loans i ! u . S. Treasury notes Treasand ury Re- certifi- bonds' New ; newal cates, 3 to 6 months Prime Month or week i c o m . bank- Time mercial ers' loans, paper, accept90 4 to 6 ances, days a 90 months days ... (... 1931 January February March April May June. July August September October November December j 2^-3 | 2^-2%' ' 2)4 2Ji-2^| 2 -2\, ; 2 ! 2 | 2 I 2 |2 1932 January February March Week ending— Feb. 27 Mar. 5 Mar. 12 Mar. 19 Mar. 26 : i%-2?4 154-2 2 -2H \%-2\i 1^-2 1.50 1.50 1.56 1.57 1.45 1.50 1.50 1.50 1.50 2.10 2.50 2.73 1.57 1.50 1.55 1.52 1.45 1.50 1.50 1.50 1.50 2.10 2.50 2.70 1.24 1.06 «1.38 1.49 2.61 2H-3 3H-4 2%-2£ 3 ^ - 3 % 2.50 2H-2H 23/4-3^ 2.50 2.65 2.50 2.50 2.48 2.42 «2.25 2.50 2W ZH-ZH 2.50 2%, 3 -ZVi 2.50 3 -3H 2.50 2H' 8M-8 2.50 2.50 2.50 2.50 2.50 2.50 2.11 2.00 1.97 « 2.62 2.39 \\i-2 2H-4 3 -4 3 -4 3^-3%| 3^-3% | 3^-3% | .88 «.55 .41 .42 «.45 1.70 1.77 <2.41 1 J 3 Stock exchange call loans; new and renewal rates. Stock exchange 90-day time loans. 3 issues—ZU, 3U, 4 per cent; yields calculated on basis of last redemption dates—1947, 1956, and 1954. * Change of issues on which yield is computed. ' Revised. Back figures.—See Annual Report for 1930 (Tables 36 and 37). RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES [Weighted averages of prevailing ratesl New York City 8 other northern and eastern cities 27 southern and western cities Month January.. , February.. March April May June July August September OctoberNovember December. 1928 • 1929 1930 1931 5.74 5.73 5.81 5.85 5.88 5.93 5.88 6.05 6.06 6.08 5.86 5.74 5.64 5.35 5.22 4 91 4.74 4.59 4.48 4.41 4.29 4.26 4.17 4.16 4.24 4.31 4.20 4.17 4.11 4.13 4.05 3.97 3.93 4.27 4.67 4.64 4.56 4.44 4.59 , 4.72; 4.97 5.09 5.38 5.56 5.63 5.63 5.56 5.63 , : ; : 1932 4.71 4.71 4.72 1928 4.73 4.76 4.81 4.91 5.04 5.36 5.57 5.59 I 5.80 ! 5.80 ! 5.82 ! 5.91 929 1929 5.87 5.86 5.91 3.00 5.09 6.02 3.08 6.11 6.24 6.25 6.12 5.94 1930 5.88 5.66 5.47 5.22 5.13 5.06 4.81 4.79 4.74 4.75 4.66 4.68 1931 4.61 4.63 4.62 4.57 4.55 1932 ' 5.07 j 5.13 ! 5.14 ' :.. 4.49; 4.48 j 4.47 ' 4.48 4.62 4.87 4.91 1928 5.53 5.53 5.54 5.54 5. 56 5.67 5.77 5.80 ! 5.82 i 5.87 I 5.90 5.91 1929 5 94 , 5 96 6.04 6.07 ; 6.10 ! 6.16 : 6.17 I 6.22 6.27 j 6.29 i 6.29 j 6.20 | 1930 6.12 6.05 5.98 5.86 5.75 5.69 5.63 5.58 5.55 5.54 5.50 5.43 1931 ! 5.50 5.43 5.40 ! 5.36 I 5 26 I 5.34 5.30 ' 5.28 | 5.32 5.38 5.53 5.5G 1932 5.61 5.61 3.64 NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given in preceding table). All averages are based on rates reported for 3 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 3 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 in the city. Back figures.—See Annual Report for 1930 (Table 39). 239 FEDERAL RESERVE BULLETIN APRIL, 1932 SECURITY PRICES AND SECURITY ISSUES SECURITY PRICES [Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures] Common stocks (1926=100) ; Month or date p re- ! trial Number of issues 1931— Jnnuary. February March April May June July August September October November December. 60 20 OH. 6 123.6 «VJ. 4 124.8 100.0 126.4 ! 99.6 125.3 ! 90.7 122.6 | 09.4 119.7 j 90.4 121.1 i ; Ss.5 120.7 ; : 95.6 110.1 , i 89.4 . 109.4 | I 89.0 10S.5 ; 81.6 99.1 • 2 0 ]*)___ 23 30 road 421 i .._. 1932—January February March Mar. Mar. Mar. Mar. Mar. Selected'groups'of industrial issues i Bonds 1 forrcd2 • • stocks TicK.il, Public f l t ..i|Indus- Railiii y 112 i 120 I 122 j J00 ! J)S ; 95 98: 96 82 • 70 j 72 ' j 103 110 112 ioo i 89 : 87 , 00 i 89 : 76 ; 65 ! 68 ! 54 : . 81.0 j 80.3 ! 80.8 06.5 : 9(5. 3 : 90.2 ; 58 j 50 I 57 i 54 53 54 : 06.3! 97.6 i 06.0 ! 05.7 1M.3 CO ! 61 j 56: 55 53 56: 57 : SI.3 • 8:1 5 ! Si.8 80.3 77.3 ut 33 37 100 105 97 87 163 178 189 170 156 153 158 154 132 112 115 96 6(5 56 46 33: 37 .34 32 , 31 30 , 29 53 • 52 51 t Build-' • Cop- Elec- I A T o : ing : Chain | Chem-: per trical i cX-*" 1J 'uqu.il>-1 equip-i m n ," ' mobile equip-, store j ical i «and " inont I brass ment : y •• 94 93 90 100 12 : ! 105 103 85 ' 70 75 65 : 74 78 81 70 59 ; 58 i 60 58 47 38 | 30 : 31 78 ! S6 I 90 I 86 89 ! 89 ' 89 ! 02 | 80 : 70 60 57 173 148 127 128 131 127 110 90 06 79 64 60 55 31 30 29 • 57 : 56 : 58 I 80 79 85 36 32 30 GO 60 j SO 57 ' 57 : 50 82 ' S2 79 31 34 . 30 20 21 106 120 129 117 ; no I 101 • fil CO 53 • 80 87 50 49 , 31 29 28 O l U li 1 \ ^..i • bteel io ! io; 162 : 174 • ! ; j j ! i : 00 • 82 91 06 79 67 62 66 61 50 28 124 132 133 116 94 85 88 81 72 59 59 41 55 58 52 47 45 46 45 40 36 36 31 43 42 45_ 32 32 32 31 31 31 45 47 44 43 45 30 35 31 31 29 31 32 31 31 30 120 126 125 109 89 83 88 j 84 i 72 j 59 61 46 91 85 74 63 63 67 70 60 53 57 44 85 ': 77 77 48 47 47 82 7t> 74 71 49 ! 50 I 47 i 47 ; 44 176 194 201 " 172 159 : 157 : 161 I 155 ! 132 113 43 • 45 ; 114 94 , 35 Textile ! ! ; ' : j ! ! i 1 Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity. * 20 high-grade industrials; average price. CAPITAL ISSUES [Long-term; i. e., 1 year or more. UNITED STATES GOVERNMENT In millions of dollars] New issues Total (doYear and month mestic and foreign) State Forand eign mu- Bonds niciand Stocks: pal notes ; 4,427 4,006 ' 1,043 1,076 5,557 4,588 i 1,380 2,200 6,201 5,125 I 1,352 2,452 6,314 5, HO I 1,344 2,667 7.556 6,210 j 1,475 . 3,183 • 8,040 - 6,780 ! 1,370 2, 385 10.091 • 0,420 ". 1,418 . 2.07S : 6,900 6,004 :' 1.434 ' 2,080 1, 230 ' 3,083 2.854 ' 1,220 1923.1924 1025--.. 1926 1027 1928 1929 1030 103J 1931-February... March April May Juno Julv.. August September.. October November.. December.. 1932—January February... • ing Corporate TotaU 207 557 412 3-J8 259 202 ' 550 309 333 224 228 ! 120 241 i 44 Ill 119 226 120 217 44 109 J19 179 73 110 276 ioi 172 118 ' I : j oe; 74 111 15 52 40 133 34 179 73 48 250 166 132 100 113 34 04 14 26 28 42 35 659 829 1,153 1,087 1,474 2.061 5,924 1,503 311. 27 9 102 20 6 2 12 12 4 24 30 ' issues (domestic and foreign) 421 909 ! 1,076 1,125 ; 1,337 1,251 : 671 ! 905 220 759 025 1,046 2,220 1.858 1,422 711 040 5 7 43 15 35 2 0 24 0 2 0 IS 142 203 123 144 45 6 44 1 20 21 ; I 0 0 14 21 i Includes issues of Federal land banks and Federal intermediate credit banks, not shown separately. Sources.—For domestic issues: Commercial and Financial Chronicle; for foreign issues (issue? publicly offered) annual totals are as finally reported" by Department of Commerce, while monthly figures are as compiled currently and are subject to revision. 110331—32 6 Outstanding at end of month Refund- Domestic SECURITIES [In millions of dollars] Increase or decrease (—) during month Month ; Total ;| and JJ : II n o t c s i bills 1030 September October.... November December 15,824 15,927 15.933 i 15,744 Total (J2 m o n t h s ) . . . . ; . . 1931 January February March.:.... April May June July August September.__ October _ November December _ ~; \ 14,594 i1 1,319 j 14,573 1,406 i 13,838 2.442 I 13,567 2.801 ! 13,323 2,922 : 14, 152 . 2,368 >• 14,178! 2,344 16,585 : 14,179 : 2,406 2,068 2,047 2,085 2,436 17,048 ! 14,980 : 17,028 14,981 17,040 14,955 17,528 15,002 : January February ! i j ! i 139 66 301 88 -123 275 2 63 463 -20 12 488 J 1,754 | 17,515 : 15,102 : 17,820 • 15,102 -41 -1 -2 -255 I i -169 | Total (12 months). 1032 -109 103 i 6 ! -159 | 14,457 1,367 14,457 1,470 14,456 1,477 14,454 1,320 ;.. 15,P13 15,979 16,280 16,368 16,245 16,520 16,522 bills 2,413 ! - 1 3 2,718 ! 305 -f.8 103 7 -157 -86 139 : 87 -2i; - 7 3 5 | 1, 036 350 -271 : 121 -244 -554 820 24 26 ! 62 i ; 3 38 801 ; -21 i ! 38 -26 ; 351 137 ; 637 10 , 1,117 -23 305 NOTE.—Figures relate to interest-bearing public debt; matured noninterest-bearing debt amounted to $305,000,000 at the end of February, 1032. Figures include obligations held in Government trust funds amounting to $362,000,000 at the end of February, 1932. Bonds and notes long-term—i. e., 1 year or more (figuring from date of issue); certificates and bills, shorter term. 240 FEDERAL RESERVE BULLETIN APRIL, 1932 PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES [Index numbers; 1923-1925 average=100. The terms adjusted and unadjusted refer to adjustment for seasonal variation] Building contracts awarded (value)** Industrial production* Year and month Manufactures1 Total i Minerals * Residential Total Factory employment * Factory l pay Freight-car loadings* rolls « All other Cornmodity prices Unad- Ad- Unad- Ad- Unad- Ad- Unad-: Unad- Adjusted justed justed justed 1 justed justed justed justed justed Unad-| Ad- ' Unad- Ad- Unad- Ad- Unad- Adjusted ijusted ; justed justed justed justed justed listed (t) i 84 87 67 86 101 94 105 108 83 87 67 85 101 95 104 108 106 111 119 96 81 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 63 63 56 79 84 94 122 129 129 135 117 92 63 77 89 70 74 105 96 99 108 107 106 115 99 84 112 119 05 80 i 44 30 44 68 81 95 124 121 117 126 87 50 37 107 108 82 00 104 06 100 101 09 07 101 88 74 79 90 65 88 86 94 120 135 139 142 142 125 84 98 118 77 81 103 96 101 104 102 102 108 87 66 139 154 98 97 101 98 104 100 95 97 95 86 73 84 • 91 79 : 87 ! 100 97 • 103 106 103 103 100 02 75 1927 December 1928 January.. FebruaryMarch April May June July August. -_ September October.. November December 1929 January.. FebruaryMarch April May June July ... August— September October __ November December 1930 January. _ FebruaryMarch April May June July August September October __ November December 1931 January.. FebruaryMarch April May June July August... September October.. November December 1932 January.. February- 96 105 111 112 110 110 108 105 110 116 118 115 109 102 95 102 97 102 111 131 111 125 111 136 95 97 99 88 98 96 106 107 108 1 113 114 108 108 ; 113 111 108 109 108 105 109 110 ; 110 1 116 113 117 115 • 117 115 110 118 107 110 109 109 108 109 110 111 114 116 118 120 100 99 98 95 104 104 104 111 115 123 118 106 103 102 105 105 106 102 102 105 107 111 114 111 111 121 138 155 159 154 142 137 138 134 122 107 137 138 137 116 128 143 149 140 127 116 118 115 112 03 139 142 136 130 130 133 126 119 118 115 114 106 108 115 134 157 168 166 155 154 154 150 130 117 135 135 137 142 143 144 137 141 147 152 146 145 94 06 07 96 96 06 06 98 100 100 09 98 96 96 06 06 96 97 97 97 98 98 00 100 96 101 103 100 101 101 08 103 104 107 104 104 92 94 97 96 105 101 105 109 119 119 109 94 102 102 103 101 103 100 102 103 105 106 i 107 106 96 96 96 97 98 97 97 98 99 117 122 126 128 120 119 120 122 123 127 114 116 116 119 109 114 117 114 98 102 121 139 143 120 81 84 118 ! 121 ! 106 123 I 1 1 7 121 113 102 126 124 94 122 84 110 73 107 67 97 94 101 100 97 95 03 86 73 67 111 116 133 158 168 178 170 166 144 139 137 137 142 141 152 149 152 97 100 101 100 100 101 102 102 103 103 103 102 101 101 108 111 111 111 110 106 111 112 111 95 99 98 102 109 110 111 115 121 118 108 : 107 i 105 \ 108 107 ; 108 1 107 107 i 106 : 104 i 96 99 95 99 103 97 99 102 89 102 102 : 94 93 96 94 03 02 94 98 98 97 94 91 83 82 83 81 75 74 89 91 00 93 07 95 95 96 99 97 86 74 100 99 96 93 91 90 Q0 89 74 74 75 77 79 77 78 76 69 68 73 75 74 72 68 64 64 62 ; 59 56 56 68 68 52 54 117 121 124 124 126 125 120 122 123 121 119 119 119 121 122 125 124 121 121 118 108 96 103 : 103 109 106 107 105 99 91 90 92 90 84 77 106 107 104 iO4 102 98 93 90 90 88 86 84 82 87 89 90 89 83 80 78 77 75 r 73 '68 83 86 87 88 87 83 82 78 76 73 73 74 71 72 »69 p'/l 128 110 • 127 120 122 123 119 107 125 122 121 93 101 114 110 102 110 109 110 105 107 104 104 101 97 92 89 89 86 85 82 108 104 91 94 102 103 100 101 101 105 90 89 106 98 89 88 90 87 : 82 74 : 81 88 90 91 90 ; 101 103 116 116 118 121 119 110 82 S6 87 87 86 82 82 78 75 71 71 127 127 86 . 84 79 77 76 72 p 71 66 •"73 82 83 84 85 85 82 82 92 84 80 70 *70 71 "68 * 75 82 74 116 115 118 116 110 116 110 108 98 104 104 102 100 96 94 05 92 93 88 86 89 i 91 i 87 86 86 i 79 : 77 84 81 85 77 P78 137 ; 137 , 130 132 131 134 136 132 127 144 136 129 112 104 94 84 78 89 102 113 125 116 107 85 82 75 68 59 58 68 77 82 78 74 68 *152 67 61 56 49 52 53 52 40 104 126 141 156 178 166 47 40 52 52 48 43 128 148 144 140 148 140 135 115 , 108 ; 94 ! 86 106 105 09 76 73 46 44 54 62 61 54 48 48 52 51 46 37 00 93 03 03 03 91 80 86 85 86 84 81 77 08 79 71 79 77 73 65 37 42 50 52 47 44 47 47 44 40 37 103 102 06 95 104 102 101 105 00 95 81 81 78 6b i 61 I 59 i 59 53 41 36 j 32 35 55 49 38 32 29 26 20 33 32 30 27 23 25 23 31 27 16 15 19 17 i 104 105 103 1 13/i 116 109 59 52 43 30 63 140 139 132 136 102 102 102 ]02 75 93 : 89 104 98 100 107 ! 06 104 85 ! 101 84 : 04 : 82 87 ; 81 81 80 71 76 57 67 39 50 33 30 41 35 76 ! 1 j 1 91 90 87 84 83 82 i 81 80 : 77 78 78 77 75 74 I 74 i 75 i 71 69 68 : | 66 I 67 j 78 78 78 78 78 76 75 74 73 70 69 97 1 96 ! 93 92 89 ! 87 86 84 84 95 96 96 95 95 97 96 96 95 87 84 84 84 83 81 80 78 77 76 75 73 72 72 72 78 70 61 82 80 80 80 79 77 76 72 69 : 69 68 69 58 59 fi4 62 ! 67 78 i As revised in March, 1932; for back figures see BULLETIN for March, p. 104. For indexes of groups and separate industries see p. 281. For indexes of groups and separate industries see p. 282. •Average per working-day. **3-month moving average, centered at second month; see BULLETIN for July, 1931, p. 358. tRevised index of Bureau of Labor Statistics (784 price series); 1926 = 100. Index numbers for groups of commodities are given on page 283. r » Preliminary. Revised. « Corrected. J 97 96 96 71 70 70 69 66 APRIL, 241 FEDERAL RESERVE BULLETIN 1932 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports Merchandise imports Excess of exports Month 1928 January February. . March April May June. July.. August SeptemberOctober November-. December.. Year. 1929 1930 411 371 421 304 423 389 379 379 422 550 545 476 488 442 490 425 385 393 403 381 437 529 442 427 5,128 5,241 1931 411 349 j 370 332 320 295 267 298 312 327 289 ' 275 3,843 250 224 236 215 204 187 181 165 180 205 194 184 : 1932 , 1928 150 1 v 155 ! ._ . : _-_ : ._ • 2,424 1930 1929 338 351 380 345 354 317 318 347 320 355 327 339 309 309 384 411 400 353 353 309 351 391 338 310 311 282 300 308 285 250 221 218 226 247 204 209 4,091 4,399 3,061 1931 183 175 210 186 180 373 174 167 170 169 149 153 2,090 - . 1932 • 1928 136 *13L ! ! ! ! : ! : ! . . 1930 1929 1931 1932 73 20 40 19 69 71 61 32 102 195 218 136 119 72 106 15 15 40 50 11 86 137 104 117 100 67 gq 24 35 44 46 79 86 80 85 66 66 49 26 29 24 14 6 -2 10 36 44 31 1.037 842 782 334 14 P24 i Preliminary. DEPARTMENT STORES—SALES, STOCKS FREIGHT-CAR LOADINGS, BY CLASSES [1923-1925 average=100. For back figures see BULLETIN for November, 1930, p. 686] [Index numbers; i 1923-1925 average=100. Source of basic data: American Railway Association] Index of stocks (end of month) Index of sales 1 i October Adji isted Adji istcd Wit hout Wit bout for sejisonal seasor alad- for se*isonal seasoi lal advarii ation justi nent vari*ition justr nent Month 1932 1931 1932 97 '78 98 78 97 100 • 97 95 91 88 79 80 92 101 97 90 65 67 87 93 95 142 64 04 January February March. April May June July.. August September October . November December. Year _ DO OO 1931 83 :.._ 81 _. 91 ! 1931 8S 86 84 83 83 82 81 79 81 80 79 78 ! 1932 1931 75 73 78 81 87 87 85 1932 67 69 80 1 75 76 84 88 89 73 82 1 Based throughout on figures of daily average sales—with allowance for changes from month to month in number of Saturdays and for 6 national holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas. Adjustment for seasonal variation makes allowance in March and April for the effects upon sales of changes in the date of Easter. r Revised. 1932 1931 ber r December Janu- February ary Adjusted for seasonal variation Total... ! Coal _ I Coke i Grain and grain prod- • ucts .! Livestock.. j Forest products ; Ore Miscellaneous i Merchandise2 —| | Total I Coal _ i Coke | Grain and grain prod- I ucts i Livestock | Forest products ! Ore ; Miscellaneous _| Merchandise1 _.j 69 72 44 68 65 44 69 i 65 i 47 | 62 61 45 74 64 33 36 69 83 76 69 \ 33 I 23 72 83 63 66 30 40 78 60 27 29 62 78 78 ! 83 I 45 : . 82 j 86 i 33 50 81 87 70 72 | 46 • • 80 • 80 : 31 ! 16 i 70 85 ; i Based throughout on daily average loadings. I n less-than-carload lots. J 31 Without seasonal adjustment 61 70 50 58 66 47 66 52 62 CO 25 10 57 77 66 65 25 7 54 75 74 57 27 7 53 75 242 FEDERAL RESERVE BULLETIN APRIL, 1932 FOREIGN BANKING AND BUSINESS CONDITIONS ANNUAL REPORT OF THE NATIONAL BANK OF BELGIUM The annual report of the National Bank of Belgium for 1931 was presented to the general meeting of shareholders on February 29, 1932. Sections of the report are given herewith:1 Gold policy.—The suspension of convertibility of the pound sterling demonstrates that the gold policy followed by the National Bank of Belgium during recent years has been in the best interests of this country. On September 22, 1931, the bank, utilizing the rights of conversion which it had maintained in respect to its accounts with foreign correspondents, increased the gold reserve from 8,129,000,000 to 12,460,504,000 francs, and thus built up for the note circulation a reserve consisting exclusively of gold and of so large a volume that, even in the midst of the present difficulties, the belga is one of the most adequately secured currencies in the world. In addition to the foreign exchange converted into gold, the central bank continued to hold balances in the London market, amounting to £12,643,079. In view of the part which English currency plays in international trade, and especially in our export business, this amount is by no means excessive. Our procedure in this matter has been based on the convention of October 18, 1926, which allocated to Government account such profits as might accrue from the investment abroad of foreign currencies arising from the stabilization loan and entering into our reserves. Moreover, inspired by a justifiable sense of international monetary solidarity and acting in complete accord with the Minister of Finance, we have avoided any measure which might react unfavorably on the position of the London market. On the day following the British currency crisis, the sterling balances wTcre made the subject of a convention with the Government, under date of September 23, 1931. By virtue of this convention and in accord with existing agreements, the bank kept its sterling balances, in its accounts, at the purchase price, while the Government gave security for the loss on exchange—this security to be amortized out of 1 The report, available in French, contains in addition tables showing the operations of the bank in detail and sections dealing with the general situation, currency and exchange, Government debt, security market, industry, commerce, and agriculture, unemployment, etc. For earlier reports see BULLETIN for April, 1931; May, 1930; April, 1929, 1928, 1927, etc. the income from the sterling balances. The Government recently introduced a bill approving a new convention which included the adoption of measures providing, on the one hand, for the cover of the loss on exchange by shortterm Government securities,2 and authorizing, on the other hand, the more profitable investment of the sterling balances.3 The bank has agreed to contribute to the amortization of the exchange loss an amount of 60,000,000 francs, to be paid in successive annual installments of at least 10,000,000 francs, beginning with 1933. The provisions thus made give complete assurance, in spite of serious and unexpected events, of the soundness of the assets guaranteeing our currency. Discount policy.—The credit policy of the bank, in the present situation, was governed by a determination to maintain the liquidity of the institution, in order that it might continue able to meet with ease the special needs of a period of intense crisis, as well as the transfer of funds which will become necessary whenever the solution of international difficulties revives the investment of capital abroad. In the existing situation nothing could be more dangerous than a policy—such as is often recommended—of systematically granting credits in proportion to the increase of frozen assets. Excessive and ill-considered manipulation of credit distorts the banking mechanism and, instead of mitigating crises, aggravates and prolongs them. Throughout the past year the bank maintained its discount rate at the very low level of 2}i per cent, which had been established on August 1, 1930. In spite of the facilities thus put at the disposal of business, the bill portfolio declined gradually during the first half of the year, owing to business recession; but shortly afterwards the financial crisis, which broke out first in Germany and then in England, brought about a reverse movement, increasing the volume of rediscounts. This development led the bank to follow the example of most other banks of issue and to raise its discount rate (on January 13, 1932) to Z% per cent. J The proposed term of these securities is 6 months, subject to renewal. * It is proposed that sterling balances equivalent to not more than 550,000,000 Belgian francs may be invested in obligations of the Belgian Government issued in foreign currencies previous to Jan. 1, 1930. 243 FEDERAL RESERVE BULLETIN APRIL, 1932 BALANCE SHEET OF THE NATIONAL BANK OP BELGIUM AS OF DECEMBER 25, 1931 i » j : Francs (in , "Dollars thoui thousands) • (in sands) i Resources Gold reserve ___ 12,751,477 i Subsidiary coin . 201,008 . Belgian and foreign bills ' 4,558,303 ; Advances on Belgian public securities __•. 297,7485' Belgian treasury bills and other public securities i (royal decree of Oct. 25, 192G) _ ; 1,440,000* Public securities _ . 198,645^. Public securities in the surplus account of the ! bank _ _ i 85,607 i Public securities in amortization account of real ; VJ estate in use, furniture, and fixtures i 59,684 Insurance-fund assets _ i 99,863 Bills deposited for collection in current account.. 84.190 Real estate in use . 95,402$ Furniture and fixtures • 4,700 Provision for the manufacture of bank notes, and :: labor involved __ 2,582 Interest earned or receivable.. 6,693 Assets held in pledge or to be liquidated (art. 34 . of the statutes) ' 2,826 Total resources.. 1 _ ' 19, Conversion at par of exchange: 1 franc=$0.0278. ! Liabilities 354,491 Bank notes: Issued 5,588 ; A,. Held by the bank _ 126,723 8,277 In circulation 40,032 j 5,522 Current accounts: Treasury | :' Individual..-. . 2,380 ,! j 1,659 | 2,776 j 2,340 : Bills deposited for collection in current account. _. _ 2,655 I Capital.._ _ 131 I Surplus | Amortization account of real estate in use, furniture, and fixtures _ 72 i 186 Insurance fund.. __ i Interest and rediscount 79 ! Taxes payable to the Government: Tax on fiduciary circulation Share of the Government in profits on foreign exchange _._ Share of the Government in profits (art. 38 of the statutes) Unpaid dividend for second half year of 1931 552,912 Total liabilities.. i Francs (in Dollars thouthousands) (in sands) 19,455,757 1,440,402 540,870 40,043 18,015,354 500, 827 103,956 1,189,934 2,890 33,080 1,293.890 35,970 84,190 200, 000 87,674 2,340 5,560 2,437 59,702 100,066 | 1, 660 2,782 6,127 10,421 | 8,431 I 10, 231 12,821 19,888,907 170 290 234 356 552,912 244 FEDERAL RESERVE BULLETIN APRIL, 1932 ANNUAL REPORT OF THE GERMAN REICHSBANK The annual report of the German Reichsbank for 1931 was presented to the general meeting of shareholders on March 16, 1932. The main text of the report is given herewith:1 The world is in the midst of an unparalleled crisis. The severe economic depression which has prevailed for some years in almost all countries was aggravated during the past year by a devastating breakdown of confidence; this upset credit relations both national and international and set back the process of reconstruction. Currencies recently reestablished on a gold basis with great difficulty have again become inconvertible; international trade has been thrown into confusion and greatly purtailed by the further raising of tariff barriers, by the rationing of imports, and by measures of foreign-exchange control. The continuing decline of prices and further growth of unemployment have interacted to increase the gravity of the situation. In the face of a great world surplus of commodities and productive power, consumption declines further and further. No country in the world seems to have been left untouched by the prevailing distress. The nations are becoming impoverished, and are sweeping together toward ruin. Governments have been unable as yet to halt the disastrous course of these consequences of the World War, though the action taken by the President of the United States showed a disposition to be of international service, and knowledge of the true causes of the international economic crisis is coining to be more widely diffused. In particular, the two committees of experts which met in August and December at Basel to examine the situation of Germany, and the "standstill" committee which met in Berlin toward the end of the year, have explained these causes to the world fully and clearly. They are to be found chiefly in the complicated mass of political debts, which tower up in direct opposition to the natural laws of international trade, bringing in the long run more detriment than benefit even to the creditors themselves. These debts, 13 years after the close of the war, still stand in the way of any normal functioning of world trade and any genuine state of peace and confidence. In the system of war debts the reparation burden imposed upon Germany has a very special significance. The Dawes experts stated as early as 1924 that Germany could pay repa* The report, available in German, contains in addition tables and charts showing the operations of the bank in detail. For earlier reports see BULLETIN for August, 1931; May, 1930; March, 1929; May, 1928, 1927, etc. rations only out of a surplus arising from a favorable balance of trade and of payments, and that reparation transfers effected by means of foreign loans and credits would merely confuse and postpone the issue. Notwithstanding this fact, however, Germany reparations in the following period were effected out of loans and credits, because Germany had not achieved and could not achieve an economic surplus. This became quite evident when foreign loans and credits to Germany were to be suspended as a result of the world crisis. Leading German authorities have called attention repeatedly to the economic insanity and general futility of the reparations system, especially in view of the fact that the sharp decline of world prices has increased the burden of Germany—contrary to the intentions of the Young plan—by not less than one-third. In the meantime the granting of credit to Germany, which in spite of all the warnings of the Reichsbank had been most extravagant, was succeeded by withdrawals, and the reason for this was not only the need of foreign countries for their capital, together with a fear of radicalism in Germany as a result of increasing distress, but also and in particular a growing realization that Germany, under the continued pressure of reparation burdens, was being driven into bankruptcy. Events at the time when the Hoover moratorium was accepted, the German banking crisis, the "standstill" negotiations, and the findings of the Basel experts strengthened this realization. The decisive point has now been reached. The system of reparations and other political debts has finally proved futile in view of the international interdependence that characterizes modern economic relations. There is no other solution except to renounce at once de jure this system which is de jacto dead. Only thus can the world be saved from new economic and social disasters whose consequences no one can forsee, but which might well surpass all the damages of the World War. The experts' committees have agreed unanimously that a final political settlement on these matters is of immediate and vital importance for all countries. Only such a settlement can reestablish confidence at home and abroad in German economy and in German politics—the first essential of recovery from the present industrial and financial crisis. The frank admission by responsible statesmen that they are willing to accept the practical conclusions of the experts' recommendations is therefore not only good political strategy but also inescapable economic necessity. APRIL, 1932 FEDERAL RESERVE BULLETIN Development of the crisis.—The credit situation in Germany during 1931 was largely dominated by loss of confidence. Ever since the autumn of 1930 the German money market, owing to political factors at home and abroad, has been depressed by withdrawal of foreign credits. The failure in May of the largest Austrian bank led to greatly increased withdrawals which, aggravated still further by other developments, gave rise within a few weeks to the worst crisis ever experienced. Withdrawals by foreign creditors assumed the proportions of a run on Germany, which spread throughout the country and in July led to a complete suspension of credit and clearing transactions. The Reichsbank was confronted with a twofold duty—to maintain currency stability and protect the liquidity of the German banking system. To this end the Reichsbank had to be prepared to grant credits on a large scale, as well as to part with gold and foreign exchange. The Reichsbank performed both duties until it became evident that the claims of foreign creditors could not be checked, and that continued demands on the German banks would exhaust the resources of the banks and in addition the supporting resources of the Reichsbank as well. The assistance of the Reichsbank was limited by the fact that the methods of fighting a run through readiness on the part of the central bank to extend credit and deliver currency are not applicable in unlimited degree to a run originating abroad, because the central bank can not use its notes for foreign payments but must deliver gold and foreign exchange. It became especially clear that—as a result of the large short-term foreign indebtedness of Germany, which the Reichsbank had opposed without much success since 1925—the gold and foreign exchange holdings of the Reichsbank, even when they were at their maximum, were in fact only nominal, and failed to reflect the German exchange position. But the steadily growing domestic run—owing to its close connection with the foreign run on one hand, and on the other, to the flight of capital reported from abroad—could not be isolated and stopped by further deliveries on the part of the Reichsbank. Thus the bank was forced to defend its position by applying credit restrictions in increasing degree. The restrictive measures were closely bound up with the attempt made by the Reichsbank, in the hope of preventing bank suspensions, to obtain some sort of "standstill" agreement. The Reichsbank received support from a wide circle of the business community, in 245 a letter under date of July 7 from industrial firms and banks to the president of the Reichsbank, offering to create a guarantee fund with the Gold Discount Bank. This expedient did not, however, obviate the necessity of credit restrictions as well, for every discussion with foreign central banks regarding a "standstill" agreement proceeded on the assumption that the Reichsbank would first defend its own position by accepted methods. After the meeting of the directors of the Bank for International Settlements on July 13, it was evident that adequate assistance was not available from the bank, and the closing of the German banks on that same day was imperative owing to increasing panic in Germany. Nothing less than actually closing the banks could have created a situation in which payments could be resumed with considerably less risk than before, by effecting a distinction between payments at home and payments abroad through legal exchange regulations and temporary "standstill" agreements. At the same time, the establishment of the Acceptance and. Guaranty Bank strengthened the liquid position of German credit institutions to such an extent that deliveries of currency and withdrawals of deposits—greatly augmented as a result of the widespread lack of confidence— could be effected without embarrassment. Within these newly established limits something like normal credit and payment operations were possible. The Reichsbank then decided, after the period of greatest danger was past, not to increase the discount rate automatically as provided for in the bank law whenever the reserves fall below the legal minimum; rather, it extended its credits not only in adequate measure but also as cheaply as circumstances permitted. The credit crisis itself, conditioned by international causes, and the consequent severe business depression, were beyond the power of the Reichsbank to remedy. An important contribution to restoration of confidence within the country was the fact that the Reichsbank, in complete accord with the Government of the Reich, refrained strictly from experimenting with the currency. In future, as in the past, the bank will consider it its highest duty to insure the stability of the reichsmark by the use of all available means. Banking and credit measures.—Even before the crisis the situation of the German money and credit market had been unsatisfactory, because the increasing stringency in foreign markets that began in the autumn of 1930 246 FEDERAL RESERVE BULLETIN prevented the improvement which might otherwise have taken place at the beginning of the year. With demands on the Reichsbank increasing over the previous year in spite of the decline in the volume of business, and with the state of the exchanges uncertain, it was impossible for the Reichsbank—in contrast to many foreign central banks—to make even a temporary reduction in its discount rate. It was only by the sternest self-denial on the part of communal and other public bodies that the market for mortgage bonds—and, to a lesser extent, that for municipal obligations—was supported; and then only temporarily, for the increasing withdrawal of foreign funds soon put an end to all prospects of improvement. Within a few weeks' time the steadily growing severity of the financial crisis destroyed all German credit operations with foreign countries and seriously injured banking and credit operations within the country. Interest rates rose rapidly. The money market was unable to function and the Reichsbank became the only source of credit. The large withdrawals of foreign exchange in the first half of June compelled the bank on June 13 to raise its discount rate by an extraordinary amount—from 5 to 7 per cent. The action of the President of the United States of America caused short-lived hopes which were frustrated by opposition to the immediate and complete operation of the plan. Distrust, both at home and abroad, continued to grow. In spite of some credit assistance from abroad, the note reserve fell below the legal minimum. To protect its rapidly diminishing gold and foreign exchange reserve the Reichsbank, in view of the isolated position of Germany, was forced to put into effect the severe measures of credit restriction previously prepared. The closing of the D arms tad ter und Nationalbank on July 13, and the declaration of a bank holiday on July 14 and 15 for the protection of the other banks, caused an almost complete suspension of payments both within the country and to foreign countries. Reichsbank policy had to deal with new and extraordinary probiems. After the Reich had come to the aid of the two most seriously endangered institutions—of the Darmstadter und Nationalbank by announcing, while the bank was still closed, that the Reich would undertake to guaranty its liabilities, and of the Dresdner Bank through a large-scale capital participation—the Reichsbank was able to maintain the stability of the reichsmark. By its readiness to grant credit to an unprecedented extent, it quickly restored APRIL, 1932 the free flow of payments within Germany. It was necessary first to introduce compulsory sales of foreign exchange, and then to relax the previous measures of credit restriction, a step which could be safely taken only after further increasing the cost of credit. The discount rate was raised to 10 per cent on July 16 and, with the complete abolition of restrictions on the withdrawal of bank deposits, to 15 per cent on August 1. The lombard rate, as a result of the undesirable increase of lombard accounts, was raised by two stages up to 20 per cent. In order to preserve a certain flexibility in the credit measures of the Reichsbank, customers' acceptances, made eligible for discount during the emergency, and offered in substantial volume by the commercial banks after their regular stock of bills had been exhausted, were temporarily discounted on a 10-day basis. By this means the heavy burden on business of interest payments arising out of emergency discounting was limited to a short period. Within a month the careful preparations made for restoring normal payment operations enabled the Reichsbank to lower the bank rate by stages to 8 per cent and the lombard rate to 10 per cent. The disturbances in the German credit structure had further effects abroad, and led to a series of discount advances in other countries which narrowed the margin between German and foreign rates. Nevertheless the Reichsbank, in connection with the anticipated measures of the Government for reduction of prices, wages, and interest rates by emergency decree of December 8, favored a reduction of the bank rate in spite of the seriousness of the exchange situation, the greatly reduced ability of the money market to function, and the strong demand for central bank credit. On December 10 the discount rate was reduced to 7 per cent and the lombard rate to 8 per cent, as a measure of cooperation on the part of the financial agencies in the reduction of the cost of business operation. Developments in the first months of the new year have justified this policy. The checking of the run and, later, the resumption of payments, compelled the Reichsbank to grant exceptionally large credits. Business was assisted by the increased circulation, which expanded by about [2,000,000 reichsmarks—an emergency measure supported by the Reichsbank. The portfolio of domestic bills, which at the end of May had amounted to 1,500,000,000 reichsmarks, increased ^rapidly and at the close of the year stood at 4,500,000,000 reichsmarks, including amounts specially APRIL, 1932 FEDERAL RESERVE BULLETIN allocated to cover the central bank credit of $100,000,000 mentioned elsewhere. This increased offer of bills was due chiefly to the financing of the demands made on the Reichsbank for foreign exchange as a result of the withdrawal of foreign funds. The struggle against the abnormal demands for payment necessitated further assistance for the commercial banks including temporary mobilization of frozen commercial credits. The Acceptance and Guaranty Bank, founded by a banking consortium with cooperation of the Reichsbank and official participation by the Reich, was entrusted with the task of providing support for endangered credit institutions, and of maintaining or securing for them a credit status with the Reichsbank, by jointly assuming their bill liabilities. It was especially important for the Acceptance and Guaranty Bank to assist savings banks and clearing houses, which had become heavily involved as a result of the crisis, to remain solvent and to function as provided by law. Through restoration of solvency to the savings banks, their depositors were gradually reassured, and withdrawals caused by unfounded distrust were presently checked and finally brought to an end. A series of further remedial measures was intended to mitigate the severity of the crisis in special cases. One of these measures was promotion of German export trade. The seri ous situation of German agriculture also required the provision of credits for crop financing; these were provided in part on the basis of warehouse receipts. In spite of serious protests, in which the Reichsbank joined, a special guaranty system for agriculturists in the eastern districts, amounting almost *to a moratorium, was established, and resulted in a heavy demand on the Reichsbank for agricultural credit. So far as possible the Reichsbank tried to prevent any damage to credit. In many other cases also the Reichsbank had to render assistance. In order gradually to create facilities for future relief, the restoration of the private discount market was initiated by the foundation in December—with substantial participation by the Gold Discount Bank—of the Joint Stock Discount Co. In the emergency decree of October the Reichsbank was appointed joint administrator of the liquid reserves of the Organization of Savings Banks. The provisions of this decree are now being carried out. Bills of the savings banks discounted by the Reichsbank during the critical period of 1931 have been repurchased in fair volume since the turn of the year. 247 Gold and foreign exchange.—As already stated, the Reichsbank resolutely applied its gold and foreign exchange reserve to maintaining the solvency of German banks which were hard hit by the withdrawal of funds by foreign holders. At the end of the half year it availed itself of the opportunity presented to obtain credit assistance from abroad. The credit placed at its disposal jointly by the Bank of England, the Federal Reserve Bank of New York, the Bank of France, and the Bank for International Settlements amounted to $100,000,000. It was first granted for only 20 days for quarterly settlement purposes. Later there were several extensions, the most recent being that of March 4, 1932, for a period of three months with a capital amortization of 10 per cent. Because of the continued withdrawal of foreign balances, and, in addition, a flight of domestic capital—probably greatly overestimated at the time—this credit brought the Reichsbank only temporary relief. In order to procure further amounts of foreign exchange, it had to draw upon an American contingent credit of $50,000,000 which had been available to the Gold Discount Bank for a number of years. Nevertheless the decline of the reserve ratio below 40 per cent—to which the general council of the Reichsbank first gave its consent on July 7—could no longer be averted. From the end of May to the middle of July the Reichsbank paid out gold and foreign exchange to the amount of almost 2,000,000,000 reichsmarks, while sales of gold during this period aggregated more than 1,000,000,000 reichsmarks. Nearly half this gold was lost to New York, almost one-fourth to London and Paris, and smaller sums to Amsterdam and Switzerland. Exchange control.—The threatened exhaustion of available foreign exchange reserves compelled the establishment of a decisive control in order to confine the use of exchange to legitimate commercial transactions, while refusing unnecessary or postponable payments. In the emergency decree of July 15, the Govern! ment of the Reich ordered the centralization ! of all exchange transactions in the Reichsbank; and on July 18 it required the delivery to the j Reichsbank of foreign currencies and of claims in foreign currencies. The emergency decree of August 1 made the previous regulations more severe and transferred the technical management of exchange operations to special "offices of foreign exchange control" in connection with the provincial revenue offices. Negotiations with foreign creditors were begun, looking to the continuation of the 248 FEDERAL RESERVE BULLETIN APRIL, 1932 existing short-term foreign credits. These retained for five years; and stipulates that measures enabled the Reichsbank to acquire repayments of principal in foreign currencies more foreign exchange, which, however, soon shall be effected only by mutual agreement had to be paid out again. The "standstill" between the Reichsbank and a committee of agreement between German and foreign banks, the foreign creditor banks which is to meet which became effective on September 17, periodically. A "committee on foreign debts" imposed heavy burdens on account of the was appointed by decree of January 26, 1932, release, in instalments, of the reichsmark to advise on all German payments abroad on credits of foreign banks. In this release account of interest or amortization, both was included the liquidation of pending for- within and without the credit agreement. ward exchange contracts. It was necessary Capital market.—There has been almost also to repay maturing seasonal and stock no activity in the capita) market, especially exchange credits. On the other hand, notwith- since the middle of the year, as a result of the standing the efforts of the Reichsbank, full use serious maladjustment between supply and of the credit lines held open under the agree- demand and the sharp decline in quotations of ment could not be achieved because of ex- every type of security. On July 13 the Gercessive interest rates, the exchange risks at- man stock exchanges were closed. They were taching to various foreign currencies, and other reopened in September for a short interval; obstacles. Moreover, the contraction in the but the increasingly heavy selling pressure volume of foreign credits continued, so that by for both foreign and domestic account, inthe end of the year the Reichsbank had lost a duced by fear and necessity, led to a second further 600,000,000 reichsmarks in gold and closing of the exchanges on September 21 foreign exchange. following the suspension of the gold standard Under these circumstances it was necessary by the Bank of England. Official stock exto continue to make foreign-exchange regula- change dealings have not yet been resumed, tions more severe. Beginning early in October and the publication of unofficial security quothe Reichsbank found it necessary to impose tations is still forbidden under the decree of various credit restrictions upon firms which July 15. In order to prevent the balance of disregarded the foreign-exchange regulations. payments from being burdened through the sale The emergency decree of November 17 made of German securities by foreigners, it was made possible a more complete control of foreign- obligatory under the decree of November 10 to exchange receipts from exports. Statistics com- obtain official sanction to convert the proceeds piled by the Reichsbank showed that foreign of the sale of securities into foreign exchange. exchange arising from German export trade is, The German Railways A){ per cent loan, for the most part, acquired by the bank. In j issued at par in October in the domestic capital spite of this, the Reichsbank's stock of foreign ! market under most unfavorable conditions, is exchange declined steadily owing largely to ! tax exempt and grants amnesty for past tax capital withdrawals by foreign countries, which | evasions. It should, even with its relatively amounted to about 1,000,000,000 reichsmarks low interest rate, offer an inducement to those in the period from September 1 to December 1. who sent their funds abroad to repatriate them The serious foreign-exchange situation made for the purpose of creating work at home in this it impossible for the Reichsbank to comply time of need. The loan, of which about 250,with the wishes of business groups for the 000,000 gold marks has been subscribed, placed introduction of a regular forward exchange little immediate pressure on the German marmarket; but the bank offered to arrange direct ket, since the first installment of the subscripforward exchange contracts between trading tion price was not due until January, 1932. and industrial concerns without charge. Bank supervision.—To cope with the crisis The "German Credit Agreement of 1932," in the German credit situation an official superwhich was signed on January 23, 1932, and vision of banks, similar to that in other counbecame effective on March 1, contains certain tries, was established by the decree of Septemprovisions for consolidating the German short- ber 19. AVhile preserving in principle the term foreign debt. It arranges for a year's complete private responsibility of the banks for extension of foreign credits amounting to more their management, this decree makes it the than 5,000,000,000 reichsmarks; provides for duty of the newly established banking board, a limited conversion of obligations maturing of which the commissioner of the Reich is a within that period into 10-year, 6 per cent member, to supervise general banking policy bonds, or into German securities, mortgages, or from the standpoint of public interest and under real estate in the form of investments to be certain circumstances to exert an influence on APRIL, 1932 FEDEKAL .RESERVE BULLETIN general policy—within the limits prescribed by law and in accord with the regulations adopted by the board. The Rcichsbank is represented among the five members of the board by the president of the Reichsbank, as chairman, and by one other member, the vice president of the Reichsbank's board of directors, who was appointed by the chairman. Bank reorganization.—After the beginning of the banking crisis the restoration of the complete operation of the German banking system was one of the most immediate duties of the responsible authorities. Thanks to the good sense of the population, the resumption of banking activities was accomplished with surprising case, yet it became increasingly evident that a new and secure basis of confidence must be created through application of very exceptional measures. To this end a plan of general banking reorganization was drawn up by the Government and the Reichsbank, and made effective in February, 1932. The plan provided for a comprehensive reform which was designed to restore liquidity by writing off losses, and also to indicate plainly in the balance sheet the amount of the losses. This necessitated not only a final settlement of the affairs of the Darmstadter und Nationalbank and of the Dresdrier Bank, but also a thorough reorganization and strengthening of the banking system, especially at the head odices. The fundamentals of the plan arc as follows: Complete reconstruction of the assets by the application of reserves and, so far as necessary, by the Government's taking over the balance of the loss, which was sometimes very considerable. Creation of new reserves through resources obtained from the Government in the form of Treasury bills of various kinds and maturities, which will be gradually repaid out of earnings and from premiums on the issue of new shares. Rebuilding of capital and restoration of a suitable proportion between permanent resources and the volume of business. The preliminary conditions for this reform were met by cancelling a portion of the shares already in possession of the banks, writing down other shares outstanding, and at the same time rebuilding capital funds through the sale of new shares or of shares remaining in the banks' portfolios and not written off. Only a small part of the new shares was taken by the public. The Reich had already taken over a part; for the rest the Rcichsbank decided—relying on its reserves which had been further augmented from the profits of the year 1931-—to participate in considerable vol- 249 ume on its own account. This decision, taken by the directors at the beginning of January, 1932, laid the foundation for the bank reform now in progress, and provided inducements for this type of reform. The Reichsbank will place these assets at the disposal of the Gold Discount Bank; the latter will increase its capital by 200,000,000 reichsmarks through the issue of new shares which the Reichsbank, under authority conferred upon it by the banking law, will take over for cash payment. At the Gold Discount Bank the new class C shares issued for this purpose will be kept entirely separate—and this applies to dividends also— so that the other operations of the Gold Discount Bank will continue to be unaffected by and independent of the new business. This separation will be so complete that the actual investment and management of the assets originating with the Reichsbank will not be conducted by the Gold Discount Bank directlybut by a special board of trustees. Since the independence of the bank and the board of trustees is thoroughly safeguarded, any confusion of central bank functions with private banking interests seems to have been eliminated. The participation of the Reichsbank and the Gold Discount Bank in private banking business is regarded as a temporary measure. As soon as opportunity offers, the shares which they have taken over will again be offered for sale in the capital market. The reform reveals the heavy sacrifices which the crisis has demanded of the banks and their shareholders. Open and hidden reserves, and almost the entire capital, had to be applied to the necessary reconstruction of the balance sheets. In addition, bank mergers were undertaken to increase profits (the Dresdner Bank with the Darmstadter und Nationalbank, and the Coinrnerz-und Privatbank with the Banner Bankverein); and with the same object arrangements were made to avoid duplication of bank branches and deposit offices. The Reichsbank is aware of the extraordinary character of the measures undertaken. It believes, however, that any improvement in the liquid position of the great deposit banks resulting from this plan will sooner or later work to the advantage of the status of the Reichsbank through credit repayments by these banks. The immediate and more important purpose, however, is to restore a banking system which can really function—which can give business the help which it so urgently requires. If the Reichsbank—after the distribution of its previous customary dividend—had 250 FEDERAL RESERVE BULLETIN not used these funds in the manner described in this report, corresponding sums would have had to be applied to reserves or writing down assets. The Reichsbank preferred to create a sound economic position by strengthening the German banking system rather than merely to correct its balance sheet items. It is to be hoped that all these efforts of the Reich and of the Reichsbank may not fail of their effect, so that the reorganization of German banking will not only restore confidence within the country, but in its broader aspects may help to restore credit operations with foreign countries. BALANCE SHEET OF THE GEEMAN REICHSBANK Reichsmarks (in thousands) Resources Gold, not under lien (gold bars, domestic and foreign coins): In the cash offices of the bank With foreign banks of issue Cash balances: Reichsbank notes Subsidiary coin.. _ __. Rentenbank notes _ Notes of German private banks of issue 872,039 111,916 207, 720 26, 658 983,955 234, 378 I , ' Securities owned.._ Doubtful assets Land and buildings Claims resulting from the settlement with the Reich _ Miscellaneous: I Bank notes no longer fit for circulation I Postponed claim on the German Govern- • ment in virtue of sec. 11, 4 of the law of | Aug. 30, 1924, for the liquidation of i Rentenbank notes in circulation i Credit balances with postal check olTices I Bills held as security for the $100,000,000 ; credit I Other claims._ _ _ j Total resources 1 __ Conversion at par: 1 reichsinark = $0.23*2. AS OF DECEMBER 31, 4. 313, 576 1,027,494 23, 322 960,146 19 Dollars i Reichsmarks (in (in thouthousands) sands) Total bank-note issue.. Credit balances of giro and current accounts Noninterest bearing deposits.__ Original capital Legal reserve fund (including transfer from net profits of the year 1931) Reserve for pensions, etc Reserve for probable losses 1,006,320 i 19,417 Reserves for: 1, 264 Printing of new notes 493 New buildings. 45, 215 2, 885 25, 266 1931 Liabilities 4, 224. 687 81,515 5, 305 2,008 Credit balances in foreign currencies (of which ; the equivalent of 160,187,000 reichsmarks was assigned as cover for the notes in circulation)..: 189, 821 Foreign notes 12,111 Foreign bills and checks _ 106,072 Domestic bills and checks: 97, 910 Treasury bills of the Reich _ 4, 030,839 Other domestic bills and checks 80 Silver.. __ _ ___ Loans against collateral (lombards), viz: Loans against securities (sec. 21, 3b, c, d, of the bank law) _. Loans against bills (sec. 21, 3e, of the bank j law) i Loans against goods (sec. 21, 3f, of the bank • law) ' Loans against treasury bills of the Reich (sec. 21, 3g, of the bank law) Dollars (in thou- | sands) APRIL, 1932 _ Special reserve fund for future payments of dividends _...._ Miscellaneous: Interest on bills due in 1932 Dividends due but not yet paid... Dollar treasury notes of the Reich to be redeemed by the Reichsbank Liabilities in foreign currencies Other book debts Net profits for the year 1931, less 10 per cent assigned to the legal reserve fund __. 172,448 41,077 60,095 14,315 3,491 832 8, 599 2,048 244, 633 58,272 161,898 19, 377 30,000 38,564 4, 616 7? 146 100, 024 23,826 1,148 273 70,083 12,103 16,694 419,314 214,096 99,881 50,998 716, 743 170,728 i ; 11,007,039 2,621,877 i Total liabilities _ 9,001,612 2,144,184 754, 772 179, 787 98 23 35, 730 150, eoo 59, 254 80,000 183,945 14,114 19,056 43, 816 26,968 27,024 6,424 6,437 53, 992 12,861 46, 235 11,013 37,122 180 8,842 43 190 428,225 199,414 102,003 47, 500 665,132 158,434 12,000 2,858 ; 11,007,039 2,621,877 45 FEDERAL RESERVE BULLETIN APRIL, 1932 251 ANNUAL REPORT OF THE NATIONAL BANK OF SWITZERLAND The annual report of the National Bank of Switzerland for 1931 was presented to the general meeting of shareholders on February 16, 1932. Sections of the report are given herewith: 1 The money market.—The Swiss money market was influenced by two movements which operated in the same direction and at times simultaneously—the inflow into Switzerland of foreign funds and the repatriation of Swiss foreign balances. Events in Germany and Austria accentuated the flight of capital to Switzerland, and the fear of a breakdown of international payments led our banks to repatriate foreign balances in large amount. The Layton report gives some idea of the extent of these withdrawals, although the figures need to be corrected in the light of more complete information made available since its publication. The situation abroad and the banking difficulties experienced in Switzerland made it necessary for our banks to increase their cash reserves against possible calls for payment. This insistence on a liquid position wTas the outstanding characteristic of the money market. The private discount rate, which advanced from 1 to l){ per cent at the end of 1930, weakened again under the pressure of abundant money; it declined to 1 per cent in January, and even to a fraction below that in March. The feeling of confidence created by the international situation in the spring brought the rate up to 1% per cent in April, a level w^hich prevailed until mid-July. On July 16, when international credit conditions suddenly stiffened, the rate rose to 1% per cent, and the following day to 2 per cent, the level of the official rate; after some weeks it declined again to 1% per cent and later to 1% per cent. In the spring the demand for funds, and in the summer the attitude of reserve on the part of lenders, produced the same effect. The extremely low discount rates and the dearth of bills offered for discount made it impossible for the banks to maintain their discount business; and it was for the most part only the larger institutions, with their cheap correspondent accounts and day-to-day money, which continued this type of transaction. 1 The report, available in French and German, contains in addition tables showing the operations of the bank in detail, and sections dealing with the international crisis, the suspension of the gold standard by Great Britain, central bank cooperation, commercial treaties, unemployment, industry and agriculture, prices, the Swiss stock exchange, public finance, the Swiss railways, capital market, etc. For earlier reports see BULLETIN for April, 1931; May, 1930; April, 1929, and 1928; March, 1927; April, 1926, etc. The rate on foreign bills declined from 2}i to l)i per cent during the period from the end of 1930 to the middle of February, 1931, and for several months remained below the official rate. Although the National Bank did not discount these bills except conditionally—that is, when their maturity did not exceed 30 days— they were eagerly sought by the banks during the first half-year. After a slight upward movement during the period April to June, the rate rose sharply from 1% to 4% per cent in July upon the announcement of the difficulties of the Darmstadter und Nationalbank and other suspensions of payments in Germany; in October it was raised to 5 per cent and remained unchanged throughout the rest of the year. Discount policy.—The discount policy of the bank was based on the same principles as in the previous year. The conditions imposed on the discount of foreign bills proved to be fully justified. As suspensions of payment increased, the directors of the bank were faced with the question to what extent they could furnish credit through their note-issuing authority in aid of foreign bills coming into Switzerland, payment of which was suspended by a moratorium. The directors could not, however, undertake as part of their normal discount operations the liquidation—that is to say, the rediscount—of frozen foreign obligations. The directors preferred to safeguard their full liberty of action for those cases where Swiss business applied to the bank for accommodation. On the other hand through normal discount operations the bank put its credit, as hitherto, at the disposal of the national economy whenever the liquidity of the bills and the signatures by which they were secured offered adequate guaranties. But the central bank did even more; in addition to its ordinary operations it agreed to rediscount bills in situations where the need of assistance was urgent. If the commercial banks seemed at times unwilling to extend credit, they were undoubtedly hampered by the anxiety to insure the liquidity of their position and by their concern to avoid losses and to guard the security of their capital; but on the whole it may be said that they met all reasonable demands for credit. On January 22, 1931, the bank lowered its official rate to 2 per cent from 2% per cent, which had been in effect since July 10, 1930. The bank hoped that this reduction would 252 FEDERAL RESERVE BULLETIN APRIL, 1932 revive trade, check the inflow of foreign funds, The National Bank did, in fact, accept the and thereby have a favorable effect on the gold which the banks offered to it, but made an money market. Above all this reduction of agreement with them that they should furnish the rate was intended to correct the unduly a much larger proportion of foreign exchange high exchange level of the Swiss franc; and this which the central bank itself would convert was in fact accomplished, although for only a into gold. During the year the volume of forshort time. When in May the Federal Reserve eign exchange bought by the National Bank Bank of. New York reduced its official rate to (chiefly dollars, English pounds, and French V/2 per cent, the National Bank did not followfrancs) amounted to about 15,400,000,000 the example, being of opinion that a further francs. These large acquisitions caused an inreduction of the rate could neither bring about crease in reserves; from the beginning of May any lowering of interest rates-nor reduce the to mid-September, when the inflow of exchange premium of the Swiss franc. On the other ceased for a time, the aggregate gold and forhand, the bank maintained its rate at 2 per eign exchange reserves of the bank rose from cent in September, when the Federal Reserve 953,000,000 francs to 1,782,000,000 francs. Bank of New York, the Bank of France, and Owing to the continued conversion of foreign a number of other central banks advanced their exchange into gold, the stock of gold exchange rates. A similar measure could not have been at the end of the year amounted to 103,000,000 justified in the case of Switzerland, cither from francs, while the gold reserve had risen to the point of view of credit demands upon the 2,346,900,000 francs. bank or the exchange position. The yearly The suspension of the gold standard by average of the official discount rate was 2.03 England on September 21 came as a great surper cent, compared with 2.89 per cent in 1930. prise to the National Bank. Before that date, As the greater part of the bills presented for however, it had already begun to liquidate discount originated with trade and commerce a great part of its sterling balances. During rather than with the banks, the average the summer, especially, when sterling showed a currency of discounted paper was somewhat steady depreciation, the board of directors longer. began to question whether this exchange should Gold and foreign exchange policy.—The gold be held in any large amount as note cover of the and foreign exchange policy of the National National Bank. The solution was to adopt the Bank had to adapt itself to the most diverse measures already described, so that the bank conditions. In December, 1930, the Swiss was protected against any very considerable franc averaged one-half of 1 per cent above its loss. Doubts have been expressed from time to dollar parity; the reduction of the discount rate in January, 1931, had the effect of bringing the time concerning the maintenance of the gold rate down to par and even below par in the fol- standard by Switzerland and the stability of lowing months. The dearth of opportunities the franc; it has sometimes been asked whether for investment within the country led to a the suspension of the gold standard might not strong demand for foreign exchange, and, be helpful to industry. Such a measure, howaccordingly, the central bank made the desired ever, would not only depreciate the savings funds available to the market. The crisis of of the Swiss people and our foreign balances confidence abroad, however, and the conse- denominated in Swiss francs; it would also, quent steady inflow of funds forced the Swiss sooner or later, lead to a rise in prices and an franc up again in May to a level above parity, increase in the cost of living, and would create so that the question of correcting the constant difficulties for our exporting industries which premium of the Swiss franc had again to be met would have to pay higher prices for the raw by the board of directors. A further reduction materials purchased abroad. •* >aThe case of of the discount rate for the purpose of stopping England shows clearly how an unstable exthe inflow of funds into Switzerland had little change handicaps trade and ^payments. It chance of success, because this flight of capital proves also that suspension of the gold standard would still have been directed into Switzerland, is by no means a guaranty of stable prices; regardless of the discount rate. The only during the last four months of the year, indeed, means at the disposition of the bank to prevent the Swiss index of wholesale prices declined a new advance of the franc consisted in acquir- from 106 to 103, whereas in England the ing foreign exchange. In view of the very wholesale price index rose from 92.2 to 106.4 large offers of foreign exchange, it was no longer during the same period; and the cost of living possible to allow the gold standard free play. index from 145 to 148 in November. APRIL, 1932 FEDERAL RESERVE BULLETIN 253 It is unnecessary to explain at length why- of notes assumed such proportions, however, there could be no thought of putting gold coin that the directors of the bank finally requested into circulation during 1931. Both foreigners the banks to exercise restraint in delivering and Swiss nationals hoarded notes, and it was Swiss notes to foreigners. The banks complied obvious that gold coins would be greatly pre- with the request of the National Bank, so that ferred to notes for hoarding purposes. On the further measures, such as an embargo on the other hand, when the metal is concentrated export of notes, were unnecessary. in the central bank, it can be used at any Both banks and private firms felt the need moment to protect the exchange. The figures of increasing their liquidity and strengthening given above show that the bank made use their cash position; even gilt-edged securities largely of its authority to import gold. As the were sold at sacrifice prices for the sole purpose Federal mint, however, was fully occupied of obtaining cash assets; and these forced sales, with other tasks, it was able to execute only impelled by panic fear, gave a further impulse two small orders for private account. The to hoarding. minting of gold coin for account of the National Although this fever for hoarding showed how Bank was likewise in inconsiderable amount. great was the confidence inspired by the Total imports of gold amounted to 1,173,- central bank, it was prejudicial to the economic 000,000 francs, of which 33,000,000 francs rep- situation in general and to business enterresented gold for use in the arts and 1,140,- prises in particular. The items of the balance 000,000 francs gold arising out of banking sheet of the bank increased out of all reason transactions. Of the latter amount, 474,000,000 and exceeded the normal requirements of francs were imported by the National Bank, business, since the only means of guarding and the remainder, 666,000,000 francs, by third against the consequences of an excessive departies. Whenever gold was offered for pur- mand for notes was to create an adequate chase by the banks, the National Bank reserved gold reserve. But the printing of notes and the right to examine each case separately, on the accumulation of a corresponding reserve its own merits, as it had previously done. Under imposed considerable expense upon the Nathese conditions the National Bank purchased tional Bank. Moreover, the excessive hoarding gold in the amount of 77,000,000 francs and forced the bank to restrict its credit operations. withdrew from deposit with a. foreign central The public naturally wishes to put its savings bank 333,000,000 francs; the remaining bal- in a safe place, but it ought to realize the conance of gold imported, or 256,000,000 francs, sequences which the withdrawal of deposits was acquired for account of Swiss or foreign involves for the economic position of the banks. Exports of gold amounted to about country as a whole. 19,000,000 francs. The considerable proportion of notes of large Note circulation.— From the end of October denominations proves clearly that the notes to the end of December the fiduciary circulation were not issued in response to the needs of rose from 1,498,000,000 francs to 1,609,000,000 business but were absorbed b}T hoarding; in francs. It is clear from the explanations al- 1931 notes of 1,000 and 500 francs made up ready given that the increase did not result almost one-third of the total circulation, from the needs of Swiss business, but that- whereas in 1930 they represented less than other factors operated to raise the note circu- one-fifth. During recent months hoarding lation by half a billion francs above the level has more or less come to an end, and there of the preceding year. The difficulties of the has been some reflux of notes from abroad. Reserves.—The reserve against the note Austrian Credit-Anstalt and the German great banks, and, later on, the emergency decrees j circulation is the Tlargest ever knowrn. On the promulgated in Germany and the consequent average for the 3 ear, notes in circulation wore general uncertainty created a strong demand covered in the proportion of 102 per cent by for Swiss bank notes in foreign countries. gold, whereas the legal minimum is only 40 Short-term deposits were withdrawn, but in- per cent. If the holdings of foreign gold exstead of converting them into foreign exchange, change are added to the metallic reserve, the people more often asked for bank notes, which reserve percentage amounted to 132 per cent. disappeared into hoards. When the crisis It should not be forgotten, however, that gold broke out in Austria and Germany, the de- accruing from the flight of capital into this mands for Swiss bank notes increased greatly, country can not be regarded as belonging and the National Bank at first considered it- wholly to Switzerland. Sooner or later, when advisable to satisfy these demands in the hope foreign countries repatriate their funds, part of thereby mitigating the crisis. The export of this gold will leave the country. Considered 254 FEDERAL RESERVE BULLETIN in this light, it constitutes a reserve with which the bank of issue can meet withdrawals of foreign exchange, or, in other words, can protect Swiss exchange. If this growth of gold stock is regarded to-day with a certain amount of satisfaction, its eventual withdrawal must also be looked upon as a normal proceeding. The National Bank is not specifically obligated under the law to maintain a reserve against its deposit liabilities, as it is required to do in the case of notes in circulation. In practice, however, it must take into consideration the present abnormal situation and must be prepared at any time to pay a large proportion of APRIL, 1932 its demand deposits, the volume of which at present is very high. In order to be able to do so, it must have the necessary cover at its disposal. On the average for the year, notes in circulation and demand deposits were covered in the proportion of 90 per cent by gold or its equivalent. The composition of the items of the reserve have undergone some change, owing to the fact that in September a large j part of the foreign exchange was converted into gold. The only gold exchange which the bank holds at present is in dollars and French francs. BALANCE SHEET OF THE SWISS NATIONAL BANK AS OF DECEMBER 31, Francs (in Dollars i thou(in t h o u sands) sands) Resources Swiss gold coin Foreign gold coin Gold bars - Total gold in vault.... Gold earmarked abroad Total gold. ! 235,461 232,617 ; 1,057,970 45,444 44, 895 204,188 I 1,526,048 , 820,845 294,527 158,423 Other cash items Foreign exchange on gold standard countries Foreign exchange other than gold exchange Swiss portfolio: Swiss bills Rescriptions Other discounts Advances on security: Eligible as cover for bank notes. Other 452,950 3,502 i 103,032 ' 4,007 | 676 19,885 773 27,729 i 5,352 68 1,253 350 '• 6,493 : 1 Government securities Due from postal check offices Due from Swiss correspondents. Items for collection ___ Coupons Interest accrued on securities Unpaid capital Bank premises _ _. Furniture and fixtures Miscellaneous assets _ Total resources.. 2,340,893 j 34,572 ! 6,672 64,499 I 152 12,448 29 64, G51 12,478 37,863 1, 345 25, 605 3,161 971 454 25. 000 3,000 (2) 5,467 2,659, 522 I 1 Liabilities Notes in circulation __. Giro accounts _ Federal accounts Other deposits Drafts and checks in circulation.. Rediscounts— Capital _. Surplus _ Net profits _ I Dividends unpaid Reserve for uninsured iisks. Reserve for printing bank notes. Miscellaneous liabilities _ 1931 Francs (in Dollars i thou(in t h o u sands) sands) 1,609,353 883,158 J 40,084 ! 44,917 I 1,165 281 50, 000 10,000 5,704 10 1,000 1,000 12, 850 310.605 170, 449 7,736 8,669 225 54 9,650 1, 930 1,101 2 193 193 2,480 7,308 ! 260 -| 4,942 j 610 187 8 8 '•• 4,825 ,! 579 :' O ! 1,055 ji 513,288 i 11 Conversion at par: 1 franc=$0.193. T o t a l liabilities _ 2 Carried at 1 franc. ! 2,659,522 513, 288 255 FEDERAL RESERVE BULLETIN APRIL, 1932 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS fin millions of dollars] Europe | United countries) States Knd of month , Total (20 ; ! countries)! Austria ;i 1930—December.....: 10,907 •! 1931 - J a n u a r y February March._ April _. May : June ! July August September- : October November... December... 4,225 : 4,285 4,309 • 4,343 4,373 4,445 4,593 : 4.587 . 4,632 4,364 3,905 4,031 4,051 10,953 11,008 11,071 11,107 11,217 11,264 11,210 11,283 11,262 11,111 11,208 11,242 1932—January February P 11,289 | p 11,304 \\ March..". 1! 4,009 3,947 3,985 ; Czechor Belgium Bulgaria ia giQy£]Jia slovakia :Denmark England ; France 110 ; 5,281 I 30, 191 92 j 94 i 96 99 ' 102 ' 87 ! 87 ; 89 : 83 86 : 82 : 78 ". 5,313 ! 5.350 I 5,388 ! 5, 395 : 5,428 5.351 ; 5.353 j 5,413 ! 5,686 6, 062 6,109 1 30 30 30 30 30 30 30 30 27 27 27 191 197 200 201 201 199 214 221 346 357 356 354 6,184 I 27 6,296 i| 80 78 " P6.440 || 25 25 : ! , ; ! ; ! ; I : I I I ! j i i | i 352 351 Germany 10 46 46 718 ! 2,100 528 10 11 11 11 11 11 11 11 11 11 11 11 46 46 46 46 46 46 45 45 45 46 46 49 46 46 46 46 46 46 46 46 44 44 39 39 ! 679 > 685 1 699 ! 712 1 735 ! 793 i 643 ! 649 | 656 • 660 j 587 ' 588 i 2,176 2,192 2,200 2,180 2,181 2,212 2,290 2,296 2, 326 2, 534 2, 659 2, 699 535 544 553 564 569 339 325 325 310 273 239 234 11 11 49 49 39 ! 39 I 2,808 588 .. 2, 942 P 3,002 588 226 221 209 !.._..____. I" End of month 1930—December. 1931—January February _. March April May _ June July _ August September. October November. December. 1932—January.._ February. _. March Europe—Continued Greece Hungary 7 7 7 6 6 6 6 6 6 6 11 11 ll 11 11 28 28 26 22 20 20 20 20 18 18 18 18 18 18 17 17 Italy l a n d T Norway; Poland Portugal Ruraa- Spain nia ; 1930—December... ! 1931—January February..J March , ! April May i June July i August September..: October i November..; December... i 1932—January ; February. _.i 171 39 : 9 56 I 471 65 138 249 ! 19 175 179 179 181 181 200 236 260 282 336 362 357 39 39 39 39 39 39 39 39 39 46 42 41 9 : 9 56 i 56 53| 53 , 53 i 53 i 53 53 i 54 j 54 i 54 i 58 j 466 466 467 467 468 468 439 439 439 I 434 434 I 434 64 64 I 64 64 64 64 64 62 53 j 57 55 55 126 124 124 • 124 124 : 162 225 " 229 328 422 425 . 453 ; 249 249 259 259 262 262 267 280 293 309 315 328 19 ! 19 ! 19 ! 19 . 19 • 27 ! 27 : 27 ! 29 ; 31 ' 18 18 18 18 18 18 18 19 19 21 31 31 21 21 296 290 P296 351 353 354 42 42 58 j 434 434 55 55 472 482 i 471 ' 329 ! 329 I 330 L 9 11 11 11 10 ' 10 10 12 12 13 : I 1 " 13 15 57 ! 412 5 0 6 '• 497 483 475 465 451 ! 416 j 400 ! 370 j 363 ! 358 ! 344 I 397 390 378 370 362 350 322 309 281 • 270 265 253 338 ' 252 : 249 ' 11 ! 0! 8! 0 i 0 : 0 0 0 0 0 0 0I 0 ' 0i other Uru- , 5counguay ; tries 17 , 18 . 60 j 14 15 12 12 10 10 10 10 8 11 10 18 18 18 18 18 16 14 11 13 17 17 17 59 ! 58 58 I 58 58 i 58 " 57 57 " 50 • 53 ! 53 i 53 , 1 : ; ; ! : i i ; I i ! | i I ! . : : i ; : ; 15 15 i P 52 52 : 17 17 17 16 16 17 17 12 12 13 13 13 13 13 13 Total (5 countries) 704 704 703 709 714 724 730 714 698 706 644 570 525 505 505 Lustra-1 !.. ^ I ! ; i ! i ; • ; 31 31 : 22 P22 Africa Far East Total : 1 I ! (10 |. Argen- -nrri7n i Colom-i p bia coun- '' Una *i"a ' i J r a z 1 1 i v^' n 1 eru tries) 5 3 4 j1 i tries 279 279 279 279 279 280 282 283 283 286 293 296 296 Latin America End of month ! 5 other U . S. S.j Yugo- 1 counSweden Switzer-: land i R . j slavia Japan New South Java . Zea- ! Egypt Africa land j 75 • 128 76 76 "77 74 74 75 66 : 52 52 53 51 ! 52 . 128 128 135 141 147 151 158 162 162 162 162 162 51 52 162 102 412 415 417 415 419 422 425 412 406 408 342 271 234 215 2J5 33 52 48 48 46 46 46 44 44 51 53 53 45 34 34 34 34 34 j 34 | 34 34 34 34 | 33 | 32| 45 45 32 32 20 ! 20 20 20 21 21 21 21 21 21 21 21 21 P21 P21 33 34 35 31 31 32 31 33 31 32 30 37 39 40 37 *> Preliminary. Figures for 30 countries are as of final day of month; for the other 15 countries—including England, France, and Netherlands—they are as of last report date of month. See BULLETIN for July, 1931, p. 399. . . The 5 European countries and 5 Latin American countries for which figures are not shown separately are Albania, Estonia, Finland, Latvia, and Lithuania- Bolivia, Chile, Ecuador, Guatemala, and Mexico. None of these countries has had gold reserves in recent years in excess of $10,000,000. For back figures—and for additional details relating to this table—see BULLETIN for July, 1931. 250 FEDERAL RESERVE BULLETIN APRH., 1932 GOLD PRODUCTION [In thousands of dollars] Production reported monthly Estimated world production Month 1 Total ! 1 Rhodesia 1 ! Africa South A frica Belgian • Congo "West Africa I Canada ! Mexico Australia Japan India j I October. _ N ovcinbcr December 1930 _ Total (12 months) j 35,891 35, 312 30, 300 28,008 27,429 i 28,417 j 410,752 322,151 i _ . _. . _ _ Total (12 months) 944 935 973 419 430 441 221,520 ; 11,470 ! 19,151 j 17,427 18, 791 1 18, 194 ; 18,901 ! 18, 594 i 18, 959 18, 859 i 18,981 j 19,525 : 18, 073 : 18,809 ! 900 898 880 917 918 920 947 918 905 93(5 941 1,041 19,142 18, 337 18,519 1931 Januarv February March April May J une July •\ugust September October November Decein ber : : 302 243 3,802 ' 4,087 : 4,082 • 1 109 1,172 1,190 895 782 903 710 709 700 037 075 700 5,000 2, 999 43,454 ; 13,827 9, 553 7,531 6,785 443 438 453 447 452 448 453 400 488 470 480 501 282 271 033 808 802 930 920 1, 092 934 1,229 910 1,240 1,321 1,181 057 764 683 094 716 003 008 054 092 079 007 004 048 580 594 501 521 490 500 510 502 073 590 579 284 • 30, 408 34,451 35, 910 30,129 30, 501 30, 508 30, 333 30, 977 37, 008 38,008 30, 908 37,113 28,248 20,291 27, 750 27,909 28,341 28,408 28,173 28,817 28, 908 29,848 28, 748 28, 953 438, 382 340, 401 224, 803 j 11,193 5,540 1 3,510 • 55,310 , 12,879 12, 132 8,201 0,815 * 37,505 p 29,345 19. 587 | » 18,894 921 400 j 453 i 480 . 4,834 j P877 » 1,181 628 534 i ; i . 285 • 277 . 250 ! 208 "• 272 i 282: 323 349 324 ! 327 . , ! ! i 4,192 4,033 4,213 4,012 4,448 4, 823 ; i ' : j 4 , 0 2 5 •• 4,004 : 4, 900 4,928 : 4.837 4,974 . 1,282 1,012 989 1, 331 ! 1,209 : 1,104 815 1. 229 1.075 1,042 915 877 1932 Jaiuiarv February v Preliminary. NOTE.—The figure for total world production in 1930 is that published in the annual report of the Director of the Mint for 1931. The differenc e between this figure and the total production reported monthly in 1930 is $94,001,000, or $7,883,000 on a monthly average basis. The monthly estimates of world production in 1930 represent the sum of this average difference and the figures actually reported monthly. For 1931-32 this average difference, of which about half represents United States production, is increased by 3.5 per cent—the ratio of increase of United States production in 1931. The figures reported monthly are not in every instance complete for the area indicated. Those for West Africa represent the output of the Gold Coast and Sierra Leone; those for the Belgian Congo, the output of the Kilo-Moto mines; those for Australia, total output with the exception of Tasmania and Northern Territory; those for Japan, the output of the leading mines; and those for India, the output of the Mysore district. For annual figures of world production of gold extending back to 1873 see the annual report of the Director of the Mint for 1931, p. 241. GOLD MOVEMENTS [111 thousands of dollars] United States Net imports from— Month 1930 October.November December Total ! net i imports >rance -8,181 j 20,369 ". _.i 35,151 _j 32,742 T o t a l (12 mos.) -! 280,087 China ! Argen- Brazil Colom-i British! bin, I India Hong I Kong : Bel- ;N"ether- Switzer-: Can- ' „ gium i lands land "-ill -275;-73,675| - 4 , 208| 22, 8851 1,2S1 .557 395 575 14,384 4,922: 15,405 5,000 6,872; 20,390 20,2221 87,770 i 19,503 : 57,500' 20,561"' j—337,085 ! 89,43f > i 50,858. -4 8i i 1,501s -10 .-24,087' 2| - 4 , 1 7 2 ! -349: 0S5 -324,500 - 9 , 078 - 3 5 , 9041 - 1 7 , 617. 333 -30 -f>7j -39l' -515: 4, 2 4 9 - 1 5 , 1 5 0 ! - 5 , 8 0 1 ! - 9 , 857 - 1 , 270 I 22, 550,' 530J 1,272 303! 4, 032| 924; 1, 503! 1,105' 1,052. 20, 725: 4(ifi; 4, 871. 8, 802! 2, 20S8,837' 4,200:. o, 000 - 1 , 239! 7, -10S1 989J 4, 513 1, 341!. Total (12 mos.)-: 145,325! 0, 797-344,514-15, 5 8 3 - 5 0 , 327j-19, 708: 81,130 : : I I ! - 7 4 , 9 5 8 ; - 3 , 1 9 9 - 8 3 , 783.-12, 553J - 6 , 2 5 7 ' - 1 , 7 5 9 - 9 0 , 507 i - 2 3 5 - 9 8 , 203 - 1 7 , 859; - 8 , 672i -251 -26,742 i -37,533! - 0 , 3 4 1 ! j -0 2,140 8,40»S: 7,002 1931 January February March April May.. June July August September October N ovember December 1932 January February M a r c h »". ! I ; _._! .! : • !• 34,372 ._ 10,142 25,045, 49,510' 49,030 03,847 ! > _: 9= 3 1 50. •* 19,101 = .__• 5J 2L| 1 $25,990,000 imported from Germany. -2> 1CJ J -17! 2 m ! 9,007 ; | 1 9,289 ' ll,001i 1(3; 14,782;. 40,0'J9: 4,92:{|_._ 8,30f): 5,383 25,770 15,474. 22, 207 j 111,203, 1,103! 9.ri()i 2,375! ] , 124 1,742; 1,107 9, U()| 1, 157! 2.C83J $11,000,000 imported from Germany. ! ! : ! __: ! ! 3.022 116 2,990' 80; 3,359! 155' 87' 142 3,095 16 _ __: 4 2,042 4,895! 3.105. 10. 15,110 8,004 I 3ti0l 919. 2, 948 4,077! 2,575; I 732J 099 249' | All i other j counI tries 13, 75()' 10,250 ! _..! 1,083 716 3,171 22.211; 150,009' 30,838 801! 2, 739: l597 7, 796: 960. 6, 301: 1,544' 1,010; 3,59«"5, 533 1,644; 023 ; 1, 204 748; 2,412 1,580! 2,845 2, 7411 2, 260 2,004 847 , 399 1 30, 842 24>>i 2,980 l,24(ii 25,000 M 3 , 4 3 5 3, 5SG ! 1,378 22, 501 i 75.932! - 1 , 0 5 0 4,775 68,285! 34,210 199, 280j 107 819! 2,903 9, 9091 19,441 ! v Preliminary figures. 07,332 2,471 940 1,226 257 FEDERAL RESERVE BULLETIN APRIL, 1932 GOLD MOVEMENTS—Continued [In thousands of dollars] Great Britain Net imports from— Month Total net imports • ! U n i t e d : Germany I States : France 1930 October. _ November December 23,085 January -43,470 February i 2,443 March..-. ' 6, 452 April _ _; 24,084 May | 19,122 June . . . i 54, 300 July ...:• -130,808 August _! -24,150 September *> _! - 9 , 251 October *> • 13, M0 November * j -44,977 December »__ -15,002 T o t a l (J2 rnos.)p. : - H 3 , 817 : 283 ,-208,831 i - 7 8 , 8 3 5 j - 9 , 0 9 0 • -72,010 -18,178 -7,793 : -344 -290 —232 -110,144 -13,333 .' -774 ; - 0 , 800 i -01,412 l -24,939 -1,483 -1,772 -1,017 -92 -420 37,51-1 1, 705 | - 2 , 001 ! - 7 , 790 | - 0 , 317 I -142 -4,251 -101 . -014 -19 -6S5 2,850 12,395 10,501 -981-23,190 57,896 -992 -153 -194 -120 -133 - 3 , 338 -1,058 -13,218 -10,108 -2,458 -10,003 -18,504 7. 823 8,485 112 310 2, 753 389 6, 028 C02 095 1,003 092 - 1 2 , 582 - 3 1 0 , 801 i 33, 704 - 3 0 , 952 - 1 1 8 , 319 - 0 1 , 005 28, 922 -1,500 11 -827 970 -4,144 -7,086 1932 -19 - 1 0 , 751 - 9 , 145 -35 -72 I -119 -2 -00 -515 -155 An<?tra N e t h e r - SwitzerSouth lands i l a n d America -10 | -20,827 ! - 2 , 0 8 1 ! -4 ! -39,682 i -940 | -05,750 ! -9,903 ! -1,218 | 10,062 . -1,905 ! -35,383 . Total (12 mo?.).. Belgium -270 -14 18 05 140 -82 -50,133 - 2 4 , 373 -18,419 -8,591 -12,370 -4,290 l?J lld South All Africa, : other -Rhodesia, coun: West Af- i tries 19,907 , 5,371 I 4<i4 ; —8,177 1,526 116,415 j 380 375 365 3,407 398 511 10,090 15,549 12 419 1,107 04 10,983 | 32,083 : 740 j 781 ! 977 i 1,555 371 I 1,808 22,138 • 17,932 : 20,997 -574 3, 430 4,183 213,774:122,803 20, 373 17,489 21,382 23, 090 10,185 21,021 21,042 17,801 19,359 21,017 15,420 19, 499 4, 363 2,858 -704 - 3 , 528 -256 - 2 , 6-47 -382 -599 -494 -256 1,049 442 233,747 440 j January. February.. March *>_.. -7,320 - 0 , 1S2 -6,330 -4,129 i -04,955 2,250 I -52,712 -169 ; -40,317 -134 -750 : -59 i -6 : -3,584 - 7 , 537 -4,808 -247 —3. 723 -11,507 105 j 2,220 ' 1,007 i 45,986 30,001 25,129 17,002 | 20,884 ! 20,506 -352 1, 420 1,109 I Germany * France Net imports from— Net imports from— Month Total net . imports United States 1930 Total (12 mos.)-j 460,268 1931 January February March April May June July... August September October. November December February- "~"l erIands -38 77' -29 Total land United ; EngStates '• land countries -35! 585' -93,515 628. 1,185 1,060' 9, 250 42 90,938 274,514. 65,352125,183-1,127 5,403-14,000 263 I 67,819' , 30,205 10,558, : 2,730 -12,090-12,749 - 9 , 5 5 8 ' -0,320: 149,150 72, 952 418 209. 273, 734 243, 950i _ 122, 372 99,870. 13,881 3,164 Total (12 inos.)- 728.176 1932 January. 1 37,142 83,493 37, 472 -2| 03,998. • I 121,147 38,172 05, 035 October November December "i Eng- '' Gerland • many __ 74,007 184, 229 65,0621 82,580 40.735 90,947 -46. 2 6,755 - 9 , 8 9 9 ; 9,601 - 1 , 5 9 2 1 $29,229,000 imported b y Great Britain from Spain. 1 $29,233,000 imported by France from Spain. Netherlands Switzerland 67,948! -84,496-11,908; All other countries U. S. 150: 60 45. 1,8331 - 8 3 , 9 0 9 - 1 2 , 3 4 8 1 141' 3i; 1,046 i 91 69, 7, 693' 1,321; 67,031: - I ' -15 -1 11,960 — 1; 805: 2,008: 35,992 1 -38. 12,098 251 -1 10. 598 1,247; 9,043! ! -18 934 -7 Hi 383 503! 2,218 | -13 -3 0, 371 257 I -20 425! 21S1 310 4, 114. - 2 1 - 8 , 202 6211—205, 543 >-25,927 -40,029, -9 29,872. - 0 , 2-13 >-10,963 - 1 , 9 4 9 : 29, 520 89, 786J - 1 9 - 2 9 - 5 , 990 78, 300 011. 934! 112; ; - 1 0 -1,818 1.137! - 1 0 , 9 4 7 I 902 : 547; -153 i, 0(;0 - 3 , 553 5,085 - 3 1 , 473 i 6S1 21, 73S 120! 01 22,741 -42,572 40, 417 - 4 1 , 908 I 18 1,78 49: 1 - 2 3 2 -22, 380! 26,132 7, 203 875 7: 542 328,130 312,501 100,050 18,775-81,207 France 1,325; ! j 12; 711 -93 1,349 12,849 I 172 31 10, 338; 751 03 22 9,826i 16 103! 895 79 7,718 469 177| 41 47 10, 327: 95 309 45 42' 5,109: 431 424' - 9 7 , 030' -24,159 - 6 , 1 1 3 5, 154,8' r-10,839 '54 1,227 rl5l! 18' 5,218! 210 80 548| -23 ! ! 3 -5,558,-11,859 -80 - 5 , 9 5 1 -10, 905! - 2 0 , 020 5,183! 78 : 18 - 1 6 , 4 5 5 - 2 5 , 5 9 4 -4 56 17 150 103 49,807>247, 950 :--36,100-35, 221 -102, 019-55,142-03,800 58, 932 -14,475 1,401" 2,091 328 ; -5,202! 10 4 -504 -884 071. -5,501' _ 104 1,053 3 $17,555,000 exported b y G e r m a n y to Belgium r p P r e l i m i n a r y Qgures. Revised. * Since German figures for individual countries are subject to semiannual revision, those given for months in 1932 are preliminary in character. Figures for total net imports are final. 258 FEDERAL RESERVE BULLETIN APRIL, 1932 GOLD MOVEMENTS—Continued [In thousands of dollars] Netherlands Switzerland Net imports from— Month Total net imports 1930 October November December i Total (12 m o s . ) - United States 229 115 : 10 i -7,724 _| 249 -118 -150 -433 -519 24,384 1,018 -60 35 31 12,063 • -39 -21 -20,528 11,932 • 276 i 19 I , .. 60,076 'i 19,020 30,598 36,551 , _! i ! 191567 ' All other countries Germany 12,139 35 3 1931 January February March April May June July August September October November December Net imports from— 16.413 21,551 : 1,449 j -14 -65 : -145 -21 i 9,820 60,722 i 15,387 . 14,781 : -17,572 -1,113 7,982 -2.325 8,849 Total net imports -43 —164 -142 -392 -382 24,176 -229 -556 -113 17, 455 4,717 11, 672 -92 -76 | -18 -158 6 -29 -2 -13 207 -232 -128 i 3,831 -479 « 3,413 -78 United Englandj France States Germany South Africa All other countries 3,775 99 267 -330 I -17 1 -173 I -112 -237 -279 -306 22,204 1,911 -1,643 I -2,270 671 -54 -111 -10 -18 17,475 3,597 18, 096 25, 505 94, 339 43, 572 -16 -58 -39 -11 6,110 -36 50 1 8,270 25, 604 -75 -223 -185 -153 -38 -123 -146 -69 » 6, 751 « 7,181 209 11 55 -42 -32 8,220 I 2,300 i 66 : 23 ! 4,519 | 886 ! 19,687 332 11,044 16,577 44,196 408 203 Total (12 mos.)__ 304 -630 British India * Net imports from— Month : Total net imports 1930 October November December _ _ Total (12 months) 1931 January February March April May June July August September October November December— - _ _.. Total (12 months) _. England Iraq i 967 . 1,323 682 290 300 -8 10 433 201 152 259 154 • 57,072 j 8, 081 8,053 2,402 -1,024 323 -20 102 295 - 2 , 254 -1,539 -979 -291 -10,179 -17,610 -39, 539 94 211 418 199 99 170 404 224 993 23 138 113 144 118 167 146 79 202 400 279 372 152 -19,085 • -72,721 2,835 : , ____| _.-' _ United States Australia i a n d New • Zealand ' ! -280 880 I.! 943 ;. 600 I . 090 ; . -4 -1,752 ': -803 . -270 . •""-I6"| 175 ! - 2 , 1 9 0 -20,058 : - 8 , 2 7 3 j —24,217 ]; - 3 , 3 0 7 ! -45,590 -5,294 I -95,088 , ' j '; South Africa Gold production •All other in India 5 I countries in India 400 ! 24 ; 123 ! 20,513 j 247 49 113 74 24 25 70 738 479 109 248 152 039 i 077 I 702 ! -30 17 Increase 1,606 2,036 1,367 12,023 6,806 200 ! 64,278 200 184 294 107 111 105 253 223 471 7-8,388 8 -3,073 -921 649 582 590 563 523 491 502 517 504 075 592 581 1 9 0,942 : 0,168 , 5,866 : 3,397 .' 7,362 I 3,700 21 i -353 j 359 0 302 1,453 -5,403 -5,005 -4,647 - 4 , 658 - 7 , 663 -3,513 718 -25,030 -23,984 -45,015 1932 January... February 1 2 3 4 8 6 _ -24,029 -2,863 p—27,364 : .__ -21,419 _.._ $4,020,000 imported by Netherlands from Dutch East Indies. $3,824,000 imported by Netherlands from British India. $0,733,000 imported by Switzerland from Australia. $7,293,000 imported by Switzerland from Norway. Reported monthly production of the Mysore district plus $32,000 representing the average monthly production of the rest of India in 1930. Figures derived from preceding columns. Net imports plus production minus increase in Government reserves in India. 7 $7,575,000 was exported from India to Netherlands. 8 $1,891,000 was exported from India to Netherlands; $2,173,000 to France. p Preliminary. * Beginning with September, 1931, figures for net imports from individual countries are preliminary and subject, to revision. Figures for total net imports, gold production, and increase, in Government and private holdings are final unless otherwise, indicated. 259 FEDERAL RESERVE BULLETIN APBIL, 1932 GOVERNMENT NOTE ISSUES AND RESERVES [Figures arc for last rcpoit date of month] 1932 Feb. Argentine Conversion Office (millions of '. gold pesos): '• Gold _ Notes issued » _ _ ___• Irish Currency Commission (thousands of pounds sterling): Legal tender note f u n d British legal tender and bank balances __'. British securities _.' Notes issued Consolidated bank notes ?— Issued _ i Doomed such under sec. 60 (4) of currency act, 1927 : Jan. p 257 * 543 154 6, 6J7 6,771 1931 70 6,725 6,795 4,367 4,350 1.603 1,631 261 548 I 1 2 Feb. ! Jan. ; Doc. ; Feb. Feb. Canadian Minister of Finance (millions of Canadian dollars): Gold reserve against Dominion notes.. 65 i 05 : 67 [ Advances to banks under finance act..I 49 37 ! 45 Dominion notes— i Issued ! 162 170 i 174 '• 143 Outside chartered bank holdings..! 29 30 i 28 i 28 Indian Government (millions of rupees): ! Gold standard reserve— i 426 127 Gold 394: 114 ! 7,119 6, 843 395 | 398 I Foreign exchange '• 7,546 6, 970 136 420 138 ! 139 ! Paper currency reserve— Gold 49 i 4,333 3,985 48 ; 46 Silver coin and bullion.. 1,122 . ,158 : 1,230 i 1.227 Other assets 624 ! 585 i 518 • 101 . 1,619 | 1,906 Notes issued 1, 795 i 1,792 | 1, 793 ! 1, 565 260 547' : Dec. 1931 1932 403 531 ! i Includes a small quantity of subsidiary coin, amounting on Jan. 31, 1932, to 15,000,000 pesos. The figures of consolidated bank notes issued represent daily averages for the 4 weeks ended Feb. 6 and Jan. 9, 1932, and Dec. 12 and Feb. 7, 1931. The figures for notes deemed to be consolidated bank notes are as of the close of business on these dates. » Preliminary. BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of fiollnrs converted from Swiss francs at par: 1 Swiss franc—$0.1930] 1932 1931 Feb. 29 Cash on hand and on current account with banks Demand funds at interest__ Rediscountable bills and acceptances (at cost): Commercial bills and bankers' acceptances __ _ Treasury bills Total . 1,238 15,887 ; 3,343 ! 30,295 i 1,311 10, 892 84,588 ! 27,510 | 78,458 19,370 82,866 • 33,708 , 112,099 j 97,828 116,575 . .; 50,261 42,680 | 45,057 I 189,923 i- Total . Other resources Total resources J j 21,229 • 21,265 ;. 160 j j 161 ! I 21,389 ! 21,425 ! 1,827 '• 2,011 i Feb. 29 ! Jan. 31 Feb. 28 Feb. 28 Jan. 31 "I" 139,662; 42,680 j 45,057 Time funds at interest: Not exceeding 3 months Between 3 and 6 months. Total Sundry bills and investments: Maturing within 6 m o n t h s . . . Between 6 months and 1 year Over 1 year _ 1931 Liabilities Resources 30,867 7,173 38,041 2,440 ; 195,120 j 199,960 i 359,181 Short-term deposits: Central banks for own accouLt— Demand Time— N o t exceeding 3 months Between 3 and 6 months Total.. 62,063 | 60,897 61,002 . | 30,567 I 30, 768 ; 107,150 !_ _._;__ _.| 1.099 ! 92,630 j 91,665 j 169.251 Central banks for account of others— | 11,878 ! 14,995 ! Demand. Time4,114 !! 6,854 ! Not exceeding 3 months.. Between 3 and 6 months. -I TotaL. 36,761 29,041 41, 477 i 15,992 \ 21.849 j 107.278 : Other depositors— ; Demand ! 1,146 !j 1,144 Time—not exceeding 3 months ; Long-term deposits: | ; Annuity trust account 29,677 j 29,677 . German Government deposit : 14,839 : 14,839 • 13,219 I French Government guaranty fund...! 13,249 29, 770 14, 885 13, 273 Total.. Capital paid i n . i 57,765 __; 20,941 57,765 i 20,941. | 57,928 19,855 Reserves: Legal reserve fund Dividend reserve fund General reserve fund Other liabilities j : [ __: 108 211 422 5, 854 3,138 .: 195,120 j 199.960 359,181 Total liabilities : 108 211 422 5,905 44 1, 688 260 FEDERAL RESERVE BULLETIN APRIL, 193? CENTRAL BANKS [For explanation of these tables see BULLETIN for February, 1931, p p . 81-83] i i i ; Bank of England Coin Millions of pounds sterling: 1931—Jan. 28 Feb. 25 Mar. 25. Apr. 29 May 27 June 24 July29_ Aug. 26 Sept. 30 Oct. 28 Nov. 25 Dec. 30 1932—Jan. 27 Feb. 24 Mar. 30 I Resources of banking department ; Gold (in I; issue j Cash reserves i depart; ment) » ; - 139.5 140.8 i 143. 6 ' 146.3 151.0 162.9 ! 132.0 133. 3 , 134.8 • 135.7 120.7 1 120.7 120.8 120.8 i 120.8 i .7 .8 .9 .9 1.1 1.1 1.3 1.3 1.3 1.3 1.0 .6 .6 .6 .0 Notes 52.7 53.2 54.8 56.5 56.2 70.1 32.7 58.0 52.6 54. 6 41.3 31.6 49.9 49.4 35.3 Liabilities of banking department Note ! circulai Discounts: tion Securi- ! ! and | 1 advances Deposits , Bankers' j Public 346.8 347.7 348.8 349.8 354.9 352. 8 359. 4 350.3 357.2 356.0 354. 4 364.2 345.9 34'i. 4 360.5 j j j ! ! | ! ' I ! i 55.2 ! 59.1 ; 57.7 j 48.9 54.8 ' 61. 6 ' 55.8 ! 53.6 ! 62.6 i 63.5 59.8 126.4 74.3 : 67.9 : 54.6 • Resources Bank of France : Foreign Domestic Security 1 exchange • bills | loans Millions of francs: 1931—Jan. 30 Feb. 27 Mar. 27 Apr. 24 May 29 June 26 July 31 A u g . 28Sept. 25 Oct. 30__ N o v . 27_ Dec. 30 1932—Jan. 29 Feb. 26 M a r . 2f)P -, __• .-! ' ! ! _.. ; - _ _ _ _ -j • _ _ ! i i 55,510 I 65,924 ! 56,116: 55,616! 55,634 56,426 1 58,407 58,563 59,346 j 64,648 67,844 j 68,863! 71,625 i 75,059; 76,832 : I 26,323 26,316' 26,307 26,305 26,160' 26,209 26,242 27,611 25,194 27,600 24,273 21,111 18,805 15,127; 12,032' 9,463 . 8,250! 7,084 i 6, 502 I 6,190 ! 5, 576 4,56-1 : 5,820 i 5,880 '• 8,809 7,766 i 7,389 : 6,555 j 5.544 • 4, 820 i 2,866 2,801 2,858 2,795 2,806 2,779 2,860 2, 729 2,754 2,712 2,731 2,730 2,744 2, 707 2,716 ; Millions of reichsmarks: 1931—Jan. 31 F e b . 28 M a r . 31 A p r . 30 M a y 30 Juno 30 J u l y 31_ _ Aug. 31 ___ Sept. 30—_ Oct. 31N o v . 30 Dec. 31_ ___ 1932—Jan. 30_ _ F e b . 29 Alar. 31 _ _._ ; i ! 2,244 2, 2S5 2,323 2,368 : 2,390 ,421 ,363 ,306 • ,301 li 145 1,005 984 948 928 879 Deposits Negotiable securities « Other assets 5,199 5,199 5,0S2 5.0S2 5,082 5,082 5,065 5,065 5, 065 ' 5,065 : 5,065 7, 157 ' 6,899 : 6.882 , 6,881 ; Note circulation 78,559 6,898 78,947 6,982 77,864 7,026 7,134 ' 77,231 78,185 7,310 76, 927 6,807 79,862 8,958 78,635 8,193 78,173 8,099 83, 639 8,428 82,543 8,647 85, 725 8, 545 84, 723 8,278 83, 189 8,329 81, 782 8,371 Govern- j ment j 13,844 13,339 11,773 11,680 9,940 8,513 9,303 9,470 7,357 8,227 7,170 5.898 4,722 3,637 3,526 checks) 76 142 45 25 74 249 38 124 = : I • 56 . 98 : 33 44 59 1,942 : 1,979 1,951 : 1,816 ! 1,791 2, 579 3,273 3, 101 j 3,545 4,010 3,901 4,144 3,632 3,324 3,258 Other Other liabilities 11,659 I 10,963 I 12,577 | 12,062 i 12,669 I 15,187 14,736 I 17,649 ! 18, 542 ! 22,954 j 24,171 22,1S3 I 23. 552 i 24.899 | 24, 962 I 2,19S 2,221 2,260 2,462 2,394 2,250 2,195 2,227 2,266 2,441 2,442 1,989 1,910 1,925 1,980 Liabilities Securities 199 166 188 157 180 300 246 356 139 131 170 172 145 149 142 18.1 18.2 18. a 17.7 17.8 17.9 18.1 18.2 18.3 17.7 17.8 18.0 18.1 18.2 18.2 Liabilities Reichsbank exchange ! Other -j liabilii ties I 33.4 ! 33.3 ; 33. 7 I 37.0 I 33.8 ! 33.5 33.7 48.7 52.6 I 52. 6 ! 38.1 I 40.3 ! 38.2 ; 32.2 34.4 ! 19.4 16.2 9.5 17.7 17.4 25.2 15.2 26.3 I 30.1 I 17.3 ! 27.0 ! 7.7 i 15.3 i 14. i ; 27. 2 ! Resources Gom Other 174 301 274 287 107 355 347 208 301 240 254 245 158 303 290 103 102 103 103 103 103 103 103 103 103 : 103 : 161 161 102 362 : Other assets 676 638 66S 721 936 958 972 1,010 903 980 1,065 1,098 1,100 1,044 Note I circula- j Deposits tion ; 4.383 i 4, 428 4,456 . 4,340 : 4,299 4,295 ! 4,454 : 4.384 • 4,609 ' 4,746 . 4,641 4,776 4,407 4, 268 4,231 267 325 j 387 •' 355 353 509 I 613 I 518 506 ! 755 ! 394 j 423 ! Other liabilities 831 832 775 749 731 1,074 1,251 1,251 1,306 1,326 1,323 1,338 1,373 1,318 1,226 1 I n addition t h e issue d e p a r t m e n t holds G o v e r n m e n t a n d other securities a n d silver coin as cover for t h e fiduciary issue, which is fixed b y law a t .£200.000,000. Since Aug. 1. 1931, however, an increase of £15.000,000 in t h e fiduciary issue (and securities held as cover) has been authorized b y t h e British T r e a s u r y u n d e r section S of t h e Currency a n d Bank Notes Act, 1928; t h e m a x i m u m period for which such authorization m a y b e granted is two years. 2 Issued b y t h e i n d e p e n d e n t office for retirement of public d e b t (caisse a u t o n o m e d ' a m o r t i s s e m e n t ) . 261 FEDERAL RESERVE BULLETIN Al'KlI., 1932 CENTRAL BANKS—Continued [Figures are for last report date of month] 1932 Central bank j 1931 , Feb. I Jan. ! Dec. j Feb. Central bank 1932 Feb. 1931 Jan. • D e c . F e b . National Bank of Albania (thousands Central Bank of China—Continued. of Albanian francs): Deposits—Continued. J 0,235 4,939 | 5,094 1,914 Other.. (Sold 20,780 ' 24, <J49 27. 780 _| 58,859 Other liabilities Foreign exchange.-•". 4,475 4, 532 3,495 Bank of the Republic of Colombia Loans and discounts _;. 5,427 ! 7,133 4. 500 (thousands of pesos): Other assets 15,143 12,512 11,488 ; 11,809 0,601 9,129 Gold at home j 7,103 Note circulation ;. 7,179 17,000 !10, 399 12,030 7, 626 4, 649 Gold abroad j 0,459 Demand deposits '. : 13,445 12,479 13, 441 13,147 Loans to member banks __; 15,072 16,510 :, 18,228 Other liabilities. _._ 24,339 Commonwealth Bank of Australia Note circulation | 17, 587 17,617 20,578 7,708 (thousands of Australian pounds): : Deposits __ _ I 14, 214 14,289 • 10,809 Issue d e p a r t m e n t National bank of Czechoslovakia I Gold coin and bullion __ J 10,500 j 10,500 10,500 ! 15.380 (millions of Czechoslovak crowns): • : 1,543 25,758 40, 998 I 41, 745 ; 44,234 | 1,649 , 1,619 ' Gold ! 1,040 Securities 2,143 877 Foreign balances and currency j 940 : 1,060 | Banking department — 123 1,024 ; 874 Loans and advances ! 1,371 Coin, bullion, and cash 1,611 i 2,316 | Money at short call in Lon- ; Assets of banking oflice in liqui- !! ! ! 318 17,850 :j 15,570 13,795 I 0,477 ; 294 ! 290 don.. elation 290 C, 571 Loans and discounts ; 18,349 17,542 12,185 I 22,405 Note circulation j 0, 093 6,808 • 7,679 820 28,518 ! 28,010 28, 795 23, Ih3 ! 279 361 Deposits ! Securities 384 • Deposits • 09,095 ' 05,082 48, 483 54,921 I Danish National Bank (millions of i 45, 332 i 40, 500 49| 392 '39,058 kroner): '. Bank notes in circulation 172 145 149 144 i Austrian National Bank (millions of : Gold.— 90 28 26 36 j schillings): Foreign bills, etc _ ! 77 179 : 179 , 190 214 100 173 i 172 i Loans and discounts _ ; Gold 340 87 ! 79 j 137 102 I 321 . 325 I 347 i Note circulation i Foreign exchange of the reserve.-. 25 12 0 490 20 3S . 50 63 I Deposits _ | Other foreign exchange.. 114 Bank of Danzig (thousands of Danzig 877 , 884 908 | Domestic bills i 101 90 : 97 96 ! gulden): Government debt • 118 970 1,041 j 1,093 1,183 Gold i 21,819 21,821 21,825 Note circulation 10, 594 129 ; 113 128 . Foreign exchange of the reserve...:; 21,089 22,131 25,531 Deposits j 83 : 14, 654 3. 024 6,310 Other foreign exchange 6,212 i National Bank of Belgium (millions Loans and discounts.. ' 9, 702 10,220 ! 10,661 20, 313 ofbelgas): 30,196 40,841 44,012 Note circulation.._ 42,195 Gold . . . J 2,527 2, 534 2,550 , 1,410 994 Deposits. .' 9, 040 8,572 10, 263 0 9J2 0 0 Foreign bills and balances in gold.. 704 Central Bank of Ecuador (thousands !; 923 Domestic and foreign bills j 915 970 : ofsucres): 292 2S8 288 • 288 ' Loans to State . __.! 5, 051 Gold ; 5,605 5,625 5,663 3, 213 Note circulation ' 3,715 3,672 3, 054 8,628 9,904 ' 19, 394 Foreign exchange. ; 8,511 219 189 204 189 Deposits _ ; 14,001 Loans and discounts j 14, 224 14,244 14, 227 Central Bank of Bolivia (thousands : Note circulation •' 17,797 17,797 19,134 21.938 of bolivianos): : 14,102 Deposits j 8, 514 8,514 . 8,975 2, 794 Gold -j 3,375 3,358 3, 354 l Foreign exchange. _ • 23, 897 24, 048 23, 264 32, 022 National Bank of Egypt (thousands \ of Kgyptian pounds): I Loans and discounts \: 23. 131 22, 893 23, 207 21, 733 4.136 25, 429 25, 497 20, 026 29, 795 4,225 Gold I. Note circulation__ : 2,321 12.003 12,892 11,229 11, 044 2.857 Foreign exchange. . Deposits. _ 10,100 15,797 British Government securities Bank of Brazil (millions of milreis): '' 9. 506 7,580 Loans and discounts j. Gold '• 14,410 10, 280 Egyptian Government securities.:. 304 317 : 373 I 279 Currency 2, 843 3,203 Other assets . 133 129 234 114 Correspondents abroad. _ ' 19, 538 19,909 Note circulation 1,728 1,803 1,484 1,612 Loans and discounts Deposits— ! 170 ; 170 170 : 170 Note circulation. • : 4,774 5,988 Government 1,879 i 1,807 1,012 ! 1,657 Deposits.. : 17,888 15,805 Other National Bank of Bulgaria (millions : 7, 919 7. 497 Other liabilities ...j of leva): 1,402 ! Bank of Estonia (thousands of Gold. . . ! 1,512 • 1,512 i 1,511 i krooni): j -8 : 231 j 70 ", 116 ' N e t foreign exchange in reserve..! 0, 529 Gold j 7, 310 : 7, 307 0, 559 317 ; 087 ! 333 !I 405 : Total foreign exchange : Net foreign exchange ' 13,007 14.244 ; 14,933 15,972 708 . 099 C55 ! Loans and d i s c o u n t s . _ • 852 ': 23,457 22, 703 21, 102 22,430 Loans and discounts : 3,004 ! 2,0f-5 i 2,905 ! 3,029 J Government obligations : 34,487 34,437 i35,159 34, 902 Note circulation _ 3,029 . 2,072 . 2, 730 ! 2,919 • Note circulation.-_ ; Deposits— j 1,514 . 1,448 1.4*5 I 1, 590 Other sight liabilities.. 4,378 : 5,083 ! 6,005 ! 0,085 Government Central Bank of Chile (millions of 5,571 ! 5,206 i 4,494 5.784 • Bankers... pesos): 2,8*9 ; 2,856 : 3,434 I 2,057 Other _ 02 07 67 : 67 ! Gold at h o m e . . . _ _• Bank of Finland (millions of Finnish 98 204 108 128 • Foreign exchange marks): 157 85 173 222 . Loans and discounts 30l 301 Gold... 301 331 321 319 301 Note c i r c u l a t i o n . . Balances abroad and foreign Deposits against which reserve . credits 740 420 413 44 90 is h e l d . . - 250 • Foreign bills 191 247 204 : Central Bank of China i (thousands 099 900 972 1.085 Domestic bills _ of Yuan dollars): Note circulation 1, 305 1,271 1,220 . 1 , 293 22, 420 Gold. 180 374 234 202 Demand liabilities.. 37, 245 Silver Bank of Greece (millions of drach12, 189 Due from banks abroad mas): 30, 040 Due from domestic b a n k s 515 809 869 809 • Gold 35,319 Loans and discounts ._ Net foicign exchange in reserve.. 4,119 484 ; 772 :..1,047 2,327 Securities. 3S. 837 Total foreign exchange 037 ". 906 1,2 0 8 • 2, 040 Other assets 20, 974 Loans and discounts.. •" 82o ; 830 . 533 336 N o t e circulation. 3,150 ! 3,151 : 3,120 3,389 Government obligations Deposits3 , 7 3 9 • 3,797 ' . 4, 003 4,417 Note circulation SO, 902 Government Other sight liabilities 495 : 585: 702 2, 088 13, 233 Bonk i Items for issue and banking departments consolidated. 262 FEDERAL RESERVE BULLETIN AruiL, 1932 CENTRAL BANKS—Continued [Figures are for last report date of month] 1932 ;f 1931 Feb. Jan. i Dec. I Feb. 1931 1932 .1 Central bank Central bank Feb. • Jan. Dec. Feb. i Central Bank of Guatemala (thousands of quetzales): Gold coin Balances abroad Loans and discounts Other assets Note circulation-. .; Demand deposits. _ i Other deposits _ : Other liabilities I National Bank of Hungary (millions of pengos): Gold Foreign bills, etc. Loans and discounts _ Advances to treasury Other assets : Note circulation Deposits Miscellaneous liabilities Bank of Italy (millions of lire): Gold at h o m e . . Credits and balances abroad Loans and discounts i Total note circulation Public deposits Other deposits._ Bank of Japan (millions of yen): Gold ; Advances and discounts Government bonds _ Notes issued Total deposits Bank of Java (millions of florins): Gold Foreign bills Loans and d i s c o u n t s . . Note circulation .. Deposits.. _ Bank of Latvia (millions of lats): Gold —Foreign exchange reserve Bills Loans Note circulation Government deposits Other deposits _ Bank of Lithuania (millions of litas): Gold — Foreign currency Loans and discounts Note circulation Deposits • Netherlands Bank (millions of florins): : Gold Foreign bills _ ... Loans and discounts _ Note circulation _ Deposits -_ ' Bank of Norway (millions of kroner): Gold...„ Foreign balances and bills. Domestic credits... Note circulation Foreign deposits-. Total deposits Central Reserve Bank of Peru (thousands of soles): Gold Foreign exchange Bills ._ ; Note circulation. Deposits _ _ Bank of Poland (millions of zlotys) : Gold at home Gold abroad Foreign exchange of the r e s e r v e Other foreign exchange Loans and discounts _ 1 Bank of Poland—Continued. 1,151 1,152! 1,218 j 1,284 Note circulation 37 21 32 I Current account of the treasury.. 10 I 132 171 Other current accounts „ 201 204 ! Bank of Portugal (millions of escudos): Gold 290 : 286 i Net foreign exchange and other 691 reserves... 0) Discounts and advances 345 346 413 Government obligations 1,058 1,058 1,531 2,062 Note circulation _ 1,975 1,871 100 148 102 j 100 Other sight liabilities 407 279 0) 15 27 National Bank of Rumania (millions 16 ! 16 390 243 441 ' of lei): 425 55 00 58 i 5, 909 5,350 58 Gold at home 5,931 5,903 10 22 27 i 3,004 13 Gold abroad 3,769 3,769 : 3,919 383 400 423 : 81 1,270 416 Foreign exchange of the reserve.. 527 84 90 38 22 65 126 I 97 Other foreign exchange 6 17 i 81 39 13,000 13,246 13,857 i 8,001 66 i 72 Loans and discounts.. State debt.__ _. 3,707 3,767 3,810 I 5,617 22,542 I 22, 713 23,755 ;| 18,105 5,626 I 5,626 j 5,626 ' 5,300 Note circulation 4,200 ! 4,446 5,054 1,725 1,935 ! 2,170 4,037 Demand deposits 4,417 5, 098 South African Reserve Bank (thou5,755 . 5,311 j 5,665 13,938 i 13,971 i 14,295 15,129 sands of South African pounds): I 300 300 300 • 300 Gold I 7,535 8,172 j 8,104 :• 7,091 1,703 i 2,049 ! 1,770 2,337 Foreign bills ! 73 53 I 41 ! 7,272 323 Domestic bills 2,492 2,949 ! 3,688 i 431 • Note circulation | 7,710 8,116 I 8,799 | 8,190 431 470 83C Deposits— j 940 !i 1 004 1,051 743 1,277 ! 1,517 Government. „ 1, 353 1,180 110 143 218 130 4,267 | 5,933 Bank 4,180 1,094 j 1 187 1,286 1,188 4,618 167 429 ! 407 290 628 533 = Other.._ 353 59 Bank of Spain (millions of pesetas): 2,249 119 2,416 112 2,247 . 113 ! 113 Gold 2,248 534 i 29 713 5 517 : 9; Silver —. 526 27 j 280 I 50 113 58 : 281 , 56 1 Balances abroad 284 56 ! 2,904 i 3,084 240 2,037 3,149 i Loans and discounts 225 . 225 i 230 4,948 • 37 4,089 27 4,949 i Note circulation 4,923 28 i 33 I 795 1,098 i Deposits 1,013 ; 1,083 24 Bank of Sweden (millions of kronor): 33 ! 32 31 240 13 200 . 13 i 206 ; 206 Gold—. 353 84 90 ' 75 I 78 85 54 . Foreign bills, e t c . 223 71 504 . 57; 59 527 586 , Loans and discounts 545 47 520 I 40 ! 41 526 583 • Note circulation._ 78 187 191 : 214 58 5 0 '• 177 '' Deposits 88 94 87 Swiss National Bank (millions of 39 ! francs): 59 : 50 I 39 50 50 ! 043 2,498 . 2,446 ! 2,347 Gold 27 ! 72 33 29 | 399 99 ! 104 I Foreign balances and bills 112 I 102 l 103 103 I 109 01 70 ; 99 : Loans and discounts 83 I 104 108 109 104 : 901 Note circulation | 1,505 1,519 I 1,609 ' 70 i 98 73 j 78 246 Demand deposits j 1,170 962 i 1,128 ! Bank of the Republic of Uruguay (thousands of pesos): 879 : 873 440 887 : 50,544 50,924 ! 50,299 Gold 84 ! 227 86 84 j Loans and discounts _. i 101,780 •' 102,923 '. 107,998 130 108 ! 1 7 5 i 188 Other assets : 33, 452 ! 32,999 30,181 803 1,008 984 j: 1,023 Note circulation . 80,395 i 81,031 ; 73,575 54 164 180 190 DepositsI 31,401 i 32,570 : 40,728 Demand. 154 • 154 140 155 ; 38,401 38,905 " 44,398 Time 15 23 16 16 i 1 Judicial and administrative.. 3,098 ! 3,141 : 3,447 239 182 250 ! 256 Other liabilities ' 32, 427 ! 31, 189 32, 329 303 i 311 : 287 334 State Bank of U. S. S. R. (note-issu2 2 2 ing department; thousands of 02 68 i 67 chervontsi): Gold 03,990 63,842 63,794 48,361 2,121 Other precious metals 2,227 2,184 2,280 : 59,705 63,107 Foreign exchange 4,018 4,478 4, 590 4,647 i 484 • 7, 540 Note circulation 203, 518 : 210,770 266,966 278, 441 I 12,914 19, 013 ; 54,620 02, 716 National Bank of the Kingdom of 0, 010 Yugoslavia (millions of dinars): | 7,706 Gold 1, 759 1,759 1, 758 ] 1,083 487 487 485 487: Foreign exchange.__ _ 200 290 425 ; 1,435 114 114 77 Loans and discounts 2,190 2,216 2,253 I 2,997 120 ! 69 88 214 Advances to State 2,233 2,180 51 1,799 ! 4,917 119 . 125 127 Note circulation 4, 770 124 4,945 5,172 j 939 084 Other sight liabilities _. 451 764 i 789 i 796 ; 699 417 1,982 015 0,298 1,137 0, 029 1,128 40 2,835 2,033 697 6,293 1,122 6,025 1,115 55 2,948 2,255 490 6,378 1,071 6,120 1,067 67 2,938 2, 079 1, 253 0,117 858 6,440 1,777 204 2,487 si SI Figures published previous to reorganization of bank July 1, 1931, are not comparable with current figures. •• 263 FEDERAL RESERVE BULLETIN APBIL, 1932 COMMERCIAL BANKS 1931 1932 Country Feb. Argentina (millions of gold pesos): Bank of the N a t i o n Gold I Other cash _ j Loans and discounts I Deposits j Other banks in Buenos A i r e s Goldi Other cash Loans and discounts ! Deposits i Canada (millions of Canadian dol- i lars): • Assets entirely in C a n a d a : Cash in vault i Cash in central gold reserves : Security loans Other current loans : Security loans abroad... ! Securities Liabilities entirely in Canada— . Notes in circulation ! Individual demand depos- : its Individual time deposits... England (millions of pounds sterling) : Cash in vault and at bank Money at call and short notice. Advances and discounts Investments Deposits France (millions of francs): Bills and national-defense bonds Loans and advances Demand deposits _ Time deposits .-. Germany (millions of reichsmarks): ; Bills and treasury notes.. , Due from other banks Miscellaneous loans Deposits ' Acceptances ...i Japan (millions of yen): Cash on hand. Loans.. '' Deposits ! Mar. • Apr. May June July Aug. Sept. 2 85 620 695 1 125 640 712 1 118 633 690 9 209 ! 173 910 • 912 1,043 : 1,020 9 172 910 997 9 j 180 ' 885 996 ! 9 202 871 990 , ! ! ! ! i 148 27 175 1,115 137 649 157 26 181 1,130 117 651 156 ' 29 .• 187 ; 1,139 98 • 669 150 28 182 1,127 108 695 147 26 163 1,126 105 694 131 [ 153 124 128 126 601 1,450 561 1,451 184 131 1,172 272 1,744 171 177 i 181 ! 106 112 • 128 1,156 j 1,132 1,178 288 286 : 283 1,750 ; 1,708 . 1,675 1 83 ; 606 | 706 ! ! 151 25 186 1,116 132 654 543 ' 1,436 579 1,445 187 115 1,208 293 1,782 181 112 1,1.59 295 1, 726 596 i j i 176 129 1,141 274 1,134 j 1,700 292 I 1, 698 22,930 21,869 IS I 21,098 ' 21,363 11,326 11,232 I 11,156 10,762 35,456 36,106 36,971 37,861 1,656 i 1,669 ! 1,623 j 1,601 2,497 946 8,225 10,729 f 580 : 1,453 . 1,456 : I • , • ' • 129 j ' i | ' 2.532 ! 2,529 ! 2,548 ; 956 . 981 i 857 • 8,144 ! 8,021 j 7,818 , 10,778 ] 10, (583 ! 10,395 657 '• 630 : 600 j 582 1 i 108 i 642 ! 706 i i I ! " 1 99 655 : 680 1 94| 656 j 662 j 194 857 971 9 199 843 971 1 i 91 j 681 663 i 7J 190 i 852 ' 966 | Oct. j Nov. : Dec. 1 90 708 661 Jan. 1 109 696 i 652 1 107 707 641 1 111 675 639 2 ; 194 ; 830 939 ; 2 203 817 1 200 821 936 Feb, i 2 I 186 847 947 147 I 28 i 157 I 201 159 24 i 25 27 167 ! 157 159 i 159 . 1,127 | 1,137 | 1,141 I 1,102 113 110 I 90 ; 91 ' 719 701 ! 678 j 696 175 26 135 1,082 83 i 694 176 22 131 1,071 66 I i | I 674 j 167 20 130 1,063 99 664 123 j 122 567 1,360 507 ! 1,368 I 490 1,390 181 118 1,131 281 1,700 177 116 1,128 268 1, 677 170 108 .1,093 264 1,621 22, 507 20,919 ' 21,153 20,242 "19,006 17,851 I 18,441 10,342 9,898 , 9,868 i 10,076 9,863 ; 9,797 | 9,697 37,938 36,642 •36,991 : 36,137 = 36,972 ! 37,019 ! 37,023 1,370 1,332 i 1,222 1, 564 1, 539 1,545 j 1,429 18,454 9, 041 36,196 1,179 1,914 686 7,699 9,277 816 274 277 i 274 i 332 j 361 2, 217 j 2,176 : 2,184 I 2,156 2,166 2,142 2,150 . 2,161 I 2,181 2,233 1,280 546 7,337 8,167 874 126 j 568 1,461 : ! 128 \ 140 131 594 • 581 1,456 ! 1,462 617 1,396 1,500 : 1,509 514 i 465 7,115 ! 6,884 8,060 ' 7,873 818 840 ! 134 ; 217 2,140 2,169 2,122 2,151 197 2,146 2,102 173 113 1,131 288 1,688 1,406 373 ; 6,837 ; 7, 500 891 i 170 ! 108 i 1,125 i 284 j 1,670 129 ; 1,431 345 6, 748 7,390 910 126 ; 146 140 l 124 2,171 i 2,208 2,247 i 2,283 ! 2,066 2,059 j 2,051 j 2,008 1,503 320 5, 935 7,276 903 130 2,228 1,954 e i Gold, Dominion notes, and subsidiary coin. Corrected. NOTE.—Banks included are as follows: Canada— chartered banks; England—nine London clearing banks; France—four commercial banks; Germany—six Berlin banks previous to consolidation of Dresdner Bank and Darmstadter und Nationalbank in February, 1932; live Berlin banks thereafter; Japan—Tokyo banks. 264 FEDEKAL RESERVE BULLETIN APRIL, 1932 DISCOUNT RATES OF CENTRAL BANKS Date effective i Bank Bank German Bank Nether-; Swiss NaReichslands ! tional ;ofEngof of Bank | Bank ; land France bank Italy In effect June 1,1930. June 21 _ July 10 :. Oct. 9 . Jan. 3, 1931 :.. Jan. 22 _ Jan. 24 :.. May 14 May 10 _•_, June 13 i. July 16 .'.. July 23..__ i July 3 0 . . . . ! Aug. 1 !. Aug. 12. |_ Sept. 2 i_. Sept. 21 i Sept. 28.-. j.. Sept. 29 i_. Oct. 10 L. Dec. 10 L. Feb. 18, 1932 ! Mar. 9 _ ._'. Mar. 10 1 Mar. 17. I Mar. 21. :. In effect Apr. 1,1932.-| Country Albania Austria Belgium Bolivia Bulgaria Chile.... Columbia Czechoslovakia Danzig, I Denmark Ecuador _ , Estonia 2K2. -1 ! 10 ! 15 10 8 j I" I I i ;- ! ! : ! ; '— I Finland i Greece. • '• 7 i i Rate Apr. 1 ! j Hungary i India. 3 In effect since— 8 I July 7 : Mar. VA- Jan. 7 I Aug. 9H! Sept. 6 I Oct. 6 Jan. 1,1931 18,1932 13, 1932 26,1930 29, 1931 25,1931 22,1932 Dec. 22,1931 Nov. Mar. Mar. Feb. 24,1931 11, 1932 13,1931 1,1932 7 i Feb. 13,1932 11 I Feb. 20, 1932 7 II Jan. 20,1932 , 3 8 !! Feb. 25,1932 country Japan Java Latvia Lithuania ' 5.84 ' 4MJ j 6 I 6 Mar. Mar. Oct. Apr. 12,1932 11,1930 1,1930 1,1930 Norway Peru Poland Portugal ! •: 5 I 7 ~y2 7 Mar. Sept. Oct. Aug. 3,1932 1, 1930 3,1930 10,1931 Rumania \ Mar. 4, 1932 Nov. 13,1931 July 8,1931 South Africa.1 Spain Sweden U.S.S.R...J Yugoslavia.... Feb. 19,1932 Mar. 22,1927 July 20,1931 Changes since Mar. 12: Austria—Mar. 18, down from 8 Lo 7 per cent; England—Mar. 17, down from 4 to 3>6 per cent; Italy—Mar. 21, down from 7 to 6 per cent. MONEY RATES IN FOREIGN COUNTRIES Germany (Berlin) England (London) Month 1931—February March April May June July__ August September October November December 1932—January February Bankers' acceptances, 3 months 2.56 2.60 2.58 2.24 2.09 2.58 4.28 i 4.74 ! 5.68 5.75 : 5.85 ' 5.52 j 4.63 ! | j 1 | __ : Netherlands ((Amsterd) dam) Switzerland Money for 1 month Private discount rate I Treasury bills, 3 months 2.37 2.56 | 2.57 I 2.21 I 2.10 i 2.44 I 4.21 I 4.57 ! 5.46 i 5.55 j 5. (;0 4.94 4.08 mone y Bankers' . allowance j on deposits 2.29 I 2.20 2.17 1.87 1.64 2.05 ! 3.59 ! 4.04 I 4.36 ; 4.96 4.27 4.20 3.84 i Money for . Day-to-day 1 month 4.88 4.76 4.65 4.65 6.05 17.00 18.92 7.99 8.00 8.00 7.33 6. 94 6.C7 2*2-4 4 4 4 4 4 -3 i^SuSt money ™t« 1.12 1.09 1.50 1.39 1.05 1.53 1.30 1.30 2.76 1.59 1.57 2.24 1.87 5.49 5.00 5.07 5.38 6.74 118.89 1 9.15 9.15 9.21 8.69 8.45 ; 7.8(5 7.81 , 6.31 6. 17 5.87 5.83 7.05 18.98 19.18 9.18 9.84 9.31 7.40 7.58 7.98 1.05 1.04 ! 1.61 1.55 1.07 1.40 1.22 1.21 3.07 1.72 1. 53 ! 2.37 J.69 1.00 .99 1.06 1. 12 1.12 1. 55 1.98 1.80 1.90 1.77 1.75 1.68 1.52 I Belgium (Brussels) France (Paris) Private I discount i rate Private discount rate Italy (Milan) Austria (Vienna) Sweden (Stockholm) I Hungary Month 1931—February March April.. May June July August._. September October November December 1932—January February \ : I I ; i ! \: • j i 2.31 2.25 2. 25 2.20 2.13 2.15 2.41 2.44 2.44 2.44 2.44 2.91 3.31 1.77 1.57 1.47 1.28 1.06 1.20 1.50 1.50 1.80 1.90 1.75 1.75 1.75 Money for 1 month Private ! Private discount , discount rate • late 5. 50 ,! 3% -4 5. i>0 \ 5.48 i 5. 25 ] 5. 25 ! 5.25 !.. 5.25 l_ 5.47 ' 7.50 .. 7.50 !.. 7.50 L 7.50 I. 6.92 i. -4Moi -4 4 1 j J 51-2-6 Prime commercial paper htt- "Vi l\h7 5'/2- 7 • 4M-5 4]4-o 4 -5 5H- 8 7\i-l0H' % -10H 734-10 7?4-10 1 Based on data for part of month, no quotations being available for remainder of month. Day-to-day! 5 -6 5 -6 5 -6 Loa ™J UP months Japan (Tokyo) I Discounted bills Call money : overnight 5.48 ' 5.29-5.48 : 5.29-5.48 : 5. 29-5.48 i 5.29-5.48 ; 4.93-5.48 4.93-5.48 i 4.93-5.48 4.93-5.66 ! 5.48-6.57 ! 5.84-6.57 ! 5.84-6.57 '•• "I" 2.02 2.74 2.02 2. 19 2. 19 2.74 3.65 2. 56 5.48 5. 66 6.57 6. 02 265 FEDEEAL RESERVE BULLETIN APRIL, 1932 FOREIGN EXCHANGE RATES [Monthly averages of daily quotations. In cents per unit of foreign currency] ! Month (gold peso =96.48) China (and Uong Kong) ^ $ a j Belgium Brazil Bulgaria' Canada (dollar i S ! ( b e l ^ (milreis (lov 1U)7) i 1 3 9 =0.72) °) 1 1 9 ) Colombia (peso =97.33 Chile (peso = 100.00) = 12,17) I 1931—March April.. May June July August September 78.0406 76.4029 ! 70.7121 __j 70.2524 _. 09.8840 _.l 64.5722 I 59.0948 51.9900 . . . 58.S403 58.5196 _ October November December... _ _ 1932—January... February.. March 58.2724 58.2204 58.2879 14.0552 : 13.9294 14.0508 i 13. 9039 14.0543 ! 13.9119 14.0457 ' 13.9242 14.0413 13.9453 14.0400 \ 13.9370 14.0388 13.9091 13.9158 13.9852 . 13.9510 I 13.9070 13.9400 ^ 13.9039 7. 8897 0. 7173 99.9789 ! 12.0032 7. 2008 .7174 99.9517 •12.0028 i 0. 0750 .7170 99.9449 12.0673 : 7.4991 | .7180 99.7201 12.0808 : 7.1937 .7183 99. 0007 12.0798 • 0.3093 .7154 99.0898 • 12.0549 ' 5.9099 . 7100 90. 2470 12.0430 . 5. 0202 .7127 j 89.1025 12.0090 i 6.1704 .7138 j 88.9914 .12.0750 6.2010 .7148 82.7004 : 12.0609 | 13.9518 : 13.9140 13.9510 ! 13.9384 13.9001 13.9301 6.1579 0.1720 0.2121 ! tn 1=100.00) ( June. July.. August September. October November December 1100.0238 ; 99.9248 99.9187 99. 9157 99.9124 2.9024 2.9019 2.9022 2.9021 2. 9005 99.9703 j _.! 99.9078 ' _. 99.9944 i 99.9913 2.9024 2.9021 2.9619 2.9625 2.9620 99.9170 ; 1932—January February March 99.9290 . i 99.9022 .100.0590 ! Ger,", j England j Finland j France ; m a n y :™; (pound : ( m a r k k a ; (franc j (reichsmfi 480.06) j =2.52) j =3.92) i m a r k i =23.82) IIC(upbeaso! ( 1931—March. April May. .7151 85.1301 • 12.0500 .7145 j 87.2930 : 12.0500 .7170 I 89. 4530 . 12. 0606 22. 793(5 22. 5646 22.0118 21.4575 22.4315 21.4301 22.0090 22. 8205 24.5833 23. 6010 485.8293 485.9803 486. 4039 480.4803 485.0052 | 2.51.77 2.5172 2.5172 2.5107 2.5150 3.9138 23.8072 3.9104 23.8105 3.9114 i 23.8030 3.9158 ] 23.7327 3.92 li ! 23.2782 :20.7292 485.7725 i 25.2630 453.1200 i 22.0209 388.9291 20.6700 j 371.9934 | : 18.5875 | 337.3707 | i i ; 2.9627 ! 18.8801 j 343.1210 2.9627 19.0192 | 345.6316 2.9028 20.0112 303.9304 2.514S 2. 5133 2.3082 1.9839 1.C938 3.9196 3.9257 3.9383 3.9201 3.9229 :2C7458 .20.7503 20.7738 20.7795 .26. 7340 ! 1.5036 ; 1.5014 \ 1.6015 ! 22. 7948 24.5297 22.4949 24.3312 . 21.8950 24.0131 21.4375 23.8226 22.4247 24.7295 21.3485 23.7830 ! 21.9100 24.1853 22.7019 24.0705 : 24.7240 I 20.0124 23.7323 24.8704 96.5700 96. 5700 96.5700 96. 5700 96.5700 96.5700 90.5700 90.5700 90.5700 96. 5692 23.5237 : 32.0357 : 23.6900 24.4090 I 33.1449 24.3587 23.9969 j 32.8001 23. 9213 24.8390 : 95.6656 95. 2400 25.3353 95. 2400 24.0855 Greece Italy i J a p a n (lira i (yen = 5.26) ! =49.85) mS = 1.30) I I ; 23.6575 23.4212 ! 23.2395 ! 23.6777 | 23.6192 ; ! 3.9294 •, 23.6475 3.9379 ! 23.7392 i 3.9325 23.7812 : 31.5980 31. 0951 30. 2520 29.5980 31.0097 29.7255 30.0004 31.8314 34.0732 32.8054 ; (pcn == ^ > (rupee - ) =36.50) 17 49 1.2915 :17.4411 , 36.0805 1.2943 .17. 4308 ! 30.1028 ! 1.2949 17.4370 36.1423 ! 1.2951 . 17.4450 35.9980 j 1.2939 . 17.4433 35.9805 5.2383 i 49.3656 5.2360 i 49. 3001 5.2353 ! 49. 3813 5. 2348 ! 49. 3740 5. 2300 j 49. 3550 1.2936 •17.4515 i 35.9425 1.2920 17.4490 33.9117 1.2883 17.4040 28.6799 1.2879 17.4070 27.9874 1.2879 17.4580 25.3612 5.2304 I 5.169Q . 5.1645 i 5.1518 ' 5.1094 49.3532 49.3351 49.2525 49.2968 43.4644 1.2877 ' 17.4500 • 25.8179 1.2875 17.4397 26.0329 1.2875 17.4353 I 27.3121 5.0-141 5.1799 ; 35.9866 34.3233 I Mexico (peso = 49.85) NetherN o r w a y ; Poland lands (krone J (zloty (florin = 26.80) : =11.22) = 40.20) RuPortugal mania (escudo : (leu =4.42) = 0.60) Straits SwitzerSpain Sweden Settleland (krona (peseta (franc; ments = 26.80) = 19.30) = 39.30; (dollar -') Uruguay! Jg** -%!42)i $ £ £ -103.42), =17(J) i 1931—March April.. Mny June _ July August September. October... November... December _ 1932—January February March • 47.3546 47.4843 48.0200 49.0305 49.0109 .3 30.0269 : 33.4081 36.5878 : 39.1304 ' 39.0080 40.0869 ' 40.1391 40.1847 40.2142 40.2775 40.3182 40.2077 • 40.4250 40. UJIO 40.2;«8 20.7501 20.7530 20.7701 26.7801 20.7340 20.7328 25. 3982 22.0737 20.5103 18.4831 i ! i ! | 11.1931 11.1929 11. 1950 11.1990 11,1991 11.1070 11.1<»78 j 11.1955 I 11.1903 ! 11.1902 4.4823 i 4. 1782 4.4918 -1.4234 4.4102 4.4210 4.4232 : 3.9271 3. 0401 3. 2302 39.3294 37.8712 ; 33.6841 40.1828 40.3479 40.2799 18.6969 ! 11.1934 18.7701 i 11.1890 19. 0003 ! 11.1770 3.1042 . 3.1S30 3. 2832 0. 5947 10. 7298 . 5942 10.473(5 .5913 : 10.0001 9.6749 . 5949 .5943 : 9.3139 8.79fi4 .5930 8.9839 . 5936 .5953 ; 8.9031 .5900 " 8.0137 . 5959 8.3992 i i : i | ! i i 50.0015 56.0402 50.0348 50.0432 56.0193 56.0044 53.5566 45.1250 43.13S6 39.0313 8.3945 39.6C00 .5951 .5950 i 7.7071 39.7745 7. 5993 41. 3333 .5958 26.7775 ' 26.7758 ' 20. 8070 20.8045 20.7558 20.7487 26.0857 23.1140 20.7378 18.7098 : 19.2429 73.3617 19.2559 67.7199 ; 19.2845 01.4301 ! 19.3956 58.5356 i 19.4309 54.2652 j 19.4862 40.0147 19.5096 41.9251 • 19. hOOO 31.8908 i 19.4032 45.0027 i 19.4805 44.5487 i 19.1888 :19. 5074 41,9i.ro I 19.2922 19.4901 40.1521 i 19. 8540 19. 3105 47.0700 ! 1.7587 1.75S5 1. 7003 1.76S5 1.7665 1.7694 1.7653 1.7734 1.7856 1.7796 1.7784 1. 7803 1.7753 i Silver currencies—March parities: Mexican dollar, 23.51 cents; Shanghai tael, 32.41 cents; Yuan dollar, 22.99 cents; Hong Kong dollar, 23.33 cents. Figures given for parity represent gold value of unit in March, 1932, computed by multiplying silver content of unit by New York average pricea of silver for March, 1932, which was $0.29916 per fine ounce. Straits Settlements dollar is legally equivalent to seven-sixtieths of one English pound—March parity, 42.46. Figure given for parity represents seven-sixtieths of avorage quotation of pound in New York for March, 1932. i Beginning with August, quotations aro for silver peso. NOTES Figures given in parentheses for each country represent the par of exchange of the monetary unit. Averages are bised on noon buying rates for cable transfers in New York. Back figures—See BULLETIN for January, 1932, 1931, 1930, 1929, and 1928. 266 FEDERAL RESERVE BULLETIN APRIL, 1932 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES SECURITY PRICES 1 Index numbers except as otherwise specified] Bonds Month United States (average price) Common stocks (1926 average=100) Germany England France (December,! (1913 aver- j (average 1921=100) ; age=100) ! price) Number of issues. 60 1930— February... March April., May June July August September.... October November,.. December.. 96.4 97.8 97.9 97.9 98.2 98.7 99.6 100.0 99.9 99.1 97.8 110.1 I 112.7 | 112.7 | 111.4 110. 0 ! 112.3 i 111.9 ! 112.0 ! 113.1 i 112.8 i 112.5 ! .3 95.8 95.5 95.3 95.8 95.7 96.6 96.4 95.4 94.7 94.1 1931- -January February... March April _. May... June July August SeptemberOctober November.. December.. 99.6 ! 99.4 ' 100.0 I 99.6 ! 99.7 99.4 99.4 98.5 95.6 j 89.4 i 89.0 I 8i.6; 112.8 109.7 111.6 111.3 j 110.8 • 111.1 j 111.2 I 107.2 | 103.5 ! 104.2 : 104.8 | 102. 2 j 95.7 97.1 97.9 99.0 98.4 98.8 1932—January... February.. 81.0 j 80.3 ; 104.7 I 106. 5 I 87 165.5 172.4 181.0 170.5 152.8 149.3 147.6 148.8 127.6 116.7 109.4 84.0 84.3 85.9 87.4 86.4 83.9 109.9 109.2 111.1 108.0 101.8 103.1 98.4 101.1 95.4 94.1 89.0 110.6 109.2 112.1 111.7 106.8 100.9 94.8 1.9 87.9 84.7 80.0 205.6 205.2 208.6 198.3 187.6 188.8 182.0 182.4 169.5 162.2 149.8 77.8 79.2 73.8 67.2 75.6 74.7 68.1 i Approximate number; series originally included 208 issues, a Computation suspended because of closing of the exchange. Stock price series for England, France, and Germany have been converted from original bases to a 1926 base. Back figures—See BULLETIN for February, 1932, and sources there cited. WHOLESALE PRICES—ALL COMMODITIES Month United Canada England France ! G e r m a n y Italy States (.1926=100) i (1926=100) (1913=100) (1913 = 100) :(1913=100) (1913=100) i 1930—F ebr uar y. _. March April May June July... August September.. October.... November.. December.. 91 90 90 89 87 84 84 84 83 81 80 94 92 91 90 88 86 84 82 81 80 78 128 125 124 122 121 119 118 116 113 112 109 567 j 558 j 548 i 556 552 551 541 ; j ' ; 1931—January February... March April May June July August September.. October November. December.. 78 77 76 75 73 72 72 72 71 70 70 69 77 76 75 74 73 72 72 71 70 70 71 70 107 106 106 106 104 103 102 100 99 104 106 106 541 538 539 540 520 ! ; i ' • 1932—January.. February. 67 69 69 106 105 » Kevised index of the Bureau of Labor Statistics (784 price series). Japan ; Nether(Oct., i lands 1900=100) j(1913=100) 129 126 127 126 125 125 125 123 120 120 US 408 400 396 389 382 375 379 374 364 361 350 200 196 193 189 181 177 176 342 338 339 337 332 327 324 322 319 322 320 319 15S 158 158 158 154 442 115 114 114 114 113 112 112 110 109 107 107 104 439 446 100 100 317 311 546 540 ! 558 560 518 500 488 473 457 447 ' : 1 ! ! I j ! 172 165 162 . 161 151 , 153 152 150 147 147 151 160 101 ; 126 122 122 118 118 115 114 112 111 110 107 iO5 104 103 102 102 100 97 94 91 89 89 85 S4 83 267 FEDERAL RESERVE BULLETIN APRIL, 1932 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued WHOLESALE PRICES—GROUPS OF COMMODITIES [Groups are those comprised in indexes shown in preceding table] England (1913= 100) United States (1920=100) i Month ; Farm : Foods 1 products ' 1930-February March April May Juno July August September October November December ] ! _ - ' : : ' • - : 1931-January February.. March April May June July August September October November December .._ _ J ; _ _ - : ....: : _. : 1932- January February.. _ 98 ! 95 96 ! 93 j 89 j 83 I 85 | 85 83 j 79 j 75 i 73 | 70 | 71 i 70 | 07 | 65 i 65 j 64 i 61 I 59 \ 59 56 53 51 Other commodities Franco (1913= 100) , Indus- li Farm Indus- AgriculFoods trial I and food trial tural i products ! products products products i Month 1931 j 1932 England (July, 1914=100) IndusInd ustrial trial raw and semifinished finished products products 82 | 124 122 ! 121 !j 119 117 | 115 ; 113 ! Ill j 109 ! 107 | 105 | 503 495 481 483 488 540 550 562 562 570 570 116 110 112 111 110 115 117 114 109 112 110 115 118 118 117 115 114 111 108 108 108 105 127 126 125 124 122 119 118 116 114 113 110 155 153 152 152 151 151 149 148 147 145 143 81 I 78 j 78 ; 76 j 74 ! 73 i 74; 75 , 74 • 73; 71 ! 69; 113 112 111 113 113 113 110 108 " 108 113 115; 113 . 104 I 95 i 95 | 100 j 102 102 I 580 575 581 592 566 571 541 528 508 489 482 491 107 106 107 108 109 107 105 103 101 99 99 95 102 100 99 97 96 95 97 96 94 95 94 91 108 106 106 105 103 103 103 102 100 99 99 97 142 140 139 138 137 137 136 136 135 133 132 130 65 : 63 : 114 114 101 I 101 : 490 511 92 95 90 91 92 91 125 122 103 ! 103 ! 102 i ioo; COST OF LIVING 1931 i j Germany (191314=100)* France (July, 1914=100) 1931 ' 1932 Provisions 135 ' 129 i 129 ! 127 127 ; 127 126 124 i 121 121 : 116 : RETAIL FOOD PRICES United States (1913=100) Germany (1913=100) 1932 1931 ; United States ! (1913=100) Month 1932 i 1931 1932 j England i! (July, 1914=100) ; 1931 ! 1932 France I Germany (Jan.-June, (19131914=100) ! 14=100)« 1932 1931 1932 1931 il January February March April May June July .._ August September __.' : ' , 133 127 126 124 121 118 119 ; 120 _.| 119 October... : November December j 117 __.: 114 119 109 105 138 ; 131 I 132 114 136 131 132 J15 134 131 129 j : 130 129 :I. 129 127 130 : 128 128 j 128 j . 130 i. 132 '_ 134 131 130 129 130 113 i . January February March April Ma lay.. 130 : 126 125 123 122 i 120 i; July August September.. October.. November December ' ; : _j I 131 'ZIZZZ |! JuneZZIIIIIIIIIII 128 125 121 J19 116 113 • i 116 i 114 ! ! ! 150 _ 146 I J 153 I 152 150 i 147 147 ! 145 147 145 145 145 146 , 148 147 __. 147 ' 120 L ! _| | . i 120 '.... ... i 115 ... L_. "". 108 j I 125 122 138 , 137 137 138 137 135 134 133 132 ! 130 ! i * Revised index numbers of the Bureau of Labor Statistics. 2 Average of October, 1913, January, April, and July, 1914=100. SOURCES: Wholesale prices—For original sources, see BULLETIN for March, 1931 (p. 159). Retail food prices and cost of living—United States— Bureau of Labor Statistics, Department of Labor; England—Ministry of Labour; Germany—Statistisches Reichsamt; France—for retail food prices, Statistique G§n6rale, and for cost of living, Commission d'6tudes relatives an cout de la vie a Paris. 268 FEDERAL RESERVE BULLETIN APRIL, 1932 FEDERAL RESERVE STATISTICS BY DISTRICTS, ETC. EACH FEDERAL RESERVE BANK DISCOUNTS, BY MONTHS DISCOUNTS, BY WEEKS [In millions of dollars] [In thousands of dollars] Wednesday series (1932) Federal reserve bank Federal reserve bank Mar. 2 ! Mar. 9 i Mar. 16 Mar. 23 Mar. 30 Boston.. New York Philadelphia Boston New York Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.-. Kansas City— Dallas San Francisco. _ I 37,289 Cleveland.. Richmond. Atlanta 179.0 121.9 121.7 36.4 48.9 79.9 22.0 14.3 I 38.6 14.6 130.5 34,071 : 32,012 35,938 129,675 132,856 ! 87,217 | 89,814 161,032 ! 137,476 125,736 j102,029 Chicago.. St. L o u i s . . . Minneapolis 37,223 138,178 77,257 121,755 ! 117,580 , 103,275 38,294 30,054 ' 31,166 47,803 ' 42,646 32,463 103,708 32, 585 32, 274 84, 794 32, 076 31, 981 ! 72,180 65,511 ! 54,684 i 20,045 ; 18,364 . 19,348 13,192 10,630 9,015 48,864 18,824 9,032 45,156 18, 465 9,287 Kansas C i t y Dallas San Francisco. 39,939 15, 348 135,189 38,207 : 33,524 15,097 ! 12,955 130,314 , 115,458 31,638 10,609 119,441 32,217 10, 243 116,378 Total.— 828, 402 747,979 : 660,792 665,583 633, 255 Total.. i I RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES [Amount in thousands of dollars] Average of daily figures Total deposits Total cash reserves Federal reserve notes in circulation i Reserve percentages Federal reserve bank 1932 1932 Boston New York Philadelphia.. Cleveland Richmond Atlanta. _ Chicago. St. Louis Minneapolis.. Kansas City.. Dallas San Francisco Total... 1932 1931 March February 122,802 844,854 121,611 148, 048 54,888 50,859 200,105 61, 012 43,143 69, 493 49, 541 148, 847 145,328 I 176,494 : 183,859 126,944 848, 019 1,042,095 ," 509,920 i 570, 725 120,2*2 149,580 " 200,172 , 204, 057 151,001 109,332 . 303,902 ! 312,482 57, 304 03,721 • 100,922 i 105,595 51,904 00,413 : 120,578 • 120,071 207,918 830,837 • 557,551 ! 570, 770 02, 090 92,822 ' 03. 210 71,714 43, 9*7 49,8 55 "' 09,201 ! 08, 603 71,5-44 83,105 ; 83,055 83,130 52, 245 59,220 ; 40,559 I 41,800 154,379 230,139 180,750 240, 240 129, 553 250, 383 139,307 180,212 80, 000 130,080 159,508 77, 250 48, 205 00, 004 20, 048 101,991 3,190,831 ;3,154,910 i3,276, 754 1,975, 263 |2, 014, 3972,442,522 2,605,485 ,2,003,844 1,400,0S2 March February 220, 929 987, 828 247,597 220, 940 228, 602 992,212 1,134,108 233,215 251,071 295, J11 322,802 108,613 ] 17, 697 107,917 107, 004 600, 779 415,111 105, 053 110,623 70,948 70, 490 92, 954 103, 284 52,901 53, 486 214, 207 i 296,416 102, 540 121,241 (569, 744 109, 532 75,979 94, 437 53, 224 214, 391 March March . March March 1932 1932 March ! FebruMarch ary 04.9 : 04.9 : 05.8 ! 70.7 i 81.9 ! 71.2| 07.0 i 61.9 ! 59.1 i 56.6 j 71.1 09. 0 50.7 03.0 00.7 62.5 78.8 67.6 03. 0 60.1 50.3 54.0 83.2 87.1 86.0 85.0 81.3. 87.4 84.6 78. a 71.9 69.0 62.1 85.0 69.7 67.4 84.0 73.8 i 09.8 j 1 Includes "Federal reserve notes of other reserve b a n k s " as follows: Latest mouth $14,334,000; month ago, $14,184,000; year ago, $14,449,000. 269 FEDERAL RESERVE BULLETIN APRIL, 1032 EACH FEDERAL RESERVE BANK—RESOURCES AND LIABILITIES, ALSO FEDERAL RESERVE NOTE STATEMENT, MARCH 31, 1932 [In thousands of dollars] Total Boston New phia Richmond Cleveland St. 1 ™ " " ! Kansas San Fran! Cisco Dallas RESOURCES Gold with Federal reserve 2,211,147 I1159,627 agents.. Gold redemption fund with 44,565 2,214 U. S. Treasury._ OVO ! 1 Gold held exclusively against Federal reserve ! notes 12,255,712 1161,841 Gold settlement fund with ! Federal Reserve Board 276,289 ;, 14,286 Gold and gold certificates held !j by banks • 487,702,; 19,787 513,217 193,300 230,970 9,073 6, 288 73,170 100,775 554,920 1, 797 5,078 522, 890 199, 588 236, 648 2,130 : 77,120 ' 60,945 4,595 I 2,103 ' 74, 967 102,905 559,515 79,223 64,080 j 33,260 ' 149, 763 495 , 2,719 j 61,440 967 5,906 66,799 ! 34,227 155, 669 136, 702 9,840 23,457 4, 047 6,255 , 42,453 5, 602 i 7, 802 = 6, 385 j4,414 321, 445 17,855 21, 770 7,108 9,254 j 28,066 12,186 i 2,495 13,182 15,046 3,575 27,979 86,366 ; 42,216 7,486 j 10,721 198,694 12, 610 Total gold reserves Reserves other than gold 3,019,703 195,914 j 215, 461 ! 21,105 Total reserves Nonreservc cash Is, 235,164 i 217, 019 1,039, 617 256,147 1299,001 ; 18,677 ^124,343 .656,995 j 108,081 j 77,191 I 93,852 I 52,937 211,304 20,149 ! 3,768 4,611 I 4, 387 ; 5, 264 ! 12, 743 | 3,904 ! 2,021 ! 2, 670 I 4, 068 • 6,388 | 77, 805 !i 7,832 Bills discounted: • Secured by U. S. Govern- j merit obligations | 315,837 Other bills discounted 322,713 21,733 14,558 638,550 67,557 36,291 2,672 : 327. 744 23,399 ! 84,398 5,703 : 459,490 ii 27,054 70 Total bills discounted.._. Bills bought.. ...J U. S. Government securities: Bonds Treasury notes Certificates and bills Total U. S. Government i : securities 871,632 Other securities 7,846 Total bills and securities. 1,585,585 Due from foreign banks _ 6,645 Federal reserve notes of other banks J 15,792 Uncollected items. _ I 354,059 Bank promises.— 57,853 All other resources._. „: 36,199 Total resources : 984, 037 227,283 1281,875 ! 86,122 118,414 630,034 97,011 71,737 55, 580 I 28,804 ' 17,126 ]' 12,555 i 5,929 : 26,961 j 11,070 : 5,454 89, 391 30, 508 45, 857 44, 247 48,305 42, 726 6, 278 25, 619 5,995 26,222 24,300 22,968 11,047 8, 204 1,080 6, 505 : 482 '72, 661 8,242 26,095 j 10,120 45,347 133,638 i 78,813 21,538 i 3,572 88,583 3,185 31,897 3,132 32,217 4,168 47,268 10, 215 19,311 2,675 9,322 ; 32,600 i 10,602 118,008 1,356 ; 3,058 i 2, 665 9,321 109,414 i 27,998 39,158 I 6,266 216,327 ! 38,296 29, 864 7, 772 7,560 1,174 47,378 ! 10,135 5,230 1,270 6,101 53,939 9,184 43,837 11,674 15,926 7,695 j 16,989 j 17,844 2,791 2,030 : 2,345 ! 1,724 ; 5,187 13,322 i 9,784 : 13,895 8,651 ! 24,710 56,156 200 364,899 72,560 84,802 6,181 i 1,377 95,319 536 526,256 '156,322 176,570 | 54,110 48,986 164,443 I 49,773 2,362 = 727 248 946 | 21 678 j 268 377 j; 40,858 i 3,336 : | 1,043 5,459 333 107,107 ; 29,943 14,817 j 2,651 13,941 ! 983 19,081 12,601 106,960 1,013 i 976 32,023 . 26,343 7,962 3, 609 1,796 5,039 1,112 9,428 2, 489 3, 749 27,787 ! 27,746 23,935 : 27,364 = 47,741 I 38,512 59,593 13 : 195 ! 40,631 . 175,070 188 463 i 2,383 j 868 | 778 952 212 • 1,329 44,428 13,618 : 6,182 ! 16,969 10,506 j 16,654 7,827 | 3,461 • 1,834 i 3,649 1,785 ! 4,433 3,411 1,575 ; 1,399 j 1,160 1,270 • 833 jo,369,102 1.366,320 1,729,708 1450,874 523,654 193,409 195,619 893,176 181,301 |127,930 179,040 jll 1,597 ' 416,474 Federal reserve notes in actual • . circulation.... _ 2,563,486 j 173,203 575,343 256,579 296,758 | 97,225 .118,032 544, 993 Deposits: j ji M e m b e r bank—reserve •. \\ account _ 1,923,533 I 116, 581 Government _ 29, 546 ; 2,161 Foreign bank i 30,630 ji 1,023 Other deposits _. 28, 397 j! 41 859,500 6,695 21,555 19,345 91, 365 j 68, 572 ' 81, 429 i 38, 531 : 221, 456 117,082 144,358 i 50,298 : 47,265 230,721 57,962 ! 40,971 | 1,770 1,987 ! 2,447 1,701 5,836 416 • 743 I 1,387 1, 360 : 539 j 498 1,804 471 i 296 ; 265 2,715 103 | 134 485 ! 635 • 259 67, 358 i 47, 568 137,869 913 i 751 I 4,126 391 377 : 929 57 j 43 4,315 Total d e p o s i t s . . . . Deferred availability items Capital paid in Surplus All other liabilities... 2,012.106 \ 119,806 : 907,095 120,504 150,420 i 349,448 : 40,789 103,971 j 29,482 31, 991 " 155,623 11,531 = 59,190 ! 16, 251 14,275 ' 259,421 ' 20,039 ! 75,077 j 26,486 27,640 | 29,018 952 ! 9, 032 1, 572 2,570 Total liabilities Reserve ratio (per cent)... 5,369,102 .366,320 1,729,708 ;450,874 ,523,654 193,409 195,619 1893,176 181,301 127,930 179,040 111,597 70.1 66.9 65.5 83.2 ! 71.6 69.6 i 62.5 i 60.7 I 70.7 74.1 FEDERAL RESERVE NOTE STATEMENT 416,474 57. a i : Federal reserve notes: : Issued to Federal reserve •• bank by Federal reserve ! agent j2,816,584 ; 193,581 Held by Federal reserve ! ! bank ! 253,098 20,378 In actual circulation % 563, 486 173,203 Collateral held b y agent as : security for notes issued to • banks: i i Gold__ 12,211,147 ; 159,627 Eligible paper ' 667,000! 36,600 I 53,387 i 49,598 244,846 ! 59,484 I 42,269 j 68,719 : 48,739 I 147,239 ' 24,944 \ 10, 069 43, 737 : 14,626 | 6, 283 \ 15, 904 j 10, 632 | 17,020 I 5,291 i 4,940 17,449 : 4,483 i 2,941 i 4,102 4, 024 I li; 146 ! 11,483 . 10,449 38,411 i 10,025 ! 6,356 ' 8,124 7,624 ! 17,707 1,079 j 2,531 3,740 . 1,318 1 1,509 : 762 2,047 i 1,906 j ! 640, 351 268,079 .314,293 106,085 134,080 596,743 ; 96,007 70, 018 , 92,169 \ 43, 664 I 261, 514 65,008 11,500 ' 17,535 j 8,860 j 16,04S 575,343 J256,579 \296, 758 51,750 ; 4,642 • i i 1,446 j 10,740 ; 5,133 i 40,058 97,225 118,032 |544,993 j 91,365 ! 68,572 j 81,429 | 38,531 j 221,456 513,217 |193,300 1230.970 ' 73,170 100,775 554,920 ' 77,120 144,307 79,110 | 88,584 , 33,508 33,892 52,886 19,847 : I 60, 945 j 64,080 \ 33, 260 i 149,763 9,193 ! 33,464 j 11,009 j 124,600 270 FEDERAL .RESERVE BULLETIN APRIL, 1932 ALL BANKS IN THE UNITED STATES ALL BANKS *—PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES, BY DISTRICTS [In millions of dollars; figures for nonmember banks are for dates indicated or nearest thereto for which figures are available] Loans and investments Loans Total Federal reserve district 1931 1930 1930 Deposits, exclusive of interbank deposits Investments 1931 1930 1631 1930 Rediscounts and bills payable 1930 1931 1931 j Dec. 31 Sept. 29 6,758 19,288 4,321 4,712 2,242 1,394 7,374 1,753 1,396 1, 662 1,037 4, 270 6,754 18, 953 4,137 4,249 r 2,167 1,328 6,236 1,675 1,303 1,520 970 4,072 Dec. 31 Dec. 31 Sept. 29 Dec. 31 4,065 11,856 2,313 2,700 ' 1,423 916 4,366 1,114 748 958 676 2,616 3,835 11,281 2,114 2,397 1,295 845 4,160 1,006 700 860 602 2,520 Sept. Dec. Dec. Sept. Dec. 29 , 31 31 29 i 31 Dec. 31 Sept. 29 Dec. 31 2,440 6,115 1,688 1,570 661 349 2,005 506 559 548 271 1, 362 2,690 7,097 1,824 1, 549 r 744 412 1,871 561 556 563 294 1,457 2,550 6,545 1,670 1, 374 719 398 1,875 535 520 549 293 1,453 6.312 17,894 3, 755 4,299 2,120 1,347 7,131 1, 678 1,429 1,736 1 055 4,281 6,269 5,897 17,028 16,298 3,520 3,171 3,852 3,354 1 983 :1,845 1,223 ! 1,153 6,016 5,856 1,570 1,442 1 293 j 1,214 1 549 i 4ns 928 866 3,921 3, 756 37 103 97 88 56 46 73 44 12 30 10 18, 074 '19,61.5 IS, 481 53,039 49,152 46 261 624 19 88 41 51 32 26 31 21 25 96 72 67 36 34 27 19 5 15 17 52 466 Dec. 31 ALL BANKS * Boston New York Philadelphia Cleveland Richmond ._ Atlanta Chicago St Louis Minneapolis Kansas Citv Dallas San Francisco _ _ - - Total— 6,385 4,319 17,826 13.174 3,784 2,633 3,770 3,142 2,014 1,581 1,045 1,243 6,036 5. 370 1,541 1,247 1,221 837 1,410 ! 1.114 766 895 2,907 3,973 43 114 106 90 r 60 50 71 40 12 27 26 59 j . . . . . . 28 56, 209 '53,365 50,097 : 38,135 '33,750 31,616 2,511 12,023 2, 733 3,419 1,154 989 4,809 1,154 851 1,147 822 3.246 2,432 11,515 2,740 3,203 1,137 900 4,238 1,109 821 1,064 776 3,077 2,185 10,565 2.558 2, 865 1,050 906 3,882 1,031 789 1,016 724 3,005 ! ' j 1, 750 8,300 1, 767 2,262 ! 842 726 : 3, 406 : 787 495 1 : 717 601 2,218 1,543 7,165 1,619 2,012 772 635 2,869 683 456 614 532 1,973 1,390 6,609 1,521 1,807 693 593 2,632 623 441 574 480 1, 898 761 3, 724 906 1,156 312 264 1,403 366 357 430 221 1,028 889 4,350 1,121 1,191 365 325 1,369 426 365 450 244 1,104 794 3,956 1,037 1.058 358 313 1,249 407 349 442 244 1, 107 2,317 11,035 2,339 3,114 1,074 944 4, 558 1,072 863 1,158 820 3,265 2 203 1.004 9.694 !0.27fi 2,286 2,090 2,884 2.500 1,027 944 863 817 3,989 3,616 1 000 932 800 773 1 044 980 2,941 2,854 5 16 6 19 34, 860 33, 073 30,575 : 23,870 20, 874 19, 261 10, 989 12,199 11,314 32, 560 29,469 27 432 355 4,248 7 265 1, S88 1, 293 1. 088 40") 2, 50;") 599 545 515 214 1,021 4, 322 7 438 1,396 1,046 1,030 368 1,998 566 482 456 194 995 2,522 4 691 694 688 ' 651 281 1,496 431 292 314 144 642 2,445 4 672 593 590 603 252 1.528 382 260 287 123 622 1, 679 2 391 722 4.14 319 86 601 140 203 117 19 331 1,801 2 748 703 358 r 378 87 502 135 190 112 50 353 1, 756 2 589 '633 316 361 85 626 128 172 107 49 340 3, 995 6 859 1 416 1,185 1,046 403 2,574 606 565 578 235 1,017 4,066 !3,934 7,334 j7,022 1,234 j 1,081 56 19,522 i 14, 264 '12,876 1 12,355 7,085 7,416 7,166 r 697 MEMBER BANKS Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas . ._ San Francisco Total 738 686 NONMEMBEK BANKS Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas Citv .__ Dallas San Francisco _ _ -. - _- Total 1 r r 21, 349 '20,292 4,201 7 261 1, 226 905 961 337 2,154 510 431 394 171 969 : 2,569 • 4 874 866 880 739 •. : 319 , 1,964 459 ! 342 I 397 165 690 i r r 907 • «-r>4 «01 956 361 ! 337 2 027 12, 240 570 | s i n 4<)3 441 505 428 190 ixft 980 902 20, 479 ' 19, 083 18,829 17 15 37 25 20 42 23 7 13 4 9 269 r 18 18 33 23 25 15 44 ! 21 7 12 9 8 '231 1 Includes all National and State banks (including stock and mutual savings banks) and all private banks under State supervision. Revised. Back figures—See BULLETIN for July, 1930, and January and July, 1931; also Tables 42, 43, and 87-90, Annual Report of the Federal Keservo Board for 1930. 271 FEDERAL RESERVE BULLETIN APRIL, 1932 ALL BANKS IN THE UNITED STATES—Continued ALL 1 BANKS —PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND SEPTEMBER 29, 1931, BY STATES [Amounts in thousands of dollars] Loans and investments Total State September!: Loans September' Deposits, exclusive I of interbank de- , September Total porting De- ! SepSeptem- cem! tember ; ber September New England: 429,964!, 412,876! 2.16, 91 li 226, 030j 105,965 203,934 377,319 Maine 297,719.. 294, 9511 141,438 143,867 153,513 153,852 266,666 New Hampshire 221,185! 226,344": 137,513 141, 008! 83, 67285,336 212,416 Vermont 3, 93S, 9271 4,219, 371 -\ 2,489,203! 2,676,730! 1,449,724 1,542,64 J 3,647, 507 Massachusetts 271,764! 254,217 273, 630 479,909 Rhode Island | 517,939 545, 394ij 263,692j 578,300 1,190,463 1,296,031. l,340,995|; 741,172! 762,695! 554,8591 Connecticut Middle Atlantic: New York 15,792,036! 16,808,546 10,095,738! 10,609,101! 5,696,2981 6,199,445 14 ,357,602 New .1 ersoy 2, 096, 306 j 2, 225, 984 ! 1,263,618: 1,339,701! 832,688! 886,283 1,986,893 4,830,616! 5,350,175 j 2,603,634; 2,873,044 2,226,982! 2, 477,131 4,021,8311 Pennsylvania East North Central: ; 1,981,674 2,256,611 1,406,97, 1,614,828; 64.1, 783 1, 838,408 Ohio 574,699 598, 729. 654, 569 454,193 200, 376 Indiana 196,114 402,615! 599, 443 957,160 1,011,208 2,537,136 2,712,360! 2, 992,65~ 1,755, 200 i 1,981,449 Illinois 4.88, 467 1,885,049' 493, 221 M ichigan 1,882, 439! 1,624, 527i 1,389,218-. 1,136,060; 284,201 268, 705 834,807;' 520,821! Wisconsin 789, 526 j 550, 6061 755,531; West North Central: Minnesota 824,971! 4-17, 607! 471,058: 325, 222 765, 901 772, 829! 353,913 547,197 160, 572 546,624 666, 298' 386,052:; Iowa 566, 7821 99, 516 968,445 400, 573j 410,206 996,174 1,070,181 j 595, 601 Missouri 653, 975 26,007i 74,182= 82, 198 i 48, 175! 75, 8281 North Dakota _ 54,88427,314 34, 950 88,803; 97, 969 ! 53, 853 • South Dakota 01,928. 36,041 89,137! 79, 98" Nebraska 245, 4931 287, 555 " .165,506; 202, 987i 84,568 236,7981 104, 564 Kansas 310,514; 205, 950! 319,103 213,359 105, 744 304,847; South Atlantic: Delaware 68, 431! 167,019! 137,0521 99, 439 95, 755 j 67, 580 164,186' 792,506]! 399,117; 710,521 Maryland 416,417 369, 930 j 376, 089 769, 053 257, 331 !j 151,496' 244,909 District of Columbia. 158,561 97, 5911 98, 770 249, 087. 481,652] | 350, 668: 378, 524: 104, 063i 3S9, 279 Virginia 103,128 454, 731 289, 494ij 193,118' 230, 724 220, 976 i West Virginia 60, 993 68,518 254,111: 214,614 North Carolina 62, 346 ' 69, 325 240, 429' ••285,383!! 178,083' ' 216, 058; 114,041 South Carolina 38,961 74,832| 87,984; 45, 226 113,793 251,697 G corgi a 75, 838 212,444' 87,313 269, 733299,757 i 11)3,895: 183,203 111,04' 111,244 182,447;! Florida 179, 622 68, 3781 71,400] I East South Central: Kentucky 317, 574: 403, 775' 412,748! 310,700 95,174 93,075 349,53l! Tennessee 280,910: 326, 577 67, 571 345,481' 259,006 64,571 297,065! Alabama.. 158,970] 207, 692 58, 673 218,392/ 149,019 59,422; 186, 4 87 j Mississippi 102,833' 120, 875 39,545 145, 520 • 81, 330] 42,087 j 121, 637; West South Central: 127, 019,! 32, 9541 31,540 100, 070 75,130 101, 007i Arkansas... 01,005 355,416 375,558!' 96, 572 99, 009 i 324,172 Louisiana 258,844 ! 275, 949 288,390 309,876 j 287, 0S3 Oklahoma 121, 947i 121,285: 188,591 166, 443, 781, 289 757,122. Texas 849, 567 593, 611, 255, 956! 520, 930' 254, 359: Mountain: 115,854! 109,415 ; 113,932 Montana 60, 530 55,325 54,090; 55,324 63,257:" Idaho 36, 985 32, 923! 60, 331 27, 408i 26, 272: 66, 305! Wyoming 35,085 32, 190 50,304 15,109 : 47, 305' 15, 279: 49, 026; 127, 290 108, 548; 117,562: Colorado.. 239, 900 226, 110: 112,670 239, 026; 19, 651 17, 843! New Mexico 32, 907 13,1071 30,950 13, 256 32, 503 31,831 28, 5791 59, 485 56, 59()i 27, 654 Arizona 61, 520; 28, 011: 97, 652 91, 708, 40, 281 Utah.. 133,936; 137, 933 1.07,172 42, 228; 25, 209 25,143! 33, 885; 34, 232 8, 742i 9,023 34, 408: Nevada. Pacific: 230, 929' 386, 394 422, 663; 248,707 155,465! Washington 173.956J 379,051: Oregon... 211,137 226,547 104,225 118,064; 93, 073 122,322 206.106 California 3,115,123 3,153,158. >, 027,458 2,082, 360 1,087, 665! 1,070,792. 2,927,215 __ Number of Investments 405,4131 271,179] 217,6871 3,911,569 512,818 1,234,111 15,000,722 2,112,770 4,488,325) 13.195 4, 04f 6,587 5,482 1,937 3, 363 57, 255 23, 233! 2, 050 j 8,735 22^544' 115 117: ioo: 118 119 100 444 35 231 425 351 219 160,634; 2 76,104 1,001 1, 043 79, 279i 46, 921 486 531 211,154 133,135 1,320 1,397 822 46, 422 742 10,861 30,839 1,294 590 21, 522 874 9, 285 872 803 1,415 028 899 2,159,959 657, 937 2,790,622 "• 602, '•'"" / W0811 1, 798, 218 102.134 14,901 39, 962 90,931 15, 957 800,811 686,093 1,040,231 84,540 97, 82,' 293, 55(. 316, 9S9 6,059 18,752 22,848 1,053 2, 499 10,991 10,046 4, 529 7, 903 12,006 1, 059 2,031! 6, 290 6,802 143,873 707, 434 260,194 426,543 262, 649 ' 200, soy I 131,556! 281,037 182,821 1,706 16,608 5,962 17,132 12,949 19,400 6,84-1 8, 742 2, 6b C 870 17,977 2, 349 11,337 11.4261 '14,522 4, 002 7, 500 2, 24* 49 202 39 402 215 284 113 322 18' 47 201 39 423 251 '317 136 342 193 355,942! 327,180; 191,180 133,863! 8,047 20,424 9,075 7, 523 7,989i 14,758! 10,234: 12,3531 511 400 257| 222] 513 430 265 245 117,001! 338, 260^ 311,075: 817, 705 0, 194! 20, 398i 9,902 ! 13, 545: 7,008; 275! 312 17,845 200 206 0,325 5 271 539 18,342 1,102 1,146 119,571 09,364; 50,440| 255, 84 71 33, 520 64, 275; 10S, 852! 35,111j •109,505 231.463 1 3,028, 732! 1, 270: 710i 1,056: 2, 385i 1,018 846 1, 224 832:. S.M,! 3,348! 55,020: 1, 5772,141 2,978! 1, 695' 932, 1, 995: 4,664 • l,938i 49,352 913 868 938 j 1,095 982 1,064 240 272 204 283 630 726 922 954 156 122 781 237 i ?s ii 32; 280197 393, 162 129 81 249 50 35 93 32 301 208 404 |SO, 096, 819'53,365, 258 31, 615, 975''33, 749,886 18, 480, 844 ' 19, 015,372:46, 260, 854 '49,152,22181,159,763!'-697,193i 19, 90S;'-21,204 _ __ I __ _ ; :_ i i I 1 Includes all National and State banks and all private banks under State supervision. Figures for State institutions are taken from page SI and represent in some cases the condition of banks as of dates other than Dec. 31, and Sept. 29, 1931. 2 Excess over figures shown on pages 272 and 273 is due chiefly to technical diilerences between reports to the board and reports to State linking authorities. ' Revised. Backfigures.—SeeTables 91-93, Annual Report of Federal Reserve Board, 1930. 272 FEDERAL RESERVE BULLETIN APRIL, 1932 ALL BANKS IN THE UNITED STATES—Continued ! NATIONAL BANKS —PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND SEPTEMBER 29, 1931, BY STATES [Amounts in thousands of dollars] Loans and investments Investments State Decem- i Septein- j December I ber ! ber December September Deposits, exclusive Rediscounts of interbank de- j and bills payposits i able N u m b e r of reporting banks J DecemVfi** ber Septein- Decem-jSeptem- Decem-i Septemlw\*« V«/\M ! Vw\*» ber ber ber ber ber I I New England: • 60,682! 111,214 57,731 64,777 68,523 122,508' 129,205 Maine.--30,675 57,777 38,822 41,251 09,497! 72,265 31,0141 New Hampshire 28, 780 53,045 33,688 35,087 (52,468 63.950 28,863 Vermont 378,743 440.382! 1,021,044 739,395 850,901 NI assachusetts , 1,118,138 1.291,283! 21,869 38.285 29,012 30, 948 50,881 53,389! 22,4411 Rhode Island i 78,057 217,314| 171,687 163,486 80,274| Connecticut 1 241.543 251,961 I Middle Atlantic: J 4,373.865 4,822,871 2, 747, 593 2,955,533 1,626,272; 1,867,338: 3,749,144 New York 437,796 475,032' 330,276 341,0431 721,842 New Jersey --i 768.072. 816,075, Pennsylvania ! 2,296,428 2,521,924j 1,281,091 1,387,860 1,015,337 1, 131,064 1,919,955: East North Central: 389,518 434,115 210,188; 22(5,643 541,032 599, 706' 660,758 Ohio — 178,529 190,387 110,833 289,362 113, 759 276, 857 304,146 Indiana 873,519 955,298 544,077 (500,485 329.442: 354,813 797,842. Illinois --838,485. 452,931: 616,475 299,153 222,01.0 153,778 835,933 Michigan --379,982; 403,889| 249,767. 262,553 130,215! 141,336 356,945 Wisconsin i West North Central: 497,53' 286,640 290,062 196,217i 207,475 466,595 482,857: Minnesota 116,946 130,984 81,9951 86,665 189,314 217,649 198,941' Iowa 242,065 237,325 160,4321 167,370 361,115s 404,695 402,497: Missouri 35,020 32,140 22,717! 55,805, 58,954 23,934 54.857 North Dakota 30,0(56 26,495 24,723J 50,246 55,337 25,271 51,218 South Dakota 100,219 112,717! 60,534! 172.594 59,877 150,377 160,753 Nebraska 96,94" 94,800 70,627' 71,509 160,747 165,427, 168,456 Kansas South Atlantic: 10,872 11.029 9,934 20,603' 20,963 9, 731 16,108 Delaware. 86,710 98,344 89.120 155,109 174,442 187,464 87, 73: Maryland 76,908 81,364 58,012 132,960 139,376 134. 519, 57, Gil! District of Columbia.-. 68,496 231,480 280,8(58 198, 536 212,372 267,884' 69,348; Virginia 104,584 38,748 110.3761 143,332 90,715 125.156 34,441: West Virginia 66,189 22,320 88, 509 54,375 57. 523J 72, 73li 18,356! North Carolina 39,271 17,430 56,701! 35,587 49,402; 16,373 51.960 South Carolina 125, 569 71,204 167.471j 19(5,773' 114,043 61,455 175.498 Georgia 44,902 84,305 130,040| 129, 207j 44,184 85,303J 129, 487j Florida East South Central: 122,008 128, 882 171. 2091 180,182! 49, 2011 51,300 152. 044' Kentucky 1(51,80(5. 168, 546 49, 201 46, 773 182, 074; 211,007. 215,319! Tennessee 102, 984: 110,449 49, 985 50, 705 133, 746' 152,969 161,154 i| A labama 28, 534 16, 0811 17, 040j 44,531; 34, 384 51,424 41, 6J5 Mississippi West South Central: 27,512 48, 252 52, 979 31, 675 21, 304i 43,146! 20, 740; Arkansas 96, 2*9. 71, 32' 26, 322; 80, 891! 97, 649| 70, 84625, 443: Louisiana 240, 383J 156, 141 101, 8981 101, 654' 237, 040| 138,485: 257, 795: Oklahoma _ _ 622, 738 412, 974! 459,055 209, 7(541 211,210 592, 520| 670, 265! Texas _ ! Mountain: 62, 035 34, 3291 65, 399 27, 706' 30, 585 34, 814 65, 793' Montana -17, 657 10, 95(5| 26, 400; 29,030 15,444: 11, 373 27, 7(55. Idaho : 19, 331 10, 724i 28,803 30,196i 18, ()79 10,865 29,42(5 Wyoming 94,474:: 92, 50(5 181, 032 190,801 88, 526i 9(5,327 191,195 Colorado 13, 595 10, 201 22, 826 23, 769 12,625. 10,174 23, 969 New Mexico 10, 270: 12, 270 21,191 20, 954; 8,921' 10, (-84 22, 2(5(5 Arizona 23, 294! 18, 265 40,427 39, 940, 22,162 16, (546. 35,174 : Utah ..; 10,484: 6,334 17, 092 17, 073 10, 758j 6, 589 14,960 Nevada . j Pacific: i 115,261j 214,469 247, 859 123, 1111 132,598: 103,105 Washington I 226, 216 100,454159,560 16(5,234 170,467 65, 807. 70, 013 100,4271 Oregon 618,818 1,837,632 1,960,613 1, 981, 354 1,321, 230: 1,362,536| 639, 383| California Total- _ 1 1.709 1,297 792. 14,731 1,075 3,985 4,015,677 87,784 787,437i 41,897| 2,089,173 101,4001 43.807 20.011 63,252 61 509 272 774 526 289 803 26,128' 13,885 (5,634 3,736 15.251 9.327 48,203 4,595 1,755 4.135 2(58 171 382 106 138 279 178 410 113 145 604,950. 292,271 918,323 449,127, 376.150! 45! 144] 101 44 54 45 149 10 61 472,953J 211,166 : 352,287: 60.103. 54,284: 167,149: 163,702 1,638 6,048 9,973 681 1,565 8,304 4,065 1,007 2,018, 4,114' 453 1,156 3,937 2,249 239. 188 109 8679 158 232 244 202 11(5 91 84 164 233 17,339: 162.343 143,646, 256,148 127,O:)8 75,594 54,0<>8 193.370 128,142 890 2.136 4,65^ 8,968 7,456 6,851 2,351 2,54(5 1,143 308 2,511 1,750 5,568 5,647 6,864 1,018 2,380 962 16 69, 12 144 87 44 24 65 50 16 71 12 150 102 55 30 67 51 158,455; 187,993 137,176 47, 8971 3,891 14,518 5, 688 1, 856 3,833 9, 957 (5,052 2,515 119 84 84 26' 121 90 88 28 47, 318 79, 934 257. 637, 641,859, 1, 869 4,288 8, 625! 10, 248 2, 064 4,028 4,135; 13,102 51 29 250 508. 54 29 257 528 68, 458' 30,449: 30,050 204,422: 24,591 22,48234, 394' 15,446 646 375 461 1, 476 678 345 14 832 651 1,079: 2,178! 1, 101: 258! 214i 55 35 25 105 26 11 1(5 10 5(5 38 25 112 25 12 17 10 232,327 171,816 1,884.871 2,776 2,611 46,768! 2, 52(5! 1,014 42, 894 92 84 181 8(5 185 19, 093, 615;20,121, 969 11, 904, 779 12,4(55, 556 7,18S, 83(5 7, 656, 413 17, 271,098 18, 12(5, 160 555, 3(55: 324,198 6, 368 6, 653 Member banks only, i. e., exclusive of national banks in Alaska and Hawaii. §1 4.355: 3.405i 2,527 26,025 2,2(55; 7,974 122,019 62,290 56,445 1,168,794 41.318 225,189' 273 FEDERAL RESERVE BULLETIN APRIL, 1932 ALL BANKS IN THE UNITED STATES—Continued STATE BANKS l- -PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31, AND SEPTEMBER 29, 1931, BY STATES [Amounts in thousands of dollars] Loans and investments Total State Loans Investments J Deposits, exclusive of: Rediscounts and'Number of rc! interbank deposits '. bills payable .porting banks ! ! ! December1 September December September December ! Scptember December September. j Now England: 152,134; 300, 759!' Maine 290, 368!| 102,616! New Hampshire-. . . . 225,454 : 225,4541 103,825} Vermont 102,394 158, 717| Massachusetts 2, 820.789i 2,928, OSS; : ., 749,808! 234, 680' Rhode Island j 4(i7,058 492,005 : 577,086; Connecticut... _ j 1, 054, -188' 1,089,034:1 Middle Atlantic: j New York ill, 418,171 11,985, 675! ', 348,145' j 825,822 New Jersey I 1, 328,234 1,409,909.; Pennsylvania j 2, 534, 188" 2,828,251:j ., 322, 543 TCast North Central: ! 381,908 1,595,853.! 1, 017,457 Ohio 350, 423 j 224,080. 309, 367' Indiana 838.811 2,037,359,: 1, 211,123 Illinois 772, 743 • Michigan , 1, 013,954. 1,171,590 409, 544 271, 054! 430,918.; Wisconsin ...• West North Central: | 327,434 •' 100,907! 289,972 Mi anesota j 448,049. | 347, 083 209.1001 Iowa _ i ! 605,480 | 353, 530: 593. 077 Missouri 23.244 ;i 10,035' 19, 325: North Dakota ! 42,032!! 27,358 j 37. 5*5, South Dakota i 114,901'! 65.287! 84.740 Nebraska. J, 150,647;' 111,150' 145,087, Kansas ] South Atlantic: 84.883 ! 143, 583. 1-16,056;! Delaware __• 312,407: 594,01.1 005,042 ! Maryland.. _.| 74, 588i 117,955: 114,5CS" District of Columbia.: 152,1321 180. 8 47 > 200, 784 Virginia. -j 14(5,102 ; 102.403j 128,955, West Virginia ' 123', 70S, 107, 098' ' 190.874 i North Carolina j 39.245! 01.833 70, 509:, South Carolina ; : 102,984 79, 852! 94,235 (} eorjTia j 24,194j 53,240 ! 50,135; Florida I Kasl South Central* \ 188,092i 232. 500' Kentucky _... . . | 1232, 506' 97, 200! 115, 570! 130. 102 ! Tennessee ' 51.7231 57. 238 46. 035, Alabama I 70. 200 94, 090 : 52. 796! Mississippi ! "West South Central: 58,418 74.010! 47. m sj Arkansas 277,909'. 187.998! 259, 127: Louisiana 27. 95S 52, OS I : •IS, 007! Oklahoma j ! 113,950 15S, 551: 179, 302: Texas.. Mountain: ! 27,019; 50, 455-'| 47, 380' Montana 17.479! 34.227!: 33,931: Idaho . . ...; 11, 117| 18,502 Wyoming ... . i 29, 030 i 45. 078^ Colorado .! 49, 159j! 5.218 8.121 9. 138 New Mexico. J9.05S 35, 399 38,531 Arizona ...: 09. 540 93. 509: 97. 993 Utah 14,385 10,793 17,159 Nevada ... Pacific: 107,818 171.804 100. 178; Washington • 27, 200 i 14, 903! 56, 0S0 Oregon . '. 700. 22SJ California ! 1 154,510 1,171,804 Total. . 157,507 138.234 102,616 122,838. 105,921 54,892 1. 825,829 1,070,981 240,810 232,378 591,008 470,802 143. 252, 206,105 122,838! 208, 889 50,473 : 159,371 1,102,259' 2,020,403 251,1891 441,024 498,026' 973,149 S. 840 040i 4,060 31,230! 315 14, 570; 3, 773! 640' 2, 5711 8,502 975| 4, 750 72 65 55 281 2; 158 74 65 55 295 25 170 7, 053, 508! 4,070,020 801,009 502,412 1,-185,184' 1,211,045 4,332, 107 10, 008,458 10,985,045 72,850i 515,210 1,205,051: 1,325,333 37,382 1,343,067; 2,101,870 2,399,150 109,754 20,297 20,910 09,883 492' 2141 546! 517 242 594 32, 537 7,125 21,512 10,927 7,530 5541 571! 912i 484! 730' 593 025 1,005 515 754 283, 3941 208, 889i 161,242 ; 2,742,775| 471, 500 1,008,922 1,555,009 305. 666 1. 878', 299 1, 152.954 422, 008 76,00G1 8,207; 24,711' 42,728 11.822 333.858 474. 927 087.944 24,43: 43. 541 126.401 - 153,287 4.421 12,704 12.875 372 934. 2, 687" 5,981 3,522 5.885 7, 81,2 006 875 2, 353 4, 553 029' 750, 873! 100 185 472 090 669 893 948 181 199 120, 534 515.091 11.0. 54SI 170.395 135. 551 185,275 77. 458 87. 6654,079 S101 14,472 1.305 8. 104 5,493 12, 549 4,487: 0,196: 1, 537 502 15, 400 599 5, 769 5, 779 r, 058 3, 644 5,180 1, 280 33' 133 27. 258' 128 240 S9 2571 31 130 27 273 149 r 262 100 275 142 197.48; '• 139. is; < 51,004 85. 90t 4,150 4,80! 4, 1*2 9, 838 392 340 177 10,800 71, 129 20.019 44, 595 ] 1.050 73. 287 19.631 44, 740: 57,801 243.281 50. 0431 164, 002! 70, 580 258, 320 53. 438 175,840 4,150 5, 906. 3. 387 f>. 007! i 4. 325 22,110 1,277: 3, 297; 392 23, 104 43, 874; 197.487 17, 79S 3 ] i4 t 9()i ! 8,717 3 52.741 25. 047 77, 100 5,001 13.817 2, 190 5, 240 224 171 277 594 258 .177 2*2 018 29, 945i 19.32h' 15,75!; 32.810i 6, 050; 21, 561! 74, 35# 14, 725j 19,701: 10, 452: 4, 3S5 10,012 2, 906 J5,741 23, 903 2, 408; 20,510 1 4, 899 t, 411 10, 343 3, 082 J (j. 970 23, 035; 2, 434 48,139! a 3S, 000. 19,000 47,8311 8.534! 39, 254' 71,99>v 19, 50S 51,110 3 3S, 915 20, 390 51,425 8, 935 41.793 74, 45$ 19, 6O.r 024! 335. 595| 909' 340| 5011 879 290 1,002 800 591 * 674. 1.7S1 101 87 53 132 24 21 72 22 100 91 50 137 25 23 70 22 ii6, IOU! 34,212; 719, S30! 52, 300! 17, 037' 448, 282 58,095 104.582: 21,80S 40,540 451.974 l,0S9.5S3 177,178 59,04 1,143,801 2,735; 737! 8,252| 2, 13S 924. 0,458 191 113 212 200 J22 219 r 14, 041 1,180,713 203,800 1,380,9011 830,9071 283, 053; 304, oil' 85,281 027.718 271,211 138, 490 415,140 1,297,376' 80, 617 322. 580 656. 395 1,739,294 334,089 1,049,110 142, 805 398, 580 180,9901 435, 798, 410, 050 19,304| 31,802 90. 270' 110,412: 129,005 78,577 240,141 3, 290 10, 227 19,453 33,937, 140.138 299, 300 12.851 3 357.883 248, 830 " 007,330 3, 380 20,023 10. 770 38,891 24, 691 80.421 34,235 3 144,100 88.410J 31.8,073| 77,197! 100,152| 116,3()2j •" 149,869! 4S,713j 80,875: 20, 498 58, 700 232,204 39.980 34,715 20. 552 43,990 22,58814, 383 25,941 57, 040' 286,969. 40, 758 34.632 29.770 ' 47,005 790: 10,109. 20.742 188,092 112,304! 48. 5211 08, 419, 43. 874 18.370 02, 390; 201,022! 32, 450: 134.5501 i 120, P44 555,412 111,949 157, 799: 120,348 157,09 V 64, 039' 84,225 53, 103 :i a r 2 no 73 ]i 90 J31. 003, 204!>"33, 243. 289 ! 19, 711,190j-21. 281, 330; 11, 292, 008 ' 11, 958, 959 28, 989, 756>31, 020. 008 001, 398/300, 995 13, 6O1 I ! • :i ' I i : . ! 1 Includes all S t a t e b a n k s (including siock a n d m u t u a l savings banks.) a n d all p r i v a t e b a n k s u n i e r S t a t e supervision. nearest, t h e r e t o for which figures are available. 2 Includes b o n d s borrowed. 3 Includes d u e to b a n k s . 4 Includes miscellaneous liabilities. r Revised. 721 Figures relate to d a t e s N O T E . — A l l figures in t h e D e c e m b e r c o l u m n s are as of Dec. 31, except as follows: M a i n e , D e c . 20; N e w H a m p s h i r e , J u n e 30; M a s s a c h u s e t t s , savings b a n k s , Oct. 31; K e n t u c k y , J u n e 30; O k l a h o m a , Dec. 20; Colorado, Dec. 5. All figures in t h e S e p t e m b e r c o l u m n s are as of Sept. 29, except as follows: M a i n e , Sept. 20; N e w H a m p s h i r e , J u n e 30; M a s s a c h u s e t t s , savings b a n k s , Oct. 31; Rhode Island, savings b a n k s , J u n e 30; C o n n e c t i c u t , savings bunks, J u n e 30; N e w York, S t a t e b a n k s , Sept. 30, savings b a n k s , J u n e 30; I n d i a n a , J u n e 30; Iowa, J u n e 30; Missouri, Sent. 18; N e b r a s k a , .June 30; Kansas, Oct. 10; M a r y l a n d , S t a t e h a n k s , N o v . 14, savings b a n k s , J u n e 30; N'ortn Carolina, J u n e 30, K e n t u c k y . J u n e 30; Tennessee. M a y 12; Alabama, N o v . 10; Louisiana, Sept. 2S; '.'olorado, J u n e 27; l.'isih, Sepi. 30. 274 FEDERAL RESERVE BULLETIN APRIL, 1932 ALL MEMBER BANKS IN EACH DISTRICT RESERVES HELD, EXCESS RESERVES, AND BORROWINGS AT FEDERAL RESERVE BANKS [In millions of dollars] Averages of daily figures I Borrowings at Federal reserve ' banks Iteserves held Federal reserve district Total ! Excess ! I 1932 Jan. Feb. : Feb. Feb. 142. 0 1,005.1 141.3 192.7 _: 1,907.5 1,907.5 . 1, 979.1 2,370. 3 119.6 j 811.5 ' 118.4 ! 141.0 : 51.8 • 47.6 i 257.7 57. 5 i 41.4 68.1 49. 2 143. 6 1931 1932 120.2 850.8 121.9 145.4 52.2 48.8 209.0 60.0 42.9 71.0 48.9 130.1 Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis. _. Kansas City.... Dallas San Francisco.. Total 1931 Jan. 1.4 1.1 1.3 2.3 (JO. 0 58.8 332.9 09.6 47.5 82.2 57.7 179. 4 8.9 . 2.4 ' 1.9 4.7 3.8 1.6; 43. 8 Feb. Feb. 5.5 10.0 1.5 2.2 .9 2.1 9.8 3.0 2.3 5.4 3.5 -11.4 1.0 12.9 2.0 18.7 i 2.9 j 3.5 ; 1.3 : 3.3 : 0. 6 . 4.3 ;: 2.1 4.5 2 3i 5. 0 ! 50.6 | 35.4 1932 1931 ; | Feb. Jan. 39.9 178.8 j 121.9 ! 121.7 ! 30.4 45.0 : 79.8 22.0 ' 47.0 188.2 119.2 123.8 43.1 45. 0 84.6 24.5 35.4 i 14.6 ! 128.5 ; 30.0 15.3 85.3 47.8 24.2 23.1 18.3 21.6 20.5 9.4 4.0 13.6 6.2 16.3 836.2 ! 816.6 215.8 12.2 • 9.5 ]0. 7 NET DEMAND AND TIME DEPOSITS OF BANKS IN LARGER AND SMALLER CENTERS [Tn millions of dollars] Averages of daily figures Member banks in larger centers (places over 15,000) Federal reserve district Feb. Boston New York Philadelphia Cleveland _ » Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.. Total _. _. 1,018 6,179 800 998 350 343 1,773 405 213 429 316 Feb. 929 1,188 7,123 970 1,342 390 413 2,200 403 2 40 511 376 1,119 13,198 ! 13,818 16,350 990 5,818 836 908 345 331 1,693 389 206 414 314 893 1932 1931 Jan. Net demand Time Net demand 1932 Member banks in smaller centers (places under 15,000) Feb. Jan. ; , . OO Oil 1931 Feb. Feb. Time 1931 Jan. OD OO Feb. 1931 1932 Feb. Jan. Feb. 847 2,010 738 1,329 330 304 1,774 355 214 234 190 1,742 85 220 153 148 80 67 162 91 116 191 155 110 220 157 148 87 70 109 94 121 198 152 118 100 274 187 193 113 90 228 114 143 246 200 151 140 500 409 270 166 70 266 100 211 124 33 120 147 ! i ! ; j ! 712 1,937 fill 1.O3R 295 90R 1,338 316 211 219 164 1,549 273 170 72 277 102 215 125 33 122 165 591 403 336 204 84 368 120 245 142 40 144 8,510 ! 8,087 10,078 1,591 1,628 2,039 2,416 2,458 2,901 7J1 1,892 004 1 024 291 291 1,304 308 207 2J7 103 1,498 ! 275 FEDERAL RESERVE BULLETIN APRIL, 1932 WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES, BY DISTRICTS AND FOR N. Y. CITY AND CHICAGO [In millions of dollars] I • Total ! Loans and investments: Mar. 2 Mar. 9 i F e d e ral R e s erve DLstrict New PhilaCleve- Rich- AtBoston York delland mond lanta phia 19 523 ' 1,297 19,305 i 1,276 . M a r . 16 M a r . 23 M a r . 30 19 588 '• 1,272 19 403 1,271 19,354 i 1,271 Chicago C ty MinSt. Louis neapolis KanVrZ ; New . sas Dallas Frany City Cisco ! Y o r K Chicago 7, 638 7,515 7,704 7,577 7, 629 1,161 1,145 1,158 1,153 1, 130 1,979 1,973 1,974 1,976 1,963 599 601 608 610 612 520 517 529 525 5L.i 2,633 2,593 2,624 2,599 2, .545 570 576 583 580 576 345 345 345 342 341 572 569 570 567 566 416 412 421 417 415 1,793 ", 6,540 1,783 i 6,421 1,800 6,617 1,786 : 6,486 1,777 ; 6,541 1,468 1,440 1,480 1,460 1,410 Loans: Mar. Mar. Mar. Mar. Mar. 2 . 9 16 23 30 On securitiesMar. 2_ Mar. 9 Mar. 16 Mar. 23 Mar. 30. . All o t h e r Mar. 2 Mar. 9 . Mar. 16 Mar. 23 Mar. 30 Investments: Mar. 2___ . Mar. 9 Mar. 16 . Mar. 23 Mar. 30 12 588 •' 12,436 12 388 ' ' 12 254 ' 12,'211 i 860 849 842 841 838 4,961 4,863 4, 829 4,728 4, 757 703 701 701 699 694 1,244 1, 23S 1,228 1, 226 1,220 365 367 365 369 372 347 344 345 345 343 1,875 1,844 1, 855 1,840 1,796 363 371 372 368 305 216 216 208 205 204 300 303 302 302 301 270 269 267 265 262 1, 078 4, 269 1,071 i 4,174 1,074 i 4,148 1,066 4,048 1,059 4,074 1,009 990 1,014 1,002 960 5 440 5 426 = 5 413 : ' 5 337 5 3i)8 322 32() 330 325 321 2,404 2, 395 2, 357 2, 300 2, 337 357 356 354 355 557 556 556 557 5.15 147 147 147 150 154 103 107 107 107 106 875 865 885 877 840 145 152 152 149 146 58 59 61 60 60 87 87 87 87 88 80 80 79 77 77 300 ' 2,109 296 2,097 298 2,000 293 , 2,009 289 2,0-43 577 571 597 592 554 . 7,148 7, 010 6,975 ' 0, 917 0,883 538 523 512 510 ";lt 2, 557 2, 468 2,472 2, 428 2, 420 687 682 672 669 6f)5 218 220 218 219 218 239 237 238 238 237 1,000 979 970 063 <J5o 218 219 220 219 219 158 157 147 145 114 219 216 215 215 213 190 189 183 188 1*5 778 ' 2, lfiO 775 2,077 776 2,082 773 2,039 770 ! 2,031 432 419 417 410 406 437 427 430 430 433 2, 677 2, 652 2, S75 2.819 2. S72 458 444 457 4,v4 •M2 735 735 74!) 750 743 234 231 243 241 240 173 173 1.34 130 180 758 749 769 759 749 207 205 211 212 211 129 129 137 137 137 266 266 268 265 265 146 113 l.r)4 152 153 715 712 726 720 7iS • 2,271 2,247 2.4fi9 2,438 2,467 459 450 466 458 450 3. 704 4,016 . 3,951 3,920 : 225 222 224 223 226 1,591 1, 582 1.790 1, 717 1,752 184 172 185 182 171 331 385 399 402 393 115 115 122 120 117 88 83 99 95 95 406 400 418 411 398 88 86 91 92 91 54 54 61 61 61 13S 138 139 138 137 86 83 95 91 91 3S3 : 1,445 379 : 1,437 393 , 1,643 3S9 1,601 388 : 1,610 245 239 254 248 237 3,193 3,165 3,184 \ 3,198 ! 3, 223 ; 212 205 203 207 207 1, 0S6 1,070 1,085 1, 102 1, 120 274 272 272 272 271 351 350 347 348 350 119 119 121 121 123 85 85 85 85 85 352 349 351 348 351 119 119 120 120 120 75 75 76 76 76 128 128 129 127 128 60 60 59 61 62 332 333 333 331 330 • 826 810 S26 837 857 214 211 212 210 213 78 80 83 84 73 693 692 698 703 736 71 70 70 69 69 107 106 107 107 107 35 34 37 33 34 32 31 30 .198 218 200 201 196 39 40 41 39 38 22 22 23 21 22 42 43 47 43 43 28 28 29 29 29 86 84 , 87 : 85 83 : 639 643 648 659 689 137 155 136 140 133 12 12 12 13 13 27 26 27 28 14 13 13 14 13 g 7 10 34 34 32 32 33 6 6 6 6 11 12 12 12 13 6 7 7 5 5 5 5 5 6 7 18 18 17 17 18 40 41 38 40 43 14 15 14 14 14 _ _ 6,935 6, 869 7,200 7,149 7.113 3, 742 . Mar. 9 M a r . 16 M a r . 23 Afar 30 All o t h e r Mar. 2 Mar. 9 M a r . 16 . . Alar. 23 M a r . 30 Reserves with Federal reserve bank: Mar. 2 Mar. Mar. Mar. Mar. 9 16 23 30 Time deposits: Alar. 2 Mar Mar. Mar Mar 9 16 23 30 Government depositsAlar 2 Mar 9 1,431 : • 1,448 1,452 : 1,446 1,459 • ____• : • Net demand deposits: Mar. 2 206 211 202 210 215 ; .11,003 ! . 10,970 10,992 ! 10,843 10,941 •, | : 5,700 • 5,714 5,687 : i 5,675 .- 5,680 . : ' 225 : 153 M a r . 16 547 • Mar 23 Mar. 30. 485 452 346 315 347 311 312 : United States Government securities — Mar. 2 . Mar. » M a r . 16 M a r . 23 M a r . 30 ._ C a s h in v a u l t : Mar. 2.._ Mar. 9. . . M i r . 16 M i r . 23 Mar. 30 3">2 15 15 15 15 14 52 54 50 53 5C> 29 . ; : ' : 724 724 699 695 088 5,200 5,167 5, 199 5,131 5,286 636 635 633 622 624 839 837 837 840 847 291 293 291 286 284 241 242 237 236 233 1,404 1,410 1,406 1,376 1,329 303 315 319 313 310 178 181 178 174 173 362 358 362 358 356 244 246 246 242 244 576 562 585 570 567 j 4, 727 4,701 ; 4,739 ! 4,666 i 4,814 950 959 947 925 878 421 420 420 419 419 1,200 1,211 1,207 1,202 1, 208 261 265 264 265 267 841 838 833 831 831 223 223 223 223 224 198 200 199 198 197 999 993 988 990 986 208 208 208 207 208 151 150 149 149 150 182 183 185 184 184 129 129 128 129 129 887 894 883 878 877 i i 1 ' 744 756 751 753 758 391 385 384 384 383 25 17 46 39 36 144 98 265 225 203 16 11 45 41 12 8 34 33 31 6 4 31 30 29 2 2 32 31 31 1 7 6 6 1 1 6 5 5 1 24 23 22 6 6 6 6 4 22 19 IS 6 4 29 27 27 '. : ! : . I 140 95 253 214 193 2 1 25 24 24 38 276 FEDERAL RESERVE BULLETIN APRIL, 1932 PRINCIPAL RESOURCES AND LIABILITIES, BY DISTRICTS AND FOR N. Y. CITY AND CHICAGOContinucd [Tn m i l l i o n s of dollars] Federal K e s c r v c D i s t r i c t I Total New I 1 * " " - -Clave. K i c h - i A t Boston! 4; York I Chi- ! City I Min- : Kan- St. mond | lanta \ cago j Louis ; n *f.P- • Due from banks: Mar. 2 . Mar. 9 Mar. 16 . Mar. 23._ Mar. 30 Due to banks: Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30.. Borrowings from Federal reserve bunks: Mar. Mar. Mar. Mar. Mar. New Dallas Fran- York i cisco ^ Chicago j 912 872 972 917 949 52 44 86 63 69 129 106 116 104 109 ! ! i : ! 53 ! 51 I 65 65 69 64 63 G3 • (50 i 63 : 60 ; 66 i 5 4 :• 54 j 170 I SI i 158! 173 177 ! 208 80 82 342 312 359 I 348 I 357 5o : 53 | 55 | 54 ! 47 ! 48 ! 47 I 96 | Si 106 ! 98 i 9 4 •• 65 96: 42: 2,386 2,340 2,444 2,376 2,400 2 9 16 . 23 30 120 ! 932 116 j 890 120 i 863 111 ! 940 1.12 j 957 474 397 328 334 305 145 140 143 135 143 181 180 184 182 186 ! j ! ; : 82 : 80 j 80 j 80 ! 78 : 7 9 !• 77 78 1 i 27 1 1 20 i 70: 47 40 ! 47: 48 : 17 13 14 22 ! 14 1 14 | 14 ! 14 90 90 ' 86 ; 82 i 37 I 33 | 79 ! 81 i 80 81 ; 79 I 4! l ! 1 ; 3 i 2 : 24 -1 20 I 19 i 138 134 134 128 125 58 60 62 60 60 88 • ! 4 4 3 141 : 145 i 149 148 : 144 ! 6 117 5 111 . 3 1 102 1 99 : 96 77 85 73 70 104 95 106 112 142 876 836 909 885 902 239 242 256 252 260 15 ! ! 1 2 i 2 ! ! 2 2 RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES OF EACH DISTRICT Loans secured by prime stock exchange collateral Prime commercial paper Federal reserve b a n k or branch City i 1932 1931 1932 Febru- I ! Man* i ™ i Mairch Boston New York. Buffalo ' 4 -5 ! 4 - 5 _= I Philadelphia Cleveland Cincinnati-.. Pittsburgh Richmond. Baltimore... Charlotte Atlanta ary | i\ i 5 5 5 5 -* 5 -{> i 5} 2-6 5-6 5 -5>2i 5- 6 i 5- G 8 i 5 --8 6 : o 5 -by. -6 G -G 6 -6 )2-6 Minneapolis Helena Kansas City | ! Denver Oklahoma City" i Omaha _'_ I Dallas i " El Paso .._ " Houston ...._.. San Antonio '_ San Francisco Los Angeles._ Portland... Bait Lake City i Seattle.... " I Spokane. j 5 -() 5 -f> -8 1 G G G 0 -4 8 4 -4V. 6 -8' 43/2-G 4 -6 6 5 --G 5 -6 7 -8 ^2 | 6 5 -6 7 -S 5 -G (J - 8 5 -6 8 '' ' 6 f 8 ! G -6H G | G I G i 4 -G 7 -8 53-2-6 G 4H-5 5H-G 6 -6 6 6 6 -7 7 -8 5H-7 5 -6 G -6V G -6J(i GH-7 63 2-7 6 -63^1 7 -8 5 -7 5 -G 5 -7 G -6H (} GH-7 63^-7 5 February -6 5 -G 5 41* 6 -6 ; 43, G 5 -53 G ; 6 G -7 6 0 G G /4 5 - 8 -0 53i-* • : G -8 . G -G3-2 0 8 ; Fcbru- 4 -5 6 5 -6 Wi-h 5H-G 4 -5 5 -6 5 -0 6 G /2 6 G ,- -G . 4 -4>2 61 - 8 • 6 '2"8 (5 -8 53/2-6 53 2-6 5H-6 j G -8 5 -6 G -8 G-8 G 5 -G 8 5 -53< 6 -8 1J 5 -is ' I 1931 March 5 2 —o]/2 53/2-6 6 -^ G -' -6 (5 G -7 6 G I 5 -G i 6 -c>y2. 6 I 0 1 -G ; -7 G ; 4 -132 5 6 5 March 6 G -8 G 6 1932 5 -5H[ 4H-6 63/i~7 534-G G -7 0 4 -4U G -8' 5 -f> ! 53^-8 G -8 j 6 -6>2": ; March 6 G • i Interbank loar.s 1931 5 G 6 -7 6 -8 5 -63/ 4 -5 4J4-0 4M-6 G G -G 4J£-5 0 -(>3 0 4 -4} 7 -8 5 -6 4 -o (i 5 -6 5 -0 5 -G 5 -6 March 5 6 -G3o 6J, -7 5 -7 • 6 -S 6- 8 G Chicago Dtit/""/;/;;;: St. Louis Little Hock Louisville March -6 o -0 5 -5 5 -5J-2. 6 1932 1931 43^-5 43^-5 5M | % ~(\ 5j"2~G G Birmingham Jacksonville Nashville New Orleans : F e b r u - •' -2': 5 4 -f> 5 -6 4*4-5 5 _ March I ! Loans secured by warehouse ! receipts 5 -6 6 6 G G 5 ~f*\ 6 j 5 -fiV*! 6 i G ! (> ! 53/£- "6 I 6 j . 5 -6 I 5- 6 G 6 1 5 - 6 ! 5 -G 0 0 -8 -; } 5 -G 5 -G 5 5 -6 G G 5 -G 5 5} H i G -8 6 G 6 43/2-5^ G : 5 . G : 6 0 : 0 : NOTE.—Kates at which the bulk of the loans of each class were made by representative banks during the week ending loth of month. from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the largest banks in their respective cities. -5 4 -f, 5 -0 5 -G 5M-6 G '• G 63/2-7 4 5 -53-2 5M'"G 43-2-534 G 5 G 6 6 G G Kates APRIL, 277 FEDERAL KESERVE BULLETIN 1932 OTHER BANKING AND FINANCIAL STATISTICS SHIPMENTS AND RECEIPTS OF AMERICAN CURRENCY TO AND FROM EUROPE MATURITY DISTRIBUTION OF BILLS, ETC. [In thousands of dollars] BY S E L E C T E D B A N E S IN N E W YORK CITY » i [Paper currency only. In thousands of dollars] 1931 I 1932 : Net , Net ShipReshipShipRe- ; shipments ceipts i ments ments ceipts ! ments from , (—) or to to from ! (—) or Europe Europe receipts Europe Europe: receipts Month 470 130 1,380 915 2,570 8,811 10,258 3,226 8,433 3,088 52 i 1,523 January February.. March April May June July August September. October November. December 4,051 : + 3 . 581 960 +830 863 , -517 1,469 i +554 2,103 : - 4 6 7 779 : - S , 032 394 -9,862 3,723 . +497 3,290 -5,143 11,588 +«, 500 7,039 +6.987 3,749 +2, 226 | 25 0 0 I Within: 16 to Total ' 15 30 ! days days 3,335 | +3,310 5,221 i +5,221 8,468 +8,408 Bills discounted: Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Bills bought in open market: Mar. 2. Mar. 9. M a r . 16 M a r . 23 i ] 828, 402 649,004 1 747,979 570,718! 1660, 71)2 496, 6731 665,583512,343' 633. 255 486, 632j i For explanation and back figures see BULLETIN for January, 1932, pp. 7-9. MEMBERSHIP IN PAR-COLLECTION SYSTEM 64,075 49,224 33,172' 28,602: [Number of banks at end of February] 439,909 36,2501 M a r . 16 M a r . 23 432,370, 5,250 459,554! 6,143 M a r . 30 M u n i c i p a l war- rants: Mar. Mar. Mar. Mar. Mar. 2 9 16 23 30 47,283' 49,95)4" 48,485 38,787 37,151' 66,090 65,815i 56,784' 61,352; 56,830, I 48,008ii 37,132 115,640 : 137,584' 105,714: 81,696. 66,362 ! Mar. Certificates and bills: 361,768^ 67,546 Mar. 2 382, 609 50, 645 Mar. 9 ;. 31 to ; 61 to 91 rtavs Over 6 60 j 90 to 6 days I days months months 4,573 8, 247. 4, 9541 5,791' 6, 7111 27,862 12, 707 8.554 10,970 46, 217i 42,467' 40, 639 35,321' 34,414: 15,907 14, 699 14, 152 13, 548 13,804 12,7111 17,768 11,409: 33,987 10, 852! 32, 690 ll,048 : 28,678! 15,810 10,742' i 21 251 241 244 238 3 4 4 4 4 901 286 059 232 364 4. 250 6,300 54,816! <)5,204; 133,652 4, 250 6,300106,066! 79.213J 130,135 3.500 24,625101,59]! 211,824; 62,119 3,500 48,236129,530" 155,311: 90,543 3,800 66,916' 89, 550=" 183, 538! 109.607 4, 390 130 8, 065" 130. 3, 8741 4.521! 1,190 5, 5911 1,000 " 20 52" 32 : . 60 . 28.. 08 .. Nomnernber banks Member bunks ! On pur list Federal reserve district Not on par list UNITED STATES POSTAL SAVINGS [Balance to credit of depositors. In millions of dollars] 1932 1931 1932 1931 7,968 8,839 10, 718 395 910 751 749 467 381 1,066 504 636 803 671 575 225 335 332 772 439 146 2,477 1,192 379 1,582 451 506 260 395 443 924 509 173 3,131 1,381 483 1,862 552 605 1932 1931 End of month United States.. 7,094 Boston New York Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City. Dallas -. San Francisco i • : , i \ • _: -•' , 371 833 706 646 394 340 864 446 575 810 007 502 3,127 i 6 363 765 247 394 870 213 218 51 1 1927 1928 1929 1930 8 443 848 242 423 1,006 198 212 61 January... February March April May June July August September October November December I ' ' • 141.5 143.8 146.4 147.1 - . -! 147.4 147.4 147.1 1 147.9 __, 148.2 148.7 ! 149.0 148.5 148.9 151.1 152.0 152.2 152.0 152.1 151.7 152.2 152.3 153.1 153.9 153.9 ' 153.5 154.8 '• 155.0 . 154.3 153.8 153.6 : 157.8 160.1 160.3 . 161.6 • 163.7 164.3 165.1 278.4 292.1 167.9 302.7 169.5 170.2 313.8 171.2 325.0 175.3 347.4 180.7 372.5 186.5 422.7 189.8 M69.9 192.5 538.1 200.7 *555.6 245.4 »595.6 i Figures cover all incorporated b a n k s (other t h a n m u t u a l savings banks). 1931 : 1932 3,441 *» Preliminary. c Corrected. i »658.1 ! P083.6 i ( j 278 FEDERAL RESERVE BULLETIN APRIL, 1932 BANK SUSPENSIONS AND BANKS REOPENED BANK SUSPENSIONS AND BANKS REOPENED, BY DISTRICTS [ B anks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions daring given period include any banks which may have been subsequently reopened. Figures for banks reopened during given period include reopenings both of banks closed during that period and of banks closed in prior periods. Deposits (including those of banks reopened) are as of date of suspension where available, otherwise as of the latest available call date preceding suspension] [Figures for latest month are preliminary] Banks suspended Banks reopened Deposits (in thousands of dollars) Number Deposits (in thousands of dollars) Number Federal reserve district I 1 Members All banks st8te March, 1932: Boston New York Philadelphia Cleveland Richmond.,Atlanta Chicago St. Louis. Minneapolis Kansas City Dallas San Francisco.. Total. January-March, 1932: Boston. New York Philadelphia... Cleveland Richmond Atlanta. Chicago St. Louis Minneapolis.._ Kansas City... Dallas San Francisco. Total.. , Members I ! .! Non- I All mera- J banks bers I National! State 1 1 3,893 664 NonAll mem- II banks bers bers 3,893 ' U 664 2 '__ 622 256 2 2 i ! • : |!_ |. :. • ' 16 5 2 11 1 4 , 1! 3i 1 2i 8 i 45 s 14 27 37 25 156 76 20 68 17 50 509 38 5 5 9 9 8 27 12 4 13 3 12 107 ; 18 28 15 123 61 16 55 13 39 18 384 3,974 380 360 2,042 2,750 995 880 i 2,750 ! 190 j 15,936 ' 4,484 | 36,015 '. _.._! 11,906 S, 913 | 21, 733 2,589 i 11,246 4,689 > 41,134 12,320 9,527 4,391 85,097 ! 31,240 31,813 10, 312 4, 235 1, 530 12, 678 4,403 6,409 j 2,941 28,120 7,464 299,913 ; MemAll banks ' bers l bers 90,798 3,974 380 360 1,162 805 ' 11,452 36,015 797 2,196 i 19,144 __.i 6,557 2 ! 1 1 3,909 43, 232 18,434 2.705 8,275 3,381 17, 588 1 2 3 14 6 22 20 8 7 8 1 18,871 j 190,244 93 1, 227 10, 625 3,067 87 3,068 10 • i 28 10 2 :. 1 I 2 ! l | 4' 4; i i 156 1,119 i 5,471 ; 1,808 1,132 . 66 ! 670 680 2,344 481 1,132 18 I 15,499 ; 9,714 | ... 1 ' ...: 2 | 12 5 i 18 ; 16 , 7 • 7 1 5 1 19 I 1,8 : 3,208 •! 3,208 1 ! 1 ; 13 Nonmembers 156 439 3,127 1,327 66 670 5,785 1,869 - 1,8 3,900 ; . 3,900 3,208 •.; 3,208 ' 2,776!' 577 j ~2~199 5,647 ;. 794 i 4, 853 2,373 680 ! 1,693 7,621 i: 2,901 j 4,720 9,019 • 2,559 I 6,460 3,160 !; 1,132 i 2,028 812 812 !. 1,286 4,809 i1 3,523 150 150 L 74 j 45,344 M 17,243 28,101 i 1 Represents national banks only, except as follows: March, 1 State member in Chicago district with deposits of $628,000, and 1 in St. Louis district with deposits of $339,000. Back figures.—See BULLETIN for February, 1932; also Annual Reports for 1930 (Table 117), 1929 (Table 111), 1928 (Table 115), 1927 (Table 111), and 1926 (Table 98). 279 FEDERAL RESERVE BULLETIN APRIL, 1932 BANK SUSPENSIONS AND BANKS REOPENED—Continued BANK SUSPENSIONS AND BANKS REOPENED, BY STATES, DURING MARCH, 1932 [Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions during given period include any banks which may have been subsequently reopened. Figures for banks reopened during given period include reopenings both of banks closed during that period and of banks closed In prior periods. Deposits (including those of banks reopened) are as of date of suspension where available, otherwise as of the latest available call date preceding suspension] [Figures are preliminary and subject to revision] Banks reopened Banks suspended Deposits (in thousands of dollars) Number Deposits (in thousands of dollars) Number State Members Members N o n - , A 11 All , mem£" i ™m- bhban! anks banks Na; sbt t.at tee , bers i tional National i All ! Mem! Non- banks i' bers l j memState j b e r s No Non " Mem ' All i New England: MaineNew 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. Virginia West Virginia North Carolina South Carolina Georgia Florida-.. East South Central: Kentucky Tennessee. Alabama. Mississippi West South Central: Arkansas Louisiana Oklahoma Texas Mountain: Montanfl. Idaho Wyoming. Colorado New Mexico.. Arizona . Utah. Nevada. Pacific: Washington Oregon California Total.. 1,869 i ! 2,086 I 2,686 522 i 522 664 664 V- 622 : 1,843 I 935 I 622 ; . 1,843 I M: 360 !,. 1,196 Si. 360 1,196 i 406 ! 406 5 ;L ' 483 897 I 3 5 432 935 • •;. 296 3 ! 1,577 950 2 ! 1, 1, 003 3 ! 1,077 1,132 432 500 824 1,003 2 i 2,209 1,409 800 483 601 206 ! 50 !- 206 50 1, S 1 1 ] 52 156 156 439 439 83 812 339 680 584 2,750 ?I 2 | j I •! 1: 1 , 45 38 ; 584 2,750 351 ;! 79 533 ! Ill ; 111 15,936 812 339 680 . 670 66 670 18 | 15,499 9,714 : 5,785 272 : 533 ' 4,484 11,452 28 10 • i Represents national banks only, except as follows: 1 State member in Illinois with deposits of $628,000, and 1 in Arknasas with deposits^of $339,000. 280 FEDERAL RESERVE BULLETIN APRIL, 1932 BANK SUSPENSIONS AND BANKS REOPENED—Continued BANK SUSPENSIONS AND BANKS REOPENED, BY STATES, JANUARY 1 TO MARCH 31, 1932 Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions during given period include any banks which may have subsequently reopened. Figures for banks reopened during given period include reopcnings both of banks closed during that period and of banks closed in prior periods. Deposits (including those of banks reopened) are as of (into of suspension where available, otherwise as of the latest available call date preceding suspension] [Figures included for latest month are preliminary and subject to revision] Banks reopened Banks suspended Deposits (in thousands of dollars) JNumber Deposit s (in thoiisands of dollars) Number State Men ibers Members All banks New England: Maine New Hampshire Vermont M assach usetts Rhode Island Connecticut Middle AtlanticNew York _ New Jersey Pennsylvania East North Central: Ohio Indiana Illinois M ichigan Wisconsin West North Central: Minnesota Iowa M issouri North Dakota South Dakota Nebraska Kansas South Atlantic: Delaware Maryland District of Columbia Virginia 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 Mpxico Arizona Utah Nevada PacificWashington Oregon California Total NonmemNa- State bers tional All banks National Mem- NonNonAll members banks bers^ members State NonMem- members! bers All banks i 2 2 9,285 9 285 3 3 26, 730 26 730 1 2 9 9,349 4,779 22,909 5 6 17 12 39 ! 86 1 6 1 12 42 j 36 3 2 13 i 29 ! , 3 ! 5 2 ; 20 j 8 6 2 i 25 4 i 8 j 5 4 3 8 1 1 6 17 1 1 6 5 6 1 1 i 6 11 33 63 5 4,531 24,580 • 42,056 3,923 637 12 36 29 2 2 13 23 2. 484 25, 485 14, 477 226 87 1,780 6,365 1 1 3,874 16,871 18, 294 2 791 3 5 11 4 8 3 1 1 1 3 4 1 2,830 2, 484 15,110 6, 053 134 87 1 780 3, 535 792 839 897 3 338 207 3 068 24 406 1, 325 439 2 1 5 3 1 3, 255 238 903 007 4 011 1,099 1.780 3,381 4 1 3 8 797 657 7,709 18,103 1, 132 637 5, 599 1 2 i 4 2 15 6 4 1 590 207 13,035 25 674 1,487 871 18 3 4 5 8,676 1 266 3 748 607 3,074 1 028 2 089 6 4 8 13 696 , ?., 310 2,762 6,409 • 85 680 982 2, 911 2 25 1 6 1 3 1 1 , 9,967 1 268 162 432 6 11 17 : 1 1 3 3 2 5 o 1 4 306 639 306 79 7 3 4 938 i 518 1 1 5, 291 455 252 : ' = 1 1,100 2, 892 18 632 8,249 1,090 4,277 5, 084 7, 909 92 792 1,736 i l 1 2,347 696 531 87 1 1 2 5 1,869 1,869 3,900 2,686 522 2,686 522 3,900 3 7 2,776 577 999 2,826 ! 1,077 2, 324 1,132 557 3, 286 2,199 999 1,749 1,192 2,729 1 2 3 3 400 2,209 4,925 339 400 800 3,007 339 4 621 3 1,484 1 1 1 4 3 1 1 591 2,452 815 305 309 439 1 3 488 0 2, 255 3 694 680 191 4,809 4 1,409 1,918 621 i 1 6 1 1 3 3 5 1.484 567 227 160 24 2,452 588 305 309 439 328 2,255 339 680 3, 523 355 191 1,286 500 ._ 390 M 13 3 12 ; 7 16 i 7 509 , 107 4 2 11 3 9 919 98 L 1 2 7 5 9 6,932 ! 1,939 ! 7,680 i 18 384 299,913 3, 873 863 9 080 981 1,185 1,020 1,874 919 4, 168 1 18, 871 190,244 93 3, 512 90, 798 ! 1 19 74 150 45, 344 j 17, 243 150 28,101 1 Represents national banks only, except as follows: 1 State member in Illinois with deposits of $628,000, and 1 in Arkansas with deposits of $339,000. Back fiqures.—See BULLETIN for February, 1932; also Annual Reports for 1930 (Table 118), 1929 (Table 112), 1928 (Table 116), 1927 (Table 112), 1926 (Table 100), and 1925 (Tables 97 and 98). 281 FEDERAL RESERVE BULLETIN APRIL, 1932 INDUSTRIAL PRODUCTION, BY INDUSTRIES [Index numbers of the Federal Reserve Board.* 1923-1925 average = 100] Without seasonal adjustment Industry 1932 February j January l Pig iron Steel ingots 34 | 44 TEXTILES... ("otton consumption Wool (? onsumpt ion Machinery activity Carpet, rug-loom activity.. Silk. Deliveries Loom activity FOOD PRODUCTS Slaughtering, meat packing Hogs Cattle Calves Sheep Flour Sugar meltings.. I W ood pulp and paper Newsprint Book paper Wrapping paper Fine paper... Box board _ Wood pulp, mechanical Wood pulp, chemical Paper boxes Newsprint consumption LUMBER 1932 , February ; February 1931 January j February j MANUFACTURES IRON AND STEEL PAPER AND PRINTING Adjusted for seasonal variation 1931 ! i ! i I ! I ! j I I 92 ; 91 | 69 j 75 | 74 41 122 137 | 93 | 91 ! 100 j 113 J 75 : 90 ! 149 79 72 41 ! 32 42 ! 94! 87 ! 05 : 73 ! 07 . 38 ! 02 78 100 i 92 79 : 88 41 33 42 80 85 00 09 32 44 153 It,9 • 121 "__ 110 i 128 I 98 i 110 i 124 : 84 87 . 174 i '85 92 90 100 75 92 132 89 81 90 98 102 85 97 159 82 73 I ! : , 112 '.. 105 ... ; I ! ' ; ! 72 i 152 113 95 80 54 i. 150 1 179 ! Ill ; 99 81 90 103 81 89 138 112 89 83 04 71 j I i ! 73 01 ; : 122 L . 90 ... 100 .. 118 „ 74 ... 99 ._ 104 123 137 114 ! 140 158 '93 92 j 93 s 83 93 . 173 : r 86 : 108; 101. 93 74 ' 98 . 82: 95 ' 100 80 91 J57 JIG 92 94 90 85 99 141 92 87 109 102 77 117 89 98 118 72 90 148 124 43 ! _• TRANSPORTATION EQUIPMENT: 38 1 17 Automobiles 1 ^ocomoti ves Shipbuilding 90 81 71 LEATHER AND PRODUCTS... Tanning Sole leather. _ Upper leather— Cattle Calf and kip... Goat and kid. Boots and shoes 88 Go 10(5 90 80 54 90 C E M E N T AND GLASS: Cement Glass plate _ 34 81 : 1 NY)NFERROUS METALS: —Tin deliveries.. FUELS, MANUFACTURE: (JO 47 73 7 • 110 ; 35 ; i \ 45 ' 2' 24 , 08 7 154 90 80 ! 80 89 ! 79 | ; '85 79 | • 89 84 — ' • • ; 76 j 71 ' 101 I 96 ; 73 05 : 101 r 89 57 Si 123 92 52 116 | 105 '• 50 ! 75 i : 65 75 80 107 140 147 75 09 i • • ; GO 92 95 70 99 92 95 7L 114 I 74 ! 144 ! 124 82 150 : 133 80 174 03 58 109 40 54 58 54 111 45 00 73 128 93 Petroleum refining Gasoline Kerosene Fuel oil Lubricating oil Coke (by-product) 141 181 69 92 87 (58 140 179 70 93 87 07 RUBBER TIRES AND TUBES 93 90 70 85 88 04 147 185 71 104 94 102 100 103 75 104 63 131 1.10 03 153 121 09 158 00 : 02 : 107 • 49 50 33 : 05 59 107 48 e t>0 r 35 80 107 09 81 05 Tires, pneumat ic Inner tubes. TonACCO PRODUCTS Cigars Cigarettes Bituminous coal.. Anthracite coal Petroleum, crudeZinc Lead Silver 141 '_ 67 i _.-J ; ! '•• : GO 85 8S 07 ! : * As recently revised; see BULLETIN for March, 1932, pp. 194-190. Back figures available on request. Includes also lead and zinc; see "Minerals." For description of these Indexes see BULLETIN for February and March, 1927. 1 j ; ;.u r 59 j 35 " e Corrected ' Kevised. 73 81 110 05 79 60 282 FEDERAL RESERVE BULLETIN APRIL, 1922 FACTORY EMPLOYMENT AND PAY ROLLS [Index numbers of the Federal Reserve Board; adjusted to Census of Manufactures through 1927. 1923-1925 average=100] Factory ernploymen Without seasonal adjustment Industry __ _ __ Steel works and rolling mills Hardware S t r u c t u r a l iron w o r k - ______ _ Heating apparatus Steam fittings Stoves Cast-iron pipe __ - MACHINERY Machine tools Agricultural implements Electrical iuachincrv TEXTILFS AND PRODUCTS A. Fabrics _ _ Cotton goods Woolen and worsted manufactures Woolen and worsted goods Hosierv and knit goods Silk manufactures Dyeing and finishing textiles B. Wearing apparel Clothing, men's Shirts and collars Clothing, women's Millinery FOOD PRODUCTS _ _ _ Baking Slaughtering and meat packing Confectionery Ice Cream Flour _ _ Sugar refining cane ___ PAPER AND PRINTING Printing, book and job Printing, newspapers and periodicals Paper and pulp Paper boxes LUMBER AND PRODUCTS Lumber, sawmills Lumber, mill work" Furniture _- __ TRANSPORTATION EQUIPMENT Car building and repairing.. Automobiles _ .. Shipbuilding LEATHER AND PRODUCTS __ _ _ _. Boots and shoes Leather Clav products Brick, tile, and terra cotta Pottery Glass Cement NONFERROUS METALS AND PRODUCTS . Stamped and enameled ware Brass, bronze, and copper CHEMICALS AND PRODUCTS R U B B E R PRODUCTS Cigars and cigarettes Chewing and smoking tobacco, snuff __ _ ._ Feb. : Jan. 68.1 77.8 53.6 52.4 73.2 04.0 OG.G 60. 1 09.4 52.1 50.4 53.6 54.3 61.8 50.1 59.4 49. ?, 76.3 36.3 35.7 40.4 47.3 29.8 30. S 28.8 34.9 44. 5 30.4 43.6 38.6 64.4 72.4 74.4 73.7 03.1 04.4 55.9 84.9 70. 3 95.1 07.4 08.2 88.1 02.9 ! 71.1 72.9 72.0 58.4 58.7 50.8 85.2 72. 0 93.3 GG. 0 51.7 G8. 1 88.9 02.9 00. 5 57. 1 53.7 40. 5 48.0 39.8 GS. 3 57. 0 S3.8 52.4 37.8 47.5 72.8 50.2 76.9 72.7 03.9 59.8 00.6 56.2 83.2 85.5 115.2 85.4 54.8 70.3 132.7 72.1 83. 89. 82. 78. 81. 75. 70. 7 ; 2 i 0 9 1 • G : 9 ; 85. 3 1)0. 9 83. 8 80.1 81.7 76.7 82. 7 37.2 37.3 38.4 43.0 33.0 32.5 33.4 31.9 45.0 37.3 43.2 49.3 02.9 59.8 00. 3 56.9 50.4 53.4 36.4 73.2 55.8 90.3 58.8 41.G 49.8 84.4 53.9 76.3 81.2 78.7 66.7 69.6 66.2 61.5 S3. 5 83.0 100.8 66.7 67.8 25.9 19.7 27.6 38.2 45.6 37.0 52.0 79.2 61.4 61.9 59.8 32.9 24 3 15.3 48.1 51.0 31.4 45.0 26.8 50.3 72.1 73.0 75 1 45.3 54 2 56. 7 44.2 53 4 51 8 67.4 67.5 70.5 57.8 75.9 54.2 57.2 51.3 57.9 61.2 55.5 57.8 51.1 75.1 75.9 78.0 69. 3 88.9 05.9 65.7 60.0 67.2 80.6 73.7 89.2 93.0 93.1 77.2 75.9 71.4 05. 3 05.3 04.9 82.4 85.4 105.4 80.4 57.2 80.1 116.7 74.3 90. 3 97.1 80. 4 SS. 8 88.6 79.8 81.1 94. 9 100. 9 102. 4 85.6 85.4 56.3 49.9 57.0 74.1 64.9 59. 7 68. 8 88.9 78.4 79.8 73.1 05. 0 02.1 54. 7 82.3 70.9 64.7 66.8 46.8 73.6 94.5 95. 6 97.4 77.4 71 4 72.4 68.7 84 6 86 3 71.2 78. 0 82.8 82.4 70.3 69. 6 67.4 62.3 91.6 95. 2 95. 6 83.9 84.4 80.5 75.2 85. 5 88.8 103. 5 63.1 08. 3 100.7 104.9 112.6 84.9 84.0 2G.6 20.3 30.2 37.9 45.6 38.8 47.3 59.1 44.3 38.0 47.7 81.2 62.2 59.5 61.1 98.0 53.3 52. 5 56.3 68.8 67 6 73.2 31.1 24.1 10. 4 44.3 44.9 31.4 51.4 43 4 35.2 65.3 66 1 53.9 44.9 26.2 50.4 64.4 44.4 70.2 71.4 71.4 75.9 45.4 92 9 89.8 100 8 74.4 53 0 54. 3 48.3 63 8 67.2 50.7 53 0 51 0 69.5 65 3 64 3 73.3 82. 9 87.6 85.1 77.3 70.2 75. 6 73. 6 84. 2 88.8 86.8 78.5 70.0 76. 3 77. 0 89. 4 95.3 89.1 87.0 70. 7 79.8 77.6 87. 3 88. 6 98. 4 80. 7 75.7 89. 0 92. 3 99. 8 80. 4 76.9 95.1 101.9 102.6 85.6 84.2 87. 2 ' 87.7 98. 2 80. 8 1 70.8 I 88. 3 90. 2 99. 4 80. 5 77.4 42.0 34.0 42. 5 ' 64. 4 42.4 35.3 44. 4 61. 0 43. 3 35. 4 i 43.1 : 05. 3 ; 43. 0 30. 9 45. 6 62. 3 55. 4 ! 44. 8 65. 7 84. 2 53. 9 43. 9 03. 4 84. 3 54.0 47.7 56. 2 73.0 65. 2 58. 9 69.8 93.9 55. 6 44. 4 07. 1 80.0 82.4 69. 6 75.7 77 5 08. 3 55. 1 45. 4 • 64. 7 79.8 78.1 80.7 67.5 51.4 • 45. 7 36. 3 71. 5 i 64.1 49. 3 51.6 46. 3 37. 0 70. 0 63. 0 50. 2 56. 0 32.3 64.1 32.7 80.2 : 82. 9 81.2 j 59. 0 j 81.9 85. 3 82.8 57. 7 68.1 i 70. 0 ! 62. 5 | 72 8 73.1 70.1 09 7 71. 2 05. 2 74 3 57.2 ; 33.2 j 65.3 ; 56.8 31.4 65. 4 68 6 70. 3 63.4 71.9 i 71. 6 . 74. 5 1 81.7 85. 9 81. 2 Sfl 3 00. 1 fiO. 7 07. 2 69 0 68. 4 74. 2 80.3 81. 5 75.3 60.7 57. 2 47.6 83.3 69. 0 58.8 68.1 48.0 75.0 95.6 97.4 96.2 81.6 72. 0 72.7 69. 8 83. 4 84. 5 75.6 81.9 75. 4 77.4 07 1 57. 4 74.7 71.0 NOTE.—For description of these indexes see BULLETIN for November, 1929 (pp. 706-716), and November, 1930 (pp. 662-677). Feb. 02.4 ! 05.2 : 58. 6 ! 65. 3 52. G 49.2 : 55.0 49.8 GO. 6 00. 6 66. 3 83.4 80. 7 10S. 1 84. 1 58.7 81.7 120. 8 72.8 47.7 42. 0 33.1 68.6 59.1 45. 7 1931 Jan. 67.8 ' 71.6 73.4 73.0 59. 7 GO. 0 58. 2 84.3 71.5 93.9 00.9 51.6 68.6 91.3 59.4 i • ; : ; 1932 Feb. 70.5 79.1 70.5 80.9 05.0 66.4 63.7 G4.7 81.1 74.0 90.8 99. 6 93.1 79.4 77.4 73.3 7-i.4 : 70. 0 75.0 64.4 05.8 57. 2 85. 9 71.3 97.4 i 70.4 55.7 09. 6 i 95.8 ' 61.6 ! Feb. 77.3 61.2 54.9 59.4 51.0 76. 3 j I i Without seasonal adjustment 1931 1932 Feb. 01.4 i 55 8 58.9 54.4 ! 75.1 j 81.1 ' 84. G ' 80. 2 62 2 i Chemicals and drugs Petroleum refining . __ Fertilizers TOBACCO PRODUCTS 60.3 62.8 63.0 GG. 1 fiS. 8 60.4 59.6 63. 7 67.4 47.9 51.8 49.7 i 48.8 53. 7 '• 47.1 47.9 51.9 48.4 42. 4 31. 5 72.4 62. 3 44. 7 CEMENT, CLAY, AND GLASS___ Automobile tires and tubes Rubber boots and shoes Jan. 67.3 TOTAL—ALL MANUFACTURING INDUSTRIES IRON AND STEEL AND PRODUCTS Adjuste< 3 for seasor al variation 1931 1932 Feb. ... Factory pay r oils 71.9 63.4 72.3 92.9 89.6 283 FEDEKAL KESERVE BULLETIN A P R I L , 1932 WHOLESALE PRICES, BY GROUPS OF COMMODITIES (REVISED SERIES) [Revised index of Bureau of Labor Statistics (784 price series); 1926=100] All commodities Year and month 1927 1928 1929 1930 1931 1931—February... March April.. May-. June.-July August September. October November.. December.. 1932—January February... __• Other commodities : Farm ;- p r o d - •• F o o d s ucts i 99.4 105.9 101.9 88.3 04. 8 7(5. 8 70.1 70. 0 70.0 74.8 70.1 07.1 72.1 05.4 72. 0 ! 04.9 72.1 ! 63.5 7.1.2 | 00.5 70.3 !! 58. 8 70.2 58.7 os. o; 55. 7 52. 8 07.3; 50. 0 00.3 | 95.4 90.7 95.3 80.4 73.0 'Hides and Textile Fuel and Metals Building ChemiM cals a n d f u S Il a ntaoel: Total lighting and metal leather eous drugs products products materials products materials in^oods i 91.0 92.9 91.0 85.2 75. 0 107.7 121.4 109. 1 100.0 80. 1 95. 0 95. 5 90.4 80. 3 (50. 3 71.0 09. 1 78.3 77 2 75*. 9 75. 1 71. 1 73.9 74. 2 73. 9 72.9 73. 5 72. 3 SO. 9 57.6 87.5 87. 0 8S.0 89. 4 88.7 85.0 82. 5 81.0 79.8 70.9 70.0 08.2 07.4 (50. 0 (56. 5 05. 5 01. 5 03.0 02.2 00.8 i)L 7 02. 5 71.7 71.3 79.3 78. 3 59. 9 59. 8 90. 7 i ioi.o ! 99.9 | 90.5 74.0 • 78.0 | 77.0 70.3 73. 8 73.3 74.0 74.0 73.7 73. 3 1930 Subgroups F A R M PRODUCTS: Grains Livestock a n d poultry Other farm products I H I D E S AND LEATHER PRODUCTS: | Boots a n d shoes Hides a n d skins Leather Other leather products 59.5 70.3 73.4 59.6 i 56.0 64.1 ; 61.9 71.5; 70.8 49.0 63. 0 71.3 44.8 67.0 67.3 44.2 i 44.3 61.0 j 57.6 65.4 j 64. 2 83.5 74.5 74.3 83. 6 : 82.0 71.1 . 71.4 74.3 76.2 79.9 69.9 73.1 74.0 • 76.i; 74.4 ' 67.9 ! 78.8 74.3 76.4 71.3 68.5 71.5 74.2 73.4 70.6 82.2 70.9 73.4 76.0 69.6 84.6 70.3 71.0 73.6 68.5 94.8 ! 94.6 94. 9 94.8 62.6 i 65.5 62.1 [ 62.0 88. 4 j 88. 4 ! 88.1 I 87.8 102.0 101.6 I 101.4 I 101.4 93.5 72.7 89.8 101.4 93.5 69.1 90.3 101.4 93.5 58.6 83.4 101.1 76.1 66.8 60.0 43.8 67.4 75.2 75.9 64.0 59.2 43.7 67.4 74.4 75.5 61.5 59.2 43.5 65.7 74.1 92.2 83.7 81.5 98.4 103.2 37.5 94.3 83.9 81.5 100.6 103.4 38.9 102^1 ! 100.8 39.2 ! 83.7 j J 75.7 : 70.9 ! | 88.4 ' \ 74.5 ! 83.0 75.5 95.1 64.4 90.8 102. 3 | ' j : 95.0 57. 7 89.0 102.0 79.1 j 79.1 73.1 64.5 47.0 73.5 77.8 74.2; T E X T I L E PRODUCTS: 83. 5 75.6 72.3 '. 48.2 : 73.9 77.8 F U E L AND LIGHTING MATERIALS: 89.6 ' 89.1 __• 83.8 100. 7 95.4 51.1 M E T A L S AND METAL PRODUCTS: Agricultural implements Iron and steel Motor vehicles Nonferrous metals. 94. 4 86. 6 96.0 71. 7 B U I L D I N G MATERIALS: Brick a n d tile Cement. — Lumber Paint materials Plumbing and heating Structural steel Other building materials 87.1 90.6 78. 2 83.7 85.3 • 81.7 89.3 CHEMICALS AND DRUGS: ! Chemicals -. Drugs and Pharmaceuticals Fertilizer materials Mixed fertilizers HOUSEFUKNISHING GOODS: Furnishings Furniture. 89.9 ; 65.7 81.4 90.6 ; 85. 6 i 92. 5 MISCELLANEOUS: | Auto tires and tubes Cattle feed Paper and pulp Rubber, crude Other miscellaneous : 50.2 78.2 84. 0 .: 18.6 •: 90.3 - 91.0 85.4 82.6 77.7 69.8 88.1 88.0 87.9 8(5. 8 80.4 85. 7 84.9 82. 7 81.0 80.9 78.5 71.5 72.0 71.5 70.5 69.7 69.7 68.3 68.2 66.6 68.7 66.8 77.7 77.5 65.6 64.7 Oct. • N o v . Dec. 60.4 59.3 70.7 69.6 73.6 • 74.2 | 89.2 75.9 75.4 89.2 77.0 i 97.7 69.4 91.5 104.8 97. 5 95.1 94. 3 92.7 S4.9 j I •• _; | ' I ! 90.8 95. 0 94.2 89.1 79. 3 S3. 3 82.9 81.3 80. 5 79. 4 78. 9 70.9 76.3 75.6 7(3.1 76.1 75.7 75.5 94.7 94. 1 95. 4 S9.9 79.2 82.5 82.5 81.5 80.0 79.3 78. 1 77. 0 77.0 76.1 70.2 75.7 74.8 73.4 1931 ! 64.0 62.4 i 76.3 75.2 i 78.1 i 75.3 Butter, cheese a n d milk Cereal products Fruits a n d vegetables Meats Other foods Anthracite coal. Bituminous coal Coke Electricity Gas... Petroleum products 96.3 97.0 100. 5 92.1 84.5 80. 5 8(5. 4 85.7 85.0 84.4 84. 3 83.9 83. 9 82. 8 82.0 82. 2 81.8 80.9 Dec. I J a n . ! F e b . ! M a r . Apr. ; M a y | J u n e | J u l y ' Aug. Sept. FOODS: Clothing... Cotton goods K n i t goods Silk a n d rayon Woolen a n d worsted goods Other textile p r o d u c t s . . . 88. 3 84. 3 83.0 78.5 07. 5 72. 5 6S.3 05.4 65. 3 62. 9 02.9 06. 5 07. 4 07.8 09.4 08.3 07. 9 08.3 1 i ! I i 51.3 ! 47.0 46.7 55.7 j 51.7 53.4 63.1 61.2 54.8 46.1 50.3 52.7 79.8 72.2 63.5 63.2 67.2 67.8 71.0 62.2 61.9 61.9 64.1 69.6 61.8 59.5 59.4 89.2 48.8 78.6 99.7 49.0 77.5 88.5 46.1 76.5 98.8 86.1 I. 7 73.1 65.1 68.2 71.1 : 67.7 68.0 69.7 70.6 : 93.1 50.0 : 80.7 ioi. i : 92. 5 49.0 78.8 ioi. i I 76.9 71.4 60.7 43.4 69.0 76.2 i I 76.9 69.2 60.7 41.4 68.5 76.7 88.9 ' 87.8 ! 83.8 ' 94.5 j 95.8 50.2 ! ! 94.3 ' 85.6 ; 94.4 I 69.5 I 63.4 j 88.4 86.4 86.0 84.4 83.7 83.7 95.9 93.7 94.6 i 96.1 41.8 | 37.4 ! | ! j ' i 87. 5 88.8 90.8 83. 9 83. 2 83.5 83.7 81.5 81.5 97.9 98.0 i 98.6 99.0 ! 101.9 103. 5 30.3 35.9 | 30.7 94.3 85.4 94.0 69.3 94.3 ! 84.1 | 94. 5 67. 5 j 94.3 83.8 94.5 63.3 94.2 83.5 94.2 61.2 94.2 82.7 94.7 61.4 94.3 82.4 94.7 60.1 94.1 82.3 95.4 59.0 85.6 81.7 95.4 54.9 • •' . ! 85.5 81.5 95.2 54.7 85.5 81.0 95.2 53.8 87.0 : 90.3 ! 76.4 | 83.2 • 87.4 : 83.0 ! 87.8 ! 85.0 84.1 74.7 81.4 86.6 84.3 87.6 83.9 ! 81.0 j 73.4 ! 81.2 i 86.6 i 84.3 | 86.9 > 83.7 79.7 69.4 80.2 86.6 84.3 86.3 83.7 77.7 68. 5 80.0 86.6 84.3 85.4 83.4 75. 8 67.2 79.6 86.8 84.3 83.7 82.9 75.8 66.9 78.4 83.8 81.7 83.7 82.6 75.8 66.9 77.6 82.6 81.7 82.6 82.6 ' 75.1 • 65.2 77.0 :: 81.6 81.7 . 82.0 81.4 74.6 65.9 77.5 81.4 81.7 81.9 80.0 74.6 65.8 76.6 79.3 75.2 65.6 75.4 74.1 81.7 ! 77.3 81.5 ; 81.0 79.3 75.3 62.9 75.1 65.8 77.9 80.2 88.3 j 86.6 65. 3 | 65.2 81. 4 81.1 89.1 90. 4 86.4 64.8 80.8 88.7 85.1 ! 83.9 82. 5 j 82. 4 63. 4 I 63. 2 I 62. 6 ! 62. 1 80. 6 i 80. 5 79. 8 ! 78. 7 80.5 i 61.9 ; 74.4 : 78.7 : 79.8 61.7 74.2 77.6 79.7 61.6 70. 2 77.2 80.6 61.3 70. 1 77. 7 80.8 61.0 70.1 77.1 75. 5 80.8 60.1 69.8 73.7 84.9 92.1 84.5 91.9 84.2 !, 83.6 I 83.4 82.8 91. 9 90. 4 i 89. 8 : 89.1 81.7 ! 81.2 84.6 79.8 ; 79.7 82.4 ! 82.3 76. 6 76.1 80.6 79.5 75.9 79.5 46.9 : 81.2 82.1 j 13.3 j 89.3 ! 46.0 ; 50.8 | 80. 6 ! 11.2 = 46.0 44.4 80.7 10.6 86.4 j 86.7 46.0 49. 4 80. 5 10.2 86.9 73.5 i 64.8 ! 49.0 i 73.7 77.2 , 88.9 ; 88.i : 83.8 i 99.9 i 95. 8 !. 50.4 94.4 ' 85.5 ! 95.1 ! 86.3 ! 87.9 ! 74.0 80.5 80.6 84.3 87.8 84.6 92.0 78.1 72.4 63.8 45.8 71.8 77.0 46.9 47.2 46.9 82.1 .0 71.6 82.6 83. 6 I 83.1 17.1 16.1 •• 16. 0 89.9 89. 3 ; 89.6 ; i i 76.3 67.6 59.8 41.9 68.0 75.5 83. 5 i 82. 8 I 82. 4 46.9 67.9 81.5 13.7 88. 5 46. 0 ! 61.1 ! 80.7 i 13.3 I 88. 2 80. 2 46.0 55.8 80.6 13.2 83. 6 I 73.9 j 72.6 70. 8 I 70. 7 I 59. 7 I 58.1 56.4 j 55.8 59.2 ! 59.0 58. 5 j 55. 8 41.7 41.8 39.0 ! 37.7 64.6 64.2 63.9 I 63.3 I 72.4 72. 5 71.3 70.7 | 70.6 56.4 55.8 36.5 63.1 69.7 94.2 83.6 94.8 84.3 80.4 94.2 94.8 94.8 83.7 83.8 84.4 81.4 81.1 80.5 103. 4 104.1 107.5 100.1 98.2 ! 98.6 42.5 39. 6 38. 8 ! ; i i 85.5 95.3 55.4 60.6 i 46.0 40.8 : 39.7 ; 59. 8 53.9 53.0 i 80.8 80.8 • 78.0 I 9. 6 9.5 , 9.3 86.7 85. 9 85.2 38.6 85.1 79.3 95.3 52.7 39.5 48.2 76.7 8.6 84.4 Back figures.—YOT revised indexes of groups, see BULLETIN for March, 1932 (p. 199); indexes of subgroups available at Bureau of Labor Statistics. 284 FEDERAL RESERVE BULLETIN APRIL, 1932 BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING [Value of contracts in millions of dollars. Figures are for 37 States east of the Rocky Mountains, as reported by F. W. Dodge Corporation! 'Public works and! Educational public utilities j Total All other Month 1932 1931 January February March..* April May June July.... August September October November December _ ~ -.- __ Year 1932 1931 96.8 79.0 152.2 133.4 109.6 141.6 117.4 73.3 86.5 83.0 48.0 50.5 ! 228.0 ! 84.8 i 235.4 : 89.0 370.0 : I 336.9 • ; 306.1 ".. i 316.1 "' 286.0 ! 233.1 ! 251.1 ! 242.1 ' 151.2 ; 136.9 311.1 i 3,092.8 BUILDING CONTRACTS AWARDED, BY DISTRICTS 24.1 I 28.3 ; i. ! | ! | 1 ' i 1,171.1 i 1932 1931 i : ' ..! 19.4 16.7 24.3 23.0 23.8 22.5 26.1 19.3 21.2 14.7 11.8 6.1 1931 4.4 10.8 20.5 27.3 35.7 47.1 41.8 43.6 39.8 56. 5 49.3 33.8 27.8 31.0 . 228.8 1932 16.3 11.0 454.3 BUILDING PERMITS ISSUED, BY DISTRICTS [Value of permits in thousands of dollars! [Value of contracts in thousands of dollars: figures for 37 States east of the Rocky Mountains, as reported by the F. \Y. Bodge Corporation] 1932 1931 1932 Federal reserve district Boston New York Philadelphia Cleveland Richmond Atlanta.. Chicago St. Louis Minneapolis.. Kansas City. Dallas -_ i ; . ; i Total (11 districts) ; Jan. 6,917 14.315 6,821 6,731 7,341 5, 603 18,051 6,119 4,654 5,016 7,478 7,175 24,803 8. 400 6, 924 5. 615 5,711 12,628 4, 905 1,371 4, 059 3,205 89,040 i 84, 798 Jan. Feb. Federal reserve district Feb. 1931 I Feb. Feb. 19,517 70, 060 14,143 16,493 19. 660 20,351 29, 011 12,509 5, 507 10,174 17, 973 Boston New York Philadelphia. .. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas C i t y . . . Dallas San Francisco.. 1,780 9,548 1,562 5,890 3,042 1,277 2.073 1.214 574 867 1,479 5,593 Total.... 168 34,929 1,990 17,371 1,373 4.241 2,638 895 1, 314 649 742 841 1.132 6, 359 3.340 31,606 2,257 6.000 8,463 1,891 12, 230 2, 469 1,410 4, 552 3,264 10,843 39,544 i 88,326 235,405 BANK DEBITS COMMERCIAL FAILURES, BY DISTRICTS [Debits to individual accounts. In millions of dollars] [Amounts in t h o u s a n d s of dollars; figures reported b y R. O. D u n Co.] 1932 Federal reserve district 1932 Feb. Boston _ New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.__ Total 1931 Jan. 253 622 159 256 198 154 347 148 66 145 121 263 308 827 215 322 159 188 495 158 74 157 178 377 _-J 2,732 3,458 .; ..: i .- 1 , I ; ' : ! Number of centers Liabilities Number 1932 ! 4,610 6,068 i 25,329 21, 799 ! 6,978 12, 201 i 8,783 9, 628 I 7,970 2,404 5,608 3,410 i 13,917 18, 700 J 2,805 3,918 ! 870 671 2,952 5,692 2,568 4,052 4,707 6,119 Feb. Jan. 1 140 14,381 12, 870 17 676 . 15, 893 20,948 17, 084 11 1,420 14,965 1,261 1,282 490 622 3,155 637 392 1,812 18,380 1,472 1, 723 593 782 3,941 . 406 1,904 456 840 484 2,267 1, 760 21,(507 1,710 1,932 597 860 4,266 809 507 950 511 2,524 27,251 : 33,569 38,031 Feb. 1931 Feb. I Feb. j Jan. Feb. 247 490 115 202 160 183 371 181 69 108 114 323 1931 7,115 8, 728 4,603 7,123 2,382 3,089 5,740 5,158 3,446 1, 226 2,153 8,845 2, 563 i 84,900 I 96,860 59, 608 New York Citv Outside New York City Federal reserve district: Boston New York Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis . __ Kansas City Dallas San Francisco Total 10 13. _. _. 15 21 5 9 15 10 18 141 717 • 819 • FEDERAL RESERVE DISTRICTS Memphis # LiltIe Rock/ !•__, fPa-so—j J 1 1 DALLAS® TEXAS . — ® • O i BOUNDARIES OF FEDERAL RESERVE DISTRICTS BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES FEDERAL RESERVE BANK CITIES FEDERAL RESERVE BRANCH CITIES FEDERAL RESERVE BANK AGENCY