Full text of Federal Reserve Bulletin : April 1936
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FEDERAL RESERVE
BULLETIN
APRIL 1936
ISSUED BY THE
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
AT WASHINGTON
Recent Banking Developments
Agricultural Loans of Commercial Banks
Regulations Under Securities Exchange Act
Regulation of Federal Open Market Committee
********
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 193$
BOARD OP GOVEBNORS OF THE FEDERAL RESERVE SYSTEM
JOSEPH A. BBODEBICK
M. S» SZYMCZAK
JOHN K. MCKEE
MARRINER S. ECCLEB, Chairman
RONALD HANSOM
RALPH W. MOBRISON
CHABLES S. HAMLIN, Special Counsel
LAWRENCE CLAYTON, Assistant to the Chairman
ELLIOTT THURSTON, Special Assistant to the Chairman
CHESTER MOBRILL, Secretary
LISTON P. BETHEA, Assistant Secretary
S. R. CARPENTER. Assistant Secretary
J. C. NOELL, Assistant Secretary
WALTER WYATT, General Counsel
GEORGE B. VEST, Assistant General Counsel
B. MAOBUDER WINGFIELD, Assistant General Counsel
J. P. DREIBELBIS, Assistant General Counsel
LEO H. PAULGER, Chief, Division of Examinations
R. F. LEONARD, Assistant Chief, Division of Examinations
C. E. CAGLE, Assistant Chief, Division of Examinations
FRANK J. DRINNEN, Federal Reserve Examiner
E- A. GOLDENWEIBEB, Director, Division of Research and Statistics
WOODLIEP THOMAS, Assistant Director, Division of Research and Statistics
LAUCHLIN CURRIE, Assistant Director, Division of Research and Statistics
E. L. SMEAD, Chief, Division of Bank Operations
J. R. VAN FOSSEN, Assistant Chief, Division of Bank Operations
J. E. HORBETT, Assistant Chief, Division of Bank Operations
CARL E. PARRY, Chief, Division of Security Loans
PHILIP E. BRADLEY, Assistant Chief, Division of Security Loans
0 . E. FOULK, Fiscal Agent
JOSEPHINE E. LALLY, Deputy Fiscal Agent
FEDERAL ADVISORY COUNCIL
District no. 1 ( B O S T O N ) . . .
District no. 2 (NEW YORK)
THOMAS M. STEELE.
JAMES H. PERKINS.
.
District no. 3 (PHILADELPHIA).
District
District
District
District
District
District
District
District
District
no.
no.
no.
no.
no.
no.
no.
no.
no.
4 (CLEVELAND)
5 (RICHMOND)
6 (ATLANTA)
7 (CHICAGO)
_
8 (ST. LOUIS)—
9 (MINNEAPOLIS)
10 (KANSAS CITY)
11 (DALLAS)
12 (SAN FRANCISCO)
__.
_
_
_
„
WALTER LICHTENSTEIN, Secretary
HOWARD A. LoBB, Vice Preside
_ ARTHUR E. BRAUN.
CHARLES M. GOHEN.
H. LANE YOUNG.
EDWARD E, BROWN.
WALTER W. SMITH, President*
THEODORE WOLD.
W. T. KEMPER.
JO»SEPH H. FROST.
M. A. ARNOLD.
SENIOR OFFICERS OF FEDERAL RESERVE BANES
Federal Reserve
Bank o—
f
Chairman and Federal
Reserve agent
President
First Vice President
Vice President
Boston
F. H. Curtiss
R. A. Young
W. W. Paddock
W. Willett.i
New York
J. Ht Case
G. L. Harrison
Allan Sproul
W. R. Burgess.
L. R. Rounds.
L. F. Sailer.
W. S. Logan.
J. H. Williams.
0. H. Coe
J. S. Sinclair
W. H. HutL
C. A. Mcllhenny.i
M. J. Fleming
F. J. Zurlinden
H. F. Strater.
W. F. Taylor.*
R. H. Broaddus.
J. S. Walden, Jr.
G. H. Keesee.'
H. F. Conniff.
M. W. BelU
0. R. McKay.
J. H. Dillard.
W. H. Snyder."
Philadelphia..
Cleveland--
R. L. Austin
,. E. S. Burke, Jr
Richmond.......... F. A. Delano . . *
Hugh Leach -
Atlanta
Oscar Newton
H. W. Martin
Chicago
R. S. Parker
G.J.Schaller... „... H. P. Preston.
St. Louis
J. S. Wood
Minneapolis. . „ . „ W. B. Geery
J N. Peyton-
Kansas City
Dallas
G. H. Hamilton
0 . A. Worthlngton
B. A* McKinney
R. R. Gilbert
W A Day
Ira Clerks
W.McO. Martin
J. J. Thomas.
„ „ „ C. 0. Walsh
San Francisco...
» Cashier.
0 . M. Attebery
J. G. McConkey.
Harry Yaeger.
H.I. Zlemer.i
J. W. Helm.*
R. B. Coleman.*
W. M. Hale.
C. E. Earhart.i
«Also cashier.
MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANES
Federal Reserve Bank o—
f
New York:
Buffalo branch
Cleveland:
Cincinnati branch
Pittsburgh branch...
Richmond*
Baltimore branch
Charlotte branch
Atlanta:
Birmingham branch
Jacksonville branch
Nashville branch.
New Orleans branch
Chicago:
Detroit branch... .
ft
St. Louis:
Little Rock branch
Louisville branch
Memphis branch
Managing director
R. M. O'Hara.
B. J. Lazar.
T. C. Griggs.
W. T. Clements.
J. H. Frye.
G. S. Vardeman, Jr.
J. B. Fort, Jr.
Marcus Walker.
R. H. Buss.
A. F. Bailey.
J. T. Moore.
W. H. Glasgow.
Federal Reserve Bank o—
f
Managing director
Minneapolis:
R. E. Towle.
Helena branch
Kansas City:
J. E. Olson.
Denver branch
0. E. Daniel.
Oklahoma City branch
L. H. Earhart.
Omaha branch
Dallas:
J. L. Hermann.
El Paso branch
W. D. Gentry.
Houston branch
.
San Antonio branch
-.- M. Crump.
San Francisco:
W. N. Ambrose.
Los Angeles branch
R. B. West.
Portland branch
W. L. Partner.
Salt Lake City branch
Seattle branch
0. R. Shaw.
Spokane branch
D. L. Davis.
SUBSCRIPTION PRICE OF BULLETIN
The FEDERAL RESERVE BULLETIN is the Board's medium of communication with member
th Q I* ° f t h e F e d e r a l R e s erve System and is the only official organ or periodical publication of
e Board. The BULLETIN will be sent to all member banks without charge. To others the 1
subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold;
« 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60;
«ngle copies, 25 cents.
ni
TABLE OF CONTENTS
Review of the month
___
_
Pa*e
-
lllll
Branch offices of banks
218,304
T -Definitive establishment of gold standard in Belgium
219
Revision of tables relating to Governmental corporations and credit agencies and Reconstruction
Finance Corporation
220-223
Agricultural loans of commercial banks
.__-.
224-246
Law department:
Rulings of the Board:
Deposits of municipal corporations not classified as savings deposits
247
Time certificates of deposit payable in 3, 6, 9, or 12 months after date
247
Classificationof'branchclearing^accountsincallreportsandincomputingreservesof member banks 247
Accommodation endorsement by an executive officer of a member bank
248
Secretary of the board of directors of a member bank not an executive officer.__
248
Reports by executive officers of member banks of their indebtedness to other banks
248
Reports by executive officers of member banks of indebtedness to Morris Plan companies
249
Loans to a corporation in which an executive officer of a member bank is interested
249
Loans to partnerships under section 22 (g) of the Federal Reserve Act
250
Regulations under Securities Exchange Act of 1934:
Regulation U and supplement thereto
250-253
Revised supplement to Regulation T
253
Regulation of Federal Open Market Committee
254
Annual report of the Bank of Canada.-256
Annual report of the Bank of Belgium
260
National summary of business conditions
263
Financial, industrial, and commercial statistics:
Reserve bank credit, gold stock, money in circulation, etc
264-268
Member and nonmember bank credit:
All banks in the United States
._
270
All member banks
_..
_
_
269,-271, 272,299
Weekly reporting member banks in leading cities
273,274,300,301
Acceptances, commercial paper, and brokers' borrowings
^
,
275
Discount rates and money rates
.
,
--276
Security prices, bond yields, and security issues
_
~-- 277
Treasury
finance.
_
_
._
278
Assets and liabilities of governmental credit agencies
„
1,
279
Reconstruction Finance Corporation—Loans and investments
279
280
Farm Credit Administration—Loans and discounts outstanding, by institutions
~
Federal Home Loan Bank Board—Loans outstanding, by institutions
2S0
280
Obligations fully guaranteed by the United States—Amounts outstanding, by agencies.
Production, employment, car loadings, and commodity prices
231
Merchandise exports and imports
_,
282
282
Department stores—Indexes of sales and stocks
.__'
Freight-car loadings, by classes
_
_._
282
International financial statistics:
Gold reserves of central banks and governments
__ _
283
fc
Gold production
_
284
Gold movements:
__
_
__
"-__
I
"
,— 284-286
Central banks
_
_
Bank for International Settlements
Commercial banks
„
Discount rates of central banks
Money rates
_
IIIIIIIIIIIIIIIIIIII"III"""I"IIIIIIII- 287-290
_
..._
Federal Reserve statistics by districts, etc.:
Banking and financial statistics
Industrial and commercial statistics
iv
" " """"II".----
III".
I IIIIIH- 22
9
"
_
294
"""
""Ill
Ill----
—_.«»
_.
~
293
_
„
III.II
--IIIIII.I
_
290
291
292
"""!-"*!
------I---IIIIIIIIIIIIIIII
Foreign exchange rates
Price movements:
Wholesale prices
Retail food prices and cost of living
Security prices
_
"""II
~~
"
29
^
^
29
,,.. 29&-304
, . 305-310
'
FEDERAL RESERVE BULLETIN
VOL. 22
APRIL 1936
No. 4
REVIEW OP THE MONTH
immediate-payment basis, while the remainder
Reserve balances of member banks in excess were paid for by increasing Government deof legal requirements, after remaining at about posits at purchasing banks.
_ .. .
$3,000,000,000 since early in
The interest-bearing debt of the Treasury
Decline in
, ,.
, ,
,
,
T
increased by $950,000,000 in March, reflecting
eicess reserves. January, declined sharply after the issuance of these new securities, partly
the middle of March to about offset by the retirement of the Treasury notes
$2,300,000,000 and continued at that level dur- that were exchanged and of about $450,000,000
ing the remainder of the month. This marked of Treasury bills that matured on March 16.
the lowest point reached since the middle of Receipts were also increased in March by inlast year and compared with the temporary come-tax payments of more than $400,000,000
peak of $3,300,000,000 attained in December. and gift taxes of nearly $150,000,000, and exThe decline in excess reserve balances was due ceeded expenditures by about $150,000,000.
to an increase of deposits of the Treasury with As a result of all of these transactions the
the Federal Reserve banks through the receipt working balance of the Treasury increased by
by the Treasury of income and gift taxes and $1,100,000,000 during March, and by the end
of cash payments for new Government secur- of the month Treasury deposits had been built
ities issued on March 16. During the month up to about $1,100,000,000 at the Federal ReTreasury deposits at the Reserve banks rose serve banks and to $1,000,000,000 at other
from about $400,000,000 to $1,100,000,000.
depositary banks.
Public debt operations of the Treasury in
Member-bank developments during March
March included an offer for public subscription were influenced by these Treasury operations*
Treasury
° f a b o u t $650,000,000 of 12-15Loans and investments of weekoperations.
year 2% percent Treasury bonds member1 banks. ] y reporting member banks in
and about $600,000,000 of
leading cities increased sharply,
5-year 1% percent Treasury notes. In addition, while their reserves and deposits, other than
holders of 2% percent Treasury notes maturing Government deposits, declined. Member banks
on April 15 were offered the privilege of increased tboir holdings of direct obligations of
exchanging their notes for either the bonds or the United States Government in connection
the new notes. With a total of $560,000,000 with the new Treasury offerings. During
°i these notes outstanding, exchange subscrip- March reporting member banks also expanded
tions totaled $496,000,000 for the bonds and their holdings of other securities and their loans.
$48,000,000 for the notes. This preference for Deposits decreased during the month as a
bonds marks a change from the situation at result of payments of taxes to the Treasury and
various other times in the recent past when a the purchase by depositors of United States
fhoice has been given the holders of maturing Government securities.
issues. In the case of a similar choice in DeThe decline in excess reserves of member
ce
mber, 61 percent of the exchanges were for banks during March occurred chiefly at New
^
notes rather than new bonds. The new York City banks, as is shown in the accompanyissues in March, including both cash subscrip- ing chart. Early in the month banks outside
™ a n d exchanges, totaled $1,224,000,000 for New York City added to their excess reserves
71® bonds and $677,000,000 for the notes. and built up their balances with New York
bout 7
0 percent of the cash sales were on an
213
214
FEDERAL RESERVE BULLETIN
City banks through the sale in the New York
market of United States Government securities
maturing March 16 or exchangeable for new
issues on that date. Some of these Government securities sold in New York were bought
by New York City banks and some were purchased by dealers with funds borrowed from
APRIL 1936
REPORTING MEMBEB BANKS IN 101 LEADING CITIES
[In millions of dollars]
Banks in New York
City
Banks outside New
York City
Change
Change
f
ii
EXCESS RESERVES OF MEMBER BANKS
Wadntwloy Fig
Street loans
United States Government direct obligations. 3f476
+1
+6
+91
5,384
+318
-193
1,949
-276
-308
2,059
78
-1
Demand deposits—adjusted
5,869
U. S. Government deposits
_
197
Deposits o{ domestic
banks
2,187
+158
-46
Reserve balances
Balances with domestic
banks
these banks. In the 2 weeks ending March 11,
as indicated in the following table, reporting
member banks outside New York City showed
a decline in holdings of Government securities
and increases in reserve balances and in balances with domestic banks* On the other hand,
New York City banks showed a decline in
reserves and increases in holdings of Government securities, in loans to brokers and dealers
in securities in New York City, and in deposits
held for domestic banks.
After the turn of the midmonth, when the
public made large tax payments to the Government and subscribed to new issues of Government securities, there was a reduction
in adjusted demand deposits, which include
deposits of individuals, partnerships, corporations, and State and local governments. New
York City banks, which held a large amount of
maturing obligations, showed a small decline
in their holdings of Government securities,
while banks outside New York City made large
purchases of the new issues and paid for them
partly in cash and partly by credits to Treasury
-129
+66
-84
-264
-348
+152
+2 2,152 -188
+49
7,878
-210
+18
680
+201
3,198
-183
-67
+112
+58
account at the purchasing banks. In transferring funds to the Treasury, banks outside
New York City drew upon their reserve balances and upon their balances with domestic
banks, chiefly in New York City. New York
City banks in turn drew upon their reserve
balances largely to meet the withdrawal of
deposits held for interior banks* This series of
developments is indicated in the table.
These large financial operations occurred
without causing any disturbance in the money
Continued ease market. Notwithstanding the
in money rates, reduction of $700,000,000 in
member-bank excess reserves during the month
and the decline in bankers* balances held in
the larger financial centers, the volume of
surplus funds in possession of banks was
still large. Excess reserves at $2,300,000,000
were sufficient to provide the basis for expansion of bank credit far beyond present or
prospective needs. Balances held by reporting member banks in New York City for other
banks amounted to almost $2,200,000,000, and
those held by reporting member banks outside
New York City, largely on behalf of banks in
smaller cities, to $3,200,000,000.
Notwithstanding the decline in excess reserves during the month, money rates in the
APRIL 1033
FEDERAL RESERVE BULLETIN
New York market remained at the extremely
low level of the past 2 years. The rate on 4 to
6 months' commercial paper remained at
three-fourths of 1 percent, to which it was
reduced by the beginning of 1935, when excess
reserves of member banks had first risen to a
level of about $2,000,000,000. The rate on 90day acceptances continued at one-eighth of 1
percent and short-term Treasury bills sold at a
similar low rate. The average yield on longterm United States Government bonds, which
declined somewhat in January and February,
continued during March at slightly above 2%
percent, the lowest average yield for these
bonds in post-war years. Yields on high-grade
corporation bonds also continued at a low level.
The Federal Open Market Committee, as
reorganized under the Banking Act of 1935,
215
of the Board's Division of Research and Statistics, was elected economist of the committee;
and John H. Williams, vice president of the
New York Reserve Bank, associate economist.
The Federal Open Market Committee appointed an executive committee consisting of
Messrs. Eccles, Ransom, and Szymczak, of the
Board of Governors, and Messrs. Harrison and
Fleming. The Federal Reserve Bank of New
York was selected as the agency to execute the
transactions for the System open-market account, and W. Randolph Burgess, vice president of the Federal Reserve Bank of New York,
was designated by that bank as manager of the
System's open-market account.
By the terms of the Committee's regulations,
which were adopted pursuant to authority contained in the Federal Reserve Act as amended,
all purchases and sales of Government securities
by Federal Reserve banks must be made in
accordance with policies adopted by the Federal
Open Market Committee, and under the law no
Federal Reserve bank may engage in or decline
to engage in open-market operations except as
directed by the Committee. The duty of the
executive committee of the Federal Open
Market Committee is to carry out openmarket transactions in accordance with the
policies adopted by the Federal Open Market
Committee. The executive committee was
also given the duty of allocating the obligations
held in the System open-market account
among the Federal Reserve banks in accordance
with principles determined by the Federal Open
Market Committee. The Committee's regulations also prescribe rules for open-market
operations in obligations other than Government securities.
On March 25 the Board issued a regulation
(Regulation U) relating to loans by banks for the
purpose of purchasing or carryRegulation of
k g stocks registered on nationsecurity loans. / s e c u r i t i e g exchanges^ This
Organization of h e l d i t s first m e e t i n S o n M a r c h
Federal Open
18 and 19, 1936, and adopted
Market Com- regulations relating to openmarket operations of the Federal Reserve banks. These regulations appear
on page 254 of the BULLETIN. The new committee is composed of all members of the Board
of Governors of the Federal Reserve System
and five representatives of the Federal Reserve
banks. The representatives of the Reserve
banks elected to membership on the Federal
Open Market Committee include G. L. Harrison, president of the Federal Reserve Bank of
New York; M. J. Fleming, president of the
Cleveland Reserve Bank; G. H. Hamilton,
president of the Kansas City Reserve Bank;
and B. A. McKinney, president of the Dallas
Bank; and there remains a vacancy to be filled
* y the boards of directors of the Federal
>
Reserve banks of Chicago and St. Louis.
M
- S. Eccles, chairman of the Board of Governors, was named chairman of the committee;
G- L. Harrison, president of the Federal Reserve
•oank of New York, was elected vice chairman;
JAester Morrill, secretary of the Board of
governors, was chosen secretary; Walter regulation, which applies to all btaks in the
Wyatt, the Board's counsel, was elected counsel United States, whether or not members of the
of
of
tte committee; E. A. Goldenweiser, director Federal Reserve System, was issued pursuant
216
FEDERAL RESERVE BULLETIN
APEIL
1936
In order to place borrowing for speculative
to the provisions of section 7 of the Securities
purposes, whether the borrowing be from
Exchange Act of 1934 and relates to loans made
on or after May 1, 1936. It is not retroactive. brokers or from banks, on as nearly an even
The Board fixed a margin requirement of 55 basis as the law and the differences in the nature
percent on loans subject to Regulation U, except of the enterprises will permit, and in order to
for certain loans to brokers and dealers in secu- be in a better position to control a speculative
rities. At the same time the Board changed, expansion, the Board adopted Regulation U and
effective April 1, the margin requirements fixed imposed the same margin requirements on both
in its Regulation T, which relates to loans made classes of lenders.
Adoption of these restrictions at this time
by brokers and dealers in securities, to bring
them into conformity with the margins required has the advantage of providing for control of
the use of credit for speculation in secuiities
under Regulation U for loans by banks.
The Secuiities Exchange Act of 1934 required without limiting the supply oi raising the cost
the Board of Governors of the Federal Reserve of credit available for commercial, industrial,
System to issue regulations with respect to or agricultural borrowers.
loans on registered securities by brokers and
Regulation U relates only to loans made for
dealers in secuiities. In order to prevent cir- the purpose of purchasing or carrying stocks
cumvention of the provisions of the act it
registered on national securities
also authorized the Board to issue regulations Scope of Regu- exchanges. It does not restrict
relating to loans made by others for purchasing lation U.
the right of a bank to extend
or carrying registered securities.
credit, whether on securities or
In accordance with the law, Regulation T, otherwise, for any commercial, agricultural, or
relating to loans by brokers and dealers, was industrial purpose, or for any other purpose
issued by the Board, effective October 1, 1934. except the purchasing or carrying of stocks
During most of the period since that time bank registered on a national securities exchange. It
loans on securities, except those to brokers and does not prevent a bank from taking for any
dealers, declined, but within recent months the loan collateral in addition to that required by
decline has ceased. Since there has been dur- the regulation, nor does it require a bank to
ing this period a continued liquidation of old reduce any loan, to obtain additional collateral
security loans, it would appear that banks have for any outstanding loan, or to call any outbeen making new loans on securities.
standing loan because of insufficient collateral.
During the past year stock prices have shown
Certain loans to dealers in securities to
a sustained advance, trading activity on stock aid in financing the distribution of securities
exchanges has increased, and brokers' advances are not subject to Regulation U. Loans to
to their customers and their borrowings from banks are also exempt from the provisions of
banks have also expanded. Required margins Regulation U, as are loans to finance transacon loans by brokers to customers increased dur- tions in securities that are essentially cash
ing the period largely as a result of the auto- transactions.
matic operation of the margin formula preThe loan values prescribed in Regulation U
scribed in Regulation T and partly because of apply to loans (other than exempted loans)
an increase in margin requirements made by secured by stocks, whether or not registered,
the Board effective February 1, 1936. As a and made for the purpose of purchasing or
result of these increases in margin requirements carrying stocks registered on a national
on loans by brokers there was a growing differ- secuiities exchange. A loan secured excluential between the amount that could be bor- sively by a bond or made for the purpose of
rowed on a given security from a broker and
purchasing or carrying a bond is not subject
from a bank.
to the regulation, nor is a loan made solely for
FEDERAL RESERVE BULLETIN
APRIL 1936
the purpose of purchasing or carrying stocks
that are not registered on a national securities
exchange.
Loan values prescribed under Regulation U,
as under Regulation T, apply only to the initial
extension of credit and to substitutions and
withdrawals of collateral. The entire indebtedness of a borrower to a bank incurred on or
after May 1, 1936, for the purpose of purchasing or carrying registered stocks and all the
collateral securing such indebtedness are to
be considered together in determining whether
any collateral is available for withdrawal or for
an increase in the loan. The regulations do not
require lenders to call for additional collateral
if the margin falls below the prescribed amount
as the result of a decline in the market. Even
though the margin on an outstanding loan
should be thus reduced, a bank may make an
additional advance to a customer provided
additional collateral is furnished sufficient to
margin the amount of the additional loan.
The loan value of stocks serving as collateral
security for a loan of the type covered by Regulation U, except in the case of
Margin require- certain loans to brokers or
ments adopted dealers in securities, was fixed
by the Board at 45 percent of
the current market value of the stocks, equivalent to a margin requirement of 55 percent.
The Board also prescribed the same loan value,
effective April l, for collateral in loans of the
type covered by Regulation T and thereby discontinued previously prescribed loan values,
which were in the nature of a sliding scale
depending upon the extent to which the prices
°* the securities had advanced from their low
points since July 1933.
In the case of loans by banks to brokers and
dealers who extend credit to their customers in.
accordance with Regulation T, the Board fixed
1X1
Regulation U a special loan value of 60 percent or a margin of 40 percent of the current
inarket value for registered stocks which such
rokers and dealers are carrying for the account of customers. The same margin was
xed for
loans by brokers and dealers to other
57363—36
2
217
brokers and dealers subject to Regulation T or
to foreign brokers and dealers for the purpose
of carrying accounts for their customers. The
margin required on such loans had previously
been 20 percent. The lower margins required
from brokers when they borrow to carry their
customers put the brokers in a position to obtain funds by repledging a somewhat smaller
amount of securities than the amount which the
customers have to pledge with them to obtain
the same amount of money. It appears that
brokers and dealers need such a differential because they frequently find it necessary to make
payments and to deliver securities in connection
with purchases and sales for their customers
prior to the receipt of payments or of securities,
and because they need to have in their possession sufficient securities to enable them to make
deliveries and transfers without delay. Loans
to brokers and dealers collateraled by their own
securities (other than exempted loans) are subject to the same margin requirements as are
loans to persons other than brokers and dealers.
In prescribing a minimum margin of 55 percent, the Board departed from the formula
stated as a standard but not prescribed in the
Securities Exchange Act. Modification of the
margin formula laid down in the act, in accordance with changes in conditions, is specifically
authorized by the act.
The so-called statutory formula provided for
a sliding scale of required margins varying from
25 to 45 percent of current market value, according to the extent that a security may have
advanced in price above its lowest price since
July 1, 1933. Effective February 1, 1936, the
Board changed the maximum margin required
from 45 to 55 percent of current market value.
The operation of this margin formula, which
had brought about increases in margin requirements on loans by brokers during the past year
of rapid rise in security prices, was discussed in
the BULLETIN for February 1936.
Under this formula there occurred an automatic advance in margin requirements with
rising prices of securities. The average level
of margin requirements on actively traded
218
FEDERAL RESERVE BULLETIN
securities had advanced, without any action by
the Board, from about 30 percent of current
market value at the time of the issuance of Regulation T in October 1934 to over 40 percent
early this year. This result was one of the
merits of the statutory formula.
•The reason for the automatic increase in the
required margin was that the loan value of a
security remained unchanged during a rise in
its price from 133 percent to 182 percent (222
percent since February 1, 1936) of its lowest
price, with the result that profits could not be
withdrawn or used as margin for additional
purchases. This so-called "antipyramiding"
aspect was another advantage of the statutory
formula as a means of restricting the use of
credit in the stock market.
These advantages of the statutory formula—
the automatic increase injmargins and the limitation on pyramiding—had by March 1936,
however, ceased to operate for most securities,
since the margin required^on most active stocks
had reached 55 percent. Further price increases for these securities would not have
resulted in higher margins, and pyramiding
was possible, though only to the extent of 45
cents on each dollar of advance in price.
In the Board's judgment, furthermore, the
statutory formula would have been unnecessarily onerous for banks, since few banks have
a large volume of security loans or familiarity
with market quotations and with the intricacies of a security-loan business. A single figure
expressed as a percentage of current market
value, on the other hand, is simple, easily understood, and is generally used by banks in determining margin requirements on security loans.
It was the judgment of the Board, therefore,
that in the existing banking situation a flat rate
for banks would best serve the public interest.
For the sake of uniformity the same requirement was adopted also for loans by brokers.
Adoption of the 55-percent requirement in
Regulation T has placed all the securities on the
basis that was previously required for securities that had had a rapid rise in price. About
A P R I L 1936
three-fourths of the trading in securities was
already on this basis, and the new rules raised
the requirements for all securities to the same
level. The newly adopted margin requirements, therefore, caused no relaxation in requirements as compared with the statutory
formula as it was then operating. At the same
time the new margin requirements greatly simplified operations under the Board's regulations.
Changes in Officers at Federal Reserve Banks
On March 13, 1936, the Board approved the
appointment by the board of directors of tho
Federal Keserye Bank of Philadelphia of
Messrs. J. S. Sinclair as president and W. H.
Hutt as first vice president of the bank, each
for the unexpired portion of the 5-year term
ending February 28* 1941.
On the same date the Board approved tho
appointment by the board of directors of the
Federal Reserve Bank of Richmond of Mr.
Hugh Leach as president of the bank, for the
unexpired portion of the 5-year term ending
February 28, 1941.
Effective March 17, 1936, the Board designated Mr. Frederic A. Delano as chairman and
Federal Reserve agent at the Federal Reserve
Bank of Richmond.
Effective April 1, 1936, the Board approved
the appointment by the board of directors of
the Federal Reserve Bank of San Francisco of
Messrs. W. A. Day as president and Ira Clerk
as first vice president of the bank, each for the
unexpired portion of the 5-year tettn ending
February 28, 1941.
Effective at the close of business on Marcn
31, 1936, Mr. Eugene M. Stevens resigned as
class C director of the Federal Reserve Bank of
Chicago and as chairman and Federal Reserve
agent at that bank.
Branch Offices of Banks
On December 31,1935, there were 798 banks
operating branches (exclusive of mutual savings
and private banks), compared with 715 sucn
banks on December 31, 1934, an increase oi o*
banks operating branches. Most of the increase
in the number of banks operating branches
occurred in Iowa, North Carolina, Indiana, ana
Wisconsin. The number of branches in opera-
1936
FEDERAL RESERVE BULLETIN
tion on December 31,1935, was 3,099 compared
with 2,973 one year earlier. The increases in
the number of branches in operation occurred
principally in Iowa, North Carolina, South
Dakota, Washington, Oregon, Indiana, and
Wisconsin, The increase was entirely among
branches outside the head-office city, the number in the head-office city declining during the
period. Following is a summary showing
changes in the number of banks operating
branches and in the number of branches in
operation during the last 10-year period:
219
Definitive Establishment of Gold Standard
in Belgium
The Belgian Government, by royal decree
published in the Moniteur Beige and effective
April 1, 1936, definitely fixed the gold content
of the belga at 0.150632 gram fine gold, equivalent to 72 percent of the gold content established in 1926; made obligatory the redemption
in gold of notes issued by the Na.tional~Bank;
abolished the exchange equalization fund; and
decreed that the gold and foreign exchange
holdings of the National Bank should be revalued on the basis of the new gold content of
NUMBER OF BANKS WITH BRANCHES AND NUMBER OF the belga. The text of the decree has not yet
BRANCHES IN THE UNITED STATES, 1925-35
been received.
In the BULLETIN for May 1935 translations
Number of branches * were given of the law of March 30 and the
decree of March 31, 19352 under which the
Number
of batiks
Year
belga was tentatively stabilized on the basis of
with 1 In head- Outside
branches office head- Total
72 percent of its former gold content; the reoffice
city
city
serves of gold and foreign exchange of the
National Bank of Belgium were provisionally
December 1925
2,524 revalued on the basis of 75 percent of the former
800
719 1,724
June 1927
2,912
1,958
954
739
June 1930'
3,518 gold value of the belga; and the exchange
1,131
750 2,387
December 1932
3,191 equalization fund was created out of the incre1,127
680 2,064
December 1933
2,752
1,101
575 l f 651
December 1934
2,973 ment resulting from revaluation, which accrued
1,331
715 1,642
December 1935-_.
3,099
1,488
798 1,611
to the State. The present increment from
revaluation of the bank's gold and foreign
J Exclusive of mutual savings banks and private banks.
exchange holdings on the basis of 72 percent,
Date on which largest number of branches were reported.
instead of 75 percent, of the former gold parity
Detailed statistics of the number of banks also accrues to the State. Later decrees modimaintaining branches and the number of fying or extending the measures taken in March
branches, by class of banks and by States, as were given in translation in the BULLETIN for
June 1935.
of December 31, 1935, appear on page 304.
220
FEDERAL RESERVE BULLETIN
APBIL 1936
REVISION OF TABLES RELATING TO GOVERNMENTAL CORPORATIONS AND
CREDIT AGENCIES AND RECONSTRUCTION FINANCE CORPORATION
The regular tables on the assets and liabilities
of governmental corporations and credit agencies and on the loans and investments of the
Reconstruction Finance Corporation are presented in this issue of the BULLETIN in a revised
form giving a more useful arrangement of the
data (see p. 279).
The first of these tables is derived from data
published monthly in the daily statement of
the United States Treasury. The Treasury
statement includes 20 individual agencies or
groups of agencies; in previous issues of the
BULLETIN only three further consolidations
were made. The agencies are now shown in
nine groups. Of the agencies financed wholly
from Government funds the Reconstruction Finance Corporation, the Commodity Credit Corporation, and the Public Works Administration
are shown individually in the revised tab] e. The
regional agricultural credit corporations are
grouped with the production credit corporations
which have superseded them. The ExportImport banks and the United States Shipping
Board Merchant Fleet Corporation are combined with the "other" group. Among the
agencies financed partly from Government
funds the Federal land banks and the Federal
Farm Mortgage Corporation are now shown
together, as are the Federal intermediate credit
banks and the banks for cooperatives. A
''home-mortgage" group includes the Federal
home loan banks, the Home Owners' Loan
Corporation arid the United States Government
interest in Federal savings and loan associations. The remaining institutions partly financed from Government funds, which are
grouped together, are the Federal Savings and
Loan Insurance Corporation, the Federal
Deposit Insurance Corporation, and the War
Finance Corporation.
Data for individual agencies or groups of
agencies are shown for the latest month. Comparative totals are shown for the preceding
month and the same month of the preceding
year.
Loans are given in five classifications, which
represent groupings of more detailed items
shown in the Treasury statement. Subtotals
are shown for the sum of loans and preferred
stock, capital notes, and debentures.
The classification of investments is revised
to show separately not only United States
direct obligations and obligations of Government credit agencies fully guaranteed by the
United States but also other obligations of
Government credit agencies, which include
Federal land bank bonds and Federal intermediate credit bank securities, and the class A
stock of production credit associations. Production credit corporations provide the initial
capital of production credit associations by
purchasing their class A stock. The production credit associations are chartered and
regulated by the Governor of the Farm Credit
Administration, but since they are formed by
private individuals they are not regarded as
governmental agencies. However, because of
the nature and the size of the production credit
corporations' investment in these associations,
these stock holdings are not grouped with other
miscellaneous investments. Such other investments of Government credit agencies comprise
railroad bonds and securities, ship sales notes
and other investments amounting to about
$20,000,000 in recent months and are included
in "all other assets" in the revised table, a category which includes also real estate and
business property, which were formerly shown
separately.
The amount of Federal land bank bonds
held by the Federal Farm Mortgage Corporation is subtracted from securities held by the
Federal Farm Mortgage Corporation and from
total assets on the assets side of the statement
and from obligations of the Federal land banks
and from total liabilities on the liability side.
As shown in the data published by the Treasury
this amount represents a duplication on the
one hand of mortgage assets of the Federal
land banks and on the other hand of outstanding guaranteed bonds of the Federal
Farm Mortgage Corporation. From March
1934 to December 1935 the Federal land banks
made mortgage loans in cash or in Federal
Farm Mortgage Corporation bonds, which in
both cases were obtained from the Federal
Farm Mortgage .Corporation in exchange lor
Federal land bank bonds.
,.
The figures for guaranteed bonds outstanding
differ from those shown in the BULLETIN table
on page 280, principally because the amount oi
Home Owners' Loan Corporation bonds in tne
latter table is that actually outstanding ana
excludes unissued bonds against loans m
process.
The accompanying table presents totals on
the revised basis for the combined governmental
corporations and credit agencies as of tne
APEIL
221
FEDERAL RESERVE BULLETIN
1936
end of each month from December 1934 to
December 1935. Revisions have been made
in the figures as originally published for certain
early months. For the period December 1934
to March 1935 Reconstruction Finance Corporation relief advances to States under the Federal Emergency Relief Act of 1932 have been
excluded to make the figures comparable with
Treasury figures as published for subsequent
months. Relief advances by the Reconstruction Finance Corporation to municipalities
and other political subdivisions, amounting to
$18,000,000 in each of these months, have been
transferred from all other assets to all other loans
for the same reason. Similarly, Federal Doposit Insurance Corporation assessments have
GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, DECEMBER 1934-DECEMBER
1935
PRINCIPAL ASSETS AND LIABILITIES JI T END OP MONTH
[In millions of dollars]
Dec.
1934
Apr.
1935
June
Jan.
1935
Feb.
1935
933
846
2,513
2,652
411
'978
792
772
738
813
756
856
836
711
688
896
873
877
878
881
876
876
883
871
868
874
2,544 2,569 2,590 2,626 2,658 2,689 2,727 2,765 2,812 2,855
2,764 2,777 2,821 2,859 2,876 2,899 2,922 2,944 2,960
2,712
707
683
492
533
610
706
682
690
444
420
'994 ' 1,029 1,018 1,057 1,100 1,120 1,166 1,148 1,168 1,186
Mar.
1935
May
1935
1935
July
1935
Aug.
1935
Sept.
1935
Oct.
1935
Nov.
1935
Dec.
1935
ASSETS
Loans and preferred stock:
Loans tofinancialinstitutions.984
837
Preferred stock, etc
2,394
Home mortgage loans.
Farm mortgage loans
„
2,597
Other agricultural loans
402
'953
All other loans,...
Total loans and preferred stock . .
' 8,168
Cash
322
United States direct obligations
469
Obligations of Government credit agencies:
Fully guaranteed by United States
230
Other i__
17
Production credit association class A stock90
Accounts and other receivables
127
'361
All other assets
Total assets other than interagency L. ' 9,784
679
877
2,897
2,924
677
1,121
8,584 •8,724
8,895
9,024
9,131
9,158
9,199
9,254
9,175
336
469
352
469
453
444
367
448
320
451
376
452
363
451
337
433
319
449
220
47
77
168
370
220
46
77
165
378
220
46
77
175
374
222
46
77
179
340
219
47
77
180
353
218
38
77
186
358
215
37
77
1P3
370
215
29
77
191
402
215
2S
77
243
410
' 9,936 ' 10,084 '10,204 10,272 10,430 10,683 10,702 10,778 10,861 10,906 10,938
10,915
' 8,332 '8,434
'8,534
337
467
226
33
77
155
'356
339
469
215
49
75
159
'363
326
469
226
12
90
127
'354
LIABILITIES
Bonds,1notes and debentures:
Eg * guaranteed by United States
3,312 3,489
utner t
1,791 1,785
Other liabilities <faSudili"SSVS)V."IIIII 225
206
Total liabilities other than interagency i
E
5,327
5,480
3,596
1,778
224
3,658
1,789
238
3,707
1,788
218
3,775
1,800
200
4,168 4,245
1,515 1,398
200
219
4,290
1,388
216
4,411
1,376
234
4,466
1,357
254
4,507
1,335
261
4,546
1,335
286
5,598
5,684
5,714
5,776
6,902
5,842
5,894
6,021
6,078
6,102
6,166
f
f f i ° ^sets over liabilities, excluding
mteragency transactions
....
' 4,457 ' 4,456 '4,487 '4,520 4,559 4,655 4,781 4,860 4,884 4,840 4,828 4,836
343
357
356
357
354
352
348
335
333
327
Privately owned interests. ,
" " " '312 ••314
4,428 4,506 4,527 4.483 4,473 4,493
U. S. Government interests
' 4,145 '4,142 ' 4,159 ' 4,187 4,224 4,307
4,749
340
4,409
1 Re v ^ d i s ^deral land bank bonds held by Federal Farm Mortgage Corporation.
been counted as a part of the privately owned
"wrests in December 1934 and January 1935
«s was done in the Treasury figures for other
^onths. For these two months a further revision h a s been made in the figures for all other
ans to correct errors previously reported in
m e amount of loans to railroads under the
^ansportation Act of 1920.
it! 6 taJ?*e dealing with the Reconstruction
™
Corporation is derived from monthly
by the Corporation to Congress, and
revisions are later made on the basis of quarterly reports to Congress. In the form in
which it is published in this issue of the
BULLETIN this table shows only the outstanding
loans and investments of the Reconstruction
Finance Corporation and excludes statutory
allocations of funds and amounts undisbursed.
The classification of loans and investments
other than interagency transactions is in general the same as that employed for loans and
preferred stock in the new BULLETIN table for
FEDERAL RESERVE BULLETIN
222
governmental corporations and credit agencies.
Loans on preferred stock of banks and insurance companies are shown separately from loans
made directly to financial institutions, since,
like purchases of preferred stock, they were made
for the purpose of strengthening capital structures. Additional details are given for "all
other" loans. The subtotal of loans and investments, exclusive of transactions with other
Government agencies, corresponds to the
similar total for the Reconstruction Finance
Corporation in the combined statement for
governmental credit agencies, except that it
does not include outstanding amounts of advances to municipalities and other political sub-
APRIL
1934
divisions under the Federal Emergency Relief
Act of 1932 and except as the figures have been
revised since publication in the Treasury table.
The total of all loans and investments in the
new table corresponds, except for revisions, to
totals shown in earlier issues of the BULLETIN
for loans and purchases by the Reconstruction
Finance tCorporation, excluding allocations.
The following table gives the revised classification of loans and investments of the
Reconstruction Finance Corporation monthly,
from February 1932 to August 1935, on the
basis of the latest revised figures published by
the Reconstruction Finance Corporation.
RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS, F E B R U A R Y 1 9 3 2 - A U G U S T
1935
[Amounts outstanding. In thousands of dollars]
July 31,
1932
Aug. 31,
1932
Feb. 29,
1932
Total loans, other than interagency
Loans to Federal land banks
Total all loans and investments."
-
May 31,
1932
June 30,
1932
39,527
31,322
128,488
54,966
258,206
73,782
387,666
86,865
584,636
139,487
687,615
164,043
752,876
205,781
183,454
331,988
474,631
724,123
851,657
9,000
958,657
9,000
70,850
._
Apr. 30,
1932
70,850
Loans to financial institutions
Loans to railroads (including receivers)
Mar. 31,
1932
183,454
331,938
474,631
724,123
860,657
967,657
Nov. 30,
1932
Dec. 31,
1932
Sept. 30,
1932
Oct. 31,
1932
Jan. 31,
1933
Feb. 28,
1933
Mar. 31,
1933
Loans to financial institutions
Loans on preferred stock of banks and insurance companies
754,803
801,722
803,892
831,427
851,267
942,389
Agricultural loans
Loans to railroads (including receivers)
Loans for self-liquidating projects
218,410
450
241,431
1,276
249,952
360
1,325
272,472
15,737
1,213
280,041
18,337
1,227
296,229
18,664
976,476
250
12,600
1,205
310,920
20,684
973,213
1,043,603
1,055,480
1,120,960
1,150,858
1,258,509
1,322,034
18,500
5,371
18,800
20,637
18,800
37,005
18,800
65,380
1,396,214
.
.
..
—
Total loans and investments, other than interagency
Loans to Federal land banks
Loans to regional agricultural credit corporations
11,450
984,663
Total all loans and investments
14,300
1,057,903
1, OH, 280 1,144,832
1,190,195
1,314,314
May 31,
1933
June 30,
1933
Aug. 31,
1933
Sept. 30,
1933
Apr. 30,
1933
Loans to financial institutions
Loans on preferred stock of banks and Insurance companies
Preferred stock, capital notes, and debentures
Agricultural loans
Loans to railroads (including receivers).
Loans for self-liquidating projects
Total loans and investments, other than interagency
Loans
Loans
Loans
Loans
to
to
to
to
Federal land banks
regional agricultural credit corporations
Commodity Credit Corporation
Secretary of Agriculture on cotton
. Total all loans and investments....
*_.. .
15,800
*&"•
968,650
250
20,083
2,444
323,195
25,126
1,019,248
1,250
24,233
2,723
340,855
27,231
996,094
8,180
35,283
2,741
354,059
30,134
990,648
8,220
43,428
4,691
331,334
37,972
1,009,724
8,773
50,553
6,320
331,160
41,801
993,917
8,949
54,153
6,254
331,813
48,636
1,339,748
1,415,540
1,426,492
1,416,195
1,448,331
1,443,622
19,800
72,586
20,300
93,196
21,800
106,636
23,800
115,925
25,800
91,676
28,800
67,700
36,300
3 300
3,300
1,543,422
1,522.384
-
1,432,134
1,529,036
1,554,828
1,555,920
1,565,707
330,243
56,038
1,433,849
223
FEDERAL BESERVE BULLETIN
APRIL 1
RECONSTRUCTION F I N A N C E C O R P O R A T I O N L O A N S A N D I N V E S T M E N T S , F E B R U A R Y 1 9 3 2 - A U G U S T 1 9 3 5 — C o n t i n u e d
[Amounts outstanding.
In thousands of dollars]
Nov. 30,
1933
Loan£to financial institutions
Loans on preferred stock of banks and insurance companies
Preferred stock, capital notes, and debentures
Agricultural loans
—...
Loans to railroads (including receivers)
Loans for self-liquidating projects..
Loans to drainage, levee, and irrigation districts
Other l oans. . . . . . . . . . .
.
*._....
Total loans and investments, other than interagency
Loans to Federal land banks.—.
.—
Loans to regional agricultural credit corporations
Loans to Commodity Credit Corporation.
Loans to Secretary of Agriculture on cotton
Preferred stock of Export-Import banks
Total all loans and investments..
Dec. 31,
Jan. 31,
1934
Feb. 28,
1934
M a r . 31,
1934
Apr. 30f
1934
9,470
100,636
7,248
333, 486
60,020
1,016,590
14,818
400,040
12,640
340,854
71,497
2,414
5,502
988,457
15,132
444,335
14,500
345,320
71,217
2,414
6,068
933,744
16,546
568,381
15,232
345,323
80,195
2,525
4,175
909,094
fi,895
1,035,217
14,674
253,901
10,3S9
337,166
63,451
2,414
5,820
631,011
16,506
345,090
82,666
2,643
2,652
890,06a
30,931
676,474
16,681
344,950
88,448
4,150
1,783
1,515,353
1,723,032
1,864,356
1,886,444
1,966,122
2,019,116
2,053,482
72,800
34,566
31,636
3,300
142,118
29f8S5
64,583
193,618
28,383
130,879
193,618
29,145
153,525
193,618
22,031
161,813
193,618
14,295
163,078
193,618
8,884
167,945
10,000
12,500
12,500
12,600
2,356,134
2,402,607
2,436,429
Oct. 31,
1934
Nov. 30,
1934
Dec. 31,
1934
Loans to industrial and commercial businesses
Loans to drainage, levee, and irrigation districts
uiner loans. . . . .
Securities purchased fronf Public Works Admiiiistrationl"
Total loans and investments, other than interagency—
Loans to Federal land banks.
T2X52 +° ™ZionBi agricultural credit corporaVlons."".!.!
pSfiSf Ac.OIm?odity
Credit Corporation.
Preferred stock of Export-Import banks
Total all loans and investments
1,959,619
2,217,236
June 30,
1934
Loans to financial institutions
Loans on preferred stock of banks and insurance companies.
Preferred stock, capital notes, and debentures
Agricultural loans
1,657,655
2,272,732
July 31,
1934
Aug. 31,
1934
Sept. 30,
1934
20,873
353,491
112,197
3,233
11,147
23,536
812,045
42,832
819,985
20,685
361,830
117,025
4,166
11,321
23,136
840,028
47,257
834,360
19,366
376,894
122,696
6,626
12,298
505
1,629
2,162,223
2,178,560
2,213,026
2,261,559
115,955
3,747
76,430
12,500
115,155
2,620
42,969
12,500
110,688
78,455
812,727
42,371
798,387
18,534
343,595
111, 178
1,918
9,479
24,036
802,956
42,738
8,165
2,646
825,384
42,088
774,630
18,136
343,482
107,265
274
9,182
24,405
2,158,521
2,107,666
2,144,846
193,618
6,631
202,559
12,500
124,864
6,166
157,667
12,500
116,357
4,646
108,646
12,500
31,242
786,812
17,380
353,637
93,004
842,362
31,759
752,935
18,996
354,742
96,061
4,636
3,481
2,573,829
2,408,863
2,386,995
2,370,855
2,351,804
Jan. 31,
1935
Loans to financial institutions
utions
&
P ee r dstock of banks and insurance companies
rfre t k f b k
? P l t a I n ° teS ' and debentures
May 31,
1934
Feb. 28,
1935
Mar. 31,
1935
Apr. 30,
1935
May 31,
1935
June 30,
1935
794,972
47,515
843,997
19,325
379,464
125,406
8,513
XM10
763,043
47,699
865,738
19,837
379,702
127,827
10,647
16,978
53
1,356
727,6S8
48,329
872,037
20,277
706,907
48,327
869,219
21,463
386,612
134,507
14,652
23,507
76
15,282
681,416
48,183
871,449
22,140
413,414
137,550
17,678
25,815
84
15,753
658,213
48,316
876,380
22,398
414,344
146,689
21,746
27,596
2,476
16,167
30,242
12,500
12,500
2,366,456
2,385,877
July 31,
1935
Aug. 31,
1935
637,310
48,203
873,557
22,979
413,338
148,745
25,917
29,181
2,030
16,190
615,908
48,217
874,275
22,875
413,350
155,172
29,502
32,790
2,253
112,849
2,526,895
2,360,319 2,355,759 2,356,777 2,362,683 12,377,912 12,462,380
2,634,691
132,360
S
£ H
« n g projects......
12,738
L 2 £ J S L n ( l u s t r i a l and commercial businesses
21,292
53
oS£? loanf m a g 6 > l e V e e ' a n d i r r i S a t i 0 * districts
17,490
Securities purchasedfrom'Pabijic'WorlEsA
2,217,452 2,307,192
Total loans and investments, other than interagency. [2,234,716 2,232,880 2,232,463 2,220,553 2,233,483 2,234,326
57,883
58,277
59,873
70,474
72,263
74,473
76,964
Loans to Federal land banks
249,556
148,181 231,166
55,530
49,156
39,552
35,905
36,139
m m o d i t l o careditcOTporation:::::::::::::
10,060
10,000
10,000
10,000
10,000
n s fc
' ^
°. B- *\ C. Mortgage Co
10,000
10,000
10,000
12,500
12,500
12,500
12,500
12,500
of Export-Import banks
d a
hSs
di"
Total all loans and investments
224
FEDERAL RESERVE BULLETIN
APRIL
1936
AGRICULTURAL LOANS OF COMMERCIAL BANKS
The loan activities of commercial banks,
particularly in rural areas, arc closely interrelated with agricultural operations. These
institutions constitute the most important
source of personal and collateral credit for
farmers. The volume of such credit extended
by commercial banks is naturally influenced by
variations in agricultural conditions, particularly by changes in farm-commodity prices.
At the same time the amount of buying power
of agriculture for industrial goods is influenced
by changes in the volume of loans obtained
from or repaid to banks.
The marked economic changes that have
taken place during the post-war period have
greatly influenced the volume of bank credit
extended to farmers. As credit changes in
recent years have been so drastic, it was deemed
desirable to appraise, as accurately as possible,
the extent to which the volume of outstanding
bank credit to farmers had been curtailed.
Adequate data for measuring such changes have
not been available in the regular reports of
the supervisory banking agencies, and a special
survey, therefore, was necessary to obtain this
information. Through the cooperation of the
Federal Deposit Insurance Corporation, the
Comptroller of the Currency, and the Federal
Reserve Board, schedules requesting data as
to specific types of agricultural loans, total
loans, and total deposits were enclosed with the
call report form for December 31, 1934, sent
out by each of the three cooperating agencies.
These schedules were checked against the
report of condition to insure accuracy of comparable items included in both reports. Of the
14,135 banks licensed and insured, 101 banks
failed to submit reports on their agricultural
loans, and data on total loans and deposits of
each of these banks were obtained from the
December 31, 1934, report of condition. The
agricultural loans of each of the nonreporting
banks were then estimated by multiplying its
total loans by the ratios of the various types of
agricultural loans to total loans reported by
other banks in the same county. In a very few
cases no other banks were located in the
same county and ratios for adjoining counties
were used. This information permitted the
compilation of data representing the most
^
complete and accurate estimate that has ever
been made of the outstanding credit advanced
to farmers by commercial banks.
As the United States Department of Agriculture had conducted somewhat similar surveys for 5 different years since 1914, these
previously compiled data were available for
making rough comparisons of changes in the
volume of agricultural loans that had occurred
between survey dates during that period.
The analysis of these changes for the war and
post-war periods together with a detailed
analysis of the outstanding agricultural loans
held by commercial banks at the end of 1934 is
summarized on the succeeding pages.
TRENDS IN AGRICULTURAL LOANS HELD BY BANKS
Table 1 summarizes the various estimates
made by the Department of Agriculture from
1914 to 1934. The largest amount of agricultural loans held by banks at any time was
apparently reached in the latter part of 1920.
TABLE 1.—ESTIMATED AGRICULTURAL LOANS OF
COMMERCIAL BANKS IN STATED YEARS 1
Year
1914..
1918..
1920._
1923..
1931._
1934,.
Loans secured byfarm real
estate
Personal Total agriand collat- cultural
eral loans
loans
to fanners
1,000 dollars 1,000 dollars 1,000 dollars
2,347,470
1,607,970
739,500
3 517,37*
2,506,814
1,010,559
5,317,374
1,447,483
4 331,924
2,943,818
1,388,106
2 881,532
1,936,360
945,172
1306,455
807,613
498,842
i Data relate to end of year indicated except for 1914,1918, and 1931.
Data for the latter 2 years relate to the midyear, whereas those for m»
relate to the spring of 1914.
From 1920 to 1934 loans secured by farm real
estate decreased by $948,641,000 or 66 percent.
Personal and collateral loans decreased by
$3,062,278,000 or 79 percent. Both types of
loans at the end of 1934 were substantially
below the estimated totals for 1914.
Estimates for individual States were compiled
in each survey but variations between estimates
on a State basis were influenced to a certain
extent by the variations in the proportion of
returns received from banks in towns and cities
of various population groups. Estimates on a
APRIL
1936
FEDEKAL RESERVE BULLETIN
State basis, therefore, are presented only for
the 1934 survey. Estimates for previous surveys are presented as totals for geographic
divisions.
The estimates for the surveys prior to that
for 1934 were based upon reports of only a
portion of the banks, usually from 40 to 50
percent of the total number. The estimates for
each State were made on the assumption that
the ratio of agricultural loans to total loans and
discounts of banks replying to the survey
questionnaires were also applicable to the loans
and discounts of banks failing to reply. As
indicated in a succeeding section of this bulletin, the ratio of agricultural loans to total loans
and discounts shows wide variations as between
banks in towns and cities of different population
groups.
When there is a difference, from one survey
to another, in the proportion of loans and discounts reported on schedules from banks in
towns and cities of different population groups,
this difference tends to alter the State estimate,
through changing the ratio of agricultural loans
to total loans. For surveys in which a relatively
larger proportion of the loans and discounts
are reported by banks in towns and cities of the
larger population groups the ratio of agricultural loans to total loans will tend to be lower
than the true ratio for all banks in the State.
Likewise, if a relatively smaller proportion of
the returns come from banks in the larger
population groups, a ratio derived from the
reporting schedules will tend to overestimate
the State total of agricultural loans.
. It is believed that most of these differences
ui State estimates tend to be offset when combined into geographic division totals. In a
very few cases, however, the geographic-division totals seem to be out of line and attention
is called in the text discussion to such apparent
discrepancies. The probability of understatement or overstatement is least in those States
in which the volume of agricultural loans is
largest because usually there is less variation
jn the ratio of agricultural loans to the total
loans and discounts as between banks in towns
a
nd cities of the various population groups.
PERSONAL AND COLLATERAL LOANS
The volume of personal and collateral loans
^creased by about 141 percent from 1914 to
<™ end of 1920, an increase corresponding
cioseiy to the increase in farm-commodity
prices during the same period. The increase
"* this type of loan from 1914 to 1918 was 56
percent. From 1918 to 1920 there was a
225
further increase of 54 percent despite the fact
that there was only a nominal further increase
in farm-commodity prices during that period.
After 1920 each of the three succeeding
surveys showed a reduction, the sharpest reduction taking place from 1931 to 1934. As
undoubtedly there had been an appreciable
reduction in agricultural loans between 1929
and the middle of 1931, the reduction in loans
that took place during the depression period
beginning in 1929 was probably substantially
greater than the change indicated for the
period from 1931 to 1934.
This reduction following 1929 was much
more drastic than that during the period of
rapidly declining prices in 1920-21. The
period of declining farm-commodity prices
following 1929 was about three times as long
as the period of declining prices following 1920
and naturally intensified the forces that tended
to bring about a reduction in agricultural
loans, both by reducing the value of the farmers' collateral for loans and by increasing the
number of bank suspensions. As compared
with the earlier period bank suspensions were
also in substantially greater number following
1929. The facilities of the War Finance Corporation which were made available to commercial banks in 1921 tended to retard the
forced liquidation of agricultural loans in the
earlier period. The National Credit Corporation was organized in the fall of 1931 and the
Reconstruction Finance Corporation in the
spring of 1932 to provide similar financial
assistance to banks, but the wave of deposit
withdrawals and bank suspensions had gained
such momentum that these emergency financing facilities were unavailing in halting the
forced contraction of credit.
In analyzing the changes that have taken
place in the volume of personal and collateral
loans since 1914, on the basis of geographic
divisions, it is apparent that the most marked
changes in the amount of loans have taken
place in the East North Central 2
States and in
the West North Central States. These two
geographic divisions accounted for about 57
percent of the estimated total of personal and
collateral loans held by commercial banks in
1914 and 1920. By 1923 loans in these two
groups of States accounted for 61 percent of
the total. After 1923 the relatively greater
reduction in agricultural loans in these two
geographic divisions reduced their proportion,
by the end of 1934, to 38 percent of the total.
* See table 21 at end of this article for list of States Included in the
various geographic divisions.
226
FEDERAL RESERVE BULLETIN
Comparative changes for each of the six surveys are shown graphically, by geographic
regions in figure 1.
From 1914 to 1920 the rate of increase was
far from uniform in each of the geographic
divisions. The largest percentage increase
was shown for the Mountain States and the
smallest increase in the New England and
Middle Atlantic States. Although only a
nominal increase was shown from 1914 to 1918
in the New England and Middle Atlantic
FJGURE 1
PERSONAL AND COLLATERAL LOANS TO FARMERS
NEW ENGLAND
MID. ATLANTIC
E. N. CENTRAL
W.N. CENTRAL
S. ATLANTIC
C S . CENTRAL
tf.S. CENTRAL
MOUNTAIN
PACIFIC
NEW ENGLAND
MID. ATLANTIC
L M . CENTRAL
W.N. CENTRAL
S. ATLANTIC
E. 5. CENTRAL
W.S. CENTRAL
MOUNTAIN
PACIFIC
NEW ENGLAND
MID. ATLANTIC
E.N. CENTRAL
W.N. CENTRAL
S. ATLANTIC
L 5. CENTRAL
W.S, CENTRAL
MOUNTAIN
PACIFIC
toie
I
1931 estimate for these States appears to be so
divergent from trends in other geographic divisions that the data may represent an overestimate of loans on that date. During this period
the reduction in loans held by banks in the
West North Central States was particularly
large, the amount of such loans being reduced
by almost one-half.
In the years from 1931 to 1934 the reduction
in loans, which occurred in all^ geographic
divisions, was especially drastic in the East
North Central and West North Central States.
In these two geographic divisions the outstanding personal and collateral loans to
farmers decreased by about two-thirds in a
period of 3K years. The number of bank
suspensions in these States was particularly
large and these numerous suspensions materially
influenced the volume of loans. Compared
with 1914 the level of loans in all geographic
divisions with the exception of the East South
Central States was lower in 1934 than in 1914.
LOANS SECURED BY FARM REAL ESTATE
NEW ENGLAND
MID. ATLANTIC
L N . CENTRAL
W.N. CENTRAL
S.ATLANTIC
E.S. CENTRAL
W S CENTRAL
MOUNTAIN
PACIFIC
NEW ENGLAND
MID. ATLANTIC
E N . CENTRAL
W.N. CENTRAL
S. ATLANTIC
L S . CENTRAL
W.S. CENTRAL
MOUNTAIN
PACIFIC
NEW ENGLAND
MID. ATLANTIC
£. N. CENTRAL
W.N. CENTRAL
S. ATLANTIC
E.S. CENTRAL
W.S. CENTRAL
MOUNTAIN
PACIFIC
600
BOO 1.000
DOLLARS (MILLIONS)
1,200
1.400
l.€00
States, all geographic divisions showed a rapid
expansion in loans from 1918 to 1920.
From 1920 to 1923,^ decreases were shown
for all geographic divisions with the exception
of the New England States. It is possible that
the 1923 estimate for the latter group of States,
as well as for the Middle Atlantic States, which
showed only a slight decrease, was too high.
The sharpest decreases were shown in the
West South Central and Mountain States.
In the period from 1923 to 1931, decreases
were again shown for all geographic divisions
except in the Middle Atlantic States. The
APRIL 1930
The trend of agricultural loans secured by
farm real estate, although roughly similar to
that of personal and collateral loans, did not
show quite so large an increase from 1914 to
1920 or quite so large a decrease from 1920 to
1934. While farm-land prices were advancing,
the amount of farm real estate loans of commercial banks increased at about the same
rate. From 1920 to 1923, farm real estate
loans decreased only about 4 percent although
the index of farm-land values declined from
their peak of 170 (1912-14=100) in March
1920 to 130 in March 1924. As the sharp
drop in farm income that began in 1920 had
impaired the security of many loans that
previously had been granted on personal or
collateral security, banks followed the policy of
strengthening the security back of these slow
loans by taking real estate security. Real
estate loans acquired in this manner tended to
hold up the total volume of such loans despite
the active movement of mortgage refinancing
undertaken by other agencies during this
period.
From 1923 to 1931 the holdings of farmmortgage loans of commercial banks decreased
at a somewhat more rapid rate than the decrease in land values. During most of this
period the life insurance companies and the
Federal and joint stock land banks were expanding their mortgage loans at a rapid rate
and undoubtedly a portion of the mortgage
loans held by commercial banks were refinanced
APRIL 1936
FEDERAL RESERVE BULLETIN
by these other agencies. During the same
period, there was also a reduction occasioned
by the foreclosure of heavily indebted farms.
Frequently the foreclosure of a first mortgage
held by another agency meant the extinguishment of junior Hens taken by commercial
banks to strengthen the security of advances
previously made when farm-commodity prices
were at a higher level.
With the rapid decline in farm-commodity
prices after 1929 the security of many advances
made when prices were at a higher level became
impaired and commercial banks made some
increase in their mortgage loans to strengthen
the security of personal and collateral loans
previously made. Such increase was slightly
more than offset, however, by reductions resulting from other factors, chiefly foreclosures.
The annual changes following 1929 may be
partially illustrated by the reported holdings
of member banks of the Federal Reserve System. At the end of 1929 farm-mortgage loans
held by such member banks amounted to
$388,000,000. There was practically no change
m 1930, but at the end of 1931 the total had decreased to $359,000,000 and by the end of 1932
to $356,000,000.
The sharp reduction in the number of operating banks, following the banking holiday in
early 1933, was accompanied by a reduction in
the reported holdings of farm-mortgage loans
of member banks of the Federal Reserve System. At the end of 1932 such loans were reported at $356,000,000, as indicated above, and
on the following report date, June 30, 1933, at
$318,000,000, a decrease of 11 percent. A part
of the reduction taking place between 1931 and
1934 in the total of the estimated farm-mortgage holdings of commercial banks may therefore be attributed to the reduction in the number of operating banks, a reduction which does
not take into account the mortgage holdings
of closed banks.
The mortgage refinancing program of the
*arm Credit Administration, begun in 1933,
t t o ,
g
,
has resulted in a substantial reduction in the
b t t i l
dction
wm-mortgage holdings of commercial banks.
l>ata covering the period from May 1, 1933, to
September 30,1934, indicate that 16.2 percent
of the proceeds of Federal land bank loans and
17.9 percent of the proceeds of commissioner
loans were used to repay first and junior mortgages held by commercial banks. Assuming
that these percentages also hold true for the
period embracing an additional 3 months, the
reduction in farm-mortgage loans held by commercial banks from May 1, 1933, to December
227
31, 1934, resulting from the refinancing operations of the Farm Credit Administration, would
amount to about $250,000,000.
During the period 1914 to 1934 the trend of
farm-mortgage holdings of State and national
banks have shown a marked divergence. Prior
to the passage of the Federal Reserve Act,
national banks were not permitted to invest
their funds in farm-mortgage loans. The estimated total of mortgage loans held by banks
in 1914 therefore represents the holdings of
banks pther than national. The marked increase in mortgage loans of commercial banks
from 1914 to 1920 was largely accounted for by
banks other than national, as mortgage holdings
of national banks had reached the total of only
$161,652,000 on June 30, 1921. Although the
estimated total of mortgage loans of all banks
showed a decline at each survey following 1920,
loans of this type held by national banks continued to increase until 1928, the holdings
of $325,125,000 on June 30,1928, being slightly
more than twice as large as in 1921. At the
end of 1934, farm-mortgage loans of national
banks had declined to $218,268,000, an amount
representing 44 percent of the farm-mortgage
loans held by all banks.
In tracing the trend of farm-mortgage holdings of commercial banks, by geographic divisions, total holdings, as in the case of personal
and collateral loans, are largely dominated by
the holdings of banks in the East North Central
and West North Central States. In each of
the surveys until 1931 mortgage loans in these
two geographic divisions represented from 50
to 60 percent of the total held by all commercial
banks. In 1934 holdings by banks in these two
geographic divisions amounted to only 37 percent of the total farm-mortgage holdings of
commercial banks, or about the same percentage as indicated for personal and collateral
loans.
...--,
In two geographic divisions the volume of
farm-mortgage loans has exceeded the volume
of personal and collateral loans. In the New
England States this situation has prevailed in
each of the survey periods. In 1914 the volume of such farm-mortgage loans in the New
England States was more than four times as
large as the personal and collateral loans, but
by 1934 such loans were only slightly more than
half again as large as the personal and collateral
loans. In the earlier periods New England
banks were heavy investors in farm mortgages
purchased from other areas, particularly from
the Middle West. After 1923 such investments show a sharp reduction as the active
228
FEDERAL RESERVE BULLETIN
lending operations of the Federal and joint
stock land banks and the life insurance companies resulted in a considerable refinancing of
such loans at lower interest rates. The increased rate of foreclosures of mortgages following the price decline that occurred in 1920-21
was also a factor tending to make eastern banks
less favorably inclined towards the purchase of
farm mortgages from other areas.
The practice of commercial banks in purchasing farm mortgages from other areas was
not confined solely to the Eastern States bu^yas
quite general in many other sections in which
local savings were in excess of local requirements, particularly in such sections as southern Wisconsin and northern Illinois. In recent
years banks in these areas, too, have drastically curtailed their investments in outside
mortgages.
In the Pacific Coast States the survey for
1923 was the first to show a volume of farmmortgage loans larger than the volume of
other types of agricultural loans, a relationship which was maintained in each of the two
subsequent surveys. The relatively greater
increase in farm-mortgage loans in this geographic division is accounted for largely by
banks in California where the policies of some of
the large branch-banking systems were reflected in a substantial expansion in their
portfolio holdings of farm mortgages.
Table 2 summarizes the distribution of farmmortgage holdings of commercial banks for each
of the six surveys, by geographic divisions.
TABLE 2.—DISTRIBUTION OP LOANS SECURED BY
FARM REAL ESTATE HELD BY COMMERCIAL BANKS
AT STATED DATES, BY GEOGRAPHIC DIVISIONS
Geographic division
New England
-..
Middle Atlantic
East North Central.
West North Central.
South Atlantic
East South Central.
"West South CentralMountain
Pacific
Spring July 31, Dec. 31, Dec. 31, June 30, Dec. 31,
of 1014 1918
1920
1923
1931
1934
1,000
dollars
84,900
30,900
220,000
216,400
40,800
33,600
27,900
19,800
65,200
1,000
dollars
96,300
68,787
252,707
296,638
53,129
52,023
34,603
27,621
138,951
1,000
dollars
93,685
34,148
335,095
531,212
94,048
101,080
73,251
55,936
129,027
1,000
dollars
111, 918
37,510
315,131
403,514
79,856
77,591
82,306
52,408
227,872
1,000 U000
dollars dollars
36,529 17,605
46,524 42,214
240,353 108,336
212,117 76,258
74,356 43,520
74,694 42,076
62,039 34,194
40,266 13,117
158,294 121,620
In comparing the changes from one survey
to another, it appears possible that the totals
for the Middle Atlantic States in 1920, 1923,
and 1931 were underestimated. Likewise, it is
possible that the totals for the Pacific States in
1918 and 1923 may have been overestimated.
APRIL 1936
FACTORS INFLUENCING THE TREND OF AGRICULTURAL LOANS HELD BY BANKS
The expansion of agricultural loans from
1914 to 1920 and their contraction subsequent
to 1920 were influenced by factors which varied
from community to community. The lending
policy of local banks, the attitude of fanners
relative to the assumption and repayment of
debts, climatic conditions, etc., were all influential in accounting for variations in the
volume of agricultural, loans. Despite the
varying conditions, however, certain major
factors influenced the trend of agricultural
loans in practically all agricultural areas. The
more important of these were the changes in the
level of prices received by farmers, the bank
suspensions, the refunding of bank loans into
long-term mortgage obligations, and the development of new Federal financing facilities
for farmers. These four major factors are
discussed on the following pages.
FIGURE 2
PERSONAL AND COLLATERAL LOANS TO FARMERS AND
INDEX OF PRICES RECEIVED BY FARMERS
Relation of price level to bank loans.—Variations in farm-commodity prices, through their
influence upon the amount of income received
by farmers, have accounted for substantial
changes in the volume of agricultural loans
held by commercial banks. Figure 2 shows
the estimated volume of personal and collateral
loans for each of the six surveys conducted by
the Department of Agriculture. The index of
farm-commodity prices is also shown for the
period 1910-35 to indicate the general relationship between farm prices and agricultural loans
of commercial banks. It will be noted that
loans tend to lag behind the movement of
prices.
Farm commodity prices, in turn, are an important factor in influencing the trend of
farm land values. Figure 3 shows a comparison of the index of farm land values and the
FEDERAL RESERVE BULLETIN
APEIL 1936
estimated amount of farm mortgage loans
held by commercial banks at each of the six
survey dates.
The rapid rise in farm-commodity prices,
following the outbreak of the World War,
characterized by an increase in index of such
prices from 101 in 1914 (1909-14=100) to a
peak of 244 in May 1920, substantially expanded the flow of income into agricultural
communities. Deposits at banks increased
correspondingly and provided country banks
with a mounting excess of claims against urban
centers, which was reflected in a substantial
increase in the amount of funds carried as
balances with correspondent banks. Country
banks were naturally desirous of finding profitable investment for their surplus funds and,
with the generally favorable agricultural income situation prevailing, advances were freely
made to borrowers. A large part of these
FIGURE 3
A G R I C U L T U R A L L O A N S S E C U R E D BY F A R M R E A L
ESTATE A N D I N D E X O F L A N D V A L U E S
(BILLIONS) [-
J/ land val
1,400
•
(19
i
1.200
1.000
/
s
j
^
if
V
AgriGti a/ lo&ns.
Itur
secured by f&rns rea/ ealato.
hsldbycoi•nmtt
3
ISO
160
140
••
120
600
100
600
\
80
400
60
ZOO
0 --
••
1
—
40
1925
1930
NlbltTM
1935
luaOUOfWiiiCULTUIuli
229
of prices. This situation, in turn, adversely
affected the status of country banks.
Ordinarily the deposits of a country bank
constitute a revolving fund from which loans
can be made to borrowers within the community. When the assets of this revolving
fund consist chiefly of local advances, the
country bank's ability to grant new loans,
unless the inflow of funds is greater than the
volume of payments made outside the community, is dependent upon the rate of repayment of outstanding advances or upon the
bank's ability to sell some of its assets or to
borrow funds outside the community. The
revolving character of the fund thus can be
maintained only when the inflow of funds provides additional new deposits or repayments
on outstanding advances sufficient to meet the
demand for new loans. In those periods when
an agricultural community is faced with an
adverse balance of payments, and repayments
on outstanding advances do not provide sufficient funds to meet such adverse payments,
the solvency of the revolving fund can be
maintained only if the individual bank can
obtain additional funds through the sale, outside of the community, of a portion of its assets
or if it has borrowing power that can be utilized
in obtaining outside credits.
The adverse balance of payments that was
encountered by agricultural communities following the sharp drop in farm-commodity
prices in 1920 thus seriously impaired the
revolving character of the country bank's loan
fund and brought about the insolvency of
numerous institutions. Most country banks,
prior to the price decline were already heavily
indebted to the Federal Reserve banks and
to correspondent banks.
The situation faced by fanners and by
country banks in this period was summarized
in a previous report of the Department of
Agriculture as follows:3
advances were of the type which, with the continuation of a high price level, probably could
have been repaid within a reasonable period,
following the sharp drop in farm-commodity
prices in 1920, when the index declined from a
peak of 244 in May 1920 to a low of 113 in
June 1921, the ability of farmers to repay bank
loans was seriously curtailed.
* * * With the collapse in prices of farm products
The decline in farm-commodity prices re- in 1920 and 1921 a credit emergency arose which has
sulted in a drastic reduction in the income few parallels. Banks and other established credit
nowing from urban centers to agricultural agencies in many sections of the country were unable
to cope with the situation and Federal, State, and
communities. The payments which, on the local governments were called upon to provide emerother hand, had to be made from agricultural gency funds. In several Northwestern States where
communities to other areas could not be re- crop failures, high operating costs, and the drop in
duced correspondingly as future commitments prices of farm products combined to create a serious
situation
in
fcad been made for supplies, machinery, interest were madeFederal funds1921the amount of $3,500,000
available in
and 1922 for the
Payments, etc. At the same time, the decrease of seed grain. Various county governments purchase
in these
jP.farm income in relation to operating and States also provided farmers with large sums for seed
^vmg expenses was so drastic that farm bor- and feed purposes.
rowers could make but relatively small reduc»
;*on on the loans they had contracted on 1925Olsen, N. A., Brannen, C. O., Cadisch, G. F., and Newton, R. W.
Farm Credit, Farm Insurance, and Farm Taxation. U. S. Dept.
llle
basis of the previously existing high level Agr. Yearbook 1924: 185-284, illus. 1925. See pp. 231-232.
230
FEDEKAL RESERVE BULLETIN
The situation in the fall of 1921 became so critical
that Congress voted to broaden the powers of the War
Finance Corporation to permit advances for agricultural
purposes. The War Finance Corporation describes the
situation which existed at that time in the following
words:
, t.
"When the agricultural credits act was passed (Aug.
24, 1921), there was a state of demoralization everywhere among all classes of agricultural producers.
Farmers and stockmen generally were in a desperate
plight; breeding herds were being sacrificed on a wholesale scale; immature stock was being sent to the block;
and cotton, corn, and other agricultural commodities
commanded prices that were discouragingly low, in
many cases materially below cost of production. Forced
liquidation and hasty selling impaired the farmer's
buying power, and this, in turn, brought about a
reduced demand for the products of industry. Bank
deposits were being withdrawn and reserves depleted,
loans could not be collected, and the stability of our
whole agricultural and banking structure was seriously
threatened."
Under its broadened powers the corporation made
between August 24, 1921, and November 30, 1924,
advances totaling $297,934,000. Of this amount 58
percent was advanced to banking and financial institutions, 29 percent to livestock loan companies, and
13 percent to cooperative marketing associations,
* * * The influence of the War Finance Corporation in stabilizing credit conditions, however, is not
measured solely by the advances it actually made.
During these 3 years it approved loans amounting to
almost $480,000,000. The willingness of the Federal
Government to approve large advances for agricultural
purposes at a time when the prices of farm products
were demoralized helped to restore the confidence of
both farmers and bankers and greatly relieved the
financial stringency.
To illustrate the readjustment that was
forced upon country banks as a result of the
drastic decline in farm incomes that began in
1920, data for significant items have been
compiled from the reports of country national
banks 4 in 10 of the leading agricultural
States. These 10 States held more than 50
percent of the estimated total of agricultural
loans held by all banks at the end of 1920.
On the basis of call-date data it appears that
in the period of credit contraction that began
in 1920 deposits of these banks reached their
lowest level at the end of 1921. Total deposits
decreased approximately 20 percent from May
4, 1920, to December 31, 1921. Changes that
took place during this period in the major balance-sheet items are shown in table 3:
«The term "country" national bank here refers to the classification of
the Comptroller of the Currency, that is, national banks outside of
central reserve and reserve cities.
APRIL 1936
T A B L E 3 . — C H A N G E S I N M A J O R BALANCE-SHEET ITEMS
OF COUNTRY NATIONAL B A N K S I N 10 LEADING AGRICULTURAL STATES, 1 9 2 0 - 2 1 1
Item
May 4,
1920
Dec. 31,
1921
Increase or decrease
\1,000 dollarsPercent
\l ,000 dollars 11,000 dollars
1,545,085
-389,048
-2a 1
1,486,314
-225,375
-13.2
-23.3
251,083
-76,098
165,146
+26,897 +10. fi
-25.4
352,309
-119.922
179,873
+46,611 +35.0
Total deposits
| 1,934,133
Loans and discounts
1,711,689
United States securities.
327,181
Other investments
138,249
Cash and due from banks.
472,231
Total borrowings
133,262
» States included: Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Carolina, Oklahoma, Texas, and Wisconsin. Annual
reports of the Comptroller of the Currency,
Although deposits decreased 20 percent, loans
and discounts decreased only 13 percent. The
withdrawal of deposits to meet payments outside pi the community necessitated a sharp reduction in balances held with correspondent
banks. Holdings of cash and balances with
correspondents reached their lowest point on
June 30, 1921. With the seasonal increase of
farm income in the last half of the year, this
account was partially restored although at the
end of 1921 it was stiU 25 percent below that of
May 4, 1920. The smaller dollar value of
check transactions because of lower prices made
it possible to carry reduced operating balances
but it is probable that the pressure of meeting
adverse payments outside of the community
caused these balances to be reduced to the
barest minimum.
Loans continued to rise from May 4, 1920,
to November 15, 1921, but thereafter a reduction was shown for each call date until March
10, 1922, when the trend was reversed. Borrowings increased rapidly from May 4 to December 29, 1920, and decreased slowly in 1921.
With the improvement in farm income in 1922,
however, a substantial reduction was effected
although such borrowings continued at a relatively high level.
m Reduction in holdings of United States securities also provided a source of funds for meeting
outside payments. This was in part offset by
increased holdings of other securities, largely
municipal investments, warrants, claims* and
judgments.
Beginning with July 1921 prices received by
farmers began an upward movement which con-
231
FEDEEAL RESERVE BULLETIN
APRIL 1936
tinued until January 1923, the index number of
prices advancing from 113 to 146 (pre-war
prices=100). The accompanying increase in
theflowof agricultural income into agricultural
communities again brought about a nominal
expansion in deposits which, with the repayments on local loans, provided funds for reducing borrowings at Federal Reserve banks,
correspondent banks, and the War Finance
Corporation. Balances at correspondent banks
were also built up to a more normal level.
During the first half of 1923 prices received
by farmers again receded, the index declining
from 146"in January to 136 in July. After a
recovery in the last half of 1923, due largely to
increased prices for cotton and for dairy and
poultry products, the index again declined to
137 in May 1924. Prices received by producers
of grain and of livestock during tins period
FIGURE 4
Prices Received by Farmers and Demand Deposits of
Country Banks in 20 States, 1923 to Date
INDEX NUMBERS (1923-1923:100)
1923
•29
f
31
M«.n}»'l
'33
'35
*UftIAUC>FACMICllL.TU*AL((AHOMlCi
were relatively low, the annual index number
°i grain prices being 113 for 1923 and that for
jaeat animals only 107. The relatively less
favorable income situation in areas producing
these two groups of farm commodities was
characterized by unfavorable credit conditions.
^ order to relieve the acute credit situation
that developed in the Northwest during the
^nter of 1923 and spring of 1924, the life of the
War Finance Corporation was extended to December ei 1924. Despite the widespread use
31,
?O9 e nergency credit facilities in 1923 and
*924, the number of bank suspensions in the
^Northwestern States was larger than in any of
lt
MLPrevious years of the post-war period.
„ With the recovery of farm prices in 1924 farm
income was maintained at a relatively stable
«>vel until 1930, although in 1926 low prices
jo* cotton tended to reduce agricultural income
"itheSouth.
Variations in the flow of funds into agricultural communities during the post-war
period have been closely associated with
changes in the level of prices received by
fanners. Figure 4 shows the index of prices
received by farmers compared with an index
of net demand deposits of member banks of
the Federal Reserve System located in places of
less than 15,000 population in 20 of the leading
agricultural States. The net demand deposit
series, which is corrected for seasonal variation, shows the influence of low farm prices for
farm commodities in 1923 and the subsequent
recovery of prices in 1924 and 1925. The
sharp drop in prices during 1926, largely
influenced by low prices for cotton, is also
reflected in a lower level of deposits.
The drastic decline in prices received by
fanners from 152 in August 1929 to 55 in
March 1933 was accompanied by approximately as large a proportionate decrease in net
demand deposits. In meeting this unprecedented reduction in deposits, country banks
were placed under severe strain and an-abnormally large number of bank suspensions took
place.
Changes in major balance-sheet items during
the period June 29, 1929, and December 31,
1932, the last call date preceding the banking
holiday of 1933, illustrate the rapid readjustment that was forced upon the country banking structure. Table 4 summarizes the calldate data for country national banks in 10 of
the leading agricultural States.
TABLE 4.—CHANGES IN MAJOR BALANCE-SHEET ITEMS
OF COUNTRY NATIONAL BANKS IN 10 LEADING
AGRICULTURAL STATES, 1929-32 l
Item
June 29,
1029
Dec. 31,
1932
Decrease
dollarsPercent
40.7
864,280
50.6
740,600
25.4
83,475
18.5
79,812
26.1
115,571
7.8
3,822
1,000 dotUtr9\!,OOO dollar; 1,000
Total deposits——
Loans and discounts
United States securities.
Other investments—-—
Cash and due from DanKs.
Total borrowings
2,121,706
1,463,926
328,963
430,991
443,228
49,137
1,257,426
723,326
245,493
351,179
327,657
45,315
i States Included: Illinois, Iowa, Kansas, Minnesota. Missouri,
Nebraska, North Carolina, Oklahoma, Texas, and Wisconsin. Annual
reports of the Comptroller of the Currency.
Total deposits decreased about 40 percent
and the decrease of 50 percent in loans and
discounts was even larger. I t is probable that"
the greater percentage decrease in loans and
discounts was due in part to the large number
of bank suspensions during this period. In a
period when deposits are declining rapidly,
banks that have a high proportion of their
assets invested in local loans are less prepared
to meet withdrawals through the sale of out-
232
FEDERAL RESERVE BULLETIN
APRIL
1936
side investments. Thus bank suspensions in Banks which suspended operations usually
agricultural regions during this period to a had a substantial volume of borrowings prior
large extent involved banks that had relatively to closing and the public had come to interpret
high ratios of loans to deposits. The greater large borrowings as a sign of weakness, which
percentage reduction in loans than in deposits interpretation led to further deposit withwould, to this extent, reflect the elimination drawals. This psychological attitude on the
from the reporting series of those banks having part of the public caused country banks to
hold down the volume of their borrowings and
a relatively high ratio of loans to deposits.
Despite the relatively large holdings of secur- tended to result in relatively greater pressure
ities by this group of banks, there was a reduc- for the curtailment of new advances and for
tion of only 25 percent in the United States the liquidation of outstanding advances.
securities and a reduction of 18 percent in other
The trend of borrowings of country banks at
investments. A very large number of banks the Federal Reserve banks during the period
had pledged securities to secure various credi- 1919-35 is illustrated in figure 5. This series
tors, and such investments could not be sold is based on the reported borrowings from the
to meet deposit withdrawals. The break in Federal Reserve banks of banks outside the
the bond market in the last half of 1931 and weekly reporting cities in eight Federal Reserve
first half of 1932 also was so severe that it was bank districts, largely agricultural in character.
not possible for banks to dispose of their bond
holdings without incurring substantial losses.
FIGURE 5
BORROWINGS AT FEDERAL RESERVE BANKS BY COUNTRY BANKS*
The average price of United States bonds deIN EIGHT FEDERAL RESERVE BANK DISTRICTS. LARGELY
clined from 105.3 in June 1931 to 93.0 in
AGRICULTURAL IN CHARACTER. 1919-35
January 1932. Average prices of corporate
bonds, as measured by a representative index,
declined from 95.4 in July 1931 to 60.6 in
400
\—\-H
June 1932, a decrease of nearly 40 percent.
Balances due from correspondents, as measured by "cash and due from banks" decreased
relatively less than deposits. The ratio of such
funds to total deposits at the end of 1932 was
actually higher than on June 29, 1929. The
exceedingly numerous bank suspensions during
this period caused most operating banks to
1919
'21
*23
25
'27
'29
"31
'33
"
follow a policy of protecting themselves against
possible abnormal deposit withdrawals by
maintaining relatively large balances with
correspondents.
Although this series includes borrowings of
Borrowings, which relatively were not large banks in small industrial cities outside of the
in 1929, showed a slight decrease by the end of group that report weekly to the Federal
1932. This is in marked contrast with develop- Reserve Board, it is composed primarily of
ments accompanying the price decline that borrowings of banks in agricultural areas. It
began in 1920. In the former period borrow- is believed, therefore, that it reflects fairly
ings were very high at > the outset of the price closely the trend of borrowings of strictly
decline and continued to rise further for some country banks. In addition to borrowings
time thereafter.
from the Federal Reserve banks, country banks
During the decade following the 1920 price borrowed, during this period, varying amounts
decline a change in policy had been developing from correspondent banks, the War Finance
among country banks which resulted in less Corporation, and the Reconstruction Finance
dependence on outside borrowings in meeting Corporation.
local loan demands. This policy, in turn,
After reaching the abnormal high peak of
curtailed the amount of credit made available about $450,000,000 at the end of 1920, borto local borrowers. The widespread prevalence rowings of this group of banks tended to worK
of bank suspensions tended to make bankers gradually downward until the spring of 1928.
in many areas unwilling to show any appreci- The relatively high level of borrowings in 192^
able amount of * borrowed funds on their and 1923 was largely accounted for by banks
published statement of condition except as a in the livestock and grain-growing areas where
last resort in meeting deposit withdrawals. farm income was relatively lowest. Income m
C
35
* MEHBER BANKS OFTHS FEDERAL RESERVE SYSTEM. EXCLVtlVC OF BANKS IH C m «
REPORTING WEEKLY TO THE FEDERAL RESERVE BOARD
u t. tcnumENT or MtictiiTwif
AFBIL
1936
FEDERAL RESERVE BULLETIN
cotton-growing States had improved sufficiently
to enable banks in such areas to make a relatively greater reduction in their borrowings
than was true in most other areas.
With the reduction in open-market holdings
of securities by the Federal Reserve banks in
1928 and the accompanying increase in openmarket interest rates, borrowings increased
substantially. With the decline in interest
rates that began in the fall of 1929 this temporary increase in borrowings was reduced
largely through the liquidation of security
loans and other open-market paper that had
been acquired earlier.
Unlike the 1920 experience, there was no
increase in borrowings following the beginning
of the price decline in 1929. It was not untfl
the last half of 1931, when widespread withdrawal of deposits accentuated the wave of bank
suspensions, that borrowings showed any substantial increase. Shortly after the beginning
of 1932 these borrowings were reduced partly
as a result of funds made available through the
lending activities of the regional agricultural
credit corporations and of the emergency crop
production loan offices. This downward trend
continued until just prior to the banking holiday in 1933, when there was a sharp increase.
With the restoration of confidence in the banking structure after the banking holiday, the
return flow of currency to banks, the higher
farm commodity prices, and the refinancing
programs of the Farm Credit Administration
provided funds for the repayment of borrow^ g s and by the end of 1934 borrowings from
the Federal Reserve banks had been virtually
eliminated.
A characteristic of the series shown in figure
5 is the marked seasonal movement shown in
the volume of borrowings. This is largely
accounted for by the seasonal accommodations
extended by the Federal Reserve banks to
country banks in the cotton-growing States.
Usually the seasonal low point in borrowing
is reached in February or March. From this
pme until August or September, borrowings
increase as the adverse balance of payments
jormthe community becomes larger than can
e
^ by the reduction of balances with correspondents or through the sale of outside investments held in the bank's portfolio.
233
payment of marketings. The receipt of such
funds by the local bank, as deposits or in payment of loans previously granted for seasonal
production expenditures, provides the bank
with claims on urban centers which go to
increase its balances with correspondent banks
or the Federal Reserve bank. Such increased
balances provide funds for the repayment of
borrowings and the seasonal trend of such borrowings is to show a decrease until the early
part of the following year. During this period
balances at correspondent banks also are
increased seasonally in anticipation of the
adverse community payments that may be
expected during the following production season. Commercial paper, brokers' loans, or
bonds also are usually acquired during this
period for temporary investment during the
period when the receipt of outside funds is in
excess of the payments that are made to other
areas. As marketings decrease, a point is
finally reached at which the balance of community payments becomes adverse, a development which is accentuated as the crop-production season gets under way.
During; this period expenditures must be
incurred for fertilizer, supplies, and machinery
purchased outside of the community. In meeting these adverse payments balances at correspondent banks are drawn upon and temporary
short-term investments in outside securities
are disposed of. These means of meeting the
community's outside claims are then supplemented by funds obtained through borrowing
at the Federal Reserve bank or from correspondent banks. Borrowings tend to increase
until the beginning of the next marketing
season when receipts from the new crop again
bring about a favorable balance of payments
for the community.
The seasonal movement of funds to and from
agricultural communities varies of course as
between different areas. The series of country bank borrowings shown in figure 5 is dominated largely by the borrowings of banks in
cotton-growing areas. A community the income of which is largely dependent upon the
marketing of early vegetables would have an
entirely different seasonal movement. Likewise when a community's income is derived
largely from livestock-feeding operations it
would have a seasonal movement almost the
reverse of that for a community dependent
chiefly upon the marketing of crops. ^ Where
g
the flow of income into a community is fairly
i commxino n a l may be outlined as follows. regular throughout the year, as in a dairying
tiy
seas
*
marketing of farm products, community, there is no appreciable adverse
flow into the agricultural community in
234
FEDERAL RESERVE BULLETIN
balance of payments of a seasonal character.
In such communities there is little or no need
for seasonal accommodation from the Federal
Reserve banks or from correspondent banks.
Refunding of bank loans into long-term
obligations.—Following the price decline of
1920 country banks found themselves in possession of a substantial volume of slow or "frozen"
loans. This situation caused them to encourage
borrowers to seek new mortgage refinancing
with other agencies in order to obtain repayment or reduction of such loans. With substantial borrowings from their correspondents
and the Federal Reserve banks, the tying up of
their assets in such frozen paper impaired the
ability of country banks to meet the current
loan requirements of their customers. To
restore their assets to a more liquid condition,
country banks had every incentive to encourage
and assist their borrowers to obtain mortgage
loans that would supply funds for making at
least a partial reduction on their bank loans.
As the rapid price rise which culminated in
1920 had taken place in a relatively short
period, a substantial volume of the mortgages
that had been incurred in years prior to 1919
and 1920 represented amounts lower in relation to the then existing land values than the
maximum loan values set by most leading
lending agencies. With the active demand for
farm-mortgage loans following 1920, borrowers
whose farms had not hitherto been encumbered
or whose encumbrance had been incurred when
land values were relatively lower were thus in a
position to obtain additional funds with which
to make payment on their bank loans.
^ The trend of agricultural loans in the period
since 1920, therefore, was materially influenced
by the active lending operations of farmmortgage credit agencies. Figure 6, which
shows the outstanding farm-mortgage loans of
leading lending agencies from 1914 to 1935,
indicates the rapid expansion in the volume of
loans held by the life insurance companies and
by the Federal and joint stock land banks.
Life insurance companies,, which held about
$667,000,000 of farm mortgage loans at the
end of 1914, increased their loans up to the end
of 1919 at the average annual rate of
$61,000,000. Beginning in 1920 and continuing through 1927 their lending operations were
very rapidly expanded, the average annual
increase in outstanding loans during this period
being about $149,000,000. From the end of
1919 to the end of 1924, their farm-mortgage
holdings practically doubled and placed these
institutions in the leading place as a source
AFBIL103*
of farm-mortgage credit. This leading place
they held until the rapid expansion in lending
activities of the Farm Credit Administration
in 1934.
The lending operations of the life insurance
companies have been chiefly concentrated in a
relatively small number of States. In 1930,81
percent of farm mortgage loans of life insurance
companies were concentrated in 10 States.
These 10 States, however, accounted for only 36
percent of the total agricultural loans held by
commercial banks on December 31, 1934.
The operations of the Federal land banks in
particular served to bring about the refinancing
of commercial bank loans as their lending activities were made available to all areas of the
country. The lending operations of other leading mortgage-credit agencies had been more
largely concentrated in certain favored areas,
FIGURE 6
TREND OF FARM MORTGAGE HOLDINGS OF PRINCIPAL
LENDING AGENCIES, 1914-34
DOLI
•18
'20
'22
'24
'26
'28
'30
"32
"34
'38
* INCLUDES LOANS on AUKS IN KECEIVEXSHV
and those sections in which mortgage facilities
were not so fully developed had, through the
Federal land banks, a new source of mortgage
credit for refinancing purposes.
The Federal land banks, which began
operation in 1917, had outstanding loans of
$350,000,000 at the end of 1920. Lending
operations from the summer of 1919 to the
spring of 1921 were held in check pending the
outcome of the suit testing the constitutionality
of the Federal Farm Loan Act. Following tne
Supreme Court's decision upholding the constitutionality of that act, lending operations
increased rapidly, the average annual increase
in their outstanding loans from the end of 1920
to the end of 1927 amounting to about
$115,000,000. Loans showed a further slignj
increase in the next 2 years, but from the end
of 1929 to the end of 1932 there was a decrease
of about 7 percent. With the inauguration oi
the Farm Credit Administration's refinancing
APRIL
1936
FEDEBAL EESERVE BULLETIN
program in 1933, authorizing appraisals for
land-bank loans on the basis of "normal" values
and including provisions for Land Bank Commissioner loans up to 75 percent of the appraised "normal" value, loans from this source
had more than doubled by the end of 1934.
The joint stock land banks, the operations
of which were also authorized by the Federal
Farm Loan Act enacted in 1916, had outstanding only $78,000,000 of farm-mortgage loans
at the end of 1920. As in the case of the
Federal land banks, the decision sustaining the
constitutionality of the Federal Farm Loan
Act in the spring of 1921 was followed by a
substantial expansion in lending activities of
the joint stock land banks which continued
through 1927. The average annual increase
in outstanding loans for these institutions
from the end of 1920 to the end of 1927 was
$84,000,000. Following 1927 the volume of
new loans was curtailed sharply, and outstanding loans continued an uninterrupted decline
through 1934. These institutions are now in
process of orderly liquidation as the provision
of the Emergency Farm Mortgage Act of 1933
prohibits them from making new farm-mortgage
loans, except incidental to the refinancing of
existing loans held by them or to the financing
of acquired property. At the end of 1934, joint
stock land banks held outstanding loans in the
amount of only $261,000,000.
i —P^g the period when farm-mortgage loan
Holdings of the life insurance companies and
Federal and joint stock land banks were increasing rapidly from the end of 1920 to the
end of 1927, the average annual increase in the
volume of outstanding loans of these three
agencies was $337,000,000, representing a net
increase of $2,358,000,000 for the period as a
whole.
The Department of Agriculture estimated the
total farm-mortgage debt to be $7,858,000,000
on January 1, 1920, and $9,469,000,000 on
January 1, 1928, an increase of $1,611,000,000.
curing the same period the actual increase
m l0a
ns held by the three agencies, whose
2 S e i ^ l o n s have keen discussed above, was
$2,662,000,000, which was substantially in
™rcess of the actual increase in total farmm
° r t ? a g e indebtedness.
i t is impossible to estimate how much of the
mortgage-refunding operations during this
period reduced agricultural loans held by commercial banks, but it seems probable that such
mortgage refunding was an important factor
contributing to reduction of bank loans. The
wend of both real estate and of personal and
235
collateral loans of commercial banks was downward during this period. At the end of 1923
it was estimated that about 20 percent of the
farm mortgages held by banks represented
junior liens, that is, mortgages preceded by one
or more mortgages as to priority of security.
In 1931 with the total volume of their mortgage
loans reduced by nearly one-third, the estimated percentage of junior liens to total farmmortgage loans held by commercial banks was
only about 10 percent. Although the reduction of the amount of junior liens was accounted
for, in part, by foreclosure of such liens or of
the prior mortgages, it is also probable that
part of them were refinanced by being consolidated with other debts which were refinanced
with long-term mortgage loans.
Data compiled from the applications submitted for loans from the Federal and joint
stock land banks show that from their organization to the end of 1927, 66 percent of the
proceeds of Federal land-bank loans was to be
used for repayment of mortgages, and 11 percent for the payment of other debts. In the
case of joint stock land banks, 79 percent of
the loan proceeds was to be used for repayment
of mortgages and 6 percent for payment of
other debts.
I n analyzing the refunding of bank loans
into long-term farm mortgage obligations in
relation to the total indebtedness of farmers,
it appears probable that the increase in farmmortgage indebtedness from the beginning
of the price decline in the middle of 1920 to its
peak in 1928, was accompanied by little or
no net increase in the total agricultural indebtedness. The change in the estimated farmmortgage debt since 1920 was as follows: January 1, 1920, $7,857,700,000; January 1, 1925,
$9,360,620,000; January 1,1928, $9,468,526,000;
January 1? 1930, $9,241,390,000.
Such evidence as is available indicates that
farm-mortgage debt increased rapidly in the
first half of 1920, so that the net increase from
the middle of 1920, when farm-commodity
prices began their sharp decline, to the beginning of 1928 was probably not so large as is
indicated by a comparison of the January 1
figures listed above. Such increase as took
place was largely if not entirely offset by refunding of bank loans into mortgage loans
and by other methods of curtailing agricultural
loans obtained from commercial banks.
In the period following 1929 there was little
opportunity to refund bank loans into longterm mortgage loans until the Farm Credit
Administration began its refinancing program
FEDEKAL BESERVE BULLETIN
236
in 1933. Lending agencies drastically curtailed the volume of their new loans from 1929
to 1933 and the continuous decline in land
values brought about a corresponding decrease
in the value of the security that farmers could
offer as a basis for credit.
Since the beginning of the mortgage-refinancing program of the Farm Credit Administration in 1933, there has been a substantial
reduction in the volume of farm mortgages
held by all other leading agencies, including
commercial banks. Data covering the period
from May 1, 1933, to September 30, 1934,
indicate that 22.9 percent of the proceeds of
Federal land-bank loans and 24.5 percent of
the proceeds of Commissioner loans were used
to repay loans held by commercial banks.
Bank suspensions.—From January 1, 1921,
to March 15, 1933, there were 11,265 bank suspensions. Approximately 87 percent of these
banks were in places of less than 10,000 population and hence banks primarily serving agricultural areas. Bank suspensions in each }Tear
for the period 1921-32, together with the proportion representing banks in places of less than
10,000 population, are shown in figure 7.
Incident to the banking holiday, the number
of banks was further drastically curtailed. Between 4,500 and 5,000 banks were not given
licenses immediately after the holiday and over
APRIL 1936
2,100 of them were eventually placed in liquidation or receivership. From March 16, 1933, to
December 31, 1934, there were also 236 suspensions of licensed banks.
Table 5 shows the number of bank suspensions by States and geographic divisions for
each year for the period 1921 to 1934, inclusive.
It will be seen that suspensions in the earlier
years were most heavily concentrated in the
FIGURE 7
N U M B E R O F B A N K S U S P E N S I O N S . BY Y E A R S , 1 9 2 1 - 3 2
Banks in places of 10,000 _
population and over
Banks in p/aces of /ess
. than 10.000 population
1921
'ZZ
'23
'24
'25
'26
r
27
'28
f
29
"30
'31
"3Z
West North Central, South Atlantic, West
South Central, and Mountain States. By
States, the largest number of suspensions took
place in North Dakota, South Dakota, Minnesota, Nebraska, Montana, Georgia, Texas, and
Oklahoma. Following 1929, suspensions became general in nearly all States.
TABLE 5.—NUMBER OF BANK SUSPENSIONS BY GEOGRAPHIC DIVISIONS, 1921-34
Geographic division
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain
Pacific
United States
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
19331
1934
Number Number Number Number Number Number Number Number Number Number Number Number Number Number
66
1
3
11
2
3
2
2
2
33
13
318
9
12
8
5
8
60
8
9
11
6
4
230
30
25
813
26
31
18
37
33
457
91
84
68
59
611
282
12
799
138
297
106
406
315
446
306
302
530
252
717
415
5
219
105
63
58
75
100
109
104
160
215
106
263
223
1
13
130
11
14
24
22
96
33
35
31
17
150
152
1
106
231
83
82
84
70
94
84
43
84
44
174
200
1
85
138
86
65
122
56
96
19
12
30
9
62
25
21
12
17
106
17
12
87
22
12
12
5
54
12
57
505
2,768
367
646
775
618
1,456
976
669
499
659
2,294
1,352
Source: Board of Governors of the Federal Reserve System. i The figures for 1933 comprise the total of: 449 banks suspended before the banking holiday* 179 banks licensed following the banking holiday
S? , 2 « P e n d . e £ b efcre the end of the year; 2,113 banks not licensed following the banking holiday and placed in liquidation or receivership by_Jjec
31,1935; and 27 banks not licensed following the banking holiday and neither licensed nor placed in liquidation or receivership by Dec. 31,1935.
Table 6 shows the total number and deposits
of suspended banks in the 1921-34 period
compared with the number of active banks on
June 30, 1920. The number of suspensions
in three geographic divisions, the West North
Central, South Atlantic, and Mountain States,
was equal to over one-half of the number of
banks operating on June 30, 1920. All of the
other geographic divisions, with the exception
of New England, Middle Atlantic, and Pacific,
had very high ratios on a similar comparative
basis. By individual States, the highest ratio
was 105.7 for Florida. This high ratio is
influenced by the fact that the real-estate boom
in Florida led to the chartering of a substantial
g
"
number of banks subsequent to 1 9 2 ° - C T ^
second highest ratio was 82.7 percent in Soutn
Dakota. States having a ratio in excess oi
APBIL
1936
FEDEEAL RESERVE BULLETIN
237
60 percent were as follows: Michigan, Iowa, volume of such advances in relation to the
North Dakota, Nebraska, South Carolina, volume of loans held by banks at the time of
Georgia, Arkansas, and Nevada.
their closing was probably small.
The numerous bank failures also influenced
TABLE 6.—TOTAL BANK SUSPENSIONS, BY GEOGRAPHIC the volume of new bank loans based on agriDIVISIONS, 1921-34, IN RELATION TO NUMBER OF cultural security by lessening the confidence of
ACTIVE BANKS JUNE 30,
1920
depositors of other banks, which led to abnormal deposit withdrawals. To protect themSuspensions 1921-34»
selves against the possibility of such abnormal
Ratio of
suspenwithdrawals, banks followed the policy of
Active sions to
banks
Geographic division
active
keeping an increasing proportion of their
June 30, banks
Total
Deposits
1920» June 30,
assets invested in readily liquidated securities
1920
purchased outside of the community. This
policy was not only reflected in a decrease in
Number 1,000 dollars Number Percent
the proportion of bank assets invested in local
New England
12.2
138
417,317
1,127
Middle Atlantic.
24.0 agricultural loans, but also resulted in pressure
718
1,366,350
2,990
East North Central.
48.0
2,635
2,516,819
5,488
West North Central-...
55.6 for the liquidation of outstanding advances.
5,041
1,269,090
9,067
South Atlantic
54.8
1,805
885,239
3,289
Federal financing for farmers.—The decline
East South Central
39.7
729
319,523
1,836
West South Central41.9 since 1920 in the volume of personal and collat1,380
538,878 3,295
Mountain
50.6
806
251,531
1,592
Pacific
27.9 eral loans held by commercial banks was in part
389
261,345
1,394
offset by the advancing of loans directly by
United States
13,641 7,826,092 30,078
45.3
the Federal Government and federally sponsored agencies. As the availability of loans
\1 5 0 a r d J L o f Governors of the Federal Reserve System.
Report of the Comptroller of the Currency, 1920.
from the Federal Government, or from federally
sponsored agencies, diverted a substantial
The suspensions of banks in rural areas were amount of loans from commercial banks, these
an appreciable factor in reducing the volume new lending facilities were a factor influencing
of outstanding bank loans to agriculture. the amount of personal and collateral loans
When a bank is placed in liquidation, it is held by commercial banks.
Table 7 summarizes the volume of loans,
obvious that outstanding advances must be
quickly collected in order to make payment on excluding those secured by farm real estate,
the claims of creditors and depositors. Where held by Federal agencies or by agencies
lull collection has not been possible, com- sponsored by the Federal Government at the
promises and the writing-off of assets have also end of each year during the period 1922-34.
reduced the total of outstanding agricultural The amount of such advances was relatively
loans. Had these banks continued in opera- small until 1930, consisting of seed-loan adwon, it is probable that loans on which bor- vances and loans obtained from agencies that
rowers could meet interest payments, without discounted with the Federal intermediate credit
reduction of principal, would have continued banks. In observing this table it should be
noted that the rediscounts of the Federal
A? v a r r i e d a s b a n k assets.
intermediate credit banks include rediscounts
Although many borrowers of good credit
standing who had obtained loans from banks for production credit associations and regional
agricultural credit associations which are also
tnat were subsequently suspended were able shown in separate columns.
10
°btain accommodation from open banks, the
238
FEDERAL RESERVE BULLETIN
APEIL 1936
TABLE 7.—AGRICULTURAL LOANS, EXCLUSIVE OF LOANS ON FARM REAL ESTATE HELD BY FEDERAL AGENCIES
OR BY FEDERALLY SPONSORED AGENCIES, 1922-34
Banks for cooperatives, including
Central Bank
Federal Intermediate credit
bank loans to and discounts
for—
E n d of year
1922
1923
1924
1925
1926
1927..
1928
1929
1930 .
1931
1932
1933
1934
Produc- Regional
agricultion
Production
tural
credit
credit asso- Other
credit
Coopera- associa- corporaciations and financing
tive asso- tions *
regional
tions
agricultural institu- ciations
tions
credit corporations
1,000
dollars
.„
73,263
99,675
1,000
dollars
9,105
18,760
26,272
39,730
43,924
45,103
50,018
65,633
74,691
82,518
6a 989
55,672
1,000
dollars
U000
dollars
33,627
43,507
63,780
52,704
31.991
36,174
26,073
64,377
45,177
9,866
15,211
33,969
27
61,024
Emergency
crop
loans
ifiOO
dollars
*2,765
* 1,306
* 1,460
* 1,155
»1,048
»1,240
»1,194
'6,924
> 7,894
48,717
24,373
89,301
144,636
89,811
87,102 * 110,186
1,000
dollars
Agricultural Marketing Act revolving
fund»
Merchan- Facility Merchan- Facility
dising
dising
loans
loans
loans
loans
lt000
dollars
18,208
21,990
1,000
dollars
489
5,860
1,000
dollars
1,346
76,277
70,768
79,654
56,625
41,084
uooo
dollars
454
11,842
13,544
13,500
12,934
11,620
Educational Commodity loans
loans
1,000
dollars
58
23
urn
dollars
12,710
48,520
71,945
65,831
88,193
2,159
luction credit associations by the Federal intermediate credit banks.
J Stabilization corporation loans excluded. ' As of June 30, end of fiscal year. * Drought-relief loans amounting to $32,444,333 included.
Farm Credit Administration, Division of Finance and Research.
AGRICULTURAL LOANS AND R U R A L B U Y I N G
POWER
The policies of banks in advancing credits
to farmers in the 20-year period from 1914 to
1934 have been characterized by two divergent
trends. From 1914 to 1920 the proportion of
their total loans advanced to agriculture
increased, indicating that the buying power
of agriculture, as an industry, was relatively
more rapidly augmented by bank loans than
was that of other industries considered as a
whole. Since 1920, each of the three bank surveys has indicated a decrease both in the absolute amount of agricultural loans and in the
proportion which such advances bear to total
loans of banks. Table 8 indicates the changes
that have taken place since 1914.
TABLE 8.—RELATION OP AGRICULTURAL LOANS TO
TOTAL LOANS HELD BY BANKS IN STATED YEARS
Year
1914
lgig
1920
1923
193H
1934
Ratio of
Ratio of
personal agricultural
Total loans and collat- loans, in*
eluding
of all
eral loans
banksi
to farmers loans on
farm real
to total
estate, to
loans
total loans
Million
dollars
15,257
22,404
30,655
30,797
35,384
20,474
Percent
10.5
11.2
12.6
9.6
5.5
3.9
Percent
15.4
15.7
17.3
14.1
8.1
6.4
» Annual reports of Federal Reserve Board; includes national banks
State commercial banks and trust companies, mutual and stock savines
banks, and all private and industrial banks included in abstracts issued
by State banking departments.
At the end of 1934 the ratio of agricultural
loans to total loans held by banks was the lowest shown in the six surveys, being only about
one-third as high as the ratio indicated for
1920.
A part of the decline in the ratio of agricultural loans to total loans of all banks may
be explained by developments that did not
curtail the buying power of agriculture. Since
1920 a part of the reduction in agricultural
loans held by banks has been accounted for
by a refunding of such advances into longterm mortgage loans obtained from sources
other than commercial banks, by writing off
uncollectible loans, and, in recent years, by a
shift in new financing to Federal and federally
sponsored agencies.
m The estimates indicate, however, a substantial reduction in agricultural loans of banks,
accounted for by factors other than those
listed above, which together with the loss of
purchasing power resulting from the immobilized deposits of suspended banks in agricultural
areas, influenced the demand of agriculture for
the output of other industries.
The decline in the absolute amount of agricultural loans during a period in which, for
the^ most part, total loans of all banks and
national income were both increasing indicates
that farmers' incomes as a direct factor in tp e
demand for the output of other industries
were relatively reduced by such net repayments
on indebtedness and the immobilization oi
deposits in closed banks. Seasonal changes
in the volume of agricultural loans, resulting
239
FEDERAL BESERVE BULLETIN
APBIL1936
from the seasonal borrowing and repayment of
funds varying in proportion to changes in farm
income, do not result in any relative change
in the buying power of farmers. When loans
to fanners increase more rapidly than farm
income, however, the buying power of farmers
is relatively augmented. Likewise if the level
of agricultural loans is reduced when farm
income is increasing or is reduced relatively
more when income is declining, the buying
power of fanners is relatively curtailed. In
the period prior to 1920, it appears that in
many agricultural areas farm buying power
was augmented by the bank-loan policy and
that in the period since 1920 it has been relatively curtailed.
CLASSIFICATION OP AGRICULTURAL LOANS HELD
ON DECEMBER 31, 1934, BY TYPE OF SECURITY
Turning from an analysis of the developments influencing the volume of agricultural
loans held by commercial banks during the war
and post-war period, an analysis of the agricul-
tural loans held by commercial banks on December 31,1934, is presented. This analysis is
based on a classification of loans by type of
security and also classifies the volume of agricultural loans held by banks in towns and cities
of various population groups, A distribution
of agricultural loans by type of bank is also
presented.
Of the agricultural loans held by commercial
banks on December 31, 1934, 38.2 percent consisted of loans on farm real estate; 8 percent, of
loans secured by livestock only; 12.2 percent,
of loans secured by crops, equipment, and live- *
stock; 11.1 percent, of loans secured by warehouse receipts: 4 percent, of loans secured by
other collateral; and 26.5 percent, of loans not
secured by collateral, including both endorsed
and unendorsed notes. Table 9 shows the distribution of agricultural loans of the various
types reported by commercial banks, by
geographic divisions, and similar information
by States is given in table 21 at the end of this
article.
TABLE 9 . — C L A S S I F I C A T I O N O F A G R I C U L T U R A L L O A N S H E L D B Y COMMERCIAL B A N K S , BY GEOGRAPHIC D I V I S I O N S ,
DEC.
3 1 , 1934
Loans to farmers secured b y -
Geographic division
New England
Middle Atlantic"
East North Central""
United States..,
1This
Loans
secured
by farm
real estate
Livestock
only
Warehouse
Crops,
receipts,
equipbills of
ment, and
livestockl lading, etc.
Other
collateral
t
\l,000 dollan 1,000 dollars 1,000 dollars ifiQO dollars]t000
17,606
522
642
147
42,214
1,472
1,929
319
108,336
5,709
15,685
2,105
76,258
34,208
67,414
11,186
43,520
2,111
2,465
50,950
42,077
2,018
6,065
41,828
34,194
26,097
31,426
31,439
13,117
21,432
21,560
1,276
121,520
10,584
12,699
5,595
498,842
104,153
159,785
144,845
Loans not
secured by
collateral, Total loans
including
to fanners
both enand on
dorsed and farmland
unendorsed
notes
dollars 1,000 dollars tt000 dollars
28,897
8,063
1,917
106,533
52,177
8,427
229,616
91,014
6,867
264,825
69,411
6,348
142,218
36,941
6,231
129,968
33,753
4,227
145,664
15,442
7,066
71,614
10,323
3,906
187,115
29,215
7,502
52,491
346,339
1,306,455
column does not Include loans in preceding column.
Agricultural loans constituted only 9 percent
of total loans of commercial banks on December 31, 1934. Excepting for the New
Mgland and Middle Atlantic States, which
together hold 52 percent of all commercial
ank loans, all other geographic divisions had
nigher ratio of agricultural loans to total
X 1 ? t h a n t h e r a t i o f or the United States as a
wnole. The highest ratio of 39.1 percent is
, W 1 ?J i l l e Mountain States; the next highest
iQ tfce West North Central States. Banks in
jtte &ast and in the West South Central States
aave approximately one-fourth of their total
£fU? ?Iassified as agricultural. Table 10 shows
**al loans, total agricultural loans, and the
ratio of agricultural loans to total loans by
geographic divisions.
T A B L E 1 0 . — T O T A L L O A N S AND TOTAL AGRICULTURAL
LOANS TOGETHER WITH R A T I O OF TOTAL AGRICULTURAL L O A N S TO T O T A L L O A N S , B Y GEOGRAPHIC
D I V I S I O N S , D E C . 3 1 , 1934
Geographic division
New England
Middle AtlanticEast North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain—
Pacific
United States..
Total loans
Ratio of
total agriTotal
cultural
agricultural loans loans to
total loans
\lfi0O dollars
1,193,273
6,366,417
2,105,615
917,219
997.955
519,044
628,926
182,997
1,619.308
1,000
dollars
28,897
106,533
229,616
264,825
142,218
129,968
145,664
71,614
187.115
14,530,754
1,306,455
240
FEDERAL RESERVE BULLETIN
A P R I L 1936
In general, the proportion of the total agri- distribution of the total agricultural income
cultural loans held in various geographic and the value of farms in such geographic
divisions, corresponds closely with both the divisions. This is indicated in table 11.
TABLE 11.—PERSONAL AND COLLATERAL LOANS TO FARMERS COMPARED WITH FARM INCOME AND VALUE OF
FARMS, BY GEOGRAPHIC DIVISIONS, DEC. 31, 1934
Personal Percent- Annual cash Percentage of
age of
and collat- United farm income, United
average of
eral loans
States
States
1932-34
to farmers
total
total
Geographic division
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central .
Mountain
Pacific
1,000 dollars Percent
1.4
11,291
64,324
8.0
121,280
15.0
188,567
23.3
98,698
12.2
87,891
10.9
13.8
111,470
7.3
58,497
8.1
65,595
....
. -
United States
_.
807,613
^
100.0
1,000 dollars
153,974
416,460
905,585
1,256,824
530.740
326,280
643,289
299,311
501,905
Percent
3.0
8/3
18.0
25.0
10.5
6.5
12.8
5.9
10.0
Z5,034,36S
100.0
PercentValue of
age of
farms (land
United
and buildings) Jan. 1, States
total
1935 i
1,000 dollars Percent
2.7
903,271
2,142,529
6.5
6,602,271
20.1
9,390,671
28.6
2,786,996
8.5
1,915,691
5.8
4,038,943
12.3
1,774,664
5.4
3,329,306
10.1
100.0
32,884,342
* Preliminary report of the Bureau of the Census.
* This total differs from estimated United States cash income because it Includes only income from selected commodities and no deductions are
made for the inshipment of livestock for feeding.
loans secured by farm real estate.—Loans
secured by farm real estate represented 38.2
percent of total agricultural loans. This type
of loan was heavily concentrated in the Pacific,
East North Central, and West North Central
States, these three geographic divisions having
slightly more than 60 percent of the total. The
largest amount in any one State was $115,563,000 in California. This amount, which
represented 23.2 percent^of all farm real-estate
loans held by commercial banks in the United
States, was primarily concentrated in the large
branch banking systems of that State. Table
12 shows the amount and percentage distribution of real-estate loans of commercial banks by
geographic divisions.
TABLE 12.—DISTRIBUTION OF LOANS SECURED BY
FARM REAL ESTATE, BY GEOGRAPHIC DIVISIONS,
DEC. 31, 1934
Geographic division
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central—*
Mountain ...
Pacific
United States
„.
Loans secured by
farm real
estate
Percentage
of United
States
total
1,000 dollars Percent
17,606
3.5
42,214
8.5
108,336
21.7
76,258
15.3
43,520
8.7
42,077
8.4
34,194
6.9
13,117
2.6
121,520
24.4
498,842
100.0
The highest ratio of farm real estate loans to
total agricultural loans for any geographic division, 64.9 percent, was shown for the Pacific
States and the lowest, 18.3 percent, for the
Mountain States. Relatively high ratios were
also shown for the Middle Atlantic and East
North Central States. The highest ratio for
any individual State was that of Vermont
where 78 percent of total agricultural loans
were represented by loans on farm real estate,
in large part loans on farms in other States.
California also had a high ratio of 70.7 percent,
resulting from the policy of the larger branch
banks of having a substantial amount of their
assets invested in this type of loan. In the
Southern States only Louisiana and Mississippi
had farm real-estate loans in excess of 50 percent of their total agricultural loans.
The decline in the volume of loans secured
by farm real estate from $1,447,483,000, at
the end of 1920, to $498,842,000 at the end of
1934, was less rapid than for all other types of
agricultural advances. This probably was due
largely to the fact that a part of the farmmortgage loans of commercial banks is not acquired directly as an investment but is acquired
as security for an advance previously made. lp
a period of declining prices such as was experienced in 1920-21 and following 1929, the security for many loans, made when prices were
higher, becomes impaired. In order to protect
their advances, therefore, banks frequently obtain real estate mortgage security.
FEDERAL RESERVE BULLETIN
APRIL 1936
loans secured by livestock.—Banks were
requested to report their loans based on livestock security in two categories; those secured
by livestock only and those secured by "crops,
equipment, and livestock." The total amount
of loans of the first type was $104,153,000 and
of the second type $159,785,000. Loans of the
latter type which also include loans for crop
production purposes were abnormally low because the seasonal accommodations for this
purpose are usually repaid by the end of the
year. If data had been obtained for the mid
year, the total for this item undoubtedly would
have been much higher. The amount and
percentage distribution of these loans, by geographic divisions is shown in table 13.
241
types of agricultural loans, namely, the sharp
decline in prices of farm commodities. The
drastic decline in livestock prices from 1930
to 1932 necessitated a reduction in outstanding
loans as a readjustment to the lower value of
the livestock security, and, at the same time,
curtailed the value of the security that farmers
could pSev for loans. Severe drought conditions in livestock areas, particularly in 1934,
also brought about a considerable liquidation of
loans through the reduction in livestock numbers. Losses encountered in feeding operations
immediately prior to 1933 were a factor tending to make feeders curtail their operations.
Lack of adequate feed supplies in many of
the important cattle-feeding States also reduced the demand for feeder loans in the winter
TABLE 13.—DISTHIBTJTION OF LOANS SECURED IN
WHOLE OR IN PART BY LIVESTOCK, BY GEOGRAPHIC of 1934-35.
In addition to these factors affecting the
DIVISIONS, D E C . 31, 1934
volume of livestock loans held by commercial
banks, there has been a shifting of this type
Loans secured by Loans secured by
crops, equipment, of loan to other agencies, which has further
livestock only
and livestock.
influenced the reductions of such loans in the
hands of commercial banks. Prior to 1920
Geographic division
Percent- livestock loan companies, making loans to livePercentage of
age of
stock growers and feeders and selling their
Amount United Amount United
States
States
paper to banks throughout the country, were
total
total
important factors in the field of livestock
financing. The sharp drop in livestock prices
ifi
1,000
dollars Percent dollars Percent
that began in 1920 brought about heavy losses
New England
0.4
522
0.4
642
Middle Atlantic";::::
1.2 to these companies and many became insolvent
1,472
1,929
1.4
East North Central
"
9.8
5,709
15,585
•5.6
West North Central"
42.2 and were liquidated. By the end of 1929 only
34,208
67,414
32.8
1.5 a few of these companies remained and at the
South Atlantic..,..
2,111
2,465
1.9
3.8
East South Central....":""
2,018
6,065
2.0
19.7 present time the livestock loan company which
West South Central
"
26,097
31,426
25.1
13.5
21,432
21,560
20.6
Mountain
7.9 operates on the basis of selling livestock paper
10,584
10.2
12,699
Pific....".;;:::::::'^
to commercial banks has virtually disappeared.
United States
100.0
104,153
100.0
159,785
Following the passage of the Agricultural
Credits Act of 1923 permanent agencies for
The distribution of livestock loans follows in the rediscounting of livestock loans, as well as
a general way the distribution of livestock for other types of agricultural paper, were pronumbers, being relatively largest in the West vided in the establishment of the Federal interWorth Central, West South Central, and Moun- mediate credit banks. Some of the previously
ted States. The Pacific Coast States also existing livestock-loan companies began to use
k• n a . cons iderable volume of such loans, this new source of funds with which to conchiefly m California. Of the individual States, tinue their loan operations, and additional loan
tile largest volume was held by Texas with 18.4 companies and agricultural credit corporations
percent of the United States total of loans were organized. At the end of 1932 Federal
secured solely by livestock and with 11.9 per- intermediate credit banks were rediscounting
pent of the United States total of loans based about $59,000,000 of livestock loans as comui part on livestock security. Nebraska and pared with about $35,000,000 at the end of
Minnesota had the next largest volume, and 1929,
^ansas, California, Oklahoma, and Iowa also
The establishment of the regional agriculym relatively large amounts of loans based on tural credit corporations in 1932 opened up
livestock security?
another source of credit to livestock growers
A oe volume of livestock loans held by com- which resulted in a considerable shifting from
ercial banks has been substantially reduced banks of loans secured by livestock. The
the same factor that has influenced other largest volume of outstanding livestock loans
57363^36
3
242
FEDERAL RESERVE BULLETIN
held by these corporations was $78,223,000,
reached in August 1933. In the same month
they also held agricultural loans, a considerable proportion of which was in part secured
by livestock, in the amount of $80,171,000.
Under the system of local production credit
associations set up under the supervision of the
Farm Credit Administration in 1933 and 1934,
loan operations have expanded rapidly and at
the end of 1934 these associations had $32,855,000 of livestock loans outstanding. This
amount includes a portion of the loans previously financed by the regional agricultural
corporations.
At the end of 1934 the various agencies
operating under the supervision of the Farm
Credit Administration had outstanding livestock loans in the following amounts: Regional
agricultural credit corporations, $50,379,000;
Federal intermediate credit banks: discounted
for production credit associations, $32,855,000;
discounted for other financing institutions,
$44,514,000.
The growth in the volume of livestock loans
by these federally sponsored institutions explains, in part, the relatively low level of livestock loans held by commercial banks at the
end of 1934.
Commercial banks located in the leading
livestock marketing centers have usually played
an important part m the financing of livestock,
particularly in connection with the purchase of
cattle for feeding. In most stockyard centers
one or more banks have specialized in livestock loans, either in making loans directly to
livestock growers and feeders or in rediscounting loans for livestock commission firms.
To ascertain the relative importance of loans
granted by banks in stockyard centers, a special tabulation was made of the livestock loans
reported by banks in, or adjacent to, 5the 17
most important livestock markets. The
amount of loans secured by livestock only, held
by banks in these 17 centers on December 31,
1934, was $18,764,500, or 28.4 percent of their
total agricultural loans. The amount of their
loans secured by crops, equipment, and livestock was $5,274,400, or 8 percent of their total
agricultural loans.
In comparison with the total loans in these
two classifications held by all banks in the
United States, banks in these 17 centers held
18 percent of all loans secured by livestock
y;
Portland
o a City; Denver;
'
Oreg ; F o r t
'
Worth;
APBIL 1930
only, and 3.3 percent of the total of loans
secured by crops, equipment, and livestock.
loans secured by warehouse receipts, bills
of lading, etc.—Loans secured by warehouse
receipts, bills of lading, etc., constitute 11.1 percent of total agricultural loans and 17.9 percent
of personal and collateral loans. Except in the
southern cotton States, the amount of such
loans, in comparison with other types of agricultural loans, was relatively small. As indicated in table 14, 86 percent of the United
States total were concentrated in the South
Atlantic, East South Central, and West South
Central States.
TABLE 14.—DISTRIBUTION OF LOANS SECURED BY
WAREHOUSE RECEIPTS, BILLS OF LADING, ETC., BY
GEOGRAPHIC DIVISIONS, D E C . 31, 1934
Geographic division
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South CentralMountain
Pacific
United States
.- ~- -
Loans
secured by Percentage
warehouse of United
receipts, States total
bills of
lading, etc.
1,000 dollars Percent
0.1
147
319
.2
2,105
1.4
11,186
7.7
35.2
50,950
28.9
41,828
21.7
31,439
.9
1,276
3.9
5,595
144,845
100.0
In the cotton-growing States, loans of this
category were substantially expanded as a
result of the commodity loan plan formulated
in connection with adjustment or marketing
programs of the Agricultural Adjustment Administration. Under this plan, the Commodity Credit Corporation 6 stood ready to purchase loans based on designated commodities,
when such loans had been made on the prescribed form of note and when tendered on or
before a specified date, usually 30 days prior
to the note's maturity date. The rate ol
interest on these loans was 4 percent.
With the availability of this loan plan,
eligible producers in the Southern States were
able to obtain loans on cotton and on gum
«This corporation was authorized by the President's' Executive orde^
of Oct. 16, 1933. It was organized under the laws of the °t^6PlJz the
ware on Oct. 17, 1933, its entire capital stock being subscribed^/AdCredit j ^
Secretary of Agriculture and the Governor of the ™"
ministration for and on behalf of the United States. _
$3,000,000 capital stock were obtained by the President s i
that sum from the $100,000,000 appropriation authorized by secuug
of the National Industrial Recovery Act and by the Fourth Deflciey
Act of the fiscal year 1933, approved June 16. Additional f u ^ 3 ^
carrying on its loan operations have been obtained from the neco^"
tion Finance Corporation.
Ami 1036
243
FEDERAL RESERVE BULLETIN
turpentine in the amount specified under the
Corporation's loan plan. The notes could then
be forwarded to the Commodity Credit Corporation for disbursement of the loan proceeds
or local banks or other agencies could make
disbursement of the loan proceeds, and hold
the note with a repurchase agreement by the
Commodity Credit Corporation. As the interest rate of 4 percent on these loans was substantially higher than the rate of return on
other short-term liquid paper, local banks
exercised their privilege of holding these commodity loans in their portfolios.
Loans on cotton during the 1934 marketing
season were made on the basis of 12 cents per
pound for cotton that was Low Middling in
grade and seven-eighths of an inch or better
in staple, and 11 cents per pound on such grade
of cotton with staple below seven-eighths of
an inch. As of December 31, 1934, it was reported that loans in the amount of $207,902,000
were 7
held by banks and other lending institutions.
Loans on gum turpentine and gum rosin
during 1934 were made on the basis of $50 per
unit with a deduction of $10 per unit for carrying charges. The loan limits were later raised
(Sept. 6, 1934) to $50 per unit with no deduction for carrying charges. As of December 31,
1934, it was reported that banks and other
lending agencies (exclusive of loans held directly
by the Commodity Credit Corporation) held
loans of this character in the amount of
p,457,000.8 Commodity Credit Corporation
Joans on gum turpentine and gum rosin, held
?y cpnunericol banks, were chiefly concentrated
m Florida, Georgia, and South Carolina.
Loans on corn in 1934 were made on the basis
of 55# cents per bushel. Owing to the short
crop in that year, corn prices were relatively
^gn and farmers did not make nearly as extensive use sof thisc eloan plan as in the preceding
fhafV A °* D e m b e r 31,1934, it was reported
l a
*J J'banks and other lending agencies (exclusive
jtt the secur
Commodity Credit Corporation) held
etc., as reported by commercial banks, is somewhat understated. Examination of the schedules from banks in cotton-growing States indicated that many banks, chiefly nonmember
State banks, failed to classify their Commodity
Credit Corporation loans under this group
classification.
loans on other collateral.—The proportion
of loans secured by collateral of a type other
than that discussed above totaled only 4 percent of total agricultural loans. The highest
proportion of such loans to total agricultural
loans was found in the Middle Atlantic and
New England States, table 15.
TABLE 15.—DISTRIBUTION OF LOANS SECURED BV
OTHER COLLATERAL,1 BY GEOGRAPHIC DIVISIONS,
DEC. 31, 1934
Geographic division
New England
Middle Atlantic
East North CentralWest North Central.
South Atlantic
East South Central.
West South Central.
Mountain
Pacific
United States-
Loans se- Percentage
cured by of United
other col- States total
lateral
1,000 dollars Percent
3.6
1,917
16.0
8,427
13.1
6,867
12.1
6,343
11.9
6,231
8.1
4,227
13.5
7,066
7.4
3,906
14.3
7,602
52,491
100,0
1 Loans secured by collateral other than farm real estate, livestock,
crops and equipment, warehouse receipts, etc.
Previous surveys have indicated that "other"
collateral has been represented in large part by
stocks and bonds, the proportion being 69 percent in 1920, 45 percent in 1923, and 53 percent
in 1931. The use of stocks and bonds as security for agricultural advances has been more
prevalent in the New England and Middle
Atlantic States than in other geographic divisions*
Unsecured loans.—The practice of making
loans to fanners on the basis of a promissory
other than endorsement
iSf^S
ed by corn in the amount of note without security the northeastern section
is most prevalent in
$6,026,000.8
of the United States. In the Middle Atlantic
It is probable that the total amount of loans States 49 percent of all agricultural loans were
secured by warehouse receipts, bills of lading, of this type. The lowest proportion of unsecured loans of any of the geographic divisions
es
department of Agriculture, Agricultural Adjustment
S: o2f ?th v A g r i c u l t u r a l Adjustment in 1934. A Report of Ad- was in the West South Central States where
l
»
?,Agricultural Adjustment Act, Feb. 15, 1934, to Dec.
only 10.6 percent of all agricultural loans were
f PP.Iillus. 1935. See p. 215.
i^Partment of Agriculture, Agricultural Adjustment of this type.
See p. 217 of reference cited In footnote 7.
244
FEDERAL RESERVE BULLETIN
APBIL 1936
Unsecured loans constituted 26.5 percent of AGRICULTURAL LOANS HELD BY BANKS IN
TOWNS AND CITIES OF VARIOUS POPULATION
total agricultural loans held by banks. ByGROUPS
geographic drvisons the largest amounts were
concentrated in the Middle Atlantic, East
As the country banks form the main source
North Central, and West North Central. of short-term credit for farmers, it is of interest
Distribution of this type of loan, by geographic to indicate the amount of agricultural loans
divisions is shown in table 16.
held by banks in towns and cities in various
population groups. Such a classification of
TABLE 16.—DISTRIBUTION OF LOANS NOT SECURED
loans tends to show clearly the extent to which
BY COLLATERAL, BY GEOGRAPHIC DIVISIONS, D E C .
commercial bank loans to agriculture are con31, 1934
centrated in banks in the smaller towns and
Loans not Percentage cities.
secured by of United
Geographic division
Table 17 shows a^distribution of agricultural
collateral States total
loans of commercial banks in the United
States, the towns and cities in which such
1,000 dollars Percent
2.3 banks are located having been classified in 11
8,063
New England
52,177
15.1
Middle Atlantic-..
91,014
26.3 different population groups.
East North Central.
69,411
20.0
West North Central.
The classification in table 17 tends to under36,941
10.7
South A t l a n t i c . . . .
33,753
9.7 state the proportion of agricultural loans held
East South Central15,442
4.5
West South Central.
10,323
3.0 by banks m smaller places because the loans of
Mountain
29,215
8.4 branch-banking systems are reported from the
Pacific
United States346,339
If it had been possible to obtain
100.0 head office.
reports from each branch and to classify its
agricultural loans in the population group to
Although information as to the proportion which such branch bank belongs, the proporof unsecured loans represented by notes with tion of loans held by banks in smaller places
one or more endorsements was not obtained in would have been increased. The large per1934, data from previous surveys indicate that centage of real estate loans held by banks in
in 1920, 52.9 percent of such loans were made places having a population of 500,000 and over
without endorsement; 49.6 percent in 1923 and is largely accounted for by the reports of
branch-banking systems.
58.8 percent in 1931.
TABLE 17.—AMOUNT OF AGRICULTURAL LOANS HELD BY BANKS IN TOWNS AND CITIES OF VARIOUS POPULATION GROUPS, D E C . 31, 1934
Loans to farmers secured b y Population groups
Under 1,000
1,000 to 2,499
2,500 to 4,999-,._
5,000 to 9,999
10,000 tOl4,999__
15,000 to 24,999..
25,000 to 49,999.50,000 to 99,999. _
100,000 to 249,999
250,000 to 499,999
500,000 and overTotal
Loans
secured by
farm real
estate
Livestock
only
Livestock Warehouse
and/or
receipts,
Other
crops and
bills of
collateral
equipment lading, etc.
Total loans
to farmers Total loans
exclusive to farmers
of loans se- and on
cured by farmland
farm land
1,000 dollars 1,000 dollars1,000 dollars 1,000 dollars 1,000 dollars 1,000 dollars 1,000
101,126
21,126
56,887
17,485
120,610
10,320
226,428
85,871
20T615
40,041
26,992
79,603
9,556
176,807
61,760
13,044
19,735
25,782
50.434
8,117
117,112
52,781
9,787
15,351
15,086
35,610
5,798
81,632
25,791
5,337
7,068
11,103
16,457
3,084
43,049
20,958
4,236
9,717
8,820
2,380
31.848
22,359
5,682
3,866
12,395
2,530
2,924
27,397
14,883
1,682
866
5,084
16,149
1,808
25,589
13,126
7,264
2,828
4,174
2,462
2,196
18,924
11,578
9,198
1,347
1,762
15,230
2,062
29,599
88,609
6,182
5,101
10,493
4,246
3,206
29,228
498,842
104,153
807,613
159,785
144,845
52,491
346,339
Table 18, showing the percentage distribution
of agricultural loans by population groups,
shows that 50 percent of the personal and
collateral loans to farmers was held by banks in
places of less than 2,500 population. Taking
all banks in places of less than 15,000 population, this group of banks held 65 percent of the
Loans not
secured by
collateral,
including
both endorsed and
unendorsed
notes
327,554
262,678
178,872
134,413
52^806
as
117,837
1,306,455
loans secured by farm real estate, 80 percent of
the personal and collateral loans to farmers,
and 74 percent of all agricultural loans. As the
size of the population group increases, the percentage of total agricultural loans held in eacn
group decreases, with the exception of the las*
group, to which reference has already been made
FEDERAL RESERVE
APRIL 1936
BULLETIN
245
TABLE 18.—PERCENTAGE DISTRIBUTION OP AGRICULTURAL LOANS HELD BY COMMERCIAL BANKS IN VARIOUS
POPULATION GROUPS, DEC. 31, 1934
Percentage distribution of
agricultural loans
Population group
Under 1,000
1,000 to 2,499-.—.
2,500 to 4,999
5,000 to 9,999
10,000 to 14,999—.
15,000 to 24,999....
25,000 to 49,999....
50,000 to 99,999—.
100,000 to 249,999..
250,000 to 499,999..
500,000 and over..
Total..
Personal Total
and col- agricullateral
tural
loans to loans
farmers
Percent Percent Percent
20
28
25
17
22
20
12
14
15
11
10
10
5
5
5
4
4
4
5
3
3
3
3
2
9
18
100
100
100
Secured
by farm
real
estate
Not only do banks in the smaller places have
a larger proportion of the total agricultural
loans but they also have a higher percentage of
their total loans represented by agricultural
advances. The ratio of agricultural loans to
total loans in the various population groups was
as follows:
Population:
Under 1,000
_
1,000 to 2,499
„
2,500 to 4,999
5,000 to 9,999
„
10,000 to 14,999
__
15,000 to 24,999
.. "
25,000 to 49,999.__ ...
50,000 to 99,999
100,000 to 249,999.. _
250,000 to 499,999.
_
500,000 and over
All banks
.
_
.
„
Percen
49.9
_ __ 43. 1
29. 8
19.9
-14.9
9.8
7.0
4.4
2.9
2.7
1. 7
9. 0
Considerable variation is shown, as between
geographic divisions, in the percentage of
agricultural loans to total loans held by banks
in the s a m e Population groups. In the ~ ' •
- •
"
- West
\r i
Worth Central States, w^ixivo l lo<a t e d i n p l a c e s
. w «^WMJUOOy banks o c
ot less than 1,000 population had 76.3 percent
oi their total loans represented by agricultural
advances. In the Middle Atlantic States the
percentage in the same population group was
Population group
Under 1,000—..
Under 2,500
Under 5,000-...
Under 10,000...
Under 15,000...
Under 25,000...
Under 50,000...
Under 100,000..
Under 250,000Under 500,000..
Total—.
Cumulative percentage
distribution of agricultural loans
Secured Personal Total
by farm and col- agricullateral
tural
real
estate loans to loans
farmers
Percent Percent Percent
25
20
28
45
37
50
49
65
60
75
74
65
80
69
84
78
74
87
82
77
90
85
80
92
88
82
96
91
100
100
100
only 14.5 percent and in the New England
States 17.1 percent. In the New England and
Middle Atlantic States the highest percentage
of agricultural loans to total loans is found m
banks located in places of 1,000 to 2,499 population. In all of the other geographic divisions
the highest percentage is found in the population group representing places of less than
1,000. The Mountain States show a relatively
higher percentage of agricultural loans in the
higher population groups than do other geographic divisions, chiefly because of the financing of the livestock industry. The largescale operations of range livestock growers
frequently involve financing on a scale that
cannot be handled by the smaller institutions,
hence these larger loans tend to be financed
by banks in the larger cities. In the West
South Central, East South Central, and the
South Atlantic States, the percentage of agricultural loans held by banks in the larger
population groups is influenced by holdings
of Commodity Credit Corporation loans on
warehoused cotton.
Table 19 shows the variations in the proportion of agricultural loans to total loans, by
population groups, for each of the geographic
divisions.
TABLE 19*—PERCENTAGE OF AGRICULTURAL LOANS TO TOTAL LOANS, BY GEOGRAPHIC DIVISIONS AND BY
POPULATION GROUPS, DEC. 31, 1934
West
East
West
East
MounSouth
Pacific
Middle
South
South
NewNorth
North
tain
Population group
England Atlantic Central Central Atlantic Central Central
Percent
Percent
Percent Percent Percent Percent
Percent Percent Percent
68.7
75.0
69.9
64.7
45.1
76.3
61.0
14.5
17.1
Less than 1,000
53.3
69.6
60.7
48.2
35.9
67.7
45.9
18.5
26.0
1,000 to 2,499
42.6
58.7
63.1
42,1
29.7
55.4
31.9
12.0
12.5
2,500 to 4,999
41.3
53.5
39.3
34.0
19.4
39.7
22.6
5.2
9.9
5,000 to 9,999
46.3
34.6
34.6
32.4
22.3
30.8
14.8
3.2
4.1
51.5
10,000 to 14,999 —
30.8
19.7
24.4
11.8
17.0
14.2
2.1
4.0
18.6
15,000 to 24,999 __.
28.3
21.2
7.8
4.5
19.9
6.9
1.6
1.1
13.0
25,000 to 49,999 __.
5.1
8.9
3.6
8.5
8.4
5.5
.7
10.4
4.7
50,000 to 99,999 ._.
8.3
4.5
2.6
10.9
1.9
.4
19.8
2.5
100,000 to 249,999 .
2.8
9.8
1.0
3.7
.9
.1
9.8
250,000 to 499,999 .
.7
1.2
.4
500,000 and over _.
0)
0)
11.6
23.2
39.1
25.0
14.3
28.9
10.9
nks
1
Less than 0.05 percent.
246
FEDERAL RESERVE BULLETIN
AGRICULTURAL LOANS CLASSIFIED BY TYPE
BANK
OF
As reports covering all commercial banks
were received by three different supervisory
agencies, a classification was made to indicate
the differences between the three types of
banks. These types were: Nonmember State
banks reporting to Federal Deposit Insurance
Corporation, State banks that were members
of the Federal Reserve System reporting to the
Federal Reserve Board, and national banks
reporting to the Comptroller of the Currency.
Of the three types of banks, national banks
held the largest proportion of all the agricultural loans, having 48.4 percent of the total.
Nonmember State banks held 43.8 percent
and State member banks held 7.8 percent of all
agricultural loans.
On the basis of the percentage of agricultural
loans to total loans, nonmember State banks
have the highest proportion of their total loans
represented by agricultural advances. Such
advances represented 22.7 percent of total
loans for nonmember State banks, 2.3 for
member State banks, and 8.5 for national
banks.
The materially higher proportion of agricultural loans to total loans shown for nonmember
State banks is largely accounted for by the
heavy concentration of this type of bank in
the smaller places. Seventy-one percent of all
nonmember State banks were located in places
of less than 2,500 population as compared with
35.7 percent of all member State banks and
43.3 percent of all national banks. Table 20
showing the percentage distribution of the
number of banks in various population groups,
indicates the extent to which there is a relatively greater concentration of nonmember
State banks in the smaller places.
TABLE 20.—PERCENTAGE DISTRIBUTION OP THE NUMBER OF BANKS IN VARIOUS POPULATION GROUPS
DEC. 31, 1934
'
Population group
Under 1,000
1,000 to 2,499
2,600 to 4,999
5,000 to 9,999
10,000 to 14,999....
15,000 to 24,999....
25,000 to 49,999....
50,000 to 99,999....
100,000 to 249,999—
250,000 to 499,999...
500,000 and over...
Total..
Nonmember
State
banks
Member
State
banks
National
banks
Total
Percent Percent Percent Percent
27.7
1.2
7.6
36.5
10.8
1.3
9.2
21.3
5.2
.8
6.3
12.3
3.3
.7
5.3
9.3
1.6
.5
2.5
4.6
1.1
.3
2.2
3.6
1.2
.5
1.9
3.6
.8
.4
1.3
2.5
.9
.3
1.0
2.2
.8
.3
.7
1.8
.8
.7
.8
2.3
54.2
7.0
100.0
APRIL 1936
TABLE 21.—CLASSIFICATION OF AGRICULTURAL LOANS
HELD BY COMMERCIAL BANKS, BY STATES AND
GEOGRAPHIC DIVISIONS, DEC. 31, 1934
Loans to farmers secured Loans
bynot secured
b y colLoans
lateral
seincluding
Crops, WareState and geo- cured
by
equip- house Other both
graphic division farm Liverement, ceipts, collat- enreal stock and
dorsed
estate only live- bills of eral and
lading,
unenstock
etc.
dorsed
notes
1,000 1,000 1,000 1,000 1,000 1,000 1,000
dollars dollars dollars dollars dollars dollars dollars
4,009
316 1,794
1,740
118
34
1,801
844
239
665
18
4
11,778
359
12 385 2,408 15,093
156
3,423
553 1,277
1,395
100
19
79
682
116
40
285
241
3,884
384 1,
1,743
78
8
47
43,444
156 4,283 18,837
17,412 1,272 1,484
12,063
28 1,193 6,830
3,852
145
15
51,031
135 2,951 26,510
20,950
185
300
New England:
Maine
N. H
Vt
Mass
R.I
Conn
Mid. Atlantic:
N. Y
N.J
Pa
E. N. Central:
Ohio...
1,397
1,575
5,561
1,362
58 1,479 21,376
828 19,023
354
1,507 2,548 30,905
486 6,256
57
129 1,526 13,454
57,660
41,507
65,547
20,739
44,163
11,415
17,939
16,978
1,602
2,242
9,302
9,933
46,991
66,791
53,136
11,531
14,994
36,467
34,915
1,839
5,121
17,363
85
34,065
10,042
18,994
14,042
38,000
4,506
Ind
Ill
Mich
Wis
32,714
18,719
22,777
11,760
22,366
1,008
2,249
818
Minn
Iowa
Mo
N. Dak..
S. Dak
Nebr
Kans
14,638
26,240
18,619
2,795
2,334
4,248
7,384
182 1,
2,068 17,590
5,102 10,744 6,656 1,110
9,238 3,492 3,131 1,678
302
115
667 6,050
306
23
1,814 8,275
7,858 12,374 1,680 1,005
849
7,461
Del
Md
D. C
Va
W. Va
N. O
3,183
9,520
61
14,113
3,929
4,844
1,146
5,153
1,581
W. N. Central:
South Atlantic:
s. c
Total
loans to
farmers
and on
farm
land
"
49
857
130
80
101
738
156
14
176
745
345
23
46
243 9,913
354 11,192
759 28,279
793
528
704 6,911
19
15
16,109
441 5,473
921 2,993
680
569
1,088 1,983
399 1,049
Ga
Fla
E. S. Central:
40,833
166 1,586 20,713
604
17,267
497
y
36,852
10,210
717 1,153 12,384 1,111 11,277 32,872
Tenn
1,048
734
3,917
404 3,164 23,605
Ala
19)411
715
796
10,683
400 1,144 5,673
Miss..
W. S. Central:"
1,393 19,710
5,148
610 2,080 9,163 1,316
14,400
Ark
689 2,283 25! 199
8,438
o59 2,366
265
La
3,424 6,046 9,970 2,348 1,017 2,394 86,355
Okla__ I I "
Okl™
9,372
17,184 19,176 19,017 17,562 4,044
Tex
Mountain:
297 1,943
77
2,174 2,429 5,249
8,073
Mont
175 1,671 12^34
545
1,313 2,009 2,360
Idaho.. .
324 1,105 19,750
10
1,415 2,470 7,110
Wyo
256 1,482 2,788
3,117 7,549 4,558
3,942
Colo
526
150
138
387
818 1,923
2,533
N.Mex
390
30
114
218
805
976
11,622
Ariz
1,723
130 1,419
3,117 3,643 1,
Utah....:
1,091
177
29
358
433
Nev
13,783
Pacific:
4,118
680
2,842 1,820
3,290 1,033
9,861
Wash
357 2,713 163,471
reg
909
2,667
997 2,218
Cal
alif
115,563 8,554 7,639 2,866 6,465 22,384
U.S...
498,842104,153 159,785 144,845 52,491 346,339 1,306,455
APBIL 1936
FEDEBAL RESERVE BULLETIN
247
LAW DEPARTMENT
Deposits of municipal corporations not classified as
savings deposits.
The Board recently received a request for its
views upon the question whether deposits of
municipalities and subdivisions or departments
thereof, such as sinking fund commissions,
boards of education, and police and fire departments, and deposits of funds of a municipality set aside for playground and other similar purposes, may be classified as savings
deposits under the definition contained m
section 1 (e) of Regulation Q.
The Board stated that, in its opinion, deposits of the type described above may not be
classified as savings deposits within the meaning of section 1 (e) of Regulation Q, because
municipal corporations may not be considered
as organizations operated primarily for religious, philanthropic, charitable, educational,
fraternal or other similar purposes, nor may
it be considered that the beneficial interest
in deposits of such corporations is in one or
more individuals.
The Board also expressed the opinion that a
deposit in the name of a municipality consisting of funds given to the municipality for
a charitable purpose, such as the erection of a
memorial gate, may not be classified as a
savings deposit. The Board stated that it
believed that a construction of the regulation
which would permit funds of a municipal
corporation held for a charitable purpose to be
considered as funds held for one or more individuals on the theory that the public consists
of a group of individuals would open the door
to evasions of the regulation, and that such a
construction would seem to involve an extension of the language of the regulation, which
bases the privilege of maintaining a savings
deposit upon the nature of the depositor or the
person holding the beneficial interest in the
oeposit rather than upon the purpose for which
the funds are to be used.
certificates of deposit payable in 3, 6, 9, or 12
months after date.
J-he Board was recently requested to rule
Pon the question whether it is permissible
^ d ear mthe bprovisions of Regulations D and Q
f,j e m e f bank to issue a time certificate
ot deposit which is payable 3, 6, 9, or 12 months
al
ter its date, the rate of interest thereon not
u
to exceed the maximum rate prescribed in
Regulation Q for the shortest period mentioned,
namely, 3 months.
The Board expressed the opinion that it is
permissible for a member bank to issue such a
certificate, provided it complies with the other
requirements for a time certificate of deposit
stated in section 1 (c) of Regulations D and Q.
Such a certificate would be payable at the
expiration of 3 months from the date of its
issuance or, if not paid at that time, at the
expiration of 6 months from the date of its
issuance or, if not paid at that time, at the
expiration of any of the other periods stated
in the certificate. The certificate might also
be payable before maturity under the circumstances and subject to the conditions stated in
section 4 (d) of Regulation Q.
Classification of "branch clearing" accounts in call
reports and in computing reserves of member banks*
The Board recently received an inquiry regarding the proper classification of "branch
clearing" accounts in preparing call reports and
in computing the daily deposit liability of member banks for reserve purposes.
It appeared from information before the
Board that most of the items in "branch clearing" accounts represent (1) checks drawn on a
member bank (or offices or branches thereof)
for which deposit credit or its equivalent has
been given at offices or branches of such member bank other than those at which the depositors' accounts are carried, and that sufficient
time has not elapsed for the items to have
reached the latter offices or branches and be
charged to the depositors' accounts, and (2)
checks drawn on another bank which have
been deposited in a member bank (or offices or
branches of such member bank) and have been
forwarded for collection to other offices or
branches of the member bank located in the
same city or vicinity as the drawee bank.
The Board expressed the opinion that items
of the type described above constitute "cash
items in process of collection" within the meaning of paragraph (g) of section 1 of Regulation
D and, accordingly, to the extent that a "branch
clearing" account consists of such items, the
balance in the account may be deducted from
gross demand deposits in determining required
reserve balances and should be included in
item 2 of schedule I in call reports.
248
FEDERAL RESERVE BULLETIN
Accommodation endorsement by an executive officer of
a member bank.
AFBH, 1939
be justification for excluding the liability on
such endorsement from the provisions of
Regulation 0.
In the circumstances, the Board ruled that
the liability of an executive officer of a member
bank by reason of an accommodation endorsement on a note or other evidence of indebtedness held by a bank is included within the
definition contained in section 1 (c) of the
Board's Regulation 0 .
Inquiry was recently made of the Board of
Governors as to whether the endorsement of a
note or other evidence of indebtedness by an
executive officer of a member bank, which is
purely for the accommodation of a third party
and from which the executive officer derives
neither directly nor indirectly any financial
benefit, is included within the definition contained in section 1 (c) of the Board's Regulation 0.
Section 1 (c) of the Board's Regulation 0 Secretary of the board of directors of a member bank
provides, in part, that the terms "loan",
not an executive officer.
"loaning", "extension of credit", and "extend
The question whether the secretary of the
credit" include:
board of directors of a member bank is an
(2) The acquisition by discount, purchase, exchange, or otherwise of any note, draft, bill of exchange, executive officer thereof within the meaning
or other evidence of indebtedness upon which an of that term as defined in subsection (b) of
executive officer may be liable as maker, drawer, section 1 of the Board's Regulation 0 was
and indorser, guarantor, or surety;
recently considered by the Board of Governors.
and
It appeared from the facts presented that a
director of the bank had the title of secretary
(5) Any other transaction as a result of which an
executive officer becomes obligated to a bank, directly of the board of directors; that his functions
or indirectly by any means whatsoever, by reason of were those pertaining to the minutes of meetings
an indorsement on an obligation or otherwise, to pay
of the board of directors and the certification of
money or its equivalent.
certain resolutions passed
An accommodation endorsement by an execu- directors; and that he actedby the board of
strictly in these
tive officer of a member bank on a note or other and similar capacities, but that he did not in
evidence of indebtedness is included within the
definition quoted above if the executive officer any sense participate in the management of
may be liable as an endorser or becomes obli- the bank. On the basis of such facts, the Board
gated to a bank by reason of such an endorse- expressed the view that the director in question
ment. In this connection, the Board pointed who was also secretary of the board of directors
out that under the usual rules of law an of the member bank was not an executive
accommodation endorser is one who has signed officer within the meaning of that term as
an instrument as an endorser, without receiv- defined in Regulation O.
ing value therefor and for the purpose of lending his name to some other person, and such an
endorser is liable on the instrument to the Reports by executive officers of member banks of their
indebtedness to other banks.
holder for value.
Moreover, a loan or extension of credit to a
An inquiry was recently made of the Board
third person based in part upon the credit of of Governors as to whether an executive officer
an executive officer, as represented by his of a member bank who had reported to the
accommodation endorsement, is a transaction board of directors of such bank his indebtedwhich it is believed should be subject to the ness to other banks subsequent to August 23,
same restrictions as a loan or extension of 1935, the date of the enactment of the Banking
credit to the executive officer himself. The Act of 1935, but prior to January 1, 1936, the
abuses which led to the enactment of section effective date of the Board's Regulation 0, and
22 (g), including the undue influence exercised in accordance with the requirements of section
by some executive officers in obtaining credit 22 (g) of the Federal Reserve Act, as amended
from the banks they serve, may also be present by the Banking Act of 1935, is required after
to a certain extent in the case where a loan to a January 1, 1936, to make another report to the
third person is supported by the accommoda- board of directors of the member bank, as protion endorsement of an executive officer. vided in section 5 of the Board's Regulation 0,
Accordingly, the mere fact that an executive covering the same indebtedness.
. ,
officer receives no financial benefit as the result
In response to the inquiry, the Board pointed
of his accommodation endorsement would not out that the report required by section 5 of the
FEDERAL RESERVE BULLETIN
APRIL 1936
Board's Regulation O would include certain
information in addition to that specifically
required to be included in such a report by the
terms of section 22 (g), and the regulation contemplates that reports in accordance with its
requirements should be made covering any
indebtedness of an executive officer of a member bank owing to other banks on January 1,
1936. The Board stated, however, that it
would not insist that a new report covering such
indebtedness be made under the provisions of
section 5 of Regulation O in any case where the
report made to the board of directors prior to
January 1, 1936, was made in conformity with
the requirements of section 22 (g), as amended
by the Banking Act of 1935, and contains the
name of the other bank to which the executive
officer of the member bank is indebted, provided that the member bank feels that it is not
necessary to obtain a new report and the
requirements of section 5 of the regulation
regarding the recording, retention and availability to duly authorized examiners of reports
of this kind are complied with.
Reports by executive officers of member banks of
indebtedness to Morris Plan companies.
The Board was recently presented with the
question whether, under its Regulation 0, an
executive officer of a member bank who is
indebted to a Morris Plan company in a certain
State is required to make a report of such
indebtedness to the board of directors of the
member bank of which he is an executive
officer.
. It appeared that the Morris Plan company
m question is authorized by the statute under
which it was organized to lend money on the
obligations of any person, firm, or corporation;
to buy and sell bonds or choses in action; to sell
its secured or unsecured evidences or certificates
°f indebtedness; to receive from investors
therein or purchasers thereof, payments theretor in installments or otherwise, with or without
an
allowance of interest on such installments;
and to enter into contracts in the nature of
Pledge or otherwise with said investors or
pur a S e r s
Vii
^ k reSar(i t0 such
Wh companies organized under certificates,
this statute
formerly authorized to receive deposits,
such authority is conferred upon them under
e presentr law.
L
^ o a d has, in a number of instances,
the position that certificates of indebtedness issued by Morris Plan banks or Morris
au c
°mpanies for which payment is made in
57363—36
4
249
installments in effect represent deposits and
serve the same purpose as certificates of deposit; and it has been the position of the Board,
therefore, that such Morris Plan banks or companies are properly to be regarded as banks
within the meaning of certain statutes. In
this connection, attention was called to the
ruling of the Board published in the FEDERAL
RESERVE BULLETIN for March 1934, at page
180, with respect to the question whether a
Morris Plan company is a bank within the
meaning of the Clayton Antitrust Act.
From a consideration of the statutory provisions under which the Morris Plan company
here in question was organized, it appeared
that the powers conferred upon such company
are essentially the same as those possessed by
Morris Plan banks or companies which the
Board has hitherto regarded as banks or banking institutions. The Board, therefore, expressed the opinion that the Morris Plan company in question should properly be regarded
as a "bank"' within the meaning of the provision of section 22 (g) of the Federal Reserve
Act which requires an executive officer of a
member bank to report any indebtedness "to
any bank other than the member bank of
which he is an executive officer.'' Accordingly,
an executive officer of a member bank who is
indebted to a Morris Plan company organized
under the statute above described is required
to report such indebtedness to the board of
directors of the member bank of which he is an
executive officer in accordance with the provisions of section 5 of the Board's Regulation O.
Loans to a corporation in which an executive officer of a
member bank is interested.
The Board recently received a request for a
ruling upon the question whether it would be
contrary to the provisions of section 22 (g) of
the Federal Reserve Act for a member bank
to make a loan to a corporation whose president, general manager, and largest stockholder
is also an executive officer of the member bank.
While section 22 (g) prohibits loans to a
partnership in which one or more executive
officers of a member bank are partners having
either individually or together a majority
interest in the partnership, it does not by its
terms prohibit a loan by a member bank to a
corporation even though an executive officer
of the member bank is substantially interested
in the corporation. Moreover, a corporation
is an entity separate and distinct from the
stockholders, whereas, in the case of a partner-
250
FEDERAL RESERVE BULLETIN
ship, the partners are individually liable for
the debts of the partnership, and the Board
observed that it was apparently on the basis
of this distinction that Congress included partnerships of the kind described within the prohibitions of section 22 (g) but made no reference
therein to corporations. Since it appeared
that the proposed loan would be made to the
corporation in good faith and that the proceeds
thereof would be used by the corporation for
its corporate purposes, the Board expressed
the view that such a loan would not be in
contravention of section 22 (g) of the Federal
Reserve Act.
However, it was pointed out in the Board's
.ruling that there may be circumstances in a
particular case where a loan by a member
bank to a corporation in which an executive
officer of the member bank is substantially
interested would be an attempted evasion of
the provisions of the law and, therefore, in
contravention of such provisions.
APRIL
1936
Regulations under Securities Exchange Act of 1934.
The Board has recently adopted a regulation,
and supplement thereto, relating to loans by
banks for the purpose of purchasing or carrying
stocks registered on a national securities exchange. The new regulation is called Regulation U. The Board has also revised the supplement to Regulation T relating to extension
and maintenance of credit by brokers, dealers,
and members of national securities exchanges.
Regulation U and the supplement thereto
will become effective May 1, 1936. The revised supplement to Regulation T became
effective April 1, 1936. The texts of the
regulation and supplements are printed below.
REGULATION U
LOANS BY BANKS FOR THE PURPOSE OF
PURCHASING OR CARRYING STOCKS
REGISTERED ON A NATIONAL SECURITIES
EXCHANGE
EXPLANATORY FOREWORD
Loans to partnerships under section 22 (g) of the
Federal Reserve Act.
(Not a part of the regulation)
This regulation is issued pursuant to the provisions
Under the provisions of section 22 (g) of the of section 7 of the Securities Exchange Act of 1934 and
Federal Reserve Act, as amended by the relates only to loans made on or after May 1, 1936. It
is not retroactive.
Banking Act of 1935:
Borrowing by, or loaning to, a partnership in which
one or more executive officers of a member bank are
partners having either individually or together a
majority interest in said partnership, shall be considered within the prohibition of this subsection.
The Board has received an inquiry as to
whether a member bank is permitted to extend
credit to a partnership in which an executive
officer of such bank is a partner with his
brother, each having an equal one-half interest
in the partnership.
Under well-settled rules of law, partners are
presumed to have equal interests in the firm
in the absence of evidence of an agreement to
the contrary. In the case of an executive
officer of a member bank who has exactly a
50 percent interest in a partnership, such an
interest would not amount to a "majority"
interest within the meaning of that term as it
is generally understood and in view of the
legal presumption and the statement contained in the inquiry that the executive officer
of the member bank did not have a majority
interest in the partnership, the Board expressed
the view that the prohibitions contained in
section 22 (g) of the Federal Reserve Act and
the Board's Regulation O are not applicable
to such a partnership.
The regulation does not restrict the right of a bank to
extend credit, whether on securities or otherwise, for
any commercial, agricultural, or industrial purpose, or
for any other purpose except the purchasing or carrying
of stocks registered on a national securities exchange.
The regulation does not prevent a bank from taking
for any loan collateral in addition to that required by
the regulation, nor does it require a bank to reduce any
loan, to obtain additional collateral for any outstanding
loan, or to call any outstanding loan because of insufficient collateral.
Any inquiry relating to this regulation should be
addressed to the Federal Reserve bank of the district
in which the inquiry arises.
SECTION 1. GENERAL RULE
On and after May 1, 1936, no bank shall make any
oan secured directly or indirectly by any stock for the
purpose of purchasing or carrying any stock registered on
a national securities exchange in an amount exceeding the
maximum loan value of the collateral, as prescribed
rom time to time for stocks in the supplement to this
regulation and as determined by the bank in good faith
r
or any collateral other than stocks.
For the purpose of this regulation, the entire indebtedness of any borrower to any bank incurred on or after
May 1, 1936, for the purpose of purchasing or carrying
itocks registered on a national securities exchange shall
APRIL
1936
FEDERAL RESERVE BULLETIN
be considered a single loan; and all the collateral securing such indebtedness shall be considered in determining
whether or not the loan complies with this regulation.
After any such loan has been made, a bank shall not at
any time permit withdrawals or substitutions of collateral that would cause the maximum loan value of the
collateral at such time to be less than the amount of the
loan. In case such maximum loan value has become
less than the amount of the loan, a bank shall not
permit withdrawals or substitutions that would increase
the deficiency; but the amount of the loan may be
increased if there is provided additional collateral
having maximum loan value at least equal to the
amount of the increase.
SECTION 2. EXCEPTIONS TO GENERAL RULE
Notwithstanding the foregoing, a bank may make
and thereafter maintain any loan for the purpose specified above, without regard to the limitations prescribed
above, if the loan comes within any of the following
descriptions:
(a) Any loan to a bank or to a foreign banking
institution;
(6) Any loan to any person whose total indebtedness to the bank at the date of and including
such loan does not exceed $1,000;
(c) Any loan to a dealer, or to two or more
dealers, to aid in the financing of the distribution
of securities to customers not through the medium
of a national securities exchange;
(d) Any loan to a broker or dealer that is made
in exceptional circumstances in good faith to meet
his emergency needs;
(e) Any loan for the purpose of purchasing a
stock from or through a person who is not a member of a national securities exchange and is not a
broker or dealer who transacts a business in securities through the medium of any such member, or
for the purpose of carrying a stock so purchased;
(/) Any temporary advance to finance the purchase or sale of securities for prompt delivery
which is to be repaid in the ordinary course of
business upon completion of the transaction;
(g) Any loan against securities in transit, or surrendered for transfer, which is payable in the
ordinary course of business upon arrival of the
securities or upon completion of the transfer;
(h) Any loan which is to be repaid on the calendar day on which it is made;
(*) Any loan made outside the 48 States of the
United States and the District of Columbia.
SECTION 3. MISCELLANEOUS PROVISIONS
(<0 In determining whether or not a loan is for the
S D ^ S ? e c i f i e d i n section 1 or for any of the purposes
Pecified in section 2, a bank may rely upon a state1 ih
respect thereto, accepted by the bank in
251
good faith, signed by an officer of the bank or by the
borrower.
(6) No loan, however it may be secured, need be
treated as a loan for the purpose of "carrying" a
stock registered on a national securities exchange
unless the purpose of the loan is to enable the borrower
to reduce or retire indebtedness which was originally
incurred to purchase such a stock, or, if he be a broker
or dealer, to carry such stocks for customers.
(c) In determining whether or not a security is a
"stock registered on a national securities exchange", a
bank may rely upon any reasonably current record of
stocks so registered that is published or specified in a
publication of the Board of Governors of the Federal
Reserve System.
(d) The renewal or extension of maturity of a loan
need not be treated as the making of a loan if the
amount of the loan is not increased except by the
addition of interest or service charges on the loan or of
taxes on transactions in connection with the loan.
(e) A bank may accept the transfer of a loan from
another lender, or permit the transfer of a loan between borrowers, without following the requirements
of this regulation as to the making of a loan, provided
the loan is not increased and the collateral for the loan
is not changed.
(/) A loan need not be treated as collateralled by
securities which are held by the bank only in the
capacity of custodian, depositary or trustee, or under
similar circumstances, if the bank in good faith has
not relied upon such securities as collateral in the
making or maintenance of the particular loan.
(g) Nothing in this regulation shall be construed to
prevent a bank from permitting withdrawals or substitutions of securities to enable a borrower to participate in a reorganization.
(h) No mistake made in good faith in connection
with the making or maintenance of a loan shall be
deemed to be a violation of this regulation.
(t) Nothing in this regulation shall be construed as
preventing a bank from taking such action as it shall
deem necessary in good faith for its own protection.
(j) Every bank shall make such reports as the Board
of Governors of the Federal Reserve System may
require to enable it to perform the functions conferred
upon it by the Securities Exchange Act of 1934*
(k) Terms used in this regulation have the meanings
assigned to them in such portions of section 3 (a) of the
Securities Exchange Act of 1934 as are printed in the
appendix to this regulation, except that the term
"bank" does not include a bank which is a member of
a national securities exchange.
(Z) The term "stock" includes any security commonly known as a stock, any voting trust certificate or
other instrument representing such a security, and any
warrant or right to subscribe to or purchase such a
security.
252
FEDERAL RESERVE BULLETIN
APPENDIX
There are printed below certain provisions of the
Securities Exchange Act of 1934:
Sec. 3.(a) * * *
(3) The term "member*' when used with respect to
an exchange means any person who is permitted either
to effect transactions on the exchange without the services of another person acting as broker, or to make use
of the facilities of an exchange for transactions thereon
without payment of a commission or fee or with the
payment of a commission or fee which is less than that
charged the general public, and includes any firm
transacting a business as broker or dealer of which a
member is a partner, and any partner of any such firm.
(4) The term "broker** means any person engaged in
the business of effecting transactions in securities for
the account of others, but does not include a bank.
(5) The term "dealer** means any person engaged in
the business of buying and selling securities for his own
account, through a broker or otherwise, but does not
include a bank, or any person insofar as he buys or sells
securities for his own account, either individually or in
some fiduciary capacity, but not as a part of a regular
business.
(6) The term "bank" means (A) a banking institution organized under the laws of the United States, (B)
a member bank of the Federal Reserve System, (C) any
other banking institution, whether incorporated or not,
doing business under the laws of any State or of the
United States, a substantial portion of the business of
which consists of receiving deposits or exercising
fiduciary powers similar to those permitted to national
banks under section ll(k) of the Federal Reserve Act,
as amended, and which is supervised and examined by
State or Federal authority having supervision over
banks, and which is not operated for the purpose of
evading the provisions of this title, and (D) a receiver,
conservator, or other liquidating agent of any institution or firm included in clauses (A), (B), or (C) of this
paragraph.
(0) The term "person*' means an individual, a corporation, a partnership, an association, a joint-stock
company, a business trust, or an unincorporated
organization.
(10) The term "security" means any note, stock,
treasury stock, bond, debenture, certificate of interest
or participation in any profit-sharing agreement or in
any oil, gas, or other mineral royalty or lease, any
collateral-trust certificate, preorganization certificate or
subscription, transferable share, investment contract,
voting-trust certificate, certificate of deposit, for a security, or in general, any instrument commonly known as
a "security"; or any certificate of interest or participation in, temporary or interim certificate for, receipt for,
or warrant or right to subscribe to or purchase, any of
the foregoing; but shall not include currency or any
note, draft, bill of exchange, or banker's acceptance
which has a maturity at the time of issuance of not
exceeding nine months, exclusive of days of grace, or
any renewal thereof the maturity of which is likewise
limited.
Sec. 7. (a) For the purpose of preventing the excessive use of credit for the purchase or carrying of
securities, the Board of Governors of the Federal Reserve System shall, prior to the effective date of this
section and from time to time thereafter, prescribe
rules and regulations with respect to the amount of
credit that may be initially extended and subsequently
maintained on any security (other than an exempted
security) registered on a national securities exchange.
1936
For the initial extension of credit, such rules and regulations shall be based upon the following standard:
An amount not greater than whichever is the higher o—
f
(1) 55 per centum of the current market price
of the security, or
(2) 100 per centum of the lowest market price
of the security during the preceding thirty-six
calendar months, but not more than 75 per centum
of the current market price.
Such rules and regulations may make appropriate
provision with respect to the carrying of undermargined accounts for limited periods and under specified
conditions; the withdrawal of funds or securities; the
substitution or additional purchases of securities;
the transfer of accounts from one lender to another;
special or different margin requirements for delayed
deliveries, short sales, arbitrage transactions, and
securities to which paragraph (2) of this subsection
does not apply; the bases and the methods to be used
in calculating* loans, and margins and market prices;
and similar administrative adjustments and details.
For the purposes of paragraph (2) of this subsection,
until July 1, 1936, the lowest price at which a security
has sold on or after July 1, 1933, shall be considered
as the lowest price at which such security has sold
during the preceding thirty-six calendar months.
(b) Notwithstanding the provisions of subsection
(a) of this section, the Board of Governors of the
Federal Reserve System, may, from time to time, with
respect to all or specified securities or transactions, or
classes of securities, or classes of transactions, by such
rules and regulations (1) prescribe such lower margin
requirements for the initial extension or maintenance
of credit as it deems necessary or appropriate for the
accommodation of commerce and industry, having
due regard to the general credit situation of the country,
and (2) prescribe such higher margin requirements for
the initial extension or maintenance of credit as it may
deem necessary or appropriate to prevent the excessive
use of credit to finance transactions in securities. %
(c) It shall be unlawful for any member of a national
securities exchange or any broker or dealer who transacts a business in securities through the medium of any
such member, directly or indirectly to extend or maintain credit or arrange for the extension or maintenance
of credit to or for any customer—
(1) On any security (other than an exempted security) registered on a national securities exchange, in
contravention of the rules and regulations which tne
Board of Governors of the Federal Reserve System
shall prescribe under subsections (a) and (b) of this
section.
(2) Without collateral or on any collateral other tnan
exempted securities and/or securities registered upon a
national securities exchange, except in accordance
with such rules and regulations as the Board of ™°yK
nors of the Federal Reserve System may prescribe W
to permit under specified conditions and for a hpjte.JJ
period any such member, broker, or dealer to maintain
a credit initially extended in conformity with * n e / v r :
and regulations of the Board of Governors ot ™v
Federal Reserve System, and (B) to permit tne
extension or maintenance of credit in cases where w*
extension or maintenance of credit is not for the pu
pose of purchasing or carrying securities or °*, e \?^7j
or circumventing the provisions of paragraph U;
this subsection.
,. +
(d) It shall be unlawful for any person not suDjecu
to subsection (c) to extend or maintain credit or *
arrange for the extension or maintenance of creu
for the purpose of purchasing or carrying any security
APBIL 1936
registered on a national securities exchange, in contravention of such rules and regulations as the Board of
Governors of the Federal Reserve System shall prescribe to prevent the excessive use of credit for the
purchasing or carrying of or trading in securities in
circumvention of the other provisions of this section.
Such rules and regulations may impose upon all loans
made for the purpose of purchasing or carrying securities
registered on national securities exchanges limitations
similar to those imposed upon members, brokers, or
dealers by subsection (c) of this section and the rules
and regulations thereunder. This subsection and the
rules and regulations thereunder shall not apply (A)
to a loan made by a person not in the ordinary course
of his business, (B) to a loan on an exempted security,
(C) to a loan to a dealer to aid in the financing of the
distribution of securities to customers not through the
medium of a national securities exchange, (D) to a
loan by a bank on a security other than an equity
security, or (E) to such other loans as the Board of
Governors of the Federal Reserve System shall, by such
rules and regulations as it may deem necessary or
appropriate in the public interest or for the protection
of investors, exempt, either unconditionally or. upon
specified terms and conditions or for stated periods,
from the operation of this subsection and the rules and
regulations thereunder.
(e) The provisions of this section or the rules and
regulations thereunder shall not apply on or before
July 1, 1937, to any loan or extension of credit made
prior to the enactment of this title or to the maintenance, renewal, or extension of any such loan or credit,
^ c e Pt to the extent that the Board of Governors of
the Federal Reserve System may by rules and regulations prescribe as necessary to prevent the circumvention of the provisions of this section or the rules and
regulationss e thereunder by means of withdrawals of
AAU- o r c u r i t i e s > substitutions of securities, or
additional purchases or by any other device.
bee. 29. (a) Any condition, stipulation, or provision
Dinding any person to waive compliance with any
provision of this title or of any rule or regulation thereunder, or of any rule of an exchange required thereby
snail be void.
. (b) Every contract made in violation of any provision of this title or of any rule or regulation thereunder,
ana every contract (including any contract for listing
a security on an exchange) heretofore or hereafter made
^e performance of which involves the violation of,
vLi ^ contin uance of any relationship or practice in
violation of, any provision of this title or any rule or
rifhf f°annthereunr<*er, l 0 i n be void (1) as regards the
shall
y
sinn r i o r P e s o n w i » violation of any such provire
in+L
'
gulation, shall have made or engaged
f
£J5S Pt r f c * mtasn coef aon v any such contract, and (2) as
ngh
tnWi!
Person who, not being a party
iinrf* contract,l shall have acquired any right therea c t u a kn
whiS «?
.
°wledge of the facts by reason of
in vini r m a k i n S °r performance of such contract was
of a n v s u c l 1
K ? ?
provision, rule or regulation.
afflSt VuOthinl?i diin t h i s title shall be construed (1) to
a
t
(or A*
7
y of any loan or extension of credit
Hen n ? x ^ n s ir ioonr o r renewal thereof) made or of any
or
thk tui U n liP
subsequent to the enactment of
es
or L+ nsion s at the time of the making of such loan
\
or riT
of credit (or extension or renewal thereof)
loan nr reexati Innsg o f 8 u c h lien> t h e Person making such
e i
ther^n
on of credit (or extension or renewal
know? i g eo rof,acciuiringreasuch lien shall have actual
facts bv
such i a o r ext
son of which the making of
? Jt
ension of credit (or extension or
thereof) or the acquisition of such lien is a
253
FEDERAL RESERVE BULLETIN
violation of the provisions of this title or any rule or
regulation thereunder, or (2) to afford a defense to the
collection of any debt or obligation or the enforcement
of any lien by any person who shall have acquired such
debt, obligation, or lien in good faith for value and
without actual knowledge of the violation of any provision of this title or any rule or regulation thereunder
affecting the legality of such debt, obligation, or lien.
Sec. 32. Any person who willfully violates any provision of this title, or any rule or regulation thereunder
the violation of which is made unlawful or the observance of which is required under the terms of this title,
or any person who willfully and knowingly makes, or
causes to be made, any statement in any application,
report, or document required to be filed under this
title or any rule or regulation thereunder, which statement was false or misleading with respect to any
material fact, shall upon conviction be fined not more
than $10,000, or imprisoned not more than two years,
or both, except that when such person is an exchange,
a fine not exceeding $500,000 may be imposed; but
no person shall be subject to imprisonment under this
section for the violation of any rule or regulation if he
proves that he had no knowledge of such rule or
regulation.
SUPPLEMENT TO REGULATION U
(Issued by the Board of Governors of the Federal Reserve System.
Effective May 1,1936)
For the purpose of section 1 of Regulation U, the
maximum loan value of any stock, whether or not
registered on a national securities exchange, shall be
45 percent of its current market value, as determined
by any reasonable method.
Loans to brokers and dealers.—Not withstanding
the foregoing, a stock, if registered on a national
securities exchange, shall have a special maximum loan
value of 60 percent of its current market value, as
determined by any reasonable method, in the case of
a loan to a broker or dealer from whom the bank accepts
in good faith a signed statement to the effect (1) that
he is subject to the provisions of Regulation T (or that
he does not extend or maintain credit to or for customers except in accordance therewith as if he were
subject thereto), and (2) that the securities hypothecated to secure the loan are securities carried for the
account of his customers other than his partners.
SUPPLEMENT TO REGULATION T
(Effective April 1,1936)
MAXIMUM LOAN VALUES OF REGISTERED SECURITIES (OTHER THAN EXEMPTED SECURITIES) FOR PURPOSES OF REGULATION T*
Pursuant to the provisions of section 7 of the
Securities Exchange Act of 1934 and section 3 of its
Regulation T, as amended, the Board of Governors of
the Federal Reserve System hereby prescribes the
following maximum loan values of registered securities
254
FEDERAL RESERVE BULLETIN
(other than exempted securities) for the purposes of
Regulation T:
(1) General rule.—Except as provided in paragraphs
(2) and (3) of this supplement, the maximum loan
value of a registered security (other than an exempted
security) shall be 45 percent of the current market
value of the security.
(2) Extension of credit to other members, brokers
and dealers.—The maximum loan value of a registered
security (other than an exempted security) in a special
account with another member, broker or dealer, which
special account complies with subsection (b) of section
3 of Regulation T, as amended, shall be 60 percent of
the current market value of the security.
(3) Extension of credit to distributors, syndicates,
etc.—The maximum loan value of a registered security
(other than an exempted security) in a special account
with a distributor, syndicate, etc., which special
account complies with subsection (c) of section 3 of
Regulation T, as amended, shall be 80 percent of the
current market value of the security.
Regulation of Federal Open Market Committee.
Section 12A of the Federal Reserve Act as it
existed prior to March 1, 1936, provided for
regulations of the Board of Governors of the
Federal Reserve System relating to openmarket operations of the Federal Reserve
banks, but under the law as amended effective
March 1, 1936, the authority of the Board to
issue such regulations is eliminated and regulations on tins subject are prescribed by the
Federal Open Market Committee. Accordingly, the Board's Regulation M relating to
open-market operations of the Federal Reserve
banks automatically became ineffective at the
close of business February 29, 1936.
Pursuant to the provisions of section 12A of
the Federal Reserve Act as amended, the Federal Open Market Committee on March 19,
1936, adopted a regulation relating to openmarket operations of the Federal Reserve
banks, to become effective immediately, and
the text of this regulation is published below.
A P R I L 1936
The Federal Open Market Committee expressly
reserves the right to alter, amend, or repeal this regulation in whole or in part at any time.
SECTION 2. DEFINITIONS
(a) Government securities.—The term "Government securities" shall include bonds, notes, certificates
of indebtedness, Treasury bills, and other obligations
of the United States, including obligations fully
guaranteed as to principal and interest by the United
States.
(6) Obligations,—The term "obligations" shall include all bankers' acceptances, bills of exchange,
cable transfers, bonds, notes, warrants, debentures,
and other obligations, including Government securities,
which Federal Reserve banks are authorized by law
to purchase in the open market.
(c) System open market account.—The term "system open market account" applies to Government securities and other obligations heretofore or hereafter
purchased in accordance with open market policies
adopted by the Committee and held for the account
of the Federal Reserve banks.
(d) Committee.—The term "Committee" shall mean
the Federal Open Market Committee.
(e) Executive committee,—The term "Executive
Committee" shall mean the executive committee of
the Federal Open Market Committee.
SECTION 3. GOVEKNING PRINCIPLES
By the terms of section 12A of the Federal Reserve
Act, as amended, the time, character, and volume of
all purchases and sales in the open market by Federal
Reserve banks 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.
SECTION 4. FEDERAL OPEN MARKET COMMITTEE
(a) Functions.—The Committee shall consider the
needs of commerce, industry, and agriculture, the
general credit situation of the country, and other
matters having a bearing thereon and consider, adopt,
and transmit to the several Federal Reserve banks,
regulations and directions with respect to the openmarket operations of such banks under section 14 of the
REGULATION OF FEDERAL OPEN MARKET Federal Reserve Act.
(6) Participation in System open-market account.—
COMMITTEE
The Committee from time to time shall determine the
(Adopted March 19,1936)
principles which shall govern the allocation among the
several Federal Reserve banks of Government securities
OPEN MARKET OPERATIONS
and other obligations held in the System open-market
SECTION I
account, with a view to meeting the changing needs of
Pursuant to the authority conferred upon it by the Federal Reserve banks.
section 12A of the Federal Reserve Act, as amended,
SECTION 5. EXECUTIVE COMMITTEE
the Federal Open Market Committee prescribes the
following regulations relating to the open-market
(a) Organization.—The Committee, at its first meettransactions of the Federal Reserve bankB.
ing after March 1 in each calendar year, shall select
FEDERAL RESERVE BULLETIN
AFBIL 1936
from its own members an executive committee consisting of five members.
(6) Functions.—It shall be the duty of the executive
committee:
(1) To direct the execution of transactions in
the open market in accordance with the openmarket policies adopted by the Federal Open
Market Committee;
(2) To allocate the Government securities and
other obligations held in the System open-market
account among the several Federal Reserve banks
in accordance with the principles determined by
the Federal Open Market Committee;
(3) To keep the members of the Federal Open
Market Committee informed of all transactions
executed under the direction of the Federal Open
Market Committee and of all allocations and
reallocations of Government securities and other
obligations held in the System open-market
account; and
(4) To perform such other functions and duties
in connection with open-market operations as may
be assigned to it from time to time by the Federal
Open Market Committee.
SECTION 6. CONDUCT OF OPEN-MARKET OPERATIONS
Each Federal Reserve bank shall engage in openmarket operations under section 14 of the Federal
Reserve Act only in accordance with this regulation
and the directions issued by the Committee from time
to time,^ and no Federal Reserve bank shall decline to
engage in open-market operations as directed by the
Committee.
Transactions for the System open-market account
shall be executed by a Federal Reserve bank selected
by the Committee. Each Federal Reserve bank shall
Biake available to the Federal Reserve bank selected
b
y the Committee such funds as may be necessary to
conduct and effectuate such transactions.
SECTION 7.
PURCHASES AND SALES OP GOVERNMENT
SECURITIES
No Federal Reserve bank shall purchase or sell
Government securities except pursuant to authority
255
granted by the Committee or in accordance with an
open-market policy adopted by the Committee and in
effect at the time.
The Committee reserves the right, in its discretion,
to require the sale of any Government securities now
held or hereafter purchased by an individual Federal
Reserve bank or to require that such securities be transferred into the System open-market account in accordance with such directions as the Committee may make.
SECTION 8. OTHEB OPEN-MARKET OPERATIONS
Subject to directions of the Committee and the
following conditions, each Federal Reserve bank may
engage in open-market operations other than the purchase or sale of Government securities:
(1) All such transactions shall be reported daily
to the secretary of the Committee on the day they
take place.
(2) Only acceptances and bills of exchange
which are of the kinds made eligible for purchase
under the provisions of Regulation B of the Board
of Governors of the Federal Reserve System may
be purchased and the rates of discount shall be
established in accordance with the provisions of
section 14 (d) of the Federal Reserve Act: Provided,
further1 That no obligations payable in foreign currency shall be purchased except in accordance with
directions of the Committee.
(3) Only bills, notes, revenue bonds, and warrants of States, counties, districts, political subdivisions or municipalities which are of the kinds
made eligible for purchase under the provisions of
Regulation E of the Board of Governors of the
Federal Reserve System may be purchased.
(4) No Federal Reserve bank shall engage in the
purchase or sale of cable transfers for its own account except in accordance with the directions of
the Committee: Provided, That Federal Reserve
banks may purchase and sell cable transfers
through the Habana agency in accordance with
the resolutions or regulations of the Board of Governors of the Federal Reserve System governing the
operations of such agency.
256
FEDERAL RESERVE BULLETIN
APEIL 1936
ANNUAL REPORT OF THE BANK OF CANADA
The first annual report of the Bank of Canada
for the period from the date of its opening on
March 11, 1935, to December 31, 1935, was
submitted to the general meeting of shareholders by Mr* Graham F. Towers, president
of the bank, on February 25, 1936. Sections
of the report are given herewith:1
The Bank of Canada opened its doors for
business on March 11 last. On the date of
opening we assumed responsibility for the redemption of all Dominion notes issued and outstanding. To cover that liability, which then
amounted to $185,455,439, the Dominion Government transferred to the Bank the following
assets:
(a) Gold, valued at
$69,455,439
(6) Silver, valued at
986,363
(c) Dominion of Canada 3 percent bonds
maturing 1940 of a par value of
115, 013, 637
Total
185, 455, 439
From November 1932 until March 11 last
the chartered banks had, by arrangement,
borrowed under the Finance Act a minimum
amount of approximately $35,000,000, and at
the initiation of the transaction had purchased
from the Dominion Government Treasury bills
for approximately the same amount. The
Bank of Canada Act provided that on the day
on 'which the bank was authorized to commence
business the chartered banks should repay all
advances then outstanding under the Finance
Act. Such repayment resulted in the cancellation of an equal amount of Dominion notes and
would have involved a similar reduction in the
cash reserves of the chartered banks, if no offsetting action had been taken. We considered
it wise to offset this reduction and did so by
purchasing $35,000,000 of Treasury bills from
the Dominion Government. The Government
used the proceeds of this sale of securities to
redeem Treasury bills held by the banks, with
the result that their cash reserves were unchanged.
Note issues.—When we commenced business, the amount of notes in public hands was
$42,440,981. The total has increased $16,738,283 between that time and the end of the year.
The increase is partly seasonal in character,
partly due to the retirement of chartered bank
notes from circulation in anticipation of the
$7,275,000 decrease in the banks7 issuing power
1
In addition, the report contains sections dealing with significant movements in some of the bank's assets and liabilities, profit and loss account, cooperation of the chartered banks, and personnel.
on January 1,1936, and partly due, I think, to
a greater than seasonal activity in business.
When additional notes are required by the
public, they are obtained by withdrawals from
the public's accounts with the chartered banks.
The banks pay out Bank of Canada notes to
the extent that the demand is for $1 and $2
denominations, or if their own note issues are
approaching the authorized limit. Thus an increase in the active circulation of Bank of
Canada notes serves to reduce the chartered
banks* cash reserves, if no offsetting action is
taken by the central bank. Such action was
taken last year and is reflected in the enlargement of our holdings of Government securities
during the latter part of 1935.
Functions of a central bank.—The functions
of a central bank are well set forth in the report
of the Royal Commission on Banking and Currency in Canada. The chief functions are to
endeavor to regulate the volume of credit; to
defend the external value of the national monetary unit; to be a ready source of skilled and
impartial advice at the disposal of the Government (in the case of Canada, the Dominion
and Provincial Governments); and to afford
timely cooperation with the central banks of
other countries. I propose to say a few words
on each of these functions.
Influence on credit.—A central bank's influence on the volume of credit arises from its
power to affect the volume of commercial
banks' cash reserves. When a country is not
on the gold standard, the central bank can do
more than affect the commercial banks' casn
reserves; it determines them. If the central
bank increases its assets, by buying gold or
securities or making advances, such action \vm
be reflected by an increase in its deposit liabilities. For the most part, in our case, these
deposit liabilities are the balances which tne
chartered banks keep with the Bank of Canada
as a part of their cash reserves. An expansion
of cash reserves tends to produce an increase
in the commercial banks' loans and investments; a contraction of reserves tends to pr°~
duce a curtailment of these assets.
. .
A policy of cheap and abundant money is «w
orthodox contribution of a banking system
towards recovery from a depression. Sucn a
policy undoubtedly contributes, firstly, to
relaxation of the pressure to liquidate ana,
secondly, to a recovery of business and to tn
reestablishment of Government finances, www
AFRIL 1936
FEDERAL BESERVE BULLETIN
are sure to be adversely affected at such times
through relief expenditures and other unavoidable commitments; but if the policy is pursued
too far the situation may become unmanageable when a revival develops.
In Canada, the present high price level of
gilt edged bonds is an indication of the pressure
of money looking for employment. The chartered banks' cash reserves on December 31 last
were slightly larger than on December 31,1929;
their deposits at the end of 1935 were less than
2 percent smaller than deposits on the same
date in 1929. If we recall that December 1929
was the closing month of a year of exceptionally
active business, this comparison of figures will
serve to remind us that the volume of money is
not the cardinal factor which determines the
volume of business. The vital matter is not
the amount of money in existence; it is the size
of people's incomes, in other words, the size of
the national income. This can grow, and does
grow, without any definite connection between
such growth and a growth in bank deposits or
note circulation. An increased turnover of
existing monetary supplies takes place as prosperity returns, and the total amount of money
may be less then than during a depression.
Bank rate.—Our bank rate was established
at 2% percent and remains unchanged. The
figure is the same as that which was being
charged for advances under the Finance Act,
prior to the establishment of the Bank of
Canada, and it remains the charge which we
would ordinarily make to the banks for advances. It is quite out of touch with Treasury
bill rates, but this fact is not at present of any
particular significance. When money is in
plentiful supply the need for loans or rediscount
facilities seldom arises. It is in times of
greater stringency that accommodation from
the central bank is essential. A central bank
Biust be what is known as the lender of last
resort, which implies that in times of real need
its rediscounting and lending facilities will be
freely accorded.
Treasury bill market.—It is universally
recognized that a central bank is hampered in
its operations where an active bill market does
not exist. Few countries, however, have the
Dm market they would like. Under present
COn
<htions a fairly satisfactory market can be
established, if there is a sufficient volume of
ireasury bills, if there is a good institutional
attribution of these, and, in particular, if it is
wie commercial banks' policy to hold Treasury
D
H»s as their secondary reserve. The mere
Tistence of a central bank at once widens and
strengthens the market for first-class bills, since
257
the central bank itself will be a large holder
and will engage in purchases and sales in pursuance of its open market policy, and for other
reasons. In so doing, it is likely to have the
effect of steadying the rate. The Bank of
Canada can, I feel, claim that it has been of
assistance in both these respects.
In times past, New York call loans and
bankers' acceptances were, to a large extent,
regarded as the secondary reserve of Canadian
banks. Fluctuating exchange rates have practically ruled out these items as a means of employment of that portion of a bank's Canadian
assets which need not be kept in cash, but
which must be convertible into cash, in large
volume and without sacrifice, at a moment's
notice. Canada has been lacking in facilities
of this kind. I hope the deficiency will be
remedied. Treasury bills can be made to play
an increasingly important part in our banking
life, if further experience and a further widening
of the market demonstrate—as I believe they
will—the utility of this form of temporary
investment. One should not think of such
bills as being merely a means of cheap governmental financing, and nothing more.
Gold holdings.—The largest item on the asset
side of our balance sheet is gold, valued at
$180,509,342. When we commenced operations we acquired gold to the value of $160,584,355, of which $69,455,439 came from the
Dominion Government and $37,128,916 from
the chartered banks. Settlement for this gold
was effected on the basis of the statutory value
of $20.67 an ounce. Subsequently, the Exchange Fund Act required us to value the gold
at the current market price. The resultant
profit of about $73,500,000 did not accrue to
the Bank of Canada. Section 30 of the Bank
of Canada Act had provided that any profits on
gold transferred to the bank would pertain to
the Dominion Government, but it gave the
Governor-in-Council power to allow the chartered banks to receive the profit on gold transferred by them, to the extent that such gold
was deemed to have been held against liabilities elsewhere than in Canada. The Governorin-Council determined that 40 pel-cent of the
banks' gold had been so held, and as a result
the chartered banks received $10,475,114.
The balance of the profit, namely, $63,006,382,
was credited to the exchange fund of the Dominion Government, and future profits or losses
on gold held by us will be credited or debited
to that account.
It should be noted that the valuation at
which gold is entered on our balance sheet
represents the amount which should be obtained
258
FEDERAL RESERVE BULLETIN
in Canada if the gold were to be shipped to
London or New York on the date of the statement. In other words, we apply the realizable
value instead of an arbitrary one, and are not
restricted to the price prevailing in any one
particular market.
The exchange rate.—As you know, the
Canadian dollar, like many other currencies, is
at present off gold and unstabilized. In these
circumstances the Bank of Canada has no specific obligation imposed upon it by the Government. Nevertheless, over a long term,
credit policy must necessarily affect the external value of a monetary unit. As the Royal
Commission's report says:
Control over the external value of the monetary unit
is * * * a logical outcome of that of credit regulation. Whatever additional influences may affect the
level of the exchanges, such as short-term capital movements, external borrowings and indebtedness, and the
income from overseas investments, the long-term factor
of decisive importance is the credit structure of the
country * * *.
The Canadian dollar has exhibited a remarkable tendency, when not at parity with the pound
or United States dollar, to take up an intermediate position. Obviously, in the long run, the purchasing power of our dollar must approximate
that of the United States dollar and the pound
sterling, or there would be a marked divergence
in exchange rates. From the point of view of
short-term movements, it is probable that the
large volume of United States and United
Kingdom investments in Canada, and the
existence of so many Canadian bonds payable
in two or three currencies—a feature of our
financial economy which is not found to an
important degree in any other country—have
had a tendency to restrict fluctuations in our
exchange rate. A discount on the Canadian
dollar m the United States encourages purchases of Canadian securities; a premium encourages selling; and the situation vis-^-vis
the United Kingdom is the same. One must
add to this statement by pointing out that
relative price levels in the security markets of
the three countries^and the degree of confidence
in our position, are important factors in security
transactions. 1 do not suggest that bonds
payable in two or more currencies are desirable.
On the contrary, they are often most embarrassing obligations from the borrower's point
of view. The extent to which Canadian borrowers incur foreign obligations and later discharge them, and the manner in which such
commitments are taken, are matters of public
interest affecting our balance of payments and
the exchange value of the Canadian dollar.
APRIL
1936
The situation is one which cannot fail to involve
close attention on the part of the central bank.
Advisory functions.—On the subject of our
functions as a source of impartial advice, I do
not propose to say much. It would be presumptuous to suggest that so inexperienced a
central bank could at once be of full value in
this respect. Nevertheless, we have every inducement to be impartial. Advice must often,
perhaps usually, be the chief form of assistance
which we can render to the Governments of Canada, inasmuch as our necessary concern for the
cash basis does not permit us to make large advances of a kind which we cannot offset if that
policy were requisite. It should not be inferred, however, that we are unable to furnish
temporary accommodation at appropriate times.
During the year our statements have shown
that advances were made to the Dominion
Government on various occasions, the largest
having been made in October and November in
anticipation of new financing.
Central bank cooperation.—The desirability
of increased cooperation between central banks
has been much discussed for a number of years,
and has been stressed at various international
conferences. There is much that can be done in
the way of interchange of information. Business conditions in a country's main markets
have an important bearing on domestic trade.
A central bank which contented itself with a
knowledge of home affairs, and turned a blind
eye to developments elsewhere, would not be
fulfilling its duty to its own people. The central banks of other countries constitute an excellent source of information. They can often provide facts rather than surmises. Cooperation
along these lines is therefore extremely helpful,
and can be developed by arrangement between
central banks. Obviously, cooperation on any
matter of high policy must be dictated or conditioned by the views of the governments of the
countries concerned. While I am on this subject, I might mention that one of the Empire
central banks, namely, the Bank of England, is
supposed by some persons to exercise a universal and malign influence in financial matters the
world over. I should like to say that, in my
opinion, this is just nonsense, and that in any
case one can safely rely upon the central banks
and governments of the respective Dominions
to see that no undue or pernicious influence is
exerted. In these unsettled times, the real
problems of central banks are grave enough m
all conscience. It would be regrettable if the
burden were increased by the addition of
imaginary complications.
259
FEDERAL RESERVE BULLETIN
APRIL 1936
Cooperation is usually a question of common
sense, whether it takes place in the realm of
trade or finance. In all the criticism of the
existing order which we hear today—and I am
not a reactionary in this respect—I think that
too little weight is given to the fact that the
world's business structure has apparently survived a period during which international common sense has been conspicuous by its absence.
The structure must possess great inherent
strength. In a world designed to live and
prosper by the interchange of commodities and
services, almost every possible effort has been
made to hamper or prohibit such interchange.
Few countries are more dependent than Canada
upon international trade. In our own interest
we must welcome and encourage any loosening
of the shackles which have been placed on
world business during the years since the war.
I hope that the recovery in world trade, of
which there is now evidence, can be stimulated
by appropriate measures of international cooperation between governments.
BALANCE SHEET OF THE BANK OF CANADA AS OF DEC. 31,
1935
[In thousands of dollars]
ASSETS
Reserve—at market values:
Gold coin and bullion.
Silver bullion
.
Sterling funds
United States of America funds
Funds of other countries on a gold standard
Subsidiary coin
Advances to Dominion Government
Investments—at not exceeding market values:
Dominion Government short-term securities
Other Dominion Government securitiesBank premises (furnishings and equipment) at cost
less amounts written off
Other assets
Total assets
$180,509
1,638
219
4,004
9
$30,873
83,410
...„
^Authorized
Issued and paid up
Rest fund
Notes in circulation
$186,380
129
3,466
114,283
112
3,286
307.655
Dominion Government
Chartered banks
Otherbanks
Dividend declared-payable Jan. 2,1936
Other liabilities
Total liabilities
$5.000
—-
$5,000
173
99.677
f 18 »?S
181
»JS5
™
-
m665
U3
*><&?
307,655
260
FEDERAL RESERVE BULLETIN
A P R I L 1936
ANNUAL REPORT OF THE NATIONAL BANK OF BELGIUM
The annual report of the National Bank of
Belgium for the year ended December 25,1935,
was submitted by the governor of the bank,
M. Louis Franck, to the general meeting of
shareholders on February 24, 1936. Sections
of the report are given herewith: 1
Improvement of the world economic situation began to be apparent in 1934 and was more
marked during the past year. But this recovery was not general in character. It was
most apparent in the United States, South
America, and England, whereas in Europe
many countries continued to suffer from business inactivity and other handicaps resulting
from unbalanced budgets, monetary disturbances, restriction and control of foreign exchanges, and, in addition, from political uncertainty. The same thing is true in the Far
East, where serious disturbances resulted from
measures taken by the United States to revalorize silver, and China was forced to reorganize her monetary system.
Devaluation of the belga.—In Belgium 1935
will stand out as one of the most difficult postwar years in the banking and financial history
of the country. The gold parity of the belga
was reduced by 28 percent 2 by the law of
March 30, 1935, and the Royal decree of
March 31 issued under the law.3 The causes
and the circumstances of devaluation were
explained by the governor of the bank to a
general meeting of shareholders on August
26. In accordance with the advice of the
National Bank, the currency was again immediately linked to gold at the rate of 0.150632
gram of fine gold for 1 belga. Relations
between the Government and the bank as
affected by devaluation were regulated by the
convention of April 4,1935,4submitted to the general meeting of shareholders on August 26,1935.
As the Government has emphasized on a
number of occasions, devaluation of the currency—even though it makes certain adjustments possible—cannot do away with the need,
in drawing up both ordinary and extraordinary
budgets, of observing the principles of moderation and economy on which depend the equilibrium of Government finance, the credit of the
State, and finally, the prosperity of the country.
Past mistakes will have taught nothing,
sacrifices will have been to no avail, unless the
State in future rigorously proportions its
expenditures to the resources of the nation
instead of burdening it with ever larger outlays
by the Public Treasury or with unduly large
Government borrowing.
Foreign exchange market.—In April, once
devaluation had been accomplished, the direction of capital movements was reversed, and a
considerable inflow of gold more than offset
the losses previously sustained by the metallic
reserve. Foreign capital sought refuge in this
coxintry. We are in a position to assure the
return of these funds at any time to their
country of origin.
The influx of capital into Belgium was intensified by the attacks made on several occasions against the French franc and the Netherlands florin—attacks which these currencies
were able to resist successfully.
The position of the Belgian banks and of
foreign banks located in Belgium, from the
point of view of their foreign balances or their
obligations in foreign markets, ife well known to
the National Bank through the bimonthly
reports made to us by these institutions.
Figures shown in the reports indicate that the
banks are thoroughly alive to the special situation created for Belgium by the existence of
foreign funds which have sought temporary
refuge here. No difficulty, therefore, need be
anticipated from this source.
Credit policy.—At the beginning of the year
our discount rate stood at 2){ percent. At the
time of the crisis in March we thought it unwise
to raise the rate, considering the technical
position of our banking system and the special
character of the capital outflow. With devaluation an accomplished fact, we reduced the discount rate on May 15 to 2 percent at the urgent
request of the Government. This measure had
but little effect. It is true, of course, that dear
money conditions prevailed more generally in
the capital market than in the short-term
money market. In case of need, however, we
did not hesitate to intervene in the short-term
market within the limits proper for a central
bank, through the medium of direct discounting.
But the demand upon the bank for credit
continued to be relatively small.
The 90-day trade bill has long been one of the
chief means of granting short-term credit. Un1
The report, available in French, contains in addition sections dealing
with clearing agreements, price indexes, trade movements, industrial fortunately a number of circumstances have
production, operations of the bank in detail, together with a number of arisen to modify this procedure and, to a great
tables.
* Provisional reduction, made definitive by royal decree effective Apr extent, the creation of commercial paper has
1,1936. See p. 219.
been replaced by the demand for advances in
i See BULLETIN for May 1935, p. 291.
« See BULLETIN fnr June 1935, p. 378.
, current account.
The undoubted danger ol
APRIL 1930
FEDERAL RESERVE BULLETIN
such practice becomes apparent in time of
crisis. The advance in current account then
becomes an unrealizable credit, and banks
should not lose sight of the risk involved.
In order to guard against this risk to some
extent, the Government promoted the establishment of a special institution, capitalized at
200 million Belgian francs, and having the
guaranty of the Government for its liabilities up
to an amount of 2 billion francs; its primary
function will be to make possible the final
liquidation of advances in current account which
had been granted by the banks. The National
Bank will cooperate with this new organization.
But the National Bank cannot too strongly
urge industrialists and merchants to make
wider use of commercial paper. In order to
accommodate interested persons,,the National
Bank has indicated its willingness to favor the
use of acceptance credits in the domestic
market-^a practice hitherto current only in the
international market. It is imperative that
the acceptance market should be broadened if
short-term money rates are to be lowered.
On the other hand, Parliament gave the
banks a special statute, based on the provisions
of the decree law of July 9, 1935.3 Depositors
and the general public will find far-reaching
guaranties in this legislation. The execution of
the provisions of this legislation devolves upon
the Banking Commission, with which the
National Bank is constantly in touch.
Payment on the debt to the State.—By applying part of the profit accruing from revaluation of the gold reserve, and by withdrawing
from circulation its 50-franc notes, the Treasury reduced its indebtedness to the bank to 500
million francs. This balance must be liquidated in 1952, when the current note issue
privilege of the National Bank expires.
Security market.—The stock market was
completely inactive at the beginning of the year,
but under the adverse influence of the general
situation it began to weaken again toward the
end of February. About the middle of March,
under gpressure of buying by groups who were
S e
/ ii
^vestment in real values (valeurs
reelles),f prices strengthened slightly. Early in
rV i! a t e r .several sessions of rising prices in
which offerings were scarce, the process of
^adjustment began and by the beginning of
261
level had been registered. A period of weakness followed during the summer months, while
the number of transactions declined considerably. In October, however, recovery began
again, and the index for December was 37, as
compared with 27 in December of last year.
In the bond market there was considerable
selling and a decline in bond quotations as soon
as doubts regarding the maintenance of the
gold parity adopted in 1926 began to take
definite form. But upon the reopening of the
stock markets, which were closed for only 3
days, there was a noticeable improvement.
The principal event in the Government
security market was the conversion and unification in May of 25 billion francs of the Belgian
debt to a nominal rate of 4 percent. The operation was entirely successful. Aside from the
advantages for the Treasury of a considerable
reduction of interest charges on its loans, the
market for rentes will in future be much larger.
Various measures taken by the Government
and, in particular, a special allocation from the
public debt amortization fund helped to attain
this result. In pursuance of its policy of
reducing money rates, the Government took
further steps toward the close of the year for
the conversion of the issues of the Municipal
Credit Institute and of loans of the provinces
and communes on which the rate was in excess
of 4% percent, as well as for the conversion of
the colonial debt.
As a result of all these measures, the Government hoped to create conditions in the capital
market which would ease the present burden of
indebtedness of private debtors, and industrial
enterprises in particular, whose debts were
contracted at a high rate of interest. It is also
hoped to make it easier for borrowers to obtain
new capital. It should be noted that, even
though the capital market is still somewhat
straitened, liquid funds in the money market
continue to be very abundant and are practically without employment.
Economic activity.—On the whole, the year
1935 marks the checking of the depression, and
the point of departure for a period of recovery.
The new equilibrium of prices resulting from
devaluation has helped to remove the great
disparity between domestic and foreign prices,
which efforts toward deflation and internal
June a consifWnhlA ndvannA OVAT the lowest reorganization had already reduced. The Government has not hesitated to increase its import
ines the legal status and capital requirements of banJcs, quotas and to decrease its customs duties when
nn conditions governing their operations and managees a commission of control, and sets up regulations for this was necessary to check the advance of
262
FEDERAL RESERVE BULLETIN
prices in the domestic market. It must not be
supposed, however, that this one achievement
is enough to restore complete prosperity to the
country. Further efforts to win new markets
and to become adjusted to new conditions are
APBIL 1936
still required. Our industrial structure is organized on an exporting basis, so that the
country's prosperity depends largely on the
possibilities of finding an outlet for our manufactures in foreign markets.
BALANCE SHEET OP THE NATIONAL BANK OF BELGIUM AS OF D E C . 25, 1935
AND
1934
[In thousands of francs]
1935
1935
ASSETS
17,285,784
Gold reserve
329,945
Subsidiary coin
6,531,526
Belgian and foreign bills
Advances on Belgian public securities
437,084
Bonds, annuities, and other securities of the
Belgian Treasury (laws of Dec. 27,1930, and
July 19, 1932)
798,981
Public securities
199,879
Public securities in the surplus account of the
bank
96,541
Public securities in amortization account for
bank premises, furniture, and fixtures
59,628
Bills deposited for collection in current account69,286
Bank premises
156,123
Furniture and fixtures
4,772
Provision for the manufacture of bank notes
1,713
Interest earned or receivable
19,480
Assets held in pledge or to be liquidated (art. 34
of the statutes)
3,016
Total assets
25,993,758
1934
21,975,744
1,338,430
18,920,006
1,3
> 20,637,313
17,591,225
341,793
4,554,894
165,247
949,357
1934
LIABILITIES
12,623,327
426,753
3,335,658
677,651
1,699,257
94,213
Bank notes
Issued
Held by the bank
In circulation
Current accounts
Treasury.
Private
1,114,604
4,896,687
s
83,073
154,960
4,772
2,054
15,625
3,051
19,179,938
Bills deposited for collection in current accountCapital
Surplus
Amortization account for bank premises, furniture, and fixtures
Interest and rediscount
._
Taxes payable to the Government
Tax on fiduciary circulation
Share of the Government in profits (art. 38
of the statutes)
Unpaid dividends for second half year.
Total liabilities
=
-i
200,000
,97,732
83,073
200,000
95,414
59,702
2,316
59,702
7,425
14,985
5,842
9,894
25,993,758
12/758
.
5,842
19,179,938
APK1L 1936
FEDERAL RESERVE BULLETIN
263
NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled Mar. 25 and released for publication Mar. 27]
Volume of industrial production and employment showed little change in February,
and the index of production, which makes allowance for seasonal changes, declined from
98 to 95 percent of the 1923-25 average.
Distribution of commodities continued at about
the January level.
Production and employment.—Daily average
output in basic industries was in about the
same volume in February as in January.
Since usually there is an increase in manufacturing activity at this season, the Board's
seasonally adjusted index of factory output
showed a decline. Output at mines increased.
There was a substantial further decrease in
automobile production in February, and the
rate of operations at steel mills increased by
less than the usual seasonal amount. In the
first half of March production of steel expanded
seasonally and output of automobiles showed a
more than seasonal increase. There was little
change in the volume of lumber cut in February, although an increase usually occurs in
that month. At woolen mills production increased by about the seasonal amount, while
activity at cotton textile mills, which is usually
larger m February than in January, decreased,
and at silk mills there was a larger than seasonal
decline. Output at meat-packing establishments also declined. There was a substantial
increase in the mining of both anthracite and
bituminous coal, while output of crude petroleum declined somewhat.
Factory employment increased by less than
tne usual seasonal amount between the middle
of January and the middle of February. There
was little change in the number of workers at
steel mills and a decrease in the number emPioyed at automobile factories, although increases are usual in these industries in February.
. aent declined at silk and rayon textile
FUs and showed a smaller than seasonal
crease at shoe factories. Increases in emPayment were reported for railroad repair
j™ps, for printing and publishing establisho
nn iS' *T?^c*o ir * act °ries producing wearing apa t
W r m * h e 7 pay rolls, which are usually
• t
3
,
^ d d l e of February than a month
earlier, showed no change.
Ane value of construction contracts awarded,
? ^Ported by the F. W. Dodge Corporation,
further in February. Awards for
u construction showed little change,
tnere was a decrease in the value of awards
for all other contracts, a large part of which
are for public projects.
Distribution.—Department store sales showed
little change from January to February and,
after allowance for seasonal variation, were at
about the same level as that prevailing last
summer and autumn. Freight-car loadings
increased by a small seasonal amount in
February. Loadings of coal were considerably
larger than in January, while shipments of
miscellaneous freight declined, and the Board's
seasonally adjusted index of total loadings
remained at the January figure of 70 percent
of the 1923-25 average as compared with 71
percent in December and an average of 63
percent for 1935.
Commodity prices.—The general level of
wholesale commodity prices declined somewhat
during the latter part of February and the
first half of March, following a 6-month
period of little change. The recent downward movement reflected declines in prices of
farm products and foods.
Bank credit.—Excess reserves of member
banks decreased by $650,000,000 during the
4 weeks ending March 18 and on that date
amounted to $2,400,000,000. This decrease
reflected chiefly a transfer of funds to Treasury
deposits at the Reserve banks in connection
with receipt of income taxes and of cash payments for newly-issued Government securities.
Loans and investments of reporting member banks in leading cities increased rapidly in
March and on the 18th of the month were
$525,000,000 higher than 4 weeks earlier. Of
this increase $190,000,000 represented a growth
in holdings of direct and guaranteed obligations
of the United States Government and $80,000,000 an increase in other investments. Security
loans both to brokers and dealers and to others
increased, and there was a substantial growth
in so-called "other loans," which include loans
for commercial purposes.
Adjusted demand deposits of reporting member banks declined by $340,000,000 during the
4 weeks ending March 18. Balances held for
domestic banks increased at the turn of the
month as banks in the interior sold Government securities in New York in anticipation of
maturities. During the week ending March
18 balances declined, partly as the result of
banks throughout the country purchasing in
the New York market Government securities
issued on March 16.
264
FEDERAL RESERVE BULLETIN
APEIL 1936
MEMBER BANK RESERVES AND RELATED ITEMS
BILLIONS OF DOLLARS
,
u
,
.
.
BlLL!0NS 0 F
„
D0UARS
( Wednesday figures
MEMBER BANK
RESERVE BALANCES
TREASURY CASH AND
DEPOSITS WITH F.R.BANKS
1930
BILLIONS OF DOLLARS
1931
1933
1934
1935
MEMBER BANK RESERVE BALANCES
7
J932
1936
BILLIONS OF DOLLARS
- ( Wednesday figures*
1931
1932
1933.
7
1934
1935
Based on Wednesday figures; latest figures for March 25. See table on page 265.
1936
265
FEDERAL RESERVE BULLETIN
APRIL 1936
MEMBER BANK RESERVES AND RESERVE BANK CREDIT
MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS
WEDNESDAY FIGURES
[In millions of dollars]
Reserve bank credit outstanding
Date (Wednesday)
U.S.
GovOther
Bills
Bills
erndis- bought ment Reserve] Total
bank
counted
securi- credit
ties
Monetary
gold
stock
Member bank
reserve balances
Treasury
TreasOther
ury
Money cash and Nondeposits mem- Fedand
eral
with
nation- in circula- Federal ber de- Reserve
Excess
|al-bank
posits
action
Reserve
(esticurcounts Total mated)
banks
rency
1935-Mar. 6
Mar. 13-—
Mar. 2 0 . . . .
Mar. 27....
2,430
2,430
2,430
2,430
2,452
2,460
2,455
2,452
8,546
8,551
8,554
8,563
2,517
2,525
2,521
2,535
5,478
5,454
5,453
5,436
2,998
3,009
3,220
3,335
237
238
243
241
246
247
254
253
4,555
4,588
4,361
4,285
2,185
2,191
1,950
1,888
Apr, 3
Apr. 10
Apr. 1 7 . . . .
Apr, 24
2,431
2,430
2,431
2,430
2,462
2,463
2,470
2,452
8,568
8,614
8,672
8,701
2,548
2,549
2,549
2,650
5,497
5,487
5,512
5,459
3,404
3,376
3,149
2,978
230
224
271
253
253
257
258
4,193
4,237
4,501
4,719
1,821
1,907
2,095
2,264
Mayl
May 8
May 15
May 2 2 . . . .
May 29
2,430
2,430
2,430
2,430
2,430
2,463
2,466
2,473
2,459
2,467
8,721
2,543
2,536
2,534
2,531
2,526
5,489
5,496
5,494
5,481
5,511
2,978
2,938
2,901
2,906
2,970
276
277
267
285
262
263
261
259
259
258
4,721
4,758
4,322
4,821
4,827
2,252
2,304
2,350
2,328
2,322
June 5
June 12
June 19
June 26
2,430
2,430
2,430
2,430
2,475
2,472
2,482
2,472
8,916
9,016
9,109
2,521
2,514
2,510
2,508
5,514
5,493
5,498
5,498
2,988
3,023
2,991
196
214
301
306
257
258
264
263
4,914
5,049
4,996
5,029
2,400
2,521
2,445
2,471
July 3
July 10
July 17
July 24
July 31
2,431
2,430
2,430
2,430
2,430
2,468
2,473
2,472
2,460
2,465
9,119
9,123
9,127
9,135
9,144
2,504
2,503
2,501
2,503
2,510
5,619
5,551
5,530
5,496
5,518
3,002
2,932
3,0S6
3,134
2,991
312
302
302
265
253
258
263
258
258
257
4,900
5,052
4,924
4,945
5,100
2,320
2,456
2,340
2,335
2,513
2,430
2,430
2,430
2,430
2,476
2,477
2,468
2,471
9,158
9,184
9,189
9,197
2,477
2,437
2,421
2,408
5,550
5,558
5,574
5,573
2,932
2,775
2,722
2,683
253
251
230
213
261
5,115
5,254
5,291
5,346
2,547
2,667
2,682
2,749
2,430
2,430
2,430
2,430
2,472
2,479
2,472
2,474
9,209
9,219
9,240
9,297
2,395
2,391
2,390
2,382
5,650
5,638
5,632
5,626
2,746
2,629
2,839
2,778
193
186
244
262
259
248
250
250
5,228
5,136
5,236
2,643
2,790
2,527
2,592
Oct. 2
Oct 9...
Oct. 16.. "
Oct. 2 3 . . . . ;
Oct. 30
2,430
2,430
2,430
2,430
2,430
2,470
2,478
2,496
2,472
2,474
9,414
9,463
9,584
9,629
2,399
2,404
2,397
2,401
5,698
5,696
5,684
5,686
2,814
2,747
2,693
2,694
2,665
306
313
307
292
296
251
250
254
254
260
5,224
5,330
5,534
5,575
5,653
2,569
2,694
2,878
2,900
2,931
Nov.
Nov.
Nov.
Nov.
6
13....
20....
27—fc_
2,430
2,430
2,430
2,430
2,462
2,492
2,471
2,472
9,714
9,747
9,804
9,874
2,401
2,399
2,409
2,421
5,754
5,746
5,739
6,820
2,655
2,641
2,648
2,625
236
249
262
282
260
257
253
252
5,671
5,746
5,782
5,789
2,993
3,052
3,069
3,051
gee.
gee.
gee.
gee.
4....
li.
18
24.
2,430
2,430
2,430
2,431
2,431
2,470
2,474
2,483
2,523
2,486
10,009
10,068
10,093
10,
10lliT
10,125
2,442
2,447
2,458
2,464
2,476
5,843
5,841
5,902
5,991
5,882
2,626
2,558
3,161
3,156
3,110
283
280
281
266
255
270
258
259
253
5,905
6,040
5,437
5,429
5,587
3,173
3,304
2,706
2,693
2,844
2,430
2,430
2,430
2,430
2,476
2,485
2,477
2,470
10,144
10,158
10,172
10,179
2,476
2,492
2,498
2,492
5,783
5,722
5,704
3,049
3,018
3,093
3,031
265
284
296
301
253
253
253
254
5,745
5,859
5,802
5,863
3,002
3,095
3,030
3,087
2,430
2,430
2,430
2,430
2,489
2,508
2,505
2,475
10,168
10,155
10,160
10,163
2,491
2,496
2,499
2,502
5,742
5,763
5,771
5,775
2,958
2,993
2,979
2,949
324
364
327
323
255
254
255
254
5,869
5,784
5,832
5,839
3,0S9
'3,007
'3,045
3,062
2,431
2,430
2,430
2,430
2,475
2,473
2,485
2,485
10,167
10,170
10,173
10,177
2,506
2,503
2,503
2,502
5,848
5,840
5,841
5,837
2,898
2,909
3,587
3,667
321
337
328
340
269
274
261
261
5,813
5,786
5,144
5,059
3,043
3,003
2,388
2,315
Aug.
Aug.
Aug.
Aug.
.
7
14....
2L___
28....
Sept.
Sept.
Sept.
Sept.
4....
U.___
18....
25....
Dec. 31
-Jan. 8
Jan. 1 5 — I
Jan. 22
Jan. 29
Feb.
Feb.
Feb.
Feb.
5.._
12 "
i 9 ;;;;;
26....
JJar.4
Mar.li_
Mar. 1 8 . _ ;
Mar. 25
r
Revised.
NOTE.-;
8,737
8,762
8,835
259
260
260
,. „ „
Reprints of articles,
Back figures are also shown in
266
FEDERAL RESERVE BULLETIN
A P R I L 1936
MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS
END OF MONTH FIGURES
[In millions of dollars]
Reserve bank credit outstanding
End of month
U.S.
Gov- Other
Dills
Bills
erndis- bought ment Reserve Total
bank
counted
securi- credit
ties
Member bank
reserve balances
TreasTreasury
Other
ury
cash and
FedMone- and na- Money deposits Nonmemtary tional- in cireral
with
gold
cula- Federal ber de- Reserve |
bank
Excess
stock
tion
posits
acReserve
cur(esticounts Total mated)
rency
banks
1934-October
November...
December....
2t430
2,430
2,430
2,455
2,453
2,463
8,002
8,132
8,238
2,434
2,468
2,511
5,453
5,549
5,536
3,031
3,022
3,150
164
161
189
237
239
241
4,006
4,081
4,096
1,748
1,801
1,814
1935—January
February
March
April
May
•
June
July
August
September.-.
October
November...
December.
2,430
2,430
2,437
2,430
2,430
2,433
2,430
2,432
2,430
2,430
2,430
2,431
2,461
2,465
2,471
2,468
2,469
2,480
2,465
2,485
2,477
2,482
2,4S0
2,486
8,391
8,527
8,567
8,710
8,858
9,116
9,144
9,203
9,368
5,380
5,467
5,493
5,478
5,540
5,668
5,618
6,629
5,713
5,846
5,882
2,991
3,004
3,358
2,996
2,969
2,968
2,991
2,694
2,740
2,657
. 2,619
3,110
191
207
226
271
254
325
253
198
304
299
284
255
243
246
253
263
257
261
257
260
250
258
253
253
4,543
4,587
4,247
4,715
9,920
10,125
2,495
2,519
2,540
2.544
2,525
2,506
2,510
2,398
2,386
2,400
2,438
2,476
4,979
5,100
5,305
5,254
5,648
5,835
5,687
2,206
2,199
1,840
2,253
2,318
2,414
2,513
2,708
2,600
2,970
3,100
2,844
1036—January
February
March
2,430
2,430
2,430
2,479
2,482
2,474
10,182 2,493
10,167 2,499
10,184 *2,504
5,737
5.846
*5,877
3,001
2,937
*3,606
304
327
332
253
254
259
5.860
5,784
5,087
3,084
2,986
'2,305
..
r
p Preliminary.
Revised.
Back figures.—See Annual Report for 1934 (table 5), and for excess reserves see BULLETIN for August 1935, p p . 499-500. See also note on p. 265
of this BULLETIN.
MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS
AVERAGES OF DAILY FIGURES
[In millions of dollars]
Reserve bank credit outstanding
Year or month
Bills
Bills
discounted bought
1929—Average
1930—Average
1931—Average
1932—Average
1933—Average
1934—Average
1935-Average
952
272
327
521
..
1936—January....
February..,
March
208
564
669
1,461
2,052
2,432
2.431
1,459
1,087
1,274
2,077
2,429
2,602
2.475
3,996
4,173
4,417
3,952
4,059
7,512
9,059
2,015
2,025
2,025
2,096
2,271
2,381
2,478
4,476
4,245
4,672
5,328
5,676
5,403
5,585
239
251
275
343
2,879
2,919
30
28
97
56
147
185
252
376
393
373
351
360
253
255
2,358
2,379
2,323
2,114
2,343
3,676
5,001
43
£5
89
256
02S
1,564
2,469
2,430
2,430
2,430
1934—October
November..,
December...,
1935—January.
February
March...
April
May
June...
July
August
September
October
November
December.
241
213
245
71
83
25
5
U.S.
Gov- Other
ern- Reserve
Total
ment
bank
securi- credit
ties
Member bank
reserve balances
TreasTreasury
Other
ury
MoneFedMoney cash and Nonand
tary
eral
in cir- deposits memwith
gold nation- culaber de- Reserve]
Federal posits
stock al-bank) tion
acTotal Excess
curReserve
counts
rency
banks
2,457
2,466
2,472
7,989
8,047
8,191
2,415
2,455
2,494
5,473
5,494
5,577
3,011
2,970
3,120
177
165
181
234
238
242
3,964
4,100
4,037
1,731
1,834
1,743
2,430
2,430
2,431
2,431
2,434
2,431
2,430
2,431
2,430
2,430
2,430
2,430
2,465
2,462
2,461
2,471
2,476
2,479
2,473
2,476
2,480
2,482
2,482
2,494
8,284
8,465
8,552
8,641
8,755
9,025
9,128
9,180
9,246
9,545
9,777
10,072
2,504
2,513
2,526
2,548
2,534
2,513
2,504
2,441
2,389
2,398
2,410
2,454
5,411
5,439
5,477
5,500
5,607
5,522
5,550
5,576
5,651
5,704
5,770
5,897
3,053
2,965
3,122
3,209
2,942
2,989
3,032
2,795
2,734
2,693
2,630
2,869
194
189
236
258
278
266
293
233
236
307
256
276
242
246
250
256
259
261
259
261
252
253
256
263
4,355
4,601
4 452
4| 436
4,778
4 979
4,970
2,035
2,237
2,065
2,430
2,430
2,430
2,484
2.493
2,484
10,158
10,163
10,172
2,486
2,495
2,502
5,757
J5.779
5,857
3,058
2.981
280
329
336
253
255
266
5,780
5.808
5,420
3,278
6,243
5,469
5,757
5,716
%m
2,297
£438
2,385
2 636
2,628
£061
2,083
3,033
3.C3S
,2,654
* Preliminary,
Beport for 1934 (table 2) and for excess reserves see B P L L * ™ for August 1935, pp. 499-500. See also note on P- »»
267
FEDERAL RESERVE BULLETIN
APEIL 1936
ASSETS AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL RESERVE
NOTE STATEMENT
[In thousands of dollars]
Mar. 31,19361 Feb. 29,1930 I Mar. 31,1935
ASSETS
•Gold certificates on hand and due from U. 8. Treasury
Redemption fund—Federal Reserve notes
Other cash
7,665,346
14,865
347,090
7,669,673
14,902
336,754
fi,576,023
15,649
232,933
Total reserves
Bills discounted:
For member banks
For nonmember banks, etc
Total bills discounted
8,027,301
8,021,329
5,824,605
7,654
359
8,013
6,570
359
7,373
243
6,929
7,616
4,674
30,409
4,673
31,778
5,305
21,173
2,430,250
2,430,298
2,437,303
181
650
»294
181
649
7,148
702
^904
2,473,883
18,811
522,104
47,885
36,811
2,481,656
18,365
484,877
47,814
40,312
2,471,195
15,067
429,666
49,524
42,047
11,126,795
11,094,353
8,833,004
18,811
3,744,947
18,365
3,713,858
15,067
3,150,582
3,763,758
3,732,223
3,165,649
5,087,086
1,077,494
62,694
269,477
5,784,423
424,142
51,143
275,715
4,247,242
418,858
19,186
207,306
6,496.751
622,104
130,723
145,501
26,513
34,105
7,340
6,535,423
484,877
130,708
145,501
26,419
34,111
6,091
4,892,592
11,094,353
257780'
8,833,004
93
15,964
4,019,380
3,975,166
3,416,088
3,987,843
6,155
69,000
3,893,343
5,216
127,000
3,268,179
5,761
231,100
4,062,998
4,025,559
3,505,040
s
Bills bought: Payable in foreign currencies
Industrial advances
U. 8. Government securities: Bought outright
Other Reserve bank credit:
Other securities
Due from foreign banks
„
Reserve bank float (uncollecte'd itemrin"wce^"of~defeiTed"a*vailabiirty items)
» A T°i al Res e™e bank credit outstanding
federal Reserve notes of other Reserve banks
JJncollected items not included In float
Bank premises™......
All other assets
II.III"_""I"""""I.".-II._-I
Total assets
VnA* i T>
LIABILITIES
Federal Reserve notes:
y t
er e
nfi •S S *5 ? J?
eral
Reserve banks
—
Outside Federal Reserve banks
Total notes In circulation
Deposits:
Member bank-reserve account
Foreig^Tan^^
Other deposits
Total deposits
Surplus (sec 1 3 b } " " " "
I""""I"
tfeserve for contingencies
"
*
Mother i i a b m t i e l . . . . . ! ! : : : : : : : : : ; : : ; ; : : : : : : : : : : : : : : ; : : : : : : : : : : : ; : : : : : : : :
T
l °tal liabilities
i t H ab * ility o n Mite purchased for foreign correspondents
»
itments to make industrial advances....!
11,126,795
'
429,
G66
146,922
144,893
14,781
30,804
7,697
FEDERAL RESEBVE NOTE STATEMENT
e banks by Feder
^
bie^
as security for notes iss
3 o n h a n d a n d d u e from Vt s
. Government securities..
Total collateral
1
*
-
Deferred availability items in excess of uncollected items.
268
FEDERAL RESERVE BULLETIN
APRIL 1836
KINDS OF MONEY IN CIRCULATION
[Money outside Treasury and Federal Reserve banks. In millions of dollars]
Total
End of month
Standard
silver
dollars
Gold
certificates
Silver
certificates
Treasury
notes
of 1890
Subsidiary
silver
Minor
coin
Federal Federal
Reserve Reserve
bank
notes
notes
United
States
notes
National
bank
notes
1934—September.
October
NovemberDecember..
5,456
5,453
5,549
5,536
139
136
133
130
483
510
558
592
284
2S3
291
294
122
123
124
125
274
273
273
265
3,131
3,124
3,176
3,176
119
112
107
101
870
856
1935—January
February...
March
April
May
June
-July
August
September.
October
November..
December..
5,380
5,467
5,493
5,478
5,540
5,568
5,518
5,629
5,683
5,713
5,846
5,882
127
126
123
121
119
117
115
114
112
111
110
109
623
653
695
701
702
739
756
773
812
828
287
289
290
294
296
297
298
298
302
306
309
312
123
123
123
124
125
125
125
•126
127
128
130
131
259
263
264
268
281
285
280
283
286
281
284
275
3,048
3,119
3,135
3,120
3,159
3,223
3,232
3,362
3,439
3,495
3,612
3,667
97
94
92
88
85
81
78
75
73
70
827
823
810
778
747
704
654
596
553
£14
487
458
1936—January
February..
March >
5,737
5,846
5,877
107
106
104
841
864
304
307
129
129
131
259
254
245
60
3,727
421
406
» Preliminary figures.
NOTB.—For figures or paper currency of each denomination In circulation see p. 302.
Back figures.—See Annual Report for 1934 (table 49).
ANALYSIS OF CHANGES IN MONETARY GOLD
STOCK
MOVEMENT OF GOLD TO J
AND FROM
UNITED STATES
[In millions of dollars]
[In thousands of dollars]
Gold
stock
at end Increase
in gold
1936
of
year or
month
stock
gold
Import
Net
release
from
earmark*
1932
1033
1934
4,226
4,036
8,238
52.9
-190.4
4,202.5
-446.2
-173.5
1,133.9
457.5
-58.0
82.6
41.6
4L1
2,986.1
1935—JanuaryFebruary..
March
April
May
June
July
August...
September.
October...
November.
December.
8,391
8,527
8,567
8,710
8,858
9,116
9,144
9,203
9,368
153.3
135.3
40.4
143.4
148.1
257.1
27.9
59.5
165.0
325.2
226.7
205.2
149.4
122.8
13.0
148.6
140.0
230.4
16.2
46.0
156.7
315.3
210.6
190.0
1.1
.2
2.8
12.3
28.1
-2.9
9.6
25.8
12.1
11.7
7.3
11.8
15.5
13.9
Year or month
Year....
1936—January...,
February...
March
9,920
10,125
10,125
10,182
10,167
1OJ34
1,887.2
57.2
Net
1,739.0
45.6
-16.6
5.6
-iz
-1.5
1.0
-.4
1.8
1.0
-1.9
.6
1.3
.2
-1.7
-9.5
1.0
Other
factors *
148.0
13.3
10.6
» Preliminary.
i Gold released from earmark at Federal Reserve banks less enM
placed under earmark (with allowance when necessary for c h i d e s in
m
gold earmarked abroad for account of Federal Reserve banks)
» Figures are derived from preceding columns and indicate int r«<mu
of such factors as domestic production, movements i n S and out^if
nonmonetary use, imports and exports that do not; affect gold stock
TBack^figures.—Seer Annual ^ lDCrement r6SUlti 44). f ^ i °
? I f ° n ? ^ Report for 1934 (table
From or to—
Imports
Belgium
England
France
Germany..
Netherlands
Switzerland
Union of Soviet
Socialist
Republics
Canada
Central America...
Mexico
Argentina
Chile
Colombia..
Ecuador..
Peru
Uruguay
Venezuela
Australia
British India..
China and Hong
Kong
Dutch East Indies
Japan
Philippine Islands.
All other countries *.
Total
Exports
Imports
1,594
1,686
349
885
2
541
1,849
2
344
57
13
January-March
February
March
5
0
8
571
290
295
785
114
Exports
2,893
17,180
3,421
17
126
Imports
1
6,099
3,527
5
0
0
3,904
12,724
1,003
2,516
Exports
4,994
17,180
3,765
29
321
446
183
189
58
1,993
1,743
1,189
409
42
373
54
1,499
140
7,068
11,744
740
1,916
1,520
209
4,334
459
;;
60,778
26,290
7,795
785
2,315
7,002
23,637
Figures represent customs valuations which, with some exceptions,
are at rate of $35 a fine ounce.
. ,.
2
Includes all movements of unrepoTted origin or destination.
Back.fioureg.-See table, p. 284, and Annual Eeport for 1934 (tables
FEDERAL RESERVE
APBIL 1936
269
BULLETIN
MEMBER BANK RESERVE BALANCES
[Average of daily figures. In millions of dollars]
Reserves held
Month or week
Excess reserves
Total—all
member
banks
New York
City*
4,601
4,452
4,436
4,778
4,979
4,970
5,232
5,243
5,469
5,757
5,716
5,780
5,808
1,864
1,760
1,715
1,813
1,969
1,938
2,306
2,320
2,460
2,563
2,541
2,593
2,579
1,826
1,787
1,831
2,031
2,092
2,072
1,989
2,023
2,101
2,253
2,239
2,209
2,231
5,873
6,016
5,625
5,448
5,571
5,704
5,840
5,816
5,848
5,839
5,784
5,809
5,804
2,647
2,279
2,334
2,234
2,167
2,120
2,201
2,248
2,208
2,226
2,231
2,240
2,230
2,228
1935-February
March .
April
II....
May
June——
July
August
September
October..
November
December*
1936—January
February,..,...
Week ending (Friday)
1935-Dec.6
Deo. 13
Dec. 20
Dec. 27
1&36-Jan. 3
Jan. 10.
Jan. 17
Jan. 24
Jan. 31
Feb. 7
Feb. 14.
Feb. 21
Feb. 28
Other
reserve
cities
2,480
2,376
2,516
2,534
2,609
2,628
2,628
2,590
2,524
2,590
2,608
"Country'
banks
Total-all
member
banks'
2,236.6
2,064.7
2,025.6
2,296.9
2,437.6
2,385.2
2,635.8
2,628.0
2,819.7
3,061.2
2,982.7
3,032.7
3,037.8
911
905
918
960
937
900
90S
941
935
978
3,135.0
3,281.0
2,881.0
2,715.0
2,826.0
2,964.0
3,083.0
3,046.0
3,074.0
3,060.0
3,006.0
3,023.0
3,019.0
947
990
911
905
935
969
984
981
994
1,018
1,020
New York
Cityi
Other
reserve
cities
•Country"
banks'
886.7
842.3
878.4
1,038.4
1,079.0
1,037.5
979.5
1,035.2
1,162.1
1,133.1
1,090.4
1,110.5
956.4
915.3
867.6
1,214.2
1,177.3
1,308.8
1,392.7
1,350.4
1,395.4
1,360.1
451.0
443.5
424.3
461.0
443.4
480.1
465.3
471.2
475.7
506.4
499.2
547.0
567.3
1,184.0
1,235.7
1,124.6
1,051.5
1,008.4
1,086.8
1,127.2
1,085.7
1,104.4
1,112.5
1,117.1
1,107.2
1,107.1
779.0
723.0
797.5
504.0
552.0
470.0
461.0
491.0
527.0
542.0
536.0
552.0
575,0
580.0
546.0
525.0
1,446.9
1,493.8
1,286.9
1,202.3
1,326.8
1,350.7
1,413.8
1,424.0
1,417.7
1,372.2
1,308.8
1,370.3
1,387.2
1
Central Reserve city banks only.
I F 6 6 ? 1 * figures of excess reserves of all member banks and of country banks are estimates.
For total reserves and estimated excess reserves of all member banks during the following month, see tables on pp. 265 and 266.
Backfigum.-See
Annual Report for 1934 (table 67).
1
MEMBER BANK DEPOSITS SUBJECT TO RESERVE
REQUIREMENTS
[Averages of daily figures. In millions of dollars]
Totalall
member
banks *
Month or week
1935-February.
March.
29,357
29,586
29,882
30,571
31,003
31,401
31,463
31,336
31,753
32,161
32,480
32,666
32,828
l k 93n D e g C ^ i d a y ) :
gee. 13
Dec. 20 „
Dec 27
*
1936-Jan. 3.
Jan. 10
Jan-17...
Jan. 24
Jan. 31
Feb. 7 . . .
Feb.14.
Feb. 2 1 _ _
Feb. 28
""
1"
^
Other
reserve
cities
^
7,926
8,050
8,145
8,318
8,565
8,702
8,896
9,272
9,382
9,508
9,644
9,688
9,835
12,063
12,148
12,260
12,647
12,814
12,979
12,968
13,072
13,311
13,559
13,719
13,900
13,923
9,723
9,711
9,660
9,510
9,634
9,593
9,675
9,725
9,772
9,827
9,809
9,844
9,852
M p ay u ;m
June
July
August..I"I
September...
October....
November
December...
m .
1936—January
Februaryl
New
York
City»
13,586
13,630
13,746
13,830
13,823
13,861
13,918
13,932
13,931
13,898
13,940
13,936
13,921
^
port for 1934 (table 67).
ta
"Coun- T oall l try"
member
banks * banks l
9,368
9,387
9,477
9,606
9,624
9,720
9,599
8,992
9,061
9,095
9,117
9,077
9,070
Time deposits
Net demand deposits
Total deposits subject to reserve
19,361
19,554
19,768
20,377
20,899
21,295
21,311
21,179
21,464
21,872
22,200
22,254
22,428
:
New
York
City*
Other
reserve
cities
7,268
7,399
7,481
7,655
7,967
8,095
8,253
8,642
8,693
8,850
9,013
9,067
9,235
7,606
7,662
7,745
8,085
8,275
8,481
8,474
8,561
8,755
8,977
9,119
9,217
9,226
9,079
9,074
9,034
8,884
9,005
8,952
9,049
9,120
9,16$
9,227
9,211
9,245
9,250
9,024
9,048
9,143
9,208
9,170
9,187
9,236
9,246
9,238
9,207
9,241
9,240
9,221
"Country"
banks 1
Totalall
member
banksi
4,487
4,493
4,642
4,638
4,657
4,719
4,584
3,975
4,016
4,045
4,069
3,969
3,967
9,996
10,031
10,114
10,194
10,103
10,107
10,152
10,157
10,289
10,289
10,280
10,412
10,400
III-I—. IIIIIIII.
New
York
City*
Other "Country"
reserve
cities banks 1
658
651
664
663
597
607
643
630
683
657
632
620
600
4,457
4,486
4,515 4,562
4,539
4,493
4,494
4,510
4,556
4,581
4,600
4,683
4,697
644
637
626
626
629
641
626
604
603
600
598
599
602
4,563 .
......
4,583
4,603 - " 4,622
4,653
4,673
4,681
4,686
4,693
4,691
4,699
4,696
4,700
4,881
4,895
4,935
4,969
4,967
5,002
5,015
5,017
5,045
5,050
6,049
5.109
5,103
270
FEDERAL RESERVE BULLETIN
APittlSM
ALL BANES IN THE UNITED STATES
[Comprises all national banks In the continental United States and all State commercial banks, trust companies, mutual and stock savings banks
and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the period
June 193Wune 1935, private bank"- 1 - 1 - 1 **-*i*-*
* — **, /_* -.*.*.- T>__,_*— * _* _*,«™ _ _ i . _ . i . _ J -__.,„.
the Comptroller of the Currency]
LOANS AND INVESTMENTS
[In millions of dollars]
AH banks
Member banks
Nonmember banks
Mutual savings banks
Date
Total
Loans
Investments
Total
Loans
Investments
Other nonmember banks
Total
Loans
Investments
Total
Loans
Invest*
menu
1931—Mar. 25
June 30
Sept. 29
Dec. 31
55,924
55,021
53,365
49,704
36,813
35,384
33,750
31,305
19,111
19,637
19,615
18,399
34,729
33,923
33,073
30,575
22,840
21,816
20,874
19,261
11,889
12,106
12,199
11,314
i 9,987
10,506
1 10,506
10,488
16,068
6,169
1 6,169
6,218
13,920
4,337
14,337
4,270
11,208
10,593
9,786
8,641
7,906
7,399
6,707
5,827
3,302
3,194
3,079
2,814
1932—June 30
Sept. 30
Dec. 3 1 . . . . .
46,071
45,852
44,946
27,834
26,985
26,063
18,237
18,867
18,833
28,001
28,045
27,469
16,587
15,924
15,204
11,414
12,121
12,265
10,316
U0,316
10,182
6,130
i 6,130
6,079
4,186
1 4,186
4,103
7,755
7,491
7,295
5,117
4,931
4,780
2,637
2,560
2,515
1933-June 30»Oct. 25»
D e c 30
40,076
22,203
17,872
11,928
11,894
12,386
4,103
5,246
3,404
1,341
18,342
12,858
13,059
12,833
5,941
21,977
24,786
24,953
25,220
10,044
40,319
9,985
5,906
4,"079
5,115
3,238
1,877
12,706
12,523
12,293
12,028
13,842
14,652
15,267
16,122
9,904
5,648
4,256
4 5,423
3,108
2,315
9,782
5,491
4,291
6,526
2,955
2,571
11,953
11,923
11,841
12,175
16,318
16,857
17,460
17,810
9,775
9,852
9,854
9,806
5,478
5,341
5,302
5,212
4,297
4,511
4,552
4,594
5,701
5,779
5,803
5,909
2,963
3,003
2,987
2,940
2,738
2,777
2,816
2,969
1934—Mar. 5»
June 30
Oct. 17 *
D e c 31
42,502
21,278
21,224
43,458
20,474
22,984
26,548
27,175
27,559
23,150
1935—Mar. 4
June 29,_,
Nov. P .
Dec. 31 *
43,747
44,416
44,958
45,700
20,394
20,272
20,130
20,327
23,353
24,145
24,828
25,373
28,271
28,785
29,301
29,985
......
i Figures of preceding call carried forward,
banks . i i m i D g J t m 6 ^ 1 9 3 3 ' & U fi8UreS ( o t h e r t h a n
«Nonmember bank figures not available.
form u t u a l s a v i n e 3 b a n k s ) r e l a t e t o
"censed banks only, with some exceptions as to nonmember
s: also BOTlKTIN for m
j
i
m
p>
*"•
Back figures.—See Annual Report for 1934 (table 61).
DEPOSITS, EXCLUSIVE OF INTERBANK
DEPOSITS
NUMBER OF BANKS
[In millions of dollars]
Nonmember banks
Date
All banks Member
banks
1931—Mar. 25...
June 3 0 . . .
Sept. 29...
Dec.31__.
1932—June 3 0 . . .
Sept. 30...
Dec. 3 1 . . .
1933—June 30 *.
Oct. 25 KI
Dec. 3 0 . . .
1934-Mar.5'._
June 30..
Oct. 17*..
Dec. 3 1 . . .
1935-Mar. 4 . . . .
June 2 9 . . .
Nov. 1 *_.
Dec. 31 *..
51,427
51,782
49,152
45,821
41,963
41,942
41,643
37,998
38,505
*41,"870'
44,771
44,455
45,766
47,462
48,950
31,153
31,566
Otber
BOD*
Mutual
savings
banks
19,507
10,017
U0,017
10,105
10,020
110,020
10,022
27,432
24,755
24,903
24,803
23,338
9,713
23! 453
23,771 ""9,*708*
25,293
26,615
9,780
27,484
28,943
9,828
29,496
31,072
32,159
9,837
9,920
9,936
9,963
mem*
ber
banks
Other
nonmember banks
10,767 1931-Mar. 2 5 . .
10,199
J u n e 30...
9,666
Sept. 29..
8,284
Dec. 3 1 . .
7,188
7,020
6,818
4,946
5,026
4
5,475
6,000
6,029
6,350
6,454
6,828
1932—June 3 0 . . .
Sept. 30
Dec. 3 1 . . .
1933—June 30 * „
Oct. 25»._
Dec. 3 0 . . .
1934-Mar.5»June30.._
Oct. 1 7 ' . .
Dec. 3 1 . . .
1935—Mar. 4 . . . .
June 2 9 . . .
Nov. IK.
Dec. 31 *..
22,372
21,903
21,294
19,966
19,046
18,794
18,390
16,042
16,024
15,994
15,904
15,836
7,928
7,782
7,599
7,246
6,904
6,816
5,606
5,818
6,011
6,206
6,375
6,433
6,442
6,422
6,410
6,400
6,387
6,930
6,800
6,653
6,368
6,145
6,080
6,011
5,288
5,417
5,461
5,462
5,446
5,425
5,403
5,386
For footnotes see table above.
NOTB.—Prior to Dec. 30,1933, member-bank figures include interbank
deposits not subject to Immediate withdrawal, which aggregated $103,000,000 on that date.
Back figures.—See Annual Report for 1934 (table 60).
For footnotes see table above.
Badtfigwet.-Bto
Annual Report for 1934 (table 60).
35,
35
3S
271
FBDEKAL RESEEVE BtTLLETIN
APEIL1936
ALL MEMBER BANKS—LOANS AND INVESTMENTS
[In millions of dollars]
Loans to customers (except banks)
Open-market loans
Investments
U. 3 . Government obligations
Purchased paper
Total
loans
and
Invest*
ments
Coll date
Total
To
Other- Loans
RebroTo
to
kers others Real port- wise
seing
banks Acouton
ceptlornside securi- estate banks cured
and
loans own
ances Bills merNew
iccept-j unseties
cial
?ayYork
ances cured
paper
)le in
lityi
United abroad sought
States
to
bro*
era in Total
New
York
ity'
Direct
ully
guarnteed
ther
securities
TOTAL-ALL MEMBER BANES
1932-Dec. 31
1933-June 30»
Oct. 25
Dec. 30
1934-Mar. 6
June 30
27,460
24,786
24,953
25,220
26,548
27,175
27,659
28.150
28,271
28,785
29,301
29f985
Oct. 17
Dec. 31
1935-Mar. 4
June 29
Nov. 1
Dec. 31
13,905
11,337
11,623
11,315
11,093
10,804
10,782
10,509
10.420
7,327
7,133
6,971
6,995
7,351
7,666
7,545
7,761
7,783
10,465
10,548
225 5,970
192 4,857
257 5,092
213 4,972
250 4,817
210 4,721
229 4,932
232 4,708
207 4,748
135 4,834
159 4,963
5,006
444
330
297
287
225
153
149
155
133
119
94
1,066
937
1,075
1,084
1,009
965
1,108
1,024
1,054
1,085
1,114
1,096
216
162
143
146
112
68
66
63
62
3,752
3,631
3,606
3,480
3,309
3,158
3,110
3,031
2,931
2,885
2,893
2,862
2,372
2,364
2,359
2,382
2,357
2,297
2,273
2,250
2,277
2,279
2,284
1,186
1,044
985
989
938
882
826
820
805
783
775
793
241
165
178
166
164
208
167
187
184
192
179
196
160
157
149
148
156
156
150
139
139
138
136
140
2,005
1,590
1,542
1,524
1,465
1,3S8
1,319
1,294
1,261
1,216
1,209
1,206
1,398
1,160
1,144
1,151
1,158
1,145
1,120
1,108
1,093
1,120
1,117
1,109
2,237
1,915
2,033
1,937
1,870
1,853
1,956
1,873
1,909
1,917
2,034
2,100
1,417
1,117
1,104
1,092
1,077
1,039
1,012
996
966
932
902
894
1,304
1,055
1,070
1,061
1,068
1,056
1,026
1,026
1,618
1,020
1,026
1,035
2,667
2,005
1,984
1,952
1,937
1,903
1,868
1,810
1,785
1,831
,815
,810
375
291
303
223
350
264
276
256
235
201
154
181
357 2,285
783 1,928
748 1,891
840 2,386
S55 13,842
843
875
975
841
1,047
14,652
15,267
[6,122
.6,318
[6,857
[7,450
17,810
6,540
6,887
6,801
7.254
8,667
9,137
9,186
9,906
9,821
9,871
O.OSO
.0,501
337
720
624
706
687
883
631
662
678
930
823
1,018
93
87
164
132
157
200
253
232
255
247
260
272
3,789
3,709
3,501
3,542
3,932
4,265
4,300
4,602
4,628
4,983
4,968
4,985
2,603
2,551
2,320
2,362
2,768
3,053
2,954
3,246
3,200
3,462
3,340
3,425
12
53
100
112
138
4,362
4,621
4,645
5,000
5,763
6,104
6,423
6,764
6,933
7,093
7,589
7,824
1,474
1,469
1,592
1,683
1,946
1,982
1,992
2,108
2,020
1,931
1,874
1,940
105
»157
237
278
298
348
405
401
1,186
1,158
1.131
1,179
1,059
1,056
1,109
1,078
1,131
1,174
1,223
1,159
2,462
2,867
2,889
4,114
3,598
3,748
3,845
4,14S
4,283
4,545
4,756
4,757
4,780
4,903
5,002
181
»276
709
089
1,200
1,558
1,764
1,768
5,726
6,0U
5,093
5,132
4,995
5.239
fi,372
5,227
5.293
5,427
5,615
6,541
N1W YORK a i t *
1032-Dec. 31
1933-June 30»
Oct. 25
June 29
Nov. l . .
Dec. 31 I.!
8,167
8,418
2,621
2,297
2,436
2,395
2,321
2,202
2,294
2,202
2,198
2,146
2,185
2,196
}<*32-Dec.31
1933-June 30»
Oct. 25..::::
10,535
9,780
9,951
10,157
10,816
11,054
11,367
11,609
11,739
11,743
12,313
12,647
5,879
4,846
4,912
4,797
4,669
4,586
4,562
4,459
4,436
4,425
4,522
4,599
9,607
7,873
8,031
8,068
8,381
8,456
8,649
8,780
8,749
8,739
8,821
8,919
5,405
4,194
4,175
4,123
4,103
4,016
3,926
3,849
3,786
3,798
3,758
3,754
Dec. 30
1934-Mar. 5
June 30
Oct. 17
&.t;::
&
OTHER
148
120
179
130
171
144
159
164
145
82
101
107
. 48
35
42
224
233
170
276
225
232
210
203
183
135
158
RESERVE
CITIES
June 30
Oct. 17
lVtJune 2 9 . . . "
Nov. l
D
ec.31..._:
COUNTRY
164
111
117
106
101
138
102
118
113
120
107
123
178
129
03
79
53
55
65
66
60
40
39
44
60
64
34
39
42
26
14
16
20
46
51
91
78
89
115
151
135
142
126
124
132
m
123
131
134
26
10
22
3,954
4,102
4,240
4,551
4,601
4,478
4,865
5,136
75
»94
257
356
453
658
751
744
il,90S
1,928
1,857
1,878
1,957
1,973
1,944
»25
215
355
448
553
609
623
2,640
2,129
2,156
2,162
2,202
12,276
2,337
2,293
2,289
2,296
2,419
2,439
BANKS
25..:::
30
Mar.5
June 30.:
{?ne29r;:
Nov. 1
Dec. 31.
"
^^^^
r M .-See BULLETIN for November 1935, pp. 722 and 723, or reprint, which may be ol
28
27
46
34
54
72
95
92
109
116
132
135
1,900
1,754
1,757
1,790
1,734
272
FEDERAL RESERVE BULLETIN
APBIL 1936
ALL MEMBER BANKS—RESERVES, DEPOSITS, AND BORROWINGS
[In millions of dollars]
Demand deposits
Call date
Time deposits
Cash
ReItems
Interbank
Certi- IndiBal- report- Interbank
Indiserves
fied
Devidvidwith Cash ances ed as
and
with
mand
Unituals,
uals,
Fedin
offi-1 part- deposdoin
ed
Pos- parteral vaul mesprocPubits adStates Pub- cers
nernertal
Reess
Dolic
tic
For- Gov- funds [checks, ships, justed Do- For- lic , sav- ships,
serve
cash
banks of col- meserncoreign
banks
eign funds ings corlectic
letters poratic
poration* banks banks ment
banks banks
of
tions,
tions,
credit, etc.
etc.
etc.*
Borrowings
TOTAL—ALL MEMBER, BANES
1932—Dec. 31
1933—June 30*
Oct. 25
Dec. 30
1934—Mar. 5
June 30
Oct. 17
Dec. 31
1935-Mar.4
June 29
Nov.l
Dec. 31
2,511
2,235
2,651
2,678
3,148
3,819
3,976
4,082
4,518
4,933
5,662
5,573
423 2,416
405 2,008
447 1,917
471 2,031
486 2,376
473 2,760
550 2,929
609 3,149
534
537 3,396
541 3,760
665 3,776
1,122
1,485
1,060
1,132
1,159
1,057
1,407
1,903
1,475
1,183
1,756
2,255
1,132
846
968
903
1,170
1,417
1,443
1,576
1,856
1,935
2,590
2,541
115
101
90
93
91
97
84
103
86
133
109
111
491
874
553
476
631
415
666
1,069
810
447
873
1,133
931
937
1,154
1,202
1,293
1,633
1,685
1,683
1,746
2,079
2,172
2,105
1,534
1,205
1,142
1,169
1,333
1,559
1,590
1,750
1,873
1,856
2,038
448
452
529
573
685
769
843
822
916
920
900
927
767
702
685
769
951
1,105
1,257
1,296
1,427
1,406
1,613
',676
1,119
1,087
1,106
1,320
1,425
1,598
1,680
1,799
1,861
2,091
2,251
2,139
12,273 12,691
11,830 12,089
11,873 12,384
12,109 12,674
12,252 13,066
13,349 14,261
14,449 15,312
14,951 15,686
14,872 15,999
16,206 17,530
17,327 18,509
18,035 18,801
145
117
129
173
155
136
147
169
273
361
444
475
806
913
967
1,790
1,658
1,143
1,636
1,270
779
650
844
216
127
100
112
154
135
116
126
147
248
327
410
173
532
379
422
843
802
559
792
572
369
219
224
177
461
299
167
368
154
360
540
500
149
413
524
4,540
4,676
4,513
4,494
4,422
4,894
5,107
6,370
5,329
5,924
6,104
6,479
4,319
4,358
4,330
4,325
4,268
4,800
5,001
5,069
5,209
5,979
6,112
6,193
467 1,782
462 1,575
389 1,545
484 1,685
393 1,993
468 2,178
552 2,431
627 2,429
502 2,684
544 2,649
662 2,955
887 2,943
229
356
425
434
766
682
458
666
546
319
335
483
154
124
98
126
107
132
132
193
151
164
167
231
4,745
4,578
4,727
.4,822
4,823
5,305
5,871
5,992
5,901
6,522
7,128
7,302
4,843
4,677
4,892
5,021
5,150
6,670
6,143
6,324
6,376
7,013
7,523
7,562
164
149
118
172
135
174
189
207
163
192
221
235
72
116
114
111
181
174
125
178
152
90
95
137
90
72
68
85
74
85
98
106
90
104
106
127
2,988
2,576
2,633
2,793
3,007
3,150
3,472
3,589
3,642
3,761
4,095
3,530
3,054
3,162
3,328
3,648
3,792
4,168
4,292
4,414
4,533
4,875
3,057
2,990
3,139
3,676
4,070
4,466
5,095
4,978
5,558
422
657
465
378
549
372
590
838
741
417
686
882
87
89
87
83
92
122
135
134
145
136
132
151
342
300
270
301
305
333
294
294
290
285
310
361
708
788
781
778
755
585
472
452
399
307
227
218
9,411
7,803
7,971
7,957
8,258
8,763
8,916
9,020
9,203
9,462
9,671
547
181
188
143
91
35
24
13
17
9
S
0
NEW YORK CITY «
1932-Dec. 31
1933—June 30 •
Oct. 25
Dec. 30
1934—Mar. 5
June 30
Oct. 17
Dec. 31
1935—Mar. 4
June 29
Nov. 1
Dec. 31
1,562
1,255
1,215
1,200
1,402
1,591
1,689
1,798
2,047
1,983
2,203
2,338
843
671
31
5
600
649
623
591
595
567
680
591
OTHER RESERVE
CITIES
1932-Dec. 31
1933—June 30*.
Oct. 25
Dec. 30
1934—Mar. 5 . . . .
June 30.
Oct. 1 7 . . . .
Dec. 31
1935—Mar. 4
June 29
Nov. 1
Dec. 31
74
59
74
72
80
106
117
117
128
119
115
134
232
209
172
204
206
234
199
206
211
203
218
266
349
394
382
371
349
260
197
187
167
118
84
79
104
86
87
83
87
87
87
84
75
76
78
279
285
293
300
301
256
210
210
188
162
140
136
3,833
3,953
3,973
4,163
4,388
4,500
4,554
4,623
4,756
4,824
4,879
1
10
21
16
8
3,875
3,985
4,139
4,168
4,210
3,299
3,339
3,364
3,495
3,727
COUNTRY BANKS
1932—Dec. 31
1933—June 30»
Oct. 25
Dec. 30....
1934-Mar.5
June30
Oct. 17
D c1.
1935—Alar. 4_.
June 29
Nov. 1
Dec. 31..
263
228
230
254
281
300
345
'342
364
347
399
415
615
555
579
622
702
731
787
804
845
865
895
901
418
167
138
3
35
17
13
' Revised.
i Prior to Dec. 3*. xvou, eiuiuues oaianceswun pr
1933, includes time balances with UUU1<
domestic banks Ivate hbankshtot the textent that such balances were reported in "Other assets." Since Oct. 25,
"Other T S S i y
" O f t e assets." ™ """""'" " " "
*"° ° a D K S w h I c o n t a d a e amounted to $69,000^000 a n d I ^ T p t o to t £ t time werereportedto
tad^'i^
PriortoDec.31 f 1935,Includescashitemson
^
Includes "Due to Federal Reserve banks ftransit « » « £ S - ? K S S f f t i "Due to Federal Reserve banks (deferred credits)" flrior to Pec 31,
lessc^hTem^^^^^
s sssftsissri^flss?
and, prior to Dec 31, I t t
reIate to licensed banks only
Back fiOure*.-See BULLETIN for November 1935, p p . 724-726, or reprint, which may be obtained from Division of Research and Statistics.
273
FEDERAL RESERVE BULLETIN
AFML 1P36
REPORTING MEMBER BANKS IN 101 LEADING CITIES
[Monthly data are averages of weekly figures. In millions of dollars]
Open-market
loans
Loans to customers (except banks)
Total
loans
and
investments
Total
19,761
20,510
20,769
20,928
21,053
21,445
6,796
6,770
6,824
6,723
6,659
6,810
183
161
174
176
174
196
20,834
20,913
20,969
20,995
Feb. s—:::i 21,023
Feb. 12
21,082
Feb.19
21,100
21.006
Feb. 26
21,206
Mar. 4 . . . .
21,326
Mar. 11
'21,637
Mar. 18...
21,611
Mar. 25
6,743
6,749
6,716
6,681
6,666
6,663
6,662
6,646
6,758
6,793
6,842
6,850
175 2,079 1,137 3,352
180 2,074 1,145 3,350
178 2,066 1,143 3,329
171 2,064 1,142 3,304
174 2,064 1,140 3,288
175 '2,054 1,138 3,296
178 2,057 1,146 3,281
171 2.048 1,146 3.281
195 2,060 1,148 ' 3,355
202 2,067 1,146 3,378
200 '2,090 n, 146 '3,406
189 2,087 1,150 3,424
Date or month
AcTo
Loans ceptbroto
ances
Other
To
kers others Real- loans banks and
out- on se- estate
comto
side
merNew curi- loans custocial
mers 8
ties
York
paper
City i
bought
Investments
Loans
;o brokers in Total
New
York
City i
Reserve
Balwith Cash ances
Fedwith
in
eral vault lomesOther Retic
iecuri- serve
>anks >
Fully ties banks
Direct . guaranteed
U. S. Government obligations
TOTAL—101 CITIES
1935-March
November...
December.
1936—January
February
March
Jan.8
Jan. 15....
Jan. 22
Jan. 29
2,210
2,081
2,107
2,071
2,056
2,076
1,121
1,141
1,139
1,142
1,143
1,147
3,282
3,404
3,334
3,286
3,391
105
102
81
70
69
73
428
338
358
364
352
345
811
820
921
923
901
995
11,621
12,480
12,585
12,848
13,072
13,222
7,845
8,291
8,433
8,599
8,708
8,737
749
1,138
1,131
1,155
1,194
1,247
3,027
3,051
3,021
3,094
3,170
3,238
3,481
4,715
4,773
4,782
4,363
306
354
376
354
356
366
78
71
67
65
70
70
366
366
367
360
353
354
351
349
341
349
346
343
937
939
923
893
888
908
8,516
8,576
8,651
8,655
8,701
8,717
8,726
1,003
1,062
979
934
12,710
12,788
12,896
12,996
13,046
13,087
13,109
13,047
13,040
13,054
'13,387
13,407
8,634
8,588
% 865
^8,859
1,135
1,149
1,162
1,172
1,179
1,197
1,197
1,201
1,224
1,244
1,257
'1,265
3,059
3,063
3,033
3,169
3,166
3,173
3,186
3.156
3,182
3,222
3,265
3,283
4,707
4,778
4,764
4,843
4,825
4,741
4,772
4,788
4,723
4,632
'4,0S9
4,008
370 2,284
346 2,366
347 2.328
353 2,366
339 2,332
357 2,306
359 2,334
371 2,368
360 2,401
376 2,419
362 '2,287
3G6 2,230
216
155
171
173
161
158
642
800
897
895
873
960
4,517
4,718
4,712
4,799
3,189
3,313
3,320
3,346
3,430
3,479
278
378
379
399
434
519
1,050
1,027
1,013
1,054
1,105
1,147
1,668
2,424
2,430
2,493
2,434
2,138
909
175
912
174
893
173
866
168
162
860
163
160
160
155
159 1,027
160
946
158
898
4,733
4,740
4,808
4,913
4,953
4,974
4,990
4,957
5,046
5,169
5,160
5,203
3,315
3,311
3,391
3,422
3,430
3,438
3,431
3,451
3,522
3,466
3,476
387
395
401
413
420
434
436
444
479
511
537
549
1,031
1,034
1,039
1,109
1,111
1,110
1,116
1,082
1,116
1,136
1,157
1,178
2,431
2,490
2,509
2,561
2,487
2,418
2,498
2.533
2,390
2,225
1,989
1,949
7,104
7,762
7,873
8,049
8,103
8,077
4,656
4,978
5,113
5,253
5,278
5,258
471 1,977
760 2,024
752 2,008
756 2,040
760 2,065
728 2,091
1,813
2,291
2,264
2,275
2,298
2,225
7,977
8,048
8,083
8,083
8,093
8,113
8,119
a 090
7,994
7,885
'•8,227
8,204
5,201
5,265
5,283
5,264
5,279
6,287
£,288
5,259
5,183
5,066
'5,399
'5,383
'64
68
83
77
2,015
2,326
2,312
2,336
2,335
2,334
NEW YOBK CITY
1935-March
November..
December...
ln__
1936—January
February.""
March
7,564
7,828
7.921
7,937
8,061
8,391
2,138
2,092
2,095
2,036
2,025
54
59
59
59
61
63
775
727
745
730
734
750
131
123
125
128
130
135
1,178
1,183
1,166
1,119
1,100
1,141
51
7.900
7.906
7,940
8,000
8,028
8,072
8,094
8.048
8,296
8,457
8,410
8,400
2,041
2.044
2,035
2,025
2,020
2,020
2,029
2.031
2,097
2,095
2,096
58
59
61
58
60
61
62
61
62
62
64
64
735
730
728
729
731
731
1
738
736
742
744
758
755
127
128
128
127
127
127
134
134
135
135
135
136
1,121
1,127
1,118
1,111
1,102
1,101
1,095
1,100
1,158
1,128
1,138
1,141
42
36
31
28
33
33
33
31
'29
33
49
45
1935-March
12,197
November": 12,682
4,658
4,678
4,729
4,687
4,634
4,721
129
102
115
117
113
133
990
1,018
1,014
1,014
1,013
1,012
2,104
2,204
2,215
2,186
2,250
212
183
187
191
191
187
4,702
4,705
4.681
4,656
4,646
4,643
4,633
4,615
4,661
4,724
4,747
4,754
117 1,344 1,010
121 1,344 1,017
117 1,338 1,015
113 1,335 1,015
114 , 1,333 1,013
114 '1,323 1,011
116 1,319 1,012
110 1,312 1,012
133 1,318 •• 1,013
140 1,323 1,011
136 M,332 1,011
125 1,332 1,014
2,231
2,223
2,211
2,193
2,186
'2,195
2,186
2,181
- 2,197
2,250
•-2,268
2,283
191
192
194
192
191
191
191
189
186
190
186
185
Jan. 8
Jan. 15
:
Jan. 22
Jan. 29
Feb. 5.
Feb.12::.::
Feb.19
Feb.26
Mar. 4..""*"
Mar. i i . : : : : .
Mar. 18
Mar. 25
5,145
51
65
81
82
76
79
77
77
78
75
75
81
80
80
77
75
79
78
78
OUTSIDE NEW YORK
CITY
12,848
february::: 12,991
12,992
March
13,054
an. 8 . . _
Jan. i s
Jan. 22
Jan. 29..
Jb
Mar. 4
Mar. i i
Mar. 18.
Mar. 25.
12,934
13,007
13,029
12,995
12,995
13,010
13,006
12.958
12,910
12,869
'13,227
13,211
1,435
1,354
1,362
1,341
1,322
1,326
Revised.
[ Wns (se
„ - .if own acceptances.
reported prior to 1936 excluded a certain amount
i and note, see next page.
57363—36
5
748
754
761
759
759
763
761
757
745
733
720
'716
2,028 2,276
2,029 2,288
2,044 2,255
2,060 2,282
2,055 2,338
2,063 2,323
2,070 2,274
2,074 2,255
2,066 2,333
2,086 2,407
2,108 r2,100
2,105 2,059
255
295
316
301
305
315
1,950
2,245
2,230
2,260
2,256
2,257
314 2,207
293 2,283
295 2,253
300 2,291
289 2,251
305 2,226
309 2,254
317 2,291
311 2,326
324 2,340
313 '2,209
315 2,152
:; the amount excluded on Dec. 31,
274
FEDERAL RESERVE BULLETIN
APRIL 1936
REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued
[Monthly data are averages of weekly figures. In millions of dollars]
Cash
Items
reported as Other
In proc- assets
ess of
collection^
Date or month
Time deposits
Demand deposits
Total
assets
DeInterbank
mand
Interbank
deposUnited Certiits—adfied
States
For- Other
Total Domes- Foreign Govern- checks, Other justed » Domestic eign
liabiltic
etc.
banks ment
banks banks
ities
banks
Borrowings
Other Capiliabil- tal acities count
TOTAL—101 CITIES
807
821
796
807
838
3,483
3,614
3,518
3,503
3,505
3,512
4,889
4,898
4,892
4,888
4,892
4,889
4,889
4,900
4,911
4,931
'4,922
4,921
773
783
799
829
799
803
80S
820
866
877
795
815
3,501
3,500
3,506
3,605
3,503
3,504
3,507
3,504
3,512
3,511
3,513
3,513
4,999
5,766
6,818
5,779
5,985
5,901
606
586
569
540
537
542
292
325
332
314
312
348
1,457
1,458
1,459
1,462
1,463
1,463
197
197
162
162
161
144
137
131
131
131
198
197
359 3 5,980 * 5,704
398 6,115
5,719
341 6,099
5,785
294 6,211
5,907
271
6,209
5,935
339 6,340
5,957
345 6,312
6,028
314 6,318
6,020
438 6,265
5,950
486
6,315
5,953
361 6,158
5,831
352 6,177
5,869
544
543
541
535
637
532
637
542
537
543
541
546
310
309
313
326
301
305
315
327
370
377
318
326
1,460
1,461
1,463
1,464
1,462
1,463
1,464
1,464
1,467
1,461
1,461
1,462
2,726
3,079
3,058
3,126
3,176
3,173
567
335
427
474
402
482
148
176
201
189
176
171
577
482
489
482
495
490
2,026
2,056
2,059
2,041
2,042
2,049
3,095
3,148
3,143
3,118
3,176
3,160
3,179
3,183
3,273
3,248
3,105
3,065
505
502
449
442
437
403
387
379
380
379
'587
580
194
196
191
177
164
196
174
168
182
178
166
156
463
474
486
503
498
493
493
493
496
500
477
489
2,041
2039
2,043
2.041
2,041
2,041
% 043
&040
2,045
2,050
2,052
12,461
14,633
14,776
14,622
14,848
14,714
i, 167
,343
1,429
1,335
1,277
1,413
28,264
30,635
30,983
31,056
31,140
31,255
4,664
5,282
5,268
5,485
5,512
5,516
159
385
438
427
397
376
1,094
519
609
654
545
646
505
484
556
637
493
580
11,800
13,779
13,904
13,824
14,064
13,881
134
118
120
135
135
133
4,879
4,883
4,872
4,392
4,893
4,923
1,316
1,337
1,331
1,336
1,327
1,337
1,333
1,351
1,342
1,347
•1,318
1,329
30,782
31,276
31,070
31,096
31,002
31,221
31,158
31,179
31,469
31,646
'31,062
30,844
5,409
5,518
5,526
5,486
6,516
5,480
5,524
5.527
5,739
5,699
' 5,375
5,252
424
432
427
424
406
398
393
391
387
380
373
702
699
611
604
593
547
524
510
511
510
••785
777
553 14,391 13,673
594 14,712 13,770
532 14,635 13,836
471 14,749 14,017
435 14,712 13,991
535 14,924 14,061
519 14,853 14,112
482 14,903 14,090
620 14,783 13,966
664 14,923 14,041
527 14,613 '13,771
508 14,539 13,747
135
135
134
135
135
135
135
135
134
133
134
133
645
688
754
670
627
737
622
488
483
472
472
465
10,615
11,568
11, 730
11,706
11,774
11,859
1,938
2,203
2,210
2,359
2,336
2,343
138
354
403
347
527
184
182
180
143
164
357
308
355
343
317
409
636
794
655
598
545
722
629
612
753
84S
6S8
660
Jan. 8....
Jan. 1 5 Jan. 22..
Jan. 29-.
Fcn. 5—
Feb. 12..
Feb. 19..
Feb. 26-.
Mar. 4...
Mar. 11Mar. 18.
Mar. 25.
1,534
1,387
1,403
1,330
1,337
1,334
1,271
1,536
1,331
1,203
.,156
1,398
,260
1,295
1,437
1,546
1,369
1,300
1935—March
Novoraber
December
1936—January
February
March
463
478
473
473
469
472
471
475
471
468
457
463
11,562 *2,314
11,799
2,370
11,704
2,383
11,760
2,368
11,660
2,340
11,810
2,320
11,822
2,345
11,799
2,339
12,034
2,466
12,129
2,451
11,671 2,270
11,601 2,187
395
403
397
397
376
370
364
361
357
349
343
337
522
655
675
665
650
676
912
899
920
858
865
17,649
19,067
19,253
19, 350
19,366
19,396
636
742
076
605
611
676
853
859
858
863
858
865
862
876
871
879
'861
866
19,220
19,477
19,366
19,336
19,342
19,405
19,336
19,380
19,435
19,517
19,391
19,243
13
N E W YORK CITY
1935—March
November
December
1936—January
February
March
Jan. 8
Jan. 15
Jan. 22..
Jan. 29
Feb. 5
Feb 12
Feb. 19
Feb. 26
Mar. 4
Mar. 11
Mar. 18
Mar. 25
5,287
6,146
6,217
6,101
6,295
6,229
11
OUTSIDE NEW YORK
CITY
1935—March....
November
December
1936—January
February
March
Jan. 8
Jan, 15
Jan. 22
Jan. 29.Feb. 5
Feb 12
Feb. 19
Feb. 26
Mar. 4
Mar. 11
Mar. 18
Mar. 25
,
684
'681
640
7,174
8,492
8,659
8,521
8,553
8,485
6,801
8,013
8,086
8,045
8,079
7,980
133
118
120
135
135
133
4,273
4,297
4,303
4,352
4,366
4,381
8,411
7,969
8,597
8,051
8,536
8,051
8,538
8,110
8,503 8,056
8,584
8,104
8,541
8,084
8,585 8,070
8,518
8,016
8,608
8,088
•8,455 '7,940
8,362
7,878
135
135
134
135
135
135
135
135
134
133
134
133
4,345
4,355
4,351
4,353
4,355
4,357
4,352
4.35S
4,374
4,388
4,381
4,375
4
1
2
1
2
2
1
2
3
2
3
2
2
3
3
1
3
3
2>1
'Revised.
mount
i Does not include cash items in process of collection reported In balances with domestic banks. Prior to 1936, Includes a relatively small amu
of cash items on hand but not In process of collection.
« « t « easli
»Demand deposits other than interbank and U. S. Government, less cash Items reported as In process of collection and prior to 1936, less i*~Items reported as on hand but not in process of collection.
* See footnote 2 on p. 132 of BULLETIN for February 1936.
NOTE.-For description of jEures and w l l e r figures for some of the Items, see BULLETIN for November 1935, pp. 711-738. Beprintsol'thislartlete
1
may be obtained upon request from the Division of Research and Statistics. Sea also n. »7fi of BULLETIN fnr December 1935 and Annual Report
f be obtained upon request from the Di
1932 (tables 78-82).
275
FEDEEAL RESERVE BULLETIN
APBIL 1930
ACCEPTANCES, COMMERCIAL PAPER, AND BROKERS' BORROWINGS
BANKERS* ACCEPTANCES, BY HOLDERS (DOLLAR
ACCEPTANCES)
BANKERS' ACCEPTANCES, BV CLASSES (DOLLAR
ACCEPTANCES)
(In millions of dollars!
[In millions of dollars]
Held b y Federal Reserve
. banks
End of month
Total
outstanding
Held by accepting
banks
For
account
For
own of forOwn Bills
aceign Total bills bought
count corre-
Held
by
others
End of month
Total
Based Based
on on exim- ports
i—
ports from
into
U.S. U . S .
spondents
1033—November.
December..
768
764
699
442
273
223
328
219
138
WO
1034—January
Fehruary._
March
April.
May
771
750
685
613
569
534
516
520
539
562
561
543
567
581
576
536
507
480
472
483
503
516
517
497
255
266
252
21*
226
220
222
222
223
245
252
243
312
315
324
299
281
260
250
261
230
271
265
254
•95
516
493
466
413
375
343
321
322
328
363
387
397
485
452
423
391
356
317
296
292
301
339
368
238
217
197
178
162
154
148
. 145
148
178
182
183
247
235
226
214
193
163
148
147
154
161
175
185
30
41
43
22
19
26
24
30
27
24
29
29
3S4
377
353
340
181
172
168
31
37
J une
J
July
August
SeptemberOctober
November.
December..
1&35-January___.
February..
March
l
& ay
June
jmy
;
August
September..
October.....
November.,
December...
1936-January
February"!
1
172
108
81
70
59
53
42
37
35
45
44
46
Less than $500,000.
Sffii ^ S S J ^ S ^ S ^
( a n d heId by aeceptIng banks)
'
* « * figures.—SeQ Annual Report for 1933 (table 100).
From
From b a n k s banks, private
and trust com- foreign brokers,
banking
panies
agencies, etc.
End of month
1935
February."* ""*"""
April
825
816
773
1936
925
924
997
1935
758
750
706
1936
891
888
956
1035
67
66
67
October.,
^ecembe?"
805
793
80S
762
759
776
43
34
32
769
772
781
July_
741
750
759
23
22
22
792
846
938
772
821
907
20
25
31
<xk figures,—See Annual Report for 1934 (table 75),
..
..
758
764
93
04
200
207
278
277
4
4
180
182
1934—January . . . . . . . .
February.........
March———.
April
May.*
June .
_~_.
July
771
750
6S5
613
669
534
516
520
539
562
561
643
89
93
103
103
100
97
94
89
94
93
89
89
225
203
186
164
150
145
135
140
138
147
143
140
277
261
226
186
164
141
138
147
166
184
195
193
5
4
3
3
4
4
4
4
4
2
2
175
184
163
15S
152
143
144
141
137
133
127
110
516
493
466
413
375
343
321
322
328
363
387
397
86
92
101
103
107
102
99
102
102
106
105
107
133
123
122
114
100
94
86
81
77
75
84
94
179
166
134
96
76
57
47
52
66
93
111
110
3
3
2
2
2
2
3
4
4
4
3
2
114
109
108
99
91
89
80
83
70
82
84
84
384
377
108
114
94
94
96
81
3
2
84
56
September
October . . . . . . . .
November
December
1935—January
February
March——-.
April
June
July
--• --
September
October* . . . . . . .
November
February
.--....
Source: American Acceptance Council.
Back figures.—See Annual Report for 1933 (table 97).
COMMERCIAL PAPER OUTSTANDING l
(As reported by dealers. I n millions of dollars]
BROKERS' BORROWINGS '
^mftSSSST'JS o n . d e m * n d and on time In New York City reported b y
Jaemoers of the New York Stock Exchange. In millions of dollars]
Total
1933—November
December
Based
Based
on goods
on
stored In
goods
United
stored
States
In
(ware- Dollar foreign
house
ex- councredits) change tries or
or
shipped
shipped
bebetween
tween
domestic
foreign
points
points
1936
34
36
41
End of month
1932
1933
1934
1935
January
February—
March...—
108
103
106
85
84
72
103
117
133
171
177
182
April
May
June.-..'...-
108
111
103
•64
60
73
•139
142
151
•173
173
159
July
August
September..
100
108
110
97
107
123
168
188
192
164
177
183
October-—
November..
December—
113
110
81
130
133
109
183
178
166
1936
180
178
172
i Includes some finance company paper sold in the open market.
Back figures,—See Annual Report for 1934 (table 76).
178
176
FEDERAL RESERVE BULLETIN
276
APRIL 1936
FEDERAL RESERVE BANE RATES
OPEN-MARKET RATES
BATES ON REDISCOUNTS FOR AND ADVANCES TO
MEMBER BANES
S H O R T - T E R M RATES IN N E W YORK CITY
Federal Reserve bank
Rate in
effect on In effect beginning—
Apr. 1
Boston
New York
Philadelphia,..
Cleveland
Richmond
Atlanta
Chicago..
St. Louis
Minneapolis..Kansas C i t y Dallas
Ban Francisco-
Feb.
W Feb.
Jan.
2
IK May
May
2
2 Jan.
Jan.
2
Jan.
2
May
2
May
2
May
2
Feb.
2
2
[Percent per annum]
Advances under sec.
10 (b) of the Federal Reserve Act
Rediscounts and advances under sees. 13 and 13a of the
Federal Reserve Act
Previ- Rate in In effect beous effect on ginningApr. 1
rate
8,1934
2,1934
17,1935
11,1935
9,1935
14,1935
19,1935
3,1935
14,1935
10,1935
8,1935
16,1934
2H Sept. 20,1935
Oct. 10,1935
2
Nov. 2,1935
Oct. 19,1935
2
2H Sept. 23,1935
2H Sept. 14,1935
2H Sept. 20,1935
2H Oct. 3,1935
2H Oct. 29,1935
2H Aug. 26,1935
2H Oct. 8,1935
2H Sept. 20,1935
2H
2
2H
2
2H
2H
2H
2H
2H
2H
2H
2H
RATES ON DISCOUNTS FOR AND ADVANCES TO INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS
Average rate Average rate of
discount on—
on-
Prevailing rate o n -
Month or week
Stock-exPrime Prime Stock- change call
ex
com- bankloans
change
ers*
mercial
paper, accept- time
ances, loans,
4 to 6
90
90
, Re ,
months
days New newal
U. S. Treasury
bills offered
within period >
L82-day 273-day
bills
bills
1935
.10
.10
.17
.15
.13
.07
.10
.22
.20
.14
.09
H
M
H
H
H
H
l
l
1.00
.64
.25
.25
.25
.25
.25
.29
.75
.75
.75
.75
.75
.10
.08
.11
.75
.75
.75
.75
.75
.75
.75
.75
.75
.75
H-l
K-l
1.00
.63
.25
.25
.25
.25
.25
.29
.75
.75
.75
.75
.75
March
April
May
June
July
August
September
October
November
December....J
.10
.10
1936
Advances secured by
direct obligations of
the United States
(last paragraph of sec.
13 of the Federal Reserve Act)
Rate in
effect on
Apr. 1
Federal Reserve
bank
Discounts and advances
under par. 3 of sec. 13
of the Federal Reserve Act
Rate in
effect on
Apr. 1
Boston..
New York
Philadelphia
Cleveland
Pichmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City._...__
Dallas...
._.»„._
San Francisco
6
6
6
5
5H
5
6
6
5
6
6
In effect beginning—
Aug. 11,1932
Aug. 10,1932
Aug. 12,1932
July 24,1934
July 16,1934
Mar. 20,1934
Aug. 13,1932
July 10,1934
Aug. 10,1932
July 10,1934
Sept. 8,1932
Sept. 2,1932
In effect beginning—
Oct.
ZH Feb.
Oct.
May
4
Feb.
Mar.
4
Oct.
4
Feb.
4
Apr.
4
May
Mar.
4
Oct.
4
20,1933
8,1934
20,1933
11,1935
19,1934
17.1934
16.1933
January
February
March
Week ending:
Jan. 25
Feb. 1
_
Feb. 8
Feb. 15
Feb. 22
Feb. 29
Mar. 7
Mar. 14
Mar. 21
Mar. 28
.07
.08
.10
.10
.12
.13
i When no rate is shown no bills of the stated maturity were offered.
21.1935
15,1933
Back figures.—See Annual Report for 1934 (tables 54 and 55).
10,1935
12.1934 RATES CHARGED CUSTOMERS BY BANKS IN
19,1933
PRINCIPAL CITIES
•
NOTS.—For rates on industrial advances see p. 298.
[Weighted averages of prevailing rates]
BUYING RATES ON ACCEPTANCES
27 southern and
western cities
New York City
8 other northern
and eastern cities
1934
[Buying rates at the Federal Reserve Bank of New York]
1935
1936
1934
1935
1936
1934
1935
3.68
3.43
3.31
3.39
3.42
3.30
3.30
3.33
3.26
3.28
3.22
3.18
2.83
2.90
2.64
2.61
2.69
2.66
2.61
2.67
2.72
2.72
2.77
2.61
2.64
2.56
2.61
4.65
4.49
4.52
4.52
4.39
4.30
4.15
4.12
4.U
4.13
•4.08
3.98
4.08
4.02
4.05
3.99
3.88
3.78
3.87
3.79
3.75
3.75
3.63
3.67
3.62
3.63
3.60
5.40
£.39
5.40
5.34
5.28
5.19
5.07
5.05
5.04
5.05
4.93
4.92
4,95
4.84
4.85
4.80
4.79
4.76
4.58
4.63
4.51
4.55
4.51
4.55
Month
Maturity
1-15 d a y s . . .
16-30 d a y s . .
31-45 d a y s . .
46-60 days—
61-90 days—
91-120 days,
121-180 days
Rate in
effect on
Apr. 1
In effect beginning—
Oct. 20,1933
do..*...
.--.do
do
,
-do
.—do
|
—.do
,
Previous
rate
1
1
1
1
1
1
Hi
NOTE.—Rates on prime bankers' acceptances. Higher rates may be
charged for other classes of bills.
Backfigure*.—SeeAnnual Report for 1934 (table 61).
January....
February..
March
April
May
June
July
August
SeptemberOctober....
November.
December..
Back figure*.—See Annual Report for 1934 (table 57).
1936
4.47
4.51
4.44
277
FEDERAL RESERVE BULLETIN
APRIL 1936
STOCK PRICES l
BOND PRICES i
Preferred Common stocks (Index, 1926*100)
stocks
(industrial high- Total Indus- Rail- Utility
trial
grade)'
road
Other bonds»
Year, month, or date
U.S.
CorpoCorporate
rate
Year, month, or date Government
and
bonds» municIndus- Rail- Utility
ipal
road
(high- Total trial
grade)
20
._
1935-March
i&
June
July
August
September—..
October
November
December
1936—January __„....
February..^..
March
Mar. 4
Mar. 11
Man 18.
Mar. 25
«60
102.2
103.4
106.3
84.0
96.7
102.3
73.4
84.5
88.6
69.2
81.9
88.2
70.5
83.8
79.4
80.6
87.8
98.2
IOC. 6
107.0
107.1
107.2
107.5
106.8
105.3
105.3
105.7
105.8
99.9
100.0
101.2
102.2
104.2
104.2
103.1
101.9
103.5
104.5
84.6
85.5
87.1
88.3
89.2
89.9
90.4
89.8
91.1
92.5
85.2
85. &
87.3
87.3
83.5
89.0
89.4
89.8
90.8
91.0
74.7
75.0
76.5
79.3
78.8
79.6
80.6
78.4
79.8
83.1
93.6
95.5
97.4
98.4
100.2
100.9
101.0
101.0
102.7
103.1
106.3
106.7
107.2
106.5
107.8
108.4
95.3
97.2
96.6
92.5
93.0
92.1
88.6
93.6
92.7
104.7
105.1
105.1
107.3
107.4
106.9
107.1
1933 average
1934 average
1935 average
60
20
8-14
Number of issues
20
108.6
108.6
108.2
108.1
97.2
96.8
96.6
96.5
92.6
91.9
92.0
91.9
93.9
93.3
92.4
92.5
105.1
105.2
105.3
105.1
1
Average prices. Monthly data are averages of daily or weekly figures.
«Average price of principal outstanding issues of Liberty and Treasury
bonds, cow 14 Treasury bonds.
1
Prices derived from average yields.
«45 corporate and 15 municipal.
Source.—For U. S. Government bonds, Federal Reserve Bank of
New YoTk; for other bonds, Standard Statistics Co.
Back figures.—See Annual Report for 1934 (table 93).
N u m b e r of Issues..
20
421
104.8
120.7
133.8
72
1935—March
April
May
June
July...
August
.
September..
October
November..
December...
131.3
132.2
134.8
134.0
134.8
135.4
135.0
134.8
136.9
137.0
53
69
65
70
74
82
82
82
91
92
1936—January
February. _.
March
137.3
138.7
139.6
102
107
109
140.1
139.2
139.7
139.4
109
109
Mar.
Mar.
Mar.
Mar.
4
11..—
18
25
92
95
98
100
108
no
116
122
125
125
124
125
109
99
103
103
"~105
103
102
102
* M o n t h l y data are averages of dally or weekly figures.
* Average derived prices.
Source.—Standard Statistics Co.
Back figures.—See Annual Report for 1934 (table 93).
CAPITAL ISSUES
[Long-term; i. e., 1 year or more. In millions of dollars]
New issues
Domestic
BOND YIELDS *
U . S . Munic-I
Treas- ipal*
ury a (highgrade)
Year, month, or
date
Year or month
Corporate, by ratings *
Aaa
Baa
Aa
Number of issues...
7-11
15
30
30
30
1934 average
1835 average
3.31
3.10
2.70
4.71
3.95
3.16
4.49
4.00
3.74
5.23
4.44
4.13
6.09
5.08
4.62
7.76
6.32
5.81
July
::
August
September..
October
November.
December
2.69
2.64
2.61
2.61
2.59
2.66
2.78
2.77
2.73
2.73
3.27
3.25
3.27
3.25
2.95
2.87
3.08
3.16
3.02
2.97
3.71
3.72
3.74
3.72
3.70
3.77
3.80
3.79
3.75
3.72
4.15
4.19
4.18
4.18
4.15
4.15
4.11
4.10
4.03
3.67
4.72
4.75
4.66
4.62
4.54
4.57
4.56
4.57
4.53
4.44
6.22
6.14
5.99
5.86
6.77
fi.69
5.62
5.63
5.50
5.37
January
February.
March....."!
2.68
2.62
2.54
2.93
2.86
2.78
3.66
3.62
3.61
3.85
3.80
3.77
4.31
4.24
4.23
5.10
4.93
4.99
JJar. 4 . , . , . . .
2.55
2.55
2.54
2.52
2.77
2.77
2.78
2.78
3.61
3.62
3.62
3.61
3.77
3.77
3.77
3.78
4.21
4.21
4.22
4.24
4.93
4.93
5.00
5.02
1935-March
April./.
May...
Mar. 11
?*ar. 18....
Mar. 25
averages of daily or weekly
figures.
...
.
-—J by Treasury Department, of yields of aU outbonds except those due or callable within 8 years.
ors Service.
Batk
#*««*.—See A n n u a l R e p o r t for 1934 (table 94).
37
351
1933 average
1934 average
1935 average
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1935—March
April...
MayJune—
July-..
August
September.
October
November.
December.
1936—January...
February ~
March.-..
Total
(do- ,
Corporate
mestic]
State
and
and
for- Total* mu* Bonds
eign)
and Stocks
nicinotes
pal
6,314
7,556
8,040
10,091
3,089
1,194
720
1,386
1,438
108
90
86
53
134
152
177
144
116
231
122
107
130
5,189
6,219
9,420
6,004
2,860
1,165
708
1,386
1,438
108
90
86
58
134
152
177
144
116
231
115
107
130
1,344
1,475
1,379
1,418
1,434
1,235
762
483
803
884
100
64
41
44
79
36
132
56
82
124
50
89
60
Refunding
issues
(doFor- mestic
and
eign
foreign)
1,125
1,046
2,220
1,337
1,251 '1,858
2,961
1,422
671
5,924
711
905
1,503
949
229
311
533
29
20
344
12
120
826
• 0
35
0
3,284
69
0
180
0
0
413
5
0
3S4
6
0
454
0
0
510
28
0
284
0
259
0
217
0
261
0
226
287
7
61
195
0
638
0
46
2,667
3,183
2,385
2,078
2,980
1,240
305
40
144
334
8
17
39
14
27
29
42
70
30
48
1,087
1,474
iIncludes publicly offered issues of Federal land banks. Federal In*
termediate credit banks, Federal Farm Mortgage Corporation, and
Home Owners' Loan Corporation, not shown separately.
»Less than $500,000.
Sources.—For domestic issues, Commercial and Financial Chronicle;
for foreign issues (issues publicly offered) annual totals are as finally
reported by Department of Commerce, while monthly figures are as
compiled currently and are subject to revision.
Back figures.—Bee (for figures of new issues—annual and quarterly
FEDERAL RESERVE BULLETIN
278
APRIL 1936
TREASURY FINANCE
UNITED STATES GOVERNMENT DEBT
VOLUME AND KIND OP SECURITY
MATURITIES
[In millions of dollars]
[In millions of dollars]
Interest bearing
End of period
Total
(gross
debt)
Total
Bonds
Notes
Certif- Bills
icates
616
954
Interest-bearing debt outstanding Feb. 29,
1936
Noninter*
est
bearIng
Jane 1932...
Jnne 1933...
June 1934...
19,487
22,539
27,053
19,161
22,158
26,480
14,250
14,223
16,510
1,465
4,780
6,932
2,831
2,200
1,635
1,404
326
381
573
1935
March
April,
May
June
July
August
September.
October
November.
December..
28,824
28,669
28,639
28,701
29,123
29,033
29,421
29,462
29,634
30,557
28,043
27,766
27,738
27,645
27,923
27,956
28,432
28,380
28,617
29,596
16,238
15,394
16,157
14,936
14,576
14,715
14,300
13,998
14,008
14,672
9,567
10,236
10,471
10,501
11,065
11,036
11,929
11,029
11,957
12,274
160
158
157
156
254
252
251
250
249
247
2,079
1,978
1,953
2,053
2,028
1,952
1,952
2,204
2,404
2,404
901
1,056
1,200
1,076
989
1,081
1,017
961
1936
January
February
March
30,516
30,520
31,459
29,618
29,646
30,691
14,688
14,714
15,981
12,272
12,270
12,400
254
258
258
2,404
2,405
1,953
899
874
1868
782
904
»Includes $472,000,000 of Government liability for retirement of
national bank and Federal Reserve bank notes, as a result of deposit
of funds by banks; this compares with $815,000,000 on July 31,1935,
and $504,000,000 on Mar. 31,1935.
Total
Bonds l Notes
Certificates
12,400
258
Outstanding Mar 31,1936- 30,591
Obligations maturing:
1,351
Before July 1,1936
1,579
July 1-Sept. 30, 1936
959
Oct. 1-Dec. 31,1936
429
Jan. 1-Mar. 31,1937
1,320
Apr. 1-Dec. 31,19371,946
1938
2,762
1939
2,854
1940
1.511
898
1943,.
1,401
1945
1,519
1946
1,697
1947
1,036
1948
8,235
After 1948
Other obligations *
_.. 1,095
15.981
1.953
651
701
601
701
878
358
429
1,320
1,946
2,762
2,8.54
834
898
1,401
1,519
1,697
1,036
8,235
361
Bills
R77
258
476
i Issues classified as of d a t e of final m a t u r i t y ; most issues callable at
earlier dates; postal-savings b o n d s only issues callable before 1940.
a Includes U n i t e d States savings b o n d s a n d such issues as postal*
savings bonds, retirement-fund notes, a n d adjusted-service-certmcaie
series, in which special funds are invested.
SUMMARY OF TREASURY OPERATIONS
(On basis of daily statement of United States Treasury. In millions of dollars]
General and special funds
Receipts
Period
Miscellaneous All
internal other t Total
revenue!
Trust
acIncrease ordecounts, crease during
Expenditures *
etc8
period
Excess excess
of reof receipts ceipts
General»
Recovery and relief»
(+)or (+)or
exexpendi- pendi- General
InterGross
tures
est on All
Public! All
tures
fund
debt
)
public other Total Relief works other*
()
balance
debt
Total
Income
taxes
2,080
3,116
3,800
746
818
1,099
858
1,470
1,657
475
828
1,044
4,681
6,745
6,802
689
757
821
2,715 '1,277
1,984 4,004
2,327 3,655
1,844
2,342
590
793
1,046
326
29
23
254
23
24
231
30
19
228
35
43
412
1,116
1,267
1,536
189
116
137
133
165
219
143
153
142
153
138
132
291
600
803
518
86
83
86
72
91
56
47
53
74
52
55
43
48
4,796
4,909
4,968
546
611
542
740
673
508
563
624
487
591
456
496
570
453
560
538
90
118
24
119
8
27
101
104
1,481
1,744
2,000
169
213
181
197
318
193
217
234
216
237
197
164
226
1,323
1,715
900
203
192
178
258
114
158
142
145
. 127
97
64
43
11
FIscaFyear ending June:
1933
1934
1935
9 months ending:
March 1934
2,306
Marcb 1935..,.
2,863
March 1936....
3,100
1935—March
601
April
228
May
248
June.
464
279
July
299
August
___
421
September
235
October
234
November
434
December
228
1036—January
218
February
752
March
^ ^
10
107
19
31
131
2,861
2,605
2,430
288
279
336
425
347
289
245
286
262
247
241
301
214
K
645
1,020
816
1,263
75
45
78
82
83
«9
87
123
130
143
225
218
254
1,515
292
267
10
43
81
85
146
139
16
19
4
2
•49
40
-2,602
-3,630
-3,002
-2,490
-2,046
-1,868
+55
-383
-296
-277
-394
-210
-143
-389
-253
-157
-228
-277
4-181
+445
1
42
+3,052
+4,514
+1,648
+3,619
+1,764
2
2'2?
+1,025
2?
+365 + +291
Il49
-511
-30
+22
+63
-115
+419
-52
-87
-314
89
+324
1325
+42
-39
+172
+774
+923
-205
-41
-237
+3
1+1,099
+939
-
279
FEDERAL BESEEVE BULLETIN
APRIt. 1033
GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, FEBRUARY 29, 1936
fBased on compilation b y U . S. Treasury Department from reports received from organizations concerned. In millions of dollars]
Financed wholly from Government funds
ReconComstruction modity
Finance Credit
Corpo- Corporation
ration
Public AgriculWorks
tural
Admin- credit Other
istra- institution
tions
Financed partly from Government
funds
Farm
mortgage
institutions
Other
farm
credit
institutions
Total
Total
Home
mortgage
Other Feb. 29, Jan. 31, Feb. 28,
1939
1936
1935
Institut.ons
ASSETS
Loans and preferred stock:
Loans to financial institutions..
521
862
Home mortgage loans
Other agricultural loans
All other loans
1
3
22
820
Total loans and preferred
stock
Cash
United States direct obligations....
Obligations of Government credit
agencies:
Fully guaranteed by U. S
298
2,225
5
298
3
Production credit association class
A stock
Accounts and other receivables. „ .
AH other assets...
Total assets other than interagency *
32
4
2,265
LIABILITIES
Bonds, notes, and debenturesGuaranteed b y United States..
Other *
Other liabilities (including reserves)"
V, S. Government interests...
9
0)
311
—*-
41
5
3
145
15
0)
160
—
19
25
74
2
163
25
277
4
030
869
2,943
2,932
696
1,124
651
884
2,924
2,917
095
1,103
896
863
2,544
2,712
420
141
159
2,932
304
92
24
2,932
102
40
195
24
88
3,049
100
8
4
33
297
9,194
363
460
9,175
338
455
'8,434
337
467
2
85
2
11
101
217
28
226
33
138
137
4
68
*113
4
5
74
209
466
214
30
74
200
447
397
3,349
444 I 11,072
4,662
1,364
317
4,601
1,365
300
3,596
1,778
224
2
13
103
195
(9
(')
626 [ 3,351
0)
••994
77
155
••356
10,999 M0,084
*
1,407
«1,216
138
141*
3
<3,G02
7
99
3
26
2,762
144
3,107
23
6,343
6,266
5,598
253
Total liabilities other than
mteragency *_,
Excess ofg assets over liabilities, exP S * *J m t e r a g e n c y transactions.
Frivately owned interests
41
145
103
3
2,943
(l)
3
1
C)
w
1,988
310
160
165
600
589
145
253
2
241
23
421
168
4,728
343
4,734
344
'4,487
327
1,988
310
160
165
600
445
251
214
253
4,386
4,390
'4,159
j Less than $500,000.
* Excludes $758,000,000'of Federal land bank bonds held b y Federal Farm Mortgage Corporation,
includes $76,000,000 of unclassified assets of Federal savingsr and loan associations,
includes unissued bonds covering loans in process.
Revised.
NOTE.—For explanation of table and back figures for totals, see p . 220.
RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS
[Amounts outstanding. I n thousands of dollars]
Mar. 31,
1936 •
Mar. 31, Sept. 30,
1935
1935
Loans to financial institutions....
?,S\ ^5f red _ s . toc , k °* b a n k s and Insurance companies.
is, and debentures
Securities
Total loans investments, other than interagency
CaStaKSSP 1 ? 0 * 1 */
Credit
Corporation
Preferred « $> H P l o a n s t o R - *• ° - Mortgage Co
reierred stock of Export-Import b a n k s . — . !
Total all loans and investments
Preliminary.
Oct. 31,
1935
Nov. 30,
1935
Dec. 31,
1935
Jan. 31,
1936
Feb. 29,
1936
594,529
48,172
876,036
22,702
412,903
561,647
48,054
878,686
22,669
412,805
169,498
34,623
43,086
1,973
102,562
533,769
47,880
879,348
22,524
412,765
174,373
37,335
45,488
1,947
15238
524,127
47,909
871,760
22,246
396,250
147,563
40,013
50,025
2,283
154,001
497,289
47,573
877,679
21,994
393,712
154,947
43,686
51,790
1,858
124,689
474,596
46,730
861,749
21,910
390,202
156,592
46.4S8
61,853
3,876
154,242
i 423,061
46,820
850,986
21,873
389,239
160,951
48,287
53,420
3,917
151,593
2,232,463 |2,297,819 2,275,503 2,270,669 [2,256,177 2,215,216 2,208,238
35,215
35,819
45,074
50,108
52,046
56,276
72,263
39,552 258,739 263,746 265,694 267,541 297,091 297,449
15,952
15,523
14,721
13,555
12,477
11,844
10,000
10,000
10,000
10,000
10,000
10,000
12,500
34,723
297,279
16,725
10,000
727,688
48,329
872,037
20,277
380,199
132.360
12,738
21,292
53
17,490
2,573,649 2,566,854 2,508,876
j 2,356,777 2,634,678 2,613,772 2,610,324 2,593.513
l includes $163,000,000 of loans for distribution to depositors of closed banks.
. ^ F o r explanation of table and back figures, see p . 220.
32,310
34,176
2,275
105,225
FEDERAL RESERVE BULLETIN
280
APRIL
1936
FARM CREDIT ADMINISTRATION
LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS
•
Farm mortgage loans
byi-
[In thousands of dollars]
Federal intermediate
credit bank loans to
and discounts for—
Regional
agriOther
cultural
credit cor- financing
Land
instituporations,
Bank
Federal
tions,
land banks Commis- production
except
credit assioner
cooperasociations,
tives
and banks
for cooperatives *
End of month
70,738
616,825
664,886
686,606
696,834
716,243
733,489
742,897
754,502
765,319
777,214
785,898
794,726
802,782
810,811
1,232,707
1,915,792
1,961,275
1,974,952
1,975,737
1,998,228
2,016,825
2,023,859
2,036,067
2,047,390
2,058,693
2,065,620
2,071,925
2,066,308
2,058,512
1933—December.
1934—December.
1935— February .
March
April
May
June
July
August
September.
October....
November.
December.
1936—January- -February..
73,263
99,675
103,360
115,281
124,315
129,954
130,559
128,851
125,137
115,426
100,634
100,343
104,706
105,457
110,806
55,672
53,172
54,442
55,832
66,897
57,759
58,864
58,761
55,661
49,114
46,867
46,490
46,045
46,679
Loans to cooperatives b y -
EmerProduc- Regional
gency
agricultion credit tural cred- crop and
associadrought
it corpotions
loans
rations
27
60,852
67,910
81,685
03,025
101,269
106,688
110,030
109,020
101,427
92,573
91,522
94,096
* 96,240
103,002
144,636
87,102
82,342
79,988
78,351
76,508
72,765
68,670
64,582
59,225
51,656
46,220
43,400
41,489
40,510
89,811
110,186
125,124
134,597
' 161,178
' 192,476
•-196,250
•• 196,732
195,943
192,182
182,678
175,438
172,489
170,072
168,700
Federal
intermediate
credit
banks
15,211
33,969
34,132
31,873
30,050
26,420
10,028
5,023
5,539
4,755
4,084
3,221
2,731
2,241
2,117
Banks for Agriculcoopertural
atives,
Marketincluding Act
ing
revolving
Central
fund
Bank
18,697
27,851
29,445
28,025
30,119
31,741
23,937
25,037
31,455
43,140
48,179
51,246
50,013
46,566
42,720
157,752
54,863
49,687
49,880
49,761
47,456
49,422
49,106
46,497
46,714
46,074
44,683
44,433
44,286
44,155
* Revised.
* Does not Include loans by joint stock land banks, which are now in liquidation.
.
* Some of the loans made by the regional agricultural credit corporations and the banks for cooperatives and most of the loans made by tne
production credit associations are discounted with the Federal Intermediate credit banks. T h e amounts In this column are thus Included in tne
3 columns under those headings. Such loans are not always discounted in the same month In which the original credit is extended.
FEDERAL HOME LOAN BANK BOARD OBLIGATIONS FULLY GUARANTEED BY
THE UNITED STATES l
LOANS OUTSTANDING, BY INSTITUTIONS
[Loans in thousands of dollars]
AMOUNTS OUTSTANDING, BY AGENCIES
Home mortgage loans b y -
[In millions of dollars]
Federal savings and loan
associations *
End of month
Home
Owners' Number of
Loan Cor- associations
poration l
Loans
New
ReTotal port- associing ations
1932—December
1933—December....
105.920
1934—December.... 2,196.988
Federal
home
loan
bank
reported loans to
member
institutions 3
Converted associations
59
639
455
10,758
58,976
838
85,442
86,658
1935—March
April
May
June
July
August.
September...
October
November...
December-..
752
2,539,408
778
2,578,883
2,620,119
808
2,660.677
851
2,702,247 894
2,747.022 922
2,788,203
949
2,838,086
979
2,886,013 1.002
2,940,029 1,023
572
613
623
655
691
758
828
851
851
881
18,699
20,800
24,081
27,070
32,850
37,345
44,072
53,362
54,703
60,103
93,910
112,847
123,741
138.129
146,161
192,959
219,980
239,263
240,777
255,580
72,637
74,011
75,836
79,233
80,877
86,025
90,432
95,595
97.089
102,795
1936—January
February
2,984,438 1,044
3,014,423 1,061
898 60,457 269,186
*>S9S *64,092 '272,554
102,800
102,942
9 Preliminary.
* Loan? closed.
»No monthly reports prior to September 1934; they now exclude
largely new associations recently chartered and inactive associations.
'Includes loans to Federal savings and loan associations, all of which
are members, and a negligible amount to others than member institutions.
E n d of month
1933—December.
Total
ReconHome
Federal
Owners' struction
Farm
Finance
Mortgage Loan
Corpora- Corpora- Corporation*
tion'
tion
180
180
1934—August....
September,
October....
November.
December.
1,614
1,875
2,596
2,823
3,063
672
733
805
878
702
896
1,543
1,695
1,834
241
1935—January...
February..
March
April
May
June
July
August
September.
October....
November.
December.
3,300
3,480
3,590
3,660
3,728
4,123
4,205
4,248
4,369
4,421
4P46O
4,494
1,041
1,089
1,124
1,154
1,188
1.226
1,274
1,282
1,368
1,382
1,387
1,387
2,009
2,140
2,215
2,256
2,290
2,647
2,682
2,716
2,748
2,786
2,819
2,855
250
261
251
250
250
250
249
250
253
253
253
252
1936—January...
February..
246
248
249
249
253
253
HTOraisasgajE--j-afi
281
FEDERAL RESERVE BULLETIN
PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES
[Index numbers; 1923-25 average=100. T h e terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation]
Industrial production *'
Year and
month
1919
1920
1921
1922
1923
1924
1925
1926
_
1927
1928
1929
1930
1931
1932
1933
1934. „
1935
Construction contracts awarded (value) *
Factorypay
rolls *
Freight-car Wholesale
loadings * * comTotal
Residential
All other
Total
Minerals
modity
prices'
Unad- AdUnad- , Ad- Unad- , Ad- Unad- , Ad- Unad- Ad- Unad- , Ad- Unad- Ad- Unad- Ad- Unadjusted justed justed justed justed justed! justed justed justed justed justed justed justed lusted justed justed usted
Factory employment >
Manufactures
83
87
67
85
101
95
104
108
106
111
119
96
81
64
76
79
90
84
87
67
86
101
94
105
103
106
112
119
95
$0
63
75
78
90
77
89
70
74
105
96
99
108
107
106
115
99
84
71
82
86
91
63
63
56
79
84
94
122
129
129
135
117
92
63
2$
25
32
37
44
30
44
68
81
95
124
121
117
126
87
50
37
13
11
12
21
107
108
82
91
104
97
99
101
99
99
105
92
77
64
69
79
82
79
90
65
88
86
94
120
135
139
142
142
125
84
40
37
48
50
97
117
76
81
103
96
101
104
102
102
109
84
91
79
87
100
97
103
106
103
103
106
92
75
56
5S
62
63
139
154
93
97
101
93
104
100
95
97
95
86
73
65
66
75
1933
February...
March
63
59
66
78
91
100
91
84
76
72
75
June
July
August
September.,
October
November..
December..,
60
60
60
63
65
69
70
71
71
71
71
61
56
65
77
93
102
91
83
76
70
73
1934
January
February..".
March
72
74
74
73
74
75
75
76
78
77
77
77
88
92
100
90
88
87
84
80
82
81
81
90
ps~
June..
July... " "
August,I"l
September.
October.
November.""
December.."
1935
January.....
February _ .
March.
April
.,
May
June.
July...
August..""!
September
October..."
November
December."
1936
91
89
88
86
85
86
86
87
90
95
98
104
January
February....
96
90
86
84
84
86
89
91
95
98
104
05
97
91
92
90
79
88
97
84
85
92
100
95
96
84
81
87
93
92
101
'100
106
39
39
35
33
32
36
43
60
58
66
8$
101
103
110
,. fi?ures see BULLETIN for May 1934, pp. 27*0-271. For description ana Dacic ngures ior me seasonally nu
f "i^ d uy F * R ' B o a r d o f Governors see BULLETINS for June 1934, pp. 324-343, and December 1935, p. 888.
P
f n s t r i e s see pp. 308-309. Underlying figures are for pay-roll period ending nearest middle of month.
groups see p. 282.
* OI bureau of Labor Statistics; 1926-100. Index numbers for groups of commodities (also data by weeks) are given on p. 305.
P
aCfc
*f**"*.^See Annual Report for 1934 (tables 95 and 100).
57363—36
6
79
80
79
80
80
80
79
81
81
81
81
81
81
81
282
FEDERAL RESERVE BULLETIN
APHIL 1036
MERCHANDISE EXPORTS AND IMPORTS
[In millions of dollars]
Merchandise i m p o r t s '
Merchandise e x p o r t s '
Excess of exports
Month
1935
1936
1932
1933
1934
1935
1936
1932
1933
1934
1935
172.
163
191
176
163
185
198
M83
136
131
131
96
84
95
136
133
158
167
152
177
187
*193
15
23
24
25
IS
13
37
30
33
9
11
8
105
114
120
179
160
171
164
165
170
127
112
110
88
107
122
147
155
136
171
171
157
9
20
4
17
7
-2
33
6
34
-6
-5
13
107
109
132
144
131
160
162
172
191
173
172
199
79
91
98
143
155
147
127
120
132
177
169
162
27
17
34
1
-23
13
34
52
60
-4
3
37
153
139
132
193
184
193
206
195
171
221
269
223
105
104
97
151
129
134
130
151
132
189
169
187
48
34
35
42
56
59
77
44
38
32
100
37
1,611
1,675
2,133
2,282
1,323
1,450
1,655
2,048
288
225
478
234
1032
•• *
Anril
Xy
Juno
August
September
»•«».---*
October
December
-
Year
150
154
155
121
102
108
135
132
114
Ivlarch
1933
1934
1936
13
»-10
p Preliminary.
i Including both domestic and foreign merchandise.
» General imports, including merchandise entered for Immediate consumption and that entered for storage in bonded warehouses.
Backfigures*—-SeeBULLETIN for January 1931, p. 18, and for March 1932, p. 160.
FREIGHT-CAR LOADINGS, BY CLASSES
DEPARTMENT STORES—SALES, STOCKS
[Index numbers; 1923-25 average—100]
[Index numbers based on value figures; 1923-25 average=100]
1936
Feb.
Oct. Nov. Dec.
Jan.
Fob.
Month
Adjusted for seasonal variation
Total
Coal
Coke
___
Grain and grain products. _
Livestock
Forest products
Ore
Miscellaneous
Merchandise *
65
75
E2
>
59
39
35
34
73
65
64
67
60
70
47
42
56
70
64
66
67
61
65
44
40
46
77
64
71
74
68
62
39
45
58
86
66
70
78
73
70
38
42
62
79
64
Without seasonal adjustment
Total
Coal
Coke
Grain and grain products. _
Livestock
Forest products
Ore
Miscellaneous
Merchandise »
61
81
70
57
37
36
8
32
63
73
76
61
78
63
43
79
82
67
67
74
62
69
50
39
32
76
66
62
79
73
61
39
37
14
67
62
63
88
80
67
39
38
15
63
60
Index of stocks (end of
month)
Index of sales 1
Without
Adjusted
Without
Adjusted
for seasonal seasonal
for seasonal seasonal
variation adjustment
variation adjustment
1935 1936
1935
1936
1935
1936
1935
1936
January.
February
March
74
75
82
79
80
*88
69
61
71
63
66
*78
64
64
63
'66
66
April
May
June
73
76
80
79
76
76
64
64
63
66
66
61
July
August
September
80
78 " " "
81
55
61
86
61
62
64
57
60
67
October
„
November
December.,
77
81
84
86
91
145
66
67
65
Year
„_„„
79
57
61
65
58
62
ii i i
1935
72
75
61 ::::::
64
9 Preliminary.
*• Revised,
i Based throughout on figures of daily average s a l e s - w i t h
for changes from month to m o n t h in n u m b e r of Saturdays
* In less-than-carload lots.
Based on daily average loadings. Source of basic data: Association of
American Railroads.
Back figures —See BULLETIN for February 1931, pp. 10S-109
upon sales of changes in t h e date of Easter.
Back figures.-SeQ BULLETIN for April 1935, p p 254-255, and Annual
Report for 1934 (table 95).
283
FEDERAL KESBRVE BULLETIN
Area. 1930
INTERNATIONAL FINANCIAL STATISTICS
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars]
Europe
Total i
(50 coun-
End of month
tries)
1935—February...
March
.
April
May.
June... . .
July
August
September.
October
November.
December..
1936—January... _
February
March
United
States
Canada
Total (27
countries)
Austria
CzechoBelgium Bulgaria slovakia Denmark England
Germany
1
France
22,022
22,099
21,861
21 473
21,678
21,675
21,759
21,926
9 22,313
' 22,225
'22,402
8,527
8,567
8,710
8 853
9 116
9,144
9,203
9,368
9,693
9,920
10,125
135
L90
L87
189
188
188
193
LSfi
186
88
]L89
11,679
11,633
11,279
10 714
10 670
10,636
10,664
10,678
10,714
10,394
'10,358
45
45
45
45
45
45
45
45
45
45
'46
596
632
518
605
634
624
612
604
609
615
611
19
19
19
19
19
19
19
19
19
19
19
112
112
112
112
113
113
113
113
113
113
112
60
60
60
60
60
60
64
54
54
54
64
1,536
1,536
1,587
1 587
1 588
1,533
1,593
1,595
1,604
1,628
1,648
5,439
6,479
6,366
4 759
4 70S
4,726
4,756
4(770
4,773
4,388
4,395
35
38
83
33
35
30
33
'22,399
» 22,465
10,182
10,167
* 10,184
]L8B-
p 10,298
9 10,358
46
46
46
600
593
586
19
19
112
112
54
54
1,652
1,653
1,653
4,324
4,362
'4,348
31
29
'29
L86
]L84
32
33
33
M
Europe—Continued
End of month
Greece E[ungary
1935-February..
March
.
39
38
37
37
36
36
35
36
36
35
34
34
33
Sfcr
June...
July—:;
August
September.
October....
November.
December..
1936—January....
February
March..
23
23
23
23
23
23
23
23
23
23
23
23
23
23
552
553
439
440
427
380
402
365
401
427
438
270
270
61
61
61
66
75
75
84
84
84
84
84
06
96
97
97
97
97
97
89
86
84
84
455
463
456
519
519
519
519
493
463
419
379
J
351
351
»270
84
84
84
85
m
»68
105
106
106
106
107
107
103
103
108
109
109
740
741
741
741
741
741
741
734
734
735
735
159
160
160
161
161
162
162
165
174
180
185
536
560
446
390
391
421
446
443
453
455
454
»6ft
'63
109
110
735
735
726
194
200
454
472
493
68
68
63
63
68
68
6*
68
68
Total
(10
countries)
Ar
Copen - Chile lom- Mex- Peru
ico
tint
bia
1935—February
593
March...!' 596
April
697
May
616
June
. 611
July...
609
August.... 611
September. 613
October.... 636
November. 636
December.. "639
4<Xi
401j
4(XJ
42( )
42()
42( )
42( )
42( )
441
441
444
29
29
29
29
29
29
29
29
29
29
29
14
14
14
14
14
14
14
14
15
16
16
W36- J a n u a r y . . . PB39
February"! "641
444\
444
29
»29
17
18
i 8ee l i m i n a r y '
l
fi
BankV!tS?^
f
1
S
i
744
748
748
743
748
748
748
839
339
339
'839
>839
»839
'839
33
36
33
40
40
40
40
40
41
43
43
44
44
truguay
63
69
66
67
57
67
69
62
62
63
63
«3
»65
Africa
Asia and Oceania
Latin America
End of month
Yugo- 6 other
slavia countries
Portu- Ruma- Spain Sweden Switzer- U.S. 8.
land
1U
nia
gal
Nether- Norway Poland
lands
Italy
2
2 Total
A Total
New
other (7 Indiei Japan Java Zea- Tur- other (4 Egypt South other
Africa counkey coun- councoun- xmnland
tries tries)
tries
tries tries)
19
19
20
20
20
20
20
20
20
20
20
81
82
82
82
76
74
74
74
74
74
74
22
23
23
25
26
26
27
28
30
29
»30
SOI
800
802
797
798
797
800
$03
807
275
275
275
275
275
275
275
275
275
275
275
397
393
400
403
407
410
413
416
418
422
425
30
80
76
71
68
61
58
55
55
54
54
25
25
23
23
23
23
23
23
23
23
23
22
22
22
23
23
23
23
23
23
24
24
A
5
5
5
6
5
6
6
6
£
6
2fl
26
*>2n
P20
74
74
»30
*30
804
810
275
275
428
431
54
54
23
23
24
21
293
3
3 *303
8M
55
65
bb
55
65
65
55
65
55
65
55
285
30S
286
295
291
301
290
284
284
2*4
284
23
20
26
26
26
26
26
26
26
26
26
d
214
236
214
223
220
230
219
212
212
212
212
55
55
221
231
• 17
h
h
17
17
17
17
17
17
17
»17
Bevised.
20,1935. Figure as of that date is given for October and November 1935. The
'Figures for March 183S carriedforward for subsequent months for which no agures have been reported.
r March 183S carriedforward for subsequent months for which no agures have been reported.
f ^ ] p S | S K J i S ^ S S K t J s S A B m n m for May 1932, pp. 311-318, June 1933, pp. 368-37?; December 1934- p. 801; end
284
FEDERAL BESERVE BULLETIN
APBIL 1936
GOLD PRODUCTION
tin thousands of dollars]
Production reported monthly
Year or month
1933..
1933..
1934..
19351935—February..,
March
,
April
,
May
June
July
August
September.
October
November.,
December..
Estimated
world
production r
Total
South
Africa
Rhodesia
Far East
North and South America
Africa
ColomUnited
West Belgian
Africa Congo Canada States Mexico bia
$l**£5$io grains of gold Mo fine; f. e., an ounce of fine gold**$20.67
524,390 | 420,093 | 227,673 | 13,335 | 6,623 | 3,631 | 60,968 | 52,842 I 13,169 | 6,165 |
$J~J5$$i grains of gold Ho fine; i. e.t an ounce of fine gold*=$85
887,845 711,260 385,474 22,578 11,214 6,148 103,224 89,467 22,297 10,438
963,402 722,970 366,795 24,264 12,153 6,549 104,023 107,632 23,135 12,045
P23,87O
11,517
pi, 042,221 i>769,422 377,090 25,477 13,625 7,159 114,816 124,116
991
7,488
2,280
557~
70,989
55,505 28,717 1,920
1,097
8,027
76,716
60,433 31,015 2,009
1,078
587
8,732 9,203
1,836
925
76,511
60,028 30,301 2,052
1,106
594
8,599
8,573
1,750
1,015
82,715
62,932 32,072 2,177
1,162
627
9,423 9,623
1,048
945
86,485
63,002 31,089 2,101
1,095
588 10,002 9,588
1,166
857
94,913
67,030 32,458 2,150
1,095
615
9,988 • 11,793 2,181
1,001
96,062
67,178 32,667 2,155
1,152
631 10,303 10,603 2,532
1,125
96,949
68,066
31,472 2,009
U60
590
9,813 12,108 3,287
978
100,596
69,013 32,596 2,403
1,249
614 10,560 12,703
1,671
1,035
*94,454 * 65,871 31,671 2,205
1,181
614 10,261 10,883 P 1,120
981
*90,507 p 70,323 31,829 2,272
1,174
542 10,756 13,158 P 2 , 5 9 0
834
1936—January
February...
*84,567
*83,277
p 66,984
p 65,494
32,275 2,320 P 1,400
31,290 P 2, 275 p 1,400
592
9,714
*592 p 10,150
Austra- Japan
lia
Chile
India
3,009 | 16,790 | 8,968 [ 6,910
5,094
8,350
9,259
28,428
30,447
31,117
15,183
16,354
19,981
'701
1,005
895
651
1,113
546
536
1,088
506
937
913
1,439
1,468
2,637
2,533
2,623
2,635
2,844
2,939
2,923
3,279
3,423
1,386
1,619
1,568
1,717
1,844
1,610
1,669
1,674
1,779
1,785
1,866
P3,423
P3,423
p 1,750
»1,750
10,195 *2,100 ••1,335
9,650 »1,925 1,159
»913
»913
p Preliminary.
' Revised. Estimated world production figures have been revised largely on basis of new estimates in Annual Report of Director of Mint for
1935. Estimate for areas not reporting monthly in 1933 is that of Mint. Estimate of Mint for all areas not reporting monthly in 1934, other than
U. S. S. R., is used for 1934,1935, and 1936. To this fixed amount of $105,399,377 per year, or $8,783,281 per month, are added estimates for V. S. S. R.
No regular statistics for U. S. S. R. are available, but data irregularly given out by officials of the gold-mining industry afford a basis for estimating
annual production in 1934 as $135,000,000 and for estimating monthly production in thousands of dollars for 1935 as follows: January, $6,500; February, $6,700; March, $7,500; April, $7,700; May, $11,000; June, $14,700; July, $19,100; August, $20,100; September, $20,100; October, $22,800; November,
$19,800; December, $11,400; total, $167,400. On basis of total output scheduled for 1936 and assuming same seasonal movement as for 1935, production is estimated in thousands of dollars for 1936 as follows: January, $8,800; February, $9,000; March, $10,100; April, $10,300; May, $14,800; June,
$19,800; July, $25,700; August, $27,000; September, $27,000; October, $30,600; November, $26,600; December, $15,300; total, $225,000. All estimates of
gold production in U. S. S. R. are subject to considerable margin of error.
NOTB.—For monthly figures back to January 1929 and for explanation of table see BXTLLETIN for April 1933, pp. 233-35, February 1934, p. 108November 1934, p. 737, and February 3936, p . 107. For annual figures of world production back to 1873 sea Annual Report of Director of the Mint
for 1935, pp. 107-108. Figures for Canada beginning January 1935 are subject to official revision.
GOLD MOVEMENTS
[In thousands of dollars at approximately $35 a fine ounce]
United States
Year or month
1934 i
Total
net
imports
or net
exports
Net imports froin or net exports (—) to:
England
France Belgium Nether- Switzer- Canada
lands
land
1,131,994
1,739,019
499,870 260,223
'315.727 •^34,243
1934—December
.„..__
02,109
1935—January
149,392
February
122,772
March
13,003
April
148,608
May.
140,016
June
230,373
July
16,229
August
45,983
September
156,719
October
315,347
November
210,567
December
190,010
1936—January
45,643
February.....—,....
-16,635
March
5,480
22,430
19,649
85,577
14,592
63,424
45,766
-187
56
1,481
32,510
1,689 124,052
938 194,298
31
5
40
37,114
40,423
109,954 156,977
7,101 180,141
8,600 145,388
5,786
3,514
- 2 , 8 9 0 -17,180
-1,792
13
1935
L.8,902
94,348
^227,185
17,790
12,812
1,466
04,890
3,SS5
22,061
975
28,277
37,811
17,605
2,676
4,727
-3,421
-343
Mexico
Colombia
British
India
China
and
Hong
Kong
28,935
56,453
76,820
12,402 ^86,829 r 30,270 ^ 6 , 9 4 4
V 95,171 t43,667 r 10,899 W 5 , 2 6 8
8,077
339
629
12,091
5,346
4,449
10,968
3,053
8,734
5,770
5,398
15,069
9,368
fi,865
9,060
10,745
273
1,677
6,076
4,991
729
833
923
948
679
722
753
699
762
880
748
764
659
772
529
2,111
2,101
2,112
1,407
2
1,752
1,750
1
1,746
28
3,743
28
6,671
19,821
12,359
8,913
11,108
11,744
All
other
countries
2,874
5,083
2 7U
3,972
4 596
3,962
3,215
6,516
31711
6,1*1
4817
3,956
8^74
10,170
5,185
5 154
* Differs from official customhouse figures in which imports and export? for January 1934 are valued at approximately $20.67 a fine ounce.
285
FEDERAL RESERVE BULLETIN
APBIL 1935
GOLD MOVEMENTS—Continued
[In thousands of dollars at approximately $35 a fine ounce]
England
Net imports from or net exports (—) to:
Year or month
Total
net imports
or net
exports
1934
1935
United
States
France
716,269 -497,166
369,747 -435,502
South
Nether- Amer- Canada British
lands
India
ica
Germany
348,190
142,137
Bel*
giiim
121,017
-4,726
-13,685
-17,476
32,575
10,796
17,568
8,832
South
Straits Austra- Africa,
RhoSettledesia,
lia
ments
West
Africa
41,790
37,981
190
128
2.686
4,120
4,0T,fi
3,Ofi7
2,685
1,920
28
1,798
1,798
12
88
296
693
484
429
405
420
70
134
56
54
1,
5,375
4,148
3,602
3,414
2,842
1,995
37,231 -3,124
18.609 11,105
12,661
6,503
17,658 20,823
55,847 11,143
42,473
6,933
33,532 -8,731
35,612 -11,032
29,949 -8,683
44,995 -7,644
33,325 -4,353
42,442
7,265
5,958
56
63
1.889
2,037
39,852
26,454
•
1934—November.
December.
49,585
27,215
1835—January. __
February..
March
April
May
June
July
August....
September.
October...
November.
December."
-4,279
-36,566
66,557
36,629
146.289
118, 067
16,289
39,016
-36,158
18,286
40,811
1936—January...,
February..
41,974
38,649
-17,284
-22,489
27,026
1,769
4,270
-79,628
-74,127 -17,739
26,612
66
-20,533 -33,348
-3,247
69,128
-18,547
86,926
- 1 , 1 4 1 -5,719
-12,871 -5,697
- 8 1 , 032 - 5 , 663
-87,929 -2,739
-33,744
25,198
-22,075
910
-12,059
1,136
-550
310
53
266
209
-943
-4,416
-26
23
68
50
114
3,202
-3,253
-27
78
173
670
241
8,780
2,145
51
33,237
5,780
-593
-11,888
1,642
-36
-1,136
-20,204
-6,982
381
2,057
1,195
152
410
292
261
287
322
2,635
461
480
-591
-7,569
152
'311
138
92,737
22,020
2,910
2,797
4,863
3,198
26,316
16,565
2,970
424
2,696
3,570
2,831
449
335,253
404,295
18,495
23,469
AH
other
countries
'1,893
1,792
France
Year or month
Net imports from or net exports ( - ) to:
Total net
imports or
net exports ( - )
1934..
United
States
England
1035. -IIIIIIIIIII
-408,877
-817,309
-240,361
-909,665
-353,832
-120,053
1934-December;
37,733
-19,918
Germany
Italy
Netherlands
Poland
-132
4,220
210
-206
-6
-12
1,231
11,975
7,9S9
111,292
44,621
-3,431
1,295
-3,418
236
-1,172
1,100
4,702
300
-629
-137
-1,379
1,667
321
—1,931
-290
606
900
2,397
719
8,110
6,992
-411
-940
74,995
21,183
-1,371
7,227
65,437
-232
25,755
-96
-15,376
-50,314
648
-28,566
-77,803
-223,070
414
14
-23,688
-157,153
-258,554
-76,217
-2,931
8,670
14,676
38,332
-53,283
-110,834
-13,150
4,905
8,811
-72
-15,060
-117
115
1
3
-474
-594
-190
-1
-1,990
-700
-9,178
11
-595
-994
-2,497
-3,851
-26,395
-109,195
-56,265
-45
-1,148
27,224
4,597
-8,235
-10,133
-406
620
2,093
27,417
5,561
89,062
35,433
9,834
249
-201
3,907
-885
-1,101
-650
25,759
-132
5,221
-11,245
357
40,393
23,375
-890
2,364
-4,695
-2,740
2,636
-221
-40
-5
36,598
18,299
-739
-43
Switzer- All other
land countries'
-17,276
2,493
91,021
195,369
7,796
-32,479
19,118
99,395
-195,876
-393,551
-12,206
50,770
26,482
-68,693
-246,615
-71,450
South
Africa
23,831
176,420
-17,669
-186,937
-3,114
31,036
-13,592
-8,738
1935—January
February"
March.
April....::
May
June
July...::;:
August
September
October..
November
December..
1936—January p^
February p"
Belgium
746
10,241
1,995
2
681
391
-ISO
-482
-917
-898
7,539
1
9,482
-127
-330
* Preli
' Rev*sed. France.—"All other countries'* revised to exclude Poland and South Africa, now given separately.
« * £ to?£?r? BTitain>-** some cases the annual aggregates of the official monthlyfiguresdiffer somewhat from the revised official totals pub-
286
FEDERAL RESERVE BULLETIN
A r m 1936
GOLD MOVEMENTS—Continued
(In thousands of dollars at approximately $35 a fine ounce]
Netherlands
Germany
Ytnr or month
Net Imports from or net exports ( - ) to:
Totaf
Total
net
net
imports
Imports
All
or net
or net
Switzother
exports England! Franco Nether- erland U.S. coun* exports
lands
S. K.
tries'
163 85,390
-90,920 -109,386 -42,007 -28,114 1
42, WO
5,180 13,225 7,3941 0,838 6,376
1034.
1W3.
1,206
28:
295
1035-Jnn...
Ffb._
Mar..
Apr.May.
Juno.
July..
Aug..
Sept..
Oct...
Nov..
Dec..
735
6,666
2,870
9,525
4,769
4,355
10,506
7S0
2,001
IWfr-Jnn...
Feb..
-1,307
112
-2,581'
C7
-49
-19
-50
-206
1,057
4,501
33]
If
-87
1
745i
41S|
275|
3,972
142
7,058
5
£91
- 9 3 -2,510
45 -2,051
-189
647
-9,431
-9,270
1834.,
1035..
lQW-Dec...
Jan.._
Feb...
Mar...,
AnrilIVIay...
June...
July__
AUK....
Sept....
Oct
Nov.. .
Dec....
1936-Jan....,
Teb....
Total
net
imports
or net
exports
62
110
64
617
-20,966
277
667
-21,909
-9,4361
12
218
241
71
91
517
94
54
131
-8]
771
63
16,967
10,425
3,435
England
France
Belgium
77
-93
-210
249
-1,3301
10,564
-149
1,761
7,6641
170
-40
162
-862
-462
-86
-160
-2,046
-239
-561
-95|
-161
-159
1,066
20,081
-289
3,379
9,563
2,900
133
275
11,248
192 14,291
-339
3
1
27i
-197
-136
-862
71
113
-8
-23
9
-114
-86
-52
—11
-4741
British India
Net imports from or net exports ( - ) to:
United
States
78
—312]
—18,300] -15,605 - 3 , 2 2 1
-352
-2,495
510
37 -1,299
-120,492 -97,632 -20,890
44
-5,080
-2,810 -1,562
6,100)
-14,797 -19,259
1,375
-26,102 -29,2151 15,702
-4,514
-152
-276 -37,290 -40,868
2,861
- 9 3 -13,080 -10,373
514
45 38,746 -3,026 20,084
4,749
5,334
230
144
Switzerland
Ye ar or
month
All
Bel- Switz- other
gium erland countries'
GerFrance many
United
States
3,934, -122,664 -46,040, -31,038 -78,610 25,716 9,285 -4,784
905 -198,5491 -221,245 18,397 -41,260 - 5 , 1 4 2 48,004 -1,257
1,162
83
-23
75
-107
8; -162j
26
237
12
1,014
sioj 4,113
17
693
480 4,014
2,532 1,116
67
680
671
810
Net imports from or net exports ( - ) tor
Italy
-46,065 -12,784 -45,955 -29,235 18,397 19,431
-230,7SS
64 -64,858 -181,725 -13,940 25,542]
-l.WOi
-417 -4,143
226 2,280
-4,125
-17
- 2 1 6 -4,344
472
-15,025
- 5 1 -2,108 -16,117
225 2,689
-17 f S30
, -6,839 -16.148
415 4,734
-139,633
324-31,618 -107,021
2,110
-63.229
. - 1 7 , 8 7 8 -38,514 -5,072
303
-5,640
49
549 -2,684, -8,651
-74
1,417
3
1,610
2,998
9,328
64
1.273
4,
5,845
107 3,017
-24
16 3,312
1,367
163 1.0S5
SSI
1,343
93*
—332 -3,227
9
1,349
- 2 , 0 3 8 -4,166
4,724
—2,330
2,462
—195 -6,783
0,496
-518 -5,705
1,821 0,612
6,571
All
Neth- other
ercounlands tries
Total
net
Imports
or net
exports
Net imports from or net
exports (—) to:
United
States
England
All
other
countries
Change in:
Gold
producEe- Private
tion
in [ serves] holdings hi
in
India
India* India*
173 -219,671
^-150^472
2,580 1,500 -230,7201 -82,183 ••-144,1851 »--4,352 11,222
342 -6,795 -161,872 —17,403 '-144,206 ' - 2 6 4 11,393
114
-15
-218
198
-00
428
-202
207
1,041 -4,475
- 4 0 9 -760
153 -352
262 -3,455
519 3,430
-766
184
241 -2,344
-49
825
- 1 3 9 -682
-137
1,377
-23,255 '-7,457 ••-15,588
-13,809|
'-9,785
- 5 5 9 -12,888
095
f-210
-16,334 '-1,249 '-15,293
••208
-17,746 - 2 , 4 0 6 - 1 4 , 1 3 3 - 1 , 2 0 7
-18,439
-214
-18,225
-3,675
-3,831
155
-6,604
653
-6,558
-3,824
-4,078
254
-22,383
-818
10 -21,675
-25,464
-18,922
-233
-11,400 -2,648 - 9 , 1 1 7
365
-11,160 -1,330 -10,032
202
-14,540 -1,573 -13.199
232
-10,303 -1,199 - 9 , 2 4 3
139
—362
946
903
055
. 038
054
037
058
061
049
974
053
966
P966
-15,385
-16,844
-51
38
-21,425
-24,503
-10,451
-10,186
-JJS
»-12,843
#-8,819
» Preliminary.
now give* separately, mhertoni,.-"W
other comi
287
FEDERAL RESERVE BULLETIN
A r i a 1836
CENTRAL BANKS
Assets of banking department
Bank of England
(Figures In millions of pounds sterling)
Gold (in
issue
department)i
Cash reserves
Coin
Notes
Discounts
and advances
Liabilities of banking department
Note
circulation
Securities
Deposits
Bankers'
1935-Jan. 30..
Feb. 27.,
Mar. 27.
Apr. 24..
May 29..
June 26.,
July 31..
Aug. 28..
Sept. 25.
Oct. 30...
Nov. 27.,
Dec. 25-.
192.4
192.5
192.5
192.6
192.6
192.7
192.8
193.4
193.6
194.7
197.6
200.1
77.5
75.1
71.1
59.4
62.2
55.9
44.5
. 53.8
55.4
54.8
56.3
35.5
9.3
6.2
5.6
5.8
5.3
10.2
10.8
12.9
12.4
11.2
9.5
8.5
92.7
92.0
99.0
97.4
96.7
108.6
100.7
93.5
95.4
98.2
08.4
94.7
374.9
377.4
381.4
393.2
390.4
396.9
403.3
399.6
398/2
399.9
401.3
424.5
99.0
95.5
96.6
93.1
88.0
102.4
75.7
96.9
87.2
82.5
00.9
72.1
1936-Jan. 29..
Feb. 26..,
Mar. 25..
200.5
200.6
200.6
63.3
60.7
54.1
18.8
11.0
5.0
94.0
96.2
97.0
397.1
400.0
406.5
100.0
10(5.2
83.6
(Figures In millions of francs)
Foreign Domestic Short-term
bills
exchange
Government securities
1935-Jan 25
Feb. 22...
Mar. 29
Apr 26...
May 31 „
June 28...
July 26...
Aug. 30...
Sept. 27..
Oct. 30...
Nov. 29
Dec. 27...
82,014
82,040
82,635
80,933
71,779
71,017
71,277
71,742
71f952
71,990
66,191
66,296
962
961
1,017
1,066
2,150
1,210
1,240
1,236
1,232
1,262
1,335
1,328
4,003
3,998
4,170
4,280
7,137
8,021
7,301
7,575
8,060
8,373
11,005
9,712
-Jan.31..
Feb. 28...
Mar. 27 v,
65,223
65,789
65,586
1,324
1,309
1,297
9,210
9,758
12,052
Other
securities
Negotiable securities
Note
circulation
Other
assets
Government
3,751
3,619
Gold
gt si
. 30
. 3i;
3l
. 31
543
192
371
1,090
573
5,837
5,833
5,833
5,805
fi,805
5,805
5,805
6,800
5,300
5,800
5,800
.5,800
7,970
7,914
8,074
7,967
8,691
7,999
8,077
8,212
8,023
7,939
8,032
7,879
81,636
81,917
83,044
82,352
82,776
82,099
81,128
82,240
82t399
83,306
82,447
81,150
3,703
2,771
2,933
3,241
3,244
3,051
2,862
2,826
2,862
16,473
16,323
16,213
15,145
12,315
10,969
11,090
10,666
10,843
10,647
9,361
8,716
969
932
671
3,350
3,250
3,324
5,708
5,708
5,708
8,724
8,186
(*)
81,503
81,239
83,196
2,798
2,854
2,838
8,038
8,706
8,435
20
10
937
735
, 692
2,024
1,962
1,943
1,054
2,003
2,013
2,105
2,062
2,050
2,059
2,136
2,113
2,119
2,134
0)
Liabilities
Securities
Other
Security
Treasury bills
loans Eligible
bills ' (and
Foreign
as note Other
checks)
exchange
cover
Other
Other
Note
circula- Deposits liabilities
tion
3,620
3,656
3,799
3,861
3,732
3,879
3,833
4,000
4,144
4,058
4,096
4,498
81
188
66
87
86
89
52
54
73
66
78
84
441
437
427
373
338
337
337
340
346
345
346
349
319
328
330
328
324
324
324
324
324
316
315
315
837
697
701
739
775
781
814
781
770
868
922
853
3,660
3,617
3,664
3,711
3,810
3,895
3,878
4,032
4,143
4,159
4,186
4,235
822
923
922
952
770
819
743
743
774
728
806
1,032
900
860
830
837
824
833
845
860
879
911
013
023
3,884
4,026
4,201
72
.72
56
349
343
315
315
321
861
771
4,093
4,177
4,267
679
652
768
014
782
. - F o r explanation of table see BULLETIN for February 1931, p p . 81-83, and July 1935, p . 463.
Other
Other
liabilities
Reserves
(Figures in millions of reichsmarks)
1935-Jan. 31
feb. 2s".
Mar. 30
Apr. 30.
May 31.
June 29.
{uy 31.
Aug. 31
Sept. 30
18.2
18.2
18.3
3,149
3,080
3,119
3,094
3,371
3,277
3,171
3,103
3,093
3,141
3,267
3,253
Assets
Reichsbank
18.2
18.2
18.3
17.7
17.8
18.0
IS. 1
IS. 2
13.3
17.7
17.8
18.0
Deposits
Loans on—
Gold
15.9
8.8
18.0
42.1
40.7
41.2
39.6
36.0
38.8
38.5
36.5
39.0
33.6
38.5
37.1
36.7
35.5
37.0
20.9
19.4
20.1
* 7.6
23.1
16.2
24.4
9.4
19.5
26.2
19.7
12.1 .
Liabilities
Assets
Bank of France
Other
Public
Other
liabilities
288
FEDERAL RESERVE BULLETIN
A P R I L 1936
CENTRAL BANKS—Continued
[Figures as of last report date of month]
1930
Central bank
February
January
National Bank or Albania (thouSAIUIS of francs):
Gold
7,550
Foreign exchange
16,860
Loans and discounts
3,218
Other assets
4,094
Note circulation
11,789
Demand deposits,
9,211
Other H.'tbllities
tbllitie:
11,331
Central I lank of tho Argentine
Republic > (millions of pesos):
Gold at h o m o . . .
1,221
1,224
Gold abroad and foreign ex141
ehanpc
130
Negotiable Government bond.*..
190
105
Other allots
,
145
144
Note circulation..
9S9
9S7
Deposits:
Member bank
*
,
405
3S3
Government
219
241
Other
11
4
Other liabilities
47
48
Commonwealth Hank o f Australia
(thousands of pounds):
Issue department:
Gold and Knglteh sterling... 15,994 15,994
Securities
35,173 35,421
Banking department:
Coin, bullion, and cash
881
London balances
18, 575 14,609
Loans nnd discounts
14,014 16,701
Securities
35,707 35,957
Deposits
C9.GS0 68,101
Note circulation
, 47,045 47,295
Austrian National Bank (millions of
schillings):
Gold.
243
242
Foreign bills
,
82
74
Domestic bills
,
220
222
Government debts
,
624
624
Note circulation
931
929
Deposits
233
225
National Hank o f Belgium (millions
of bclttas):
Gold"
3,359
3,400
Domestic and foreign bills *
1,201
1,241
Loans to State
160
1C0
Noto circulation..
4,072
4,101
Deposits
830
832
Central Bank o f Bolivia (thousands
of boliviano?):
Gold at home and abroad
21,294 20,544
Foreign exchange
7,752 12,033
Loans and discounts
7,943
7,630
Securities:
National G o v e r n m e n t . .
3SS.723 338,723
Other
2,877
2,984
N o t e circulation..
149,819 146,973
Deposits
229,490 235,933
Bank of Brazil (millions of milrcis):
Cash
264
Correspondents a b r o a d . . . „
307
293
Loans and discounts
2,885
2,900
Note circulation
20
20
Deposits
3,116
3,016
National Bank of Bulgaria (millions
of leva):
Gold
1,591
1,591
N e t foreign exchange in reserve.
-100
-96
Total foreign exchange
440
493
Loans and discounts
1,226
1,304
Government obligations
2,671
2,671
N o t e circulation
2,113
2,177
Other sight liabilities
I
2,131
2,198
* B a n k commenced operations M a y 31,1935
iM&SWSfcf*1
8ad
1035
1936
Decom
ber
February
7,556
17,705
3,207
5,463
12,243
9,557
12,131
7,122
22,557
2,532
2.319
13,617
10,498
10,415
1,224
129
235
141
982
482
219
6
41
15,994
39,182
15,708
20,314
689
12,938
13,428
35,764
61,997
51,295
938
20,339
17,660
30,123
77,007
47,050
242
112
225
624
976
216
242
33
234
624
902
212
3,457
1,293
162
4,117
931
2,531
671
340
3,647
237
19,708
9,066
7.9S4
10,074
5,777
14,022
388,727
3,074
145,946
231,759
277,131
3,495
95,776
167,865
277
311
3,113
20
3,299
341
189
2,886
20
2,778
1,591
-118
683
1,520
2,671
2,497
J907
1,647
-87
365
919
2,176
2,195
Central bank
Febru- January
ary
Decem- Februber
ary
Bank o f Canada* (thousands of Canadian dollars):
Gold
180, 565 180,253 180,509
Sterling exchange
219
96
26
United States exchange
4,004
8,355
9,768
Advances t o Government
3,466
2,196
Government securities:
2 years or less
26,125 24,785 30,873
Over 2 y e a r s . .
82,540 80,900 83,410
Other assets
5,045
5,132
9,714
N o t e circulation
84,605 87,979 99,677
Total deposits
212,006 213,864 200,319
Chartered banks
186,933 178,739 181,636
Government
33,293 17,917
Other liabilities
7,659
6,202
5,798
Central Bank o f Chile (millions of
pesos):
Gold and foreign exchange In reserve
142
142
80
Loans and discounts
80
706
Government debt
706
N o t e circulation
567
570
Deposits..
297
298
Central Bank o f China < (millions of
yuan):
Gold
31
53
Silver
120
209
123
Foreign exchange
99
39
D u e from domestic banks
107
154
Loans and discounts
170
253
Securities
314
Other assets
74
45
180
N o t e circulation
225
267
Deposits—Government
274
213
Bank
297
56
Other
71
140
Other liabilities
129
Bank o f the Republic o f Colombia
Gold at home and abroad *
Foreign exchange «_
Loans to member banks
N o t e circulation
Deposits
National Bank o f Czechoslovakia
(millions of koruny):
Gold
„
Foreign balances a n d c u r r e n c y . .
Loans and advances
N o t e circulation.
Deposits
"
Danish National Bank ( m i l l i o n s o f
kroner):
Gold.
Foreign bills, e t c
"II"
Loans and discounts
N o t e circulation
""
Deposits
Bank o f Danzig (thousands of"
gulden):
Gold*
Foreign exchange of the reserve"'.
Other foreign exchange
Loans and discounts
Note circulation
III™
Deposits
'_
Central Bank of Ecuador (thousands
ofsucres):
Gold?
Foreign exchange
II"
Loans and discounts
Note circulation
Deposits
142
43
713
503
346
22
118
10
33
80
173
61
91
195
48
24
140
30,974
4,168
1,208
41,532
31,880
29,502
4,921
1,458
40,072
33,240
27,637
4,585
4,375
43,189
29,949
10,495
2,263
6,748
35,357
24,398
2,690
73
914
5,210
534
2,691
82
1,253
5,208
920
2,690
81
1,345
5,761
411
1,060
5,253
975
118
19
73
375
67
118
16
73
365
118
16
78
384
133
15
77
363
20,761
1,631
5,491
15,785
27,698
2,990
20,756
2,117
4,391
17,884
27,772
2,741
20,744
2,052
7,264
16,945
29,208
3,293
20,010
1,478
84
21,358
37,647
1,764
28,939
9,859
41,519
46,691
19,571
36,565
12,540
43,170
48.811
14,973
14,831
51,370
44,705
27,390
" > " ~ W hidings « of Mar. » malued on basis of 75 percent
of former gold parity of belga (see
» Bank commenced operations Mar. 11,1935.
< Items for issue and banking departments consolidated
i By law°ofKDeceDI8' lSS, gold* in Vault re'?3uS™ra?e $ of9 8 W8331 SUCres per gram of fine gold
1635
289
FEDEBAL EESEEVE BULLETIN
AfEIl 1936
CENTRAL BANKS-Continued
{Figures as of last report date of month]
1936
Central bank
February
National Bank of Egypt l (thousands
of pounds):
Gold
Foreign exchange
Loans and discounts
British, Egyptian, a n d other
Government securities.._
Other assets
Note circulation
Deposits—Government
Other
Other liabilities
Central Reserve Bank of El Salvador (thousands of colones):
Gold
1935
January
1938
Decem- Februber
ary
6,545
4,947
6,417
6,545
4,246
7,146
6,545
4,051
4,690
38,322
6,162
22,216
8,647
23,351
8,180
38,935
5,238
23,253
8,765
22,385
7,709
32,752
4,713
19,290
8,594
16,674
8,194
12,818
3,957
Loans and discounts
798
Government securities
_.._ 6,996
Other assets
1,923
Note circulation
15,667
Other sight l i a b i l i t i e s — / . . . / . . 7,531
Other liabilities
3,295
12,791
2,774
980
7,012
1,368
14,668
6,878
3,381
12,740
1,237
1,107
7,025
656
13,396
6,028
3,342
11,919
2,396
419
8,008
1,395
16,057
4,702
3,378
34,130
2,046
22,471
41,278
18,594
9,393
2,464
34,121
884
23,313
39,683
17,562
11,930
3,181
34,118
1,563
22,896
39,955
15,787
11,521
2,689
Foreign exchange
I-I-.I.III
Bank of Estonia (thousands of
krooni):
Gold
_'„
Net foreign exchange
__
Loans and discounts
..
Note circulation
Deposits—Government"
Bank. ._
Other....
ft ,
Bank of Finland (millions ~oYmark"
Kaa).'
Gold
Balances abroad and "foreign"
credits
Foreign bills
*
Domestic bills"
Note circulation 7
other sight liabilities";;:::::::::
c e ( m m i o n s o f df
mas°
achGold and foreign exchange.
Loans and discounts.
Government o b l i g a t i o n s " ; ; : / / "
Note circulation
27,739
5,598
14,144
37,710
8,551
7,780
2,393
485
472
323
1,287
79
711
1,342
752
1,267
82
669
1,381
623
1,268
115
660
1,372
294
3,358
4,873
3,281
5,521
5,401
251
3,399
4,662
3,281
5,614
5,064
247
3,490
4,834
3,281
5,988
4,784
229
3,936
1,903
3,262
5,221
3,652
79
33
526
81
90
393
122
104
163
79
34
519
81
86
391
119
104
160
79
33
587
77
96
417
147
104
174
79
20
569
52
55
353
84
115
199
444
673
244
587
1,671
444
662
255
578
1,668
444
662
255
571
1,721
278
202
271
194
51
5
7i
f
353
108
::/:
pttojsight Hbiiitfv;;:::::/":
489
1,263
85
766
1,445
589
53
3
59
348
114
212
180
20
52
SQ exchange./
Hungary
oreig^bTlisVetc:/
ftK5Ko?discounts &*
Loans and
A d y a n c e s to Treasury"""
Gold.
Other assets..
Foreig^bTlisVet:/"'""
Note circulation./
Deposits....
Certificates of indebtedness 7
Miscftllaneons liabilities 7
%*?k
° f India>
^
Issue _.„
whm
Gold at home and a b r o a d . . .
Sterling securities.....
Indian Gpv't securities
Rupee coin... .
Other assets.
Deposits—G
71
282
120
meats consolidated.
. 1,1935.
* ABrf«7nV i
7
» foreign exchange Includes fo]
^gncuitural and urban loans in process of liquidation.
K
n JUI
1935
1035
Central bank
February
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 discounts
Note circulation
Deposits
Bank of Latvia (millions oflats):
Gold..
Foreign-exchange reserve
Bills
Loans
„
Note circulation
Government deposits
.
Other deposits....
Bank of Lithuania (millions of litu):
Gold
Foreign exchange'
..Loans and discounts *
Note circulation
Deposits
.„
Netherlands Bank (millions of florins):
Gold
Foreign bills
Loans and discounts
Note circulation
Deposits....
Reserve Bank of New Zealand
(thousands of pounds):
Gold..
Sterling exchange
Other assets—
Note circulation
_
Demand deposits
Bank
Government
Other liabilities.....
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 and foreign exchange
Bills
Note circulation
Deposits
Bank of Poland (millions of zlotys):
Gold
Foreign exchange
Loans and discounts
Note circulation
Other sight liabilities
Bank of Portugal (millions of escudos):
Gold
Other reserves
Discounts and advances
Government obligations
Note circulation
Other sight liabilities
National Bank of Rumania (millions of lei):
Gold
Foreign exchange of the reserve.
Loans and discounts
Special loans *
.-.
State debt
511
1,222
397
1,657
Janu- Decem- February
ber
ary
369
506
782
506
1,453
404
504
893
746
1,7G7
404
470
720
404
1,186
363
80
2
65
156
22
2
64
153
24
2
71
157
25
117
1
64
174
42
46
7
50
58
37
38
103
46
7
51
59
37
36
110
46
6
52
60
38
31
110
46
7
59
73
38
46
111
41
22
89
106
47
38
20
94
105
47
18
95
104
46
46
9
102
93
60
680
2
154
750
130
2
157
757
108
643
2
173
809
50
811
1
159
857
155
2,802
23,113
2,012
9,855
16,445
10,671
5,676
1,628
2,802
22,104
1,997
10,064
15,215
10,253
4,510
1,623
2,802
21,399
1,871
10,721
13,737
9,679
3,696
1,614
3,002
21,811
2,264
185
41
203
346
4
83
185
37
202
339
185
36
223
348
3
80
135
40
227
311
6
70
47,646
58,154
84,488
17,254
43,227
60,373
73,183
26,814
444
27
866
506
IS
673
940
230
445
17
750
979
163
445
21
754
959
198
1,007
210
9,327
16,205
5,954
10,247
1,545
905
476
298
1,049
2,049
862
10,884
9
5,399
2,688
10,956
10,838
55
5,292
2,709
10,827
10,802
92
6 417
V
2,727
10,775
10,414
92
6,276
2,893
9,799
290
FEDERAL BBSERVE BULLETIN
APBIL 1936
CENTRAL BANKS—Continued
[Figures as of last report date of month]
1030
Central bank
1936
1935
February
National Bank or Rumania—Con.
Other assets
Note circulation
Demand deposits...
Other liabilities
South African K c s o r y e Dank
(thousands of pounds);
Oold
Foreign bills
Domestic bills
Note circulation
Deposits—Government—
Bank
Other
Hank of Spain (millions of pesetas):
Gold....
Silver
Balances abroad
Loans and discounts
Note circulation
Deposits
Dank of S w e d e n (millions of
kroner):
Oold
Foreign assets
DomesticdlscountsjandadvancesGovernment securities
Other nssets
Koto circulation
Total deposits
Bank
Government
Other liabilities
Swiss National Bank (millions of
francs):
Oold
Foreign balances and bills
January
11.751
22,127
8,479
11,081
11,490 11,479
22,298 23,127
8,466 7,665
10,449 10,500
9,308
21,225
8,152
9,400
28,074
5,200
277
14,251
1,015
32,834
1,378
26,801 25,723
5,512 11,871
359
321
14,206 14,133
2,523 2,436
28,519 28,435
2,157 4,474
25,939
6,788
121
11,477
3,998
24,980
3,329
Decem- February
ber
2,253
094
280
2,352
5,197
1,180
2,253
697
281
2,156
4,789
1,390
2,255
6S9
280
2,183
4,800
1,294
2,269
691
284
2,330
4,590
1,051
440
607
45
29
177
756
442
237
174
100
429
612
44
29
168
734
447
257
158
100
408
641
51
29
150
786
394
181
180
97
351
557
50
144
111
659
454
1,445
13
15
101
1,794
7
Central bank
February
Swiss National Bank—Continued
Loans and discounts..
Note circulation
Demand deposits
Central Bank of the Republic of
Turkey (millions of pounds):
Gold
Foreign exchange
Loans and discounts
Investments
.._.__
Other assets
Note circulation
Deposits
Other liabilities
Bank of the Republic of Uruguay
(thousands of pesos):
Issue department:
Gold and silver
Note circulation
Banking department:
Cash reserves
Loans and discounts.*
Other assets
Deposits—Demand
Time
Ministry of Finance
Others
Other liabilities
National Bank of the Kingdom of
Yugoslavia (millions of dinars):
Gold
Foreign exchange
Loans and discounts-.
—
Advances to State
Note circulation
Other sight liabilities
1935
Jan*
uary
Decem- Februber
ary
234
1,274
466
221
1,275
405
295
1,366
401
1,330
556
30
16
17
188
24
166
37
72
30
14
24
188
20
171
34
29
10
29
187
22
170
30
79
28
14
5
188
28
162
29
71
41,091
82,865
41,091
81,886
41,091
81,850
176,569
38,615
93,794
55,827
31,615
41,595
40,035
94,524
52,425
29,965
41,332
37,204
98,455
50,774
28,602
40,836
50,365
101,064
40,640
32,965
39,339
22, 021
20,737
72,107
22,857
20,698
72,131
25,057
20,820
71,117
40,587
1,480
325
1,676
2,272
4,930
1,472
1,461
343
1,711
2,271
4,848
1,504
1,432
364
1,781
2,271
4,890
1,386
1,260
164
1,828
2,288
4,322
1,241
» Liabilities of banking department. (See Bulletin for December 1935.)
BANK FOR INTERNATIONAL SETTLEMENTS
[In thousands of Swiss francs]
Assets
1936
1935
Feb. 29
Gold in bars
Cash on band and on current account
with banks
Demand funds at Interest
„
Rediscountable bills and acceptances
(at cost):
Commercial bills and bankers' acceptances
Treasury bills
Jan. 31
29,879
32,831
11,008
8,502
14,092
17,228
27,584
2,338
4,224
147,953
211,768
144,988
206,718
Total..
Time funds at Interest—Not exceeding
3 months..—.Sundry bills and investments:
Maturing within 3 months:
Treasury bills_.
Sundry investments
Between 3 and 6 months:
Treasury bills.
Fin
Sundry investments"
Over 6 months:
Treasury bills
Sundry Investments.,
Total.
J..
Other assets:
Guaranty of central banks on bills
w
\
sold
\
Sundry items
.
.
Total assets...,
Feb. 28
163,500
194,896
358,396
41,771
42,541
53,322
49,745
32,003
30,751
54,037
13,424
42,422
12,221
63,590
36,917
42,459
44,317
35,148
231,174
38,331
34,823
20,307
36,247
230,714
220,718
6,150
6,235
6,138
6,091
6,084
3,481
1935
1936
Liabilities
Feb. 29
Demand deposits (gold)
-
Short-term deposits (various currencies):
Central banks for own account:
DemandTime—Not exceeding 3 months.
Total
—.
Central banks for account of others:
Demand
Time—Not exceeding 3 monthsOther depositors:
D e m a n d s . . . . . . . . . . .._„__.._»
Time—Not exceeding 3 months.
Over 6 months
Long-term deposits:
Annuity trust account
........
German Government deposit...—.
French Government guaranty fund.
French Government deposit (Saar).
Total
.-.
Capital paid In
Reserves:
Legal reserve fund
Dividend reserve fund
General reserve fund
Other liabilities:
Guaranty on commercial bills sold.
Sundry items
Jan.31
Feb. 28
23,948
21,005
10,921
45,915
113,752
159,668
39,691
108,420
14H. I l l
27,987
107,759
9,605
2,980
10,201
2,976
2,446
201
31,840
687
154,434
77,217
61,930
2,031
295,611
154,670
77,335
61,930
2,031
295,966
293,371
125,000
125,000
125,000
3,324
5,845
11,690
3,324
5,845
11,690
2,672
4,866
9,732
6,150
43,023
6,138
41.912
6,084
42,312
^648,018
154,294
77,147
61,930
291
FEDERAL RESERVE BtTLLETIN
APKIL 1938
COMMERCIAL BANKS
[Figures are as of end of month, except those for England, which are averages of weekly figures]
Assets
England
Cash
(Figures in millions of pounds sterling) reserves
Money at
call and Bills disshort
counted
notice
Liabilities
Loans to
customers
Securities
Deposits
Other
Total
DemandM
Time*
Other
liabilities
10 clearing banks
1935-June
July
August
September.
OctoberNovember.
December.
1036—January...
February..
217
219
213
208
204
214
221
220
221
143
145
149
147
141
147
159
155
151
244
274
287
299
297
293
322
337
288
624
615
615
619
626
621
605
601
601
780
778
768
766
777
778
784
791
804
235
215
205
205
213
214
231
218
218
2.004
2.019
2,013
2,024
2,036
2,040
2,091
2,092
2,053
1,072
1,084
1,068
1,080
1,064
1,080
1,140
907
899
899
903
921
918
924
239
227
224
221
224
227
231
230
231
2,164
2,123
1,166
1,125
937
940
242
242
11 clearing banks *
1936—January
February..
228
229
159
157
815
828
630
629
346
295
227
227
Liabilities
Assets
France
(4 large banks. Figures in millions of
francs)
1935-June
July
August
September
October
November
December
*_..
Cash
4,151
4,343
4,211
4,075
3,996
3,909
3,739
Due from! Bills discounted
banks
17,949
17,464
17,226
17,585
17,692
16,529
16,141
2,308
2,151
2,399
2,364
2,413
2,759
2,484
Loans
7,902
7,702
7,592
7,450
7,505
7,718
8,025
Other
assets
Deposits
Total
Demand
Time
766
718
673
28,756
27,932
27,916
28,016
28,101
27,406
26,859
29,521
2S.649
28,589
28,684
28,800
28,110
27,553
1,313
1,383
1,414
1,489
1,620
1,751
1,900
Own
acceptances
704
694
194
185
151
195
156
139
y..
August
October...
November.
December K
1936-January.,.]
February...
134
123
Due
from
banks
Bills dls-| Loans
counted
Securities
Deposits
Other
Total
363
360
341
341
314
316
2,264
2,284
2,221
2,035
2,167
2,162
2,953
2,886
2,899
2,918
2,889
2,884
991
090
1,019
1,061
1,033
1,027
991
992
996
993
983
5,567
6,525
5,464
5,382
5,408
5,376
307
2,294
2,276
2,847
2,900
1,003
987
958
945
5,460
5,472
Demand
Time
Credits Other
obtained liabilifrom
ties
banks
2,546
2,482
2,419
2,436
2,451
2,435
3,021
3.043
3,045
2,947
2,957
2,941
758
716
705
701
682
686
2.480
2,409
2,980
3,063
652
1935-May.
u
i ?e_.~II_
July
I
August
September./.
October....
November
December. Til
anuary.
e b " "
N
Security
loans
abroad
and net Securities
due
Other
from
Security loans
foreign
loans and disbanks
counts
Deposits payable in Canada excluding fnterbank
deposits
•
204
207
209
228
223
235
229
228
«220
224
971
955
955
965
945
874
155
127
134
142
157
132
151
141
150
151
1,005
1,018
1,031
1,041
1,103
1,116
1,137
1,155
1,207
1,265
Other
459
468
460
473
464
476
453
485
472
444
Note
circulation
117
122
114
123
123
121
124
111
112
118
Total
2,064
2,039
2,032
2,065
2,131
2,151
2,174
2,180
2.144
2,152
Demand
617
613
604
631
687
685
645
635
OTK.-For back figures and explanation of table see BULLETIN for October 1933, p p . 639-646, and June 1935, p p . 388-390.
1,417
Liabilities
Entirely in Canada
Cash
1,436
1,455
1,454
1,463
1,463
1,449
1,423
Assets
Canada
3,790
4,106
3,995
4,043
4,158
4,226
4,399
Liabilities
Assets
Germany
(5 large Berlin banks. Figures In mil- Cash
lions of reichsmarks)
reserves
312
293
257
236
268
329
337
Other
liabilities
Time
1,447
1,426
1,423
1,434
1,444
1,465
1,474
1,486
1,499
1,517
Other
liabilities
702
728
734
744
748
745
745
761
292
FEDERAL RESERVE BULLETIN
APRIL 1936
DISCOUNT RATES OF CENTRAL BANKS
[Percent per annum]
Central bank of—
Date elective
Kng- France Gerland
many
In effect July 1,1035.
July 5
July 6
July !8
J«ly 10
July 25
July 26
Aup. 3
12
Sept 9
Sept. 17
Oct 17
Oct. 22
AUK.
•
2
5
4
4
3ft
4
«*
3
5
-.—
6
5
3ft
4
fi
6
5
4
2
"'
"""
8VS
5
5
3
2ft
4
Central
bank of—
Hate
Apr. Date effective
Nov. 16,1933
Albania
Argentina—.
ZH Mar. 1,1936
Austria
July 10,1935
Belgium
May 16,1935
Bolivia
July 5,1932
6 Aug. 15,1935
Bulgaria
Canada
6
Mar. 11,1935
Chile
3H* Jan. 6,1936
Colombia...
July 18,1933
Czechoslovakia
3 Jan. 1,1938
Danzig
5
Oct. 21,1935
Denmark...
Ztt Aug. 22,1935
Ecuador
4
Nov. 30,1932
El Salvador.
5 July 5,1934
England
2 June 30,1932
Estonia
4H Oct. 1,1935
Finland
Dec. 3,1934
France
Mar. 28,1936
5
Germany...
4 Sept. 22,1932
Greece
Oct. 14,1933
7
Hungary
Aug. 29,1935
4
i»
5
6
5
--
Nov. 14
Nov. 15
Nov. 22
Nov. 2
G
Jan. 2.1930
Jan.10
Jan. 16
Feb. 4
Feb. 7
/.
Mnr. 28
In elTcct Apr 7,1930.
Italy Nether- Switzerland
lands
Central
bank of—
India
Italy
Japan
Java
Latvia
Lithuania—Netherlands.
New Zealand
Norway
Peru
—.
Poland
Portugal
Rumania
South Africa
Spain.
Sweden
Switzerland.
Turkey
U . S . S. R _ .
Yugoslavia—
Hate
A p , Date effective
3
5
3.29
6
m
6
5
5
4ft
5
2H
5H
3
5
Nov.
Sept.
Apr.
July
Jan.
Apr.
Feb.
28,1935
9,1935
7,1936
1,1935
1,1933
1,1930
4,1936
Aug.
May
May
Oct.
Dec.
Dec.
May
July
Dec.
May
Mar.
Mar.
Feb.
1,1934
24,1933
20,1932
26,1933
13,1934
15,1934
15,1933
15,1935
1,1933
3,1935
2,1933
22,1927
1,1935
Changes since Mar. 1: France—Mar. 28, u p from Z\i to 5 percent;
Japan—Apr. 7, down from 3.65 to 3.29 percent.
6
MONEY RATES IN FOREIGN COUNTRIES
{Percent per annum]
England (London)
Rankers'
acceptances
3 months
Germany (Berlin)
Treasury
bills, 3
months
Money for
1 month
1&3 5—February
March
June
July
Aupust
September
November
December
1035—February..
March
April
May
June
July
August
September
October...
November.
December.
1936—January...
February..
Netherlands (Amster
dam)
2.12
2.12
2.14
2.56
5.72
4.06
3.06
2.85
2.71
4.00
3.89
3 50
3.50
3.50
3.50
4.17
4.87
5.00
5.00
5.00
293
FEDERAL RESERVE BULLETIN
AFSI1 1936
FOREIGN EXCHANGE RATES
[Average of noon buying rates for cable transfers in New York. In cents per unit of foreign currency]
AusAustria Belgium
tralia
(schil(belga)
(pound) 1 ling)^
Year or month
Argentina
(peso)i
1929
1930
1931
1932
1933
1934
1935
1935-March
April
May
June
July
August
September.
October
November.
December..
1936—January....
February...
March
95.1274
83.5050
66.7375
58.4433
'72.8009
33.5793
32.6585
31.8033
32.2220
32.5572
32.8687
33.0262
33.1204
32.8563
32.7140
32.8152
32.8542
33.0742
33.3291
33,1346
Year or month
Egypt
(pound)
1929
1930
" '
1931
1932
;;:;;•
1933
1934
" "
1935
""
1935-March
498.0689
498.6002
465.1111
359.5406
434.3908
516.8549
502.6007
489.7472
495.9246
501.1845
June
505.9839
508.3151
July
509.5780
August
September. 505.5597
503.2065
October
; 504.9614
November..
December.. 505.3533
1Mo
£08.8316
1936—January
F e b r u a r y . " 512.7045
March
;
Year or month
1929..
1930...::;
1931
1932
1933.
»34-.:;::;
1S35_.
1935-March
Api
May l ; : ; : ,
June...
Jull y _
u
August,;;;;
September
October...;!
November
aSSS?
February";
March
480.83
458.60
351.50
279.93
337.07
400.95
388.86
378. 56
383.52
387.55
391.28
393.31
394.52
391.52
389.61
390.90
391.28
394.50
39R.06
396.01
14.0575
14.0891
14.0227
13.9599
15.4478
18.7930
18.8309
18.8827
18.7898
18.7680
18.8821
18.9148
18.9405
18.8453
18.8117
18.7753
18.7828
18.8320
18.9708
18.8548
2.5160
2.5169
2.3875
1.5547
1.8708
2.2277
2.1627
2,1099
2.1315
2.1543
2.1782
2.1859
2.1907
2.1742
2.1645
2.1719
2.1745
2.1890
2.2063
2.1928
New
Zealand Norway
(pound) s (krone)
Poland
(zloty)
393.69
391.86
393.74
394.32
397.53
401.15
399.08
Bulgaria
(lev)i
11.8078
10.7136
7.0290
7.1223
7.9630
8.4268
8.2947
8.2363
8.2578
8.2797
8.3122
8.3146
8.3657
8.3378
8.3791
8.3792
8.3902
8.4167
8.3803
8.4871
0.7216
.7209
.7163
.7193
1.0039
1.2852
1.2951
1.2878
1.2725
1.2756
1.3070
1.3149
1.3332
1.2935
1.3239
1.3404
1.3309
1.3446
1.3380
1.2902
Germany
(reichsmark)
Greece
(drachma)
23.8086
23.8541
23.6302
23.7492
30.5179
39.3751
40.2575
40.3722
40.2638
40.2472
40.4072
40.3538
40.3456
40.2278
6.5892 40.2251
6.5862 40.2251
40.2167
6.6251 40.3966
6.6810 40.6870
6.6338 40.4389
1.2934
1.2959
1.2926
.8320
.7233
.9402
.9386
.9399
.9354
.9340
.9423
.9442
.9437
.9384
.9391
.9390
.9383
.9424
.9509
.9457
13.9124
13.9524
13.9285
13.9137
17.8996
23.2867
18.4241
22.7564
16.9430
16.9461
16.9393
16.9117
16.8878
16.8618
16.8468
16.8946
16.8565
16.9355
17.0416
16.9787
England Finland France
(pound) (markka) (franc)
485.6879
486.2126
453.4990
350.6067
423.6821
503.9302
490.1761
477.6211
483.6812
488.7755
493.4922
495.7659
496.9880
493.0654
490.7834
492.4950
492.8772
496.2696
500.0469
497.0675
483.21
468.22
415.29
320.19
340.00
402.46
391.26
380.91
385.85
389.90
393.54
395.65
Brazil
(milreis)i
26.6827 11.1940
26.7598 11.2051
25.0546 11.1970
18.0039 11.1823
21.4292 14.4135
25.3161 18.8460
24.6268 18.8824
24.0265 18.9611
24.2975 18.8617
24.5563 18.8426
24.7910 18.9146
24.9062 18.9574
24.9482 18.9567
24.7710 18.8450
24.6570 18.8361
24.7399 18.8249
24.7605 18.8486
24,9316 18.9311
25.1214 19.1315
24.9735 18.9623
3.9161
3.9249
3.9200
3.9276
5.0313
6.5688
6.6013
6.6232
6.5970
6.5883
6.6121
6.6242
6.6262
Canada
(dollar)
Chile
(peso)*
China
(yuan)
Colombia
(peso) i
Cuba
(peso)
99.2472 12.0C01 41.9007 96.5512 99.9647
99.8424 12.0785 29.9166 96.4930 99.9515
96.3528 12.0669 22.4369 96.5697 99.9295
88.0896 7.9079 21.7357 95.2750 09.9409
91.9587 7.6787 1*28.5979 81. 6966 99.9464
101.0060 10.1452 34.0937 61.7799 99.9362
99.4933 5.0833 36.5707 56.0110 99.9198
99.0647 5.0S85 38.2960 54.1613 99.9200
99.5277 5.1000 38.7908 52.8846 99.9194
99.8977 5.1000 41.0979 55.0634 99.9204
99.9078 6.0996 40.4002 54.4068 99.9182
99.8322 5.0990 38.6791 52.9692 99.9194
99.7799 5.0633 36.8645 53.2263 99.9185
99.2563 5.0515 37.6226 55.9846 99.9200
98.5800 5.0694 35.6091 57.3115 99.9200
98.9236 5.0950 29.6485 56.5948 99.9200
99.0453 5.0937 29.4496 57.0300 99.9200
99.9297 5.0950 29.6594 57.3900 99.9231
100.1136 5.0950 29.9116 58.2fiS3
99.8421 5.0930 29.8243 57.2235 99.9025
HunHong
India
gary
Eong
(rupee)
(dollar) (pengS)1
47.1669
33.8530
24.3305
23.4604
29.4516
38.7156
48.2173
47.9147
52.6702
59.3095
57.5162
53.0310
50.3262
50.0547
48.9702
36.4772
32.7016
32.2051
32.7955
32.5619
17.4414 36.2020
17.4939 36.0672
17.4522 33.6895
17.4460 26.3468
22.3598 31.8159
29.5746 37.8793
29.6023 36.9640
29.6405 36.0210
29.4937 36.4393
29.4356 36.8602
29.5062 37.1944
29.6809 37.3467
29.7010 37.4849
29.6240 37.2082
29.6367 37.0217
29.6242 37.1419
29.6185 37.2008
29.6778 37.4606
29.7856 37.7344
29.6168 37.5101
Italy
(lira)'
Japan
(yen)
Czecho- Denslovakia mark
(koruna) (krone)
2.9609
2.9G40
2.9619
2.9618
3.8232
4.2424
4.1642
4.1982
4.1814
4.1683
4.1828
4.1729
4.1571
4.1363
4.1411
4.1303
4.1433
4.1602
4.10W
4.1637
Mexico Nether,
lands
(peso) (florin)
5.2334 46.0997 48.1830
5.2374 49.3898 47.1331
5.2063 48.8509 135.4919
5.1253 28.1112 31.8500
6.7094 25.6457 28.1025
8.6617 29.7153 27.7423
8.2471 28.7067 27.7779
27.9837 27.7500
8.2821 28.3679 27.9350
8.2253 28.7295 27.7882
8.2566 28.9931 27.7781
8.2259 29.1510 27.7660
8.2074 29.3192 27.7521
8.1409 28.9378 27.7558
8.1243 28.6687 27.7631
8.1024 28.6828 27.7673
8.0750 28.7386 27.7675
27.7677
8.0276 28.9932 27.7691
8.0373 29.1299 27.7666
2S.93S1
7.9830
Straits
Switzer- Turkey
Portu- Ruma- South
Spain Settle- Sweden
land
Africa
nia
gal
(peseta) ments (krona) (franc) (pound)
(escudo)i (leu) (pound)'
(dollar)
Uruguay
(peso)*
48.4105
47.0608
47.1814
47.2854
60.4396
79.0472
80.3123
80.6676
80.5065
80.5269
80.6688
80.6550
80.8063
80.2667
80.2442
80.2674
80.1536
80.6850
81.3030
98.6294
85.8650
55.3572
47.0639
60.3360
79.9562
80.2513
80.4779
80.2015
80.0946
80.3547
80.4841
80.5377
80.1204
80.1835
80.1500
80.2075
79.9466
80.2582
80.0216
4.4714
4.4940
4.2435
3.1960
3.9165
4.6089
4.4575
4.3430
4.3930
4.4407
4,4856
4.5095
4.5153
4.4868
4.4703
4.4787
4.4854
4.5120
4.5489
4.5155
0.5961
.5953
.5946
.5968
.7795
1.0006
.9277
L0093
L0074
L0057
1.0078
L0004
.9351
.8077
.7965
.7899
.7879
.7879
.7632
.7377
483.27 14.6833
483.79 11.6670
480.76 9.5453
476.56 8.0438
414.98 10.7189
498.29 13.6150
484.66 13.6783
472.31 13.7232
478.27 13.6693
483.34 13.6522
488.06 13.6982
490.61 13.7259
488.74 13.7296
488.42 13.6569
485.63 1&6537
487.03 13.6477
487.44 13.6704
490.83 13.7274
494.51 13.8412
491.56 13.7450
56.0117 26.7839 19.2792
55.9639 26.8543 19.3820
52.4451 25.2540 19.4009
40.3970 18.4710 19.4049
49.2320 22.0324 24.8355
59.0052 25.9815 32.3663
57.1733 25.2710 32.4972
55.6346 24.6264 32.5301
56.3329 24.9325 32.3645
56.8942 25.1988 32.3230
57.3762 25.4408 32.6800
57.5466 25.5583 32.7474
57.8282 25.6227 32.7180
57.6180 25.4219 32.5042
57.4404 25.3030 32.5326
57.6071 25.3877 32.4449
57,6112 25.4092 32.4323
58.0574 25.5829 32.6622
58.5530 25.7779 33.0330
58.2430 25.6258 32.8206
26.6802
26.7650
25.0581
18.8317
19.0709
22.4998
21.8834
21.3244
21.5902
21,8175
22.0458
22.1303
22.1848
22.0112
21.9092
21.9834
22.0012
22.152(5
22.3211
22.1893
40.1622
40.2251
40.2298
40.2949
51.7209
67.3831
67.7147
67.9506
67.4576
67.6195
67.8743
67.9862
67.7819
67.5556
67.7416
67.8024
67.7696
68.1734
68.6769
68.3526
Yugoslavia
(dinar)
1.7591
1.7681
1.7680
1.6411
1.7607
2.2719
2.2837
2.2852
2.2757
2.2737
2.2913
2.2965
2.2973
2.2823
2.2834
2.2858
2.2886
2,2991
2.3196
2.3030
1 ? ! $ I o r wholly nominal since April 1933.
^ M & S S & W p e S o f g o l d peso, quoted in p.ace of latter b e t i n g Dec. 13. ,933. Average for !933 Is for gold peso for
r new
3™™ for Apr. 10-Dec. 31; average for old yuan for Jan. 1-Apr. 9 was 20.2103 cents.
f
^
^
Average for 1931 is forsHver peso for J U . y 3 0 - D e c 31. Average for gold peso
FEDERAL RESERVE BULLETIN
294
ArniL 1936
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES—ALL COMMODITIES
tlndex numbers]
Japan
(October
1900-100)
237
225
226
220
181
153
161
180
178
186
181
106
103
103
100
90
76
65
63
63
62
182
184
184
182
182
180
180
183
189
194
194
192
62
62
61
61
61
61
61
61
62
63
63
63
192
191
62
62
695
642
645
627
654
502
427
398
376
338
134
138
140
137
125
111
97
93
93
102
602
495
462
445
383
323
304
280
273
101
101
274
276
88
88
87
88
88
88
88
88
90
91
91
91
356
344
350
343
335
336
340
330
322
330
332
342
348
354
101
101
101
101
101
101
102
102
102
103
103
103
277
278
288
296
302
308
310
323
330
92
92
359
376
104
104
- .............
100
95
97
95
86
73
65
66
75
80
100
98
96
96
87
72
67
67
72
72
100
88
86
86
88
90
1031—November
December
1035—-January...............................
February.....
March
.
April
May
Juno..................................
July
August
„
September........
.
............
October . .
. . .
November.........................
December. .
77
77
70
80
79
80
80
80
79
81
81
81
81
81
71
71
88
88
71
72
72
73
72
72
72
72
72
73
73
73
1030—January
February
81
81
73
73
jfp^
\yrj
..............
J02S
1029
1030
1031
1032
1033
1014
1035
.
.
Netherlands
(1926-30100)
United
Italy
Germany
Franco
England
Canada
States
(1913«100)
(1926-100) (1926-100) (1030-100) (1913-100) (1913=100)
Year or month
. .
......
...................
WHOLESALE PRICES—GROUPS OF COMMODITIES
[Indexes for groups Included in total index above]
United States (1926-100)
Year or month
1026
1927
19JS
1929
1030
1931
1932
1933
1934
Farm
products
Foods
England (1930-100) France (1913-100)
Other
commodities
100
99
106
105
88
65
48
51
65
79
100
97
101
100
Dl
75
61
61
71
81
100
94
93
92
85
75
70
71
78
78
1934—November.
December..
71
72
75
75
1035—January
February...
March
April
May
June
July
August
September.,
October
November..
December..,
78
79
78
80
81
78
77
79
80
78
78
78
1936—January
February...
78
80
1935
Foods
IndusFarm
Indus- Agricultrial
and food
tural
trial
products products products products
100
87
85
87
90
90
581
599
584
579
626
542
482
420
'393
327
793
678
697
669
579
464
78
78
88
89
80
83
82
85
84
83
82
85
86
85
85
86
78
77
77
77
78
78
78
78
78
78
79
79
84
83
79
79
Provisions
Indus*
Industrial raw trial nnand semi- isbed
finished products
products
130
132
134
132
120
103
150
147
159
157
150
136
113
113
116
119
88
361
343
132
129
133
125
113
96
86
75
76
84
366
344
347
343
101
101
79
79
119
119
89
89
83
89
90
89
90
90
90
92
93
93
100
129
133
134
130
113
104
91
87
96
102
351
339
329
325
324
307
292
311
322
331
333
350
350
346
341
345
353
351
347
347
341
351
357
356
100
100
99
100
101
102
103
104
104
104
105
105
81
81
83
84
84
86
85
85
84
84
84
84
119
120
120
120
110
110
119
110
110
119
119
110
93
94
, 3G0
'364
355
356
105
105
84
85
' Revised.
Source*.—See BULLETIN for March 1031, p. 159, March 1035, p . 180, and October 1935, p. 878.
Germany (1913-100)
94
120
120
295
FEDERAL RESEEVE BULLETIN
AmiL 1936
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES-Continued
RETAIL FOOD PRICES
Year or month
COST OF LIVING
[Index numbers]
[Index numbers]
United
England
States
(July
(1913=*100)i 1914=100)
France
(July
1914=100)3
Germany
(191314=100)
Year or month
1926..,
1927...
1928...
1929..,
1930—
1931..,
1932...
1933...
1934...
1935....
161
155
154
157
147
121
102
100
111
161
156
157
154
145
131
126
120
122
125
113
113
112
124
125
124
109
100
98
86
146
153
153
156
146
131
116
113
118
120
1926..
1927..
1928..
1929..
1930-.
1931—
1932_.
1933..
1934..
1935...
1935-Febraary—
March
April
May
June.......
July
August
September.,
October....
November.,
December—
122
122
124
124
123
122
122
124
124
124
122
119
118
120
126
126
125
128
131
131
90
88
85
86
86
83
81
81
85
87
120
119
119
120
121
123
123
121
120
120
121
1935—February....
March
April
May
June
July
AugustSeptember...
October
November...
December—
122
122
1936—January..
February..
1935—January...
February--
131
130
United
States
(192325=100)
103
102
100
99
97
89
80
76
78
81
81
81
England
(Ji*
1914*
170
164
166
164
158
148
144
140
141
143
142
141
139
139
140
143
143
143
145
147
147
France
(Jan.-June
1914*100) *
Germany
(191314-100)
103
104
105
113
118
116
107
106
105
142
148
152
154
148
136
121
118
121
123
123
122
122
123
123
124
125
123
123
123
123
100
124
124
147
147
H*J ? i n c e 4 u g ? s t 1 9 3 3 t h e Bureau of Labor Statistics has published biweekly indexes. Figures uiven are for the date nearest m h of month. Indexes for revised series, 1923-25=100, are 80 for October, 82 for November, 82 for December 1935,82 for January 1936, and 81 for February,
index represents prices converted to gold basis of 1914.
w . - F o r both retail food prices and cost of living: United States-Bureau of Labor Statistics, Department of Labor- £Wanrf-Minlstry
r; Germany—Statistisches Reichsamt; France—For retail food prices, Statistique Generate, and for cost of living, Commission <
relatives au cout de la vie A Paris.
HI COUt dA ?a xria a T>orta
SECURITY PRICES
[Index numbers except as otherwise specified]
Common stocks (1926 average-100)
Bonds
Year or month
United
States
(average
price)
Number of issues...
February!"
300
J67.1
82.5
90.7
95.3
100.2
»78.0
»50.3
61.7
71.1
82,9
89.5
84.1
84.8
82.4
82.8
82.4
83.9
82.7
82.1
78.8
79.1
95.5
96.1
95.1
95.3
95.3
95.3
95.4
95.1
94.9
94.9
94.9
67.8
63.9
67.5
73.1
76.0
79.4
83.3
85.0
86.1
94.2
95.7
85.4
82.6
83.8
86.0
86.9
86.9
88.3
84.7
84.6
88.9
90.2
80.3
78.1
79.8
88.0
82.4
77.7
79.0
76.4
77.3
76.8
77.3
79.3
80.6
81.0
83.5
86.0
86.8
87.6
85.0
83.5
82.1
81.9
78.9
77.9
95.1
95.2
101.7
106.7
93.1
95.2
83.7
86.7
84.2
86.0
131.6
130.3
131.3
131.3
130.3
131.5
129,8
124.3
125.5
128.9
129.5
130.1
131.0
85.5
81.4
83.3
lweighted averages of monthly indexes.
July 13 to Sept. 2,1931, and from Sept. 19,1931, to Apr. 11,1932.
*«yicaents average of months May-December.
o«rc«.*~See B U LLETIN for February 1932, p . 121, and June 1935, p . 394.
Germany
100.0
123.2
178.1
217.6
187.6
132.2
105.2
99.6
83.3
79.7
110.0
110.7
112.3
110.2
111.8
108.4
113.2
119.7
127.5
129.9
107.8
France
278
106.5
October.
November"."""
December...!
England J
100.0
107.0
115.9
119.5
102.6
78.9
67.9
78.6
85.7
86.3
101.3
99.9
100.0
101.2
102.2
104.2
104.2
103.1
101.9
103.6
104.5
uly-..
August
United
States
421
57.4
71.7
80.8
85.1
95.8
96.9
88.6
81.3
82.1
83.5
139
36
97.0
98.9
98.7
95.7
98.3
96.1
81.1
84.0
96.7
102.3
1928.
1929..
1930.
1931."
1932.
1933
1934."
Germany
(average
price) i
100'0
118.3
149.9
19§.3
149.8
94.2
48.4
63.4
72.5
78.5
87
1926..,
g
France
England
(December (1913 aver1921«100)i age* 100)
100.0
145.0
136.1
122.8
296
FEDERAL RESERVE BULLETIN
APKIL 1936
FEDERAL RESERVE STATISTICS BY DISTRICTS, ETC.
DISCOUNTS BY MONTHS
DISCOUNTS BY WEEKS
[Averages of daily figures in thousands of dollars]
[In thousands of dollars]
Wednesday figures (1936)
1935
1936
Federal Reserve bank
Federal Reserve bank
February
176
4,183
490
156
5,842
G44
497
4,090
557
91
47
58
70
75
104
6S4
248
203
Chicago...
St. Louis
Minneapolis
209
33
94
55
29
72
75
35
12
Kansas City
Dallas
San Francisco
228
157
188
352
107
276
98
133
178
5,954
7,842
Mar. 18
171
3,989
561
111
3,593
43S
176
4,150
471
175
4,593
414
Cleveland
Richmnnfi
Atlanta
59
50
74
59
45
67
124
50
67
127
40
12
Chicago
St Louis
Minneapolis
41
18
62
74
18
61
41
21
125
41
37
98
262
87
338
175
175
104
145
146
114
175
199
154
5,712
4,920
5,630
6,065
6,810
Boston..
Now York
Philadelphia
Cleveland
Richmond
Atlanta......
....
Total
Mar. 25
M a r . 11
Mar. 4
March
March
Boston.
New York
Philadelphia
^.
__
Kansas City
Dallas
San Francisco
Total
Back figwtt.Sto Annual Report for 1934 (table 10).
'
TOTAL RESERVES, DEPOSITS, NOTE CIRCULATION, AND RATIO OF TOTAL RESERVES TO
LIABILITIES
[Averages of daily figures. Amounts in thousands of dollars]
Total reserves
1936
March
Boston
New York
Philadelphia..
Cloveland
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas C i t y . .
Dallas
San Francisco,
Total...
1935
February
Federal Reserve notes in
circulation i
Total deposits
March
1936
March
1935
February
March
1936
March
1935
February
March
593,964
564,523
439,708 398,245
385,645 314,629
13,246,829 3,548,616 2,175,433 3,122,427 3,445,224 [2,199,866 338,267 321,417 265,106
791,861
781,744
664,118
446,287 405,440
327,682 330,582 298,628 241,165 277,700 269,316
235,031
578,504
524,438 443,634 418,639 370,117 327,336 360,902 354,079
309,754
282,128
248,511 211,516 219,245
185,821 167,559
175,932 175,446
153,438
213,579
195,374 134,643
144,403
130,149
96,356
160,494 153,509
125,737
,444,463 1,378,147 1,077,898 877,539 838,816 662,821
862,020 852,669
787,987
221,706
221,089 199,764 176,447
177,864 161,453
162,290 161,128
140,090
177,391
167,377 153,537 136,881
130,678 111,750
111,625
109,393
103,948
216,414
216,614 201,041
185,848 181,809 182,321
143,296
139,928
118,531
154,973
138,432 111, 279 158,352 143,185
129,425
74,974
72,890
48,183
447,469
407,941 343,246
314,854 295,903 282,981 278,297
203,048
8,023,712 8,016,502 5,819,381 6,516,990 6,002,790 4,890,584
3,742,342 3,669,821 3,154,971
Ratio of total reserves to
deposit and Federal
Reserve note liabilities
combined
1936
March
Febru- March
ary
80.6
82.9
73.4
79.8
84.0
71.4
75.8
76.0
68.8
74.2|
71.4
70.0
72.4
68.8
68.9
65.9
60.6
83.0
65.5
71.4
81.5
65.2
69.7
74.3
66.2
71.2
65.8|
66.4
70.9
67.3
64.1
68.8
66.8
62.7
68.8
78.2
78.0
72.3
i Includes Federal Reserve notes of other Reserve banks as follows: Latest month, $18,012,000; m o n t h ago, $18,020,000; year ago, $15,796,000.
Back figures.—See Annual Report for 1934 (table 9).
297
FEDERAL RESERVE BULLETIN
APRIL 1936
ASSETS AND LIABILITIES OF EACH FEDERAL RESERVE BANK, ALSO FEDERAL RESERVE NOTE
STATEMENT, MAR. 31, 1936
[In thousands of dollars]
Total
Boston
New
York
Phila- Cleve- Rich- Atdelphia land mond lanta
MinSt.
Louis neapolis
Chicago
KanSan
sas Dallas FranCity
cisco
ASSETS
Gold certificates on hand and due from
U. S. Treasury
— 7,665,346 588,942|3,065,831 [425, S20JG05,0221275,835 203,437 1,312,551 194,371 .61,727 204,437 148,087 179,286
Redemption fund—Federal Reserve
14,865 2,567
1,551
8711
2,229
680 1,1161
374 1,161
520
542 2,451
notes
—•
347,0901 38,616
Other cash
—
95,028 42,213 34.068 16,982 10,838 46,140 16,060! 7,477 20,5071 4,656 14,505
Total reserves
-
8,027,301 630,125 3,162,410 468,553 639,961 293,620 216,504 1,359,371211,547|:i69,578 226,105 153,285 96,242
Bills discounted:
Secured by U. S. Government
obligations, direct and/or fully
guaranteed
_
Other bills discounted
Total bills discounted
Bills bought in open market
Industrial advances-_____
5,204
2,809
8,013
4,674
30,409
228
32
2601
3491
2,910
2,138
2,164
4,302
1,739
7,686'
469
472
5,441
50
125
2.0001
4231
46i
59
440
1,552
40
190
3,829'
107
163
855
2,041
580
2,139
37
87
552
153
61
1,466
175
133
1,176
216
216|
133
130
24
154
327
1,107
U. S. Government securities:
Bonds
_
Treasury notes
_
Treasury bills
265,689 17,9561 68,473 20,755 23,973 12,834! 11,019
1,554,894 103,893| 482,760 116,714|l44,293 77,244 66,320
482,760] 16,714 144,293
609,667 35,828J 178,150 39,651 49,759 26,6381 22,870
28,415 13,492 14,494! 13,013 19,347 21,918
171,029 81,704 45,556 77,206 56,254 131,921
121,720 28,004 15,531! 26,625 19,399] 45,492
Total U. S. Government securities
Other securities
2,430,250 157,677
181
729,383 177,120 218,025 116,716 100,209
321,164 123,200 75,581 116,844 95,000 199,331
181
Total bills and securities
Due from foreign banks
Federal Reserve
Uncollected iten
Bank premises
All other assets
2,473,527 161,196 743,110|l83,502]220,076|l20,775|l01,334| 325,924 123,876 77,261 L18.509 97,045 200,919
45
19
3
78,
23
28
60
650
501
258
446 1,407
1,758 1,361 1,115 1,274
762 1,475 1,065 1,291
18,811
327
6,530
47,514 42,243 20,3601 67,662 22,560 12,587 29,679 19,769 24,324
521,810 55,727 141,669 37,716
!
_„
4,828 2,452 1,531 3,360 1,5241 3,580
10,843i 4,926 6,525 2,919 2,284
47,885 3,113
260
767;
319
420
195
311
26,830 3,598 1,511 1,033 1,343
224
36,811
Total assets
11,126,795 850,762J4,091,65o|699,12o|917,122(461,683|343,139|l, 759,932J361,9951262,495 \379,265 272,855 '26,777
LIABILITIES
Federal Reserve notes in actual circulation..
802,309|280,15SJ361,048 [ 177,2041159,921
865,680 162,425 112,236 44,549 74,765 282,381
Deposits:
Member bank—reserve account. __ 5,087,086 296,547 2,353,729 288,954 368,384 185,156 113,253
U.S.Treasurer—PAn**™! an*nn«*
1,077,494 125,110 440,677 51,043 100,451 36,501 29,481
Foreign b a n k 4,876
20,850 6,128 6,063 2,899 2,306
62,694
Other deposits.
5,587 209,780 2,361 2,362| 3,010 4,737
269,477
645,613 125,079! 94,0771 ,64,068 20,487 331,739
126,005 29,812 29,362 29,034 36,1871' 43,831
7,644 1,977 1,582 1,911 1,911] 4,547
3,081] 8,878' 4,277 1,005 7,690 16,709
Total dep
Deferred availa
Capital paid in.
Surplus (sec. 7)
Surplus (sec. 13
ve for con
herliabili
Total Hab
of totaln
eral Reset
>d (percen
fitments
ces
3,763, 758 |341,082j
6,496,751 432,120 3,025,036 348,486 477,260 227,566 149,777
522,1041 53,729 142,205 37,157 47,408 42,300 20,182
9,390
50,912 12,324 12,554 4,589 4,236
130,723
9,902
50,825 13,406 14,371 5,186 5,616
145,501
754
2,874
7,744 4,231 1,007 3,448
26,513
1,413
8,849 3,000 3,111 1,261 2,508
34,105
1291
145
363
358i
252
7,340
3,770
196,018 166,276 [96,826
68,392 23,656 12,004 28,975 21,536 24,560
12,037 3,766 3,017 3,949 3,800 10,149
21,350 4,655 3,149 3,613 3,783 9,645
546 1,003 1,142 1,252 1,121
1,391
844 1,328 1,849
892 1,477
7,573
246
116
1751
311
1,166
272,855 r26,777
11,126,795 850,762 4,091,650 699,120 917,122 461,683 343,139 1,759,932 361,995 262,495 379,265
78.2
25,084
81.5
2,929
82.6
9,774
74.5]
354
76.3
69.9i
1,605
380'
82.5
64.5
8X|
1,863
70.
105
66.4
63.6
73.1
663
584
4,425
FEDERAL RESERVE NOTE
STATEMENT
Federal Reserve notesIssued to Federa
^eralReser
Held by Federa
In circulation.
Jt
ilheldbyai
asuedtobai
t certificates
StT.S.Tn
Lble paper
**• Government securities
Total collateral
4,019,380 359,777
255,622 18,695
,850
896,299 291,387 377,080 185,028 177,
93,990) 11,229 16,032 7,8241 17,929
894, 062|l69,695|ll5,84: 152,924 80,487 318,944
" ""
28,382 7,270 3,611 8,375 5,722 36,563
3,763,758 341,082
802,309|280,158|361,048|l77,204[l59,921
865,680 162,425 112,236144,549 74,765 282,381
3,987,843 366,617
6,155
234
69,000
905,706 292,000 378,440 186,000 155,685
95
25
27
436
2,716!
27,000
4,062,998 366,851)
r
908,422 292,436 378,467 186,025 182,780]
900,000, 142,632 117,000 139, OOC 81,5001323,263
173|
130
1&
26
137
2,000
28,000
14, OOC
902,000 170,658117,137 153,15fi 81,673 323,393
298
FEDERAL RESERVE BULLETIN
APRIL
1936
RATES ON INDUSTRIAL ADVANCES
(Approved by the Board of Governors or the Federal Reserve System, under seo. 13b of Federal Reserve Act as amended June 10,1934. Percent
per annum except as otherwise specified. In effect on Apr. 1,1936]
Boston
Advanced direct to industrial or commercial organizations . . . . . . . . . . . . . . . . . . . . . . 3*4-6
Advances to financing institutions:
On portion for which institution Is obligated
3
On remaining p o r t i o n . . . . . . . . . . . . . . . . .
Commitments to make advances....
New Phlla- CleveYork delphla land
Eichmond
Atlanta
Chicago
4-6
4-6
4H-6
6
6
5-6
3
4-5
1-2
3
f
4-6
4-6
1-2
5
5
13
5-6
1-2
St.
Minne- Kansas Dallas
Louis apolis
City
H
6
%
4}£-5
4^-5
San
Fran*
clsco
4-6
5-6
6-6
4
4
*H-2
4
6-6
1
3-4
4-5
i Authorized rate 1 percent above prevailing discount rate.
> Same aa to borrower but not less than 4 percent.
* Flat charge
INDUSTRIAL ADVANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERAL
RESERVE ACT JUNE 19, 1934, TO MAR. 25, 1936
[Amounts in thousands of dollars]
Date (last Wednesday of
each month)
Applications rec- Applications approved to date by Federal Reserve banks (with and
. ommended for
without conditions)
approval by InApplications
dustrial Advireceived to date
sory CommitFinanctees to date
Expired, ing instiFederal Federal
Total
(with and withReserve Reserve Approved repaid,
tution
bank
out conditions)
bank
but not or with- particiadvances commitcom- drawn by pations
ments
outapplipleted *
outoutcant
Number Amount Number Amount Number Amount standing standing
standing *
1834-Dec. 26...
5,053
187,696
1,122
54,531
lD35-Jan.3O
Feb. 27
Mar. 27
Apr. 24
May 29
June 26
July 31
Aug. 23
Sept. 25
Oct. 30
Nov. 27
Dec. 31 (Tuesday)
6,233
5,595
6,897
6,130
6,428
6,618
6,863
7,029
7,195
7,3SS
7,600
7,615
195,710
205,581
217,756
225,900
245,078
263,482
271,768
278,022
292,747
299,927
302,331
306,708
1,341
1,432
1,621
1,633
1,734
1,815
1,907
1,970
2,009
2,083
2,134
2,176
73,470
76,675
79,490
86,374
90,799
102,331
109,603
112,629
121,837
126,192
130,502
132,460
49,634
,168
,268
,364
1,467
-.571
,646
,739
,786
,834
,901
,948
64,518
72,525
76,441
81,134
86,282
88,778
103,633
107,244
115,350
118,378
121,947
124,493
13,589
17,493
19,163
20,785
20,206
26,977
27,518
28,354
29,447
30,132
32,719
32,634
32,493
8,225
11,739
13,963
15,732
16,908
19,425
20,579
23,022
26,314
26,892
27,057
28,002
27,649
20,966
6,558
1,296
26,362
26,591
23,552
16,956
13,850
11,248
19,735
15,319
18,791
13,357
13,466
11,548
7,160
10,727
13,900
17,185
21,802
24,900
26,911
29,656
32,475
36,585
38,952
44,025
1,764
2,081
2,472
3,879
4,228
4,533
5,611
6,608
7,060
8,680
8,778
APRIL
299
FEDERAL RESERVE BULLETIN
1936
MEMBER BANKS IN EACH DISTRICT
RESERVES HELD, EXCESS RESERVES, AND BORROWINGS AT FEDERAL RESERVE BANKS
[Averages of daily figures. In millions of dollars]
Reserves held
Total
Borrowings at Federa 1 Reserve
banks
Excess
Federal Reserve district
1936
1935
February
368.5
2,821.5
283.2
375.8
2,823.1
294.3
349.9
176.8
120.6
1935
1035
1936
.....-.._ . . .
Kansas City.
Dallas
San.Francisco
Total
336.5
2,756.4
266.3
225.4
1,486.4
137.8
234.1
1,509.0
149.3
196.0
1,448.9
124.1
339.3
170.2
111.6
335.8
170.0
108.3
187.2
99.1
58.9
176.7
92.7
48.9
172.9
93.6
45.9
.04
,1
.2
.006
.1
.1
793 9
157 8
110.5
8S0 4
165 0
104.2
414 5
91 5
74.2
412 3
83.4
62.4
502 9
90.9
55.8
.01
.02
.1
.1
.007
.1
.2
.1
.1
175 8
128 4
299.0
171 8
119 5
301.4
96 4
72 0
94.6
95.5
71.1
97.2
89.6
62.4
99.8
.3
.1
.3
.5
.1
.03
.6
.1
.008
5,808.1
_
January
175 4
127* 9
294.3
Cleveland
Richmond^
Atlanta
December February
802.5
165 6
121.9
Boston..
New York
Philadelphia
Chicago..
St. Louis
Minneapolis
January
1936
5,779.8
5,715.6
3,037.8
3,032.7
2,982.7
7.5
December February
January
December
0.5
3.9
.5
0.3
4.0
.4
0.1
5.7
.6
.03
.1
.1
6.0
5.6
NET DEMAND AND TIME DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS
[Averages of daily figures. In millions of dollars]
M e m b e r banks in larger centers (places over 15,000)
Time
Net demand
Time
Net demand
Member banks In smaller centers (places under 15,000)
Federal Reserve district
1936
1935
1935
1936
78
183
150
128
452
414
127
459
412
125
457
410
123
93
77
123
94
77
124
105
79
249
170
74
249
169
73
247
167
72
1,073
262
171
160
111
109
160
112
109
164
123
114
198
95
176
195
94
176
191
93
173
198
158
1,952
199
159
1,922
174
146
76
176
143
76
192
147
80
112
39
95
112
38
94
107
36
92
8,215
8,110
1,460
1,459
1,539
2,204
2,197
2,170
575
1,619
616
75
185
131
9S8
327
265
971
324
270
942
321
270
2,796
572
320
1,100
261
175
1,096
263
174
1,362
605
444
1,384
615
439
1,391
199
158
1,950
20,968
20,795
20,662
8,197
1,578
1,125
1,277
9,814
1,087
gjeveland
Richmond
Atlanta
""II"""""
1,228
615
504
1,231
614
516
1,242
599
511
/
2,881
578
312
2,830
581
317
593
428
st S;:::;:
Minneapolis
Kansas
Dallas.
Total.
1,306
10,035
578
Decem*
ber
76
181
134
577
1,617
616
1,291
9,862
1,120
Boston
New York..IH"";;"2
January
February
February
February
January
1935
1936
December
December
December
February
1935
1936
January
January
300
FEDERAL RESERVE BULLETIN
APRIL 1936
REPORTING MEMBER BANKS IN 101 LEADING CITIES
ASSETS AND LIABILITIES BY DISTRICTS, AND FOR NEW YORK CITY AND CHICAGO
[In millions of dollars]
Federal Reserve District
Total
Bostoi
Loans and investments,
total:
Mar. 4
Mar. 11
Mar. IS
Mar. 25
Loans to brokers nnd dealers
In Now York:
Afar. 4
Mar. U
Mar. 18
Mar. 25
___.
Loans to brokers and dealers
outsido New York:
Mar. 4
Mar. 11
Mar. IS
Mar. 25
Loans on securities to others
(except banks}:
Mar. 4
Mar. 11
Mar. 18
Mar. 25
Acceptances and commercial
paper bought:
Mar. 4..
Mar. 11
Mar. 18
Mar. 25
Loans on real estate:
Mar. 4
Mar. 11
Mar. 18
"I
Mar. 25
Loans to banks:
Mar. 4
Mar. 11
I"
Mar. 18
.'.,
Mar. 25
Other loans:
Mar. 4
Mar. 11
Mar. 18
'""
Mar. 25
II.,
U. S. Government direct
obligations:
Mar. 4
Mar. 11
"'
Mar. 18
Mar. 25
"".'
Obligations fully guaranteed
by U. S. Government:
Mar. 4
Mar. 11
""'
Mar. 18
Mar. 25
""™
Other securities:
Mar. 4
Mar. 11
"'
Mar. 18
Mar. 25
1'.'."'.
Reserve with Federal Reserve bank:
Mar. 4
Mar. 11
Mar. 18
II
Mar. 25
„„„
H
Cash in vault:
Mar. 4
Mar. 11
""
Mar. IS
I
Mar. 25
' Revised.
21,200
21,326
21,037
21,611
1,168
1,108
1,197
1,200
New Phila^ Clove, Rich- Atlandel
York phia land mond
ta
9,147
9,307
9,281
9,273
1,132
1,130
1,164
1,161
1,738
1,730
1,773
1,768
572
573
571
570
510
499
515
529
go
2,830
2,816
2,940
2,913
City
MinSt.
Louis neapolis
611
614
621
623
365
353
356
KanSan
sas Dallas FranCity
cisco
598
602
615
624
423
430
449
445
2,107
2,104
2,155
2,146
984
1,041
956
1,003
1,002
079
034
New ChicaYork
go
8,296
8,457
8,410
8,400
1,027
946
898
195
202
200
2,060
2,007
'2,090
2,037
1,950
1,932
1,988
1,953
37
34
28
14S
148
152
151
890
892
907
904
147
147
148
147
211
211
'215
215
205
206
208
209
69
167
169
168
170
742
744
758
755
147
143
150
151
341
349
346
343
160
164
165
163
3
3
3
3
5
5
5
5
29
30
30
31
25
25
25
25
25
25
26
25
155
159
160
158
14
15
15
16
U4S
1,146
' 1,146
1,150
252
251
251
252
189
188
'187
187
21
21
21
21
'66
66
15
16
16
16
367
367
367
135
135
135
136
15
15
15
15
'64
6S
83
77
••29
4
4
4
4
1
1
1
1
4
4
4
4
2
2
2
1
'29
33
49
45
5
5
5
5
3,355
3,378
3,406
3,424
8,634
8,865
8,859
34
49
45
1,297
1,268
1,279
1,281
165
166
169
171
382 3,667
379 3,737
397 3,704
400 3,717
283
294
297
192
194
7
7
7
7
201
102
103
105
105
132
132
135
137
'358
400
395
401
105
107
106
106
118
120
122
121
122
123
122
124
120
121
121
122
356
356
358
353
1,158
1,128
1,138
1,141
257
261
254
259
302
301
326
326
809
802
'835
828
257
256
252
252
184
172
188
199
1,626
1,545
1,674
1,644
230
229
237
241
145
130
134
137
221
225
237
243
143
147
170
'168
668
665
711
704
3,451
3,522
3,466
3,476
1,139
1,099
1,162
1,130
142
146
144
144
53
52
52
49
45
43
42
42
51
50
44
'42
140
138
137
137
479
511
537
549
90
89
39
89
357
369
373
374
101
103
104
104
117
117
120
121
48
47
47
47
361
364
367
364
1,115
1,136
1,157
1,178
251
263
264
265
722
581
578
117
113
96
100
110
116
107
103
188
193
181
2,390
2,225
1,989
1,949
484
513
423
423
11
11
11
11
11
12
11
12
49
52
49
51
35
37
35
36
••200
1,224
1,244
1,257
1,265
18
17
16
17
507
539
565
578
107
102
102
99
66
3,182
3,222
3,265
3,283
165
167
172
170
1,297
1,317
1,339
1,359
295
296
299
299
249
249
250
250
4,723
4,632
4,089
4,003
292
294
241
235
2,473
2,305
2,067
2,018
217
224
195
203
282
285
'259
247
125
138
144
137
360
376
362
366
119
120
116
117
62
66
62
64
14
15
14
14
29
32
31
30
16
17
16
17
40
57
58
301
FEDERAL RESERVE BULLETIN
APRIL 1936
REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued
ASSETS AND LIABILITIES BY DISTRICTS, AND FOR NEW YORK CITY AND CHICAGO—Continued
[In millions of dollars]
Federal Reserve District
Total
New
Boston! York
I
Balances with domestic
banks:
Mar. 4.
Mar. 11
Mar. 18
,
Mar.25
Other assets:
Mar. 4
Mar. 11
,
Mar. 18
^ Mar. 2 5 ,
Demand deposits—adjusted:
Mar. 4
Mar. 11
"_
Mar. 18
"...
Mar. 25 .
Time deposits:
Mar. 4
Mar. 11
Mar. 18
_H\
'
„ Mar.25
1.""""
U. S. Government deposits:
Mar. 4.
Mar. 11..
'
Mar. i s . . . : : : : : : : : : : : : ; :
Mar. 25. „
Interbank deposits," domes-'
Mar. 4 . .
Mar. 18
_ Mar.25.._
borrowings:
Mar. 4 .
Mar. 1 1 . . . ;
Mar. i s . . . . : ; ; ; ;
. Mar. 25
Other liabUi'ties:
Mar. 4
'
'
—
Max. n . . _
Mar. 18....
„ Mar.25....
Capital account:
Mar. 4
Mar. 11
Mar. 18
Mar.25
p
Revised.
Cleve- Rich- Atlanland mond
ta
Jflica- St.
Louis
go
Minneapolis
San
Kansas Dallas Francisco
City
New
York
Chicago
'2,287
2,230
134
129
123
110
177
180
166
166
171
168
170
165
234
228
'216
216
1,342
1,347
' 1,318
1,329
80
81
80
81
542
539
527
534
86
87
86
86
112
112
••111
110
13,966
14,041
• 13,771
13,747
974
969
942
933
6,429
6,429
6,306
6,341
774
769
750
756
966
'965
946
4,911
4,931
' 4,922
4,921
301
301
301
301
938
945
941
944
259
271
270
273
696
'695
695
511
7
7
17
17
151
151
231
230
30
30
57
57
249
251
231
227
2,538
2,519
2,334
2,249
311
385
377
369
7
S
8
7
361
356
347
341
13
21
17
1
1
1
13
19
16
866
877
795
815
24
25
26
26
391
332
340
19
19
20
20
15
15
14
15
34
34
32
37
330
334
312
316
370
377
318
326
31
29
28
31
3,512
3,511
3,513
3,513
230
231
231
231
1,593
1,593
1,594
224
223
224
224
331
332
332
332
335
336
336
337
319
320
320
321
1,467
1,461
1,461
1,462
222
222
222
222
2,401
2,419
510
••785
777
5,873
Mar. n
;::;;
5,832
Mar. 18..
' " " '5,509
. Mar.25
5,385
interbank deposits, foreign:'
Jjariii::;;:;;;™
Philadelphia
City
305
297
159
175
169
155
415
399
362
355
139
142
130
131
97
106
103
107
311
304
294
285
187
183
175
170
218
240
218
207
75
79
78
78
198
179
167
157
41
41
40
40
111
110
106
110
24
24
24
24
18
18
18
18
25
25
25
25
28
23
28
237
243
236
235
471
468
457
463
77
76
74
76
384
370
370
290
293
288
294
2,053
2,070
2,007
1,965
372
380
365
377
254
258
249
246
433
442
436
441
324
334
332
328
730
747
761
750
5,950
5,953
5,831
5,869
1,402
1,354
1,308
193
193
193
193
170
170
170
170
763
764
765
764
173
173
173
173
120
120
120
120
145
144
145
145
119
118
118
118
1,033
1,036
1,031
1,025
537
543
541
546
414
414
414
414
27
27
43
43
104
103
152
152
4
4
••58
58
24
24
41
41
7
7
8
4
12
12
19
19
21
21
33
30
83
83
117
117
131
131
19S
197
80
SO
116
116
342
336
'325
324
216
214
206
203
210
211
207
199
803
796
750
754
259
253
241
237
122
124
115
115
375
370
361
353
188
181
178
172
260
268
256
255
2,466
2,451
2,270
2,187
594
592
555
560
1
1
1
1
4
4
5
5
1
. 1
11
10
11
11
360
353
346
340
41
41
1
1
1
1
159
165
161
163
1
1
1
1
12
18
14
302
FEDERAL RESERVE BULLETIN
APRIL 1935
OTHER BANKING AND FINANCIAL STATISTICS
PAPER CURRENCY OF EACH DENOMINATION IN CIRCULATION
[Outside Treasury and Federal Reserve banks. In millions of dollars]
Total in
circulation >
End of month
$1
$2
$10
$20
$50
$100
$500
$1,000
193-1—December...
5,084
423
771
1,238
1,326
337
577
112
216
1935—January
February...,
March
April
May
,
Juno...
July
AURUSt
Septomber..
October
November..
December
4,940
6,024
5,048
6,023
5,087
5,114
5,063
6,172
5,220
5,245
5,374
5,401
401
407
410
411
420
419
415
424
433
435
448
460
740
755
754
749
760
760
755
778
788
787
815
815
1,240
1,275
1,285
1,266
1,290
1,296
1,273
1,324
1,334
1,337
1,380
1,373
1,293
1,314
1,309
1,300
1,309
1,309
1,289
1,313
1,321
1,329
1,354
1,359
336
340
34J
340
343
349
344
347
349
354
356
353
571
575
578
580
588
593
596
698
6,03
610
617
627
111
112
113
116
115
116
X16
116
118
119
120
122
214
217
221
230
225
225
231
233
232
233
234
239
193ft—January
February...
5,272
5,379
434
434
782
802
1,333
1,373
1.332
1,360
355
361
627
633
122
123
$5,000
Unassorted In
Treasury
$10,000
and
Federal
Reserve
banks»
240
243
13
15
9
8
11
fi
4
11
12
11
6
i Total of amounts shown by denominations less unassorted amounts in Treasury and Federal Reserve banks.
«Includes $1,000,000 of currency of unknown denominations reported by the Treasury as destroyed.
Back figure*.—Seo Annual Report for 1934 (table 50).
SHIPMENTS AND RECEIPTS OF UNITED
STATES PAPER CURRENCY
BANK DEBITS
[Debits to individual accounts. Amounts in millions of dollars]
BY SELECTED BANKS IN NEW YORK CITY
1935
Month
January.
February
March
April
May
June
July
August
September..
October
November-December
Total
Number
of centers
1936
ShipReShipRements ceipts Net re- ments ceipts Net reto Eu- from
ceipts to Eu- from
ceipts
rope Europe
rope Europe
81
173
167
373
1,012
191
286
282
721
2,536
4,203
603
10,623
3,705 3,624
1,502
1,329
2,026
1,859
1,465
1,092
1,612
600
1,451
1,260
2,261 1,975
2,289
2,007
1,157
436
864 »-1,672
782 1-3,421
851
248
19,965
748
13
1,757
2,743
3,317
3,109
1,995
3,304
1,352
9,337
* N e t shipments.
For description and back figures see BULLETIN for January 1932.
pp. 7-9, and for January 1935, p . 61.
1935
1936
[In thousands of dollars]
New York City
Outside New York City
Federal Reserve districts:
Boston
New York
Philadelphia
Cleveland
RichmondAtlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas.... „ .
San Francisco
Total
February January February
1
140
15,806
15,766
17,925
17,499
12,549
r 13, HI
11
7
10
13
7
15
21
5
9
15
10
18
1,702
16, 424
1,507
1,545
560
693
4,108
771
479
877
655
2,351
2,039
18,545
1,667
1,732
627
801
4,483
880
532
©92
609
2,516
1,369
13,150
1,250
1,311
498
632
3,336
645
403
747
472
r 1,842
141
31,572
35,424
r 25,659
' Revised.
Back figures.—See Annual Report for 1934 (table 78).
303
FEDERAL RESERVE BULLETIN
APRIL 1030
BANKS SUSPENDED AND NONLICENSED BANKS PLACED IN LIQUIDATION OR RECEIVERSHIP
DURING 1935 AND JANUARY-MARCH 1936
[Preliminary figures]
Nonlicensed banks placed in liquidation or
receivership*
Licensed banks suspended'
Deposits * (in thousands of dollars)
N u m b e r of banks
Year 1935
National banks
State bank members
Nontnember insured banks
Other nonmember banks
JanuaryMarch
1936
Year 1935
-
3,847
993
2,191
15
34
JanuaryMarch
1936
Year 1935
•
4
«6
15
22
8
Total..
Year 1935
5,313
4
...
JanuaryMarch
1936
Deposits* (in thousands of dollars)
Number of banks
10,158
2,191
JanuaryMarch
1936
6,499
* 8,613
48
9
14,306
16,630
58
9
29,418
16,630
1
Ine tides banks placed on a restricted basis.
Includes nonlicensed banks absorbed or succeeded by other banks.
,
,
. . . . . . .
• Deposits of licensed member banks suspended are as of dates of suspension; deposits of nonlicensed national banks placed in liquidation or
receivership are as of dates of conservatorship; deposits of nonlicensed State bank members placed in liquidation or receivership are as of the
nearest call dates prior to liquidation or receivership: and deposits of nonmember banks are based on the latest data available at the time of the
reported closing of the banks.
,
«includes 5 banks with deposits of $7,395,000 in 1935, which did not receive licenses following the banking holiday and withdrew from the
federal Reserve System before being placed in liquidation.
Back figures—See Annual Report for 1934 (tables 79-84).
1
MATURITY DISTRIBUTION OF BILLS AND SECURITIES HELD BY RESERVE BANKS
POSTAL SAVINGS SYSTEM
[In millions of dollars]
[In thousands of dollars]
Assets
End of month
1934-December
Depositors'
balances Total
TJ. S. Government
securities
Cash
in depository
banks Total
Direct
obligations
Total
Cash,
reGuar- serve
anfunds,
teed
obli- etc.*
gations
\ 1,207
1,237
540
597
467
130
100
1,201
1,205
1,203
1,200
1,205
1,205
Jmy
: : : : 1,189
1,192
August.,..
September." 1,192
1,196
October....
1,199
November.," l
December
»l,20S
February."
'1,214
1,232
1,237
1,232
1,231
1,237
1,236
1,221
1,224
1,224
1,230
1,234
509
491
478
452
412
385
364
348
319
306
294
614
633
691
685
709
777
777
780
805
824
853
467
467
508
539
562
630
630
633
658
677
706
147
166
183
146
147
147
147
147
147
147
147
109
113
63
94
116
74
80
96
100
100
87
1935-January.
February.. "
March
April...:::;:
May
June
'Preliminary. '
postmasters, 5-percent reserve fund and
..fth the Treasurer of the United States,
on bond investments, and accounts due from late posta
«***ttrei.-See BULLETIN for August 1935, p. 602.
Bills discounted:
5,712
Mar. 4
4,920
Mar. 1 1 —
5,630
Mar. 18—
6,065
Mar. 25—
Bills bought in
open market:
4,673
Mar. 4
4,676
Mar. 11.—
4,679
Mar. 18—
4,674
Mar. 25._~
Industrial advances:
31,454
Mar. 4
Mar. 11— 30.195
Mar. 18— 30,321
Mer. 25—. 30,501
U. S. Govt. securities:
2,430,839
Mar. 4
Mar. 11— 2,430,287
Mar. 18— 2,430,319
Mar. 25.... 2,430,271
Other securities :
181
Mar. 4
181
Mar. 11—
181
Mar. 18.
181
Mar. 25—
With- 16 to
in 15 30
days days
4,225
4,026
4,263 f
4,099!
761
286
129
252!
31 to 61 to 91 days Over6
to 6
90
60
mos.
days days mos.
5121
469
485
253
113
55
633
915
92
76
104
530
8
16
16
1,692
1,741
1,689
1,743
26,869
25,680
25,785
25,956
635 1,572
706 1,760
869 1,382
354!
2,071
840
1,781 428i 1,630
364i 750 1,410 2,150
1,537
l t 562
1,764
1,676|
455
149
161
340
352
452
479
407
405
482
486
45,730 22,674(128,062|49,80fi|345,935 1,838,632
Y 164 116! 410(47,506 365', 277 1,850,030
22,'674 9 200 46 816 93,133 368,760 1,889,736
19,200 48,816 87,663 382,050 1,885,378
7,164
181
181
181
181
FEDERAL RESERVE BULLETIN
304
A PHIL 1936
NUMBER OF BANKS* MAINTAINING BRANCHES AND NUMBER OF BRANCHES MAINTAINED,
DEC. 31, 1934 AND 1935
Dec.31,1
1934,
total
Total
Total.
National
State
mem*
ber
Nonmember
798
182
143
473
715
Dec.31,
1934,
total
Outside headoffice city
16
18
5
800
9
12
30
25
26
39
95
25
53
57
75
105
134
6
35
2
5
1
113
11
2
5
4
3
5
8
2
2
3
1
1
19
22
22
21
6
794
9
12
30
25
26
49
125
29
51
58
72
110
142
6
605
88
168
42
91
32
21
15
46
10
12
70
44
»Excluding m u t u a l savings and private banks.
State
member
1,327
2,973
2
Non- In headmem- office
Outside
city llnhead-l headber
office
office
county county
National
Total
616
68
166
30
91
33
20
1
46
10
12
69
31
94
Alabama
Arizona
:
Arkansas
California
Connecticut
Delaware
District of Columbia
Georgia
Idaho
Indiana
Iowa
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Nebraska..
Nevada..
New Hampshire--.-.
New Jersey
New Mexico
New York
North Carolina
Ohio
Orepon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
,
Washington
Wisconsin
Dec. 31,1935
Dec. 31,1935
Dec. 31,1935
State
Location of branches
Number of branches
Number of banks * maintaining branches
952
820
G
15
1
615
3
136
15
6
6
43
6
10
S
3
2
32
125
11
23
27
42
15
37
2
5
6
14
12
17
16
10
5
38
2
7
1
114
102
N o
1,611
14
16
241
4
2
30
13
476
4
6
24
1
28
2
3
25
20
1
4
19
19
23
3
34
90
121
6
21
37
58
91
379
181
5
31
41
37
8
15
14
17
9
2
14
37
14
590
9
129
11
85
13
3
115
b r a n c h e s
4
1
2
2
6
56
3
29
2
7
17
11
17
8
3
17
26
17
w e r e
r e p o r t e d
i n
t h e
s t a t e s
omitted.
NUMBER OF MUTUALRAVINGSI AND PRIVATE BANKS MAINTAINING BRANCHES AND NUMBER
OF BRANCHES MAINTAINED, DEC. 31, 1934 AND 1935
Number of branches
Number of banks maintaining branches
State
Dec. 31,
1934
Dec. 31, 1935
Outride head-office
city
In headOutside
In headoffice city
head-office
office
county
county
Dec. 31,
1934, total
Dec. 31,
1935
Total
MUTUAL SAVINGS BANKS
Total
California
Connecticut
Delaware
78
I
Maine
Maryland
Massachusetts
New Jersey
New York
Pennsylvania
Rhode Island
Vermont-—
Total
Georgia
Pennsylvania..-.*
1
1
1
2
29
3
35
4
1
[m
^""
PRIVATE BANKS
Back figures: See BULLETIN for June 1935, page 405.
""
4
1
3_
82
1
1
1
2
2
29
3
37
4
1
1
126
4
1
1
1
16
39
4
45
13
2
3
5
2
133
4
1
1
2
16
39
4
47
13
2
4
3
111
4
1
1
1
14
24
4
47
13
2
19
3
1
2
1
14
4
3
^
305
FEDERAL EESERPE BULLETIN
AFBIL 1936
WHOLESALE PRICES, BY GROUPS OF COMMODITIES
[Index of Bureau of Labor Statistics. 1926-100]
Other commodities
All
commodities
Foods
05.3
86.4
73.0
64.8
65.9
74.9
80.0
104.9
88.3
64.8
48.2
51.4
65.3
78.8
99.9
90.5
74.6
61.0
60.5
70.5
83.7
91.6
85.2
75.0
70.2
71.2
78.4
77.9
109.1
100.0
86.1
72.9
80.9
86.6
89.6
90.4
80.3
66.3
519
64.8
72.9
70.9
83.0
78.5
67.5
70.3
66.3
73.3
73.5
100.6
92.1
815
80.2
79.8
86.9
86.4
95.4
89.9
79.2
71.4
77.0
86.2
85.3
94.2
89.1
79.3
73.5
72.6
75.9
80.5
913
92.7
819
75.1
75.8
81.5
80.6
82.6
77.7
69.8
614
62.5
89.7
68.3
79.6
79.4
80.1
80.2
79.8
79.4
80.fi
80.7
80.5
80.6
80.9
79.1
78.3
80.4
80.6
78.3
77.1
79.3
79.5
78.2
77.6
78.3
82.7
81.9
84.5
84.1
82.8
82.1
84.9
86.1
85.0
85.1
85.7
77.4
77.3
77.2
77.6
78.0
78.0
77.9
77.8
78.3
78.8
78.7
86.0
85.4
86.3
88.3
8S.9
89.3
89.6
90.9
93.6
95.0
95.4
70.1
69.4
70.1
70.2
70.9
71.8
72.9
73.4
73.2
72,5
73.0
72.8
73.1
712
717
711
73.0
73.4
715
716
85.8
85.7
85.9
86.6
86.9
86.4
86.6
86.6
86.6
86.9
848
85.0
819
816
818
85.3
85.2
85.4
85.9
86.1
85.8
85.5
80.4
81.5
81.0
81.5
80.7
78.7
78.6
80.2
81.1
81.2
80.6
80.7
80.7
80.7
80.6
80.6
80.4
80.5
80.6
80.6
81.0
81.0
70.1
69.2
68.7
68.7
68.4
67.7
67.3
67.1
67.6
67.4
67.5
80.6
80.6
78.2
79.5
83.5
83.3
78.8
79.0
97.1
96.1
71.7
71.0
75.1
76.1
86.7
86.7
85.7
85.5
80.5
80.1
81 4
81.5
67.8
68.1
80.9
80.8
80.4
80.6
79.1
79.2
77.3
78.4
86.4
85.8
85.3
85.3
78.9
78.9
78.8
78.8
94.8
95.4
96.2
96.4
72.9
72.8
72.7
72.8
75.9
75.7
75.7
75.6
86.4
86.3
86.2
85.9
85.4
85.3
85.2
85.1
80.7
80.5
80.2
80.0
82.2
82.2
82.2
82.2
67.4
67.4
67.5
67.5
80.9
80.5
80.2
80.2
80.5
80.4
80.6
80.8
79.9
79.7
79.2
79.3
79.3
Year, month, or week
Farm
products
79.3
78.3
78.1
78.1
79.6
79.4
79.9
81.6
78.4
77.7
76.4
76.7
76.8
85.8
816
82.9
82.7
83.2
82.9
84.0
84.3
82.2
81.4
79.7
79.9
79.7
78.8
78.8
78.9
79.0
79.1
79.1
79.0
79.0
79.1
79.0
79.0
78.8
78.8
96.6
97.7
97.8
97.7
97.5
97.1
97.0
96.5
06.2
95.7
95.5
95.3
05.3
72.9
72.4
71.0
70.8
70.9
70.7
70.6
70.5
70.3
70.4
70.4
70.4
70.4
75.5
75.4
76.4
77.0
77.1
77.2
76.9
77.2
77.4
77.3
77.2
76.7
76.7
85.9
86.0
86,0
86.1
86.0
86.0
86.0
85.9
85.9
86.0
85.9
85.9
85.7
85.2
85.2
85.2
85.3
85.4
85.2
85.3
85.2
85.2
85.0
85.1
85.1
85.2
80.1
80.2
80.3
80.6
80.5
80.2
79.9
79.9
79.7
79.4
79.0
79.0
79.1
82.2
82.4
82.2
82.3
82.3
82.8
82.8
82.8
82.8
82.7
82.6
82.6
82.7
67.5
67.8
67.8
67.8
67.9
67.9
68.0
68.0
68.2
68.2
68.2
68.2
68.2
1929
1830
1931
1932
1933
1934
1935
1935—February.
March
April
May
June
JulyAugustSeptember
„
October
November
_
December
1836—January
February
Week ending—
1935-Dec.7.
Dec.l4...____.
Dec. 21
Dec. 28
1936-Jan.4_.
Jan. 11
Jan. 18,. _
Jan. 25
I"
Feb. 1
"
Feb. 8
Feb. 15
Feb. 21
Feb. 29
Mar. 7
Mar. 14...
Mar. 2 1 . . . / "
Mar. 28
"
Total
Hides and Textile Fuel and Metals Building ChemiHouseleather
lighting and metal
cals and furnishproducts products materials products materials drugs inc goods
Subgroups
Subgroups
Feb.
Nov. Dec. Jan.
77.9
83.1
73.5
76.6
87.4
72.8
78.9
89.1
70.8
78.3
90.3
72.7
87.0
91.9
63.6
87.9
77.2
81.1
97.2
63.2
913
80.8
83.7
97.2
63.7
97.fi
77.5
84.2
92.1
62.2
919
75.5
85.7
89.3
62.4
92.1
78.1
99.6 100.1 100.5
96.0 96.5 100.5
88.1 87.6 87.3
86.3 87.1 95.3
100.5
96.7
86.0
95.4
Feb. Nov. Dec,
Feb.
87.4
78.4
76.8
M PBODUCTS:
Grains
Jan.
METALS AND METAL PBODUCTS:
y
ucts...
Other foods'.".:
goots and shoes
Hides and skins
Leather.
agsg=
97.2
" 69.6
716
816
otton goo s . : : :
™ t goods
Sjfk d
n..:
worsted
go
Products.
M
petroieu^'irVducts::::::"::""
1936
1935
1935
Miscellaneous
78.5
83.3
63.6
28.1
73.6
68.6
80.7
85.8
63.2
35.0
80.7
68.5
81.0
86.0
62.2
33.7
81.0
68.1
80.8
80.4
61.8
33.5
81.4
67.8
80.7
78.1
62.0
31.6
82.8
67.2
82.3
96.4
88.8
90.3
87.7
48.7
83.0 82.9
98.5 98.7
88.9 89.6
86.2 '819
86.6 <84.5
52.5 52.8
82.3
98.7
92.7
83.1
83.2
514
82.6
100.1
93,7
Agricultural implements
Iron and steel
Motor vehicles
Nonferrous metals
BUILDING MATERIALS:
Brick and tile
Cement
Lumber
*
..........
Paint materials
Plumbing and heating
Structural steel
Other building materials
CHEMICALS AND DRUGS:
Chemicals
Drugs and Pharmaceuticals
Fertilizer materials
.
Mixed fertilizers
HOUSEFUKNISHING GOODS:
Furnishings
Furniture
MISCELLANEOUS:
Auto tires and tubes
Cattle feed
Paper and pulp
Rubber, crude
Other miscellaneous
Feb
86.1
93.6
67.2
916
87.0
93.8
71.3
916
86.9
93.6
70.6
916
87.1
93.6
69.7
90.6
93.9
80.5
78.8
67.1
92.0
90.3
88.3
95.5
81.8
80.3
71.1
92.0
90.6
88.9
95.5
81.5
80.0
71.1
92.0
90.0
88.4
95.5
82.2
79.6
71.7
92.0
90.2
86.9
93.6
C9.7
88.4
95.5
82.3
79.5
73.8
92.0
89.5
86.5
73.1
66.2
72.8
88.4
717
67.5
67.6
87.7
74.7
64.5
67.7
87.6
710
614
68.8
87.0
73.2
615
68.8
811
77.2
812
77,1
84.7
77.1
84.8
77.9
85.0
77.9
47.5
109.0
80.9
26.2
80.1
45.0
69.1
79.4
27.1
80.2
45.0
70.8
79.2
27.2
80.2
45.0
68.6
79.8
29.8
80.4
45.0
68.1
79.9
32.0
80.6
919
55.7
• Corrected.
of
Labor 8tatk?C F o £ m o n t n l y and annual indexes of groups, i
57363—36
7
Annual Report for 1934 (table 100); indexes of subgroups available at Bureau
306
FEDEEAL EESERVE BULLETIN
AFBIL 1936
INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES)
[Index numbers of tho Board of Governors; adjusted for seasonal variation. 1923*25 averageMOO]
1935
Industry
Feb.
Mann (hctarcit—Total,.
M a r . I Apr. I M a y I June I July I A u g . I Sept. I Oct. I N o v . I D e c .
88
84
84
67
83
66
60
67
66
63
67
IRON AND STEEL...
Pig Iron
Steel Ingots
,
86
53
70
105
82
128
166
108
76
133
Jan.
Feb.
89
91
95
104
97
'92
81
60
83
84
62
86
65
00
99
103
71
106
86
67
88
83
63
85
104
85
132
160
110
83
113
106
95
112
127
108
74
134
113
99
126
146
121
78
132
106
98
118
134
118
72
112
111
108
114
125
122
66
119
105
106
107
117
114
66
98
102
99
111
120
117
76
91
Slaughtering and meat packing.,
Catte.
C*~"""""""I"III
Calves
Sheep
Wheat flour
Sugar meltings
82
79
54
107
118
148
83
80
54
110
126
145
84
02
92
84
61
111
120
152
91
124
84
77
62
109
109
145
96
64
125
63
133
60
124
60
127
115
3
119
126
3
179
111
0
129
91
98
84
110
131
92
80
117
102
85
124
153
99
80
111
100
82
122
148
107
71
116
81
76
£6
101
109
131
00
86
77
73
51
98
112
151
88
75
80
77
68
96
113
157
88
80
78
74
54
94
108
161
83
88
74
67
44
92
106
151
91
75
74
69
46
93
115
154
76
76
50
107
119
159
73
78
78
76
60
107
124
144
82
81
82
57
111
117
154
88
78
61
122
69
123
119
64
121
63
124
60
118
58
120
62
127
61
124
106
8
89
110
14
56
100
10
21
95
3
15
78
2
35
110
'96
93
91
112
119
110
'95
91
90
112
119
115
r98
93
88
120
126
114
100
98
87
119
123
104
97
90
104
106
109
109
95
'89
86
121
118
105
93
91
77
114
113
71
1
64
104
94
90
83
115
110
105
97
98
74
119
110
109
105
rlO5
84
124
111
124
'105
103
95
118
137
118
103
96
103
122
127
110
96
95
85
109
120
47
183
51
185
65
155
68
162
52
169
44
167
47
179
52
193
200
269
47
225
49
161
73
FOOD PRODUCTS
90
95
102
99
71
135
45
166
Cotton consumption
Wool
Consumption
Machinery activity »
Carpet and rug loom activity L
Bilk deliveries
100
95
97
07
'115
65
122
103
8
TEXTILES
81
97
84
73
85
91
92
02
80
81
103
105
155
196
105
102
94
95
153
191
108
101
94
90
153
194
91
96
100
87
160
204
94
104
100
166
214
99
105
97
87
168
220
91
100
92
84
169
219
93
103
100
91
172
223
92
110
102
95
176
227
Q5
110
103
97
176
225
94
115
106
100
173
220
86
121
104
106
169
214
94
121
96
104
172
215
94
130
98
103
83
91
75
78
56
79
82
55
86
60
92
96
62
102
105
80
104
106
84
133
137
102
142
147
104
124
128
138
67
193
134
66
186
138
67
193
140
70
196
130
67
178
129
69
175
138
70
190
137
69
191
147
73
205
148
73
208
148
75
207
84
81
87
93
92
101
103
110
69
71
131
63
73
63
61
79
97
133
53
79
55
47
55
62
134
50
80
59
73
58
36
133
54
81
60
58
65
135
62
84
59
71
74
48
140
71
48
144
44
82
67
77
71
146
80
70
14S
92
93
143
PAPER AND PRINTING:
Newsprint production
,
Newspaper consumption....
TRANSPORTATION EQUIPMENT:
Automobiles--*
Locomotives
Shipbuilding
LEATHER AND PRODUCTS
Tanning.......
Cattle hide leathers
Calf and kip leathers „,
Goat and kid leathers
Boots and shoes
94
1,
48
CEMENT AND GLASS:
Cement
Glass, plate
_,
NONTSRROUS METALS: *
Tin deliveries»
FUELS, MANUFACTURED:
Petroleum refining
Gasoline'
Kerosene
Fuel oil i
Lubricating oil *
Coke, byproduct
,
,
RUBBER TIRES AND TUBES..
Tiresf pneumatic—
Inner tubes.
TOBACCO PEODUCTS...
Cigirs
Cigarettes
101
104
76
133
69
183
Minerals—Total.
Bituminous coal.*
Anthraci te
Petroleum, crude
Iron ore
Zinc
Lead
,
Silver.
97
81
67
132
t Without seasonal adjustment.
^—
—
130
67
180
87
54
132
130
* Includes also lead and zinc; see "Minerals."
-««""w »*ou IOUU ana zinc; see "Minerals
SepSrlf^ S W S f f l S A S l ^ f t '
WOOdpulp, cbemfoal
re sions
"
_ _
» Preliminary.
* Eevised.
•
™ B L K SVMMMrh I3 , p
U ^ ^ Ta < r a
c 9 27
wood palp,p3pOrboI03, aadgSBSg£5$SSMb^?l^ttatataS?&l^^%S^l£S.
'"77
62
97
' ^ ""'
FEDERAL EESERVE BULLETIN
Arm 1936
307
INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES)
[Index numbers of the Board of Governors; without seasonal adjustment.
1923*25 average=100]
1036
1935
Industry
Feb.
Nov.
Dec.
91
91
91
87
84
83
87
89
96
98
96
95
»94
81
58
83
74
£6
76
72
57
73
66
79
68
81
83
60
85
85
65
87
89
70
91
90
67
64
50
66
83
67
85
87
64
89
100
94
96
104
99
71
130
100
90
108
127
92
80
116
101
88
117
141
99
80
110
95
79
114
97
75
119
99
77
126
149
110
83
117
106
92
115
133
108
74
141
116
102
134
161
121
78
132
111
101
124
146
118
72
116
105
100
114
110
108
106
117
131
117
79
75
62
89
101
123
87
84
75
69
51
86
114
137
83
88
76
69
62
85
123
148
80
93
78
72
73
66
109
160
78
88
86
86
84
49
129
123
170
99
74
86
87.
60
123
120
146
93
67
82
91
71
158
78
99
45
86
110
147
80
89
74
66
41
92
111
154
77
102
81
74
52
91
122
59
128
60
127
65
124
64
123
£8
105
56
107
62
125
61
132
130
8
69
141
8
88
108
13
71
114
10
27
100
3
22
69
2
51
29
1
64
113
94
92
80
115
125
112
'95
93
79
119
123
105
95
93
83
110
112
100
104
107
95
86
100
113
115
116
95
90
93
111
130
34
199
50
205
65
169
71
165
63
168
81
97
84
73
156
196
107
102
94
08
153
191
105
101
94
92
153
194
90
96
100
87
160
204
90
104
100
89
110
114
80
102
105
74
103
107
75
121
60
166
"
Oct.
73
Slaughtering and meat packing
Hogs. . . .
Cattle
Calves
Sheep..
Wheat
flour
Sugar meltings
Sept.
27
179
FOOD PRODUCTS
Aug.
112
100
'99
84
116
120
Consumption
...
Machinery activity
..
Carpet and rug loom activity
Silk deliveries
July
111
8
48
TEXTILES
Cnf-tonfinTifmnipttnTl.
wool
-„.„ . : : : " • ; • :
June
61
121
Pig iron
Steel ingots...
May
'106
'102
101
105
'115
65
130
.
Apr.
84
£8
87
Manufactures—Total.. . . .
IRON AND STEEL
Mar.
124
61
171
92
90
53
133
107
71
103
139
108
76
126
69
92
126
122
66
106
LEATHER AND PRODUCTS
Tanning.......
Cattle hide leathers
Calf and kip leathers
Goat and kid leathers.—.
Boots and shoes.
142
81
52
57
90
101
13G
93
91
63
134
63
137
61
119
60
125
78
1
35
125
4
106
126
3
138
108
0
92
94
120
100
94
96
121
132
115
103
101
'88
124
123
'104
103
104
80
122
105
'106
109
112
102
100
99
97
99
101
57
169
69
181
59
193
85
91
92
166
214
92
105
97
85
167
220
85
100
92
81
169
219
88
103
100
88
96
99
68
95
99
65
81
84
57
127
63
175
136
68
188
150
73
212
79
88
60
71
132
80
73
62
50
95
••88
100
106
86
116
108
116
121
£3
192
46
202
29
201
29
174
92
80
81
103
105
173
223
94
110
102
93
176
227
100
110
103
97
176
225
101
115
106
102
174
22093
121
104
107
170
214
96
121
96
105
172
215
96
130
93
106
91
94
68
97
99
80
91
93
76
99
102
75
114
117
87
152
73
215
139
70
192
143
79
193
148
85
200
99
103
75
140
82
189
119
55
168
141
56
204
135
65
188
97
84
85
92
100
'100
106
50
51
137
102
75
57
62
£7
36
136
109
75
57
£9
61
65
139
119
79
56
68
82
62
141
105
78
70
95
80
50
143
37
82
70
73
96
71
85
136
105
76
56
46
82
69
142
88
75
142
98
99
140
86
70
89
63
82
64
68
'Do
NONFEBROUS METALS: 1
Tin deliveries
FUELS, MANUFACTURED:
Petroleum refininz
Gasoline....
Kerosene
Fuel oil
_ Lubricating olL.Jl~.'_ll
Coke, byproduct..
mm"
"
RUBBER TIRES AND T U B E S .
Tires, pneumatic
Inner tubes
TOBACCO PRODUCTS
£prs
. Cigarettes..
Minerals^Total.
1
gassy**
iMeum^e....;;;:;::::;-;;;;:-------;1
87
45
130
£1
72
130
79
52
70
Zinc
'86
72
129
78
66
£5
78
67
49
IncludAA flism Tpari onri ?fm.• SAA "1VNnArfll
82
75
81
127
CEMENT AND GLASS:
Cement...
Glass, plate
75
98
115
120
104
37
119
119
168
97
TBANSPOSTATION EQUIPMENT:
Automobiles
Locomotives
Shipbuilding
111
108
120
114
66
112
Feb.
92
96
81
112
112
154
89
82
74
63
38
PAPER AND PRINTING:
Newsprint production
Newsprint consumption
Jan.
V
Prelim inary.
74
' R e v iscd.
78
113
•
FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES
[Adjusted to Census of Manufactures through 1031. 1923-25 average^ 100]
Factory pay rolls
Factory employment
Ithout seasonal adjustment
Without seasonal adjustment
variation
Industry and group
1935
1036
ibruary January
83. 3
Total.
83.0
'ebruary
ibruary
1935
1936
1935
1936
fanuary F e b r u a r y F e b r u a r y January February
'81.4
83.9
84.9
'82.1
72.3
72.2
69.1
77.6
77.6
65.6
80.2
57.4
56.4
103.3
58.9
97.9
146.8
70.6
72.2
60.4
76.1
55.8
49.2
92.2
55.3
89.2
120.0
65.2
68.2
34.1
65.2
61.2
41.2
78.8
44.8
86.1
124.0
64.4
68.0
32.8
64.9
52.6
39.0
64.6
45.3
90.9
130.2
63.8
26.6
60.0
49.6
33.1
63.3
37.6
77.3
114.2
76.0
76.6
54.3
80.1
£6.6
67.5
95.7
67.7
91.4
139.1
75.8
77.1
63.2
79.6
57.4
55.2
87.7
67.4
91.6
146.1
70.7
72.9
48.6
78.4
56.2
49.6
89.0
53.8
85.4
122.5
75.9
75.8
66.4
77.8
66.2
57.0
99.2
59.4
95.5
136.2
92.5
136.3
71.4
112.6
80.0
103.6
194.4
70.6
92.5
133.9
72.1
108.2
79.1
102.4
213.1
69.5
82.0
92.7
67.5
85.5
72.0
76.9
186.0
64.8
93.5
128.1
71.4
111.9
79.6
101.2
237.1
94.6
129.4
72.1
110.2
80.3
101.4
253.1
83.1
87.1
67.5
85.0
71.6
75.1
226.8
64.0
79.2
165.3
61.0
84.3
68.3
96.4
113.8
63.4
78.3
162.0
61.3
81.2
66.7
94.7
126.2
62.3
100.9
55.0
69.9
55.7
63.2
103.2
52.6
100.4
113.8
60.6
24.1
82.0
103.1
118.1
48.5
20.5
83.9
100.9
117.5
43.6
30.9
72.8
93.0
110.4
54.4
24.4
78.0
104.4
119.3
54.4
21.2
81.4
98.4
114.1
46.9
31.4
69.3
80.5
87.3
54.0
10.9
75.3
89.6
99.7
51.8
8.2
77.2
110,3
43.4
13.6
59.7
53.2
65.6
57.6
55.9
65.0
65.2
52.9
65.9
51.9
59.0
65.5
58.4
66.7
65.0
56.1
53.6
65.9
52.7
57.8
62.5
57.6
52.2
60.8
51.7
48.0
59.7
47.2
89.3
87.2
82.2
66.4
90.1
109.2
89.4
87.6
83.0
66.7
90.4
110.5
••81.6
80.8
68.3
67.5
75.0
'105.4
88.3
85.6
82.3
66.
88.
107.9
90.4
38.0
85.0
69.3
88.9
114.2
'80.6
79.3
68.4
67.6
73.4
'104.2
72.4
70.3
73.6
48.8
63.5
90.7
72.7
71.3
78.3
49.3
63.3
90.8
'63.7
63.2
57.4
51.5
48.0
'85.2
53.4
72.6
46.7
34.7
62.9
71.
45.5
34.4
49.4
66.9
37.9
32.7
54.9
73.
46.3
36.3
54.8
74.4
46.9
36.0
50.8
67.6
38.4
34.2
41.4
54.3
35.9
24.8
41.1
51.8
'36.1
25.2
34.8
47.1
25.3
21.4
51.0
3a 0
38.0
93.8
67.7
50.8
31.0
38.0
92.0
66.3
49.6
54.0
34.5
42.7
96.2
66.9j
65.8
35.3
42.8
100.0
67.6
52.4
29.6
42.4
94.1
70.6
38.7
19.4
23.8
83.8
63.1
38.0
20.0
23.4
82.3
48.8
34.8
15.0
22.1
76.6
50.3
96.1
93.4
76.9
91.2
110.1
113.1
66.2
97.4
97.9
05,0
128.0
5& r
103.1
95.1
94.0
77.2
91.7
110.2
111.
98. <
94.4
91.9
75.2
89.9
106.2
111.6
99.
95.'
95.
92.
122.
54.
104.
95.0
93.0
75.3
90.3
108.6
111.1
70.7
95.8
95.3
91.8
124.2
57.2
97.2
96.6
95.6
68.1
95.3
113.6
111.1
80.1
92.1
94.7
89.4
121.4
61.6
100.8
81.1
79.9
69.8
78.5
91.7
107.1
51.3
77.2
78.6
76.8
94.5
51.7
96.0
79.1
80.0
66.1
78.5
92.4
102.0
57.4
78.4
72.6
70.4
8S.9
48.8
85.8
84.5
84.5
60.5
82.8
100.6
112.1
70.0
74.9
79.6
71.8
101.6
58.7
06.7
91.
00.
05.
87.
86.
93.
89.2
87.5
96.0
89.7
88.9
93.2
79.9
74.6
96.6
79.1
72.7
99.7
82.5
79.2
02.6
91.
92.
'94.
Baking
111.
111.
111.
Butter.
67.
67.
67.
Canning and preserving.
56.
61.
'63.
Confectionery
73.
73.
80.
Floor
73.
73.
76.
i.Includes current statistics for one or more industries not shown separately.
101.
114.
103.1
113.6
74.9
128.1
75.0
74.2
'106.2
113.8
75.8
'131.4
81.0
76.8
84.7
99.8
63.1
66.1
64.3
68. a
87.3
99.0
52.7
'70.4
65.7
67.2
r83.8
03.7
52.2
64.8
70.3
66.1
IRON AND STEEL AND PRODUCTS'.
Blast furnaces and steel works
Cast-Iron pipe
Cutlery and edge tools
Hardwaro
Steam, hot-water heating apparatus, etc
Stovos
Structural metal work
Tin cans, etcWlrework
•
MACHINERY!
•
Agricultural Implements
Electrical machinery, etc
Engines, turbines, etc
Foundry and machine-shop products..
Machino tools
Radios and phonographs
Textile machinery
TRANSPORTATION EQUIPMENT*
Automobiles
Cars, electric and steam railroad..
Locomotives
Shipbuilding
RAILROAD REPAIR SHOPS.
Electric railroads
Steam railroads
NONTERROUS METALS AND PRODUCTS >.,
Brass, bronze, and copper
Lighting equipment
Silverware and plated ware
Smelting and refining
Stamped and enameled ware
LUMBER AND PRODUCTS I . . .
Furniture
Lumber, millwork
Lumber, sawmills
STONE, CLAY, AND GLASS PRODUCTS L
Brick, tile, and terra cotta
Cement
Qlass
Pottery
TKXTILX3 AND PBODUCTS I
A, Fabrics i
Carpets and rugs
Cotton goods
Dyeing and finishing
Knit goods
,
Silk and rayon goods
Woolen and worsted goods.
B* Wearing apparel *
Clothing, men's
Clothing, women's
Millinery
Shirts and collars
LEATHER AND PRODUCTS.
Boots and shoes
Leather
FOOD PRODUCTS *
,
,
89.
88.
96.
70.:
97.
93.
91.
121.
56.
04.
©7.
25.7
37.8
91.
71.4
97.:
69.'
96.'
117.112.
81.
93.
96.
91.
125.
66.
64.:
76.
118.
74.
74.
64.1
94.7
309
FEDEBAL RESERVE BULLETIN
AFBIL 1936
FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES—Continued
[Adjusted to Census of Manufactures through 1931. 1923-25 average=!00]
Factory employment
Without seasonal adjustment
Factory pay rolls
Adjusted for seasonal
variation
Without seasonal adjustment
Industry and group
1935
1936
1935
1936
1935
1936
February January February February January February February January February
FOOD PRODUCTS >—Continued
58.0
81.7
78.7
Chewing and smoking tobacco and snuff
Cigars and cigarettes
PAPEB AND PRINTING
Boxes, paper
„„
Paper and pulp
„,
Book and job printing
Printing, newspapers and periodicals
CHEMICALS AND PETROLEUM PRODUCTS I
A. Chemical group, except petroleum i
Chemicals
Druggists' preparations
Explosives.. „
Fertilizers
Paints and varnishes
Rayon and allied products
Soap
B. Petroleum refining
RUBBER PRODUCTSI
Bubber boots and shoes
.Rubber tires and inner tubes
..
..
61.3
87.2
81.5
66.7
80.3
82.0
67.9
82.4
79.6
70.4
85.7
84.9
48.6
73.8
67.1
49.0
'81.6
68.4
49.6
76.5
69.6
52.2
67.3
50.2
57.3
72.6
55.3
67.7
68.7
56.3
43.4
65.0
40.6
41.7
67.6
38.4
40.8
66.7
37.5
97.5
84.9
108.7
88.9
101.0
96.7
84.6
108.7
89.3
98.0
55.7
63.4
54.7
98.0
85.6
109.2
89.6
iO1.4
56.0
64.2
55.0
98.2
84.4
109.2
90.5
10L7
TOBACCO PRODUCTS
58.5
84.9
76.4
55.3
67.0
53.8
Ice cream
Slaughtering and meat packing
Sugar refining, cane
96.8
85.4
108.7
86.9
100.6
96.4
85.8
108.7
88.4
97.8
8S.9
77.5
93.4
81.6
94.6
88.2
76.3
91.7
81.4
94.1
109.1
109.2
107.1
97.7
88 6
94 1
107.2
347.2
96.4
108.6
109.7
110.0
107.4
97.6
86.8
92.8
107.1
353.6
97.1
108.7
109.4
109.9
102.8
102.4
89.3
120.3
102.2
346.8
102.1
107.3
108.3
108.0
105.4
96.8
88.6
89.2
107.3
347.2
96.0
109.9
109.8
109.5
105.9
95.4
86.0
96,2
109.6
353.6
93.8
110.8
108.6
108.6
10L2
101.4
89.3
114.0
102.3
346.8
101.7
108.7
81 8
57.8
70.1
82.0
59.2
70.5
'84.2
••59.1
r 75.3
82.3
57.7
70.8
83.4
57.6
72.7
'84.8
'59.0
••76.1
97.8
97.2
99.9
94.2
80.8
76.8
93.5
260.8
94.5
9S.9
69.0
49.7
59.0
97.9
97.5
99.7
95.3
75.8
79.5
91.8
264.4
94.9
99.5
70.2
53.2
59.9
84.1
76.6
86.8
78.1
88.8
93.2
92.6
91.0
97.9
76.6
91.1
83.7
252,3
94.3
95.8
71.9
49.4
65.8
i n c l u d e s current statistics for one or more industries not shown separately.
h
n
r actor
r 7 ?on e in d ebxaecs k f o fi f factory employment and pay rolls unadjusted for seasonal vana
NOTE.—Thea indexes for ures sy eemployment and pay rolls unadjusted for seasonal varia
S
P o n a n d b a c k fi ures s e e
e BULLETIN for M a y 1934, pp. 270-271. For description
p. 7
Jj
^
factnrv SJi V y m e n d
V
S
S
BULLETIN for M
y m lo
t
see BULLETIN for June 1934,
flS™ n ?
compiled b y the F . R. Board of Governors,, see BULLETIN for June 1934, pp. 324-343, and December 1
preliminary, subject to revision.
agures are for pay-roll period ending nearest middle of month. February 1936 figures are pr<
310
FEDERAL RESERVE BULLETIN
APRIL 1936
CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION
[Figures for 37 States east ol the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars]
Residential
Total
Commercial
Public works
and public
utilities
1935
Factories
1935
Month
1935
January.—-
99.8
75.0
122.9
124 0
126.7
148.0
159.3
168.6
167.4
200.6
188.1
264.1
......
March
April
May"
June
July
August
October.
November
December
...
..
Year
1936
1935
204.8
142.1
1,844.5
22.4
16.6
32.2
42 2
44.9
49.8
48.4
40.5
41.8
55.1
39.7
45.1
•
1936
37.4
31.2
„„,.
478.8
1935
1936
7.1
7.8
6.5
6.3
9.8
9.5
14.6
10 6
6.0
12.0
8 9
9.9
10.8
9.2
12.2
15.2
13.9
15.0
15.8
17 3
13.6
16.6
12.8
12.0
9.0
13.4
108.9
CONSTRUCTION CONTRACTS AWARDED, BY
DISTRICTS
[Figures for 37 States east of the Rocky Mountains, as rep orted b y th«
F . W. Dodge Corporation. Value of contracts in thousand s of dollars]
1936
15.6
12.6
164.5
1936
44.4
27.8
46.3
40.5
31.4
39.1
53.9
69.5
76.1
86.3
80 3
94.5
76.9
48.3
Educational
1935
3.7
5.8
10.4
8.3
9.0
17.7
9.2
8 7
4.3
9.2
24.7
62.6
AUother
1935
1936
COMMERCIAL FAILURES, BY DISTRICTS
[Figures reported by D u n & Bradstreet.
dollars]
Amounts in thousands of
Liabilities
1935
Federal Reserve district
February
Boston
New York
Philadelphia
Cleveland.
Richmond
Atlanta....
Chicago—
St. Louis
Minneapolis
Kansas City
Dallas
Total (11 districts)
26.fi
15.5
228.7
173.5
690.2
Number
1936
11.4
7.9
15.4
11.5
17.7
16.8
17.4
21.9
25.6
21.3
21.7
4a i
39.5
2L1
1638
January
February
13,931
27,829
9,382
13,388
13,227
12,588
23,490
7,730
3,606
4,293
12,586
12,982
39,531
14,103
17, SCO
23,714
19,581
40,365
12,184
4,890
10,716
8,868
3,802
13,214
4,493
6,535
8,204
8,702
11,350
6,794
2,548
3,479
5,927
142,050
204,793
75,047
Federal Reserve
district
1936
1935
February
January
Boston
New York
Philadelphia
Cleveland..
Richmond.
Atlanta...
Chicago.
St. Louis
Minneapolis^.
Kansas C i t y . . .
Dallas
San Francisco
87
267
34
79
43
21
96
50
16
40
26
97
109
391
74
62
44
34
121
35
IS
49
39
101
Total
856
1,077
r
Revised.
1935
1936
February
Febru- February
ary
January
105
'282
61
76
39
33
'113
40
IS
40
28
'121
1,708
4,383
627
1,917
1,608
108
1,405
722
221
173
281
936
2,325
7,769
1,103
685
1,118
282
1,938
403
134
435
339
1,573
1,330
re, 020
1,087
961
S06
248
'2,150
635
233
202
315
'1,230
'956
14,089
18,104
'15,217
FEDERAL RESERVE DISTRICTS
O k l a h o m a City
DALLAS®
TEXAS
BOUNDARIES OP FEDERAL RESERVE DISTRICTS
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