Full text of Federal Reserve Bulletin : April 1940
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FEDERAL RESERVE BULLETIN Review of the Month—Recent Business Developments Investments and Liquidity of Member Banks United States Government Corporations and Credit Agencies in 1939 From the Board's Correspondence—The Authority to Issue Federal Reserve Notes; The Federal Reserve Banks Are Public Institutions Historical Review of Objectives of Federal Reserve Policy BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Contents PAGE Review of the Month—Recent Business Developments . 273-278 Historical Review of Objectives of Federal Reserve Policy, by Arthur Hersey . . 279-289 From a Legal Standpoint: Applicability of Social Security Act to Federal Reserve Banks, National Banks and State Member Banks 290-292 Investments and Liquidity of Member Banks, by Victor M. Longstreet 293-297 United States Government Corporations and Credit Agencies in 1939, by Henry Edmiston and Gunhild Anderson 298-305 From the Board's Correspondence: The Authority to Issue Federal Reserve N o t e s . . . . . 306-307 The Federal Reserve Banks are Public Institutions. . . 307 Current Events 308 Report of the Federal Deposit Insurance Corporation... 309-310 National Summary of Business Conditions 311-312 Financial, Industrial, Commercial Statistics, United States (See p. sis for list of tables.) 313-350 International Financial Statistics (See p. S51 for list of tables.) . 351-373 Federal Reserve Publications Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council 374 Senior Officers of Federal Reserve Banks; Managing Directors of Branches . . . 376 Subscription Price of Bulletin The FEDERAL RESERVE BULLETIN is issued monthly by the Board of Governors of the Federal Reserve System and is sent to member banks without charge. The subscription price in the United States, Canada, Mexico, and insular possessions is $2.00 per year or 20 cents per single copy; elsewhere, $2.60 per year or 25 cents per single copy. 375 />/ T h r I /. M . I m i l d i n n . o n ( o i l - t lilt IIO1) ( o n >t it u t i o n n !! a n c f . \ i r n i i t at 2(>i'n I i s i t o r s a i r l M . . /> , t p r n i c r l <•<> i n < \ t o tin- j m h l i r J t i t i n i : o l l u r h o i n > FEDERAL RESERVE BULLETIN VOL. 26 APRIL No. 4 1940 J2u5ine£3 t?eirelopntent5 During the first quarter of 1940 economic activity in the United States declined considerably from the high level Recent changes reached toward the end of in national 1939. Changes in different income lines of activity in this period of reaction were unusually complex, so that measurements of the extent of the decline and interpretation of the position at the end of the quarter are exceptionally difficult. It appears that total income payments in March, while below those of December, were considerably above those of last summer, the decrease being about one-third of the earlier advance. The decline after the end of last year reflected mainly reductions in wage payments in manufacturing industries. In the building industry and in the trade and service industries changes in income payments were largely seasonal, and agricultural income was well maintained during the first three months of this year. Dividends were at an advanced level, following sharply increased corporate profits in the latter part of 1939. The decline in total income payments shown on the chart for the first quarter of this year did not reflect in full the actual decline in economic activity, as payments in many instances were made for activities and transactions that occurred earlier. The Board's index of industrial output, on the other hand, is dominated by items that fluctuate more widely than total Course of business activity and, therefore, exaggerated both the preceding advance and the subsequent decline, even in the volume of manufacturing and mining. This is primarily because the index is composed largely of data reflecting operations in the early stages of the industrial process, where output increased faster last autumn and decreased more rapidly during the first quarter of this year than did activity in the more advanced processes of production. In March the Board's adjusted index, at about 105 per cent of the 1923-1925 average, was down 23 points from the December peak and was only slightly above the average of 102 for last July and August. Taking into account the sustained high level of activity in some lines not adequately represented in the index, SELECTED BUSINESS SERIES 1937 1938 1939 1940 Sources: Income payments series, Department of Commerce; industrial production, Board of Governors of the Federal Reserve System; common stock prices, Standard Statistics Company; wholesale commodity prices, Bureau of Labor Statistics. Latest figures shown are estimates for March. 273 Review of the Month as, for example, the machinery industries, it appears that activity at factories and mines in March was above the level of last summer by between 5 and 10 per cent. Important differences in the course of output since last summer as between production of steel and activity in most Steel and steel- leading domestic steel-consumconsuming ing industries are shown on industries the chart, which is based on data for man-hours worked. The fact that activity at steel mills rose much further by the end of the year than activity in domestic steel-consuming industries reflected in part an increase in exports of steel products. It resulted in larger part, however, from the greater demand for steel for inventories and from the greater speed with which production of steel could be stepped up. Large orders for machinery placed last autumn and worked on only in part during 1939 provided a backlog which together with a substantial volume of new orders sustained activity in these lines in the first quarter of this year. Meanwhile activity at steel mills declined sharply and output of ingots dropped from a level of STEEL AND STEEL-CONSUMING INDUSTRIES MAN-HOURS WORKED ADJUSTED FOR 8EA8ONAL VARIATION, 1939 AVERAGE • 100 140 140 130 130 120 120 110 no slightly over 90 per cent of capacity in the atter part of the year to about 64 per cent in March. In recent months exports of semifinished and finished steel products have amounted to about 9 per cent of steel-making capacity as compared with around 4 per cent ast summer. About half of this increase has been to Latin American countries. Shipments to Europe have also risen sharply, principally those to the United Kingdom; and Canada, Japan, the Philippines, and the Dutch East Indies have taken substantially larger amounts. Maintenance of activity in domestic steelconsuming industries has reflected large output in many lines. Automobile production in the first quarter amounted to about 1,260,000 cars and trucks, which was one of the largest totals on record for such a period. In the machinery industries output has been maintained near the levels reached earlier, and the shipbuilding and aircraft industries have been operating at near-capacity levels. Activity in industries manufacturing other durable goods, including lumber, cement, and plate glass, has fluctuated considerably since last summer but less than output in the steel industry. In the nondurable goods industries changes have been less marked than in the durable lines. Output of nondurNondurable goods 100 100 V7 8TEEL-CONSUMING * - * • X 90 90 80 _J 1939 I I L_ 80 1940 "Steel" represents man-hours worked at blast furnaces, steel works, and rolling mills. "Steel-consuming" represents manhours worked in the machinery, transportation equipment, and other steel-fabricating industries. Part of the work done at steel mills is on products, like rails and structural shapes, which are used domestically without further manufacturing, and on products which are exported. Latest figures shown are estimates fo: March. 274 relatively higher levels during the first half of 1939, as indicated by the chart on the next page. In the third and fourth quarters there were increases, but recent declines have brought activity in this group of industries back to the level of last summer. Reductions have been particularly marked in the woolen and silk textile industries, and recently output in these lines has been considerably below last summer. Production of cotton and rayon textiles, on the other hand, and also output of manufactured meat products, have remained near the high levels reached early last autumn. In industries producing shoes, tobacco, paper, FEDERAL RESERVE BULLETIN Review of the Month tires, and petroleum products, current activity is about the same as last summer. Mineral production has been maintained at a high level this year. Coal production has declined, but output of crude peMinerals troleum has been at record levels. Output of nonferrous metals, which had risen sharply in the latter part of 1939, has subsequently been largely maintained. Exports of copper were unusually large in December and January, but in February there was a sharp reduction. INDUSTRIAL PRODUCTION POINTS IN TOTAL INDEX 1935 1936 1937 1938 1939 1940 Latest figures shown are estimates for March. The situation with regard to final disposition of various types of finished goods produced is also unusually mixed. Domestic The dollar value of general consumption merchandise sold by department stores, variety stores, and mail order houses declined by more than the usual seasonal amount after Christmas, partly because of unusually severe weather. Sales in dollar amounts have continued somewhat larger than a year ago, but this has reflected at least in part an advance in prices. Retail sales of automobiles were unusually large in JanuAPRIL 1940 ary and February and the level in March appears to have been high, although up less than seasonally from February. In private residential building, contract awards showed a decline in January but subsequently rose, and the level indicated for the quarter is about the same, on a seasonally adjusted basis, as that prevailing during most of 1939. In the field of producers' durable goods, a considerable part of the deliveries now being made in large volume are on orders placed last autumn. Figures of the Department of Commerce for January show that new orders, reported chiefly for durable manufactures, were not so high as last autumn but were well above the corresponding month of 1939. This higher level may reflect to some extent the influence of foreign buying, but is probably due in considerable part to increased domestic purchases of both producers' and consumers' durable goods. In the export field, shipments of many industrial products have been large this year, continuing substantially above last Exports s u m m e r ? w hile shipments of a few, notably petroleum and products, have been reduced. Differences in the volume of foreign business in various lines—demand being concentrated on airplanes, iron and steel products, nonferrous metals, machinery, and the like—have accounted in part for the diversity in production rates in this country. Much of the demand for these goods both by belligerents and other nations reflects directly war developments and is largely independent of developments in this country. Cotton exports have been in large volume, while shipments of many agricultural products, and particularly tobacco, have remained at a low level. In February exports of United States merchandise totaled $339,000,000, which is more than half again as large as a year ago and a less than seasonal decline from the DecemberJanuary level. Shipments of cotton, aircraft, and copper were somewhat below the high levels of January, while changes in other 275 Review of the Month industrial export items were on the whole must take into account the possibility that for small, with earlier advances maintained. a time production may be below consumption, Shipments of iron and steel rose somewhat with some liquidation of the inventories accufurther, and exports of metal-working ma- mulated earlier, when output was clearly in chinery and chemicals remained well above excess of consumption. At the same time due their levels of last summer. Exports of petro- consideration should be given to the fact that leum and its products, which had not risen inventory accumulation, while rapid from materially after the outbreak of war, de- September to the early part of this year, exclined, while those of automobiles showed tended over only a short period; that in lines little change from January at a figure slightly where activity is being sustained at high below that reached in December. Agricul- levels the volume of inventories required, intural commodities other than cotton showed cluding goods in process, is larger than last mixed movements, with little change in the summer; and that during a period like the present it may appear advantageous, in the total as compared with last year. Exports to Japan, which had risen sharply case of some commodities, to keep more infollowing notice by the United States last ventories than usual. July that the trade treaty with that country Department of Commerce data show that would cease to be effective on January 26, at the end of January the value of inventories fell abruptly in February. The decline re- at manufacturing establishments was 7V2 flected smaller purchases of cotton, petroleum, per cent larger than a year earlier and that iron and steel, copper, and metal-working there was a slightly greater percentage rise machinery. Exports to the United Kingdom, in wholesale stocks. How much of this rethe Netherlands, and Soviet Russia also de- flected price changes is not readily detercreased substantially. The decline in exports mined ; data available on the physical volume to the United Kingdom was principally in of stocks relate in many cases to industries cotton shipments, and the Netherlands took where inventories actually decreased last less cotton and petroleum. Copper exports to autumn through transfer of goods to more adRussia fell sharply. Declines in aircraft and vanced stages. In retail establishments there cotton shipments to France were offset by in- appears to have been relatively little increase creases in other products. Exports to Bel- in inventories; at department stores the rise gium increased sharply, reflecting mainly the apparently was no more than that indicated sale and transfer of eight merchant vessels for prices. Automobile dealers, on the other to that country. There were also larger ex- hand, are reported to be holding larger stocks ports to the Scandinavian countries, Italy, of new cars than is usual at this season. and Canada, while trade with Latin America Backlogs of orders, important for the most declined slightly. part in the durable goods industries, were In the aggregate the volume of industrial generally larger at the end of January than products delivered in March for export and a year earlier, except in public construction, for domestic use was prob- where a year ago a large volume of Public InventoHes, new ably substantially larger Works Administration contracts had just rnfiTledaordders than last summer. It is diffi- been awarded. For manufacturing establishcult to determine on the basis ments, excluding the transportation equipof available data precisely how the volume of ment industries, reports indicated a volume consumption has compared with the volume three-fifths larger; and in transportation of production, but it appears likely that con- equipment the increases for the airplane and sumption currently is at least as large as pro- shipbuilding industries were exceptionally duction. Any appraisal of the present position large. Reports indicate that during January, 276 FEDERAL RESERVE BULLETIN Review of the Month and subsequently, backlogs were drawn down somewhat, as new orders were below the level of shipments. The general level of wholesale commodity prices has shown some decline this year, reflecting chiefly decreases in Commodity prices p r i c e g Qf i n d u s t r i a i r a w a n d semi-finished materials. The index of the Bureau of Labor Statistics was 78 in the third week of March as compared with 79.5 early in January and 75 last August. The principal decreases came during January, but in the middle of March, after a month of little change, there was some further weakness in prices of industrial materials. Prices of nonferrous metals showed some declines following small increases in the latter part of February, and there were continued declines in textile yarns and fabrics. Prices of certain other industrial materials, such as cotton and rubber, however, showed little change. Certain of the finished industrial products that had shown the largest price advances last autumn—including various textile, paper, and petroleum products—have also declined this year. Prices of foodstuffs, on the other hand, have shown little change, the principal fluctuations being in grain prices, influenced partly by prospective changes in the domestic winter wheat crop. Livestock prices have remained at earlier reduced levels, as marketings have continued unusually large. In retail markets prices of foods have shown some advances this year, and in the middle of February the index of the Bureau of Labor Statistics was at 78 per cent of the 1923-1925 average as compared with 77 in December and a year ago. After holding relatively steady during February, prices of long-term Treasury bonds increased sharply, following Government ^e announcement by the security market Ireasury on March 5 that the June 15, 1940, notes would be refunded into a new note issue. This raised prices of long-term bonds to the highest levels since last summer. The yield on the 1960-1965 APRIL 1940 issue declined to 2.28 per cent at the close of March, compared with 2.26 per cent at the all-time peak on June 5, 1939. The average yield on 3- to 5-year Treasury notes declined to 0.40 per cent. Treasury financing in March consisted of the refunding of Treasury notes maturing in June 1940 into a new 5-year % per cent note. This coupon rate is as low as any ever offered on a 5-year note, the other issue at that rate being that of the June 1944 notes. Approximately $720,000,000 of the maturing notes were exchanged for the new note issue, leaving only $20,000,000 to be repaid at maturity. The 3 % per cent Treasury bonds of 19401943 were called on February 14 for payment on June 15, but refunding of this issue was not included in the March financing. The free rates in New York for the pound sterling and the Canadian dollar declined sharply during the month of Decline in sterling March. From above $3.90 ^ f in the first week of March, sterling declined irregularly in the course of the month to below $3.50 in the last week, closing the month at a slightly higher rate. The rates for official sterling in London were maintained at $4.02^-$4.03V2The French franc moved in close relation to sterling, since the two currencies are linked in London at the fixed rate of 176i/2-176% francs to the pound. The Canadian dollar dropped from around $0.86 as late as March 4 to a momentary low of $0.80 on March 12. It fluctuated subsequently in the vicinity of $0.81-$0.82, with a weak tendency toward the end of the month; the official rates in Canada were held at the fixed level of approximately $0.90-$0.91. The decline in sterling reflected a number of influences, among them the announcement on March 9 of fresh restrictions on the use of sterling in international trade. Up to that time the countries forming the sterling exchange control area—Great Britain, France, and their respective Empires excluding Canada, Newfoundland, and Hong277 Review of the Month kong—had with certain exceptions permitted their exporters to receive payment in sterling or in their domestic currencies. Since sterling is freely convertible in London into these currencies, American and other importers of goods invoiced in these currencies as well as in sterling were able to cover their exchange requirements in the free sterling markets in New York and Continental financial centers, where holders of sterling funds which could not be liquidated in London at the official selling rates ($4.0214 in the case of the dollar) offered them at a discount. During January and February this discount ranged between 2 and 3 per cent. The regular commercial demand for sterling was instrumental in preventing the free sterling rate from going to a larger discount. The new regulations announced in London on March 9, reinforced by parallel action in the other sterling control countries, are designed to force exporters of specified goods from the sterling control area to certain destinations to require payment either in specified foreign currencies—United States dollars, Swiss francs, Belgian francs, Dutch guilders, or Dutch East Indies guilders—or in sterling purchased with these currencies at the official rates. The goods covered by the order issued in London are rubber, tin, jute and jute products, whisky, and furs, while an order of the Australian Exchange Control covers all types of goods exported from Australia. Importers of these goods in the United States and territories under its jurisdiction, Switzerland, Belgium, the Netherlands, and the Dutch East Indies will be expected to make payment in their own currencies, and importers in all Central and South American countries (excluding British and French possessions, Argentina, and Uruguay) must obtain supplies of one of the specified currencies to finance imports covered by these 278 regulations. The exception of Argentina is due to the fact that under the clearing agreement recently concluded between that country and the countries of the sterling control area, Argentine importers from that area must obtain their sterling requirements from the clearing authorities. Similar agreements exist with a number of European countries. Exporters of these goods from the sterling area were allowed to ship freely against payment in free sterling up until March 25, while reports indicate that further shipments against free sterling will be permitted until June 8 if these were contracted for before March 9. The British authorities are also understood to have undertaken to consider applications from exporters desiring after June 8 to ship against free sterling goods falling under the regulations which were the subjects of long-term contracts dated prior to March 9. In the case of the Canadian dollar, the Canadian Exchange Control has from the outset forbidden, with minor exceptions, the use of Canadian funds acquired in the free market for making payments on Canadian exported goods. Since the first of the year the Control has been gradually tightening the restrictions on the use of free Canadian dollars for certain other purposes—for example, for meeting advertising expenses in Canada—but no drastic move preceded the sharp decline early in March. This appears to have been due to speculative activity partly sympathetic to the movements in sterling and partly induced by the possibility of increased Canadian war expenditures after the elections, while there is at present a seasonal slack in the demand for free Canadian dollars for tourist expenditures. In any case, the narrowness of the free market for Canadian dollars makes it especially sensitive to small changes in supply and demand. FEDERAL RESERVE BULLETIN recteta by ARTHUR HERSEY Senior Economist Division of Research and Statistics I N public discussion of economic problems, objectives have been reinterpreted and reit is generally recognized that the Federal formulated on several occasions. These Reserve System has important responsibili- changes can be understood only against the ties with regard to banking and monetary background of the times. conditions. It is often overlooked that these Before the establishment of the Federal responsibilities are largely confined to in- Reserve System in 1914, some of the responsifluencing the availability and cost of money bilities which now fall upon the Federal Rethrough the exercise of limited powers con- serve authorities were borne by local clearing ferred upon the System by the Congress, and houses, by the larger banks in the financial that the Federal Reserve banks and the Board centers, and by the United States Treasury of Governors can only indirectly influence the and subtreasuries. There was, however, no use that is made of money. But many peo- adequate machinery to combat money panics, ple understand that the Federal Reserve Sys- and the first accomplishment of the Federal tem may exert its influence in certain definite Reserve Act was to provide this machinery. ways: through regulation and supervision of The Federal Reserve System had hardly banks, through regulation of security loans been established before it was obliged to conby brokers as well as by banks, through dis- cern itself with thefinancingof the war. We count rate policy affecting the cost to banks had inflation in the strict sense in the years of borrowing additional reserves, through from 1917 to 1919: prices rose because of changes in reserve requirements, and through the pressure of war-time demands upon the open-market operations directly affecting the country's productive capacity and because supply of bank reserves and consequently the money and credit were expanded to finance inclination of banks to increase, decrease, or those demands. Normal objectives were laid stabilize their loans or investments. aside in the emergency. Reserve bank credit From time to time attempts have been was expanded practically to the limits immade to express in concise form the objec- posed by the statutory gold reserve requiretives toward which the monetary (or credit) ments. In the adjustments that accompanied policies of the Federal Reserve System should the post-war collapse of prices, a large porbe directed. This article attempts to review tion of this credit was liquidated and the the history of these objectives in so far as pressure upon gold reserves was ended. they have been formulated by the Congress From 1922 to 1929 the Federal Reserve or by the Board of Governors of the System. System was hampered by no shortage of gold, It is based largely on material in the pub- it had neither panics nor inflation to cope lished reports of the Board. with, and public opinion was sympathetic to the fullest possible exercise of whatever A Sketch of Federal Reserve History powers the System had to stabilize prosperity. A bird's-eye glance at the span of years Objectives of policy became more fully forfrom pre-Federal Reserve days to the present mulated than before; those were years of time will indicate the varied nature of in- hopeful experimentation. They were followed fluences constantly playing upon the formula- by difficult times. Confusion in public opinion, tion of policy objectives. Federal Reserve delayed reforms in banking legislation, and Note.—Views expressed in signed articles published in the BULLETIN are those of the writers and not necessarily those of the Board of Governors of the Federal Reserve System. APRIL 1940 279 Historical Review of Objectives of Federal Reserve Policy potential shortage of gold, all had a part in limiting Federal Reserve policy directed toward easy money conditions in the years from 1930 to 1932. The scene was completely altered with the beginning of recovery. In recent years the money supply has been steadily enlarged, primarily as a result of gold inflow. The Federal Reserve System has had no occasion to add further to member bank reserves—and has acted in fact to reduce excess reserves—nor can it contribute directly to the more active use of the money supply. In this recent period the principal problems facing the System have been the restoration and preservation of a soundly functioning banking system, and the avoidance, if possible, of harmful repercussions in the future from the continuing inflow of gold. Legislative Policy in the Federal Reserve Act The record of the panic of 1907, of the National Monetary Commission of 1908-1912, and of the political and other public discussions surrounding the establishment of the Federal Reserve System, reveals that the objective of its founders was to provide "a sound and elastic supply of currency and credit." This meant mobilization of the gold reserves of the nation in central reservoirs, provision for the banks to increase their reserves by borrowing from the Reserve banks, and convertibility of bank deposits freely into currency at all times, so long as a bank possessed sufficient assets acceptable for discounts or advances. These were the basic aims and accomplishments of the original Federal Reserve Act, and in these ways the machinery was created which could make a money panic like that of 1907 impossible. Added to these was the establishment of what was considered a safeguard against excessive credit expansion or contraction, in the form of Federal Reserve discount rates. The Federal Reserve Act provided a new framework of banking and monetary control and it created new bodies, the Federal Reserve banks and the Federal Reserve Board, to administer both the supervisory features of the Act and—of prime importance—the monetary features. Subsequent legislation strengthened this framework. An important example was the enactment of Section 12A in 1933, when Congress recognized the need for better coordination of the System's openmarket operations. As the Federal Reserve Board pointed out in 1923,1 when it first 280 acted to unify the open-market operations of the several Reserve banks, open-market operations can be used to place additional reserve funds in the hands of member banks, or to contract the available supply of reserves, and can give effective support to Federal Reserve discount policy. For these reasons open-market operations have long been an important tool of monetary policy. More recently they have been used to help maintain orderly conditions in the market for highgrade bonds. The original Act and the subsequent amendments laid down certain principles which the Federal Reserve authorities were required to observe. (1) The original Act required that discount rates should be fixed "with a view 2of accommodating commerce and business." (Other language in the Act indicated that industry and agriculture were covered by this phrase.) (2) A somewhat similar formulation of the objectives of policy in connection with open-market operations was adopted by the Board in 1923 and embodied in law in 1933 as follows: "with a view to accommodating commerce and business and with regard to their bearing upon the general credit situation of the country." 3 (3) "Sound credit conditions" were also named as an objective in a 1933 amendment dealing with the administration of Federal Reserve discounts for member banks. The Federal Reserve banks and the Board were directed to take cognizance of "undue use" of bank credit for certain speculative purposes or "for any other purpose inconsistent with the maintenance of sound credit conditions." 4 (4) Finally, the Banking Act of 1935, in continuing the powers to change reserve requirements conferred upon the Board in 1933, specified that this might be done "in order to prevent injurious credit expansion or contraction." 5 One further indication of legislative intent in the original Act has attracted much atten1 See Annual Report of the Federal Reserve Board for 1923, pp. 11-13. 2 Federal Reserve Act as amended, Section 14, fifth paragraph. 3 Federal Reserve Act as amended, Section 12A, third paragraph. 4 The eighth paragraph of Section 4 of the Act as amended provides for regulations by the Board of Governors covering discounts and advances and it sets up certain requirements under which the Federal Reserve banks are to exercise their discretion in making discounts and advances. The paragraph deals both with policy affecting the supervision and regulation of individual banks and with monetary policy. The 1933 amendment of Section 11 (m), which empowered the Board to limit member bank loans on securities and which set up as an objective the prevention of "undue use of bank loans for the speculative carrying of securities," also falls on this borderline. 5 See next page for footnote. FEDERAL RESERVE BULLETIN Historical Review of Objectives of Federal Reserve Policy tion. This was the limitation of Federal Reserve discounts to short-term paper "issued or drawn for agricultural, industrial, or commercial purposes," specifically excluding paper "covering merely investments or issued or drawn for the purpose of carrying or trading in . . . investment securities, except bonds and notes of the Government . . ." 6 Unlike the guides to policy listed above, this was a mandatory provision which need not have influenced the purely discretionary policies of the Board regarding discount rates and open-market operations. This provision reflected the general acceptance at that time of the "commercial banking" theory of central banking—the theory that currency and credit should be expanded only on the basis of "self-liquidating" discounts or advances by central banks to their member banks. Finally, there was much that was left unsaid in the Federal Reserve Act except by implication. The implication of the traditional requirement that the Federal Reserve banks should carry reserves in gold against their notes and in gold or lawful money against their deposits was that they should normally react to changes in their gold reserves in a traditional banking way: allowing credit to expand when gold came in, contracting credit when gold went out. In other words, it was implicitly assumed that the ordinary rules of the pre-1914 international gold standard, applying to the operations of commercial banks in this country as well as to central banks abroad, would apply to operations and policies of the Federal Reserve System. Since this particular feature of the Federal Reserve Act received little attention at the time, and since its consequences might easily come in conflict with the legislative injunction that policy be guided by "the accommodation of commerce and business," a survey of the background of Federal Reserve policy objectives should be supplemented by a brief review of the relation of the gold standard to monetary policy. 5 Federal Reserve Act as amended, Section 19, sixth paragraph. This paragraph was originally added by the so-called "Thomas Amendment" in 1933, and at that time permitted reserve requirements to be changed after a declaration "that an emergency exists by reason of credit expansion." The Thomas Amendment, which authorized the President in his discretion to take certain actions to brin«3T about an "expansion of credit," also contained a clause authorizing the Federal Reserve Board; with the approval of the Secretary of the Treasury, to take certain other measures "to prevent undue credit expansion" (Agricultural Adjustment Act of 1933, Title III. Section 43). 6 Federal Reserve Act as amended, Section 13, second paragraph. APRIL 1940 Before the advent of the Federal Reserve System a commercial bank followed gold standard rules for good and sufficient reasons. When it received gold which added to its reserves, it expanded credit in order to add to its earnings. When it lost gold, it had to contract credit in order to regain reserves or else reduce its deposits in proportion to its reserves. The earliest central banks acted like commercial banks. As central banking has developed, however, it has come to be realized that central banks have very different responsibilities from those of commercial banks and a greater freedom of choice in line of action. Central banks are not expected to be profit-making institutions. It is therefore unnecessary for them to expand their assets and their deposits when their reserves increase. Central bank reserves, unlike the reserves of member banks, are not usually needed for protection against withdrawal of deposits (except in case of a movement of gold out of the country), nor do they serve, like member bank reserves, as a medium through which the monetary authorities can express their policies based on domestic objectives. It is therefore not essential— apart from arbitrary legal requirements— that a central bank maintain a fixed minimum ratio of reserves to liabilities. Under certain circumstances, however, a central bank may follow the gold standard line of action for other reasons than those that motivate commercial banks. These reasons are found in the international trade aspect of the gold standard rather than in the domestic banking aspect. The maintenance of stable exchange rates is the prime justification for a central bank to pay attention to its gold reserves. . In international trade, gold movements serve to settle balances of payments among countries whose citizens owe each other more or less for merchandise exports and imports, for interest and shipping charges, etc., or who wish to transfer long-term and shortterm capital from one country to another. Under the comparatively stable conditions existing up to 1914, a central bank faced with an outward flow of gold as the result of an adverse balance of payments could reduce the flow of gold by taking action to tighten credit and raise money rates, even without actually bringing about any substantial reduction in the outstanding deposits of the commercial banks. The Bank of England, for example, could induce a net move281 Historical Review of Objectives of Federal Reserve Policy ment of short-term capital, sensitive to in- banks and central banks abroad developed a terest rates, to the London market, thus re- technique of offsetting gold movements by ducing the net demands for foreign exchange open-market operations as an alternative to which had to be met by gold exports. More allowing a full and free response of credit far-reaching effects on the balance of inter- conditions to the large gold movements of national payments may have been exerted in the post-war era. But in 1914 it was taken some cases. For example, if a central bank for granted that central banks should ease permitted a general expansion of credit to and tighten money rates in direct response occur following a large inflow of gold, this to actual or potential inflows and outflows of would tend, other conditions being favorable, gold. to raise the level of prices and of wages To sum up, the Federal Reserve Act conand other money incomes within the country; tains three kinds of guides to Federal Reserve this development might lead to an expansion policy objectives: (1) certain formal prinof imports as compared with exports which ciples to be followed in determining policy, would redress the balance of payments origi- which refer to the needs of the American econally responsible for the gold inflow. In such nomic system, (2) an expression of legislaways as these, it made for stability of inter- tive intent that the American banking system national trade for central banks to follow the should be a "commercial banking" system, gold standard rules for responding to gold and finally (3) what amounted to an injuncmovements. The concrete objective was tion to the Federal Reserve System to follow stability of exchange rates. In a world in the gold standard rules of banking, at least which gold, the medium for settling balances in any situation in which the fixed minimum of payments* at fixed exchange rates, was relationship of gold reserves to Federal Rerelatively scarce, it was advantageous for serve currency and credit should appear to central banks to follow a course that would be endangered. tend to maintain stable exchange rates with the least possible movement of gold. • A further argument for the gold standard Administrative Policy in the Federal Reserve System rules of banking was that they would make central banking policy relatively automatic. We turn now to observe the Federal ReOne could predict the country's monetary policy merely by following the state of the serve System in operation. The earliest problems of the System were practical ones of central bank's reserve ratio. Stability of international exchange and the organization and procedure. Only as the new semi-automatic nature of money manage- Reserve banks began to function could it be ment, then, were thought of as reasons for learned what impact their day-to-day operahaving central banks maintain more or less tions would have on the rest of the banking rigid relationships between their gold re- system or what meaning should be attached serves and their note and deposit liabilities. to the broad purpose of "accommodating But unlike commercial banks, central banks commerce and business." Policy and policy have not felt strong compulsions to maintain objectives have developed together out of the such rigid ratios. In fact, as central banking experience of the System. From the start, has developed, it has been observed that there however, the Federal Reserve Board exare often strong reasons not to follow the gold pressed an intention of performing its duties standard rules in their full and literal sim- in the interests of users of credit. plicity. To cite a single illustration: the de- A few months after the Federal Reserve posits of the usual type of central or reserve banks had been organized, the Board made bank are the reserves of the commercial or its first report to Congress. Discussing the member banks. If both the reserve banks proper place and function of the System, the and the member banks should maintain rigid Board rejected the thought that the System's deposit-reserve ratios, increases or decreases chief service should be merely one of protecin the reserve banks' gold reserves would re- tion in emergencies. "Its duty plainly is not sult in greatly magnified changes in the out- to await emergencies but by anticipation, to 7 standing credit and deposits of the member do what it can to prevent them." The System banks. It was precisely to avoid the unsta- should "constantly carry the promise of being bilizing effects of such broad fluctuations in able to protect business against the harmful the money supply that the Federal Reserve 7 See next page for footnote. 282 FEDERAL RESERVE BULLETIN Historical Review of Objectives of Federal Reserve Policy stimulus and consequences of ill-advised ex- Traditional gold standard theory prepansions of credit on the one hand, or against scribed certain policies when gold was flowthe menace of unnatural restrictions and un- ing in as well as when it was flowing out. necessary contractions on the other, with ex- In its 1923 report, after three years of rapid orbitant rates of interest and artificial strin- increase in the gold stock, the Board looked gencies."7 The Reserve banks should always forward to a time when demands for gold be in a position to influence the market. "Pru- in connection with the reestablishment of a dence and a proper regard for the common gold standard in various European countries good" would sometimes call for the restric- might reverse the inflow to the United tion of credit, while at other times "the bor- States. "It is the part of prudence for the rowing community" should "be able to obtain United States and for the Federal Reserve accommodations at the lowest rates war- banks . . .," the Board said, "to pursue a ranted by existing conditions."7 "To provide course which will enable them to part with and maintain a fluid condition of credit, such such portion of this gold as Europe will need as will make of the Reserve Banks at all times . . ." The Reserve banks should not be inand under all conditions institutions of ac- fluenced by "the desire to make full use of commodation in the larger and public sense their earning power." 9 The report went on of the term is the first responsibility of a Re- to show that the Board was rejecting at that serve Bank." 7 time the suggestions of some economists that Two ideas expressed in this early report orthodox gold standard theory should be folare of paramount importance today. One is lowed by adopting an excessively easy money the System's duty to do what it can "by antici- policy in the hope of inflating credit and prices pation," to prevent such emergencies as gen- so as to halt the goldflow.The Board pointed eral inflation or deflation. The other is "the out that the gold movements "in part have larger and public" nature of the System's occasioned and in part have resulted from day-to-day responsibilities to its member the breakdown of the gold standard." 10 Bebanks and to the country at large. These cause part of the gold imports had been used responsibilities have recently been formulated to reduce member bank borrowings at the as a twofold objective in which the primary Reserve banks and later to meet an increased aim is to contribute so far as possible to eco- demand for circulating currency, these gold nomic stability and prosperity and in which inflows had not been fully reflected in inan important secondary aim, essential to the creases in member bank reserves.11 Overly success of the first and yet dependent upon it, strict adherence to the rules of the gold standis to preserve a8 sound banking system and ard, by causing member bank reserves to credit structure. mount rapidly, might have resulted in stimuThe "larger and public" nature of the Fed- lating speculative expansion at the time of eral Reserve System's responsibilities has the gold inflows and might have forced the never been questioned, but there have been System to follow a gold standard policy of different ways of interpreting those respon- tight money if gold then went out. Such sibilities. It is the purpose of the rest of fluctuations in policy would have been quite this article to indicate what some of the lines undesirable so far as domestic objectives of interpretation have been, and how chang- were concerned. ing interpretations have affected the formal Although gold was continuing to flow to objectives of the System. the United States, the recession in domestic Much of the history of the evolution of ob- business in 1924 caused the System to relax jectives deals with three traditional banking its stand of the previous year against the ideas, derived from earlier American experi- adoption of an easy money policy. One byence and recognized in the Federal Reserve product of the System's open-market operaAct, which have formed a definite part of the tions and discount rate reductions in 1924 System's objectives at various times. was to help make dollar credits available to Gold Standard Tradition.—One of these European countries,12 and so to help check ideas was that the Federal Reserve System the gold inflow. In this instance the policy should shape its policies according to the adopted went somewhat beyond the ordinary state of its gold reserve. 9 7 8 Annual Report for 1914, pp. 17-18. See, for example, Annual Report for 1937, p. 222, "Objectives of Monetary Policy: Monetary contribution to economic stability." APRIL 1940 Annual Report Report Report Annual Report 10 Annual 11 Annual 12 for for for for 1923, p. 20. 1923, p. 30. 1923, pp. 18-19. 1924, pp. 9-12. 283 Historical Review of Objectives of Federal Reserve Policy dictates of gold standard tradition, since central banks would ordinarily not have engaged in open-market operations to supply the banks with more funds on top of a gold inflow. In the latter part of 1927, on the other hand, the adoption of a similar policy of open-market purchases and discount rate reductions was directly contrary to strict gold standard rules. Influenced by hopes for a world-wide restoration of the gold standard, the System adopted for a while a definitely easy money policy intended in part to facilitate rather than check an outward movement, already under way, of capital and gold13 countries undertaking to monetary reforms. In these three instances, and especially in the latter two, the Federal Reserve authorities were apparently more concerned with helping in the reestablishment of a world gold standard than in seeing that the System itself should follow gold standard rules as they applied to the United States. An explanation is that the ratio of the Reserve banks' gold reserves to their liabilities was high enough to be ignored as a guide to policy at that time. If this ratio was well above its legal minimum there was no reason to worry about maintaining the gold standard in the United States. Indeed, the very freedom of the United States from the danger of excessive loss of gold at this time was causing the Federal Reserve authorities, as will be shown below, to develop policy objectives that could be substituted for the traditional gold standard rules of thumb. There was, however, one important instance in which the System's policy was chiefly influenced by a desire to protect the United States gold stock.14 Upon the departure of England from the gold standard in September 1931, there was a sudden outflow of gold from the United States. Currency was also being hoarded in this country, and the combined effect of these developments was a sharp stiffening of interest rates in American money markets and the prospect of a serious decline in the ratio of gold reserves to outstanding Federal Reserve liabilities, which, however, was very high at the time. At this time the System acted in the orthodox gold standard manner, which it considered appropriate in view of the outflow of gold,15 and raised its rates on discounts and acceptances. A few months later, after the passage of the Glass-Steagall Act, the System undertook substantial open-market operations to ea,se credit conditions in the United States again. In 1933, on the other hand, when panic hoarding of currency and some signs of gold withdrawals led first to a raising of discount rates but immediately thereafter to the closing of the banks and the imposition of a gold embargo by the President, the Federal Reserve System was enabled to direct its efforts without delay toward a restoration of easy money conditions. There have been tremendous increases in the United States gold stock since 1933. It now appears unlikely that the formal requirement of minimum gold reserves against Federal Reserve notes and deposits will have any effect upon credit policy for many years to come. In this connection, it is of interest that England—in time of war at least—has abandoned traditional gold standard restrictions, so far as concerns its banking system, in both form and practice. The Bank of England's entire gold stock was sold to the Exchange Equalization Account in September 1939 and thus became freely available for sale abroad if need should arise. This event highlights the separation of domestic credit policy from foreign trade problems which has been developing in England for several years. Thus, by different routes, the result has come about in both England and the United States that the pre-1914 gold standard tradition of banking has become irrelevant. The problems that gold creates for the United States now are those of overabundance and not of potential shortage. Self-Liquidity of Reserve Bank Assets.— The second idea that has formed a part of Federal Reserve objectives—though it is hard to find an instance of policy being based upon it—is indicated in the Board's earlier reports by the emphasis placed upon liquidity of the Federal Reserve banks as a factor in maintaining a stable and flexible structure.16 15 Annual Report for 1931, p. 6. While it was the gold reserve requirements which were basically responsible for the raising of discount rates, the collateral requirements for Federal Reserve notes—with permissible collateral confined at the time to discounted paper and gold—also placed an obstacle in the way of easing money rates through open-market operations since member banks would then have paid off their discounts ; eligible paper would not have been available as collateral, making it necessary to pledge gold instead and thus reduce the amount of gold available as reserves against Federal Reserve deposits. With the gold outflow under way this combination of events might have reduced gold reserves to below the legal limits. It should be remembered, 13 however, that the Board has always had the power to suspend the Annual Report for 1927, pp. 10 and 14-17. 14 legal limits temporarily. On two other occasions, in 1919-1920 and in 1933, the fear of 16 possible losses of gold influenced policy in some degree. See next page for footnote. 284 FEDERAL RESERVE BULLETIN Historical Review of Objectives of Federal Reserve Policy Like the framers of the Act, the early admin- in 1932, eliminated the requirement that the istrators of the System were influenced by a Federal Reserve banks restrict their advances definite body of economic thought and bank- (other than on Government securities) to ing theory which had been responsible, for "self-liquidating paper." The Reserve banks instance, for the original limitation of redis- are now permitted to make advances to memcounts to short-term paper "issued or drawn ber banks upon any assets if necessary, profor agricultural, industrial, or commercial viding only that the assets furnish the Re19 purposes/'17 and also for the nominal limita- serve banks with satisfactory security. tion of collateral behind Federal Reserve Self-Liquidity of Member Bank Assets.— notes to the same class of paper.18 It has often The belief that the banking system would been stated that the combination of these two be weakened and economic stability endanlimitations was intended to insure that the gered if the member banks themselves held assets both of the member banks and of the an undue volume of securities or loans on Reserve banks should consist largely of short- securities, was the third traditional idea term loans of a "self-liquidating" nature. which influenced Federal Reserve objectives Whether or not these limitations were effec- for a time. There was practical justification tive, the belief did exist that commercial for this belief during the war years, when banks and the banks that held their reserves the member banks were participating heavily should limit their assets so far as possible to in the financing of export trade and war "self-liquidating" paper. expenditures. From 1915 to 1920 the assets Those who held this belief argued that and deposits of the member banks and the monetary and banking disturbances were the amount of currency in circulation increased chief causes of booms and depressions, that rapidly and not only absorbed all the extra by and large the production and marketing gold reserves released by the formation of of agricultural and industrial products of all the System and received from abroad in 1915 kinds would proceed smoothly and without and 1916, but required in addition a great interruption so long as bank credit was ex- expansion of Federal Reserve discounts and tended and repaid with equal smoothness. advances. The Board recognized that this According to this view, long-term investment increase in the money supply was an imporand dealings in securities and real estate tant influence pushing observing, ought to befinancedoutside the banking sys- however, thatin". . . an prices up,or relative absolute tem. In order that the amount of bank credit shortage of many primary materials outstanding should always bear a close rela- necessaries must have advanced values and and tion to the rate of productive business ac- prices to a very appreciable extent, even had tivity, bank credit—and Reserve bank credit there been no considerable change in the in particular—ought to be used only to finance volume of credit and currency." 20 Although dealings that would be quickly "self-liqui- the Board strongly urged that "the banks dating." should a more The war-time expansion of Federal Reserve general exert their influence . . . toloans by absorption of Government 21 loans on Government securities and the sub- savings," there was little that could be done sequent growth of open-market investments to keep the banks from adding Government in Government securities were, of course, in- and industrial securities and loans on securiconsistent with a strict application of the ties to their portfolios, so long as war financ"self-liquidity" concept to Federal Reserve ing had prior claims over policy. assets. A 1935 amendment to the Federal When it finally approved the normal of disraising Reserve Act, replacing a somewhat similar count rates at the end of in 1920, amendment adopted as an emergency measure the Board did so with this1919 and of memgrowth See, for instance, Annual Report for 1914, p. 17, Annual Re- ber bank security holdings and loans on port for 1917, p. 19, and Annual Report for 1920, p. 12. securities in mind.22 Federal Reserve Act as amended, Section 13, second paragraph. Discounts of paper secured by Government securities were From 1921 on, after the collapse of the also permitted but this was originally considered a very minor exception. post-war boom, the Board's pronouncements 115 17 18 Federal Reserve Act as amended, Section 16, second para19 graph. Until 1917 even gold was nominally excluded from the See Federal Reserve Act as amended, Sec. 10 ( b ) , and Board note collateral, though this was a fiction that was actually nullified of Governors, Regulation A. 20 by the fifth paragraph of Section 16, which allowed a Reserve Annual Report for 1917, p. 17. bank to reduce its liability for outstanding notes by the amount of 21 Annual Report for 1917, p. 9. gold it might deposit with the Federal Reserve agent for the 22 See next page for footnote. purpose. APRIL 1940 285 Historical Review of Objectives of Federal Reserve Policy on credit policy displayed somewhat less con- mercial banking" principle for member banks cern over the growing volume of securities, was nowhere set forth in the law in unmissecurity loans and real estate loans among takable terms. In a lengthy discussion of the member banks' assets—as such, and apart monetary and credit policy in its tenth annual from the loses to which bank customers might report, in 1923, the Board recognized that put their borrowed funds. During the 1920's Congress had forbidden the Reserve banks the Board indicated that problems raised by to lend upon paper "covering merely investthe types of assets that banks obtained would ments or issued or drawn for the purpose of have to be handled through regulatory and carrying or trading in . . . investment sesupervisory contacts with individual banks curities, except bonds and notes of the Govand were not to be regarded as23 direct con- ernment . . .," (a prohibition which was a cern of general monetary policy. During the first relaxed under emergency conditions in early 1930's the situation facing the System 1932). Such loans and investments, howwas a drastic liquidation of all forms of bank ever, were not forbidden by law to the memassets, and from 1933 on the financing of re- ber banks, and, as the Board pointed out,24 the covery by the banks was welcomed in what- real occasion for a rediscount for a member ever form it might come. bank might be quite different from the purThe earlier insistence on self-liquidity has pose of the particular loan rediscounted. been modified. In its place has come a real- Thus a Reserve bank was neither required ization of the importance of adequate earn- to prevent nor did it have in its discount ings for a sound banking system and a belief policy an effective instrument to discourage that the use made of deposits is a more impor- its member banks from buying or lending tant consideration than the mere form of the on securities. If a purpose of restricting disassets that the banking system acquires when counts to eligible paper was to cause the memit creates deposits. But there is also a keen ber banks in any degree to restrict their own realization that the effectiveness of monetary extensions of credit to "self-liquidating" policy depends upon the continuing existence loans, there was evidently a real contradicof a healthy banking system with sound as- tion between legislative expectation and the sets, backed up by a Federal Reserve System actual situation. prepared to prevent destructive deflation. In 1923 report During the 1920's, several elements en- nitionthis the emphasis the Board gave recogto which tered into the Board's views on long-term as- serve Act had placed upon the the Federal Reneeds of sets. Most important, the nation's industry productive industry, both in crediteligibility the and commerce appeared to be enjoying full clauses and in the discount policy objective of prosperity with only minor and temporary 25 disturbances. It was seen that whenever "accommodating commerce and business." individual banks gained additional reserves The Board's interpretation of the System's through gold imports or otherwise they would responsibilities may be roughly paraphrased desire to keep the additional funds employed; as follows: (a) The Act clearly indicated that since commercial loans were not available in "the Federal Reserve System is a system of 25 sufficient volume, the tendency was to invest productive credit"; (b) productiveness of in other assets. This tendency appeared at credit extended by the Federal Reserve Systhe time to be largely justified by the steady tem must be measured by the productiveness 26 increase in the time deposits of the banks. of credit extended by the member banks; After 1920, the Board saw no occasion to (c) credit extended by the member banks is impose a tight money policy merely in order productive when the quantity of credit is apto restrain the growth of the banks' security propriate and when the purposes for which credit and 27 money are used by the public are assets. productive. In the last analysis, it was held, While the language of the Federal Reserve Act clearly reflected the "commercial bank- Federal Reserve credit policy should be based ing" philosophy of reserve banking, a "com- Annual Report for 1923, p. 35. 22 Annual Report for 1919, pp. 1-4; Annual Report for 1920, pp. 11-15. A related consideration was the low level of the Federal Reserve banks' gold reserve ratio as the result of the previous expansion of credit and of currency in circulation. Still another purpose was to check, if possible, the speculative boom in commodity inventories which had begun about the middle of 1919. 23 See, for example, Annual Report for 1928, pp. 9-10. 286 24 25 28 27 Annual Report for 1923, p. 33. Annual Report for 1923, pp. 35-36. Annual Report for 1923, pp. 34-36. To give consistent meaning to this passage in the 1923 report, it is necessary to interpret the terms "credit" or "bank credit" as referring to member bank credit wherever "Federal Reserve credit" was not specified. See pp. 287-288 below for discussion of the term "productive" as used in the 1923 report. FEDERAL RESERVE BULLETIN Historical Review of Objectives of Federal Reserve Policy upon "the operating requirements of agricul- central objectives have been recognized: (1) ture, industry, and trade."24 to contribute, so far as credit policy can do so, The Board's report for 1928 included a to the maintenance of stable prosperity further discussion of the System's respon- through and along with "sound credit condisibilities for the growth of security holdings tions," and (2) to avoid, "by anticipation," and loans on securities. The conclusion was excessive credit expansion or contraction. reached that "the Federal Reserve System Little progress in the development and inmust steer its course with reference to terpretation of normal objectives could be broader developments and longer time ob- made in the first eight years of the System, jectives than . . . month-to-month changes dominated as they were by war-time condiin any particular line of credit." Credit tions and the problems of post-war readjustpolicy, as expressed through discount rates ment. In the 1920's the aims of policy began and open-market operations, was powerless to crystallize in a definite way. As has been to exert influence on the makeup of loans and previously noted, the Board was transferring investments of an individual bank. However, its attention from the forms in which bank "banking policy," as expressed through credit is extended to the purposes for which supervision and examination, especially of money is used. Reinterpreting the general banks that were borrowers from the Reserve expression of legislative intent that was imbanks, might exert that influence, and was plied in the eligibility clauses of the Federal important chiefly "in promoting the sound- Reserve Act, the Board wished to encourage the "productive" use of money and to disness of member banks." 28 The Board thus arrived in the 1920's at the courage its "speculative" use. When the position that it was not one of the System's Board decided in 1923 that open-market operprimary objectives to see that the member ations should be conducted "with regard to bearing upon the banks' assets should consist largely of short- their of the country," it general credit situation was apparently emterm "self-liquidating" loans. Emphasis was ploying that phrase to cover not only the abilshifted from the form of bank assets to the ity and willingness of banks to extend credit use made of money. also the use that was being This conclusion cleared the way for a new butproducers and consumers. made of money by approach to the whole question of member bank assets. "Sound credit conditions," re- Towards the end of the decade of the 1920's, interpreted in a broader manner, have in the System became particularly concerned recent years once more been recognized as over the use of credit and money for speculaan essential objective, for "even an adequate tion in the stock markets. Member banks supply of money will not perform its func- could not borrow from the Federal Retions adequately if the banking structure serve banks on stock exchange collateral, through which it must operate is in an un- but the System recognized unhealthy elesound condition . . ." 29 New attention has ments in the stock market boom no matter been given also to methods of using super- how it was financed. The System was faced, visory and regulatory procedures to further however, with the real dilemma of how to the broader purpo-ses of credit policy.30 Al- check the stock market boom through monemost the entire Report of the Board of Gov- tary action without also restricting the availernors for 1938 was devoted to the banking ability of credit for normal uses. The System was also concerned in the problems of the day. 1920's to minimize the effect upon the business situation of the "speculative" or "nonEvolution of the Central Objectives productive" use of credit or money by busi1922 to 1929.—While ideas of gold stand- ness borrowers. In its reports, the Board ard policy, of self-liquidity of Reserve bank showed repeatedly that this meant, for one assets, and of self-liquidity of member bank thing, the use of money or credit to finance assets have influenced the formulation of investment in inventories out of line with the Federal Reserve policy objectives from time current needs of production and consumption. to time, other ways of interpreting the Sys- A significant passage may be quoted from tem's responsibilities have developed. Two the 1923 report: 28 Annual Report for 1928, pp. 9-10. Annual Report for 1937, p. 222. so See Annual Report for 1938, pp. 16-18. 29 APRIL 1940 ". . . The withholding of goods from sale when there is a market or the accumulation of goods for an anticipated rise of price is not a productive use 287 Historical Review of Objectives of Federal Reserve Policy [of credit]. It is the nonproductive use of credit that breeds unwarranted increase in the volume of credit; it also gives rise to unnecessary maladjustment between the volume of production and the volume of consumption, and is followed by price and other economic disturbances."31 This quotation indicates that the Board was giving a very broad interpretation to the term "speculative." "Speculative" developments were those that involved "maladjustments between the volume of production and the volume of consumption." Alternations between more intensive and less intensive business activity, or between prosperity and recession, are invariably associated either with the building up and later running off of manufacturers' and distributors' stocks of goods or with similar "maladjustments" such as the concentration and uneven spacing of industrial capital expenditures, of production for export, of public expenditures or of consumers' purchases of durable goods. All of these "maladjustments" may be regarded, in a broad sense, as "speculative." In essence, therefore, the objective of Federal Reserve policy in the prosperous 1920's was to even out and so to maintain the rate of productive industrial progress by discouraging—through discount policy and openmarket operations influencing the cost and availability of money in central money markets—excessive spurts of activity which would lead inevitably to relapses, and by similarly encouraging a sound recovery from each relapse that could not be prevented. The spurts and relapses of the 1920's, however, were no more than wavelets on a tidal wave, and there must be real doubt whether the Board—like public opinion generally—was not overoptimistic in those halcyon days about its ability to stabilize prosperity. The question of proper timing of Federal Reserve policy decisions has always been a difficult one. For example, restrictive action to curb an inventory boom is useless if it is delayed until the boom has nearly run its course. But proposals have frequently been made that the Federal Reserve System should base its policy upon changes in wholesale prices. An important objection to such proposals is that wholesale prices may or may not change in unison with changes in the rate at which money is being used for inventory expansion, for capital expenditures, or for purchases of consumers' durable goods. The Board has made it clear on several occasions 31 Annual Report for 1923, p. 34. 288 that by basing its credit policy upon ample statistical data relating to the general state of business conditions it could move much sooner and more surely than if it waited for definite indications of excessive movements either in the sphere of bank credit or in the sphere of prices. For example, a statement made by the Board in August 1937 expressed this view in commenting on proposals to make the achievement and maintenance of a specified price level a primary objective of monetary policy.32 1930 to 1933.—After 1929 the dislocation of normal economic processes and the depressed level of business activity and national income made it necessary to reinterpret the twofold objective of maintaining prosperity and of maintaining sound credit conditions. It was no longer a question merely of smoothing out fluctuations in a generally stable economy. During the years 1930-1933 the immediate need was to restore the stability and adaptability of the banking system, since recovery could have no firm basis until deflation of bank assets and liabilities through liquidation and hoarding had stopped. "Soundness" of "credit conditions" was more than a matter of the productive use of money or credit; it now involved the ultimate issue of public confidence in the banks and the basic ability of the banks to function effectively. The banking crisis of those years, unlike the money panic of 1907, was not to be cured simply by providing the banks with facilities for borrowing.33 An active easy money policy "at first helped the banks to meet extraordinary demands upon them and later to build up excess reserves to an unprecedented level," thereby "encouraging the banks to adopt more liberal lending and investing policies and34 to facilitate the reso covery of business." The opinion has been expressed that this policy might have been more consistent and far more vigorous if enabling legislation had been adopted sooner.35 82 Annual Report for 1937, pp. 221-222. See also Annual Report for 1923, pp. 31-32 and 35-37. 83 The facilities of the Federal Reserve banks were, however, not entirely adequate because of the narrow statutory definition of paper eligible for discounts or advances. This situation was ameliorated by the Glass-Steagall Act in 1932. The establishment that year of the Reconstruction Finance Corporation provided still other facilities for borrowing by banks. 84 Annual Report for 1933, pp. 20-21. 85 The Glass-Steagall Act also allowed United States securities to be included temporarily in the collateral behind Federal Reserve notes. This provision enabled the System to resume the large open-market operations which had been initiated in 1929 but had been greatly restricted by 1931. Under existing law, the power to count United States securities as note collateral is still a temporary one, and will expire on June 30, 1941. FEDERAL RESERVE BULLETIN Historical Review of Objectives of Federal Reserve Policy As it turned out, it required the combination tinually growing excess reserves of member of other Government action with Federal Re- banks. The Board has been concerned to find serve policy to restore confidence in the banks means of placing the System "in a better and in the business outlook. position to make its credit policies effective 1934 to 1939.—From 1934 to the present on the member banks and upon the credit time the Federal Reserve System has con- situation generally." 38 The Board has emtinued to orient its monetary policy toward phasized that this problem is quite distinct the goal of a lasting recovery. Because of the from policy in relation to current conditions.39 inflow of gold, the supply of bank reserves has In seeking to find a way "to prevent injurious become redundant. Since the System has no credit expansion" the System is thus turning substantial powers to increase the activity back to another of the basic objectives of and rate of turnover of money or of money monetary policy, to safeguard the country— incomes, its policy has perforce been largely so far as monetary authorities can do so— passive. The tremendous volume of excess against inflation in the future. reserves has given the member banks ample Above all, a quarter century of experience funds to meet demands for productive loans has emphasized the truth that monetary and and investments. Open-market operations credit policy can not by itself achieve the obhave been used chiefly to help maintain monetary authorities must orderly conditions in the market for high- jectives whichtheir own guidance and as an formulate for grade bonds. "The increased importance of aid to intelligent public understanding of bonds as a medium of investment for idle actions. Federal Reserve policy objecbank funds" has made "the maintenance of their are but one phase of "the general objectives stable conditions in the bond market an important concern of banking administration."36 tive of public policy," "to maintain economic 40 As the Board said in 1937, "it In short, the primary concern of the Federal stability." should be the recognized duty of the Board Reserve System in these last few years has been that a healthily functioning banking of Governors of the Federal Reserve System system should continue to contribute to re- to use all its powers to contribute to a concovery. The preservation of "sound credit certed effort by all agencies of the Governtoward the attainment of this objecconditions," broadly interpreted, has been ment 40 tive." emphasized as an objective of policy.37 Since 1935 the Board has also given much Report for 1936, See also Annual Report for attention to problems raised by the con- 1937,Annualand Annual Report p. 4.1938, pp. 4-6. p. 5, for 38 86 37 Annual Report for 1937, p. 7. See references in footnotes 29 and 30, p. 287. 39 40 Annual Report for 1938, p. 21. Annual Report for 1937, p. 223. Monetary Action as a Part of a Constructive Government Program * * * the Board has pointed out that there are many phases of economic life that are not susceptible of control through monetary means alone; it has taken the position that stability in production and employment is a more satisfactory objective of public policy than price stability alone, and that concerted action by many agencies within and outside the Government, which have an influence on economic activity, is essential for the achievement of recovery and an adequate national income. Notwithstanding the inherent limitations upon the influence of monetary and credit action on economic conditions, the Board is convinced of the importance of such action at certain times, and feels strongly the necessity of having the mechanism of monetary and banking control and supervision at all times in condition to function effectively in the public interest. . . . Recognition by Congress of the limits within which monetary and credit action can be effective and determination of the mechanism and policies that would contribute most to its effectiveness will clear the way for consideration of broader aspects of a constructive program for further economic recovery and stability.—From a statement sent by the Board of Governors to the Chairmen of the Committees on Banking and Currency of the Senate and House, on April 8, 1939 (published in the Federal Reserve BULLETIN, May 1939, pp. 363-364). APRIL 1940 289 Ttom a Jieaal Standpoint Administrative interpretations of banking laws, new regulations issued by the Board of Governors and other similar material of interest to bankers. Applicability of Social Security Act to Federal Reserve Banks, National Banks and State Member Banks In the Federal Reserve BULLETIN for November 1936, at page 857, there were published the texts of rulings of the Bureau of Internal Revenue holding that national banks and State member banks were instrumentalities of the United States within the meaning of Titles VIII and IX of the Social Security Act and that accordingly neither such banks nor their employees were subject to the taxes imposed by that Act. The Act of August 10, 1939 (Pub. No. 379, 76th Cong.), referred to in the Federal Reserve BULLETIN for September 1939, at page 723, amended the Social Security Act, and, among other things, provided that after January 1, 1940, service performed in the employ of an instrumentality of the United States would be exempt only if such instrumentality were wholly owned by the United States or exempt by virtue of any other provision of law. The Office of Commissioner of Internal Revenue issued on January 27, 1940, rulings concerning the applicability of the employment taxes with respect to services performed on or after January 1, 1940, in the employ of certain banks and related organizations. Excerpts from these rulings which relate to Federal Reserve banks, national banks and State member banks are set forth below: "The term 'employment' means any service * * * except— * * * * * "Service performed in the employ of the United States Government or of an instrumentality of the United States; * * *." 2. Various rulings have been published in Internal Revenue Bulletins with respect to the applicability of the above-quoted provisions to services performed in the employ of all the banks and related organizations, except Federal reserve banks,* which are hereinafter considered. Such banks and other organizations were held instrumentalities of the United States for purposes of such provisions. 3. Effective with respect to services performed on or after January 1, 1940, Section 1426 (b) (6) of the Federal Insurance Contributions Act, as amended by Section 606 of the Social Security Act Amendments of 1939, provides in part as follows: "The term 'employment* means any service * * * except— * * * * * "Service performed in the employ of the United States Government, or of an instrumentality of the United States which is (A) wholly owned by the United States, or (B) exempt from the tax imposed by section 1410 by virtue of any other provision of law; * * *." Section 1607 (c) (6) of the Federal Unemployment Tax Act, as amended by Section 614 of the Social Security Act Amendments of 1939, contains similar provisions with respect to services performed on or after January 1, 194-0. 4. The rulings stated hereinafter with respect to the status of banks and related organizations under the provisions of Sections 1426(b) (6) and 1607(c) (6), as amended (paragraph 3, supra), are applicable with respect to services performed on or after January 1> 1940. Inasmuch as such banks and organizations are instrumentalities of the United States for employment tax purposes, consideration will be given principally to the question whether such organizations are wholly owned by the United States or are exempt from employment taxes "by virtue of any other provision of law." In deciding whether an instrumentality is wholly owned by the United States, primary consideration is given to statutory provisions regarding the capital shares of such instrumentality, for the proposition is axiomatic that 1. The employment taxes imposed by the Federal Insurance Contributions Act and the Federal Unemployment Tax Act (formerly Titles VIII and IX, respectively, of the Social Security Act) are not applicable with respect to services performed prior to January 1, 1940, which were excepted from "employment" as that term is defined with respect to services performed prior to January 1,194-0. Section 1426 (b) (6) of the Federal Insurance Contributions Act and Section 1607(c) (5) of the Federal Unem* Federal Reserve banks ployment Tax Act provide as follows with respect to States for employment tax are instrumentalities of the9 United purposes. See paragraphs to 12, services performed prior to January 1, 1940: inclusive. 290 FEDERAL RESERVE BULLETIN From a Legal Standpoint the stockholders are the owners of a corporation. The determination that an instrumentality is exempt from employment taxes "by virtue of any other provision of law" depends upon specific language to that effect. National Banks 5. In S. S. T. 16, Cumulative Internal Revenue Bulletin XV-2, 386 (1936), the Bureau of Internal Revenue ruled that national banks are instrumentalities of the United States for social security tax purposes, and that neither the banks nor their employees are subject to such taxes. This ruling, which is applicable with respect to services performed prior to January 1, 1940, is based primarily on the fact that such banks are required for the fiscal operations of the Government. It is necessary, for purposes of a ruling with respect to services performed on or after January 1, 1940, to determine whether such banks either are wholly owned by the United States or are exempt "by virtue of any other provision of law." 6. Section 5 of an Act approved June 3, 1864, 13 Stat. 100 (U. S. C, Title 12, Section 21), reads in part as follows: "Associations for carrying on the business of banking under this chapter may be formed by any number of natural persons, not less in any case than five." Section 6 of the Act approved June 3, 1864, 13 Stat. 101 (U. S. C, Title 12, Section 22), provides in part as follows: "The persons uniting to form such an association shall, under their hands, make an organization certificate, which shall specifically state: * * * Third. The amount of capital stock and the number of shares into which the same is to be divided." Section 12 of the Act approved June 3, 1864, 13 Stat. 102 (U. S. C, Title 12, Section 52), provides in part as follows: "The capital stock of each association shall be divided into shares of $100 each, or into shares of such less amount as may be provided in the articles of association, and be deemed personal property, and transferable on the books of the association in such manner as may be prescribed in the by-laws or articles of association. Every person becoming a shareholder by such transfer shall, in proportion to his shares, succeed to all rights and liabilities of the prior holder of such shares; and no change shall be made in the articles of association by which the rights, remedies, or security of the existing creditors of the association shall be impaired." Section 40 of the Act approved June 3, 1864, 13 Stat. I l l (U. S. C, Title 12, Section 62), provides in part as follows: "The president and cashier of every national banking association shall cause to be kept at all times a full and correct list of the names and residences of all the shareholders in the association, and the number of shares held by each, in the office where its business is transacted." 7. The above-quoted provisions of law and other provisions relating to the same subject matter indicate that Congress, in legislating with respect to national banks, did not contemplate that such banks would be owned by the United States. Furthermore, there is no specific provision of law providing for or APRIL 1940 authorizing the United States to acquire a proprietary interest in such banks, although there is a provision for the Reconstruction Finance Corporation to acquire preferred shares in certain instances. See Section 401 of an Act approved March 9, 1933, 48 Stat. 1 (U. S. C, Title 12, Section 51d), amending the Federal Reserve Act, 38 Stat. 251. 8. There is no specific provision of law which would serve to exempt national banks from the employment taxes. It is evident from the hearings before the Committee on Ways and Means, House of Representatives, and the Committee on Finance, United States Senate, that Congress, in enacting the Social Security Act Amendments of 1939, intended that employment taxes should be applicable with respect to services performed on or after January 1,1940, in the employ of national banks. Accordingly, the taxes imposed by the Federal Insurance Contributions Act and the Federal Unemployment Tax Act are applicable with respect to such services. Federal Reserve Banks 9. Section 15 of the Federal Reserve Act, 38 Stat. 251 (U. S. C, Title 12, Section 391), provides as follows: "The moneys held in the general fund of the Treasury, except the 5 per centum fund for the redemption of outstanding national-bank notes and the funds provided in this chapter for the redemption of Federal reserve notes may, upon the direction of the Secretary of the Treasury, be deposited in Federal reserve banks, which banks, when required by the Secretary of the Treasury, shall act as fiscal agents of the United States; and the revenues of the Government or any part thereof may be deposited in such banks, and disbursements may be made by checks drawn against such deposits." Section 406 of the Agricultural Credit Act of 1923, 42 Stat. 1454 (U. S. C, Title 12, Section 393), provides as follows: "The Federal reserve banks are hereby authorized to act as depositories for and fiscal agents of any national agricultural credit corporation or Federal intermediate credit bank." Section 8 of an Act approved April 27, 1934, 48 Stat. 643 (U. S. C, Title 12, Section 394), amending the Home Owners' Loan Act of 1933, 48 Stat. 128, provides as follows: "The Federal reserve banks are authorized, with the approval of the Secretary of the Treasury, to act as depositaries, custodians, and fiscal agents for the Home Owners' Loan Corporation." 10. In view of the foregoing provisions of law, it is held that Federal reserve banks are instrumentalities of the United States for employment tax purposes. 11. Section 7 of the Federal Reserve Act, 38 Stat. 251 (U. S. C, Title 12, Section 531), provides as follows: "Federal reserve banks, including the capital stock and surplus therein, and the income derived therefrom shall be exempt from Federal, State, and local taxation, except taxes upon real estate." 12. Accordingly, the taxes imposed by Titles VIII and IX of the Social Security Act, the Federal Insurance Contributions Act, and the Federal Un291 From a Legal Standpoint employment Tax Act are not applicable with respect provides that such banks, when designated for that to servies performed either before or after January purpose by the Secretary of the Treasury, shall be 1, 1940, in the employ of Federal Reserve banks. depositaries of public money and may be employed as fiscal agents of the Government. State Banks Members of the Federal Reserve System 14. State banks which are members of the Federal 13. In S. S. T. 44, C. B. XV-2, 388 (1936), the reserve system are not wholly or partly owned by the Bureau ruled that State banks which are members United States, and there is no statutory authority of the Federal reserve system are instrumentalities for such ownership. There is no specific provision of the United States for social security tax purposes. of law which would serve to exempt such banks from Neither such banks nor their employees are subject the employment taxes. Accordingly, the taxes imto such taxes with respect to services performed prior posed by the Federal Insurance Contributions Act to January 1, 1940. This ruling is based upon the and the Federal Unemployment Tax Act are apAct of December 23, 1913 (38 Stat. 259), as amended plicable with respect to services performed on or after by the Act of May 7, 1928 (45 Stat. 492), which January 1, 1940, in the employ of such banks. The Role of Money "The role of money is to serve as lubrication to the economic mechanism. The essential condition of efficient performance of its service is that it shall flow freely and reach every part of the mechanism. An efficient monetary system is thus an essential prerequisite of a properly functioning economy, and any stoppage of the flow of lubricant will immediately impede the movement of the machine. But even a perfect lubricating system will not of itself start the machine when it has stopped, or ensure its even running. The smooth running of the economic machine depends upon an infinite number of interdependent economic processes being kept in adjustment. Many of the maladjustments were not caused by money and cannot be cured by money; and unemployment is a reflection of the net result of all the existing maladjustments. If a piston does not accurately fit its cylinder the machine will not function properly, nor will there be a normal flow of lubricant. But it would be futile to blame the defect on the lubricant. Similarly, the impoverishment of the export trades of a country may prevent the normal flow of money within that country. But the cause of the trouble is to a large extent non-monetary, and money cannot be expected to put it right. Monetary policy, then, takes its place as one of the elements of a complete economic policy—an essential element, but not the only essential element."—(From "The Next Five Years", An Essay in Political Agreement, published by Macmillan and Co., Limited, London, 1935.) 292 FEDERAL RESERVE BULLETIN Unveitmenti and Jli&uiditu ojj Hanki Vutlny 1939 embet by VICTOR M. LONGSTREET Senior Economist Division of Research and Statistics I NVESTMENT holdings of member banks increased by about $1,140,000,000 in 1939. All of the increase was at banks in central reserve and reserve cities and reflected chiefly a growth in holdings of United States Government long-term bonds and Government guaranteed short-term securities offset in MEMBER form of short-term obligations declined somewhat at New York City banks but showed little change at other reserve city banks and at country banks. At the end of 1939 member bank investments maturing in five years or less were about 53 per cent of total investments at New York City banks, BANK INVESTMENTS CALL REP0R1• DATES BILLIONS OF DOLLARS BILLIONS Of r DOL 25 25 20 n J 20 \ 15 15 / /- TC TAL - / y r i n 1/ U.S. )IRECT ~f 60VE RNME:NT AND C UARANTEED"^ 10 —^-« / y 5 IT nTS"— ^ ^-' — + — 1928 1930 / OTHER f — - 0 1920 1922 1924 1926 1932 1934 1936 1938 part by a reduction in Treasury notes. These 38 per cent at other reserve city banks (indevelopments were mostly the result of cluding Chicago), and 32 per cent at country changes in the amounts of various types and banks. maturities of Government obligations out- Although member banks' holdings of shortstanding. term Government securities, which form the As a result of changes in the composition bulk of their secondary reserves, did not of the investment portfolio of member banks, change greatly during the year, the liquidity the proportion of the portfolio held in the of member banks outside New York City and Note.—Views expressed in signed articles published in the BULLETIN are those of the writers and not necessarily those of the Board of Governors of the Federal Reserve System. APRIL 1940 293 Investments and Liquidity of Member Banks During 1939 Chicago increased considerably, reflecting mainly the growth of reserve balances and of balances with correspondents. The "liquidity" of individual banks for this purpose is measured by the ratio of the total of reserve balances, cash in vault, correspondent balances, collection items, open-market loans, and short term securities to total deposits. This ratio on December 30, 1939, as shown in Table 5, averaged 73 per cent at New York City banks, 65 per cent at Chicago banks, 54 per cent at reserve city banks, and 49 per cent at country member banks. Differences in liquidity among banks are related partly to differences in their deposit structure, since banks with the higher liquidity ratios generally have the higher proportions of demand to total deposits. Changes in investments by types and maturities Table 1 MEMBER BANK INVESTMENTS, ]L939 [In millions of dollars] Change during 1939 Held on Dec. 30,1939 All member banks Other CounNew try York reserve city banks City banks* banks2 19,540 +1,137 Total U. S. Government direct and guaranteed—total Direct obligations: Treasury bills 3 Treasury notes .__ _ Bonds maturing in 5 years or less. _ ___ Bonds maturing in 5 to 10 years _ Bonds maturing in 10 to 20 years.. Bonds maturing after 20 years _ Fully guaranteed obligations: Maturing in 5 years or less. _ __ _ After 5 years +983 +358 -205 14,328 +1,106 +914 +265 -74 563 +277 2,223 -1,166 +157 +100 +20 -345 -519 -301 773 +47 -30 +48 +29 3,018 +565 +340 +184 +41 3,657 +769 +383 +310 +76 949 -190 +30 -153 -67 +213 +512 +394 2,082 +1,119 Changes during 1939 in holdings of in-132 -86 -97 1,062 -315 vestments of various types and maturities at U. S. Government agencies +11 +28 377 +46 +7 the different classes of member banks are not guaranteed—total shown in Table 1. At New York City banks Maturing in 5 years or +21 -3 less +59 281 +41 total investments rose by nearly $1,000,000,-13 -10 96 Maturing after 5 years.. -13 +10 000 and at banks in 61 other reserve cities State and local govern+62 +79 2,692 +244 +103 (including Chicago) by about $350,000,000, ment securities—total while at country banks they declined by -1 In default -2 7 Without specific ma$200,000,000. turity _ 172 +20 +23 +3 Maturing in 5 years or The largest increases in holdings of invest+61 less ments were in direct obligations of the Fed- Maturing after 5 years._ 1,645 +167 +51 +24 +55 867 +11 +22 +57 eral Government maturing within 5 to 20 Other securities —total -221 -38 -259 2,143 years and in obligations guaranteed by the -1 -6 -5 In default * -12 77 Federal Government maturing within five Maturing in 5 years or -16 +27 451 +20 +9' less years, mostly issues of the Reconstruction -41 -200 -26 Maturing after 5 years._ 1,614 -267 Finance Corporation, Commodity Credit Corporation, and United States Housing Author- i Central reserve city banks only. 2 Include central ity. These increases occurred at all classes of reserve city banks. reserve city banks in Chicago, also branches of 5 member banks. There were also general but All Treasury notes mature withintheyears. they have been written Exclude securities in default to extent smaller increases in holdings of Treasury bills off the books. Exclude holdings of corporate stocks, which showed little change and in holdings of both short- and long-term in year. obligations issued by State and local govern- curities were closely related to changes in the ments. Increases in these various classes of se- structure of the Government's outstanding debt. amount of securities curities were partly offset by general de- offeredThe total Government and by publiclyby the clines in Treasury notes, aggregating about whose issues are guaranteed by the agencies $1,170,000,000, and by declines in long-term ment inqreased by $1,320,000,000 Governdomestic corporate bonds, notes, and deben- 1939, exclusive of savings or "Baby" during bonds tures at country banks. which could be bought by banks only in small Bank holdings compared with Government amounts. Total Government securities held by member banks increased by $1,110,000,securities outstanding 000. It is estimated that at nonmember Changes during 1939 in member bank banks, including mutual savings banks, holdholdings of United States Government se- ings of these securities increased by some4 5 3 4 6 294 FEDERAL RESERVE BULLETIN Investments and Liquidity of Member Banks During 1939 thing like $300,000,000 or $400,000,000. Thus the increase in holdings at all banks roughly matched the growth in Federal obligations available in the market. The extent to which changes in member bank holdings of Government securities of various types and maturities were related to changes in amounts outstanding is brought out by Table 2. Broadly speaking, member Table 2 CHANGES IN AMOUNTS OF UNITED STATES GOVERNMENT OBLIGATIONS OUTSTANDING AND HELD BY FEDERAL RESERVE BANKS AND MEMBER BANKS [In millions of dollars] holdings to run off during the year, thus adding about $570,000,000 to the market's supply. The decline in the volume of Treasury notes held by member banks was considerably smaller than the decline in the volume outstanding. The increase in member bank holdings of Treasury bonds of 10-20 years maturity was far short of the increase in the volume outstanding, reflecting in part the fact that the Reserve banks increased their holdings of such bonds by nearly $300,000,000. The decline in the outstanding amount of bonds maturing after 20 years, and to some extent in member bank holdings of such bonds, reflected the shift of bonds maturing in 1959 into the shorter category. Change during"1939 in amountOutstanding Total.. Direct obligations: Treasury bills Treasury notes Bonds maturing in 5 years or l e s s _ Bonds maturing in 5 to 10 years Bonds maturing in 10 to 20 years___ Bonds maturing after 20 years Fully guaranteed obligations: Maturing in 5 years or less. Maturing after 5 years Held by member banks Held by Federal Reserve banks +1,320 +1,106 -80 +149 +277 - 2 , 294 -1,166 -566 -25 +819 +2,022 +47 +565 +769 -190 +2 +113 +295 +90 + 1 , 749 -1,037 +1,119 -315 +5 +7 Maturity distribution of bank investments Shifts during 1939 in holdings of Government securities at member banks, while they have altered substantially the composition of the security portfolio, have not materially changed the distribution of maturities. Table 3 shows that the proportion of securities Table 3 MATURITY DISTRIBUTION OF MEMBER BANK INVESTMENTS, BY CLASSES OF BANKS, E N D OF 1938 AND 1939 i Amounts publicly offered excluding savings bonds and $120,000,000 of Treasury bonds sold directly to Ti rreasury trust and investment accounts. banks increased their holdings of bills and bonds, of which there were large offerings, and reduced holdings of Treasury notes, the outstanding amount of which declined. Banks purchased substantial amounts of the shortterm guaranteed issues offered during the year, while the decline in their holdings of long-term guaranteed securities reflected in part the calling of several issues of bonds of the Home Owners' Loan Corporation and of the Federal Farm Mortgage Corporation. The increase in the amount of guaranteed issues of the shorter term and conversely the decline in the amount of the longer term, both in total amounts outstanding and amounts held by member banks, are partly explained by the shift into the shorter category of an issue of Home Owners' Loan Corporation bonds maturing in 1944. Member bank holdings of Treasury bills showed a larger increase than the amount outstanding because the Federal Reserve banks permitted all of their Treasury bill APRIL 1940 All member banks December 30, 1939 Maturing in 5 years or less Maturing after 5 years Other 3 Total December 31, 1938 Maturing in 5 years or less Maturing after 5 years Other 3 Total Other New York reserve Country City 1 city 2 Danks banks banks 53 46 1 38 61 1 32 66 2 100% 100% 100% 41 58 1 56 43 1 38 61 1 31 67 2 100% 100% 100% 100% 41 58 1 100% 1 Central reserve city banks only. 2 Includes central reserve city banks in Chicago, also branches of reserve city banks. 3 Securities in default and securities without specific m a t u r i t y . maturing in five years or less to total investments other than stocks remained during 1939 at 41 per cent for member banks in the aggregate, decreased from 56 to 53 per cent for New York City banks, and remained at 38 per cent for other reserve city banks and at about 32 per cent for country banks. These figures make no allowance for the fact that many Government and corporate long-term 295 Investments and Liquidity of Member Banks During 1939 securities can be called much before maturity under certain conditions. New York City banks thus hold a larger proportion of shorter-term obligations than reserve city banks and reserve city banks hold a larger proportion than country banks. As shown by Table 4 this practice is evident for holdings both of Federal Government securities and of State and local government securities. State and local government securities held by banks are in general of much shorter term than their holdings of Federal securities. Of the total amount of State and local government securities held by all member banks, the proportion with maturities of five years or less is about 60 per cent. At New York City banks it is 85 per cent, and at other classes of banks about 55 per cent. These proportions were about the same as a year earlier. Table 4 MATURITY DISTRIBUTION OF MEMBER BANK MENTS, DECEMBER 30, 1939 INVEST- [By kinds of securities and by classes of banks] All member banks U. S. Government direct and guaranteed obligations—total New Other York reserve City city 2 banks* banks Country banks 100% 100% 100% 100% Direct obligations: Treasury bills. 3 Treasury notes . Bonds maturing in 5 years or less. Bonds maturing in 5 to 10 years. Bonds maturing in 10 to 20 years Bonds maturing after 20 years._. 4 15 5 21 26 7 7 17 7 19 19 5 3 16 5 22 29 7 1 14 5 21 28 8 Fully guaranteed obligations: Maturing in 5 years or less Maturing after 5 years 15 7 21 5 11 7 11 12 100% 100% 100% 100% 75 25 91 9 75 25 52 48 100% 100% 100% 100% 7 61 32 85 15 10 56 34 54 40 100% 100% 100% 100% 4 21 75 5 27 68 4 28 68 3 14 83 U. S. Government agencies, not guaranteed—total _. Maturing in 5 years or less Maturing after 5 years __. State and local government securities—total In default 4 Without specific maturity Maturing in 5 years or less M aturing after 5 years 6 O ther securities —total In default 4 Maturing in 5 years or less Maturing after 5 years 1 Central reserve city banks only. 2 Include central reserve city banks in Chicago, also branches of reserve city banks. 3 All Treasury notes mature within 5 years. 4 Exclude securities in default to the extent they have been written off the books. 5 Less than 0.5 per cent. 6 Exclude holdings of stocks. 296 Other obligations held by member banks, mostly corporate bonds, notes, and debentures, are chiefly of the longer term. About 21 per cent had maturities of five years or less at the end of 1939 compared with 18 per cent a year ago. These low percentages are probably due to the relatively small amount of short-term corporate securities outstanding. As in the case of Government obligations, the proportion of short-term corporate securities is larger at city banks than at country banks. Increase in Bank Liquidity In 1939 there was a substantial increase in the liquidity of member banks outside New York City, caused by further growth in city bank reserves and in country bank balances with other domestic banks, rather than by an increase in secondary reserves. Secondary reserves are those loans and investments that may be called or sold in the open market without involving the banks' relations with their customers or without risk of material loss of principal and are therefore readily usable to 5 meet losses of funds. They include brokers loans, bankers' acceptances, open-market commercial paper, and short-term high-grade securities. Table 5 shows by classes of banks the proportions of deposits represented by these and other liquid assets. At the end of 1939 the total of liquid assets for all member banks amounted to 59 per cent of gross deposits, compared with 56 per cent at the end of 1938. City banks hold larger proportions of their deposits in the form of liquid assets than do country banks, with the largest proportions in New York City and Chicago. The proportion of liquid assets to total deposits remained during 1939 at 73 for New York City banks and at 65 for Chicago banks, but increased from 50 to 54 at reserve city banks and from 45 to 49 at country banks. Changes in liquidity ratios of banks depend on changes in (1) the volume of their liquid assets and (2) the volume of their deposits. An increase in deposits will reduce liquidity ratios unless there is a corresponding increase in liquid assets. Deposits as well as liquid assets increased sharply at all classes of member banks in 1939. At banks in New York City and Chicago these increases had little net influence on the liquidity ratio beFEDERAL RESERVE BULLETIN Investments and Liquidity of Member Banks During 1939 Table 5 DEPOSIT STRUCTURE AND LIQUID ASSETS OF MEMBER BANKS, DECEMBER 30, 1939 [By classes of banks] All member banks Deposits Interbank deposits Other demand deposits Other time deposits Total deposits Liquid assets Reserve balances Central reserve city banks Reserve city banks Country banks New York Chicago 29 66 ' 5 27 58 15 21 53 26 4 53 43 100% 100% 100% 21 20 17 12 2 1 11 7 2 3 14 19 5 2 1 19 57 24 100% 24 3 5 2 2 16 22 21 14 Total liquid assets: December 30, 1939 December 31, 1938 59 56 73 73 65 65 54 50 11 1 4 4 4 49 45 cause their effects about offset each other. At reserve city and country banks, however, the gain in reserve funds, which at country banks was mostly redeposited with city correspondents, was relatively larger than the gain in deposits, with the result that liquidity ratios increased. Differences in liquidity among banks are due partly to differences in the nature of the banks' liabilities. As shown by Table 5, banks in New York and other leading cities, where liquidity is highest, have on the average relatively large proportions of interbank and other deposits payable on demand, while country banks, which have lower liquidity, show on the average a small proportion of interbank deposits and relatively large savings and other time deposits. This broad relationship between liquidity and deposit structure of banks is also shown by the figures for reserve city and country banks by Federal Reserve districts, which 1940 LIQUIDITY OF MEMBER BANKS, BY RESERVE DISTRICTS, DECEMBER 30, 1939 Reserve city banks 1 Federal Reserve district Country banks Ratio of Ratio of Liquidity demands Liquidity demand3 to total ratio 2 ratio 2 to total deposits deposits 12 Required reserves Excess reserves Cash in vault Balances with other domestic banks Cash items in process of collection Open-market paper and loans Securities maturing in 5 years or less APRIL Table 6 100% 13 11 are presented in Table 6 for the end of 1939. In general, banks with the higher liquidity ratios, as measured in these tables, have relatively large amounts of demand deposits and small amounts of time deposits, as is the Total... Boston New York i... Philadelphia. Cleveland 54% 74% 49% 57% 61 47 53 57 93 62 86 73 51 44 43 45 62 51 45 49 Richmond Atlanta l Chicago St. Louis 64 54 63 58 80 82 70 84 50 55 54 52 62 71 56 62 Minneapolis.. Kansas City.. Dallas San Francisco 53 69 60 35 83 87 51 56 61 41 55 75 85 57 1 Central reserve city banks in New York and Chicago not included, 2 Percentage of total deposits held in the form of reserves, cash in vaultbalances with correspondents, cash items in process of collection, open, market loans, and securities maturing in 5 years or less. 3 Includes all interbank deposits and other demand deposits. case with both reserve city and country banks in the reserve districts of Kansas City and Dallas, while relatively lower liquidity ratios go with low proportions of demand deposits, as shown by both reserve city and country member banks in the New York and San Francisco districts. The figures for the latter district are affected somewhat by the inclusion of country branches in the figures for reserve city banks. As an exception to the general rule, in the Chicago district both reserve city and country member banks show relatively high liquidity ratios and at the same time low proportions of demand deposits. The relationships appear sufficiently uniform, however, to indicate that the deposit structure is an important factor, though not always the principal factor, accounting for variations in bank liquidity. 297 United States (jovetnment (2otpotation5 and (2tadit -@gencie5 in 1939 by HENRY EDMISTON and GUNHILD ANDERSON Division of Research and Statistics T HE most significant developments in 1939 in the operations of United States Government corporations and credit agencies are summarized below: 1. A larger proportion of their funds was obtained through sale of their own obligations in the market. Largely as a result of this financing, a substantial amount of funds which had been advanced by the Treasury was repaid and the proprietary interest of the United States Government in the corporations declined. 2. Although their total loans and holdings of securities of financial institutions increased by $210,000,000 during the year, there was considerable variation in the trend of loans and investments of individual agencies. Outstanding loans of the large emergency financing corporations, such as the Reconstruction Finance Corporation and the Home Owners' Loan Corporation, and the loans of the farm mortgage agencies continued to decline. Some of the newer agencies had increases in loans and Commodity Credit Corporation loans increased by nearly $300,000,000, largely due to the acquisition from banks and other lending agencies of nonrecourse loans to farmers which had been made with a commitment from the Corporation. 3. In line with the general reduction in interest rates, which has been occurring in recent years, there were a number of rate reductions, particularly by the home mortgage and agricultural credit agencies, together with the extension of more favorable terms to the borrowers of certain agencies through reamortization of loans on longer terms and liberalization of foreclosure practices. 4. Under the Reorganization Act of 1939 changes were made in the supervision of activities of the various corporations and lending agencies. 5. The President's Budget Message of January 4, 1940, proposed that $700,000,000 of capital funds of the Government corporations should be returned to the Treasury during the fiscal year 1941. In Table 1 are shown for December 31, 1938 and 1939, the principal assets and liabilities of Government corporations and credit agencies based upon the compilation published as part of the daily statement of the United States Treasury for the end of each month. Similar figures in greater detail than those shown in Table 1 are published regularly in the BULLETIN ; see pp. 337-338 of this issue for latest figures. As shown in the table, outstanding bonds, notes and debentures of the agencies increased by $740,000,000 during 1939. Most of this increase resulted from the sales in the open market of new guaranteed issues of the Reconstruction Finance Corporation, the Commodity Credit Corporation, and the United States Housing Authority, partly offset by redemptions of Federal Farm Mortgage Corporation and Home Owners' Loan Corporation bonds. The total amount of guaranteed obligations outstanding at the end of the year was $5,700,000,000, a new high level. Owing largely to the repayment of Reconstruction Finance Corporation notes held by the Treasury, the proprietary interest of the United States Government in the agencies decreased by $400,000,000 to $3,620,000,000, the smallest total in more than five years. Total outstanding loans and holdings of securities of financial institutions increased by $210,000,000 in 1939, following a small increase in 1938 and reductions of close to $400,000,000 in each of the years 1936 and 1937. Increases occurred in loans of the United States Housing Authority, Federal National Mortgage Association, Rural Electrification Administration, Farm Security Administration, and the Commodity Credit Corporation. The largest element in these increases was the purchase by the Commodity Credit Corporation from banks and other Note.—Views expressed in signed articles published in the BULLETIN are those of the writers and not necessarily those of the Board of Governors of the Federal Reserve System. 298 FEDERAL RESERVE BULLETIN United States Government Corporations and Credit Agencies in 1939 TABLE 1.—ASSETS AND LIABILITIES OF GOVERNMENT CORPORATIONS AND CREDIT AGENCIES, DECEMBER 31, 1938 AND 1939 [In millions of dollars] Change in 1939 Dec. 31, 1939 Dec. 31, 19381 Loans and preferred stock Cash U. S. Government direct and guaranteed obligations Accounts and other receivables Property held for sale Other assets 2 8,951 460 i 8, 739 370 +211 +90 379 661 723 855 328 i 552 +33 +51 -28 +171 3 12,062 i 11, 533 +528 Bonds, notes, and debentures: Guaranteed by United States Other 2 Other liabilities (including reserves) Total liabilities other than interagency 3 Privately owned interests U. S. Government interests 5,704 1,348 995 4,992 1,317 1821 +712 +31 +175 8,048 i 7,130 397 3,617 381 4,022 Assets Total assets other than interagency . Liabilities and the Federal Farm Mortgage Corporation, which held about one-third of the total, (2) the Home Owners' Loan Corporation, holding about one-fourth, and (3) the Reconstruction Finance Corporation, together with the Public Works Administration, which held over one-sixth. Other agricultural loans made by various agencies amounted to $1,520,000,000, other home mortgage and housing loans to $550,000,000, and miscellaneous loans of various agencies to $400,000,000. The mortgage agencies, particularly the Home Owners' Loan Corporation, held a substantial amount of property for sale. The Government's proprietary interest in agencies engaged primarily in lending was $2,900,000,000 at the end of 1939, or $510,- +918 TABLE 2.—LOANS AND INVESTMENTS OF GOVERNMENT CORPORATIONS AND CREDIT AGENCIES AND PROPRIE+16 TARY INTEREST OF UNITED STATES, DECEMBER 31, -405 1939 [In millions of dollars] 1 Previously published figures for December 31, 1938, have been adjusted as follows in order to make them comparable with 1939: (1) loans of the Farm Credit Administration from Congressional appropriations are now shown on a gross instead of a net basis and reserves set up against these loans are included under "other liabilities," and (2) commitments of the Maritime Commission for ship construction and terminal repairs are now excluded from "other assets" and "other liabilities." 2 Excludes $761,000,000 of Federal land bank bonds held by Federal Farm Mortgage Corporation. 3 Includes, however, investments in securities of agencies (other than mentioned in footnote 2) and deposits of agencies with Reconstruction Finance Corporation. lending agencies of cotton and corn loans maturing in the summer of 1939 which, in the underlying Treasury compilation, are shown as loans although the Corporation has taken title to this cotton and to part of the corn. Emergency loans made largely during the period 1932 to 1935 showed a further decline in 1939. Outstanding farm mortgage and Home Owners' Loan Corporation home mortgage loans declined by $270,000,000 during the year and loans to and investments in securities of financial institutions, consisting largely of Reconstruction Finance Corporation emergency advances to and investments in preferred stock of commercial banks, were reduced by $80,000,000. In Table 2, outstanding loans and investments of, and the Government's proprietary interest in, agencies engaged primarily in lending are shown separately from other agencies. Out of the total of outstanding loans and investments of $8,950,000,000 at the end of 1939, $6,480,000,000, or 72 per cent, was held by three groups of lending agencies, namely (1) the farm mortgage agencies, including the Federal land banks APRIL 1940 Outstanding loans, investments in preferred stock, Proprietary capital notes interest of and debentures, United States and shares of Government financial institutions Dec. 31, 1939 Agencies engaged primarily in lending: Reconstruction Finance Corporation and Public Works Administration 1,634 Home mortgage and housing agencies: 2,250 Home Owners' Loan Corporation 425 Other mortgage agencies 1 123 U. S. Housing Authority Farm credit agencies: 2,596 Farm mortgage agencies 667 Commodity Credit Corporation 257 Farm Security Administration 600 Other 2 Other lending agencies: 183 Rural Electrification Administration.. Other lending agencies . 158 Total lending agencies.. -163 580 -738 -134 +45 +91 52 285 151 -17 -140 +299 +78 3 -17 512 100 257 509 "+78 -17 +95 +26 185 268 +96 +78 Insurance agencies 4 Tennessee Valley Authority _ Other +16 325 306 87 +14 +85 +2 +211 3,617 -405 +31 8,951 +7 -506 +181 Other agencies: Total all agencies.. Change Dec. Change in in 31, 1939 1939 1939 1 Including Federal Home Loan banks, R.F.C. Mortgage Company, Federal National Mortgage Association, and investments in shares of Federal savings and loan associations by the Treasury. 2 Including Federal intermediate credit banks, Banks for cooperatives, Production credit corporations, Regional agricultural credit corporations, and Congressional appropriations administered by the Farm Credit Administration. 3 In computing this change, previously published figures for December 31, 1938, were adjusted as indicated in footnote 1 to Table 1. 4 Including Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, Federal Housing Administration, and Federal Crop Insurance Corporation. 6 Less than $500,000. 299 United States Government Corporations and Credit Agencies in 1939 000,000 less than at the end of 1938. The declined by $160,000,000 during the year to equity of the United States in the assets of $1,630,000,000. This was the largest dethe four insurance agencies increased slightly crease of any year since 1936 when there were to $325,000,000 at the end of the year. The large retirements by banks of their preferred largest of these agencies is the Federal De- stock. posit Insurance Corporation. These agencies The largest decrease in outstanding Redo not make loans except as an incident to construction Finance Corporation loans in their insurance functions but hold assets, 1939 was for self-liquidating projects which primarily in the form of United States Gov- declined by $110,000,000 largely as a result ernment obligations, as reserves against pos- of sales of obligations to private investors, sible future claims. Certain other agencies including $73,000,000 of bonds of the Metroare primarily operating organizations. The politan Water District of Southern Calif ornia Government's proprietary interest in three and $71,000,000 San Francisco-Oakland Bay of these; the Tennessee Valley Authority, Toll Bridge bonds, both of which issues were the Panama Railroad Company, and the In- sold at substantial premiums. The combined land Waterways Corporation, amounted to holdings of securities acquired by the Public $380,000,000 at the end of 1939 and repre- Works Administration in connection with its sented principally business property held. works programs increased slightly; loans The increase of $90,000,000 in this equity held by the Public Works Administration during the year was almost wholly in the were $30,000,000 higher than in 1939 but the Tennessee Valley Authority. transfers of such securities to private inUnder the Reorganization Act of 1939, the vestors by the Reconstruction Finance CorFederal Loan Agency was established on poration were $20,000,000 larger than the July 1, 1939, to supervise and coordinate the amounts taken over from the Public Works activities of the Reconstruction Finance Cor- Administration. There were further net retirements of poration, Electric Home and Farm Authority, R. F. C. Mortgage Company, Disaster Loan $50,000,000 in 1939 of securities of banks Corporation, Federal National Mortgage As- held by the Reconstruction Finance Corporasociation, Federal Home Loan Bank Board, tion and outstanding loans to banks, which Home Owners' Loan Corporation, Federal are almost all closed banks, declined by $25,Savings and Loan Insurance Corporation, 000,000. There were also decreases in loans Federal Housing Administration, and the for financing the sale of agricultural surpluses Export-Import Bank. Effective on the same date, the Farm Credit Administration, ComINVESTMENTS OF modity Credit Corporation, and the Rural TABLE 3.—LOANS AND CORPORATION ANDTHE RECONSTRUCTION FINANCE Electrification Administration were trans- WORKS ADMINISTRATION DURING 1939 THE PUBLIC ferred to the Department of Agriculture, and [In millions of dollars] the Public Works Administration and the United States Housing Authority were placed Outunder the newly-created Federal Works Net standDisReing change bursed paid Agency. Dec. in in in 31, 1939 1939 1939 In his message to Congress on January 4, 1939 1940, transmitting the budget for the fiscal year 1941, the President estimated that, in Investment in preferred stock, etc., 72 24 -49 495 __ _ view of the lessening need for loans in some of banks * to _ _ 34 11 -24 120 cases and the growing surpluses in other Loans onbanks. __ Loans commodities 7 27 -20 1 Loans to railroads 40 27 449 +13 cases, it will prove feasible to reduce the Loans to industrial and commercial 54 31 +23 businesses 131 capital funds of some of the Government Loans to drainage, levee, and irricorporations by an aggregate figure of $700,- gation districts __ 5 2 +3 84 F. C. 000,000, without in any way impeding their R.projects. loans for self-liquidating 79 60 2 167 -107 .. . P. W. A. advances (obligations held operations. + 12 3 193 by P. W. A. and R. F. C.) -14 Miscellaneous loans 5 20 82 Reconstruction Finance Corporation and 1,634 -163 Total . ._ Public Works Administration.—As shown in Table 3, total outstanding loans and invest- 1 Including loans secured by preferred stock, etc., of banks. 2 ments of the Reconstruction Finance Corpo- 3 Includes obligations sold to others. by Public Works Administraration and the Public Works Administration tion.Includes $72,000,000 obligations held 300 FEDERAL RESERVE BULLETIN United States Government Corporations and Credit Agencies in 1939 TABLE 4.—PRINCIPAL ASSETS AND LIABILITIES OF HOME MORTGAGE AND HOUSING AGENCIES, DECEMBER 31, 1939 [In millions of dollars] Home Federal Federal R.F.O. United Owners' Home National MortStates gage Loan Loan MortHousing Com- AuthorCorpo- banks gage ration Associa- pany ity tion Asset* Loans . Shares of savings and loan associations 1 Cash and U. S. Government obligationsProperty held for sale._ Other assets 2,038 181 190 510 14 73 Total assets» 2,963 255 2,814 (a) 97 2,911 147 57 123 211 1 I (3) 14 3 132 150 60 269 49 31 85 3 2 4 79 88 2 118 CO and in miscellaneous loans, due chiefly to a decrease in loans to mortgage loan companies. Loans to railroads and industrial and commercial business concerns were somewhat larger at the end of the year than a year earlier. The following summary gives a general indication for the Reconstruction Finance Corporation of the sources and uses of funds in 1939. Funds from the sales of $590,000,000 of guaranteed notes and repayments of loans and investments were used largely to repay Reconstruction Finance Corporation notes held by the Treasury which were reduced from $755,000,000 on December 31, 1938, to $10,000,000 at the end of December 1939. Liabilities Bonds and notes: Changes in assets and liabilities * other than funded debt: Guaranteed by U . S . _ Loans and investments _ ,._ —$194,000,000 Other Other net assets less miscellaneous liabilities. __ +12,000,000 Other liabilities Aggregate net change _ -$182,000,000 Total liabilities*. 114 Changes in funded debt and net worth: Notes fully guaranteed by United States +$587,000,000 i In addition to these investments, the Treasury had $40,000,000 inUnited States Government proprietary interests: vested in shares of Federal savings and loan associations, Earned surplus... +$54,000,000 a Less than $500,000. Net liability to other agencies -823,000,000 3 Excluding interagency Net change -769,000,000 agencies and deposits withitems except investments in securities of other Reconstruction Finance Corporation. -$182,000,000 i Exclusive of interagency items except as indicated in footnote 3 to Table 1. Home mortgage and housing agencies.— The principal items of assets and liabilities of the various home mortgage and housing agencies as of December 31,1939, are summarized in Table 4. The emergency Home Owners' Loan Corporation, established in 1933, made loans, to be amortized in 15 years, to home owners in a refinancing program which terminated in June 1936. The principal activities of the Corporation are now the servicing of its loans and the management and sale of properties acquired. During 1939 changes were made in certain provisions regarding loans. Under legislation enacted in August the Corporation may extend loans to a maximum of 25 years in cases where such extensions appear justified. By administrative action the interest rate which had been, in general, 5 per cent was reduced to 4*/2 per cent on all payments due on or after October 16, 1939. This lower rate was made applicable to all purchase money obligations created after October 1, 1939, in connection with sales of property acquired by the Corporation. Total outstanding loans of the Home Owners' Loan Corporation declined by $130,000,APRIL 1940 000 during 1939 compared with decreases of $230,000,000 in 1938 and $370,000,000 in 1937. The smaller reduction in 1939 does not reflect lower principal repayments but resulted largely from new loans created in connection with the sale of foreclosed property and from a smaller volume of loan balances transferred to property and other accounts as foreclosures were authorized. Repayments of principal on the original loans in 1939 were about $20,000,000 larger than in 1938, most of which resulted from increasing principal payments under the direct-reduction amortization plan on which these loans are based. Investments by the Home Owners' Loan Corporation in shares of Federal and other savings and loan associations declined slightly in 1939 to $210,000,000. The Corporation is authorized to invest up to $300,000,000 in shares of these associations. The Treasury's investment in shares of Federal savings and loan associations of $40,000,000 on December 31,1939, was $7,000,000 less than a year earlier. Major changes during 1939 in the condition statement of the Home Owners' Loan Corporation are shown in the following summary. Refunding operations were carried out for $1,230,000,000 of bonds maturing or callable during the year, of which $1,000,000,301 United States Government Corporations and Credit Agencies in 1939 000 were exchanged for new bonds, $75,000,000 were retired from the proceeds from sales of the new bonds for cash, another $75,000,000 were paid off in cash and $80,000,000 of the matured bonds had not been presented for redemption at the end of the year. Changes in assets and liabilities other than funded debt: Loans -$131,000,000 Property held for sale -33,000,000 Cash and United States direct obligations +60,000,000 Shares of Federal and other savings and loans associations _._ —3,000,000 Other net assets less miscellaneous liabilities +25,000,000 Aggregate net change -$82,000,000 Changes in funded debt and net worth: Bonds fully guaranteed by United States i -$74,000,000 United States Government proprietary interests: Paid-in capital less deficit -$18,000,000 Net liability to other agencies +10,000,000 Net change -8,000,000 -$82,000,000 i In computing this difference, $82,000,000 of matured bonds not presented for retirement were included with the amount outstanding on December 31, 1939. Total resources of the Federal Home Loan banks declined by $30,000,000 in 1939 due primarily to the retirement on July 1 of $42,000,000 of consolidated debentures, which left a balance of $49,000,000 outstanding at the end of the year. Although advances to member institutions in 1939 were larger than in the preceding year, repayments were at a record high level and the amount of outstanding loans declined from $200,000,000 at the end of 1938 to $180,000,000 on December 31, 1939. Private investments in savings and loan associations increased substantially and it is estimated that new loans made by all member institutions increased from $620,000,000 in 1938 to $800,000,000 in 1939. The value of new loans made by all savings and loan associations in 1939 appears to have been the highest of any year since 1930. A steadily increasing proportion of their home mortgage loans during the past few years has gone directly into the construction and purchase of homes; it is estimated that this proportion was 65 per cent in 1939 as compared with 54 per cent in 1936. The Federal National Mortgage Association and the R. P. C. Mortgage Company, both of which are owned by the Reconstruction Finance Corporation, are engaged in mortgage lending primarily through the purchase and sale of mortgages insured by the Federal Housing Administration. The Federal National Mortgage Association deals chiefly in mortgages on new homes and rental housing projects, but it also is authorized to make loans on new large-scale rental projects 302 under certain conditions. The R. F. C. Mortgage Company deals primarily in insured mortgages on old homes and on income-producing property. It was recently announced that the Company will also deal in mortgages on small homes under the plan recently inaugurated under Title I of the Housing Act as amended in June 1939 to facilitate the financing and construction of homes costing $2,500 or less. At the end of 1939 the Federal National Mortgage Association held $147,000,000 of insured mortgages, an increase of $66,000,000 during the year. Funds for its operations during the year were obtained through the sale of $55,000,000 of its notes to the public, which increased the outstanding amount to $85,000,000, and from advances by the Reconstruction Finance Corporation. Total loans and insured mortgages of $57,000,000 held by the R. F. C. Mortgage Company on December 31,1939, were slightly lower than at the end of the preceding year. The United States Housing Authority, which was organized in 1937, is authorized to make long-term loans up to $800,000,000, under specified conditions, to local housing authorities for slum clearance and low-rent housing projects. Owing largely to the limitation of $28,000,000 provided by law for the annual contribution which the Authority may contract to give to local authorities as an aid in achieving low rents, it appears that not all of the $800,000,000 may be earmarked. At the end of the year, total commitments of the Authority amounted to about $670,000,000 and contracts had been made calling for maximum advances of $524,000,000. Net loans actually made during the year increased by $90,000,000 to a total of $123,000,000 on December 31, 1939. Funds for the operation of the Authority during 1939 were obtained from the sale to the public of $114,000,000 of fully guaranteed notes. In November a new plan for financing construction costs of local authorities was put into effect. Under this plan local authorities, after approval by the Federal Authority, may sell to the lowest public bidders short-term notes tofinanceconstruction costs. The Authority makes an irrevocable commitment to deposit funds with the Federal Reserve banks for the retirement of the notes when they mature. The first short-term notes of six months maturity, aggregating $50,000,000, were sold to private investors by a group of local authorities in November FEDERAL RESERVE BULLETIN United States Government Corporations and Credit Agencies in 1939 at interest rates averaging slightly less than struction as compared with 70 per cent at the six-tenths of 1 per cent. About $26,000,000 end of 1938. During 1939 there was also an of the proceeds was used to repay advances increase from $62,000,000 to $114,000,000 in already made to the local bodies by the Au- insured mortgages on large-scale rental-housthority. In January 1940, other issues ing projects which became premium payamounting to $35,000,000 were sold and it ing. By administrative action the maximum is planned that in the future, issues of similar interest rate on new insured home mortgage short-term notes will be offered about every loans was reduced from 5 to 4% per cent two months. In February 1940, a further and on rental projects from 4 ^ to 4 per cent step was taken in financing the development applicable to all commitments for insurance costs of housing projects by the direct sale issued subsequent to July 31, 1939. of securities of local authorities to the pub- Insured loans for property improvement, lic. During that month a group of four local including new construction, increased by authorities sold about $1,700,000, of long- $230,000,000 during 1939 to a total of $970,term bonds, the proceeds from which will 000,000 at the end of the year. Authority finance from 10 to 25 per cent of the develop- for continuing insurance of such loans until ment costs of their projects. July 1, 1941, was granted by amendments The Federal Housing Administration, enacted in June 1939 to Title I of the National which is included in the BULLETIN tables Housing Act. In the fall of 1939 the Housing under "Insurance agencies", makes no mort- Administration under this Title announced gage loans but insures approved lending insti- a plan designed to encourage the construction tutions against losses on loans secured by of low-cost homes. Loans of up to $2,500 on mortgages on homes and rental housing proj- new home construction maturing in 15 years ects and on loans for property improvement and 5 months, may now be insured if the borwhich meet certain requirements. Total as- rower's equity is equal to at least 5 per cent sets of the Federal Housing Administration of the appraised value of the completed propincreased by $10,000,000 during 1939 reflect- erty. The maximum interest charge on these ing largely increases in insurance funds loans is 4^2 per cent with an annual service which it administers. At the end of the year charge of */2 of 1 per cent and an annual the Mutual Mortgage Insurance Fund had mortgage insurance premium of y% of 1 per total assets of $30,000,000, an increase of $6,- cent on the original principal. 000,000 for the year; total assets of the Housing Insurance Fund which was set up in 1938 Farm credit agencies.—In table 5 are sumagainst insured mortgages on large-scale marized the principal items of assets and housing projects increased somewhat to $2,- liabilities of the farm credit agencies on 210,000 on December 31, 1939. Guaranteed December 31, 1939. debentures issued in settlement of insurance Outstanding loans of the permanent Fedclaims and outstanding at the end of the year eral land banks and the emergency Federal amounted to $3,550,000, as compared with Farm Mortgage Corporation, both of which $1,260,000 at the end of 1938, and property are under the direct supervision of the Farm held for sale increased to $2,840,000 at the Credit Administration, declined by $140,000,end of 1939. 000 during the year to a total of $2,600,000,During 1939 there was a large increase in 000 on December 31, 1939, of which $1,900,the business transacted by the Federal Hous- 000,000 were first mortgage loans of the ing Administration. Home mortgages in- Federal land banks. New loans of $80,000,sured during the year, as indicated by those 000 made by these agencies during the year that became premium paying, aggregated were about the same as in 1938. $670,000,000, an increase of almost $200,000,- Principal repayments of loans to the Fed000, or 41 per cent, as compared with 1938. eral land banks in 1939 were about $23,000,The cumulative total of these insured mort- 000 larger than in 1938. Part of this increase gages reached $1,970,000,000 at the end of is attributable to the fact that 1939 was the the year. Outstanding conditional and firm first full year during which principal installcommitments to insure home mortgages were ments on a large portion of these loans were about $50,000,000 larger at the end of 1939 required since the expiration on July 11,1938, than a year earlier. About 73 per cent of of the moratorium on principal payments on all mortgages being accepted for insurance loans in good standing on June 3, 1935. The at the close of the year involved new con- percentage of land bank loans in good standAPRIL 1940 303 United States Government Corporations and Credit Agencies in 1939 TABLE 5.—PRINCIPAL ASSETS AND LIABILITIES OF FARM CREDIT AGENCIES, DECEMBER 31, 1939 [In millions of dollars] Appropriations administered by Farm Credit Administration Commodity Credit Corporation 342 Federal Fed- Farm eral Mortland gage banks Corporation Other Farm Credit Administration banks and corporations 1 258 667 263 19 1 Farm Security Administration Assets Loans and stock.. 1,905 Cash and U. S. Gov't obligations __. 139 Accounts and other receivables 160 Property held for sale 94 Other assets 21 46 Total assets 3_ 2,311 772 20 4 2 ) 35 645 282 257 largely in areas which have suffered from drought during the last few years. Under legislation enacted in February 1940, the time during which these loans may be made was extended from February 1, 1940, to June 1, 1942. During 1939 the interest rates on Federal land bank and Commissioner loans were 3^2 per cent (4 per cent for direct loans) and 4 per cent, respectively, under the law which continues these reduced rates until July 1, 1940. Payments by the Treasury to these agencies to reimburse them for interest reductions amounted to $37,000,000. The following table derived from a consolidation of Treasury statements for the Federal land banks and the Federal Farm Mortgage Corporation indicate the sources and uses of funds of these agencies during 1939. Liabilities Bonds, notes and debentures: Guaranteed Other Other liabilities.. Total liabilities 3 1,270 407 54 """66" 207 10 196 1,325 217 196 Changes in assets and liabilities 1 other than funded debt: -$140,000,000 Loans -6,000,000 Property held for sale +12,000,000 Cash and United States direct obligations +12,000,000 Other assets less miscellaneous liabilities Aggregate net change 1,043 596 i Includes Federal intermediate credit banks, Banks for cooperatives, Production credit corporations, and Regional agricultural credit corporations. »Less than $500,000. 3 Excluding interagency items except investments in securities of other agencies (other than mentioned in footnote 4) and deposits with Reconstruction Finance Corporation. < Excludes $761,000,000 of Federal land bank bonds held by Federal Farm Mortgage Corporation. ing increased slightly from 77.1 per cent at the end of December 1938 to 77.5 per cent on December 31, 1939. Foreclosures, which had increased early in 1939, showed a marked decrease during the last quarter of the year, reflecting largely the temporary suspension of all foreclosure action except in cases involving bad faith, abandonment, and irreparable loss. Principal payments on loans of the Federal Farm Mortgage Corporation, which are known as "Land Bank Commissioner loans," also increased somewhat during 1939, while the proportion of the number of these loans with all matured installments fully paid of 70.3 per cent at the end of the year was about the same as on December 31,1938. As in the case of the Federal land banks, the number of foreclosures declined sharply near the end of the year following the temporary suspension of most foreclosures in the autumn. During the year a considerable number of the 13-year Land Bank Commissioner loans were reamortized for terms of 20 years or more 304 -$122,000,000 Changes in funded debt and net worth: Federal Farm Mortgage Corporation guaranteed by United States Federal land bank bonds Private capital stock Earned surplus of Federal land banks United States Government proprietary Paid-in capital and surplus Net liability to other agencies Net change bonds fully _ • -$118,000,000 -31,000,000 -2,000,000 +13,000,000 interest: +$5,000,000 +11,000,000 +16,000,000 -$122,000,000 i Exclusive of interagency items except as indicated in footnote 3, Table 1. As shown in this table, outstanding bonds were reduced by $150,000,000 and cash and United States securities were increased by $10,000,000. Funds for these purposes were obtained largely from repayments of loans and from earnings of the Federal land banks whose earned surplus increased by $13,000,000 after setting aside valuation reserves. Short-term agricultural loans, together with investments in agricultural lending institutions, of agencies other than the Reconstruction Finance Corporation and the Export-Import Bank, amounted to $1,520,000,000 at the end of 1939, an increase of $360,000,000 over 1938. All of this increase resulted from a larger volume of loans held by the Commodity Credit Corporation and the Farm Security Administration. Outstanding loans of banks and corporations under the direct supervision of the Farm Credit Administration, including the Federal intermediate credit banks, banks for cooperatives, and the regional agricultural credit corporaFEDERAL RESERVE BULLETIN United States Government Corporations and Credit Agencies in 1939 tions, declined slightly to a total of about $265,000,000 at the end of the year; investments of $75,000,000 by production credit corporations in Class "A" stock of production credit associations were about the same as a year earlier. Effective February 24, 1939, the interest rate on all loans and discounts of the Federal intermediate credit banks was reduced from 2 to l1/^ per cent and consequently the rates on operating capital and commodity loans of the banks for cooperatives were reduced to 2V2 and 1^2 per cent, respectively. Emergency crop and drought relief loans and loans to stabilization corporations administered by the Farm Credit Administration declined slightly in 1939 to a total of $260,000,000. Outstanding loans of the Commodity Credit Corporation, including commodities owned, increased by $300,000,000 to a total of $670,000,000 at the end of 1939. About two-thirds of this increase resulted from purchases in July and August by the Corporation of maturing 1937-1938 cotton loans and 1938-1939 corn loans from banks and other lending agencies which had been made under definite purchase agreements with the Corporation. The balance of the increase represented largely loans made directly by the Corporation on the 1939 tobacco crop and purchases of 1938-1939 cotton loans from lending agencies. At the end of December 1939, about $240,000,000 of loans, largely on 19381939 cotton and 1939 wheat, were held by banks and other lending agencies under purchase agreements with the Corporation, a decrease of about $130,000,000, as compared with December 1938. Under legislation approved in March 1939 the functions of the Commodity Credit Corporation were extended to June 30, 1941, and the authorization to secure funds through the sale of fully guaranteed obligations was increased from $500,000,000 to $900,000,000. In August 1939 an issue of $200,000,000 of guaranteed obligations was sold to the public which increased the total amount outstanding to about $410,000,000. Under the law which provides for an annual appraisal of assets of the Corporation and for maintaining its capital unimpaired at $100,000,000, the Treasury made payments to the Corporation of $120,000,000 in August 1939 as compared with similar payments of $94,000,000 in the preceding year. At the end of 1939, $30,000,000 of these payments had been used to offset losses on liquidated loans and $185,000,000 APRIL 1940 was carried as a reserve against further losses on loans. Effective November 1, 1939, the interest rate to farmers on all Commodity Credit Corporation loans was reduced from 4 to 3 per cent and the rate guaranteed to lending agencies making these loans under purchase agreements after that date was reduced from 2*/2 per cent to 2 per cent. Loans by the Farm Security Administration outstanding on December 31, 1939, amounted to $260,000,000, or $80,000,000 more than a year earlier. The chief functions of this agency are to continue the rural rehabilitation program of the Resettlement Administration and to administer the farm purchase program of the Farm Tenant Act approved in 1937 under which tenants, sharecroppers, and farm laborers may receive long-term loans for the purchase of farms. Other lending agencies.—A major part of loans not discussed above consist of rural electrification loans, ship loans, loans by the Export-Import Bank, and war-time railroad loans. Outstanding loans of the Rural Electrification Administration, whose function is to facilitate the use of electricity in rural areas, amounted to $180,000,000 on December 31, 1939, an increase of $95,000,000 during the year. Funds for these loans were available from Congressional appropriations and from allocations by the Reconstruction Finance Corporation as authorized by Congress. Outstanding loans of the United States Maritime Commission declined slightly during the year to about $50,000,000. During the year, however, advances for vessels under construction increased by about $85,000,000 to a total of $90,000,000, and commitments for ship construction increased by $130,000,000 to a total of $225,000,000. Outstanding loans of the Export-Import Bank of $40,000,000 at the end of 1939 were $15,000,000 larger than a year earlier. By legislation enacted during the year the functions of this agency were continued until June 30, 1941, and a limit of $100,000,000 was placed on the amount of its loans which may be outstanding at any one time. Under the Act of March 2, 1940, the lending authority was increased to $200,000,000 with a provision that the aggregate amount of loans which may thereafter be made to any one foreign country and agencies or nationals thereof, shall not exceed $20,000,000; this amount is in addition to loans authorized or made prior to March 2, 1940. 305 the fioatd*5 (2ottQ5v2onc£enc<z i r t T HE character and volume of inquiries addressed to the Board in recent years reflect the public's growing interest in problems related to money and banking. The inquiries cover a wide range of subjects representing many points of view, and it is believed that some of the questions raised, together with the Board?* replies, may be of interest to the readers of the BULLETIN. Selections for publication are made on the basis of frequency of inquiry, timeliness, and importance of subject matter. I'lta -Qutkoiiiu to Dstue ^Tectctal A/ot e* "By what authority do the Federal Reserve banks issue Federal Reserve notes?" T HE Constitution vests in Congress the sole power to coin money and regulate the value thereof. The power to issue paper money is derived from this and other powers conferred upon Congress by the Constitution. Accordingly, Congress possesses and exercises complete control over the issuance of all forms of currency, including Federal Reserve notes. For the carrying out of this function, as of many of its other functions, Congress has set up executive machinery. It has determined that the monetary functions be performed by the Treasury Department and the Federal Reserve System under the guidance of laws enacted by Congress. The Treasury Department, established at the beginning of our national existence, has among its many important functions the coinage of metal and the issuance of certain kinds of paper money, particularly United States notes and silver certificates. The Federal Reserve System, established about 25 years ago, has among its major functions the issuance of Federal Reserve notes. Prior to the establishment of the Federal Reserve banks the bulk of the paper currency in circulation consisted of National bank notes, which were issued by private commercial banks. The volume of National bank notes did not readily fluctuate with the country's need for currency; for this reason currency shortages were frequent, and occasionally banks had to suspend specie payments. Congress sought to remedy this situation by the Act of December 306 23, 1913, known as the Federal Reserve Act, entitled: "An Act To provide for the establishment of Federal Reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes." The Federal Reserve banks were thus created for public purposes. They are operated under the supervision of the Board of Governors of the Federal Reserve System, which was described in the Committee Report on the original Federal Reserve Act as "A strictly Government organization created for the purpose of inspecting existing banking institutions and of regulating relationships between Federal Reserve banks and between them and the Government itself." This Board consists of seven public officials appointed by the President of the United States with the advice and consent of the Senate. They are required to devote their entire time to the business of the Board and are forbidden by law to be officers, directors, or stockholders of any bank, banking institution, or trust company. Under the terms of the Federal Reserve Act, Federal Reserve notes are issued to the Federal Reserve banks by the Board of Governors through the Federal Reserve agents, who are appointed by the Board of Governors and act as its local representatives at the Federal Reserve banks. Before receiving such notes, each Federal Reserve bank must pledge with the Federal Reserve agent collateral of specified kinds, and in addition, the FEDERAL RESERVE BULLETIN Front the Board's Correspondence notes are secured by a first and paramount statutory lien on all of the assets of the issuing Federal Reserve banks. They are also obligations of the United States Government. Collateral back of Federal Reserve notes has at different times consisted of different assets, including a larger or smaller volume of gold or gold certificates, commercial paper, or United States Government securities. As required by law, this collateral has been equal at all times to at least 100 per cent of Federal Reserve notes outstanding, and the Reserve banks have maintained reserves of gold or gold certificates equal to at ~The least 40 per cent of Federal Reserve notes in circulation. As of March 27, 1940, Federal Reserve notes outstanding amounted to $5,237,827,000. Against these Federal Reserve notes the Federal Reserve banks had deposited $5,343,500,000 of gold certificates with the Federal Reserve agents. The Federal Reserve banks are not dependent for their earnings upon the note-issue privilege. On the contrary, the Federal Reserve banks incur an expense of more than $4,000,000 annually in having Federal Reserve notes printed and in supplying currency for circulation. £ank* ate Public UnStliution* "Are the Federal Reserve banks private institutions operated for profit?" The Federal Reserve banks were created by Act of Congress and are operated for public purposes and not for private profit. Each of the twelve Federal Reserve banks serves a definite geographical area known as a Federal Reserve district. Every national bank is required by law to be a member of the Federal Reserve System and to subscribe to the capital stock of the Federal Reserve bank of its district, and State banks are permitted to become members by subscribing to the capital stock and meeting the other conditions of membership. This stock is as much a required contribution to the capital of the Federal Reserve banks as an investment. The maximum amount that must be subscribed by each member bank is prescribed by law— i.e., 6 per cent of the member bank's capital and surplus. Only half of the amount subscribed has been called for, so that each member bank owns stock in its Federal Reserve bank in an amount equal to 3 per cent of its capital and surplus. This stock cannot be transferred or hypothecated. The member banks of each district elect six of the nine directors of each Federal Reserve bank and the Board of Governors of the Federal Reserve System appoints three, one of whom is designated as Chairman of the Board of Directors and official representative at the bank of the Board of Governors, and one as Deputy Chairman. In so far as APRIL 1940 operating matters of purely regional significance are concerned, the Boards of Directors of the Federal Reserve banks perform the usual functions of boards of directors, subject to supervision and in certain important matters to approval by the Board of Governors. National credit policies are determined by the Board of Governors and by the Federal Open Market Committee, which is made up of the seven members of the Board and five representatives of the Federal Reserve banks. The Federal Reserve banks are authorized to make loans to member banks and to purchase certain specified obligations, including those of the United States. The governing purpose with respect to the loans and investments of the Federal Reserve banks is to influence conditions in the money markets with a view to counteracting unsound developments and contributing to stable economic progress. The income of the Federal Reserve banks is incidental to the performance of these functions. Ordinarily the current income is sufficient to cover their expenses and that of the Board of Governors in Washington and to pay the statutory dividend of 6 per cent per annum. Earnings above expenses and dividends are added to surplus, which, in the event of liquidation of the Federal Reserve banks, would become the property of the United States. 307 (luttent Messrs. Eccles and Davis Under New Appointments as Members of the Board On March 5, 1940, Messrs. Eccles and Davis received their commissions as members of the Board of Governors of the Federal Reserve System for the remainder of the term of eight years from February 1, 1936, and the term of fourteen years from February 1,1940, respectively, and on March 8 they assumed their duties under the new appointments. Designation of Marriner S. Eccles as Chairman of the Board of Governors of the Federal Reserve System Federal Reserve System submitted to the Attorney General by a Committee on Administrative Procedure appointed by the Attorney General of the United States, and the statement was made that the Committee expected to release at an early date reports on administrative procedure of the Comptroller of the Currency and of the Federal Deposit Insurance Corporation. The Committee has now released for publication a monograph prepared by the staff of the Committee on administrative procedure of these two agencies. Meeting of Presidents' Conference The President of the United States issued an Executive Order on March 5, 1940, desig- The Presidents of all of the Federal Renating Marriner S. Eccles as Chairman of serve banks met in Washington on March the Board of Governors of the Federal Re- 19 for their first conference. serve System, to serve as such for a term of Meeting of the Federal Open Market Committee four years, effective February 1, 1940. The first meeting of the Federal Open Appointments at Federal Reserve Banks Market Committee this year was held in The Board of Governors on March 8, 1940, Washington on March 20, at which time Marannounced the appointment of R. C. Rich, riner S. Eccles was re-elected as Chairman President, R. C. Rich Sheep Company, Burley, of the Committee and George L. Harrison as Idaho, as a director of the Salt Lake City Vice Chairman. Branch of the Federal Reserve Bank of San The following representatives of the FedFrancisco for the unexpired portion of the eral Reserve banks had previously been two-year term ending December 31, 1940. elected to serve as members of the Committee On the same date the Board announced the for a period of one year beginning March 1, appointment of Raymond C. Force, Chairman 1940: John S. Sinclair, of the Executive Committee, Caterpillar Trac- RobertGeorge L. Harrison, Schaller, and WilS. Parker, George J. tor Company, Oakland, California, as a Class liam A. Day, Presidents of the Federal ReC director of the Federal Reserve Bank of serve Banks of New York, Philadelphia, AtSan Francisco for the unexpired portion of lanta, the three-year term ending December 31, tively. Chicago, and San Francisco, respec1941; and on March 13 announced that Mr. The other officers of the Committee are Force had been designated Chairman and Chester Morrill, Secretary; S. R. Carpenter, Federal Reserve Agent at the Bank for the Assistant Secretary; E. A. Goldenweiser, remainder of the current year. Economist; John On March 12 the Board announced that Economist; Walter H. Williams, Associate Roger B. Shepard, President, Finch, Van and J. P. Dreibelbis, Wyatt, General Counsel, Assistant General CounSlyck & McConville, St. Paul, Minnesota, had been appointed Deputy Chairman of the Fed- sel. The Federal Reserve Bank of New York eral Reserve Bank of Minneapolis for the re- was selected to execute transactions for the System open market account and the Bank mainder of the current year. has appointed R. G. Rouse, Vice President of Report on Comptroller of the Currency and Federal Deposit the Bank, as manager of the System account. Insurance Corporation Administrative Procedure The members of the executive committee of On page 204 of the Federal Reserve BUL- the Federal Open Market Committee are LETIN for March 1940, announcement was Marriner S. Eccles, Chairman; George L. made of the release for publication of a mono- Harrison, Vice Chairman; M. S. Szymczak, graph on administrative procedure of the Chester C. Davis, and John S. Sinclair. 308 FEDERAL RESERVE BULLETIN REPORT OF THE FEDERAL DEPOSIT INSURANCE CORPORATION AS OF D C M E 31, 1939 EE BR To Banks Insured by the Federal Deposit Insurance Corporation There follows a report by the Board of Directors of the Federal Deposit Insurance Corporation relating to the activities of the Corporation for the six months ended December 31, 1939, with additional information pertaining to operations during the twelve months ended on that date and during the entire period of operation of the Corporation. The report also includes a statement of assets and liabilities of the Corporation as of December 31, 1939, and an analysis of surplus for the six months ended on that date.1 the difference between total disbursements of $148,623,482.99 actually made or pending to depositors of closed insured banks in settlement of their claims and to merging banks or receivers of closed banks for loans and purchase of assets, including expenses incident thereto, and estimated recoveries of $111,900,011.57. Administrative expenses and other charges have amounted to $18,468,541.78. Closed Insured Banks During the six months ended December 31, 1939, 12 insured banks closed or received aid 33,941 depositors The income of the Corporation amounted from the Corporation. Thetotal deposits of in these banks, having to $25,439,457.98 for the six months ended $11,751,000, were protected to the extent of December 31, 1939, including assessments of $11,640,000, or about 99.1 per cent $20,856,274.29 paid by insured banks and claims, by insurance or otherwise. of their Only 25 interest earned of $4,583,183.69, after dedepositors in the suspended banks were not ducting provision for amortization of premiums. Expenses and losses during this fully protected. period amounted to $2,398,321.76, of which During the year ended December 31, 1939. $650,362.49 represented deposit insurance 60 insured banks, having 393,160 depositors, losses and expenses and $1,747,959.27 repre- all but 832 of whom were fully protected, sented administrative expenses and other closed or received aid from the Corporation. Total deposits in these 60 banks amounted to charges. Income for the year ended December 31, $157,775,000, of which $154,455,000, or 97.9 1939, amounted to $51,185,634.09 of which per cent, were protected against loss. $40,725,480.46 represented assessments paid From the beginning of deposit insurance by insured banks and $10,460,153.63 repre- to December 31,1939, 315 insured banks were sented interest earned, less provision for closed because of financial difficulties. Of amortization of premiums, and profits on these, three subsequently were reopened or securities sold. Total losses and expenses for taken over by other insured banks and 312, the year amounted to $20,748,296.41, includ- having 877,223 depositors, with total deposits ing deposit insurance losses and expenses of of $294,658,000, were liquidated or were $17,358,971.14, and administrative expenses merged with the aid of loans from the Corand other charges of $3,389,325.27. poration. Deposits amounting to $286,257,The surplus of the Corporation, resulting 000, or 97.4 per cent of the total deposits in from an excess of income over expenses and the 312 banks, were made available promptly losses during the entire period of operations without loss to depositors. Only 1,569 of the was $163,411,165.03, as of December 31,1939. 877,223 depositors, or less than one-quarter Total income from the beginning of deposit of 1 per cent, held accounts in excess of insurance has amounted to $218,603,178.23, $5,000 which were not fully protected by inincluding assessments of $164,897,721.07 surance, offset, preferment, pledge of securpaid by insured banks and $53,705,457.16 de- ity, or terms of the merger agreements. rived from interest earned and profits from sales of securities, after making provision Membership for amortization of premiums. Charges to surplus have amounted to $55,192,013.20. On December 31, 1939, there were 13,589 Net deposit insurance losses and expenses amounted to $36,723,471.42, resulting from operating banks insured by the Federal Deposit Insurance Corporation. For the year 1 ended on that date there was a decrease of Not reprinted herewith. Operations APRIL 1940 309 Report of The Federal Deposit Insurance 120 in the number of insured banks, resulting from the continued elimination of banks in unsatisfactory condition, from the chartering of few new banks, and from the conversion of banks into branches of other banks. There were 169 banks eliminated during the year: 32 by suspension; 21 by merger with the aid of loans from the Corporation; and 116 by merger, consolidation, or voluntary liquidation. There were 49 banks admitted to insurance, of which 21 banks were in operation or were successors to noninsured banks in operation at the beginning of the year and 28 banks first opened for business in 1939. As evidence of the continued cooperation of supervisory officials in chartering only banks that would be admitted to insurance, all but 3 banks of the 31 banks chartered and first opened for business in 1939 were insured on December 31; one of these three banks was admitted to insurance early in 1940 and applications from the other two are being considered by the Corporation. Almost complete agreement has been reached by supervisory authorities on the desirability of chartering only banks for which there appear substantial justification and reasonable prospect for profitable operation. This accord materially lessens the chance for loss as a result of the failure of unwarranted banks. Progress of Rehabilitation Program Corporation holiday. The Corporation has been able, during the past six years, not only to keep up with current developments that claimed its attention and its resources, but also to revitalize stagnant and hazardous banking situations in various sections of the country where rehabilitation without financial aid and without a definite program was a demonstrated impossibility. The greatest number of such cases occurred in agricultural sections of the country, while the dollar outlay was greatest in industrial areas of the Middle Atlantic region. Disbursement during 1939 of some $72,000,000 to protect the 393,000 depositors of 60 insured banks brought the program for rehabilitation of known problem banks near completion. The few such cases remaining on the Corporation's agenda should be corrected during the early months of 1940. It should not be deduced, however, that provision for these cases will end the Corporation's responsibility for constructive action. Only by preventing an accumulation in insured banks of unduly risky assets that would endanger the Corporation's resources can this agency or the banks that support it hope to assure the solvent and successful operation of Federal deposit insurance. The Corporation will continue to utilize all existing facilities to determine weaknesses in the banking system as they develop and to remedy hazardous situations. With bankers lies responsibility for operation of their institutions and management of their assets in such a way that deterioration of banks into the problem class can be kept at a minimum. By order of the Board of Directors, During the past year the Corporation made material progress on its program for weeding out the deadwood from the banking system. This is a continuing program, framed in the light of conditions in various sections of the country and designed both to care for occaLEO T. sional emergencies that result from local or regional developments and to- rehabilitate or WASHINGTON, D. C. eliminate insured banks that have been operating under difficulties since the banking February 5, 19^0. 310 CROWLEY, Chairman. FEDERAL RESERVE BULLETIN A/ational Summ&tif ofi f2u.5ln.Q55 &ondition5 Compiled March 16 and released for publication March 19. Later developments 273-278 of this BULLETIN are discussed on pages I NDUSTRIAL activity showed a further cars were in large volume for this time of sharp decline in February and a less the year. In the first half of March output marked reduction in the first half of March. of automobiles showed less than the cusWholesale commodity prices generally were tomary sharp increase. In some industries steady, following some decline in January and not included directly in the Board's production index, particularly the machinery, airearly February. craft, and rayon industries, activity conProduction tinued at high levels. In February the Board's seasonally ad- Changes in output of nondurable goods justed index of industrial production was were largely seasonal in February except at 109 per cent of the 1923-1925 average as com- textile mills and sugar refineries. At cotton pared with 119 in January and 128 in De-textile mills activity declined somewhat from cember. A further decline at a slower rate the high levels prevailing since early last is indicated for March on the basis of data autumn. Activity at woolen mills, which had now available. In August 1939, the month decreased considerably in December and Janprior to the outbreak of war, the index was uary, declined further in February and output of silk products was reduced to an ex103. ceptionally low level. Sugar refining showed INDUSTRIAL PRODUCTION POINTS IN TOTAL INDEX POINTS IN TOTAL INDEX less than the sharp rise usual at this season. 140 Mineral production declined in February, owing chiefly to a considerable reduction in output of anthracite. Bituminous coal production declined somewhat, following a rise in January, while output of crude petroleum increased to new high levels. Value of construction contract awards in February showed little change from the 40 January total, reflecting a further decrease in contracts for public construction and a 20 contraseasonal increase in private contracts, according to figures of the F. W. Dodge Cort934 1935 1936 1937 1938 1939 1940 Index of physical volume of production, adjusted for seasonal poration. The increase in private residential awards nearly equalled the decline that ocvariation, 1923-1925 average = 100. in the previous Steel production, which had risen sharply curred curtailed buildingmonth when severe storms operations in many in the latter part of 1939 and then decreased areas. considerably in January, showed a further Distribution marked reduction in February to 69 per cent Retail distribution of general merchandise of capacity. In the first half of March output was steady at a rate of about 65 per cent. showed little change from January to FebPlate glass production declined further in ruary and remained somewhat below the high February and output of lumber, which had level of the latter part of last year, with due dropped sharply in January, showed less than allowance for seasonal changes. Sales at the usual seasonal rise. Automobile produc- variety stores and mail-order houses showed tion in February was maintained at the high about the usual seasonal rise in February, level prevailing in January. Dealers' stocks while at department stores, where some inof new cars rose to high levels in this period, crease is also usual at this time of year, sales notwithstanding the fact that retail sales of remained at about the January level. 140 APRIL 1940 311 National Summary of Business Conditions WHOLESALE FREIGHT CAR LOADINGS POINTS W TOTAL INDEX 100 | 1 POINTS I N TOTAL INDEX 1 1 1 1 1 MOO PRICES PER CENT PER CENT 110 110 100 100 90 90 80 60 60 40 40 80 V 80 70 70 60 20 50 1934 1935 1937 1938 1934 1940 1935 1936 1937 1938 1939 1940 Index of total loadings of revenue freight, adjusted for seasonal Index compiled by the United States Bureau of Labor Statistics, variation, 1923-1925 average = 100. 1926 = 100. By weeks, 1934 to week ending March 20, 1940. Freight-car loadings declined considerably from January to February, reflecting for the most part a sharp reduction in coal shipments and some further decrease in loadings of miscellaneous freight. bonds increased sharply after the announcement by the Treasury early in March that its operations during that month would be limited to the issuance of a five-year note to refund a note maturing next June. Foreign Trade Exports of United States merchandise in February declined less than seasonally from the high levels reached in December and January. The principal decreases were in shipments of cotton, copper, and aircraft, which had been exceptionally large in previous months. Exports to Japan fell sharply and there were declines also in shipments to the United Kingdom, the Netherlands, and Russia, while exports to Belgium and the Scandinavian countries increased. There has been little change in the rate of gold inflow. The monetary gold stock increased by $246,000,000 in February and by $109,000,000 in the first two weeks of March. Commodity Prices Prices of nonferrous metals advanced from the middle of February to the middle of March, while steel scrap and textile materials declined somewhat further. Most other commodities showed little change and in the week ending March 9 the general index of the Bureau of Labor Statistics was at 78.3 per cent of the 1926 average as compared with 78.5 a month earlier. Bank Credit Total loans and investments at reporting member banks in 101 leading cities rose during the six weeks ending March 13, largely MONEY RATES IN NEW YORK CITY PER CENT PER BENT 4 3 2 4 AJVs, TREASl JRY ,u IV V 1 • BONDS k ^ RESERVE BAN K DISCOUNT RAT L 1 ^ VjM. ... J K Z J "\ k TREASl /RY NOTES (3-! YEAR8) TREASURY BILLS 3 f\A (NEW ISSUES) f 1 K \ o 0 1934 1935 1936 1937 1938 1939 1940 Minimum rate on rediscounts for and advances to member banks by Federal Reserve bank; weekly averages of daily yields of 3- to 5-year Treasury notes and Treasury bonds callable after 12 years, and average discount on new issues of 91-day Treasury bills offered within week. For weeks ending January 6, 1934, to March 16, 1940. as a result of increases in investments at New York City banks. Following a reduction during January, commercial loans increased, Government Security Market mostly at banks in cities outside New York. Following a relatively steady market dur- Bank reserves and deposits continued to ining February, prices of long-term Treasury crease during the period. 312 FEDERAL RESERVE BULLETIN FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES PAGE Member bank reserves, Reserve bank credit, and related items Federal Reserve bank discount rates; rates on time deposits, reserve requirements. Federal Reserve bank statistics Reserve position of member banks; deposits in larger and smaller centers Money in circulation Gold stock and gold movements; bank suspensions; bank debits All banks in the United States, number, deposits, loans and investments Condition of all member banks Weekly reporting member banks Commercial paper, bankers' acceptances, and brokers' balances Money rates and bond yields Security markets Treasury finance Governmental corporations and credit agencies; Postal Savings System Production, employment, and trade Wholesale prices .. Statistics for Federal Reserve chart book . Number of banks and branches in United States, 1933-1939 315 316 317-321 322 323 324 325 326-327 328-331 332 333 334 335-336 337-338 339-347 348 349-350 350 Tables on the following pages include the principal available statistics of current significance relating to financial and business developments in the United States. The data relating to the Federal Reserve banks and the member banks of the Federal Reserve System are derived from regular reports made to the Board; index numbers of production are compiled by the Board on the basis of material collected by other agencies; figures for gold stock, money in circulation, Treasury finance, and operations of Government credit agencies are obtained principally from statements of the Treasury or of the agencies concerned; data on money and security markets and commodity prices and other series on business activity are obtained largely from other sources. Back figures may in most cases be obtained from earlier BULLETINS and from Annual Reports of the Board of Governors for 1937 and earlier years. Current figures compiled by the Board are generally released prior to publication in the BULLETIN and .press statements will be sent without charge to those wishing them. For a list of current releases see FEDERAL RESERVE PUBLICATIONS at the back of this BULLETIN. APRIL 1940 313 MEMBER BANK RESERVES AND RELATED ITEMS WEDNESDAY BILLIONS OF DOLLARS FIGURES BILLIONS OF DOLLARS TREASURY DEPOSITS ATF.R. BANKS MEMBER BANK RESERVE BALANCES 1934 1935 1936 1937 1938 1939 1940 Latest figures for March 20. See page 315. 314 FEDERAL RESERVE BULLETIN MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Reserve bank credit outstanding U.S. Gov- Other Bills Bills ern- Reserve disbought ment bank counted securi- credit 1 ties Date Monthly averages of daily figures: 1938—Dec 1939—Jan Feb Dec 1940—Jan Feb End of month figures 1938—Dec. 31.... 1939—Jan. 31.... Feb. 28____ Dec. 30.... 1940—Jan. 31. _„ Feb. 29..... Wednesday figures: 1939—May 3 May 10.... May 17.... May 24.... May 3 1 . . . . 2,564 2,568 2,567 2,510 2,479 2,477 Member bank Gold stock Total Treasreserve balances ury Treas- Treasury Non- Other deposits cur- Monej ury Federal in cir- cash with memrency culaFederal outhold- Reserve ber deacposits counts stand- tion ings Total Excess* banks ing 2,618 2,598 2,594 2,612 2,542 2,546 14,416 14, 599 14, 778 17, 518 17,804 18,061 2,783 2,807 2,820 2,956 2,966 2,976 6,712 6,697 7,609 7,443 7,426 2,673 2,726 2,758 2,402 2,361 2,361 723 827 1,055 616 584 600 526 454 502 739 689 732 2,601 2,607 2,598 2,593 2,503 2,547 14, 512 14,682 14,874 17,644 17,931 18,177 2,798 2,816 2,824 2,963 2,971 2,981 6,856 6,653 6,731 7,598 7,376 7,455 2,706 2,776 2,740 2,409 2,359 2,372 923 747 1,148 634 549 562 441 458 2,564 2,564 2,564 2,564 2,564 2,572 2,575 2,576 2,576 2,573 15,801 15,856 15,892 15,927 15, 957 2,851 2,854 2,857 2,859 2,862 6,915 6,904 6,913 2,691 2, 678 6,967 2,646 2,636 936 959 927 915 920 2,564 2,574 2,564 2,484 2,477 2,477 28 30 102 18 63 257 255 248 250 249 8,745 9,029 8,925 11,473 11,985 12, 215 3,226 3,484 3,373 5,011 5,464 5,626 8,724 9,215 260 255 254 251 248 247 11, 653 12,150 12,328 3,205 3,644 5,387 5,209 5,559 5,692 554 521 543 558 255 255 255 254 253 9,872 9,967 10,005 10,097 10,029 4,084 4,186 4,244 4,304 4,218 723 740 June June June June 7 14 21 28 2,564 2,564 2,564 2,551 2,576 2,605 2,584 2,567 15,987 16,027 16,060 16,093 2,864 2,868 2,873 2,879 2,571 2,570 2,566 2,559 935 928 941 962 630 714 714 677 253 253 263 263 10,053 6,936 6,934 6,962 10,101 10,099 10,116 4,279 4,264 4,227 4,243 July July July July 5. 12 19 26 2,551 2,535 2,515 2,488 2,569 2,569 2,537 2,512 16,136 16,174 2,880 2,885 2,890 7,100 7,041 7,022 7,002 2,577 2,552 2,530 2,506 820 791 764 742 678 638 634 257 257 257 257 10,151 10,350 10,412 10,436 4,292 4,447 4,485 4,485 Aug. 2 . . . . . Aug. 9 Aug. 16.... Aug. 2 3 . . . . Aug. 30.... 2,453 2,443 2,423 2,423 2,426 2,476 2,462 2,453 2,441 2,448 16, 248 16,270 16,335 16, 501 16,638 2,895 2,897 2,900 2,903 2,905 7,054 7,070 7,091 7,098 7,141 2,370 2,354 2,366 2,334 2,327 863 844 776 724 709 597 565 604 257 256 256 256 255 10,413 10, 509 10,633 10.829 10,951 4,462 4,533 4,590 4,741 4,799 Sept. Sept. Sept. Sept. 2,594 2,824 2,826 2,804 2,643 2,873 2,883 2,846 16, 726 16,808 16,902 16,925 2,908 2,911 2,915 2,914 7,261 7,235 7,236 7,238 2,264 2,227 2,272 2,260 676 615 619 552 755 781 771 247 234 242 242 11,141 11,526 11, 549 11,621 4,969 5,271 5,275 5,332 Oct. 4 Oct. 11 Oct. 18 Oct. 25 2,785 2,765 2,748 2,736 2,837 2,810 2,817 2,771 16,958 16,973 16.997 17,039 2,920 2,924 2,927 2,929 7,309 7,346 7, 330 7,302 2,250 2,238 2,216 2,230 469 404 349 326 776 742 698 692 239 238 241 240 11,672 11, 739 11,907 11,950 5,359 5,399 5,509 5,534 Nov. Nov. Nov. Nov. Nov. 1 8 15 22.... 29 2,721 2,687 2,649 2,593 2,552 38 28 60 44 45 2,765 2,721 2,715 2,645 2,605 17,099 17,132 17,235 17, 257 17, 347 2,932 2,935 2,939 2,942 2,947 7,352 7,409 7,384 7,434 7,462 2,250 2,263 2,341 2,357 2,359 349 348 564 466 441 790 779 772 727 776 241 241 241 241 241 11,814 11,749 11,587 11, 619 11, 620 5,376 5,354 5,166 5,171 5,135 Dec. Dec. Dec. Dec. 6 13 20 27 2,512 2,512 2,496 2,489 47 23 140 71 2,568 2,543 2,645 2,568 17,408 17, 464 17, 576 17, 620 2,949 2,954 2,959 2,963 7,545 7,564 7,679 7,663 2,391 2,398 2,411 2,417 346 753 694 646 785 719 765 678 241 240 253 255 11,617 11,288 11,378 11,493 5,154 4,849 4,900 5,046 1940—Jan. 3 Jan.10 Jan. 17 Jan. 24 Jan. 31 2,484 2,477 2,477 2,477 2,477 73 20 31 30 18 2,564 2,504 2,515 2,514 2,503 17,697 17, 747 17,805 17, 879 17, 931 2,963 2,965 2,968 2,969 2,971 7,581 7,463 7,405 7,365 7,376 2,367 2,341 2,361 2,381 2,358 651 655 575 507 549 653 677 678 713 723 251 250 250 249 248 11,721 11.830 12,020 12,148 12,150 5,271 5,377 5,502 5,592 5,559 7 14 21 28 2,477 2,477 2,477 2,477 33 46 40 54 2,518 2,530 2,523 2,537 17.998 18,063 18,108 18,166 2,973 2,977 2,977 7,403 7,411 7,450 7,439 2,365 2,385 2,358 2,374 632 642 743 733 716 744 249 249 248 248 12,097 12,151 12, 241 12, 318 5,523 5,580 5,629 5,689 Mar. 6 Mar. 1 3 . . . . Mar. 2 0 . . . . 2,477 2,477 2,475 35 44 42 2,515 2,524 2,520 18, 220 18, 282 18,360 2,984 2, 985 2,989 7,481 7,463 7,484 2,358 2,362 2,374 536 526 707 731 754 791 246 247 256 12,367 12, 439 12,256 5,733 5,777 5,594 Feb. Feb. Feb. Feb. 6 13 20___. 27.... 16,191 16, 227 1 Includes industrial advances. * End of month and Wednesday figures estimated. NOTE.—For description of figures in this table and discussion of their significance, see BULLETIN for July 1935, pp. 419-429. Reprints of article together with available back figures, may be obtained upon request from Division of Research and Statistics. Back figures are also shown in Annual Report for 1937 (tables 3 and 4) and for excess reserves in BULLETIN for August 1935, pp. 499-500. APRIL 1940 315 FEDERAL RESERVE BANK DISCOUNT RATES [Per cent per annum] Rediscounts and advances under sections 13 and 13a of the Federal Reserve Act except last paragraph of Section 13 Federal Reserve bank Secured by direct and eligible guaranteed obligations of the U. S. Rate March Boston _. New York..... Philadelphia.. Cleveland Richmond Atlanta Chicago 8t. Louis Minneapolis.. Kansas City.. Dallas... San Francisco In effect beginning- Advances under Section 10 (b) of the Federal Reserve Act All other In effect beginning- Rate March 29 Sept. 1, 1939 Aug. 27, 1937 Sept. 4, 1937 May 11, 1935 Aug. 27, 1937 Sept. 16, 1939 Sept. 1, 1939 Sept. 21, 1939 Aug. 24, 1937 Sept. 16, 1939 Sept. 16, 1939 Sept. 3, 1937 Advances secured by direct obligations of the United States (last paragraph of Section 13 of the Federal Reserve Act) To banks Rate March 29 Sept. 1, 1939 Aug. 27, 1937 Sept. 4, 1937 M a y 11, 1935 Aug. 27, 1937 Aug. 21, 1937 Aug. 21, 1937 Sept. 2, 1937 Aug. 24, 1937 Sept. 3, 1937 Aug. 31, 1937 Sept. 3, 1937 In effect beginning- Rate March 29 To others In effect beginning- Rate March 29 Sept. 1, 1939 Aug. 25, 1939 Sept. 1, 1939 Sept. 1, 1939 Sept. 1, 1939 Sept. 16, 1939 Sept. 1, 1939 Sept. 16, 1939 Sept. 1, 1939 Sept. 16, 1939 Sept. 16, 1939 Sept. 1, 1939 Sept. 2,1937 Oct. 10, 1935 Sept. 4, 1937 Oct. 19, 1935 Sept. 10, 1937 Aug. 21, 1937 Aug. 21, 1937 Sept. 2, 1937 Aug. 24, 1937 Sept. 3, 1937 Aug. 31, 1937 Sept. 17, 1937 4 3 2M 2H In effect beginningApr. 29, 1938 Feb. 8, 1934 Sept. 1, 1939 M a y 11, 1935 Feb. 19,1934 Apr. 23, 1938 Oct. 16, 1933 Feb. 23, 1935 Oct. 8, 1938 Apr. 16, 1938 Apr. 16, 1938 Oct. 19, 1933 * 2J4 per cent to lenders other than banks. NOTE.—Rates applicable to United States Government securities' repurchase agreements are as follows: New York, 1 per cent; Cleveland, Kansas City, and Dallas, \% per cent. Back figures.—See Annual Report for 1937 (table 40). FEDERAL RESERVE BANK BUYING RATES ON ACCEPTANCES FEDERAL RESERVE BANK RATES ON INDUSTRIAL ADVANCES [Per cent per annum] Rates in effect March 29, 1940, on advances and commitments under Sec. 13b of the Federal Reserve Act. [Per cent per annum except as indicated by footnotefl Rate in effect on In effect beMarch 29 ginning— Maturity 1-15 days 1.16-30 days... 31-45 days... 46-60 days... 61-90 days... 91-120 days.. 121-180 days Previous rate Oct. 20, 1933 ...do ...do —do ...do ...do ...do Federal Reserve bank Advances to financing institutions— Advances direct to Commitindustrial On porments or comtion for to make On re- advances mercial or- which ganizations institu- maining portion tion is obligated Boston New York.... Philadelphia.. Cleveland 4-6 4-6 Richmond Atlanta Chicago St. Louis 6 5-6 5-6 Minneapolis.. Kansas City.. Dallas San Francisco i This rate also applies to acceptances bought under repurchase, agreements, which agreements are always for a period of 15 days or less. NOTE.—Minimum buying rates at the Federal Reserve Bank of New York on prime bankers' acceptances payable in dollars; higher rates may be charged for other classes of bills. The same minimum rates apply to purchases, if any, made by other Federal Reserve banks. Back figures.—See Annual Report for 1937 (table 41). 6 4-6 5-6 5-6 4-5 4 0) 4-6 5 4 3-4 5-6 4r-5 1-2 4-6 5 5-6 4 x-1 K3) 1 Authorized rate 1 per cent above prevailing discount rate. Same as to borrower but not less than 4 per cent. 3 Minimum charge one-half of one per cent. Back figures.—See Annual Report for 1937 (table 40). 2 MAXIMUM RATES ON TIME DEPOSITS Maximum rates that may be paid by member banks as established by the Board of Governors under provisions of Regulation Q. [Per cent per annum] Nov. 1, 1933 Feb. 1,1935 to to Jan. 31, 1935 Dec. 31,1935 Savings deposits Postal Savings deposits Other time deposits payable in: 6 months or more 90 days to 6 months Less than 90 days In effect beginning Jan. 1, 1936 MEMBER BANK RESERVE REQUIREMENTS [Per cent of deposits] Classes of deposits and banks On net demand deposits: i Central reserve city.. Reserve city Country June 21, Aug. 16, Mar. 1, May 1, Apr. 16, 19171937193819361937Aug. 15, Feb. 28, Apr. 30, Apr. 15, and 1936 1937 1938 after 1937 13 10 7 15 17Vs* 12K 26 20 14 NOTE.—Maximum rates that may be paid by insured nonmember banks as established by the Federal Deposit Insurance Corporation, On time deposits:n k s . . . All member b a 6 3 6 effective February 1, 1936, are the same as those in effect for member banks. In some States the maximum rates established by the Board 1 and the Federal Deposit Insurance Corporation are superseded by See footnote to table on p. 322 for explanation of method of comlower maximum rates established by State authority. puting net demand deposits. 316 FEDERAL RESERVE BULLETIN PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures End of month M a r . 20 M a r . 13 Mar. 6 1939 1940 1940 F e b . 28 F e b . 14 F e b . 21 Feb. 7 Feb. Jan. Feb. Assets Gold certificates on hand and due from U. S. Treasury :,722 15, 997,622 15,932, 621 15,868,621 15,793,621 15,739,122 15,674,618 15, 619,619 15,803,620 15, 552,120 12,114, Redemption fund—F. R. notes 9,335 10,118 9,753 9,; 9,572 9,574 10,118 8,334 10, 260 Other cash 413,222 384,791 387, 624 367,646 356,186 367,455 361,786 Total reserves.. 16,367,742 16,304,519 16,234,379 16,170,650 16,118,050 16,069,527 16,017,361 16,180,839 15,974,677 12,561,245 Bills discounted: For member banks For nonmember banks, etc... 979 2,010 Total bills discounted 967 2,010 1,169 5,510 1,4,510 1,593 5,030 1,754 5,030 1,385 5,510 2,977 956 1,010 6,679 6,079 6,623 6,784 6,895 10,404 10, 704 10,427 10,434 10,485 10,701 1,916 5,030 4,201 4,201 Bills bought: Payable in foreign currencies 553 Industrial advances.. U. S. Government securities, direct and guaranteed: Bonds Notes Bills 840,893 1,342,045 1, 344,045 1,344,045 1,344,045 1,344,045 1,344,045 1,344,045 1, 344,045 1,344,045 1,133, 225 1,133,225 1,133,225 1,133,225 1,133,225 1,133, 225 1,133,225 1,133, 225 1,133, 225 1,215,466 507,656 Total U. S. Government securities, direct and guaranteed Other Reserve bank credit 2,475, 270 2,477, 270 2,477,270 2,477, 270 2,477,270 2,477,270 2,477,270 2,477,270 2,477,270 2, 564,015 8,414 14, 513 33,769 42, 692 51, 781 32,446 24,689 29, 636 36,122 23,183 Total Reserve bank credit outstanding 2, 520,180 2, 524,451 2, 515, 340 2, 537, 345 2, 523,412 2, 530,449 2, 517, 722 2, 546,647 2, 503,003 2, 597,888 10,498 10,423 10,373 14,606 Liabilities F. R. notes in actual circulation.. 4,895,048 4,881,754 4,889, 287 4,858,677 4,860, 778 4,846,468 4,836, 768 4,872,238 4,832,101 4,353, 291 Deposits: Member bank—reserve account._. 12,256, 250 12,438, 580 12, 367,086 12, 317, 794 12,240, \, 1,683 12,150, 709 12,096, 727 12, 328,164 12,149, 576 8,935, 923 U. S. Treasurer—general account.. 526, 387 561,406 595,990 642,138 631,565 562,475 549,441 1,147, 566 707, 493 535,988 245,647 Foreign bank 364,406 380,844 361,381 392,526 388,173 365,686 407,313 390, 780 353, 533 241,976 389,876 Other deposits 1 363,381 354,865 340,677 354,408 373,980 315,284 399, 786 377,032 Total deposits.. 13, 754,309 13, 719, 249 13,633, 639 13,623,425 13, 552,919 13, 526,050 13,470,873 13,630,305 13,421,614 10, 571,112 Ratio of total reserves to deposit and F. R. note liabilities combined (per cent; 87.8 87.7 87.6 87.5 87.5 87.5 87.5 87.5 87.5 84.2 MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollars] Total Bills discounted: F e b . 28 6,679 Mar. 6 _ 2,977 Mar. 13 2,989 Mar. 20 1,966 Industrial advances: F e b . 28 10,704 Mar. 6 10,404 Mar. 13 10,423 Mar. 20 10,498 U. S. Government securities, direct and guaranteed: 2,477,270 F e b . 28 ____ 2,477,270 Mar. 6 . . _ Mar. 13 _ _ 2,477,270 Mar. 20 2,475, 270 APRIL 1940 6 months 1 year 31 to 60 61 to 90 91 days to to to 6 days days 1 year 2 years months 2 years to 5 years Within 15 days 16 to 30 days 3,995 1,468 1,349 412 1,191 45 176 125 226 181 155 161 1,119 1,126 1,116 1,108 86 91 129 106 62 66 64 54 1,587 1,493 1,453 1,592 59 415 381 130 491 339 353 249 283 157 181 299 1,730 1,728 1,730 1,743 2,240 1,983 1,955 1,864 2,142 2,125 1,969 2,109 2,172 2,164 2,401 2,512 136,783 136,783 136,783 105,974 105,974 105,974 224,796 281,368 281,368 281,368 248,417 684,796 684, 796 684,796 735,708 Over 5 years 1,268,349 1,268,349 1, 268,349 1,266,349 317 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total Assets Gold certificates on hand and due from U. S. Treasury: Feb. 14 Feb. 21 Feb. 28 Mar. 6_._ Mar. 13 Mar. 20 Redemption fund — Federal Reserve notes: Feb. 14 Feb. 21 Feb. 28 — Mar. 6 Mar. 13 Mar. 20 Other cash: Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 Total reserves: Feb. 14... _ Feb. 21 Feb. 28 Mar. 6..-. Mar. 1 3 . Mar. 20 Bills discounted: Secured by U. S. Government obligations, direct and guaranteed: Feb. 14... Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 Other bills discounted: Feb. 14 Feb. 21 Feb. 28 Mar. 6... Mar. 13 Mar. 20 Total bills discounted: Feb. 14 . Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 Industrial advances: Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 U. S. Government securities, direct and guaranteed: Bonds: Feb. 14 .._. Feb. 21 Feb. 28.. Mar. 6 Mar. 13 Mar. 20 Notes: Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20... Total U. S. Government securities, direct and guaranteed: Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 318 15, 674,618 15, 739,122 15,793,621 15,868, 621 15,932, 621 15, 997,622 Boston New York 899, 621 7, 690, 962 880; 002 7,826, 513 864,532 7,922,859 7, 878,990 7,956,005 7, 7,914, 531 900, 1,816 7, 7,932,407 909, 1,456 7, Philadelphia MinCleve- Rich- At- Chicago St. neap- Kansas land mond lanta Louis olis City Dallas San Francisco 834,449 831,852 832,614 831,127 852,693 875, 221 977,541412,115 305,990 , 445,359 430, 760 671 351,234 233,168 242, 984,944 408, 777 ; 400,682 426, 739 244,065 351,172 244,065 , 226,929 975,698 407, 295,254 395,122 427,316 248,029 342,977 224,766 7,893 230, 227 2,723 306,482 407,278 408,223 248, 703 353,601 991, 934 412, 723 992,308 420,834 314, 582 2,407, 559 393,.634 267, 699 365,880 235,987 T" , 999; 168 425, 762 309,9952,414,095 388, 326 269,408 359,179 236, 541 850, 748 858, 748 851,100 10,118 9,430 9,574 9,572 9,360 8,334 721 667 648 647 584 536 1,798 1,591 1,540 1,540 1,346 1,155 743 650 631 631 527 527 541 471 934 384,791 369,498 367,455 356,186 33, 746 30, 692 30,420 29, 768 31,339 31,184 91,509 31,077 27,916 28,619 28, 751 29, 582 28,110 362, 538 361,786 16,069,527 16,118,050 16,170,650 16,234,379 16,304,519 16, 367, 742 455 741 512 470 369 334 878,064 411 396 377 377 361 348 320 309 302 302 290 290 1,216 1,193 1,117 1,117 1,089 1,069 9,568 18,955 20,545 19, 220 9,528 18, 546 9,360 17, 798 9,866 20,156 16,243 15,000 14, 723 13, 771 15,72£ 14, 610 41,877 37, 903 38,087 36,354 36, 934 36,441 934,088 7, 784,269 866, 269 1,005,483 436, 787 328,476 , 499,442 448,125 252,416 370,600 249, 731 ' , , 911,3617, 916, 593 860, 418 1, , , 1,684 2,450,980 444, ', :,050 253,961 372,113 242,238 895, 600 \ 015,090 861,864 ,014,648 433,160 320 630 2,447,170 444,357 258,058 362, 574245,252 8, i, 909,405 8,047> ,366 860,509 1,003,451 , ,650 "1,454,411 423, 726 258,892 372, 524 238,839 932, 739 8,009, 243 882,802 1,018, 674 436,123 327, ! 457,861 , 409, 319 277, 706 384,039 252,006 732 2, 941,176 8,023,903 903,858 1,018,602 442, 346 333,600 2,462,403 405, 247 279, 916 379; 683 251,441 " " 1,025,312 448,629 330, 893,841 897,844 890,304 886, 260 904,121 915, 574 90,691 89,821 93,366 90,341 800 1,350 775 768 768 1,177 604 867 833 783 782 752 722 1,277 1,199 1,149 1,149 1,076 1,007 697 678 664 664 648 634 27,401 29, 233 26,819 25,806 25,434 25,344 23,322 23, 608 21, 639 22,632 20,335 22, 263 21,619 21,152 20, 593 20,386 52,806 49,099 50,899 45,984 49, 226 47,301 16, 668 16, 633 16, 377 14,839 15,037 16,287 19,883 177 668 661 661 650 642 130 475 190 145 105 35 85 70 60 60 55 45 13 13 13 13 13 13 31 22 21 41 35 15 10 10 35 10 10 50 2,226 2,406 854 879 477 45 70 25 55 558 526 604 252 250 141 538 484 575 238 233 135 301 278 267 86 163 121 281 250 235 112 122 87 567 687 263 263 141 188 172 200 79 79 89 147 111 133 56 44 22 291 260 270 122 132 137 689 626 763 322 317 195 188 172 200 79 79 329 332 331 330 338 336 10 802 801 800 800 24 24 4 4 14 43 43 23 43 43 28 579 439 418 263 199 136 180 164 193 106 177 146 415 378 449 198 211 137 192 136 158 81 69 47 579 439 418 263 199 136 219 188 217 110 181 160 458 421 472 241 254 165 189 189 189 186 183 183 120 119 119 119 118 118 483 483 483 482 481 480 45 25 25 25 25 25 6,168 5,338 6,167 2,507 2,620 1,632 125 6,623 6,079 6,679 2,977 2,989 1,""" 125 45 70 25 55 2,356 2,444 2,596 999 984 512 643 596 664 312 305 186 551 497 588 251 246 148 332 300 288 127 198 136 10,434 10,427 10,704 10,404 10,423 10,498 1,424 1,420 1,408 1,406 1,412 1,411 2,050 2,050 2,050 2,049 2,048 2,048 3,107 3,102 3,401 3,097 3,107 3,211 299 300 301 318 326 316 933 931 925 925 919 1,344,045 1,344,045 1,344,045 1,344,045 1,344,045 1,342,045 96,123 96,123 96,123 96,123 96,123 95, 983 408,181 408,181 408,181 408,181 408,181 407,496 110, 221 110,221 110,221 110, 221 110,221 110,049 137,084 137,084 137,084 137,084 137,084 136,881 68,135 68,135 68,135 68,135 68,135 68,047 54,495 54, 495 54,495 54,495 54,495 54,420 144,872 144,872 144,872 144,872 144,872 144,666 60, 273 60,273 60,273 60,273 60,273 60,199 39, 771 39, 771 39, 771 39, 771 39,771 39, 720 62, 897 62,897 62, 897 62,897 62,897 62,820 51,196 51,196 51,196 51,196 51,196 51,129 110, 797 110, 797 110,797 110, 797 110, 797 110,635 1,133,225 1,133,225 1,133,225 1,133, 225 1,133,225 1,133, 225 81,047 81,047 81,047 81,047 81,047 81,049 344,156 344,156 344,156 344,156 344,156 344,089 92,934 92, 934 92,934 92, 934 92, 934 92,927 115, 581 115, 581 115, 581 115, 581 115, 581 115, 581 57,447 57, 447 57,447 57,447 57,447 57,459 45,945 45, 945 45,945 45, 945 45, 945 45,952 122,148 122,148 122,148 122,148 122,148 122,156 50,818 50, 818 50,818 50,818 50,818 50,832 33, 533 33, 533 33, 533 33, 533 33, 533 33, 541 53,031 53,031 53,031 53,031 53,031 53,044 43,167 43,167 43,167 43,167 43,167 43,173 93,418 93,418 93,418 93,418 93,418 93,422 2,477,270 2,477,270 2,477,270 2,477,270 2,477,270 2,475, 270 177,170 752,337 177,170 752,337 177,170 752,337 177,170 752,337 177,170 752, 337 177,032 751, 585 203,155 252,665 125, 582 100,440 203,155 252,665 125, 582 100,440 203,155 252,665 125, 582 100,440 203,155 252,665 125,582 100,440 203,155 252,665 125, 582 100,440 202,976 252,462 125, 506 100, 372 267,020 111,091 73, 304 115,928 267,020 111,091 73,304 115, 928 267,020 111,091 73,304 115,928 267,020 111,091 73, 304 115,928 267,020 111,091 73, 304 115,928 266,822 111 ,031 261 115,864 73, ' 691 94,363 204,215 94,363 204,215 94,363 204,215 94,363 204, 215 94,363 204,215 94,302 204,057 FEDERAL RESERVE BULLETIN Federal Reserve Banks—Continued [In thousands of dollars] Total Assets—Continued Total bills and securities: Feb. 14 Feb. 21 _ _.. Feb. 28 _.Mar. 6 Mar. 13 .. Mar. 20 Due from foreign banks: Feb. 14 Feb. 21.. Feb. 28 Mar. 6 Mar. 13 Mar. 20 Federal Reserve notes of other banks: Feb. 14 Feb. 21. Feb. 28 Mar. 6 Mar. 13 Mar. 20 Uncollected items: Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 _ Bank premises: Feb. 14 Feb. 21 __ Feb. 28 Mar. 6 Mar. 13 Mar. 20 Other assets: Feb. 14 Feb. 21 Feb. 28 Mar. 6 _ Mar. 13 ____ ... Mar. 20 Total assets: Feb. 14 __ Feb. 21 Feb. 28 _. — Mar. 6 Mar. 13 Mar. 20 _._ 2,494, 327 2,493, 776 2,494,653 2,490,651 2,490,682 2,487,734 MinCleve- Rich- At- Chicago St. neap- Kansas Louis olis City Dallas land mond lanta 178,719 178, 590 178,623 178,646 178,607 178,498 47 47 4 47 47 41 York New Philadelphia 756,743 756,831 756,983 755,385 755,369 754,145 206,905 206, 853 207,220 206, 564 206, 567 206,373 18 18 18 18 18 18 Boston 5 5 5 5 5 5 253, 515 126,847 101, 526 253,462 126,813 101, 506 253,554 126,795 101,512 253,234 126,634 101,363 253,237: 126,699 101,372 252,926 126, 551 101,309 111, 289 73,685 116,627 95,065 267,978 111, 263 73,629 116,486 95,034 268,114 111, 291 73,651 "" •" 95,063 116,465 " ,672 267,6 111,170 73, 571 116,310 94,955 ,675 267,6 111, 170 73, 556 116, 245 95,025 , 267,3 353 111, 12073,491 116,118 94,942 San Francisco 205, 368 205,331 205,382 205,147 205,160 204,908 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 671 574 519 741 696 450 2,362 2,349 2,301 2,068 1,722 1,290 ', 4 4 4 4 4 4 21, 273 20,003 21, 582 19,935 18,484 17,604 587 596 540 558 54' 545 3,026 1,749 3,299 1,981 1,102 1,325 583 853 988 828 950 887 1,417 1,393 1,222 1,405 1,549 1,408 3,664 2,874 2,839 2,766 2,063 1,865 2,448 2,658 3,376 1,829 2,557 3,030 2,496 2,607 2,767 2,882 2,104 2,422 1,767 1,671 1,081 1,920 2,194 2,091 1,049 1,397 1,571 1,379 1,720 710 1,203 1,282 1,079 1,578 1,280 1,581 792,040 636,295 638, 754 619,180 712,167 721, 035 63,679 61,407 59, 740 68,24" 67,540 68,476 187,701 159,923 159,076 147, 223 178,692 168, 57" 65,687 50,698 44,849 49,561 52,193 55,719 113,203 73,233 77,387 68,744 79,329 81,988 51,210 51,674 51,466 50,510 58,276 64,542 28,320 25,722 24,792 26,601 30,519 34,607 125,476 88,270 88,709 88,050 100,139 99,002 31,979 25,325 25,447 27,652 30, 585 30,853 18,084 14,923 16, 338 15,642 16, 540 17,045 31,656 27,173 29, 736 29,025 32,067 30,642 33,087 24,038 22,814 29,328 27,052 28, 547 41,958 33,909 38,400 28,597 39, 235 41,037 41, 792 41,771 41, 741 41,703 41,703 41, 689 2,885 2,885 2,880 2,880 2,880 2,880 9,876 9,876 9,876 9,858 9,858 9,858 4,562 4,56r 4,551 4,551 4,551 4,551 5,535 5,523 5,523 5,523 5,523 5,510 2,538 2,538 2,532 2,532 2,532 2,532 2,030 2,027 2,027 2,027 2,027 2,024 3,384 3,384 3,379 3,379 3,379 3,379 2,244 2,244 2,241 2,246 2,246 2,248 1,393 1, 1,391 1,391 1,391 3,229 3,229 3,229 3,213 3,213 3,213 1,169 1,172 1,172 1,165 1,165 1,165 2,947 2,938 2,938 2,938 2,938 2,938 62,895 63,931 64,759 65,695 69, 540 57,081 4,165 4,255 4,310 4,393 4,453 3,781 18,472 18, 71" 19,014 19,211 19,603 16,611 5,259 5,373 5,343 5,476 8,409 4,719 6,958 7,064 7,140 7,265 7,348 6,375 3,722 3,736 3,813 3,831 3,913 3,397 2,489 2,542 2,589 2,615 2,628 2,259 6,432 6,560 2,673 2,719 2,755 2,808 2,845 2,430 1, 1,935 1,""" 1,978 2,001 1,724 2,844 2,870 2,932 2,967 2,997 2,556 2,459 2,520 2,554 2,653 2,668 2,328 5,528 5,640 5,670 5,792 5,856 5,089 19,481,901 19,373,873 19,432,186 19,471, 590 19, 637,142 19, 692,932 6,716 6,819 5,812 1,184,126 8,760,105 1, 149,2701,386,115 624,770 465,291 2,905,274 598,078 348, 521 526,160 382,183 1,152,008 , 1,159,097 8, 863, 1,128, 762 1,355,327 620; 797 455,1412,819, 785 587,273 347, 238 523,154 365, 577 , 707 1,148,015 1,141,696 8,963, "-11,124,820 1 348,281 617,747 450,928 2,816,825 587,173 352,970 525,618 367, 3?5 1,144,999 "3,356 516,016 367, , , _„. 1,154,132 , 981,0421,127,494 1,__. 839 622,398 462,087 2,823,116 569,5 2 3 3 5 2 > 8 5 3 682 1,130,806 1 ,49 , ,494 1, 365,' 592 1,186, 769 8, 885 1,155, ,973, "~ ,477 ! 635,831 4Z?» §37 2,837,983 558, 360 372, 917 539, 842 378, 613 1,159^ 036 1,195, 359 8,974, 4,437 1,176,11 1 1,373, 523647, 518 473,831 2,840,377 553, 990374, 277 533, 794 378,874 1,170,840 Liabilities Federal Reserve notes in actual circulation: Feb. 14 Feb. 21 Feb. 28 Mar. 6 . . . Mar. 13 Mar. 20 Deposits: Member bank-reserve account: Feb. 14 Feb. 21.. Feb. 28 Mar. 6 Mar. 13 Mar. 20 U. S. Treasurer-general account: Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 Foreign bank: Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 4,846,468 4,860, 778 4,858,677 4,889,287 4,881,754 4,895,048 399, 515 1,233,126 401, 557 1,242,057 402, 671 1,243,073 403,480 1, 254,079 403,172 1, 253,452 403,120 1, 265,109 346,022 345,374 345,134 345,288 345,781 346,071 1,286 80,367 453, 516 219, 362 158,228 1,067,661 189,967 139,917 180, 454,924 218,968 157,808 1,069,290 190,276 139,807 180,816 80,435 ,067, 453,017 218,425 157, 912 1,067,399 190; 882 139; 578 180; 95980,159 " • 673 • • 454,329 218,391 159,269 1,072,007 191, — 141,053 183, 1,680 81,074 220,518 158, 671 1,069,798 191; 922 140', 182,875 80,227 1,496 453,405" 452,729 219,959 158,850 1,074,142 192,11, 141,177 182, 273 378, 501 379,466 379,468 384, 964 381,437 379,414 12,150,709 12,240,683 12,317, 794 12,367,086 12,438, 580 12, 256,250 604,356 6,685,499 586,254 6,836,495 581,431 6, 921, 582 593,321 6,945,742 614, i 890, 517 , 616,124 6, 827,831 » , 597,716 595,466 599,308 595,646 619,762 613,327 681,859 296, 560 220, 1,473, 767 318, 140,050 270,836 220,895 684,746 293,452 213, 1,460, 583 313,607 143, 901261,431 212,592 261,431 212, 694,587 285, 549 210, 1,465,928 311,167 148, 255 260,107 210,428 703,654 295,474 221, 521 1,465,367 286,307 151,080 271, 202 213,859 " 708, 334 299,9*90 224,4841,488,450 272, 386 171, 184 277,470 219,730 695, 575 287,626 220,792 1,452,288 261,431 159, 927 263, 580 207, 625 639,445 638,298 628,753 623,914 651, 687 650,124 642,138 595,990 561,406 535,988 526, 387 707,493 62,012 55,914 43,16' 43,348 45, 665 49, 559 159, 556 135,050 137,109 118,303 119, 613 150,811 42,380 44, 263 40,302 43,294 42,134 66, 555 67, 773 68,889 48,277 53,919 44,340 66,195 23,438 23,890 27,808 23,942 24, 711 42,414 24,389 24,844 24,82i~ 21,991 26, 203 27, 315 140,933 108,840 97, 962 105,057 87,198 120, 795 26, 415 26, 551 27,103 33,312 33, 937 40/279 27, 716 27,046 27,032 23,600 24,260 36, 670 22,810 32,458 26,098 22,026 29,071 35, 699 22,860 25,143 29,434 22,056 28,201 39,329 21.856 23,102 32,289 25,140 21,054 31,872 392, 526 361,381 380,844 353, 533 364,406 390, 780 28,409 25,828 27, 531 25,350 26,408 27,621 137, 944 129,872 133,509 125,649 127,046 143,127 38, 672 35,167 37,583 34, 629 36,069 37,622 36, 699 33,373 35,666 32,862 34, 228 35, 702 16,968 15,430 16,491 15,194 15,826 16, 507 13,812 12, 560 13,422 12,367 12,882 13, 436 47,354 43,062 46,020 42,402 44,166 46,067 11,838 10,766 11,505 10,601 11,041 11, 517 8,682 7,895 8,437 7,774 8,097 8,445 11,444 10,407 11,121 10,247 10,673 11,133 11,838 10, 766 11,505 10,601 11,041 11, 517 28,866 26,255 28,054 25.857 26,929 * Less than $500. APRIL 1940 319 Federal Reserve Banks—Continued [In thousands of dollars] Total Liabilities— Continued Deposits—Continued: Other deposits: Feb. 14 Feb. 21... Feb. 28 Mar. 6-.._ Mar. 13 _ Mar. 20 Total deposits: Feb. 14 Feb. 21__._ Feb. 28... Mar. 6 Mar. 13 _ Mar. 20 Deferred availability items: Feb. 14 Feb. 21 _ Feb. 28 __. Mar. 6___ Mar. 13 _. Mar. 20../. Other liabilities, including accrued dividends: Feb. 14 Feb. 21 _.„ Feb. 28 _ Mar. 6 _._ Mar. 13 Mar. 20 Total liabilities: Feb. 14 __. Feb. 21_ Feb. 28. Mar. 6 Mar. 13 _ Mar. 20 __.. Boston 340,677 354,865 363,381 377,032 389,876 399,786 4,620 6,115 5,193 6,389 5,823 7,011 13,526,050 13,552,919 13, 623,425 13, 633, 639 13,719,249 13,754,309 New York 244,989 253,267 280,897 299,774 310,123 699, 1,397 7, 227,988 \ 674, 111 r, 354,684 , 7 ' 7, 657,, 322',457,569 ' 668,408 7,, 470,591 ', 692,482 7, 436,950 7,431,892 700,315" Philadelphia 26,470 26,284 25,346 26,092 24,634 24,179 705,237 701,180 702, 539 699,660 722, 599 741, 683 MinCleve- Rich- At- Chicago St. neap- Kansas Dallas Louis olis land mond lanta City 2,528 2,404 2,485 2,299 2,497 2,347 19,452 24,058 22,615 18,923 18,751 19,254 796,761 342,346 266,823 1 6 ,665,243 366,117 182,960 305,438 258,121 797, 563 337,338 259,035 l) 615,617 360,665185,458 304,650 250,905 789, 571 333,790 256, 5561, 613; 118 359; 535 190,137 297,725 253,852 800,942 338,761264, "' 1, 4,289 616,250 339,475 188,745 303,869 248,815 ,537 261,469 798,358 343,113 270,761 623,7 325,063 208,710 317, 786 808720 348', 872 268; 546 622; 808', 720 348872 268546 '' 823 320,372 210,206 310, 726 260,818 709,619 711,713 711, 711 693,834 718,421 729,336 27,356 127,336 31,063 16,379 29,831 32,418 25,462 89,840 25,452 12,715 27,098 22,958 23,611 91,201 25,843 13,973 26, 715 22,059 25,665 89, 774 27,460 13, 782 27,458 26,499 30, 511 99,215 30,435 14,419 28, 792 25, 598 33,543 98,211 30, 561 13,613 30,171 26, 641 38,639 31,531 28,541 26,644 33, 755 36,655 114 99 121 110 130 120 102 143 128 167 212 193 10,430 10,555 11,041 10,507 11,456 11,248 5,380 4,566 3,942 4,151 2,586 2,325 7,781 7,773 7,610 8,410 7,192 7,003 3,189 3,132 3,208 3,424 3,972 3,673 8,978 9,741 9,760 9,255 7,699 7,145 6,512 6,616 6,413 6,291 5,169 5,164 San Francisco 348 354 399 394 323 314 58,863 57,102 57,633 66,473 67,244 176,821 144,739 140,346 134,027 160,912 154, 758 65,123 49,272 44,160 49,455 51,110 55,272 102,542 69, 573 72,341 66, 216 80,395 78,651 47,791 49,203 50,217 49,925 56,830 63,316 2,867 2,733 3,140 3,098 6,452 3,334 258 259 291 297 311 315 682 668 758 725 887 873 279 317 355 435 3,315 386 346 299 370 342 402 349 83 70 105 85 117 93 19,131,350 19,023,136 19,081,351 19,120,562 19,285,900 19,341,327 1,159,836 1,134,790 1,117,386 1,129,818 1,162,438 1,170,994 136,093 136,075 136,081 136,074 136,102 136,107 9,349 9,346 9,343 9,340 9,341 9,341 51,149 51,149 51,148 51.105 51.106 51,106 11,912 11,906 11,907 11,909 11,909 11,905 13,996 13.992 13.993 14,004 14,010 14,010 5,231 5,245 5,246 5,265 5,271 5,271 4,668 4,622 4,622 4,622 4,630 4,631 13,573 13, 581 13, 583 13,585 13,587 13,589 4,099 4,102 4,104 4,106 4,110 4,114 2,959 2,958 2,958 2,958 2,958 2,953 4,371 4,374 4,374 4,377 4,375 4,376 4,083 4,094 4,094 4,094 4,095 4,101 10,703 10,706 10, 709 10, 709 10, 710 10,710 151,720 151, 720 151, 720 151, 720 151,720 151,720 10,405 10,405 10,405 10,405 10,405 10,405 53,326 53,326 53,326 53,326 53,326 53, 326 14,198 14,198 14,198 14,198 14,198 14,198 14,323 14,323 14,323 14,323 14,323 14,323 5,247 5,247 5,247 5,247 5,247 5,247 5,725 5,725 5,725 5,725 5,725 5,725 22,824 22, 824 22,824 22,824 22,824 22,824 4,709 4,709 4,709 4,709 4,709 4,709 3,152 3,152 3,152 3,152 3,152 3,152 3,613 3,613 3,613 3,613 3,613 3,613 3,974 3,974 3,974 3,974 3,974 3,974 10,224 10,224 10,224 10,224 10,224 10, 224 26,839 26,839 26,839 2,874 2,874 2,784 2,874 2,874 2,874 7,109 7,109 7,109 7,109 7,109 7,109 4,393 4,393 4,393 4,393 4,393 4,393 1,007 1,007 1,007 1,007 1,007 1,007 3,246 3,246 3,246 3,246 3,246 3,246 713 713 713 713 713 713 1,429 1,429 1,429 1,429 1,429 1,429 538 538 538 538 538 1,001 1,001 1,001 1,001 1,001 1,001 1,142 1,142 1,142 1,142 1,142 1,142 1,: 1,266 1,266 1,266 1,266 1T~" 2,121 2,121 2,121 2,121 2,121 2,121 l, 1,682 1,688 1,695 1,711 1,745 9,904 9,975 10,027 10,080 10,143 10,264 2,106 2,122 2,134 2,156 2,172 2,204 3,624 3,646 3,659 3,676 3,692 3,734 1,464 1,480 1,471 1,478 V" 1,514 1,663 1,673 1,678 1,685 1,692 lf" 6,821 6,839 6,850 6,869 6,892 6,929 1,472 1,476 1,487 1,490 1,497 1,508 2,012 2,016 2,019 2,024 2,027 2,036 1,232 1,237 1,235 1,249 1,256 1,255 1,840 1,846 1,850 1,850 1,854 1,865 2,099 2,111 2,097 2,143 2,156 2,187 755, 965 606,706 596,109 594,538 678,445 115 103 111 119 134 125 387 365 421 378 452 430 113 55 75 72 86 73 141 131 152 138 154 139 247 224 253 230 252 238 8,638,617 1,116,661 1, 353,165 609,582 452,522 2,860,627 587,260339,397 515,802 371,0201,126,861 1,116,661 339,397 8,742,148 1,096,143 1,322,359 605, 579 442,408 2, 775,112 576,448 338, 111 512, 788 354,397 1,122,853 ~~~ 8,841,746 1,092,188 1,315,299 602, 537 438,190 2, 772,139 576,335 343,840 505,652 356,191 1,119,848 8,859,422 1,094,838 1,321,829 607,162 449,342 2,778,409 558,680 343, 718 515,237 356,498 1,105,609 8,852, 2011,122,805 1,332,560 620,578 460,077 2,793,251 547, 506 363, 779 529,456 367,424 1,133,825 8,852,632 1,143,412 1,340,449 632,240 461,064 2, 795, 606543,121 365,135 523,408 367,668 1,145, 598 Capital Accounts Capital paid in: Feb. 14 Feb. 21 _. Feb. 28 Mar. 6 Mar. 13 Mar. 20.._ Surplus (section 7): Feb. 14 Feb. 21 Feb. 28 Mar. 6 _ _. Mar. 13 _ Mar. 20 Surplus (section 13b): Feb. 14.. Feb. 21_ Feb. 28 Mar. 6 Mar. 13 Mar. 20 Other capital accounts: Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 13 ___. Mar. 20 Total liabilities and capital aci counts: t Feb. 14 Feb. 21. Feb. 28 Mar. 6 Mar. 13 Mar. 20 Commitments to make industrial advances: Feb. 14. Feb. 21 Feb. 28 Mar. 6 Mar. 13 Mar. 20 _ _ 320 26,839 26,839 35,899 36,103 36,195 36,395 36, 581 19,481,901 1,184,126 8,760,105 1, 149,270 19,373,873 1,159^ 097 8,863,707 1, 128,762 19,432,186 1,141, '"8,963,356 1. 124,820 19,471, 590 1,154, 132 8,981,042" 127,494 . . 19,637,142 1,186,769 8,973,885 155,477 19,692,932 176,112 1,195,359 8,974,437 8,361 ~ 638 966 126 359 356 356 356 342 342 1,767 1,753 1,752 1,684 1,683 1,674 426 426 425 711 701 711 1,386,115 624,770 465,291 2,905,274, , 598,078 348,521 526,160 382,183 1,152,008 1,355,327 620,797 455, ~" " 2,819,785 587,273 347,238 523,154 365,577 1,148,015 1, 348,281617,747 450,928 2,816,825 587,173 352,970 516,016 367,375 1,144,999 , "" 354', 839 1, 354,839 622,398 462,087 2,823,116 569,523 352,853 525,618 367,682 1,130,806 472,837 2,837,983 558,360 372,917 539,842 378,613 1 1,159,036 1, 365, 592 635; 831 . 1,373, 523 647,518 473,831 2,840,377 553,990 374,277 533,794 r '' 378,874 1,170,840 1,033 1,028 1,015 1,119 1,111 1,115 768 767 763 760 756 755 151 151 151 151 151 151 512 492 492 492 492 485 3,189 3,508 3,857 3,754 3,747 3,750 FEDERAL RESERVE BULLETIN INDUSTRIAL ADVANCES BY FEDERAL RESERVE BANKS [Amounts in thousands of dollars] Date (last Wednesday of each month) 1934— Dec. 2 6 . . . 1935—June 26.._. Dec. 31 *._ 1936—June 2 4 . . . Dec. 3 0 . - . 1937—Mar. 31... June 3 0 . . . Sept. 29..., Dec. 2 9 . . . 1938—Mar. 30... June 2 9 . . . Sept. 28... Dec. 2 8 . . . 1939—Jan. 25. Feb. 21 <._ Mar. 29... Apr. 2 6 . . . May 31... June 28 July 26—. Aug. 3 0 . . . Sept. 27... Oct. 25—. Nov. 29... Dec. 2 7 . . . 1940—Jan. 31 Feb. 28.... Mar. 20*. Repaid, Commit- Approved expired, ments but not or without" comoutstanding^ standing pleted a drawn by appli(amount) (amount) (amount) cant, etc. Number Amount Number Amount Number Amount (amount) Applications received 4,386 6,325 7,437 8,006 8,247 8,344 8,430 8,474 8,534 8,708 8,976 9,102 9,188 9,203 9,221 9,249 9,270 9,296 9,308 9,330 9,355 9,366 9,388 9,401 9,418 9,433 9,456 9,471 Applications under consideration 146,972 237,581 293,084 314,471 328,998 333,300 339,509 341,842 350,551 358,936 369,583 378,974 387,490 389,176 389,554 392,230 394,055 394,970 395,499 399,780 401,228 402, 305 402,944 404,226 405,225 406,097 407,392 410,106 71 68 28 12 5 9 10 1 7 19 8 8 5 8 7 14 7 6 5 6 7 2 1 3 2 2 4 7 2,955 11,349 2,823 1,880 1,245 1,322 1,263 800 550 1,299 476 146 247 999 964 344 495 400 255 760 532 370 70 92 41 76 32 180 Applications approved 984 1,646 1,993 2,183 2,280 2,323 2,361 2,381 2,406 2,464 2,566 2,617 2,653 2,660 2,671 2,683 2,697 2,713 2,721 2,730 2,743 2,752 2,763 2,772 2,781 2,793 2,805 2,814 49,634 88,778 124,493 133,343 139,829 141,545 145,758 146,724 150,987 154,918 161,158 168,380 175,013 175,651 175,902 177,895 178,639 179,332 179,778 183,354 184,152 185,234 186,034 187,257 188,222 188,879 180,055 192, 660 A rft7CITIfk£kC •A. U V cLIX v o o 13,589 27,518 32,493 30,484 25,526 23,059 23,019 21,415 20,216 19,371 18,444 17,567 17,345 16,811 16,474 15,798 15,817 15,305 15,255 15,384 14,667 14,454 14,545 14,051 13,683 12,860 12,997 12,764 8,225 20,579 27,649 24,454 20,959 18,611 16,331 14,880 12,780 13,110 13,649 13,597 14,161 13,004 12,907 12,647 11,749 11,530 11,175 11,476 11,009 10,517 10,156 9,643 9,220 8,376 8,966 9,080 20,966 11,248 11,548 9,381 8,226 7,898 1,470 537 3,369 3,419 3,084 5,737 1,946 1,293 1,105 1,975 2,134 2,496 2,067 733 1,220 1,938 1,764 2,548 2,659 2,504 1,454 2,526 5,558 24,900 44,025 61,425 77,910 85,210 97,663 102,588 107,384 111, 193 117,555 122,447 128,839 132,009 133,001 135,004 136,696 137,922 139,281 142,943 144,812 146,156 148,037 149,911 151,679 154,629 155,574 157,074 Participations outstanding* (amount) 1,296 4,533 8,778 7,599 7,208 6,767 7,275 7,304 7,238 7,825 8,426 9,032 12,722 12,534 12,415 12,471 12,243 12,079 12,000 12,818 12,444 12,169 11,532 11,104 10,981 10,505 11,064 11,216 * Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in weekly statement of condition of the Federal Reserve banks. * Includes applications approved conditionally by the Federal Reserve banks and under consideration by applicant. * Does not include financing institution guaranties of advances and commitments made by Federal Reserve banks, which amounted to $1,209,460 March 20, 1940. *Tuesday. 1 Latest date for which figures are available. FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Total Boston New York Phila- Cleve- Richdelphia land mond Atlanta Chicago MinSt. Louis neapolis KanSan sas Dallas FranCity cisco Federal Reserve notes: Issued to F. R. bank by F. R. agent: Feb. 28 5,180, 520 421,107 1,336,700 364,772 479, 202 232,415 170,664 1,113,977 201,627 144,312 190,692 87,889 437,163 Mar. 6. 5,210,592 422,184 1,349,118 366,330 480, 525 233,091 172,270 1,118,041 202,207 144,856 192, 721 89,990 439,259 Mar. 13 5,216,078 420,099 1,351, 277 366,230 480, 227 236,031 172,891 1,118,855 203,364 145,465 192,840 89,144 439,655 89,699 439,452 Mar. 20 5,227,268 421,151 1,358i 600 364J 029 480^ 563 234^ 078 173^ 075 1,125J187 203,619 145,524 192,291 Held by Federal Reserve bank: 321,843 18,436 93,627 19,638 26,185 13,990 12,752 46, 578 10, 745 4,734 9,733 7,730 57,695 Feb. 28 321,305 18, 704 95,039 21,042 26,196 14, 700 13,001 46,034 10,534 9,041 8,916 54,295 Mar. 6 334,324 16, 927 97,825 20,449 26,822 15, 513 14, 220 49,057 11,442 4, 9,965 8,917 58,218 Mar. 13__._ 332,220 18,031 93,491 17,958 27,834 14,119 14,235 51,045 11, 504 4,347 10,018 9,610 60,038 Mar. 20 In actual circulation:* ,468 Feb. 28._ _. 4,858, 677 402,671 1,243,073 345,134 453,017 218,425 157,912 1,067,399 190,882 139, 578 180,959 80,159 379, 4,889,287 403,480 1,254,079 345, 288 454,329 218,391 159, 269 1,072,007 191,673 141,053 183, 680 81,074 384,964 Mar. 6_._ ,437 4,881, 754 403,172 1,253,452 345,781 453,405 220, 518 158; 671 1,069,798 191,922 140,496 182,875 80,227 381, Mar. 13 ,414 4,895,048 403,120 1, 265,109 346,071 452, 729 219, 959 158,850 1,074,142 192,115 141,177 182,27380,089 379, Mar. 20.. Collateral held by agent as security for notes issued to bank: Gold certificates on hand and due from U. S. Treasury: 5,313,500 440,000 1,355,000 375,000 482,000 250,000 175,000 1,130,000 209,000 147, 500 195,000 91,000 464,000 Feb. 28 5,323, 500 440,000 1,365,000 375,000 482,000 250,000 175,000 1,130,000 209,000147, 500 195,000 91,000 464,000 Mar. 6._ 1,000 175,000 1,130,000 209,000 147, 500 195,000 91,000 464,000 5,328, 500 440,000 1,370,000 375,000 482,000 250, Mar. 13 91,000 464,000 5,333,500 440^ 000 1, B75,000 375^ 000 482^ 000 250,000 175,000 1,130,000 209,000 147, 500 195,000 Mar. 20 Eligible paper: 52 258 95 723 237 Feb. 28 42 205 116 145 615 Mar. 6_. 113 141 130 109 Mar. 13 543 85 93 107 Mar. 20 493 40 Total collateral: Feb. 28 Mar. 6 Mar. 13 Mar. 20 5,314,223 440,045 1,355,237 375,095 482,000 250,052 175,000 1,130,000 209,000147,536 195,258 91,000 464,000 91,000 464,000 250,042 175,000 1,130^ 000 209^ 000 147, 537 195,205 5,324,115 440,070 1,365,145 375,116 482,000 25fy 042 175,0001, , 1 5, 329,043 440,025 1,370,130 375,109 482,000 250,113 175,000 : 130,000 209,000 147, 525 195,14191,000 464,000 5,333,993 440,055 1,375,085 375,088 482,000 250,093 175,000 1,130,000 209,040147,525 195,107 91,000 464,000 i Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve bank other than the issuing bank. APRIL 1940 321 RESERVE POSITION OF MEMBER BANKS, FEBRUARY, 1940 [Averages of daily figures. In millions of dollars] Gross Net dede- Time mand mand dededeposits posits posits i Classes of banks and districts All member banks.. 37,856 Central reserve city banks: 14,206 New York 2,834 Chicago __. Reserve city banks: Boston district 1,202 223 New York district Philadelphia district.. 1,381 Cleveland district •. 1,781 Richmond district 806 Atlanta district 787 1,383 Chicago district St. Louis district 909 404 Minneapolis district Kansas City district- . 1,064 785 Dallas district San Francisco district 2,265 Total 12,990 Country banks: Boston district 909 1,415 New York district Philadelphia district._ 678 634 Cleveland district J 586 Richmond district 562 Atlanta district 924 Chicago district 392 St. Louis district Minneapolis district... 334 Kansas City district— 471 Dallas district 570 San Francisco district. 353 Total 7,827 MEMBER BANK RESERVE BALANCES BY CLASSES OF BANKS [Averages of daily figures. In millions of dollars] Reserves with Federal Reserve banks All member Required Held 6,589 12,215 5,626 13, 568 2,530 730 497 3,123 600 6,323 901 3,199 301 1,087 175 1,140 1,397 632 532 953 677 310 681 478 1,825 87 161 230 734 213 178 594 179 89 158 129 1,967 194 39 211 281 121 102 197 127 59 127 90 418 411 63 425 536 198 131 351 245 81 197 133 574 216 24 214 255 77 29 154 117 22 70 42 157 9,888 4,720 1,966 3,344 1,378 641 1,015 436 409 336 338 569 240 205 282 328 228 557 1 387 876 694 361 234 744 245 279 158 105 282 105 191 96 84 58 52 106 41 39 42 45 41 187 399 176 160 96 85 210 70 65 69 84 56 82 208 80 66 38 32 105 29 26 27 39 15 5,026 5,921 899 1,646 Reserve city banks Country banksi Excess 31,011 11,869 Central reserve city banks 747 New York Chicago 8,925 9,021 9,624 9,997 10,085 10,321 10,659 11,443 11,862 11,688 11,473 11,985 12,215 4,482 4,472 4,889 5,094 5,049 5,195 5,366 5,866 5,958 5, 759 5,623 6,099 6,323 673 681 794 878 893 848 923 1,009 1,112 1,115 1,141 940 901 2,405 2,475 2,544 2,630 2,728 2,827 2,883 3,009 3,203 3,229 3,141 3,319 3,344 1,364 1,393 1,397 1,395 1,415 1,451 1,486 1,559 1,588 1,585 1,568 1,628 1,646 12,170 12,135 12,168 12, 259 12, 314 12, 365 12,450 6,261 6,251 6,275 6,357 6,429 6,447 6,434 929 902 897 904 897 896 902 3,354 3,347 3,350 3,340 3,339 3,346 3,430 1,626 1,635 1,648 1,657 1,649 1,676 1,684 3,373 3,432 3,926 4,212 4,246 4,402 4,607 5,198 5,490 5,259 5,011 5,464 5,626 2,047 1,986 2,302 2,465 2, 394 2,504 2,587 2,943 2,974 2, 753 2,611 3,045 3,199 164 179 299 360 362 305 363 430 518 516 540 342 301 669 741 794 858 944 1,013 ,046 1,147 ,295 1,294 1,188 1,350 L, 378 494 626 531 529 546 581 611 678 704 696 671 727 747 5,589 5,560 5,590 5,665 5,699 5,737 5,786 3,156 3,140 3,165 3,229 3,277 3,275 3,246 322 300 295 305 301 300 299 1,383 1,384 ,380 1,374 1,372 L, 387 1,456 728 737 748 757 749 775 784 Total reserves held: 1939—February March April May June July August September October November December 1940—January February Week ending (Friday): 1940—Feb. 2 Feb. 9 Feb. 16 Feb 23 Mar. 1 Mar 8 Mar. 15 Excess reserves: 1939—February March _ . April May June July. August September October November December 1940—January February Week ending (Friday): 1940—Feb. Feb. Feb. Feb. * Gross demand deposits minus demand balances with domestic banks (except private banks and American branches of foreign banks) and cash items in process of ccElection. NOTE.—See table at foot of p. 316 for percentages of deposit required to be held as reserves. 2 9 16 23 Mar. 1 Mar. 8 Mar. 15 banksi p Preliminary. « Weeklyfiguresof excess reserves of all member banks and of country banks are estimates. DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS [Averages of daily figures. In millions of dollars] Member banks in larger centers Member banks in smaller centers (places under 15,000) (places over 15,000) All member banks Federal Reserve district Gross demand Feb. Boston , New York Philadelphia Cleveland Richmond _ Atlanta— Chicago St. Louis Minneapolis Kansas City Dallas... San Francisco Total . _. ___ _. Jan. 2,111 15,844 2,058 2 414 1,392 1 349 5,141 1,301 738 1,534 1,355 2,617 37,856 Time Feb. Jan. 2,125 15,561 2,075 2,424 1,383 1 331 5,148 1,304 743 1,530 1,340 2,619 644 2,279 1,106 1 428 574 412 1 836 424 368 317 234 2,248 641 2,284 1,108 1 415 566 408 1 820 422 367 317 233 2,253 37, 585 11,869 11,835 Gross demand Gross demand Time Jan. Feb. Jan. Feb. Jan. 1 993 1 981 11,334 i 1,322 1,833 1,818 2 185 2 174 1,186 1,196 1 167 1 157 l l 957 i 1 954 1 062 1 063 546 539 1 182 1 186 1 040 1 030 2,494 2,495 514 11,049 652 1,121 373 322 1 1,036 304 179 201 187 2,147 512 i 1,044 656 1,110 367 320 i 1,028 304 179 202 188 2,152 131 304 241 240 196 182 350 239 199 348 316 123 132 300 242 239 198 174 342 241 198 348 311 125 130 499 454 308 200 89 303 119 189 115 47 102 129 499 452 305 199 87 300 118 187 115 46 101 117, 949 117, 943 i 8,086 i 8,062 2,868 2,850 2,556 2,539 Feb. Jan. Feb. Time ' Excluding central reserve city banks, for whicb[.figures for latest month are shown in table above. 322 FEDERAL RESERVE BULLETIN KINDS OF MONEY IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollarsj End of month Total Gold certificates Silver dollars Silver certificates Treasury notes of 1890 Subsidiary silver coin Minor coin United States notes 1 -1 1 348 350 352 149 150 151 244 246 251 354 358 361 362 365 369 373 379 152 154 155 156 157 159 161 163 255 259 266 264 267 269 267 269 381 164 272 372 163 265 373 163 271 1,269 1,327 1,378 1,385 1,417 1,454 1,446 1,465 1,488 1,485 1,530 1,554 1939—January February March . . . . . . . . . . . . > April May June July August September October November _ _ December 6,653 6,731 6,817 6,905 6,967 7 047 7,049 7,171 7,293 7 342 7,483 7,598 75 74 74 41 41 41 73 72 72 71 71 71 70 70 42 42 42 43 43 43 44 44 69 45 1940—January February 7,376 7,455 69 44 68 45 Federal Federal Reserve Reserve bank notes notes 1 1 j 1,469 1,500 4,301 4,320 4,350 4,426 4,449 4,484 4,496 4,595 4,688 4,739 4,826 4,912 National bank notes 27 27 27 26 26 26 25 25 25 24 24 191 189 186 184 182 180 178 177 24 175 23 173 23 4,796 4,839 198 195 193 171 Back figures.See Annual Report for 1937 (table 35). PAPER CURRENCY, BY DENOMINATIONS, AND COIN IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] End of month 1039—January February March April _ May June July August September October ___ November December 1940—January February Total Coin and small denomination currencyJ in circulation ' Total Coin $1» $2 $5 $10 $20 6,653 6,731 6,817 6,605 6,667 7,047 _ 7,049 7,171 7,293 7,342 7,483 7,598 7,376 __ 7,455 541 544 548 554 558 561 566 571 577 586 590 492 498 503 505 613 614 514 521 532 535 546 559 579 £81 4,953 5,011 5,049 5,069 5,109 5,164 5,169 5,253 5,329 5,363 5,478 5,553 5,332 5,397 604 919 928 929 937 947 947 526 530 Large denomination currency * Total $50 $100 $500 $1,000 $5,000 $10,000 1,705 1,721 1,770 1,838 1,861 1,887 1,885 1,922 1,665 1,981 2,007 2,048 403 406 411 418 422 428 426 433 440 445 452 460 768 774 799 829 836 848 847 857 876 884 896 919 160 161 165 170 172 176 175 180 185 186 188 191 391 405 413 415 420 425 2,047 2,061 457 459 920 ,723 682 1,004 1,019 1,546 "., 674 ,594 ,602 ,614 ,638 ,644 ,681 ,706 ,710 ,752 ,772 191 191 Unassorted' 426 427 970 329 335 349 370 1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve banks. * Includes unassorted currency held in Treasury and Federal Reserve bants and currency of unknown denominations reported by the Treasury 1 destroyed. as Paper currency only; $1 silver coins reported under coin. Back figures.—See Annual Report for 1937 (table 36). TREASURY CURRENCY OUTSTANDING (Held by Treasury and Federal Reserve banks and in circulation. In millions of dollars] End of month Silver dollars and Total silver bullion i Federal NaSubsid- Minor United Re- tional iary coin States serve bank notes bank notes silver notes coin 2,816 2,824 2,839 2,849 2,862 2,881 2,895 2,907 2,919 2,932 2,947 2,963 1,705 1,717 1,733 1,746 1,759 1,778 1,794 1,804 1,814 1,825 1,835 1,845 376 376 377 376 377 380 381 2,971 1940—January February... 2,981 1,855 1,866 1939—January...-. February.. March April May June July August September. October.... November. December.. 1940 Year or month 1937.— 1938. 1939 ShipReceipts ments to from Europe Europe Net shipments 21.5 33.1 110.2 47.6 34.4 9.8 100.4 1.0 .9 .3 .7 1.1 1.0 .9 .1 .2 1.3 .3 Net receipts 2.0 26.4 45.8 3.1 1.8 1.2 3.8 .7 1.6 3.2 6.3 390 394 159 160 160 160 161 161 162 162 164 166 167 347 347 347 347 347 347 347 347 347 347 347 347 201 198 1939—February.. 196 March 193 April 191 May 189 June 186 July 185 August 183 September 181 October... 179 November. 178 December. 3.0 27.3 46.1 3.8 2.9 2.2 4.7 .8 1.8 4.5 6.6 400 401 169 170 347 347 175 1940—January... 173 February.. 5.3 4.7 i Includes silver held against silver certificates amounting to $1,765000,000 on Feb. 29, 1940 and $1,632,000,000 on Feb. 28, 1939. APRIL SHIPMENTS AND RECEIPTS OF UNITED STATES PAPER CURRENCY [By selected banks and financial institutions In New York City. In millions of dollars] (0 0) 26.1 1.3 5.3 4.7 i Less than $50,000. Back figures.—See Annual Report for 1937 (table 38). Description.—See BULLETIN for January 1932, pp. 7-8. 323 MOVEMENT OF GOLD TO AND FROM UNITED STATES1 [In thousands of dollars] ANALYSIS OF CHANGES IN GOLD STOCK OF UNITED STATES [In millions of dollars] Increase in total gold Inactive stock account Gold stock at end of period Period Total 1934 2. 1935.__ 1936... 1937— 1938.__ 10,125 11,258 12,760 14,512 17,644 4,202.5 1,, 133. 9 1,887. 2 1, 739.0 ., 26.5 1,132. 5 1, 116. 6 , 1,227.9 1, 502. 5 1, 585. 5 1, 751. 5 1, 973. 6 3,132. 0 \ 574.2 3; February Exports Imports Belgium France Italy Netherlands Norway Sweden Switzerland United Kingdom U. S. S. R Canada Mexico.. Central America Argentina _ Chile Colombia Ecuador. _ Peru Venezuela Australia... British India China and Hong Kong.... Japan.. Philippine Islands.. South Africa _. All other countries 2 . _ January 974 40 5,566 Imports Jan.-Feb. Imports Exports 974 99 7,818 46, 596 33,405 49,049 15,140 45,227 5,570 99,650 4,557 1,253 9 1,923 7 589 1,899 59 2,253 30,415 19, 527 16,601 1,208 23,906 16,181 13,878 32,448 13,932 Exports 14.2 14.7 14.1 13.5 15.5 13.3 16, 646 16, 932 17,091 17,358 17,644 170.0 192.7 383.8 532.3 166.2 153.3 128.0 407.6 285.9 159.9 267.1 285.1 156.3 223.3 365.4 605.8 429.4 240.4 278.6 259.9 326.1 69.7 168.0 451.2 14.1 -48.6 10.7 -114.8 -251. 6 -104.8 -164.0 152.1 2.8 79.5 90.9 -200.8 12.2 10.5 11.1 13.1 12.6 10.7 13.1 14.1 15.7 18.5 14.8 13,2 17,931 18,177 18,413 287.5 246.0 235.5 236.4 201.4 418.7 1 Figures represent customs valuations which, with some exceptions, 13.7 are at rate of $35 a fine ounce. P15.2 * Includes all movements of unreported origin or destination. —200.3 Back figures—See table, p. 353, and Annual Report for 1937 (tables 31 and 32). 1,183.0 14,682 14,874 15, 258 15, 791 15,957 16,110 16, 238 _ From or to— -1.2 -53.9 -15.5 -20.9 -28.8 -13.3 -110. 2 -7.4 -62.4 1939—January February March April.._ May June July August September October November December 1940—January February Mar. 1-27 96.0 110.7 131.6 143.9 148.6 159.8 1940 52.9 71.1 52.8 55.3 63.8 166.0 520.9 562.4 177.8 240.5 12, 795 12,869 12,919 12,963 13,017 13,136 13, 760 14,065 14,312 14,512 _ 82.6 .2 -85.9 -200.4 -333. 5 -534.4 Domestic gold production 18.5 74.3 49.8 44.2 54.5 118.3 623.8 305.0 247.5 199.6 1938—March April May June July August September October November December _ Net gain or loss (-) Net gold through earimport marking trans-1 actions -.6 10.7 10.6 11.5 9.6 BANK SUSPENSIONS1 Number of banks suspended: 1934 - 1935 1936 1937 1938 _ 1939 1940—jan -Feb 57 34 44 59 55 42 2 Deposits of suspended banks (in thousands of dollars): 3 1934 — 36,937 10,015 1935 1936 . 11,306 19,723 1937 — 13,012 1938 '34,998 1939 238 1940—Jan -Feb Member banks National 4 1 4 1 4 40 5,313 507 7,379 36 1,341 8 1,251 3 671 3 589 1,488 433 4,241 6,722 411 526 6,155 9,743 1,008 4,919 1,896 18,872 1,241 5,452 37, 680 3,360 20,297 1,579 6,460 42, 598 5,257 39,169 2,821 4 201,475 53 236,413 437,889 75 Year and month 22 40 47 47 25 2 1,912 3,763 10,207 1,708 10,156 211 11,721 24,629 6,589 238 19291935. 1936 1937. 1938 1939 10,395 16,465 34,985 939 592 480 1,044 '2,439 Total, all reporting centers New York City 140 133 other other reportleading ing cities 1 centers * 982, 531 402,718 461,889 469,463 405,929 423,932 603,089 184,006 208,936 197,836 168, 778 171,382 331,938 190,165 219,670 235, 206 204,745 218,298 47,504 28,547 33, 283 36,421 32,406 34, 252 February.. March April May June July August September October... November December. 35,180 29, 973 37,322 32, 822 34, 656 36,883 33,245 33,314 36, 594 35,830 34, 666 43,447 14, 533 12, 380 16,274 13, 311 14,165 15, 312 12, 794 13,118 15,138 13, 683 13,041 17,633 17,860 15,201 18,211 16,832 17,763 18, 676 17,683 17,496 18, 526 19,029 18, 636 22,386 2,786 2,392 2,837 2,679 2,728 2,895 2,768 2, 701 2,930 3,119 2,990 3,428 1940—January.. _ February.. 37, 786 32,197 14, 739 12,138 19, 978 17,344 3,069 2,715 48 8 3 _ 6 6 10 1939—January.— * Revised. * Represents banks which, during the periods shown, closed temporarily or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks at the time of closing (in some instances with the aid of Federal Deposit Insurance Corporation loans). > Federal deposit insurance became operative January 1,1934. 1 Deposits of member banks and insured nonmember banks suspended are as of dates of suspension, and deposits of noninsured nonmember banks are based on the latest data available at the time the suspensions were reported. Back figures—See Annual Report for 1937 (table 76). 324 21 BANK DEBITS InNot State sured* insured 2 1 3 52, 737 2,550 692 [Debits to individual deposit accounts, at banks in principal cities.] [In millions of dollars] Nonmember banks 1 48 40.0 37.0 r Preliminary. 1 Gold held under earmark at Federal Reserve banks for foreign account on February 29, 1940, in millions of dollars: 1,086.0. » Figures based on rate of $20.67 a fine ounce in January 1934 and $35 a fine ounce thereafter. NOTE.—Figures for domestic production of gold are those published in table, p. 353, adjusted to exclude Philippine Islands production received in United States. Adjustment based on annual figures reported by Director of Mint and monthly imports of gold to U. S. from Philippines. For back figures see Annual Report for 1937 (table 29). Total, all banks Total.. 21, 321 5,570 46, 913 2,006 561 1 Comprises centers for which bank debit figures are available beginning with 1919, except that one substitution was made in 1920 and one in 21928. Centers (other than the 141 centers) for which bank debits are currently reported. The number has changed very little since 1934 and has numbered 133 since 1936. Back figures.—See Annual Report for 1937 (Table 71), which also gives a definition of bank debits. Figures for individual reporting cities and totals by Federal Reserve districts are available in mimeographed form. FEDERAL RESERVE BULLETIN ALL BANKS 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 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports to the Comptroller of the Currency. Under the amended provisions of sec. 21 (a) private banks no longer report to the Comptroller of the Currency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve BULLETIN for December 1935, p. 883, and July 1936, p . 635. Figures for nonmember banks are for dates indicated or nearest thereto for which figures are available. NUMBER OF BANKS DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS 1 [In millions of dollars] Member banks Total Call date Nonmember banks National State Other Mutual nonsavings membanks ber banks Total Member banks Call date All banks Nonmen iber banks Total National State Mutual Other savings nonmembanks ber banks 1929—June 29 Dec. 31 25,110 24,630 8,707 8,522 7,530 7,403 1,177 1,119 611 609 15,792 1929—June 29... 53,852 Dec. 3 1 . . . 55,289 15,499 32,284 33,865 19,411 20,290 12,873 13,575 8,983 8,916 12,684 12,508 1933—June 30 Dec. 30 14,519 15,011 5,606 6,011 4,897 5,154 709 857 576 579 8,337 1933—June 30— 37,998 38,505 Dec. 30 8,421 23,338 23,771 14,772 15,386 8,566 8,385 9,713 9,708 4,940 5,026 1934—June 30 Dec. 31 15,835 16,039 6,375 6,442 5,417 5,462 958 980 578 579 8,882 1934—June 30... 41,870 Dec. 31 44,770 9,018 26,615 28,943 17,097 18,519 9,518 10,424 9,780 9,828 5,475 6,000 1935—June 29 Dec. 31 15,994 15,837 6,410 6,387 5,425 5,386 985 1,001 571 570 9,013 1935—June 29... 45,766 Dec. 31— 48,964 8,880 29,496 32,159 19,031 20,886 10,465 11,273 9,920 9,963 6,360 6,842 1036—June 30 Dec. 31 15,752 15,628 6,400 6,376 5,368 5,325 1,032 1,051 666 565 8,786 1936—June 30... 51,335 Dec. 31— 53,701 8,687 34,098 35,893 21,986 23,107 12,112 12,786 10,060 10,143 7,178 7,666 1937—June 30 Dec. 31 15,527 15,393 6,357 6,341 6,293 5,260 1,064 1,081 664 563 8,606 1937—June 30... 53,287 8,489 Dec. 3 1 . . . 52,440 35,440 34,810 22,926 22,655 12,514 12,155 10,213 10,257 7,636 7,373 1938—June 30 Dec. 31 15,287 15,206 6,338 6,338 5,242 5,224 1,096 1,114 563 556 8,386 1938—June 30— 52,195 64,054 8,312 Dec. 31 34,746 36,211 22,553 23,497 12,193 12, 714 10,296 10,365 7,153 7,478 1939-June30 Oct. 2 Dec. 30» 15,082 15,061 15,035 6,330 6,339 6,362 5,203 5,196 5,187 1,127 1,143 1,175 553 552 552 55,992 8,199 1939—June 30 57,437 8,170 Oct. 2 . 8,121 Dec. 3 0 ' . . 58,344 38,027 39,287 39,930 24,534 25, 248 25,661 13,493 14,039 14,269 10,521 10,520 10,613 7,444 7,630 7,801 For footnotes see table below. For footnotes see table below. LOANS AND INVESTMENTS [In millions of dollars] All banks Member banks Nonmember banks Mutual savings banks Call date Total Loans Investments Total Loans Investments Total Loans Investments Other nonmember banks Total Loans Investments 1929—June 29.. Dec. 31.. 58,474 58,417 41, 531 41,918 16,943 16,499 35,711 35,934 25,658 26,150 10,052 9,784 9,556 9,463 5,892 5,945 3,518 13,207 13,020 9,981 9,823 3,227 3,197 1933—June 30.. Dec. 30.. 40,076 40,319 22,203 21, 977 17,872 18,342 24,786 25,220 12,858 12,833 11,928 12,386 10,044 9,985 5,941 5,906 4,103 4,079 5,246 5,115 3,404 3,238 1,841 1,877 1934—June 30.. Dec. 31.. 42,502 43,458 21,278 20,473 21,224 22,984 27,175 28,150 12,523 12,028 14,652 16,122 9,904 9,782 5,648 5,491 4,256 4,291 5,423 5,526 3,108 2,955 2,315 2,571 1935—June 29_. Dec. 31.. 44,416 45,717 20,272 20,329 24,145 25,388 28, 785 29,985 11,928 12,175 16,857 17,810 9,852 9,804 5,341 5,210 4,511 4,594 5,779 5,927 3,003 2,944 2,777 2,983 1936—June 30.. Dec. 31.. 48,458 49,524 20, 679 21,449 27,778 28,075 32,259 33,000 12, 542 13,360 19,717 19,640 9,961 10,060 5,105 5,027 4,856 5,034 6,238 6,464 3,032 3,062 3,206 3,402 1937—June 30.. Dec. 31_- 49,696 48,566 22, 514 22,198 27,182 26,368 32,739 31,752 14,285 13,958 18,454 17,794 10,180 10,187 5,002 4,996 5,178 5,191 6,778 6,627 3,227 3,244 3,550 3,383 1938—June 30.. Dec. 31 *. 47,381 48,929 21,130 21,354 26,252 27, 575 30,721 32,070 12,938 13,208 17,783 18,863 10,196 10,255 4,961 4,930 5,235 5,325 6,465 6,604 3,231 3,217 3,234 3,387 1939—June 30.. Oct. 2 . . . Dec. 303. 49,616 49, 954 50,882 21,318 21, 634 22,167 28,299 28,320 28, 714 32,603 33,075 33, 941 13,141 13,470 13,962 19,462 19,605 19,979 10,342 10,333 10,332 4,931 4,936 4,961 5,411 5,397 5,371 6,671 6,546 6,610 3,245 3,228 3,244 3,425 3,318 3,365 i Prior to Dec. 30,1933, member-bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000 on that date. The nonmember bank figures include interbank deposits to the extent that they are not shown separately in a few State bank abstracts. » Beginning December 1938 figures of loans and investments exclude approximately $50,000,000 and $100,000,000, heretofore reported as loans and investments, respectively, which indirectly represent bank premises or other real estate and are now classified in condition reports among "Other assets." 3 Figures for "All banks" are preliminary. Back figures.—See Annual Report for 1937 (tables 48-49). APRIL 1940 325 CONDITION OF ALL MEMBER BANKS—LOANS AND INVESTMENTS [In millions of dollars] Loans * Call date Total loans and invest- Total ments Investments * Loans for Compurchasing meror carrying cial, securities Open inReal Loans Other mardusestate to Total ket To trial, loans banks loans * and paper brokers agriTo and others' culdealtural » ers U. S. Government obligations Total Obligations of Direct States Other and securGuar- polit- ities i anical 6 subBills Notes Bonds teed divisions Total—All MemberBanks 1929—Dec. 31. _ 35,934 1933—June SO- 24,786 WS?—Dec. 3 1 . . 31,752 1938—Mar. 7— 31, 521 June 30— 30,721 Sept. 28 _ 31,627 Dec. 31. . 32,070 1939—Mar. 29.. 32,095 June 30— 32,603 Oct. 2«__ 33,075 Dec. 30__ 33,941 New York, City» 1929-Dec.31.. 8,774 1933—June 30. _ 7,133 1937—Dec. 3 1 . - 8,313 1938—Mar.7 — 8,317 June 30— 8,013 Sept. 28. 8,355 Dec.31_. 8,335 1939—Mar. 29.. 8,408 June 30— 8,688 Oct. 2 •_, 9,044 Dec. 30__ 9,339 City of ChicagoT 1929—Dec. 3 1 . . 1,757 1933—June 30_. 1,287 1937—Dec. 3 1 . . 1,901 1938—Mar. 7— 1,997 June 30.. 1,806 Sept. 28. 1,889 Dec.31.. 1,969 1939—Mar.29.. 1,965 June 30.. 2,052 Oct. 2*_. 2,050 Dec. 30.. 2,105 Reserve City Banks 1929—Dec. 3 1 . . 12,029 1933—June SO- 8,492 WS?—Dec. 31. . 11,414 1938—Mar. 7— 11,250 June 30 . 11,150 Sept. 28. 11,426 Dec. 3 1 . . 11,654 1939—Mar.29_. 11, 624 June 30.. 11,756 Oct. 2«_. 11,880 Dec. 30.. 12,272 Country Banks 1929-Dec. 31. 13,375 1933—June 30.. 7,873 1937-Dec. 31.. 10,124 1938—Mar. 7... 9,958 June 30.. 9,752 Sept. 28. 9,958 Dec. 31.. 10,113 1939—Mar. 29.. 10,098 June30_. 10,109 Oct. 2«__ 10,102 Dec. 30.. 10, 224 5,448 5,531 5,571 583 595 643 607 492 484 442 427 420 2,463 953 950 878 701 713 973 838 731 7,685 3,191 3,752 2,372 2,752 2,547 2,665 2,556 2,614 2,613 2,590 2,661 775 2,716 733 2,749 736 2,828 6,115 455 790 700 2,957 1,461 1,456 1,479 195 364 198 168 141 153 138 126 128 1,257 758 761 696 556 564 787 668 555 2,145 1,044 733 727 717 702 220 209 215 1,776 120 611 188 251 61 41 39 29 31 43 32 39 26,150 12,858 13,958 13,546 12,937 13,208 13,047 13,141 13,470 13,962 6,683 3,424 3,673 3,532 3,172 3,146 3,262 3,116 3,296 1,448 677 635 614 525 522 539 545 544 563 336 361 348 714 11,515 9,784 330 4,857 11,928 70 6,996 L7,794 96 6, 745 .7,975 120 6,397 L7, 783 126 6,364 125 2,728 8,863 99 2,671 .9,048 58 2,796 .9,462 .9,605 56 2,888 19,979 3,863 249 6,887 1,113 [0, 574 662 0, 625 797 i0, 215 316 L0, 713 313 10,882 286 10, 691 303 L0, 946 441 L0,891 LI, 184 563 520 2,049 4,277 4,297 3,653 3,707 3,389 2,604 2,720 3,094 3,725 5,635 5,531 6,246 2,223 8,398 157 141 140 132 132 121 124 130 322 162 29 60 85 95 99 77 41 926 1,175 1,145 1,451 1,560 1,663 2,040 2,284 44 1,112 2,551 3,207 3,180 3,031 3,153 2,963 2,939 3,360 3,401 3,497 166 987 1,536 1,529 1,358 1,342 1,142 831 908 133 2,091 3,709 4,640 4,785 4,840 5,209 5,072 5,322 5,700 5,928 425 6,043 533 251 129 113 109 111 70 70 71 535 237 426 423 361 351 62 57 60 116 384 916 1,008 859 921 1,005 992 1,040 1,017 1,031 2,595 937 1,811 1,741 1,541 1,499 436 427 440 372 9,084 4,482 5,203 5,031 4,853 4,870 4,963 4,936 5,004 5,127 5,329 17 41 66 2,121 2,116 2,118 168 126 201 197 163 156 149 145 138 664 108 123 118 95 96 119 115 115 2,775 1,340 1,066 1,020 998 992 242 228 221 1,538 1,131 1,176 1,173 1,201 1,217 1,230 1,249 1,284 258 3,679 99 1,678 27 2,610 25 2,498 26 2,369 22 2,387 20 1,081 17 1,066 12 1,116 2,322 155 119 222 1,335 1,168 1,531 1,597 1,626 201 35 216 215 173 156 138 142 140 291 25 25 24 21 21 25 24 22 2,231 1,117 824 804 790 784 243 226 229 1,462 1,055 1,219 1,233 1,269 1,303 1,353 1,363 1,402 4,705 2,005 2,149 2,083 2,126 2,127 1,149 1,121 1,180 1,646 163 20 224 1,477 8,936 4,275 4,446 4,399 4,444 4,480 4,605 4,665 4,768 610 1,266 1,382 1,281 1,367 1,430 1,420 1,507 1,487 1,536 2,944 4,011 6,211 6,219 6,751 6,752 6,943 1,368 2,483 3,961 3,962 3,940 4,088 4,278 4,181 4,102 4.089 4,222 4,439 3,598 5,677 5,589 5,364 5,558 5,669 5,618 5,504 5,437 5,456 4 1,234 1,267 1,469 2,490 2,477 2,385 2,550 2,636 2,578 2,444 2,383 2,434 6,556 6,691 58 638 495 505 222 251 158 68 168 7,208 7,783 7,786 315 797 2,385 206 32 153 12 1 59 121 185 19 82 366 371 313 310 291 212 234 94 97 518 484 535 611 655 660 621 153 176 701 91 205 106 115 69 47 57 100 78 165 681 1,589 1,610 1,268 1,290 1,224 977 1,014 1,112 1,597 2,267 2,236 63 819 3,339 171 299 786 787 715 766 732 585 563 999 1,106 1,675 1,665 1,657 1,770 1,893 1,978 1,870 431 1,972 31 2,752 2,997 3,105 3,010 1,797 1,827 2,128 2,298 2,340 2,660 2,831 2.920 3,144 1,393 1,744 2,047 2,209 2,143 2,317 2,448 2,555 2,554 2,764 2,692 4,528 3,297 3,376 3,314 3,296 3,361 3,192 3,142 3,131 3,030 2,959 432 709 834 894 1,086 1,123 1,157 1,275 222 478 342 485 394 495 517 582 480 662 579 758 680 704 688 707 727 698 714 736 708 94 100 122 126 109 108 135 155 172 87 135 136 140 144 141 149 154 147 162 138 121 139 159 175 176 171 179 168 170 637 648 718 743 740 823 889 909 972 448 1,128 930 921 901 708 908 732 950 775 866 808 860 823 866 895 856 897 860 678 647 579 596 597 643 683 699 725 2,546 1,549 1,630 1,585 1,522 1,509 1,453 1,001 1,397 1,025 1,351 1,058 1,297 1,061 1,236 627 581 879 880 878 1 Classifications indicated were revised as of Dec. 31,1938; for explanation see BULLETIN for January 1939, p p . 22-23, and the BULLETIN for April, 1939, pp. 259-264, 332. Beginning June 30,1939, detailed classifications available on June and December dates only. 2 Not reported separately prior to December 1938 except for weekly reporting banks in leading cities. > Figures in this column prior to Dec. 31,1938, represent all loans on securities, regardless of purpose, excepting only loans on securities to banks and to brokers and dealers. * This is a residual item and, because of the revised loan classifications, figures beginning Dec. 31,1938, are not comparable with earlier figures, s Includes Treasury certificates of indebtedness through 1934. 6 Breakdown of loans and investments not reported separately. 1 Central reserve city banks. Back figures.—See Annual Report for 1937 (tables 52-58). 326 FEDERAL RESERVE BULLETIN CONDITION OF ALL MEMBER BANKS—RESERVES AND LIABILITIES [In millions of dollars] Time deposits, except interbank Demand deposits, except interbank Reserves Balwith ances Fed- Cash with doeral in Re- vault mestic serve banks» banks Interbank deposits> IndiIndiDomestic vid- States Certivid- States banks and uals, fied uals, and posits part- polit- and U. S. part- polit- Postal adnerical offi- Gov- nerical savForjusted* ships, sub- cers' ern- ships, sub- ings* eign and divi- checks ment 4 and diviDe- Tfrno banks cor- sions etc.3 cor- sions mand i line poraporations tions Demand de- Borrowings Capital accounts Call date Total—All Member Banks 2,374 2,235 7,005 7,249 8,004 8,193 8,694 9,112 10, Oil 11,617 11,604 558 405 589 604 712 775 746 777 712 774 841 2,168 2,008 3,414 3,561 4,084 3,937 4,240 4,403 4,674 8 5.304 5,506 16,647 12,089 20,387 20, 513 20,893 21, 596 22,293 22,364 23,587 25,118 25,681 17,526 11,830 19,747 19,116 19,816 20,439 21,119 20,845 22,448 23,983 24,604 1,335 1,087 2,132 2,237 2,314 2,080 2,386 2,467 2,532 2,390 2,321 1,681 827 846 68 46 56 59 65 70 68 63 61 85 89 179 101 120 95 119 91 109 156 112 4,750 4,358 6,111 6,336 6,698 7,026 7,168 7,605 8,012 8,676 8,899 5,847 4,676 6,507 6,429 6,900 7,128 7,273 7,677 8,281 8,812 9,030 128 96 189 185 273 196 280 260 288 321 251 1,180 2,738 2,941 3,517 3,743 4,104 4,582 4,975 5,929 5,915 •109 125 657 767 566 662 538 547 533 790 666 563 461 404 327 367 280 195 272 472 349 178 143 806 781 752 543 707 790 775 694 675 743 12,267 7,803 10,806 10,845 10,874 10, 789 10,846 10,940 11,063 11,104 11,215 595 300 482 512 454 464 462 461 441 418 432 122 788 95 90 83 70 61 68 59 51 51 3,517 3,057 5,436 5,615 6,096 6,088 6,510 6,816 7,097 8 8. 243 8,507 95 89 129 137 135 130 132 133 142 «142 144 698 146 464 377 331 466 511 629 607 •757 759 879 191 12 28 11 12 6 7 5 5 3 20 332 382 360 123 181 139 135 84 72 74 1,112 33 4 49 67 32 64 36 53 46 52 43 18 110 1,198 1,255 2,108 2,173 2,514 2,498 2,687 2,731 2,992 •3,568 3,542 40 22 597 128 423 334 291 411 442 553 524 •670 695 179 8 671 696 694 694 653 652 655 653 683 693 1 12 2 1 6,709 1929—Dec. 31 4,837 1933—June 30 5,371 1937—Dec. 31 5,352 1938—Mar. 7 5,368 June 30 5,410 Sept. 28 5,424 Dec. 31 5,467 1939—Mar. 29 5,496 June 30 5,530 Oct. 2 5,522 Dec. 30 New York City» 2,105 1929—Dec. 31 1,582 1933—June 30 1,606 1937—Dec. 31 1,596 1938—Mar 7 1,587 June 30 1, 589 Sept. 28 1,593 Dec. 31 1,592 1939—Mar 29 1,586 June 30 1,587 Oct. 2 1,592 Dec. 30 City of Chicago * 169 232 596 566 936 856 884 705 897 1,080 993 751 705 2,310 2,376 2,289 2,311 2,354 2,459 2,735 3,053 3,118 627 452 1,361 1,366 1,263 1,282 1,353 1,367 1,403 1, 555 1,578 13 34 27 22 31 32 35 22 26 37 42 156 122 200 213 300 322 321 342 318 323 348 133 203 179 135 208 198 235 178 235 957 912 1,041 870 1,438 1,372 1,523 1,585 1,688 1,250 1,666 1,747 1,739 1,354 1,270 1,386 1,455 1,597 1,182 1,565 1,632 1,676 947 5,229 1,002 3,764 1,470 6,870 1,632 6,848 1,951 6,934 1,862 7,078 1,940 7,214 2,106 7,326 7,654 6 2,210 2,485 8,017 2,485 8,176 5,547 3,708 6,743 6,455 6,668 6,843 7,034 6,899 7,331 7,803 8,002 5,711 3,054 5,968 5,957 5,738 5,908 6,224 6,183 6,255 6,677 6,866 5,091 2,576 5,143 4,963 4,863 5,013 5,215 5,087 5,272 5,736 5,896 •237 283 321 908 702 203 307 1,645 310 1,700 316 1,806 351 1,786 322 1,956 350 1,963 307 2,117 329 «2,473 363 2,614 42 87 207 170 221 204 181 141 197 195 167 32 16 23 17 23 24 29 26 22 27 24 8 46 64 92 86 62 83 83 60 60 80 332 358 445 445 443 439 452 452 471 469 483 58 1 8 16 16 21 9 12 17 21 10 423 349 300 108 192 121 146 120 170 123 160 158 190 76 312 256 234 266 356 424 420 415 410 435 4,433 2,941 4,161 4,198 4,238 4,209 4,233 4,276 4,320 4.319 4,362 371 208 266 269 262 233 269 243 233 198 240 41 1,604 388 1,315 34 2,389 33 2,461 31 2, 514 23 2,557 17 2,719 22 2,813 19 2,920 14 •3,307 14 3,516 169 72 149 101 126 114 154 114 135 131 172 39 116 78 66 68 108 143 137 136 133 154 6,390 3,833 5,504 5,508 5,499 5,488 5,509 5,557 5,619 5,632 5,677 133 86 158 159 144 147 147 153 145 148 140 61 285 61 56 52 46 44 46 40 35 35 777 809 812 711 796 889 917 801 813 742 555 959 1,073 1,008 969 1,128 1,176 1,130 1,073 1,090 2 6 3 3 310 259 528 576 688 636 658 834 746 19 7 879 •515 571 41 6 10 9 10 12 •14 9 •853 405 228 412 403 380 398 446 438 439 33 2 6 30 59 107 116 113 107 108 108 115 •116 117 64 15 34 34 32 43 57 64 69 •71 53 292 16 6 7 21 20 22 23 23 25 26 «26 26 3 1 1 1 2 2 2 2 2 •2 2 367 167 12 11 11 11 6 5 5 4 3 5 2 1929—Dec. 31 1933—June 30 1937—Dec. 31 1938—Mar. 7 June 30 Sept. 28 Dec. 31 1939—Mar. 29 June 30 Oct. 2 Dec. 30 Reserve City Banks 2,029 1929—Dec. 31 1,533 1933—June 30 1,735 1937—Dec. 31 1,736 1938—Mar. 7 1,753 June 30 1,764 Sept. 28 1,777 Dec. 31 1,795 1939—Mar. 29 1,812 June 30 1,821 Oct. 2 Dec. 30 1,828 Country Banks 2,258 L929—Dec. 31 1,517 1933—June 30 1,775 1937—Dec. 31 1,774 1938—Mar. 7 1,778 June 30 1,801 Sept. 28 1,798 Dec. 31 1,818 1939—Mar. 29 1,828 June 30 1,852 Oct. 2 1,851 Dec. 30 316 204 255 245 249 256 257 261 270 270 250 i Prior to Dec. 31,1935, excludes balances with private banks to the extent that they were then reported in "Other assets." Since Oct. 25,1933, includes time balances with domestic banks which on that date amounted to $69,000,000 and which prior to that time were reported in "Other assets". « Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and, prior to Dec. 31,1935, less cash items reported on hand but not in process of collection. * Includes "Due to Federal Reserve banks (transit account)," known as "Due to Federal Reserve banks (deferred credits)" prior to Dec. 31,1935. * U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. * Central reserve city banks 6 Partly estimated. Back figures—See Annual Report for 1937 (tables 52-58). APRIL 1940 327 WEEKLY REPORTING MEMBER BANKS-NEW YORK CITY AND OUTSIDE LOANS AND INVESTMENTS [Monthly data are averages of Wednesday figures. In millions of dollars.] Loans Investments Loans for Compurchasing Total meror carrying loans cial, securities and inOpen Real Loans Other indus- marestate to vest- Total trial, Total ket To loans banks loans ments and paper brokagriers To culand others tural dealers Date or month U. S. Government obligations Direct Other secuGuar- rities anBills i Notes Bonds1 teed Total Total—101 Cities 1939—February... October November. December.. 1940—January. February... 21, 527 22,571 22,966 23,353 23,157 23,220 8,197 8,421 8,573 8,802 8,587 8,520 3,760 4,279 4,354 4,400 4,331 4,317 323 317 314 319 320 328 795 552 613 759 651 611 533 505 501 506 496 481 1,145 1,181 1,187 1,189 1,184 1,184 102 35 37 46 49 54 1,539 1,552 1,567 1,583 1,556 1,545 L3,330 [4,150 14,393 L4,551 L4,570 L4,700 8,178 8,566 8,714 8,774 8,833 1940—Jan. 3 . . Jan. 10 _ Jan. 17. Jan. 21_. Jan. 31.. 23,087 23,131 23,212 23,183 23,174 8,674 8,646 8,579 8,536 8,499 4,353 4,363 4,330 4,316 4,295 315 314 323 325 321 700 669 644 630 614 504 501 500 489 485 1,188 1,187 1,180 1,182 1,183 50 51 45 43 54 1,564 1,561 1,557 1,551 1,547 .4,413 .4,485 .4,633 4,647 .4,675 Feb. Feb. Feb. Feb. 7... 14.. 21.. 28.. 23,199 23,202 23,211 23, 268 8,507 8,516 8,531 8,528 4,314 4,313 4,316 4,324 321 327 333 332 611 617 609 483 483 482 478 1,183 1,183 1,185 1,185 54 54 55 52 Mar. 6... Mar. 13.. Mar. 20.. 23,355 23,437 23,398 8,591 8,616 8,606 4,355 4,367 4,379 333 628 477 476 473 1,184 1,183 1,185 56 48 50 1939—February October November December. 1940—January February 7,676 8,538 8,847 9,057 8,752 8,810 2,901 2,895 2,972 3,108 2,980 2,918 1,357 1,661 1,688 1,700 1,671 1,650 125 115 114 114 110 112 644 430 483 590 503 465 187 173 171 176 171 161 1940—Jan. 3 . . Jan.10. Jan.17. Jan. 24.. Jan. 31.. 8,703 8,709 8,789 8,762 8,798 3,025 3,028 2,977 2,946 2,926 1,672 1,693 1,672 1,666 1,653 111 111 109 109 108 538 519 498 487 475 Feb. Feb. Feb. Feb. 7-_. 14_. 21.. 28.. 8,790 8,785 8,812 8,853 2,921 2,918 2,923 2,909 1,654 1,650 1,645 1,651 109 111 114 113 Mar. 6... Mar. 13.. Mar. 20.. 8,894 9,013 9,036 2,953 2,970 1,664 1,675 1,684 13,851 14,119 14,296 14,405 14,410 5,296 5,526 5,601 5,694 5,607 5,602 14,384 14,422 14.423 14,421 14,376 7— 14.. 21.. 28.. Mar. 6... Mar. 13.. Mar. 20-. 561 706 672 658 642 2,132 2,167 2,039 1,757 1,746 5,873 5,841 6,063 6,418 6,474 1,891 2,232 2,338 2,412 2,410 2,419 3,261 3,352 3,341 3,365 3,327 3,419 8,703 8,777 8,913 8,896 8,877 595 649 711 687 1,755 1,767 1,761 1,757 1,747 6,353 6,361 6,441 6,452 6,482 2,412 2,400 2,411 2,412 2,414 3,298 3,308 3,309 3,339 3,384 1,544 1,545 1,543 1,548 .4,692 8,910 .4, 686 8,855 .4, 680 4,740 8,851 659 638 623 647 1,755 1,752 1,743 1,735 6,496 6,465 6,464 6,469 2,411 2,420 2,425 2,421 3,371 3,411 3,425 3,468 1,546 1,550 1,553 ,764 .4,821 .4, 792 8,900 8,943 8,941 672 673 645 1,725 1,780 1,796 6,503 6,490 6,500 2,400 2,387 2,369 3,464 3,491 3,482 110 116 114 113 112 112 396 375 376 378 372 370 4,775 5,643 5,875 5,949 5,772 5,892 2,634 3,314 3,512 3,525 3,365 3,368 358 528 499 274 187 788 841 806 710 722 2,168 2,143 2,220 2,381 2,459 974 1,123 1,177 1,227 1,228 1,268 1,167 1,206 1,186 1,197 1,179 1,256 176 176 177 166 162 112 112 111 112 112 374 373 372 371 370 5,678 5,681 5,812 5,816 5,872 3,285 3,299 3,415 3,408 3,418 300 288 280 260 240 706 704 705 717 717 2,279 2,307 2,430 2,431 2,461 1,233 1,215 1,226 1,228 1,240 1,160 1,167 1,171 1,180 1,214 467 465 472 457 161 161 160 160 112 112 113 112 370 370 369 370 5,867 5,889 5,944 3,394 3,349 3,358 3,369 192 177 179 201 723 722 722 719 2,479 2,450 2,457 2,449 1,259 1,273 1,272 1,270 1,216 1,245 1,259 1,305 117 116 115 482 504 485 159 159 159 112 113 113 5,941 370 6,033 3,373 3,465 3,520 190 180 185 710 785 830 2,473 2,500 2,505 1,263 1,247 1,236 1,305 1,321 1,310 2,403 2,618 2,666 2,700 2,660 2,667 198 202 200 205 210 216 151 122 130 169 148 146 346 332 330 330 325 320 1,035 1,065 1,073 1,076 1,072 1,072 1,143 1,177 1,191 1,205 1,184 1,175 8,555 8,507 8,518 8,602 8,798 5,544 5,252 5,202 5,249 5,468 5,494 1,344 1,326 1,233 1,047 1,024 3,705 178 173 384 455 3,843 4,037 4,015 917 1,109 1,161 1,185 1,182 1,151 2,094 2,146 2,155 2,168 2,148 2,163 5,649 5,618 5,602 5,590 5,573 2,681 2,670 2,658 2,650 2,642 204 203 214 216 213 162 150 146 143 139 328 325 323 323 323 1,076 1,075 1,069 1,070 1,071 1,190 1,188 1,185 1,180 1,177 8,735 8,804 8,821 8,831 5,418 5,478 5,498 5,488 5,459 295 361 431 427 408 1,049 1,063 1,056 1,040 1,030 4,074 4,054 4,011 4,021 4,021 1,179 1,185 1,185 1,184 1,174 2,138 2,141 2,138 2,159 2,170 14, 409 14,417 14,399 14,415 5,586 5,598 5,608 5,619 2,660 2,663 2,671 2,673 212 216 219 219 141 146 145 152 322 322 322 318 1,071 1,071 1,072 1,073 1,174 1,175 1,174 1,178 8,823 8,819 8,791 8,796 5,516 5,506 5,472 5,482 467 461 444 446 1,032 1,030 1,021 1,016 4,017 4,015 4,007 4,020 1,152 1,147 1,153 1,151 2,155 2,166 2,166 2,163 14,461 14.424 14, 362 5,638 5,636 5,636 2,691 2,692 2,695 218 217 223 156 155 143 318 317 314 1,072 1,070 1,072 1,177 1,180 1,184 8,823 8,788 8,726 5,527 5,478 5,421 482 493 460 1,015 995 966 4,030 3,990 3,995 1,137 1,140 1,133 2,159 2,170 2,172 New York City Outside New York City 1939—February October November December 1940—January February ___ 14,033 1940—Jan. 3 Jan. 10 __ Jan. 17 Jan. 24........ Jan. 31. ._.. Feb. Feb. Feb. Feb. 1 Not reported separately prior to February 8,1939. NOTE.—For description of figures see BULLETIN for November 1935 (pp. 711-738) or reprint, which may be obtained from the Division of Research and Statistics, and BULLETIN for June 1937 (pp. 530-531). For back figures see BULLETIN for November 1935 (pp. 711-738) or reprint, BULLETIN for December 1935 (p. 876), Annual Report for 1937 (tables 66-67) and corresponding tables in previous Annual Reports. 328 FEDERAL RESERVE BULLETIN WEEKLY REPORTING MEMBER BANKS—NEW YORK CITY AND OUTSIDE RESERVES AND LIABILITIES [Monthly data are averages of Wednesday figures. In millions of dollars.] Demand deposits, except interbank ReBalserves Dewith Cash ances mand Fedwith dein eral vault do- posits Remestic adserve banks justed ^ banks Individuals, States Certiand part- polit- fied and nerical offiships, subcers' and divi- checks, coretc. porations Interbank deposits Time deposits, except interbank IndiDomestic vidbanks uals, States and U.S. part- polit- P o stal ForGov- nerical saveign ern- 3 ships, subings 2 Debanks and ment diviTime cormand pora- sions tions Bor- Cap ital rowacings counts Date or month Total 101 Cities 7,358 9,957 9,803 9,630 10,065 10, 273 410 482 484 532 484 473 2,543 3,062 3,103 3,063 3,087 3,104 9,831 9,923 10,070 10,245 10,258 604 509 474 477 458 3,140 18, 566 18,474 18,823 18, 520 3,116 18,979 18,825 3,074 19,163 18,790 3,067 19,199 18,843 10,181 10,214 10,306 10,390 485 462 480 3,075 3,107 3,128 3,104 10,411 10,477 10,318 457 476 461 461 411 448 501 465 458 631 526 523 558 566 561 5,170 5,040 197 5,062 181 5,043 207 5,057 202 5,067 199 6,175 7,722 7,847 7,838 7,955 7,997 113 123 122 122 124 124 563 793 720 740 740 745 3,682 1939—February 3,719 October 3,721 November 3,713 December 3,713 1940—January 3,719 February 1,227 1,223 1,209 1,244 1,332 496 439 467 420 503 574 571 560 564 561 5,072 5,069 5,050 5,046 5,047 199 200 204 203 205 8,066 7,862 7,998 7,942 7,906 124 124 125 124 123 740 731 751 743 738 3,714 1940—Jan. 3 3,715 Jan. 10 3,706 Jan. 17 3,711 Jan. 24 3,717 Jan. 31 18, 596 18,918 18,902 18, 929 1,317 1,295 1,300 1,432 430 591 416 563 561 561 559 5,054 5,059 5,071 5,085 198 196 201 201 7,995 8,064 7,967 7,960 124 124 124 125 741 760 745 732 3,719 3,719 3,720 3,719 Feb. Feb. Feb. Feb. 3,111 19, 341 18,895 3,181 19, 507 19,158 3,191 19,251 18,829 1,344 1,345 1,362 448 416 419 560 560 559 5,099 5,142 5,146 201 198 185 8,094 8,142 8,158 125 126 126 728 730 751 3,725 3,719 3,722 Mar. 6 Mar. 13 Mar. 20 299 240 265 116 49 49 50 47 44 495 702 650 674 675 1,484 1939—February October . 475 , November ,479 December ,482 487 1940—January February ,490 191 179 193 237 269 262 295 253 321 9,020 223 222 201 272 9,061 9,111 9,027 215 205 194 16,042 18,511 18, 742 18,862 18,946 19, 210 19,108 19,062 19,256 19, 414 16,997 18,277 1,302 18,392 1,465 18,673 1,316 18,690 1,247 1,336 7 14 21 28 New York City 4,288 5,701 5,504 5,361 5,853 6,055 6,844 8,259 8,330 8,391 8,515 8,796 7,209 8,394 240 8,406 328 8,555 240 8,663 200 5,735 5,735 5,820 5,972 6,004 8,301 8,407 8,483 8,657 8,727 8,485 8,639 8,678 8,754 8,858 5,989 5,963 6,088 6,181 8,719 8,659 8,821 8,763 8,827 6,198 6,156 6,124 8,977 8,992 8,908 621 615 626 620 617 613 3,381 3,438 3,406 3,471 3,473 51 50 45 45 45 625 618 617 614 611 3,500 3,408 3,500 3,463 3,485 672 239 276 432 246 44 44 44 44 610 609 615 617 3,497 3,478 678 3,450 682 671 285 252 252 44 44 44 619 670 672 3,502 3,525 3, 567 230 679 673 665 485 1940—Jan. 3 Jan.10 Jan.17 Jan. 24 Jan. 31 ,485 1,486 1,487 1,490 1,491 1,491 1,490 1 , •"" 1,492 1,489 Feb. Feb. Feb. Feb. 7 14 21 28 Mar. 6 Mar. 13 Mar. 20 Outside New York City 3,070 4,256 4,299 4,269 4,212 4,218 358 402 403 441 406 394 2,469 2,989 3,027 2,979 3,007 3,023 9,198 10,252 10,412 10,471 10,431 10,414 9,788 9,883 1,062 9,986 1,137 10,118 1,076 10,027 1,047 9,949 1,106 162 171 183 197 185 160 515 477 474 508 519 517 4,549 4,425 156 4,436 143 4,423 171 4,440 166 4,454 166 3,536 4,341 4,409 4,432 4,484 4,524 113 122 121 121 123 123 2,198 1939—February October 2,244 November 2,242 December 2,231 2,226 1940—January 2,229 February 4,096 4,188 4,250 4,273 4,254 424 428 397 401 383 3,058 2,957 3,035 2,995 2,985 10,265 10,416 10,496 10, 506 10,472 9,981 10,147 10,036 9,985 1,024 1,032 1,030 1,051 1,095 227 177 172 167 182 623 521 515 519 516 4,447 4,451 4,433 4,432 4,436 165 164 164 167 169 4,566 4,454 4,498 4,479 4,421 123 123 124 123 122 2,229 1940—Jan. 3 Jan. 10 2,230 Jan.17 2,220 Jan. 24 2,224 Jan. 31 2,227 4,192 4,251 4,218 4,209 390 404 384 399 2,998 3,024 3,045 3,024 10,389 1,094 10,403 13,091 1,073 10,435 9,964 1,099 10,428 9,909 1,160 157 154 159 170 519 517 517 515 4,444 4,450 4,456 4,468 168 165 165 165 4,498 4,586 4,498 4,510 123 123 123 124 2,228 2,228 2,230 2,231 Feb. Feb. Feb. Feb. 4,213 4,321 4,194 397 386 3,031 10, 364 9,834 3,099 10,515 10,047 3,106 10, 343 9,802 163 164 167 516 516 515 4,480 4,472 4,474 170 167 157 4,592 4,617 4,591 124 125 125 2,233 2,230 2,233 Mar. 6 Mar. 13 Mar. 20 1,129 1,140 1,168 7 14 21 28 i Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. » U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. APRIL 1940 329 WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS LOANS AND INVESTMENTS [In millions of dollars] Loans Federal Reserve district and date (1940) Boston (6 cities) loans and invest- Total ments Investments Loans for U. S Government obligations 5. Compurchasing or carrying mercial, securities Direct in- Open Other Real Loans Other dus- marsecuestate to Total trial, ket To Guar- rities loans banks loans and paper brok- To anagriers others teed Total Bills Notes Bonds culand tural dealers February 28 March 6 ._ __ > _ March 13 March 20 1,169 1,179 1,171 1,176 609 618 617 617 300 299 299 66 66 67 23 22 22 19 20 19 19 81 1 1 128 128 129 129 560 561 554 559 385 386 379 390 February 28 March 6 March 13 March 20 _ Philadelphia (4 cities) February 28 March 6 March 13 March 20 9,665 9,703 9,824 9,846 3,263 3,306 3,334 3,326 1,765 1,777 1,789 1,799 119 123 122 122 462 487 509 490 215 214 214 214 198 198 198 198 46 50 43 45 458 457 459 458 6,402 6,397 6,490 6,520 3,596 3,600 3,694 3,747 1,164 1,166 1,148 1,150 421 425 427 429 197 200 202 202 25 25 25 27 24 24 25 25 31 31 31 31 50 50 49 50 1 1 1 1 93 94 94 93 743 741 721 721 370 370 348 348 February 28 1,931 1,935 March 6 ._ _ 1,931 March 13 1,932 March 20 Richmond (12 cities) February 28 _ _ 714 715 March 6 710 March 13 - _ 691 March 20 Atlanta (8 cities) 627 February 28 ._ 628 March 6 634 March 13 638 March 20 Chicago (12 cities)* 3,401 February 28 March 6 _. - ._ _ 3,411 3,442 March 13 3,379 March 20 __ 684 693 697 701 259 9 174 2 9 8 9 22 268 273 273 193 194 195 199 1,247 1,242 1,234 1,231 834 831 822 820 263 264 265 266 115 115 116 117 73 74 74 74 451 451 445 425 333 333 328 307 309 307 308 307 89 90 91 91 318 321 326 331 144 148 152 152 112 112 111 111 2,490 2,499 2,530 2,471 February 28 _ . March 6 March 13 March 20 Minneapolis (8 cities) February 28 March 6 March 13 March 20 Kansas City (12 cities) February 28 March 6 March 13 _._ March 20 Dallas (9 cities) February 28 March 6 March 13 March 20 57 57 56 56 New York (8 cities)* Cleveland (10 cities) 292 67 21 25 81 81 81 22 21 21 25 25 25 173 173 172 17 16 16 16 2 3 3 3 15 15 15 15 41 41 41 41 167 164 164 163 4 4 4 4 6 6 6 6 11 11 11 11 31 31 31 31 911 912 912 908 537 537 534 37 37 37 72 73 72 35 72 114 115 115 538 37 39 38 43 690 723 721 727 331 332 330 ono 193 193 193 191 11 11 11 11 5 6 5 5 12 12 12 12 52 52 52 52 433 437 402 406 189 192 190 191 99 102 100 101 4 4 4 4 1 1 1 1 7 7 7 7 10 10 10 10 686 683 296 298 299 301 177 179 20 20 4 4 20 21 4 4 10 10 535 534 532 180 180 179 2 2 2 3 3 4 531 271 270 270 269 2 4 February 28 March 6 March 13 March 20 2,253 2,241 2,238 2,237 981 974 967 963 343 340 339 339 17 18 18 18 February 28 March 6 March 13 March 20 2,304 2,318 2,335 2,273 567 564 561 554 389 387 379 380 18 18 18 18 St. Louis (5 cities) San Francisco (7 cities) City of Chicago* _ 684 685 179 179 178 2 2 2 11 41 207 192 186 191 6 6 6 6 332 328 338 54 55 54 49 121 120 121 120 752 745 822 867 2,637 2,663 2,686 2,689 1,347 1,339 1,324 1,313 1,459 1,458 1,472 1,460 31 31 31 31 13 13 14 339 339 317 317 99 99 99 99 274 272 274 274 176 652 124 125 126 126 289 286 286 285 41 38 38 169 158 157 333 656 658 657 177 180 177 153 156 153 151 154 53 52 51 52 65 66 66 66 2 1 1 1 28 32 34 38 114 115 117 113 71 70 70 74 103 103 104 105 1,705 1,727 1,755 1,702 342 362 389 287 285 290 282 1,076 1,080 1,076 1,066 283 271 268 262 502 501 507 507 359 391 391 399 185 216 215 222 14 38 43 44 34 34 33 33 137 144 139 145 71 71 72 72 103 104 104 105 68 68 68 68 244 245 212 215 181 181 147 150 30 • 30 1 1 35 35 30 33 116 116 116 116 19 19 21 21 44 45 44 44 28 28 57 57 58 58 390 385 385 384 180 176 177 175 10 11 68 68 102 97 68 67 142 142 142 143 14 13 13 22 22 22 155 155 153 153 44 43 43 51 51 51 19 41 92 93 91 22 264 264 262 262 19 19 19 13 50 50 50 50 93 51 58 58 58 58 20 21 16 12 47 47 46 44 384 383 383 384 170 165 165 166 1,272 1,267 1,271 1,274 783 777 773 775 6 3 62 62 57 57 715 715 714 715 181 181 185 184 308 309 313 315 33 33 38 30 63 63 63 63 14 14 14 14 50 49 49 49 1,737 1,754 1,774 1,719 1,243 1,264 1,283 1,235 342 362 389 354 163 162 164 156 738 740 730 725 153 150 146 139 341 340 345 345 10 10 1 1 1 1 115 28 29 1 1 1 1 354 13 12 2 67 66 97 97 66 66 * Separatefiguresfor New York City are shown in the immediately preceding table, and for the city of Chicago in this table. Thefiguresfor the New York and Chicago districts, as shown in this table, include New York City and Chicago, respectively. 330 FEDERAL RESERVE BULLETIN WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS RESERVES AND LIABILITIES [In millions of dollars] Reserves DeBalwith Cash ances mand Feddewith in eral vault do- posits Remestic ad- 1 serve banks justed banks Interbank deposits Time deposits, except interbank Demand deposits, except interbank Domestic IndiIndibanks vid- States Certivid- States uals, uals, and and Forpart- polit- fied U. S. part- polit- Postal and eign nerGov- nersavoffiical ical banks ships, subships, sub- ings 2 erncers' ment 2 and Deand mand Time cor- divi- checks cor- divipora- sions etc. pora- sions tions tions Capital accounts 245 246 246 246 1 2 1 1 323 330 335 338 49 45 44 36 3 3,526 3,580 3,605 3,646 17 17 17 17 673 666 667 687 1,610 1,614 1,612 1,612 258 259 259 259 3 3 3 3 1 1 1 1 419 427 426 422 14 15 15 15 5 5 5 5 215 216 216 215 47 47 47 47 722 723 722 722 22 25 25 25 2 417 435 427 422 39 39 39 39 1 1 1 377 377 377 377 32 33 197 198 3 3 6 6 97 95 33 32 197 197 3 3 302 307 1 309 308 6 6 95 97 4 4 4 5 43 43 43 43 183 183 183 183 6 6 6 6 2 2 2 2 286 298 306 305 4 3 4 4 93 93 93 93 280 279 278 277 35 35 36 32 128 128 128 128 944 946 946 947 12 12 12 12 6 6 7 7 1,183 1,198 1,224 1,221 10 10 10 10 484 475 486 477 44 44 45 43 7 6 5 6 15 15 15 15 187 188 187 187 3 3 3 3 2 2 2 2 362 363 355 352 6 6 6 6 294 289 295 289 266 257 262 255 51 53 51 52 7 6 6 6 1 2 2 1 119 119 119 119 1 1 1 1 160 161 164 158 2 2 2 2 523 526 547 494 496 519 78 79 78 11 10 10 23 23 23 144 145 143 3 2 2 1 1 1 7 7 7 1 422 429 423 422 7 479 490 513 510 142 141 142 142 175 172 174 176 1,188 1,191 1,204 1 204 1,138 1,138 1,152 1 152 96 97 101 100 17 15 15 17 13 13 13 13 233 233 234 234 2 3 3 3 6,360 6,392 6,339 6,292 100 94 98 94 217 220 224 223 9,644 9,656 9,679 9,589 9,507 9,548 9,606 9,512 506 424 418 406 261 300 269 268 64 64 64 64 983 986 1,037 1,040 443 435 454 448 21 20 21 21 223 226 224 226 954 939 939 969 952 962 952 35 36 40 47 9 10 9 9 54 53 53 54 561 568 574 560 45 43 46 44 334 341 342 330 1,329 1,324 1 338 1,313 1,298 1,290 1,320 1,289 101 94 92 96 19 17 17 17 184 188 23 21 210 213 498 498 484 483 48 48 10 10 195 185 22 22 214 241 502 495 491 482 48 47 11 14 123 129 131 131 14 13 14 14 220 226 230 226 404 404 407 407 377 378 390 381 72 72 73 75 1,212 1,204 1,228 1,195 64 59 62 59 553 558 546 542 2,614 2,599 2,616 2,508 2,471 2,462 2,490 2,368 241 211 198 188 12 12 13 12 198 186 195 192 488 477 480 475 95 94 114 102 7 6 7 7 93 89 110 106 186 198 940 • 204 190 16 15 16 318 321 325 15 325 534 506 79 10 23 143 2 131 136 141 12 11 12 292 290 301 472 464 483 451 450 467 50 49 49 9 10 9 31 31 31 8 9 9 130 11 300 475 455 48 14 31 127 127 127 -127 8 24 22 23 20 271 269 296 304 1,006 974 1,016 1,023 990 966 1,013 1,000 71 69 72 92 27 25 25 21 108 108 108 108 988 992 988 988 90 90 88 84 291 289 296 296 894 898 902 884 28 26 27 26 239 234 232 222 1,759 1,759 1,745 1,655 1,707 1,710 1,709 1,611 140 141 135 131 19 20 18 17 80 80 80 80 491 491 491 491 11 11 11 11 1 3 3 5 5 269 277 272 900 911 941 936 2 9 8 9 9 1 1 1 2 20 386 387 388 390 59 59 58 58 103 104 104 104 1 20 20 20 1 1 95 95 95 95 1 1 1 268 375 366 386 387 20 23 23 22 Borrowings 87 87 87 87 20 21 21 21 352 352 348 348 8 7 247 247 248 249 Federal Reserve district and date (1940) Boston (6 cities) February 28 March 6 March 13 March 20 New York (8 cities)* February 28 March 6 March 13 March 20 Philadelphia (4 cities) February 28 March 6 March 13 March 20 . Cleveland (10 cities) February 28 March 6 March 13 March 20 Richmond (12 cities) February 28 March 6 March 13 March 20 Atlanta (8 cities) February 28 March 6 March 13 March 20 Chicago (12 cities)* February 28 March 6 March 13 March 20 St. Louis (5 cities) February 28 March 6 March 13 March 20 Minneapolis (8 cities) February 28 March 6 March 13 March 20 Kansas City (12 cities) February 28 March 6 March 13 March 20 Dallas (9 cities) February 28 March 6 March 13 March 20 San Francisco (7 cities) February 28 March 6 March 13 March 20 City of Chicago* February 28 March 6 March 13. March 20 * See note on preceding page. 1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 8 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. APRIL 1940 331 COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING [In millions of dollars] Dollar acceptances outstanding Held by Commercial paper outstanding i End of month Total outstanding Total Imports Exports Dollar from exinto U. S. change U.S. Goods stored in or shipped between points in Foreign countries U. 8. 187 . logo Januarv February Mi arch April May June July August _ For account of Others For Bills own ac- foreign bought count correspondents „«... October __ _ _ November D ecember 1940—January February 270 212 121 91 68 95 60 3 57 56 195 195 191 192 189 181 194 201 209 205 214 210 255 248 245 238 247 245 236 235 216 221 223 233 204 198 191 189 192 191 188 191 177 179 172 175 122 122 117 118 124 122 119 128 115 111 103 105 82 76 74 72 68 69 69 63 62 67 69 70 62 50 54 49 55 53 48 44 39 42 51 57 89 87 87 86 82 81 75 79 78 85 96 103 57 57 68 56 51 45 41 40 40 40 37 39 2 2 2 1 19 20 19 18 18 18 16 16 62 48 42 38 36 39 39 40 43 46 50 54 55 54 56 57 59 60 61 59 36 32 24 22 219 226 229 233 179 188 111 123 68 65 50 45 101 95 38 44 16 15 51 51 23 27 333 1938—December Federal Reserve banks Accepting banks Own bills Based on 1 As reported by dealers; includes some finance company paper sold in open market. Less than $500,000. Back figures.—See Annual Report for 1937 (table 70). a CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OF STOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS [Member firms of New York Stock Exchange. Ledger balances in millions of dollars] Debit balances End of month Credit balances Customers' credit balances Debit Customers' balances in debit partners' balances investment (net) i and trading accounts Debit balances in firm investment and trading accounts Cash on hand and in banks Money borrowed « Free l Other (net) Other credit balances In In partners' firm In investinvestcapital ment and m e n t and accounts trading trading (net) accounts accounts 1937—March June September 1,549 1,489 1,363 985 61 55 48 34 175 161 128 108 223 214 239 232 1,172 1,217 1,088 688 346 266 256 278 115 92 96 85 29 25 26 26 18 13 12 10 419 397 385 355 1938—March June September December 831 774 823 991 29 27 29 32 95 88 76 106 215 215 213 190 576 495 559 754 239 258 257 247 81 89 68 60 25 22 20 22 9 11 7 5 315 298 300 305 1939—February March. . _> _ April May June July August _ _ > _ . September October November December 967 953 831 828 834 839 792 856 894 914 906 29 27 26 26 25 24 22 20 21 20 16 83 84 83 76 73 84 71 64 72 77 78 168 174 190 183 178 183 202 217 200 195 207 709 699 679 561 570 589 556 520 577 623 637 222 226 236 230 230 238 235 305 289 272 266 62 59 60 69 70 67 58 87 76 67 69 20 20 20 21 21 20 20 22 21 21 23 5 9 7 6 6 6 6 11 9 8 7 294 294 290 284 280 278 275 283 284 282 277 1940—January _ February 886 893 15 16 70 72 198 195 602 616 262 253 71 74 22 23 6 7 272 271 1 Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and (2) of firms' own partners. * Includes both money borrowed from banks and trust companies in New York City and elsewhere in the United States and also money borrowed from other lenders (not including member firms of national securities exchanges). NOTE.—For explanation of these figures see "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the method by which the figures are derived and reported, distinguishes the table from a "statement of financial condition," and explains that the last column is not to be taken as representing the actual net capital of the reporting firms. Back figures.See BULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69) 332 FEDERAL RESERVE BULLETIN OPEN-MARKET RATES IN NEW YORK CITY [Per cent per annum] Prevailing rate l o n - Year, month, or week Prime commercial paper, 4 to 6 months COMMERCIAL LOAN RATES AVERAGES OF RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES Average rate on— Prime Stock Stock exexbankers' change change call accept- time ances, loans, loan re90 90 newdays days als [Per cent per annum] AverU. S. Treasage yield on ury bills U.S. TreasNew 91ury issues day 3-to-5 dealofyear ers' fered notes within quoperiod2 tation 1937 average.. 1938 average.. 1939 average.. .43 .44 .44 1.00 1.00 1.00 .447 .053 .022 1939— Feb Mar.... April... May... June.... July.... Aug Sept Oct Nov Dec 1940—Jan Feb..__. .44 .44 .44 .44 .44 .44 .44 .44 .44 .44 .44 .44 .44 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 .004 .005 .019 .006 .006 .017 .046 .102 .028 .018 .012 .004 .004 Week ending: Feb. 17... Feb. 24___ Mar. 2.... Mar. 9 Mar. 16.. Mar. 23__. 7/16 7/16 7/16 7/16 7/16 7/16 1.00 1.00 1.00 1.00 1.00 1.00 .006 .005 .000 Total 19 cities 7 other 11 SouthNorthern and ern and Western Eastern cities cities 3.45 2.93 2.68 2.59 2.53 2.78 3.71 3.39 3.04 2.88 2.75 2.87 4.32 3.76 3.40 3.25 3.26 3.51 1.70 1.70 1.65 1.70 1.70 1.70 1.70 1.67 1.70 1.70 1.70 1.70 2.92 2.65 2.64 2.60 2.64 2.78 2.78 2.71 2.74 2.90 2.68 2.95 3.28 3.21 3.28 3.25 3.20 3.31 3.35 3.28 3.26 3.21 3.20 3.23 2.64 2.52 1.73 1.70 2.97 2.69 3.32 3.26 2.65 2.00 2.75 3.25 2.95 2.91 2.68 2.59 1939—March June September... December.,. 2.45 1.76 1.72 1.73 1.69 2.07 2.60 2.49 2.48 2.48 2.48 2.56 2.57 2.52 2.53 2.57 2.49 2.60 1934 average 1935 average 1936 average 1937 average 1938 average 1939 average 1 1.40 Monthly figures .83 .59 1938—January February March .63 April .51 May .50 June .42 July .39 August .45 September .48 October 1.07 November... .77 December.... .64 .51 .47 1939—January .46 February Quarterly figures 1938—September .46 .43 .42 .42 .43 New York City 2.13 2.15 2.04 1.96 3.05 3.05 2 78 2.59 3.77 3.62 3.31 3.32 i Averages for 1939 and quarterly figures are on revised basis and are i Monthly figures are averages of weekly prevailing rates. 3 Series comprises 273-day bills to October 15, 1937, bills maturing therefore not strictly comparable with the earlier series of annual and about March 16,1938, from October 22, to December 10,1937, and 91-day monthly figures. bills thereafter. 3 Back figures—See November 1939 BULLETIN, pp. 963-969 for descripKate negative. Back figures.—See Annual Report for 1937 (tables 43 and 44). Figures tion and for back figures. for Treasury bills and Treasury notes available on request. BOND YIELDS1 [Per cent per annum] U. S. Treasury * Year, month, or week 1939—February March April. May June July . Total By ratings Aa Aaa A Industrial Baa By groups RailPublic road utility 2-6 . . . . . . . . . August September October November December 1940—January February Week ending: Feb. 24 Mar. 2 Mar. 9 Mar. 16 Mar. 23 ... . 15 120 30 30 30 30 40 40 40 2.68 2.56 2.36 Number of issues 1937 average 1938 average ._ 1939 average Corporate4 Municipal 3 3.10 2.91 2.76 3.94 4.19 3.77 3.26 3.19 3.01 3.46 3.56 3.22 4.01 4.22 3.89 5.03 5.80 4.96 3.55 3.50 3.30 4.34 5.21 4.53 3.93 3.87 3.48 2.44 2.34 2.30 2.17 2.13 2.16 2.21 2.65 2.60 2.46 2.35 2.30 2.32 2.70 2.67 2.75 2.66 2.63 2.65 2.75 3.29 3.08 2.69 2.56 2.54 2.60 3.81 3.74 3.84 3.78 3.71 3.66 3.67 3.95 3.83 3.70 3.69 3.63 3.60 3.00 2.99 3.02 2.97 2.92 2.89 2.93 3.25 3.15 3.00 2.94 2.88 2.86 3.26 3.22 3.22 3.16 3.13 3.08 3.11 3.49 3.35 3.16 3.14 3.08 3.05 3.94 3.87 3.97 3.92 3.86 3.83 3.80 4.05 3.94 3.78 3.74 3.69 3.68 5.05 4.89 5.15 5.07 4.91 4.84 4.85 5.00 4.88 4.85 4.92 4.86 4.83 3.29 3.29 3.35 3.30 3.23 3.18 3.21 3.57 3.43 3.25 3.21 3.14 3.12 4.63 4.46 4.66 4.60 4.47 4.42 4.41 4.58 4.51 4.44 4.47 4.39 4.37 3.52 3.48 3.51 3.45 3.42 3.39 3.40 3.70 3.57 3.41 3.38 3.35 3.33 2.32 2.33 2.28 2.24 2.24 2.61 2.65 2.63 2.57 2.56 3.60 3.61 3.60 3.59 3.58 2.85 2.86 2.85 2.85 2.84 3.05 3.06 3.06 3.05 3.04 3.67 3.68 3.67 3.66 3.65 4.82 4.84 4.83 4.80 4.80 3.11 3.12 3.11 3.11 3.09 4.37 4.38 4.39 4.37 4.37 3.33 3.33 3.32 3.30 3.28 1 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures. 2 Average of yields of all outstanding bonds due or callable after 12 years; see BULLETIN for December 1938, pp. 1045-1046 for description. * Standard Statistics Co. 4 Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa and Aa groups have each been reduced from 10 to 4, and the railroad Aaa group from 10 to 5. Back figures—See Annual Report for 1937 (table 80). Figures for U. S. Treasury bonds available on request. APRIL 1940 333 BOND PRICES1 STOCK MARKET 3 Year, month, or date Corporate U. S. Treas- Municury 2 ipal Total Indus- Rail- Utility trial road Number of issues. 2-6 101.7 103.4 106.0 1937 average 193S average 1939 average 110.3 113.7 116.3 20 15 93.4 78.9 81.6 90.1 82.9 86.0 Stock prices * Year, month, or date 20 58.6 58.0 Common (index, 1926=100) Total Industrial Railroad Utility 20 420 348 32 40 136.2 135.6 141.2 112 83 131 99 105 20 100.4 95.3 100.9 Preferred * N u m b e r of issues. _ 1937 average 1938 average 1939 average Volume of trading* (in thousands of 1,619 100.7 1,100 101.3 973 99.7 101.0 1939—February 141.8 106 708 101.6 March 142.3 108 999 102.1 April 140.4 96 964 101.7 May 141.8 97 548 143.9 101 98.6 June 507 143.7 101 100.5 July 821 142.3 101 101.8 August. 706 136.2 109 101.6 2,595 September... 137.7 113 101.8 1,050 October 140.7 111 101.6 907 November 141.4 108 808 December... 143.0 109 Feb. 21 87.2 678 106.5 118.9 82.2 57.8 101.6 1940—January 142.9 107 106.4 87.1 654 118.2 81.9 57.1 101.6 Feb. 28 February 107.2 87.3 118.6 82.1 57.3 101.7 Mar. 6 107.6 87.5 119.8 82.3 57.4 101.9 .142.2 Mar. 13—_ Feb. 28 107 107.4 87.2 119.9 82.0 56.9 101.8 142.1 Mar. 20__._ Mar. 6 676 108 142.1 Mar. 13 108 763 141.4 Mar. 20 107 1 M o n t h l y data are averages of daily figures except for municipal bonds, which are averages of Wednesday figures. 2 Average prices of all outstanding bonds due or callable after 12 years, i Standard Statistics Co. Monthly data are averages of Wednesday based on quotations from Treasury Department. Prices expressed in figures. decimals. * Average prices of industrial high-grade preferred stocks, adjusted to a 1 Prices derived from average yields, as computed b y Standard Sta- $7 annual dividend basis. tistics Co. * Average daily volume of trading in stocks on the New York Stock Back figures.—See Annual Report for 1937 (table 79). Figures for U. S. Exchange. Weekly figures are averages for the week ending Saturday. Treasury bonds available on request. Back figures.—For stock prices, see Annual Report for 1937 (table 79). 1939—February.. March April May June July __ August September. October..,. November. December.. 1940—January.... February.. 104.8 106.0 106.6 108.3 109.1 108.9 108.2 101.9 102.6 104.6 106.1 106.8 106.6 117.3 117.9 116.4 118.1 118.6 118.3 116.5 107.1 110.7 117.5 119.9 120.2 119.1 82.1 83.1 79.4 80.2 81.4 81.6 81.0 80.9 82.9 83.0 82.1 82.4 82.2 86.4 87.1 83.8 84.8 86.2 86.3 85.8 85.0 86.4 87.0 86.8 87.3 87.3 59.0 60.9 54.5 54.8 56.2 56.4 55.5 59.0 61.6 60.2 58.0 58.2 57.8 CAPITAL ISSUES [In millions of dollars] ]For Year or month Total (new and refunding) 1930 1931 1932 1933 1934 >_ 1935 1936 1937 1938 1939 7,619 4,038 1,751 1,063 2,160 4,699 6,214 3,937 4,448 5,825 1939—Feb For refunding Domestic / j _ Domestic Total (doCorporate FedFor- mestic eral eign * and Total agenBonds forcies » Total and Stocks eign) notes mestic and forTotal eign) State and municipal 6,912 6,004 3,095 2,860 1,197 1,165 720 708 1,386 1,386 1,457 1,409 1,972 1,949 2,138 2,094 2.359 2,323 2,276 2,227 1,434 1,235 762 483 803 855 735 712 971 931 87 75 77 64 405 150 22 157 481 924 4,483 1,551 325 161 178 404 1,192 1,225 872 371 2,980 1,239 305 40 144 334 839 817 807 280 1,503 311 20 120 35 69 352 408 65 92 908 235 32 12 0 48 23 44 35 50 706 944 554 343 774 3,242 4,242 1,799 2,089 3,548 527 893 498 283 765 3,216 4,123 1,680 2,061 3,460 53 21 87 37 136 365 382 191 129 195 44 105 64 94 234 65 56 16 42 67 68 59 58 310 4 2 2 0 203 0 10 276 0 0 0 1 24 53 78 22 30 50 26 16 18 21 27 32 45 17 43 48 18 22 40 23 14 14 15 21 18 43 7 20 0 (») 0 10 0 20 0 0 0 0 0 0 163 79 214 1,196 312 272 347 138 404 129 235 189 347 163 76 161 1,180 312 272 332 138 403 129 235 189 347 10 15 11 8 39 18 13 8 10 13 22 26 114 561 241 358 1.313 586 590 449 180 740 218 330 279 451 Mar Apr May June July Aug Sept Oct Nov Dec 1940—Jan Feb new capital 397 162 144 117 274 318 102 42 336 89 95 91 104 377 162 144 117 264 318 82 42 336 89 95 91 104 10 31 3 9 10 3 2 4 6 6 14 3 State and municipal Federal agencies i Total 0 51 93 26 317 987 353 281 665 1,537 17 15 21 1,021 21 74 18 51 235 26 19 29 22 Corporate Foreign 2 Bonds and Stocks notes 474 821 319 219 312 1,864 3,387 1,209 1 267 1,728 451 789 315 187 312 1,782 3,187 856 1 236 1,591 23 32 4 32 0 81 200 352 31 137 179 51 56 60 9 26 119 119 28 136 47 129 151 252 180 301 79 157 91 194 133 211 1«1 46 166 131 249 143 292 79 157 88 188 98 196 35 (») 23 20 2 38 9 0 (3) 3 0 3 53 16 G 0 15 0 2 0 C 0 0 7 36 14 88 i Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. * Includes issues of noncontiguous U. S. Territories and Possessions. »Less than $500,000. Source.—For domestic issues, Commercial and Financial Chronicle; for foreign issues, U. S. Department of Commerce. Monthly figures subject to revision. Back figures —See Annual Report for 1937 (table 78). 334 FEDERAL RESERVE BULLETIN UNITED STATES GOVERNMENT DEBT—VOLUME AND KIND OF DIRECT OBLIGATIONS [On basis of daily statements of United States Treasury. In millions of dollars] Noninterestbearing Interest-bearing Publicly-offered» Total gross debt End of month Bonds Total interest bearing Total Pre- Treas- U.S. ury* savings Notes Bills 616 954 1,404 2,053 2,354 2,303 1,154 105 92 118 156 1,071 926 1,309 1,310 1,311 1,309 1,308 1,308 1,309 1,307 1,306 1,405 1,454 1,455 1,307 1,308 826 825 827 826 825 839 833 829 795 791 791 789 787 785 1932—June 1933—June 1934—June 1935—June 1936—June 1937-June 1938—June 19,487 22,539 27,053 28,701 33,779 36,425 37,165 •18,816 •21,782 •26,006 26,910 31,297 35,800 33,734 36,576 33,463 753 753 753 753 79 79 79 13,460 13,417 15,679 14,019 17,168 19,936 21,846 62 316 800 1,238 1,261 4,548 6,653 10,023 11,381 10,617 9,147 1939—January... February.. March April May June July August September. October. __ November. December. 1940—January ___ February— 39,631 39,859 39,985 40,063 40,282 40,440 40, 661 40,891 40,858 41,036 41, 305 41,942 42,110 42, 365 35,469 35,533 35,579 39, 525 35,627 39,751 35,680 35, 715 40,114 35,798 40,351 35,862 40,342 40, 526 36,026 40,807 36,123 41,445 36,826 41,601 36,957 41,839 37,097 79 79 79 79 79 79 79 79 79 79 79 79 79 79 24,005 24,005 25,218 25,218 25,218 25,218 25,218 25,218 25,218 25,218 25,218 26,881 26.896 26.897 1,580 1,643 1,701 1,751 1,806 1,868 1,949 2,015 2,051 2,092 2,140 2,209 2,473 2,610 8,496 8,496 7,270 7,270 7,270 7,243 7,243 7,243 7,232 7,232 7,232 6,203 6,203 6,203 19,161 22,158 26,480 27,645 39,097 39,326 39,442 AdSocial justed seservice curity issues* i4 All other« Matured debt 19 579 1,601 240 284 356 580 601 560 644 54 231 169 119 141 2,046 2,207 2,257 2,294 2,442 2,511 2,542 2,722 2,746 2,796 2,981 3,021 3,049 3,152 756 761 779 780 805 820 941 938 915 912 911 809 807 805 109 112 125 122 117 142 140 133 112 109 114 132 Other 315 518 825 620 506 447 425 421 419 416 414 411 408 406 404 401 400 398 395 394 1 2 8 Excludes postal savings bonds, formerly sold to depositors in the Postal Savings System. Includes Liberty bonds. Includes adjusted service bonds of 1945 and special issues of adjusted service bonds and of notes to Government Life Insurance Fund series and 4of certificates to the adjusted service fund. Includes special issues to old-age reserve account, unemployment trust fund, and railroad retirement account. 5 Includes postal savings bonds and special issues to retirement funds, to Postal Savings System and to Federal Deposit Insurance Corporation. • Includes certificates of indebtedness not shown separately: 1932—$2,726,000,000; 1933—$2,108,000,000; 1934—$1,517,000,000. FULLY GUARANTEED OBLIGATIONS, BY AGENCIES x MATURITIES OF PUBLICLY-OFFERED DIRECT OBLIGATIONS FEBRUARY 29, 1940 [In millions of dollars] [In millions of dollars] Maturing 1940—Before Apr. 1 Apr. 1-June 30 July 1-Sept 30 Oct. 1-Dec. 31 1941—Jan. 1-Mar. 31 Apr. 1-June 30 July 1-Dec. 31 1942 1943. 1944 1945 . 1946 1947 1948 1949 1950 . 1951 1952 1953 1954 1955 1956 1958 1959 1960 . . . . 1961 1963 1965 Total . . Bonds callable i Bonds Date maturing or callable Total Notes 480 1,997 _ Bills 402 906 77. 738 737 677 504 204 1,001 1,050 1,214 737 677 504 1,039 1,001 1,595 1,214 2,117 1,840 2,818 1,993 1,658 921 1,223 2,436 2,893 2,663 755 489 982 2,611 50 919 1,485 37,097 1,308 6,203 U. S. Sav- Other ings 353 1934—June.. Dec... 1935—June.. Dec— 1936—June.. Dec... 353 1937—June.. Dec... 1938—June.. 545 834 E n d of Month 834 1938—Nov... Dec._. 1939—Jan. _. Feb... Mar.. Apr... May.. June.. July.. Aug... Sept.. Oct... Nov... Dec... 1940—Jan.. Feb. _ Comu. s. ReconHome Federal Owners' struction modity HousFarm Finance Credit Total Mortgage Loan ing Corpora- Corpora- Corpora- Corpora- Authortion tion tion 2 tion ity 681 3,063 4,123 4,494 4,718 4,662 4,665 4,645 4,853 312 980 1,226 1,387 1,422 1,422 1,422 1,410 1,410 134 1,834 2,647 2,855 3,044 2,988 2,987 2,937 2,937 235 249 250 252 252 252 255 297 299 206 4,993 4,992 4,987 5,410 5,410 5,410 5,409 5,450 5,480 5,583 5,455 5,448 5,707 5,703 5,699 5,674 1,388 1,388 1,383 1,381 1,381 1,380 1,379 1,379 1,379 1,379 1,279 1,279 1,269 1,269 1,269 1,269 2,888 2,888 2,888 2,888 2,888 2,888 2,888 2,928 2,958 2,858 2,830 2,823 2,817 2,813 2,809 2,784 511 509 509 819 819 819 820 820 820 820 820 820 1,096 1,096 1,096 1,096 206 206 206 206 206 206 206 206 206 409 409 409 407 407 407 407 114 545 1,855 114 2,555 114 1,941 1,755 114 2,372 1,519 114 1,460 2,399 114 2,246 1,487 114 2,278 819 114 1,186 571 114 3,489 1,223 114 2,436 114 2,893 114 2,663 114 755 "~2,"6ll 489 982 919 i Principal amount of obligations guaranteed as to interest and princi982 2,611 "l~485 pal. Excludes obligations held by U. S. Treasury and reflected in the 50 50 public debt. The total includes guaranteed debentures of the Federal 919 Housing Administrator, amounting to $3,606,000 on February 29, 1940. 1,485 » Excludes obligations guaranteed as to interest only. For August 1939 and subsequent months includes matured bonds not presented for retire2,610 26,976 26,976 ment amounting to $53,000,000 on February 29, 1940. 175 321 419 506 839 2 350 * Excludes U. S. savings bonds. Other bonds in the amount of $2,577,000,000 not callable prior to maturity are shown as of date of maturity. Bonds that have been called are shown as maturing on date of call. 3 Includes unclassified U. S. savings bonds. APRIL 1940 335 SUMMARY OF TREASURY OPERATIONS [On basis of daily statements of United States Treasury. In millions of dollars] General and special accounts General Period Trust Increase or decrease during acperiod counts, 6 etc Excess excess of reof receipts ceipts Trans- (+)or ReRe(+)or volv- fers to covexexing trust pendi- pendi- General ery Gross funds accts., tures and 5 tures fund relief (net) 4 etc. ) balance6 debt Expenditures i Receipts Total MiscelSocial In- secur- laneous All intercome Total nal ity taxes' taxes * reve- other nue June 1937 June 1938 J u n e 1939 5,294 6,242 5,668 2,163 2,640 2,189 253 755 740 2,181 2,279 2,232 697 567 507 8,442 7,626 9,210 863 926 941 1,436 1,556 1,627 1,994 2,178 2,761 3,073 2,238 3,105 8 months ending: Feb. 1938 Feb. 1939 Feb. 1940 3,860 3,653 3,503 1,275 1,243 581 557 599 1,581 1,514 1,598 339 397 4,738 5,859 6,128 472 511 1,022 1,082 1,260 1,339 1,758 2,252 1,320 2,028 1,615 1939—February March April May June July August September... October November... December.... 1940—January February 417 737 268 397 613 308 420 719 322 407 569 315 444 56 606 40 43 356 42 38 329 38 34 319 45 63 182 4 30 124 25 142 183 155 187 192 187 217 311 198 191 171 167 154 37 45 42 42 39 43 46 52 50 52 50 57 49 National Inter- deAll est on fense other and debt Veterans' Adm.' Fiscal year ending: 119 27 36 130 29 45 178 17 120 66 10 272 15 18 151 68 12 190 38 19 662 870 785 744 951 807 822 784 764 691 880 712 122 136 133 136 140 145 152 147 154 157 164 173 209 243 258 279 223 259 254 261 305 282 275 317 299 Period Unemployment . trust fund 267 550 639 267 461 516 8 months ending: Feb. 1938. _. Feb. 1939 Feb. 1940 453 381 365 50 68 55 50 85 65 66 50 63 53 58 10 10 1939—February March April May June July August. September October November December 1940—January February _ (7) -878 -2, 207 -2, 626 -245 -132 -517 +428 -499 -402 -65 -442 -284 -311 -398 -224 -113 -44 - 1 2 8 +2,646 -338 +740 +622 +3,275 +421 +1, 208 +91 +460 +1,128 +2, 694 +1,926 +211 +52 +93 +9 +95 +46 —1 +267 -16 +37 +36 +410 +46 -346 -119 -86 -391 -216 -53 -264 +252 +311 -194 +67 +227 +127 +78 +219 +158 +222 +230 -34 +178 +269 +637 +167 +256 Details of general fund balance (end of period) Net expenditures in checking accounts of Government agencies ReconComWith- struction modity InIn- Bene- ReAll Refit vest- pay- ceipts vest- drawals Finance Credit other by ceipts ments ments States Corpora- Corporaments tion tion Fiscal year ending: June 1937. June 1938. June 1939 -3,149 -1,384 -3,542 50 68 55 50 56 167 66 50 53 53 58 85 10 254 297 266 262 252 220 321 170 175 182 194 185 168 Details of trust accounts, etc. Old-age insurance trust fund and railroad retirement account +374 +306 +890 607 685 526 456 452 204 121 92 All other, excess of receipts (+) or expenditures InWorkIncreSeigning Total active ment iorage balon gold ance gold (_)9 294 763 838 293 560 395 1 191 442 8 329 89 8 658 8 112 8 184 136 127 8 11 8 246 +60 +87 +116 2,553 2,216 2,838 1,087 85 120 141 142 142 356 446 536 970 1,628 2,160 398 293 268 46 77 82 471 601 686 422 313 373 41 284 311 8 37 8 510 8 244 24 134 8 26 86 8 191 146 +54 +58 +70 2,975 3,343 2,350 1,201 142 142 143 421 508 573 1,212 2,693 1,634 50 50 50 40 83 45 51 43 43 43 43 10 11 10 11 11 10 10 10 10 10 10 10 10 148 34 34 137 32 58 154 13 54 144 29 79 155 111 36 44 41 32 41 42 41 40 24 29 32 58 45 8 326 86 8 60 3 8 86 16 29 22 15 8 297 85 820 85 8 112 8 37 8 27 12 82 144 96 8 74 4 8 19 10 8 11 84 -1 +14 +11 +23 +11 +13 +5 +10 +15 +6 3,343 3,389 3,044 2,924 2,838 2,447 2,231 2,178 1,913 2,166 2,476 2,282 2,350 142 142 142 142 142 142 142 142 143 143 143 143 143 508 515 522 528 536 644 649 554 558 561 565 568 573 2,693 2,732 2,380 2,254 2,160 1,761 1,539 1,481 1,213 1,462 1,768 1,571 1,634 8 13 108 8 13 8 14 129 8 19 7 142 83 28 103 (7) 2 5 84 (8)(7) 6 8 86 5 19 27 11 8 6 83 +7 +18 r Revised to include unjust enrichment tax formerly shown under "other internal revenue." Excludes debt retirements. Includes taxes under Social Security Act and on carriers and their employees. 3 Excludes expenditures for adjusted service which are included under "Transfers to trust accounts, etc." 4 Includes revolving funds of Public Works Administration and Farm Credit Administration. 5 Includes expenditures for retirement funds, adjusted service certificate fund, old-age insurance trust fund and railroad retirement account; except for the adjusted service certificate fund, these appear as receipts under "Trust accounts, etc." 6 7 Details given in lower section of table. Less than $500,000. * Excess of credits. 9 Includes other trust accounts, increment resulting from reduction in weight of the gold dollar, expenditures chargeable against increment on gold (other than retirement of national bank notes) and receipts from seigniorage. 1 2 336 FEDERAL RESERVE BULLETIN GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, JANUARY 3 1 , 1940 [Based on compilation by U. S. Treasury Department from reports rec<iived from organizations concern ed. In millions of dollars Reconstruction H o m e mortgage and housing agencies Farm credit agencies Finance Corporation Other United Home and States Public Owners' mort- HousLoan gage Works ing Admin- Corpo- agenAucies thority istration ration Farm mortgage agencies Other Farm Credit Adm. banks and corporations Tennessee ValComley modity Credit Other AuthorCorpoity ration Total Insurance Other Jan. Dec. agen31, 31, cies 1940 1939 Jan. 31, 1939 ASSETS Loans and preferred stock: Loans tofinancialinstitutions. Preferred stock, etc. Loans to railroads Home and housing mortgage loans 207 210 (l) 157 40 2,031 199 484 474 1 30 134 Farm mortgage loans 2.588 Other agricultural loans All other loans 2 Total loans and preferred stock Cash 69 75 1,619 20 48 _ . U. S. Govt. direct obligations Obligations of Government credit agencies: Fully guaranteed by U S 262 1 460 663 2,588 61 93 338 82 172 663 1 (*) 0) 11 32 4 0) 2,238 177 4 406 45 38 134 4 3 13 Other 6 8 25 Accounts and other receivables Business property Property held for sale Other assets 39 2 8 3 501 2 0) 1,761 2,934 509 1,096 2,810 96 91 134 34 (0 Total assets other than interagency 8 5 2 131 204 6 106 8 0) 0) 0) 2 3 191 325 4 516 19 11 0) 6 307 69 40 409 350 14 4 105 25 8 2,376 2,588 1,121 1,100 444 816 500 445 869 512 2,365 2,329 2,596 2,719 1,130 750 1,100 902 8,920 8,951 8,527 474 460 421 770 758 728 130 40 384 553 652 140 130 41 379 549 661 133 140 39 343 460 698 158 5 C1) 64 1 4 10 540 325 702 617 12,064 12,062 11,515 0) 696 425 807 504 41 96 1 111 274 3,065 641 114 5 1,270 6 982 102 204 10 189 197 8 7 3 3 232 58 5,700 5,704 4,987 1,340 1,348 1,372 995 1,019 757 LIABILITIES Bonds, notes, and debentures: Guaranteed by United States... Other 6 Other liabilities (including reserves). Total liabilities other than interagency 6 ._. (0 407 1,192 2,901 167 119 2,353 214 596 197 15 238 67 8,059 8,048 7,117 Excess of assets over liabilities, excluding interagency transactions. Privately owned interests 569 33 342 51 155 711 204 427 4 100 344 310 464 139 550 4,005 4,014 4,398 383 388 397 U. S. Government interests 569 33 291 155 507 423 100 344 310 325 tm 3,607 3,617 4,015 1 Less than $500,000. 2 Includes $79,000,000 loans of Public Includes $259,000,000 loans of F a r m Includes $191,000,000 loans of Rural Excludes Federal land bank bonds Includes, however, investments in Finance Corporation. N O T E — F o r explanation of table, see 3 4 5 6 Works Administration. Security Administration. Electrification Administration. held b y Federal Farm Mortgage Corporation. securities of agencies (other than mentioned in footnote 5) and deposits of agencies with Reconstruction BULLETIN for October 1938, p . 882. RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS [Amounts outstanding. In thousands of dollars] Feb. 28, Aug. 31, Sept. 30, Oct. 31, Nov. 30, Dec. 31, Jan. 31, 1939 1939 1939 1939 1939 1939 1940 Loans tofinancialinstitutions Loans on preferred Stock of banks and insurance companies. Preferred stock, capital notes, and debentures Loans to railroads (including receivers) Loans for self-liquidating projects _ _ Loans to industrial and commercial businesses Loans to drainage, levee, and irrigation districts Other loans Securities purchased from Public Works Administration... Total loans and investments, other than interagency. Preferred stock of Export-Import bank Loans to Rural Electrification Administration Capital stock of, and loans to R. F. C. Mortgage Co Capital stock of, and loans to Fed. Natl. Mtge. Assn Loans to Tennessee Valley Authority Total loans and investments _ 199,183 33, 779 526,153 436,139 187,301 110,664 82,494 26,988 136, 725 178,833 33,181 517,125 177,011 33,162 515,157 73,844 123,042 83,462 23,812 122,986 85,264 125,753 83,502 23,847 124,476 175, 795 33,127 513, 200 436,650 89,872 126,863 83,482 23,274 126,649 173,363 33,094 490,099 444,314 93,068 130,026 83,750 4,046 127,290 172,154 33,029 488, 673 448, 792 79,440 130,625 83,998 4,081 120,808 166,799 32, 319 484,21] 454,194 65,873 130,378 83,814 4,093 117,876 Feb. 29, 1940 162,852 29,994 476,395 458,841 66, 501 131, 919 83,874 4,180 117, 603 1, 739,427 1, 595,121 1,607,006 1,608,911 1,579,050 1, 561,599 1,539,557 1, 532,160 45,000 49,848 51,691 17, 234 3,000 45,000 146,498 54,903 44,438 8,300 45,000 146,498 54,629 46,500 8,300 45,000 146,498 55,102 50,323 8,300 1,906,200 1,894,260 1,907,932 1, 914,133 45,000 146,498 56,047 54,538 8,300 45,000 146,498 57,081 58,729 8,300 45,000 146,498 58,045 63,233 8,300 74,000 146,498 58,124 65,806 8,300 1,877,207 1,860,632 1,884,888 NOTE.—For explanation of table and backfigures,see BULLETIN for April 1936, p. 220. APRIL 1940 337 FARM CREDIT ADMINISTRATION LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In thousands of dollars] Federal intermediate credit bank loans to and discounts for— Farm mortgage loans by- Regional agricultural Other credit cor- financing Land porations, instituFederal Bank tions, land banks Commis- production credit asexcept sioner sociations, cooperaand banks tives for cooperatives i End of month Loans to cooperatives b y - EmerProduc- Regional agriculgency tion credit tural cred- crop and associait corpo- drought tions rations loans 1934—December. 1935—December. 1936—December. 1937—December. 1938—December. 1,915,792 2,071,925 2,064,158 2,035,307 1,982,224 616,825 794,726 836,779 812,749 752,851 99,675 104,706 129,872 165,194 168,392 55,672 47,162 41,017 40,464 33,545 60,852 94,096 105, 212 138,169 148,037 87,102 43,400 25,288 15, 592 11,081 111, 238 172,863 165,369 172, 701 171,489 1939—FebruaryMarch April May June July August September. October ___ November. December. 1940—January February _ . 1,968,790 1,960,357 1,954, 677 1,947,944 1,940, 586 1,934,013 1,928,166 1,922, 577 1,916,431 1,910,336 1,904,655 1,900,408 1,896, 507 740,870 733, 647 728,489 723,187 717,622 712,823 708,426 703,840 699,274 695,101 690,880 687,191 683, 694 166, 996 175,362 182, 643 186,588 190, 359 189,044 187, 968 179,674 169, 731 165, 368 165,236 161,753 165,106 34,115 35,318 36,483 38,124 39,794 40,657 41,661 37,645 33,996 33,417 33,354 33, 620 34,738 155,409 167,867 177,792 183,351 187,712 187,844 185,215 174,032 162, 703 156, 526 154,496 153,949 160,003 10,689 10,399 10,298 10,286 10,235 10,003 9,599 9,127 8,351 8,042 8,005 7,904 7,926 171,000 176,110 179,756 180,434 180,166 179, 356 178,271 175,667 171,819 169,460 168, 330 167,957 170,020 Federal intermediate credit banks Banks for Agricultural cooperMarketatives, ing Act including revolvCentral ing fund Bank 2,731 1,641 1,813 920 1,152 1,528 1,256 596 127 778 1,493 1,696 1,835 1,756 2,002 27,851 50,013 69,647 87,633 87,496 54,863 44,433 53,754 73,692 65,783 61,363 60,465 59,677 62,124 61,404 65,160 70,422 73,120 76,252 73, 238 71,772 23,631 23,305 23,190 23,061 22, 592 22,189 22,422 21,663 21,582 20,589 20,547 20,427 20,038 23,723 i Some of the loans made by the regional agricultural credit corporations (prior to October 1935) and by the banks for cooperatives and most of the loans made by the production credit associations are discounted with the Federal intermediate credit banks. The amounts in this column are thus included in the three 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 POSTAL SAVINGS SYSTEM LOANS OUTSTANDING, BY INSTITUTIONS [In millions of dollars] [Loans in thousands of dollars] Home mortgage loans by— End of month Federal savings and loan associations Home Owners' Loan Cor- Number poration of associations Loans * 1934—December. 1935—December. 1936—December. 1937—December. 1938—December. 2,379,491 2,897,162 2,765,098 2,397,647 2,168,920 639 81,300 1,023 348,000 586,700 1,212 1,328 853,500 1,368 1,034,162 1939—January February... March April May June. July August September.. October November.. December,.. 1940—January February... 2,149,038 2,134,261 2,117, 598 2,105,824 2,091,324 2,080, 512 2,067,844 2,059,792 2,054,865 2,049,421 2,043, 288 2,038,186 2,031, 341 2,026, 614 1,370 1,375 1,375 1,381 1,383 1,386 1,385 1,392 1,394 1,394 1,401 1,410 1,403 1,407 1,040,770 1,051,109 1,067,887 1,089,879 1,117,228 1,136,289 1,157,536 1,186, 784 1,206,887 1, 231, 685 1,252,559 1, 271,161 1,280, 200 1,296,464 Federal home loan bank loans to member institutions » 86,651 102,791 145,394 200,092 198,840 End of month 1935—June. . 1936—June.. 1937—June.. 1938—June.. 1939—January.... 178,852 February 170,614 March 161,614 April 157,176 May 157,911 June 168,962 July 161,537 August 159,470 September 163,687 October. 168,654 November 168,822 December 181,313 1940—January 156, 788 February... 144, 515 U. S. Government Depossecurities Cash Cash itors in derebal- 1 Di- Guar- serve ances Total posiantory rect teed funds, banks Total obli- obli- etc 8 gagations tions 1,205 1,232 1,268 1,252 1,236 1,265 1,307 1,290 385 777 203 967 136 1,100 115 1,103 630 800 933 147 167 167 167 74 95 71 72 1,259 1,263 1,266 1,264 1,261 1,262 1,268 1,271 1,267 1,270 1,274 1,279 l 290 l, 297 1,299 1,304 1,309 1,306 1,305 1,304 1,310 1,314 1,307 1,311 1,317 1,319 1,137 1,144 1,153 1,154 1,157 1,157 1,172 1,174 1,182 1,182 1,182 1,192 971 978 166 166 167 166 146 146 146 146 146 146 146 146 79 79 76 76 75 79 80 84 70 75 80 74 1,011 1,011 1,026 1,028 1,036 1,036 1,036 1,046 p Preliminary. 1 Outstanding principal, represented by certificates of deposit. Does i Federal Home Loan Bank Board estimates for all Federal savings and loan associations. not include accrued interest nor outstanding savings stamps. »Excludes loans to other than member institutions which are negli2 Includes working cash with postmasters, 5-per cent reserve fund and gible in amount. miscellaneous working funds with the Treasurer of the United States, accrued interest on bond investments, and accounts due from.late postmasters. Back figures.—See BULLETIN for August 1935, p. 502 338 FEDERAL RESERVE BULLETIN PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers; 1923-25 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation] Industrial production i * Total Year Manufac- Construction contracts awarded (value) > Minerals Total Residential All other FacFactory em- tory ployment3 paymile 3 month Freight-car Department loadings * * store sales (value) Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Ad- Unad- Ad- Unadjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 84 87 67 86 101 94 105 108 106 112 119 95 80 63 75 78 90 105 109 84 105 83 87 67 85 101 95 104 108 106 111 119 96 81 64 76 79 90 105 110 86 105 „ 63 63 56 79 84 94 122 129 129 135 117 92 63 28 25 32 37 55 59 64 72 77 89 70 74 105 96 99 108 107 106 115 99 84 71 82 86 91 105 116 98 108 44 30 44 68 81 95 124 121 117 126 87 50 37 13 11 12 21 37 41 45 60 79 90 65 88 86 94 120 135 139 142 142 125 84 40 37 48 50 70 74 80 81 107 107 82 91 104 96 100 102 100 100 106 92 78 66 73 86 91 99 109 90 97 84 91 78 85 100 98 103 107 104 104 107 92 74 55 58 62 64 75 78 62 70 98 117 76 81 103 96 101 104 102 104 110 89 68 47 50 65 74 86 103 78 91 78 94 87 88 08 99 103 106 107 108 111 102 92 69 67 76 79 88 92 85 90 1937 Jan. Feb Mar April... May June July.... Aug Sept Oct Nov Dec 114 116 118 118 118 114 114 117 111 102 88 84 112 117 122 122 122 115 111 115 109 102 90 80 115 116 117 118 118 114 114 117 110 100 85 79 113 118 122 125 123 114 110 114 106 99 86 75 111 116 128 115 117 115 112 113 116 113 109 115 107 112 119 105 118 118 116 121 125 123 113 109 63 62 56 53 56 61 67 62 56 52 56 61 51 64 56 61 68 72 75 66 56 49 60 49 45 47 45 44 44 42 44 40 37 36 32 30 37 42 47 51 52 47 45 40 37 35 31 25 77 75 64 61 66 77 86 81 71 65 76 87 63 64 63 68 81 92 99 87 72 61 65 68 107 108 110 111 112 111 112 112 110 108 104 98 105 108 110 111 112 110 111 112 112 110 104 97 95 100 106 110 110 108 105 109 105 105 93 85 80 82 83 84 80 78 80 79 78 76 71 67 73 76 80 79 80 79 82 81 87 84 72 62 93 95 93 93 93 93 92 93 94 93 91 89 72 76 90 89 95 90 65 72 100 103 101 166 81 Feb 79 79 Mar April... 77 76 May 77 June July.... 83 88 Aug Sept..._ 90 Oct 96 103 Nov 104 Dec 79 79 80 78 77 77 81 87 91 97 104 98 76 75 75 73 73 74 82 87 89 95 103 104 75 76 77 76 75 75 79 85 89 95 103 98 108 103 104 100 92 93 93 95 97 98 102 110 104 99 96 91 90 92 93 97 102 106 105 103 52 51 46 52 51 54 59 66 78 82 96 96 42 44 46 59 61 63 65 69 79 78 85 77 26 32 33 37 37 42 49 53 56 57 56 67 22 28 35 43 44 46 49 52 56 56 54 48 73 66 56 65 62 64 68 77 96 102 128 128 59 66 55 73 76 76 78 84 97 96 111 100 93 92 90 88 86 85 86 88 89 90 93 94 91 91 91 89 86 84 85 89 92 92 93 94 75 78 78 76 73 71 71 77 82 84 84 87 65 62 60 67 58 68 61 62 64 68 69 69 59 57 67 55 57 58 62 63 71 75 70 64 90 88 86 83 78 82 83 83 86 84 89 89 70 70 77 80 80 79 58 65 01 02 09 156 101 99 98 92 92 98 101 103 111 121 124 128 100 99 100 95 94 98 97 99 112 124 124 120 100 97 96 92 91 97 100 104 111 121 124 129 99 98 100 96 94 97 95 99 110 122 123 121 110 110 110 95 98 104 106 91 114 121 124 120 105 105 102 88 97 105 107 96 123 132 127 113 86 73 69 67 63 63 67 73 73 76 83 86 70 63 69 76 75 73 73 76 73 72 74 69 65 58 55 68 55 58 62 67 68 68 61 60 45 51 58 68 65 64 63 66 68 66 59 51 111 85 80 74 68 67 71 78 76 82 101 107 90 72 79 83 84 80 81 84 77 77 87 84 95 94 94 94 93 94 95 96 98 101 103 105 92 94 94 94 93 93 94 96 100 104 104 104 84 86 88 86 85 87 84 90 94 102 102 104 69 67 66 60 62 67 69 70 77 80 82 78 63 62 63 58 62 67 70 71 85 89 83 73 88 87 88 88 85 86 86 89 91 90 95 96 69 69 82 88 87 83 60 69 07 00 106 168 119 *>109 117 PllO 118 P108 116 125 P109 *121 120 75 ?62 61 ?54 53 P55 44 93 P68 75 P58 104 ni6 102 *101 98 J>98 78 73 72 68 92 89 72 71 -1QOQ Jan 1QOQ Jan. Feb Mar April... May June July.... Aug Sept.... Oct.'.... Nov.... Dec 1940 Jan Feb P49 P102 p Preliminary. • Average per working day. i For indexes of groups and separate industries see pp. 340-341; for description see BULLETIN for February and March, 1927. * 3-month moving average of F. W. Dodge Corporation data ,centered at second month; for description see p. 358 of BULLETIN for July 1931. 1 The indexes for factory employment and payrolls unadjusted for seasonal variation are compiled by the Bureau of Labor Statistics. For description of the seasonally adjusted index of factory employment compiled by F. R. Board of Governors see BULLETIN for October 1938, pp. 836837, and for October 1939, p. 878. For current indexes of groups and separate industries see pp. 342-345. Underlying figures are for payroll period ending nearest middle of month. * For indexes of groups see p. 347. Back figures.—See Annual Report for 1937 (table 81). For department store sales see BULLETIN for October 1938, p. 918; for factory employment and payrolls see BULLETIN for October 1938, pp. 838-866, and for October 1939, pp. 879-887. APRIL 1940 339 INDUSTRIAL PRODUCTION, BY INDUSTRIES (Adjusted for Seasonal Variation) [Index numbers of the Board of Governors 1923-25 average=100] 1940 1939 Industry Feb. Jan. Mar. Apr. May June July 92 91 71 108 97 82 110 100 88 110 . Iron and Steel Pig iron Steel ingots. Transportation Equipment: Automobiles Locomotives Nonferrous Metals: Tin deliveries 1 Zinc Lead Cement and Glass: Cement Glass, plate _- _ _ _ Dec. Jan. 104 92 115 Ill 103 117 121 123 119 124 130 118 129 141 120 118 122 114 Feb. 97 84 109 96 80 110 76 106 88 73 89 83 75 84 79 66 80 73 55 75 89 73 90 100 81 102 105 91 107 121 101 123 157 119 160 167 125 171 173 126 178 143 119 145 111 102 112 105 12 100 12 91 14 87 14 73 15 81 15 87 15 89 19 85 23 78 24 90 20 127 18 128 19 127 66 89 70 72 87 73 76 90 69 92 91 71 102 89 82 93 90 87 91 68 99 93 71 97 98 71 95 110 70 119 117 83 165 121 70 78 181 114 •87 140 116 78 69 147 80 133 90 130 81 83 75 89 79 124 82 87 76 121 78 165 87 222 91 191 96 232 80 200 71 165 106 6 105 5 106 5 94 2 77 2 103 5 110 5 120 5 130 7 143 23 147 29 148 26 148 17 132 11 109 111 107 114 113 77 107 109 111 111 117 113 87 97 110 114 106 119 91 84 108 97 105 85 91 80 78 88 104 110 105 120 98 73 76 111 115 116 138 105 70 84 111 117 114 136 105 64 84 120 128 123 150 103 79 87 121 129 118 138 103 84 107 125 129 125 138 120 94 120 126 135 128 140 129 92 96 123 145 116 124 120 85 72 114 130 108 114 109 86 74 108 125 99 103 99 126 103 LO O 119 97 140 125 105 104 118 97 139 123 95 93 103 95 140 116 97 91 101 106 128 115 94 91 89 104 128 110 91 87 91 102 121 115 88 89 69 106 133 118 98 106 73 103 131 105 87 93 71 87 117 109 93 98 73 103 119 115 97 103 82 98 126 121 95 102 r 85 87 138 120 99 98 95 107 133 P119 87 74 97 111 150 92 106 83 67 100 108 157 94 70 89 73 106 110 156 97 78 90 81 99 105 135 100 94 94 84 104 108 142 95 72 87 73 103 104 143 100 66 89 77 102 107 145 96 81 92 84 100 104 139 88 77 100 95 102 111 146 103 96 99 99 95 110 144 91 91 100 100 94 110 154 82 85 99 99 95 100 147 91 128 100 95 102 108 158 90 105 100 95 105 102 145 92 79 165 79 237 78 162 77 231 78 164 78 236 80 164 77 236 81 170 75 246 85 170 75 247 84 158 73 227 80 168 76 241 89 164 76 235 85 166 75 240 83 172 74 250 87 186 79 273 89 167 83 239 • 74 170 77 247 79 61 125 61 127 62 126 63 130 65 127 63 132 63 126 63 130 65 142 63 137 64 131 65 140 64 129 68 132 205 262 112 145 106 201 256 113 138 117 202 256 122 140 111 209 265 122 143 115 211 269 124 143 119 215 276 122 144 121 212 273 117 139 115 218 280 123 140 128 221 284 118 148 123 232 296 118 155 149 228 293 109 150 141 221 280 108 150 145 214 265 106 162 138 108 112 76 106 111 >72 114 119 76 104 108 73 102 106 68 112 117 111 116 77 122 127 84 123 128 86 126 131 90 118 122 84 110 115 73 115 120 76 118 123 78 110 110 110 95 98 104 106 91 114 121 124 120 125 P121 75 69 171 79 61 169 77 61 173 31 80 174 90 69 86 91 71 101 77 53 127 78 93 71 79 84 71 174 97 98 71 104 94 58 181 128 110 70 91 91 60 187 155 117 83 91 P87 P51 P193 87 73 75 53 174 74 91 68 70 91 75 189 121 78 105 114 87 89 116 78 100 71 59 170 67 90 70 107 83 59 189 89 70 86 46 73 175 55 89 82 Products: Slaughtering and meat packing Hogs Cattle Calves Sheep Wheat flour Sugar meltings . Tobacco Products Cigars. Cigarettes Manufactured tobacco _ Paper and Printing: Newsprint production Newsprint consumption Petroleum Refining Gasoline * Kerosene Fuel oil» _ Lubricating oil' Rubber Tires and Tubes 1 Tires, pneumatic 1 _ Inner tubes l Minerals—Total _._ _ 71 77 P103 Pill COCO Products Tanning _ Cattle hide leathers Calf and kip leathers Goat and kid leathers Boots and shoes . P108 OO CO Byproduct Beehive _ Textiles . Cotton consumption. Wool Consumption. __ Machinery activity ! ._ Carpet and rug loom activity'. Silk deliveries Bituminous coal Anthracite Petroleum, crude Iron ore Zinc. Lead Silver Nov. 100 88 110 Coke: Food Oct. 93 72 95 Manufactures—Total Durable Nondurable JLeather and Aug. Sept. 131 i Without seasonal adjustment. * Preliminary. r Revised. NOTE.—Descriptive material and tables giving backfiguresmay be obtained upon request from the Division of Research and Statistics. Series on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper,finepaper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision. 340 FEDERAL RESERVE BULLETIN INDUSTRIAL PRODUCTION, BY INDUSTRIES (Without Seasonal Adjustment) [Index numbers of the Board of Governors 1923-25 average=100] 1939 Industry Jan. Manufactures—Total Feb. Mar. Apr. 1940 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. P114 Durable Nondurable 99 84 111 98 84 111 100 86 111 96 84 106 94 78 107 97 85 108 95 83 106 99 85 111 110 99 119 122 123 122 123 125 122 121 129 114 116 117 116 Iron and Steel Pig iron _ Steel ingots 90 71 92 92 75 93 93 79 96 87 70 89 79 56 81 89 72 90 93 77 95 103 87 105 120 98 122 152 119 156 155 126 158 152 124 155 138 118 139 116 104 117 105 11 100 12 105 14 106 13 88 15 91 14 66 15 28 20 59 24 93 24 108 22 142 19 128 17 127 _ 66 94 71 72 93 75 76 96 70 92 94 70 102 90 80 93 87 71 87 84 65 99 87 68 97 93 67 95 106 72 119 117 86 165 123 79 181 121 88 140 124 81 . 42 147 48 133 65 137 79 91 88 93 98 112 100 78 98 121 98 165 99 222 90 191 75 232 49 200 43 165 107 7 108 7 109 6 95 2 76 2 101 5 107 4 116 4 128 7 143 22 150 30 150 29 149 20 136 14 114 117 109 118 113 77 122 115 119 116 128 113 87 104 112 119 106 122 91 84 104 100 113 84 88 80 78 87 104 114 100 111 98 73 75 105 111 109 124 105 70 75 103 106 106 121 105 64 80 112 115 118 139 103 79 91 121 125 122 145 103 84 113 129 133 132 151 120 94 120 131 140 135 153 129 92 98 117 133 116 125 120 85 64 119 137 110 118 109 86 84 114 134 104 112 99 86 67 116 98 101 98 92 127 108 111 108 101 140 126 94 94 91 97 147 113 94 91 91 105 126 106 88 87 85 96 105 90 86 88 102 115 114 88 86 81 98 130 131 100 104 88 101 151 121 92 97 82 91 140 120 99 101 86 107 133 110 96 102 77 97 120 103 92 r 99 73 94 109 111 95 99 79 101 121 132 101 100 98 104 161 90 70 83 74 88 100 147 91 69 84 74 92 111 142 91 92 81 72 87 114 127 91 109 92 81 101 122 139 90 81 86 76 96 108 140 88 78 84 69 101 104 145 94 98 80 64 98 96 140 94 86 91 71 114 107 170 122 102 97 84 111 116 158 102 87 111 110 108 112 152 89 66 118 129 100 95 144 87 73 119 127 103 100 160 89 69 102 106 92 94 136 89 77 Tobacco Products. Cigars Cigarettes . . . . . Manufactured tobacco 157 61 232 79 147 67 211 79 156 71 224 81 161 72 215 78 172 78 248 85 186 81 272 86 171 76 249 80 180 80 261 91 181 87 259 93 179 92 252 86 175 88 247 85 151 59 224 73 158 64 234 75 155 66 225 80 Paper and Printing: Newsprint production . . . . Newsprint nonsmnption 62 120 61 125 61 131 64 139 66 131 64 131 62 112 61 116 64 139 63 146 63 140 65 144 65 124 68 131 Petroleum Refining Gasoline Kerosene Fuel oil Lubricating oil 205 262 115 145 106 202 256 115 138 117 201 256 119 140 111 208 265 121 143 115 211 269 119 143 119 215 276 113 144 121 211 273 108 139 115 217 280 116 140 128 221 284 121 148 123 233 296 124 155 149 229 293 117 150 141 222 280 117 150 145 214 265 108 162 138 108 112 76 106 '•111 '72 114 119 76 104 108 73 102 106 68 112 117 77 111 116 77 122 127 84 123 128 86 126 131 90 118 122 84 110 115 73 115 120 76 105 105 102 88 97 105 107 96 123 132 127 113 120 84 74 164 '84 66 166 77 50 171 26 83 174 96 70 94 94 70 102 68 44 178 150 84 65 59 75 53 129 159 87 68 78 90 72 179 187 93 67 98 104 74 183 218 106 72 90 102 62 185 130 117 86 98 101 81 181 93 75 108 63 51 173 132 87 71 105 88 58 184 94 71 86 40 73 177 82 90 80 69 123 79 106 121 88 90 Transportation Equipment: Automobiles Locomotives Nonferrous Metals: Tin deliveries Zinc Lead _ _ __ _ Cement and Glass: Cement Glass, plate P109 Coke: Byproduct Beehive _ Textiles _ Cotton consumption Wool Consumption Machinery activity Carpet and rug loom activity Silk deliveries Leather and Products— Tanning Cattle hide leathers __ Calf and kip leathers Goat and kid leathers Boots and shoes Food Products: Slaughtering and meat packing... Hogs Cattle . _ Calves __ _ Sheep Wheat flour Sugar meltings . _ _ Rubber Tires and Tubes . Inner tubes Minerals—Total Bituminous coal Anthracite Petroleum, crude Iron ore Zinc Lead Silver .. _ 118 123 78 *>93 pf-A P1S9 124 81 r p Preliminary. Revised. i Revised figures, 1939: leather and products, 115; boots and shoes, 129; rubber tires and tubes, 112. NOTE.—Descriptive material and tables giving back figures may be obtained upon request from the Division of Research and Statistics. Series on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision. APRIL 1940 341 FACTORY EMPLOYMENT, BY INDUSTRIES (Adjusted for Seasonal Variation) [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100] 1940 1939 Industry and group Jan. Feb. Mar. Apr. May June July Aug. Oct. Sept. Nov. Dec. Jan. Feb. 94.6 84.4 104.4 94.3 84.2 103.9 94.0 83.7 103.8 93.8 83.9 103.3 93.3 82.9 103.3 94.3 83.9 104.2 95.3 84.7 105.3 95.9 85.3 105.9 97.5 88.9 105.7 101.2 94.6 107.6 104.5 100.0 108.9 103.9 99.7 108.0 102.2 97.5 106.6 Iron Steel Products Blast furnaces, steel works Bolts, nuts, washers, rivets Cast-iron pipe Cutlery, edge tools Forgings Hardware Plumbers' supplies Stamped, enameled ware Steam, hot-water heating Stoves _ Structural, ornamental Tin cans, tinware Tools Wirework 90.7 95 96 72 90 64 89 74 144 74 82 63 94 83 154 90.4 94 96 73 89 65 87 74 143 74 84 66 95 84 152 90.7 94 97 73 90 54 87 74 147 75 85 67 95 84 151 90.5 95 94 73 90 55 84 74 144 75 84 67 96 84 148 89.6 94 93 73 86 55 80 75 142 74 85 67 95 84 142 90.3 96 93 71 91 54 72 76 147 75 86 66 95 84 135 90.6 96 94 72 91 56 70 77 147 78 89 67 95 81 128 92.5 97 98 73 94 56 78 78 157 79 88 69 98 85 121 96.4 101 102 74 97 59 95 80 159 80 86 71 97 87 149 105.9 110.8 112.1 124 122 115 120 118 113 79 79 77 107 109 102 72 70 66 106 106 99 83 85 81 166 166 162 86 87 84 93 91 90 76 76 75 ••103 '100 103 94 96 91 176 171 164 110.4 122 117 75 107 72 103 83 160 86 93 75 101 96 172 107.1 117 113 78 103 71 100 81 162 85 91 75 100 96 162 Machinery Agricultural implements Cash registers, etc. Electrical machinery Engines, turbines, etc Foundry, machine-shop products. Machine tools Radios, phonographs Textile machinery Typewriters 92.3 114 132 84 92 80 128 126 69 127 94.0 123 131 85 91 81 132 129 71 128 94.8 124 131 86 91 82 134 130 72 129 94.9 122 127 87 91 82 138 124 73 129 94.4 119 126 86 93 81 140 121 75 126 95.4 118 128 87 95 83 144 122 75 126 96.1 115 127 87 95 83 149 131 77 122 97.3 121 125 88 97 85 146 126 78 119 99.8 123 127 92 99 86 155 129 78 122 105.7 125 126 97 108 91 170 145 81 123 112.9 131 129 103 124 97 191 153 86 125 113.4 133 127 103 133 98 197 143 86 123 113.4 137 128 102 134 97 204 142 85 119 Transportation Equipment Aircraft Automobiles Cars, electric-, steam-railroad Locomotives _ Shipbuilding 94.1 900 102 35 19 106 92.9 966 98 38 17 113 91.2 87.2 88 9 90.0 99.5 105.6 101.3 rll2. 6 113.1 111.4 91.1 88.3 1,075 1,169 1,267 1,385 1 414 1,512 968 1,605 1,767 1,905 2,050 2,055 112 108 111 96 89 89 100 90 97 88 102 108 61 57 53 34 34 33 48 32 36 31 34 42 30 30 21 25 26 16 29 28 18 28 25 28 140 145 139 112 133 111 127 118 128 125 128 132 93.3 131 105 84 90 86 68 78 93.4 135 104 84 91 84 68 78 93.4 140 104 84 92 80 69 77 93.2 143 103 85 93 65.7 84 58 60 65.1 85 57 69 63.2 85 66 66 79.6 61 64 100 49 87 77.4 59 66 95 48 86 101.9 91.9 78 85 82 122 90 153 64 72 134 64 88 119.5 103 171 107 132 79 130 101.8 91.7 77 86 82 122 90 153 68 71 134 64 84 120.2 104 173 107 136 84 123 Total Durable goods Nondurable goods _ _ Nonferrous Metals, Products Aluminum Brass, bronze, copper... _. Clocks, watches Jewelry _. _ _ ._ _ Lighting equipment Silverware, plated ware._ Smelting, refining _. Lumber, Products Furniture. . _ ._ Lumber, millwork Lumber, sawmills. Stone, Clay, Glass Products Brick, tile, terra cotta Cement Glass Marble, granite, slate Pottery Textiles, Products Fabrics Carpets, rugs Cotton goods Cotton small wares Dyeing,finishingtextiles Hats, fur-felt . Hosiery _ Knitted outerwear Knitted underwear Knitted cloth... Silk, rayon goods Woolen, worsted goods __ „ Wearing apparel._ _ Clothing, men's... Clothing, women's Corsets, allied garments Men's furnishings Millinery.. Shirts, collars . 342 107.0 166 130 87 92 95 70 83 110.1 172 137 88 95 89 72 85 111.3 170 138 89 96 95 74 86 111.6 172 137 92 95 95 74 87 107.4 170 128 92 94 88 71 87 66.4 86 60 60 67.4 87 61 61 69.4 89 63 63 72.2 93 64 66 72.4 93 64 66 72.0 94 65 65 70.0 91 63 63 78.4 58 67 98 51 88 78.1 57 67 99 50 87 79.0 59 66 100 48 86 81.9 61 68 106 49 90 85.0 64 70 109 49 93 85.4 65 71 109 50 94 85.8 66 68 111 46 95 80.8 61 66 102 48 93 104.1 94.5 74 80 83 128 93 164 75 77 138 63 89 121.1 107 174 115 135 73 123 104.9 95.4 76 91 84 129 90 155 80 79 140 62 85 121.4 107 174 117 140 103.6 94.1 78 91 86 129 87 149 75 78 140 61 83 120.4 106 172 116 136 80 121 106.2 rlO7. 8 97.8 99.9 83 85 94 96 91 92 133 132 86 90 151 151 75 76 79 80 148 155 65 67 90 95 120.4 '120.4 107 108 171 171 117 117 127 138 74 80 123 121 106.1 97.1 84 95 91 131 92 146 68 79 146 64 89 121.6 112 171 117 122 75 ••123 104.7 95.3 85 94 88 127 91 145 62 80 144 62 85 121.2 110 167 117 120 79 132 102.8 93.4 83 93 83 124 90 145 68 77 136 58 81 119.3 106 169 114 121 83 124 92.8 145 105 82 91 73 68 77 94.6 153 106 84 94 75 70 76 96.2 157 109 85 95 77 64.2 85 57 57 64.8 84 56 59 65.3 85 59 59 66.0 86 59 60 77.4 58 66 95 53 85 77.9 68 67 97 53 84 75.4 65 63 96 52 84 77.5 57 66 98 50 87 101.0 91.0 77 85 80 122 87 154 70 70 134 65 81 119.2 104 171 107 132 84 121 99.6 90.2 77 85 78 121 86 154 67 70 133 65 77 116.4 103 165 109 128 81 119 99.8 91.0 74 85 80 124 84 153 68 73 128 66 81 116.2 102 161 111 125 80 120 101.2 92.0 73 86 79 120 89 152 72 74 138 63 86 117.5 104 169 114 129 74 120 77 110.6 128 127 100 116 95 183 160 85 125 99.2 152 115 85 91 88 71 77 92.8 142 104 84 90 76 68 77 68 78 103.4 97.3 109.2 70 75 77 121 FEDERAL RESERVE BULLETIN Factory Employment (Adjusted)—Continued [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100] 1939 1940 Industry and group Jan. Leather, Manufactures Boots, shoes Leather > Food, Products Baking Beverages Butter Canning, preserving __ C onfectionery Flour Ice cream Slaughtering, meat packing Sugar, beet Sugar refining, cane Tobacco Manufactures Tobacco, snuff Cigars, cigarettes Paper, Printing Boxes, paper Paper, pulp Book, job printing.Newspaper, periodical printing.— Chemicals, Petroleum, and Coal Products Petroleum refining Other than petroleum Chemicals Cottonseed oil, cake, meal Druggists' preparations ._ Explosives Fertilizers ._ Paints, varnishes Rayon, allied products . . . Soap _ Rubber Products Rubber boots, shoes . Rubber tires, inner tubes Rubber goods, other.. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. 98.9 99.0 99.2 97.7 93.7 97.1 98.7 97.4 96.8 97.4 99.1 98 97 96 98 96 97.3 98 92 96.9 98 95 87 86 85 84 86 87 87 96 87 87 88 98 96 96 88 86 87 128.8 125.7 127.3 127.0 144 144 144 144 276 96 150 84 275 94 143 83 77 270 94 158 82 78 270 95 157 81 77 78 96 78 96 78 96 120 93 107 96 79 79 98 212 96 103 102 128.4 129.4 127.9 129.7 147 147 146 272 96 159 81 275 95 162 80 269 96 160 86 80 77 98 81 77 100 269 95 150 82 81 75 101 79 75 101 99 94 105 96 146 107 87 104 89 128.1 126.9 '129. 6 '131.4 130.7 Feb. 95.3 94 85 130.4 146 146 145 144 271 95 137 82 279 97 '150 86 145 144 269 95 147 82 285 97 '154 86 280 96 149 85 278 97 154 86' 80 78 103 77 79 106 79 79 108 80 79 107 131 90 107 100 105 95 80 78 108 118 98 158 94 82 76 102 120 93 64.8 61.4 64.5 65.1 65.5 65.7 65.2 64 4 63.1 64.7 64 2 62.7 61 62 63 62 62 61 62 63 5 61 65 62 65 65 66 62 60 62 65 64 63 60 60 66 66 62 67 65 65 63 111.0 111.1 111.4 111.5 111.5 111.1 111.8 112.0 111 106 100 111 106 99 112 106 100 111 106 100 111 107 99 111 106 99 113 106 101 115 107 99 113 114 114 114 115 114 114 115 113 6 119 112.3 119 97 109 86 103 119 112 9 119 111.4 120 88 107 86 97 118 113 4 119 112.2 120 96 108 86 98 120 114 2 118 113.3 118 103 109 86 110 121 114 4 119 113.4 117 110 111 87 115 119 113 1 120 111.4 117 88 112 90 107 120 113 7 121 111.9 115 85 114 92 105 122 111 9 122 109.4 119 81 112 93 103 125 116 4 119.9 '121. 3 '121.9 123 122 122 122 115.2 119.4 '120.8 '121. 8 137 138 122 132 91 91 92 98 114 116 113 112 104 106 102 98 106 111 109 111 126 126 125 123 297 301 299 309 302 295 298 254 297 81 80 79 78 79 80 84 87 87 87 81 4 81 4 82 2 81 3 81 1 80.8 79 7 83.6 86.1 91.2 65.9 58 67 133 60 66 133 60 67 134 60 67 131 61 67 129 59 66 131 47 67 134 58 68 138 112 8 115 0 115.7 116 4 115 4 114.8 116 109 98 121 114 99 122 115 100 121 115 101 120 114 102 116 58 70 144 116 309 60 74 154 115 116 117 113 100 114 116 121.4 122 121.3 138 92 119 104 105 127 120.6 122 120.3 137 91 118 108 99 310 311 310 125 309 86 87 86 84 92.4 90.2 88.1 '93.0 61 75 159 61 75 157 59 74 152 57 73 145 ' Revised NOTE.—Figures for February 1940 are preliminary. For description and back data see the BULLETIN for October 1938, pages 835-866, and for October 1939, pages 878-887. Underlying figures are for payroll period ending nearest middle of month. APRIL 1940 343 FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (Without Seasonal Adjustment) [Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937. 1923-25 average=100] Factory employment Industry and group 1939 Jan. Total Durable goods Nondurable goods Nov. Dec. Jan. Feb. 103.6 96.1 110.8 88.8 90.0 106.8 111.1 111.4 108.3 106.7 115 113 77 104 65 100 82 164 86 97 76 106 91 166 122 118 77 109 70 106 83 166 87 96 76 101 95 173 123 120 78 109 73 106 84 166 86 89 75 '95 97 176 121 117 74 105 72 104 82 158 83 78 73 94 96 172 117 114 76 104 72 101 82 163 85 86 72 93 96 162 94 96 71 88 55 89 . 73 142 71 69 61 87 83 154 116 131 83 87 79 128 120 70 127 Transportation Equipment Aircraft Automobiles Cars, electric-, steam-railroad Locomotives Shipbuilding 891 106 32 18 105 91.5 96.6 Nonferrous Metals, Products Aluminum Brass, bronze, copper Clocks, watches Jewelry Lighting equipment Silverware, plated ware Smelting, refining Lumber, Products Furniture Lumber, millwork Lumber, sawmills 91.7 130 104 83 84 84 66 78 95 97 71 90 55 88 75 144 74 79 63 88 84 152 93.5 127 131 84 90 81 132 113 72 126 96.8 957 104 37 17 110 93.1 136 104 84 89 83 68 77 103.8 98.2 109.2 104.1 100.0 108.0 101.5 97.4 105.3 101.4 96.6 106.0 106.6 111.0 113.1 112.4 112.8 118 126 97 105 91 171 177 80 124 125 127 100 110 95 184 180 84 128 131 128 103 120 97 192 162 86 127 135 126 102 125 97 197 136 86 123 141 128 101 133 97 205 125 86 118 105.3 1,556 102.9 1,750 108 41 26 134 102 47 26 133 118 52 28 139 110.4 113.5 112.9 109.7 107.0 168 131 90 107 98 73 84 174 137 93 107 93 76 86 170 138 93 99 98 77 87 170 136 91 89 93 72 87 171 128 92 91 87 71 87 115.5 116. 5 115.5 1,886 2,030 2,035 116 53 28 138 114 60 29 143 Jan. 83.7 76.0 92.4 79.5 85 99 56 78 56 85 61 141 58 55 50 88 78 147 86.5 121 118 84 96 70 130 106 63 117 93.2 900 101 26 15 110 81.7 139 97 77 69 65 56 74 Feb. 86.0 77.7 95.3 81.7 86 105 59 79 57 82 65 144 61 68 53 87 82 149 90.8 141 121 87 104 73 142 96 66 121 91.6 953 97 31 13 116 85.3 148 100 84 73 69 60 73 Oct. Nov. 98.3 98.2 98.5 97.8 96.7 99.0 112.1 114.7 127" 115. 3 106.3 119 124 65 93 86 109 71 160 74 65 63 97 98 189 101.0 110 127 68 91 84 100 71 165 76 74 61 93 97 175 119.1 156 129 112 161 95 259 122 84 111 119.2 164 133 111 172 94 271 113 81 110 124 138 71 94 75 110 80 173 83 94 68 111 92 183 142 74 102 84 119 78 171 80 88 67 105 97 200 117.1 122.1 131 126 106 129 90 208 170 76 126 141 129 110 139 94 238 170 82 126 152 132 114 157 99 256 149 86 122 109.9 1,512 113 38 25 144 105. 6 124.1 1,718 1,778 106 40 25 141 113.6 115.4 191 154 99 93 82 71 81 196 157 100 91 78 75 85 72.4 73.0 71.1 67.3 66.7 51.7 52.7 68.7 68.8 95 64 66 97 64 66 95 64 63 90 62 60 89 61 59 64 42 46 70 43 44 85 52 62 86 53 61 71.9 72.1 84.8 85.5 77.7 75.4 80.3 78.9 53 54 95 41 85 52 55 95 43 86 100.9 92.8 75 87 82 124 90 151 61 68 130 66 89 61.6 57 58 106 39 92 53 55 102 42 93 40 46 97 28 73 39 48 98 29 79 104.6 94.1 108.3 98.8 107.9 100.9 105.8 98.7 103.7 96.1 105.6 95.8 83.2 80.1 90.3 82.5 77 88 84 128 92 154 68 71 135 67 88 83 94 92 133 86 154 82 80 152 67 91 85 97 93 134 88 155 78 81 154 68 95 84 97 91 133 91 148 65 79 144 65 91 82 96 88 130 91 144 59 75 140 63 87 82 96 85 130 91 146 68 77 137 60 85 114.4 _- 60.4 63 66 109 49 95 123.9 124.7 118.7 116.9 116.1 123.0 99 166 106 122 79 117 107 180 108 137 91 123 109 178 118 144 82 127 105 168 117 137 67 128 106 162 115 112 79 120 109 176 115 121 89 124 105 165 116 129 66 123 61 75 77 106 79 161 48 58 107 53 75 83.9 71 115 106 99 62 90 64 76 80 112 81 169 56 63 109 56 74 99.6 83 139 114 122 79 100 129 144 72 102 88 117 78 174 80 79 '67 100 102 204 111.0 83 56 55 '83.6 Feb. 103. 7 104. 6 102.8 62.0 65 70 109 50 95 Jan. 101.6 100.9 102.4 81 55 55 65 72 107 51 92 Dec. 101.6 99.6 103.9 61.4 Stone, Clay, Glass Products Brick, tile, terra cotta Cement Glass Marble, granite, slate Pottery Oct. 1940 1939 93.6 83.3 103.5 Machinery Agricultural implements Cash registers, etc Electrical machinery Engines, turbines, etc Foundry, machine-shop products Machine tools Radio, phonographs Textile machinery Typewriters 344 Feb. 1940 92.2 82.3 101.7 Iron, Steel, Products Blast furnaces, steel works Bolts, nuts, washers, rivets Cast-iron pipe Cutlery, edge tools Forgings Hardware Plumbers' supplies Stamped, enameled ware Steam, hot-water heating Stoves Structural, ornamental Tin cans, tinware Tools Wirework Textiles, Products Fabrics Carpets, rugs Cotton goods Cotton small wares Dyeing,finishingtextiles Hats, fur-felt Hosiery Knitted outerwear Knitted underwear Knitted cloth Silk, rayon goods Woolen, worsted goods Wearing apparel Clothing, men's Clothing, women's Corsets, allied garments'. Men's furnishings Millinery Shirts, collars.. Factory payrolls 57 71 121 39 87 93.7 88.0 75 84 89 116 61 174 70 74 132 57 77 98.7 83 133 127 143 62 116 54 67 121 39 89 92.9 91.7 76 91 90 115 73 170 64 75 131 60 82 89.2 76 116 122 139 49 118 128 47 28 153 118.3 119.3 1,901 1,884 120 120 47 55 27 27 148 149 116. 5 108.7 197 192 159 150 97 93 87 73 85 74 76 61 88 87 103.2 194 136 95 69 70 59 86 65.2 86 52 55 58.8 75 47 51 59.8 77 47 52 76.4 52 63 119 35 90 66.9 43 51 113 24 81 65.4 39 48 108 29 86 91.8 89.5 76 92 87 116 89 159 50 72 116 57 78 '90.2 80 117 119 126 47 111 87.6 84.8 72 89 81 110 85 146 47 66 112 53 73 87.4 80 113 110 95 59 98 91.1 84.2 71 88 76 108 84 151 57 69 107 51 71 98.8 85 132 117 113 78 108 FEDERAL RESERVE BULLETIN Factory Employment and Payrolls—Continued [Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937. 1923-25 average=100] Factory payrolls Factory employment Industry and group 1940 1939 Jan. Feb. 103.0 102 Leather, Manufactures Boots, shoes Leather Oct. 16.2 94 Nov. 91.9 91 87 87 116.' 141 251 90 92 82 78 66 101 91 92 Food, Products 129. 8 126.0 147 145 261 261 94 93 121 101 98 96 78 79 68 69 112 108 192 287 94 95 Jan. Feb. Jan. Feb. 97.4 96 87 87 119.5 141 255 90 91 83 79 66 112 68 90 118.4 142 255 89 91 84 79 67 107 45 93 113.1 130 273 76 76 77 72 56 108 79 77 110.0 130 274 75 76 77 69 56 99 51 74 83.0 Oct. 76.5 71 87 Nov. 71.1 65 87 Dec, Jan. Feb 75.4 70 87 82.3 79 82.3 80 84 124.4 134 299 78 89 100 72 57 122 174 76 117.1 131 279 75 81 81 73 56 119 63 73 115.4 132 284 76 78 81 74 57 109 53 78 44 92 137.7 148 271 95 182 97 82 73 103 287 101 63 64 66.7 62 67 66.4 61 67 65.! 61 59.0 64 58 61.7 62 62 51.3 66 49 52.7 63 51 63.4 71 62 62.9 68 62 62.3 67 62 52.9 68 51 54.0 70 52 110.6 107 106 102 113 111.0 108 106 100 114 116.5 128 114 99 117 117.5 129 115 101 117 118.5 125 115 104 119 115.1 116 114 103 114 114.7 114 113 101 116 103.2 111 103 88 104 103.6 115 105 85 105 113.8 151 126 84 110 114.2 145 125 89 109 116.8 137 123 94 115 110.0 121 118 92 106 108.8 119 117 87 108 113.2 118 112.0 118 109 109 86 103 117 300 79 113. 4 118 112.4 118 98 109 84 107 117 306 122.3 123 122.2 134 139 117 104 99 125 310 90 122. 6 122.3 124 122 122. 3 122. 3 138 138 115 120 118 119 106 108 102 92 124 125 312 313 85 121.0 122 120.9 136 103 119 104 105 124 314 84 121.0 121 121.1 135 101 120 106 109 123 313 84 118.8 135 113.9 130 88 118 95 75 115 283 95 118. 133 114.8 132 77 118 97 75 118 .288 95 133.3 133.1 133.4 140 138 138 131.2 131. 6 132.0 158 162 162 120 115 110 133 131 132 125 129 128 80 82 76 135 131 132 303 314 310 109 102 104 131.0 134 130.3 160 99 129 121 83 129 320 100 131.3 135 130.2 158. 93 131 128 83 129 321 100 81.3 58 67 132 Baking Beverages Butter Canning, preserving Confectionery Flour Ice cream Slaughtering, meat packing Sugar, beet Sugar refining, cane 114.2 142 252 87 84 81 77 Dec. 1940 81.5 59 92.4 62 74 158 90.0 59 74 150 88.2 57 73 146 82.2 57 74 123 81.0 58 71 125 100.5 66 90 155 94.1 56 86 145 88.3 53 80 136 60.5 Tobacco Manufactures Tobacco, snuff Cigars, cigarettes Paper, Printing.... Boxes, paper Paper, pulp Book, job printing Newspaper, periodical printing.__ Chemicals, Petroleum, and Coal* Products Petroleum refining Other than petroleum Chemicals Cottonseed oil, cake, meal Druggists' preparations Explosives Fertilizers Paints, varnishes Rayon, allied products Soap Rubber Products Rubber boots, shoes Rubber tires, inner tubes Rubber goods, other 134 93.9 62 75 161 93.0 63 75 157 130.0 125. 3 137 137 294 309 82 79 156 101 96 96 83 71 62 58 108 113 245 ••283 87 77 101. 9 64 91 161 67 86 163 r Revised. NOTE.—Figures for February 1940 are preliminary. Back data may be obtained from the Bureau of Labor Statistics. Underlying figures are for payroll period ending nearest middle of month. HOURS AND EARNINGS OF WAGE EARNERS IN MANUFACTURING INDUSTRIES [Compiled by the Bureau of Labor Statistics] Average hourly earnings (cents per hour) Average hours worked per week Industry group 1938 _ Iron, Steel, Products Machinery Transportation Equipment._ _ Nonferrous Metals, Products Lumber, Products. __ Stone, Clay, Glass Products Nondurable goods •__ ._ Textiles, Products.. _ _ __ _ Fabrics Wearing apparel Leather, Manufactures Food, Products Tobacco Manufactures Paper. Printing Chemicals, Petroleum, and Coal Products Petroleum refining Other than petroleum refining. Rubber Products APRIL 1940 1939 1940 Nov. Dec. Jan. Dec. Jan. Sept. Oct. Nov. Dec. 38.0 39.1 38.5 38.6 37.4 64.2 64.4 63.8 64.6 65.3 66.2 66.3 38.2 40.2 39.6 39.6 38.1 70.9 71.0 70.9 71.3 71.5 72.7 72.7 34.8 36.6 35.0 37.3 37.9 35.1 37.0 39.1 37.3 39.9 39.3 37.0 40.3 40.6 38.1 41.4 40.9 39.2 39.6 40.9 37.6 41.0 39.7 37.9 39.4 41.3 38.5 40.9 38.6 37.5 37.6 40.4 37.4 39.2 36.9 35.1 75.7 72.1 90.1 67.0 49.2 64.9 75.5 72.4 89.8 66.7 49.0 65.1 76.1 72.2 89.5 67.4 50.1 64.7 76.4 72.1 89.1 69.1 50.2 65.4 76.7 72.3 88.6 69.0 51.4 65.7 77.2 73.2 90.1 70.3 51.3 66.0 76.6 73.5 89.4 70.1 51.2 66.4 37.5 37.0 37.8 38.2 37.6 37.7 36.9 58.9 59.2 58.3 59.0 59,9 60.5 60.7 35.8 37.2 33.2 36.3 40.5 36.0 38.7 35.0 36.5 32.3 38.1 40.0 32.1 37.8 35.5 37.0 32.8 34.8 41.6 36.9 39.0 36.7 37.8 34.5 35.3 40.5 37.0 39.7 36.1 37.4 33.7 33. .8 40.1 36.6 39.5 35.9 37.2 33.5 35.7 40.5 35.8 39.4 34.8 36.0 32.4 37.2 39.7 33.3 38.1 48.0 46.0 52.0 52.6 61.7 46.9 77.0 48.4 46.1 52.7 52.5 62.8 48.1 76.8 48.2 46.1 51.9 53.2 58.5 47.5 77.4 48.6 46.4 52.7 53.2 60.8 47.4 77.3 49.3 47.7 52.5 53.9 62.5 47.9 77.4 49.7 47.9 53. 3 53.7 63.3 48.9 78.3 49.9 48.1 53.3 53.4 64.1 49.6 78.4 38.2 36.4 38.8 37.4 38.2 36.6 38.8 36.0 38.8 35.6 39.9 37.6 39.8 36.9 40.8 39.2 38.9 36.0 39.8 38.0 39.0 36.4 39.8 38.1 38.4 35.5 39.4 36.6 73.9 97.4 65.4 76.5 74.1 98.0 65.3 77.0 74.1 96.9 65.8 76.8 73.8 97.4 65.7 76.9 75.1 97.2 67.4 76.8 75.1 97.2 67.5 77.6 75.6 97.4 68.0 77.6 Jan. Sept. 37.3 Durable goods 1938 Oct. Dec. Total 1940 1939 36.6 37.1 36.1 35.6 37.4 36.4 38.6 38.9 36.9 Jan. 345 CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION [Figures for 37 States east of the Rocky Mountains, as reported by the F . W. Dodge Corporation. Value of contracts in millions of dollars.] Month 1940 1939 196.2 200.6 June July August September October November December 251.7 220.2 300.7 330.0 308.5 288.3 299.9 312.3 323.2 261.8 299.8 354.1 80.2 79.0 125.2 114.4 133.8 111 9 109.3 127.2 129.7 118.3 116.6 88.7 Year 3, 550. 5 __ _ April May Factories 1940 1939 January. _ February March Nonresidential building Residential building Total 1939 77.4 74.9 1939 1940 17.3 13.5 17.4 21.3 19.5 26.8 22.9 21.1 26.6 22.6 20.4 17.4 12.9 15.4 174.8 1940 31.7 21.8 27.6 21.1 16.4 12.5 19.4 13.8 10.1 9.5 9.7 15.9 20.2 1939 6.1 8.1 7.7 28.9 24.7 39.8 34.8 27.8 37.8 28.7 24.6 24.9 23.8 29.2 17.4 201.4 246.9 Public works and public utilities i Other * Educational» 1939 1940 7.1 9.5 13.0 17.5 13.0 15.8 17.4 10.4 20.7 16.8 18.5 15.3 1, 334. 3 Commercial 1940 1939 17.7 26.9 1940 86.5 71.6 77.7 121.0 97.9 83.6 102.1 115.3 111.1 70.8 105.5 207.7 342.5 66.3 55.2 1, 250. 6 » Not strictly comparable with data for earlier years due to changes in classification. CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF FINANCING [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.} Total Privately-financed * Publicly-financed * Month 1935 January February March _ _ _ April May _ _ _ June July. August September October November December Year _. . ._ 1936 1937 100 215 243 75 123 124 127 148 159 169 167 201 188 264 140 199 235 216 233 295 275 234 226 208 200 1938 192 1939 1940 252 1935 1936 1937 1938 1939 1940 1935 196 55 118 148 93 45 188 231 270 244 318 322 281 207 lid 227 222 283 251 240 313 301 149 112 220 301 330 308 288 300 312 323 38 68 53 47 64 67 92 97 79 96 105 94 116 153 153 116 69 66 74 93 137 131 104 80 202 198 209 358 302 389 262 300 354 114 118 196 101 89 82 78 93 115 111 128 160 135 128 137 158 144 203 179 279 1937 66 130 1938 1939 1940 104 75 104 119 165 195 151 180 191 178 127 68 132 123 139 143 142 142 141 109 173 170 174 161 163 154 179 124 106 94 154 123 110 170 156 129 1,341 1,761 1,492 1,842 37 65 71 80 84 93 76 70 62 103 130 122 116 141 122 119 92 144 225 87 70 68 125 119 117 1,007 1,334 1,152 1,705 1,708 _ _ 1,845 2,675 2,913 3,197 3,551 51 95 99 144 108 98 171 160 1936 837 i Back figures —See BULLETIN for February 1938, p. 159. Data for years prior to 1932 not available. COMMERCIAL FAILURES, BY DISTRICTS CONSTRUCTION CONTRACTS AWARDED, BY DISTRICTS [Figures for 37 States east of the Rocky Mountains, as reported by the [Figures reported by Dun & Bradstreet. Amounts in thousands of dollars.] F. W. Dodge Corporation. Value of contracts in thousands of dollars.] 1940 Federal Reserve district Boston. New York Philadelphia Cleveland.. Richmond Atlanta Chicago St. Louis __ ____ _ Minneapolis Kansas City Dallas Total (11 districts) Feb. Jan. Feb. 30,936 12, 739 18, 590 9,553 35, 662 12,138 24, 843 22,016 29, 086 24, 378 12, 923 3,353 9,012 16, 603 3,634 6,614 15, 344 200, 574 196,191 Federal Reserve district 15, 776 47,049 8, 564 22, 734 29, 605 23,036 32, 405 15,411 Liabilities Number 1939 1940 Feb. Boston New York Philadelphia Cleveland. Richmond Atlanta Chicago— 4,838 St. Louis 12, 034 Minneapolis 15, 022 Kansas City Dallas 220,197 San Francisco 19, 053 19, 665 38,138 17, 324 Total 1939 Jan. Feb. 1940 1939 Feb. Jan. 71 380 67 53 46 55 160 26 23 40 23 78 492 81 65 58 67 165 39 15 52 23 102 85 435 80 65 65 73 160 37 18 45 34 105 1,418 5,425 541 940 584 622 1,446 288 342 288 200 1,378 1,008 5,119 1,219 830 1,042 1, 237 1,202 13, 472 15, 279 579 484 2,360 500 243 335 286 2,316 Feb. 1,467 4,455 1,103 779 469 679 1,943 615 172 235 333 1,332 13, 582 New series. Includes cases of discontinuances where loss to creditors was involved even though actual legal formalities were not invoked. Back figures, available for 1939 only, may be obtained from Dun and Bradstreet, Inc. 346 FEDERAL RESERVE BULLETIN MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports l Excess of exports Merchandise imports * Month 1936 1938 1937 1940 1939 1936 1937 1938 1939 1940 369 187 193 199 240 278 307 171 163 173 178 158 190 242 1939 1936 1937 1938 11 -11 —4 —18 —45 —51 118 99 102 35 61 77 45 47 57 January February March 199 182 195 223 233 257 289 262 275 213 219 268 April May June 193 201 186 269 290 265 274 257 233 231 249 236 203 192 191 287 285 286 160 148 146 186 202 179 -10 9 -5 -18 5 -21 115 109 180 179 221 268 277 297 228 231 246 230 250 288 195 193 216 265 246 233 141 166 168 169 176 182 -15 14 5 3 31 63 87 65 79 61 75 107 265 226 230 333 315 323 278 252 269 332 293 368 213 196 245 224 223 209 178 176 171 215 236 247 52 30 -15 108 92 115 100 76 98 117 57 121 2,456 3,349 3,094 3,177 2,423 3,084 1,960 2,318 33 265 1,134 1940 859 July August September . October November. . December Year P347 87 127 * Preliminary. 1 Including both domestic and foreign merchandise. 1 General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. Source.—Bureau of Foreign and Domestic Commerce. Back figures.—Bee BULLETIN for January 1931, p. 18; July 1933, p. 431; and February 1937, p. 152. FREIGHT-CAR LOADINGS, BY CLASSES DEPARTMENT STORE SALES AND STOCKS [Index numbers; 1923-25 average=100] [Index numbers based on value figures; 1923-25 average=100] 1939 Feb. Oct. Sales i 1940 Nov. Dec. Jan. Feb. Month Adjusted for seasonal variation Stocks (end of month) Without Adjusted Adjusted Without seasonal for seasonal for seasonal seasonal variation adjustment variation adjustment 1939 Total Coal Coke Grain and grain Livestock. _ Forest products Ore Miscellaneousl Merchandise _ _ products... _ _ _ _ 67 65 46 70 38 36 93 75 62 80 87 95 87 44 50 108 86 62 82 80 100 88 41 51 191 89 63 78 71 92 87 40 51 116 89 62 78 83 90 73 39 47 114 86 62 73 68 65 75 40 44 107 83 61 Without seasonal adjustment Total . Coal Coke Grain and grain products Livestock Forest products Ore Miscellaneousl Merchandise _ - 62 76 62 64 31 35 22 64 60 89 96 95 87 62 52 160 97 65 83 87 100 83 50 50 105 91 64 73 79 101 75 39 44 29 81 60 72 95 106 66 38 41 25 74 58 68 80 88 69 33 43 26 71 59 1940 1939 1940 1939 1940 1939 January February March 88 87 88 92 89 69 69 82 72 71 67 68 68 69 71 60 65 69 April May June 88 85 86 88 87 83 67 66 67 69 68 64 July August September October November. 86 89 91 60 69 97 67 67 68 60 65 71 90 95 96 99 106 168 69 71 68 77 82 64 Year 90 1940 61 68 68 1 Based on daily average sales—with allowance for changes from month to month in number of Saturdays and in number of Sundays and holidays. Adjustment for seasonal variation makes allowance in March and April for the effects upon sales of changes in the date of Easter. i In less-than-carload lots. NOTE.—For description and back data see pp. 622-529 of BULLETIN Tor June 1937. Based on daily average loadings. Basic data compiled Back figures.—Department store sales, see BULLETIN for August by Association of American Railroads. Total index compiled by com- 1936, p. 631, and for October 1938, p. 918; department store stocks, see bining indexes for classes with weights derived from revenue data of BULLETIN for March 1938, p. 232. the Interstate Commerce Commission. APRIL 1940 347 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926-100] Other commodities All commodities Farm products Foods 95.3 86.4 73.0 64.8 65.9 74.9 80.0 80.8 86.3 78.6 77.1 104.9 88.3 64.8 48.2 51.4 65.3 78.8 80.0 86.4 68.5 65.3- 00.0 00.5 74.6 61.0 60.5 70.5 83.7 82.1 85.5 73.6 70.4 01.6 85.2 76.0 70.2 71.2 78.4 77.0 70.6 85.3 81.7 81.3 109.1 100.0 86.1 72.0 80.0 86.6 89.6 05.4 104.6 02.8 95.6 90.4 80.3 66.3 54.0 64.8 72.0 70.9 71.5 76.3 86.7 69.7 83.0 78.5 67.5 70.3 66.3 T3.3 73.5 76.2 77.6 76.5 73.1 100.5 92.1 84.5 80.2 79.8 86.9 86.4 87.0 95.7 95.7 94.4 95.4 89.9 79.2 71.4 77.0 86.2 85.3 86.7 95.2 90.3 90.5 1939—January _ February March.. _ April May June July August September October November December 76.9 76.9 76.7 76.2 76.2 75.6 75.4 75.0 79.1 79.4 79.2 79.2 67.2 67.2 65.8 63.7 63.7 62.4 62.6 61 0 68.7 67.1 67.3 67.6 71.5 71.6 70.2 68.6 68.2 67.6 67.5 67.2 75.1 73.3 72.3 71.9 80.2 80.2 80.4 80.5 80.6 80.2 80.2 80.1 82.1 83.8 84.0 83.9 03.1 01.0 01.8 00.0 01.6 02.3 02.5 92.7 98.5 104.6 104.0 103.7 65.0 66.1 66.6 66.0 67.5 67.3 67.6 67.8 71.7 75.5 76.4 78.0 72.8 73.0 73.1 73.4 73.9 73.0 72.8 72.6 72.8 73.9 74.1 72.8 94.4 94.3 94.3 94.0 93.5 93.2 93.2 93.2 94.8 95.8 96.0 96.0 1940—January February 79 4 78.7 69 1 68.7 71.7 71.1 83 9 83.2 103.6 102.4 77.9 75.4 72.7 72.4 78.8 79.0 78.7 79.3 79.4 79 5 79.5 79 3 79.1 78.8 78.5 78 3 78.6 78.4 78.3 78.2 77.9 67.1 67.4 66.8 67.8 68.5 69.6 69.5 69.5 69.2 69.6 68.9 68 6 69.4 68.8 68.5 68.0 67.5 71.1 71.3 71.1 72.1 71.9 71.8 71.8 71.4 71.4 71.7 70.9 70.5 71.0 70.5 69.9 70.4 69.9 84.4 84.4 84.1 84.3 84.4 84.2 84.3 84.1 84.0 83.6 83.5 83 3 83.3 83.2 83.1 83.0 82.9 103.9 104.0 104.2 104.4 104.1 104.0 104.1 103 7 103.9 103.0 103.2 103 1 102.7 102.8 102.4 102.5 102.1 76.0 76.6 76.7 77.8 78.6 78.3 78.1 77.0 76.7 75.3 75.3 74.4 74.2 73.6 73.3 73.0 72.7 74.4 74.1 73.7 73.5 73.4 73.3 73.3 73.4 73.4 73.3 73.0 73.0 73.0 72.8 72.8 72.6 72.6 Year, month, or week 1929 1930 1931 -_ 1932 1933 1934 1035 1936 1937 1938 1939 - - - - Week ending— 1939—December 2 December 9 December 16 December 23 December 30 January 6 January 13 January 20 January 27 February 3 February 10 February 17 February 24 March 2 March 9 March 16 March 23 . Total Hides and Textile Fuel and Metals Building Chemi- HouseMiscellighting and metal cals and furnishleather products products materials products materials drugs ing goods laneous 1939 Subgroups Farm Products: Grains Livestock and poultry Other farm products Foods: Dairy products Cereal products Fruits and vegetables Meats . Other foods Hides and Leather Products: Shoes Hides and skins Leather Other leather products „ Textile Products: Clothing . Cotton goods Hosiery and underwear Silk 3 3 __. „ Rayon Woolen and worsted goods Other textile products Fuel and Lighting Material: Anthracite Bituminous coal. _ Coke Electricity „ Gas Petroleum products. 73.5 72 6 75.9 80 5 80.4 83 9 77.6 76.5 94.3 92.7 84.9 75.1 75.8 81.5 80.6 81.7 89.7 86.8 86.3 82.6 77.7 69.8 64.4 62.5 69.7 68.3 70.6 77.8 73.3 74.8 89.5 89.6 89.8 89.6 89.5 89.5 89.7 89.6 90.9 92.8 93.0 93.0 76.7 76.3 76.5 76.0 75 9 75.7 75.0 74.6 77.3 78.1 78.0 78.1 85.4 85.2 85.2 85.4 85.5 85.6 85.6 85.6 86.6 87.8 88.4 88.5 73.2 73.5 74.1 74.4 74.2 73 8 73.4 73.3 76.6 77.6 77.0 77.4 95.8 95.3 93.4 93.2 78.1 78.1 87.9 88.2 77.7 77.3 96.2 96.1 96.1 96.1 96.1 96.0 96.0 96.0 95.7 95.6 95.5 95.3 95.3 95.5 95.5 95.5 95.4 93.0 '92.7 93.4 93.6 93.1 92.9 93.2 93.1 93.7 93.1 93.1 93.2 93.0 93.3 93.3 93.2 93.3 77.5 77.6 77.6 78.0 78.1 78.0 77.8 77.7 77.6 77.5 77.3 77.5 77.7 77 8 77.5 77.4 77.3 90.0 90.0 90.0 90.0 90.1 90.1 90.1 90.2 90.2 89.5 89.5 89.6 89.5 89.5 89.6 89.6 89.5 78.4 78.4 76 9 77.4 77.7 77.5 77.7 77.5 77.4 77.1 77.1 77.2 77.2 76.9 76.8 76.9 76.5 94 2 89.1 79 3 1940 1940 1939 Feb. Nov. Dec. Jan. Feb. 54.7 79.2 62.9 64.1 66.1 68.3 71.6 63.8 68.4 73.5 67.2 68.6 72.8 65.6 68.9 71.6 72.7' 62.1 83.2 61.7 80.1 78.0 61.2 71.2 69.2 81.3 80.5 63.0 69.1 66.5 81.9 80.4 60.3 69.9 65.8 80.0 82.4 58.7 68.4 66.3 101.1 72.8 84.2 95.3 107.2 104.3 97.8 99.9 107.5 105.2 95.2 100.0 107.8 102.6 96.0 100.0 108.2 97.0 94.2 100.0 81.5 63.7 58.8 36.8 28.5 74.7 64.5 83.8 74.8 64.8 56.5 29.5 90.5 83.4 84.2 75.2 66.0 66.0 29.5 90.3 84.2 84.5 75.4 68.4 61.8 29.5 90.4 81.3 79.9 98.1 104.2 82.8 81.8 50.7 76.1 98.1 111.2 76.5 82.2 53.9 76.1 97.8 109.9 78.7 98.0 109.8 79.2 98.2 109.7 80.4 52.5 51.7 50.9 84 9 73.6 64.5 51.6 29.5 87.2 76.8 Subgroups Metals and Metal Products: Agricultural implements Farm machinery Iron and steel l Motor vehicles Nonferrous metals Plumbing and heating Building Materials: Brick and tile Cement Lumber . Paint and paint materials Plumbing and heating Structural steel . Other building materials Chemicals and Drugs: Chemicals __ Drugs and pharmaceutic;als Fertilizer materials Mixed fertilizers Housefurnishing Goods: Furnishings Furniture Miscellaneous: Auto tires and tubes Cattle feed . . Paper and pulp Rubber, crude Other miscellaneous Feb. Nov. Dec. Jan. Feb. 93.2 94.5 96.1 93.4 76.5 79.2 93.3 94.6 96.0 94.7 85.1 79.3 93.3 94.6 96.1 94.7 84.6 79.3 93.4 94.6 96.3 94.7 82.6 79.3 93.4 94.6 96.3 94.7 79.2 79.1 91.6 92.4 91.6 2 91.2 91.3 91.3 97.8 92.6 98.3 80.5 84.9 85.5 79.3 79.2 79.3 107.3 107 3 107.3 89.3 92.9 92.7 91.6 91.4 97.6 87.2 79.3 107.3 93.2 91.2 91.4 97.6 86.8 79.1 107.3 92.9 79.4 72.7 69.3 73.7 81 4 75.0 73.0 72.6 81.1 75.6 74.5 73.7 80.9 76.5 74.0 73.5 81.0 76.8 72.9 73.7 89. 8 80.5 94.2 82.3 94.4 82.4 94.0 81.4 94.2 81.9 59.7 78.2 81.1 33.7 81.2 55.6 91 5 88.0 42.5 86.0 55.6 91.7 89.0 42.4 86.6 55.6 93.0 89.8 39.6 87.4 55.6 93.7 89.5 38.7 86.6 1 2 3 Preliminary revision. Revised series. New series. Backfigures.—Formonthly and annual indexes of groups, see Annual Report for 1937 (table 86); for indexes of subgroups, see Annual Report for 1937 (table 87). 348 FEDERAL RESERVE BULLETIN STATISTICS FOR FEDERAL RESERVE CHART BOOK—CURRENT SERIES Chart book page WEEKLY FIGURES Feb. 28 Mar. Chart book Mar. 13 Mar. 20 Jan. Feb. 4 3, 5 5 5 3 3, 9 3 3 3,6 6 7 7 7 7 7 2.52 .01 2.48 18.11 7.45 2.36 .60 12.24 6.61 5.66 3.23 .30 1.37 .76 2.54 .01 2.48 18.17 7.44 2.37 .56 12.32 6.63 5.70 3.28 .30 1.37 .75 2.52 .0) 2.48 18.22 7.48 2.36 .54 12.37 6.63 5.74 3.27 .30 1.39 .78 2.52 0) 2.48 18.28 7.46 2.36 .53 12.44 6.66 5.79 3.25 .30 1.46 .78 14 14 14 23.21 14.68 8.53 23.27 14.74 8.53 23.36 14.76 23.44 14.82 8.62 15 15 15 15 15 19.26 5.28 .57 8.09 .75 19.41 5.29 .57 8.09 .73 19.34 5.30 .57 8.22 .73 19.51 5.34 .57 8.27 .73 16 16 16 16 4.63 1.26 1.65 .47 4.64 1.31 1.65 4.64 1.31 1.66 .48 4.71 1.32 1.68 .50 17 17 17 6.63 2.17 2.67 6.63 2.16 2.67 2.16 2.69 6.62 2.17 2.69 Averages of daily figures5; per per annum MONEY RATES AND SECURITY MARKETS 2.52 (0 2.48 18.36 7.48 2.37 .71 12.26 6.66 P5.69 3.21 .30 1.42 P. 76 Wholesale commodity prices: United States: All commodities 31, 32 Farm products 31 Foods 31 Other commodities— 31 England 32 France 32 Germany 32 Industrial production 5 35 Manufacturing production: E Total 6 ,.37 Durable 37 Nondurable 6 37 Factory employment 43 Factory payrolls 43 Freight-car loadings 5 5 45 Department store sales 5 47 Department store stocks 47 23.40 14.79 Construction contracts awarded: 7 8.61 Total 41 Residential 41 19.25 Oth 41 5.33 Exports e r . . imports: and .58 Exports (incl. re-exports). 49 8.28 General imports 49 .75 Excess of exports 49 Income payments: 4.76 Total5 50 1.31 Total unadjusted 5 50 1.68 Salaries and wages 50 .49 Others 50 6.55 Cash farm income: Total 51 2.17 Crops 51 2.70 Livestock and products. _ 51 Government payments... 51 cent OTHER 1.00 .56 Central gold reserves: .44 United States .02 England .43 France 2.24 Netherlands 2.84 U. S. Gov't interest-bearing 4.80 debt—total Bonds • Wednesday figures; in unit indicated Notes Bills 92 92 91 92 91 Special issues 1.07 108 107 108 108 29 29 29 29 29 87 QUARTERLY FIGURES * 88 88 87 88 F.R.bankdiscountrate,N.Y. 19 Commercial paper 19 Bankers' acceptances 19 U. S. Treasury bills ___ 21 U. S. Treasury notes 21 U. S. Treasury bonds 21, 25 Corporate Aaa bonds __ 25 Corporate Baa bonds 25 1.00 .56 .44 .02 .46 2.32 2.85 4.82 1.00 .56 .44 .02 .43 2.33 2.86 4.84 1.00 .56 .44 .02 .42 2.28 2.85 4.83 1.00 .56 .44 .02 .42 2.24 2.85 4.80 Stock prices, total * 27, 29 Industrial 27 Railroads. __ 27 Public utilities _. 27 Volume of trading* (mill, shares).. 29 Brokers' loans (mill, dollars) 29 .74 617 .56 609 .68 638 .76 659 Figures for week*; in unit BUSINESS CONDITIONS Wholesale commodity prices: * All commodities._ Farm products Foods Other commodities. Steel plant operations (% of capacity) Automobile production (thous. cars) Electric power production (mill. kw. hrs.) Total freight-car loadings (thous. cars) 1940 Index numbers 1923-25=100 BUSINESS CONDITIONS WEEKLY REPORTING MEMBER BANKS Total, 101 cities: Loans and investments. Investments Loans. _ Adjusted demand deposits.._ Time deposits U. S. Gov't deposits Domestic bank balances Foreign bank balances.. New York City: U. S. Gov't obligations.. Other securities.. Commercial loans Brokers' loans __ 100 cities outside New York: U. S. Gov't obligations.. Other securities Commercial loans 1939 Dec. MONTHLY FIGURES Wednesday figures; in billions of dollars RESERVES, GOLD, AND CURRENCY Reserve bank credit—total.. Bills discounted U. S. Gov't securities— Gold stock _ Money in circulation Treasury cash Treasury deposits Member bank balances Required reserves e.__ Excess reserves—total «• New York City * Chicago* Reserve city banks J Country banks *• 1940 Feb. 21 78.6 69.4 71.0 83.3 78.4 68.8 70.5 83.2 78.3 68.5 69.9 83.1 78.2 68.0 70.4 83.0 38 67.1 65.9 64.6 64.7 38 102.7 100.9 103,6 105.7 39 2,455 2,479 2,464 2,460 39 595.0 634.4 621.0 619.0 128 119 P109 129 65 64 104.1 103.7 78 118 57 61 101.5 98.3 78 P108 92 ?48 60 4 *>97.8 73 89 71 P101. In millions of dollars 353 111 243 307 97 210 P256 P101 368 247 121 369 242 127 P200 '6,090 '6,888 '3,826 r 2, 264 6,090 6,065 3,805 2,285 *6,015 P5, 554 P3, 752 P2, 263 ••743 238 379 126 635 219 318 801 330 380 91 r 17.64 0) 2.71 17.93 0) 2.71 0) 20 20 20 20 20 41.45 29.17 6.20 1.45 4.62 41.60 29.45 6.20 1.31 4.64 41.84 29.59 6.20 1.31 4.74 Apr.June 1939 JulySept. 1939 18.18 2.71 Oct.Dec. 1939 In millions oj dollars 62.4 Customers' rates: 103.4 New York City 7 other Northern and 2,424 Eastern cities 11 Southern and Western 619.9 cities 78.768.7 71.1 83.2 *>103. 8 8 8 8 8 indicated 33 33 33 33 79.4 69.1 71.7 83.9 In billions of dollars .63 628 Domestic corporation security issues, total 77.9 New 67.5 Refunding 69.9 82.9 79.2 67.6 71.9 83.9 28 28 28 662 130 532 653 92 560 509 67 442 Per cent per annum 23 2.15 2.04 1.96 23 3.05 2.78 2.59 23 3.62 3.31 3.32 e 5 p Preliminary. » Revised. • Estimated. Adjusted for seasonal variation. 6 1 Less than $5,000,000. Points in total index of manufacturing production. 7 2 Averages of daily figures, see footnote 3. Three-months moving average adjusted for seasonal variation. 3 Figures are shown under the Wednesday date included in the weekly period. 8 Banking statistics for call report dates are shown in table 4 Index numbers, 1926=100. on following page. NOTE.—Copies of this chart book can be obtained from the Board at a price of 50 cents each. APRIL 1940 349 STATISTICS FOR FEDERAL RESERVE CHART BOOK—QUARTERLY BANKING SERIES [In billions of dollars] 1§38 Chart book page Investments, total U. S. Government obligations, total Direct obligations Guaranteed obligations Other securities, total State and local government securities Other domestic Foreign securities Loans, total Security loans, total * 2 Brokers' loans Loans on securities (excluding brokers' loans) 2__ Real estate loans Other loans, total 12 Commercial loans 2 Open-market paper Loans to banks 3 All other loans Dec. 31 Mar. June 10 10 10 10 All banks in the United States: Total deposits and currency.. Time deposits Demand deposits adjusted. __ Currency outside banks Member banks: Demand deposits adjusted... Time deposits Interbank balances Loans and investments June 30 57.42 25.96 25.26 5.53 56.83 26.26 24.05 5.69 56.78 26.34 24.13 5.50 56.74 . 40 U 2 P59.15 P61. 00 P63. 03 7. 65 26.27 . 83 P26. 91 P27.00 P26. 38 P26. 58 24.39 P25. 10 26. 01 P26.01 P27. 32 P29. 10 P30.05 P5.68 P6.05 P6.23 P6.50 5.47 P5.50 11 11 11 11 11 12 13 13 12 13 13 13 11 12 13 13 12, 13 12 13 13 13 21.40 11.35 5.30 32.74 18.45 12.69 10.87 1.82 5.77 2.13 3.40 .23 14.29 4.37 1.54 2.83 2.51 7.41 6.66 .64 .12 20.39 11.52 5.44 31.75 17.79 12.37 10.57 1.80 5.42 2.03 3.21 .18 13.96 3.70 .95 2.75 2.55 7.71 7.00 .64 .07 20.51 11.59 5.62 31.52 17.98 12.45 10.63 1.83 5.52 2.19 3.15 .18 13.55 3.54 .88 2.67 2.56 7.45 6.75 .61 .10 20.89 11.56 6.10 30.72 17.78 12.34 10.22 2.13 5.44 2.13 3.13 .18 12.94 3.32 .70 2.61 2.61 7.01 6.40 .49 .12 30 Sept. 28 21.60 11.46 6.09 31.63 18.69 13.01 10.71 2.30 5.68 2.30 3.19 .18 12.94 3.30 .71 2.59 2.66 6.97 6.36 .48 .13 Dec. 31 22.29 11.51 6.51 32.07 18.86 13.22 10.88 2.34 5.64 2.45 3.01 .18 13.21 2 1.75 .97 2.78 2.72 2 8.74 2 5.45 .44 .12 3 2. 73 Mar. 29 22.36 11.60 6.82 32.10 19.05 13.35 10.69 2.66 5.70 2.55 2.96 .18 13.05 1.57 .84 .73 2.75 8.73 5.53 .42 .10 2.67 June 30 Oct. 2 Dec. 30 23.59 25.12 11.72 11.73 7.10 4 8.24 32.60 33.08 19.46 19.61 13.78 13.81 10.95 10.89 2.92 2.83 5.79 5.69 2.76 2.55 2.94 .19 13.14 13.47 1.47 .73 (5 .74 ( 2.83 (5 8.85 (5 (5 5.57 (5 .42 .06 2.80 8 25.68 11.85 8.51 33.94 19.98 14.33 11.18 3.14 5.65 2.69 2.77 .19 13.96 1.49 .79 .70 2.96 9.51 6.12 .45 .06 2.89 p Preliminary. 1 In chart 12 loans to banks on securities are included in the total of "security loans" prior to June 30, 1937 and in the total of "other loans" since that date. 2 Figures are reported on somewhat different basis beginning December 31, 1938. For detailed explanation of the changes and for estimates on old basis as of December 31, 1938, see BULLETIN for 4April 1939, page 332. 3 Not originally plotted in chart book. Partly estimated. • Detailed breakdown of loans and investments now available on June and December dates only. NUMBER OF BANKS AND BRANCHES IN UNITED STATES, 1933-1939 [Figures for 1939 are preliminary] Nonmember banks Member banks Branches E n d of year figures National State Other than mutual savings and private banks Insured * Not insured * Total Mutual savings Private2 In headoflice cities Outside headoffice cities Number of Banking Offices 1933 1934 1935 1936 1937 1938 1939 _ 6,275 6,705 6,715 6,723 6,745 6,723 6,705 . __ 1,817 1,961 1,953 2,032 2,075 2,106 2,177 9, ">41 3 9, 579 8,556 1,088 8,436 1,043 8,340 997 8,224 958 8,098 929 5,154 5,462 5,386 5,325 5,260 5,224 5,187 _ 857 980 1,001 1,051 1,081 1,114 1,175 8, ?41 7,693 1,108 1,046 7,728 7,588 1,004 7,449 960 7,316 917 7,172 885 1,121 1,243 1,329 1,398 1,485 1,499 1,518 960 981 952 981 994 992 1,002 704 705 698 693 691 690 4 683 103 246 143 139 6 69 17,940 19,196 19,153 19,066 18,927 18, 774 18, 661 98 241 138 134 74 68 63 15,029 16,063 15, 869 15, 667 15, 387 15,194 15,033 5 5 5 5 5 5 6 2,911 3,133 3,284 3,399 3,540 3,580 3,628 79 73 Number of Banks (Head Offices) 1933 1934 1935 1936 1937 1938 1939 - - . _ 579 579 570 565 563 555 551 Number of Branches 1933 1934 1935 1936 1937 1938 1939 . . • _ )0 71 828 42 848 891 908 39 37 41 125 126 128 128 128 135 926 44 132 778 1,784 1, 776 1,754 1,749 1,757 1,743 1,738 1,127 1,357 1,530 1,650 1,783 1,837 1,890 1 Federal deposit insurance did not become operative until January 1,1934. a Thefiguresfor December 1934 include 140 private banks which reported to the Comptroller of the Currency under the provisions of Section 21 (a) of the Banking Act of 1933. Under the provisions of the Banking Act of 1935, private banks no longer report to the Comptroller of the Currency and, accordingly, only such private banks as report to State banking departments are in thefiguresshown for subsequent years. 3 Separatefiguresnot available for branches of insured and not insured banks. 4 Comprises 51 insured banks with 24 branches and 500 uninsured banks with 108 branches. Thefiguresfor 1939 exclude one bank with 4 branches which heretofore was classified as an insured mutual savings bank but is now included with "Nonmember banks other than mutual savings6and private banks." Comprises 1 insured bank with no branches and 62 uninsured banks with 6 branches. 350 FEDERAL RESERVE BULLETIN INTERNATIONAL FINANCIAL STATISTICS PAGE Gold reserves of central banks and g o v e r n m e n t s . . . . 352 Gold production 353 > Gold movements . 353-354 International capital t r a n s a c t i o n s of the United S t a t e s . . . . 355-363 Central banks . . 364-367 Bank for International Settlements 368 Money r a t e s 368 Discount r a t e s of central b a n k s . . . 369 Commercial banks Foreign exchange r a t e s . 369-370 . 371 Price m o v e m e n t s : Wholesale prices 372 Retail food prices and cost of living. . . 373 Security prices 373 Tables on the following pages include the principal available statistics of current significance relating to gold, international capital transactions of the United States, and financial developments abroad. The data are compiled for the most part from regularly published sources such as central and commercial bank statements and official statistical bulletins; some data are reported to the Board directly. Figures on international capital transactions of the United States are collected by the Federal Reserve banks from banks, bankers, brokers, and dealers in the United States in accordance with the Treasury Regulation of November 12, 1934. Back figures may in most cases be obtained from earlier BULLETINS and from Annual Reports of the Board of Governors for 1937 and earlier years. Daily and monthly press releases giving daily and monthly average foreign exchange rates will be sent without charge to those wishing them. Other data on the following pages are not regularly released prior to publication. APRIL 1940 351 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Countries in Tripartite Accord Total i (52 coun- United United France Bel- 2 tries) gium States Kingdom End of month 1934—December. 1935—December. 1936—December. 1937—December. 1938—December. 1939—March April May June July August September. October.... November. December 1940—January.... February.. 21,051 21,604 22, 630 23, 964 25,468 24,387 '24,944 '25,119 '25,270 '25,492 '26,097 '25, 234 '25, 303 '25, 513 25, 701 P25, 906 P26,141 8,238 10,125 11, 258 12, 760 14, 512 15,258 15, 791 15,957 16,110 16, 238 16,646 16, 932 17,091 17,358 17, 644 17, 931 18,177 1,584 1,648 2,584 2,689 2,690 1,066 1,066 1,067 1,067 1,162 1,162 1 1 1 1 1 1 590 611 632 597 581 518 520 524 540 573 614 615 611 5,445 4,395 2,995 2,564 2,435 2,436 2,574 2,574 2,574 2,574 2,714 2,714 2,714 2,714 2,714 2,714 2,714 Other countries Switzerland Netherlands Argentina National B.I.S. Bank 624 454 655 648 699 640 573 438 490 930 995 909 834 823 800 769 769 752 754 700 403 444 501 469 431 428 428 428 428 427 431 449 449 453 466 466 595 585 585 579 559 547 535 525 609 P690 P466 British India Bulgaria Canada 275 275 275 274 274 274 274 274 274 274 274 274 274 274 274 P274 P274 Brazil 19 19 20 24 24 24 24 24 24 24 24 24 24 24 24 »24 134 189 188 184 192 210 212 214 213 212 218 218 212 213 214 Chile 29 29 29 30 30 30 30 30 30 30 30 30 211 213 Other countries—Continued End of month Co- Czecho- Denslolombia vakia mark 1934—Dec... 1935—Dec... . 1936—Dec. _. 1937—Dec. . 1938—Dec... 1939-Mar.... AprilMay... June July.... Aug Sept.__. Oct..,.. Nov.... Dec.... 1940—Jan..... Feb.... Egypt Germany 3 Greece 19 16 19 16 24 112 112 91 92 83 55 55 55 55 65 67 66 65 62 55 55 55 55 55 55 55 55 55 55 29 29 31 31 30 28 28 28 28 28 P55 P55 28 P28 23 P23 Italy* Japan 518 270 208 210 193 193 193 193 193 193 193 193 193 193 144 144 144 40 34 26 24 27 21 21 20 20 21 20 21 21 21 21 Hungary 394 425 463 261 164 164 164 164 164 164 164 164 164 164 164 164 P164 End of month 17 1934—Dec 1935—Dec 1936—Dec 1937—Dec 1938—Dec 1939—Mar April May June July Aug Sept Oct Nov. Dec _ _ 1940—Jan Feb Spain« Sweden Turkey Uruguay Yugoslavia other countries* 104 109 114 120 133 184 212 203 189 220 740 735 718 718 525 159 185 240 244 321 22 24 26 29 29 161 '168 '183 '185 '143 134 135 136 137 137 148 149 150 151 152 221 218 218 219 219 222 234 243 254 249 525 525 525 525 525 525 525 525 525 525 332 339 344 346 348 355 357 332 333 308 30 30 30 30 30 30 29 29 29 29 '144 126 126 «134 135 136 131 "156 '156 151 152 P152 253 P253 525 525 258 P258 59 29 P29 New Zealand Norway Peru 61 84 98 82 94 19 19 19 19 19 20 20 19 19 19 P90 P90 P84 96 84 75 83 86 86 84 84 84 84 84 84 19 20 20 20 20 96 107 107 107 107 107 107 103 103 94 84 Poland 90 P19 P19 Government gold reserves 1 not included in previous figures for 53 countries Other countries—Continued Portu- Ruma- South nia Africa gal Mexico Java P60 P140 P140 End of month 1934—Dec. 1935—Dec. 1936—Dec. _ 1937—Dec. _ 1938—MarJune.. Sept... Oct.— Nov.— Dec.-_ 1939—Jan.... Feb... MarApr. .. May.. June.. JulySept. . Dec. — United United France KingStates dom Belgium 31 53 «934 8 1,395 1,489 81 444 759 80 "l54" () 1,732 •103 130 331 381 465 559 455 477 44 85 "l64" r c 1 Reported at infrequent intervals or on dep Preliminary. Revised. Corrected. layed basis: U. S.—Exchange Stabilization Fund 1 Data reported monthly incomplete. For additional data see section at end of table. 2 (Special A/c No. 1); U. K.—Exchange EqualizaFigure for Dec. 1939 officially reported and carried forward. tion Account; France—Exchange Stabilization * Figure for May 1939 officially reported and carried forward. 4 Figure for Dec. 1938 officially reported and carried forward through Nov. 1939; Dec. 1939 Fund and Rentes Fund; Belgium—Treasury. Gold in Swiss and Dutch Funds and in some figure officially reported and carried forward. » Figure for Aug. 1, 1936, carried forward through Mar. 1938; Apr. 1938 figure officially re- other central reserves not reported. » Figure for Mar. 1937, first date reported. ported and carried forward. » Figure for Sept. 1937. « These 17 countries are: Albania, Algeria, Australia, Austria through Mar. 7,1938, Belgian 4 First date reported. Congo, Bolivia, China, Danzig through Aug. 31, 1939, Ecuador, El Salvador, Estonia, Guatemala, Finland, Latvia, Lithuania, Morocco, and Thailand (Siam). « Transferred: from Bank to Account, $1,648, NOTE.—For back figures and description of table see BULLETIN for June 1933, pp. 368-372, 000,000 on Jan. 6, and $1,162,000,000 on Sept. 6, and July 1936, pp. 544-547; also see footnotes to table in BULLETIN for Aug. 1936, p . 667, and Dec. 1939; from Account to Bank, $26,000,000 on Mar. 1 and $94,000,000 on July 12, 1939. 1937, p. 1262. 352 FEDERAL RESERVE BULLETIN GOLD PRODUCTION Outside U. S. S. R. [In thousands of dollarsl Year or month Estimated world production outside U.S.S.R. Production reported monthly Africa Total South Africa Rhodesia $1=25-8/10 382, 532 401,088 426,424 458,102 469,257 1929.. 1930_. North and South America West Africa Belgian United Congo Statesi 1933.. 1934.. 1935.. 1936.. 1937._ 1938._ 1939_. Austra- British lia India grains of gold 9/10 fine; i. e., an ounce of fine gold=$20.67 215,242 11,607 4,297 2,390 221, 526 11,476 4,995 2,699 224,863 11,193 5,524 3,224 238,931 12,000 5,992 3,642 227,673 13,335 6,623 3,631 $1=15-5/21 grains of gold 9/10 6,148 794,498 696,218 385,474 22, 578 11,214 6,148 707,288 366, 795 24, 264 12,153 6,549 823,003 751, 979 377,090 25, 477 13, 625 7,159 7,159 7,386 833,088 396, 768 28,053 16,295 971,514 892, 535 410, 710 28,296 20,784 8,018 I, 041, 576 957, 212 425, 649 28, 532 24, 670 8,470 1,132,856 I, 205, 602 PI, 018,034 448,753 P28,084 '28, 507 8,759 1932.. 1933_. Canada Far East ColomMexico bia Chile 352,237 365,258 386,293 413, 459 411,208 45, 651 47,248 49, 527 50,626 52,842 fine; i. e., 89,467 108,191 126,325 152, 509 168,159 178,143 195, 298 1938—December.. 100,043 84, 237 36,007 2,318 2,240 751 1939—January FebruaryMarch April May June July August SeptemberOctober November. December.. '94,790 '90,919 97,687 94,600 98, 545 99, 511 102,822 107, 257 P106, 866 P107, 489 P103, 191 36,188 34, 505 37, 558 35,613 37,970 37,065 37,952 38,494 37,817 38,459 38, 600 38, 534 2,287 2,069 2,202 2,252 2,355 2,369 2,395 2,431 P2, 441 P2, 453 P2, 380 PIOI, 924 80,220 76,810 82, 717 79,789 83,476 83,602 87,150 91,415 P89, 929 P90,890 *>86,826 P85, 209 P2,450 2,230 2,221 2,346 2,349 2,323 2,277 2,395 2,379 2,432 2,479 2,497 P2, 581 754 688 767 729 779 756 739 731 705 715 686 709 14,980 13, 214 14,424 15,320 15,227 14,520 16,159 16,856 19, 637 21, 693 17,421 15,845 1940—January P 103,773 P86, 843 39, 777 P2,450 P2, 581 739 17,047 15,231 2,700 1,499 1,953 1,562 1,752 1,513 1,614 1,551 1,551 1,735 1,803 1,677 1,873 1,367 655 568 1,198 830 696 968 1,583 777 1,012 1,111 934 P934 7,508 6,785 6,815 6,782 6,919 28,568 30, 559 31,240 40,118 46,982 54,264 55, 761 11,715 11,223 11,468 11,663 11,607 11, 284 11,008 4,076 4,016 4,492 4,301 4,649 4,684 4,399 4,849 6,140 4,392 4,881 P4,881 940 863 938 912 936 910 936 923 888 934 903 925 890 1,033 14,396 1,762 13,684 3,421 14,498 2,542 14,238 1,733 15,133 1,794 15,287 3,216 15,402 3,638 15,722 6,519 14, 752 15,144 1,832 14,818 Pl, 832 15,151 Pl, 832 8,712 9,553 12,134 14, 563 16,873 H, 076 39,862 13,463 2,823 683 43,454 13,813 3,281 428 55,687 12,866 4,016 442 62,933 12,070 5,132 788 60,968 13,169 6,165 3,009 an ounce of fine gold=$S5 103,224 22,297 10,438 5,094 104,023 23,135 12,045 •8,350 114,971 23,858 11, 515 9,251 131,181 26,465 13,632 9,018 143,367 29, 591 15,478 9,544 165,379 32,306 18, 225 10,290 178, 225 P32, 423 19, 951 Pll, 267 P15, 151 Pl, 832 Pl, 367 Gold production in JJ. S. 8. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changes irregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annual production, in millions of dollars, as follows—at $20.67 per fine ounce: 1929, $15; 1930, $31; 1931, $34; 1932, $40; 1933, $56; at $35 per fine ounce: 1933, $95; 1934, $135; 1935, $158; 1936, $185; 1937, $180; 1938 (preliminary), $184. r p Preliminary. Revised. 1 Includes Philippine Islands production received in United States. NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETIN for March 1939, p. 227; February 1939, p. 151; June 1938, pp. 539-540; and April 1933, pp. 233-35. For annual figures of world production back to 1873 (including Russia-U. S. S. R.), see Annual Report of Director of Mint for 1936, pp. 108-109 and 1939, p. 106. Figures for Canada beginning January 1939 are subject to official revision. GOLD MOVEMENTS [In thousands of dollars at approximately $35 a fine ounce] United States Year or month 1934 i 1935 1936 1937 1938 1939 Dec Jan Feb.... Mar.... Apr May.... June July..... Aug Sept Oct Nov.."... Dec 1940 Jan Feb..... Total net imports or net exports Net imports from or net exports (—) to: United Kingdom France Belgium Netherlands Sweden 1,131,994 499,870 260,223 8,902 94,348 3 227,185 1,739,019 315, 727 934,243 1,116, 584 174,093 573, 671 3,351 71,006 1, 585, 503 891, 531 -13,710 90,859 6,461 1,973, 569 1, 208,728 81,135 15,488 163,049 60,146 3, 574,151 3,798 165,122 341,618 28,715 240, 526 101, 707 37,395 156,345 223,281 605, 797 429,404 240,430 278, 636 259, 921 326,074 69, 726 167,980 451,172 52,050 165, 377 250,042 384,925 302,667 128,196 177,805 163, 738 162,450 10,182 18, 556 10,417 236, 391 201,422 23, 906 21, 321 1,979 30,415 16,601 16,181 32,448 Canada Mexico Colom- Philip- Aus- South pine bia Islands tralia Africa 16,944 10,899 11,911 18,397 36,472 10, 557 33, 610 23, 239 Japan 12 12,038 1,029 65 15,335 3,498 8 21, 513 23; 280 25,427 34,713 181 246,464 ,9,162 401 168,740 35,636 74,250 22,862 165, 605 British India All other countries 12,402 86,829 968 95,171 7,511 72,648 54,452 111, 480 1,36$ 76,315 86,987 612, 949 30,270 13,667 39,966 731 2,550 2,107 2,655 6,788 27 14,425 1,797 « 22,181 10,842 4,220 6,852 7,665 12.066 17,191 15,196 34,299 120,837 9,940 65.067 308, 773 2,342 2,496 3,822 1,649 2,050 3,280 4,150 3,956 653 1,794 3,445 3,972 2,089 2,117 2,116 2,754 2,719 3,326 2,179 2,594 3,843 3,022 2,775 3,947 3,188 2,643 2,646 6,585 3,953 4,303 4,844 5,295 5,677 5,034 5,689 5,474 8,420 12, 505 6,472 33 38 10 100 41 50 50 52 11 2,142 10,449 9,885 37,819 5,446 11,410 5,528 10,931 14,093 10,938 10,931 16,425 12,497 9,487 20,101 1 5,092 175 4,360 3,685 4,381 4,944 5 6,972 3,390 2,244 3,023 2,760 6,365 9, 259 4,460 4,065 6 8,541 2,703 715,870 10,138 16, 662 7,592 s 22,812 52, 716 2,550 46,866 2,006 3 3 20, 297 37, 680 4,919 18,872 9,743 9 31,698 6,722 1031,001 46,185 2 1,438 33,678 1,400 29, 256 3,840 816 37,179 27,098 21 84,603 44, 564 3 41, 651 40,449 2 55,081 1 45,554 2 22,640 1 86 2,990 8,781 5,113 28 31, 526 19, 743 974 Switzerland -67 8,227 55,680 2,284 5,644 5,628 1,482 2,990 5,119 1,208 13,931 4,234 2,114 2,117 2,107 2,123 2,120 2,102 3,360 6,155 4,241 li" 76,820 32,304 75,268 46, 989 77,892 39, 735 50,762 29, 998 16,159 2 67,975 50,956 102,404 c 1 Corrected. Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce. 2 Includes $31,822,000 from Argentina. 3 Includes $28,097,000 from China and Hong Kong; $15,719,000 from Italy; $10,953,000 from Norway; $10,077,000 from Chile. 4 Includes $17,710,000 from Argentina. 6 Includes $4,503,000 from Argentina. 6 Includes $5,157,000 from Hong-Kong. 7 Includes $6,363,000 from Italy; $4,087,000 from Hong-Kong, s Includes $5,586,000 from Italy; $6,414,000 from Norway. 9 Includes $19,527,000 from Norway; $5,452,000 from Hong-Kong. 10 Includes $5,566,000 from Italy; $13,878,000 from Norway; $5,570,000 from U. S. S. R. NOTE.—For gross import and export figures and for additional countries see table on p. 324. APRIL 1940 353 Gold Movements—Continued [In thousands of dollars at approximately $35 a fine ounce] United Kingdom Net imports from or net exports (—) to: Year or month Total net imports or net exports () United States GerFrance many* Belgium South Africa, Nether- U.S.S.R. Austra- Rho- British lands lia desia, India West Other British countries Sweden Switzerland All other countries Africa -497,166 -435, 502 -276,830 -834,009 -1,050,395 348,190 121,017 - 1 3 , 585 32, 575 142,137 - 4 , 7 2 6 -17,476 10,796 931 756,215 23,292 -15,133 -21,215 541,187 46,147 -21,993 -16,572 199,965 33,173 348,000 -46,463 115, 540 1934 1935..... 1936..... 1937..... 1938..... 716, 269 369, 722 1,169,931 420,427 -285, 638 1938—June.. July.. Aug... 89,580 24,119 -73,132 -261,143 -210,171 - 9 6 , 508 - 6 6 , 726 - 2 0 , 811 - 6 , 1 3 7 -10,529 -997 - 9 3 , 660 -5,726 -360,016 685 -308, 528 69, 604 -105, 220 -66 -97,371 758 57 56,764 -12,037 47 23, 212 - 5 , 750 6,164 258 -10,041 14, 358 120,075 -7,498 4,077 33, 982 535 6,005 - 2 , 328 - 5 , 245 2,057 9,990 -898 28,104 1939—Jan.... Feb.... Mar... Apr.... May... June... July... Aug.6. —36, 514 -148,005 -259,984 -121,188 -294,077 -51,591 -147,332 -318, 511 -50,814 -3 -160,218 -68 —306, 839 -183 -357, 518 - 1 , 4 3 1 -287,762 -262 -127,293 -412 -182,145 -330 -223,370 2,691 211 -33 -253 396 11 779 88 23, 477 1,039 29 176, 451 19,164 2,008 49,004 4,018 415 22,968 -38 196 8,856 -1 1 - 7 , 4 9 1 -11,275 Sept.. Oct... Nov.. Dec... Germany Year or month 1934.. 1935.. 1936.. 1937.. 1938.. 41,790 37,981 26, 723 24,165 27,831 335, 253 206, 693 404, 295 181, 602 488,814 128, 421 464,837 66, 330 333,750 55, 744 2,024 2,490 2,102 2,839 705 155 528 40,623 31, 516 31,192 16,831 6,530 2,695 7,358 3,725 9,929 6,418 6,581 10,356 3,035 3,023 - 4 , 750 4,204 - 2 0 , 792 4,260 618 1,815 531 5,672 5,613 16,866 681 736 5,631 143 5,671 3,451 5,559 12, 656 45, 394 52, 636 38, 423 49,120 304 1,374 151 - 1 , 1 0 1 1,417 -1,148 4,805 *-47,875 2,975 ' -145,856 2,388 911 3,078 697 4,606 114, 284 5,665 8 5,649 55 Switzerland Total Total net net imimports ports or net or net exports* exports () () -90,920 -46,065 -12,784 -45, 955 647 -54, 858 42,969 -230, 788 -1,868 122, 278 -9,127 -1,714 -3,718 -56,946 -51, 608 11,940 -35,224 - 1 , 245 —1,128 76, 620 -220,229 -88, 524 -105,104 1938—July.. Aug... Sept.. Oct... Nov... Dec— -8,837 -1,338 9,024 1,454 913 -5,690 1939—Jan... Feb... Mar... Apr.__ May.. June._ July.. Aug... Sept. _ Oct.... Nov.. Dec... - 3 , 786 -2,112 -37,332 -162, 645 8,059 -10, 7,765 5,275 - 2 , 730 - 2 , 855 -15,187 -3, France Belgium -29, 235 18, 397 -181,725 -13,940 39, 305 14, 531 -45,061 27, 739 -74, 375 -1,067 -13,431 -2,953 -3,790 -1 -32 -437 -3,793 -2 -1,138 —4, 966 421 -920 -312 -1,955 1,353 1,603 1,347 704 3,762 399 1,847 -3,845 3,618 73, 394 -425 32,921 1,504 153 - 3 , 3 1 8 - 5 7 5 -14,393 -4,618 Italy Neth- Gererlands many* 19,431 2,580 25, 542 342 51, 299 4,600 -657 6,553 11,314 25,125 31, 466 -18,039 -142 -37 -2 -38 -4 All other countries Increase in India: Total net Gold In In imports produc- In- i gold In or net tion in dian sarmark- private exports India ed for rehold() serves foreign ings8 account -43 1,543 -230,720 11,223 -9,607 9 2, 812-161,872 11, 468 -2,990 «> 26, 368 -121,066 11,663 -16,461 10,609 -61, 723 11, 607 -32, 745 •-54,696 11, 284 -25,191 1*546 3,962 222 -10,988 3,824 - 6 , 267 342 -7,082 924 -10,251 -957 2,551 -56 3 - 7 , 661 994 -265 31 ' - 2 , 279 -438 -209 211 549 -149 1 -2,294 -1,274 -7 -125 24 -21 -763 -213 556 -1,581 -97 - 1 5 - 3 , 288 -10, 786 1,547 -1,990 -1,509 -576 - 8 , 327 -14,830 -860 -5,113 -54, 266-104, 650 -4,805 -864 10,819 -3,876 -2,431 - 2 , 573 -3,394 - 2 , 329 -5,419 - 7 3 19, 585 -718 -1,138 -239 -4,202 - 8 , 589 93 6 -8 725 -3,116 - 7 6 -2,049 - 2 , 856 2 10,800 1,033 1,153 355 -171 -244 -10,264 2 4,334 1, 929 —91 2,815 1,234 -887 -204 -5,274 -1,506 -1,030 -1 -25 89 -243 -11 -5,213 44 -541 -5 - 4 , 583 -1,463 1,617 2,965 -12,365 85 -907 -9 - 6 , 255 -1,473 - 2 , 743 - 2 -7,691 -1,338 -44 -1,662 -709 -3, 473 121 2,812 940 863 938 912 937 910 936 923 888 934 903 173 -41 '954 '961 '949 '959 -2 -2 -7 -1,140 228 16,128 -14,071 -6,041 10,464 - 8 , 382 -1,283 418 117 15,940 -616 -158 907 13 33 -117 -1,854 -166 -139 - 7 , 673 - 5 , 4 0 7 -11,429 -16,521 -11,151 -10,498 -22,763 -21,980 - 4 , 671 2,831 1,017 1,511 British India Net imports from or net exports (—) to: United United KingStates dom 62,397 - 9 , 1 2 3 2 88,228 14,126 32, 754 -50, 661 53,465 37, 708 28,067 -10,129 3,998 22,079 - 8 1 -16,596 -55,032 4,922 20, 761 -89,371 -78,029 -219, 670 -150,398 -109,403 -50,075 12,078 -55,490 -10,034 '-6,121 '-8 1,909 ' - 8 , 6 1 1 5,690 ' - 7 , 0 3 6 4,479 ' - 3 , 2 7 0 -3 11, 423 7,749 4,812 5,197 1,839 5,749 942 2,512 6,096 4,563 31 -10,608 -10,174 - 8 , 984 - 7 , 679 -5,104 -10,270 -6,863 -10,421 -15,994 - 6 , 819 r Revised. 1 Beginning April 1938figuresrefer to Greater Germany. 2 Includes $17,465,000 exported to Rumania and unspecified net imports of $95,937,000. 8 Includes $67,655,000 exported to Central and South America. * Figures for April and May include exports to Canada of $45,972,000 and $144,910,000 respectively. * No figures published since August 1939. 6 Includes net exports to Canada of $115,515,000. 7 Through March 1935 gold held by government; subsequently, gold held by Reserve Bank of India to which government gold was transferred. 8 Figures derived from preceding columns; gold movement plus production minus increases in Indian reserves and gold earmarked for foreign account in India. »Includes net import of $19,926,000 from Czecho-Slovakia and net export of $15,374,000 to Austria, w Includes net import of $26,555,000 from Czecho-Slovakia. NOTE.—Switzerland.—In some cases annual aggregates of oflBcial monthly figures differ somewhat from revised official totals published for year as a whole. 354 FEDERAL RESERVE BULLETIN INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935 [In millions of dollars. Minus sign indicates net movement from United States] TABLE 1.—TOTAL CAPITAL MOVEMENT Increase in foreign banking funds in U . S. From Jan. 2,1935, through— Total Total Central bank funds in N . Y. Other Decrease in U . S. banking funds abroad Foreign securities: Return of U. S. funds Domestic securities: Inflow of foreign funds Inflow in brokerage balances 1935—Dec. 31_. 1936—Dec. 30.. 1937—Dec. 29.. 1,412.5 2,608.4 3,410.3 603.3 930.5 1,168.5 9.8 81.1 243.9 593.5 849.4 924.6 361.4 431.5 449.1 125.2 316.2 583.2 316.7 917.4 1,162.0 6.0 12.9 47.5 1938—Aug. 31_. Sept. 28. Oct. 26._ Nov. 30. 3,067.3 3,452.9 3, 672. 2 3,709. 2 803.2 1,161.2 1,298.9 1, 392.1 111.6 168.0 205.3 220.1 691.6 993.2 1,093. 6 1,172.1 460.6 477.2 496.3 472.7 617.6 625.0 638.4 598.4 1,125.3 1,125.4 1,182.4 1,194.4 60.6 64.1 56.2 51.5 Dec. Dec. Dec. Dec. 3, 720.4 3,687. 6 3, 750.1 3, 779. 2 1,409. 5 1,395.4 1,409. 2 1, 432. 7 238.9 188.1 204.2 216.3 1,170. 6 1, 207. 2 1,205.1 1,216. 5 453.5 442.7 482.1 478.1 604.6 605.3 608.7 610.0 1,201.0 1,192. 5 1,202.2 1,210.9 51.7 51.7 48.0 47.6 3, 798. 7 3, 788. 6 3,813. 5 3,812. 6 1,387.9 1,386.5 1,411.1 1,421. 4 201.0 193.6 180.5 187.3 1,186.9 1,192.9 1, 230. 6 1,234.2 510.1 494.3 503.3 500.9 641.8 645.1 641.8 644.7 1,211.4 1,213.3 1,204.8 1,188.4 47.6 49.4 52.5 57.2 7_._. 14... 21... 28... 1939—Jan. 4 . . Jan. 11. Jan.18. Jan. 25. Feb. Feb. Feb. Feb. 1.... 8___. 15... 22.. 3,852.6 3,876.0 3,912. 9 3,940.7 1,478. 2 1, 507.8 1, 512. 9 1,517.8 197.5 243.3 278.1 239.6 1,280.7 1,264. 5 1,234.8 1,278. 2 496.5 484.3 514.7 535.0 634.6 635.3 634.8 637.5 1,181.4 1,187.0 1,189.0 1,190.6 61.9 61.7 61.4 59.8 Mar. Mar. Mar. Mar. Mar. 1... 8... 15. 22.. 29.. 3,986.0 3,997.4 4,015.6 4,083.1 4,134.7 1,544.9 1, 560. 5 1, 568.1 1,648.3 1,693.0 265.1 281.1 287.3 247.2 256.8 1,279. 7 1,279. 3 1,280.8 1,401.1 1,436.2 548.5 543.3 553.4 549.5 550.5 641.3 644.5 643.6 644.3 646.7 1,192.6 1,190.0 1,180. 5 1,174. 5 1,180.6 58.8 59.2 61.1 66.5 63.9 Apr. 5.__ Apr. 12.. Apr. 19.. Apr. 26.. 4,241.8 4,317. 6 4,402.9 4,479. 6 1,759.6 1,819.8 1,892.9 1,934.4 251.3 278.6 243.8 240.9 1,508.3 1,541. 2 1,649.0 1,693. 5 572.0 582.2 587.5 611.8 652.6 652.9 655.3 657.5 1,191.7 1,193.8 1,194.3 1,202. 9 65.9 68.9 72.9 73.0 May May May May May 4,523. 7 4, 544.5 4, 567. 6 4, 570. 0 4, 570.8 2,019.6 2,030.7 2,042.8 2,046. 3 2,041. 5 245.9 264.5 292.8 299.1 302.1 1,773. 6 1,766.2 1,750.0 1,747.3 1, 739. 5 596.1 591.3 597.3 596.0 599.8 621.8 637.1 642.3 644.1 647.6 1,211.9 1,210.2 1,211.8 1,209. 3 1,209.2 74.4 75.3 73.4 74.2 72.7 3__. 10.. 17.. 24.. 31.. June 7... June 14.. June 21.. June 28.. 4, 4, '4, '4, 550.0 555.9 584. 2 593. 6 2,008. 2 2,019.8 2,031. 7 2,048.3 327.8 364.4 364.5 361.8 1,680.4 1, 655. 5 1, 667.3 1, 686. 5 601.3 593.7 '608. 7 ••607. 5 658.4 661.5 664.3 664.5 1,210.6 1,208.3 1,205.6 1,199. 3 71.6 72.6 73.8 74.0 July July July July 5.__ 12.. 19.. 26.. '4,611.6 '4, 588. 9 '4, 591.0 '4,613.4 2,049.7 2,031.2 2,042.5 2,066.2 306.9 293.6 288.6 301.2 1, 742. 9 1, 737. 5 1, 753. 9 1, 765.0 •"608. 0 '607. 9 '604.5 '606. 9 678.5 677.1 677.0 678.0 1,199.3 1,194.4 1,185.0 1,180.0 76.1 78.4 81.9 82.3 Aug. Aug. Aug. Aug. Aug. 2... 9... 16.. 23.. 30_. r 4, 635.1 '4,662. 7 '4, 709. 8 »-4, 827. 9 '4, 863. 3 2,093.9 2,139.1 2,182.2 2,287.3 2,334.2 327.1 323.2 305.5 352.5 371.6 1, 766.8 1,815.8 1,876. 7 1,934.9 1,962. 6 >"596. 8 '609. 9 '622.8 '633.0 '620. 6 680.2 652.8 654.5 656.9 657.8 1,182. 2 1,176. 5 1,164.9 1,165.1 1,165. 7 82.1 84.5 85.4 85.5 85.0 6.. 13. 20. 27. >% 882. 3 r 4, 940. 3 '4, 976. 0 r4, 955. 4 2,341. 5 2,389.3 2,434.6 2, 412.4 409.0 464.7 510.7 485.1 1,932. 5 1,924.6 1,923.9 1,927. 3 '623.5 '•621. 7 '612. 5 '618.4 661.7 668.9 674.4 676.9 1,171. 3 1,181. 3 1,173.4 1,164.4 84.2 79.2 81.1 83.1 Oct. Oct. Oct. Oct. 4... 11.. 18.. 25. _ '4,896. 8 ^4,872. 8 '4,871. 2 "•4,882.0 2,386. 5 2,370. 6 r2, 360. 6 '2, 384. 7 483.6 462.8 441.6 442.9 1,902. 9 1,907. 7 '1,919.0 '1,941. 9 '594.6 598.1 '601. 7 '601. 0 684.6 685.2 686.7 687.3 1,150.2 1,144.4 1,141.7 1,130.6 80.9 74.6 80.5 78.5 Nov. Nov. Nov. Nov. Nov. 1.. 8__ 15. 22. 29. '4,858. 6 r 4,825.0 '4,862. 7 4, 822. 9 4,875. 6 '2, 366. 9 »-2, 341. 6 r2, 362.4 r2, 329. 3 '2, 377. 4 494.8 490.3 481.6 433.9 435.9 n, 872. 0 1 , 851. 3 ' 1 , 880. 8 '1,895. 3 ••1, 941. 5 '599. '597. '618. '615. '622. 6 3 8 3 0 688.7 690.4 693.2 694.3 695.4 1,123. 7 1,115.9 1,109. 2 1,107.1 1,103.7 79.8 79.9 79.2 76.9 77.1 Dec. 6__. Dec. 13.. Dec. 20.. Dec. 27.. 4,867.6 4,860.0 4,904. 8 4,893.0 2, 366. 9 2, 366. 6 2,398. 5 2, 383. 5 430.9 413.3 441.0 430.0 1,936.1 1,953. 3 1,957. 5 1,953. 5 626.8 619.7 619.6 612.8 699.0 700.7 711.8 720.1 1,098.9 1,096. 5 1,096. 8 1,098. 5 75.9 76.5 78.1 78.1 Sept. Sept. Sept. Sept. r ' Revised in part to exclude unreal movement (previously recorded in week ending October 18) which was the result of a correction in the reporting practice of one bank; see notes to Tables 4, 8 and 9. * NOTE .—Statistics reported by banks, bankers, brokers, and dealers. For back figures and description of the statistics, see BULLETIN for April 1939, pp. 284-296; April 1938, pp. 267-277; and May 1937, pp. 394-431. APRIL 1940 355 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2, 1935—Continued [In millions of dollars. Minus sign indicates net movement from United States] TABLE 2.—TOTAL CAPITAL MOVEMENT, BY COUNTRIES From Jan. 2, 1935, through- Total United Kingdom France Netherlands Switzerland Germany Italy Other Europe Latin Total Europe Canada America 1935—Dec. 31. 1936—Dec. 30_ 1937—Dec. 29. 1,412. 5 2,608.4 3,410. 3 554.9 829.3 993.7 210.2 299.5 281.7 114.5 229.7 311.9 130.4 335.5 607.5 36.6 83.1 123.9 24.0 45.6 22.1 130.0 228.5 312.2 1,200.6 2.051.3 2, 653.0 1938—Aug. 31. Sept. 28. Oct. 26.. Nov. 30. 3,067.3 3,452. 9 3, 672. 2 3, 709. 2 896.7 983.2 1,081. 8 1,114. 6 264.6 308.7 335.2 346.7 255.2 298.2 311.2 325.4 484.8 504.3 546.1 545.7 136.2 131.5 132.7 136.4 23.9 20.6 27.4 26.2 306.3 434.5 445.4 444.6 714. 21. 28. 3, 720.4 3, 687. 6 3, 750.1 3, 779. 2 1,156.1 1,133. 2 1,172. 0 1,186.1 324.0 330.3 333.9 339.5 326.8 313.4 322.5 324.6 546.2 547.1 554.9 554.0 135.2 136.2 139.9 140.7 28.8 29.6 32.8 33.0 1939—Jan. 4... Jan. 11_. Jan. 18.. Jan. 25.. 3, 798. 7 3, 788. 6 3, 813. 5 3,812.6 1,183.8 1,160. 7 1,162. 5 1,142.1 339. 6 348.8 349.7 352.9 328.6 327.3 330.1 330.5 557.5 552.6 542.1 566.7 140.5 139.8 141.3 140.4 Feb. 1__ Feb.8Feb. 15Feb. 22. 3.852.6 3.876.0 3,912. 9 3,940. 7 343.3 353.8 356.2 366.3 342.0 348.6 349.7 350.5 573.0 577.5 574.8 579.0 Mar. 1Mar. 8 Mar. 15. Mar. 22. Mar. 29. 3, 986. 0 3, 997. 4 4,015.6 4.083.1 4.134.7 1,152. 9 1,158. 5 1.179. 8 1.180. 5 1,197. 5 1,199. 7 1, 209.0 1, 203. 4 1, 203.1 363.5 368.5 366.1 367.8 366.8 363.1 360.7 365.5 384.8 383.6 Apr. Apr. Apr. Apr. 5... 12.. 19.. 26.. 4, 241. 8 4,317.6 4,402. 9 4,479. 6 1, 252. 9 1,296. 5 1, 280. 6 1, 303. 3 381.9 387.8 409.4 421.6 May May May May May 3— 10. 17. 24. 31. 4, 523. 7 4, 544. 5 4, 567. 6 4, 570.0 4, 570.8 1,316. 2 1,313. 7 1,331.0 1, 334. 6 1, 337. 6 June 7... June 14.. June 21 _. June 28.. 4, 550.0 4, 555.9 4, 586. 2 4, 595. 6 July July July July 5... 12.. 1926.. Aug. Aug. Aug. Aug. Aug. 2... 9... 16. 23. 30. Far East All other 70.9 201.2 410.6 128.3 184.0 224.6 12.7 21.4 15.9 2, 367. 5 2,681.1 2,879. 8 2,939. 5 150.5 106.3 126.2 124.8 165.5 189.9 409.8 442.9 422.3 389.6 135.4 167.1 168.1 152.8 28.3 37.1 36.4 37.3 449.4 455.4 454.2 2,966. 5 2,945.1 3,010. 2 3.041. 7 177.7 174.5 166.5 157.2 387.6 388.0 389.2 389.5 151.7 143.1 148.8 156.8 36.9 36.8 35.4 34.1 32.2 30.3 30.4 29.7 472.0 479.5 486.1 488.3 3,054. 2 3,039.0 3.042. 3 3,050. 6 155.3 161.1 167.8 164.0 384.6 389.2 389.0 390.5 168.4 159.2 174.8 168.0 36.2 40.0 39.6 39.5 140.6 144.5 146.1 145.3 28.1 25.0 23.5 25.5 484.7 483.5 478.6 476.9 3,064. 5 3,091. 4 3,108.8 3,124.0 171.3 170.6 171.0 171.7 396.4 395.5 403.6 182.1 177.3 199.1 202.3 39.8 40.4 38.6 39.2 577.2 575.2 578.3 567.6 587.6 146.8 146.4 150.4 149.2 150.2 24.2 24.8 24.3 23.8 24.7 490.0 496.4 495.7 515.4 536.8 3,162. 3 3,171. 7 3,189. 3 3, 212. 2 3, 252. 9 164.7 165.9 173.0 188.0 185.1 404.4 409.8 413.5 436.0 443.5 212.0 207.0 198.5 202.3 206.4 42.6 43.2 41.4 44.6 46.8 394.6 394.6 407.7 405.4 592.5 590.2 596.0 595.6 146.8 147.6 148.8 146.9 24.3 23.6 23.6 26.0 545.0 561.4 588.1 595.9 3, 381.1 3, 401. 7 3, 454. 3 3,494. 7 199.6 200.2 209.6 216.8 452.1 460.5 473.2 201.1 204.6 213.2 231.4 50.9 50.6 52.5 56.2 430.1 430.0 428.1 426.9 431.1 405.1 406.2 402.3 393.7 391.1 598.1 599.8 602.1 598.3 595.3 149.0 148.0 148.6 148.2 148.7 26.0 26.1 27.2 28.6 29.1 605.7 604.3 605.3 608.7 606.5 3, 530. 2 3, 528. 0 3, 544. 7 3, 539. 0 3, 539. 4 226.3 237.8 239.8 242.0 241.0 491.5 499.7 499.1 505.8 507.4 222.1 226.0 230.2 226.7 226.4 53.6 53.1 53.8 56.5 56.6 1, 345. 7 1, 354. 7 1, 355. 4 1, 360. 2 424.7 429.5 439.1 439.7 391.1 400.8 397.6 401.0 595.4 596.4 606.5 599.2 148.3 148.0 148.8 149.5 28.3 28.8 28.6 29.5 592.3 596.2 604.2 3, 531.8 3, 550.5 3, 572. 2 3, 583. 3 234.7 234.6 239.8 230.5 499. 8 495.2 495.5 500.2 228.1 217.0 220.5 223.8 55.6 58.7 58.3 57.9 4, 613. 7 4, 590. 9 4, 593.1 4, 615. 4 1, 330. 5 1, 307.1 1, 309.1 1, 312. 9 455.3 451.8 451.5 441.9 400.9 409.1 408.4 407.6 603.2 603.2 600.4 607.0 150.3 149.6 151.5 150.1 30.5 30.8 30.4 30.9 615.5 617.8 617.7 616.9 3, 586. 2 3, 569. 5 3, 569.1 3, 567.1 248.9 237.7 235.5 248.8 498.4 496.7 500.1 512.3 221.4 223.5 224.5 224.1 58.8 63.6 63.9 63.2 4, 637. 2 4, 664.8 4,711.8 4,830. 0 4, 865. 3 1, 337. 7 1, 326. 5 1, 341. 6 1, 386. 4 1, 326. 3 441.9 444.3 451.0 449.9 473.4 405.7 409.7 407.7 408.8 412.1 606.8 607.5 600.6 618. 7 647.2 151.5 152.4 151.7 149.8 148.8 31.2 31.4 32.2 30.9 26.1 617.3 619.8 635.4 664.3 665.1 3, 592. 0 3, 591. 6 3, 620. 3 3, 708. 7 3, 699.1 259.1 267.1 270.7 275.8 291.8 516.1 521.7 523.2 530.2 536.1 207.2 220.3 236.1 248.8 259. 4 62.7 64.0 61.4 66.4 78.9 4.884. 4 4,943. 7 4,979. 3 4,958. 7 1,351.8 1,369. 7 1,413.4 1, 368.1 486.3 488.0 478.5 459.6 651.7 658.2 665.0 671.1 149.9 151.6 151.4 151.1 24.7 24.8 31.3 32.9 665.3 676.0 676.6 686.0 3, 743. 3 3, 794. 6 3, 858. 5 3, 817. 2 261.2 271.6 253.6 260.9 547.0 540.6 530.7 528.0 250.0 262.8 261.6 276.4 82.9 74.0 74.9 76.2 4... 11.. 18.. 25.. 4,900.1 4,876.1 4, 874.5 4.885. 3 1, 337. 8 1, 331. 2 1, 326. 5 1, 301. 4 461.2 445.8 431.1 430.9 413.6 426.4 442.3 448.4 447.8 438.5 442.6 446.8 666.1 665.7 674.9 686.5 153.5 155.6 157.2 159.1 33.7 35.4 47.4 48.0 683.3 689.1 685.8 710.3 3.783.4 3, 761. 3 3, 765. 6 3, 783.1 249.1 249.1 246.2 239.0 525.4 528.0 522.8 522.2 263.9 259.7 258.5 260.2 78.4 78.0 81.5 Nov. 1__. Nov. 8... Nov. 15_. Nov. 22.. Nov. 29.. 4,861.9 4, 828. 3 4, 866.1 4,827. 7 4,880. 4 1, 277. 3 1, 258.1 1, 203. 7 1,165. 8 1,157. 2 429.5 431.7 447.9 452.6 453.1 449.0 447.0 454.8 453.9 457.8 684.2 699.8 720.3 714.1 719.1 159.8 158.3 160.4 160.9 162.9 47.6 48.0 52.7 50.9 55.8 707.6 704.5 708.6 719.3 725.3 3, 754. 9 3, 747. 4 3,748. 4 3, 717. 6 3, 731. 2 254.0 250.0 259.0 255.6 263.2 515.1 492.9 497.5 493.7 504.0 253.4 257.2 271.3 270.4 287.3 84.4 Dec. Dec. Dec. Dec. 4,872. 5 4,865.0 4,909. 8 4,898. 0 1,136. 5 1,109. 9 1,136. 0 1,117.3 446. 3 445.4 445.0 442.3 457.1 464.7 472.9 469.9 724.8 744.9 741.1 759.1 164.5 164.2 163.7 163.3 51.1 54.6 55.7 55.9 741.2 736.9 761.9 753.8 3, 721. 5 3, 720. 6 3, 776. 3 3, 761. 5 257.8 250.5 235.5 229.2 503.3 503.3 506.2 505.9 294.8 293.3 294.7 299.4 95.1 97.3 97.2 101.9 Dec. Dec. Dec. Dec. Sept. Sept. Sept. Sept. Oct. Oct. Oct. Oct. 6__. 13.. 20.. 27_. 6—. 13— 20.. 27.. 0) 90.5 94.8 Inflow less than $50,000. 356 FEDERAL RESERVE BULLETIN INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2,1935—Continued [In millions of dollars. Minus sign indicates net movement from United States] TABLE 3.—FOREIGN BANKING FUNDS IN UNITED STATES, BY COUNTRIES From Jan. 2, 1935, through- Total United Kingdom France Netherlands Switzerland Germany- Italy Other Europe Total Latin Europe Canada America Far East All other 1935—Dec. 31 1936—Dec. 30 1937—Dec. 29 603. 3 930.5 1,168. 5 128.6 163.5 189.3 129.6 144.2 111.8 55.7 65.9 76.3 72.4 109.8 288.4 2.7 7.3 23.0 6.9 60.7 79.7 109.4 453.5 588.9 791.7 46.0 86.8 76.3 33.5 149.3 166.3 58.8 90.4 126.2 11.5 15.2 8.0 1938—Aug. 31 Sept. 28 Oct. 26..._ Nov. 30 803.2 1,161. 2 1,298.9 1,392.1 166.0 236.3 295.3 307.3 94.5 133.5 158.2 166.2 30.7 68.3 66.6 81.0 162.5 177.3 205.9 201.9 -8.0 -12.0 -11.6 -10.8 -1.0 -1.5 3.9 2.1 62.5 185.9 191.8 187.6 507.3 787.8 910.1 935.2 84.5 90.7 126.4 183.1 133.3 164.1 138.9 134.7 64.0 96.9 101.7 115.4 14.2 21.7 21.8 23.7 Dec. Dec. Dec. Dec. 7_ — 14 21 28". 1,409. 5 1,395. 4 1,409. 2 1,432. 7 341.7 328.6 351.1 366.7 155.6 154.4 154.9 158.8 81.6 76.4 82.5 84.4 201.2 202.2 206.4 203.7 -12.8 -12.1 -10.3 -9.8 .9 3.8 3.8 191.5 196.6 194.4 203.0 959.6 947.1 982.8 1,010. 6 170.6 169.1 143.0 135.1 134.5 134.4 135.3 134.0 121.7 120.9 126.4 132.7 23.0 23.8 21.8 20.4 1939—Jan. 4 Jan. 11 Jan. 18—_ Jan. 25_-_ 1,387. 9 1, 386. 5 1,411.1 1,421.4 364.0 340.4 347.9 347.0 155.3 165.0 165.5 167.8 87.9 85.4 87.9 89.5 205.1 198.8 189.2 213.1 -11.8 -12.4 -11.8 -12.9 1.7 .8 .5 -.4 208.6 214.1 221.0 222.2 1,010. 7 992.0 1,000. 2 1,026.4 101.6 105.3 115.2 105.2 127.6 130.7 129.5 129.1 125.8 133.2 141.3 136.2 22.2 25.1 24.9 24.5 Feb. 1- — Feb. 8 . — Feb. 15 Feb. 22. Mar. 1—Mar. 8 — . Mar. 15 Mar. 22 Mar. 29 1,478. 2 1, 507. 8 1, 512. 9 1, 517. 8 358.0 370.7 377.5 373.0 162.8 169.1 177.3 184.4 100.5 106.8 105.6 105.4 220.2 224.6 222.0 224.7 -13.8 -13.0 -13.7 -13.0 -.9 -3.1 -5.3 -5.8 221A 219.4 212.2 210.8 1,048. 2 1.074. 4 1.075. 7 1,079. 6 125.5 128.8 129.7 123.1 133.6 138.2 138.0 143.7 145.8 141.0 145.6 147.5 25.1 25.4 23.8 23.9 1, 544.9 1, 560. 5 1, 568.1 1, 648.3 1, 693.0 395.8 396.6 395.7 396.0 401.8 182.4 189.9 184.1 186.8 187.4 116.4 112.4 117.3 134.6 129.9 222.5 221.2 226.0 218.1 233.4 -12.0 -12.8 -9.8 -11.1 -10.9 -6.9 -6.7 -5.6 -4.6 -3.9 224.4 231.0 231.1 249.2 267.8 1,122. 7 1,131. 7 1,138. 8 1,169. 0 1, 205. 5 112.4 114.9 121.6 139.4 136.5 143.0 148.9 150.7 171.4 179.8 139.7 137.4 130.7 139.4 139.9 27.1 27.7 26.2 29.1 31.3 Apr. Apr. Apr. Apr. 5 12 19 26 1, 759. 6 1, 819. 8 1,892. 9 1,934.4 431.5 473.3 459.2 476.7 198.9 203.7 223.9 236.8 137.0 135.0 145.4 141.0 234.0 230.3 233.5 230.6 -14.9 -14.5 -14.2 -15.7 -5.4 -6.2 -6.0 -5.7 271.8 285.8 311.4 318.4 1,252. 7 1, 307. 4 1, 353. 0 1, 382.1 152.1 151.1 159.6 166.9 184.6 191.3 202.4 209.6 135.6 136.6 143.2 140.4 34.6 33.4 34.7 35.3 May May May May May 3 10...^__ 17 24 31 2,019. 6 2.030. 7 2,042.8 2,046. 3 2,041. 5 484.9 489.2 503.0 507.9 505.8 244.3 243.6 239.6 239.5 243.2 139.4 141.0 136.2 126.7 123.2 230.8 232.2 233.4 228.2 224.7 -15.1 -15.9 -15.1 -15.6 -14.0 -6.4 -6.7 -6.5 -5.1 -4.4 324.3 322.6 323.2 326.7 323.6 1,402. 2 1,405. 9 1, 413. 8 1,408. 3 1,402.1 216.8 215.2 213.5 212.6 209.3 221.0 228.0 236.4 247.8 250.7 145.2 147.9 145.1 140.7 142.8 34.3 33.6 34.1 37.1 June June June June 7 14 21 28 2,008. 2 2,019. 8 2.031. 7 2.048.3 518.0 533.0 527.6 535.2 234.5 240.5 247.6 252.3 122.8 131.7 127.0 132.0 223.9 223.6 233.7 227.1 -14.9 -14.6 -15.0 -14.5 -6.2 -6.3 -6.2 -6.6 315.4 309.7 312.7 320.0 1, 393. 5 1,417. 6 1,427. 5 1,445. 5 193.2 192.9 194.9 191.5 245.8 240.5 238.5 242.0 140.1 131.2 132.8 131.5 35.6 37.6 38.0 37.8 July July July July 5 12 19 26 2,049. 7 2,031. 2 2, 042. 5 2,066. 2 506.1 484.1 492.1 495.3 264.3 261.5 260.7 252.1 133.4 140.1 141.0 139.9 229. 8 232. 3 230.1 235.1 -15.1 -15.9 -14.5 -15.9 -6.2 -5.4 -6.2 -6.0 330.5 332.9 332.5 332.7 1.442.8 1,429. 7 1,435. 6 1,433. 2 192.1 182.8 181.6 193.5 239.8 238.5 243.2 254. 5 136.9 137.5 138.8 142.6 38.1 42.7 43.3 42.4 Aug. Aug. Aug. Aug. Aug. 2 9 16 23 30 2,093. 9 2,139.1 2,182. 2 2, 287. 3 2, 334.2 517.0 511.7 529.5 570.1 522.3 252.1 253.9 262.6 263.6 283.7 138.9 144.6 143.0 140.9 144.8 234.9 234.6 226.2 243.0 270.0 -15.3 -15.5 -15.7 -17.5 -18.5 -5.5 -5.2 -4.1 -5.2 -7.4 332.8 335.6 350.1 379.2 384.1 1.454.9 1,459. 7 1,491. 6 1, 574.1 1, 579. 0 205.4 232 A 235.6 240.2 256.1 258.6 261.4 260.7 265.5 268.9 133.8 142.7 154.5 162.9 172.8 41.2 42.9 39.8 44.7 57.5 Sept. Sept. Sept. Sept. 6 13 20 27 2, 341. 5 2, 389. 3 2,434. 6 2.412.4 547.4 575.7 624.8 584.5 290.2 292.0 283.0 263.8 144.8 152.2 166.1 172.0 273.7 276.7 281.2 286.2 -21.6 -21.4 -21.7 -21.9 -8.5 -8.3 -2.4 -1.6 378.2 388.9 389.6 399.5 1, 604. 2 1, 655. 9 1, 720. 7 1, 682. 5 230.2 236.4 219.5 225.2 279.2 270.4 263.8 262.0 167.1 174.9 177.2 188.5 60.9 51.8 53.4 54.3 r 2, 386. 5 2, 370.6 2, 360. 6 2, 384.7 564.4 572.4 576.2 558.5 259.3 244.8 229.2 227.8 172.1 163.6 167.9 172.0 281.1 282.7 283.0 293.8 -20.1 -21.5 -20.2 -20.0 .2 1.3 12.2 12.8 398.5 408.1 403.0 428.7 1, 655. 5 1, 651. 3 1, 651. 3 1, 673. 5 226.0 222.1 211.2 209.0 261.8 262.3 258.1 258.1 187.4 179.6 182. 2 186. 4 55.8 55.3 57.7 57.6 Oct. Oct. Oct. Oct. 4 11 18 25 Nov. Nov. Nov. Nov. Nov. 1 8 15 22 29 •2, 366. 9 •2, 341.6 2, 362.4 '2, 329. 3 •2, 377.4 541.5 528.2 471.0 435.9 429.4 223.9 224.5 241.4 244.7 244.1 174.6 171.6 178.6 176.4 180.7 290.4 305.2 324.0 315.9 320.4 -20.5 -20.3 -19.7 -20.4 -18.4 12.2 12.3 13.5 12.5 16.7 425.6 423.2 427.9 440.8 446.9 1, 647. 7 1, 644. 7 1, 636. 8 1, 605. 9 1, 620. 0 225.3 220.7 225.2 218.9 227.4 250.9 231.4 231.3 231.9 240.0 182. 3 187. 7 ••203. 5 '206. 2 '218.5 60.6 57.1 65.6 66.4 71.4 Dec. Dec. Dec. Dec. 6 13 20 27 2, 366. 2, 366. 2, 398. 2, 383. 410.0 386.2 412.8 396.2 237.5 236.1 234.4 231.6 180.2 187.0 194.8 190.8 324.5 342.5 335.4 352.0 -18.9 -20.0 -21.0 -22.2 10.9 14.4 16.3 16.7 467.7 457.4 481.5 473.1 1, 612. 1, 603. 1, 653. 1, 638. 220.8 215.8 193.9 185.0 239.0 241.0 240.7 243.6 224.3 232.3 236.6 238.9 70.8 73.8 73.3 77.8 9 6 5 5 0 6 9 2 r Revised to exclude unreal movement (previously recorded in week ending October 18) which was the result of a correction in the reporting practice of one bank; see note to Table 8. APRIL 1940 357 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2, 1935—Continued [In millions of dollars. Minus sign indicates net movement from United States] TABLE 4.—UNITED STATES BANKING FUNDS ABROAD, BY COUNTRIES From Jan. 2, 1935, Total through— United Kingdom France Nether, lands Switzerland Germany Italy Other Europe Latin Total Europe Canada America Far East All other 1935—Dec. 31 1936—Dec. 30 1937—Dec. 29 361.4 431.5 449.1 208.8 178.0 207.4 48.1 62.0 65.3 -.4 -3.3 -4.4 1.6 2.7 2.6 29.7 66.0 105.1 13.7 16.3 6.5 22.0 26.9 310.2 343.7 409.3 -4.6 36.9 —21.7 20.1 24.9 51.6 37.3 30.4 18.7 -1.6 -4.4 -8.7 1938—Aug. 31 Sept. 28 Oct. 26 Nov. 30 460.6 477.2 496.3 472.7 154.8 170.3 192.2 201.2 63.6 67.4 64.9 65.9 -7.1 -4.0 -1.9 -8.0 3.3 3.7 4.2 2.6 132.6 132.1 134.5 137.4 13.1 10.2 11.5 12.1 32.5 33.4 32.4 32.0 392.8 413.1 437.7 443.2 16.3 12.3 10.5 18.2 71.1 71.8 73.1 68.1 — 15.3 -16.0 -19.8 -50.1 -4.3 -3.9 -5.2 Dec. Dec. Dec. Dec. 7 14 21 28 453.5 442.7 482.1 478.1 204.0 195.5 210.6 204.5 54.1 60.4 64.2 65.5 -8.6 -8.5 -7.6 2.1 2.3 3.3 2.6 138.2 138.4 140.2 140.3 13.0 13.5 13.8 13.9 32.1 32.5 32.7 33.0 435.0 434.2 457.2 453.0 17.0 15.9 32.6 30.6 66.4 66.3 65.5 66.8 -58.4 -66.3 -66.3 -65.0 -6.5 -7.4 -7.0 -7.2 1939—Jan. 4 Jan. 11 Jan. 18 Jan. 25 510.1 494.3 503.3 500.9 206.2 205.0 201.8 193.6 68.4 68.2 69.7 70.0 -5.6 -6.1 -5.5 -5.2 2.6 2.9 3.6 3.6 141.7 141.5 142.5 142.6 13.7 12.5 12.8 12.9 33.8 35.5 34.8 35.9 459.6 459.6 453.3 35.9 37.9 39.9 43.9 67.7 68.5 70.2 -46.5 -64.6 -58.1 —60.3 -7.0 -6.3 -6.6 -6.3 Feb. Feb. Feb. Feb. 1 8 15 22 496.5 484.3 514.7 535.0 200.5 189.6 203. 3 210.2 64.8 67.7 63.1 66.4 -4.8 -5.2 -4.4 -3.7 3.6 3.5 3.6 3.8 143.5 146.5 148.8 147.2 11.7 10.7 11.5 13.9 31.7 31.8 32.1 31.7 451.0 444.6 458.1 469.4 42.1 40.2 41.0 47.3 69.7 66.4 65.7 67.6 -59.8 -60.6 -43.4 -42.8 -6.5 -6.3 -6.6 -6.5 Mar. Mar. Mar. Mar. Mar. 1 8 15 22 29 548.5 543.3 553.4 549.5 550.5 201.5 203.6 211.6 214.5 209.2 66.0 63.4 67.1 65.7 64.9 -3.7 -3.4 -4.2 -1.8 -1.5 4.0 4.2 4.0 3.1 4.5 147.7 148.1 149.0 149.0 149.8 13.5 13.8 12.0 10.6 10.8 31.2 31.1 30.3 30.3 30.9 460.1 460.7 469.8 471.5 468.6 51.3 49.3 50.5 49.6 49.9 67.9 66.2 68.3 67.9 66.5 -24.9 -26.6 -28.6 -33.3 -28.1 -6.0 -6.2 -6.6 -6.3 -6.4 Apr. Apr. Apr. Apr. 5 12 19.. 26 572.0 582.2 587. 5 611.8 226.0 228.7 226.5 227.9 67.9 68.0 67.9 67.1 -.5 .1 .8 .7 5.0 4.5 4.5 4.5 150.8 151.2 152.2 151.7 11.9 12.0 11.8 13.7 33.0 33.8 35.0 35.1 494.1 498.3 498.7 500.8 44.6 46.4 47.9 48.3 69.5 70.6 71.7 71.1 -30.3 -27.8 -25.4 -6.0 -5.9 -5.3 -5.4 -2.4 May May May May May 3 10 17 24 31 596.1 591.3 597.3 596.0 599.8 229.9 225.8 231.1 231.1 236.8 67.3 67.2 70.2 68.9 68.1 .7 -1.1 -1.2 3.9 4.0 3.7 4.2 4.7 153.1 153.0 152.8 153.0 152.0 14.1 14.6 15.3 15.4 15.3 38.3 38.3 38.0 37.8 38.7 507.2 501.8 509.9 509.7 515.4 44.0 44.0 45.2 47.6 46.9 69.5 70.4 61.1 56.3 54.8 -20.1 -20.1 -14.4 -12.7 —13.0 -4.6 -4.8 -4.6 -4.8 -4.3 June June June June 7 14 21 28 601.3 593.7 ••608. 7 ••607. 5 233.0 230.1 237.6 236.7 71.0 69.8 71.1 68.1 -.7 -.4 .5 -1.0 4.7 4.6 4.5 3.6 152.7 152.0 153.3 153.8 16.2 16.7 16.5 17.7 38.3 38.2 38.8 39.9 515.2 510.9 522.1 518.8 46.5 44.1 46.5 42.2 51.9 52.5 54.7 55.7 -8.0 -10.5 -8.6 -2.9 -4.3 -3.3 -6.0 -6.3 July July July July 5 12 19 26 ••608. 0 '607. 9 "604. 5 '606-. 9 236.0 236.0 233.8 237.0 71.4 70.9 71.4 71.5 -3.0 -3.0 -4.1 -3.0 4.7 4.9 4.5 4.9 155.2 155.7 156.3 156.5 18.2 17.5 17.9 17.9 40.3 40.4 41.5 40.7 523.0 522.4 521.3 525.4 44.6 44.1 42.7 43.6 55.9 54.9 53.5 54.1 -8.2 -7.6 -11.1 -5.9 -5.3 -5.4 -5.1 Aug. Aug. Aug. Aug. Aug. 2 9 16 23 30 ••596. 8 '609. 9 ••622. 8 '633.0 '620. 6 239.3 237.8 234.2 236.5 225.2 70.3 71.1 69.8 67.9 70.0 -4.4 -6.0 4.7 '8.4 8.4 4.9 5.0 5.4 5.7 5.6 157.5 158.3 158.2 158.1 158.2 17.9 17.7 17.4 17.2 14.6 40.6 40.6 40.8 40.8 35.1 526.1 524.5 530.6 534.6 517.2 39.6 48.3 48.8 49.5 52.3 54.1 56.2 58.7 59.9 61.9 -18.7 -14.3 -10.8 -6.5 -5.7 -4.4 -4.7 -4.4 -4.5 -5.0 Sept. Sept. Sept. Sept. 6 13 20 27 '623. 5 '621. 7 '612. 5 r 618.4 228.1 223.0 224.5 226.1 71.0 70.8 69.6 70.0 8.4 8.8 9.5 9.1 5.2 5.6 5.3 5.2 162.5 164.0 164.3 164.1 14.1 14.0 14.4 15.1 40.5 40.3 39.7 38.2 529.9 526.5 527.3 527.7 47.2 46.1 43.6 46.6 61.1 60.9 57.8 57.4 -9.9 -5.9 -9.6 -6.4 -4.8 -6.0 -6.6 '594.6 '598.1 '601. 7 '601. 0 229.8 223.6 221.0 227.7 69.5 70.1 69.4 70.2 9.4 9.1 9.0 9.3 4.5 4.1 3.9 4.2 164.9 168.4 168.7 170.5 13.9 14.6 15.5 15.4 35.6 32.4 33.8 31.3 527.5 522.3 521.4 528.6 36.2 40.4 48.9 45.2 54.9 56.5 55.3 54.0 -17.4 -14.2 -17.9 -20.0 -6.7 -6.9 -6.1 -6.7 Oct. Oct. Oct. Oct. 4 11 18 25 . •_ _ -.7 i Nov. Nov. Nov. Nov. Nov. 1 8 15 22 29 '599.6 '597. 3 '618. 8 '615. 3 '622.0 229.1 230.2 238.7 243.7 245.6 71.4 71.6 71.3 73.0 73.3 9.5 10.3 11.8 11.9 12.0 4.2 4.5 4.2 3.6 3.4 171.7 170.0 171.5 172.8 172.7 15.2 15.1 18.3 17.1 17.8 30.2 29.8 30.4 28.0 27.8 531.3 531.7 546.2 550.1 552.6 43.2 45.5 50.0 52.4 52.7 54.2 51.2 55.8 51.8 52.0 -23.0 -24.9 -27.1 -31.3 -26.7 -6.2 -6.3 -6.1 -7.7 -8.5 Dec. Dec. Dec. Dec. 6 13 20 27 619.7 619.6 612.8 247.2 247.1 249.3 247.8 73.4 72.8 73.8 73.8 12.0 12.3 12.0 12.0 3.0 3.0 3.2 3.1 175.1 175.9 176.6 177.2 17.8 17.6 16.7 16.3 22.8 27.3 27.2 26.8 551.4 556.0 558.8 557.0 54.6 54.9 54.3 50.0 52.0 48.9 51.3 48.5 -23.6 -31.4 -36.2 -34.3 -7.6 -8.7 -8.5 -8.4 ' Revised—in the case offiguresfor the Far East, revised to exclude unreal movement (previously recorded in week ending October 18) which was the result of a correction in the reporting practice of one bank; see note to Table 9. 358 FEDERAL RESERVE BULLETIN INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2, 1935—Continued [In millions of dollars. Minus sign indicates net movement from United States] TABLE 5.—FOREIGN SECURITIES, BY COUNTRIES Net Purchases by Foreigners From Jan. 2, 1935, through— Total United Kingdom France Netherlands Switzerland Germany- Italy Other Europe Latin Total Europe Canada America Far East All other 1935—Dec. 31. _ 1936—Dec. 30._ 1937—Dec. 29._ 125.2 316.2 583.2 67.8 116.1 136.8 6.8 18.2 22.8 7.4 10.4 21.2 -1.2 13.7 30.4 13.3 22.5 26.6 2.9 9.4 13.5 46.1 87.9 115.2 143.1 278.3 366.4 -39.7 1.7 10.5 12.7 15.7 175.0 7.9 17.0 24.5 1.1 3.5 6.8 1938—Aug. 3 1 . . Sept. 2 8 Oct. 26... Nov. 3 0 - 617.6 625.0 638.4 598.4 130.8 129.3 126.3 130.1 23.8 24.2 24.9 25.7 23.7 23.8 24.9 26.6 29.9 30.5 31.8 36.5 31.5 31.9 31.9 32.4 16.8 17.0 17.1 17.2 150.7 155.2 160.0 164.1 407.2 411.9 416.9 432.5 -11.8 -11.2 -6.5 -40.6 183.7 184.7 187.8 164.6 30.2 30.9 31.4 32.6 8.3 8.7 8.8 Dec. Dec. Dec. Dec. 7__ 14. 21. 28. 604.6 605.3 608.7 610.0 130.2 129.4 129.1 129.1 25.8 25.8 25.9 26.2 26.7 26.8 27.1 27.3 36.7 36.9 37.0 37.1 32.5 32.6 32.9 33.1 20.2 20.4 20.4 20.5 164.6 165.1 165.5 165.9 436.7 437.0 437.7 439.1 -39.7 -40.3 -38.3 -38.9 165.2 165.8 166.1 166.3 33.3 33.5 33.6 33.8 9.2 9.3 9.5 9.7 1939—Jan. 4__ Jan. 11. Jan. 18_ Jan. 25. 641.8 645.1 641.8 644.7 127.7 127.9 127.9 126.2 26.1 26.0 26.0 26.0 27.3 27.6 27.6 27.6 36.1 36.6 36.9 37.1 33.5 33.6 33.7 33,8 22.0 22.3 22.4 22.5 167.8 168.0 168.6 169.0 440.6 442.0 443.1 442.2 -9.7 -8.1 -13.1 167.4 167.6 168.1 168.3 33.8 33.9 34.1 34.3 9.7 9.7 9.7 9.7 Feb. Feb. Feb. Feb. 1. 8. 15. 22. 635.3 634.8 637.5 126.2 126.6 126.7 126.7 26.0 26.1 26.2 26.3 27.7 27.7 27.8 27.9 37.2 37.4 38.0 38.5 34.0 34.2 34.3 34.4 22.5 22.6 22.6 22.6 170.4 170.7 171.6 172.0 444.0 445.2 447.3 448.4 -22.3 -23.4 -26.3 -25.2 168.8 169.2 169.3 34.4 34.8 35.0 35.3 9.6 9.6 9.7 Mar. 1_ Mar. 8. Mar. 15 Mar. 22 Mar. 29 641.3 644.5 643.6 644.3 646.7 128.5 128.7 128.7 127.7 127.6 25.8 26.0 25.8 26.1 26.3 28.1 28.4 28.4 28.5 28.7 38.5 38.2 37.7 37.7 38.4 34.4 34.6 34.7 34.8 34.9 22.8 22.9 23.0 23.1 23.1 172.1 172.3 172.5 173.7 174.9 450.2 451.0 450.8 451.6 453.8 -24.7 -23.8 -25.2 -25.6 -25.8 171.0 171.8 172.1 172.4 172.6 35.0 35.4 35.9 36.0 36.2 10.0 10.0 9.9 9.9 Apr. 5__ Apr. 12. Apr. 19. Apr. 26. 652.6 652.9 655.3 657.5 127.8 127.9 128.6 128.7 26.4 26.5 27.0 27.5 28.9 29.0 29.3 38.9 39.3 39.6 40.1 35.0 35.0 35.1 35.2 23.1 23.1 23.1 23.2 175.8 176.4 177.4 178.2 455.8 457.1 459.9 462.0 -22.0 -23.5 -24.0 -24.3 172.7 173.1 173,2 173.5 36.1 36.2 35.8 35.9 10.0 10.1 10.3 10.3 May3_. May 10. May 17. May24. May 31 . 621.8 637.1 642.3 644.1 647.6 129.1 128.9 128.5 128.4 128.1 27.6 27.8 27.9 28.0 27.9 29.4 29.5 29.6 29.6 29.6 40.4 40.4 40.9 40.9 41.3 35.2 35.3 35.4 35.4 35.4 23.6 23.6 23.6 23.6 23.6 178.7 179.0 179.3 179.5 179.8 464.0 464.4 465.1 465.6 465.7 -63.3 -48.9 -44.7 -43.5 -40.3 174.5 174,7 174.9 175.2 175.2 36.2 36.4 36.5 36.6 36.6 10.4 10.4 10.4 10.4 10.4 June 1 ... June 14 _ June 21. June 28. 658.4 661.5 664.3 664.5 127.8 128.2 128.6 128.2 27.9 28.0 28.3 28.2 29.6 29.3 29.4 29.4 41.2 41.3 41.6 41.7 35.5 35.6 35.7 35.8 23.6 23.7 23.7 180.1 180.2 180.3 180.4 465.9 466.2 467.5 467.4 -27.8 -26.4 -26.5 175.6 175.7 175.8 176.0 36.7 36.9 37.0 37.1 10.5 10.4 10.4 10.4 July S . July 12July 1 9 July 2 6 - 678.5 677.1 677.0 678.0 127.8 127.1 126.5 126.4 28.2 28.3 28.2 28.3 29.5 29.6 29.6 29.5 41.8 41.7 42.2 42.3 35.9 35.9 35.9 35.9 23.8 24.0 24.1 24.3 180.8 180.8 179.9 179.9 467.9 467.3 466.5 466.5 -13.4 -14.5 -14.1 -13.7 176.3 176.6 176.9 177.2 37.2 37.6 37.7 38.1 10.4 10.2 9.9 10.0 Aug. 2 . . Aug. 9__ Aug. 16. Aug. 23. Aug. 30. 680.2 652.8 654.5 656.9 657.8 126.7 126.4 126.6 127.2 127.4 28.3 28.4 28.3 28.3 29.7 29.7 29.8 29.8 29.7 42.3 42.3 42.5 43.0 43.2 36.0 36.1 36.2 36.3 36.4 24.3 24.3 24.3 24.3 24.4 180.6 180.7 181.2 181.5 181.8 468.0 468.0 468.8 470.3 471.2 -13.5 -41.6 -41.3 -41.2 -41.5 177.5 177.8 178.0 178.6 178.8 38.2 38.5 38.7 38.8 10.0 10.1 10.3 10.4 10.5 Sept. 6 Sept. 13_ Sept. 20. Sept. 27. 661.7 668.9 674.4 676.9 125.6 125.1 124.9 124.9 33.2 33.4 33.7 33.8 29.7 29.9 29.8 29.7 42.6 43.0 43.3 43.4 36.3 36.4 36.4 36.4 24.6 24.6 24.8 24.8 182.1 181.8 182.5 183.1 474.0 474.1 475.2 476.0 -40.7 -34.6 -30.8 -29.5 179.0 179.7 180.0 180.4 38.8 39.0 39.3 39.3 10.6 10.7 10.7 10.7 Oct. 4— Oct. 1 1 Oct. 1 8 Oct. 2 5 - 684.6 685.2 686.7 687.3 124.8 124.6 124.9 124.8 40.7 40.6 41.0 41.1 29.5 29.5 29.4 29.4 43.3 43.2 43.2 43.3 36.4 36.4 36.4 36.4 24.8 24.9 24.9 24.9 183.9 184.2 184.4 185.0 483.3 483.4 484.1 485.0 -29.5 -29.5 -29.2 -29.7 180.6 180.9 181.1 181.1 39.4 39.6 39.6 39.8 10.8 10.8 11.0 11.1 Nov. 1__. Nov. 8__. Nov. 15.. Nov. 22.. Nov. 29_. 688.7 690.4 693.2 694.3 695.4 124.7 124.7 124.6 124.6 124.3 41.2 41.3 41.4 41.6 41.7 29.5 29.4 29.3 29.3 29.2 42.8 42.8 42.9 43.0 43.3 36.4 36.4 36.4 36.5 36.5 25.4 25.8 26.1 26.1 26.1 185.3 185.5 186.0 186.2 186.5 485.3 486.0 486.8 487.3 487.6 -29.0 -28.5 -27.3 -27.2 -26.7 181.3 181.6 181.9 182. 2 182.3 39.8 40.1 40.4 40.6 40.8 11.2 11.2 11.4 11.4 11.4 Dec. Dec. Dec. Dec. 699.0 700.7 711.8 720.1 124.6 125.2 125.3 125.6 41.8 41.8 41.9 42.1 29.2 29.3 29.4 29.4 43.8 44.1 44.5 44.8 36.5 36.5 36.6 36.6 27.1 27.3 27.4 27.6 187.0 187.8 188.3 188.6 490.0 492.0 493.4 494.6 -25.9 -26.7 -18.5 -11.5 182.6 182.8 183.0 183.0 41.1 41.3 42.6 42.8 11.2 11.3 11.3 11.3 APRIL 6___ 13 _ _ 20. _ 27.. 1940 359 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2, 1935— Continued [In millions of dollars. Minus sign indicates net movement from United States] TABLE 6.—DOMESTIC SECURITIES, BY COUNTRIES Net Purchases by Foreigners Netherlands Switzerland Germany 23.4 64.7 70.3 50.5 157.6 213.8 55.1 200.2 275.3 -5.4 -7.5 -17.4 -3^3 -4.9 12.9 38.5 55.7 286.2 818. 0 1,041. 6 2.8 32.6 37.6 3.7 15.5 18.2 21.4 44.1 54.7 2.6 7.1 430.2 430.5 454.0 462.0 67.8 67.8 72.5 75.4 202.8 203.3 215.2 218.5 278.5 282.2 293.5 295.6 -19.9 -20.4 -21.9 -22.5 -5.2 -5.3 -5.3 -5.4 51.8 53.0 55.3 55.0 1,006. 2 1,011.2 1, 063. 2 1,078. 7 33.5 27.7 32.3 27.4 21.7 21.9 22.7 22.6 54.2 54.5 53.5 55.0 10.1 10.7 10.8 1,201.0 1,192. 5 1, 202. 2 1, 210. 9 465.8 465. 5 467.7 472.6 76.0 76.7 76.6 76.5 219.3 211.4 213.3 212.9 296.6 295.8 298.5 301.7 -22.5 -22.6 -22.6 -22.7 -5.4 -5.4 -5.4 -5.4 55.5 55.5 56.1 56.6 1, 085. 2 1, 076. 8 1.084. 2 1,092. 3 26.8 26.5 27.8 27.8 23.0 23.1 23.3 23.4 55.2 55.3 56.0 56.4 10.8 10.9 10.8 11.0 1939—Jan. 4 Jan. 11— Jan. 18— Jan. 25— 1,211.4 1,213.3 1,204. 8 1.188. 4 472.6 473.0 470.0 459.5 76.9 75.6 74.6 73.8 212.1 213.6 212.8 210.8 304.1 304.2 301.7 302.2 -22.8 -22.8 -22.9 -22.9 -5.5 -5.5 -5.5 -5.5 56.6 56.8 56.2 54.9 1,094.1 1,094. 9 1.086. 8 1,072. 8 25.7 25.8 24.5 22.7 23.7 24.0 23.8 23.5 56.9 57.5 58.4 58.3 11.1 11.1 11.3 11.1 Feb. Feb. Feb. Feb. 1... 8_-_ 15_ _ 22. _ 1,181.4 1.187. 0 1.189. 0 1.190. 6 451.0 455.5 456.3 456.1 72.9 74.0 72.6 72.6 210.6 210.9 211.8 212.6 301.0 300.8 300.8 301.5 -23.0 -23.0 -23.0 -23.1 -5.5 -5.5 -5.5 -5.5 54.9 55.3 56.0 56.0 1, 061. 9 1.068. 0 1, 069. 0 1,070. 2 23.5 22.3 23.5 23.8 23.4 23.5 23.3 23.4 61.3 61.9 61.8 61.9 11.2 11.3 11.3 11.4 Mar. 1___ Mar. 8— Mar. 1 5 Mar. 22Mar. 29- 1.192. 6 1,190. 0 1,189. 5 1,174. 5 1,180. 6 458.4 456.2 457.8 448.6 448.3 72.3 72.8 73.1 72.6 72.3 214.0 215.6 215.2 214.2 217.7 301.5 300.6 298.9 298.0 301.7 -23.1 -23.3 -23.3 -23.3 -23.4 -5.4 -5.4 -5.5 -5.4 -5.5 55.6 55.7 55.8 54.8 56.5 1, 073.1 1,072. 2 1,071.9 1,059. 5 1,067. 6 23.1 22.6 22.4 20.2 18.8 23.3 23.4 23.7 24.1 24.6 61.8 60.5 60.1 59.2 57.9 11.3 11.3 11.4 11.5 11.7 Apr. Apr. Apr. Apr. 451.3 449.1 448.3 452.6 72.4 72.5 73.7 73.9 221.0 221.6 222.6 224.1 304.8 306.4 308.7 310.0 -24.0 -24.1 -24.2 -5.4 -5.5 -5.5 -5.5 57.8 58.1 56.8 56.7 1,078. 0 1,078. 2 1,080. 4 1.087. 6 17.9 19.0 17.2 16.7 25.0 25.0 25.3 25.6 59.0 59.3 58.9 60.4 11.9 12.2 12.5 12.5 May3... May 10.May 17.. May 24 __ May 31.. 1,191.7 1.193. 8 1.194. 3 1, 202. 9 1,211.9 1,210.2 1,211.8 1, 209. 3 1, 209. 2 454.6 452.1 450.7 449.2 448.9 73.9 74.4 74.4 74.3 75.6 225.4 226.8 227.7 228.4 228.9 311.8 312.1 313.5 314.1 313.9 -24.2 -24.2 -24.3 -24.4 -24.6 -5.5 -5.5 -5.5 -5.5 -5.6 56.7 57.0 57.3 57.2 57.2 1,092. 7 1.092. 6 1.093. 7 1.093. 3 1.094. 4 19.4 16.9 16.4 15.9 16.6 25.8 25.8 26.1 25.7 25.8 60.9 61.6 62.2 61.0 59.0 13.0 13.4 13.5 13.5 13.5 June 7 June 14 __ June 2 1 . . June 28 __ 1, 210. 6 1.208.3 1, 205.6 1,199. 3 449.0 444.8 US. 2 442.0 76.0 75.8 75.4 74.4 314.4 315.2 315.1 315.0 -24.8 -24.8 -25.0 -25.2 -5.5 -5.5 -5.6 -5.5 57.6 57.3 57.1 56.9 1,096. 8 1,093. 7 1,091.5 1, 088. 4 15.9 16.3 16.2 13.9 25.7 25.7 25.7 25.7 58.6 58.9 58.6 57.6 13.6 13.7 13.7 13.7 July July July July 5... _ 12— 19— 26.... 1,199. 3 1.194.4 1.185.0 1.180. 0 442.1 441.7 437.3 434.2 74.2 74.3 73.3 72.6 230.1 231.0 231.3 231.0 231.2 231.1 230.2 229.0 315.1 312.6 311.2 312.0 -25.5 -25.9 -26.1 -26.3 -5.5 -5.5 -5.5 -5.5 57.1 56.6 56.4 56.0 1.088. 6 1.085. 0 1,076. 7 1,072. 0 16.3 15.1 15.3 16.5 25.4 25.7 25.5 25.3 55.4 55.2 53.9 52.6 13.5 13.6 13.6 13.4 Aug. 2 . . . Aug. 9 . . . Aug. 16.. Aug. 2 3 . . Aug. 30.. 1,182. 2 1,176. 5 1.164. 9 1.165.1 1.165. 7 434.7 431.5 431.7 432.5 433.5 73.5 72.4 71.7 72.3 72.2 229.5 231.1 220.7 220.0 220.6 311.3 311.0 311.0 312.2 313.4 -26.5 -26.6 -26.8 -26.9 -27.1 -5.6 -5.6 -5.6 -5.6 -5.7 56.0 55.6 55.4 55.4 56.7 1,072. 9 1.069. 4 1.058. 2 1.059. 8 1,063. 6 18.9 18.1 17.4 16.9 13.0 25.2 24.6 24.6 24.6 24.7 51.9 51.1 51.3 50.5 50.6 13.3 13.2 13.3 13.3 13.7 Sept. 6... Sept. 13.. Sept. 20Sept. 27.. 1,171. 3 1.181. 3 1,173. 4 1,164. 4 433.1 426.0 417.1 408.4 73.0 73.4 73.7 73.7 222.0 228.4 227.6 228.2 314.5 318.5 320.3 320.9 -27.2 -27.3 -27.4 -27.4 -5.6 -5.6 -5.6 -5.5 57.4 58.4 58.2 58.3 1,067.1 1,071.8 1,063. 8 1,056. 7 12.0 11.9 10.9 25.6 27.3 27.1 26.1 52.7 56.3 57.4 58.5 13.9 14.1 14.1 14.1 Oct. Oct. Oct. Oct. 4— 11... 18... 25... 1,150. 2 1,144.4 1,141. 7 1,130.6 396.9 389.3 382.6 73.4 72.9 72.6 72.9 227.1 228.1 226.9 227.0 321.4 322.4 329.1 329.1 -27.5 -27.6 -27.6 -27.6 -5.4 -5.5 -5.4 -5.4 58.5 59.0 58.5 59.4 1,044. 4 1,038. 5 1,036. 8 1,025.1 7.8 7.2 6.1 5.3 26.2 26.2 26.5 27.9 57.8 58.4 58.3 59.2 14.0 14.0 14.0 13.9 Nov. Nov. Nov. Nov. Nov. 1... 8... 15__ 22.. 29. _ 1,123. 7 1,115. 9 1,109. 2 1,107.1 1,103. 7 360.4 353.6 348.0 342.0 338.2 73.2 74.5 74.5 74.5 74.9 226.6 227.2 225.7 226.3 226.2 330.7 330.8 332.9 335.3 336.3 -27.7 -27.7 -27.7 -27.9 -28.0 -5.4 -5.4 -5.4 -5.0 -4.9 59.7 59.6 59.1 59.0 59.1 1,017.6 1,012. 5 1,007.1 1,004. 2 1,001.8 4.9 2.4 2.0 2.1 .7 27.2 27.3 27.5 28.2 28.6 60.2 59.8 58.7 58.8 58.7 13.9 13.8 13.8 13.8 13.8 Dec. Dec. Dec. Dec. 6___ 13.. 20.. 27.. 1,098. 9 1,096.5 1,096. 8 1,098. 5 335.3 332.7 329.6 328. 2 75.1 76.0 76.4 76.3 225.8 226.2 226.0 227.1 337.8 340.2 341.9 342.8 -28.1 -28.1 -28.2 -28.2 -4.9 -4.9 -4.9 -4.9 59.0 59.1 59.6 60.1 999.9 1,001. 2 1,000. 4 1,001.4 -.5 -2.6 -3.2 -3.1 28.9 29.3 29.6 29.8 56.6 54.4 55.8 56.1 14.0 14.2 14.2 14.3 United Kingdom France 316.7 917.4 1,162. 0 149.8 367.7 448.7 1938—Aug. 3 1 . . Sept. 28.. Oct. 26___ Nov. 30-_ 1,125. 3 1,125. 4 1,182. 4 1,194.4 Dec. Dec. Dec. Dec. 7... 14. _ 21 __ 28.. From Jan. 2, 1935, through— Total 1935— Dec. 3U_ 1936—Dec. 30. _ 1937—Dec. 29.. 5-__ 12.. 19. _ 26... 360 Italy Other Europe Latin Total Europe Canada America Far East All other FEDERAL RESERVE BULLETIN INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2, 1935—Continued [In millions of dollars. Minus sign indicates net movement from United States] TABLE 7.—BROKERAGE BALANCES,! BY COUNTRIES From Jan. 2, 1935, through— Total United Kingdom France Netherlands Switzerland Germany Italy Other Europe Total Latin Europe Canada America Far East All other 1935—Dec. 31 1936—Dec. 30 1937—Dec. 29 6.0 12.9 47.5 () 4.0 11.5 2.4 10.4 11.5 1.3 -.9 5.0 2.5 9.1 10.8 1.4 .4 5.0 7.6 22.6 44.0 -4.5 -7.6 3.5 1.0 -4.2 -.5 2.9 2.1 .5 1938—Aug. 31 Sept. 28 Oct. 26 Nov. 30 60.6 64.1 56.2 51.5 14.9 16.8 14.1 13.9 14.8 15.9 14.7 13.6 5.1 6.8 6.4 7.4 10.5 10.7 10.7 9.2 8.7 6.9 5.9 5.9 54.1 57.2 51.9 50.0 3.7 5.3 2.8 1.7 .1 .4 -.1 -.3 2.3 .8 1.3 2 Dec. Dec. Dec. Dec. 7 14 21 28 51.7 51.7 48.0 47.6 14.3 14.2 13.6 13.2 12.6 12.9 12.2 12.6 7.8 7.4 7.2 9.7 5.7 5.6 5.5 5.3 50.1 50.0 48.3 46.7 2.9 3.3 1.3 2.6 -1.5 -1.6 -1.0 -.1 -.3 -.9 -1.0 .3 .3 .3 .2 1939—Jan. 4 Jan. 11 Jan. 18 Jan. 25 47.6 49.4 52.5 57.2 13.4 14.4 14.9 15.7 12.9 14.0 13.9 15.2 9.6 10.1 10.8 10.7 5.2 5.1 5.5 47.9 50.5 52.5 55.9 1.8 .3 1.4 2.1 -.9 6.9 7.4 7.8 -1.5 .3 .4 .4 -.7 -.8 .3 .5 .4 .3 Feb. Feb. Feb. Feb. 1..... 8____. 15— 22 61.9 61.7 61.4 59.8 17.2 16.2 15.8 14.5 16.7 16.9 17.0 16.6 8.1 8.4 8.7 8.3 11.0 11.2 10.4 10.5 6.3 6.4 6.6 6.4 59.4 59.1 58.7 56.4 2.5 2.6 3.1 2.7 Mar. Mar. Mar. Mar. Mar. 1___. 8___. 15 22 29 58.8 59.2 61.1 66.5 63.9 13.3 14.7 15.3 16.6 16.3 17.1 16.2 16.0 16.6 16.0 8.3 7.8 8.7 9.3 10.7 10.9 11.9 10.7 9.6 6.7 6.3 6.1 7.3 6.6 56.1 56.0 57.9 60.5 57.4 2.6 2.9 3.7 4.5 5.6 Apr. Apr. Apr. Apr. 5... 12_. 19.. 26.. 65.9 68.9 72.9 73.0 16.4 17.5 18.0 17.4 16.3 17.0 16.9 16.3 8.4 9.0 9.9 10.3 9.9 9.7 9.8 10.5 6.6 7.4 7.5 7.5 57.5 60.6 62.2 62.2 7.1 7.2 9.0 9.1 .3 .3 .4 .4 May May May May May 3 10 17 24 31 74.4 75.3 73.4 74.2 72.7 17.8 17.7 17.7 18.0 18.0 17.0 17.0 16.0 16.3 16.3 10.2 10.0 10.1 9.7 9.5 11.2 11. 1 10.6 10.9 10.8 -.2 -.2 -.2 -.2 7.7 7.5 7.6 7.5 7.3 64.0 63.2 62.2 62.3 61.9 9.3 10.5 9.3 9.5 8.7 1.1 1.0 .4 .5 .5 .4 .4 June 7 June 14 June 21.... June 28 71.6 72.6 73.8 74.0 17.9 18.7 18.5 18.1 15.2 15.6 16.7 16.8 9.2 9.3 9.5 11.3 11.7 11.7 11.9 -.2 -.2 ^ -.3 6.8 6.9 7.2 7.0 60.4 62.1 63.5 63.2 9.3 9.0 8.6 9.3 .5 .7 .4 .2 .2 .2 .3 July 5... July 12.. July 19.. July 26.. 76.1 78.4 81.9 82.3 18.4 18.3 19.4 20.0 17.2 16.8 17.9 17.5 9.7 11.2 11.6 12.2 11.8 11.8 12.6 12.7 -.2 -.2 -.2 -.2 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 82.1 84.5 85.4 85.5 85.0 19.9 19.2 19.6 20.1 17.8 17.7 18.5 18.6 17.7 19.1 12.0 10.3 9.6 9.8 13.4 14.5 15.5 14.7 15.0 Sept. Sept. Sept. Sept. 84.2 79.2 81.1 83.1 17.7 19.8 22.1 24.2 19.0 18.4 18.5 18.4 8.7 7.1 9.3 9.4 6__._ 13 20 27 () .4 .5 .4 .4 .3 -.5 -1.3 .2 .1 64.0 65.2 68.9 70.0 9.2 10.3 9.9 1.0 1.0 1.0 1.1 1.4 1.4 1.6 1.9 .5 .4 .5 .5 -.2 (2) -.2 -.2 -.2 7.1 7.4 7.6 7.3 7.3 7.9 7.5 7.4 70.2 70.1 71.2 69.8 68.0 10.0 10.2 10.4 11.9 .7 . 1.7 1.3 1.7 1.9 1.9 2.3 2.3 3.2 3.0 .5 .4 .4 .4 .3 15.7 14.5 14.9 15.3 -.1 -.1 -.2 -.1 7.1 6.5 6.5 7.0 68.2 66.3 71.4 74.3 12.4 11.7 10.4 9.7 2.1 2.4 1.9 2.1 1.2 -1.4 -2.6 -3.6 .3 .1 (2) 6.7 5.4 6.1 6.0 72.6 65.8 71.9 70.9 9.1 9.2 1.8 2.1 1.7 2.0 -3.3 -3.6 -3.8 -5.2 1.2 1.4 1.6 1.5 6.8 6.4 5.2 5.3 5.0 73.0 72.6 71.5 70.0 69.1 9.5 9.9 9.0 9.5 9.0 1.6 1.4 1.1 -.4 1.1 -5.8 -5.6 -4.2 -4.0 -4.0 1.5 1.6 1.8 1.8 1.8 4.8 5.3 5.3 5.2 68.2 67.9 69.7 70.2 9.0 9.1 8.9 1.3 1.6 1.1 -3.7 -3.3 -4.1 -4.0 1.8 1.7 1.8 2.0 Oct. Oct. Oct. Oct. 4 11 18 25 74.6 80.5 78.5 21.9 21.4 21.9 20.7 18.3 17.5 18.8 19.0 9.7 8.2 9.4 9.0 15.9 13.4 15.7 16.1 -.1 Nov. Nov. Nov. Nov. Nov. 1 8 15 22 29 79.8 79.9 79.2 76.9 77.1 21.5 21.5 21.5 19.7 19.6 19.7 19.9 19.2 18.9 19.0 8.4 9.4 10.0 16.2 16.5 16.3 16.2 15.7 -.1 -.1 -.1 -.2 Dec. Dec. Dec. Dec. 6 13 20 27 75.9 76.5 78.1 78.1 19.3 18.8 19.0 19.5 18.5 18.7 18.6 18.5 10.8 10.7 .4 .4 .4 .6 15.8 15.2 16.1 16.4 i -.1 -.1 1 For explanation see BULLETIN for May 1937, pp. 395-396. 2 Inflow less than $50,000. 3 Outflow less than $50,000. APRIL 1940 361 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES OUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES [Outstanding amounts in millions of dollars] TABLE 8.—SHORT-TERM LIABILITIES TO FOREIGNERS, BY COUNTRIES Date Total United Kingdom France Netherlands Switzerland Germany Italy Other Europe Total Latin Europe Canada America Far East All other Reported by Banks in New York City 1929—Dec. 31 2,672.7 1930—Dec. 31 2, 335.0 1931—Dec. 30 1,303. 5 1932—Dec. 28 745.6 1933—Dec. 27 392.0 1934—Nov. 28 L^___ 466.7 301.5 214.5 104.9 169.7 48.9 59.1 923.7 799.4 549.2 71.1 27.0 32.7 99.1 122.2 44.6 11.9 8.0 12.7 105.2 222.2 66.0 78.0 11.5 9.7 204.5 161.0 41.1 32.9 17.5 25.8 157.4 111.2 33.2 39.8 11.7 14.3 371.3 281.3 122.2 66.2 31.1 41.7 2,162.8 1,911. 7 961.2 469.6 155.7 196.0 241.8 216.8 148.3 98.2 86.1 91.9 188.2 130.8 103.3 121.7 96.7 106.6 49.0 38.2 69.0 43.5 42.7 60.3 31.0 37.5 21.6 12.6 10.9 11.9 Reported by Banks in United States 1934—Dec. 5 2 1935—Jan. 2 Dec. 31 1936—Dec. 30 1937—Dec. 29 1938—Dec. 28 584.8 597.0 1, 200. 2 1,491.6 1, 729. 6 2,003. 9 79.6 76.9 205.5 235.7 261.5 438.8 36.1 33.9 163.5 176.3 143.9 190.9 13.5 12.9 68.6 78.8 89.1 98.4 12.1 13.7 86.1 123.5 302.1 217.4 28.4 29.9 29.0 32.0 39.0 19.9 16.8 18.8 26.1 41.7 25.7 22.6 40.6 46.8 107.5 126.3 156.0 249.9 227.1 232.9 686.3 814.3 1,017.1 1,237.8 103.3 99.3 145.3 186.1 175.6 235.2 117.4 122.8 156.3 263.9 280.9 254.9 125.1 130.1 188.9 200.2 236.0 243.7 12.0 12.0 23.4 27.1 20.0 32.4 1939—Jan. 4 Jan. 11 Jan. 18_.__ Jan. 25-__ Feb. l.___ Feb. 8____ Feb. 15 Feb. 22 Mar. l.___ Mar. 8____ Mar. 15 Mar. 22 Mar. 29 1,959.1 1,957. 7 1,982.3 1,992. 6 436.1 412.5 420.1 419.2 187.4 197.1 197.6 199.9 101.8 99.3 101.8 103.4 ' 218.8 212.5 202.9 226.8 17.8 17.2 17.8 16.8 20.4 19.6 19.3 18.4 255.5 261.0 267.9 269.1 1, 1, 1, 1, 237.8 219. 2 227. 4 253. 6 201.8 205.5 215.3 205.3 248.5 251.7 250.5 250.0 236.8 244.2 252.3 247.2 34.1 37.1 36.9 36.4 2,049.4 2,079. 0 2,084.1 2,089.0 430.2 442.8 449.7 445.2 195.0 201.2 209.4 216.5 114.5 120.7 119.6 119.4 233.9 238.3 235.7 238.4 15.8 16.6 15.9 16.7 17.9 15.7 13.4 13.0 268.3 266.3 259.1 257.7 1, 1, 1, 1, 275.4 301. 6 302. 9 306. 8 225.6 229.0 229.9 223.2 254.5 259.1 259.0 264.6 256.8 252.0 256.6 258.5 37.1 37.3 35.8 35.9 2,116.1 2,131. 7 2,139.3 2,219. 5 2,264. 2 467.9 468.7 467.9 468.1 473.9 214.6 222.0 216.3 218.9 219.5 130.4 126.3 131.3 148.5 143.9 236.2 234.9 239.6 231.8 247.1 17.7 16.9 19.8 18.5 18.7 11.8 12.1 13.2 14.2 14.8 271.3 277.9 278.0 296.1 314.7 1,349.9 1, 358.8 1, 366. 0 1, 396. 2 1,432. 7 212.6 215.0 221.7 239.5 236.6 263.9 269.8 271.7 292.3 300.7 250.7 248.4 241.7 250.4 250.9 39.0 39.6 38.2 41.1 43.3 Apr. Apr. Apr. Apr. 2, 330.8 2,391.0 2,464.1 2, 505. 6 503.6 545.4 531.3 548.9 231.0 235.9 256.0 269.0 150.9 149.0 159.4 154.9 247.6 243.9 247.1 244.2 14.7 15.1 15.4 13.9 13.4 12.6 12.7 13.1 318.7 332.7 358.3 365.3 1,479. 9 1, 534. 6 1, 580.2 1, 609. 3 252.2 251.2 259.7 267.0 305.6 312.2 323.3 330.6 246.6 247.6 254.2 251.4 46.5 45.4 46.7 47.3 May3..__ May 10 May 17 May 24 May 31 2, 590.8 2,601.9 2,614.0 2,617. 6 2,612.7 557.0 561.4 575.1 580.0 578.0 276.4 275.7 271.7 271.6 275.3 153.4 155.0 150.1 140.6 137.1 244.5 245.9 247.1 241.9 238.4 14.6 13.7 14.5 14.0 15.7 12 A 12.1 12.3 13.7 14.3 371.2 269.5 370.1 373.6 370.5 1,629. 4 1, 633.1 1,641.0 1, 635.4 1,629. 3 316.9 315.4 313.6 312.7 309.4 342.0 348.9 357.3 368.7 371.7 256.2 258.9 256.1 251.7 253.8 46.3 45.5 46.1 49.1 48.6 June 7 June 14 June 21 June 28 2, 579.4 2, 591.0 2, 602. 9 2,619. 5 590.1 605.2 599.7 607.4 266.6 272.6 279.7 284.4 136.8 145.6 140.9 146.0 237.6 237.3 247.4 240.8 14.7 15.0 14.7 15.1 12.6 12.5 12.6 12.2 362.3 356.6 359.6 366.9 1,620. 6 1,644.8 1, 654. 7 1, 672. 7 293.3 293.0 295.0 291.7 366.8 361.4 359.5 363.0 251.1 242.2 243.8 242.5 47.6 49.6 50.0 49.7 July July July July 5 12.... 19___. 26.... 2,620.9 2,602. 4 2, 613. 7 2,637.4 578.3 556.2 564.2 567.5 296.4 293.6 292.8 284.2 147.3 154.0 154.9 153.8 243.5 246.0 243.7 248.8 14.6 13.8 15.1 13.8 12.6 13.4 12.5 12.8 377.4 379.8 379.4 379.6 1, 670. 0 1,656.9 1, 662. 8 1, 660. 4 292.2 282.9 281.8 293.6 360.7 359.4 364.1 375.5 247.9 248.5 249.8 253.6 50.1 54.7 55.2 54.4 Aug. Aug. Aug. Aug. Aug. 2 9 16 23 30 2,6*65.1 2, 710.3 2, 753.4 2,858.6 2, 905. 4 589.1 583.8 601.7 642.3 594.5 284.2 286.0 294.7 295.7 315.9 152.9 158.5 157.0 154.8 158.7 248.5 248.3 239.8 256.7 283.6 14.3 14.2 13.9 12.1 11.1 13.3 13.6 14.6 13.6 11.4 379.7 382.5 397.0 426.1 431.0 1, 682.1 1,686.9 1, 718. 8 1,801. 3 1,806. 2 305.5 332.5 335.8 340.4 356.2 379.5 382.3 381.6 386.4 389.8 244.8 253.7 265.5 273.8 283.7 53.2 54.9 51.8 56.7 69.4 Sept. Sept. Sept. Sept. 6 13 20 27 2,912. 7 2,960. 5 3,005.8 2,983. 6 619.5 647.8 697.0 656.7 322.3 324.1 315.1 295.9 158.8 166.2 180.0 186.0 287.3 290.4 294.9 299.9 8.1 8.3 7.9 7.8 10.3 10.5 16.4 17.1 425.1 435.8 436.5 446.4 1,831.4 1,883.1 1,947. 9 1,909. 7 330.4 336.5 319.6 325.3 400.1 391.3 384.7 383.0 278.1 285.9 288.2 299.5 72.9 63.8 65.4 66.2 Oct. 4 Oct. 11_.._ Oct. 18.— 2,957. 7 2,941.8 3 2,931.8 636.5 644.5 648.4 291.4 276.9 261.3 186.0 177.5 181.8 294.8 296.3 296.7 9.5 8.1 9.4 19.0 20.0 31.0 445.4 455.0 449.9 1,882. 7 1,878. 5 1, 878. 5 326.1 322.2 311.4 382.8 383.3 379.0 298.4 290.5 3 293. 2 67.7 67.3 Oct. 18 Oct. 25_.__ Nov. 1 Nov. 8 — . Nov. 15 Nov. 22 Nov. 29 2,986.8 3,010.9 648.4 630.6 261.3 259.9 181.8 186.0 296.7 307.4 9.4 9.6 31.0 31.6 449.9 475.6 1,878. 5 1,900. 7 311.4 309.2 379.0 379.0 348.2 352.4 69.6 2,993.1 2,967. 8 2,988. 6 2,955. 5 3,003. 6 613.7 600.3 543.1 508.0 501.6 256.1 256.6 273.5 276.8 276.3 188.5 185.6 192. 6 190.3 194.7 304.1 318.8 337.7 329.6 334.1 9.1 9.3 10.0 9.3 11.3 31.0 31.1 32.3 31.3 35.5 472.5 470.1 474.8 487.7 493.8 1,874. 9 1,871.8 1,864.0 1,833.1 1,847. 2 325.4 320.8 325.3 319.0 327.6 371.8 352.3 352.2 352.9 361.0 348.3 353.7 369.5 372.2 384.5 72.6 69.1 77.6 78.3 83.4 Dec. Dec. Dec. Dec. 2,993.1 2, 992.8 3,024.7 3,009. 7 482.2 458.3 484.9 468.4 269.7 268.2 266.5 263.7 194.2 200.9 208.7 204.7 338.1 356.2 349.0 365.6 10.8 9.6 8.6 7.5 29.7 33.2 35.1 35.5 514.6 504.3 528.4 520.0 1,839. 2 1,830. 8 1,881.1 1,865.4 320.9 316.0 294.1 285.1 359.9 361.9 361.6 364.5 390.3 398.3 402.6 404.9 82.8 85.8 85.3 89.7 5 12 19 26 6 13 20.__ 27 2 i Last report date on old basis. First report date on new basis. Figures adjusted to the basis employed in previous weeks. The reportedfiguresfor the Far East on October 18 and succeeding weeks are not strictly comparable to the corresponding figures for preceding weeks, owing to a correction in reporting practice by one of the reporting banks. For similar reasons adjustments were made with respect to thefiguresfor certain areas on August 12, 1936, and January 5, 1938 (see BULLETIN for May 1937, p. 425, and April 1939, p. 295). The cumulativefiguresin Tables 1 and 3 have been adjusted to exclude the unreal movements introduced into the data by these changes in reporting practice. 3 362 FEDERAL RESERVE BULLETIN INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES OUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES [Outstanding amounts in millions of dollars] TABLE 9.—SHORT-TERM FOREIGN ASSETS, BY COUNTRIES Date Total United Kingdom France Netherlands Switzerland Germany Italy Other Europe Total Latin Europe Canada America Far East All other Reported by Banks in New York City 1931—Dec. 30 1932—Dec. 28 1933—Dec. 27 1934—Nov. 28 i 1,103. 3 937.9 898.8 827.1 166.2 87.3 192.5 201.3 29.5 62.9 66.9 94.1 20.9 13.0 18.4 15.9 12.6 6.2 12.3 8.5 467.2 434.9 260.9 178.8 18.7 11.8 16.7 10.7 149.2 97.0 83.2 60.2 864.3 713.1 651.0 569.5 58.1 42.2 32.3 84.4 136.5 155.2 159.7 124.4 41.8 24.0 49.7 46.2 2.6 3.5 6.2 2.6 Reported by Banks in United States 1934—Dec. 5 2 1,137.8 1935—Jan. 2 1,139.9 Dec. 31 778.6 1936—Dec. 30_..._._ 672.6 1937—Dec. 29 655.0 1938—Dec. 28 626.0 1939—Jan. 4 Jan. 11 Jan. 18 Jan. 25 266.4 296.9 88.1 114.1 84.8 87.7 108.2 80.5 32.5 16.8 13.5 13.3 19.2 18.6 19.0 21.9 23.0 25.5 8.3 8.2 6.6 5.4 5.5 5.4 239.6 231.7 202.0 165.1 126.1 90.9 26.5 27.2 13.5 10.9 20.8 13.3 81.3 80.0 71.2 57.8 52.9 46.7 749. 5 743.2 433.0 392.1 326.5 282.8 91.2 96.3 100.9 59.4 118.0 65.7 170.7 174.6 154.5 141.1 114.4 99.2 118.1 117.4 80.1 67.2 78.9 162.6 8.3 8.5 10.1 12.9 17.2 15.7 594.0 609.8 600.8 603.2 86.0 87.1 90.3 98.5 10.3 10.5 9.0 8.7 24.2 24.7 24.1 23.8 5.5 5.2 4.5 4.5 89.4 89.7 88.7 88.6 13.5 14.7 14.4 14.4 45.9 44.3 45.0 43.9 274.9 276.2 276.2 282.4 60.4 58.4 56.4 52.4 99.1 98.2 97.5 95.7 144.1 162.2 155.7 157.9 15.5 14.8 15.1 14.8 Feb. Feb. Feb. Feb. 1 8 15 22 607.6 619.8 589.4 569.1 91.6 102.6 88.8 82.0 14.0 11.1 15.7 12.4 23.4 23.9 23.0 22.4 4.5 4.5 4.5 4.2 87.7 84.7 82.4 84.0 15.5 16.5 15.7 13.3 48.1 47.9 47.7 48.0 284.8 291.2 277.7 266.3 54.2 56.1 55.3 49.0 96.2 99.6 100.3 98.3 157.4 158.3 141.0 140.4 14.9 14.8 15.1 15.0 Mar. Mar. Mar. Mar. Mar. 1 8 15 22 29 555.6 560.8 550.7 554.6 553. 6 90.6 88.6 80.6 77.6 83.0 12.8 15.3 11.6 13.0 13.8 22.4 22.1 22.8 20.4 20.1 4.1 3.9 4.1 5.0 3.6 83.5 83.1 82.2 82.1 81.4 13.7 13.4 15.2 16.6 16.4 48.6 48.7 49.5 49.5 48.8 275.6 275.1 266.0 264.2 267.1 45.0 47.0 45.8 46.7 46.3 98.0 99.8 97.7 98.0 99.5 122.5 124.2 126.2 130.9 125.7 14.5 14.7 15.1 14.8 14.9 Apr. Apr. Apr. Apr. 5 12_... 19_... 26__._ 532.1 521.8 516.5 492.3 66.2 63.4 65.7 64.2 10.8 10.8 10.9 11.7 19.1 18.6 17.8 17.9 3.1 3.5 3.6 3.6 80.4 79.9 79.0 79.4 15.3 15.3 15.4 13.5 46.8 45.9 44.8 44.7 241.7 237.4 237.0 235.0 51.7 49.9 48.4 48.0 96.4 95.4 94.3 94.9 127.9 125.4 123.0 103.6 14.4 13.8 13.9 10.9 May May May May May 3 10 17 24 31 508.0 512.8 506.8 508.1 504.3 62.3 66.4 61.1 61.1 55.4 11.5 11.5 17.9 19.8 19.9 19.3 18.7 4.2 4.0 4.4 3.8 3.4 78.1 78.2 78.3 78.2 79.2 13.1 12.6 11.9 11.8 11.9 41.5 41.5 41.8 42.0 41.1 228.5 233.9 225.8 226.1 220.4 52.2 52.3 51.1 48.7 49.4 96.5 95.6 104.9 109.7 111.1 117.7 117.7 112.0 110.3 110.6 13.1 13.2 13.1 13.3 12.8 June June June June 7 14 21 28 502.8 510.3 '495. 4 '496. 6 59.1 62.1 54.6 55.4 7.8 9.0 7.6 10.7 19.3 19.1 18.2 19.7 3.4 3.5 3.6 4.5 78.5 79.2 77.9 77.4 11.0 10.5 10.7 9.5 41.4 41.6 41.0 39.9 220.6 224.9 213.6 217.0 49.7 52.2 49.8 54.0 114.0 113.4 111.3 110.3 105.6 108.1 106.2 100.5 12.8 11.8 '14.5 14.8 July July July July 5 12 19 26 '496.1 '496. 2 '499. 6 r 497. 2 56.1 56.1 58.3 55.2 7.4 7.9 7.4 7.3 21.6 21.6 22.7 21.7 3.3 3.2 3.6 3.2 75.9 75.5 74.9 74.7 9.0 9.7 9.3 9.3 39.4 39.4 38.3 39.1 212.8 213.4 214.5 210.3 51.6 52.2 53.6 52.7 110.1 111.0 112.5 111.8 107.2 105.8 105.2 108.7 '14.3 '13.8 '13.9 '13.6 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 '507. 3 '494. 2 '481. 3 '471.1 '483. 5 8.5 7.6 9.0 73.7 72.8 73.0 73.1 73.0 93 10.0 12.6 39.2 39.2 38.9 39.0 44.7 209.7 211.3 205.2 201.1 218.6 56.7 48.0 47.5 46.7 44.0 111.8 109.8 107.3 106.1 104.1 6 4 6 7 9.8 9.1 9.6 2.8 2.5 2.8 2.9 68.7 67.2 66.9 67.1 13.1 13.2 12.8 12.2 39.3 39.5 40.1 41.6 205.9 209.2 208.4 208.1 49.0 50.2 52.7 49.7 104.9 105.0 108.1 108.5 116.3 111.9 108.4 104.1 103.3 107.5 103.5 107.2 104.0 '12.8 '13.2 '12.9 '13.0 '13.5 '480. '482. '491. '485. 23.1 24.7 13.9 10.2 10.3 10.2 3.1 3.1 2.7 2.3 2.5 Sept. Sept. Sept. Sept. 52.8 54.4 58.0 55.7 66.9 64.1 69.1 67.7 66.0 Oct. 4 Oct. 11 Oct. 18 '509. 5 '506.0 '502. 4 62.3 68.6 71.1 9.2 8.7 9.3 9.3 9.5 9.6 3.6 4.0 4.2 66.3 62.7 62.5 13.3 12.6 11.7 44.1 47.4 46.0 208.2 213.5 214.3 60.1 55.9 47.3 111.0 109.5 110.6 115.0 111.8 3115.5 '15.2 '15.4 '14.6 Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 '557.4 '558.1 71.1 64.5 9.3 8.6 9.6 9.3 4.2 3.9 62.5 60.7 11.7 11.8 46.0 48.5 214.3 207.2 47.3 51.1 110.6 112.0 170.5 172. 6 '14.6 '15.2 '559. 5 '561. 8 '540.3 '543. 8 '537.1 63.0 61.9 53.5 48.4 46.5 7.3 7.1 7.4 5.8 5.4 9.1 8.3 6.8 6.7 6.6 3.9 3.6 3.9 4.5 4.7 59.5 61.2 59.7 58.4 58.5 12.0 12.1 49.6 50.0 49.4 51.8 52.0 204.4 204.1 189.6 185.6 183.1 53.0 50.8 46.3 43.9 43.6 111.8 114.7 110.2 114.2 114.0 175.6 177.5 179.7 183.9 179.3 '14.7 '14.8 '14.6 '16.2 '17.0 Dec. Dec. Dec. Dec. 532.3 539.4 539.5 546.3 44.9 45.1 42.8 44.4 5.4 5.9 4.9 5.0 6.6 6.3 6.6 6.6 5.1 5.1 4.9 4.9 56.1 55.3 54.6 53.9 9.4 9.6 57.0 52.5 52.6 53.0 184.4 179.8 176.9 178.7 41.7 41.4 42.0 46.3 114.0 117.0 114.7 117.5 176.2 184.0 188.8 186.9 16.1 17.2 17.0 16.9 6 13 20 27 6_. 13. 20. 27. 8.5 9.8 10.7 10.8 8.7 7.7 8.0 9.1 8.7 9^5 9.8 8.9 10.1 9.4 10.5 10.9 '13.3 '14.5 '15.1 '15.4 ' Revised. i Last report date on old basis. 2 First report date on new basis. 3 Figures adjusted to the basis employed in previous weeks. The reported figures for the Far East on October 18 and succeeding weeks are not strictly comparable to the corresponding figures for preceding weeks, owing to a correction in reporting practice by one of the reporting banks. For similar reasons adjustments were made with respect to the figures for certain areas on August 12, 1936, and January 5, 1938 (see BULLETIN for May 1937, p. 431, and April 1939, p. 296). The cumulativefiguresin Tables 1 and 4 have been adjusted to exclude the unreal movements introduced into the data by these changes in reporting practice. APRIL 1940 363 CENTRAL BANKS Assets of issue dept. Bank of England (Figures in millions of pounds sterling) Cash reserves Other assets i Gold Liabilities of banking department Assets of banking department Coin Discounts and advances Securities 26.3 38.8 31.6 23.6 58.7 47.1 35.5 46.3 41.1 22.3 49.0 27.3 18.5 16.8 7.6 8.5 17.5 9.2 84.9 104.7 133.0 120.1 101. 4 98.2 94.7 155.6 135.5 Notes Note circulation Deposits Other liabilities Other Bankers' Public 379.6 368.8 364.2 371.2 392.0 405.2 424.5 467.4 505.3 71.0 132.4 126.4 102.4 101.2 89.1 72.1 150.6 120.6 8.8 6.6 7.7 8.9 22.2 9.9 12.1 12.1 11.4 35.8 36 2 40'.3 33.8 36.5 36.4 37.1 39.2 36.6 17.9 18.0 18.0 18.0 18.0 18.0 18.0 18.0 18.0 1929— Dec. 25 1930—Dec. 31 1931—Dec. 30 1932—Dec. 28 1933—Dec. 27 1934—Dec. 26 1935—Dec. 25._ 1936—Dec. 30 1937—Dec. 29— 145.8 147.6 120.7 119.8 190.7 192.3 200.1 313.7 326.4 260.0 260.0 275.0 275.0 260.0 260.0 260.0 200.0 220.0 1938—Oct. 26 ._ _._ Nov. 30 Dec. 28 . _. 326.4 326.4 326.4 200.0 200 0 230.0 1.2 .8 43.9 45.6 51.7 4.2 17.6 28.5 129.2 110.8 90.7 482.5 480.8 504.7 100.4 97.1 101.0 25.0 23.1 15.9 35.5 37.2 36.8 17.7 17.8 18.0 2 126. 4 126.4 3 226. 2 226.2 226.2 226.4 4 246. 4 263.0 5 1 .2 .2 .2 400.0 400.0 300.0 300.0 300. 0 300.0 300.0 300.0 580 0 580.0 580.0 580.0 .7 1.0 1.1 .9 .6 .7 .6 .7 .7 .9 1.1 1.0 62.6 53.7 44.2 37.1 26.4 27.4 35.5 33.5 38.3 53.0 51.6 25.6 18.8 17.5 4.8 6.2 8.0 6.8 8.0 6.4 2.5 4.6 4.5 4.3 103.9 100.6 124.8 129.5 140.7 136.7 128.0 137.8 144 2 127. 7 132.1 176.1 463.8 472.7 482.0 489.1 499.8 499.0 510.9 529.5 541.8 527.1 528.7 554.6 118.2 103.1 98.5 91.4 82.4 101.4 91.4 90.1 107.1 116.8 103.5 117.3 12.9 16.3 21.8 27.0 38.3 15.4 26.0 31.1 19.8 12.6 27.8 29.7 36.7 35.1 36.3 37.6 37.1 37.0 36.7 39.0 40.5 39.2 40.2 42.0 18.1 18.2 18.2 17.7 17.8 17.9 18.1 18.2 18.3 17.7 17.8 17.9 .2 2 580.0 580.0 .8 1.0 52.5 49.0 3.1 2.8 143.9 149.4 527.7 531.2 98.1 99.4 39.7 45.7 44.3 38.9 18.0 18.1 1939—Jan. 25 Feb. 22 Mar. 29 April 26 M a y 31 June 28 July 26 Aug. 30_ Sept. 27 Oct. 25_ Nov. 29 Dec. 27 _ 1940—Jan. 31 Feb. 28 .2 .6 .6 .8 1.0 .5 .6 .6 .8 1.4 Liabilities Domestic bills Bank of France (Figures in millions of francs) Gold 8 Foreign exchange Open , Deposits Loans o n Advances to ShortGovterm Other ern- 9 Govern- securiment ment seties curities Other 5,603 6,609 8,545 9,196 8,251 8,288 7,879 8,344 7,277 Special* Other 17,698 31,909 573 715 675 2,521 2,901 2,730 2,515 2,921 3,211 3,253 3,583 3,781 Note circulation Government Other 68, 571 76,436 85,725 85,028 82,613 83,412 81,150 89, 342 93,837 11,737 12,624 2,311 2,322 3,718 2,862 2,089 3,461 7,850 11,698 22,183 20,072 13,414 15, 359 8,716 13,655 19, 326 1,812 2,241 1,989 2,041 1,940 1,907 2,113 2,557 3,160 7,427 110,446 14,185 14,442 110,935 3,642 6,169 5,061 23,827 31, 955 25, 595 2,727 3,004 2, 718 109, 378 111, 162 119,748 124,666 121, 391 122,611 123,239 142, 359 144, 562 144,379 149,370 151, 322 5,445 5,079 3,955 3,755 4,573 5,188 5,468 3,304 2,342 2,004 1,953 1,914 24,935 22, 556 16, 702 17, 255 17, 570 16,909 16,058 18,038 18,022 14, 790 12, 392 14, 751 2,713 2,830 2,726 2,649 3,020 2,816 2,781 2,708 2,926 3,006 3,346 2,925 1,834 14,965 1, 203 17,128 3,259 3,156 1929—Dec. 27 1930—Dec. 26 1931—Dec. 30 1932—Dec. 30 1933-Dec. 29 1934—Dec. 28 1935—Dec. 27 1936—Dec. 30 1937—Dec. 30 41,668 53,578 68,863 83,017 77,098 82,124 66, 296 60,359 58,933 25,942 26,179 21, 111 4,484 1,158 963 1,328 1,460 911 5,612 5,304 7,157 6,802 6,122 5,837 5,800 5,640 5,580 1,379 652 8,624 8,429 7," 3,438 4,739 3,971 9,712 8,465 10,066 1938—Oct. 27 Nov. 24 Dec 29 55,808 87, 264 87, 265 763 888 821 6,802 7,032 7,422 1,550 1,611 1,797 14,694 11,021 7,880 48,134 20, 627 20,627 1,600 1,559 443 3,865 3,739 3,612 87, 266 87, 266 87, 266 *°92, 266 92, 266 92, 266 92, 266 °97,266 97, 266 97, 266 97, 266 97, 267 761 759 758 756 754 722 722 218 212 85 120 112 8,004 7,801 8,631 8,609 8,164 8,074 8,316 9,396 9,734 10,038 10, 565 11,273 1,996 2,014 2,054 2,165 2,276 2,279 2,275 1,708 1,958 2,007 1,626 2,345 6,193 5,462 5,733 6,012 4,774 5,009 5,000 15,009 14,830 5,206 5,149 20, 627 20,627 20,627 20,577 20,577 20,577 20,577 20, 577 22,777 25, 473 30, 473 34, 673 136 73 172 127 78 374 472 2,412 930 336 454 174 3,317 3,332 3,362 3,401 3,471 3,461 3,805 3,661 3,576 3,581 3,482 14,308 14,558 14,452 14,264 14,753 14,458 16,016 16,482 17.100 17,769 16,438 97, 268 97, 275 111 109 11,861 12,505 2,235 1,810 5,011 4,630 35, 673 40, 523 229 465 3,444 3,403 15, 963 151, 738 16,917 156,150 1939—Jan. 26 Feb. 23 Mar. 30 April 27 May 25 June 29 July 27 Aug. 31 Sept. 28 Oct. 26 Nov. 30.. Dec. 28 1940—Jan. 25 Feb. 29 14.099 Other liabilities 1 Securities and silver coin held as cover for fiduciary issue, which has been fixed at £580,000,000 since Sept. 6,1939; for information concerning previous status of fiduciary issue see BULLETINS for December 1939, p. 1140, and April 1939, p. 339. 2 On Jan. 6, 1939, £200,000,000 of gold transferred to British Exchange Equalization Account. 3 Effective Mar. 1,1939, gold valued at current prices instead of legal parity and about £5,500,000 transferred from Exchange Account to Bank. See note 1. 4 On July 12, 1939, £20,000,000 of gold transferred from Exchange Account to Bank of England. 6 On Sept. 6, 1939, £279,000,000 transferred from Bank of England to Exchange Account. 8 By decree of Nov. 12,1938 (see BULLETIN for January 1939, p . 29), gold revalued on basis of 27.50 milligrams gold 0.900 fine per franc; gold also revalued in October 1936 and July 1937. For further details see BULLETINS for December 1939, p. 1140, and December 1938, p . 1091. 7 Negotiable bills of Caisse Autonome and bills bought under authority of decree of June 17, 1938 (see BULLETIN for Aug. 1938, p. 650). » Bills and warrants endorsed by National Wheat Board (law of Aug. 15, 1936—see BULLETIN for Oct. 1936, pp. 785-786), and bills rediscounted for account of Banques Populaires (law of Aug. 19, 1936—see BULLETIN for Oct. 1936, p. 788). 9 Includes advances granted under authority of Conventions between Bank of France and Treasury of June 18, 1936, June 30, 1937, March 22, 1938, and April 14, 1938, as modified by Convention of Nov. 12, 1938; and under authority of Convention of Sept. 29, 1938, approved by decree of Sept. 1, 1939 (see BULLETINS for July 1936, p. 536; Aug. 1937, p. 720; June 1938, p. 452; Aug. 1938, p. 650; Jan. 1939, p. 30; and Nov. 1939, p. 976). i» On April 20, and again on Aug. 3, 1939, 5,000,000,000 francs of gold transferred from Stabilization Fund to Bank of France. NOTE.—For further explanation of table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. 364 FEDERAL RESERVE BULLETIN Central Banks—Continued Assets Reichsbank (Figures in millions of reichsmarks) 1929—Dec 31 1930—Dec 31 1931—Dec 31 1932—Dec. 31 1933—Dec. 30 1934—Dec. 31 1935—Dec. 31 1936—Dec. 31 1937—Dec. 31 1938—Dec. 31 Liabilities Reserves of gold and Bills (and checks), foreign exchange including Security Total Treasury loans Goldi reserves bills 2,687 2,685 1,156 2,283 2,216 920 396 84 88 72 76 71 77 77 77 71 71 77 77 77 77 77 78 77 1940—Jan. 31 Feb 28? 251 256 245 176 183 146 84 74 60 259 445 349 221 106 92 102 161 398 322 319 315 303 286 45 557 298 8,180 7,726 7,547 8,159 8,461 10,272 10,105 9,358 10,148 11, 392 71 77 1939—Mar 31 Apr. 29 M a y 31 June 30 July 31 Aug 31 Sept 30 Oct 31 Nov 30 Dec. 30 Other 2,848 2,572 4,242 2,806 3,226 4,066 4,552 5,510 6,131 8,244 984 806 386 79 82 66 71 76 - - Securities Eligible as note cover 58 677 292 55 40 48 668 922 930 476 285 274 11,143 10, 867 77 Note circulation Other assets 1,621 5,044 4,778 4,776 3,560 3,645 3,901 4,285 4, 980. 5,493 8,223 1,032 1,012 1,059 1,527 1,091 8,311 8,519 8,525 8,731 8,989 10,907 10,995 10,820 10,974 11, 798 1,249 1,122 1,292 1,281 1,294 1,480 1,602 1,520 1,574 2,018 1,212 1,289 1,234 1,132 1, ir.7 1,294 1,287 1,312 1,332 1,378 11,505 11,110 1,628 1,553 1,382 656 638 1,065 1,114 735 827 853 765 861 36 60 24 35 36 30 925 1,013 1,324 1,440 289 296 393 366 997 365 393 1,489 1,928 2,182 1,658 1,652 1,964 1,963 2, 375 2,257 2,498 33 374 401 2,487 804 Other liabilities Deposits (2) 755 652 755 540 640 984 736 822 1,338 1,313 836 1,001 923 953 970 p Preliminary. 1 Not shown separately on Reichsbank statement after June 15, 1939. 2 Not available. NOTE.—For explanation of above table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. Central bank [Figures as of last report date of month] National Bank of Albania (thousands of francs): Gold Foreign assets Loans and discounts __ _ __ Other assets Note circulation Other sight liabilities Other liabilities Central Bank of the Argentine Republic (millions of pesos): Gold reported separately Other gold and foreign exchange. Negotiable Government bonds Other assets Note circulation Deposits—Member bank Government _ _ _ Other Foreign exchange sold forward Other liabilities ____ __ . . Commonwealth Bank of Australia (thousands of pounds): Issue department: Gold and English sterling. Securities.. ___ _ _ Banking department: Coin, bullion, and cash London balances _ _ . _ _ Loans and discounts Securities Deposits Note circulation Bank of Belgian Congo (millions of Belgian francs): Gold_ _ _ Foreign (gold) exchange Loans and discounts Other assets Note circulation. _ _ _ Deposits Other liabilities r 1940 Feb. 1939 Jan. Feb. 7,567 64, 939 5,311 8,814 26, 316 44, 513 15,802 7,574 17, 996 5,198 4,216 11, 039 11, 478 12, 467 1,224 171 281 192 1,191 428 175 7 14 53 16,082 44,784 4,553 28,467 26,041 52,476 103,613 52,025 Dec. 1,224 69 237 257 1,146 436 138 1 19 48 16, 030 50,023 16, 030 40, 506 4,979 1,479 28, 923 18, 626 19,163 15, 655 50, 863 54,138 95, 322 84,049 57, 275 47, 530 166 5 427 514 401 571 139 Central bank [Figures as of last report date of month] National Bank of Belgium (millions of belgas): Gold and foreign exchange Discounts Loans Other assets Note circulation Demand deposits—Treasury _ Other Other liabilities Central Bank of Bolivia (thousand of bolivianos): Gold at home and abroad Foreign exchange Loans and discounts Securities—Government Other . Other assets Note circulation Deposits Other liabilities _. _ National Bank of Bulgaria (millions of leva): Gold Net foreign exchange in reserve_ Foreign exchange. _ __ Loans and discounts Government debt. _ Other assets Note circulation. _ _ Deposits __ . Other liabilities Bank of Canada (thousands of Canadian dollars): Gold . Sterling and United States exchange Canadian Gov't securities: 2 years or less Over 2 years Other assets Note circulation Deposits—Chartered banks Dominion Government Other Other liabilities 1940 1939 Jan. Dec. Feb. 4,218 1,079 152 497 5,658 2 163 124 4,228 977 228 '494 5,599 30 ••174 124 4,391 175 33 467 4,409 15 520 122 93, 308 63, 889 110,316 414, 704 8,520 69, 691 368, 760 310, 773 80, 894 Feb. 60,127 42,197 27, 900 402, 669 4,558 45, 333 286, 583 231, 795 64, 406 2,006 1,036 712 3,441 1,269 2, 577 3,827 2,061 225,772 225, 772 225, 677 200,175 57,467 61, 205 64, 325 29, 668 159,096 178, 946 81, 897 128, 475 53,031 47, 265 49, 876 33, 821 6,133 5,748 5,453 8,672 208,817 213,070 232, 779 158,488 210,526 220, 304 216, 996 210,536 63, 787 57,154 46, 270 19, 845 4,728 15, 445 17,852 3,088 13, 255 13, 348 13, 330 8,854 Revised. APRIL 1940 365 Central Banks—Continued Central bank [Figures as of last report date of month] Central Bank of Chile (millions of pesos): Gold Discounts for member banks Loans to government Other loans and discounts Other assets Note circulation Deposits— Bank Other Other liabilities Bank of the Republic of Colombia (thousands of pesos): Gold Foreign exchange Loans and discounts Government loans and securitiesOther assets Note circulation Deposits Other liabilities National Bank of Czecho-Slovakia 1 (millions of koruny): Gold Foreign exchange Discounts Loans Other assets Note circulation Demand deposits Other liabilities National Bank of Denmark (millions of kroner): Gold Foreign exchange Discounts Loans—To Government agencies Other Securities Other assets Note circulation Deposits Other liabilities Central Bank of Ecuador (thousands of sucres): Gold Foreign exchange (net) Loans and discounts Other assets Note circulation Demand deposits Other liabilities National Bank of Egypt 2 (thousands of pounds): Gold Foreign exchange Loans and discounts British, Egyptian, and other Government securities Other assets Note circulation Deposits—Government Other Other liabilities Central Reserve Bank of El Salvador (thousands of colones): Gold Foreign exchange Loans and discounts Government debt and securities _ Other assets Note circulation 1940 Feb. 1939 Jan 146 98 750 312 32 917 179 88 154 40,175 7,963 18,786 37, 243 32, 663 53, 034 53, 697 30,100 1,602 803 333 825 6,562 5,912 1,676 2,538 117 8 31 92 327 206 89 586 126 156 Dec. Feb 1940 Central bank [Figures as of last report date of month] Feb. Central Reserve Bank of El Salvador—Cont. Deposits Other liabilities Bank of Estonia (thousands of krooni): Golds Foreign exchange (net) Loans and discounts 128 208 Other assets 96 68 Note circulation 151 147 Demand deposits Other liabilities Bank of Finland (millions of mark36, 758 41, 776 kaa): 5,628 Gold 25,723 19,124 Foreign assets 37,053 37, 955 Loans and discounts 32,153 31, 560 Domestic securities 60,411 54, 968 Other assets 46, 232 44, 992 Note circulation 30, 674 34, 545 Deposits—Treasury Other Other liabilities 1,602 2,362 Bank of Greece (millions of drach1,106 799 2,084 Gold and foreign exchange (net) _. 900 Loans and discounts 995 704 Government obligations 5,749 2,485 6,989 Other assets 6,345 Note circulation 1,054 367 2,648 1,384 Deposits Other liabilities National Bank of Hungary (mil117 118 lions of pengo): 7 121 Gold 26 20 Foreign exchange reserve 162 65 Discounts 334 111 Loans—To Treasury 166 Other 109 Other assets 414 600 Note circulation 110 191 Demand deposits 186 162 Certificates of indebtedness Other liabilities Reserve Bank of India (millions of 36,046 rupees): 2,517 Issue department: 53, 222 Gold at home and abroad._. 15, 080 Sterling securities 64,017 Indian Gov't securities 28, 908 Rupee coin 13, 941 Note circulation Banking department: Notes of issue department._. 6,545 Balances abroad 2,695 Treasury bills discounted.__. 6,902 Loans to Government Investments 25, 340 Other assets 8,109 Deposits 19, 567 Other liabilities 4,446 Bank of Japan (millions of yen): 17,110 Gold Special foreign exchange fund Discounts Loans—Government 13, 211 13, 207 Other 3,039 6,260 Government bonds 2,688 531 Other assets 5,011 5,386 Note circulation 941 958 Deposits—Government 15, 317 16,079 Other Other liabilities 146 123 750 289 17 950 Jan. 40, 931 4,672 49,608 35, 220 62, 462 35,114 32, 855 Feb. 5,929 3,643 145 81 758 204 53 818 Dec. 6,647 3,616 40, 923 4,210 54, 498 34, 856 64, 445 36, 441 33, 603 34, 311 16, 300 25, 516 38, 766 52,470 33, 922 28,502 1,128 2,507 1,167 327 173 2,159 341 620 2,183 3,828 12,863 4,207 2,040 8,914 11,948 2,076 124 75 599 314 23 309 968 155 94 228 3,685 13,079 4,207 1,896 9,453 11, 545 1,870 3,655 8,422 4,297 1,788 6,592 9,762 1,808 124 77 607 314 22 340 954 187 94 248 124 77 585 312 43 344 975 186 94 232 8 467 269 12 374 816 191 99 228 444 1,075 383 642 2,359 444 595 323 697 1,912 186 55 92 12 63 34 313 130 147 99 36 17 69 7 269 106 501 300 825 3 285 2,593 382 3,818 557 176 338 501 300 424 3 61 1,694 368 2,292 591 127 341 501 300 468 3 284 2,415 391 3,153 775 115 319 1 Name changed to National Bank of Bohemia and Moravia, Prague, by decree of March 31, ] 2 Items for issue and banking departments consolidated. ' Gold revalued in part on March 6, 1939, at 0.2802 gram fine gold per kroon. 366 FEDERAL RESERVE BULLETIN Central Banks—Continued Central bank [Figures as of last report date of month] Bank of Java (millions of guilders): Gold _ _ _ Foreign bills ... Loans and discounts. Other assets Note circulation. _ _ Deposits Other liabilities Bank of Latvia (millions of lats): Gold ._ Foreign exchange reserve _ _ Loans and discounts Other assets Note circulation __ Deposits Other liabilities.. Bank of Lithuania (millions of litu): Gold Foreign exchange Loans and discounts Other assets. _ . _ Note circulation. _ .. Deposits.., Other liabilities _ __ _ Netherlands Bank (millions of guilders) : Gold Silver (including subsidiary coin) Foreign bills Discounts._ _ _ _ Loans _ _ Other assets . Note circulation Deposits—Government Other Other liabilities Reserve Bank of New Zealand (thousands of pounds): Gold __. Sterling exchange reserve Advances to State or State undertakingsInvestments Other assets _ Note circulation _ Demand deposits Other liabilities Bank of Norway (millions of kroner): Gold Foreign assets Total domestic credits and securities Discounts Loans Securities.._ Other assets Note circulation Demand deposits—Government. Other Other liabilities Central Reserve Bank of Peru (thousands of soles) : Gold and foreign exchange Discounts __ _ Government loans Other assets. Note circulation. __ _ Deposits . Other liabilities Bank of Portugal (millions of escudos): Gold Other reserves (net) Non-reserve exchange Loans and discounts Governmp/nt debt Other assets _ . __ r 1 2 1940 Feb. 1939 Jan. Dec. Feb. 132 19 78 87 194 96 27 117 8 65 107 185 85 27 71 33 210 54 105 204 58 71 37 211 51 110 204 57 93 42 151 63 79 219 51 53 8 160 61 166 80 36 53 7 163 61 166 82 35 63 8 116 33 142 54 23 1,014 12 2 21 274 85 1 109 1,014 11 2 77 243 85 1,152 245 51 229 49 1,431 27 3 8 261 69 992 140 619 49 2,802 8,726 2,802 8,718 2,802 4,840 24, 752 3 414 357 18, 314 19,446 2,290 22, 656 3,358 490 19, 292 16,434 2,297 19, 671 3,651 321 14, 906 14, 567 1,812 186 103 207 100 210 190 435 219 76 35 108 49 439 33 117 79 457 0) (i) 0) (1) 564 32 79 (i) 0) (i) 0) (1) 575 7 87 (l) 44,169 27, 562 87, 757 5,674 04,846 44, 435 15, 880 919 501 172 472 1,036 1,293 Central bank [Figures as of last report date of month] Bank of Portugal—Cont. Note circulation Other sight liabilities Other liabilities National Bank of Rumania (millions of lei): Gold Special exchange accounts Loans and discounts Special loans 2 Government debt Other assets Note circulation Demand deposits _ Other liabilities South African Reserve Bank (thousands of pounds): Gold Foreign bills __ O t h e r bills a n d loans O t h e r assets _ _. . . N o t e c i r c u l a t i o n . _ _ . . ___ _ Deposits 1940 Feb. 1939 Jan. Dec. Feb. 2 065 1 242 1 086 20,846 4,977 21, 709 1 223 10,066 14,465 47, 749 10, 872 14, 666 20,768 5,177 23,813 1 229 10,059 13, 252 48 800 10, 366 15,132 18,309 4,098 12,176 1 695 10,320 11, 672 33 963 13,814 10,493 30,678 7,995 24 20,114 18, 305 36,465 4,041 30, 204 7,995 134 20, 716 20, 747 33,905 4,397 26, 568 6,830 1 548 15,499 17, 270 29 699 3,476 679 301 645 509 1,422 r 424 288 731 675 176 488 991 r 912 167 2,262 362 105 90 663 2,050 789 642 2,813 259 126 25 701 1,662 1,619 643 36,840 58 11, 359 24,489 98,898 35,314 96,761 77, 235 32,963 36,875 9 10, 257 94, 851 90, 946 24, 566 96, 351 45, 432 15, 720 Other liabilities Bank of Sweden (millions of kronor) : Gold 569 406 Foreign assets (net) . __ _ 600 Domestic loans and investments Other assets . . . _ _. __ 561 Note circulation 1,351 Demand deposits. 340 Other liabilities 445 Swiss National Bank (millions of francs): 2,172 2,211 Gold _ Foreign exchange 328 361 274 168 Discounts 51 62 Loans . __ _ _ Other assets 649 651 Note circulation._ ._ 1,991 1,967 843 845 Other sight liabilities _. 641 Other liabilities 641 Central Bank of the Republic of Turkey (thousands of pounds) : 36,840 Gold __ _ _ 11 Foreign Exchange—Free . . In clearing accounts 10,877 Loans and discounts . . 229, 784 200,079 Securities Other assets. . . . ... 36, 519 Note circulation 297, 761 Deposits __ _ 81, 333 35,015 Other liabilities Bank of the Republic of Uruguay (thousands of pesos): Issue department: Gold and silver Note circulation _ _ _ Banking department: Gold . Notes and coin Loans and discounts Other assets _ _ Deposits _ Other liabilities National Bank of the Kingdom of Yugoslavia (millions of dinars) : 2,010 Gold 772 Foreign exchange 1,955 Loans and discounts 3,073 Government debt. 1,316 National defense bills _ __ 3,712 Other assets 9,798 Note circulation. _ 2,120 Other sight liabilities 920 Other liabilities 03, 585 92, 904 2,712 66, 505 05,813 69, 702 86,089 58,642 1,988 731 2,223 3,067 558 3,755 9,698 1,718 907 1,913 438 1,650 2,229 3,079 6,540 2,062 709 Revised. Figures not yet available. Agricultural and urban loans in process of liquidation. APRIL 1940 367 BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of Swiss gold francsl] 1939 1940 Jan. 31 Feb. 29 Jan. 31 Feb. 28 29, 276 29, 482 51,060 Demand deposits (gold) 12,192 12,164 9,807 33,102 10,877 11,938 12,462 Short-term deposits (various currencies): Central banks for own account Other 18,497 2,950 130,957 6; 332 159,709 9,171 224, 908 218,288 29, 261 271, 525 34,233 2,628 160,015 8,598 222, 326 Long-term deposits: Special accounts.. 229,644 229,644 255,137 Other liabilities 191,622 190,738 193,944 Total liabilities 454,905 469,407 596,177 Other assets 2,102 Total assets 454, 905 December 1936, Feb. 29 Feb. 28 22,190 10, 397 Gold in bars Cash on hand and on current account with banks Sight funds at interest Rediscountable bills and acceptances (at cost) Time funds at interest Sundry bills and investments » See BULLETIN for 1939 1940 Liabilities Assets p. 1,644 2,159 469, 407 596,177 1025. MONEY RATES IN FOREIGN COUNTRIES [Per cent per annum] Month Bankers Treasury acceptances bills, 3 months 3 months Bankers' Day-to-day allowance money on deposits .38 .55 .55 .53 .53 4.96 3.72 2.37 4.08 .78 .86 .28 .53 .53 .50 .51 4.33 3.76 2.29 3.84 .73 .88 .63 .75 .75 .75 .75 1939—July August September. October November. December. .79 1.58 3.51 1.88 1.96 1.23 .77 1.92 3.23 1.77 1.18 1.24 .75 1.35 2.72 1.71 1.00 1.03 1940—January.. _ February.. 1.10 1.04 1.09 1.02 5.05 3.82 2.56 4.63 c Belgium Private discount rate' Private Money for Day-to-day discount 1 month money rate Money for 1 month 3-23^ 1 4-3 1-2 5.80 5.53 4.88 6.67 3.87 3.87 3.41 3.00 3.00 2.88 7.07 6.72 6.31 7.98 5.00 4.91 3.77 2.97 2.86 2.88 2.88 6.33 6.01 5.49 7.81 4.86 4.78 3.83 2.77 2.47 2.73 2.53 4.39 2.80 1.12 1.87 .37 .78 .58 1.19 .28 .13 .13 4.78 2.94 1.05 1.69 1.00 1.00 1.00 1.63 1.00 .50 .50 2.75 2.75 2.75 2.75 c 2. 65 2.63 2.50 2.50 2.65 2.50 2.51 2.23 2.19 2.39 .51 1.03 2.94 1.90 1.75 2.25 0.75 1.53 3.66 2.24 2.41 2.75 2.50 1.02 1.00 1929—February.. 1930—February.. 1931—February,. 1932—February.. 1933—February.. 1934—February. _ 1935—February.. 1936—February.. 1937—February.. 1938—February.. 1939—February _. Netherlands (Amsterdam) Germany (Berlin) United Kingdom (London) 0) 0) 2.03 1.85 1.58 2.64 2.50 0) 0) 0) (0 Sweden Switzerland (Brussels) France (Paris) Italy (Milan) Private discount rate Private discount rate Private discount rate Private discount rate 1929—January... 1930—January... 1931—January... 1932—January.. _ 1933—January.... 1934—January... 1935—January... 1936—January.. _ 1937—January... 1938—January... 1939—January... 3.28 2.97 1.17 1.68 1.50 1.50 1.50 2.48 1.25 1.00 1.00 3.97 3.40 2.38 2.91 2.88 2.14 2.38 1.52 1.00 1.57 2.00 3.50 3.38 i9 5 .12 !.12 .79 .26 2.22 3.00 1.88 5.83 7.00 5.50 7.50 4.42 3.00 4.00 5.00 4.50 5.00 5.00 5. 84-6.21 5.48 5.48-5. 66 5.84-6. 57 5.48-5. 84 5.29 5.11 5.11 4.75 4.75 4.47 1939—June July August September. October. _. November. December. 1.00 1.00 1.00 1.25 1.25 1.25 1.25 2.79 2.30 2.24 3.22 3.19 3.11 3.11 1.88 1.88 1.95 2.70 2.34 2.12 2.12 5.00 5.00 4.47 (3 1940—January... 1.25 Hungary (Stockholm) Japan (Tokyo) Month Loans up Discounted Call Prime to 3 commer- Day-to-day money bills money months cial paper overnight 8 2.12 c Corrected. * Nofiguresavailable since August 1939. * Nofiguresavailable since July 1939. 3 Nofiguresavailable since June 1939. NOTE.—For explanation of table see BULLETIN for November 1926, pp. 794-796; April 1927, p. 289; July 1929, p. 503; November 1929, p. 736; May 1930, p. 318; September 1938, p. 757; and December 1939, p. 1144. 368 FEDERAL RESERVE BULLETIN DISCOUNT RATES OF CENTRAL BANKS [Per cent per annum] Central bank of— Date effective Belgium 4 2 2 4 Neth- Switzerer Japan lands land 3.29 3H 3 2 5 3 3 2 4 3 4 3 3 2 2 Date effective Central bank of— Rate Mar. 28 Albania Argentina-. Belgium Bolivia Britishlndia 6 April 1, 1937 Mar. 1, 1936 Jan. 25, 1940 July 5, 1932 Nov. 28. 1935 Japan Java Latvia. Lithuania... Mexico 3.29 3 5 6 3 6 3 6 Apr. 7, 1936 J a n . 14, 1937 Feb. 17, 1940 July 15, 1939 Mar. 1, 1937 f* Sept. Sept. May Aug.. 6, 1939 22, 1939 20, 1932 11, 1937 4 3 Oct. 10, 1939 Nov. 30, 1932 Mar. 30, 1939 Oct. 1, 1935 Dec. 3, 1934 Rumania 3M South Africa Spain 4 Sweden 3 Switzerland May May *Mar. Dec. Nov. 5, 1938 15, 1933 29, 1939 15,1939 26, 1936 2 4 6 4 Jan. 4, 1939 Sept. 22, 1932 Jan. 4, 1937 Aug. 29, 1935 May 18,1936 Turkey United Kingdom U. S. S. R . Yugoslavia.. 4 July 1, 1938 2 4 5 Oct. 26, 1939 July 1,1936 Feb. 1, 1935 4 3 Aug. Mar. Dec. July Date effective 15, 1935 Netherlands 3 11, 1935 New Zea- C 16, 1936 land _. 3 18, 1933 Norway Peru Jan. 1,1936 Portugal.... 4-4H France Germany... Greece. Hungary Italy ._. 4 3 Rate Mar. 28 Denmark... Ecuador El Salvador Estonia Finland IH 2 4 6 5 4 Central bank of— Bulgaria Canada Chile Colombia—. Czechoslovakia. _ 2H coco In effect June 30, 1936 __ July 7 . . July 10 Sept. 9. Sept. 25 Oct. 2 . . Oct. 9 Oct. 16. . Oct. 20 Nov. 26 Dec. 3 Jan. 28,1937 June 15 . . . July 7 Aug. 4. 8ept. 3 Nov. 13 May 10,1938 May 13 May 30 Sept. 28 Oct. 27 Nov. 25 Jan. 4,1939. Apr. 17 May 11 July 6 Aug. 24 Aug. 2 9 . . . Sept. 28 Oct. 26 Jan. 25, 1940 In effect Mar. 28, 1940 _. United GerKing- France many dom Aug. 29, 1939 2 2 4 2 3 3.29 c Corrected. i Not officially confirmed. Changes since Feb. 28: None. COMMERCIAL BANKS Liabilities United K i n g d o m i (Figures in millions of pounds sterling) Cash Money at call and Bills discounted short notice Loans to customers Securities Deposits Other Total Demand 2 Time 2 Other liabilities 10 London clearing banks 1930—December.. 1931—December— 1932—December.. 1933—December.. 1934—December.. 1935—December1936—December1937—December.. 1938—December.. 208 184 207 213 216 221 235 144 119 127 119 151 159 187 155 150 322 246 408 311 255 322 316 295 244 286 297 472 565 594 605 630 605 606 933 905 778 740 759 784 864 954 940 240 222 208 237 247 231 238 242 250 1,876 1,737 1,983 1,941 1,971 2,091 2,238 2,250 2,172 992 868 991 1,010 1,044 1,140 847 846 903 900 910 924 254 237 216 244 251 231 232 237 254 11 London clearing banks 3 1936—December.. 1937—December.. 1938—December. 244 244 243 195 163 160 322 300 250 660 635 635 890 984 971 249 256 263 2,315 2,330 2,254 l t 288 1,284 1,256 1,012 1,026 997 245 252 1939—JanuaryFebruary.. March April May June— July August September October __ November. December. 248 243 232 229 236 235 235 233 268 256 245 274 143 138 141 145 144 150 155 152 146 159 142 174 256 212 190 184 201 249 278 279 236 289 353 334 625 617 611 611 605 600 597 599 603 605 611 609 972 982 992 997 992 993 986 985 1,016 1,020 1,000 1,015 252 253 249 256 258 257 251 269 276 271 242 290 2,230 2,176 2,152 2,155 2,167 2,219 2,240 2,245 2,278 2,327 2,345 2,441 1,260 1,213 1,186 1,185 1,194 1,232 1,241 1,239 1,272 1,299 1,303 1,398 970 964 966 970 973 987 999 1,007 1,006 1,028 1,042 1,043 267 268 264 267 268 C 265 263 *273 266 272 248 256 1940—January. _. February.. 242 247 154 149 o388 353 610 609 1,010 1,007 267 259 2,410 2,366 261 258 c Corrected. 1 Averages of weekly figures through August 1939; beginning September 1939 figures refer to one week near end of month. 2 Through December 1937 excludes deposits in offices outside England and Wales, which are included in total. Figures for 10 banks not available3 beginning 1936. District Bank included beginning in 1936. NOTE.—For other back figures and explanation of tables see BULLETIN for October 1933, p p . 639-640. APRIL 1940 369 Commercial Banks—Continued Liabilities France (4 large banks. E n d of month figures in millions of francs) Cash Due from Bills discounted banks Deposits Other Loans Total Demand 1930—December... 1931—December... 1932—December.. 1933—December.. 1934—December.. 1935—December.. 1936—December.. 1937—December— 1938—December.. 2,419 11,311 9,007 5,870 5,836 3,739 3,100 3,403 3,756 4,675 2,168 1,766 1,416 1,421 2,484 2,975 4,116 4.060 20,448 18,441 22,014 19,848 18,304 16,141 17,582 18,249 21,435 10,743 9,274 7,850 8,309 8,159 8,025 7,631 7,624 7,592 2,361 2,130 1,749 1,827 1,717 1,900 1,957 2,134 1,940 1939—January February.._ March April May June July August September.. October v __. November.. 3,329 3,433 3,604 3,522 5,148 3,538 3,464 6,357 5,062 4,532 4,171 3,985 3,824 3,519 3,745 3,769 3,857 3,580 3,718 3,862 3,745 3,714 22,100 23,024 23,945 25,667 25,102 25,263 25,717 18,784 20,888 22,853 25, 649 7,079 6,927 6,654 6,414 7,061 6,538 6,850 7,353 7,710 7,784 7,907 1,339 1,250 1,310 1,353 1,409 1,472 1,532 1,674 1,735 1,931 2,068 35,284 37,023 36,491 31,773 36,681 38,245 37,759 32,635 30,943 27,553 28,484 30,348 33,578 33,444 34,243 34,793 1,397 1,222 1,268 862 904 26,859 27,955 29,748 33,042 694 529 600 637 581 624 667 667 676 684 659 626 594 604 33,619 34,127 35,700 37,444 35,547 35,991 32,668 34,048 35,385 37,835 38,120 36,231 36,650 33,293 34,642 35, 989 38,423 Own accept- Time Other liabilities 921 676 295 273 193 337 473 661 721 4,357 4,503 4,331 4,362 4,301 4,399 4,289 4,517 4,484 638 541 558 519 486 430 455 427 529 631| 3,745 3,677 3,697 3,775 3,849 3,951 4,063 4,138 4,190 4,326 4,455 Liabilities Germany' (5 large banks. E n d of month figures in millions of reichsmarks) Cash 191 173 143 131 115 139 137 148 199 270 179 195 184 175 219 189 237 214 1930—November.. 1931—November.. 1932—November.. 1933—November.. 1934—November.. 1935—November.. 1936—November.. 1937—November.. 1938—August September.. October __ November.. 1939—January February March April May June* Due from banks 1,483 817 583 471 393 316 269 299 255 295 261 270 285 307 308 271 292 Bills discounted Loans 2,453 1,431 1,631 1,702 2,037 2,162 2,567 3,205 3,384 3,620 3,643 3,934 3,904 4,364 4,537 4,108 7,416 6,377 4,570 3,731 3,331 2,884 2,729 2,628 2,731 2,817 2,743 2,685 2,708 2,798 2,833 2,761 2,772 2,988 Securities 482 807 874 1,027 1,112 1,020 1,098 1,097 1,183 1,406 1,178 1,145 1,112 1,082 1,073 1,080 Deposits Other Total 1,127 991 1,003 851 812 844 876 895 902 901 891 852 829 9,091 6,062 6,161 5,754 5,816 5,376 6,751 6,264 6,933 6,915 7,031 7,234 7,334 7,377 7,458 7,745 7,981 7,793 Demand 3,857 3,252 2,958 2,624 2,731 2,435 2,661 2,912 3,219 3,311 3,373 3,531 3,619 3,576 3,693 3,870 3,996 3,793 _ ._ _ __ _ 1940—January.. 3,668 3,703 3,716 3,801 3,765 3,875 3,985 3,999 1,986 1,328 1,146 661 485 686 679 613 416 424 422 420 414 410 401 398 396 Other Note circulation Deposits payable in Canada excluding interbank deposits Total 207 201 211 197 228 228 240 255 263 1930—December.. 1931—December.. 1932—December.. 1933—December.. 1934—December.. 1936—December.. 1936—December.. 1937—December. 1938—December.. 1939—January February March _ April May June July August. September October November. December Security loans abroad and net SecuriOther due ties Cash Security loans from reserves loans and dis- foreign counts banks Entirely in Canada (10 chartered banks. E n d of month figures in millions of Canadian dollars) 5,233 2,810 3,203 3,130 3,085 2,941 3,090 3,352 3,714 1,828 2,341 1,550 1,481 1,432 1,449 1,334 1,336 1,368 1,400 1,427 1,438 1,436 1,427 1,418 1,414 1,385 1,342 Liabilities Assets Canada Time Credits Other obtained liabilifrom ties banks 205 135 103 106 103 83 114 76 65 1,275 1,253 1,104 1,036 977 945 791 862 940 171 146 165 134 155 141 161 102 166 604 694 778 861 967 1,155 1,384 1,411 1,463 510 439 432 449 485 607 510 474 133 129 115 121 124 111 103 96 88 2,115 2,058 1,916 1,920 2,035 2,180 2,303 2,335 2,500 276 267 259 260 266 255 266 265 279 304 295 292 63 60 56 54 55 53 51 49 51 53 56 53 919 921 943 956 963 957 947 957 1,020 1,083 1,102 1,088 167 171 192 203 217 226 202 245 214 209 157 132 1,454 ,490 :1,499 L, 509 L, 605 1,525 L,520 1,507 :L,502 L, 662 1,665 1,646 459 450 458 449 452 494 468 461 475 474 475 490 85 88 93 90 85 92 86 88 95 90 89 85 290 48 1,073 134 1,654 466 82 Demand Time Other liabilities 563 628 694 755 752 840 1,426 1,360 1,378 1,357 1,407 1,486 1,548 1,583 1,660 816 752 760 725 718 745 790 786 782 2,457 2,471 2,492 2,509 2,524 2,542 2,520 2,524 2,583 2,837 2,809 2,774 789 780 791 812 846 862 822 822 891 1,128 1,074 1,033 1,667 1,691 1,700 1,697 1,678 1,680 1,697 1,702 1,692 1,709 1,735 1,741 796 800 821 833 850 875 849 873 862 858 851 842 2,755 1,005 1,751 827 p Preliminary. 1 Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large Berlin banks. Beginning in 1935 figures are not entirely comparable with those shown for previous years due to changes in reporting practice (See B U L L E T I N for J u n e 1935, p . 389). 2 N o figures available since June 1939. N O T E . — F o r other back figures and explanation of table see BULLETIN for October 1933, p p . 641-646; June 1935, p p . 388-390; and August 1939 p. 699. 370 FEDERAL RESERVE BULLETIN FOREIGN EXCHANGE RATES [Averages of certified noon buying rates in New York for cable transfers. In cents per unit of foreign currency] Argentina (peso) Year or month AusBeltralia gium (pound) (belga) Brazil (milreis) Free market Official 1933. 1934. 1935. 1936. 1937. 1938. 1939.. 72.801 33.579 32.659 33.137 32.959 32. 597 30.850 337.07 400.95 388.86 395.94 393.94 389. 55 353.38 17.900 23.287 18.424 16.917 16.876 16.894 16.852 7.9630 8.4268 8. 2947 8. 5681 8.7190 5.8438 6.0027 1939—February... March April May June. July... August September October. __: November.. December.. 31.236 31. 234 31.207 31.210 31. 217 31.211 29. 772 29. 773 373.33 373.27 372.86 372.89 373.12 373.03 367.32 318.38 319.51 312. 66 313.13 16.860 16.823 16.838 17.016 17.008 16.991 16.968 17.028 16.729 16.490 16. 577 1940—January... February.. 29. 772 29. 773 315.82 315. 79 16. 834 16.859 31.116 29.770 Chile (peso) British India (rupee) Canada (dollar) 3.4248 3. 4245 July. August SeptemberOctober November. December _ 20.912 20.912 20.891 20.895 20.900 20.896 20.834 19. 317 19. 291 19. 294 19. 297 480.43 480.40 479.90 479.97 480.10 480.00 472.41 432.04 2.0604 2.0597 2.0542 2.0548 2.0559 2.0547 2.0456 1.9000 1.8943 1.8964 1.8136 1940—January February __ 19.304 19. 310 88.018 86. 654 5.1670 5.1655 4.0000 4.0000 7.833 7.012 57.205 57. 264 28.103 27. 742 27.778 27.760 27.750 22.122 19.303 51.721 67.383 67.715 64.481 55.045 55.009 53.335 340.00 402.46 391.26 398.92 396.91 392.35 354.82 29. 078 29.049 28.659 28.884 28.916 28.703 28.213 24.863 25.030 24.491 24.482 19. 627 19.613 19.602 19.588 19.577 19.576 19.576 17.602 17.600 5.2602 5.2601 5.2601 5.2603 5.2604 5.2605 5. 2515 5.1445 5.0465 5.0444 5.0452 27.297 19.973 27.300 20.026 27.274 20.023 27.277 20.025 27.284 19.753 27.279 17.133 26.870 16.800 23.459 19.023 23.510 20.151 23.440 20.497 23.441 18.185 53.626 53.092 53.132 53.601 53.167 53.278 53.484 53.182 53.115 53.080 53.107 374.84 374.78 374.41 374.42 374.60 374.49 368.82 319.75 320.81 313.96 315.03 24. 629 24.572 17. 586 17. 605 5.0470 5.0467 23.438 23.438 53.208 53.137 317.09 317.06 40.117 40.098 40.081 40.115 40.105 40.113 39.859 2. 2651 39.864 2.2736 40.092 2.2246 40.127 2.2269 40.097 .8583 .8586 .8579 .8570 .8565 .8576 .8520 .7575 .7345 .7244 .7157 2. 2461 40.118 1. 7078 2. 2459 40.117 .7155 .7176 Portu- Ruma- South Spain Africa gal nia (escudo) (leu) (pound) (peseta) Norway (krone) Poland (zloty) 1933.. 1934.. 1935.. 1936.. 1937.. 1938.. 21.429 25.316 24.627 24.974 24.840 24. 566 23. 226 14.414 18.846 18.882 18.875 18.923 18.860 18.835 3.9165 4.6089 4. 4575 4. 5130 4. 4792 4.4267 4.0375 .7795 1.0006 .9277 .7382 .7294 .7325 .7111 414.98 498.29 484.66 491.65 489.62 484.16 440.17 1939—February. _. March April May.. June July August SeptemberOctober November.. December.. 23. 539 23. 539 23.515 23.519 23.524 23.520 23.376 22. 655 22. 697 22. 703 22.701 18.898 18.860 18.818 18.812 18.812 18.808 18.754 4.2508 4.2502 4.2448 4.2460 4.2484 4.2506 4.2234 3.6564 3. 6444 3.6067 3.6044 .7272 .7140 .7056 .7056 .7042 .7035 .7043 1940—January February. _. 22.706 22. 709 New Japan Mexico Netherlands Zealand (yen) (peso) (guilder) (pound) 25. 646 29.715 28.707 29.022 28.791 28.451 25.963 31.711 30.694 30.457 27.454 2.6471 2.6488 2.6478 2.6487 2.6493 2.6488 2.6137 Italy (lira) 6.7094 8. 5617 8. 2471 7.2916 5.2607 5.2605 5.1959 .9055 .8958 .8153 6.1141 4.0460 2.8781 2.5103 Hungary (peng6) 22.360 29. 575 29.602 29.558 19. 779 19. 727 19. 238 .7233 .9402 1.8156 3.6259 3.6228 56.990 56.983 56.982 57.009 57.169 57.036 57.061 57.068 57.151 57.206 57.022 30.140 30.163 30.518 39.375 40.258 40.297 40.204 40.164 40.061 .7055 15.885 16.016 16.015 15.987 13.434 10.637 7.163 0.696 7.638 8.353 7.487 5.0132 5.0237 5.0313 6.5688 6.6013 Year or month 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 6.0562 6.0569 1.8708 2.2277 2.1627 2.1903 1939—February. _ March April May 5.1736 5.1733 5.1735 5.1733 5.1737 5.1703 5.1691 5.1776 5.1713 5.1714 5.1705 . 2130 . 2103 .2089 . 2101 .2077 . 2126 . 2111 . 434. 39 516. 85 502.60 509.68 506. 92 501.30 478.83 2.1811 2.1567 1.9948 99.502 99.583 99.483 99.620 99.773 99.835 99.494 91.255 89.331 87. 755 87.615 35.014 35.057 34.962 34.916 34.924 34.905 34.407 29.928 30.296 30.127 30.032 19.071 22.500 21.883 22.189 22.069 21.825 20.346 1937., 1938.. 1939.. 4.0000 4.0000 4.0000 5.3759 5.3931 5.1737 5.0555 5.0236 5.0162 5.0503 5.0322 5.0263 3.8232 4. 2424 4.1642 4.0078 3.4930 3. 4674 3. 4252 1933.. 1934.. 1935.. 5.1240 5.1697 5.1716 5.1727 5.8602 5.8647 5.9941 6.0586 6.0586 6.0571 6.0579 6.0594 6.0575 6.0580 6.0576 GerFrance many Greece Hong (drach- Kong (franc) (reichs- ma) (dollar) mark) 81. 697 61. 780 56.011 57.083 56.726 55.953 57.061 28.598 34.094 36.571 29.751 29.606 21.360 11.879 5.1248 Finland (markka) Colombia (peso) 7. 6787 10.1452 1.0039 1.2852 1.2951 Czecho- DenEgypt slovakia mark (koruna) (krone) (pound) Year or month Export 91.959 101.006 99.493 99. 913 12846 100.004 . 2424 99.419 . . 2111 96.018 . 31.816 37.879 36.964 37.523 37.326 36. 592 33.279 5.8788 6.1806 Official China (yuanShanghai) 29. 452 38. 716 48. 217 16.663 16. 654 Uruguay (peso) Straits Swe- SwitzUnited YugoSettleerland Turkey Kingden slavia ments (krona) (franc) (pound) dom Con- Non-con- (dinar) (dollar) (pound) trolled trolled 10.719 13.615 13.678 12.314 6.053 5.600 9.988 49. 232 59.005 57.173 58.258 57.973 56.917 51. 736 22.032 25.982 25.271 25.626 25.487 25.197 23.991 24.836 32.366 32.497 30.189 22.938 22.871 22. 525 60.440 79.047 80.312 80.357 80.130 80.109 80.243 423.68 503.93 490.18 497.09 494.40 488.94 443.54 60.336 79.956 80.251 79.874 79.072 64.370 62.011 463.83 463.74 462.80 463.11 463.32 463.28 456.10 394.57 396.12 397.15 397.41 11.023 11.023 11.023 11.000 10.492 10.148 10.039 9.950 54.416 54.394 54.273 54.373 54.509 54.785 53.996 46.712 47.017 46.246 46.102 24.133 24.130 24.111 24.110 24.107 24.114 24.002 23.763 23.792 23.798 23.796 22. 672 22.614 22.431 22.480 22.546 22.550 22.573 22.576 22.433 22.428 22.422 80.385 80.361 80.279 80.290 80.101 80.021 80.022 79.600 468.57 468.54 468.05 468.13 468.24 468.15 461.07 399.51 401.05 392.47 393.01 61.646 61.650 61. 592 61.598 61.609 61.600 60.659 397.86 398.00 9.950 9.950 46.484 46.483 23.806! 22.419 23.807 22.4181 396.39 396.34 65.830 65.830 65.830 65.830 36. 789 35.620 35.818 1.7607 2.2719 2.2837 2. 2965 2.3060 2.3115 2. 2716 2.2820 2.2781 2. 2636 2.2675 2.2674 2.2744 2.2729 38.180 39.022 37.063 36.457 2.2649 2.2657 36.360 37.466 2.2595 2.2560 NOTE.—Developments affecting averages since July 1939 have been as follows: No rates certified for following days: Argentina—Aug. 26-Oct. 16; Brazil—Sept. 1; Bulgaria—beginning Aug. 30; Denmark—Aug. 26-31; Egypt—beginning Sept. 2; Finland—Aug. 26-Sept. 1 and Sept. 3-5; Hungary— Aug. 26-Nov. 8 and Jan. 27-Feb. 8; Norway—Aug. 26-29; Poland—beginning Aug. 26; Rumania—Aug. 26-Nov. 5 and Feb. 1-29; Yugoslavia—Aug. 26-Nov. 5; Turkey—Aug. 25-28 and beginning Sept. 2; Uruguay—controlled rate, Sept. 1-Nov. 28, and non-controlled rate, Oct. 17-Nov. 28. Averages based on nominal quotations for at least 5 days a month as follows: Aug.—Australia; Sept.—South Africa; Sept. and Oct.—British India, Hong Kong, Japan, and Straits Settlements; Nov., D e c , Jan., and Feb.—British India, Germany, and Yugoslavia; D e c , Jan., and Feb.—Finland. For further information concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the basis of quotation, see BULLETIN for March 1938, p. 244; March 1939, p. 236; September 1939, p. 831. APRIL 1940 371 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] United United France Germany Italy Canada Kingdom States (1926=100) (1926=100) (1930=100) (1913=100) (1913=100) (1928=100) Year or month i 124 100 100 95 86 1926 1929 1930 1931 1932 1933 1934 1935 1936 . __ . 1937 1938 1939 96 87 72 67 67 72 72 75 85 79 75 86 86 88 89 94 109 101 103 427 398 376 338 411 581 689 73 65 66 75 80 81 86 79 77 _. -. _ — _ 100 88 Nether, lands (1926-30= 100) Switzerland (July 1914 =100) 695 134 237 106 627 554 137 125 95 85 220 181 100 90 141 126 500 111 75 153 76 110 96 91 90 90 96 111 107 111 264 265 266 270 270 270 272 288 293 300 314 70 70 70 70 70 70 70 71 75 81 84 85 106 105 105 320 317 86 88 128 653 1939—January February.. ._ _ _ _ March April May June July August September __ October November. . . . December.. __ 73 97 77 77 76 76 76 75 75 79 79 79 79 73 73 73 74 73 73 72 78 79 80 82 97 97 97 98 98 98 98 106 111 117 121 685 683 675 684 683 678 674 1940—January February 79 79 83 124 (») 77 Japan (October 1900=100) (2) 97 93 98 102 104 106 106 107 70 63 62 68 76 89 107 97 161 180 178 186 198 238 251 278 95 107 107 106 107 107 107 107 107 107 107 108 65 63 63 62 64 76 72 74 259 97 98 98 97 98 96 (3) 108 (2) 144 106 107 106 107 107 117 120 123 125 p Preliminary. 1 Approximate figure, derived from old index (1913=100). 2 No figures available since August 1939. 3 No figures available since July 1939. WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] • United Kingdom (1930=100) United States (1926=100) Year or month Farm products Foods Other commodities Foods France (1913=100) Germany (1913=100) Farm IndusIndus- Agriculand food trial trial tural products products products products Provisions Industrial raw Indusand semi- trial finished finished products products 1926 100 100 100 581 793 129 132 130 150 1929 1930 1931 1932 1933 1934 1935 1936 1937 . . 1938 1939 105 88 65 100 91 75 92 85 75 166 89 100 87 579 526 542 669 579 464 130 113 104 125 113 96 132 120 103 79 81 86 69 84 82 86 74 70 71 78 88 83 85 85 87 90 482 420 393 380 380 361 86 75 76 78 80 85 82 91 87 96 89 88 91 157 150 136 118 113 116 92 94 96 94 119 121 125 126 95 126 94 94 92 94 91 92 92 94 126 94 95 95 94 94 95 95 95 96 97 97 126 126 126 126 126 126 126 126 126 126 127 0) (0 98 127 _ ._ ._ . 48 51 65 61 61 71 65 70 81 1939—January February March April May -_ June July August _ _ __ September... October November. December 67 72 80 1940—January February 69 69 67 66 64 64 62 63 61 69 67 67 68 72 70 69 68 68 68 67 75 73 72 72 72 71 87 92 102 97 90 96 112 104 98 105 93 100 327 426 562 641 80 80 81 81 80 80 80 82 84 84 84 91 90 91 92 92 91 90 101 109 115 120 84 83 124 P126 348 397 598 663 102 105 105 106 84 86 96 91 108 688 100 100 100 101 101 102 102 108 111 118 121 673 671 650 652 643 629 616 124 (0 0) 0) 0) (0 (0 690 694 694 697 712 718 721 726 8 8 0) 0) 108 108 108 107 108 109 109 109 108 108 108 108 108 94 0) 0) (0 (0 p Preliminary. i No figures available since August 1939. Sources.—See BULLETIN for March 1931, p. 159; March 1935, p. 180; October 1935, p. 678; March 1937, p. 276; and April 1937, p. 372. 372 FEDERAL RESERVE BULLETIN Price Movements—Continued RETAIL FOOD PRICES [Index numbers] Year or month COST OF LIVING [Index numbers] EngGerUnited Nether- Switzland France States many erland lands July July 192319131911June 1925=100 1914=100 1914=100 1914=100 1913=100 1914=100 United States GerEngNether- Switzland many France lands erland 1923July 19131911June 1925=100 1914=100 1930=100 1914=100 1913=100 1914=100 Year or month 1926 109 161 554 146 161 160 1926 103 170 142 168 162 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 105 100 82 68 66 74 81 82 85 79 77 154 145 131 126 120 122 125 130 139 141 141 611 614 611 536 491 481 423 470 601 702 156 146 131 116 113 118 120 122 122 122 123 162 150 136 119 120 124 118 120 127 130 156 152 141 125 117 115 114 120 130 130 132 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 100 97 89 80 76 79 81 82 84 83 82 164 158 148 144 140 141 143 147 154 156 158 154 148 136 121 118 121 123 125 125 126 126 168 161 151 141 139 140 136 U32 137 139 161 158 150 138 131 129 128 130 137 137 138 138 138 135 135 134 134 139 137 138 154 157 157 748 744 742 734 738 739 741 749 (3) (3) 122 122 123 122 123 124 125 125 122 122 122 123 129 129 128 129 130 132 132 131 133 136 138 138 1939-January February March July August September October.. November December. 78 77 76 77 77 76 77 75 79 78 78 77 1940-January.... February. 77 78 157 161 (3) (3) 139 1940-January February. 1939-January... February.. March April May— • June (3) (3) 130 124 124 128 133 136 137 124 April May 82 . June July August September October November December. 82 83 82 100 97 91 87 83 78 86 102 117 155 155 153 153 153 153 156 155 155 165 169 173 126 126 126 126 126 127 127 127 126 126 126 126 122 123 (2) (2) (2) 174 177 138 136 137 139 143 144 146 144 127 3 i Revised index from March 1936 (see BULLETIN for April 1937, p. 373). ' No figures available since M a y 1939. August 1939. Sources— See BULLETIN for April 1937, p . 373, and October 1939, p. 943. 137 136 136 136 137 137 138 137 138 140 142 142 No figures available since SECURITY PRICES [Index numbers except as otherwise specified] Common stocks Bonds Year or month United States (average price)1 (1926=100) England (December 1921=100) France (1913=100) Germany (average price) Number of issues.. 60 1926 97.6 110.0 57.4 1929 1930. 1931 1932. 1933 1934 1935. 1936 1937 1938 1939 98.1 99.3 90.9 69.5 73.4 84.5 88.6 97.5 93.4 78.9 81.6 110.2 111.8 108.4 113.2 119.7 127.5 129.9 131.2 124.6 121.3 112.3 85.1 95.8 96.9 88.6 81.3 82.1 83.5 76.3 75.1 77.3 81.4 83.3 »83.4 '67.1 82.5 90.7 95.3 95.8 98.7 99.9 99.0 1939—January February March April May . June JulyAugust September.. October..___ November... December 81.9 82.1 83.1 79.4 80.2 81.4 81.6 81.0 80.9 82.9 83.0 82.1 115.9 115.8 113.6 110.8 113.5 113.5 112.5 110.9 106.9 109.5 112.3 112.4 83.4 86.5 86.0 86.6 85.1 84.0 84.3 82.9 (6) 1940—January February 82.4 82.2 117.6 119.9 Netherlands * 87 36 i(56) () United States England France Germany Netherlands (1930=100) 100 420 278 300 329 100.0 100.0 100.0 100.0 100.0 104.3 104.1 94.8 105.3 113.4 107.8 109.1 * 101.8 105.9 90.9 190.3 149.8 94.7 48.6 63.0 72.4 78.3 111.0 111.8 83.3 89.2 119.5 102.6 78.9 67.9 78.6 85.7 86.3 97.0 96.3 80.8 75.9 217.6 187.6 132.2 105.2 99.6 83.3 79.7 77.2 97.4 89.7 122.8 100.2 3 78.0 3 50.3 61.7 71.1 82.9 91.6 102.6 100.1 94.1 99.0 99.0 99.0 99.0 99,0 99.0 99.0 99.0 98.9 98.9 99.0 99.0 104.3 102.1 100.9 95.2 98.0 96.3 94.4 92.6 79.6 80.3 80.9 77.2 91.8 90.1 91.7 81.9 83.1 86.0 86.1 86.3 92.4 95.3 94.2 91.8 78.0 77.5 77.1 75.1 77.0 76.6 75.8 75.3 72.0 74.9 76.0 75.7 94.0 100.0 97.9 97.9 103.0 98.3 100.4 94.0 (6) 95.3 96.1 94.4 94.9 94.1 92.5 91.7 93.2 92.8 92.3 94.5 97.8 94.3 92.4 94.0 87.2 89.3 91.6 89.3 88.6 92.1 87.7 85.8 84.3 99.1 77.9 92.7 91.5 75.7 77.1 101.0 85.4 139 8 8(56) () 100 70 46 52 55 55 66 104 96 90 1 2 Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Co. Indexes of reciprocals of average yields. For old index, 1929-1936, 1929=100; average yield in base year was 4.57 per cent. For new index beginning January 1937, January-March 1937=100; average yield in base period was 3.39 per cent. 8 Exchange closed from July 13 to Sept. 2,1931, and from Sept. 19,1931, to Apr. 11,1932. Index for 1931 represents average of months JanuaryJune; index for 1932 represents average of months May-December. 4 New index. See note 2. * Nofiguresavailable since August 1939. Sources.—See BULLETIN for February 1932, p. 121; June 1935, p. 394; April 1937, p. 373; July 1937, p. 698; and November 1937, p. 1172. APRIL 1940 373 redetal ?<e5etve Publication* Copies of the publications and releases listed below may be obtained from Board of Governors of the Federal Reserve System, Washington, D. C. BOOKS AND PAMPHLETS CURRENT RELEASES DAILY Foreign Exchange Rates (for previous day) WEEKLY Monday: Condition of Reporting Member Banks in 101 Leading Cities Bank Debits Tuesday: Money Rates—Open-Market Rates in New York City Wednesday: Weekly Review of Periodicals Thursday: Condition of Federal Reserve Banks Condition of Reporting Member Banks in New York City and Chicago (Also a part of statement of Condition of Reporting Member Banks in 101 Leading Cities released on following Monday) Friday: Department Store Sales MONTHLY Federal Reserve Bulletin—released about the 4th of the month (subscription price $2.00 per annum, single copies 20 cents; outside of the United States, Canada, Mexico, and the insular possessions, annual subscription $2.60, single copies 25 cents) Federal Reserve Inter-District Collection System (Par List)—including list of State bank members. Semi-annual issues, January-July, and monthly supplements—released about 7th of the month National Summary of Business Conditions—released about the 16th of the month Business Indexes—released about the 16th of the month Bank Debits—released between the 6th and 12th of the month Foreign Exchange Rates—released about the 1st of the month Money Rates—released about the 3rd of the month QUARTERLY Member Bank Call Report (3 or 4 times a year depending upon number of calls for condition reports) List of Stocks Registered on National Securities Exchanges. Issued annually in February with quarterly supplements (subscription price 25 cents for the List and three supplements; five or more copies on one order, 20 cents per copy; fifty or more copies on one order, 15 cents per copy). ANNUALLY Bank Debits—released ordinarily in February Annual Report (covers calendar year) 374 A set of FEDERAL RESERVE CHARTS ON BANK CREDIT, MONEY RATES, AND BUSINESS has been published by the Board and is for sale to the public at 50 cents a copy. Latest issue is November 9, 1939. The FEDERAL RESERVE ACT AS AMENDED to October 1, 1935, with mimeographed supplements showing amendments to date, has been printed by the Board and will be supplied without charge. DIGEST OF RULINGS—from 1914 to October 1, 1937. Digests of rulings of Board; compilation showing textual changes made in the Federal Reserve Act; digests of court decisions and opinions of the Attorney General involving a construction of the Federal Reserve Act; and digests of court decisions involving Federal Reserve Banks. Price $1.25 per copy. 683 pages. THE FEDERAL RESERVE SYSTEM—ITS PURPOSES AND FUNCTIONS. Obtainable in cloth binding at 50 cents a copy and in paper cover without charge. 128 pages. PROBLEMS OF BANKING AND BANK SUPERVISION. Excerpts from the 1938 Annual Report of the Board of Governors of the Federal Reserve System. 33 pages. MONETARY MEASURES AND OBJECTIVES. Three statements by the Board on objectives of monetary policy, on proposals to maintain prices at fixed levels through monetary action, and on legislative proposals relating to monetary measures and objectives. 8 pages. July 1937, April 1939, and May 1939. THE HISTORY OF RESERVE REQUIREMENTS FOR BANKS IN THE UNITED STATES. Legislation, designa- tion of reserve cities, and changes in the reserve position of banks. 20 pages. November 1938. SUPPLY AND USE OF MEMBER BANK RESERVE FUNDS. Explanation of analysis of sources of mem- ber bank reserve funds and uses to which such funds are put as indicated by Federal Reserve and Treasury statements. 31 pages. July 1935. MEMBER BANK STATISTICS. A discussion of the statistics compiled and published by the Board covering the operations and condition of member banks. 28 pages. November 1935. REVISED INDEXES OF FACTORY EMPLOYMENT. Bu- reau of Labor Statistics indexes adjusted for seasonal variation by Board of Governors. 32 pages, October 1938; 10 pages, October 1939. ANALYSES OF THE BANKING STRUCTURE—As of December 31, 1935. Number, deposits, and loans and investments of banks classified by size of bank and town and by other factors. 33 pages. THE GOLD PROBLEM TODAY, by E. A. Goldenweiser— reprint of article, 4 pages, January 1940. THE PAR COLLECTION SYSTEM OF THE FEDERAL RESERVE BANKS—by George B. Vest—8 pages, Feb- ruary 1940. FEDERAL RESERVE BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MARRINER S. ECCLES, Chairman RONALD RANSOM, Vice Chairman M . S. SZYMCZAK JOHN K. MCKBE CHESTER C. DAVIS ERNEST G. DRAPER LAWRENCE CLAYTON, Assistant to the Chairman ELLIOTT THTJRSTON, Special Assistant to the Chairman CHESTER MORRILL, Secretary LISTON P. BETHEA, Assistant Secretary S. R. CARPENTER, Assistant Secretary J. C. NOELL, Assistant Secretary WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel GEORGE B. VEST, Assistant General Counsel B. MAGRTJDER WINGFIELD, Assistant General Counsel E. A. GOLDENWEISER, Director, Division of Research and Statistics WOODLIEF THOMAS, Assistant Directory Division of Research and Statistics LEO H. PAULGER, Chief, Division of Examinations R. F. LEONARD, Assistant Chief, Division of Examinations C. E. CAGLE, Assistant Chief, Division of Examinations EDWARD 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 . O. E. FOTJLK, Fiscal Agent JOSEPHINE E. LALLY, Deputy Fiscal Agent FEDERAL OPEN MARKET COMMITTEE MARRINER S. ECCLES, Chairman GEORGE L. HARRISON, Vice Chairman CHESTER C. DAVIS WILLIAM A. DAY ERNEST G. DRAPER JOHN K. M C K E E ROBERT S PARKER . RONALD RANSOM GEORGE J SCHALLER . JOHN S. SINCLAIR M. S. SZYMCZAK CHESTER MORRILL, Secretary S. R. CARPENTER, Assistant Secretary WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel FEDERAL ADVISORY COUNCIL Boston District New York District Philadelphia District THOMAS M. STEELE LEON FRASER HOWARD A. LOEB Vice President Cleveland District Richmond District Atlanta District Chicago District B. G. HUNTINGTON St. Louis District Minneapolis District Kansas City District Dallas District San Francisco District S. E. RAGLAND ROBERT M. HANES RYBURN G. CLAY EDWARD E. BROWN President JOHN CROSBY JOHN EVANS R. E. HARDING PAUL S. DICK E. A. GOLDENWEISER, Economist JOHN H. WILLIAMS, Associate Economist R. G. ROUSE, Manager of System Open Market Account APRIL 1940 WALTER LICHTENSTEIN, Secretary 375 CHAIRMEN, DEPUTY CHAIRMEN, AND SENIOR OFFICERS OF FEDERAL RESERVE BANKS Chairman and Federal Reserve Agent Federal Reserve Bank o— f Deputy Chairman President First Vice President Roy A. Young Frederic H. Curtiss... Henry S. Dennison Beardsley Ruml _. George L. Harrison Owen D. Young Boston New York William W. Paddock..... William Willett 1 Ray M. Gidney Allan Sproul Walter S. Logan Leslie R. Rounds Robert G. Rouse John H. Williams W. John Davis Frank J. Drinnen Philadelphia... Thomas B. McCabe._ Alfred H. Williams.... John S. Sinclair Cleveland RichmondAtlanta Chicago St. Louis __ Minneapolis... Kansas City_-. Dallas San Francisco.. Vice Presidents Clarence A. Mcllhenny 2 William H. Fletcher Matthew J. Fleming .. Frank J. Zurlinden George C. Brainard... Reynold E. Klages William F. Taylor 2 George H. Wagner John S. Walden, Jr John G. Fry William G.Wysor.... Hugh Leach Robert Lassiter George H. Keesee 1 William S. McLarin, Jr.. Malcolm H. Bryan Robert S. Parker. Joe Frank Porter Frank H. Neely Harry F. Conniff George J. Schaller Howard P. Preston James H. Dillard Frank J. Lewis Robert E. Wood William H. Snyder 2 Clifford S. Young Olin M. Attebery William McC. Martin.. F. Guy Hitt William T. Nardin.... Oscar G. Johnston Clarence M. Stewart 1 John N. Peyton Oliver S. Powell Ernest W. Swanson Roger B. Shepard Walter C. Coffey Harry I. Ziemer 2 George H. Hamilton Carroll A. Worthington.. James W. Helm 2 Robert B. Caldwell... John J. Thomas Harold G. Leedy Robert R. Gilbert James H. Merritt Jay Taylor Ethan B. Stroud Robert B. Coleman Walter 0. Ford 1 Ira Clerk Raymond C. Force. _. St. George Holden.. William A. Dav__ Cecil E. Earhart 1 "William T»/r TT Q I_ Richard B. West 1 Cashier. 2 Also cashier. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS 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 St. Louis: Little Rock Branch Louisville Branch Memphis Branch _ _. 376 Managing director Robert M. O'Hara Benedict J. Lazar Percy A. Brown W. Robert Milford William T. Clements Paul L. T. Beavers George S. Vardeman, Jr. Joel B. Fort, Jr. Lewis M. Clark _ Ralph H. Buss _. Arthur F. Bailey Charles A. Schacht William H. Glasgow Federal Reserve Bank o— f Minneapolis: Helena Branch Kansas City: Denver Branch Oklahoma City Branch... Omaha Branch . Dallas: El Paso Branch Houston Branch San Antonio Branch San Francisco: Los Angeles Branch Portland Branch Salt Lake City Branch Seattle Branch Managing director Robert E. Towle Joseph E. Olson Cyrus E. Daniel Lloyd H. Earhart Joseph L. Hermann William D. Gentry Miers Crump W. Norman Ambrose David L. Davis Winnie L. Partner Clarence R. Shaw Ir<>m a r<untint: on Wall of Hoard ]\oont. ICthral I\<s<rrr luiildinn. Udshin ^t