Full text of Federal Reserve Bulletin : August 1915

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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

AUGUST, 1915

WASHINGTON
GOVERNMENT PRINTING OFFICE
1915

FEDERAL RESERVE BOARD.

EX OFFICIO MEMBERS.
WILLIAM G. MCADOO,

Secretary of the Treasury,

CHARLES S. HAMLIN, Governor.

FREDERIC A. DELANO, Vice Governor.
P A U L M. WARBURG.
W. P

Chairman.

G. HARDING.

ADOLPH C. MILLER,

JOHN SKELTON WILLIAMS,




Comptroller of the Currency.

H . P A R K E R WILLIS, Secretary.

SHERMAN ALLEN, Assistant Secretary.

M". C- ELLIOTT, Counsel.

TABLE OF CONTENTS.
Page.

Work of the board
Earnings and expenditures of Federal reserve banks
The cotton situation
State bank membership in Federal reserve system
Gold settlement fund
Address by Mr. John Perrin, of the Federal Reserve Bank of San Francisco.
Address by Mr. D. C. Wills, of the Federal Reserve Bank of Cleveland
Clearance system, establishment of
Informal rulings of the board
Circular and regulations
Conference of bank examiners
Law department
General business conditions
'.
Movement of principal assets and liabilities of Federal reserve banks
Gold imports and exports
Acceptances
Paper currency outstanding
Distribution of rediscounts
Resources and liabilities of Federal reserve banks.
Federal reserve agents' accounts




-.

173

175
176
180
182
183
186
189
192
211
215
217
218
225
233
236
240
241
242
246
248

FEDERAL RESERVE BULLETIN
VOL.

AUGUST 1, 1915

1
WORK OF THE BOARD.

The work of the Federal Reserve Board during the month of July has included the following principal elements:
(1) The preparation and issue of new regulations relating to trade acceptances, designed
to facilitate the discounting of bills of exchange
drawn against sales of goods and accepted by
purchasers.
(2) The preparation and issue of complete
regulations (in conjunction with the Treasury
Department) governing the redemption and
return of worn and mutilated Federal reserve
notes.
(3) Investigation of conditions as to the
moving of crops, the holding of conferences relating thereto, and the issue of special instructions to Federal reserve agents thereon.
(4) Review of conditions relating to the
granting of trustee and executor powers, and
the establishment of a definite policy regarding
the same.
(5) Study of methods for obtaining full
information regarding the condition of member banks, for use by Federal reserve banks in
passing upon rediscount applications, and the
holding of conferences relating thereto.
Pursuant to the announcement made some
months ago, the Board has compiled a complete tabular showing of the expenses and
earnings of the Federal reserve banks from the
date of their organization to the close of business on June 30, 1915, and presents the figures
in this issue (p. 176).
Further steps have been taken toward the
organization of the New Orleans branch of the
Federal Reserve Bank of Atlanta by electing
directors and making tentative plans with respect to the undertaking of business. Three
directors have been chosen by the Federal Reserve Board, as follows:
'Mr. P. H. Saunders, of New Orleans, La.
Mr. Albert P. Bush, of Mobile, Ala.
Mr. James E. Zunts, of New Orleans, La.




No. 4

Three directors have been chosen by the
Federal Reserve Bank of Atlanta, as follows:
Mr. Sol. P. Wexler, of New Orleans, La.
Mr. John EL Fulton, of New Orleans, La.
Mr. W. J. Davis, of Jackson, Miss.
One additional director remains to be chosen
by the Federal Reserve Bank of Atlanta, and
this director will act as manager of the bank.
During the month the board has had under
very careful consideration the question of time
and conditions under which Federal reserve
banks should begin to act as fiscal agents of the
United States Government in accordance with
the provisions of the Federal reserve act.
Considerable work has been done during the
month by the committee on State banks and
the division of audit and examination in making the necessary arrangements for the admission of State banks applying for membership in
the Federal reserve system, in arranging with
State bank authorities for the supplying of the
necessary information, and in investigating the
status of the various applicants for admission.
The procedure now in force with reference to
admission is, in brief, as follows:
1. After approval by the committee on admission of State banks, a letter or telegram,
with the necessary instructions, is to be sent
to the Federal reserve agent.
2. After receipt of an application from the
Federal reserve agent, reports, digest, and
recommendation are to be submitted (a) to the
committee on admission of State banks for
approval; (6) to counsel for approval as to
legal form of application and as to the legality
of suggested conditions; (c) to.the Board for
final approval.
During the month of July members of the
Board have with its approval accepted invitations to appear before various gatherings of
bankers and to address them on questions relating to the Federal reserve system. This is
in pursuance of the policy of the Board of
keeping in touch with the various organizations and informing them of the Board's attitude as to pending problems.
175

176

AUGUST 1,1915,

FEDERAL EESEBVE BULLETIN".

EARNINGS AND EXPENDITURES OF FEDERAL RESERVE
BANKS.
Several months ago the Federal Reserve
Board authorized the publication of a comparative statement of earnings and expenses of
all Federal reserve banks for the period terminating at the close of business June 30, 1915,
the banks having been opened on November
16, 1914. It was directed that the statement
of earnings and expenses be published periodically thenceforward.
Accordingly there is herewith presented a
comparative statement of earnings and expenses for the period November 16, 1914-June
30, 1915. The classification employed was
submitted to the governors of reserve banks
at their recent meeting in Chicago, on June 14,
1915, and has since then been informally considered with other operating officers.
The statements of expenses and earnings of
the 12 Federal reserve banks, submitted by
the banks at the request of the Federal Reserve
Board as of June 30, 1915, show that the system is paying current expenses and carrying
a surplus to its organization, equipment, and
cost-of-notes accounts. The earnings of the
system from November 16, 1914, when the
banks were opened, to June 30, 1915, were
$918,588.59, or about $25,000 over current
expenses. During that period expenditures of
about $1,777,000 were incurred, but of this sum
$378,922 was for organization expenses,
$202,136 for equipment, and $302,159 was the
cost of preparing Federal reserve notes. These
expenditures should be distributed over a period
of perhaps several years of operation. Current
expenses during the seven and one-half months
were $894,117. The first order placed for
Federal reserve notes was for $250,000,000.
After consultation with the operating officers
of the Federal reserve banks a second order for
a similar amount was given, making the total
of such notes prepared 8500,000,000.
The earnings of the system during the month
of June were $163,747.07, or more than onethird greater than the average monthly earn-




ings for the seven and one-half months since
November 16, 1914, Current expenses for
June were, however, only $122,473.92, which
is less than 3 per cent in excess of the average
monthly current expenses of the banks to
June 30. These figures furnish a basis of
comparison between conditions at this time
and the average for the entire period covered
by the statements of expenses and earnings.
The statement, a complete detailed analysis
of which follows, shows average earnings for
what may be roughly termed the first one-half
year of the operation of the system of 4.3 per
cent on capital, against an average percentage
of current expenses to capital of 4.2 per cent.
The Federal Reserve Bank of Richmond reports
7.5 per cent of net earnings, by which is meant
total earnings less current expenses, and the
Federal Reserve Bank of Atlanta earnings of
6.1 per cent. The net earnings of the Federal
Reserve Bank of Dallas for the same period are
2.4 per cent. Gradual growth in the financial
strength of the banks is seen in the fact that
for June earnings in excess of current expenses
were shown by the Federal reserve banks of
Boston and San Francisco, besides the three
southern banks and the New York and Chicago
banks, which show excess of earnings over current expenses for the entire period under consideration. .
.

I. EARNINGS.

The total earnings of the Federal reserve
banks from November 16, 1914, the day the
banks were opened for business, to June 30,
1915, amounted to $918,588.59. Of this total
about 59 per cent was from notes discounted,
over 24 per cent from municipal warrants, a
little over 10 per cent from acceptances, about
6 per cent from United States bonds, and less
than 1 per cent from miscellaneous, mainly
exchange, operations.
Over 37 per cent of the total earnings are
credited to the three southern banks, the earnings of the Richmond bank being exceeded only

AUGUST 1,1915.

by those of the New York bank, whose paid-in
capital is, however, almost 25 per cent in excess
of the combined paid-in capital of the three
southern banks. In all four banks, viz, New
York, Richmond, Chicago, and Atlanta, each
report over $100,000 of total earnings for the
seven and one-half months under discussion.
These four banks, as well as Dallas, show an
excess of earnings over current expenses.
While nearly 60 per cent of the total earnings
of all the banks is derived from rediscounts of
commercial paper, this percentage is very close
to 100 in the case of the three southern banks,
and much less for the eastern banks, whose
principal earnings are from funds invested in
municipal warrants. This is particularly true
of the New York bank, whose earnings from
investments in the latter class of paper constituted over 60 per cent of its total earnings.
The Boston and Philadelphia banks report
about 50 per cent and Cleveland over 42 per
cent of all earnings from this class of business.
The western banks, including San Francisco,
show, without exception, larger earnings from
investments in United States bonds than from
investments in municipal paper, which is issued
mainly by eastern cities. Thus, the Chicago
bank reports 25.6 per cent of its total earnings
under the head of United States bonds, as
against 25.5 per cent under the head of " Warrants"; St. Louis, over 16 per cent from investments in United States bonds, as against
less than 5 per cent from warrants. Minneapolis shows relatively larger earnings from warrants, having purchased late in December of
last year a relatively large amount of shortterm notes of the State of Minnesota. As a
rule, the western banks purchase these warrants
through the eastern banks. Cleveland is the
only eastern bank to report any earnings under
the head of United States bonds. Of the
$92,000 earned from acceptances the share of
the eastern banks is over 73 per cent. Of the
western banks Chicago and San Francisco only
report substantial earnings from this class of
business, a large portion of which comes to
them through the Federal Reserve Bank of
New York.




177

FEDERAL RESERVE BULLETIN.

II.—EXPENDITURES.
A—Current expenses.

Of a total expenditure for the system of about
$1,777,000 incurred to June 30, 1915, the current expenses of the banks since November 16,
1914, constituted about 56 per cent. Over 63
per cent of the current expenses of the banks
went as compensation for personal services
and over 55 per cent as salaries to officers and
the clerical staff of the banks. This percentage, while varying from bank to bank, shows,
however, but little variation by geographic
sections, the four eastern banks, for instance,
indicating the same percentage of officers' and
clerks7 salaries as the four western banks, viz,
55 per cent as against 53 per cent shown for the
three southern, more active, banks. Over 11
per cent of the total current expenses is represented by the item "Rent/* and about 7 per
cent by the item "Printing and stationery."
The operating ratio of the banks, i. e., the per
cent relation of the total current expenses to
earnings shows a falling tendency, this ratio
being 97 per cent for the period since November 16, 1914, and less than 75 per cent for the
month of June.
B—Organization expenses.

The organization expenses of the banks consist in the first place of amounts contributed
by the banks to defray the expenses of the Federal Reserve Board, the total for the period
since November 16 being $191,921.94, These
contributions, beginning with July 1, 1915, will
be included among the current expenses of the
banks. Over $187,000 expended for local requirements by the banks prior to November 16,
1914, are also classed as organization expenses.
C—Equipment

Expenditures of a non-recurring character
made in the purchase of furniture, safes, machines, and the cost of installing fixtures, vaults,
etc., have been brought together under the
above common head. This expenditure results in the acquisition of a more permanent
form of assets which should be spread as an

17.8

FEDERAL BESERVE BULLETIN.

expense over the entire period of use, and not number of days in each of the three periods,
merely over the first fiscal year.
and the sum of the three products for each bank
was divided by 227, the number of days from
D—Cost of Federal reserve notes.
November 16, 1914, to June 30, 1915. In this
For similar reasons the cost of printing and manner a weighted average capital was obshipping the Federal reserve notes has been tained, which, it is believed, is sufficiently acset up separately and will be charged only in curate for the purpose of calculating the per
part to the first year's expenditures.
cent relations between earnings and capital
and expenses and capital. These latter perEARNINGS AND CURRENT EXPENSES RELATED
centages were obtained by using the weighted
TO AVERAGE CAPITAL.
capital of each bank as divisor, and the earnThe earnings and current expenses of the sev- ings and expenses as dividends. The quoeral banks have been related,to the average cap- tients thus obtained were multiplied by the
ital of these banks. This average was obtained fraction f-§-fby using for the periods of November 16, 1914, The following table shows the amounts of
to February 1, February 2 to May 1, and May 2 capital used for each of the three periods, the
to June 30,-the amounts of capital reported for weighted average capital, and the percentages
-each bank as at close of business on November of earnings and expenses to the capital of each
19, February 4, and May 7, respectively. These reserve bank for the period November 16,1914,
figures were multiplied by 78, 89, and 60, the to June 30, 1915:
Earnings and current expenses of the Federal reserve banks related to their average capital.
[In thousands of dollars.]
Capital reported at close of business
on Fridays.
Federal reserve banks.
Nov. 19,
1914.

Feb. 4,
1915.

May 7,
1915.

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

1,620
3,322
2,088
2,026
1,089
787
2,195
935
808
935
957
1,296

3,184
6,633
4,084
3,997
2,072
1,427
4,300
1,824
1,602
1,773
1,690
2,537

4,781
9,944
6,188
5,959
3,252
2,257
6,559
2,774
2,345
2,754
2,780

Total...

18,058

35,123

53,487




Days
Weighted
X
average
capital
[OOO's omit- capital.
ted).

Percentage
of current
earnings to
capital.

Percentage
of current
expenses
to capital.

1,446,093
897,620
871,301
464,470
323,809
947,450
401,706
346,302
395,967
391,856
560,521

3,069
6,371
3 954
3 838
2 046
1 426
4 174
1770
1525
1744
1726
2,469

Percent.
1.9
4.3
2.2
1.9
11.6
11.6
4.8
3.0
3.4
2.2
8.8
3.5

Percent.
3.2
3.2
2.7
3.1
4.1
5.5
4.2
8.4
5.3
6.5
6.4
4.7

7,743,691

34,112

4.3

4.2

Earnings and expenditures of each of the Federal reserve banks prior to and since November 16,1914, to June SO, 1915.
New York. Philadelphia.

Cleveland. Richmond

$5,989.52
12,976.66

$28,212.43
37,165.46

$14,080.37
11,602.13

$18,163.77 $146,540.14 $102,631.57
5,781.88

18,424.38
63.21

104,003.82
1,115.65

1,541.14
18,885.25
169.18

292.40
453.75

184.58

31,826.25
31,938.16
2,827.94

1,650.71
5,597.51
11.55

7,480.5G
10,643.26
75.48

6,894.68
1,056.39

37,453.80

170,497.36

26,017.71
1,480.30
53,180.71

44,541.22

147,280.29

102,816.15

124,744.54

33,474.44

32,332.59

23,338.71

95,075.11
•

5,480.00
2,250.00

338.54
2,970.00
300.00

380.00
1,610.00
1,025.00

2,2S0.00
500.00

250.00
4,575.00
1,004.10

160.00
1,620.00
500.00

2,720.00

60.00
1,915.00
1,173.75

283.60
2,110.00
551.20

39,299.89
31,936.43

21,617.76
17,869.19

18,600.16
23,541.90

16,502.87
12,764.94

13,860.07
12,163.02

31,250.02
26,821.84

34,170.83
23,439.06

17,253.31
11,852.07

2,449.09

3,644.57
980.46
950.84
365.55
700.00
478.69
438.10
2,022.64
1,488.15
5,489.56

680.44
830.50

1,216.98

2,952.18
2,447.50

957.62
758.35

2,000.24
1,725.81
1,090.00
694.81
2,660.25
1,829.90
618.03
3,781.89

1,542.98
810.83
1,550.00
195.38
220.90
2,155.35
2,243.07
3,481.25

1,389.55
1,429.63

1,309.11

128.56
295.511
1,609.61
1,700.00
4,062.52
454.78
35.54
2,270.39
27.50
1,570.40

1,478.58
I,5i6.79
780.00
7?J. 35
430.30
3,344.19
2,015.24
14,666.66
2,410.69
807.55
8,784.10
1,186.39
4,637.07

Boston.

I. Earnings, Nov. 16.1914. to Juno
30,1915:
Bills discounted;
Acceptances
InvestmentsUnited States bonds
Warrants
Sundry profits
Total

II. Current expenses, Nov. 16,1914,
to June 30,1915:
310.00
Federal advisory council (fees)..
6,377.85
Directors1 fees
600.25
Legalfeea
Salaries18,216.60
Bank officers
13,149.57
Clerical stall
Special officers and watchmen
275.00
Other
Traveling expenses1,199.02
Directors.
1,087.74
Officers and clerks
680.00
Per diem allowance of directors.
614.56
Telephone
111.86
Telegraph
847.96
Postage
Exprossaeo... . . . . . . . .
. . . . 1,653.87
7,733.35
Rent
Insurance and premiums on
821.18
fidelity bonds
485,71
Light, heat, and power
4,384.99
Printing and stationery
389.34
Repairs and alterations
3,006.36
Another

2m. so
2,175.55
926.40
1,620.00
715.50
242.45
1,250.35
700.69
26,083.30

5,492.01

2,608.49
735.72
2,720.04
678.12
1,396.82

0,087.80

m. io

999.47
382.52
1,523.86
953.72
2,139.52

74,022.28

Atlanta.

1,175.76
5,369.23

61,945.21

127,433.15

67,699.24

III. Current earnings, June, 1915... 10,121.45

19,928.84

7,820.39

8,683.33

17,240.20

9,262.38

V. Organization expenses:
Assessments for general expenses of the Federal Reserve
Board Nov. 10,1914, to June
30t1915
17,265.02
Miscellaneous expenses incurred
12,999.57
prior to Nov. 16,1914

35,434.18
30,766.13

30,265.19
...
9,455,79

7,167.35

Chicago.

$46,942.48
11,209.71

St. Louis. Minneapolis.

Kansas
City.

$24,788.02 $12,103.12 $12,464.15
1,426.65
2,030.17
2,923.49

Dallas.

San
Francisco.

Totals
for the
system.

$95,074.17 $34,685.82 $541,675.76
92,085.26
6,969.11
8,331.31
3,861.43

57,724.05
220,720.31
6,382.61

53,847.67

918,588.59

300.00
960.00
93.50

2,140.00

2,0S2.14
34,757.85
7,997.80

16,820.82
18,879.67

19,498.25
15,094.24

23,066.67
19,416.35

270,057.25
226,928.28

1,161.99
685.22

675.00
813.33

718.50
2,374.50

57.00

14,694.37
9,156.36

768.59
2,020.30
1,620.00
421.93
424.22
3,420.11
626.41
10,503.40

532.53
1,452.02
830.00
333.95
235.87
1,410.45
1,106.16
3,250.02

3,259.23
1,192.50
2,375.00
334.44
407.34
5,633.39
1,149.67
5,288.87

1,116.80
552.83
860.00
321.31
188.89
2,058.38
3,022.80
6,279.65

168.00
2,702.10
210.00
247.50
337.10
1,325. 40
2G5.75
10,550.44

16,587.91
15,818.50
13,178.10
5,260.01
5,992.84
26,907.73
16,589.84
101,170.91

1,753.90

830.37
838.50
7,256.25

4,394.27

7,301.84
122.80
945.48

2,505.17
98.58
3,508.13
506.09
779.10

8,187.26
78.24
2,115.45

1,2S6.92
1S4.35
3,017.16
3,913.39
2,112.31

20,556.11
3,568.47
62,423.60
7,755.59
32,634.30
894,117.9G

2,351.98

.94

51,663.60

48,906.31

10S, 618.45

91,9S3.84

50,649.41

71,051.16

68,214.87

71,930.44

7,640.77 | 30,207.10

16,918.30

17,G82.48

4,897.73

6,741.82

5,740.38

23,6S6.06

12,325.75

8,063.94

7,802.31

13,236.30

10,802.74 • 7,253.90

10,228.93

10,172.96

7,639.92

21,511.14

11,555.93

8,342.05

23,307.05

9,S48.55

8,557.98

9,879.48

10,163.92

13,817. OS

191,921.91

14,893.00

15.SG6.42

12,011.92

13,867.87

16,472.59

5,S54.30

13,204.70

15,60S. OS

14,556.13

20,809.41

187,001.02

66,200.31

37,131.90

37,377.56

23,507.85

22,209.92

39,779.64

15,702.85

21,762.68

25,578.46

24,720.05

34,026.49

378,922.96

0,963.99

4,20S.2S

3,702.71

1,160.99

5,479.60
4,561.14

7,037.00

3,039.61

6,762.20
370.54

5,656.50
15,105.35
1,591.25
49.00

5,324.27
15,071.41
11,184.70
14,056.28

2,381.90
115.00

932.35

3,930.75
9,382.89

9,290.30
6,900.00
0,879.68
2,478. 75

9,S17.52

552.84

4,632.44
9,532.80
3,390.77
910. 79

6,724.38

3,365.02

63,5S7.04
46,784.50
53,22S.42
38,536.77

10,008.63

20,283.63

14,252.02

18,472.80

10,799.71

4,200.00

25, COS. 73

16,950.20

22,402.10

45,636,GG

9,221.28 !

4,300.37

202,136.79

VII. Cost of Federal reserve notes... 20,297.51

09,983.44

27,798. (M

26,888.86

11,566.18

11,566.18

29,133.75

16,625.75

11,142.02

12,349.32

11,536.14 ; 17,271.32

w

.d

122,473.92

22,238.96

I

163,747.07

12,087.01

w

B

302,159.11

Total
IV. Current expenses, June, 1915....

Total
VI. Equipment:
Furniture and fixtures
Vaults
Machines
Other
Total




•

—

. ,

..

-

;

.

CO

180

AUGUST 1,1915.

FEDERAL BESEBVE BULLETIN.

THE COTTON SITUATION.

On June 30 the Federal Reserve Board, with
a view to informing itself thoroughly regarding
the situation in the cotton States and the problems to be met in moving the cotton crop this
year, appointed a special committee to investigate and report on the status. That the
Federal reserve agents might be advised of the
desire of the Board and might furnish such data
as were in their possession, Mr. W. P. G, Harding, member of the Board and chairman of the
special committee, issued the following letter to
the Federal reserve agents in the cotton region:
The Federal Reserve Board, realizing the possibility of congestion of stocks of cotton this fall
due to abnormal conditions in our export trade,
desires full information regarding the facilities
in your district for warehousing and financing
the cotton which would under ordinary conditions be exported. The Board has, therefore,
appointed a committee to study the question
and gather data on the subject. The Board
feels that in view of the large surplus reserves
now held by the banks throughout the country
there should be no difficulty, so far as the financial ability of the country is concerned, in providing for necessary advances upon that part of
the crop which will eventually be shipped
abroad. It appears from data in hand that
the demand for our domestic manufactures of
cotton goods is increasing, and it seems to the
Board's committee that there is no occasion
whatever for a depression in the price of raw
cotton such as was experienced last fall. The
committee believes that arrangements should
be made to assure producers of cotton of the
cooperation of merchants and bankers in the
proper handling of the crop.
In this connection attention is called to the
estimate by the Department of Agriculture that
the South has a warehouse capacity of 9 ; 664 r
000 bales. If proper use is made of this capacity and of the loanable resources of the
banks, including both members and nonmembers of the Federal Reserve system, a gradual
marketing of the crop will be entirely possible,
and any danger of a repetition of last year's
conditions will be averted.
The writer, as chairman of the board's committee, would be glad to have your views on
this subject, and is anxious to secure your
cooperation in formulating plans to reassure
and protect the farmers, merchants, and others
interested in our cotton-growing industry.




Subsequently a committee of the board held
a conference at the Federal Reserve Bank of
New York on July 16, which was participated
in by a number of New York bankers having
close connection with the cotton States. The
general feeling as to the prospect for the coming autumn was optimistic, the bankers taking
the view that all funds needed for crop moving
would be readily forthcoming.
Mr. Harding has analyzed the cotton crop
conditions now prevailing as compared with
those of a year ago, as follows:
In view of the apprehension manifested by
some of the southern farmers and business men
regarding the marketing of the cotton crop now
approaching maturity, it is well to make comparison between the conditions affecting the
cotton market that prevailed last August and
those existing at the present time. For the
sake of greater clearness this comparison will
be made in parallel columns.
July, 1915.

August, 1914.

The war continues, the
number of belligerents being increased by the addition of Turkey on the side of
the Teutonic allies and by
Italy on that of the Entente
powers.
Germany's and Austria's
war ships confined in the
North Sea, Baltic, and Adriatic. Their commerce-destroying cruisers in other
seas have been either destroyed or interned. German and Austrian merchant
vessels interned in various
ports throughout the world.
The sea area surrounding
the British Ieles declared a
war zone and blockaded by
German submarines. About
90 per cent of all trans-Atlantic commerce carried in
British bottoms.
Current indebtedness of
America abroad entirely
liquidated. Trade balance
in our favor for fiscal year
ended June 30 more than
$1,000,000,000. Excess of
old imports over exports
anuary 1, 1915, to June 30,
1915, $140,070,000.
Moderate corn crop and
Very large southern crop
good wheat crop in the of corn in sight, and inWest.
creased crops of other grains.
Large corn and wheat crops
in the West.
Federal reserve banks
Federal reserve banks in
not yet organized.
operation.
The shock resulting from
the sudden outbreak of war
between Great Britain, Russia, France, Servia, and
Japan on one side and Germany and Austria-Hungary
on the other created a financial crisis throughout the
world and paralyzed ocean
transportation at a time when
grain and other crops were
moving to the ports for shipment abroad. Bankers and
merchants in the XJnited
States owed England and
the Continent on current
account about $450,000,000,
Owing to lack of shipping
facilities this indebtedness
could not be liquidated in a
normal manner by exporting commodities, and. in
many cases gold settlements
were demanded, BO that the
excess of our gold exports
over imports from June 1 to
December 30,1914, amounted to $156,287,254.
Maturing grain crops in
the South insufficient for
home consumption.

f

AUGUST l, 1915.

Cotton and stock exchanges closed, and all
financial centers in fear of
an avalanche of stocks,
bonds, and mortgages returned to this country by
Europe for sale. Lack of
ability or disposition to
make loans on cotton.

FEDERAL RESERVE BULLETIN.
All exchanges doing active business in a normal
way.
Lual
Gradi absorption at advancing prices of American
securities held in Europe.
Such sales by Europe not
"
*
'
'
discouraged and perhaps
necessary as a basis for credits here for purchases of
foodstuffs, cotton, and supplies.
Money rates abnormally
low, and banks* generally
report large surplus of
loanable funds.

Interest rates throughout
the country abnormally
high, and while there was
no longer a call loan market, rates on what had been
call loans at 2 and 2£ per
cent were advanced to 6 and
8 per cent.
Textile trade fairly good.
Trade in textiles dull;
Some complaint of lack of
demand poor.
dyestuffs. Agitation for
manufacture of dyes in this
country.
General industrial depresImproved business condision, closing of mills, cur- tions; mills reopened; labor
tailment of production, and well employed.
much labor without employment.
Railroad earnings inRailroad earnings decreasing, with good proscreased rapidly.
Unusually large use of pects for the remainder of
fertilizer, and heavy bor- the year. Steel mills acrowings on cotton crop in tive. Better business in
advance of its preparation. coal and iron.
Cotton acreage 31,535,000
Cotton acreage 37,400,000
acres, which produced, in- acres. Estimates on growcluding linters, approxi- ing crop run from 11,000,000
mately 17,000,000 bales.
to 13,000;000 bales, with the
probabilities favoring the
lower figure.

Under the most adverse conditions conceivable, with demoralization in every money market, with high interest rates, with emergency
currency being issued daily in large volume,
with enormous gold shipments abroad, with
crippled shipping facilities, without adequate
insurance protection, and with ocean freights
three to five times normal, we began in August,
1914, to market a crop of nearly 17,000,000 bales
of cotton. Financial institutions, already hard
pressed and fearing all manner of unforeseen
contingencies, were unable and unwilling to
make advances on cotton. In addition to this
the southern farmers, who have this year
planted record-breaking food crops, were faced
with a deficiency in home-raised foodstuffs, and
were in many cases forced to sell cotton to pay
off pressing indebtedness and to secure adequate food supplies.
Attention is called to the fact that the high
prices for cotton now prevailing in Germany
and Russia, about 30 cents a pound, will attract cotton to those countries in spite of ap-




181

parently insurmountable obstacles, just as high
prices paid for cotton abroad during the Civil
War made blockade running a steady business.
There seems to be no question that ample funds
can be obtained to finance in a normal way a
much larger volume of cotton than was taken
care of last year, and that even if Germany and
Austria-Hungary should be forced to suspend
cotton manufacturing entirely statistics show
that the mills of the United States, Great Britain, Spain, Russia, Italy, Japan, China, and India have spindles sufficient to absorb every bale
of cotton that is likely to be cultivated.
It should be noted that the reduction in
American cotton acreage this vear amounts to
more than 5,000,000 acres, and that Egypt and
India have also made radical reductions in cotton acreage. It is probable that the world's
cotton crop, based on an average vield an acre,
will be about 5,000,000 bales less than last year.
Of course it is desirable that as broad a market as possible for cotton be established. That
it is the earnest desire of the President, born in
the South and a resident of that section in
youth, during the period of life when one's tenderest ties and most enduring friendships are
formed, to assist his native section in solving
the problems now confronting it, can not be
doubted, as the South's cotton problem is essentially national.
But it should be remembered that the President owes a higher duty to the South, to the
whole country, and to mankind at this juncture
than the establishment of cotton prices. Serious complications between this country and any
great foreign power would certainly not ennance cotton values. No man is as familiar
with the great world problems of to-day and
the relationship of this country to them as is
the President, and he may be trusted to do his
duty as he sees it, regardless of private appeals
or public clamor.
Cotton, unlike grain, is a commodity the
market value of which depreciates in time of
war, and the South as aproducer of that commodity has suffered. The actual position of
cotton, however, is so much stronger than
was the case a year ago, and financial and other
conditions are so very much more favorable,
that there can be no doubt that if the South
will keep cool and will refrain from merely
weakening its own position by unwise action,
the present nervousness regarding the market
for the growing crop will soon disappear.
Even in the face of all the adverse conditions during the last 12 months the average
price of cotton has been about what might

FEDERAL RESERVE BULLETIN.

182

have been expected for a 17,000,000-bale crop
had there been no war, and there is every reason to believe that the average price of cotton
during the next 12 months will be higher.
The real question is, Will southern merchants and southern bankers, and all others
interested in southern trade, cooperate in
securing for the cotton producers the benefit
of this average price, and will the cotton producers themselves do their part? My knowledge of southern character and of southern
business conditions justifies a confident belief
that an affirmative answer will be given.
The cotton tragedy of 1914 will be succeeded
in 1915 by nothing more serious than a drama.

State Bank Membership in Federal Reserve
System.

The following States have passed laws
expressly authorizing State banks to become
member banks:
Idaho.
Iowa.
Kentucky.
Maine.
Massachusetts,
Michigan.
Minnesota.
Mississippi.

Missouri.
Montana,
Nebraska.
New Jersey.
New York.
North Dakota.
Ohio.
Oregon,

South Carolina.
South Dakota.
Texas.
Utah.
Virginia.
Washington.

In the following States there has been no
specific legislation, but the State authorities
have ruled that State banks may subscribe for
stock in the Federal reserve bank of the district
in which they are located:
Alabama.
Arizona.
Arkansas.
California.
Delaware.
Georgia.

Illinois.

Indiana,
Kansas.
Louisiana.
Maryland,
New Mexico,1

North Carolina.
Rhode Island,3
Tennessee.
Vermont.
West Virginia.
Wisconsin.

In the following States the State authorities
have filed opinions to the effect that State
banks can not subscribe for stock in a Federal
reserve bank:
Connecticut.
1
J

Nevada,

Wyoming.

As to trust companies but not as to other banks.
Only as to trust companies and not as to State banks.




AUGUST 1,1915,

In Pennsylvania, Mr. William Hargust,
second deputy attorney general wrote, in reply
to a telegram from Secretary McAdoo, that he
was unable to state positively whether or not
State banks could subscribe for stock in a
Federal reserve bank.
The counsel for the Cleveland bank has filed
an opinion that all State banks in Pennsylvania
can probably subscribe for stock in a Federal
reserve bank though the question is not free
from doubt.
The counsel of the Federal Reserve Bank of
Philadelphia has filed an opinion to the effect
that it is probably all right as to trust companies located in Pennsylvania, but not as to
other banks.
The attorney general of Oklahoma has filed
an opinion to the effect that the laws of Oklahoma are not sufficiently clear to enable him
to determine whether or not a State bank
located in Oklahoma can subscribe for stock in a
Federal reserve bank.
The attorney general of Colorado has filed an
opinion stating that a strict interpretation of
the laws of that State would prohibit State
banks from becoming members, but that such
laws were passed prior to the passage of the
Federal reserve act and that the legislature
could not have intended to prohibit State
banks from becoming members of a Federal
reserve bank. He predicts favorable action
by the Colorado Legislature, but we have no
report that such action has been taken.
In Florida and New Hampshire the State
authorities have made no ruling one way or the
other, but the counsel of the Federal Reserve
Bank of Atlanta has filed an opinion stating
that trust companies but not State banks may
subscribe for stock in a Federal reserve bank,
and the counsel for the Federal Reserve Bank
of Boston has expressed his opinion to* the effect
that the right of trust companies located in
New Hampshire to subscribe for stock must
be determined by the charter of each individual
trust company, there being no general incorporation law for trust companies.

AUGUST 1, 1915.

GOLD SETTLEMENT FUND,
The gold settlement fund has, since the issuance of the last Bulletin, shown a notable increase in gold deposits, which have now
reached a net total of $50,300,000 (as of
July 26). The number of transfersfcbetween
the banks has also been increasing. The first
withdrawal from the fund was made on July
14, the Federal Reserve Bank of Chicago having on that date requested that S2,000,000
be paid to it through the subtreasury at Chicago. Its telegram was filed at 10.30 a. m.7
and at 2.30 p. m. of the same day the Assistant
Treasurer of the United States at Chicago advised the bank of his readiness to make the
payment requested. The transaction is an
excellent illustration of the mobility and ready
availability of the moneys held in the gold
settlement fund.
In order to meet the wishes of the Federal
reserve banks, the Board has made provision
for the inclusion of overdrafts between the
Federal reserve banks in the weekly settlement, the following letter having been sent to
all banks on July 8; and the plan has been in
operation at three weekly settlements with
satisfactory results:
" Beginning with the weekly settlement of
July 15th, you are requested to include in your
telegram of Wednesday evening the amounts of
overdrawn balances in your accounts "Due to"
other Federal Reserve Banks and also in your
accounts •"Due from77 other Federal reserve
banks. The overdrafts reported will be included in the weekly settlement, the figures
given by the bank reporting an overdraft m its
account "Due from7' being used. That is to
SSLJ, a bank which acknowledges an overdraft
in its account with another bank arising from
its having issued drafts or made transfers to
amounts m excess of the balance created by its
remittances to the second bank, will be charged
at the settlement with the amount which it acknowledges owing in its "Due from" account.
This will of course be in addition to the amount
which it now reports "Due to*7 the second
bank in the account arising from remittances
received from the latter.
/'This plan, it is thought, will frequently
eliminate the necessity of special transfers on
the books of the gold settlement fund and will
at the same time continue the present practice




183

FEDERAL RESERVE BULLETIN.

of having charges made against the account of
any bank with the fund only upon specific authorization from such bank. It is adopted as
a tentative measure. The board will be glad
to have your views or suggestions as regards
the matter.
" I t is not to be understood, however, that
the adoption of this plan is intended to do
away with transfers between banks on the
books of the gold settlement fund. Such transfers should be made whenever occasion arises
in which a transfer of this kind will facilitate
the transaction of the reserve bank7s exchange
or investment business and where the nature
of the transaction between the banks is such
that an immediate transfer of funds should be
made without waiting for the weekly settlement/7
In proposing a plan for a gold-settlement
fund such as that which is now in operation, the
Preliminary Organization Committee pointed
out, in a report of June, 1914, that, with the
establishment of a central fund and weekly
settlements, the normal clearing effected by
the interchange of ordinary business transactions would render unnecessary the transfer of
large sums of money in the payment of balances arising between Federal reserve banks.
Although it is still very early to draw conclusions as to the extent to which this clearing has been operative, it is interesting to examine the figures now available, covering 10
weeks of operations, with a view to ascertaining the extent to which it has operated and to
which balances between the different banks
have served to extinguish each other. The following table gives the total clearings at each
settlement from May 20 to July 22, inclusive,
amounting in all to $231,996,000, and the balances at these clearings ^mounting to §50,496,000.
Settlement of—

May 20
May 27
June 3 . * . .
June 10
June 17
June 24
Julvl
JulyS
July 15
July 22

1915.

1

Total
clearings.

Balances.

$43,522,000
. 19,644,000
18,985,000
25,354,000
26,458,000
IS,419,000
21,3S9,000
35,011,000
17,192,000
17,022,000

$6,382,000
5,433,000
3,901,000
4,625,000
6,450,000
2,405,000
3,342,000
12,145,000
2,783,000
3,030,000

231,996,000

50,496,000

184

ADGDST 1,1915.

FEDERAL RESERVE BULLETIN.

Thus by the process of offsetting the amounts
which each Federal reserve bank owes against
the amount which the other banks owe it, the
payment necessary to settle the obligations is
only about 21.76 per cent of the total amount
of the obligations; but the operations of the
gold-settlement fund during the past 10 weeks
show clearly that even this relatively small
transfer of funds does not have to be made in
full, as the net change in the ownership of the
moneys comprising the fund, shown in the following table, has been only $12,054,000, or
approximately 5.2 per cent of the total obligations which have been settled through the
fund.
Total net
deposits.
Boston
Ne^rYork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

Balance,
July 22,
1915.

Increase.

$3,230,000 $7,707,000 $4,477,000
15,000,000 9,651,000
3,500,000
171,000
2,630,000 4,256,000 1,626,000
2,320,000 2,812,000
492,000
260,000 1,304,000 1,044,000
5,770,000 9,329,000 3,559,000
3,220,000 1,657,000
1,000,000 1,187,000
is7,"666"
, . . 3,480,000 3,611,000
131,000
3,160,000 3,698,000
538,000
2,830,000 1,017,000
46,400,000 46,400,000 12,054,000

Decrease.

$5,349,000
3,329,000

1,563,000

1,813,000
12,054,000

Considering the relatively short time which
the fund has been in operation and during
which the process of normal clearing has been
operative, this showing is very favorable, as
for a longer period, say of a year, the percentage
of money transfer necessary to settle the total
obligations would probably be much smaller.
The experience of the past 10 weeks indicates
that a reserve bank which is a creditor at the
clearings one week may be and often is a
debtor the following week; and this suggests
the conclusion that during a period of a year,
in which the various factors affecting movements of money and exchange shall have completed a cycle, the relative change in the
ownership of the fund will be even smaller in
proportion to the total transactions, although
just how small can more accurately be determined from the experience of the coming year.
A continuation of the summary of transactions given in the last issue of the Bulletin
follows, the form having been slightly changed
in order to facilitate the inclusion of figures
for gold withdrawals and transfers between
Federal reserve banks.

Gold settlement fund—Summary of transactions June 17,1915, to July 82,1915.
Gold—
Federal Reserve Bank Balance last
statement,
of—
June 17,1915.

Boston
New York
Philadelphia
Cleveland
Richmond.. •
Atlanta
Chicago
S t Louis
Kansas City
Dallas.....'
San Francisco
Total




$3,574,000
3,599 000
1.780 000
2,695000
2,416 000
1,749 000
5,013 000
1,869 000
1,286 000
2,514 000
1,622 000
1,253,000
29,370,000

Withdrawn.

•:

Settlement of June 24,1915.

Transfers—

Deposited. From—

To—

Net
debits.

Total
debits.

Total
credits.

5200,000 , 8355,000 $2,841,000 $2,486,000
3,479,000 4,358,000
917,000 2,512,000 1,595,000
171,000
164,000
7,000
$600,000
717,000
610,000
107,000
417,000
249,000
168,000
528,000 3,982,000 3,454,000
2,928,000 3,172,000
339,000
156,000
183,666
562,000 1,198,000
305,000
951,000
166,000
26,000
570,000 $200,000
£46,666
1,170,000

200,000:

200,000

2,405,000 18,419,000 18,419,000

Net
credits.

8879,000

244,000
636,000
646,000
2,405,000

Balance in
fund after
clearing,
June 24,
1915.
$3,419,000
4,478,000
863,000
3,288,000
2,309,000
1 581,000
4,485,000
2,113,000
1,103,000
3,150,000
2,268,000
1,483,000
30,540,000

AUGUST 1, 1915.

185

FEDERAL RESERVE BULLETIN.

Gold settlement fund—Summary of transactions June 17,19151 to July ggt 1915—Continued.
Gold.
Federal Reserve
Bank of—

Balance last
statement,
June 24,1915.

Boston

53,419,000
4,478,000
863,000
3,288,000
2,309,000
1,581,000
4,485,000
2,113,000
1,103,000
3,150,000
2,268,000
1,483,000
30,540,000

Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City
San Francisco
Total

Balance,
last
statement,
July 1,
1915.

Federal Reserve
Bank of—

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

Federal Reserve
Bank of—

Balance
last statement, July
8,1915.

Total

Federal Reserve
Bank of—

Boston
New Y o r k . . . . ; ; : ; ; ; ;
Philadelphia
Cleveland
....
Richmond...
Atlanta
""*"
Chicago
St. Louis"
Minneapolis"..^

Deposited.

Balance
last statement,
July 15,
1915.

$480,000

— ..
1,300,000
Gold.
Withdrawn.

Settlement of July 1,1915.
Net debits.

480,000

480,000

From—

To—

3,342,000

21,389,000

Net
debits.

Total
debits.

$10,510,000
863,000

50,000

193,000
416,000
163,000

Transfers.

Deposited.

500,000
60,000
320,000

"$2,~666"666"

****42O,"666"
150,000

2,000,000

6,450,000

5SS.01"

San Francisco
• Total

45,340,000

500,000

Net debits.

$179,000
"1*629*666"

Deposited.

From—

1,208,000

To-

*$i,'is3*666'
$500,000
$183,000

1,060,000

1,000,000

1,560,000

1,183,000

4,000
552,000
645,000
44,000

$3,817,000
2,356,000
1,822,000
3,520,000
2,095,000
1,640,000
5,837,000
1,384,000
1,107,000
3,702,000
2,913,000
1,047,000

3,342,000

31,840,000

232,000
86,000
59,000
1,322,000

Net
credits.

$5,475,000 $2,657,000
7,508,000
4,871,000
207,000
63,000
1,215,000
264,000
361,000
11,465,000 8,131,000
2,080,000
271,000
210,000
244,000
613,000
249,000
701,000
571;000
35,011,000 12,145,000

Total
debits.

Total
credits.

"$333," 666'
575,000

2,783,000

Transfers.

Gold.Withdrawn.

'MY.'.""'.'.

1,208,000

Total
credits.

$2,478,000 $3,445,000
5,144,000 4811,000
2,026,000 1,451,000
173,000
'831,000
951,000 1,106,000
522,000
506,000
46," 000* *i,*743*666' 2,971 000 1,228,000
132,000 1,949,000 1,817,000
24,000
121,000
460,000 . 618,000
489,000
933,000
5,000
245,000

$200,000
962,000

*i5,*666,'66o*

21,389,000

$398,000

Settlement of July 15,1915.

To-

From—

$2,818,000
18,018,000
5,734,000
144,000
951,000
554,000
3,334,000
2,490,000
61,000
407f000
364,000
130,000
35,011,000

12,145,000

9,050 000

Withdrawn.

Balance U
fund after
clearing,
Net credits July 1,1915.

Settlement of July 8,1915.

$9,000,000

Gold.

Total
credits.

$2,845,000 $3,243,000
7,170,000 4,598,000
3,095,000 3,054,000
123,000
355,000
680,000
706,000
403,000
462,000
3,399,000 4,721,000
729,000 2,830,000 2,101,000
269,000
273,000
438,000
990,000
134,000
779,000
3,000
47,000

Transfers.

Deposited.

Total
debits.

$450,000 §2,572,666
41,000
30,000

$7,641,000
6 475,000
884,000
4,351,000
3,434,000
1,511,000 . .
10,271,000
1,256,000
1,235,000
3,697,000
3,756,000 ""'$566*666*
829,000




To—

300,000

3,162,000
1,618,000
40,890,000

From—

$1,000,000

. 53,817,000
. 2,356,000
. 1,822,000
3 520 000
. 2,095,000
. 1,640,000
5 837.000
. 1384,000
1 107 00n
3'702,000
. 2,913,000
. 1,047,000
31,840,000

Boston........
16,474,000
New York
!""."
846,000
Philadelphia
959,000
Cleveland
3,633,000
Richmond
2,959,000
Atlanta
1,447,000
Chicago
" 13,968,000
St. Louis
""".
968,000
Minneapolis...*"... 1,317,000
Dallas........
San Francisco.. " . . .

Withdrawn.

Transfers.

1,183,000

17,192,000

17,192,000

Net
credits.
$967,000

Total
debits.

Total
credits.

$3,256,000 $3,322,000"
3,962,000 5,955,000
2,739,000 1,526,000
604,000
699,000
772,000
1,394,000
486,000
510,000
2,146,000 1,204,000
1,254,000 1,655,000
118,000
166,000
48*666"
499,000 • 413,000
86,000
831,000
389,000
136,000
8,000

$1,213,000
95,000
622,000
24,000
942,000

3,030,000

17,022,000

17,022,000

$0,474,000
846,000
959,000
3,633,000
2,959,000
1,447,000
13,968,000
968,000
1,317,000
3,539,000
3,162,000
1,618,000
40,890,000
Balance in
fund after
clearing,
July 15,
1915.

97,000
158,000
444,000
260,000

$7,641,000
6,475,000
884,000
4,351,000
3,434,000
1,511,000
10,271,000
1,256,000
1,235,000
3,697,000
3,756,000
829,000

2,783,000

45,340,000

658,000
155,000
64,000

Settlement of July 22,1915.
Net
debits.

Balance in
fund after
clearing,
July 8,
1915.

Net
credits.
$66,000
1,993,000

Balance in
fund after
clearing,
July 22,
1015.

442,000
128,000

$7,707,000
9,651,000
171,000
4,256,000
2,812,000
1,304,000
9,329,000
1,657,000
1,187,000
3,611,000
3,698,000
1,017,000

3,030,000

46,400,000

401,000

186

FEDERAL RESERVE BANK OF SAN
FRANCISCO.
Mr, John Perrin, chairman of the board of
directors of the Federal Reserve Bank of San
Francisco, delivered the following address
before the convention of the National Association of Supervisors of State Banks, Oakland,
Cal., May 28, 1915.
A State banking department is an expression on the part
of the State that the prosperity of its commerce and indus'
try is of paramount material importance, and because o
this, that supervision should be had of banking to make
certain that banking methods will be such as to conduce
most to the development and maintenance of that prosperity. If a surer safeguarding and a broader prosperity
for that commerce and industry may be had through the
development of one great banking system, unified under
Federal control, the State's interest will obviously lie that
way.
Banking is not a separate business of itself. It is only
an incidental part of the great commercial mechanism.
Banks have no independent right of existence; their
service to commerce is the sole measure of the justification
of their being. It is therefore in the interest both of banks
and of general business that the way should be opened for
banks to render greatest service. To restrict them in the
opportunity of sendee, whether by limitation of legitimate
activity or by debarring from assured support, is to handicap commerce.
Banks are of two general classes, commercial and savings.
This discussion will refer to commercial banks, and I trust
that I may be pardoned if I ask this gathering of banking
experts to bear with me for indulging in some very elementary statements; these will be preliminary to certain
conclusions which I hope may not seem illogical.
The transactions of a retail merchant are in far larger
proportion money transactions than are those of a bank.
The peanut vendor's transactions, for instance, are onehalf peanuts and one-half money. In summing up the
total of a bank's transactions—receiving deposits, paying
checks, making loans, receiving payment of loans—it is
found that not over one-tenth are actual money transactions. In more than nine-tenths no money is used, only
promises to pay money.
One having made a deposit may say, " I have money in
the bank." That is not the fact. In the first place, very
little money is deposited. More than 90 per cent of the
funds offered for deposit are checks—promises to pay
money. In the second place, whether money or checks
are used, a deposit is simply the purchase of the right to
draw on the bank. Money or checks deposited become
the property of the bank. The depositor has no money in
the bank, but has bought the bank's promise to pay money.




AUGUST 1,

PEDEKAL RESERVE BULLETIN,

Nor does a bank lend money. The truth of this statement is easily illustrated. Suppose that .A and B are customers of the same bank, and that A owes B §1,000. A
negotiates a loan from the bank, receives 50 $20 gold pieces
as the proceeds of his loan, and cancels his debt to B by
paying this gold to him. B then redeposits these gold
pieces in the same bank. Can it be contended that the
bank has loaned the gold pieces to A? It still has his note
for $1,000 running at interest, and it also has the gold
pieces in its possession.; AVhat really has happened is that
A's promise to pay $1,000 has been shifted from B to the
bank. The money used in the transaction was simply the
instrument for transferring the credit. A check or a simple
entry on the books of the bank would have been simpler
and safer and would have served the same end.
If a bank does not lend money, what is the real nature
of a loan transaction? It is this: A borrower gives to the
bank his promise to pay money at a future date and receives in exchange the bank's promise to pay money on
demand. It is an exchange of promises to pay money.
The bank's promise is usually given in the form of a deposit
credit and the borrower thereby acquires the same right
to draw upon the bank for any part or all of the amount
as if he had bought the right to draw with a deposit of gold
or checks.
What I have sought to make clear is that a bank's business deals very little with money but to the extent of more
than 90 per cent deals with promises to pay money,
which is another way of describing credit—the wonderful
and economical device which has made large commerce
possible,
A bank keeps in money only such small percentage of
its deposit liabilities as experience demonstrates is necessary to enable it to make good its promises to pay depositors in money when they demand it. This is its money
reserve.
A BANK'S FUNCTION.

A bank's function is to gather the funds temporarily
unemployed and lend them for short periods to those who
can use them profitably. Thus, half a dozen people, each
having a temporary surplus of $100, would, through the
instrumentality of the bank, provide the grain dealer with
funds to buy a carload of wheat. By selling to the mill
the grain dealer would be enabled to repay such a temporary advance. The bank is the employment agency for
idle funds. An ideal employment agency for men would
place every man in that employment in which his efforts
would be most productive. There would be no unemployment and there would be maximum product. In like
manner that banking machinery would constitute the best
employment agency for money which would keep all
available funds uninterruptedly employed in the most
productive commerce. It seems a fair statement, then,
that the fundamental purpose of a commercial banking
system should be to bring all temporarily idle funds into
the most productive use in such a way as to most fully safeguard commerce against interruption.

DEFECT IN FORMER SYSTEM.

What has been the defect in our banking system? Of
all forms of money there is a total of nearly §4,000,000,000
in this country, including that in the United States Treasury, in the pockets of the people, and in the vaults of
banks. The deposit liabilities of banks aggregate
$18,500,000,000. Obviously, if the banks had all the
money in the country they could not pay one-quarter of
their deposits in money if all depositors made simultaneous demand. Banks actually hold only about
$1,600,000,000 of money in all forms, so as a matter of fact
banks could not pay 10 per cent in money if all depositors
should demand it at the same time. The banks have
loans, however, of $20,000,000,000. These have been
mad^ to the people, and really on behalf of the people,
being made through banks as their employment agencies
for idle funds. Frightened depositors clamoring for payment in money, which they wish to hoard, in effect demand that their neighbors, to whom $20,000,000,000 have
been loaned, shall stop the processes of production and
commercial activity. The lack of reason is clear, but
panic is a temporary paralysis of reasoning power.
In a threatening situation the law of self-preservation
has impelled each bank to try to fortify itself by adding
to its stock of money. This it would try to do by calling
for payment of loans and by withdrawing in money the
amounts due to it from other banks. Once such a process
has been started a general scramble has ensued with cumulative violence. There was no way of quickly or importantly increasing the volume of money, and the total
amount in the country could not satisfy such a demand.
The inevitable result has been that banks have ceased
making payments in money and have discontinued other
major functions until the apprehensions of depositors
subsided.
The struggle of each individual bank wa3 a perfectly
natural one. It regarded its obligations as sacred. It
would move Heaven and earth to avoid default. But no
bank could fortify itself by adding to its stock of money
except by correpondingly weakening other banks. Each
was for itself against all the rest. Cooperation was lacking.
We had no banking system, merely a vast number of individual units. The tendency to mutual destruction under
stress has been the main defect of our banking. The losses
through disruption of the processes of production and trade
by such a panic as that of 1907 would amount to billions.
Nothing has been of greater commercial importance than
to find and adopt the best method of averting such crises.
[E REMEDY.

The difficulty has not been confined to our own country,
but we have been the last of all the commercial countries
to apply the remedy. The principle of the remedy is very
simple, although not recognized until about the middle of
the last century when England and France first came to
understand it. Since then practically every commercial
2098—15
3




is1;

FEDERAL RESERVE BULLETIN.

AUGUST 1,1915.

country has incorporated in one form or another the same
principle into its banking, the Federal reserve act giving
it to this country. The remedy lies in gathering into a
central agency or agencies a portion of the money reserves
of the banks, to be used for their common protection, in
order that they may continuously perform their functions
and thus safeguard general business. Whether under governmental direction, as in some countries, or under private
direction, as in others, whether voluntary or by legal
requirement, such an agency with large money reserves
operating not primarily for profit, but for protection,
achieves the same economic result. Obviously no solvent
bank need fear any demands made for payment if it can
at any time convert its loans into means with which to pay.
The maintenance of the ability to pay eliminates depostors' apprehensions. The certainty of replenishing its
paying power eliminates the bank's fears. The cause of
panic is thus removed.
A FEDERAL RESERVE BANK.

Stripped of statutory specification a Federal reserve
bank is a cooperative agency, in which the member banks,
for common protection, pool about one-third of the money
previously held in their vaults.
If a member bank becomes inadvertently overloaned, so
that its money reserve is too low, it sells a portion of its
shortly maturing loans to this cooperative agency, the
Federal reserve bank. The member bank is thereby kept
in easy condition and enabled to render fullest service to
its community without the disastrous interruptions hitherto suffered. The payment of the loans at maturity replenishes the money of the Federal reserve bank so that
like service may be performed for other banks. If the
offering of loans for sale becomes too insistent, the Federal
reserve bank imposes a check by advancing the rates it
charges. If the demand is extraordinary in one district,
the Federal reserve banks of the other districts share the
load. In this way the varying seasonal or local loads are
distributed over the broad base of the combined reserves
of all the Federal reserve banks. The member banks are
thus linked into a real system guided by the broad general
policies of the Federal Reserve Board, which are determined not by local considerations but by a national and
international view.
FEDERAL RESERVE NOTES.

To assure greatest power to help and consequently the
greatest general stability, it is necessary for the Federal
reserve bank to avoid important drain upon its gold, which
is the final reserve money. This is accomplished by the
use of Federal reserve notes, which are in fact simply the
Federal reserve bank's promises to pay money, indorsed
by the Government. They serve every purpose of money
in ordinary trade transactions.
The mechanical operation is simple. A member bank
sells loans to the Federal reserve bank, thereby establishing a deposit credit. Against this it withdraws Federal

188

FEDERAL BESERVE BULLETIN,

reserve notes, thus receiving means to pay its debts. The
Federal reserve notes drift back anji are presented to the
Federal reserve bank for redemption through deposit or
otherwise. The means for their payment are provided by
the payment of maturing loans, which the Federal reserve
bank has bought. The process is in effect an exchange,
through the instrumentality of the Federal reserve bank,
of the promissory note of the member bank's customer
which will not pass current for Federal reserve notes which
pass current. Such a currency appears only in response
to a commercial demand—a demand upon a member bank
for payment of money. When such bank notes are presented for redemption to the Federal reserve bank, they
are paid and cease to exist just as paid checks cease to
exist. The volume of such a currency automatically adjusts itself to trade requirements, there is no redundancy,
there is no scarcity, A currency famine is inconceivable.
ECONOMY OF ELASTIC CURRENCY.

The way in which the use of such a currency protects
the gold reserve from dispersion, and introduces into
money transactions the same element of economy as the
check, may be illustrated by an extreme case: Assume
that a bank has deposits of $1,000,000 with $250,000 money
reserve. Suppose it owed one depositor $300,000 which
he had occasion to pay to another individual. If he
sought to draw $300,000 of gold to make the payment, he
would ''break " the bank, that is, though perfectly solvent,
the bank could not make good its promise to that depositor
to pay his deposit in money on demand. If, however, he
should take a cashier's check for $300,000 and the one to
whom he transferred it should return it to the issuing bank
for deposit, the transfer would not occasion the slightest
disturbance of the bank's money reserve. Federal reserve
notes are in essence cashier's checks of the Federal reserve
bank in currency denominations. They perform the
service of transferring credit in the same economical way
as does a check, without disturbing the reserve. Payments in money, hitherto, inevitably depleted the money
reserve, and such drain could not proceed far without
gravest financial disturbance.
ADVANTAGE OF UNIFIED SYSTEM.

A great tendency to uniformity of banking practice'
throughout the country would obviously result if all
banks were parts of one great system. This would be of
some incidental convenience, but is not vital. The
fundamentally important reason for unification is that the
larger the proportion of banking reserves centralized in a
reserve agency the higher the ratio of potential fortification of business to its total volume.
Only through the issue of Federal reserve notes can
there be any speedy or important increase in the total
volume of our currency, which must meet the requirements for the use of all banks, State and National, and the
requirements for the use of all the people. In a crisis,
when a vast volume of payments in money is required, the




AUGUST l,

1015,

amount of notes available for issue will be exactly in proportion to the amount of the gold reserve of the Federal
reserve banks. To illustrate: $400,000,000 gold constitutes the required 40 per cent reserve against $1,000,000,000
Federal reserve notes; $800,000,000 would provide a like
proportion of reserve against $2,000,000,000 Federal reserve
notes. Clearly, to link all banks into one system, thereby
increasing correspondingly the gold reserve centralized in
the reserve-holding and note-issuing agency, would add to
the security of all banks, and, what is more vital, would
give proportionately greater insurance to the stability of
the entire business activities of the whole people. If
every citizen were trained as a soldier, the potential
defense would be the entire physical force of a nation. If
only one-fourth of the citizens were so trained, they might
fight with equal valor, but the power of defense would be
only one-fourth.
Some have contended that crises could be averted by
increasing the requirement of money reserves. For individual banks to have gold reserves in large enough
proportion to be always adequate for all demands would
result in a tremendous restriction of commerce through
the necessary reduction in loans. But we have found to
our sorrow that only slight inadequacy of reserves has
involved incredible disaster. In the hands of an individual bank gold will pay debts only to its par value.
Experience, however, has demonstrated the fact that the
credit of a great, strong reserve-holding agency will pass
current instead of money, so that one dollar of gold in
possession of a Federal reserve bank is a basis for providing
a member bank with means of settling two and a half
dollars of debt. In this lies the extraordinary power
which a Federal reserve bank has for fortifying its member
banks. It might be said that as the mythical Antaeus
renewed his strength by touching Mother Earth, so a
member bank renews its strength by "touching" the
Federal reserve bank.
Under our past banking methods money in vault and
balances with other banks have constituted the banking
reserves. Under the Federal reserve system the chief
reserves of member banks will be the rediscountable paper in their portfolios, and the day will doubtless come
when, as in other countries, the law will not specify any
stated proportion of money reserves. Nonmember State
banks can not safely operate thus, since they would have
no unfailing place of rediscount, the Federal reserve
banks not being open to them even through the medium
of correspondent member banks. No reserve agency but
one under Federal authority would have conferred upon
it this magic power of converting one dollar of gold into
means of paying two and a half dollars of debt. The
opportunity for financial life insurance through the fortification by a Federal reserve bank and the selfish desire
for profit, which is the one constant factor in all business,
will be potent influences to induce State banks to become
members of the Federal reserve system. As the importance and bearing of these factors become fully under-

AUGUST 1,1915.

FEDEEAL RESEBVE BULLETIN.

stood, it seems reasonable to expect that a steadily increasing proportion of State banks will become constituent
parts of a system which will steadily grow in strength and
unification, its members exercising all functions incident
to banking; and it seems also true that State banks will
ultimately be influenced to such participation both by
State authority and by public opinion as it becomes more
and more fully realized that the security and prosperity
of the State's commerce will be thereby best attained.
It was a wonderful achievement to enact the Federal
reserve act. Legislation under our form of government is
necessarily a series of compromises. It is no ground for
disapproval of the act that certain features have not been
as carefully worked out as in the laws of some States. If
true, that fact offers a great opportunity for perfecting aid
from those skilled through State experience. The point
of paramount importance is that the Federal reserve act
has incorporated into our banking the fundamentally vital
principles of centralized reserves and credit currency.
Benefits will inure incidentally to banks, but in largest
sense will flow to general business in every State through
the new and broader opportunities and through the added
security. There is no proper ground for contention between State banking departments and the Federal reserve
system. The fundamental purpose of both is to attain
the greatest security and prosperity of industry and
commerce.

THE WORK OF FEDERAL RESERVE
BANKS.

Mr. D. Ct Wills, chairman of the board, Federal Reserve Bank of Cleveland, delivered the
following address on June 2, 1915, at Lexington, Ky.:
The officers and directors of the Federal Eeserve Bank
of Cleveland have been more than pleased with the cooperation received from the member banks in this district.
In such a departure from the plan and methods under
which we have been accustomed to operate, there was
bound to be some hesitation and inquiry. The banking
business itself develops, in those who are charged with its
management, a tendency not to accept new propositions
at their face value. This is proper. One of l i e strongest
recommendations in determining credit is that a business
has been established and in existence for a considerable
length of time. In other words, it is a point in favor of any
business or proposition if it has been in existence long
enough to prove its worth.
In view of this necessary attitude of bankers in their
daily dealings with their customers, it is surprising that
there has been so little antagonism or apathy toward the
new Federal reserve bank system. However, the Federal
reserve bank act, while new in America, represents in its
fundamentals the experience of the ages applied to the
needs of this country, and its principles generally are those
of scientific banking. The act is not perfect, but it has




189

been estimated by economists and practical bankers to be
from 75 to 90 per cent good. That being the case, it deserves a thorough trial by those whom it was intended to
benefit.
Our attitude toward any proposition is usually measured
by our understanding and interest. To understand a matter involves information, which information must be
accurate and complete, else there is misunderstanding.
Our interest has more sides to it, and may be selfish and
shortsighted. In deciding- how much we are interested
or where our real interest lies, we may be mistaken and
narrow. Even with all the information at hand, we may
not recognize our true course; blessings and benefits frequently wear a disguise.
These observations are made to introduce a discussion
to-day of the Federal reserve system with special reference
to its operation in district No. 4. Some bankers are concluding that the new system is inadequate and not applicable to conditions in this country, and especially not useful or beneficial to the particular banker offering the objection. This criticism of the system is made, to some extent
at least, in the home of its friends, or those who should be
its friends. Those of us who have to do with the management of this bank realize that this criticism is sincere and
honest. We appreciate it is not wanton. Yet, we are
just as sure that it is bound to disappear when the understanding is increased, and when it is shown that the new
system is for the better interests of the banker as well as
the business man.
Now, what is the purpose of the Federal reserve act?,
It contemplates in the membership of the Federal reserve
banks all the well-managed banks in the United States
doing a commercial business. It was not intended as a
haven for a bank with the bulk of its deposits payable on
demand and the bulk of its assets-in permanent loans.
Nor was it intended to furnish facilities to a bank whose
owners and managers were using the capital, as well as the
amount intrusted to them by depositors, in the flotation
of speculative enterprises, in which the owners and man-,
agers are personally interested. It was not intended to
place its stamp of approval on banking methods that would
include the making of loans to borrowers without obtaining
accurate and complete information on the financial condition of* those borrowers, or the continuous renewal of the
paper of a large number of borrowers from year to year,
without even attempting to ob'tain an occasional payment
and to insure the solvency of these borrowers and test their
ability and willingness to pay.
Several stated objections to the system have come to our
notice, and the ones most frequently urged appear to be aB
follows:
1. Keserve balances now compulsory at the Federal
reserve bank from its members do not bear interest, entailing a loss to member banks of revenue previously received.
2. The law and regulations are such that banks, especially country banks and institutions in small towns, have
no eligible paper.

190

FEDERAL RESERVE BULLETIN.

3. The intention to have member banks collect items
on themselves at par deprives these banks of an exchange
income previously received without offsetting advantage.
4. The requirement that member banks obtain in writing
statements from all their important borrowers is a hardship
which may entail the loss of trade, and while practicable
in larger centers can not be followed in the smaller centers.
Answering objection No. 1, as to interest on reserve de-

posits.—The reduction of reserves from 25 per cent to 15
per cent in reserve cities, and from 15 per cent to 12 per
cent in other communities, means that the additional
loanable funds will produce a revenue equal to, if not
exceeding the amount of interest previously received on
reserve balances with correspondents. This calculation is
based on the total amount of reserve balance required to
be carried in the Federal reserve bank at the end of the
three-year period. For instance, at the end of three years
a bank with $100,000 on deposit will carry with this bank
$5,000; 2£ per cent on this amount is $125. The reduction
in reserve—3 per cent on $100,000—is $3,000; the interest
on §2,000 at 5 per cent is $150.
The absolute ability to obtain currency in any emergency enables a bank under the new system to operate
safely without excess reserve. Heretofore, banks realizing
that in a crisis they might have to depend on their own
resources, carried excess reserve.
It should be noted that the 5 per cent reserve requirement for savings and time deposits is an additional profitproducing feature of the new act intended to benefit
. especially the banker in the smaller community.
The May circular issued by the National City Bank of
New York contains the following interesting paragraph on
the payment of interest on balances by a central reserve
institution:
*' There is no dissent the world over, in scientific opinion,
from the conclusion that a central institution which carries
the final reserves of the country, and upon which the banking system as a whole relies for ready cash, should not pay
. interest on deposits. The reason is that the payment of
interest compels a bank to actively employ a larger proportion of its resources than is advisable under such responsibilities. On the other hand, the maintenance of large
reserves by a central institution, together with the power
of note issue, enables the member banks to carry smaller
reserves than otherwise would be safe, so that they actually
lose nothing in earning power by supporting a central institution."
Answering objection No, 2, as to eligible paper.—Under

date of March 31,1915, the Federal Reserve Bank of Cleveland sent to its members the following letter:
"Through correspondence and interviews, I have become convinced that a considerable number of bankers are
still under the impression that the only kind of paper
eligible for rediscount at the Federal reserve bank, is what
is known as 'business paper' given by a buyer to a seller
"In order that you may not be under any misapprehension, I wish to assure you that the following kinds of notes




AUGUST l,

1915.

are eligible if conforming to the credit requirements of the
Federal Reserve Board, provided the purpose of the loans
is not permanent or speculative:
'(1) Single name paper of your own customers, who
may be tradesmen, manufacturers, jobbers, storekeepers,
etc,
"(2) Single name paper of your farmer depositors.
"(3) Paper similar to above, but containing one or more
accommodation indorsements as additional security,
"(4) Commercial paper as sold by note brokers,
"(5) Business notes given by a buyer to a seller in settlement of a commercial'operation.
'(6) Accepted drafts drawn on a consignee by a shipper
of merchandise.
!<
(7) Notes secured by warehouse receipts for staple
agricultural products or other goods, wares, or merchandise.
"We can also purchase with the indorsement of member
banks: (a) Bankers' acceptances based on the importation or exportation of goods, and (6) warrants of cities,
towns, and communities, when conforming with Circular
No. 7 of the Federal Reserve Board."
This letter, in our opinion, states in a concrete way what
is possible under the broad interpretation of the act by the
Federal Reserve Board. Surely any well-managed bank
ought to have sufficient eligible paper under one or all of
these holdings to avail itself of the rediscounting facilities
of the Federal reserve bank. A number of ways suggest
themselves for gradually increasing the amount of eligible
paper; for instance, if a part of a borrower's loan is to pay
for a permanent investment and part for a commercial,
industrial, or agricultural current operation, the obligation
can be divided into two notes. Borrowers whose asseta
are real estate, who have been carrying their loans for a
long period without payment, and who can liquidate their
obligations only through the sale of their real estate can
be induced and requested to place a lien on the property
and pay off the obligation. While primarily renewals are
not recognized as strictly commercial paper, yet, under the
ruling of the Board, a note is prima facie a commercial one
if the quick assets of the borrower show a sufficient margin
over his current liabilities; and in such case a renewal is
acceptable, since there are commercial and industrial
transactions that require a longer period than ninety days
to finish the operation, and under certain conditions six
months might not be long enough for a farmer to raise and
market a crop orfinishthe feeding, fattening, and disposing
of his live stock. Why the law insists on liquid paper and
that loans must have a definite maturity was illustrated a
short time ago in our district. It was discovered that the
managing officer of a member bank had victimized his
bank almost to the extent of wiping out its entire surplus.
The information became public, and a run started. When
an attempt was made to realize or collect on a portion of
the bank's assets it was found that 40 per cent of the loans
were drawn on demand and have been carried continuously
without asking for payments except aa borrowers offered to
pay, that time notes were nearly all drawn for long periods,

AUGUST 1,1915.

FEDERAL KESERYE BULLETIN.

and that the paper of early maturities was inconsiderable.
It was found, too, that not a single record was kept of the
responsibility of the borrowers, the information being
solely in the hands of the cashier who had gone wrong.
The directors, when questioned as to the responsibility of
certain debtors, did not agree on the worth of any single
man and often did not know which Jones it was that drew
the note. The ability of that bank to cope with the emergency and protect the interests of its depositors and shareholders was at a minimum, and I am sure that banks in
that neighborhood will not hereafter require much explanation as to the necessity of having realizable assets to meet
liabilities that are subject to demand and payment at any
time.

191

compensate for the loss of exchange on par checks. One
of the Federal reserve banks has already announced to Us
members that it has employed at its expense a committee
of experts for the purpose of inquiring into and analyzing
the statements and methods of a number of typical banks
for the purpose of ascertaining whether the revenues or
profits may be increased and the expenses and cost diminished. The results of this investigation will probably be
available to member banks throughout the whole system.
If not, the Federal Reserve Bank of Cleveland will, I
think, make a similar investigation for the benefit of its
own members.
Answering objection No. 4t as to statements of borrow-

ers.—I think it is the experience of every banker that his
Answering objection No. 3, as to check collection and customers and depositors often cooperate with him to a
exchange charges.—The immediate effect of a bank's col-larger extent than he estimated. I do not believe any
lecting at par checks drawn on itself is a loss of exchange. borrower who is entitled to credit will refrain from placI am confident, however, that the country bank's portion ing in the hands of his banker information in order that
of the benefits to be derived from a universal doing away the banker may determine the borrower's right to credit.
with exchange and the collection of checks at cost will The following paragraph is from a recent folder of the
more than offset this apparent immediate disadvantage. Credit Men's Association:
Having a check on Dry Ridge pass current in district No. 4,
"Good credit in the markets of the world enables the
the same as a check on Cincinnati, Cleveland, or Pitts- merchant to add to his ability to do business. It gives
burgh, will insure at least that no funds will be transferred him the use of enlarged capital, thus enabling him to carry
out of the community to par centers, and concerns or a more complete stock, increase his sales, and magnify hia
individuals that have been accustomed to intrust the profits. A merchant's capital is the sum of his net available
smaller and unprofitable portion of their business to the resources plus his credit. The giver of credit is a contribulocal bank and their larger and more remunerative trade tor of capital and becomes, in a certain sense, a partner of
to a bank in a center in order to have their checks pass at the debtor and as such has a perfect right to .complete
par may conclude to do the bulk of their business with information of the debtor's condition at all times.
local institutions.
"Credit is given a merchant because of the confidence
Checks now settle 95 per cent of all obligations in this reposed in him. Requesting information when credit fe
country; but in developing its use as rapidly as we have— asked is not a reflection on one's character, honesty, or
far more rapidly and extensively than in any other coun- business ability but is done to secure information to enable
try—many difficulties have been encountered, and many business to be conducted intelligently.
evils and bad practices have arisen. Mr. McKay, perhaps
"A merchant who desires to serve his own best mterests
the foremost practical authority on this subject, sum- shoUld recognize that his most valuable possession apart from
marized these evils as follows at the recent conference of his actual assets, is a sound, substantial, and unquestioned
reputation as a credit risk, and that, under the prevailing
reserve city bankers:
conditions and demands of business, the most effective
"First. Excessive exchange charges.
"Second. Absorption of exchange charges by the col- and eminently the best way to prove his basis for credit is
to be willing to submit a statement of his financial
lecting banks.
"Third. Indirect routing of checks to avoid exchange condition."
In an interview with the president of an Ohio bank, most
charges, chiefly caused by clearing-house rules governing
of whose business is with farmers, we were informed a few
exchange charges.
"Fourth. The maintenance of reserve balances with days ago that he had encountered very little difficulty in
banks for the sole purpose of getting items on which to obtaining written statements from those who were parties
to his loans. He stated that when the regulations of the
charge exchange.
"Fifth. The carrying of compensating balances with Federal Reserve Board came out he recognized that they
collecting banks solely for the purpose of obtaining par were not only sound but workable and immediately began
t he education of his borrowers by requesting them to
territory.
furnish him with statements. He had received over 100
"Sixth. Paying interest on uncollected funds.
statements, practically all of which confirmed his esti"Seventh. Paying checks drawn against uncollected
mate of the worth of the borrowers. In one or two
unds.
instances, however, he was surprised to find unrecorded
"Eighth. Padding of reserves with items in transit."
mortgn£?s and borrowings in neighboring banks, of which
The Federal reserve bank, too, will probably offer
he ktr;w nothing. The probable saving of loss in these
another service to its member banks, which ought to




192

FEDERAL RESERVE BULLETIN.

instances justified him, in his opinion, in obtaining the
statements. He also noted with satisfaction the cooperation given by the borrowers themselves, many of whom for
the first time had made an accurate schedule of their
assets and liabilities; in all cases he furnished a^opy of the
statement to them and requested that it be kept and used
again by the borrowers for comparison when they filed
another statement at the next period. It eeems hardly
possible that the experience of this banker in a farming
district is any different than the experience will be of any
banker who will sincerely and intelligently test this
requirement.
While there is only part of the State of Kentucky belonging to district No. 4, and while the amount of the
capital owned and reserve deposits received from these
banks is relatively small compared with the States of Ohio
and Pennsylvania, yet, according to our estimate of the
situation, the Federal Reserve Bank of Cleveland ought
to be particularly helpful to the banks of northern Kentucky. Our attention has been drawn to this district for
a number of reasons. It is farthest away from the location
of the bank, and has problems and difficulties that differ
from those of the northern banks. Kentucky, too, is well
represented on our board of directors in the persons of
Senator Combs and Mr. Patrick, and I have never yet seen
a man from Kentucky who did not seek the advancement
of his State and call attention to its virtues and possibilities. Our Kentucky directors are no exception. The
State of Kentucky owns 18 per cent of the capital stock of
this bank and is represented in 3 per cent of its deposits,
while of the $700,000 loaned to member banks, $315,000 is
loaned to banks in Kentucky. This indicates the willingness of the Federal Reserve Bank of Cleveland to furnish
facilities for the special condition existing at this time in
this part of the district.
In order that the system may be as fully a success as the
framers of the act intended, and in order to mobilize gold
reserves of sufficient size to protect the credit of this country
against any emergency, it is essential that State banks
become members. The regulations of the Federal Reserve
Board on tho admission of State banks will shortly be
issued. I have seen the tentative circular, and the requirements are going to be so liberal that every bank should
give the matter prompt consideration; in my opinion the
way has been opened for all well-managed commercial
State banks to join. The great benefits to be derived by
all banks from having the majority of the banks of the country in the system justify the liberal terms to be offered the
State banks. Their joining will be hastened by a work of
indorsement from the banks already in the system.




AUGUST 1,1915.

ESTABLISHMENT OF INTRADISTRICT
CLEARANCE SYSTEM.

On July 9 the Federal Reserve Board transmitted to the Federal reserve banks the following letter of inquiry regarding the status of
the intradistrict clearance system, already
established by the several banks, as set forth
in the Federal Reserve Bulletin for May, 1915
(pp. 6-9):
The Federal Reserve Board desires to prepare for the August 1 Bulletin a brief statement of the progress which has been made
under the voluntary clearing plan in the various districts, so as to show, say, as of July 16
ta 20, the situation in the various districts. In
order to assist us in formulating data, we shall
be glad if you will respond to the following
questions:
1. Number of banks which have come in,
2. Percentage of capital in your bank repre,sented by the assenting banks.
3. What is the average number of items
cleared daily ?
4. What do you estimate cost directly
chargeable to this work ?
5. Percentage of clearing banks showing
overdrafts (exhaustion of balances).
6. Number of men employed in your transit
department.
7. How is the voluntary plan working, in
your estimation %
8. Wu%it be necessary or desirable that the
board issue a mandatory order before the work
can be successfully carried through ?
9. Is the clearing of checks accepted as a
valuable service by your members, or is there
still much opposition to it ?
10. Is it gaining in friends ?
The answers to the first six questions contained in the list are susceptible of tabulation,
and the substance of them is set forth as
follows:

AUGUST 1,1015.

193

FEDERAL RESEHVE BULLETIN.

Questions sent to and answers receivedfrom each Federal reserve bank regarding the working of the intradistrict clearance system.
Question.

Boston.

1. What number of
banks have come

New York.

4,976

cleared daily?
4. What do you esti- 2 clerks whose sal- About 59,100, based
mate cost directly aries aggregate upon an estichargeable to this Sl,500p.a. This mated daily cost
of $25.30. This
is exclusive of
work?
printing, station- estimate includes
ery, machines, only salaries of
and overhead ex- clerks working directly upon colpense.
lections, a l s o
postage and stationery, but is
exclusive of the
cost of superintendence, rent, or
other overhead
charges.
•5 ^ V*hat TDercentaco of
195
clearing banks show
overdrafts?
c
G Givo numb or of men o
employed in your
transit d e p a r t ment.
. • .;

1 "Whiit

S9

71.

55

17 45

44.3.

1,713

3,070

About 195.*

4,9771

,

Salaries, S5,SS0 p .
a.;postage,Sl,950
p . a.; total, ?7,S30

p. a., exclusive of
stationery, the
cost of machines,
and of erecting
and equipping
special gallery to
accommodate department. ,

7.2

Estimated yearly
direct cost

Salaries, ?2,SS0 p . Estimated
total
including
a.; postage, S900 cost,
p. a.; stationery, salaries, postage,
postage per day, $300 p. a.; total, and percentage of
84,0$0 p . a., ex- rent, light, etc.,
S4.43.
clusis*e of book- Sl,200p.a.
keeping and overhead charges.
35,815.38; averago

83

0.5

1 bank.*

6 men exclusively, 4, and occasional 4
with some assist- services of 3 othance from filing ers.
department and
ofiice boys.
Kansas City.

Minneapolis.

Two-thirds of time
of i man.

Dallas.

San Francisco.

366

1

'

106..!

951

93

110.

90

TinTnbcr of

banks have come
in?
'2 What nercMitape of
capital in the Federal reserve bank
is represented by
the a s s e n t i n g
banks?
3. What is the average.
number of items
cleared daily?

120

St. Louis.

Chicago.

. Question.

Atlanta.

46.7

in?

2. What percentage of 27...
capital in the Federal reserve bank
is represented by
the a s s e n t i n g
banks?
3. What is the average 1,200

Richmond.

Cleveland.

125

115

50

Philadelphia.

44

100

31

40.

•

1.156, including No data.*
items on Dallas
passed through
the Dallas clear•
ing-house e x changes.
cost 32,256 p . a., viz: No data. 6
Estimated cost Salary of transit Estimated
$24,000 p . a., inSalary manager
515,000 p. a., ex- man, 32,000 p. a.,
clusive of admin- who also has cluding pro-rata transit departistration expense. charge of the rent, postage, de- m e n t , Sl,500;
clerk, 3600; stamail. Estimate preciation, etc.
tionery, 372 (estidoes not include
mated) ; excess
cost of printing,
postage, SS4.,
stationery, etc.

cost
4. What do vou esti- Estimated
mate cost directly $30,000 p. a., estichargeable lo this mated on the
basis of § cent per
work?
item for Chicago
banks, 1 cent per
item for suburban banks, and
1§ cents per item
for out of town
banks.
4g«
v. vviuib percentage oi
clearing
banks
show overdrafts?
6. Give number of men 7 regularly and 4 14
employed in your extra about 2
transit
depart- hours each afterment.
noon.




5,714

About 3

No data. 5

1 overdraft

2

1; see answer to
question 4.

11; some perform- 2 men; see also No data.*
ing duties out- answer to quesside the transit tion 4. .
department.

i High, 6,517 on July 7; low, 2,735 on June 15.
* All outside of Atlanta.
a On a basis of 7 days' operations.
* Covered by New York exchange.
* System to commence operations Aug. 1.
* On a basis of 4 days' operations.

194

FEDERAL RESERVE BULLETIN.

Not all the banks have submitted full responses to questions 7, S, 9, and 10, and some
while replying to these questions, have not
furnished a definite expression of opinion.
The substance of the answers can, however,
be briefly stated. On the question of a
mandatory system as opposed to a nonmandatory, reports show that 11 districts now
have nonmandatory, and one a mandatory
system of check collections. Of those districts
whose S3Tstem is not now mandatory, three
distinctly state that they believe the introduction of a mandatory system would be
undesirable; while seven express themselves,
in some cases with more or less qualification,
in favor of the introduction of a mandatory
system, most of the banks regarding this as
necessary if the plan is to become fully effective.
Among the expressions on this subject are
the following, each paragraph being the expression of one bank:
" I t will certainly be necessary for the Board
to issue a mandatory order before even the
present plan would be of sufficient scope to
reach a moderate point of efficiemrf. Many
of the banks have indicated to us that they
would not come in unless compelled to do
so, and would not accept the mandatory
order kindly by reason of the great loss of
exchange/'
"We think it will be necessary" (i. e., for the
Board to issue a mandatory order before the
work can be successfully carried through)
"before all the banks join the system, but
working along the present plan, I believe
that we can in time secure at least 50 per cent
of them,"
t "* * * it would seem that, if the system
is to be a success, the Board will have to issue
a mandatory order requiring all member
banks to clear through the Federal reserve
banks of their respective districts. It will be
impossible for Federal reserve banks to enter
into relations with each other for the clearing
of checks on their respective members untu
all the members of oacn district are members
of the clearing system of that particular
. district."
a* * * t | 10 v o ) u n tary collection system
should bo given about six months more to
operate before deciding as to whether it is
successful or not. Banks which have joined
it are now advertising the fact that checks on




ACGUST 1, 1915.

them are par in —. We believe this action
will oblige other banks to join the collection
system, and that economic pressure will come
from depositors of the banks and from the
merchants who now have to pay exchange
charges which will influence more banks to
assent to the collection system."
"A great many banks have written us that
under no circumstances would they join the
system until it is made compulsory, and all
banks come in at the same time. It would
appear, therefore, that it will be necessary
that the Board issue a mandatory order
before the work could be carried through
successfully."
" I feel that only in the presence of a mandatory regulation will we be able successfully to
give effect to the plan."
" I t may be necessary, and, in my opinion,
will likely be desirable, that the Board make the
plan compulsory before success is assured."
"We believe that it will be necessary that the
Board issue a mandatory order compelling
banks to join the check-collection system in
order that the member banks may realize the
full benefit of the arrangement. Member
banks generally expected to be compelled to
join the check-collection system, and when the
voluntary plan was offered a large majority
preferred to defer joining until they could
observe the effects of the operation of the plan
with such banks as decided to join. We believe that if the plan were made mandatory it
would in a reasonable time commend itself to
our member banks, but for the present the fear
of the necessity of maintaining excess balances,
on which no interest is allowed, and the disinclination -to relinquish exchange profits deters
many country banks from entering the voluntary system."
.
"We have been, and are, of the decided opinion that the Federal Reserve Board should issue
a mandatory order compelling all member banks
in each district to become clearing members,
thus extending the facilities for the clearance
of checks to the entire field of industrial and
commercial activities, as we believe was contemplated by the Congress in the enactment of
the Federal reserve act."
The following is a list of the various member
banks which have joined the intradistrict
clearance system. The system did not take
effect at the same date in all districts, and it
has not been practicable to correct the lists up
to the same date for all. All banks included
in the several districts up to July 1, 1915, are,

AUGUST 1, 1915.

however, listed below, while in some districts
additional banks have joined the system, notwithstanding that their names do not appear
in the attached list, and a very few of those
listed may have withdrawn. The several States
in each district have been arranged alphabetically, and the cities in which the clearing
banks are located have then been alphabetically grouped. Where more than one bank in
a given city or town is a member of the system,
such banks are then grouped alphabetically.
The latest returns show that the clearing system
comprises a total of 2,373 banks, taking all
districts as an aggregate*
List of member tanks which have joined ike collection system
of the Federal reserve banks.
DISTRICT No. 1.
Name of bank.

City or town.

Transit
number.

CONNECTICUT.

First Bridgeport National....
Clinton National
Danbury National
Greenwich National
First National
do

51-32
51-270
51-125
51-146
51-9
51-235

First National

52-168

First National

Bridgeport
Clinton
Danbury
Greenwich
New Haven
Suffield

53-284
5-32
5-56
5-39
5-12
5-13
5-2
5-3
5-107

MAINE.

Boothbay Harbor
MASSACHUSETTS.

Attleboro
Boston
Do
Do
Do
Do
Do
Do
Do

Commercial National
First National
... Fourth-Atlantic National
Merchants National
National Union National
Old Boston National
Peoples National Bank -of
Roxbury.
Second National
Wobster & Atlas National....
Broadway National
Cape Ann National
First National
Hudson National
Park National
Hopkinton National
Manufactures National
First National
Peoples National
Millbury National
Mechanics National
Merchants National
Northborough National
Norwood National
Plymouth National
---•
Mount Wollaston National...
Chicopee National
Springfield National
Ware National
•-.-•.Hampden National
Merchants National
Worcester National

Do
Do
Chelsea
Gloucester
Haverhill
Hudson
Holyoke
Hopkinton
Do
MOlbury....
New Bedford
Newburyport
Northborough
Norwood
Plymouth

""

^ Do
Ware
Westfield
Worcester
Do

5-17
5-25
53-222
53-254
53-167
53-451
53-141
53-548
53-86
53-324
53-323
53-520
53-69
53-311
53-584
53-587
53-361
53-214
53-95
53-104
53-405
53-288
53-4
53-1

NEW HAMPSHIRE.

Claremont
Manchester
Do
Portsmouth

195

FEDERAL RESERVE BULLETIN.

Claremont National
Amoskeag National
Merchants National
First National

I
r

2098—15




4

54-73
54-6
54-3
54-47

List of member banks that have joined the collection system
of the Federal reserve banks—Continued.
DISTRICT No. 1.—Continued.
City or town.

Name of bank.

Transit
number.

RHODE ISLAND.

Providence

National Exchange.

57-2

VERMONT.

Bellows Falls
Montpelier
North BonnLngton.
St. Johnsbury
Windsor

National Bank of Bellows
Falls.
First National
..do.
Merchants National.
State National

58-60
58-43
58-113
58-38
58-84

DISTRICT No. 2.
NEW JEESET.

Allentown
Arlington
BernardsviUe....
Blairs town
Bound Brook....
Clinton
Edgewater
EngHshtown
Flemington
Freehold
Carfield
Hackensack
Hoboken
Do
Hope
Lvndhurst
Manasquan
Matawan
Newark
Do
Lo
New Brunswick..
Orange
Paterson
Do
Do
Plainfield
Do
RidgefieldPark..
Ridgewood
Somerville
Do
Tenafly
Westfield
West Orange..

Farmers National
,
The First National
Bernarclsvillc National
First National
Bound Brook National,
Clinton National
First National
do
Flemington National
The National Freehold Banking Co.
First National
Peoples National
First National
Second National
First National
..do.
Manasqtian National
Farmers & Merchants National
Manufacturers National
National Newark Banking Co.
National State
National Bank of New Jersey.
Second National
First National
Paterson National
Second National
City National
The First National
First National
.do.
do
Secorfd National
First National
The National Bank of Westfield.
First National

55-367
55-368
55-374
55-365
55-335
55-363
55-351
55-302
55-350

First National
National Commercial
New York State National
First National
.do.
Gramatan National
First National
Greenpoint National
Nassau National
National City
Peoples National.
Central National
Marine National
Third National
Cazenovia National
Dundee National
Second National
Merchants National
National Bank of Far Rocka*
way.
First National
National Bank oi Glens Falls..
Washington County National,
First National

29-8
29-7
20-1
50-135
50-903
50-668
1-356
1-3S9
1-118
1-352
1-585
10-24
10-2
10-6
50-685
50-607
50-108
50-110
1-436

55-340
55-395
55-216
55-108
55-110
55-159
55-469
55-411
55-412
55-8
55-1
55-2
55-179
55-171
55-55
55-60
55-56
55-193
55-191
55-433
55-294
55-312
55-314
55-446
55-2S2
55-150

NEW YORK*

Albany
Do
Do
Amsterdam
Bay Shore
Bronxville
Brooklyn
Do
,
Do
Do
Do
Buffalo
Do
Do
Caienovia
,
Dundee
Elmira
,
Do
FarRockaway.,
Glens Falls
Do
GranviUe
Greenwich

50-256
50-255
50-484
50-748

AUGUST I ,

FEDERAL BESEBVE BULLETIN.

196

1915.

List of member banks which have joined the collection system List of member banks which have joined the collection system
of the Federal reserve blanks—Continued.
of the Federal reserve banks—Continued.
DISTRICT No. 3—Continued.

DISTRICT Mo. 2—Continued,
City or town.

Name of bant.

Transit
number.

Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Nyack
Ogdensburg.
Osslning
_ Do
,
Perry
Port Chester..,
Port Jefferson..
Ridgewood
Rochester
,
Rye
Schenectady,..
Do
,
Stapleton
,
Syracuse
Do
Troy
Tuckahoe
Westfield
White Plains..

Peoples National
Firrst National
Tompkins County National...
First National
Larchmont National
N ational Exchange . . . . . . . .
Highland National
American Exchange National.
Bank of New York National
Banking Association.
Battery Park National
Bronx National
Chase National
Chatham & Pbenix National..
Chemical National
Citizens Central National
Coal & Iron National
East River National
Fifth National
Fiist National
.-.
Garfield National
Gotham National
Hanover National
Importers *c Traders National.
f
Irving National
Liberty National
Lincoln National
Market & Fulton National....
Mechanics «c Metals National..
f
Merchants Exchange National.
Merchants National
National Bank of Commerce...
National Butchers <c Drovers..
f
National City
National Park
Now York County National...
Seaboard National
Second National
Union Exchange National....
Nyack National
National Bank of Ogdensburg.
Osslning National
Fiist National
do
do
...do
RMgewood National
Traders National
R3 e National
Union National
Mohawk National
Richmond Borough National.
First National
Salt Springs National
Manufacurers National
First National
National Bank of Westfield...
First National

50-435
50-262
50-261
1-431
50-776
50-223
50-174
1-21
1-1

Pitman
Point Pleasant.,
PortNorris
Princeton
Swedesboro
Toms River
Williamstown...

1-232
1-416
1-74
1-30
1-12
1-36
1-99
1-59
1-82
1-S5
1-81
1-244
1-33
1-53
1-67
1-91
1-80
1-42

Alientown,
Do
Do
Altoona
Do
Blue Ball
,
Bradford
Canton
Catasauqua
Chambersburg,,

1-13
1-3
1-23
1-15
1-8
1-54
1-71
1-85
1-63
1-100
50-457
50-240
50-319
50-318
50-463
50-281
50-555
1-437
50-8
50-845
50-90
50-88
1-454
50-36
50-34
50-64
50-941
50-523
50-234

DISTRICT No. 3.

Deimar.
Seaford.

Fin t National.
-io

62-48
62-35

NEW JERSEY.

Atlantic City.:
Berlin
Blackwood
Bordentown
Camden
Do
Clayton
Haddon Heights
Millville.....
Moorestown
Mount Holly
Pedricktown




Name of bank.

Transit
number.

NEW JERSET—continued.

NEW TORE—continued.
Hudson Falls.
Ithaca
Do
Jamaica
Larchmont
Lockport
New Burgh....
Hew Y o r k . . . .
Do

City or town.

Boa rdwalk National
Berlin National
Fir? t National
.do.
Can iden National
First National
Clapton National
H a l d o n Heights National.,,
Mechanics National
Moorestown National
,
Union National
First National

55-146
55-373
55-376
55-333
55-88
55-86
55-472
55-400
55-238
55-345
55-290
55-424

Pitman National
Ocean County National.
First National
do.
Swedesboro National..
First National
....do

55-428
55-430
55-457
55-305
55-445
55-353
55-454

PENNSYLVANIA.

Clarks Summit.
Coatesville
Collegeville.-,

SanvSic
Danville

Do
Duncannon
Do
Dunmore
East Berlin
Fawn Grove
Freeland
Girardville
Glenside
Hamburg
Hazleton
Honey Brook
Howard
Huntingdon
Lancaster
Do
LandisvMe
Lansdale
Lehighton
Lemasters
Lewistown
Liverpool
McConnellsburg..
Marietta
MillersvIUe
Milton
Mount Jewett....
Mount Joy
Mount Union
Mountville
Nazareth
Norristown
North Wales
Philadelphia

Do...
Do
Do
Do
Do,..
Do
Do
Do
Do.
Do.,
Do.,
Do.,
Do..
Do..

Do..
Do.,
Do.,
Do.,
Do..

Allentown National,
Merchants National.
Second National
First National
Second National
Blue Ball National..
Bradford National..
Farmers National...
National Bank of Catasauqua..
National Bank of Chambersburg.
Abington National
National Bank of Chester ValCoflegeville National
Coplay National
,
Danville National
,
First National
,
Duncannon National
Peoples National
FirstNational
East Berlin National
,
FirstNational
do
FirstNational
Glenside National.
FirstNational....
....do
.....do
.....do
....do
Northern National
Peoples National,
FirstNational
<
....do
....do
Lemasters National.
Citizens National
FirstNational
do.
Exchange National
MillersvIUe National....
Milton National
Mount Jewett National.
FirstNational
do..
Mountville National
Nazareth National
Peoples National
North Wales National
Bank of North America
Centennial National
Central National
,
Corn Exchange National
Eighth National
Farmers & Mechanics National
First National
Fourth Street National
Franklin National
Girard National
Kensington National
Manufacturers National
Market Street National
National Bank of Germantown
National Bank of the Northern
Liberties.
National Security
Ninth National..
Northern National
Northwestern National
Penn National
Philadelphia National

60-128
60-131
60-129
60-116
60-118
60-1091
60-366
60-961
60-726
60-427
60-1430
60-452
60-1115
60-1121
60-573
60-574
60-978
60-979
60-313
60-1040
60-1157
60-652
60-1171
60-1174
60-895
60-233
60-1192
60-1198
60-616
60-143
60-144
60-1213
60-801
60-717
60-1220
60-536
60-1226
60-1051
60-915
60-1253
60-581
60-1262
60-907
60-819
60-1265
60-765
60-219
60-1284
3-2
3-29
3-26
3-18
3-25
3-3
3-20
3-39
3-44
3-13
3-8
3-11
3-40
3-53
3-6
3-2S
3-33
3-43
3-36
3-9
3-1

197

FEDEEAL EESEBVB BULLETIN.

AUGUST 1,1915.

List of'member banks which have joined the collection system
of the Federal reserve banks—Continued.

List of member banks which have joined (he collection system

DISTRICT No. 3—Continued.

DISTRICT No. 4—Continued.

City or town.

Name of bank.

Transit
number.

.
;....

Watsontown
Waynesboro.
Wellsboro
West Chester
Do...........
Williamsport
Do
York
Do
Do

Quaker City National
Sixth National
Southwark National
Southwestern National
Tenth National
Textile National
Third National
Tradesmens National
Union National
—
National Bank of Phoenixville.
Miners National
Pennsylvania National.
Quakertown National
First National.
National Union
First National
Third National
Traders National
Fanners National
Peoples National
First National
Terre Hill National
Tremont National
Grange National Bank of Bradford County.
Farmers National
Citizens National
Peoples National. •
First National.
do
National Bank of C h e s t e r
CountyFirst National...
West Branch National
Central National
First National
York National

3-42
3-23
3-7
3-37
3-34
3-45
3-21
3-14
3-19
60-465
60-247
60-248
60-770
60-1311
60-36
60-1
60-4
60-8
60-981
60-812
60-197
60-1367
60-917
60-1005
60-939
60-602
60-600
60-830
60-439
6O-43S
60-197
60-196
60-165
60-155
60-153

DISTRICT No. 4.
KENTUCKY.

Brooksville
Covington..
Georgetown
Ludlow
Maysville

,
,

Do
Mount Sterling
O;;;;;;

Newport
Pikeville
Russell.....
Somerset
Winchester

First National
Citizens National
Georgetown National
First National
Bank of Maysville, National
Banking Association.
State National
Mount Sterling National
Traders National
Montgomery National
German National
First National
..do..
..do.
Clark County National.,

73-382
73-18
73-139
73-145
73-100
73-102
73-149
73-150
73-151
73-27
73-26S
73-5SS
73-142
73-90

OHIO.

Arcanum
Baltimore...
Bellevue
Blanchester.
Bluflton...
Bucyrua...
Cardington.
Celina
Cincinnati.
Do
Do
Do
Do
Do.
Do
Do
Circleville
Cleveland
Do




Name of bank.

Transit
number.

OHIO—continued.

PENNSYLVANIA—COntd.

Philadelphia
Do...
Do
Do
Do
Do
Do
Do
Do
Fhoenbcville
Pottsville
Do
Quakertown
Ralston
Reading..
Scranton
Do...
Do
Selins Grove
Shippensburg
Tamaqua
Terre Hill
Tremont
Troy

City or town.

First National....
do
../..do
do
do
Second National
First National.
do
Atlas National..
Citizens National..Fifty-third National
First National
Fourth National
German National
Market National .. Second National
First National
Bank of Commerce, N. A..
Central National

56-70$
56-881
56-472
56-642
56-623
S

56-710
56-544
13-35
13-29
13-31
13-1
13-4
13-24
13-36
13-2
56-395
6-3
6-4

Cleveland
Do
Do
Do
Do
Columbus
Do
Do
Do
Do
Do
Do
Do
Coshocton
Dayton
Defiance
Dillonvale
Elyria
Fostoria
Franklin
Fremont
Georgetown
Greenwich
Hamilton
Do
HiUsboro
Do
Lewis ville
London
Lorain
Marietta
Massillon
Milford
Mount SterlingMount Vernon...
Do
New Concord
Norwood
Do
Plqua
Powhatan Point.
Ravenna
Sandusky
Do
Springfield
Do
Spring Valley....
Toledo.
Do
Do
YVadsworth..
Wapakoneta.
Wefisville....
Youngstown.
Do

Cleveland National
First National
National City —
National Commercial
Union National
Central National
City National
Commercial National
Hayden-Clinton National
Huntington National
National Bank of Commerce...
New First National
Ohio National
Coshocton National
City National
Merchants National
First National
The National Bank of Elyria..
Union National
Franklin National
First National
do
do
do
Second National
Farmers and Traders National
Merchants National
First National
Madison National
National Bank of Commerce...
Citizens National
Merchants National
Milford National
First National
do
New Knox National
First National
do
Norwood National
Citizens National
First National
Ravenna National
Commercial National
Third National Exchange
Fanners National
First National
Spring Valley National
Tiffin National
First National
Northern National
Second National
First National
Auglaize National
Peoples National.....
Commercial National
First National
-

6-5
6-10
6-12
6-8
6-15
25-16
25-3
25-5
25-7
25-2
25-12
25-4
25-1
56-279
56-28
56-358
56-943
56-197
56-285
56-572
56-272
56-673
56-790
56-91
56-92
56-501
56-500
56-1019
56-538
56-110
56-249
56-213
56-712
56-740
56-298
56-297
56-1069
56-180
56-181
56-219
56-1116
56-464
56-164
56-162
56-673
56-81
56-1162
56-253
56-1
56-4
56-2
56-556
5G-461
56-349
56-46
56-44

Farmers National
Citizens National
Braddock National...
First National
Merchants National..
Springs National
Peoples National.
First National...,
Marine National.
First National-..
do
Union National.

60-422
60-648
60-267
60-930
60-244
60-975
60-774
60-71
60-73
60-966
60-1266
60-519
60-192
8-1
8-22
8-24
8-19
8-20
8-2
8-11
8-9
8-27

PENNSYLVANIA.

Beaver Falls
Bellevue
Braddock
Bridgeville........
Butler
Cambridge Springs.
EllwoodCity
Erie
Do
Ligonier
MunhalL
New Brighton..Newcastle
Pittsburgh
Do
Do.
Do.
Do.
Do.
DoDo.
Do.

Bank oYpittsburghVN. A
Columbia NationaL
Commercial NationaL
Diamond National
Duquesne National
Exchange National....
Farmers Deposit NationaL
First-Second National
Keystone National
,

198

FEDERAL RESERVE BULLETIK.

AUGUST l t

1915.

List of member banks which have joined the collection system List of member banks which have joined the collection system
of the Federal reserve banks—Continued.
of the Federal reserve banks—Continued.
DISTRICT No. 5—Continued.

DISTRICT No. 4—Continued.
City or town.

Name of bank.

Transit
number.

SOUTH CAROLINA—COntd.

PENNSYLVANIA—<JOntd.

Pittsburgh
Do
Do
Do
Do
Do
Do
Plumville
Tarentum
Titusville
Turtle Creek
Uniontown
Washington

Mellon National
Monongahela National
People's National
Second National Bank of Allegheny.
Third National
Union National
Western National
First National
Peoples National.
Second National
First National.
Second National
Citizens National

8-26
8-21
8-13
8-83
8-10
S-12
8-23
60-1306
G0-587
60-511
60-735
60-683
60-294

DISTRICT No. 5.
DISTRICT OF COLUMBIA.

WashingtonDo
Do

Columbia National.,
District National...
Franklin National..

15-1
15-12
15-84

MARYLAND.

Annapolis
Baltimore
Do
Do
Do
Do,
Do
Do,
Do
Do
Do.
Catonsville
Cumberland
Frostburg
Hagerstown
Hancock
Oakland
Sykesyille

Farmers National
,
Farmers & Merchants National.
First National
Merchants-Mechanics National,
National Bank of
National Bank of Commerce..,
National Exchange
National Marine
:...
Old Town National
Second National
Western National
First National
Third National
Citizens National
Peoples National
First National
Garrett National
,
Sykesville National
,

65-35
7-7
7-14
7-11
7-1
7-4
7-16
7-10
7-17
7-6
7-13
65-148
65-2
65-53
65-21
65-119
65-97
65-128

First National
City National
National Bank of Sumter
First National




68-109
68-108
68-321
68-131
68-356
68-136
68-269
68-219
68-237
68-72
68-73
68-75
68-240
68-85
6S-6
68-30
68-25
*68-l
68-113
68-4
68-5
68-2
68-62
68-54
68-56
68-226
68-225
68-227

First National
Charleston National..
Citizens National
First National
do

69-36
69-68
69-177
69-217

VIRGINIA,

Alexandria
Do
Broadway...........
Charlottesville
Fairfax
Fredericksburg
Gate City
Leesburg
Luray
Lyncnburg
Do
Do
Manassas.............
Petersburg
Richmond.
Do
Do
Do
Do
Do
Do
Do
Roanoke
Do
Do
Warrenton
Do
Waynesb oro
WEST VIRGINIA.

Bluefield
Charleston...
Martinsburg.
St. Marys
West Union..

DISTRICT No. 6.
National Bank of.
do.
Farmers National
First National
do
.do.
Commercial National..
Murchison National...
First National
Merchants National...
Peoples National

66-123
66-153
66-511
66-223
66-172
66-90
66-140
66-2
66-111
66-50
66-48

SOUTH CAROLINA.
Aiken
Anderson
Bennettsville.
Bishopville...
Charleston
Do
Columbia
Do
Do
Do
Do
Conway
Florence
Greenville
Laurens
Lexington
Newberry
Orangeburg...
Rock Hill
Spartanburg..

67-33
67-65
67-54
67-195

Alexandria National..
Citizens National
First National
National Bank of
do.
Planters National
First National...
Peoples National
Page Valley National.,
First National
Lynchburg National..
Peoples National
National Bank of
Virginia National
American National....
Broadway National...
Central National
First National
Manchester National. Merchants National
National State & City.
Planters National
American National
First National
National Exchange
Peoples National
..
Fauquier National
First National

Spartanburg
Sumter
Do
Waterboro

NORTH CAROLINA.

Goldsboro
Greenville
Louisburg
Do
Oxford
Salisbury
Statesviile
Wilmington
'.
Wilson
Winston-Salem
Do

Transit
number.

Name of bank.

City or town.

First National
Citizens National
Planters National
First National
Germania National
Peoples National
National Loan & Exchange.
National State
Palmetto National
Peoples National
Union National
Peoples National
First National
Fourth National
Enterprise National
Home National
National Bank of
Edisto National
National Union
Central National

67-136
67-60
67-155
67-391
67-16
67-3
67-26
67-24
67-25
67-30
67-28
67-454
67-80
67-51
67-117
67-264
67-109
67-92
67-71
67-35

ALABAMA.
Armistnn

First National
do
do
do
Traders National
First National.
Bank of Mobile, National Banking Association.
First National
do
Isbell National
Talladega National

Athens
Atraore
Birmingham
Do
Luverne
Mobile

Prattville
Talladega

Do

FLORIDA.

Pensacola

.,,

National Bank of Commerce...
Peoples National

GEORGIA.

Atlanta
Do
Do
Do
Do
Do
Cordele
Cornelia
Dawson
Dublin
Do

American National
Atlanta National
Fourth National
Fulton National
Lowry National
ThlrdNational
Cordele National
First National
Dawson National
City National
First National

•

199

FEDERAL EESERVE BULLETIN.

AUGUST 1,1915.

List of member hanks which have joined the collection system List of member banks which have joined the collection system
of the Federal reserve banks—Continued.
of the Federal reserve banks—Continued.
DISTRICT No. 7—Continued.

DISTRICT No. 6—Continued.
City or town.

Name of bank.

Transit
number.

First National
American National
Citizens National
Fourth National
Macon National
First National
do
.do..,
.do...
.do.,
.do..
National Bank of Savannah..
Merchants National
Hlbernia National
New Orleans National..
First National
Citizens National
do.
First National
Hamilton National
Phoenix National
First National
National Bank of Franklin
Peoples National
City National
TJnaka National
Holston National
Third National
Union National
First National
American National
Lebanon National
First National
American National
Broadway National
Cumberland Valley National..
Fourth and First National
Tennessee Hermitage National
Peoples National
First National
Peoples National
First National

ILLINOIS.

DoDo.
Do.
Do.
Do.
Do....
Do....
Do....
Do....
Do....
Do....
Do....
Clifton....
DeLand..
Divemon.
Findlay...
Galena
Harvey...
Joliet
Do....




State National
Calumet National
Central Trust Company of Illinois.
Continental & Commercial National.
Corn Exchange National
Drovers National
FirstNational
First National Bank of Englewood.
Fort D earborn National
Live Stock Exchange National.
National Bank of the Republic.
National City
National Produce
Ravenswood National
Washington Park National
FirstNational
do.
..do.
.do.
Galena National.
FirstNational....
do
Joliet National...

70-685
70-602
70-207
70-76S
70-720

70-S47
70-1491
70-9
70-1
70-1
70-44
70-40
70-39
70-1603
70-452
•70-763

National Exchange.
FirstNational
do.
RIddcll National
National Brookville.
FirstNational
do
..do.
German American National.
FirstNational
Citizens German National...
FirstNational
do.
Citizens National
Merchants National
First National
Dearborn National
First National
Citizens National
FirstNational
Rush County National.
Rushville National
Farmers National
Citizens National
Valparaiso National

71-73
71-374
71-620
71-222
71-463
71-405
71-268
71-4S5
71-27
71-520
71-S5
71-83
71-704
71-139
71-09
71-179
71-394
71-125
71-362
71-172
71-357
71-356
71-203
71-587
71-276

FirstNational
,
Merchants National.
FirstNational
Merchants National.
Farmers National...
FirstNational
do
.do.,
.do..
.do.,
.do..
..do..
..do..
Continental National....
FirstNational
Northwestern National.
FirstNational
....do
..
....do
....do

72-905
72^54
72-377
72-47
72-445
72-261
72-1081
72-722
72-257
72-1833
72-209
72-988
72-1071
41-62
41-5
41-3
72-387
72-31
72-276
72-166

IOWA.

DISTRICT No. 7.

Bloomington.
Chicago
,
Do

Transit
number.

INDIANA.

Anderson
Aurora
Boswell
Brazil
Brookville
Columbia City
Conners ville
Covington
Fort Wayne
Greenwood
Hammond
Do
Kirklin
Kokomo
Lafayette
La Porte
Lawrenceburg
Logansport
Martins ville
Peru
Rushville
Do
Shelbyville
Tipton..
Va

TENNESSEE,

Centerville
Do
Chattanooga...
Do
Do
Columbia
Etowah
Franklin
Gallatin..."I;...
Johnson City...
Do
Knoxvffle
Do
Do
Lawrenceburg..
Lebanon
Bo
Murfreesboro. - Nashville
Do
Do
Do
Do
Shelbyville,....
Springfield^
Woodbury

. . . Farmers National
Lewistown National
,
National Bank of Mattoon
,
First National
....do
Neoga National
Newman National
Central National
Commercial German National.
First National
Forest City National
Third National
Winnebajro National
First National
Sycamore National
mal Farmers

Kansas
Lewistown
Mattoon
Milford
Moweaqua
Neoga.
Newman
Peoria
Do
Do
Rockford
Do
Do
Steward
Sycamore
Warren

LOUISIANA.

New OrleansDo

Name of bank.

ILLTNOIS—continued.

GEOEGIA—continued.

Fort Valley..
Macon.......
Do
Do
Do
Milledgeville.
Quitman
Sandersville..
Sparta
Sylvester.....
Valdosta
Savannah....
Do

City or town.

70-105
2-105
2-23
2-3
2-5
2-103
2-1
2-109
2-12
2-147
2-13
2-22
2-59
2*206
2-144
70-1013
70-1059
70-125S
70-1297
70-420
70-309
70-59
70-61

Armstrong...-,
Burlington
Clarion
Clinton
Corning
Estervfile
Galva
Gowrie
,
Independence..
Mapleton
,
Newton
Peterson
Renwick
...
Sioux City
Do
Do
Villisca
Waterloo
Waverly
Webster City..
MICHIGAN.

Alpena
Detroit
Do
Do
Grand Rapids
Kalamazoo
Morenci
Port Huron
Reed City
Saginaw
Vassar

....

Alpena National
First and Old Detroit National
Merchants National
National Bank of Commerce..
Grand Rapids National City..
Kalamazoo National
FirstNational
First National Exchange
FirstNational
Second National
Vassar National

74-122
9-1
9-27
9-24
74-2
74-45
74-396
74-91
74-369
74-22
74-375

200

AUGUST 1,1915.

FEDERAL RESERVE BULLETIN.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued,

List of member banks which have joined the collection system
of the Federal reserue banks—Continued.

DISTRICT No. 7—Continued.

DISTRICT No. 8—Continued.

City or totorn.

Name of bank*

Transit
number.

First National
Bank of Wisconsin
First National
National Exchange
Wisconsin National
First National
. . . . do
. . . . do
Wisconsin National
First National

Rio
Watertown
White Water

79-65
79-50
12-2
12-4
12-7
79-206
79-243
79-394
79-127
79-232

DISTRICT No. 8.
ARKANSAS.
Batesville
Benton
Bentonville
Do
Berryville
Cotton P l a n t
De Queen

-•

DeWitt
Eureka Springs
Fayetteville..
Do
Forrest City
Fort Smith
Do
Do
Do
Gravette
Green Forest
Hope
HuntsviUe
Jonesboro
Judsonia
Lewisville
Morrillton
gould

.,

Pine Bluff
Prairie Grove.,,
Rogers
Siloam Springs..
Springdale
Stuttgart
,
Texarkana
,
Van Buren
,
Waldron
Walnut Ridge..

First National,
do.
Benton County National First National
do.
do.
....do
....do
....do
Arkansas National.
First National
do.
American National
City National
First National
Merchants National
First National
.do.
Citizens National.,
First National....
,do
.do.
.do.
-do.,
.do..
National Bank of Commerce.
Simmons National
First National
.do..
do
do
do
State National.
First National..
do
do

Sl-115
81-295
81-170
81-171
81-251
81-22S
81-167
81-246
81-335
81-S8
81-89
81-142
81-33
81-38
81-31
81-32
81-270
81-550
81-110
81-263
81-68
81-373
81-383
81-554
81-79
81-80
81-43
81-255
81-123
81-146
81-189
81-55S
81-75
81-102
81-240
81-17*

Albion National..,
First National
Farmers National.
First National ...
.do..
Alton National
Citizens National.,
Anna National
First National
.do..
do.
National Bank of Benld.
First National
,
—do
;;..,
,do
,...,.
do
Brookport National.
First National
do..
Alexander County National!'.
Cairo National...
Carbondale National..."
\
First National
CarlinvilleNational . . . .
First National
""

70-777
70-776
70-1796

ILLINOIS.

Albion
Do
Allendale
Do
Altamont
Alton
Do
Anna
Do
D
Barry
Belleville
Benld
Benton
Breese
Bridgeport
Brighton
Brookport
Brownstown
Bunker Hill
Cairo
Do
Carbondale
Do
D
Carllnville
Carlyle




Name of bank.

Transit
number.

ILLINOIS—continued.

WISCONSIN,

Kenosha
Madison
Milwaukee
Do
Do
Monroe

City or town.

70-1130
70-765
70-152
70-154
70-526
70-525
70^694
70-138
70-1169
70-541
70-628
70-537
70-1021
70-740
70-1192
70-857
70-173
70-175
70-381
70-379
70-466
70-650

Carmi
Do
Carriers Mills
Carrollton
Carterville
Centralia
Christopher
Cobden
Colleen
Collinsville
Columbia
Crossville
Dahlgren
Dongola
Duquoin
East St. Louis
Do
Edwardsville
Effingham
Eldorado
Equality
Fairfield
Do
Farmersville
Flora
Freeburg
GiUespie
Golconda
Goreville
Gorham
Grand Tower
Granite City
Do
Grayyille
"Do
Greenfield
Greenville
Griggsville
Harrisburg
Herrin
Do
Highland
Hillsboro
Do
Irving
Jacksonville
Jersey ville
Kinmundy.............
Lawrencevllle
Litchfield
Do
.,.
McLeansboro
I
Do
Madison
Marine
Marion
Marissa
Mascoutah
Metropolis
Do
Do
Millstadt
Mound City
Mounds
Mount Carmel
Do
Mount Olive
Mount Sterling
Mount Vernon
Do
Murphysboro
Do
Nashville
Do
National Stock Yards
Nebo
Nokomis
:...
DO
;
Norris City
Oblong
Odin...
O'Fallon

First National
National Bank of Canni
First National
Greene County National
First National.
Old National
First National
.do..
Cofieen National.
First National....
....do
do.....
....do
First National.
.do.
Drovers National
Southern Illinois National
First National
.do.
do.....
do
Fairfield National.,
First National
....do
....do
....do
Gillespie National..
First National
do
.do.
.do.
.do.
Granite City National..
Farmers National
First National
.do.
Bradford National...
Griggsville National.
City National
N a i l
do
First National
..,.do
Hillsboro National
Peoples National
Irving National
Ayers National
National Bank of Jerseyville...
First National
....do
....do
;.
Litchfleld National
First National
Peoples National
First National..,
do
do
....do
....do
City National..,,
First National...
National State.**.
First National..,
do
do
American National..
First National
do.
.do;
Ham National
!
Third National
City National
First National
Farmers & Merchants National.
First National
;.
National Stock Yards National. |
First National
Farmers National
Nokomis National
I
First National
Oil Belt National
First National
....do
' ..

70-522
70-523
70-707
70-600
70-514
70-235
70-1221
70-1230
70-873
70-294
70-1232
70-1242
70-1005
70-1703
70-370
70-20
70-17
70-408
70-455
70-484
70-1283
70-572
70-571
70-1696
70-535
70-1310
70-609
70-837
70-1324
70-1302
70-1328
70-225
70-226
70-655
70-654
70-811
70-501
70-783
70-385
70-330
70-328
70-542
70-480
70-481
70-1376
70-164
70-444
70-868
70-494
70-352
70-354
70-^81
70-680
70-404
70-1852
70-317
70-646
70-1441
70-428
70-426
70-427
70-1463
70-521
70-1821
70-323
70-322
70-475
70-648
70-272
70-273
70-287
70-286
70-627

70-626
70-1480
70-1729
70-663
70-662
70-853
70-733
70-1503
70-1504

201

FEDERAL EBSEEVE BULLETIK,

AUGUST 1,1915.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

DISTRICT No. 8—Continued.

DISTRICT No. 8—Continued.

City or town.

Name of bank.

Transit
number.

Shawneetown.
Sparta
Staunton
Stunner
Tamaroa
Trenton
Ullin
Vandalia
Vienna
Waterloo
Waverly
Wayne Cil
West! .....
West Salem..
White Hall.
Do
Witt
Do
Worden

First National.
....do
....do
do
Quincy National.
Ricker National..
First National...
do
.do.
.do.
.do.
Salem National.
First National.,
doCity National..
First National.
,do
.do.
.do.
..do.
.do.,
.do.
.do.
.do.
.do.
.do.
.do.
.do.
do
White Hall National.
Oland National
Witt National
,
Wall National

Bedford
Do
BIcknell
Birdseye
BoonviUe
Do
Cannelton
Do
Carlisle
Charlestown
.
Corydon
Do
,
Evansville
Do
.
Do
Fort Branch
Holland
Huntingburg...
Jasonvifle
Jeffersonville...
Llnton
Loogootee
Lynnville
Madison..
Do
MiUtown.
Mount Vernon..
Do
New Albany
Do..
New Harmony..
Odon
Orleans
;
Owensville
Patoka
Petersburg
,
Poseyville
Do
Princeton
,
Rockport
Seymour
Do
Shelburn
Sullivan
Tell City
Do

Bedford National
Citizens National
First National
Birdseye National
City National
Farmers & Merchants National.
Cannelton National
First National
do
....do
Corydon National
First National
Citizens National
City National
Old State National
Farmers & Merchants National
Holland National
First National
.....do
....do
.....do
do
Lynnville National.
First National
National Branch
First National
do.
Mount Vernon National.
New Albany National...
Second National
First National
do.
National Bank of Orleans...
First National
Patoka National
First National
Bozeman-Waters National..
First National
Farmers National
First National
do.
Seymour National
First National
National Bant of Sullivan..
Citizens National
,
Tell City National




Name of bank.

Transit
number.

INDIANA—continued.

ILLINOIS—continued.

Olney
Palestine
Pinckneyville.. Pittsfield
Quincy
Do
Raymond
Roodhouse
St. Elmo
St. Francisville.
St. Peter
Salem
Sandoval

City or town.

70-412
70-749
70-534
70-636
70-51
70-49
70-914
70-616
70-794
70-753
70-1111
70-545
70-706
70-1577
70-667
70-506
70-401
70-747
70-900
70-690
70-1632
70-511
70-826
70-1747
70-710
70-1651
70-630
70-967
70-519
70-518
70-1673
70-1770
70-1678

71-240
71-239
71-422
71-683
71-390
71-391
71-480
71-481
71-015
71 S11
71-510
71-5U
71-4
71-2
71-1
71-575
71-782
71-438
71-791
71-185
71-312
71-475
71-816
71-282
71-281
71-834
71-316
71-317
71-89
71-90
71-564
71-870
71-544
71-559
71-880
71-462
71-630
71-631
71-294
71-427
71-297
71-298
71-908
71-383
71-411
71-410

Vevay
Vincennes...
Do.
Do
Wadesville...
Washington.
Do
;.
Wlnslow

First National.
do.
German National
Second National
Farmers National.....
Peoples National
Washington National.
First National

71-555
71-153
71-154
71-165
71-936
71-263
71-262
71-958

Bardwell
Bowling Green..
Do
Campbellsville.,
Carrollton
Do
Columbia
Danville
Fulton
Glasgow
Do....'
Do
,
Harrodsburg...,
Do
Henderson
,
Hodgenville....
Do
Hopkins v i l l e . . .
Lawrenceburg..
Do
Lebanon
Louisville
Do
Do
Do
Do
Do
Do
Do
Madisonville...
Mayfield
Do
Montlcello
Morganfield....
Owensboro
Do
Do
O wenton
Paducah
Princeton
Providence....
Eussellville
Do
Scottsville
Do
Sebree
Springfield
WIckliffe

First National
American National..
Citizens National....
Taylor National
Carrollton National.
First National
.do..
Citizens National
First National
Farmers National
First National
Trigg National
First National
Mercer National
Henderson National
Farmers National
La Rue National
First National
Anderson National
Lawrenceburg National
Citizens National
American National
Citizens National
First National
Louisville National Banking Co,
National Bank t>f Commerce..,
National Bank of Kentucky....
Southern National
Union National.Farmers National
..doFirst National
Citizens National
Morganfield National....
First National
National Deposit
United States National.
First National
..do.
Farmers National
Union National
-.
Citizens National
National Deposit
Allen County NationalFirst National
•
....do
do
....do

73-303
73-74
73-73
73-281
73-220
73-219
73-310
73-124
73-189
73-197
73-196
73-195
73-164
73-165

First National
National Bank of Commerce.
Citizens National
First National
do...

86-201
85^7
85-110
85-109
85-128

First National..^
do
Central National.
First National. - ..do..
do

80-507
80-343
80-203
80-592
80-394
80-582
80-551
80-309
80-298
80-105
80-236
80-^587
80-316
80-322

7^n5O

73-338
73-339
73-70
73-223
73-224
73-170
21-24
21-10
21-5
21-20
21-3
21-1
21-11
21-23
73-136
73-112
73-108
73-259
73-186
73-41
73-42
73-47
73-306
73-34
73-177
73-212
73-169
73-168
73-263
73-264
73-244
73-260
73-638

MISSISSIPPI.

Ackerman
Columbus
Corinth
Do
Tupelo

—

MISSOURI.

AppletonCity
Bolivar
Boonville
Bosworth
Brunswick
Cabool
Cainesville
California
Canton
Cape Girardeau
Carrollton
Cassville
Centralia
Chaffee

dO

;•

Monlteau National.
First National
.....do
do
do

202

AUGUST 1,1315.

FEDEEAL EESEEVE BULLETIN.

List of member hanks which have joined the collection system IAst of member banks which have joined the collection system
of the Federal reserve banks—Continued,
of the Federal reserve banks—Continued.
DISTRICT No. 9—Continued.

DISTRICT No. 8—Continued,
City or town.

Name of bank.

Transit
number.

Citizens National
First N a t i o n a l . . . . . . . . . .
Clinton National
Peoples National
Boone County National..
Exchange National
First National
American National.
City National
First National.
Hannibal National
First National
Peoples National
First National
Citizens National.
First National
do..
Farmers National,
First National....
do.
Scotland County National
First National
do.
..do..
..do..
..do..
..do..
.do.,
.do,,
.do.,
.do..
Central National
Mechanics-American National.
Mercantile National
Mercantile Trust Co
Merchants-Laclede National..'National Bank of Commerce. State National
Third National
First National
Citizens National
Third National
Peoples National
McDaniel National
Union National
F irst National
Trenton National
Marshall National
National Bank of Unionville..
First National
peoples National
First National
do
. ...do
;;...
. ...do

,.

Purdy.
Rid,
St, __
St. Louis
Do
Do
Do
Do.
Do
Do
Do
Salem
Sedalia
Do
Seymour
Bpringfleld
Do
Steelville
Trenton
Unlonville
Do
Versailles
Warrensburg
Washington
Wellston.......
West Plains
Windsor

80-139
80-138
80-180
80-181
80-85
80-86
80-276
80-562
80-563
80-378
SIMS
80-1412
80-321
80-61
80-132
80-1414
80-742
80-767
SO-768
80-465
80-339
. 80-148
60-299
80-207
80-383
80-307
80-328
80-698
80-1175
80-564
80-98
4-6
4-32
4-20
4-21
4-19
4-26
4-28
4-29
80-371
80-53
80-55
80-665
80-29
80-8
80-589
80-158
80-331
80-332
80-398
80-194
80-220
80-110
80.-255
80-295

TENNESSEE.

Brownsville
Covington
Jackson
Do
DO
Memphis
Do
Do
Do
Paris
Ripley
Union City

* ...
;;;...
" ...
"*..,
""...
"*"...

First National
....
do
,...
Second National
Security National..:...
Central State National.
First National
Mercantile National
National City
First National
do
Third National

87-141
87-567
87-59
87-60
87-65
26-7
26-2
26-6
26-65
87-112
87-554
87-102

DISTRICT No. 9.
MICHIGAN,

L'Anse
Munising..........
MINNESOTA.
Ada
Aitkin




Transit
number.

MINNESOTA—continued.

MISSOUBI—continued.

Chillicothe
Do
Clinton
Do
Columbia
Do
Eldorado Springs
Green City
Do.
Hamilton
Hannibal
Holden
Jackson
Jefferson City
Kirksville
Lebanon
Linn Creek
Ludlow
,
Bo
Marshfield
Memphis
,
Mexico
Milan
Monett
Mountain Grove
Palmyra
Pierce City
Polo

Name of bank.

City or town.

Baraga County National
First National Bank of Alger
County.
Ada National
First National

74-704
74-317

75-1192
75-261

Alexandria
Amboy
Anoka
Atwater
Belle Plaine
Blackduck
Braham
Ceylon
Crookston
Do
Deer River
Elbow Lake
Foley
Grand Rapids
Halstad
Hawley
Hendncks.
Do
Hopkins...
Hutchinson...
Jackson
Do
Lake P a r k . . .
Lanesboro...,
LeRoy
Litehfleld....
Little Falls...
Long Prairie.
Luverne
Do
Mankato
Do
Do
Minneapolis..
Do
Do
Do

.do
do
Anoka NationalFirst National...
..do.
..do.
,.do.
..do.

,

,,..do
Merchants National.
First National
..do.

.do.
..do.
..do.
..do.
..do.

_.Ao.
Farmers National
First National Bank of West
Minneapolis.
Farmers National
First National
Jackson National
First National
.do,
..do.
..do.
German-American National
First National
Farmers National
National Bank of Luverne
First National
National Bank of Commerce...
National Citizens
,
First & Security National
Metropolitan National
Northwestern National
Scandinavian-American
National.
First National
Moorhead National
First National
Peoples First National
First National
do
....do
Fanners National.
First National
do.
American National
Capital National
First National
Merchants National
National Bank of Commerce.
First National

Moorhead
Do
New Prague

75-157
75-539
75-141
75-480
75-317
75-S62
75-665
75-587
75-78
75-77
75-711
75-419
75-137
75-199
75-519
75-139
75-411
75-548
75-549
75-160
75-1035
75-216
75-217
75-430
75-359
75-441
75-188
75-109
75-306
75-176
75-177
75-33
75-37
75-34
17-2
17-62
17-1
17-7
75-130
75-131
75-271

National Bank of Wheaton...,
First National

Olivia
Osakis
Parkers Prairie.,
Princeton
Ked Lake Falls.
R u s h City
Rushmore
St. Paul
Do
Do
Do
Do
Sleepy E y e
Springfield
Stephen
Tyler
Waterville
Wheaton
Willmar

75-362
75-353
75-567
75-265
75-240
75-361
75-611
22-7
22-5
22-1
22-3
22-8
75-107
75-278
75-465
75-471
75-297
75-296
75-138

Anaconda National
First National
Yellowstone National
National Bank of Gallatin Val-

93-304
93-38
93-60

First'National
United States National
First National
do.
Glasgow National..
First National
....do
....do
....do.
_,.
Conrad National.
First National...
do
....do

93-103
93-77
93-93
93-95
93-96
93-15
93-84
93-201
93-208
93-48
93-73
93-137
93-21

do
..do.
..do.
..do.

.•

MONTANA.

Anaconda
Baker
Billings
Bozeman
Conrad
Deer Lodge.
Forsyth.....
Glasgow
Do
Great Falls.,
Hamilton...
Harlem
Ismay
Kalispell..-.
Lewis town..
Malta
Missoula

,

93-35

203

FEDERAL RESERVE BULLETIN.

AUGUST 1,1915.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

DISTRICT No. 9—Continued.

DISTRICT No. 9-Continued.
Transit
number.

Name of bank.

City or town.
MONTANA—continued.

93-121
93-146
93-112
93-111

First National
....do
.do.
.do.
.do.
Cando National.
First National..,
....do
....do
..-.do
Dakota National.
First National...
.do.
..-.do
Fargo National
First National
Merchants National.
First National
-do.
.do.
..do.
Farmers & Merchants National
First National
Hope National
First National
Farmers National
First National
.V
.do.do...
.....do
do..
Milnor National...
Citizens National.
First National....
do
.do.
.do.
.do.
..do.
..do.
..do.
..do.

77-29
77-91
77-229
77-432
77-527
77-89
77-88
77-235
77-380
77-34
77-49
77-190
•77-565
77-88
77-3
77-1
77-2
77-211
77-205
77-15
77-347
77-153
77-136
77-129
77-287
77-115
77-227
77-172
77-805
77-45
77-651
77-174
77-135
77-398
77-113
77-265
77-270
77-203
77-484
77-245
77-216
77-709

NORTH DAKOTA.

Bismarck
Bottineau
Bowman
Brinsmade
Buffalo
Cando
Do
Churehs Ferry.
Crary...
Devils Lake...
Dickinson
Drayton
East Fairvie
new.
Ellendale.
Fargo.....
Do
Flngal
,
Finley
Grand Forks-..,
Hampden
Hatten
.
Hettinger
Hope
Hunter.....
Lidgerwood.
Litchville
Linton
McVille
Mandan
Mannarth
Milnor
Northwood
Osnabrock
Park River
Reynolds
Rolette
St. Thomas....
Sentinel Butte.
Sheyenne
Steele
Tower City
SOUTH DAKOTA.

Arlington
Bridge water.
Castlewood..
Clear Lake...
Hot Springs.
Mclntosh
Milbank.....
Do
Mitchell
Do
Do
Oldham
Parkston
Pierre.
Sioux
Vienna
Watertown..
."Woonsocket.

First National.
..-.do
do
... .do
Peoples National..
First National...,
..do.
Merchants National.
First National
Mitchell National.•Western National...
First National
-.
do.
Pierre National
First National
Scandinavian-American
tional.
First National
do
....do

Na-

78-190
78-173
78-236
78-203
78-72
78-333
78-78
78-76
78-29
7S-30
78-32
78-363
78-159
78-53
78-44
78^8

78-296
78-23
78-149

WISCONSIN.

Eau Claire
Grantsburg
Manitowoc
Neillsville
Phillips

Union National
•
First National
•
National Bank of Manitowoc.,
First National
do

2098—15




Name of bank.

Transit
number.

WISCONSIN—continued.

First National,
do
-do.
.do.

Moore
Ronan
Three Forks.
Townsend...

City or town.

5

79-78
79^390
79-113
79-292
79-294

Rice Lake
Shawano
Do
Superior
Waupaca
Wausau
Do
Weyauwega

First National.
do..
Gorman*American National.
United States National
Old National
First National
National German-American.
First National
DISTRICT No. 10.

COLORADO.

Akron
Alamosa
Do
Arvada
Ault
Do
Berthoud
Do
Boulder
Do
Do
Brighton
Brush
Do
Buena Vista
Canon City
Do
Carbondale
Castle Rock

•

Cedaredge
Center
Central City
Do..
Colorado City
Colorado Springs..
Do
Do
Do
Cortez
Crate
Do
Cripple Creek
Delta
Do
Denver
Do
Do
Do
Do..
Durango
Do
Eads
Eagle
Eaton
•
Do
Englewood
Florence
Fort Collins.
Do
Do
Fort Morgan
Do
,..,-.
Fountain.
Fowler
-»
Fruita
Glenwood Springs..
Do
Golden
Granada...
-.
Grand Junction....
Greeley
*

First National
Alamosa National
American National
First National
Farmers National
First National
Berthoud National
First National
Boulder National
First National
National State
First National....
do.
Stockmens National...
do..
.do..
Fremont County National
First National
First National of Douglas
County.
First National
.do..
.do..
Rocky Mountain National...
First National
Colorado Springs National....
El Paso National
Exchange National
First National
Montezuma Valley National.
Craig National
First National
.do..
Delta National.......
First National
Colorado National
Denver National
Federal National
First National
Hamilton National
United States National
Burns National
•—
First National
First National
..
First National Bank of Eagle
County.
Eaton National
First National.
.....do...
do....
*•-.
do
....
•*-Fort Collins National......
Poudre Valley National. -.
First National
Morgan County National..
First National
.do..
do...
Citizens National
First National
-••
Woods-Rubey National.
First National
Grand Valley National..
First National

79-216
79-219
79-250
79-4
79-256
79-89
79-90
79-365

204

FEDERAL RESERVE BULLETIN.

AUGUST 1,1915.

List of member banks which have joined the collection system List of member banks which have joined the collection system
of the Federal reserve banks—Continued.
of the Federal reserve banks—Continued.
DISTRICT No. 10—Continued.

DISTRICT No. 10—Continued.
City or town.

Name of bank*

COLOBADO—continued.
Greeley
Do
Gunnlson.
Hayden
,
Holly
Holyoke
Hotchklss
Hugo
Idaho Springs
Do
Johnstown
Julesburg
Do
Lafayette
LaJara
La Junta
Ltunar,....
Do
Las Animas
Leadville
Do
Littleton
Longmont
Do
Loveland
Do
Mancos
Meeker
Monte Vista
Montrose
Do
O lathe
Ordway
Palisades
Paonia
Platteville
Pueblo
Do
Bine
Rocky Ford
,
Do
Saguache
Salida
Do
Sedgwick
Silverton
Steamboat Springs
Sterling......
Do
Do
Telluride
Trinidad
Do
Walsenburg
Wellington
Windsor
Wray
Do
Yuma
KANSAS.




City or town.

Name of bank.

KANSAS—continued.

Greeley National.,
Union National..,
First National
.do..
..do..
..do.,
.do..
..do..
.do..
Merchants and Miners NationalFirst National
Citizens National.
Firs t National
do.
.do..
..do..
..do..
.•••
Lamar National
First National
,
American National...
Carbonate National..
First National
,
Farmers National...,
Longmont National..
Firs! National
,
Loveland National..
First National
do
....do
Montrose National.
First National
do
....do
Palisades National
First National
Plattevtlle National
First National
Western National
First National
do
Rocky Ford National...
First'National
Commercial National
First National
do
do
do
Farmers National
First National
Logan County National.
First National
do..
Trinidad National..
First National
do
do
,.:..d....
The National Bank of..
First National

Abilene
,.,
Do
Alma
Do
;
Almena
Anthony.......
Do
Arkansas City......
Do
.........
Ashland
Atchison...;
Do
..
Attica
Atwood
Augusta
Barnard
Baxter Springs
Bcattie. ; . . . . . . . „ .
Belleville
Do

Transit
number.

Abilene National Bank
Fanners National Bank
Alma National Bank
Farmers National Bank;
First National Bank
Cititens National Bank
First National Bank
Home National Bank
Security National Bank
Stockgrowers National Bank..
Exchange National Bank.^....
First National Bank.,
do.
Farmers National Bank
First National Bank
,
do
:
Baxter National Bank
,
First National Bank
The National Bank of Belleville.
Peoples National Bank

Beloit..
Do.
Bonner Springs.
Burlingame
Burlington
Do
Burr Oak
Caney
Cedar Vale.'!!!!!
Do
Centralia
Chanute
Cherokee
Cherryvale
Clay Center
Do
Clifton
Coffeyville
Do
Coldwater.
Columbus
Concordia
Conway Springs..,
Cotton wood Falls.
Do
Council Grove
Delphos
Dlghten
Dodge City
Edmond
Edna
El Dorado
Do
ElkCIty
Ellsworth
Emporia.
Do
Englewood
Eureka
Do
Do
Formosa
Fort Leavenworth.
Fort Scott
Fowler......
Galena
Garden City
Do
Garnett
Gaylord
Girard
Glasco
Goff
Goodland
Do
Great Bend
Do
Greensburg
Gypsum
Hamilton
Harper....
Hartford
Havensville
Hays City
Herington..
...
Hiawatha..
Highland
Hillsboro.Hoislngton
Holton.
Horton
Howard
Do
Hoxie
Humboldt..
Hutchlnson.
Do

First National Bank
German National Bank of
Northern Kansas.
First National Bank
do
Fanners National Bank
Peoples National B a n k . . . . . . .
Jewell County National Bank.
Caney Valley National Bank..
Home National Bank
Cedar Vale National Bank
Dosbaugh National Bank
First National Bank
do.
.do.
Montgomery County National
Bank.
First National Bank
,
Peoples National Bank
First National Bank
Condon National Bank
First National Bank
,
Cold water National Bank
First National Bank
..do.
..do.
Chase County National Bank..
Exchange National Bank
Council Grove National Bank.
First National Bank
do.
National Bank of Commerce.
First National Bank
do.
El Dorado National Bank
Farmers <c Merchants National
f
Bank.
First National Bank
Central National Bank
Citizens National
,
Emporia National
,
First National
Citizens National
.
First National
Home National
First National
,
Army National
Citizens National.. ,
First National
.-...,
Galena National
,
First National...........
Garden City National
National Bank of Commerce...
First National
do
.do.
....do
Farmers National
•
First National.
-.
Citizens National
First National
Farmers National
Gypsum Valley National
.
First National
The National Bank of Harper.
Hartford National
First National,
.do.
.do.
..do.
..do.
.do.
....do
....do
do.
do.
Howard National
First National.-.
Humboldt National...
Commercial National.
First National

Transit
number.

205

FEDERAL RESEBVE BULLETIN.

AUGUST 1,191ft.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

List of member banks which have joined the collection system
of the Federal reserve bante—Continued.

DISTRICT No. 10—Continued.

DISTRICT No. 10—Continued.

City or town.
KANSAS—continued.
Independence
Do
Do
Iola
Jewell City
Junction City
Do
Kansas City
Do
Kensington
Kingman
Kingsley
Kiowa
LaHarpe
Larned
Lawrence
,

go

Do
Leavenworth
Do
Do
Lebanon
LeRoy
Liberal
Lincoln
Lfndsborg.
Logan
Longton
Lucas
Luray
Lyndon
Lyons
Madison
Manhattan......
Do
Mankato
Marlon
...
Marysville......
Mayetta
Meade
Medicine Lodge.
Minneapolis
Do
Moline
Do
Mount H o p e . . . .
Natoma
Neodesha
Do
Ness City
Do
Newton
Do
Norcatur..
Norton
..
Nortonville.....
Oakley
Oberlin...
Do
Olathe
Osborne
Do...:
Do....
Ottawa
.....
Do
Overbrook
Paola
_ Do
Parsons
Peabody
Phillipsburg
Pittsburg
Do
Do
Plainvffle....
Pleasanton...
Prairie View.
Platte
Sabetha......
St. John
Do




Name of bank.

Citizens National
Commercial National.
First National
Northrup National
First National
Central National
First National
Commercial National.
Peoples National
First National
do.
The National Bank of Kingsley.
First National
First National Bank
Moffett Bros. National Bank.,
Lawrence National Bank
Merchants National Bank
Watkins National Bank
First National Bank
Leavenworth National Bank..
Manufacturers National Bank,
First National Bank
do,
.do.
Farmers National Bank.
First National Bank
do.
Home National Bank.
First National Bank.,
do
.do.
Lyons National Bank.
First National Bank..
do.
Union National Bank
Mankato National Bank.
Marion National B a n k . . .
First National Bank
do
..do.
.do.
Citizens National Bank
Minneapolis National Bank.
First National Bank
Moline National Bank
First National Bank
dO

';

.do.
Neodesha National Bank....
Citizens National Bank
The National Bank of Ness City
First National Bank
Midland National Bank
First National Bank
.do.
.do.
.do.
Farmers National Bank...
Oberlin National Bank....
First National Bank
Exchange National Bank.
Farmers National Bank...
First National
do.
Peoples National
First National
Miami County National.
Peoples National
First National
do.....
..do.
.do.
National Bank of Pittsburg.. _
Pittsburg National Bank of
Commerce.
First National
do
National Bank of.,
do
First National....
St. John National.

Transit
number.

City or town.
KANSAS—continued.
St. Marys..
Salina
Do
Scott City.
Sedan
Seneci
ieca.
Do
Smith Center.
Solomon
Spearville....*.
Stafford
Sterling
Stockton
Do
Syracuse
Tbayer
Topeka
Do
Do
Toronto
Troy
Victoria
Wamego
Washington...
Do
Waverly
Wellington....
Do
Wetmore
White City...
Wichita
Do
Do
Do
Winfield

go
Do

MISSOURI.

Adrian
Albany
Burlington Junction.
Cameron
Cartersville
Carthage
Do
Do
Excelsior Springs
Fairview
Golden City
Do.
Grant City
Harrison ville
Independence
Joplin
Do
Do
Kansas City..

go

.

Do
Do
Do
Do
Do
Do
Do
Do

Do
Do
King City,.
Do
Lamar
Lathrop...Liberty^.
Marys ville
Neosho
Nevada
•
Do
North Kansas City..
Plattsburg

Name of bank.

First National
Farmers National
National Bank of America..
First National
.do.
Ao
National Bank of..
First National
Solomon National..
First National
Farmers National..
First National
National State
Stockton National.
First National
do.
Central National
Fanners National...
Merchants National.
First National
do.
German National.
First National....
..do.
Washington National
First National
National Bank of Commerce.
Wellington National
First National
.do.
Fourth National
Kansas National
National Bank of Commerce.
Union Stock Yards National.
Cowley County National.....
First National
Winfield National
First National..,
—do
.do.,
.do..
.do..
Carthage National.,
Central National...
First National
.do...
do
Citizens National..,
First National
.do..,
Citizens National..,
First National
do..
Cunningham National
First National
Joplin National
Commonwealth National
Drovers National
First National
Gate City National
Inter-State National
National Reserve
New England National.
Park National
Security National
Southwest National Bank of
Commerce.
Stockyards National
Traders NationalCitizens National.
First National
.do..,
.do.,
..do..
..do..
..do..
do
Thornton National..
National Bank of....
First National

Transit
number.

206

FEDERAL RESERVE BULLETIN.

AUGUST 1,1915,

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

DISTRICT No. lO—Continued.

DISTRICT No. 10—Continued.
Transit
number.

Name of bank.

City or town.

NEBRASKA—continued.

MISS OUBI—continued.

Fullerton
Do
G enoa
Bo
Gering
Do
Gordon

, . . Farmers National
Burnes National
First National
German-American National—
Tootle-Lemon National
First National
do....
do

Pleasant Hill
St.Joseph

go

Do
Do
Sarcoxle
Savannah
Tarkio
Webb City

....

do

Do
Grcoley

•.

National Bank of

Gresham
Hampton

NEBRASKA.

Adams
Ainsworth
Albion
Do
Allen
Alliance
Do
Amherst
Ansley
Arlington
Ashland
Atkinson
Auburn
Do
Aurora
Do
Do
Bancroft
Bayard
Bazile Mills
Beatrice
Do
"
Beemer
Belden
Benedict
Bertrand
Blair
Blue Hill
Bradshaw
Bridgeport
Bursrell

-

.

Broken Bow
Brunswick
Butte
Callaway
Carroll
Central City
Chadron
Chappell
Clarke
Coleridge
Do
Columbus
Do
Do
Craig
frawtoffl
Creighton
Crete
Do
Crofton
David City
Do
Do
Decatur
Dodge
Elgin
Elwood
Emerson
Fairbury
Do

First National
National Bank of
Albion National
First National
do .
Alliance National
First National
do
. . . . do
do
National Bank of.
First National
Carson National
First National
Aurora National
Fidelity National
First National
do
....do
...do
Beatrice National
First National
....do
....do
....do
....do
....do
....do
....do
....do
....do
Custer National
First National
do...
do
do
•
do......
Central City National
First National
. . . . do
. . . . do
Coleridge National
First National....,
Commercial National
First National
German National
First National

,

•Polio plfTT-

Fremont
Do
Do
Do
Friend




Transit
number.

Name of bank.

City or town.

....

...... —

;

Creighton National
City National
First National
First National
Central Nebraska National
City National
First National
do
:
,.
do
:.
do ,
do
do
Fanners & Merchants National.
First National
Commercial National
Farmers & Merchants National.
First National
Fremont National
First National

First National
Fullerton National
First National
Genoa National.
First National
, . Germs National
First National
.do
Grand Island National
First National
do
.do.
.do
d o .
do
Hartington National
Exchange National
First National
. . German National
. . First National
.....do
do
. . . . .do.

.-

.
.
....
•.'

Do
Hastings
Do
„
Do
Havelock..,..
Hayes Center.
Hav SDrintrs
Heminpford
Holdredge.
.do
'
Hooper
Humboldt
National Bank of
Humphrey
First National..
Imperial
„
,i.:.
do
Johnson
.....
do
Do
... German National
Kearney
Central National
Do
:
City National.
Laurel
First National
Do.,..
_
Laurel National
.-.
Leigh
First National
-,-,•......
Lexington
. . . . . Dawson County National
Do
First National
........
Litchfield
. . . . First National.
Lincoln
Central N a t i o n a l . . . . . . . . . . . . .
Do
City National...-.
Do
First National...... _
•
Do
National Bank of Commerce ;
Loomis
First National
LoupCity.
...i.do...
Lynch
• . . , ; . : . . . .do...
do
Madison
Farmers National
Do
First National
Do
Madison National
Marquette
. . . . First National
...
McCook
Citizens National
Do
First National
Do
McCook National
Minden
First National
Do
Minden Exchange National
Mitchell
First National
Morrill
do.
Naper
....do......:
Nebraska City
Merchants National
Do
Nebraska City National
Do
, . Otoe County National
Neligh National
Neligh
First National
Newman Grove
Citizens National
Norfolk
Norfolk National.
Do
First National
North Bend
..do
North Platte
Oakland
Farmers & Merchants National.
Do
. . . , First National
Omaha...
City National
Do
Corn Exchange National
Do..
First National
Do
Merchants National
Do
Nebraska National
Do
Omaha National
•
Do
United States National
First National
O'Neill
Do
" " . . O'Neill National
First National
Ord
..do
Osceola
....do
Oshkosh
....do...
Pender
„

AUGUST l f 1915.

207

FEDERAL RESERVE BULLETIN.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

DISTRICT No. 10—Continued.

DISTRICT No. 10—Continued.

City or town.

Transit
number.

Name of bank.

NEBRASKA—continued.
Pilger.,
Plainview..
:....
Plattsraouth
Randolph.
Do.
Rushville
St. Edward
Do
;.
Schuyler
Do
Scottsbluff.
Do
.....;..
Scribner
--•...
Seward
.*
Do
Shelby
„
Sidney
South Omaha
Do
Do
Spe n c e r . . . . . . . . . . . . . . —
Stanton...."..............
Do
Stromsburg
Stuart
-.-..
Syracuse..
Tecumseh
Do.....
Tekamah
Tilden
Do...
Trenton.
University Place.
Utica
Valentine..........'.'...'.:
Wahoo
Do
Wakefield
Do
Walthill
Do
Wausa
Do
Wayne.
Do..
Weeping Water
Do
.
West Point
Do
Wllber
Wilcox
Winnebago
Wisner
Do
Wood River
Wymore.
Wynet
York
Do
...

Name of bank.

OKLAHOMA—continued.
Farmers National..
First National.....
....do
....do
....do
Security National
Stockmen's National
First National
Smith National
First National.
Schuyler National
First National
Scottsbluff National..
First National
do.
Jones National.... 1..
First National..
do
Live Stock National.
Packers National
Stockyards National.
First National
do.
Stanton National.
First National....
•do
..do.
Citizens National....
Tecumseh National.
First National
.do.
Tilden National.,
First National...
.do.
.do.
.do.
.do.
Saunders County National.
Farmers National
.
First National
do.
Walthill National.....
Commercial National..
First National
Citizens National
First National.
City N a t i o n a l . . . . . . . . .
First National.
.do.
West Point National.
National Bank of
First National
do
"..
Citizens National
.
First National
.do.
.-do.
City National
First National.

N E W MEXICO.

Cimarron....
Clayton
Farmington.,
Do
Las Vegas....
Do
Raton
Do
Santa Fe

First N a t i o n a l . : . . . . . . . . . . .
do
do..
-....,
San Juan County National....,
First National
San Miguel National
,
First National
National Bank of New Mexico.
First National;

Ada...
Do......
Adding ton..
Afton*.
Alex........
Allen

First National
M. & P. N a t i o n a l . . . . . . . . . . . . .
First National
do.




City or town.

-...do

....do..-:.

....

Altus
Do
Alva
Anadarko....
Do
Apache
,
Arcadia
,
Arapaho
Ardmore
Do
Do
,
Bartlesville.,
Do
Do
Beggs
Do
Berwyn
Bixby.
Blackwell...
Blair
Blanchard...
Blue Jacket.
Bovnton
Braggs.
Bram&n...
Bristow
Do
Broken Arrow.
Do
Buffalo
Calvin.
. Do
Carmen
Cashion
.
Centralia
Chandler
Do
Checotah
Do
Do
Chelsea
Cherokee
Do
Claremore...
Do
Cleveland...
Do
Chickasha...
Do
Do
Do
Clinton
Do
Collinsville..
Do
Comanche...
Cordell.
Do
Do
Coweta
Do
Commerce...
Cushing
Do
CusterCity..
Do
Davis
Dewey......
Do
Drumright..
Duncan
Do
Do
Edmond
Do
El Dorado..
Elk City.....
El Reno
Do
Enid
Do

City National..
First National.
....do.
do
National Bank of.,
First National
.do.
...do
Ardmore National
First National
State National
Bartlesville National.
First National
Union National
Farmers National
First National
do
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
Bristow National.
First National....
Citizens National.
First National....
.do.
....do
Calvin National...
Carmen National.
First National
.do.
....do
-Union National
Commercial National
First National
Peoples National
First National
Alfalfa County National
Farmers National
First National
National Bank of
Cleveland National.
First National
Chickasha National
Citizens National
First National
Oklahoma National
First National
Oklahoma State National
Collinsville National
First National
.do.
Cordell National
Fanners National
State National
First National
National Bank of Commerce.
First National
Farmers National
First National
..do..
Peoples State National..
First National
do
Security National
First National
City National
Duncan National
First National
Citizens National
First National
.do.
do
.........
Citkens National
First National
Enid National
First National.

Transit
number.

208

AUGUST 1,1915.

FEDEBAL BESERVE BULLETIN.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

DISTRICT No. 10—Continued.

DISTRICT No. 10—Continued.

Name of bank.

City or town.
OKLAHOMA—continued.
Do
Do
Fairfax
. Do
Fhirland
Fatrview
Foraker
Fort Gibson
Do
Francis
Frederick
Do
Geary
Gotebo .
Grandfield
Grove
Guthrie
Guymon
Do
Hammon
Harrah
Hartshorne
Haskell
Do
Hastings
Heavener
Do....
Henessey
Do

...

Do
Hobart
Do
Do
Holdenvillo
Do
Do
Hollis
Do
Do
Hominy
Do
Hooker
Hulbert
Hydro
Do
KawCIty
Do

geota

Kiowa
Do
Kingfisher
Do
Konawa
Do
Lahoma
Lawton
Do
Lenapah
Lindsav
Lone Wolfe
Luther
Mangum
Do
Marietta
Do
Marlow
Do
Maud
Maysville
Do
McAUester
Do
Do
McLoud
Medford...
Kiami
Do
Minco
Morris
Mounds

,

Eufaula National
FirstNational
State National
Fairfax National
First National
do
Farmers and Merchants
First National
Citizens National
Farmers National
Francis National
FirstNational
National Bank of Commerce..
FirstNational
do
....
do
First National
do
City National
FirstNational
:.
Farmers National
FirstNational
do
. ...do
Haskell National
National Bank of
FirstNational
State National
Farmers and Merchants
First National
do
Miners National
City National
Farmers and Merchants Nationa
FirstNational
American National
Farmers National
FirstNational
City National
National Bank of Commerce .
State National
FirstNational
National Bank of Commerce..
First National
do
Farmers National
FirstNational
Farmers National
National Bank of
Keota National
First National
Peoples National
FirstNational
Peoples National
First National
Konawa National
FirstNational
City National
First National
Lenapah National
First National
do
do
..Mangum National
..do
FirstNational
Marietta National
National Bank of
State National
First National
Farmers National
First National
American National
.,
City National
First National
.do
.do
.do
Ottawa County National
FirstNational
....do




Transit
number.

Name of bank.

City or town.
OKLAHOMA—continued.

FirstNational
do
American National
Commercial National
Exchange National
First National
Muskogee National
Eastman National
FirstNational
.....do
.....do
Farmers National
First National
Commercial National
First National
Do
Nowata National
Do
First National.
Okemah..............
Okemah National
Do
Citizens National,
Okmulgee
....
First National
Do:
American National
Oklahoma City
Farmers National
Do.
Oklahoma Stockyards NaDo...............
tional.
Security N a t i o n a l . . . . . . . . . . . . . .
Do
State National. .-...•
Do
.Western National
DO
.......:.-.
Oktaha
.- First National
do
Olustee.......
do
Owasso
Mountain View
Muldrow
Muskogee
Do.
Do
Do
Do
Newkirk
Do
New Wilson
Noble
Norman.
Do.

National Bank of Commerce...
Pauls Valley National
American National
Citizens National...
First National
Arkansas Valley National
. . . . . . . FirstNational
Pawnee National.
FirstNational
......
Farmers National..
;
..•
. . . Germania National
Farmers National
„•_•
First National
do
National Bank of Commerce...
Do
First National
Poteau
National Bank of
Do
First National
Prague
Prague National
First National
Pry or Creek...,
Chickasha National
Purcell
Union National
Do
First National
Quinton
Ralston
Ringling
...do
Farmers and Mechanics NaRoff............
tional.
1
!
First National
Do
....do
....do
;
Rush Springs
do
'
'
Citizens National
Sallisaw
Merchants National
Do
American National
Sapulpa
First National
Do
Do
Do
Pawhuska
Do.....
Do
Pawnee
Do
Do
Perry
PoncaCity
Do....
Pond Creek
Porter

Do
Soiling
Sentinel . .
Shattuck
Shawnee
Do
Do
Skiatock
Do
Snyder
Spiro
Stillwater

....do
Beckham County National
First National
....do
. . . . ....do
Shattuck National
National Bank of Commerce...
Shawnee National
State National
First National
Oklahoma National
First National
1

do

Transit
number.

209

FEDERAL RESERVE BULLETIN.

AUGUST 1,1915.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

List of member banks which have joined the collection system
of the Federal reserve banks—Continued.

DISTRICT No. 10—Continued.

DISTRICT No. 10—Continued.

City or town.

Name of bank.

OKLAHOMA—continued.
Stillwater.,...
Stigler
DO

Stilwell
Stonewall
Stratford
Stroud
Do
Stuart
Sulphur
Tahlequah....
Do
Talihina
Taloga
Tecumseh
Do
Do
Temple
:
Thomas
Tonkawa
Texhoma
Tulsa
Do
Do
Do
Do
Do
...
Tyrone
Verden
Do
Vian
Vinita
Do
Wagoner
:.
Walters
Do
Wanette
Do
Washington...
Watonga
Waukomis....
Waurika
Do
Waynoka
Weatherford..
Do
Webber Falls.
Weleetka
Wellston
WestvUle
Wetumka
Do
Wewoka
Wilburton....
Woodward....
Wynnewood..
Do
Yale
Do
Yukon
Do

Buffalo
Do
Cheyenne
Do
Do
Codv
Do
Douglas
Do
Evanston
Do
Green River
Kemmerer
Lander
LaramleCity




Transit
number.

City or town.

Name of bank.

WYOMING—continued.
Stillwater National.
American National.
First National
....do
....do
....do
do
Stroud National.,
First National...
Park National...
Central National.
First National...
....do
do
Farmers National.
First National
Tecumseh National
Temple National
First National
Tonkawa National
First National
American National
Central National
Exchange National
First National
Liberty National.!
National Bank of Commerce.
First National
do..
National Bank of..
First National
.do..
Vinita National.
First National...
do...
Walters National..
First National....
State National....
First National.....
do..
Waukomis National...
First National
Waurika National
First National
.do..
German National.
First National
....do
....do
....do
American National
First National
Farmers National
Latimer County National.
First National
do..
Southern National.
First National
Farmers National..
First National
Yukon National....

First National
Casper National
Stockmans National
Wyoming National
Citizens National
First National
Stock Growers National..
First National
Shoshone National
Douglas National
First National
.
Evanston National
First National
do
.do.
.do. County Nalonalt..
Albany

Laramie City.
Meeteetse
Newcastle
Powell.
Do...
Rawlins..,
Do.
Do
Kock Springs.
Do
Sheridan
Do
Shoshoni
Thermopolis..
Torrington
Worland.

First National..
do.
do.
,do.
Powell National
First National
Rawlins National
Stock Growers National..
First National
Rock Springs National...
First National
Sheridan National
First National
do
do
do
DISTRICT No. I I .

Calcasleu National...
First National
Commercial National.
First National

Lake Charles..
Do
Shreveport
Do.
OKLAHOMA.

Achille
Antlers
Aylesworth
Bochito
Boswell
Caddo
Colbert
Durant
Do
Hugo
Idabel
Kenefic
Kingston
TIshomingo

.

First N a t i o n a l . . . . . . .
Antlers National.....
First National
....do
,...do
Security National
First National
Durant National
First National
....do
....do
....do
....do
Tishomingo National..

TEXAS.

Alpine
Arlington
Athens
Canton
Clyde
Coleman
Commerce
Corpus Christl
Dallas
Do
Do
Do
Do
Do
Eagle Lake
Ennls
Do
Floresville
Fort Worth
Do
Do
Do
Do.....
Do
Gainesville
Do.
Galveston.
Garland
Glen Rose
Gonzales
Granbury
Do
Granger
Hempstead

First National
Citizens National
First National
....do
....do.
Coleman National.
First National
Corpus Christl National
American Exchange National,
City National
-.
First State
Merchants National
National Bank of Commerce..
Security National
First National
Citizens National
Ennis National
City National
American National.
Farmers & Mechanics National.
First National
Fort Worth National
Stockyards National
Western National
First National...
Lindsay National
First National...
Citizens National.
First National
Farmers National
City National
First National
do
Farmers National

Transit
number.

210

FEDERAL RESERVE BULLETIN,

AUGUST 1,1915.

List of member banks which have joined the collection system List of member banks which have joined the collection system
of the Federal reserve banks—Continued.
of the Federal reserve banks—Continued.
DISTRICT No. 12—Continued.

DISTRICT No. 11—Continued.
Name of bank.

City or town.

Name of bank.

City or town.
CALIFORNIA—continued.

TEXAS—continued.
Hillsboro
Houston
Do...
Do
Do
Jacksonville
KarnesCity
Kemp
Marshall
McKinney - . . . „ ,
Do
Memphis
Mexia.
Moore!
Mount Calm
Mount Pleasant
Ochiltree
Omaha
Paris
„ Do
Pecos
San Antonio
Do
San Marcos
SanSaba
Sealy
Sherman
Sonora
Sulphur Springs
Taylor
Troup
Weatherford
Do...
Wichita Falls....
Wills Point
Whitney

Transit
number.

•.,.
,

,
,

Citizens National
First National
Houston National Exchange...
Lumbermans National
National Bank of Commerce...
First National
Karnes County National
First National
Marshall National
Collin County National
First National
Hall County National
First National
Moore National
First National
do
.do.
do
City National..
First National,
do.
National Bank of Commerce...
Groos National
First National
do.
Sealy National
Merchants & Planters National.
First National
Taylor National
,
First National
,
Citizens National
,
First National
,
do
Van Zandt County National...
Citizens National
,




IDAHO.

Salmon
Twin Falls...:

Citizens National
, FirstNational

Arlington
Condon
Corvallis
Forest Grove...
Hood River
Junction City.
La Grande
Pendleton.
Do
St. Johns
Sheridan
The Dalles....

Arlington National
Condon National
FirstNational
Forest Grove National.
FirstNational
do.
United States NationalAmerican National
First National
Peninsula National
FirstNational
do
FirstNational.

Tempe National.

CALIFORNIA.

Antioch
Artesia
Claremont
Coachella
Dinuba
Glendora
Healdsburg

Hollywood National.
First National
City National
,
First National
Central National..
Ontario National..
National Bank of..
First National
do
,
.do.
National Bank of D. O. Mills..,
Bank of California N. A
Seaboard National
Wells Fargo Nevada National..
Union National:
Santa Barbara County National
FirstNational
.do.,
do
do
do
National Bank of.
FirstNational

Murray.

DISTRICT No. 12.

Tempe..

Los Angeles (Hollywood
Station).
Inglewood
Long Beach
,
Mountain View
Oakland..
Ontario
Orange
Redlands
Richmond
Rio Vista
K
Sacramento
San FTancisco
Do
Do
San Luis Obispo
Santa Barbara
South Pasadena
Torrance
Tulare
Vacaville
Visalia
Do
YubaCity

First National.
,do.
Claremont National
First National
United States NationalFirst National
Healdsburg National....

WASHINGTON.

Port Angeles..
Reardon
Rosalia
Snohomish....
Tacoma

Citizens National
Reardon National
Whitman County National..
FirstNational
National Bank of

Transit
number.

AOGUST 1,1015.

FEDERAL BESERVE BULLETIN.

211

INFORMAL RULINGS OF THE BOARD.
Below are reproduced letters sent out from
time to time over the signatures of the officers
of the Federal Reserve Board, which contain
information believed to be of general interest
to Federal reserve banks and member banks of
the system:

held exempt from the special tax provided for
by section 3 of the act of October 22, 1014.
Duplicates of Capital Stock Certificates.

For tho convenience of the Board will you
kindly have certificates of increase of capital
stock, Form 58, and certificates of decrease
of capital stock, Form 59, made in duplicate,
Annual Election of Directors.
mailing one copy to the Comptroller of tho
By direction-of the Federal Reservo Board, Currency and one to tho Federal Reservo
I transmit outline of a plan relating to the Board.
annual election of directors of Federal reserve
banks, and the procedure to be followed therein, Committee Action on Trustee Applications.
for such comment or suggestion as vou may
For your information there is inclosed copy
see fit to furnish. The proposed plan is as of a letter sent to Federal Reserve Agent
follows:
of the Federal Reservo Bank of
.
(1) The annual election will be fixed for the
(Indosure.J
third Tuesday in November, which in the case
Will you accept recommendation of our
of this year will be the 16th of November, 1915. executive committee on member banks' appli(2) The Federal Reserve Board will issue cations to act as trustee or must they be
instructions for the grouping of banks in each passed upon by full board.
district in groups of one, two, and three, and
designate what groups are to elect directors. Reply:
Recommendation of executive committee
Except in* the case of death or resignation,
there will be only one class A and one class B considered sufficient.
director to be elected in each district each year, Time and Savings Deposits.
to hold office for three years, or in the case of
filling- a vacancy, for the unexpired term of his The Board's attitude in the past has beon
that, where banks receive savings deposits
predecessor.
(3) The returns from the elections of class subject to enforcement of the 60-3ay notice,
A and class B directors will be in and announced and where such right of enforcement was defiDecember 1, or as soon thereafter as possible, nitely made known to the depositors in the
and at the same time the Federal Reserve way indicated, the deposits in question are
Board will announce the name of the class C subject to 5 per cent reservo. TJbat appears
to be the case with the deposits described by
director named by it to fill the vacancy.
(4) The Federal Reserve Board will notify you.
Of course, if "the depositor is led to believe
the Federal reserve banks to have a meeting
for the organization of its board of directors by advertisement or printed rule" that he can
and the election of officers at the first conveni- in fact get his money without notice, tho deent date within the first 15 days of January, posit does not fall within the intent of tho
regulation. Nevertheless, it is true that,
1916.
under the Board's ruling, banks are allo%ved
to pay money to depositors without exacting
Application of Internal-Revenue Tax.
the enforcement of tho notice. In other
Under a ruling by the Solicitor of Internal words, the notice is merely waived as a matter
Revenue, dated February 15, 1915, all docu- of courtesy; and the definite understanding is
ments, instruments, and things mentioned in that it may be applied at any time. Otherschedule A of the act approved October 22, wise, the deposits are in reality demand de1914, when issued by the Federal reserve posits.
banks, are subject to the tax imposed by that
act. A copy of the act is inclosed, and your Composition of Executive Committee.
attention is directed to schedule A, appearing
The Board recently received the following
onpages 16 et seq.
This opinion has no connection with the letter:
"A short time before the opening of the
opinion rendered November 28, 1914, by the
you sent us a
Solicitor of Internal Revenue, under which Federal Reserve Bank of
the capital stock of Federal reserve banks is form of by-laws, the adoption of which at the




212

FEDEEAL EESEEVE BULLETIN.

AUGUST I ,

1915.

.
time we thought desirable. In the form sent suggest that advice be made to Goy.
that, in the opinion of the Board, while it may
us the following paragraph appeared:
"'There shall be an executive committee be desirable for the banks not to close their
consisting of the governor, the Federal reserve books until December 31, 1915, no objection
agent, and one or more directors chosen from should be raised should the Federal reserve
banks desire to close their books on June 30,
classes A o r B ' * * *
"From its reading it would be inferred that with a view to conforming to banking custom
a class C director was not at any time ex- in the district."
pected to serve as a third member of the
executive committee. I understand, how- Eligibility of Small State Banks.
ever, that in several of the banks class C
In view of the provision of section 9 of the
directors have the same standing and privi- Federal reserve act which requires that "'No.
leges as to serving on the executive committee applying bank shall be admitted to memberas do classes A and B.
ship in a Federal reserve bank unless it pos" Now since all our directors of classes A and sesses a paid-up unimpaired capital sufficient
B have served as members of that committee, to entitle it to become a national banking assowe request that you inform us if there is any ciation in the place where it is situated, under
reason why a class C director should not assume the provisions of the national banking act,"
the responsibilities connected with service it appears that the Board will be compelled to
on our executive committee as a third member. refuse membership to the -——— — bank,
unless it should increase its capital stock to
Reply was sent as follows:
4
* Your letter of July 10, respecting the com- $200,000, which is the minimum for a national
. No way
position of the executive committee of your bank in a city the size of
board, has been received and duly considered suggests itself oy which the Board cojiild admit
this bank with its present capitalization
by the Federal Reserve Board.
" I am instructed to say that the board
sees no reason why your board should not, if Eligibility of Building and Loan Associations.
it chooses, amend its by-laws in such a way
The Board,fully appreciates the vaiue of the
as to permit a class C director to serve as a building and loan association, and recognizes
third member of the executive committee,"
it as having a distinct and important place in
the financial field. At the present time, howDate of Closing Books.
ever, there seems to be considerable doubt
With reference to your letter of July 13 whether building and loan associations would
regarding the closing of books as of June 30, be held to be banks within the meaning of the
1915, you are advised that the Board's chief Federal reserve act. Assuming that they are
examiner has submitted the following memo- not, it would appear that such associations
randum, which appears to cover the question would not be eligible for membership in the
raised:
Federal reserve bank of any district where the
"A number of institutions have closed out required capital has been provided through
their current earnings and expense accounts subscriptions made by banks. No doubt you
and established a net balance under the head- are aware that mortgages held by building and
ing 'Profit and lo^s account/ This was done loan associations when liquidated by monthly
in line with the general custom of banking payments extending over a period of years,
institutions to close their accounts on June 30 would not be eligible for rediscount at a Federal
and December 31 of each year,
reserve bank.
" I t would appear that Mr. Elliott is of the
The changes in the conditions of membership
opinion that it would be better to defer the which you suggest would require a modificaclosing out of accounts until the end of the tion of the Federal reserve act, which, of course,
calendar year.
is not feasible just now, Congress not being in
"Personally, I believe that the question is session, even if all other concutions were favorone of policy, and it would be better to have able.
uniform practice among the Federal reserve
banks. At the same time, in case the banks
prefer the first-mentioned method, there is Mule and Cattle Paper.
no good reason why they should not be perNotes made by mule and cattle dealers should
mitted to do so, so long as monthly reports be classed as mercantile rather than agricul
are made to the Board as to expenses and tural paper. We take it that a note made by a
earnings on the forms prescribed. Would dealer in agricultural implements would not be




AUGUST 1,1915.

FEDERAL RESERVE BULLETIN.

regarded as agricultural paper, although the
implements themselves are used for agricultural purposes, just as mules are. In fact,
agricultural implements are used less frequently off the farm than are mules, which animals are often used in cities, by contractors,
and for war purposes. We can see no reason,
however, why a note made by a farmer in payment, or part payment, for a mule to be used in
farm work should not be classed as agricultural paper, but dealers in mules and cattle are
merely jobbers in merchandise, and as they
generally have a mercantile rating their paper
is classed as mercantile paper in the ordinary
acceptation of the term. There seems to be no
reason why they should be given the benefit of
six months' maturities, particularly when such
action would reduce your lines of long-time
paper open to those engaged in purely agricultural pursuits.
Interpretation of Regulation B as to Borrower's Statements.

In three cases, specifically enumerated, the
regulation permits waiving as to statements of
the borrower's financial condition, but it is
expressly stipulated, however, that the applying bank "shall certify to these conditions on
the application blank m a manner to be designated by the respective Federal reserve banks."
It seems clear that the Federal reserve banks
have full option as to discounting or declining
to discount any paper offered them, but nothing in the regulation requires a member bank
to keep on file a borrower's financial statement
relating to paper offered for discount. In
certain cases it is provided that the Federal
reserve bank can not accept such paper for
discount unless statements are on file with the
member bank, and in the three cases above
enumerated the option is given Federal reserve
banks of rediscounting paper even where a
borrower's statement is not on file in the member bank.
Quoting again from Paragraph III of the
regulation—*
" I t is recommended that every member
bank maintain a file which shall contain original signed statements of the financial condition of borrowers, or true copies thereof, etc."
"Member banks shall certify in their letters
of application for rediscount whether the
paper offered for rediscount is depositor's or
purchased paper, or paper rediscounted for
other member banks, and whether statements
are on file. When it does not appear that such
statements are on file, except as hereinafter




213

provided, * * * the Federal reserve bank
shall satisfy itself as to the eligibility of the
paper offered for rediscount, and member banks
will be expected to use such statement forms,
identifying stamps, etc., as may be prescribed
by the respective Federal reserve banks."
From this it would appear that the option
in respect to waiving the requirement that a
borrower's financial statement shall be on file
rests with the member bank.
Rediscounting for Nonmember Banks.

Your letter of July 21, asking as to the rediscount with a Federal reserve bank of notes held
by a bank not a member of the system, is
received.
The question, which you raise, has already
had the consideration of the Board in connection with the request for an interpretation of
that part of section 19 of the Federal reserve
act which reads as follows:
No member bank shall act as the medium
or agent of a nonmember bank in applying for
or receiving discounts from a Federal reserve
bank under the provisions of this act except by
permission of the Federal Reserve Board.
Assuming that the paper offered by a member bank for rediscount is eligible under the
regulations prescribed by the Board, it would
be necessary in each case for the officers of the
Federal reserve bank to determine whether
or not the proceeds of such discount are to be
used for the purpose of making a loan to a nonmember bank. If the money thus borrowed
is to be re-lent to a nonmember bank, rediscount
should not be accepted without the permission
of the Federal Reserve Board. If, on the other
hand, a member bank had in good faith acquired from a nonmember bank by rediscount
notes which are eligible under the regulations
of the Board for rediscount with the Federal
reserve bank, and such notes were held as a part
of the assets of the member bank, there would
seem to be no objection to the Federal reserve
bank's accepting such rediscounts, provided the
officers are satisfied that the transaction is a
bonafidetransaction and that the member bank
did not extend accommodation to the nonmember bank with a view of rediscounting notes
so acquired with the Federal reserve bank.
This is one of the cases which must be left
very largely to the judgment and discretion
of the Federal reserve hank officers; and a
determination must be reached by them on the
facts in each case.

AUGUST 1,1915,

FEDERAL RESERVE BULLETIN.

214

DISTRICT No. 8.

Trustee Powers.

Trustee, executor, administrator, and registrar of stocks

and bonds:
.
Applications from the following banks for
Farmers National
permission to act under section 11 (k) of the Trustee, executor, andBank, Glasgow, Ky.
administrator:
First National Bank, Versailles, Mo.
Federal reserve act have been approved since
the July issue of the Bulletin, as follows:
DISTRICT NO, 10.
DISTRICT NO, 1.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Yale National Bank, New Haven, Conn.
Northampton National Bank, Northampton, Mass.
Trustee and registrar of stocks and bonds:
Citizens National Bank, Newport, N. H.
Wolfeboro National Bank, Wolfeboro, N. H.
DISTRICT No. 2.

Begistrar of stocks and bonds:
American Exchange National Bank, New York City.
Irving National Bank, New York City.
DISTRICT No. 3.

Registrar of stocks and bonds:
Third National Bank, Scranton, Pa.
Trustee, executor, administrator, and registrar of stocks
and bonds:
Annville National Bank, Annville, Pa.
First National Bank, Huntingdon, Pa.
First National Bank, Johnstown, Pa.
•First National Bank, Lansdale, Pa.
First National Bank, Newville, Pa.
Southwark National Bank, Philadelphia, Pa.
National Bank of Chester County, West Chester, Pa.
Trustee, executor, and administrator:
Jenkintown National Bank, Jenkintown, Pa.
DISTRICT NO. 4.

Trustee and registrar of stocks and bonds:
Ohio National Bank, Columbus, Ohio.
Trustee:
National Exchange Bank, Steubenville, Ohio.
Citizens National Bank, Urbana, Ohio.
DISTRICT NO. 5.

Trustee, executor, administrator, and registrar of stocks
and bonds:
American National Bank, Roanoke, Va.

Trustee, executor, administrator, and registrar of stocks
and bonds: .
Fremont County National Bank, Canon City, Colo.
First National Bank, Colorado Springs, Colo.
Trustee, executor, and administrator:
First National Bank, Neosho, Mo.
First National Bank, Lyons, Nebr.
DISTRICT N O , 11.

Trustee and executor:
Citizens National Bank, Abilene, Tex.
Trustee, executor, and registrar of stocks and bonds:
First National Bank, Port Arthur, Tex.
Sealy National Bank, Sealy, Tex.
DISTRICT NO. 12.

Registrar of stocks and bonds:
Central National Bank, Oakland, Cal.
Trustee, executor, and administrator:
First National Bank, Mount Vernon, AVash.
Trustee, executor, administrator, and registrar of stocks
and bonds.
Vancouver National Bank, Vancouver, Wash.

Discount Rates.
Discount rates of each Federal reserve bank in effect
1915.

July 28,

Maturities of
over 60
to 90
days,
inclusive.

Agricultural and
live-stock
paper
over 90
days.

?

5
5
5
5
5
5
5
5
5
5
5
6

Bank.

Date of
last
change
of rate.

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

July 3
June 25
...do....
Feb. 6
June 25
Apr, 30
Jan. 23
June 25
May 18
June 18
Feb. 4
June 25

MaturiMaturi- ties of
ties of over JO
10 days days to
and 30 days,
less. inclusive.
3
3
3

3"
3"

.

1
i
%
I
t
i
l
t
I
I
i

Maturities of
over 30
to 60
days,
inclusive.

4£

4
4
4
4
4
4

i!

•?

4£
4|

DISTRICT NO. 7.

Authorized rate of acceptances, 2 to 4 per cent.
Trustee, executor, and administrator:
On March 10 the Federal Reserve Board fixed the folFarmers National Bank, Wilkinson, Ind.
lowing rates for rediscounts between Federal reserve
Trustee, executor, administrator, and registrar of stocks banks: 3J per cent for maturities of 30 days or less; 4 per
and bonds:
cent for maturities of over 30 days to 90 days, inclusive.
Franklin National Bank, Franklin, Ind.
On July 22 the Federal Reserve Board approved a rate
First National Bank, Fonda, Iowa.
of 3£ per cent for rediscount of trade acceptances at the
First National Bank, Rochester, Mich.
Federal Reserve Bank of New York.




ACIGUST 1, 1915.

FEDERAL RESERVE BULLETIN.

215

CIRCULARS AND REGULATIONS.
The circulars and regulations given below amount of such notes to be retired less a ratable proportion
were issued by the Board since the July issue of the amount of money standing to its credit in the gold
redemption fund with the Treasurer of the United States.
of the Bulletin:
REGULATION O, SERIES OF 1915.

WASHINGTON, July 6, 1915.
REGULATIONS TOR THE GUIDANCE OF FEDERAL RESERVE
AGENTS IN THE MATTER OF ISSUANCE AND REDEMPTION
OF FEDERAL RESERVE NOTES.

1. Federal reserve agents in making requisitions for
Federal reserve notes to meet applications of Federal
reserve banks, shall use form 45.
2. A Federal reserve bank in making application for an
issue of Federal reserve notes shall accompany the application with a tender of the requisite collateral, UBing for
this purpose form BD 21-1.
3. The Federal reserve agent shall receipt for all collateral accepted by him as fulfilling the requirements of
sections 13 and 16 of the Federal reserve act and the
regulations and instructions of the Federal Reserve Board
made pursuant thereto, using for this purpose the appropriate form (either BD 21-2 or BD 22-2), and shall
promptly notify the Federal Reserve Board of the colateral accepted, using for this, purpose the appropriate
form (either BD 21-3 or BD 22-3); and shall, furthermore,
report to the Federal Reserve Board each day all notea
issued to and withdrawn by said bank, using form FRA 5.
4. Upon receipt of the said collateral and upon being
satisfied that the bank has the required gold reserve to
protect its notes, and has, furthermore, taken appropriate
steps to transmit to the Treasurer of the United States
the requisite gold redemption fund, at present fixed at
5 per cent of the net amount of notes issued to the bank,
lees the amount of gold and lawful money in the hands
of the Federal reserve agent, the latter will issue Federal
reserve notes to said bank within such limits as the Federal Reserve Board may have fixed, and immediately
notify the Federal Reserve Board of said issue on form
supplied for this purpose.
5. If at any time the Federal reserve agent deems it
necessary to require changes in either the amount or the
character of collateral deposited to secure notes, he shall,
acting for the Federal Reserve Board, call upon the Federal reserve bank for additional or new collateral to be
added to or substituted for that which is deemed unsatisfactory; issuing receipt therefor on the appropriate form
(either BD 21-2 or BD 22-2), and shall notify the Federal
Reserve Board on the appropriate form (either BD 21-3 or
BD22-3).
6. A Federal reserve bank may reduce its liability on
account of outstanding Federal reserve notes by depositing
with the Federal reserve agent its-own notes, or gold, gold
certificates, or lawful money of the United States to the




In either case a proportionate amount of the collateral
deposited by the bank shall be returned to it by the Federal reserve agent. Forme BD 28-1, 2, 3, will bo used.
7. A Federal reserve bank may, through its Federal
reserve agent, exchange notes that are unfit for circulation, or may exchange notes of one denomination for those
of another. Every such transaction shall bo reported to
the Federal Reserve Board by the Federal reserve agent
in daily report of transactions in Federal reserve notes.
8. Federal reserve notes unfit for circulation accumulated by any Federal reserve agent shall be assorted,
strapped, canceled, and bundled in the manner now proscribed by the Treasury Department for unfit United
States currency which is remitted by subtreasuriea to
Washington, and the same standard of fitness shall be imposed. These shall be shipped to the Comptroller of the
Currency, Division of Federal Reserve Note Redemption,
Washington, D. C. Special instructions accompanied by
"dummies" exhibiting the methods to be employed will
be furnished upon request to each Federal reserve agent.
NOTE.—The Board expects later to issue instructions
under which notes which are soiled, but otherwise fit for
circulation, may be forwarded to Washington for laundering and renovating.
9. Whenever Federal reserve noteB issued by one Federal reserve bank are received by another Federal reserve
bank, they shall, if fit for circulation, be immediately returned to the issuing bank for credit or redemption. However, if such notes are unfit for circulation, the issuing bank
shall be advised of the amount and the notes shall be delivered to the local Federal reserve agent, who will forward
them to the Treasury Department in the manner provided
in paragraph 8 for the treatment of unfit; notes returned by
the issuing bank. Upon receipt of such notice the bank of
issue may make a demand upon the local Federal reserve
agent for credit or for the issue of new notes to replace the
unfit notes forwarded to the department for destruction.
All transactions in these respects must be reported immediately to the Federal Reserve Board.
10. If at any time the gold reserve required by law to be
held by a Federal reserve bank against Federal reserve
notes issued to it falls below 40 per cent (including therein
the gold redemption fund required to be maintained in the
Treasury) the Federal reserve agent shall at once notify the
Federal Reserve Board, and thereupon until otherwise
directed by the Federal Reserve Board, a graduated tax
upon such deficiency as provided in section 11 of the Federal reserve act shall be established and shall be computed
for the present as follows:
When reserves fall below 40 per cent but are in excess
of 32J per cent, the tax upon the deficiency shall be at the
rate of 1 per cent per annum.

216

FEDERAL EESEBVE BULLETIN,

When reserves fall below 32J per cent but are in excess
of 30 per cent, the tax upon the entire deficiency below 40
per cent shall be at the rate of 2* per cent per annum.
When reserves fall below 30 per cent but exceed 27$ per
cent, the tax upon the entire deficiency below 40 per cent
shall be at the rate of 4 per cent per annum; and so on,
increasing at the rate of 1J per cent with each reduction in
reserve amounting to 2£ per cent or any fraction thereof.
This is otherwise expressed in the following table:
Penalty tax on defiGold reserves against Federal reserve notes:
ciency in reserves.
40 per cent (legal minimum, including redemption
fund)
Nopenalty,
37J up to 40per cent
1 percent.
35 up to 37£ per cent
1 percent.
32J up to 35 per cent
1 percent.
30 up to 32^ per cent
2J per cent.
27J up to 30 per cent
4 percent.
25up to 27£per cent
5$ percent.
22J up to 25 per cent
7 percent,
20 up to 22J per cent
8fc per cent.
17| up to 20 per cent
10 percent.
15 up to 17J per cent
11J per cent.
12J up to 15 per cent
13 percent.
10 up to 121 per cent
14$ per cent.
71 up to 10 per cent
16 percent.
5 up to 71 per cent
17J per cent.
2} up to 5 per cent
19 percent.
0to21percent
2O4p e rcent.

11. At the close of business on the last day of each month
each Federal reserve agent shall furnish the Federal Reserve Board with a consolidated statement of—
(a) All transactions in Federal reserve notes during the
month, showing for each denomination the number of
notes on hand at the beginning of the month.
(b) The number received from the Comptroller of the
Currency during the month, the number returned by the
Federal reserve bank, and the number issued to the
Federal reserve bank.
(c) The number returned during the month to the Comptroller of the Currency for cancellation and destruction,
(d) The number on hand at the close of the month.
Agents are required to show in addition:
(e) The total amount of notes in circulation at the end
of the month,
(/) The total amount of each kind of money of the
United States in hand for retirement of notes.
(g) The amounts transmitted during the month to the
Treasurer, upon direction of the Federal Reserve Board,
at the request of the Secretary of the Treasury,
(h) The amount of gold on deposit, with the Treasurer
of the United States at the end of the month, for the redemption of outstanding notes.
(i) The amount of gold reserve hold by the bank, other
than the gold redemption fund deposited with the Treasurer of the United States.
The information in paragraphs t to % inclusive, also is
required to be furnished by telegram immediately at the
close of business on the last day of each month for inclu-




AUGUST 1,1915.

sion in the Treasury Department's circulation statement.
A consolidation of each month's reports from all the
Federal reserve agents will be furnished by the Federal
Reserve Board to the Secretary of the Treasury.
12. The Federal Reserve Board will maintain a continuous record of:
(a) The aggregate amounts of orders for notes transmitted by the Comptroller of the Currency for the engraving and printing of Federal reserve notes.
(b) Each delivery of Federal reserve notes to Federal
reserve agents.
(c) The stock of notes on hand in the Treasury of the
United States available for shipment.
(d) The amounts of Federal reserve notes issued through
Federal reserve agents to their respective Federal reserve
banks.
(e) The amount of notes fit and unfit for circulation
which are in the possession of each Federal reserve agent.
(/) The amount of notes unfit for circulation which have
been returned to the Comptroller of the Currency and
destroyed,
CHARLES S. HAMUN,
Governor.
H. PARKER WILLIS,

Secretary.

CIRCULAR NO. 16, SERIES OF 1915.

WASHINGTON, July 15, 1915,
BILLS OF EXCHANGE DRAWN AGAINST SALES OP GOODS
AND ACCEPTED BY PURCHASERS, HEREINAFTER REFERRED TO AS "TRADE ACCEPTANCES."

By Regulation B, Series of 1915, the Board has prescribed the conditions upon which commercial paper
may be rediscounted with Federal reserve banks, and,
by Regulation J, Series of 1915, rules have been promulgated covering operations in bankers' acceptances.
The attached regulation is to deal with "trade acceptances" as a distinct class of commercial paper, for which
the Board is ready to approve the establishment of a discount rate somewhat lower than that applicable to other
commercial paper.
These trade acceptances are more particularly defined
in the appended Regulation P, Series of 1915, and in
promulgating it the Board expresses the belief that it will
considerably enlarge the scope of service of Federal
reserve banks and, incidentally, assist in developing a
class of "double-name" paper, which has shown itself
in so many countries a desirable form of investment and an
important factor in modern commercial banking systems.
CHARLES S. HAMLIN,
Governor,
H. PARKER WILLIS,

Secretary.

AUGUST l f 1915.

FEDERAL RESEBVE BULLETIN.

REGULATION P, SERIES OP 1915.

WASHINGTON, July 15,1915.
BILLS OF EXCHANGE DRAWN AGAINST SALES OP GOODS AND
ACCEPTED BY PURCHASERS, HEREINAFTER REFERRED TO
AS "TRADE ACCEPTANCES."
I.

In this regulation the term "trade acceptance" is defined as a bill of exchange of the character hereinafter
described, drawn to order, having a definite maturity and
payable in dollars in the United States, the obligation to
pay which has been accepted by an acknowledgment,
written or stamped, and signed across the face of the
instrument by the company, firm, corporation, or person
upon whom it is drawn; such agreement to be to the effect
that the acceptor will pay at maturity, according to its
tenor, such draft or bill without qualifying conditions.

n.
CHARACTER OF PAPER ELIGIBLE.

A trade acceptance to be eligible for rediscount, under
section 13, with a Federal reserve bank at the rate to be
established for trade acceptances—
(a) Must be indorsed by a member bank, accompanied
by waiver of demand notice and protest.
(b) Must have a maturity at the time of discount of not
more than 90 days.
(c) Must be accepted by the purchaser of goods sold to
him by the drawer of the bill, and the bill must
have been drawn against indebtedness expressly
incurred by the acceptor in the purchase of such
goods.
HI.

217

Conference of Chief Bank Examiners.

There was held on July 12-14 at the offico of
the Comptroller of the Currency the first general conference of chief national bank examiners, of whom there are 12—one for each of
the 12 Federal reserve districts.
The following chief examiners were present:
Jas. D. Brennan, Boston.
Chas. Starek, New York.
E. I. Johnson, Philadelphia.
Silas H. L. Cooper, Cleveland.
Thos. P. Howard, Richmond.
C. H. Abbott, Atlanta.
Sherrill Smith, Chicago.
C. E. French, St. Louis.
Peter M. Kerst, Minneapolis.
J. D. Rising, Kansas City.
J. C. Chidsey, Dallas.
The only absentee was Chief Examiner
Gatch, of the San Francisco district.
The chief examiners were directed to cooperate as closely as possible with the Federal
reserve banks of their respective districts in
matters calculated to increase the safety and
promote the welfare of the member banks.
The chief examiners were directed, upon their
return to their respective districts, to call a
conference of the examiners of each district
with a view to informing them individually of
the matters discussed at the Washington conference.

METHOD OF CERTIFYING ELIGIBILITY.

A trade acceptance must bear on its face or be accompanied by evidence in form satisfactory to the Federal
reserve bank that it was drawn by the Beller of the goods
on the purchaser of such goods. Such evidence may consist of a certificate on or accompanying the acceptance, to
the following effect: "The obligation of the acceptor of this
bill arises out of the purchase of goods from the drawer."
Such certificate may be accepted by the Federal reserve
bank aa sufficient evidence; provided, however, that the
Federal reserve bank, in its discretion, may inquire into
the exact nature of the transaction underlying the acceptance.
CHARLES S. HAMLIN, Governor.
H. PARKER WILLIS, Secretary,




Purchase of Government Bonds*

The Federal Reserve Board has reached the
conclusion that Government bonds, bought by
Federal reserve banks prior to December 31,
1915, shall not count as a part of the sum of
$25,000,000, which the Federal Reserve Board
may, in its discretion, under the provisions of
Section 18 of the Federal reserve act, annually
require Federal reserve banks to purchase from
the member banks whose applications for sale
of their bonds have been filed with the Treasurer of the United States.

218

FEDERAL BESEBVE BULLETIN.

AUGUST 1,1915.

LAW DEPARTMENT.
Right of State Banks and Trust Companies to Subscribe for Stock in a Federal Reserve Bank.

Since the publication of the last issue of the
Bulletin, it has been learned that Louisiana
passed a law hi 1914 authorizing State banks,
savings banks, and trust companies to subscribe
to stock in a Federal reserve bank. A revised
list of those States which have enacted laws
expressly authorizing any State bank to become a member bank follows:
Idaho, Iowa, Kentucky, Louisiana, Maine,
Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Dakota, Ohio, Oregon,
South Carolina, South Dakota, Texas, Utah,
Virginia, Washington.
In the following States, though there has
been no express enabling legislation, the State
authorities have ruled that any State bank
may subscribe for stock in a Federal reserve
bank:
Alabama, Arizona, Arkansas, California,
Delaware, Georgia, Illinois, Indiana, Kansas,
Maryland, North Carolina, Tennessee, Vermont, West Virginia, and Wisconsin.
The State authorites have ruled in New
Mexico and Rhode Island that trust companies,
as distinct from State banks, are eligible to
subscribe to stock in a Federal reserve bank.
The following opinions of counsel for the
Federal Reserve Board have been authorized
for publication by the-Board'since'the last
edition of the Bulletin:
Surrender of Stock by a Member Bank Reducing Its
Surplus.

The Federal reserve act does not require that a member
bank necessarily surrender a proportionate part of its stock
in the Federal reserve bank of which it is a member when
it reduces its surplus. 'Such surrender is left to the dis.
cretion of the Federal reserve bank, subject to the approval of the Federal Reserve Board.
JUNE 17,

1915.

SIR: The question has been raised whether a
member bank which reduces its surplus is required by law to surrender a proportionate
amount of the stock held by it in the Federal




reserve bank of its district, or whether such
Federal reserve bank may, at its option, permit
the stock representing 6 per cent of such decrease in surplus of a member bank to remain
outstanding.
The Federal reserve act provides hi section 2
that—
Every national banking association * * *
shall be required * *. * to subscribe to the
capital stock of such Federal reserve bank in a
sum equal to 6 per cent of the paid-up capital
stock and surplus of such bank.
Section 5, in providing for the admission of
a bank after the organization of the system,
contains a provision that such a bank—
Must subscribe for an amount of the capital
stock of the Federal reserve bank equal to 6
per cent of the paid-up capital stock and surplus of said applicant bank.
It is to be noted that in both of these sections
an applying bank must subscribe for an amount
equal to 6 per cent of its capital stock and surplus.
Section 5 further provides that—
"When a member bank increases its capital
stock or surplus it shall thereupon subscribe for
an additional amount of capital stock,"
It is thus clear that when a member bank
increases either its capital stock or its surplus
it must subscribe for additional stock. This
conclusion is corroborated by the requirement
that the outstanding capital stock of a Federal
reserve bank " shall be increased from time to
time as member banks increase their capital
stock and surplus/'
In dealing with the question of reduction in
the capital stock of a Federal reserve bank,
however, the act contains no mandatory provision for decrease of such stock on account of
reduction hi the surplus of a member bank.
The specific language used in section 5 in reference to this subject is as follows:
The capital stock of each Federal reserve
bank shall be divided into shares of $100 each.
The outstanding capital stock shall be increased
from time to time as member banks increase
their capital stock and surplus or as additional

AUGUST l, 1915.

FEDERAL RESERVE BULLETIN.

219

banks become members, and may be decreased ! Rediscount of Drafts Payable on Condition.
as member banks reduce their capital stock or
A draft made "payable on arrival of car" is nonnegotisurplus or cease to be members.
able, not being payable at a doterminablo future time,
and is therefore ineligible for rediscount by a Federal
This section further provides that—
reservo bank.
When a member bank reduces its capital
FEBRUARY 23, 1915.
stock it shall surrender a proportionate amount
SIR: The question has been raised whether
of its holdings in the capital stock of said Federal reserve bank.
drafts "payable on arrival of car" are eligible
A distinction is therefore made between the for rediscount by Federal reserve banks.
Section 13 of tho Federal reservo act proreduction of the capital stock and the reducvides that any Federal reserve bank may distion of the surplus of a member,bank.
An examination of the bill as it passed the count "notes, drafts, and bills of exchange
1
House shows that stock of Federal reserve banks arising out of actual commercial transactions, *
was to be increased only on account of an in- and, though this language does not in express
crease in the number of member banks, or on terms demand that the paper be negotiable, it
account of an increase in the capital stock of must bo so construed because of tho whole
member banks, and was to be reduced on ac- spirit and purpose of the act.
The act evidently contemplates that title to
count of decrease in the number of member
eligible paper must pass with it and that in
banks or a decrease in the capital stock of such
event of nonpayment a Federal reserve bank
banks.
In the Senate this section was amended so as must be able to sue in its own name on such
to require an increase of the capital stock of paper. To secure these rights the paper must
Federal reserve banks whenever member banks be negotiable, otherwise the transfer would conincreased either their capital stock or surplus, stitute a mere assignment and the holder would
but this amendment did not specifically require have to sue in the name of the payee. It must
a Federal reserve bank to reduce its capital also be noted that if the paper is not negotiable
stock whenever the surplus of a member bank a Federal reserve bank rediscounting it would
is reduced. That part of the section above hold it subject to the equities existing between
quoted which makes such decrease discretionary the original parties to the bill. The same limiwith the Federal reserve bank was added by tations would be imposed on the Federal reserve
the Senate committee and was adopted in the agent holding such paper as security for Federal reserve notes. The natural construction
conference agreement.
I t seems reasonable to assume, therefore, that of the act, therefore, is that paper must be negoCongress contemplated that a reduction in the tiable in order to be eligible for rediscount.
The question here presented is whether a
surplus of a member bank might be merely
draft "payable on arrival of car" is negotiable.
temporary and accordingly vested a discretion
in the Federal reserve bank to cancel a propor- A draft to be negotiable must be an unconditionate amount of the capital stock held by a tional order to pay to the bearer or order a defimember bank the surplus of which is reduced, nite sum of money on demand or at a deteror to permit such stock to remain outstanding. minable future time. The drafts referred to
I am, therefore, of the opinion that the Fed- above do not seem to comply with these condieral reserve banks may, with the approval of tions. Should the car fail to arrive, for any
cause whatever, the draft would not be paythe Federal Reserve Board, legally exercise this
able. The event or contingency upon which
discretion.
payment depends must be one which must necRespectfully,
essarily happen in the natural course of the
M. C. ELLIOTT, Counsel. laws of nature. (Weidler & Carpenter v.
To Hon. CHARLES S. HAMLIN,
Kauffman, 14 Ohio, 455.)
Governor Federal Beserve Board.




220

FEDERAL RESERVE BULLETIN.

The negotiable instruments law, section 4,
which is based on settled decisions, provides
that—
An instrument is payable at a determinable
future time, within the meaning of this act,
which is expressed to be payable—
(3) On or at a fixed period after the occurrence of a specific event, which is certain to
happen, though the time of happening be uncertain.
In the case of Colehan v. Cooke (Willes, 393),
a note payable ten days after the death of the
maker's father was held good on the ground
that the father must die at some time and payment, therefore, was not dependent on the
happening of an event which might fail to
occur. But in the case under consideration—
that is, drafts "payable on arrival of car"—
there is no certainty whatever that the car
will arrive, and such paper would probably be
held to be nonnegotiable on two grounds:
First, that it is not an unconditional promise
to pay; and second, that the time of payment
is not fixed and certain, because of the fact
that the event by which it is determinable
need not necessarily ever occur.
In all the cases examined on this point there
seems to be only one exception to this general
rule, that the note or bill must be payable
at all events. That case is an English one
decided some time ago. (Andrews v. Franklin,
1 Strange, 24.) A note payable two months
after a certain ship was paid off was held
negotiable even though the event was not
necessarily bound to occur. The court in
this case, however, admitted that paying off
the ship was a contingency which would
ordinarily make the note nonnegotiable, but
went on to explain that because this ship was
a Government one, the payment was a Government obligation which must be performed.
But even on this ground, the case has always
been discredited by courts in which it has
been cited.
It seems, therefore, that a note or draft
"payable on arrival of car/7 which may or
may not arrive, would very probably be held




ADGDSX 1,1915.

nonnegotiable, both at common law and under
the Negotiable Instruments Law.
Respectfully,
M. C, ELLIOTT, Counsel.
To Hon. C S, HAMLIN,

Governor Federal Reserve Board.
Payment of Dividends by Federal Reserve Banks.
Federal reserve banks should not at this time undertake
to pay semiannual dividends or to carry any profits to
surplus account before the end of the fiscal year.
JlTNE 25, 1915.

SIR: The question has been raised whether a
Federal reserve bank may declare a dividend
as of June 30, at the rate of 6 per cent per
annum, for the time elapsed between November
16, 1914, and June 30, 1915.
It appears from the provisions of section 7
of the Federal reserve act that Congress intended that dividends should be paid annually
and not in semiannual instalments. It is conceivable that a bank might show a surplus as
the result of the first six months' operations and
a loss for the last six months. If, therefore, a
dividend should be declared at the end of six
months an impairment of capital might be
shown according to the books at the end of the
year which would not have resulted except for
the payment of the dividend.
After the dividend has been paid and the
required amount has been carried to the surplus
account, the balance of earnings resulting from
the year's operations is payable to the United
States as a franchise tax. The amount of
this tax can not be determined until the end of
the year. Banks should, therefore, carry all
net earnings in the account of Undivided
Profits until the end of the fiscal year and
should then declare a dividend, and the balance,
if any, should be paid half to the United States
as a franchise tax and half into the surplus
fund, as provided by section 7.
When the banks have been in operation for
a sufficient length of time to enable them to
estimate with reasonable accuracy their annual
earnings and expenses, the Board might, in case

AUGUST 1, 1915.

FEDEEAL RESERVE BULLETIN.

the Undivided Profit Account shows a sufficient
amount to cover all contingencies, authorize
the payment of the dividend in semiannual
instalments, but until that time the letter of
the statute should be followed strictly in order
to avoid probable complications.
Respectfully,
M. C. ELLIOTT,

Counsel.
To Hon. C. S. HAMLIN,

Governor, Federal Reserve Board,
Interpretation of Regulation F» Series 1915.
The term "taxable property" as used in Regulation
F - I - ( c ) - 3 7 Series 1915, includes franchises in cases
where such franchises are actually taxed upon the valuation set forth in the municipality's return of taxable
property.
That part of section 14 which provides that "revenue
bonds * * * with a maturity from date of purchase
of not exceeding six months" may be purchased, contemplates that such bonds might at the date of issue have a
maturity of longer than six months. Bonds are eligible
for purchase under this Bection if at the time of issue provision is made for the establishment of a redemption
fund which will be sufficient and available for the payment of the bonds at maturity, provided, of course, that
at the time of purchase the bonds have not more than six
months to run.
Certified copies of opinions of counsel on municipal
issues may be used by Federal reserve banks under the
provisions of this regulation irrespective of which bank
obtained the original opinion.
FEBRUARY 9,

1915.

SIR: The following questions have been
referred to this office by the Board for an
opinion:
(1) Under regulations F-(I)-(c)-3, does
the term "taxable property" include franchises where such franchises are actually taxed
upon the valuation set forth in the city's return
of taxable property %
(2) Under section 14 of the Federal reserve
act, subsection (6) where the Federal reserve
bank is authorized to "buy and sell * * *
bilk, notes, revenue bonds and warrants with
a maturity from date of purchase of not
exceeding six months/' does this language
permit the purchase of bonds having long
maturities but which are acquired by a Federal




221

reserve bank within six months of the date of
maturity; and if so, under what circumstances
may such purchases be made ?
In answer to question (1), regulation F
reads in part as follows:
I. A. Federal reserve bank may purchase
such warrants as are issued by a municipality. * * *
(c) 3. Whose net funded indebtedness does
not exceed ten per centum of the valuation of
its taxable property, to bo ascertained by the
last preceding valuation of property for the
assessment of taxes.
This provision is not contained in the
statute but is a matter of regulation. The
language to be construed is accordingly that of
the Board, and it is within its discretion to
determine whether or not the term "taxable
property" shall include franchises.
The courts have generally construed a franchise to be property subject to taxation and so
giving the language "taxable property" its
ordinary interpretation it would seem clear
that franchises which are actually taxed and
which are included in the city's return of taxable property should be taken into consideration in determining the net funded indebtedness as provided in Regulation F*
In the case of the West River Bridge Company v. Dix et al (6 How. (U. S.), 507-533),
the court said:
A franchise is property, and nothing more:
it is incorporeal property, and is so defined
by Justice Blackstone when treating in his
second volume. (Ch. 3, p. 20) of the Rights of
Things.
In the case of Society for Savings v. Coite (6
Wall (U. S.), 594-606), the court holds that
the franchise of a private corporation is a legitimate subject of taxation. This doctrine is
affirmed in the case of Provident Institution v.
Massachusetts (6 Wall (U, &), 611-623), and
again in the case of Hamilton Company v.
Massachusetts (6 Wall (U. S.), 632-638).
In answer to the second inquiry submitted,
the act provides that "revenue bonds * * *
with a maturity from date of purchase of not
exceeding sLx months" may be purchased.
The provision that such bonds must mature

222

FEDERAL RESERVE BULLETIN.

within six months from the "date of purchase"
clearly indicates that Congress contemplated
that such bonds might have a maturity of
longer than six months at the date of issue.
It is true that the term "revenue bonds" is
sometimes construed to refer to short-term
bonds or warrants issued by municipalities to
defray expenses for a short period prior to the
collection of taxes.
The word "revenue," however, does not of
itself limit the term of a bond to that of a fixed
maximum maturity but instead refers to the
character or nature of the bond rather than to
the time of its maturity.
In other words, giving the language its ordinary interpretation, it would seem merely to
indicate bonds of any maturity, payment of
which is guaranteed out of the collection of
taxes or assured revenues.
The act specifically provides that such bonds
must be issued in anticipation of the collection
of taxes or assured revenues, but does not
prescribe how long in advance of collection of
such taxes the bonds may be issued. The
provisions of the act would seem to be complied with if at the time of issue provision is
made for the establishment of a redemption
or sinking fund which will be sufficient and
available for the payment of the bonds at
maturity and at the time of their purchase
they may be said, by reason of such sinking
fund, to be self-liquidating at the expiration of
six months.
It i3, of course, understood that all other
provisions of regulation F, series 1915, must
be complied with before such bonds may be
purchased.
In this connection I beg to call attention to
Paragraph VI, regulation F, which is as follows:
"Opinion of recognized counsel on municipal
issues or of the regularly appointed counsel of
the municipality as to the legality of the issue
shall be secured and approved in each case by
counsel for the Federal reserve bank,"
The Board has ruled that where such opinions
have been procured and approved by counsel
for a Federal reserve bank, any other Federal
reserve bank shall be deemed to have complied




AUGUST 1,1915.

with the requirement of this paragraph if it
secures a certified copy of such opinion and
approval.
Respectfully,
(Signed)
M. C. ELLIOTT,
Counsel*
To Hon, CHARLES S, HAMLIN,

Governor Federal Reserve Board.
Interpretation of Clayton Act.
The counsel of the Federal Reserve Board
has prepared the following opinion in answer
to a number of letters received by the Board
and referred to him for consideration which
involve an interpretation of section 8 of the
act approved October 15, 1914, and generally
described as the Clayton Act.
While the provisions of section 8 do not,
under the terms of the act, become operative
until two years from the date of its passage—that is to say, until October 15, 1916—it
appears to be necessary for the banks to obtain rulings on certain questions in order to
arrange for the personnel of their boards of
directors after this time.
The two questions which are the subject of
most of the letters referred to are as follows:
(1) If a director of a national bank having
deposits, capital, surplus, and undivided profits
aggregating more than $5,000,000 is elected at
the annual meeting in January, 1916, may he,
without violating section 8 of the act referred
to, continue to serve until January, 1917, and
at the same time serve as a director of another
national bank ?
(2) Can a director of a State bank or trust
company having deposits, capital, surplus,
and undivided profits aggregating mork than
$5,000,000 serve after October 15, 1916, a3 a
director of another State bank or trust company which is a member of a Federal reserve
bank?
Both of these questions involve a consideration of that part of section 8 of the act referred
to which reads as follows:
That from and after two years from the date
of the approval of this act no person shall at the
same time be a director or other officer or employee of more than one bank, banking associa-

AUGUST 1,1915.

FEDERAL KESEBVE BULLETIN.

tion or trust company, organized or operating
under the laws of the United States, either of
which has deposits, capital, surplus, and undivided profits aggregating more than $5,000,000;
and no private banker or person who is a director in any bank or trust company, organized
and operating under the laws of a State, having
deposits, capital, surplus, and undivided profits
aggregating more than $5,000,000 shall be eligible to be a director in any bank or banking
association organized or operating under the
laws of the United States. The eligibility of a
director, officer or employee under the foregoing provisions shall be determined by the
average amount of deposits, capital, surplus,
and undivided profits as shown in the official
statements of such bank, banking association,
or trust company filed as provided by law during the fiscal year next preceding the date set
for the annual election of directors, and when
a director, officer, or employee has been elected
or selected in' accordance with the provisions
of this act it shall be lawful for him to continue
as such for one year thereafter under said
election or employment.
This act became a law on October 15, 1914.
As above shown, it provides in terms that after
two years from that date (that is to say, Oct.
15,1916) "no person shall at the same time be a
director * * •* of more than one bank * * *
organized or operating under the laws of the
United States, either of which has deposits,
capital, surplus, and undivided profits aggregating more than $5,000,000/' This language
is free from ambiguity and makes it entirely
clear that after October 15, 1916, a person who
-is a director of a bank with aggregate resources
of more than $5,000,000, organized or operating under the laws of the United States or
under the laws of any State, shall be ineligible to serve as a director of any other bank
organized under the laws of the United States.
In determining whether a bank has aggregate
resources of more than $5,000,000, the act
provides that the aggregate amount of deposits
capital, surplus, and undivided profits of such
bank, as shown in the official statement filed
during the fiscal year next preceding the date
set for the annual election of officers, shall be
taken as a basis, and then provides that—
When a director has been elected in accordance with the provisions of this act it shall be




223

lawful for him to continue as such for one year
thereafter under said election or employment.
The obvious purpose of this provision is to
permit a director to serve out his term if the
bank has aggregate resources of less than
85,000,000 at the time of his election but
subsequently the resources are increased to an
amount in excess of §5,000,000.
It has been suggested that by reason of this
provision directors elected in January, 1916,
may continue to serve until January, 1917,
although they would be ineligible if elected after
October 15,1916. It will be observed, however
that the language quoted is "a part of the same
sentence which fixes the time for calculating
the aggregate resources of the bank in order to
determine the eligibility of such director, and
following the ordinary rules of interpretation
of statutes it is necessary to consider the context in order to determine when a director
has been elected in accordance with the provisions of the act.
Considering this sentence as a whole it seems
clear that if a bank has aggregate resources of
more than $5,000,000 on January 1, 1916,
the stockholders are charged with notice that
after October 15, 1916, a director of such bank
will be ineligible to serve on the board of any
other bank organized or operating under the
laws of the United States.
While Congress manifestly intended to give
banks two years from the date of the passage
of the act to adjust the personnel of their
boards of directors in order to conform to the
requirements of the act referred to, it is
equally manifest that it did not intend to
allow more than two years for this purpose and the first question should, in the
opinion of this office, be answered in the
negative.
The determination of the second question
depends upon the construction to be placed
upon the language "organized or operating
under the laws of the United States."
As above shown, a person who is a director
of a national bank, State bank, or trust company having aggregate resources of more than
$5,000,000 is ineligible to serve on the board

224

FEDERAL KESEBVE BULLETIN.

of directors of another bank organized or
operating under the laws of the United States.
State banks and trust companies are organized under the laws of the State in which they
are incorporated and exercise those corporate
powers which are granted them by the laws
of the State, or which are incidental to the
powers thu3 granted. In a certain sense,
therefore, they may be said to be both organized and operating under the laws of the
State. On the other hand, when such banks
become members of the Federal reserve system they subject themselves to certain Federal
laws. For example, they must maintain reserve required by the Federal reserve act; they
are subject to examination and supervision by
Federal authorities, and must conform to
certain laws relating to investment of their
funds. Accordingly, they may be said to
be operating under both State and Federal
law.
Congress has specified certain requirements
to which State banks and trust companies must
conform as a condition of membership in the
Federal reserve system. It is, therefore, necessary to determine whether it was the intention
of Congress, by section 8 of the Clayton Act, to
provide as a further condition of membership
in the Federal reserve system, that the directorates of such banks shall not include any person who is a director of another bank having
aggregate resources of more than $5,000,000.
From an examination of the original bill introduced by Mr. Clayton on April 14, 1914, it




AUGUST 1,1915.

appears that the section above quoted originally read as follows:
That from and after two years from the date
of the approval of this act no person shall at
the same time be a director * * * of more
than one bank * * * organized and operating under the laws of the United States, either
of which has deposits, capital, surplus and undivided profits aggregating $2,500,000
In the amended bill of May 6, 1914, the language " organized and operating under the laws
of the United States" was changed to read "organized or operating under the laws of the
United States" and this language was retained
by the Senate, by the conferees and in the act
as it became a law. The use of the word " o r "
in place of the word lt and" is, therefore, significant, and in order to give it a reasonable meaning it is necessary to conclude that Congress
intended this provision to apply to State banks
and trust companies which, though organized
under State law, operate under the laws of the
United States when they become members of
the Federal reserve system, as well as to national banks which are organized and operate
under the laws of the United States.
In the opinion of this office, therefore, a
person who is a director or other officer of a
bank having aggregate resources of more than
$5,000,000 will be ineligible to serve on the
board of directors of a State bank or trust company which is a member of the Federal reserve
system after October 15, 1916.
Both questions should, accordingly, be answered in the negative.

AUGUST 1, 1915.

GENERAL BUSINESS CONDITIONS.

General business and banking conditions are
described in reports made by Federal reserve
agents for the 12 Federal reserve districts.
Below are given in detail digests of conditions in the various districts substantially as
reported by Federal reserve agents.
DISTRICT NO. 1—BOSTON.

There is little change in this district over last
month. While the business situation, both in
business and financially, is in a healthy condition, there is a general hesitancy, due to the
unsettled conditions produced by the war in
Europe.
Although money continues to accumulate in
the large cities and is freer in the country districts, banks are disinclined to put out money
at the low prevailing rates, the feeling being
that as the crop-moving time approaches there
will be a better demand for money and an improvement in rates. There seems to be a gen.
eral feeling that rates have touched bottom and
that from now on an improvement may be expected. General business, except in a few
lines, is dull, and orders are not coming in as
freely as heretofore. No accumulation of goods
is reported in any of the lines, and the high
price of staples especially in leather and wool^
and the unwillingness of the merchants to
increase their merchandise is responsible, no
doubt, for much of the dullness. This is especially noticeable in the trades using wool
and leather. Business seems to be waiting, but
thereis a feeling of optimism, and it is believed
that from now on an improvement may be expected, though perhaps a very slow one. The
unseasonable weather and the abundance of
rain have no doubt also had their effect. The
summer resorts, both seashore and mountain,
complain of dull business.
Money conditions are about the same as last
month, with perhaps a slight hardening. There
is very little demand for money and rates continue very easy—call money to brokers, 3 per
cent; commercial paper, 3J to 4J per cent;
loans to correspondents, 3£ to 4 per cent; town




225

FEDERAL RESERVE BULLETIN.

notes, 2J to 2£ per cent; bank acceptances, 2\
to 2$ per cent; excess reserve in Boston banks,
$45,974,000, an increase of $10,105,000 over
last month and an increase of $36,008,286 over
the same date last year.
The cotton mill situation in New Bedford
and other fine-goods centers continues good.
On the other hand, the reports from Fall River
are not quite as satisfactory as before and the
cotton mill situation is slightly duller, owing
to the fact that mills hesitate to buy cotton to
any extent, and accumulate goods. The
shoe and leather trade, while reporting fewer
foreign orders, shows a slight improvement in
general. The high price of leather has no
doubt deterred dealers from placing their
usual seasonable orders, but most of the manufacturers feel that the conditions are certain to
improve. The wool and woolen trade is dull.
Here again the high price of wool has been a
deterrent feature. Wool dealers, for the most
part, have made considerable money during
the past season, and are disinclined to replenish
their stock at present prices and the price of
this staple is no doubt affecting the mill situation as well as the goods, and a hand to mouth
policy of buying is the rule.
Imports and exports to July 1 compared
with a year ago are as follows:
Exportsfirstsix months:
1914
1915
Imports first six months:
1914
1915

.
"

$30,282,075
65,792,193
$99,439,188
89,139,744

Building operations up to the 1st of July as
compared with the preceding years are as follows:
Contracts awarded to date, June 30:
1915
1914
1913

$85,111,000
89,212,000
86,174,000

DISTRICT NO. 2—NEW YORK.

Reports from bankers in New York and
northern New Jersey state that crops look
very well and promise large yields, but in
some sections the hay crop will be under average, due to wet weather. The dairy business

226

FEDERAL EESEBVE BULLETIN.

continues good. Some complaints have been
received of slackness in retail trade and unsatisfactory collections. Manufacturing in
steel, leather, and textile lines shows improve"
ment. Great activity continues in the production of supplies for shipment to Europe
Building operations are curtailed and depression is still evident in lumber, foundries, implement works, and silk mills. Strikes that
were referred to a month ago are still on in
southern and northern districts. Deposits
generally are large, but in most sections the
demand for loans is very light.
During June the usual mid-year inventory
time dullness prevailed in New York City.
Improvement in retail trade has been reported recently. Wholesale houses state that
collections are very satisfactory. More active
and firmer markets have developed, largely
from foreign orders, in such lines as steel, coal*
leather, and wool. Purchases of cotton goods
are restricted by the weakness in the price of
raw cotton. Labor is more fully employed
and there are strikes in some branches of the
clothing trade. Real Estate agents report
conditions better than a year ago and improved
over the preceding month. Renting is more
active, especially in the large office buildings.
A comparison of various statistics for June,
1915, with June, 1914, shows the following
changes: Exchanges through the New York
Clearing House, $8,025,481,549, a gain of
$181,278,782; building permits, 37 to cost
83,290,330, an increase of 5 in number and a
decrease of 3103,320 in amount; shares sold
on the New York Stock Exchange, 10,900,000,
an increase of 6,916,000 over a year ago, but
a decrease of 1,821,000 from the preceding
month; transactions in bonds on the exchange
amounted to $57,824,000, an increase of
54,330,000 over a year ago, but a decrease of
$6,800,000 from the preceding month; new
incorporations, $80,091,100, an increase of
$34,089,000; failures, 241, for $2,018,881, a
decrease of 15 in number and $13,508,090 in
amount. Since January 1 exports from the
port are $684,497,674, against $483,485,183;




AUGUST l,

1915,

imports, $488,161,854 against $523,152,001.
The latest compilation of railroad earnings
shows a gain in May, 1915, over May, 1914, of
$1,324,785 gross and $14,619,397 net.
From June 1 to July 18 the New York clearing house banks' loans increased $115,941,000,
deposits increased $163,881,000, and excess
reserves decreased $13,877,000, The market
rates for money have remained easy and practically unchanged since the middle of June.
Bankers7 acceptances command slightly easier
rates of 2tV to 2f per cent and the supply is
lighter. Prime commercial paper is in great
demand, with light offerings at 3 J to 4 per cent
with occasional sales at 3 per cent. The large
import movement of gold practically stopped
when the special deposits were moved from
Ottawa. Sterling and continental bills of exchange declined to new low levels, quotations
for checks touched 4.7625, 5.62}, and 81.50 for
sterling, francs, and marks, respectively. Rates
have been stronger and steadier during the past
week. The London discount rate has increased and is now 5J per cent, as against 2J
per cent on June 1,
DISTRICT NO, 3—PHILADELPHIA.

The most striking feature of the business
situation in this district is the absence of encouraging reports on conditions in Philadelphia, contrasted with the reported improvement in conditions throughout the rest of the
district.
In the Philadelphia vicinity business in
domestic lines is dull and below normai.
Almost no improvement is perceptible ov:r
last month. A spirit of caution and hesitation
exists. The outlook is uncertain, due perhaps to uncertainty regarding the business
future of certain standard industries when the
war shall have been terminated.
In many specialized lines, such as the iron
and steel industry, abnormal conditions continue because of foreign demand. New plants
are being built, new machinery installed, and
several towns are experiencing boom times.
As a result, the number of men out of employ-

AUGUST 1, 1915.

FEDERAL RESERVE BULLETIN.

merit has been greatly reduced, and retail trade
has increased accordingly. The exports of the
port of Philadelphia are increasing, and bank
clearings are higher than for several months
past. Perhaps the best feature of the business
situation in Philadelphia is the shipbuilding
industry, which is operating at full capacity.
In sections of this district outside of Philadelphia business conditions are slowly improving, and some sections are reported as prosperous. Agricultural conditions are generally
favorable, although in some sections where
crops are good prices are low. Manufacturing
lines are improving and are doing relatively
better than retail lines. Railroad shops have
not yet recovered from the industrial depression, although some progress is reported. Increased numbers of loaded freight cars are
moving and a decrease is shown in the number
of idle cars and good order cars. The anthracite coal output is below normal. Machinery,
boiler, and foundry concerns are doing well.
Leather continues strong, especially as to the
heavier grades. Improvement is reported in
most textile lines, although the dyestuffs situation is still critical.
Rates for money are abnormally easy, with
no evidence of any tendency to harden. Most
banks are carrying large excess balances of
unemployed funds, which they are unable to
loan in ways which are satisfactory to them.
The purchase of commercial paper by the
banks is restricted because prime commercial
paper at satisfactory rates is scarce, and new
names of the better grade are not appearing in
the market to any extent. Purchases of paper
are being made at from 3 to 4 per cent, with
the most active market at 3£ per cent. There
is very little demand for either call loans or
time loans with collateral, the rates for both
classes of loans being 3 J to 4 per cent.

227

industry (the most important in* the district)
began to show a change about the middle of
last December, and reached its full force
within the last three or four weeks. The tinplate industry is» especially flourishing, inasmuch as the supply of canned goods was very
quickly exhausted by the war demand. Generally speaking, all steel mills are running
practically full, with order books filled for
several months ahead. Steel men predict
maximum operations for the rest of this year,
and at satisfactory prices. Semifinished and
finished lines have steadily improved in price
until they are now -35 per ton above the lowest
pomt reached during the depression of 1914.
Coke business is much better because of the
starting up of so many furnaces. Coal business is improved somewhat owing to shipment of coal to the lakes for consumption in
the Northwest next winter. Prices still rule
unsatisfactory. The lumber business is far
from normal either in production or price.
The damage done to crops by excessive rains
and floods has not been great, except in the
southern part of the district, where there
may be considerable reduction in the wheat
and tobacco yield.
The mercantile trade has not yet felt the
new impetus to business, but improvement is
noted in seasonable lines, and a distinctly
better feeling prevails both among wholesale
and retail merchants. Manufacturers supplying the building trades report business only
fair.
Continued ease of money is apparent throughout the district. July 1, the usual interest
date for savings accounts, witnessed lighter
withdrawals than other corresponding periods
for several years.
Underlying conditions are healthy, due to the
fact that concerns are not carrying large
stocks, have passed through a period of
DISTRICT NO. 4—CLEVELAND.
enforced liquidation, resulting in putting variThe steel business, both in unfinished prod- ous economies into effect, and altogether there
ucts and finished materials, has made a decided is a marked improvement in the industries
advance since last month's report. This upon which this district depends.




228

FEDERAL EESEEVE BULLETIN,

DISTRICT NO. 5—RICHMOND.

In this district during July wheat and oats
have been harvested at prices which, if lower
than the fancy figures which prevailed last
fall, have permitted substantial profit to the
farmer. Planters who were moved to cut cotton
acreage in favor of these cereals should be
satisfied with the result of the experiment.
Wheat at SI. 10 and oats at 60 cents, both
sold, should look better, certainly at the moment, than cotton awaiting the possibilities
of an unknown future three months distant.
Packers* seasonal truck has brought prices unsatisfactory to the grower, as canners carrying
large stocks from the pack of last year have
entered the market only on their own terms.
Potatoes, heavily overgrown, are finding low
prices.
Cotton, a little late, is in excellent condition,
but softening prices are not comforting to the
planters, who, however, this year will have at
their command better facilities for financing
the crop than heretofore have been offered.
Building undertakings generally are limited to
repair or smaller operations, and related lines
are dull. Retail trade is very quiet, reflecting
both unusual economy practiced by the public
and general midsummer dullness. Coal seems
to be in somewhat better position both with
respect to movement and price. Banks in
tliis district are experiencing a somewhat better
demand for credit for use in meeting usual
seasonal needs for expenses pending maturity
of the larger staple crops.
While this demand is apt to continue during
August and September, it will be well scattered
and its aggregate amount should not be great.
Business viewed as a whole is just about holding a steady position, which probably is all
that can bo expected at this season.

AUGUST 1,1915.

The opening of the Warrior River, affording
cheaper rates of transportation to the Birmingham district and the Gulf, has given an impetus
to trade development in coal, ores, and cement,
and the stiffening in the price of pig iron is
causing an increase of activity in that district.
While the improvement of financial facilities
for handling the crop has somewhat stimulated
trade, forward buying by merchants and the
larger movements of trade appear to be awaiting development as to the disposition and price
of cotton.
Cotton mills are running to full capacity and
a number of new mills are reported under construction. Many of the mills are filled with
rush orders for khaki cloth and tent material.
Building operations throughout the district
continue below normal, but there has been a
considerable improvement during July as compared with preceding months. The railroads
report good passenger travel, with little or no
change in freight traffic.
The Atlanta post office reports a falling off of
5 per cent in receipts for the year ending June
30, 1915, as compared with the year ending
June 30, 1914.
Agricultural prospects are reported exceedingly bright. Cotton is in fine condition, and
the States in this district will produce a remarkably large grain crop. Reports indicate a
70,000,000-bushel increase in corn, wheat, and
oats, with an increase in the rice crop of approximately 5,000,000 bushels.
DISTRICT NO. 7—CHICAGO.

General business conditions in this district
continue to show 3ome signs of improvement.
Distinct improvement is noticeable in various
lines that are benefited by foreign demand.
The war and the uncertainty incident thereto
cause hesitation and caution and are responsible
DISTRICT NO. 6—ATLANTA.
for less noticeable increase in other lines and
Marked conservatism is characteristic in the entire absence of improvement in some. The
commercial and industrial affairs of the Sixth settlement of the strike in the building and
Federal Reserve District, but with an optimis- construction trades at Chicago, the more seatic tone. While there is a tendency to improve- sonable weather conditions, magnificent harment, conditions do not show any material vest prospects, and easy money, all make for
changes as a whole during the month of July. I good basic conditions.




AUGUST 1,1915.

FEDERAL RESERVE BULLETIN.

Noticeable progress, due to orders for crude
and finished products of the furnaces, mills,
and factories, is seen at Gary, South Chicago,
Pullman, Chicago Heights, Moline, Sioux City,
Indianapolis, South Bend, Detroit, and Grand
Eapids. This is due not merely to "war
orders/' but to the demands of railroads and
other interests.
The general merchandise market has shown
improvement, although affected by the delayed
arrival of warm weather.
Commercial paper rates remain at low
figures—3J to 4 per cent.
DISTRICT NO. 8—ST. LOUIS.

There has been little change in general business conditions in this district during the month
of June. The business of wholesale interests
dealing in what may be called the necessities
of life remains below normal, but the volume
of unfilled orders on hand is more nearly normal and is an indication of an improvement
this fall. The manufacturing interests appear
to be in much the same condition as the general jobbing interests, with the exception of
those companies whose product is available for
export where an increased activity is noted.
Failures in this district show an appreciable
falling off for the second quarter of 1915.as
compared to the first quarter.
The rainfall for June was considerably above
the normal, but does not seem to have materially affected agricultural development excepting in the lowlands subject to overflow, where
damage has been reported. Reports indicate
that the wheat crop will be larger than the fiveyear average and the immediate return of seasonable weather would seem to insure a good
harvest. The cool weather and continued rains
in June may have retarded the cotton crop, but
seasonable weather from now on would seem
to insure its favorable development. Reports
indicate a reduction of 12 to 18 per cent in the
cotton acreage in the States within this district. Reports on the corn, oats, and hay
crops indicate that there has been little or no
damage done by the rainy season. Corn, excepting in the overflowed land, has grown rap-




229

idly, and seasonable weather from now on will
allow the necessary cultivation and insure a
successful harvest. The rain in June has caused
the tobacco plants to grow rapidly and indications are that the crop will be coarser than is
desirable. Small-fruit crops appear to have
suffered more damage from rain than the other
agricultural products. The live-stock market
in this district shows the same activity which
was noted in the April and May reports.
There has been little change in banking
conditions in this district. Current rates for
discounts remain below the normal and money
continues plentiful. There is a scarcity of
commercial paper of the best names at a rate
to tempt the bankers.
General business conditions show little change
in the past 30 days. Conditions have not
improved as rapidly as indications would seem
to warrant, and from present appearances
improvement will be slow until after the
harvest.
DISTRICT NO. 9—MINNEAPOLIS.

No important changes have occurred during
the past 30 days, except a gradual strengthening of confidence in the crop outlook, which
has developed a more active demand for money
during the past two weeks. The leading
commercial banks are of the opinion that if the
crops suffer no damage, this demand will become quite active within a very short time,
continuing through August.
From the Great Lakes to the eastern slope
of the Rocky Mountains the condition of the
small grain crop is excellent, with the exception that rye has suffered damage in North
Dakota, and that theie has been some damage
to wheat, due to excessive moisture, on the
heavy soils of the Red River Valley and other
districts. The season has been one of unusual
rainfall but the damage to grain on the heavier
soils due to this cause will be considerably more
than offset by unusually good yields in parts
of the district where a large acreage of grain
has been planted on the higher and lighter
soils. Montana probably never had a better
crop outlook at this season of the year. With

230

FEDEEAL KESEEVE BULLETIN.

the exceptions already noted, the same is true
of North Dakota and Minnesota.
A highly profitable element in the crop
production of the ninth district is hay and
forage, which under normal conditions should
amount to about 25,000,000 tons. This season has been unusually favorable to the heavy
growth of grasses and alfalfa, and the crop
that is now being cut will probably run considerably above the normal yield and will
show an unusually heavy tonnage at good
prices. Minnesota and Wisconsin are the
leading western States in potato production,
normally affording a yield of from 60,000,000
to 65,000,000 bushels. The potato crop shows
an increased acreage this year and is making
an excellent growth, with the prospect of
very heavy yields. July has brought some
break in the continued cool and rainy weather,
with an improvement in corn prospects,
although it is beginning to be realized that
corn wiU not be an average crop this year and
that there is considerable doubt whether a
good deal of it will have opportunity to fully
mature. The agricultural colleges are advising the storing of corn from the 1914 crop
for 1916 planting, fearing that this year's
yield may not have the proper germinating
qualities. A very beneficial effect of the prospect that of a corn crop, only poor to fair, has
been a decided increase of activities on the
part of farmers in constructing silos. Should
August weather prove unfavorable, many
farmers will cut their corn for ensilage and
feed it.
There has been a decrease during the past
month in the amount of idle labor. The
activities in the copper districts of northern
Michigan and Montana have had a beneficial
effect in this respect, and the month has witnessed heavier shipping orders at the northern
Minnesota iron mines, thus improving labor
and business conditions in that district. The
present outlook is for heavy ore shipments for
lower lake ports during the remainder of the
season.
Retail merchandising over the district is
about normal, with collections fair. The




AUGUST 1,1915.

wholesale trade at the large centers is in good
condition. The only lines in which there is
noticeable depression are in lumber, both
wholesale and retail, and certain lines of
manufacturing. Many industrial plants are
showing an increased volume of orders and an
improved activity. The agricultural outlook
over the district is excellent, and the business
situation, generally speaking, is good, although
quiet. The best opinion seems to agree that
if present conditions continue the fall months
will bring a period of very active trade with
considerable prosperity to the entire district.
DISTRICT NO. 10-KANSAS CITY,

Although some sections of district No. 10
have been visited with wind, flood, and other
storm damage while other sections are in need
of rain, yet, as a whole, agricultural and horticultural conditions are about normal. The
harvest yield will be less than last year's figures,
but the record of 1914 was phenomenal. The
wheat harvest is progressing northward, and
is now centered in northern Kansas. Threshing is going on throughout the southern portion
of the district, and the yield reported is a fair
average of quality and quantity.
Corn is doing well; there is a good stand and
every indication points to a bumper crop. The
production of sugar beets in this district is
slightly above normal. The yield in various
sections will range from 12£ to 20 tons per acre,
possibly averaging 15 tons. The milling industry has experienced great activity, and the
financial statements of milling concerns now in
the hands of bankers show large profits. The
live-stock market is active, and excessive rains
have provided splendid pasturage. Grass cattle are already commencing to move, and prices
are firm. During the present month the record
price for 1915 and the highest price ever paid
in the month of July, §10 JO, was quoted on the
Kansas City market. Receipts of hogs at
market centers have been rather light, with result that prices have ranged from strong to
higher. The horse and mule market is very
active, top prices ruling on all marketable
stock.

AUGUST 1,1915.

FEDERAL RESERVE BULLETIN.

The lead and zinc industry is still active,
with prices far above normal, although not as
high as 15 days ago. Coal mining is showing
increased activity by reason of the demand
for thrashing and storage purposes. The oil
industry is quiet by reason of low prices of
raw material and the limited supply accepted
by the pipe lines.
Wholesale and retail trade is normal, with
fair collections. Much building and improvement work is noticeaWe, with many large civic
projects under way.
Banking business is quiet and will probably
continue so until the marketing of the wheat
crop actually commences. Undoubtedly, if
reasonable prices are received for this year's
crops, there will he heavy liquidation during
August and September. In some sections of
the district there is an excess of loanable
funds, bank deposits are increasing, and the
demand for money is negligible. In other portions the demand for money is quite active,
although local bankers are amply able to meet
all requirements. Generally speaking, however, the financial situation prevailing throughout District No. 10 reflects a degree of prosperity heretofore unequaled.

231

force, and within 10 days a very considerable
volume will be coming into the market. First
bales are now everyday occurrences. Great
activity has been displayed during the past
month by various committees laboring for
the establishment of warehouses to take care
of the oncoming cotton crop. A considerable
number of houses are being constructed,
and others are promised by the time cotton is
actually ready for storage. It is anticipated
that very large totals of bales will be held under
warehouse receipt in an effort to save the market from glut and disorganization. The cotton
growers of the district have not heretofore
faced their real problem with so determined
and serious a front. Present advices are to the
effect that the crop in this State will be very
materially reduced.
The live stock interests of the State continue
in most prosperous condition. Relatively high
prices prevail, and throughout the district
pasturage conditions are far above normal.
The lumber industry shows slight improvement; demand has increased somewhat and
prices are a shade better. The oil production
of this district has grown to such a point that
the price for high-grade oil has been cut to
35 cents per barrel, and even a further reduction is anticipated. It is believed, however,
that this may only be temporary, since the
output from the Gushing field in Oklahoma is
now rapidly decreasing.
Member banks report that demand with
them is slightly on the increase, although far
from normal; also deposits are tending to
slump. Many of our reserve city members at
this season last year were heavy borrowers.
This year they report few or no bills payable.
This condition is reflected more or less by the
thinness of demand with us.
General business conditions are improving;
merchants report better sales with more satisfactory liquidations.

DISTRICT NO. 11—DALLAS.
This district is preeminently engaged in
agriculture. The progress of crops, therefore,
is of primary importance.
Dry weather, combined with hot winds, has
tended to cut short the corn over considerable
areas, but spite of this, the earlier forecast of
the bumper corn crop of the State remains true.
The oat crop has been harvested, and barring
considerable deterioration through North Texas
and Oklahoma counties, on account of heavy
rains, the crop is excellent. Wheat has been
almost entirely harvested under favorable conditions. Both oats and wheat are now being
offered freely on the market.
The cotton plant has made satisfactory
progress in most sections, particularly in the DISTRICT NO. 12—SAN FRANCISCO.
In this district there is general abundance of
southeast and central sections. Already in
crops in great variety. There has already been
South Texas the picking of cotton has begun in




232

FEDEKAL EESEEVE BULLETIN.

much harvesting and other crops have been
satisfactorily progressing to maturity. It is
reported that the greatest cereal crop in the
history of Oregon, Washington, and Idaho is
now being gathered. In citrus fruits Valencia
oranges are moving at highly satisfactory
prices. Fresh fruits, melons, and vegetables
are in large supply.
Ordinarily such conditions would ensure
prosperity; war conditions, however, introduce
elements of surprising uncertainty. The lack
of bottoms for exports hampers the marketing
of the cereal crops; warehouses are filling, and
it is probable that grain will move slowly from
growers' hands. It seems reasonable to expect
that delayed marketing may have a tendency
to correspondingly delay trade activity.
The prune crop is reported as abundant and
good, with contract prices about 33$ per cent
less than last year. Canners buying of such
fruits as peaches and apricots are naturally proportioned to orders in hand, which are reported
to be approximately 33$ per cent less than at
this time last year. It is said that prices as
low as S6 per ton are being paid for peaches, as
against SIS per ton last year. It is asserted
that more than the usual proportion of fruit
will be dried, and some may even be thrown
away. It is clear that large crops will not
mean uniformly profitable results. A fair
average, however, is had by high prices for
some products offsetting low prices for others




AUGUST 1,

As a whole it is undeniable that this district is
adding steadily and largely to its wealth.
More hopeful expressions are received as to
lumber, although there seems little tangible
reason. One confident expression was based
upon the larger activity in steel which, it was
said, is always a precursor of increased activity
in lumber.
Chinese capitalists are said to be laying
plans for a trans-Pacific line of steamers, and
it has been suggested that they may buy the
Pacific Mail steamers. More ships would be a
great advantage to the Pacific coast. Nevertheless, during the first six months of 1915
exports from San Francisco totaled $39,000,000
as against $24,000,000 for the same period in
1914, imports increasing from §5,400,000 to
$7,800,000.
Bank clearings give a rough measure of trade
activity. Total clearings for the four leading
Pacific coast cities during the first six months
of this year have been approximately 7 per
cent less than for the first six months of 1914.
This moderate curtailment of business is further evidenced by the considerable increase of
idle funds in both national and State banks
throughout the district. During this fall, as
is usual each fall, there will, of course, be a
considerable increase in the aggregate of loans,
but there seems reason to believe that the
available means of the banks of this district
are such as to readily meet the requirements.

AUGUST l,

1915.

FEDERAL RESERVE BULLETIN.

Movement of Principal Assets and Liabilities of
the Federal Reserve Banks.
The following diagrams illustrate the movement of the principal assets and liabilities of
the reserve banks during the present calendar
year. The uppermost curve in the first group
of diagrams indicates the growth since January
8 of net deposits, and shows an increase from
about 267.4 millions to 297.6 millions during
the period to July 16* Notable gains of deposits
are indicated for the second and third weeks
in January, also for the second and fourth
weeks in June. The latter increases were, however, offset in part by a considerable decrease
shown for the first week in July.
The lowest curve, indicating the movement
of the total gold reserve, is shown to rise during
the first week in February,. when the second
installment of member banks7 payments on
account of capital was due, also during the
entire month of June and the first week in July.
The latter rise is due in part to the gain in
deposits, noted for the same period, and in
addition to the liquidation of investments in
municipal warrants which fell due about that
time. Between January 8 and July 16 the
gold reserve of the system shows a gain of 28.7
millions from 232.5 to 261.2 million dollars.
The cash reserve curve runs practically
parallel to the gold reserve curve and shows a
gain during the same period of 37.2 millions
from 250.5 to 287.7 million dollars.
The second group of curves presents the
movement of funds invested by the banks in
commercial paper, bankers' acceptances, municipal warrants, and United States bonds.
These curves, except the lowest, indicate the
cumulative totals of the several classes of
investments. The lowest curve shows the
weekly movement of the item "Commercial
paper on hand," while the uppermost curve
shows the movement of all four classes of
investments taken together.




233

The amount of commercial paper held by the
banks (exclusive of acceptances) increased
from 9.9 millions on January 8 to 28.7 on
July 16. The amounts held show a practically
continuous increase. The amount of acceptances held has increased rapidly since February
19, when for the first time this type of paper is
shown among the assets of the banks in the
weekly statement. The largest holdings are
reported for April 16. The subsequent week
marks the beginning of a decline which, while
not continuous, resulted in a reduction of these
holdings to less than 9 millions, shown in the
July 16 statement.
The sharp break in the two upper curves of
the second group after May 21 is due chiefly to
the liquidation of funds invested in warrants,
a large portion of which fell due during the last
week of May. The weekly statement for May
21 shows a maximum total of 28.5 million of this
class of paper. Four weeks later the total had
declined to almost one-third (9.7 million) and
on July 16 stood at 14.4 millions.
The investments in United States bonds,
mainly of the 3 per cent type, show a slow
though steady growth, the largest purchases
dating back to the early part of the year.
- The movement of all funds invested in
commercial paper, acceptances, and public
securities shows a practically unbroken upward
trend up to May 28 when a total of $64,000,000
is shown which constituted about 142 per cent
of the paid-in capital of the banks. On July 16
the total of the earning funds had decreased to
about $60,000,000, which is only about 110 per
cent of the total paid-in capital reported on
that date.
The third diagram illustrates the comparative
growth of individual deposits in the several
classes of banks during the period 1900 to 1914.
The figures on which this diagram is based are
those shown in the annual reports of the
Comptroller of the Currency.

COMMERCIAL PAPER, BANK ACCEPTANCES AND INVESTMENTS SINCE BEGINNING OF CALENDAR YEAR




APR.

MAY

1 (8 25, J. 9 jo 23 3Q
1
JUNE
JULY

AUGUST 1,1915.




235

FEDERAL RESERVE BULLETIN.

//

/Z

/3

236

FEDERAL BESEEVE BULLETIN.

ADGUST 1,1915.

GOLD IMPORTS AND EXPORTS.
The Bureau of Foreign and Domestic Commerce in the Department of Commerce has furnished the following advance tables showing the imports and exports of gold, classified under
the head of ore, bullion, and coin, also the total gold imports by countries for thefiscalyears
ending June 30, 1913 to 1915.
Imports and exports of gold in ore, bullion, and coin, fiscal year ending June SO,1915.
Coin,
Ore and base
bullion-

Maine and New Hampshire.
Maryland
New York
Philadelphia
Porto Rico
Virginia
Florida
Mobile
New Orleans
Arizona
Eagle Pass
El Paso
Laredo
Alaska
San Francisco
Southern California
Washington
Buffalo
Dakota
Michigan
St. Lawrence
Vermont

Total gold.

Bullion, refined.

Ounces (troy).

United
States*

399,836
412,421
36,795
145,359
34,631
148
168,756
6,334
3,676,759
4,421,526
141,676
1,487,915

$874

$55

468,141
2

9,417,136
*
36

16,278,052
250
1,351

504

$750
4,254
116,392

10,000

80,077
20,010
50,512

Foreign.

$50,000
•4,859,498

24,000

1,028,691
"i," 372* 750'

248,920

401,493
26
100,438

4,111,207
8,166,562
447
1,987,090

300

790
1374,830
97,242

12,200
7,697,208
2,008,500

345
83,980,927
3,053

641,585

11,054,434

Total.,

51,452
68,634

1,812,522

35,812,701

101,091,873

23,609,747,

287

5,798

490

1327,616

6,774,876

1,558

2,346

38,354

277,276

1,739
13,937
79,461
108
25
i 471,399
6,085
15
1,051

151,505
400,000
32,367,302
131,200
30,000
3,000
40,750
68,855
180,987
816,478
3,000

•'89*936'
25,342 I

17,520,570

481,060 f
80,909 I

498,000

$1,679
54,254
30,671,078
286
1,351
32
114,077
20,010
466,442
1,441,112
36 795
1,518,109
34 631
4,201,285
25,881,230
7,331
6,642,909
4,502 435
141 676
1,500,460
74,328,520
3,053
171,568,755

EXPORTS—DOMESTIC,

Maine and New Hampshire.
Massachusetts
,
New York
New Orleans
El Paso
Alaska
Hawaii
San Francisco
Washington
Buffalo
Duluth and Superior.
Michigan
St. Lawrence

11,979

Vermont.
Total.,

291,303

894,059

157,303
400,000
39,142 668
131 200
30,000
42,912
40,750
68,855
493,*392
2,537,015
5,091
627,517

35,129
81,111
1,639,426
2,091
517
9,700,117
81,913,617
103,769
103 I 7,803,207
20,417
18,401,708

91,729,482
7,823,727

124,536,901

143,229,912

EXPOETS—FOREIGN.

Maine and New Hampshire.
Massachusetts
Now York
Hawaii
Buffalo
Duluth and Superior.
St. Lawrence
Vermont

50
10,606
2,933,186
10
20,660
' 20
18,550
154
2,994,236

Total.,




i United States mint or assay office bars.

50
10,606
2,944,186

2,994,236

20,660
18,550
154

AUGUST 1,1915.

237

FEDERAL EESEBVE BULLETIN.

Imports and exports of gold by countries during the 12 months mding June 30,1913,1914, and 1915.
1913

France

1914

1915

311,552,926

51,423,251
495,234
10,020,731
25,261,153
3,100,604
20,517,203
1,203,860
4,266,401
14,845
1,817,444
813,578
254,721

Total..

$1,195,284
14,176
2,565,423
38,319,111
2,490,450
11,116,942
3,044,005
6,342,955
480,040
559,554
410,719

1,965,270
110,761,093
2,751,572
6,324,163
3,393,944
6,301,321
6,268,263
17,745,162
706,241
3,798,800

69,194,025

United Kingdom—Bngland..
Canada
I,
Gentral American States
Mexico
West Indies
South America
China
Japan
Australia and Tasmania..,
All other countries

66,538,659

171,568,755

661,044
39,553,486
1,464,000

221,310
86,021,273
1,018,913
1,296,771
19,388,441

27,226,603
103,455,383

591,656
288,445
604,329
23,316,721
103,350
11,090
2 543

1,186,278
175,676
2,220,090
494,012

6,325,086
243,220
352,132
1,515,658

5,890
9,875

46,905
297,800

77,762,622

112,038,529

146,224,148

EXPORTS—FOREIGN AKD DOMESTIC.

Belgium.
France.,
Germany
United Kingdom—England..
Canada
West Indies:
Cuba
Other West Indies
All other North America
South America
China
,
Hongkong
All other countries
Total..




11,165,958

6,761,361

238

AUGUST 1,1915.

FEDERAL BESERVE BULLETIN.

Below follows statement of classified imports and exports of gold for the weeks ending
June 25, July 2, 9, 16, and 23, and the cumulative period January 1 to July 23, 1915. These
data were furnished the Board by collectors of customs.
Imports of gold, by customs districts, Jan. 1 to July 23, 1915.

Total.

Vermont.

St. Lawrence.

Michigan.

| Dakota.

Buffalo.

Washington.

3

Southern California.

San Francisco.

Alaska.

Arizona.

j Florida.

I New Orleans.

Porto Rico.

!

oB

Now York.

h
r

Maryland.

j

1

[In thousands of dollars.]

For week ending June 25.

i

19

240

5

IS
5

1
9

9

5

23

10

9

o
26

762
—. ,_ -

. 23 • 7,834

9,701

158

149

200

105.

12

69S

105

12

40
130

134

70

170

134

70

94

78

18

252
776
2,307
573

545

94

78

18

3,908

39

132

227

32

—

—

2,500

345
2,588
2
510

2,500 ... .

3,445

631
1,960
137

413
1,215
1,963
915

2,728

4,506

•

4
1

20

27

32
25S
2
2S

Total

279
6,059
2,837
526

—

498

83

Ore and base bullion
Bullion, refined
TTnitPfl states oniri
ForGiim coin

102

5,000
2,834

23

149

262
500

65
2
12

For week ending July 9.

240

22

4

Orft and base bullion
Tltillinn rpfined
United statesonin

4
15

c

6

462

Total
^ For week ending July 2.

Total

26

25
414
3

Bullion, refined
United States coin
Foreign coin

27

5

18S

113
750

320

1

863
= = = = =

For week ending July 16.
2
411
2 307
30 -

3
1

5
113

31

4

126

262

3

,58

o
8

19
243

22

Total

31

2 750 —

Ore and base bullion
Bullion refined
United States coin
Foreitm coin...
....

1

535

For iceeb ending July S3.
Ore and base bullion
United States mint or
assay office bars
Bullion, refined
Unitod States coin
Foreign coin

175 -

Total

Total




2

98

•

50
1

3

78

3

98

252

22S

75

198

215

330

39

6,391 . . . . 10 . . . . .
17 615 1
4,003 j . . . .

50 28,278

20

227

2,282

2,956

32

1

2,384

J

1,174

7,486

=

269

1

1,154
493
21
198

19S
!

396

Jan. 1 to July 2S.
Ore and base bullion
Unitod States mint or
assay office bars
Bullion, refined
Unitod States coin
Foreign coin

20

193

J518
1,154

1

A

43 253

396 1,276 1,605
8

624 |l,359 1,803

7

7,183
21
11,760
19,179

1Includes $4,000 for Laredo, Tex,

946
6
498
7

3,732

67

932

2

3,106
3,108
8,131
25,938
86,556
104,257
622 " " " 3 " 16,969

49"
3,007

IT

932

98,415

3

157,758

AUGUST l, 1015.

239

FEDERAL RESERVE BULLETIN.

Exports of gold, by customs districts, Jan. 1 to July 28, 1915.
[In thousands of dollars.]
Maine
Duand
San
St.
New Hawaii. Alaska. Fran- Wash- Buffalo. Dakota. Mich- luth
New
and
Lawigan.
cisco. ington.
Hamp- York.
Surence.
perior*
shire.

Vermont.

Total.

For week ending June 25.
B ullion, refined, domestic
United States coin
Foreign coin
Total

1

6
1

3
1,125

1

7

1,128

1

' 1

7

4
1,126

1,137

For week ending July 3.
Ore find ba^e'bullion
Bullion refined domestic!
United States coin
Total

1

27
2
23

1

27

52

17

3

17

3

3

15

2

i

15

1

3

2

I

27

For week ending July 9.
United States mint or assay office
bars
Bullion refinpd domfistic
United States coin

1
1

1

Total

17
1

19

For week ending July 16.

r
>

United States coin

12

5

1

For week ending July SS.

Ore and base'bullion
United States mint or assay office

2

io

Total

10

1

10

1

1

3

1

10

Foreign coin .1

I

11

1

10

Bullion, refined:
Domestic
Foreign

6
22

12

1

3

1

39

Jan. 1 to July SS.

Bullion, refined;
Domestic

3,377
2,574

United States coin
Foreign coin
Total




2

54

44

2
20
7
9

54

21S

51

8

2

* 23

5,951

23

•2

IS

5

13
2

167

1

166
United States mint or assay office

4

4

4
.

1

10

37
20
3,503
2,586

10

6,336

2
3

1
5

4

1

15

240

AUGUST 1,1915.

FEDERAL EESEBVE BULLETIN.

ACCEPTANCES.
Acceptances, by classes, held by the Federal reserve banks each week.
Nonmember hanks'
acceptances.

Member
banks'
acceptances.

Bate,

Private
banks.

Total.

State
banks.

Trust
companies.

1915.
June 28
July 12
July 19....,
July 26
„

$4,211,000
4,342,000
4,231,000
4,356,000
5,165,000

-

,

$4,801,000
5,267,000
4,618,000
4,367,000
4,832,000

$161,000
161,000
161,000
323,000
367,000

$20,000
20,000

$9,173,000
9,770,000
9,010,000
9,066,000
10,384,000

Acceptances indorsed by member banks: Trust companies' acceptances, $176,000; private banks'acceptances, $20,000; total, $196,000.
Distribution of acceptances held by Federal reserve banks according to schedules on hand July 20,1915, by classes of
acceptors and sizes.
To $5,000.

Over 55,000
to $10,000.

Over $10,000
to $25,000.

Class of acceptors.

Member banks...
Trust companies.
State banks
Private banks—
Total.

Over $25,000
to $50,000.

Over $50,000 Over $100,000.
to $100,000.

Total.
Per
cent.

I!
$921,845 32 $1,288,061
1,351,619 27 829,453
20,000
201,845
101,065

19,890
249,549 92

136

$956,285
787,081

$588,000 204 $4,356,293
1,060,246 " " 4,367,233
20,000
322,800

48.0
48.2
,2
3.6

2,495,309

2,218,579

1,743,366

27.5

$134,690 58 $467,412
114,859 32 223,975

24.5

1,648,246 421 9,066,326
===
18.2

100.0

F

Percent

Amounts of acceptances held by the several Federal reserve banks at close of business on Fridays from June %5 to July

28,1915.

Jin thousands of dollars.]
Boston.

New Phila- Cleve- KichAtYork. delphia. land. mond. lanta.

Acceptances maturing within 30
days:
$959 $1,084
June 25
,
739 1,714
July 2
603 1,249
July 9
July 1G
602
979
July 23...
588
740
Acceptances maturing after 30 days
but within 60 days:
582
June 25
928
470
July 2
955
July 9 . . . .
,
445 2,215
July 16
,
402 2,219
July 23
399 2,349
Acceptances maturing alter 60 days
but within 90 days:
June 25
500 2,019
July 2
474 2,159
July9
472 1,371
July 16
605 1,415
July 23
»1,110 2,014
Total:
June 25
2,041 4,631
July 2
4,828
1,683
. July9
4,835
1,520
July 16
" " 1,609
4,G13
July 23
" " 2,097 5,103




$213
452
466
308
371

$148
155
101
49
48

Chicago.

S364
237
236
74
74

St.
Minne.
Louis. apolis.

Kansas
City.

Dallas.

San
Francisco.

Total.

$126
120
49
25
34

403
173
132
442
574

$398
411
331
307
208

$574
260
224
124
124

54,746
4,349
3,477
2,545
2,205

191
191
27
27

$2S0
261
218
17
18

124
160
234
134
234

2,427
2,127
3,330
3,337
3,774

359
449
707
445
522

16
16
25
90
95

37
12
25
165
205

44
15
25
83
124

17
10
25
90
115

10
11
36
71
118

204
198
100
125
56

3,206
3,344
2 7S6
3,689
4,359

975
1,074
1,305
1,255
1,467

213
187
142
155
201

475
347
297
275
343

342
322
287
144
189

168
148
91
132
166

632
613
558
405
353

902
618
558
383
414

10,379
9,820
9,593
8,971
10,338

* Includes $90,500 of acceptances maturing after 90 days but within 3 months.

AUGUST 1,1915.

241

FEDEEAL KESEBVE BULLETIN.

Amounts of acceptances purchased by each of the Federal reserve banks from February 19 (date of first purchase) to June
30,1915, distributed by maturities.
[La thousands of dollars.]
New PhilaRichAtBoston. York. delphia. Cleve- mond. lanta.
land.

San
St.
Minne- Kansas
Louis. apolis. City. Dallas. Francisco.

Chicago.

Total.

Acceptances maturing within 30
February and March.
April
....

371
25
2
141

June
Total

84
25

39
25

141

67

10

41

61

61

814
75
2
141

539

109

64

141

67

10

41

135
29
56
15

197
456
454
436

249

508

62
57

57
33

27
50
159
74

25
201

47
14
46
12

16
45

152
281
200

1 315
871
1 280
627

235

1,543

368

598

310

226

119

61

633

4,093

1,235
520
587
557

4,435
792
411
2,507

862
412
109
493

584
116
16
16

1 245
243

100
18
44

280
87
13
17

41
259
307
27

211
543
124
234

8 893
3 072
1 5S5
3,931

Total

2,899

8,145

1,876

732

1,524

162

397

634

1,112

17,481

Grand total

3,134

10,227

2,353

1,394

1,975

455

526

736

1,806

22,60&

Acceptances maturing after 30 days
but within 60 davs:
April
May

"

....

Total

....

Acceptances maturing after 60 days
but within 3 months:
April
May.
June

. 36

1,032

PAPER CURRENCY OUTSTANDING,
United States Treasurer's monthly statement of paper currency of each denomination outstanding June 30,1915.
Denomination.

United States Treasury
Federal
National
notes of 1890. reserve notes. bank notes.
notes.

One dollar
Two dollars
Five dollars
Ten dollars
Twenty dollars....
Fifty dollars
Onehundred dollars—
Five hundred dollars...
One thousand dollars..
Five thousand dollars..
Ten thousand dollarsFractional parts

$1,819,540
1,363,613
202,123,160
107,957,996
8,092,632
2,030,375
2,983,700
2,749,000
18,551,000

Total
Unknown, destroyed..
Net.,




Gold
certificates.

Silver
certificates.

Total.

$174,838,421
59,748,881
182,868,967
24 707,751
19,159,400
31,755,660
343,420
18,500
18,000

$177,354,354
61,501,381
554,796,547
730,974,017
506,626,556
118,319,890
133,102,920
22,657,500
104,017,500
95,885,000
462,010,000
54 143

$31,379,000
28,054,060
14,837,440
4,990,000
5,000,000

5342,317
163,568
137,881,535
354,680,300
249,959,860
32,964,600
45,305,700
88,500
22,000

347,681,016 I 2,254,000
1,000,000

84,260,500

821,462,523
12,188,930

1,218,182,769

493,459,000 2,967,299,808
3,188,930

346,681,016

84,260,500

819,273,593

1,218,182,769

493,459,000 2,964,110,878

$354,076
225,319
543,885
f
633,490
291,330
11,900
116,000
78,000

10,000

$214,940,420
214,285,894
46,567,355
79,354,100
19,801,500
85,348,500
95,885,000
462,000,000

54,143

2,254,000

i Redeemed but not assorted by denominations.

242

FEDERAL KESERVE BULLETIK,

AUGUST 1,1915.

DISTRIBUTION OF REDISCOUNTS.

The total amount of commercial paper rediscounted during the month of June was
313,404,000, or SI,258,300 in excess of the
amount rediscounted during May, all of the
banks, except Dallas and San Francisco, reporting increased operations.
Over 76 per cent of the paper rediscounted
by the four eastern banks was 60-day paper
as against 32.5 per cent for the four western
banks and 40 per cent for the three southern
banks. The San Francisco bank reports about
33 per cent of this class of paper.
Relatively large purchases by the Minneapolis bank of agricultural and live-stock paper
maturing after 90 days raise the proportion
of this class of paper to 3S.S per cent of
the total amount of rediscounts of the four
western banks and decrease the proportion
of this class of paper reported by the three
southern banks from about 75 per cent for
the month of May to 62.4 per cent for June.
While the percentages of the several classes
of paper handled by all the banks during June
vary but slightly from the percentages for the
month of May, there are some quite material
changes in the liquidity of the paper purchased by some of the banks. Thus, for example, the percentage of 30-day paper discounted
by the Boston bank during the month of June
increased to 47 per cent of the total from only




27 per cent of the total rediscounts handled in
May.
The number of banks accommodated increased from 716 in May to 785 in June and now
stands at 10.3 per cent of the total number of
member banks.
The relative work of the discount departments is shown to some extent by the number
of notes handled during each month, which is
9.55S for May and 10,734 for June. Of the total
number of notes handled the share of the three
southern banks was about 73 per cent in June
as against 78 per cent in May, while of the total
amounts handled the share of the three southern banks was about 66 per cent in June and
over 68 per cent in May.
The average size of the notes discounted in
June by all the banks was Si,249, compared
with $1,271 in the preceding month. The averages vary between $681 for the New York bank
and S3,043 for the San Francisco bank. Of the
total number of notes rediscounted during June
about 27 per cent, and of the total amount
about 53 per cent, were notes in amounts of
$1,000 to S5,000. Small notes (in amounts up
to §250) constituted almost 32 per cent of the
total number, though only 3.6 per cent of the
total amount of notes rediscounted during the
month. Over 84 per cent of the entire number
of notes up to $250 was discounted by the three
southern banks.

.AUGUST 1,1915.

243

FEDERAL RESERVE BULLETIN.

Commercial paper, exclusive of acceptances, rediscounted by each of the Federal reserve banks during the month of June, 1915,
distributed by sizes.
NUMBER OF PIECES AND AMOUNTS.
[In thousands of dollars.]
To $100.

Over S100 to
3250.

Over S250 to
S500.

Over $500 to
51,000.

Over $1,000
to 32,500.

Over $2,500 Over $5,000
to 510,000.
to $5,000.

Over
310,000.

Total.

Bank.

If
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.

4.0
.4
.7
32.2
18.2
.8
1.1
1.0
.2
18.8

T o t a l . . . . 1,069

147
35
13
559
572
32
63
93
14
814
21

77.4 2,363

23.2
6.2:
2.3!
97.4!
99.0:
7.6
11.4
16.1!
2.6
135.3
3.4

25
104]
67j
201
622
475

89
69
1311
27
531
31

404.5; 2,191 j

11.3
37.3
25.4
7.5
246.3
177.8
35.6
26.1
48.1
10.3
190.3
11.3

|

29
57
58
29
590
319
107
56
182
40
342

20.1
39.7
45.3
23.6
484.7
249.6
86.0
45.5
129.8
29.3
253.4
36.5

21
41
51
40
513
291
138
75
1661
39|
349
69

34.6
58.1
92.8
69.1
909.4
511.0
225.9
135.6
243.4
60.5
571.4
110.7

OS. 5
32.5
77.0
8S.6
677.2
328.0
68.6
67.2
137.6
82.1
428.6
217.

2.0
347.4
120
2.1
289.5
425
3.3
454.8
273
15.0
435.21 3.2
80.6
108
273.4 3,147 4,004.3 30.1
255.0! 2,135 2,358.0 17.6
4.8
24.8 440 648.lt
400.91 3.0
10.2
311
5.9
795.0
52.6
687
30.4
170 333.5J 2.5
172.7 2,577 2,477.1! 18.5
SG0.2J 6.4
281
294.7

827.3 1,861 1,443.5 1,793 3,028.51,049 4,074.7 325 2,273.1

83 1,275.0 10,734 13,404.0| 100.0

147.3
94.7
192.7
162.8
1,283.7
719.4
198.8
103.8
166.4
118.1
706.6
180.4

65.6

PERCENTAGES OF AMOUNTS OF E A C H CLASS T O T O T A L .
To $100.

Boston
New York
.
Philadelphia
Cleveland. ...
Richmond
Atlanta
Chicago..
St. Louis
Minneapolis
KansasCity
Dallas
Total.

...

.,

.*.

...;

Over
$100 to
$250.

Over
$1,000 to
$2,500.

Over
$500 to
$1,000.

Over
$250 to
$500.

Over
Over
$2,500 to $5,000 to
$10,000.
$5,000.

Over
$10,000.

Total.

Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.
33
100.0
42.4
9.9
5.8
18.9
19.7
100.0
32.7
11 2
20.1
12 9
1.4
13.7
80
100.0
20.4
3.3
17.0
42.4
9.9
5.6
1.4
100.0
15.9
5.4
18.5
20.4
37.4
1.7
.2
.5
32.1
100.0
6.8
16.9
6.2
2.4
22.7
12.1
.8
10.8
13.9
30.5
21.7
10.6
7.5
100.0
4.2
.8
.1
3.8
10.6
30.7
34.8
5.5
13.3
100.0
1.2
100.0
33.7
2.6
25.9
11.3
16.8
6.5
2.9
.3
.1
6.6
17.3
20.9
30.7
16.3
100.0
6.1
2,0
.1
9.1
24.6
35.4
18.1
8.8
100.0
. 3.1
.8
7.0
17.3
28.5
23.1
10.2
100.0
7.6
5.5
.8
100.0
34.3
25.2
13.6
4.2
21.0
1.3
.4
.6

3.0

6.2

10.7

30.4

22.6

17.0

9.5

100.0

Commercial paper rediscounted during June by each of the Federal reserve banks, distributed by States and maturities as of
date of rediscount.
[In thousands of dollars.]

Districts and States.

District No. 1—Boston:

New Hampshire
Vermont
Total.....
District No. 2—New York
District No. 3—Philadelphia:
Pennsylvania
Total




Number
of member
banks.

Number
of banks
accommodated.

Paper
maturing
within 30
days.

74
70
170
56
18
48

2
1
5
1
0
4

141.6
3.0

10.7

Paper
maturing
after 30
days but
within 60
days.

Paper
maturing
after 60
days but
within 90
days.

18.3
8.9
70.5
4.6

13.4
4.8
10.0
3.4

Paper
maturing
after 90
days.

Total
commercial
paper rediscounted.

2.9
.4

42.4
16.6
222.1
11.4
54.9

7.3

40.9

6.7
38.3

3.3

347.4

1.4

289.5

436

13

162.6

143.2

479

20

136.8

82.0

169.3

24
201
533

1
12
13

71.8
138.5

86.7
62.3

3.0
67.4
25.1

3.0
225.9
225.9

149.0

95.5

454.8

210.3
26
758
i Including 4.5 of paper, maturing within 10 days.

244

FEDERAL BESEEVE BULLETIN.

AUGUST 1,1915.

Corrwiercial paper rediscount^ during June by each of the Federal reserve banks, distributed by States and maturities as of
date of rediscount—Continued.
[In thousands of dollars,]

Districts and States.

District No. 4-Cleveland:
Kentucky
Ohio
Pennsylvania
West Virginia
Total

760

District No, 5—Richmond:
District of Columbia
Maryland
North Carolina
South Carolina
Virginia
•
,
West Virginia
,
Total

508

District No. 6—Atlanta:
Alabama
Florida
Georgia
.....
Louisiana
Mississippi
Tennessee
,

381

,

Total
District No. S-St. Louis:
Arkansas
Illinois
Indiana
Kentucky
Mississippi
Missouri..
Tennessee
Total

156
61
69
17
79
20

'..

462

District No. 9—Minneapolis:
Michigan
Minnesota
Montana
North Dakota
South Dakota
Wisconsin

41

163.3
144.9
125,9
1.1

183.0

196.7

50.2

5.3

435.2

123.2
8.0
357.1
463.5
280.5
62.2

50.4
12.6
661.1
526.1
377.9
39.2

.5
85,1
252.4
65.8
.8

208.8
58,1
1,192.2
1,544.8
862.7
137.7

637.9

1,294.5

1,667.3

404.6

4,004,3

75.9
86.2
226.3

101.8
16.3
208.4

11.7
325.3

100.4
349.5
402.9
4.1
39.0
196.8

13.9

294.8
492.5
915.3
24,6
62.0
578.8

199.5

725.4

1,092,7

340,4

2,358.0

47.1
34.1
68,5
2.0

53.5
52.6
100,1
6.6

42.4
17.5
167,0

146.7
113.3
362.0
25.1
1.0

55.7

151.7

212.8

227.9

648.1

3.4
27.8
13.0
12.7

27.7
30.2

15.3
41.1

14,7
50.5
.8.3
6.3
3.0
20.8
55.7

47,1
122.6
26.3
27.1
14.6
46.6
116.6

52.3

113.3

159.3

76.0

400.9

12.5

57

.3
5.0

4.0
U9.8

313
197
348
73
49

,

16.7
20.6
12.2
.7

1.3
14.1
5.0
8.1

128

87.9
51.7
56.7
.4

1.0

92
56
113
5
18
97

Total
District No, 7—Chicago:
Illinois
Indiana
Iowa
Michigan
Wisconsin

102

Total
commercial
reited.

3.7
9.1
26.4
16.5

13
100
80
71
136
108

Paper
maturing
after 90
days.

16.7
40.5
77.7
20.5
1.3
42.8

37

Paper
maturing
after 60
days but
within 90
days.

35,2
37,0
88.9
302.8
138,5
35.5

72
378
301
9

Paper
maturing
after 30
days but
within 60
days.

58.7
72.3
52.0

Number
Number
of banks
of member accommobanks.
dated.

23.2
2.5
4.9
2.9

149.9
72.6
166.6
51.6
17.2

38.7
165.8
125.5
189.2
53.1
222.7

Paper
maturing
within 30
days.

11.6
6.5

31
277
65
153
111
87

32.1

70.3

3.0
13.4
47,1
19.2
1.5
103.1

,

724

46.0

103,8

187.3

457.9

795.0

District No. 10—Kansas City:
Colorado
,
Kansas
,
Missouri
Nebraska
New Mexico
,
Oklahoma
Wyoming
,

122
216
52
212
10
188
33

5.1
2.5
6.2

2.1
30.5

4,5
25.5

16,3

24.1

7.8

30.7

*ii.*4'

2.1
28.3
1.8
23.7
3.2
24.4

13.8
86.8
91.3
64.1
3.2
74.3

21.6

162.9

Q5.5

83.5

333.5

37,8

Total

Total

38

District No. 11—Dallas:
Arizona
Louisiana
New Mexico
Oklahoma
Texas

6
25
28
163
537

1

18
134

2.3
63.4

58.8
12.3
47.2

479.2

149.1
23.5
31.5
755.2

76.1
33.8
63.2
643.7

321.8
69.6
144.2
1,941.5

166

Total




.5

103,5

597.5

959.3

814.8

2,477.1

Including 5.0 of paper, maturing within 10 days.

ADGDST 1, 1915.

245

FEDERAL RESERVE BULLETIN.

Commercial paper rediscounted during June by each of the Federal reserve banks, distributed by States and maturities as o
date of rediscount—Continued.
[In thousands of dollars.]

Nevada

_.._

.

......

-.

Utah
Washington
Total

39
6

65.4

124.5
9.3

404.5
8.9

64.1
15.6

658.5
33.8

9
1
6

5 7
6.0
£4.0

22.0
25.5

40 6
15.3
20.4

2.6

2.0

3.8

70 9
46.8
50.2

527

...

Paper
maturing
after 60
days but
within 90
days.

61

101.1

183.3

489.7

86.1

860.2

436
479
758
760
508
381
980
462
724
833
759
527

13
20
28
37
102
128
57
41
96
38
166
61

162.6
36.8
210 3
183.0
637.9
199.5
55.7
52.3
46.0
21. &
103.5
101.1

143.2
82.0
149.0
196.7
1,294.5
725.4
151.7
113.3
103.8
162.9
597.5
183.3

38.3
169.3
95 5
50.2
1,667.3
1,092.7
212.8
159.3
187.3
65.5
959.3
489.7

3.3
1.4

404.6
340.4
227.9
76.0
457.9
83.5
816.8
86.1

347.4
289.5
454 8
435.2
4,004.3
2,358.0
64a 1
400.9
795.0
333.5
2,477.1
860.2

7,607

785
10.3

1.810.3
13.5

3,903.3
29.1

5,187.2
38.7 •

2,503.2
M 7
L

13,404.0
100.0

Total
Paper
maturing commercial
after 90
paper redays.
discounted.

1
7
a.

......

Paper
maturing
after 30
days but
within 60
days.

86
23
7S

District No. 12—San Francisco:
Alaska
'.
California

Paper
maturing
within 30
days.

Number
Number
of banks
of member accommobanks.
dated.

Districts and States.

.

265
57
10

BECAFtTULATlON.

Districts:
No. 1—Boston
No. 2—New York
No 3—Philadelphia
No. 4—Cleveland
No. 5—Richmond
No. 6—Atlanta..
No. 7—Chicago
No. 8—St. Louis
..
No* 9—Minneapolis .
No 10—Kansas City .
No 11—Dallas .
Total

. .
..;.
....
...
...
..

...
........
... .
...

5.3

Amounts of commercial paper held by each of the Federal reserve banks on the last Friday of the month of June, distributed
by maturities.
[In thousands of dollars.]

Federal reserve bank.

Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago

St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total...
Percent




Paper
Paper
Paper
maturing maturing
Paper
after
after
maturing
maturing
within 30 days but 60 days but
after
within
within
90 days.
30 days.
60 days.
90 days.
196.7
215.5
332.5
415.9
2,952.9
1,693.9
358.0
2S0.2
193.4
207.7
2,071.8
670.6

86.0
212.9
246.0
278.3
2,417.5
1,249.7
319.0
182.1
187.2
171.7
1,579.4
712.5

109.4
74.6
54.3
1,300.1
827.7
257.6
131.6
153.9
95.5
831.8
302.8

9,589.1
36.9

7,642.3
29.4

4,144.8
15.9

5.5

7.1
2.6

35.5
707.4
628.5
252.9
149.6
547.8
135.8
1,971.3
181.7
4,620.2
17.8

Total.

295.3
540.4
653.1
784.0
7,377.9
4,399.8
1,187.5
743.5
1,OS2.3
610.7
6,454.3
1,867.6
25,996.4
100.0

246

RESOUHCES AND LIABILITIES.

AUGUST l,

1015,

Resources and liabilities of each of the Federal reserve banks and of the Federal reserve system at close of business on Fridays
July 2 to July 23.
[In thousands of dollars.]
RESOURCES.

Boston.

Gold coin and certificates
in vault:
July 2
Julj-9
July 10
July 23
Gold settlement fund:
July 2
July9
Julylf,
July 23
Gold redemption fund:
July 2
July9
July 16
July23
Legal tender notes, silver,
etc.:
July2
JulyO
July 10
July 23
Total reserve:
July 2
JulyO
July 16
July 23
Commercial paper:
July 2
July9
:.,
Julylf*
July 23
Bank acceptances:
July2
July9
July 16
July 23
United States bonds:
July 2
July 9
July 16
July 23
Municipal warrants:
July2
July9
July 10
July 23
Due from other Federal
reserve banks, net:
Juiy2
J i 2
July 9
July 16
July 23
Federal reserve notes,
net assets:
July2
July9
July 16
July 23
All other resources:
July2
July9
July 10
July 23
Total resources:
July2
JulyO
July 10
July23

New
York.

Philadelphia.

Cleve- Richland. mond.

San
Minne- Kansas
St.
Louis. apolis. City. Dallas. Francisco.

Atlanta,

Chicago.

$4,747 $3,706
4,302 3,697
4,388 3,501
4,431 3,529

S24.386
23,992
25,622
25,974

$8,091
7,600
7,654
7,650

1,384
1,384
1,256
1,657

1,107
1,317
1,235
1,187

$7,051 $6,649
7,001 6,199
6,850 6,295
6,652 6,299

$3,037
3,043
3,051
2,763

$8,151
8,079
8,G32
8,897

$231,363
218,021
213,472
214,047

3,702
3,539
3,697
3,611

2,913
3,162
3,756
3,993

1,047
1,618
1,019
367

31,840
47,106
40,680
48,450

30
30
30
30

37
37
37
37

237
268
298
313

21
21
21
21

1,080
1,116
lT036
1,076

1,050
990
974
846

4
4
4
4

471
472
490
493

565
568

17
11
11
21

24,841
22,494
20,492
25,913

32,776 10,560
41,640 10,009
38,324 9,919
38,292 10,188

8,192
8,352
8,119
7,873

10,859
10,247
10,519
10,440

6,877
•7,165
7,670
7,642

9,236
9,729
9,683
9,306

289,129
288,737
287,680
289,486

1,223
1,340
1,477
1,537

804
874

1,163
1,423
1,487
1,506

021
866
985
1,104

6,521
6,222
0,624
6,629

1,845
1,966
1,925
1,936

20,367
27,0S4
28,669
29,085

187
142
155
201

347
297
275
348

322
287
144

148
91
132
166

613
558
405
353

618
5BS
383
414

9,820
9,593
8,971
10,338

194
340
340
340

535
035
GOO
660

3,725
3,725
3,725
3,725

242
242
242
242

1,025
1,025
1,025
1,025

930
930
930
930

1,001
1,001
1,001
1,001

7,052
7,898
7,923
7,923

1,256
1,480
1,571
1,631

1,495
1,594
1,556
1,539

1,383
1,628
1,690
1,770

408
518
568
620

368
445
445
496

214
332
342
454

702
976
986

12,390
13,895
14,391
15,110

773
716
748
427

1,482
1,782
737
1,166

11,979
1,222
2,965
2,996

1,256
240
1,224

210
43
113
54

63
171
429
371

1,230
599
903
1,301

19,862
1 6,107
15,855
15,229

2,320
2,333
2,351
2,353

87
98
107

100
79
183

1,308
1,323
1,180
1,181

7,601
8,379
9,953
9,227

201
155
176
142

1,870
1,482
1,861
2,194

52

•

67
81

3,600
3,094
4,430
4,765

16,061
16,237
16,128
16,256

300,481
305,387
367.878
371,163

$9,179
9,101
8,427
8,644

$126,989
117,093
112,132
113,001

$10,021
14,778
13,909
13,241

$13,361
13,076
13,011
12,966

3,817
0,474
7,041
7,707

2,350
5,846
7,125
10,151

1,822
1,459
1,384
1,671

3.520
3,633
4,351
4,256

2,695
3,259
3,434
3,212

1,040
1,447
1,511
1,304

5,837
13,968
10,271

6

55
55
55
55

37
37
37
37

17
17
17
17

200
265
275
300

225
225
225
225

120
120

35
35
35
35

194
430
171
170

16,123
12,710
17,001
16,301

2,581
2,473
2,953
3,027

848
856
974
1,024

107
100
111
130

323
190
207
340

2,433

13,196
16,011
16,245
16,527

145,523
135,704
136,913
139,508

20,461
•18,747
18,283
17,976

17,746
17,582
18,353
18,203

7,809
7,932
8,208
8,073

5,894
5,559
5,444
5,398

430
414
403

515
629
593
585

577
560
775
727

757
703
095

7,311
7,565
8,050
8,313

4,540
4,522
4,757
4,745

1,683
1,520
1,609
2,097

4,828
4,835
4,013
5,103

1,074
1,305
1,255
1,467

si

2,234
2,292
2,297
2,404

4,269
4,630
4,936
5,160

2,516
1,736
1,779

56$
443
430
453

2,905
3,807
5,474
4,584

39
71
53
58

160
157
188
161

126
349
582
696

194
198
295
341

20,730
22,591
22,871
22,150

153,260
149,702
152,717
155,101

24,500
23,568
23,607
23,322

204
212
120

249
215
288

103
175
108
301

1,125
1,119
310
623

100
141
137
158

244
315
281
77

22,045 16,346 10,942
22,851 16,757 10,608
22.739 16,705 10,602
23,177 17,167 10,523

9,329

3,560
2,431
2,989

53,954 15,585 11,247
52,340 13,799 11,528
50,983 14.954 11,456
51,163 14,476 11,360

373
418
345
162

520
550
616
535

23
38
69
22

13,826
13,054
14,220
14,187

13,794
13,843
14,708
14,445

* Items in transit, i. e., total amounts due from minus total amounts due to other Federal reserve banks.




Total
for
system.

61
80

AUGUST 1,1915.

247

EESOXIRCES AND LIABILITIES.

Resources and liabilities of each of the Federal reserve banks and of the Federal reserve system at close of business on Fridays,
July 2 to July 28—Continued.
[In thousands of dollars.]
LIABILITIES.

Boston.

Capital paid in:
July2
July 9
July 16...
July 23
Reserve deposits, net:
July 2
July 9
July 16
July 23
Federal reserve notes, net
liability:
July 2
July 9
July 16
July23
Due to other Federal reserve banks, net:
July 2
July 9
July 16
July 23
All other liabilities:
July 2
July 9 . . . . . . . . .
July 16
July 23
Total 1:
al liabilities:
July
Julv
July
July

2.,
9-.
16.
23.

New
York.

34,778
4,778
4,778
4,802

$9,962
10,536
10,559
10,812

15,914
17,813
18,093
17,063

135,421'
135,131
136,630
141,409

Philadelphia.

$6,225
5,652
5,629
5,376

Cleve- Richland. mond.

Atlanta.

$5,946 $3,365 $2,414
5,951 3,360 2,415
5,951 3,350 2,415
5,951 3,361 2,414

18,275
17,916 16,900
17,978 16,788
17,946 17,226

5,590
5,225
5,249
5,219

5,009
5,137
5,368
5,757

285

7,885
8,178
7,896
7,950

Chicago.

$54,12S
54,104
54,135
54,170

47,3-16
45,732
44,373
44,553

297,883
295iO
297,010
301,063

2,920
2,8S8
2,837

158,260
149,762
152,717
155,lni

12,127
12,314
12,205
12,333

S,S25 10,592
9,100 i 10,591
9,033 11,003
8,937 10,901

6,412
5,891
6,204
0,003

417
178

4,479
5,140
5,700

5,587

12,797
13,375
14,212
14,521

34
26
34
37

12,797
11,011
12,164
11,463

1,673
2,100
1,SS5
1,409

340

219
46
48
50
53

1,468
1,944
1,710
1,220

20,730
22,591
22,871
22,150

Total
for
system.

56,608 $2,788 $2,422 I $2,817 $2,869 $3,934
6,608 2,788 2.422 I 2,8S5 2,7SG 3,923
6,610 2,790 2.423 2,937 2,770 3F923
6,610 2,794 2,423 ! 2,946 2,758 3,923

11,409
2,151
3,818
1,660

38

San
Minne- Kansas Dallas. FranSt.
Louis. apolis. City.
cisco.

24,500
23,56S
23,607
23,322

22,645
22,851
22,739
23,177

16,346
16,757
16,705
17,167

10,942
10,60S
10,602
10,523

53,954
52,3-10
50,9S3
51,163

15,585
13,799
14,954
14,476

11,247
11,528
11,456
11,360

13,826
13,654
14,226
14,187

13,794
13,843
14,703
14,445

16,061
16,237
16,128
16,256

366,481
365,387
307,S7h
371,163

CIRCULATION OF FEDERAL RESERVE NOTES.

Federal reserve notes issued to the banks:
July 2
July 9
July 16 *
July 23
Federal reserve notes in
the hands of the banks:
July 2
July 9
July 16
July 23
Federal reserve notes in
circulation:
July 2
July 9..
July 16
July 23
Gold and lawful money
deposited with F . R.
agents:
July 2 . . . .
July9................
July 16
.;
July 23
Carried to net liabilities:
July 2
July 9
July 16
July 23
Carried to net assets:
Julv 2
Jllly9
July 16
July 23




S3,920
3 920
4 420
4,420

$40,500
42,900
45,320
45,320

S2,420
2,500
2,660
2,730

$4,200
4,500
4,600
4,700

$.7,750
8 050
8,200
8,300

$5,150
5,300
5,500
5,500

$4,380
4,380
4,3S0
4,380

$626
626
626
626

$3,300
3,500
3,600
3,800

$3,600
4,100
4,100
4,100

$6,695
7,315
7,915
8,215

$2,040
2,010
2,040
2,040

SS4,5S1
89,131
93,361
94,131

568
443
430
453

3,145
3,987
5,674
4,784

39
71
53
58

249
215
288
308

191
163
132
243

30S
430
4C2
513

2,320
2,333
2,351
2,353

63
87
9S
107

SO
100
79
183

223
512
401
350

266
225
265
178

l,30S
1,323
1,180
1,181

8,760
9,8*9
ll,41ti
10,711

3 352
3,477
3 990
3 967

37,355
38,913
39,646
40,536

2,381
2,429
2,607
2,672

3,951
4,285
4,312
4,392

7,559
7;8S7
8,06S
8,057

4,842
4,870
5,038
4,987

2,060
2,047
2,029
2,027

563
539
528
519

3,211
3,400
3,521
3,617

3,377

732
717
SGO
859

75,812

3,5S8
3,696
3,750

6,429
7,090
7,650
8,037

79,242
81,945
83,420

3,920
3,920
4,420
4,420

40,320
42,720
45,120
45,120

2,420
2,500
2,660
2,730

4,200
4,500
4,600
4,700

2,550
2,750
2,700
2,300

1,950
1 850
2,150
2,150

4,3S0
4,380
4,3S0
4,380

626
026
626
C26

3,300
3,500
3,600
3,800

2,960
3,410
3,410
3,410

1,950
1,950
1,050
2,450

2,040
2,040
2,040
2,040

70,616
74,246
77,650
78,120

5,009
5,137
5,36S
5,757

2,892
2,920
2,SS8
2,837

417
178

4,479
5,140

12,797
13,375

340

5,587

14,521

••

568
443
430
453

2,965
3,807
5,474
4,584

39
71
53
5S

249
215
2SS
308

14 9.1 •>

2,320
2,333
2,351
2,353

63
87
. 9S
107

89
100
79
183

1,308
1,323

7,601
8,379

1 1 Qn

Q Q^T

1,181

9,227

248

FEDERAL RESERVE AGENTS

ACCOUNTS,

AUGUST l t

1915.

Statement of Federal reserve agents1 accounts at close of business Fridays, July 2 to July 23,
(In thousands of dollars.)

Boston.

Federal reserve notes received from the Comptroller:
July 2
July 9

$11,000
11,800
11,800
11,800

SS&:::

Federal reserve notes returned to the Comptroller:
July 2
July 9
'•
July 16
July 23
Amount of Federal reservo notes chargeable
to Federal reserve agent:
July 2
July 9
July 16
July 23
Federal reserve notes in
hands of agent at close
of business FridayJuly 2...,
July 9
July 16
July 23
...
Federal reserve notes issued to Federal reserve
bant, less notes returned to agent for redemption and cancellation:
July 2
July 9
Julyie
July 23
Held by Federal reserve
agent in reduction of
liability on outstanding notes:
Gold coin, and certificates—
July 2
July 9
July 16
July 23
Lawful moneyJuly 2
July 9
July 16
July 23
As security for outstanding notes:
Commercial paper i—
July 2
July 9
July 16
July 23

$45,040
47,810
47, $40
49,840

Philadelphia,

Cleve- Richland. mond.

Atlanta.

So,360 $6,000 $8,420 $8,500
5,360 6,000 9,160 8,500
5,340 6,400 9,160 S,500
5,340 6,400 9,160 8,500

Chicago.

San
St.
Minne- Kansas
Louis, apolis. City. Dallas. Francisco.

$9,260 §3,400 $4,000 $6,000 $9,300 $3,600
9,260 3,400 4,000 6,000 9,295 3,600
9,260 3,400 4,000 6,000 9,775 3,600
9,260 3,400 5,000 6,000 9,775 10,000

Total.

$H9,8S0
124,215
125,075
134,475

5
20

20

n,8oo

11,800
11,800

45,040
47,840
47,S40
49,840

5,360
5,340
5,340
5,310

6,000
6,000
6,400
6,400

8,420
9,160
9,160
9,160

8,500
S,500
8,500
8,500

9,260
9,260
9,260
9,260

3,400
3,400
3,400
3,400

4,000
4,000
4,000
5,000

6,000
6,000
6,000
6,000

9,295
9,295
9,775
9,775

3,600
3,600
3,600
10,000

119,875
124,195
125,075
134,445

7,080
7,8S0
7,3S0
7,380

4,540
4 940
2,520
4,520

2,940
2,840
2,680
2,580

1,800
1,500
1,800
1,700

670
1.110
960

5,150
3,200
3,000
3,000

4,880
4,880
4,880
4,880

2,774
2,774
2,774
2,774

700
500
400
1,200

2,400
1,900
1,900
1,900

2,600
1,980
1,860
1,560

1,560
1,560
1,560
7,960

37,094
35,064
31,714
40,314

3,920
3,920
4,420
4,420

40,500
42,900
45,320
45,320

2,420
2,500
2,660
2,730

4,200
4,500
4,600
4,700

7,750
8,050
8,200
8,300

3,350
5,300
5,500
5,500

4,3S0
4,380
4,380
4,380

626
626
626

3,300
3,500
3,600
3,800

3,600
4,100
4,100
4,100

6,695
7,315
7,915
8,215

2,040
2,040
2,040
2,040

82,781
89,131
93,361
94,131

3,920
3,920
4,420
4,420

40,320
42,720
45,120
45,120

• 2,420
2,500
2,660
2,730

4,200
4,500
4,600
4,700

2,550
2,750
2,700
2,300

1,950
1 950
2,150
2,150

4,380
4,380
54,260
24,260

626
626
626
626

3,300
3,500
3,600
3,800

2,960
3,410
3,410
3,410

1,950
1,950
1,950
2,450

2,040
2,040
2,040
2,040

70,616
74,246
77,536
78,006

5,200
5,300
5,500
6,000

1,400
3,350
3,350
3,350

640
690

4,745
5,365
5,965
5,765

7,750
8,050
8,200
8,300

3,350
5,300
5,500
5,500

3,600
4,100
4,100
4,100

6,695
7,315
7,915
8,215

5,202
5,302
5,502
6,095

3,203
3,355
3,351
3,350

640
690
690

5,867
5,598
6,182
5,985

11,000

180
180
200
200

Total—
July 2...
July 9...
July 16..
July 23..

3,920
3,920
4,420
4,420

i Amount of commercial
paper turned over to
the Federal reserve
agent:
July 2
July 9
July 16
July 23
•...,




New
York.

40,500
42,900
45,320
45,320

180
ISO
200
200
2

2,420
2,500
2,600
2r730

4,200
4,500
4,600
4,700

4,380
4,380
*4,260
M,260

626
626
626
626

3,300
3,500
3,600
3,800

Exclusive of $120,000 in the gold redemption fund with the Treasurer of the United States.

12,165
14,885
15,705
16,005
2,040
2,040
2,040
2,040

82,781
89,131
93,241
94,011

15,092
15,125
15,925
16,321

INDEX.
Page.

Page,

Acceptances
240-241
Address by Mr. John Perrin, of Federal Reserve
Bank of San Francisco
186-188
Address by Mr. D. 0. Wills, of Federal Reserve
Bank of Cleveland
188-192
Business conditions, general
228-235
Circulars and regulations
215-217
Regulation O—Issuance and redemption of
Federal reserve notes
214-215
Circular 16—Trade acceptances
216
Clayton Act, interpretation of
221
Conference of bank examiners
217
Cotton situation
180-182
Discount rates in effect
214
Earnings and expenditures of Federal reserve
banks
176-179
Federal reserve agents* accounts, statement of
248
Gold imports and exports
236-239
Gold settlement fund
183-185
Government bonds, purchase of
217
Informal rulings of the Board
211-213

Intradiatrict clearance system, establishment of. 192-210
Law department
218-224
Right of State banks and trust companies to
subscribe for stock..,
218
Surrender of stock by a member bank reducing its surplus
218
Rediscount of drafts payable on condition
219
Payment of dividends by Federal reserve
banks
220
Interpretation of Regulation F
221
Interpretation of the Clayton Act
222
Movement of principal assets and liabilities of
Federal reserve banks
233-235
Paper currency outstanding
241
Rediscounts, distribution of
242-245
Resources. and liabilities of Federal reserve
banks
246-247
State bank membership in Federal reserve system. 182
Trustee powers, applications for, approved
214
Work of the Federal Reserve Board
175




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