Full text of Federal Reserve Bulletin : August 1916

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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

AUGUST, 1916

WASHINGTON
GOVERNMENT PRINTING OFFICE
1916

FEDERAL RESERVE BOARD.

EX OFPICIO MEMBERS.
WILLIAM G. MCADOO,
Secretary of the Treasury,
Chairman.
JOHN SKELTON WILLIAMS,
Comptroller of the Currency.




CHARLES S. HAMLIN, Governor.
FREDERIC A. DELANO, Vice Governor.
PAUL M. WARBURG.
W. P. G. HARDING.
ADOLPH C. MILLER.
H. PARKER WTILLIS, Secretary.
(On leave of absence.)
SHERMAN ALLEN, Assistant Secretary and Fiscal
Agent.
M. C. ELLIOTT, Counsel.




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In sending the Bulletin to others the

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in

TABLE OF CONTENTS.
Page.

Work of the Board
Hearing of Wisconsin Banks
. . . . . . . . .•„.
....
Earnings and dividends of Federal Reserve Banks
Bill limiting use of words ''Federal" and "reserve "
,
Bank checks in France
Announcement by Federal Reserve Board
Suggestions for purchase of brokers' paper
National-bank deposits in the United States.
Commercial failures during month of June
Comments on clearing system
New national-bank charters
•
Fiduciary powers granted
Gold settlement fund
.
Discount rates in effect
Earnings and expenses of Federal Reserve Banks
Circular regarding section 8 of Clayton Act
Informal rulings of the board
Law department
Summary of business conditions
Business conditions throughout the 12 Federal Reserve districts
Distribution of discounts
Acceptances.
Federal Reserve Bank statements
Gold imports and exports
Earnings on investments of Federal Reserve Banks
Jnterdistrict movement of Federal Reserve notes




IV

..

.........
•.

371
372
373
373
374
374
375
376
377
377
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379
380
383
384
389
393
396
398
399
418
423
426
430
434
° 435

FEDERAL RESERVE BULLETIN
VOL.

2

AUGUST 1, 1916

WORK OF THE BOARD.
Activities of the Federal Reserve Board
during July have covered a wide field. The
check clearing and collection plan, announced
on May 1, went into operation on Saturday,
July 15. Preliminary rulings in connection
with the exemptions under the Kern amendment to the Clayton Act have been completed
and forms and instructions placed in the hands
of applying officers and directors of banks.
Amendments to the Act, recommended by the
Board, have been under discussion in the Senate. Discount rates have shown a slightly
upward tendency. The gold settlement fund
has been unusually active, due.to the repayment to the Treasury Department of the
$15,000,000 placed in the Federal Reserve
Banks of Richmond, Atlanta, and Dallas in
September, 1915, and large withdrawals by the
Government of funds deposited with the 12
Federal Reserve Banks acting as fiscal agents
of the Government. Deposits in this fund
reached, in July, a record total of $168,500,000.
While it is early in the operation of the clearing plan to give figures showing its actual results, it is conservative to say that it was
begun very auspiciously. There has been a
pretty general cooperation from banks and
bankers, of which the Board desires to make
acknowledgment. Through the taking over
of the Boston Clearing House by the Federal
'Reserve Bank of Boston, checks drawn against
any bank in this district, whether a member of
the system or not, are collectible at par, subject, of course, to a charge to cover the actual
cost of collection and interest upon distant
items where immediate availability of funds is
asked.
All national banks and State bank members
of the system may avail themselves of the privi-




No. 8

lege of using Federal Reserve Banks as clearing
houses for the collection of checks. Not only
those drawn against other member banks, but
also a large proportion of those drawn against
nonmember banks, may, through this plan, be
collected at a minimum of expense to the depositing bank.
A large number of nonmember State banks
have signified their willingness to remit at full
face value for checks drawn against them and
sent by Federal Reserve Banks for collection.
The Board is confident that the United States
has now embarked upon a most effective checkcollection system, the use and appreciation of
which will continue to grow and enlarge until
it becomes universal. As that time approaches
the cost of the service can be reduced to a very
low figure.
A consolidated statement of the 12 Federal
Reserve Banks for the first six months of the
present year shows that earnings were
$1,824,436 and aggregate current expenses for
the same period $1,019,926. This leaves a
surplus available for dividend distribution of
$804,510, or at the rate of 2.9 per cent upon a
total paid-in capital for all the banks of
$54,854,000, reported as at close of business
June 30, 1916. All of the Federal Reserve
Banks except St. IJOUIS earned their current
expenses for the first six months of the present
year. Five of the banks have already paid
dividends.
Four Federal Reserve Banks have slightly
increased discount rates during July. Rates
for bankers7 acceptances have shown a firmer
tendency. On trade acceptances, commodity
paper running 90 days, and commercial paper
running 10 days the rate at Philadelphia is 3 |
per cent; on trade acceptances the rate at Boston is Si per cent; Chicago has increased its
371

372

FEDERAL RESERVE BULLETIN.

rate for 60-day commercial paper from 4 per
cent to 4J per cent; and since July 24 the following new rates have been in effect at the
Federal Reserve Bank of Kansas City: Commodity paper and trade acceptances, 4 per
cent; commercial paper running 10 days, 4 |
per cent. On August 1 the rate for trade
acceptances at the Federal Reserve Bank of
Cleveland will be increased from 3 per cent to
3^ per cent for 60-day paper and from 3^ to 4
per cent for 90-day paper.
After carefully considering the advantages of
the Federal Reserve System the Corn Exchange
Bank of New York made application to be
admitted as a member, and on July 7 favorable
action was taken upon the application by the
Federal Reserve Board. This bank has a capital of $3,500,000 and a surplus of $6,991,165.32.
Almost coincident with the application of the
Corn Exchange Bank was that of the American
Trust and Savings Bank, of Birmingham, Ala.,
upon which the Board also took favorable
action. The capital of the latter bank is
$500,000 and its surplus $250,000. The Board
has had informal discussion with the representatives of several other State banks who
are considering the advantages offered by
membership in the Federal Reserve System.
Permission has been granted by the Federal
Reserve Board to the National City Bank of
New York to open a branch at Petrograd,
Russia. This permit includes authorization
to establish several subbranches or offices in
Russia.
Mr. E. T. Meredith, of Des Moines, Iowa,
has resigned as a Class C director in the Federal
Reserve Bank of Chicago. Mr. Meredith submitted his resignation because of his nomination as the candidate of the Democratic Party
for governor of Iowa. This vacancy and that
of a Class C director at the Federal Reserve
Bank of. Philadelphia have received the consideration of the Board, but no elections have
resulted.
While there has been interesting consideration of amendments to the Federal Reserve Act




AUGUST 1,

1916.

in the Senate, because of the necessity of giving
first consideration to the appropriation bills,
the time given to Federal Reserve Act amendments has been limited. There is reason to
anticipate favorable action upon the amendments at an early date.
All of those applying for instructions and
forms to enable them to apply for exemption
by the Board under the Kern amendment to
the Clayton Act have been furnished with such
information. A large number of applications
have been received and the work upon them
has taken a considerable part of the time of
the Board and its counsel. This amendment
provides, in substance, that nothing in the Act
shall prohibit any officer, director, or employee
of any member bank, or Class A director of a
Federal Reserve Bank who shall first obtain
the consent of the Federal Reserve Board, from
being an officer, director, or employee of not
more than two other banks, banking associations, or trust companies which are not in substantial competition.with such member bank.
The circular sent out by the Board and the
forms to be used in making application are to
be found on another page.
Authority to accept drafts or bills of exchange up to 100 per cent of their capital and
surplus under the Federal Reserve Act has
been granted by the Board jduring July to the
National Bank of Commerce, Seattle, Wash.,
and the Webster and Atlas National Bank,
Boston, Mass.
Hearing of Wisconsin Banks.

Upon the presentation of new facts to the
Board it was voted on July 26 to reopen the
petition filed by certain banks in the State of
Wisconsin, asking that they be transferred
from the Minneapolis to the Chicago Federal
Reserve district. An informal hearing of oral
arguments will, therefore, be given by the
Board in Washington on Tuesday, August 8,
at 3 p. m. New briefs are not necessary, but

373

FEDERAL RESERVE BULLETIN.

AUGUST 1, 1916.

permission is given to file them if desired.
The prospects for earnings in the next few
Applications of banks in the northern penin- months are very good.
Dividends have been declared by Federal
sular of Michigan which desire to intervene in
this petition will be considered at the same Reserve Banks as follows:
time.
Federal Keserve Bank.

Federal Reserve Bank Earnings.

All the Federal Reserve Banks are now
showing earnings in excess of expenses, as will
be seen by the annexed table showing the rates
of earnings over expenses in the months of
May and June and for the six months ending
June 30, 1916. From this statement it will
appear that in the month of May two banks
earned over 6 per cent on their paid-in capital;
three banks earned over 5 per cent, but less
than 6 per cent; three banks earned over 4 per
cent, but less than 5 per cent; two banks earned
over 3 per cent, but less than 4 per cent; two
banks earned 2 per cent or less.
For the month of June the showing is as follows: Two banks earned over 6 per cent; two
banks earned over 5 per cent; two banks earned
over 4 per cent; three banks earned over 3 per
cent; two banks earned over 2 per cent; one
bank earned less than 2 per cent.
For the six-months period it will be noted
that three of the banks earned over 5 per cent
while three more earned in excess of half of
their dividends.
Rate of net earnings, per cent on
capital.
Federal Reserve Bank of—
May, 1916.

Boston

-.

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




i Deficit.

5.2
4.2
4.5
3.4
5.7
4.4
5.2
.5
3.1
7.3
6.1
2.0

Six months
June, 1916. ending June
30,1916.
5.1
3.6
4.2
3.8
5.5
4.0
2.4
1.6
3.3
7.1
6.7
2.9

4.1
2.4
2.9
2.1
5.3
3.9
3.5
i -

.7

2.0
5.1
5.3
.7

Date declared.

Period covered, November, 1914, t o -

Bichmond
Do
Atlanta
Chicago
Dallas.
j
Kansas City....i

December, 1915
April, 1916
June, 1916
.do
January, 1916..
July, 1916

Dee. 31,1915
do
....do;
Mar. 31,1915
June 30,1915
.....do

Kate.

Amount.

Per cent.
5 $151,939.69
1
30,387.65
129,198.00
76,155.83
65,522.74
66,706.95

Use of Words "Federal" and "Reserve."

In addition to the recommended amendments
sent to Congress by the Federal Reserve Board,
which were printed in the July number of the
Federal Reserve Bulletin, there has been sent
the following bill introduced by Representative
Glass, chairman of the Committee on Banking
and Currency of the House of Representatives,
intended to limit the use of the words " Federal"
and "reserve." The text of the bill follows:
A BILL To limit the use of the words "Federal" and "reserve."

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That all
banks, other than Federal Reserve Banks created and
organized under an act of Congress approved on December
twenty-third, nineteen hundred and thirteen, and known
as the Federal Reserve Act, and all firms, partnerships,
or corporations doing the business of bankers, brokers, or
savings institutions, and all insurance, indemnity, and
trust companies are prohibited from using the word
"Federal" or the word "reserve" as a portion of the name
or title of such bank, corporation, firm, or partnership, and
any violation of this prohibition committed after the first
day of November, nineteen hundred and sixteen, shall
subject the party charged therewith to a penalty of $50
for each day it is permitted or repeated: Provided, hoivever,
That this prohibition shall not apply to corporations organized prior to December twenty-third, nineteen hundred and thirteen, under titles which include the words
"Federal" or "reserve" or to firms or partnerships doing
business prior to that date under such titles.

374

FEDERAL RESERVE BULLETIN.

Announcement by the Federal Reserve Board.
The attention of the Federal Reserve Board
has been called to the fact that a circular dated
July 22, 1916, and signed by T. R. Dickson, as
secretary of a conference of bankers held at
St. Louis, contains the following paragraph:
The administrative committee has decided
to bring suit seeking to set aside the Federal
Reserve Board's order of May 1 on the general
grounds herein outlined. Tne committee understands upon good authority that the progosed suit is regarded by the Federal Reserve
•oard in an entirely friendly light.
The order referred to is manifestly Circular
No. 1, series of 1916, which relates to the collection and clearance of checks.
The Board recognizes the right of any member
bank to resort to the courts to test the constitutionality of any provision of the Federal Reserve Act; to procure the court's interpretation
of any part of the Act, or to question the legality of any regulation of the Board. Where
such a course is necessary to remove any doubt
that may exist the counsel for the Board will
cooperate as far as possible in expediting a
hearing in order that the banks and the Board
may have the benefit of a judicial determination of the question involved.
The statement contained in the circular
above referred to that the proposed suit is
regarded by the Federal Reserve Board in an
entirely friendly light might lead to the conclusion that the Board is in doubt as to its
power to promulgate the regulation in question
and, therefore, welcomes litigation designed to
settle the question. The fact that such an
impression may be created by the circular is
evidenced by inquiries received from some of
the banks as to the attitude of the Board.
This statement is, therefore, misleading. The
regulation in question was adopted after
deliberate consideration and is intended to
carry out one of the important purposes of the
Act, namely, the substitution of one compact
clearing system for the many independent collection organizations heretofore in force.




AUGUST 1,

1916.

The Board has not been informed of the character orform of procedure it is proposed to adopt
in order to set aside the regulation of May 1.
If any of the member banks feel aggrieved at
this regulation and desire to resort to the courts
there is, of course, no disposition on the part
of the Board to interpose any objection to any
action they may deem it proper to take. It
desires, however, to correct any impression that
may have been created that the proposed litigation is a "friendly suit" in the sense that this
language is ordinarily used, namely, a suit to
determine some question about which the parties
involved are mutually in doubt.
JULY 28,

1916.

Use of Checks in France.

An interesting communication relating to the
more general use of bank checks in France is
contained in a report of Commercial Attache
C. W. A. Veditz, printed in the Daily Bulletin of Commerce Reports dated July 10,
1916.
An extract from the report is given below:
The Banque de France is urging a more
general use of checks in France, where to-day
the checking system so well known in the
United States is hardly used at all. Practically all transactions are settled by passing
bank notes from hand to hand. This practice
has led to the issuance of both small and large
denominations of bank notes. For ordinary
daily purchases, etc., there are the 5, 10, and 20
franc notes, and for large transactions there are
the 1,000-franc notes.
In a pamphlet of explanations just issued by
the Banque de France the difficulties of the
present French system are well pointed out—
the risks of error in counting, the risks of loss
and of theft, and particularly the surcharging
of the fiduciary circulation of the country by
the fact that most everyone carries about in
his pockets either a few thousand or a few hundred francs, representing for the whole of the
country a sum well up in the billions of francs
which is dead capital, unemployed. Then follows a full description of the use of checks as
known in America—opening of the account,

AUGUST 1,

FEDERAL RESEKVE BULLETIN.

1916.

issuance of check books, correct form of checks,
etc. One feature described in the pamphlet is
somewhat different from the American method:
In order to protect adequately the drawer of a
check that is to be sent through the mails to
another city, and therefore subject to special
risk of loss, the drawer can trace across the face
of the check two parallel lines (barres transcersales), by which sign, under the terms of
the new law, the check can be made negotiable only at a bank, which bank becomes responsible for any payment to a wrongful
holder.
In this connection it is interesting to note
that the French Minister of Finance announces
that hereafter payment made by the French
Government will be largely by check, and that
arrangements will be introduced whereby private establishments can make payments to the
Government by check.

Purchase of Brokers' Paper.

The subjoined suggestions for the purchase
of brokers' paper are drafted by a hard-headed
and experienced banker who has submitted
them to the Board for its information. These
suggestions are not promulgated by the Board
as rules, but they are so evidently based upon
common sense and experience that they may
well be given a wide publicity:
Don't be influenced by the "rate." Of two
names of equal quality, of course take the one
that nets the better rate, but never subordinate
"quality" to "rate."
Favor generally the concerns dealing in
staples (such, for instance, as wholesale groceries, wholesale hardware, and wholesale dry
goods) in preference to those dealing in specialties or luxuries.
In manufacturing concerns also favor those
producing staples as against those producing
specialties, the sale of which depends on extensive advertising and solicitation.
Avoid dealers in articles which become
unseasonable or go out of style and which
would be subject to unusual and severe shrinkage in case of trouble.
Do not buy names which, on account of their
small size, are not justified in selling through
brokers.




53038—16

2

375

Endeavor to get names whose statements
show in excess of 2 for 1 to debt. But take
into consideration that in different lines of
business this proportion will justifiably vary.
Avoid names whose statement shows a large
amount of "bills receivable" (unless the nature
of the business is such that settlement is generally made by note), this condition indicating
that customers are slow in settling.
Where statements show "bills receivable,"
ascertain if the name is in the habit of discounting its "bills receivable."
Be careful of the very large concerns in small
towns and the small concerns in large cities, as
in neither case can you get proper local bank
"checking."
Be careful of names whose business admits of
speculation.
In taking paper secured by warehouse
receipts, see to it that the collateral is stored in
public warehouses.
In ease statements are very old—10, 11, or 12
months—don't buy (except the very highest
class risks) unless the broker will furnish
figures showing liabilities in detail at a recent
date.
Watch crop conditions and do not buy
names located in or whose customers are
largely in districts where a crop failure has
made collections slow or the business hazardous.
Do not buy more than $5,000 of any name
except the very highest class risks.
Insist on a 10-day option on every bill.
Return paper invariably where anything
unfavorable develops in the investigation:
Do not renew notes without any additional
investigation.
Make a complete new investigation once a
year.
Let each name run off occasionally.
Do not take any paper because of the broker's persistence.
Devote the proper amount of time to the
purchase of the note in the first instance and
get all the data you want from the broker at
the time of purchase. Also get financial statement at that time so as to avoid delays.
Legitimate "receivables" indorsed by a name
of good standing should be held in high esteem.
The effect of a mortgage on the plant or real
estate should be carefully considered, if one
exists.
Periodically look up trade references.
Ascertain if the name gives personal indorsements at its local banks or secures such paper

376

FEDERAL RESERVE BULLETIN.

by receivables or otherwise, in which event
insist on the same security.
Be careful in the case of names whose particular line of business is in a depressed condition, and if you buy, be assured that the name
is strong enough to weather the depression.
Insist that broker furnish copy of three last
annual statements; compare very carefully as
to sales, profits, dividends, and net worth.
National Bank Deposits in the United States.

Very interesting figures showing the number
and increase of depositors in national banks in
the United States have been gathered by the
Comptroller of the Currency. The last figures
covering the number of depositors in such banks
were compiled six years ago. Those now given
are made up from 7,538 banks, only 40 banks
having failed to make a return.
The number of depositors is 14,288,059, an
increase of 6,597,591 over the number six years
ago, which was 7,690,468. The increase is 86
per cent. The Southern States show 121 per
cent increase, but the largest actual increase by
geographical divisions is in the Middle Western
States. The Pacific States increased 117 per
cent, and the New England States 84 per cent.
Pennsylvania has the largest number of national-bank depositors and New York is next.
Of course, in preparing the statistics it has been
impossible to allow for duplication among depositors in such cases; for example, as when an
individual carries more than one deposit account, or when a local national bank redeposits
some of the funds deposited with it in a larger
bank in some central city. The figures shown
can not, therefore, be taken as an absolute count
of individual national-bank depositors, but they
are at least fairly comparative.
The following statement on the subject was
given out by the Comptroller of the Currency:
The figures show an unprecedented increase
in the number of national bank depositors
throughout the country. The total number on
May 1, 1916, was 14,288,059, against 7,690,468
on June 30, 1910, the increase being 6,597,591,
or 86 per cent.




AUGUST 1,

1916.

The largest actual increase, by geographical
divisions, was shown in the Middle Western
States, which give an increase of 1,773,370
depositors, although the Southern States lead
in the largest percentage of increase. The
number of depositors in the Southern States
June 30,1910, was 1,272,746. On May 1,1916.
this had been increased to 2,814,508, the
increase being 1,541,762, or 121 per cent. The
Pacific States increased 592,689, or 117per cent.
The New England States show an increase of
388,923, or 84 per cent. The Western States
increased 668,517, or 82 per cent, and the
Eastern States show an increase of 1,629,651
depositors, or 68 per cent,
Pennsylvania leads all the States in the
number of national bank depositors, reporting
2,021,878, an increase since 1910 of 762,738, or
60 per cent. New York shows the next largest
number, 1,199,471, an increase of 529,616, or
79 per cent. Illinois comes third, with 847,637
national bank depositors, an increase since
1910 of 376,910, or 80 per cent. Ohio ranks
fourth in the number of national bank depositors, with 791,760, an increase of 321,076 since
1910, or 68 per cent. Texas comes next, with
658,774 depositors, an increase of 291,161, or 79
per cent". California follows, with 529,290
depositors, an increase of 294,729 since 1910,
or 125 per cent.
The State which showed the largest percentage of increase in the number of national bank
depositors was Tennessee, the increase in six
years being 251 per cent, or from 73,329 depositors in 1910 to 257,508 in 1916. South
Carolina ranks next to Tennessee. The national bank depositors in South Carolina increased 217 per cent, or from 39,217 in 1910 to
124,423 in 1916. Oklahoma comes next to
South Carolina, with an increase of 188 per
cent, national bank depositors in Oklahoma
increasing from 108,475 to 312,826 in the
period named. In percentage of increase
Idaho ranks next with 169 per cent, the increase
in the number of depositors being 52,487. The
next largest percentage of increase is in Virginia, where the number of national bank depositors increased 155 per cent, or from 149,306
in 1910 to 381,662 in 1916. The following
States, in the order named, show the next
largest percentages of increase: North Carolina,
152 per cent; Oregon, 151 per cent; West Virginia, 146 per cent; Arkansas, 145 per cent;
Alabama, 132 per cent; Florida, 127 per cent;
Iowa, 125 per cent. Other States in which the
number of national bank depositors more than

AUGUST 1,

1916.

doubled in the six years from 1910 to 1916
were: Montana, 123 per cent; Utah, 122 per
cent; Connecticut, 114 per cent; South Dakota, 112 per cent; Georgia, 108 per cent; New
Hampshire, 108 per cent; North Dakota, 107
per cent; Mississippi, 105 per cent; and Oregon,
105 per cent. The smallest percentage of increase shown in any State was in Delaware,
where the increase was 1,393, or 5 per cent, the
next smallest being Rhode Island, with an increase of 9,194, or 54 per cent.
Of the 14,288,059 deposit accounts in the
national banks of -the United States, 305,699,
or 2 per cent, are carried in the national banks
of the central reserve cities of New York, Chicago, and St. Louis. One million seven hundred and seventy-eight thousand eight hundred
and nine, or 12 per cent, are with the national
banks in the other reserve cities of the country,
while the country banks report 12,203,551
depositors, or over 85 per cent of the total
number.
Of the 14,288,059 deposit accounts, 9,494,289,
or 66 per cent, are demand deposit accounts;
4,793,770, or 33.6 per cent, are time deposit
accounts.
Of the 9,494,289 demand deposit accounts,
1,498,945 draw interest; the remaining 7,995,244 demand depositors collect no interest. Of
the 4,793,670 time depositors, all draw interest
except 132,652.
In the three central reserve cities, 78.9 per
cent of all depositors are demand depositors.
In the other reserve cities 66.6 per cent are
demand depositors. In the country banks
66 per cent of the total deposit accounts are
demand, the balance being on time.
The total number of deposit accounts on
June 23, 1915, as reported by all the State
banks (exclusive of mutual and stock savings
banks) and by all loan and trust companies
throughout the United States was 15,814,446.
It is therefore seen that the national banks now
have nearly as many deposit accounts as all the
State banks above mentioned and all the loan
and trust companies in the United States combined in June, 1915, the time these figures were
last compiled in regard to them.
From the above report it appears that in the
State of Pennsylvania there are 100 national
bank accounts for every 414 of population; in
Vermont; for each 483 of population; in Oregon,
for each 450 of population; and in Minnesota
and Iowa there are about 100 national bank
accounts for each 480 of population.




377

EEDEBAL RESERVE BULLETIN.

The New England States have 100 national
bank accounts tor each 830 of population; the
Eastern States average 100 accounts for every
577 of population; the Southern States for each
991 of population; the Pacific States for each
579 of population; the Western States for each
574 of population.
Throughout the entire United States there is
an average of 100 national bank accounts for
every 704 of population.
The population statistics used in these calculations are the estimated figures of July 1/ 1915.
Commercial Failures in June.

Commercial failures in Federal Reserve districts during the month of June, as compiled
by R. G. Dun & Co. for the Federal Reserve
Bulletin, continue to be less in number and in
respect to total liabilities than those for the
corresponding month in 1915. Failures for
June show a marked decrease in number and
total liabilities than for the month of May.
The total failures in June, 1916, were 1,227
and the liabilities aggregated $11,929,341.
The figures, by districts, for June and of the
three previous years are given below:
Number
of
Liabilities.
failures.

District.
No 1

124
199
55
93
71
119
131
68
28
68
78
193

No 2

No 3
...
No. 4
No 5
No. 6
No 7 . .
No 8

No 9 .
No. 10
No 11
N o 12

..

Total

1916
1915
1914
1913

,.

U, 129,407
2,599,669
532,205
704,632
437,730
1, 648,358
1,004,002
1,466,823
152,872
448,232
546,699
1,258,712

1,227
1,754
1,160
1,145

11,929,341
18,313,118
57,881,264
20,767,625

Effects of New Clearing System.

Many questions are being asked as to the
effects of the new clearing system. It is; of
course, much too early to make complete report
further than to.say that, generally speaking,
the clearing operations were started on July 15,

378

FEDERAL RESERVE BULLETIN.

with very little friction, and the number of
checks handled is increasing daily.
It will perhaps be interesting to the readers
of the Bulletin to note some of the statements
that have already been given out by the various
Federal Reserve Banks. The following brief
statements by officers of the New York; Chicago,
and Philadelphia Federal Reserve Banks are
therefore embodied.
Statement by Mr. R. H. Treman-, deputy
governor of the Federal Reserve Bank of New
York, under date of July 15, 1916:
The banks have usually m ide arrangements
with each other for these collections, which in
many cases have not been entirely satisfactory.
The routes chosen have often been roundabout;
thus necessitating a waste of time in collecting
the items, and some abuses have grown up in
connection therewith, so that these arrangements have never produced a simple, comprehensive, and scientific plan, such as is now contemplated by the plan inaugurated by the Federal Reserve Board.
There will be less money tied up in the mails,
and each community generally will probably
benefit by the retention in the local banks of
funds which have hitherto been transferred to
the larger cities as a necessary incident to the
existing collection arrangements.
Statement by Mr. C. R. McKay, deputy governor Federal Reserve Bank of Chicago, under
date of July 18,1916:
Under the new collection system, which was
inaugurated simultaneously by the 12 Federal
Reserve Banks on July 15, the Federal Reserve
Bank of Chicago received from its members on
Saturday, the first day of the operation of the
new system, about 7,500 items, 3,500 of which
were checks on Chicago banks.
Indications are that member banks in the
reserve cities and other collecting centers of this
district will use the system actively, most of the
items being received from these banks. Today a large volume is coming in from other
Federal Reserve Banks in the adjoining districts, namely, St. Louis, Minneapolis, and
Cleveland. There is also an increase in the
number of items coming from out-of-town
member banks, as msfriy of them did not begin
mailing their items until the 15th instant.
Most of the items received from country banks
are drawn on Chicago. Some of the country




AUGUST 1,1916.

banks, however, have begun sending out-oftown items.
Chicago banks are cooperating with the
Federal Reserve Bank by arranging to increase
gradually their deposits of checks. It is now
apparent that the collection system will be used
by all classes of member banks, but principally
by those in the reserve cities and collecting
centers of the district.
Statement by Mr. C. J. Rhoads, governor
Federal Reserve Bank of Philadelphia, under
date of July 24, 1916:
The banks themselves have usually made
arrangements with each other for these collections, which in many cases have not been
entirely satisfactory. The routes chosen have
often been roundabout, thus necessitating a
waste of time in collecting the items, and some
abuses have grown up in connection therewith,
so that these arrangements have never produced a simple, comprehensive, and scientific
plan, such as is now contemplated by the plan
inaugurated by the Federal Reserve Board.
There will be less money tied up in the mails,
and each community generally will probably
benefit by the retention in the local banks of
funds which have hitherto been transferred to
the larger cities as a necessary incident to the
existing collection arrangements.
This new collection system is only one of
many benefits which the operation of the
Federal Reserve System will bring to the business interests of the country, and which will
inevitably result in better and more scientific
banking methods. The country has already
benefited through the freedom from currency
panics which the Federal Reserve Act has
insured, and the greater stability in the supply
and cost of credit which the system is bringing
about.
In order to bring about this needed reform,
the national banks and the State banks, which
are cooperating with the Federal Reserve System, are called upon to forego the income from
"•exchange" charges which they have been
receiving for remitting for checks drawn upon
themselves. This will result in a general revision of the relations between the banks and that
class of depositors whose accounts have been
carried at an actual loss to the bank. These
depositors will undoubtedly be asked either to
keep their balances sufficiently large to compensate the bank for the services rendered, or
to pay the bank a reasonable, though nominal,
sum for such services, so that the bank will not

AUGUST 1,1916.

379

FEDERAL RESERVE BULLETIN.

be required to perform any service at a loss.
Many bank depositors probably fail to realize
the items of cost in banking. For instance,
every check passing through the average size
bank costs from 2 to 3 cents to handle, and this
is typical of similar small items of expense
which have entailed some loss, the aggregate
of which is quite large.
The various changes made necessary in the
banks in the development of this banking system, which is producing results so advantageous
to the country, have entailed upon the member
banks some losses of revenue, and the business
community should properly be expected to
share the cost of the evolution of the system.

The foregoing statement shows the aggregate of
increased capital for the period of the banks
embraced in statement was
$1, 690,000
Against this there was a reduction of capital
owing to liquidations (other than for consolidation with other national banks) and reductions of capital of
1,050,000
Net increase

...

640,000

Fiduciary Powers.

Applications from the following banks for
permission to act under section 11 (k) of the
Federal Reserve act have been approved by
the Board since the issue of the July Bulletin,
as follows:
DISTRICT NO. 3.

New National Bank Charters.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Dubois National Bank, Dubois, Pa.

The Comptroller of the Currency reports the
following increases and reductions in the number of national banks and the capital of
DISTRICT NO. 6.
national banks during the period from June 24,
Trustee, executor, and administrator:
1916, to July .21, 1916, inclusive:
Peoples National Bank, McMinnville, Tenn.
Banks.

New charters issued to
With capital of
Increase of capital approved f o r . . . . . . . . . .
With new capital of

10

DISTRICT NO. 7.

1650,000 Trustee, executor, administrator, and registrar of stocks
10
and bonds:
1, 040,000
Des Moines National Bank, Des Moines, Iowa.
Trustee, executor, and administrator:
Aggregate number of new charters and banks
First National Bank, Le Mars, Iowa.
increasing capital
18
With aggregate of new capital authorized
1,690,000
DISTRICT No.

Number of banks liquidating (other than
those consolidating with other national
banks)
12
Capital of same banks
Number of banks reducing capital
2
Reduction of capital

8.

Executor and administrator:
Merchants-Laclede National Bank, St. Louis, Mo.
900, 000

DISTRICT NO. 10.

Trustee, executor, and administrator:
150,000
First National Bank, Decatur, Nebr.

Total number of banks going into liquidaDISTRICT NO. 11.
tion or reducing capital (other than those
Trustee, executor, administrator, and registrar of stocks
consolidating with other national banks). 14
) capital reduction.
1,050, 000 and bonds:
Central Rational Bank, San Angelo, Tex.




380

AUGUST 1, 1916.

FEDERAL RESERVE BULLETIN.

GOLD SETTLEMENT FUND.
Gold held in the Gold Settlement Fund and
Federal Reserve Agents7 Fund reached a new
high point on July 6 when the aggregate of the
two funds was $168,500,000. Heavy withdrawals have since been made by the Federal
Reserve Banks in order to make payments
to the Treasury on account of withdrawal of
Government deposits, the total amount thus
handled through the fund between July 10
and July 20 having been $34,500,000, which
included repayment by the Federal Reserve
Banks of Richmond, Atlanta, and Dallas of
the $15,000,000 special deposit placed with
them in September, 1915.

Amount of clearings and transfers, Federal Reserve Banks,
from June 23, 1916, to July 20, 1916, inclusive.
[In thousands of dollars.]
Total
clearings. Balances. Transfers.
Settlement o—
f

June 29, 1916.
July 6, 1916
July 13, 1916...
July 20, 1916

72,996
76,955
67,203
75,779

Total
292,933
1,395,073
Previously reported
Total since Jan. 1, 1916
1,688,006
Total for 1915 (including transfers)..
... 1,052,649
Total transfers, 1916
69,116

6,379
16,207
6,795
5,884.

2,527
1,550
3,327
1,660

35,265
149,571

9,064
60,052

184,836

69,116

Total clearings and transfers,
May 20, 1915, to July 20, 1916.. 2,809,771

Deposits and withdrawals by Federal Reserve Banks and Federal Reserve Agents, and where made, Jan. 1, 1916,
to June 30, 1916.
[In thousands of dollars.]
Federal Reserve Bank and Federal Reserve Agent.
Treasury, Subtreasury,
or Mint, at—

New York.

Boston.

Philadelphia.

Cleveland.

Richmond.

Atlanta.

Chicago;

Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depose • With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn.
Boston
New York
Philadelphia
Washington
Chicago
New Orleans
Total

4,500

2,000

.....:.

56,000
2,000

2,500

22,500
1,400

660

3,080

4,660

6,710

'.
. .

280

3,700
24,800

430

4,500

2,000

56,000

2,000

2,500

23,900

660

3,080

4,660

6,710

710

3,700

24,800

500

500

Federal Reserve Bank and Federal Reserve Agent.
St. Louis.

Treasury,'Subtreasury, or Mint, at—

Minneapolis.

Kansas City.

Depos- With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn.
New York
Philadplnhia
Chicago
St Louis

2,260

,

8,572.5

650

2,730

50

Dallas.
Depose
ited.

San Francisco.

With- Depos- With- Depos- Withdrawn. ited. , drawn. ited. drawn.

10
4,257.5




1,090

10

San Francisco
Total

16,980
50

2,260

650

2, 730

8,572.5

By all banks.

4,277.5

18,070

4,500
56,000
2,500
5.600
24' 800
2,780
430

22,510
34,220

96,610

75,720

2,000

10

16,980

AUGUST l, 1916.

381

FEDEEAL EESEBVE BULLETIN.

Summary of deposits and withdrawals to June 30, 1916.
[In thousands of dollars.]
May 20,1915, to
Dec. 31,1915.1

Total from May
20,1915, to June
30,1916.

Jan. 1,1916, to
June 30,1916.

Treasury, Subtreasury, or Mint at—
Deposited.
Boston
. .
New York .
Philadelphia
Cincinnati . . . . . .
Washington
Chicago...
.
St. Louis
New Orleans
San Francisco
D enver

•
...

.

.

.

-

Total

3,230
87,000
12,560
1,500
21,890
13,430
6,700
3,510
10,380

. . . . . .

160,200

:....•

Balance in gold settlement fund June 30 1916
Balance in Federal reserve agents' fund June 30,1916 .
Total

Withdrawn.

7,000.5
1,650
2,000
2,025
7,810
5,000
94.5
25,580

Deposited.

Withdrawn.

Deposited.

2,000

5,600
24,800
2,780
430

34,220

16,980

7,730
143,000
15,060
1,500
27,490
38,230
9,480
3,940
10,380

96,610

75,720

256,810

4,500
56,000
2,500

22,510

10

-

Withdrawn.
2,000
29,510.5
35,870
2,000
2,035
7,810
21,980
94.5
101,300
112,930
42,580
256,810

i For detailed statement see Federal Reserve Bulletin, vol. 2, No. 2, p . 61.

Changes in ownership of gold.
[In thousands of dollars.]
To June 22,1916.

Federal Reserve Bank o—
f

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




From June 23,1916, to July 20,1916.*

Balance
to credit
June 22,
1916, plus Balance
Decrease. Increase. net de- July 20, Decrease. Increase. Decrease. Increase.
posits
1916.
of gold
since that
date.
8,700 7,430
30 955
32,527 3 917
10,792 11 152
' 13,083 9 953
15,002
392
22,948
5,562
11,034 6 394
' 6,-228 5,628
14,313 7,180.5
14,132 4,004.5
32,182 6,752

135,045

• •

Total change from
May 20, 1915, to
July 20,1916.2

157,993

157,993

99,320

16,052
6,010
12,275
11,161
11,321
1 940
7,832
5,649
4,608
11,710.5
4,540.5
6,221
99,320

8,622
159,990

24,945
8,358
9

1,368
1,548
2,270

20,678

10,289
5,208
18,843
14,668
31,651

745

1,020

4,530
536

531

27,241

27,241

17,322
40,885
10,801
14,451
16,550

180,668

1 Changes in ownership of gold during period June 23,1916, to July 20,1916, equal 9.02 per cent of obligations settled.
2 Total changes in ovynership of gold e^ual 6.43 per cent of total obligations settled.

180,668

382

FEDERAL RESERVE BULLETIN.

AUGUST 1, 1916.

Summary of transactions for week ending June £3, 1916, to July 20, 1916'
[In thousands of dollars.]
June 26, Change in own Gold.
Settlement of June 29,1916.
Transfers.
ership of gold.
1916,
Balance
balance in
last statefund after
ment, June
With- Deposclearing.
Net
Total Total
Net
In22, 1916.
Decrease. crease.
drawn. ited. Debit. Credit. debits. debits. credits. credits.

Federal Reserve Bank of—

Boston
New Y o r k . . . .
Philadelphia
Cleveland
Richmond... ..
. . . .
Atlanta
Chicago
St. Louis
Minneapolis.
. . . . .
Kansas City
Dallas
San Francisco

14 430
2 955
13,167
11,302
14 493
5,392
4 562
6 494
5 628
8,180.5
9,154.5
10 152
105,910

Total

...




. .

.
:

500
450

is

3,500
150

377
1,500

100
100

7,070

2,527

2,527

7,804
17,237
9,208
1,865
192 7,817
1,780
21
11,139
10,869
1,689
136
4,579
317
245

8,151
12,760
11,414
2,406
7,625
1,759
12,707
9,180
137
5,724
742
391

• 347

6,379

72,996

6,379

4,477

72,996

2,206
541
1,568
1
1,145
425
146

14,777
3,927
15,553
11,343
14,751
5,389
9,630
4,655
5,629
9,325.5
9,102.5
8,798
112,880

347

2,028
192
3

2,266
41
1,568

1,839

1,354
5,416

1
1,145
48
5,416

3,000

100

15,000

200
1,000

15,166

50
310

1,000

350

1,041

100
250
20

1,200
3,170

16,310

1,550

1,550

16,207

6,070
26,297
8,764
1,994
6,894
1,678
12,612
8,292
124
3,573
428
229

10,860
4,790
11,131
12,127 '*3*363*
3,156
1,162
7,499
605
2,689
1,011
11,571
9,615
1,323
522
398
4,834
1,261
1,367
939
1,584
1,355

76,955

76,955

16,207

16,667
4,761
18,916
12,455
15,666
6,400
9,939
5,878
5,777
10,586.5
10,021.5
8,953
126,020

14,166

691

4,890
3,363
1,162
605
1,011
1,323
148
1,261
939
155

14,857

14,857

Changes in ownGold.
Transfers.
Settlement of July 13, 1916.
July 13,1916, ership of gold.
Balance
last statebalance in
ment, July
fund after
With- DeposNet
Total Total
Net
De- . In6, 1916.
clearing.
drawn. ited. Debit. Credit. debits. debits. credits. credits.
crease. crease.

Federal Reserve Bank o—
f

Total

14,777
3,927
15,553
11,343
14,751
5 389
9,630
4,655
5,629
9,325.5
9,102.5
8 798
112,880

Total

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

2,449
60

Change in ownSettlement of July 6, 1916.
Gold.
Transfers.
July 6,1916, ership of gold.
Balance
balance in
last statefund after
ment, June
With- Depos- Debit. Credit. Net
Total Total
clearing.
In29, 1916.
Net
Dedrawn. ited.
debits. debits. credits. credits.
crease. crease.

Federal Reserve Bank of—

Boston
New Y o r k . . .
Philadelphia
Cleveland
Richmond.
Atlanta... .
Chicago
St. Louis
Minneapolis
Kansas City
Dallas

3,000
120

16,667
4,761
18,916
12,455
15,666
6,400
9,939
5 878
5,777
10,586.5
10,021.5
8,953
126,020

4,500
50
5,000

2,000
130

380
547
2,000

410

1,500

400

4,441
346
507
678
823

300.
647
380

20

9,570

2,040

3,327
1

3,327

Overdrawn.

6,795

6^295
17,154
9,584
1,963
7,850
1,403
9,991
8,339
54
4,112
292
166

9,441
12,713
9,238
1,456
7,172
1,507
9,168
8,458
234
5,064
696
2,056

3,146

119
180
952
404
1,890

20,193
1-1,133
16,200
11,898
15,398
1,504
11,016
5,997
5,657
11,538.5
9,758.5
10,463

67,203

67,203

6,795

118,490

104

5,894
507
678
423

3,526
1,654
104
119

120
952

243
7 865

1,510
7 865

AUGUST 1,

383

FEDERAL RESERVE BULLETIN.

1916.

Summary of transactions for week ending June 23, 1916, to July 20,. 1916—Continued.
Gold.
Transfers.
Balance
last statement, July
13, 1916. With- Depos- Debit. Credit.
drawn. ited.

Federal Reserve Bank of—

20,193
4,000
1-1,133
10,000
"5," 666'
16,200
50
11,898
6,000
15,398
290
1,504
11,016
5,666
5,997
5,657
1,000
11,538.5
9,758.5
5,010
10,463
100
3,500

Boston
New York
Philadelphia
Cleveland
Richmond

.

Chicago
St. Louis
Minneapolis
Kansas City .
Dallas
•SanJFrancisco

.

. . .
. . .

Total .

118,490

..4

29,560

960

Net
debit.
141
3,817
687

500
200

548
549

500

460
700

10,390

1,660
1

142

1,660

Changes in ownJuly 20ership of gold.
1916,
balance in
fund after
InNet
DeTotal Total
debits. credits. credits. clearing. crease. crease.

Settlement of July 20, 1916.

5,884

10,579 10,438
19,377 15,560
9,711 10,786
3,457
2,770
7,531 9,164
1,322
1,758
8,951 10,267
9,118
8,570
583
34
4,400
5,572
590
842
160
18

1,633
436
1,316

75,779

5,884

75,779

16,052
6,010
12,275
11,161
11,321
1,940
7,832
5,649
4,608
11,710.5
4,540.5
6,221

1,172
252

141
2,857

99,320

1,075

6,132

1,075

687
X,633
436
1,816
348
1,049
1,172
208
842
6,132

Overdrawn.

Federal Reserve Agents' Fund—Summary of transactions, June 23, 1916, to July 20, 1916, inclusive.
[In thousands of dollars.]

Federal Reserve Agent at—

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

June 22,
1916,
balance.

3,410
5,000
13,450
3,310
3,650
1,350
3,700
630
9,350

. .

43,850

Total

Week ending June
29,1916.

Week ending July
6,1916.

Withdrawn, Balance.

Withdrawn.

120
100
450

200
100
970

3,290
4,900
13,000
3,310
3,650
1,350
3,500
530
9,350

100
200

42,880

400

100

Balance.

Week ending July 13,1916.
Withdrawn.

3,190
4,700
13,000
3,310
3,550
1,350
3,500
530
9,350

Withdrawn.

Deposited.

Balance.

500

3,560
4,700
13,000
3,310
3,550
1,350
3,500
430
9,350

200
150

100

3,360
4,550
13,000
3,310
3,550
1,350
3,500
430
9,250

500 1 42,750

450

42,300

130

42,480

Week ending July
20,1916.

230

;;;;;

ibb'

Balance,

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank in effect Aug. 1, 1916.
Trade acceptances.
AgriculMaturities
Maturities Maturities of over 30 Maturities tural and
of over 10
of over .60
of 10 days to 30 days, to 60 days, to 90 days, live-stock
Over 60 to
and less.
inclusive. inclusive. inclusive. paper over To 30 days, To 60 days, 90 days,
90 days.
inclusive. inclusive.
inclusive.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Atlanta (New Orleans
branch)
Chicago
St. Louis
Minneapolis
Kansas C i t y . . .
Dallas
•San Francisco..

Commodity
paper.

bought
in open
market.

i3|

3 31-4

3

3|-4

43
34

I

3-5

1 Rate for commodity paper maturing within 90 days.
2 Rate for bills of exchange in open market operations.
s Rate for trade acceptances bought in open market without member bank indorsement.
4 A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized.
& Rate for commodity paper maturing within 30 days, 34 per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4J .per cent; over 90 days,
.5 per cent.
NOTE.—Rate for bankers' acceptances, 2 to 4 per cent.




53038—16

3

384

FEDERAL RESERVE BULLETIN.

AUGUST 1,1916.

EARNINGS AND EXPENSES OF FEDERAL profits from exchange operations, also from
RESERVE BANKS FOR THE SIX MONTHS the sale of United States bonds and notes, etc.
ENDING JUNE 30, 1916,
The largest relative increase as compared

Aggregate earnings of the Federal Keserve
Banks for the six months ending June 30,1916,
were $1,824,436, while total current expenses for
the same period were $1,019,926.20. The latter
figure includes, besides the expenses of operation, $836,519.08, also the cost of Federal Reserve notes issued by the banks, $26,941.59, the
expense of exchanging Federal Reserve notes
between banks and of shipping unfit notes to
Washington for destruction, $2,078.13, the cost,
including taxes, of Federal Reserve bank notes
issued by the banks, $2,698*24, and the amortization and depreciation charges aggregating
$151,689.16 for the six-month period.
Total earnings for the first six months exceed
by $804,509.80 aggregate current expenses for
the period, the excess earnings being at the
yearly rate of about 2.9 per cent on an aggregate paid-in capital of $54,854,000, reported as
at close of business on June 30, 1916. On page
373 of this number are given the rates of the
excess earnings of each bank for the six months
ending June 30, also the rates separately for
each of the months of May and June of the
present year.
Combined earnings for the second quarter
of the present year were 40 per cent in excess
of like figures for the first quarter, while excess
earnings for the second quarter were more
than double those reported for the first quarter
of the present year.
Of the total earnings for the six months, 26.3
per cent, compared with 34.2 per cent for the
first three months of the present year, was
from bills discounted for member banks;
24.7 per cent, as against 19.6 per cent, from
United States bonds and notes; 23.4 per cent,
as against 20.2 per cent, from bills bought in
the open market; and 19.6 per cent, as against
20.5 per cent, from municipal warrants. The
remainder, about 6 per cent, represents commissions earned on acceptances and warrants
bought for other Federal Reserve Banks,




with the earnings for the first quarter of the
year is shown in the earnings from United
States bonds and notes, while the largest relative decrease is shown in the earnings from discounts. The most recent change in the sources
of the banks' earnings may be seen from the
percentages of the several classes of earnings
for the month of June, which were as follows:
30.5 per cent from bills bought in open market;
29.2 per cent from United States bonds and
notes; 20.1 per cent from bills discounted; and
14 per cent from municipal warrants.
These percentages vary by banks and groups
of banks. Thus, over 80 per cent of the combined 6-month earnings of the three southern
banks came from bills discounted, as against less
than 3 per cent in the case of the three eastern
banks, and about 25 per cent in the case of
the four banks in the Middle and North West.
Nearly 60 per cent of the total earnings of the
Boston bank and over 45 per cent of the earnings of the New York bank were from bills
bought in the open market. On the other hand,
the southern banks report only about 4 per cent,
and the four western banks about 17 per cent,
of their total earnings from this class of transactions.
Next to New York, Cleveland reports the
largest earnings from municipal warrants,
these earnings constituting over 40 per cent of
the bank's total earnings for the six months, as
against 37 per cent in the case of the New York
bank. The four western and the San Francisco
banks derived between 35 and 45 per cent of
their total earnings from United States Government securities, while of the combined earnings of the three eastern banks only about 15
per cent proceeded from this source.
Of the total expenses of operation for the
six months, over 28 per cent went as compensation to bank officers and over 25 per cent as
salaries to the clerical staff of the banks, these
percentages remaining fairly constant from

AUGUST 1,

1916.

FEDERAL RESERVE BULLETIN.

month to month. The total amounts paid
during the six months by the banks for the support of the Federal Reserve Board were $109,973.20, or over 13 per cent of the total expenses of operation of the banks. Rent constituted about 9.3 per cent of total operating
expenses, other items of importance, in the
order of their volume, being postage, printing
and stationery, and directors' fees.
The total current expenses are exclusive of
$47,358.92, expended in the purchase during
the present year of additional furniture and




385

equipment, Chicago and New York reporting
the largest figures; and of $77,063.56 paid for
the printing and shipping of Federal Reserve
notes. Over 40 per cent of this expenditure is
reported by the New York Federal Reserve
Bank.
In continuation of similar figures published
in previous issues of. the Bulletin there are presented below detailed data of earnings and
expenses of each Federal Reserve Bank and the
system as a whole for the first six months of
the present calendar and fiscal year.

Earnings and expenses of each Federal Reserve Bank of the system as a whole for the six months ending June 30, 1916.

CO
OO

EARNINGS.

Boston.

Bills discounted—members... $4,153.48
Bills bought in open market.. 100,650.27
Investments:
United States bonds and
22,727. 74
notes. . .
38,582.62
Warrants 3,890.91
Commissions received
Amortization of appreciation
on United States bonds
Sundry profits
2,675.39
Total

172,680.41

Atlanta
(including
New
Orleans
branch).

Chicago.

St. Louis.

Minneapolis.

$7,082.61 $120,674.42
5,169.93
19,487.75

$77,125.65
9,436.04

$52,980.30
26,305,53

$16,597.37
15,127.48

$21,594.35
9,423.03

55,662.83
55,675.38

15,393.95
1,296.69

12,871.85
884.93
1,503.77

87,573.87
40,250.52

31,325.43
11,638.91

28,268.03
17,869.70

72,834.80
8,579.84

14,116.36

177.42

19.71

4,885.82

25,548.10

9,856.11

2,368.56

152,256.72

138,085.99

142,554. 70

106,708.06

232,658.32

84,545.30

New York.

Philadelphia.

$6,187.38
157,346.56

$7,800.44
53,990.32

33,336.26
127,237.11
19,297.56

39,487.48
36,862.12

1,249.64
344,654.51

Cleveland.

Richmond.

San Francisco.

Total.

$11,155.31
22,236.27

$479,198.38
427,616.70

21,246.66
189.01

30,530.44
19,363.00

451,259.34
358,429.83
24,692.24

16 872 08
498.77

1,284.97

3,686.58

79,523.67

158,284.13

125,512.59

$6,075.6

$5,545.20

$7,885.50

$109,973.20

150.00
981.38

150.00
1,818.04

3,021.76
13,098.70

Kansas
City.

Dallas.

$51,117.62 $102,729.45
8,381.02
62.50

16,872.08
66,367.43

86,971.60 1,824,436.00

CURRENT EXPENSES.
Expenses of operation:
Assessment account of
expenses of Federal Reserve Board
Federal Advisory Council (fees and traveling
Governors' conferences...
Federal Reserve Agents'
conferences
SalariesBank officers
Clerical staff
Special officers and
watchmen..
All other
Directors—
Per diem allowance...
Traveling expenses...
Officers and clerks traveling e x p e n s e s (less
amounts included in
Governors' and Federal
Reserve Agents' conferences)
Legal fees
Rent
Telephone
Telegraph.
Postage.
Expressage
Insurance and premiums
on fidelity bonds
Light, heat, and power...
Printing and stationery..
Repairs and alterations..
All other expenses, n. s . . .
Less amounts transferred
to transit department..
Total expenses of operation




$10,316.30
206.00
671.01

$22,110. 40 $10,538.80
512.50
2,706.19

153.00
596.14

$11,876.30

-$6,707.60

$4,844.00

$13,408.40

$5,565.00

$5,100.10

294.32
774.61

150.00
1,107.13

176.34
749.20

452.40
740.37

150.00
1,080.44

405.75
978.05

221.45
896.14

47.69

184.00

69.44

103.11

129.69

132.25

332.40

396.81

39,399.84
45,421.99

19,000.00
16,897.34

19,375.00
13,777.02

15,253.07
13,566.33

15,304.14
16,282.74

25,500.00
25,332.10

23,349.00
16,899.75

12,999.96
10,106.68

12,522.97
17,836.50

16,929.12
13,209.30

19,800.00
11,074.05

236,183.00
209,981.43

3,685.00
1,336.51

2,997.07

205.00
43.20

303.33
814.65

1,611.00

2,531.00
1,704.27

810.00
600.00

692.50

255.00
728.47

914.66
932.33

60.00

14,064.56
6,159.43

1,790.00
470.00
336.35

2,325.00
690.00
840.00

1,630.00
510.00
461.74

890.00
490.00
610.84

1,620.00
860.00
1,179.00

1,410.00
950.00
1,114.20

1,060.00
400.00
510.00

2,450^00
560.00
633.90

1,570.00
450.00
695.90

1,970.00
1,225.00
1,902.47

880.00
620.00
853.85

1,040.00
220.00

18,635.00
7,445.00
9,138.25

1,056.53
1,000.00
6,250.02
554.41
35.95
857.64
•11.59

1-196.33

221.07
1,500.00
4,249.98
539.43
18.00
1,657.52
680.30

343.71
1,000.04
3,035.11
492.84
108.21
1,608.62
8.45

231.86
725.00
2,975.00
173.66
93.81
2,010.08
657.38

627.60
300.00
6,004.00
164.56
226.06
1,892.02
2.32

453.15
1,271.17
13,287.50
627.42
150.33
3,026.35
299.23

122.80

' 20," 370* 66'
701.60
250.35
3,881.93
48.93

497.49
750.00
2,500.02
271.70
98.47
2,023.32
230.98

315.64
300.00
4,249.98
291.43
191.58
4,663.04
713..02

532.14
1,222.40

7,725.57
390.56
90.06
2,572.98
470.67

444.75
317.35
1,328.23
2,451.93

665.15
1,814.67
6,924.00
229.56
197.28
862.83
67.26

4,870.81
9,883.28
77,571.18
4,881.92
1,777.45
26,384.56
5,642.06

709.63
518. 25
920.97
155.37
3,158. 47

1,699.47
663.13
1,678.23
38.10
1,668.40

1,113.46

94.61
595.61
1,551.08
15.75
1,559.28

675. 89
85.67
1,619.13
182.30
2,795.68

2,157.36
888.57
2,281. 44
230.45
4,277.71

1,103.30

1,048.10

6,310.38
28.37
12,252.82

1,888.78
162.37
1,187.55

1.001.03
101.45
911.26

708.60
584.50
2,574.80
176.96
2,410.20

238.25
778.52
1,589.69
50.74
3,259.36

1,040.16
152.40
1,645.76
450.94
1,126.41

11,566.67
4.266.65
24,834.52
1,627.35
35,037.47

77.84
16, 749.90
9,577.63

215. &5

977.84

1,773.23
34.55
430.33

i -760. 78
55,423. 86

163,868.97

66,684.63

i -453.27
58,468. 84

52,313.67

56,563.58

-1,214.05
100,589.22

67,915.84

42,562.45

60,945.60

53,561.60

57,620.82

836,519.08

Cost of Federal Reserve notes
issued by bank (including
expressage, insurance, etc.)..
Miscellaneous charges account Federal Reserve notes.
Cost of Federal Reserve Bank:
notes issued including taxes
Amortization charges:
Federal Reserve notes
All other organization expenses
Depreciation on furniture and
e o uir> ment

$3,762.80

115,520.00

S920.00

$765. 07

$900.00

$646.82

S666. 86

$1,615.13

$2,105.86

$26,941.59

274.07

139.05

2,078.13

632. 45

$1 171.61

1,802.97

2,424.00

4,800.00

2,761.08

1,454.76

23,242.77

11,271.24

95,680.21

2,698.24

2,698.24
9 999.96
8,650.86

18,083.70

7,879.26

2,698.02

1,943.63

210,170.65

77,427.52

75,188.54

134,483.86

74,829.20

62,897.45

3,600.00

13,242.72

$15,000.00

1 645.32

2 4nn.no

2,000.00

53,213.67

58,852.74

115,589.22

94,419.09

54,009.27

82,314.50

' 55,176. 73

89,341.03

47,855.32

117,069.10

-9,873.79

25,514. 40

75,969.63

70,335.86

14,244. 85

804,509.80

3.9

3.5

2.0

5.1

5.3

.7

2.9

$41,828. 85 $33,255.41

$6,422.59

$269,995.53

1,829.10

Total current expenses. 70,837.52
Excess of earnings over current expenses
101,842.89
Per cent of capital paid in
4.1
June 30, 1916.

21,262.32
2,250.11

11,690.11

3,000.00

2.4

2.9

2.1

5.3

2

2

-.7

32,766.18
72,726. 75 1,019,926.20

COST OF F U R N I T U R E AND EQUIPMENT, INCLUDING VAULTS,
Balance as reported on Jan. 1,
1916
Additional purchases during
6 months ending June 30,
1916
...
....
Total
Depreciation charged during
6 months ending June 30,
1916
Balance July 1,1916....

$18,491.31 $20,187.08

$9,500.00

$6, 228.92

$23,000.00

$20,346.13

$54,159.64

2,001.50

157. 69

193.30

1,136.60

16,207.73

9,306.77

839.19

961.48

1,807.08

38,526.80

20,492.81

20,344.77

9,693.30

7,365.52

39,207.73

29,652.90-

54,998.83

42,790.33

35,062.49

3,000.00

2,698.02

1,943.63

1,829.10

2,250.11

15,000.00

1,645.32

2,400.00

2,000.00

9,796.38

35,828.78

18,549.18

18,515.67

5,115.41

24,207.73

28,007.58

52,598.83

40,790.33

35,062.49

6,422.59

284,588.27

$19,932.85

$11,252.52

$9,924.60

$34,914.91

$542,288.89

$9,595.24

$26,980.36

3,201.14

11,546.44

12,796.38

9,693.30

317,354.45

3
£

32,766.18

W
tel

47,358.92
6,422.59

§

COST OF UNISSUED FEDERAL RESERVE NOTES.
Balance as reported on Jan. 1,
1916
Additional cost of Federal
R e s e r v e n o t e s for 6
months ending June 30,
1916 .
Total
Cost of Federal Reserve notes
issued and charged to current expenses during 6
months ending June 30,1916
Balance July 1,1916




$38,633.35 $232,086.79

$43,172.04

$42,757.61

$17,368.34

$9,502.36

$60,380.06

$22,363.46

tei
580.32

31,178.65

187.60

253.76

3,883.58

5,395.78

12,691.01

240.00

11,137. 77

3,898.15

7,616.94

77,063.56

39,213.67

263,265. 44

43,359.64

43,011.37

21,251.92

14,898.14

73,071.07

22,363. 46

20,172. 85

22,390.29

13,822.75

42,531.85

619,352.45

646. 82

666. 86

1,615.13

2,105. 86

27,441. 59

73,071.07

22,363.46

19,526.03

21,723.43

12,207. 62

40,425.99

591,910.86

4,262.80

15,520.00

920.00

765.07

900.00

39.05

34,950.87

247,745.44

42,439.64

42,246.30

20,351.92

14,859.09

i Credit.

3 Deficit.

CO

Recapitulation showing earnings and current expenses, by months, from January to June, 1916, for each Federal Reserve Bank and the system as a whole.
[In thousands of dollars.]

Boston.

Earnings:
January .
February
March-.
Anril
May ^"
June
Total
Current expenses:
January
February
March
April
Mav
June ..

. .

--- -

March
April

. . . .

Mav
June

- . . .




Philadelphia.

15

Cleveland. Richmond.

Atlanta
(including
New
Orleans
branch).

21
23
32
30
34
33

31
41
56
68
80
68

16
17
20
23
30
32

24
22
24
23
26
24

24

14
21
38
32
*32

173

. . .

Total
Earnings in excess of current
expenses:
January
February

Total

New York.

344

152

138

11
11
13
12
12
12

37
31
35
33
40
34

14
13
12
12
13
13

71

210

10
12
19
18
22
21
102

Chicago.

St. Louis.

Minneapolis.

Kansas
City,

9
11
14
14
17
19

11
12
13
15

17

33
31
37
39
47
46

143

107

233

13
12
12
12
13
13

9
9
8
9
10
9

10
10
10
10
10
9

77

75

54

10
21
35
40
34

1
1
9
26
19
19

3
5
8
11
17
19

134

75

63

1-6

Total.

18
20
20
22
22
24

10
13
16
19

17

17
21
27
29
32
32

21

365

84

80

158

126

87

1,825

17
17
16
16
18
32

15
16
16
16
16
15

9
10
8
8
9
10

13
12
15
14
14
14

10
10
8
10
8
9

13
12
12
12
12
12

171
163
165
164
175
182

59

116

94

54

82

55

73

1,020

15
13
16
14
16
15

14
5
6
6
9
8

16
14
21
23
29
14

i - 6
i - 5
i - 2

3
1
4
5
6
7

4
9
12
15
18
18

8
10
12
12
14
15

i —5
i -2
1
4
7
9

57
73
127
167
198
183

89

48

117

i -10

26

76

71

14

805

15
16
16
19

i Deficit.

i -2
1
4

12

San
Francisco.

Dallas.

00
00
00

8

228
236
292

331
373

w

w
w
d

AOGGST 1, 1916.

389

FEDEEAL RESERVE BULLETIN. *

CIRCULARS AND REGULATIONS.
Special instructions to Federal Reserve
Agents in connection with the reports which
they will make to the Federal Reserve Board
to enable it to act upon applications filed under
the Kern amendment to the Clayton Act, were
sent out on July 6, 1916. With the issue of
these instructions the Federal Reserve Board
adopts the policy of issuing as " special instructions77 circulars not of general interest to member banks of the system, but intended primarily
for the assistance of Federal Reserve Agents
and the 12 Federal Reserve Banks. Following
the special instructions will be found the blanks
to be filled out by those desiring to make application under the Kern amendment. These
blanks can be obtained from the Federal Reserve Board.
Section 8 of the Clayton Act does not become
effective until October 15, 1916, but in order
that those who will be affected by its provisions may have ample time to take such action
as may be necessary to comply with the law,
the Board is making the forms and instructions available at this time.

(c) That no member bank in a city of more than 200,000
inhabitants shall have as a director or other officer or employee any private banker or any director or other officer
or employee of any other bank or trust company located
in the same place.
EXCEPTIONS.

The provisions of section 8—
(1) Do not apply to mutual savings banks not having a
capital stock represented by shares.
(2) Do not prohibit a person from being at the same time
(a) a Class A director of a Federal Reserve Bank and also
an officer or director, or both an officer and a director, in
one member bank; (b) an officer, director, or employee of
one member bank and one other bank or trust company,
whether a member bank or nonmember bank, where the
entire capital stock of one is owned by the stockholders
of the other.
THE KERN AMENDMENT.

By an act of Congress approved May 15, 1916, section 8
was amended by the addition of a further proviso reading
as follows:
"Nothing in this act shall prohibit any officer, director,
or employee of any member bank, or Class A director of a
Federal Reserve Bank, who shall first procure the consent
of the Federal Reserve Board * * * from being an
officer, director, or employee of not more than two other
banks * * * if such other bank * * * is not in
substantial competition with such member bank."
SPECIAL INSTRUCTIONS. NO. 1 OF 1916.
The duty imposed upon the Federal Reserve Board in
WASHINGTON, July 6,1916.
passing upon any application made under authority of
To All Federal Reserve Agents:
this amendment is to determine whether or not the two
The prohibitions of section 8 of the Clayton Act which
banks in question (or either of them) are in substantial
relate to interlocking bank directors go into effect on
competition with the member bank. If both are nonOctober 15, 1916. These prohibitions relate to banks
member«banks the act does not require that they shall
organized or operating under the laws of the United States,
not be in substantial competition with each other.
and therefore apply to State banks or trust companies
In reaching a conclusion on this point it will be neceswhich are members of the Federal Reserve System as well
as to national banks. For convenience, therefore, banks sary for the Board to call upon the Federal Reserve Agent,
" organized or operating under the laws of the United as its local representative, to make investigation of the
facts in each case, to report the same to the Board and to
States" will be referred to as "member banks.'*
give the Board the benefit of his recommendation whether
ANALYSIS OF SECTION 8 OF THE ACT.
the consent applied for shall be granted or refused. It is
therefore necessary to call to the attention of the Federal
As originally enacted, section 8 of the Clayton Act pro- Reserve Agents some of the factors which must be convides, in substance—
sidered in determining the question of whether or not the
(a) That no person shall be a director, officer, or em- banks involved are in substantial competition.
ployee of a member bank having resources aggregating
more than $5,000,000 and at the same time a director,
PURPOSES OF THE ACT AND THE AMENDMENT.
officer, or employee of any other member bank.
The significance of the language " substantial competi(6) That no private banker or person who is a director
of a nonmember bank having resources aggregating more tion" can not be fully understood without considering
than $5,000,000 shall be eligible to serve at the same time the purpose of the original Act as well as that of the amendment.
as a director in any member bank.




390

FEDERAL RESERVE BULLETIN.

As outlined by the Judiciary Committee, in reporting
the original bill to the House, the purpose of section 8 of
the original Clayton Act was "to prevent as far as possible
control of great aggregations of money and capital through
the medium of common directors between banks and banking associations, the object being to prevent the concentration of money or its distribution through a system of
interlocking directorates.''
It will be observed that the Act does not undertake to
prevent interlocking directorates of banks located in small
cities and having small aggregate resources. It applies in
terms to the qualification of directors, officers, and employees of banks (a) in cities of more than 200,000 inhabitants or (h) having resources aggregating more than
$5,000,000.
While the general purpose of the Act, as indicated by.
its title, was "to supplement existing laws against unlawful restraints and monopolies," and while monopolies are
created by a restraint of legitimate competition, a literal
interpretation of section 8 as originally enacted would
prohibit a person from serving at the same time as a
director, officer, or employee of two or more banks, under
certain circumstances, whether or not such banks were
competitors. The Kern amendment, however, authorizes
the Board to permit a director, officer, or employee of a
member bank, who otherwise would be ineligible, to serve
as a director, officer, or employee of not more than two
other banks or trust companies, whether State or national,
provided such other banks or trust companies are not in
substantial competition with- such member bank.
It should be borne in mind that the Act does not vest
an arbitrary discretion in the Board to permit the same
person to serve on the board of directors of any two or
more banks, when such banks come within the restrictive
language of the Act as originally passed; but it merely
confers authority upon the board to permit interlocking
directorates when such banks are not in substantial competition within the meaning of the Act.
SUBSTANTIAL COMPETITION.

It is manifest that no fixed rule can be prescribed by
which this question can be automatically determined.
The facts in each case must be carefully considered and it
is the duty of the Board to withhold its consent in any
case in which it would defeat the purposes of the Act to
permit the same person to serve as an officer, director, or
employee of more than one bank.
If the two banks in question are not competitors in any
respect, no question arises. If they do compete, the very
difficult question arises whether or not the competition is
"substantial."
It is necessary to keep in mind that the main purpose
of the Act was to prevent the monopolization and centralization of credit through interlocking directorates of
banking institutions. One of the injurious results of
such conditions is that the public is deprived of the benefit of legitimate competition.




AUGUST 1, 1916.

In general, therefore,, two banks coming within the prohibition of the original Act would be deemed to be in substantial competition within the meaning of the language
used in the amendment if the business engaged in by such
banks under natural and normal conditions conflicts or
interferes, or if the cessation of competition between the
two would be injurious to customers or would-be customers, or would probably result in appreciably lessening the
volume of business or kinds of business of either institution.
It is realized that some difficulty will be experienced in
the application of this test.
Two banks engaged in the same character of business
(for example, where both receive commercial deposits and
make commercial loans) would be regarded as in substantial competition if their fields of activity extended over
the same geographical territory. If their operations were
not carried on in the same geographical territory, then,
although they engaged in the same class of business, they
would not necessarily be regarded as substantial competitors.
Again, if they conducted their operations in the same
place, but because of their comparatively small size in
relation to the total banking opportunities of the locality,
and because of the fact that they did not deal with the same
class of customers, the cessation of competition between
them might, from the public point of view, be unimportant,
chey would not necessarily be deemed to be in substantial
competition. Or if their operations were conducted in
the same locality, but the character of business engaged in
differs fundamentally (for example, where one does only
an essentially commercial banking business, while the
other does only an essentially trust-company or fiduciary
business), such banks need not be regarded as in substantial competition.
It is therefore necessary to consider the scope or extent
of territory that a bank's operations cover and the character
and kinds of business it engages in. Size, measured by
aggregate resources, will constitute one of the factors to be
considered, since to increase the volume of loanable funds
usually increases the radius of a bank's operations. A
bank with $100,000;000 resources would seek investments
in a larger area and of a more diverse character than a bank
with $5,000,000, and so might come into competition with
banks located some distance away, while the bank with
$5,000,000 resources might not extend its activities to any
real extent beyond the borders of the city in which it is
located. For example, a bank in New York might come
into substantial competition with a bank in Chicago if
both were engaged in the same class of business and if both
had become so large as to be more than local institutions.
Where the operations of the two banks cover a common
territory from a geographical standpoint, it is necessary to
consider carefully the character of business engaged in.
As a very large proportion of the member banks do a commercial banking business, the volume of this business
within the territory covered by the operations of the banks

AUGUST 1,

391

FEDERAL RESERVE BULLETIN.

1916.

in question becomes an important factor. In a city of all applications received before August 15, 1916, on or
250,000 inhabitants any two banks which engaged in a before September 15, 1916.
commercial banking business to any great extent would
presumably come into substantial competition, whereas Form 94.
in a city of 2,000,000 inhabitants the operations of one bank APPLICATION FOR PERMISSION OF THE FEDERAL RESERVE BOARD TO
might be substantially confined to the wholesale district SERVE AT THE SAME TIME AS DIRECTOR, OFFICER, OR EMPLOYEE
OF A MEMBER BANK AND NOT MORE THAN TWO OTHER BANKS, BANKonly, while those of another might be substantially conING ASSOCIATIONS, OR TRUST COMPANIES.
fined to the retail district only, and so might be noncompetitive in the sense that an increase or decrease in the Pursuant to the provisions of section 8 of an act of Congress entitled
"An act to
against
and
business of one would not affect the business of the other. monopolies, supplement existing laws approvedunlawful restraints and
and for other purposes,"
October 15, 1914,
RESUME.

It is therefore necessary that consideration should be
given—
(1) To the size in aggregate resources of banks involved.
(2) To the character of business engaged in, i. e., the
extent of commercial business and extent of purely investment or trust company business of the two institutions.
(3) Whether the operations of the two banks cover the
same geographical territory.
(4) Whether the two banks actually compete to any
appreciable extent in any important activity, for example,
(a) in soliciting deposits on demand or on time from other
banks or individuals, (6) in the purchase or sale of commercial paper or other securities, (c) in the purchase or
sale of foreign exchange, (<2) in soliciting trusteeships, etc.
The form of application approved by the Board is
intended to furnish an analysis of the character of business
of the banks involved as far as it is possible to determine
this from the books of the bank. The Federal Reserve
Agent should supplement this, however, with any information he may be able to obtain and should base his
recommendation upon the facts in each case. If he
concludes that there is substantial competition between
the banks or that interlocking directorates or common
officers or employees of the two banks might result in any
injury to the public, or in any substantial restraint of or
detriment to the business of either bank, he should recommend that the application be refused. The Board, in
reaching a decision, will carefully consider the recommendation of the Federal Eeserve Agent and will base its
conclusion upon the report and recommendation of the
agent together with other information which its own
investigation may disclose.
The Kern amendment authorizes the Federal Reserve
Board at its discretion "* * * to revoke such consent. " In order that the Federal Reserve Board may
revoke its consent at any time it becomes necessary,
Federal*Reserve Agents should keep it advised of any
change either in local business conditions or in the resources or character of business conducted by the banks
which may tend to make them substantial competitors.
In view of the great amount of time necessary to an
adequate consideration of each case, it is desirable that
directors, officers, and employees file their applications
as soon as possible. The Board will endeavor to act upon




53038—16-

amended by an act of Congress approved May 15,1916,1 hereby make
application for the consent of the Federal Reserve Board to serve at the
same time as
of the
(Director, officer, or employee.)
of
, which is a member of the Federal Reserve
System, and as
of the
(Director, officer, or employee.)
of
a corporation created and organized under
the laws of
and as
(Director, officer, or employee.)
of the
of
a corporation created and organized under the laws of
I hereby represent to the said Board that to the best of my knowledge
and belief the banks, banking associations, or trust companies herein
named are not in substantial competition with the member bank or
banks mentioned above within the terms of the Act as interpreted by
the Federal Reserve Board in its letter of July 6, 1916, to all Federal
Reserve Agents, as will more fully appear from the statements furnished
by the said banking institutions, which are made a part of this application.
(Name of applicant.)
To the FEDERAL RESERVE BOARD,

m, D. C.

(Date.)
THE APPLICANT IS REQUESTED TO ANSWER THE QUESTIONS ON THE
REVERSE SIDE.

Name of applicant
Residence
Principal business or occupation
Business address,.
List of firms of which applicant is a member and the corporations of
which he is a director, officer, or employee:
Firm or corporation.

Business.

Official position in
firm or corporation.

Form 94a.
STATEMENT SUBMITTED AT THE REQUEST OF

,

(Director, officer, or employee.)
IN CONNECTION W I T H THE APPLICATION MADE TO THE FEDERAL R E SERVE BOARD FOR PERMISSION TO SERVE AT THE SAME TIME AS D I RECTOR, OFFICER, OR EMPLOYEE OF A MEMBER BANK AND NOT MORE
THAN TWO OTHER BANKS, BANKING ASSOCIATIONS, OR TRUST COMPANIES.

Name of banking institution
Location: No
Street
,.
City or town
State
Population of city or town (census of 1910)
Character of business of the community which the banking institution
serves
Character of business of the institution

392

FEDERAL RESERVE BULLETIN.

ASSETS.

Loans:
Onreal estate
j
On other collateral
UnsecuredCustomers' paper.
Purchased paper..
Acceptances (drafts accepted for customers
per contra)
Investments:
United States bonds..
Other bonds and warrants
Stocks
Real estate owned
Cash due from banks and
trust companies
....
All other assets

LIABILITIES.

Capital stock
I
Surplus
Undivided profits
Deposits:
Due to banks and trust
Demand (individual).
Savings
Other time
Liability on drafts, accepted payable at a future date (per contra).
All other liabilities

Total.
Total.
Describe nature of demand deposits .
Describe nature of time deposits
NOTE.—Zn filling in blanks under assets and liabilities use figures
shown in last report filed with the Comptroller of the Currency or with
the State bank supervisor.
Describe nature of acceptance liabilities
State practice of bank in respect to purchasing commercial paper, e. g.
continuous or seasonal
What volume of deposits are commercial to the extent of serving as a basis
for the extension of lines of credit?
Describe character of collateral loans
. Describe character of investments
Describe practice of bank in respect to acquiring and disposing of investment securities
Describe nature of foreign exchange business, if any, done by the bank..
Describe kind and extent offiduciarybusiness done by the bank
I hereby certify that the foregoing is a true statement to the best of my
knowledge and belief.
Cashier.

(Date.)
NOTE 1.—The signing officer is requested to attach to the statement a
copy of the last report filed with the Comptroller of the Currency, if a
National bank, or with the State bank commissioner or supervisor, if a
State institution.
NOTE 2.—If sufficient space has not been provided for replies, the signing officer should attach hereto a blank sheet of paper and continue the
answers thereon.




AUGUST 1,

1916.

This letter was sent out by the Board on
July 18:
Where two or more persons desire to make
application for the Board's consent, under the
Item amendment to the Clayton Act, to serve
on the boards of directors of the same two
banks, it will be sufficient if one Form 94a is
filed by each bank for the first applicant and
reference is made to this form by subsequent
applicants desiring to serve on the same two
boards, provided, however, if either bank is
required to make a report of its condition to the
Comptroller of the Currency or to the State
authorities after Form 94a has been filed, a new
Form 94a should be filed with the first application subsequent to such report. To complete
the records of the Board and to facilitate its
work it is desired that Form 94a shall be filed
by the two banks involved in each case where
the question of substantial competition is to be
passed upon. Thus if the same persons desire
to serve on the boards of Bank A and Bank B
and the first applicant has filed Form 94a for
Bank A and also one for Bank B, subsequent
applicants may refer to these forms until either
Bank A or Bank B has been required to make a
later report of its condition to the Comptroller
of the Currency or to the State authorities.
If Form 94a has been filed by Bank A and
Bank B for applicants desiring to serve with
these two banks, it will not be sufficient for an
applicant desiring to serve on the boards of
Bank A and Bank C to refer to Form 94a filed
by Bank A in connection with Bank B.

AUGUST 1,

1916.

PBDEEAL RESERVE BULLETIN.

393

INFORMAL RULINGS OF THE BOARD.
"The legislature can not delegate its power
to make law, but it can make a law to delegate
a power to determine some fact or state of
things upon which the law makes or intends
to make its own action depend. To deny this,
would be to stop the wheels of government.
There are many things upon which wise and
useful legislation must depend which cannot
Membership of State Banks and Trust Companies.
be known to the lawmaking power and must
Your memorandum in reference to Circular therefore be a subject of inquiry and deterNo. 14 and Regulation M, series of 1915, which mination outside of the halls of legislation."
relates to State banks and trust companies
The Board does not feel that it is one of its
as members of the Federal Reserve system, functions to undertake to restrict State banks
has been submitted to and considered by the or trust companies in the exercise of true bankBoard.
ing or trust-company powers as defined by the
It appears that you are of the opinion that laws of the State in which they are created.
many of the State banks and trust companies In passing upon the applications of State
are apprehensive that membership in the sys- banks and trust companies^ however, it betem may involve an undue restriction of their lieves it to be its duty to admit only those
corporate activities as a result of future regu- institutions which are solvent and sound and
lations of the Board and you feel that some whose membership will not constitute an
assurance should be given to applying banks element of weakness in the system. The
that, as members, their status, so far as the Board does not consider that it is a prerequisite
exercise of legitimate banking and trust com- to the admission of any State bank or trust
pany powers is concerned, should be more company that it should possess any certain
definitely determined.
amount of paper eligible for rediscount with a
As the extent of the Board''s power to adopt Federal Reserve Bank. Congress has proany specific regulation involves a question of vided that the privileges and advantages of
law which must be determined by the facts in membership may be extended to State banks
each case, it is, of course, impracticable to and trust companies, thus creating one comoutline definitely the scope of all future regu- pact banking system while still preserving the
lations. In order, however, that the attitude integrity of both the State and national
of the Board may be made clear, I am instructed systems. Leaving aside any question of their
to state to you that • the Board understands duty to the country, it is manifestly to the
that it is not its function to undertake to im- best interest of every strong and sound State
pose on the activities of member banks any bank and trust company to contribute its
restrictions that axe not contemplated by the share to the strength and protective power of
Act, but only to prescribe such regulations as the Federal Reserve system by subscribing
are designed to carrv out the purposes of the to the capital stock oi its Federal Reserve
Act.
Bank and by maintaining its required reserve.
There are a great many decisions of our This is true whether the State bank or trust
courts dealing with the subject of the scope of company has a small proportion of its assets
authority of administrative bodies to promul- in liquid paper eligible for rediscount or has
gate regulations. The principles established any paper of such description at all. The
by these decisions will, of course, be adhered fact that it has little eligible paper would not
to by the Board in adopting its regulations.
of itself make its membership an element of
While Congress could not delegate its power weakness or danger, and it is obvious that as a
to make a law, it can, as stated in Field v. member of the system it would be in a position
Clark, 148 U. S., 649, 694, /'make a law to to contract for loans and to obtain cash from
delegate a power to determine some fact or other member banks having paper eligible for
state of things upon which the law makes or rediscount and thus indirectly to obtain the
intends to make its own action depend,'7 or, desired accommodation. The ability to lend
as expressed in the' case of Locke's Appeal, assistance to member banks directly and indirectly will be increased as the strength of the
72 Pa. St., 491, 498—

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:




394

FEDERAL RESERVE BULLETIN.

system and lending power of the Federal
Reserve Banks are increased. There is no
reason wiry such assistance should not be
given freely to a member State bank while in
times of stress the nonmember banks may
find the member banks less disposed or able to
give them this indirect assistance.
It is, of course, indispensable that any paper
offered for rediscount to a Federal Reserve
Bank sould conform to the provisions of the
Act and of the regulations of the Board. It is
clear, however, that a Federal Reserve Bank
will have to look all the more carefully into the
status of a State member bank asking for rediscounts if such State bank or trust company
exercises banking functions that are likely to
interfere with the liquidity of such State member institution or may lead to overextension.
In other words, the Board might consider
that the exercise of extraordinary powers,
such as might make an applying State bank or
trust company an undesirable member, a sufficient reason to refuse the grant of the application. After such State bank or trust company, however, has. become a member bank
the Board does not expect to interfere with the
exercise of those banking and trust company
powers authorized by its charter. If the exercise of such powers should tend to interfere
with the liquid and sound condition of a State
bank or trust company member, the Federal
Reserve Bank would, of course, be justified in
taking due precaution in dealing with the applications for rediscount of such State bank or
trust company.
JULY 25,

1916.

Notes Payable " On or Before."

Your letter of June 22 raises the question
whether a note payable " on or before 77 a certain
date is eligible for rediscount with a Federal
Reserve Bank, provided it conforms to the
law and regulations of the Board in all other
respects.
Section 13 of the Federal Reserve Act
provides that "notes, drafts, and bills admitted to discount under the terms of this
paragraph must have a maturity at the time
of discount of not more than 90 days.77
A bill therefore, which is payable "on or
before77 90 days is eligible within the terms of
that section. The fact that the maker would
have the option to pay the bill before the
maximum maturity would not of itself make
such paper undesirable. Apparently the in-




tention of Congress was merely to provide that
a Federal Reserve Bank should not, except
under certain specified conditions, discount
paper with a maturity of more than 90 days.
The negotiable instruments law specifically
provides that a bill of the kind described is a
negotiable instrument. Section 4 of that act
provides that "an instrument is payable at a
determinable future time, within the meaning
of this act, which is expressed to be payable
on or before a fixed or determinable future time
specified therein.77
The question raised by you has been submitted to counsel for the Board, who is of 77
the
opinion that a bill payable "on or before a
certain date is negotiable paper and, if otherwise in conformity with the provisions of law
and of the Federal Reserve Act, is eligible for
discount by a Federal Reserve Bank.
JUNE 28,

1916.

Clayton Act.

With further reference to your letter of June
28, you are advised that the provisions of the
Clayton Act do not prohibit a person from
serving at the same time as a director of a
mutual savings bank not having a capital
stock represented by shares and as a director
of a member bank, regardless of whether the
two institutions are in substantial competition.
If, therefore, the institution which you have
in mind is operated under the mutual system
and has no capital stock represented by shares,
it would come within the exception which you
mentioned in the prohibitions of the Clayton
Act.
JULY 1,

1916.

Your letter of June 29, addressed to the
Comptroller of the Currency, has been referred
to this office for attention.
Inclosed please find copy of the Kern amendment to the Clayton Act, approved May 15,
1916.
You are advised that there is nothing in the
Clayton Act or in the Kern amendment thereto
which prohibits a person from serving at the
same time as a director in two national banks
located in a city of less than 200,000 inhabitants, provided neither has deposits, capital,
surplus, and undivided profits aggregating
more than .$5,000,000.
JULY 6,

1916.

AUGUST 1,

1916.

FEDEKAL RESERVE BULLETIN.

Your letter of July 12 is received, asking
whether the Federal Reserve Act, as now
amended, permits the service on the board of
directors of a national bank after October 15,
1916, of a member of a private banking firm
under certain conditions.
Section 22 of the Federal Reserve Act, which
relates to the fees to be paid officers, directors,
and employees of member banks, and is the
only portion of that Act which could have a
bearing on this (Question, has not been amended.
You are advised, however, that section 8 of
the Clayton Antitrust Act, approved October
15, 1914, provides in part:
"That from and after two years from the
date of the approval of this act * * * 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/ 7
Under this language it would seem that a
private banker or a member of a private banking firm would be ineligible after October 15,
1916, to serve at the same time as a director of
a member bank.
The Kern amendment to the Clayton Act,
approved May 15, 1916, provides in substance
that nothing in the act shall prohibit any
officer, director, or employee of any member
bank, who shall first procure the consent of the
Federal Reserve Board, from serving at the
same time as an officer, director, or employee
of not more than two other banks, banking
associations, or trust companies which are not
in substantial competition with such member
bank. No change is made, however, in the
provisions of the original Clayton Act regarding
the eligibility of private bankers.

395

buy adequate machinery for use thereon, is
received.
In reply, you are informed that under the
Federal Reserve Act member banks of the
Federal Reserve System, which comprise all
national banks and such State banks and trust
companies as have joined, may loan funds
on farm lands for a limited period, protecting
themselves by mortgage. Of course there is
nothing in the Act to compel a member bank
to make such loans or to fix the rates at which
they shall be made. Moreover, the Federal Reserve Banks are not authorized to rediscount
for a member bank loans based on farm-land
security.
As you have doubtless seen in the public
print, the rural credits bill, which was passed
at this session of Congress, has been signed by
the President and is now a law. This bill will
doubtless be of interest to you, and the Senate
document office has been requested to forward
a copy to you direct.
For your information several circulars issued
by the Federal Reserve Board in this connection
are inclosed herewith.
JULY 8,

1916.

Cattle Paper.

Comparatively few of the Federal Reserve
Banks discount cattle paper in large amounts.
While the usual reports made, to the Federal
Reserve Board show the amount of such paper
discounted by the several Federal Reserve
Banks, the detailed information requested by
you could not be furnished without first making
it the subject of special reports.
The Federal Reserve Banks of Dallas and
Kansas City have., occasion to handle more
of this paper than any of the other banks. Approximately 40 per cent of the total paper discounted for the month of June by the Dallas
Bank and approximately 60 per cent of the
JULY 13, 1916.
total amount discounted during the same month
by the Kansas City Bank consisted of liveNotes for Farm Implements.
Your letter of June 27, relative to borrowing stock paper.
JULY 12, 1916.
money on your farm in order that you may




396

FEDERAL BESBBVE BULLETIN.

AUGUST 1,

1916.

LAW DEPARTMENT.
The following opinions of counsel have been serve Act, from being an officer, or director, or
authorized for publication by the Board since both an officer and director in one member
bank.
the last edition of the Bulletin:
The amendment to the Clayton Act, May 15,
Provisos to Clayton Act Cumulative.
1916, known as the Kern amendment, constiAn officer, director, or employee of a member bank, who tutes a further exception and is added as a
would otherwise come within the prohibitory language of fourth proviso to the second paragraph of
the Clayton Act, may serve as a director, officer, or employee of one other bank where the entire capital of one section 8. The amendment reads as follows:
is owned by stockholders in the other, and at the same
And provided further7 That nothing in this
time, under the Kern amendment, may, with the consent act shall prohibit any officer, director, or emof the Federal Reserve Board, serve a3 an officer, director, ployee of any member bank or Class A director
or employee of not more than two other banks which are of a Federal Reserve Bank, who shall first pronot in substantial competition with the member bank.
cure the consent of the Federal Reserve
Board * * * from being an officer, direcJULY 13, 1916.
tor, or employee of not more than two other
SIR: There has been submitted to this office banks * * * if such other bank, * * *
for an opinion the question of whether an offi- is not in substantial competition with such
cer, director, or employee of a member bank member bank.
may, under the proviso contained in paragraph
According to the usual rules of construction,
2 of section 8 of the Clayton Act, serve as a a proviso takes out of the operation of the
director, other officer, or employee of not more body of the enactment that which otherwise
than one other member bank where the entire would be within it. It restrains the generality
capital stock of one is owned by stockholders of the previous provisions. (Savings Bank v.
in the other, and at the same time, under the United States, 86 U. S., 227-236.)
Kern amendment, serve as an officer, director,
In the case of Deitch v. Staub (115 Fed.
or employee of not more than two other banks Rep., 309) the court said, on page 314:
which are not in substantial competition with
The primary and usual office of a proviso is
the member bank, provided the consent of the to except something out of a statute which
would otherwise, be within it. Its use is to
Federal Reserve Board is first obtained.
As originally enacted, section 8 of the Clayton take special instances out of a general class.
(Suth St. Const., sees. 222, 223; Gibbons v.
Act contained three exceptions to its prohibi- Ogden, 9 Wheat., 191, 6 L. Ed., 23.)
tory provisions, which excerptions were incorSee also Georgia Banking Co. v. Smith (128
porated in paragraph 2 of the section as pro- U.S., 174).
visos and read as follows:
Applying this rule to the three provisos
(1) That nothing in this section shall apply mentioned above and to the Kern amendment
to mutual savings banks not having a capital which follows them and forms a fourth prostock represented by shares.
viso, it is apparent that each takes out.of the
(2) That a director or other officer or em- operation of the prohibiting clauses of the
ployee of such bank, banking association, or
trust company may be a director or other officer statute that which otherwise would be foror employee of not more than one other bank bidden. The substance of the amendment is
or trust -company organized under the laws of that nothing in the prohibitory clauses of the
the United States or any State where the entire Act as it stood at the time the amendment was
capital stock of one is owned by stockholders in passed should prevent an officer, director, or
the other.
(3) That nothing contained in this section employee of a member bank from serving as
shall forbid a director of Class A of a Federal an officer, director, or employee of not more
Reserve Bank, as defined in the Federal Re- than two other banks which are not in sub-




AUGUST 1,

FEDERAL RESERVE BULLETIN.

1916.

stantial competition with the member bank,
provided the consent of the Federal Reserve
Board is first obtained.
In the opinion of this office, therefore, an
officer, director, or employee of a member
bank who would otherwise come within the
prohibitory language of the Act may serve as
a director, officer, or employee of one other
bank or trust company where the entire capital
stock of one is owned by stockholders in the
other, and at the same time, under the Kern
amendment, may serve as an officer, director,
or employee of not more than two other banks
which are not in substantial competition with
the member bank, if the consent of the Federal
Reserve Board is first obtained.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. CHARLES S. HAMLIN,

Governor Federal Reserve Board.

Member Bank Acceptances.
When a member bank purchases its own acceptance
before maturity such acceptance need not be included
in the aggregate of acceptances authorized by section 13.
JULY 25,

1916.

SIR: Section 13 of the Federal Reserve Act
as amended by an act approved March 3, 1915,
provides in part as follows:
Any member bank may accept drafts or bills
of exchange drawn uj>on it and growing out
of transactions involving the importation or
exportation of goods having not more than six
months' sight to run; but no bank shall accept
such bills to an amount equal at any time in
the aggregate to more than one-half of its
paid-up and unimpaired capital stock and
surplus, except by authority of the Federal
Reserve Board, under such general regulations
as said board may prescribe, but not to exceed
the capital stock and surplus of such bank,
and such regulations shall apply to all banks




397

alike regardless of the amount of capital stock
and surplus.
The opinion of this office has been requested
on the question of whether or not acceptances
of a member bank purchased by it before
maturity would continue to be treated as
acceptances within the meaning of this provision and subject to the limitations imposed.
In other words, if we assume that a member
bank has accepted drafts or bills of exchange
drawn upon it to an amount equal to its capital
and surplus, and before the maturity of such
acceptances it purchased and carried in its
assets 25 per cent of its own acceptances,
would such bank be regarded as having outstanding acceptances equal to 100 per cent or
acceptances equal to 75 per cent of its capital
and surplus ?
In the opinion of this office the purchase of
such an acceptance cancels the obligation of
the bank, and so long as it is held by the bank
it does not constitute a liability which may be
regarded as an acceptance. When the member bank executes its acceptance of a draft or
bill of exchange it enters into a contract or
obligation to pay at maturity the amount
specified therein. Whether this payment is
made at or before maturity the obligation is
discharged. In this view member banks might
legally deduct from the amount of acceptances
outstanding those purchased and held by such
member banks in considering the limit provided by section 13 as amended.
Of course, if a member bank subsequently
disposed of its acceptance, either by sale or
hypothecation, thus renewing its obligation to
pay it at maturity, the acceptance should be
included in the amount outstanding.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. CHARLES S. HAMLIN,

Governor Federal Reserve Board

398

FEDERAL BESEBVE BULLETIN.

AUGUST I ,

SUMMARY OF BUSINESS IN THE UNITED STATES.
No. 2— District No.
3—PhilaDistrict No. 1—Boston. DistrictYork.
New
delphia.
General business

District No. 4—Cleveland.

Less than usual Very good Very good

Good

in near"ly a l l
lines
Crops:
Generally good
Under average. Good, exConditions
cept corn.
Not encourag- SatisfacPromising
Outlook
tory.
ing.
Busy and
Industries of tliG Busy; to a large extent
on old contracts.
optimisdistrict.
Slight inConstruction, build- Ahead of any of the Increasing.
ing.
last 15 years.
crease.
Record inForeign trade
B e t t e r t h a n last ... do
creases
month, but not up to
in exthe high point preports
viously made.
and imIncreasing.
do
Increase
Bank clGsrinffs
mid-year
quietness.

Improved over last month,
except wheat in part of

District No. 5—
Richmond.

District No. 6—
Atlanta.

Good

Good.

Fair to good

10 per cent damaged.

Favorable
Fair
Fairly active, but All operating full
d a m a g e d by
time; plenty of
Activity in building re- Normal
Fair.
Excellent

Maximum of avaliable labor
and raw material supplies.
ported; permit records
show no increase.

Horses, mules, Limited but fair
grain, cotton,
tobacco, foodstuffs, metal,
coal.
Averaging 3 % per cent in- 60 per cent increase
8
crease over last July and
over last year.
4 per cent increase over
June, 1916.

Do.
Increase over last Marked i n - Slight in- Commercial paper £ to \ per Easv; demand becent higher than last
low normal.
crease
crease and
month but below a
recently; month.
firm.
week or two ago.
Increases Post office receipts same as Above normal
Increasing
Railroad, post of- Increased
All increasing, especially post office, and other rereported. last month. Railroad re-

Monev rates

ceipts.

Labor conditions... Fair, but still some-

what unsettled.

Outlook

For more conservative Satisfactory
business and therefore for more lasting
prosperity.
District No. 7—
Chicago.

General business

Good
Satisfactory

Industries of the Active
district.
Construction build- Fair
ing.
Foreign trade
Bank clearings

Increase

Money rates

:

Increasing:...

Railroad, post-ofP ce
and otherreceipts.
Labor conditions..
Outlook
Remarks




Good
do
A condition of sustained prosperity in
practically all lines
throughout the seventh district.

scarce,
too high.
Encourag- Satisfactory almost without
exception.
ing.

District No. 8 District No.
—
St. Louis.
apolis.
Very active for
summer.
Wheat, one-half
1915 harvest"
quality good!
Corn, tobacco,
cotton, excellent.
Active . . .
Slight decrease*
allied lines
active.
Normal

Satisfactory

Crops:
Condition
Outlook

Garment work- Decrease
in numers still on
b e r of
strike.
strikes;
labor

ceipts based on loads
billed 3 per cent increase.
Strike difficulties fewer.
Wages higher. Service
inefficient.

Good

District No. 10—Kansas
City.

Continues good

fice and express.

Complaint of scar- Normal.
city and high
wages.

Promising; onlv Good.
complaint wet
weather in agric u l t u r a l districts.
District No. 11—
Dallas.

District No. 12—
San Francisco.

Conditions good... Good.

Excellent. Good

Fait...

Damaged in some
sections

...do

....do.....

Good.

Active
do .

Promising

With few exceptions work- Fairly active
Active
ing to capacity.
Increased activity
Show large in- 12 Der pen increase.

Quiet and little
doing now.

Horses and mules increase;
grain, slow; manufactured
Increase for six A p p r ox- Increased..
Show slight increase.
months of imately
year and last the same.
Higher dis- No change Hardening
Appreciably
higher.
count and
commerc i a 1
Railroads inIncreased
Considerable gain
crease; post
office, slight
increase.
Labor well emImproved
Satisfactory Better
ployed and conand labor in
tented.
demand.
Recent rains make
Verv sood Promising
Bright
outlook good.
Seasonable Demand
• weather has for money slowly
stimulated
improvretail trade
and helped
ing.
crops.
•

crease.
Hampered
by
labor troubles.
30 Der cent increase.
Tendency
crease.
Increase

Unsettled.
Favorable

to in-

AUGDST 1, 1916.

FEDERAL RESERVE BULLETIN.

399

GENERAL BUSINESS CONDITIONS.
There is given on the preceding page a summary of business conditions in the United States
by Federal Reserve districts. The reports are
furnished by the Federal Reserve Agents, who
are the chairmen of the boards of directors for
the several districts. Below are the detailed
reports as of approximately July 23 :
DISTRICT NO. 1—BOSTON.

While business in almost all lines continues
good, the conservative tendency which was evident last month in many lines of trade still continues. The pressure to place new orders and
to stock up heavily with raw material which
was so prevalent a month or two ago, has, for
the most part, disappeared. Bankers and
business men have for a good while been urging
caution. The present trend of, business is
more along the lines which these men have advocated and which tends to more permanent
prosperity. Apart from munition and allied
trades, general business is apparently receiving
fewer foreign orders and domestic demands are
more in evidence.
The money market continues firm, although
rates are not up to the high level reached in the
early part of the month, and the tendency, owing to the increasing ease in the New York market following the influx of gold, is downward.
The surplus reserves of the Boston banks during the last month have reached a lower point
than at any time since the inauguration of the
Federal Reserve system. Call money, 3 to 3J
per cent; commercial paper, 4 to 4|- per cent for
six months; year money, 4 to 4J per cent;
town notes, fall maturities, 3-| per cent upward; 90-day bankers' acceptances, 2§ per cent
upward.
Loans and discounts of the Boston Clearing
House banks on July 15 show an increase of
$4,194,000 over the preceding month, and demand deposits have decreased $10,610,000 in
the same time. The amount due to banks on
July 15 was $129,105,000 as compared with
$135,521,000 on June 17. The excess reserve




53038—16

5

of the Boston banks decreased from $33,769,000
on June 17 to $16,680,000 on July 15.
Exchanges of the Boston Clearing House for
the week ending July 15 were $233,064,423 as
compared with $171,806,604 for the corresponding week last year, and $180,740,253 for
the week ending June 17, 1916.
Building and engineering operations in New
England continue to show a considerable increase over the corresponding period last year.
From January 1, 1916, to July 19, 1916; these
contracts amounted to $114,890,000, or about
$18,500,000 more than for the same period a
year ago.
Exports for the port of Boston for June, 1916,
amounted to $13,315,376, as compared with
$11,255,012 for May, 1916, and $9,848,865 for
June, 1915. Imports for June, 1916, amounted
to $16,063,583, a decrease of $3,491,566 from
May, 1916, and an increase of $2,147,830 over
June, 1915.
Receipts of the Boston post office for June,
1916, show an increase of $85,531.37, or about
12\ per cent over June, 1915, and receipts for
the first 15 days of July were $34,250.18, or
Si per cent, over the same period last year.
Boston & Maine Railroad reports net operating income after taxes for May, 1916, as
$1,488,873, as compared with $754,968 the corresponding month last year. New York, New
Haven & Hartford Railroad reports net operating income after taxes for May, 1916, as
$2,200,583, as compared with $1,738,273 for
May, 1915.
Crop conditions continue favorable, but the
prospect for hay, which was very promising,
is not so bright, due to the wet weather, which
has made harvesting difficult and caused
much damage to this crop. The potato crop
is somewhat late, but all indications tend toward a good yield. The apple crop promises
to be abundant.
Business in the boot and shoe industry is less
active. Retailers purchased heavily earlier in

400

FEDERAL RESERVE BULLETIN".

the year and, therefore, are not disposed to add
to their stock at the present level of prices.
Leather is very high and this has necessitated
advances in the price of shoes. It is still a
little early for the new season's orders to begin
to come in heavily.
The wool business in general is not as good
as it was a month or two ago, due to a large extent to the fact that mills bought wool to cover
many of their orders at the time of making contracts and still have quite a supply on hand.
Taking over all of the wool in England by the
British Government and placing an embargo on
wool coming from New Zealand and Australia
has very materially increased the demand for
American wool, and this wool is now selling at
a higher price than at any time for over 30
years.
Reports from the cotton-mill centers indicate
that with the beginning of another season there
has been some revival of buying and the impression given is that buyers are more willing
to enter into contracts now than they have been
for some time.
DISTRICT NO. 2—NEW

YORK.

The outstanding feature during the last
month was the sharp advance in money rates.
Commercial paper sold on June 1 at 3 to 3J
per cent, but is now 4 to 4J per cent. Call
loans were made on July 10 at 6 per cent, the
highest rate at this time of year since 1907.
Lai\?e shrinkages occurred in prices of certain
speculative shares, and stock exchange securities are generally lower. The firm outlook in
the commercial paper market caused some
borrowers to provide earlier than usual for
fall requirements. Higher money here was
followed by an advance to 6 per cent in the
Bank of England rate, which had remained at
5 per cent since August 8, 1914.
In the last six months of 1915 the New York
Clearing House members increased deposits
about 800 millions and loans about 700 millions, but between December 31, 1915, and
July 16, 1916, these deposits decreased about
160 millions and loans have been reduced




AUGUST 1,1916.

about 70 millions. The actual figures on July
16 were:-Loans, etc., $3,188,833,000; deposits,
$3,307,037,000; and excess reserves, $95,109,470.
The industrial situation shows little or no
change. Some slackening in the domestic
demand for steel products, and the seasonal
quietness in leather manufacturing is partly
offset by increased orders in both lines for
export. It is reported that exports of unfinished steel to Europe are nearly double the
quantity sent last year. Mills and factories
are busy. Labor is still scarce. A banker
from outside New York City reports that in
his section wages have been advanced as much
as the industries can stand, yet there are but
few signs of saving and thrift and many evidences of increased expenditure for luxuries.
There is less than usual mid-year dullness in
wholesale and retail trade. The hot weather
in July stimulated the distribution of summer
goods, which had accumulated on account of
the inclement weather which prevailed in the
spring and early summer.
Farmers in northern New Jersey are well
satisfied with the condition of the crops in
that Section and are harvesting more hay than
they have had for years. In New York State,
however, the agricultural outlook is not encouraging. Aside from hay it seems probable
that all crops will be under the average. Pastures are in good condition, and the dairying
industry is prospering.
Statistics of the present compared with those
compiled a year ago show large increases in
exports, imports, and bank clearings, higher
railroad earnings, and postal receipts, more
new incorporations, greater activity in building,
and fewer failures.
The United States Steel Corporation at the
first of July reported unfilled orders decreased
300,000 tons, after showing continuous increases for many months.
Bradstreets's index number shows the third
successive decline in commodity prices since
April 1, 1916,

AUGUST 1,

1916.

FEDERAL RESERVE BULLETIN".

Great activity continues in the shipyards.
The number of vessels built in the United
States for the fiscal year 1915-16 was 1,030 of
347,847 tons, against 1,266 of 215,711 tons in
1914-15.
DISTRICT NO. 3—PHILADELPHIA.
Business continues very good, and the general outlook is encouraging. A conservative
tone prevails, and retail business is being sustained by the country's remarkable buying
power. This is to-day probably greater than
ever before.
Practically all the principal departments of
trade and industry continue to report the prevalence of very satisfactory conditions. In
some lines there is the usual quieting down customary at this period, but in almost every instance it is not nearly so pronounced as in
former years, and its duration is expected to be
considerably less.
Many reports refer to scarce and expensive
labor, which, together with the high prices of
raw materials, have had a tendency to restrict
production.
Chemicals and dyestuffs are a trifle quiet,
with prices unsettled because of reported imports. Paints are in fair demand; spring trade
was good and the outlook is bright. Seashore
trade in drugs and sundries is active.
Anthracite coal is quiet and unchanged in
price, but the demand for bituminous is greater
than the supply, and spot sales are being made
at steadily advancing quotations. Petty strikes
continue in both the hard and soft coal regions,
and some collieries are 30 per cent short of men.
Cotton yarns hold firm, with spinners in a
strong position. Prices are still extremely
high, as spinners seem to be able to maintain
their firm position by reason of apparent scarcity of yarns for early delivery and orders on
their books for some time ahead. This high
level has no doubt acted as a check to any developments of extreme activity. Tape mills
are well sold up, and recent bids requested by
the Army for these goods found deliveries
offered which were entirely too late for present
needs.




401

The present favorable weather conditions
will materially help all crops, which are reported to be in normal condition, with the exception of corn. Hay and rye are reported to
be especially good. Fruit of all kinds is plentiful. The continued satisfactory growing
weather is pushing along the new tobacco crop.
The shortage of old tobacco is creating a serious
condition in the Lancaster district, as dealers
have very little old goods on hand.
Wholesale distribution of dry goods, woolens, hosiery, underwear, notions, millinery,
etc., is in well maintained volume, and reports
from the wearing-apparel trades are exceptionally encouraging, liberal orders having been
received for fall and winter requirements.
Numerous inquiries indicate that more interest
is being taken by retailers than is usually
shown at this time.
Bradstreet's report shows 50 failures in the
district during the month of June, compared
with 48 in May, 67 in April, 101 in March, 103
in February, and 96 in January.
Grocers report trade active and collections
improved. Sugar has slightly advanced, but
the demand is small. Provisions are firm and
in fair demand.
The demand for hardware shows no evidence
of lessening and it continues to sell with considerable freedom. The demand for electrical
supplies, especially in connection with building
operations, is very good.
The iron and steel trade is still very active,
with an immense foreign business on hand and
in sight. The railroads have not been large
buyers of late, owing to the high prices now prevailing for various materials. From various
sources it is learned that many concerns
throughout the district have plans for large
amounts of construction work, to be undertaken as soon as the high prices recede. This,
taken with the flourishing condition of the
shipyards, makes it appear that the iron and
steel industry has an exceptionally long and
bright future before it. The foreign business is
also expected to continue on a large scale, regardless of whether the war ends or not.

402

FEDERAL RESERVE BULLETIN.

Sales of leather are not, on the whole, either
large or numerous, but there is no accumulation, and the situation is very strong. The
market is alive with inquiries from abroad.
White and fancy goat leathers are in inadequate
supply. Shoe factories are quite busy, with an
abundant demand for labor.
There has been no particular change in lumber, business being rather quiet and the tendency of most grades easy. Building operations
are on a satisfactory scale. The following table
shows building operations for the months of
March, April, May, and June, 1915 and 1916.
Number of permits.
1915
Philadelphia
Allentowri
Trenton

3,724
193
192
386

1916

Estimated cost.
1915

3,366 $15,581,215
163
796,100
212
615,455
373
1,129,479

1916
$20,756,880
801,263
1,089,420
1,091,397

There has been a strengthened demand for
money for commercial use, which, coupled with
falling bank reserves, has forced up money
rates slightly. The amount of excess reserves
of the members of the Philadelphia Clearing
House have been reported as follows:
Percent
Amount. above legal
requirement.
July 15,1916.
Jan. 15,1916July 17,1915.
Jan. 16,1915.

$22,538,000
49,377,000
48,885,000
24,219,000

4.4
10.0
11.2
6.5

AUGUST 1, 1916.

moved 312,264 loaded cars, compared with
283,686 in June, 1915, and no idle cars were
reported.
Shipbuilders have all the work that they can
do, and business is unusually favorable. The
construction of steel merchant ships has shown
exceptionally heavy growth in the last 12
months. The Delaware River yards have
orders for and are building 79 ships of 330,963
tons. With the yards running at capacity,
and many orders on hand, and considering the
length of time necessary to complete a vessel,
shipbuilding plants will be busy for a long
time to come.
The silk situation is very favorable, plants
running to the fullest capacity. There is a
better demand in broad silks, and the raw-silk
market is decidedly firm.
Manufacturers of textiles are reported as
being especially busy, and there is every indication that fall and winter business will be
extremely active. Some mills have received
substantial orders from the United States
Army for outing shirts, hosiery, and underwear; The general tendency continues in favor
of higher prices.
While many commodities have been subject
to fluctuations or have reached the crest of the
wave and declined again, wool has not only
maintained a very high level of values; but
has even made a further advance during the
past month. Trading has not been especially
active, as many mills have stocks on hand to
last for some time. Further advances in
prices are even predicted, because of the belief
that the strict embargo on all wools from
Australia, New Zealand, and the British Isles
will materially curtail this country's supplies
during the coming season. Carpet wools are
going along very quietly with little or no demand. Mills seem to be well employed, but
they buy wools only when they need them.

Eastbound and westbound freight traffic
over the Pennsylvania Railroad at Lewiston
Junction for the first two weeks in July increased 8 per cent over the same period of last
year. There was a decrease of 14.3 per cent
in eastbound empty cars, and an increase of
9 per cent in westbound empty cars. The
movement of coke, eastbound, increased 73.4
per cent, and moving west, miscellaneous ton- DISTRICT NO. 4—CLEVELAND.
nage increased 12.5 per cent. Miscellaneous
Business in district No. 4 is steady, with
eastbound tonnage increased 5 per cent. In conditions practically unchanged from 30 days
June of this year the Lehigh Valley Railroad
A conservative tendency noted in sev-




AUGUST 1, 1916.

FEDERAL BESERVE BULLETIN.

403

eral lines has strengthened the situation, with year. Below is a comparison of the clearing
no appreciable decrease in volume. Money figures for the first 15 days in July, 1916, and
rates have stiffened one-half per cent over last for the same period last year.
month and range from 1 per cent to 1J per
cent
cent higher than those quoted at the end of
July 1-15, r July 1-15, Increase. Per inof
1916.
1915.
crease.
this first quarter of the year. This reflects
the general firming of money rates and indiCleveland...
$95,475,536 $62,742,680 $32,732,856
52.17
cates a better demand for funds which has Cincinnati...
76,881,000 61,348,350 15,532,650
25.31
Columbus...
26,527,300 15,224,800 11,302,500
74.23
arisen since the published reports to the Comp- Pittsburgh..
144,260,319 109,819,039 34,441,280
31.36
Toledo
21,651,889 15,016,752 6,635,137
44.18
troller on June 30.
Youngstown
7,257,893 4,200,398 3,057,495
72.79
A comparison of deposits and loans of the
Total..
372,053,937 268,352,019 103,701,918
38.64
member banks in the six large cities of the
pistrict is given below:
Pay-roll requirements are at maximum, and
there is a scarcity of $20 bills.
Deposits.
The situation in the steel business is regarded
June 30,1916. May 1,1916. June 23,1915. as firm. The export demand is such as to suggest maintenance of present high prices for
Cleveland
$120.192,584 $114,063,431
$91,865,189
86,161,980
Cincinnati
89,798,051
70,701,693 sometime to come. Protection of business
30,507,380
26,725,910
35,477,510
Columbus
194,655,842 already on the books is an additional reason
Pittsburgh..
282,652,569 269,446,777
528,120,714 500,179,568
383,948,634 why no one asks or expects a reduction of rates
Total reserve cities
36,898,119
Toledo
25,794,839
35,598,953
16,405,857
16,380,410
Youngstown
11,304,863 at this time.
Iron-ore shipments are going forward so rapTotal
581,424,690 552,158,931
421,048,336
idly that some leading vessel men are predictLoans, discounts, and unpledged
ing a movement of 60,000,000 tons.
investments.
Pig iron is dull, and there is some slowing up
June 30,1916. May 1,1916. June 23,1915. in demand, but no signs of weakness.
The sheet and tinplate market is irregular.
Cleveland
$92,313,981 $90,171,556
$70,459,572
Workers get an advance of 4 to 5 per cent comCincinnati.
75,815,948
73,722,686
63,201,989
24,326,195
23,558,865
21,473,920
Columbus
211,788,880 205,912,884
169,704,192 mencing July 1.
Pittsburgh
Shipments of electrical goods keep up won404,245,004 393,365,991
Total reserve cities
324,839,673
32,608,810
30,974,873
Toledo
23,691,355
derfully with some delay on account of inability
13,804,871
Youngstown
15,182,791*
11,888,218
This disTotal
452,036,605 438,145,735
360,419,246 to obtain raw materials promptly.
trict is receiving its share of the volume in this
Increase, June 30,1916, Increase, June 30,1916, industry.
over June 23,1915.
over May 1,1916.
Manufacturers of automobiles report a record
InvestInvesttrade in farming districts.
Deposits.
Deposits.
ments.
ments.
Demand for bituminous coal continues beyond ability to produce, the only difficulty beCleveland
$6,129,153 $2,142,425 $28,327,395 $21,854,409
Cincinnati
3,636,071 2,093,262 19,096,358 12,613,959
767,330 8,751,600
4,970,130
2,852,275 ing scarcity of labor available for mine work
Columbus
13,205,792 5,875,996 87,996,727 42,084,688
Pittsburgh
and a shortage of cars in some quarters.
Total reserve
Prices are good and coal is moving forward
27,941,146 10,879,013 144,172,080 79,405,331
cities....
1,299,166 1,633,937 11,103,280
8,917,455
Toledo.
By a rather close vote
1,377,920 5,100,994
25,447
3,294,573 freely on the lakes.
Youngstown........
bituminous miners in district No. 5, which inTotal
29,265,759 13,890,870 160,376,354
91,617,359
cludes most of western Pennsylvania, decided
The clearings of these same cities for the to accept agreement negotiated last April
first 15 days in July show an increase of about which runs for two years. Coke market is
4 per cent over the same period in June of this active at slight recession in prices.




404

FEDEBAL RESERVE BULLETIN.

AUGUST 1,1916.

Traction travel in metropolitan districts of
Per cent
June, 1915. June, 1916.
Increase.
of inthe large cities is equaling and making slight
crease.
gains over high records of 1913. Railroads report loads billed in this district as 34 per cent Cleveland
$330,444.32 $43,823.42
$286,620.90
15.28
233,221.59
244,871.61
11,650.02
4.99
over July of 1915 and 3.3 per cent over May of Cincinnati
88,004.25
12,500.84
100,505.09
14.20
Columbus
Pittsburgh
287,010.59
73,154.44
360,165.03
25.48
this year.
Toledo
84,340.30
91,448.02
7,107.72
8.42
22,659.23
25,379.89
2,720.66
12.00
The glass trade is probably in better shape Youngstown
Total
1,001,856.86 1,152,813.96 150,957.10
15.06
for operation when cool weather starts than it
has been in years. Shoe manufacturers report
Midsummer business in mercantile lines is
demand for fall goods very strong.
Garment manufacturers state that orders for normally quiet, but based on averages a new
fall trade are very satisfactory, large gains over record in volume of business has been made
1914 and 1915 and slightly better than 1913 for the first six months of the current year.
The warm weather has materially improved
being shown. General demand in the lumber
trade has settled down materially in the last the crop situation. The country looks well.
30 days, but this has not affected the activity Corn and sugar beets have grown wonderfully
in the last three weeks. The hay crop will be
in the timber business.
The tendency in collections is toward a a record one in this district. Reports on
healthier condition, since concerns appear to be wheat are far from satisfactory, and in some
using up reserve stocks of materials which will parts of the district only half a crop is reported.
result in liquidation of amounts tied up in in- The growing crop of tobacco is of average
acreage, but the number of plants standing
ventories.
per acre is well above the average. It is estiLabor difficulties not so noticeable this
mated the crop will be 10 per cent above normonth, but scarcity still continues.
mal and of good quality. Live stock and
There is reported activity in building, and
real estate transactions all over the district, dairy interests are prosperous.
although it is not reflected in the June record DISTRICT NO. 5—RICHMOND.
of building permits given below:
A heavy loss resulted from the storm which
passed over much of this district on July 15.
Number of perValuation.
mits.
Damage was particularly heavy in the PiedIncrease Per
or decrease. cent. mont section of Virginia and in North and
June, June, June, 1915. June, 1916.
1916.
1915.
South Carolina. Not only were some seventy
lives lost but property damage reached millions
Cleveland...... 1,431
1,296 $2,378,510 $2,742,570 $364,060 15.30
940,635 1,082,580 141,945 15.09 of dollars.
Cincinnati
1,560
1,479
Fifteen millions in property loss
557,370 147,000• 35.82
410,370
Columbus
289
285
940,762 1271,710 i 22.36 has been given as an estimate, but this is rePittsburgh
.
368 1,212,472
377
595,104 1167,741 i 21.98
762,845
Toledo
380
273
279,025 1154,055 135.57 garded as too high.
433,080
Youngstown...
139
115
Some small towns were
.96 practically swept away and larger ones seriously
Total
3,960
4,032 6,137,912 6,197,411 59,499
damaged. Dams, mills, warehouses, dwellings
i Decrease.
and crops suffered in many cases severely.
Purchase of the Nickel Plate Railroad by The main line of the Seaboard Air Line and
Cleveland interests is expected to result in a Southern Railways lost bridges and suffered
damage, while all of the western lines had serilarge amount of new construction.
There has been practically no change in post- ous difficulties. The western lines of the Noroffice receipts from figures of last month. Fol- folk & Western and of the Atlantic Coast Line
lowing are comparative figures of the six large also suffered considerable damage. Irregular
mail service has resulted and demoralization
cities in the district:




AUGUST 1,

1916.

FEDERAL RESERVE BULLETIN.

which makes the preparation of a correct report of trade, agricultural and other conditions
for this district difficult.
Summer dullness has taken the edge off of
business. This is particularly apparent in new
business. The volume of manufacturing and
merchandise shows but little diminution. Reports generally are favorable and railroads are
busy, earnings in this district indicating a net
increase of 15 per cent or more. Earnings for
July, however ,will probably be seriously affected
by the storm damage. Clearings show an increase of about 60 per cent over last year and
collections are better than usual at this time of
the year.
Excessive rainfall has created spotted and
uncertain crop conditions. Unless weather
conditions improve, considerable deterioration
is anticipated. Kesults from fertilizers are considered uncertain owing to lack of usual proportion of potash. Crops have been better cultivated than usual and early plantings are standing
better than later ones. The returns in trucking
sections along the coast for beans, melons, potatoes, etc., have been unusually good and farmers in this territory are more prosperous than
for several years. One small community reports that the net return from its shipments of
garden truck will probably aggregate $500,000.
Canned-goods business is reported healthy and
the outlook exceptionally good. One correspondent calls attention to the fact that he has
raised four crops on the same land. First,
Irish potatoes with corn planted between the
rows; after potatoes have been dug, a second
planting of corn has been put in, and after the
first corn planting has been gathered, this was
replaced by sweet potatoes.
Richmond reports a 20 per cent increase in
building and there is some activity reported
from North Carolina. General reports indicate
that building is being retarded by the high price
of materials.
The bituminous coal movement continues
heavy and 50 per cent in excess of this period
for last year. Some decrease is anticipated.
While freight rates have a tendency to soften




405

which will stimulate demand, the shortage of
labor is more acute, making it difficult if not
impossible to keep shipments up to the present
volume. This is calculated to stiffen prices
and to create a rather trying and difficult situation. Coastwise shipments are normal -and
generally on contract. Foreign shipments are
largely to Italy and South America.
Corn acreage is large and crop in fair condition
but has suffered on low grounds from too much
moisture.
The Government reports indicate a 12 per
cent increase in the entire cotton belt, North
Carolina and South Carolina both being above
this average. Crops on high ground are probably at about the average, but there is too
much moisture generally and many sections
report the crop backward and in bad condition.
It is difficult to estimate these conditions, but
unless dry weather prevails considerable deterioration may be expected.
Cotton mills continue to report prosperous
conditions. Several mills were damaged by the
storm and a number forced to shut down,
temporarily, by interruption of power.
Furniture plants are working full time.
Sales are chiefly in the East, North, and Northwest. Collections are good, but prices for raw
material high and manufacturers are disposed
to be conservative about following the high
prices too far.
Every concern in the iron and steel business
reports prosperous conditions. Bookings for
future delivery insure activity for several
months ahead. Baltimore is anticipating exceptional advantages from large expenditures
running in the millions by the Bethlehem Steel
Co. in the development of the plant of the
Maryland Steel Co., which it controls.
Labor is well employed. Farm labor is
scarce and high.
There is a marked interest in stock raising
and good forage crops are reported. One correspondent reports the establishment of a hog
packing plant, the purchases of which have supplied enough money to the neighborhood to pay
farmers7 labor bills for chopping out cotton.

406

FEDERAL RESERVE BULLETIN.

The lumber trade is still complaining of light
demand and demoralized prices. Mills report
that the good prices lasted only for about 60
days in the spring. Present prices hardly
cover prices of production, and some mills have
shut- down.
Deposits are the highest at this season of the
year for several years past. Kates are firmer,
but many banks have not been borrowing this
year and have abundant funds for the use of
their respective communities.
There is a full acreage of tobacco. The crop
looks pretty well, but there is complaint of too
much rain.
Manufacturing is active and jobbing in good
volume, although somewhat quieter than the
recent past. Prices are high and profits better
than usual owing to the advance in price of
goods previously purchased.
Trade good in shoes, leather, and trunks,
and results satisfactory. Prices of raw ma' terials are dangerously high and manufacturers disposed to go slow in making purchases.
DISTRICT NO. 6—ATLANTA.

The farming element in the Sixth District
is depressed over the conditions following the
storms and continuous rains for the past few
weeks. Business conditions in general have
been considerably disturbed. Most of the
damage done has been in the States of Alabama
and Georgia, with Alabama probably the
greater sufferer. The flood damage throughout the section was confined to the crops and
physical properties, with very little loss of life.
The cotton crop has been materially damaged by the excessive rains, giving grass and
the boll weevil the advantage at a critical
period of the growing season. Rains loosened
the ground around the roots, and high winds
easily uprooted many thousands of plants.
Cotton left standing has big stalk and sappy
plant, with little fruit. Practically nothing
can be done to offset the injury until the land
drys sufficient for cultivation. Alabama estimates are of 20 per cent damage, Georgia 10




AUGUST 1,

1916.

per cent. Cotton in Mississippi and parts of
Tennessee and Florida is reported in good
condition. Conservative estimates agree that
the crop has been damaged at least 10 per cent
throughout the district.
Thirty days ago indications pointed to the
largest and best corn crop in many years, but
the damage sustained by the recent storms
and overflows has greatly reduced the prospect.
Much corn was blown down, and the rivers and
creeks damaged all crops in the lowlands.
Alabama alone claims to have sustained a loss
of $6,000,000 on its corn crop. Corn in the
uplands may somewhat benefit from the rains
and offset the loss in the lowlands. Reports
from throughout the district generally indicate
at least a 10 per cent damage.
Grain reports show little improvement over
last month's reports, and indications are that
the yield will be considerably decreased. In
the Tennessee wheat fields rains have continued to interfere with the thrashing of wheat
and caused damage to wheat not thrashed.
The damage from rust is serious.
Recent reports on the citrus fruits are more
favorable for next season's crop. Considerable damage was done to the peach crop by
rains, with curtailment of the melon crop.
A total of 40,608 carloads of fruit and vegetables were shipped out of Florida during the
season, with good prices.
Tobacco is in strong demand, the only restriction being lack of shipping facilities for
export. There is but a small amount of tobacco being held by the farmers, and the sale
season in the loose-floor houses is practically
closed. The rehandling houses have closed
for the season. Growing crops in the sections
that have had too much rain are not looking
well. Good weather conditions will, however,
make a good crop possible.
New Orleans reports some increase in the.
amount of sugar received. This is perhaps due
to the fact that planters are clearing out their
sugar houses and making ready for the new
crop.

AUGUST 1,

1916.

FEDERAL RESERVE BULLETIN.

Tho rice market continues strong with very
little rice available. Little change is noted in
the coffee market.
Due to bad weather the lumber industry has
been largely curtailed in output. The demand
is strong with good prices prevailing.
The naval stores business has increased somewhat. While this industry can not be said to
be over active there are signs of improvement.
Operators and jobbers are more optimistic.
While there is no great demand for coal there
has been no material decrease in output up to
the past two weeks. Some of the mines were
closed down by the recent storms. Coke, production and demand continues very active and
the supply is far from being as large as could be
handled. In east Tennessee zinc mining is
very active. Operators are spending a great
deal of money in development work and operations. One company at present employing
2,0GG men will shortly erect another plant that
will employ 6,0(30 to 8,000 people. These companies are reported to be spending over
$25,000,000 in the construction of eight
dams.
The pig iron and steel market show very
little change. Prices are firm and manufacturers manifest no uneasiness. The blast
furnace of the Woodstock Operating Co., at
Anniston, Ala., will be ready for operation
about August 1. There is very little accumulation of iron in the yards and indications
point to an indefinite period of operations.
Bright prospects are reported for the placing
of additional steel industries near Bessemer,
Ala., by the United States Steel .Corporation.
Cast-iron pipe manufacturers are receiving
an increased volume of domestic business and
export orders are increasing.
There is improvement in live stock and
cattle. The Tennessee market is reported
active, with advance sales for October delivery
of cattle at 8 cents on the farm.
Very little building or construction work of
any magnitude is being done in the district.
Building operations are still slow, except in a
few localities. Building materials continue




407

high in price, with the possible exception of
building brick.
The jobbers and wholesalers are doing very
little "fill-in " business, and report light orders
from their salesmen on account of storms.
Collections are reported somewhat slow by
wholesalers and jobbers, which is not unusual
for this season of the year. Retailers, however,
say collections are about normal. Although
this is usually the dullest period of the year,
bank clearings continue to show increase.
In the Atlanta investment bond and securities market there has been less offering of
bonds during the past few months than for any
previous six months, due to scarcity of money
for investment purposes. In the New Orleans
district there appears to be an improvement in
funds available for investments.
The demand for money for strictly commercial purposes is increasing and rates stiffening.
Rates seem more likely to go higher than to
recede to previous low level.
Post office receipts and express receipts
continue to. show large increases throughout
Georgia and Alabama. The Atlanta post
office shows 17,148 postal orders issued in June
this year as compared with 9,175 the previous
year. Express receipts also show large increases in these and other States in the district.
DISTRICT NO. 7—CHICAGO.

Within the past month there has been a
noticeable stiffening of bank rates, ranging
from one-half of 1 per cent to 1 per cent, due
partly to the increased demand from industrial
concerns and the demand from country districts in connection with handling the crops.
A definitely optimistic tone is evident in the
letters received from bankers throughout this
district, who report a generally satisfactory
outlook in their respective territories, with a
better return on their loanable funds. In
most sections a successful season and prosperous fall are anticipated although a few communities will probably suffer from short crops.
Labor seems well employed, and it is understood that in Chicago the United Charities are
now supporting no families which include an

408

FEDERAL RESERVE BULLETIN.

able-bodied man, an unusual condition. The
question of obtaining help for haying and harvesting is coming to the fore and may prove a
serious problem as the season advances.
Bond houses report a decline in price in
invQstment securities and a heavy call upon
the surplus capital of investors from foreign
liquidation and new foreign government loans.
The July investment demand is said to have
been more or less of a disappointment, and
there is prospect of a rather dull market during
the summer months.
The crops in this district have benefited
materially through the hot weather of the past
few weeks, and corn is now reported as in normal condition by almost all correspondents.
The hay crop is of good quality and quantity
and favorable weather has aided the cutting
which is in progress. Illinois reports wheat
fair, oats good, and prospects for a normal
acreage of corn. Indiana seems to have a
considerably decreased acreage of both wheat
and oats, owing to heavy rains during the past
two months. Corn appears to be in fair supply,
and recent hot weather has been beneficial to
all crops. Peas have furnished one of the
smallest crops on record. Iowa authorities
report excellent conditions with favorable prospects. The corn crop promises a normal yield,
while oat acreage is reported increased. Whe^t
will probably be less than the average crop.
Potatoes and truck are good, but rains would
be welcome. Michigan, while still a little behind, has been gaining during the hot weather,
and a fair yield of oats, wheat, and corn is
anticipated after giving consideration to the
decreased acreage. Fruit is reported in good
condition. Wisconsin with favorable weather
conditions has been inproving; corn is better
but not up to normal. Pastures look good,
but the pea crop, it is said, will be short.
Agricultural implements.—The high price of
steel and steel products has brought about
some decrease in sales in this line, and it is
interesting to note that one manufacturer
reports a growing demand for repair parts and
extras to fit up old machines. Tractors are




AUGUST 1,

1916.

said to be in good demand and concerns making
steel wheels claim equal or greater sales than
during an ordinary year. A fair volume is
generally anticipated.
Automobiles.—Difficulty in securing deliveries of raw material is said to hamper this
industry, which still reports heavy demands
for cars. The prosperity of the manufacturers
seems continuing, and with money-producing
crops through the district business should remain good at least for the next few months.
Building operations are being somewhat curtailed, due to the high cost of material and
difficulty in securing labor. Brick is reported
in considerably better demand than last year,
with the June increase larger than the probable
showing for July. Cement shows only fairly
satisfactory results, the volume of sales has not
changed appreciably, and there is reported a
producing capacity for cement in the United
States of some 25 per cent in excess of the
largest demand the country has ever seen.
This condition should suggest caution in promoting new production. Present indications
are that totai consumption of cement this
calendar year will be slightly less than last
year.
Coal.—Current movement is comparatively
light, as the stocks in consumers7 hands are not
yet exhausted. Labor shortage at consuming
centers is also looked on as one of the contributing causes. The shippers' controversy
with the railroads is reported as adjusted on a
mutually satisfactory basis with the exception
of one carrier. The possibility of a car shortage in the fall is being watched by operators,
as during the early fall months an improved
demand for coal is anticipated. Collections
are reported fair; better in the country than in
the city.
Distilling and brewing.—The demand for
alcohol for munitions is said to be slackening
materially, bat there are rumors of more orders,
and the general whisky business is on the upgrade. The question of prohibition is still
causing uneasiness. Breweries are said to be
enjoying better business than last year, and

AUGUST 1,

1916.

FEDERAL RESERVE BULLETIN.

409

Leather.—Reports indicate a large volume,
some establishments are pushing the sale of
temperance beverages to which they can high prices, and a strong demand from shoe
adapt their machinery.
manufacturers, harness makers, etc. Hides,
Dry goods.—Sales are reported as generally tanning materials, and dyestuffs are at high
better than last year, but this is more or less values, with no immediate prospect of decline.
the quiet season and the crop situation is care- A large fall business is in prospect and colfully watched as a guide to the fall volume. lections are generally good. Leather belting
The high price of merchandise is causing some is meeting with a satisfactory demand, but
hesitation on the part of retailers who feel that buyers, on account of the high cost, are somea conservative purchasing policy at this time what inclined to investigate substitutes. Up
will pay. Most authorities are of the opinion to date this has had no marked effect, but
that the fall trade in this district will prove manufacturers are carefully watching the
substantial.
tendency.
Live stock.—High prices prevail for cattle,
Furniture.—Manufacturers are having trouble
securing certain commodities, and the higher hogs, and sheep compared to previous years
cost of raw material has brought about a higher with no material reduction in sight. The supselling price. Sales, while reported not up to ply of cattle is none too large, immature stock
the anticipated amount, are said to be satis- has come to market, and farm, activity is to
factory and there apparently is some tendency some degree holding back other shipments.
to care for future wants on a consumption Among by-products, tallow and grease show
"basis. Collections are good.
some recession, fertilizer furnished a good volGrain markets.—There has been an excellent ume during the spring season, as did glue.
export inquiry for wheat, corn, and oats during Wool and hides are reported in strong
the past month, and threatened damage to demand.
wheat in the Northwest has strengthened this
Lumber.—This is the slow season of the year
grain. Farmers are said to be marketing some with lumber companies and there is a tendency
of their grain holdings on the present strong among retailers to mark time and watch develmarket. Authorities look forward to a good opments. Such indications of strengthening
movement of new oats and new winter wheat. in this market as exist do not appear to be
The quality of the new wheat is reported ex- likely to affect matters much in the near future,
cellent, and there is a considerable demand for but there is hope that by fall some benefits may
it from milling establishments.
accrue to this industry.
Groceries.—Sales in this line have fallen off Mail order.—Increased volume in this disduring the past month, and buyers are holding trict is reported with a strong demand for house
T^ack on their sugar purchases owing to the furnishings of good quality.
high price of this commodity. In other grocerPianos.—Compared to last year an improveies the demand is satisfactory, and the pros- ment is noted and the manufacturers report an
perous outlook in farming sections leads increased demand for pianos, with collections
authorities to believe in good fall activity.
good. Haw materials are in some cases recedHardware.—The market is still strong with ing. The manufacture and sale of harps has
merchandise rising in price. This is generally greatly increased in this country owing to the
a slow period of the year, but compared with decreased supply from abroad.
the same time last year an improvement is reSteel.—Activity is continuing, the outlook is
ported. Some of the commodities are showing good, and the demand strong. Collections are
signs of easing off in price, and when the farm- reported satisfactory. Seasonal dullness in
ers come into the market in the next few agricultural communities is taken up in other
months a substantial demand is anticipated.
quarters, but there seems a slight tendency




410

FEDERAL RESERVE BULLETIN.

AUGUST 1,

1916.

toward softer prices and conservatism in pur- and June, 1916, compared to the average of the
chasing at the going rate is evident.
same three months of 1915, 1914, and 1913. In
Watches and jewelry.—A good quantity of almost every case an increase is noted in shipwatches is demanded by the trade and general ments, a corresponding increase in collections
jewelry is meeting with sales considerably in and a decrease in past due accounts. The
advance of a year ago. Manufacturers have amount of unfilled orders on hand June 30,
settled their labor troubles and gold and plati- 1916, seems to be unusually large and in sevnum workers are said to be engaged full time. eral instances merchants have reported a record
An active autumn trade is in store according to business. One wholesale dry goods house reauthorities in this line.
ports increases in shipments ranging from 115
Wool and woolens.—There is still a dull mar- to 144 per cent in the States wholly or in part
ket in wool, with prices held firm. Mills are within this district. Another house reports,
reported as running on supplies purchased the "We anticipate the biggest business we have
early part of the year, but a better market is ever had.' ; One of the largest shoe houses in
anticipated. D}^estuffs are somewhat easier. St. Louis reports shipments for April, May, and
Woolen clothing is in strong demand and distri- June this year as 72 per cent larger than the
bution is satisfactory. There are some indica- average for the same three months of 1913,
tions that local dealers who overbought to 1914, and 1915. A hardware company in Fort
cover their requirements are revising their Smith, Ark., reports an increase of 31 per cent
orders.
in their shipments and their comment on general
Clearings in Chicago for the first 21 days of business and agricultural conditions is "Fine,
July were $1,152,000,000,. being $249,000,000 much above 10-year average. ;; A report from
more than the corresponding 21 days of July, Memphis on general conditions reads: "Very
1915; and $1,000,000 more than in the first 21 favorable and improving. ;; Reports from jobdays of last month. Clearings reported by 22 bing interests in Louisville are practically the
cities in the district outside of Chicago amounted same.
to $229,000,000 for the first 15 days of July,
During the past month, the Government has
1916, as compared with $183,000,000 for the come into this market for Army supplies, and
first 15 days of July, 1915. Deposits in the this has been a somewhat noticeable factor in
eight Central Reserve City member banks in the activity noted. Contracts for this account
Chicago were $614,000,000 at the close of busi- include shoes, drawers, undershirts, ponchos,
ness July 20,1916, and loans were $428,000,000. soap, leggings, blankets, bed sacks, tents, mediDeposits show a decrease of approximately cines, hardware, and other articles.
$15,000,000 during the past month and loans
There has been more seasonable weather
a decrease of approximately $16,000,000.
since the latter part of June, and this has stimDISTRICT NO. 8—ST. LOUIS.
ulated retail trade. Reports from department
Business interests throughout this district stores indicate a satisfactory business and with
report an active trade equal to if not exceeding the increased buying power of the people, the
that of the past few months. With but few ex- outlook continues favorable.
The condition of the building trades does not
ceptions merchants and manufacturers report
increases in shipments, excellent collections, and seem to be as active as that of other lines.
heavy orders for future delivery. The outlook Many of the allied lines report increases in their
seems to be entirely favorable although there business, but the total building permits in
Louisville and St. Louis for June, 1916, shows a
is a noticeable undercurrent of conservatism.
Reports have been received from jobbing slight loss as compared to June, 1915.
Receipt of the St. Louis post office show a
interests in all of the larger cities of the district
giving figures on their business for April, May, slight gain forJJJune, 1916, as compared to June,




AUGUST 1, 1916.

FEDEKAL KSSEKVE BULLETIN.

411

The wheat crop has now been harvested in
1915. The gain was not as large as the increases noted for the earlier months of the year. all parts of this district, but the final figures
The gross earnings for June of some of the are, of course, not available. Reports from
railroads operating within this district are now private sources indicate that the quality of the
available and all of the five systems reporting crop is much superior to last year.
show substantial gains. Further indications
WHEAT.
of the general activity is found in the number of
000's omitted.
surplus cars on hand July 1 as compared to June
Change
1, which shows a decrease of about 3,000 cars.
Forecast,
Condition 10-year 1916, from Total
in.
July 1, average.
estimate, condition
There has been little or no change in the labor
July 1
1916.
1915. from June
condition.
1,1916.
conditions in this district, and the situation is
believed to be satisfactory.
Illinois....
16,539
53,200
+1
19,090
47,300
The total of commercial failures for the six Indiana
4-2
Kentucky.
9,498
9,900
IS, 935
months ending June 30, 1916, for the States Missouri...
34,108
0
Tennessee.
8,771
9,030
-5
located either in whole or in part within this
Total.
72,833
153,538
district show a decided reduction both in number of failures and in total of liabilities as comThe prospect for the oats crop continues
pared to the same period of 1915.
Receipts of cattle, hogs, and sheep at the favorable. The table below is taken from the
National Stock Yards, 111., for June show sub- Government report of condition as of July 1
stantial increases as compared to June, 1915, and indicates a yield somewhat smaller than
while there is a decrease in the receipts and 1915 but well above the 10-year average. Reshipments of horses and mules for the same ports from Illinois are especially favorable.
period. Reports indicate that the GovernOATS.
ment is in the market for 30,000 to 40,000 head
QOO's omitted.
of horses and mules suitable for Army use, and
Condition 10-year . Change in Forecast
Final
it seems probable that this may stimulate the
from
July 1, average. condition July 1 estimate,
from
1916.
market.
1915.
June 1. condition.
Climatic conditions from the latter part of
91
79
-1
172,993
195,435
June to the present writing were in the main Illinois
Indiana
86
78
—1
61,989
65,520
89
74
1
39,331
31,850
favorable for agricultural development. Prior Missouri
274,313
292,805
to that time cool, rainy weather had somewhat
hindered both the planting and cultivating of
the principal crops, and therefore the arrival of
We also give a report on the condition of
hot, seasonable weather was welcomed. Under corn as of July 1 taken from the Government
this stimulus crops have developed rapidly, al- report of that date for the States wholly or in
though at this writing a few complaints oi part within this district. The percentage of
drought are noted.
condition on July 1, 1916, in the principal corn
There are given below figures on the wheat, producing States in this district—that is, Illicrop taken from the Government report of con- nois, Indiana, and Missouri—is a trifle smaller
dition as of July 1, 1916. From these figures than the 10-year average, and the forecast for
it appears that there was a slight improvement the yield is also smaller than the final estimate
in condition on July 1 as compared to June 1, for 1915. This report, however, is of July 1,
but the forecast for the 1916 yield is only about and since that time it is believed that the crop
one-half of the final estimate for 1915.
has developed rapidly.




412

FEDERAL RESERVE BULLETIN.
CORN.
000's omitted.
Per
cent of Condi- 10-year Forecast
Final
tion
from
1916 July 1, averJ u l y l - estimate,
age. condition. 1915.
acreage 1916.
to 1915.

Arkansas
Illinois
Indiana
Kentucky
Mississippi
Missouri
Tennessee

93
80
80
89
87
81
88

83
85
85
86
84
82
86

61,520
358,109
186,046
107,717
68,591
203,298
87,226

62,100
376,164
190,950
114,000
69,350
209,450
94,500

1,072,507

98
102
104
98
96
101
96

1,116,514

Practially all reports from correspondents
have been favorable. The only adverse comment being a need of rain, which has been noted
the past few days. Reports indicate that the
crop has been well cultivated.
Figures for cotton taken from the Government report as of June 25, 1916, confirm previous estimates of an increase in acreage and
the percentage of condition is favorable in all
of the States, except Missouri, where it is 10
points below the 10-year average. A report
from a large cotton factor reads as follows:
"Conditions on the whole remain exceptionally good. The weather has been hot and
practically all our agents report that the crop is
looking fine. The plant appears to be unusually well fruited.77
COTTON.
Condition.

Per cent
of 1916
acreage
t o 1915.

Arkansas
Mississippi
Missouri
Tennessee

J u n e 25,
1916.

J u n e 25,
1915.

average.

115
116
130
115

89
85
74
84

85
84
86
87

81
79
84
82

10-year

Changes
in condition from
May 25.

+2
+2
-13
2

Reports from the rice-producing counties of
Arkansas indicate that the crop has advanced
in a satisfactory manner to date and an early
harvest is anticipated. Warm dry weather in
Tennessee and Kentucky has aided the development of tobacco, and indications are that
with favorable conditions the crop this year
will be exceptionally heavy.
In St. Louis truck-farm products, vegetables,
home-grown fruits, etc., have advanced in price




A U G U S T 1, 1916-

in the past 10 days. This advance is attributed to the extreme heat and insufficient rain
for truck farming. These conditions have also
contributed to the recent increases in price of
poultry and eggs.
There is a free movement in carload lots of
cantaloupes, watermelons, tomatoes, peaches,,
etc., from the more southern parts of the district, but prices are reported as somewhat
higher than the average. The potato crop is
coming into the market freely.
The harvest of hay, clover, and other fodder
crops has been abundant, the yield per acre
being exceptionally heavy.
From present indications surplus funds of
banks, especially in St. Louis, are not as large
as they were 30 days ago, and discount rates
have advanced from one-half to 1 per cent in
the principal cities of the district.
The commercial paper rates show a similar
increase, best names being quoted at 4 to 4£ per
cent and other names 4J to 5 per cent. Commercial paper brokers report an increased demand from country banks for paper at 4§ per
cent, but the market in the larger cities is dull
and inactive. The percentage of gain in clearings for the six months7 period January 1 to
June 30, 1916, compared to the same period
1915, for the principal cities in this district are
as follows:
St. Louis 22.8, Louisville 41, Memphis 12.2,
Little Rock 17.2, Evansville 46.2.
The percentage of gains in clearings for the
week ending July 8, 1916, compared to the
same week in 1915 for the same centers are as
follows:
St. Louis 34.6, Louisville 25.3, Memphis 45. 1,
Little Bock 14, Evansville 26.1.
In considering the figures for the week ending
July 8, it may be noted that they show gains in
St. Louis, Louisville, and Evansville, as compared to the same week of 1914 and 1915.
In June, 1916, this bank cleared 221,060
items for a total of $117,516,061.24. The number of items and total amount of clearings has
increased from month to month, and the June
clearings are a new high record.

AUGUST 1,

1916.

FEDEEAL RESERVE BULLETIN.

DISTRICT NO. 0—MINNEAPOLIS.

Very warm weather during the first part of
the month, with somewhat more moderate
temperatures and wind enough to keep the
grain stirring during the latter portion of the
month, have greatly advanced the crops in
this district. There is a notable improvement
in the prospects for a corn crop. Until the
latter part of June corn was very backward
and was making slow progress. Hot July
weather and warm nights have advanced it to
a point where the present condition is not far
behind that of an average year. Small grains
are in the finest possible condition and are
making rapid progress. The rye harvest has
begun, as has the cutting of barley.
Commercial conditions continue to be favorable, with the usual midsummer characteristics. In industrial lines a good volume of output is still maintained. The labor situation is
somewhat improved.
Weather conditions favorable to spread of
black rust, causing rapidly increasing damage
of wheat crop, especially in South Dakota
during last week of month, with probably an
equal amount of damage as the result of the
excessive heat. Black rust also made its
appearance in many localities in North Dakota,
where damage from this cause and heat will be
severe. The southern and northwestern sections of Minnesota also report damage from
rust and heat, a great deal of grain in the wheatgrowing territory that was planted on the
stubble is showing the effect of poor preparation of the ground. Most of the damage reports make comparisons with crop of last
year. Last year's crop was unusually heavy
and the present crop can suffer considerable
reduction in yield and still present a fair
average return for this district. Present
weather condition is regarded as critical and
much will depend on weather conditions during the first week of* August.
The flax crop is in a very favorable condition, and timely rains have improved the outlook in some sections where the fields have
suffered for lack of moisture. The grain ou-t
look as a whole is excellent. Wheat has en-




413

tered upon the critical stage, and the weather
for the next 10 or 15 days will largely determine the quality of the crop and the yield.
Except for hot dry winds or other damage
while the grain is in the milk, the prospects are
for large yields.
There has been some slight change in banking conditions, with an improvement in demand
and a mo derate hardening of rates. The reserves
at the larger centers are low and deposits have
been falling off somewhat, and will continue to
decrease until after the beginning of the crop
movement this fall. The outlook is for a further improvement in the demand and a further
stiffening of rates. It is believed, however,
that the improvement in rates will be very
gradual.
DISTRICT NO. 10—KANSAS CITY.

Weather conditions have been most ideal
for the harvest, and in distinct contrast to those
prevailing last year, when excessive rains resulted in a loss of a considerable part of the
crop, the portion saved being of inferior quality. The first of this year's crop, which has
come to market, is of fine grade and commanding considerable premium over the price of old
wheat.
Wheat and oats are generally harvested
throughout the district, and thrashing is progressing, with a yield at least up to expectations. There is considerable divergence in the
estimates on the Kansas wheat crop, but even
if the lowest estimate, 90,000,000 bushels, is
realized, it is a volume reached in only three
3^ears previous to 1914. Corn has grown fast
and is nearly up to normal, generally clean
and of excellent color, and, as a whole, the condition is somewhat better than last year. The
second and third excellent cuttings of alfalfa
are in progress.
Colorado claims a harvest promising to break
all records. The sugar-beet crop is reported in
. excellent condition, and there has been considerable development and additional capital employed in beet-sugar factories. Denver reports
the erection of two such factories at a cost of
$1,000,000 each. Buyers are offering an in-

414

FEDERAL RESERVE BULLETIN,

crease of 10 per cent a ton to producers. As
an indication of the growing importance of this
industry, it might be noted that in Colorado
alone, in 1915, the sugar-beet farmers of that
State received approximately $11,000,000 for
their product from which 482,500,000 pounds
of sugar were manufactured and that the factories employed 5,000 men.
The Oklahoma cotton yield forecast is nearly
double last year's, the estimate this season being 1,010,000 bales as against 639,626 last year.
Rainfall has been ample except for the upland
corn in Oklahoma, and the ranges in parts of Wyoming and Colorado, where considerable moisture is needed. Heat records for two years are
reported broken at various points. New
Mexico reports the dryest June since 1902.
Labor conditions have greatly improved in
the last month. Several strikes, which might
have resulted seriously, have been settled.
Local employment agencies report more applications for help than they can possibly fill,
with an unusual demand for common laborers.
The shortage of harvest hands, which was
prophesied to be serious, was handled better
than expected, and no more help is needed in
the harvest fields.
High prices generally have been the outstanding features of the markets in the district,
hogs selling early in July up to $10.10, 55 cents
higher than in any former July, while prime
native steers sold up to $11.25 in June, the highestpricein any former June being $9.50. Latest
prices obtainable, compared with last year, show
hogs at about $2 per hundredweight higher
and good fat cattle at about the same price,
with grass, medium, and commoner fat cattle
some lower. Stockers and feeders are about
the same as last year, with sheep from $1.50
to $2.50 higher.
The half-year receipts of live stock at the
markets in this district saw a substantial gain
over last year, as did the feeder cattle and sheep
movement, indicating an interesting growth in
the industry as shown by the following statements.
The receipts of cattle and hogs at the markets
named during first six months of 1915 and 1916
were:




AUGUST 1, 1916.

Hogs.

Cattle.

1916

1915

Increase

692,887
507; 511
197,621
155,572

793,011
595,503
200,456
263,073

1,392,126
1,633,919
878,375
182,942

1,549,843
1,846,211
1,104,264
276,242

1,553,591

Kansas Gity
Omaha
St. Joseph
Denver

1916

1,852,043
298,452

4,087,362

4,776,560
689,198

1915

The increases in the feeder cattle and sheep
movement from these markets for the first six
months of 1916 over same period of 1915 were:
Cattle.
Kansas CityOmaha
St.- Joseph..
Denver

28,408
38,048
3,831
86,704

Sheep.
62,166
16,098
9,210
18,255

i Decrease.

June brought the drilling of more than 1,500
wells in the Mid-Continent oil field, with an
average daily production of about 70 barrels,
forming an aggregate new production of more
than 105,000 barrels a day. It is the prevailing
opinion, however, that the maximum drilling
energy has been reached, and that the June
record will not be exceeded in the months to
follow. The situation in the oil business is
affected by the unsettled condition in Mexico,
where the normal production was 22,000,000
barrels a year.
The production of oil in the Mid-Continent
field has reached 400,000 barrels daily. The
increase in the oil production of this field is also
shown by the fact that while the market price
has not changed materially, the premium over
the basic price, which was as high as 80 cents a
barrel, is now down to 20 cents, the lowest it
has been for some months. The premium in
other fields has been off for some time.
The outstanding feature of the petroleum
industry during the half year just closed was
the high level reached in the prices of crude oil
in March, and maintained firmly to the end of
the period, involving prices ranging from 90 to
350 per cent higher than those of a year ago for
high grades.
According to the report of condition of 826
State banks in Nebraska, there are 70,000 more

AUGUST l,

1916.

FEDERAL KESERVE BULLETIN.

415

depositors than at this time last year, and the very active advance business in fall lines, probdeposits have increased $38,000,000 during the ably the largest in many years, reflecting the
year, while the increase in deposits since the strong position of the retail merchants throughFebruary report is $10,700,000.
out the district. Collections have been much
Reports on metal tell of record productions of improved over the first six months of last year.
both the base and precious metals, of smelters DISTRICT NO. 11—DALLAS.
working under stress, of mines idle for many
An extensive canvass of conditions, reachyears being reopened and successfully operated^
ing every county in the State and practically
of the installation of millions of dollars' worth
of new mining equipment, with immense sums every county in the district has brought somepaid for the metal output of the various States what conflicting but very interesting reports.
The grain crop has been practically all
in this district. The only untoward incident
saved without damage. It is larger than estiis the announcement from Webb City, Mo.,
that operators upon low-grade properties will mated a month ago. The oat crop, while not
close their mines because of the low price of large, is not greatly below a fair average for
zinc ore and the high price of production the State. Since the July report heavy and
through increased cost of labor and material. adequate rains have fallen all over southwest
This district holds large stocks of unsold ore. Texas. Their effect will be to enable the
Advices regarding general trade conditions stockmen of that section to raise some feed
are reassuring, indicating that the volume of crops, and the general rains will undoubtedly
business continues in large proportions and the help range conditions.
The last 30 days have been trying on the
outlook bright. All the leading cities continue
corn crop, and the yield will not be as heavy
to report noteworthy gains in postal receipts
and building permits issued. Bank clearings as was promised earlier in the season. The
continue to show gratifying improvement, the early corn is fairly good, but a considerable
total in the Western States for June amounting part of the later planting is very poor, and
to $859,146,734, an increase of 38.7 per cent some of it a complete failure.
From inquiry, more exhaustive than any
over 1914 and 20.5 per cent over 1915. Naheretofore made, it is believed that the increase
tional-bank deposits in important centers show
a decrease in totals on June 30, as compared of acreage of cotton will not be above that
with the last preceding statement of May 1. stated in the July report and that an increase
This is not abnormal at this time of the year on of from 10 to 12 per cent in this district is a
account of harvest demands and remittances liberal estimate. Boll weevils have appeared
of interest and other payments to the East, but over practically the entire district, but, as a
rule, have not so far done any considerable
has resulted in a hardening of interest rates.
All important railway lines in the district damage except in a very few sections. There
show an improvement in earnings. Jobbers has never been a year when cotton fields have
and wholesalers express themselves as well been better cultivated, and, while the crop is
satisfied with business during the first six late, the outlook continues good for a fair and
months of the year. In dry goods there has | possibly a heavy yield. The campaign for
been a marked increase in sales in lines used by warehousing and gradual marketing .of cotton
the laboring man, indicating that he has been continues, with satisfactory results.
The condition of the rice crop shows no
well employed, and a corresponding increase in
the better dress fabrics, which is further evi- change of any consequence, and the outlook
dence of increased purchasing power. It is not for satisfactory results for this product is still
believed that merchandise has been bought in encouraging. Heavy crops of feed, hay, sorexcess of consumption, but that rather the re- ghum, cane, Kafir corn, Milo maize, and Sudan
tailer has been conservative and has confined grass have been grown, and the production will
his buying to requirements. There has been a be heavy pretty well throughout the district.




416

FEDERAL RESERVE BULLETIN.

The crop of fruits and vegetables in the eastern and southeastern parts of the State has
been fairly heavy and prices better than usual.
It is gathered from many sources that trade
is feeling the usual summer depression. The
demands on the Dallas bank, considering
everything, have been lighter than might reasonably have been anticipated, and discounts
are more than $600,000 below a corresponding
date last year.
The cattle and sheep industries of the western part of the district have been quite active,
though there is some complaint that the ranges
in the extreme west are getting short. There
is some danger that the situation may become
serious. Steers have not moved as freely as
usual, and there has been a wide difference as
to prices between the buyer and seller of this
grade of cattle. Sales of sheep in New Mexico
continue at good prices. The wool clip will be
up to the average, though prices are not as
high as were expected.
Post-office receipts in the nine largest cities
of the district show an increase of 15 per cent
over the same month of last year. Records
of clearings for the same cities show an increase
of 7 per cent.
Building permits in the principal cities of the
district show an average increase of 23 per
cent, operations in some of the cities being on a
very large scale.
Failures over the district for the period from
June 15, 1916, to July 15, 1916, as against the
same period of last year, are as follows: 1915,
68 failures, $778,492 liabilities; 1916, 27 failures, $115,560 liabilities.
There has been little change in the price
prevailing for copper and activity of this interest in Arizona has affected business very
favorably throughout that section. There has
been a substantial increase in the output of the
oil in the district and prices continue good.
There has been a slight decrease in the output
of the lumber mills of the State, and orders
have not been on so large a scale, though there
is no substantial change in the price. Business




AUGUST 1,

1916.

generally has been fair only, the increase over
the last year being nominal.
Collections, however, seem to be more satisfactory than usual. There has been a considerable increase, both in transportation of
freight and passengers.
Cotton is just beginning to move in the extreme southern end of the district. In the
Panhandle district the crop is making fair
progress, fields are clean, and as a rule there
has been sufficient rain. In the western part
of the State the cultivation of the crop has
been good and it is fruiting well, with boll
weevils reported present at a few points. In
north Texas the cultivation of the plant has
been good, few boll weevils, and the plant in
general is in excellent condition. The same
condition is true as to central Texas, except
that there is complaint of drouth in some sections, and a pretty general report of boll
weevils, though it is generally agreed that in
view of the dry weather that they have so far
done little harm. In eastern Texas the condition generally is favorable, the cultivation
of the crops excellent, and the fruiting of
cotton progressing satisfactorily. Excluding
southwest Texas, the crop is southern Texas
as a rule needs rain, and there is considerable
complaint of boll weevils, and, considering the
latitude, the crop is substantially later than
usual.
Labor continues to be well employed, and
in this section, as a rule, is contented. With
continued marked economy in the production
of the present crop, and a fair and reasonable
return for it, there should be an unusually
prosperous year.
DISTRICT NO. 12—SAN FRANCISCO.

Moderate general expansion of business continues. Bank clearings in 17 cities show an
increase in June, 1916, compared with June,
1915, of approximately 30 per cent, Seattle
showing 105 per cent gain. Both the deposits
of member banks and their loans show increases over the corresponding date last year.

AUGUST 1,

1916.

FEDERAL RESERVE BULLETIN.

Between the Comptroller's two calls, May 1 and
June 30 this year, the rate of increase in loans
has been greater than during the preceding 10
months and greater than the rate of increase in
deposits. A faster pace of loan increase suggests the probability of firmer interest rates
and is, of course, one of the first signals for
caution.
Building permits in 17 cities during June increased about 12 per cent over the total of the
corresponding month last year.
The lumber situation in Washington, Oregon,
and California is less promising than a month
ago. There has been a slackening of activity
with softening prices. Many mills which a
short time ago were operating at full capacity
are now running on short time and some are
shutting down. The apparent overproduction
is attributed in part to difficulties in transportation due both to lack of bottoms and to the
longshoremen's strike, affecting the entire
Pacific coast. There is expectation of renewed
activity during the fall months.
Metal mining continues without abatement
its exceedingly profitable activity. Petroleum
production in California during June averaged
255,451 barrels per day, a daily increase over
May of 6,000 barrels, but shipments were
304,546 barrels, a new high record. During the
first half of this year storage stocks decreased
5,947,133 barrels, a daily average of 32,677
barrels. Crude petroleum in storage June 30,
1916, amounted to 51,199,918 barrels. Prices
to producers have been advanced during the
past month about 5 cents per barrel.




417

Growers of live stock continue to benefit
largely by exceptionally high prices. The
wool clip has been largely marketed at prices
approximating 30 cents per pound.
In the Northwest wheat acreage is materially
less than for the last two years. Recent,
reports indicate weather conditions more favorable than in the early spring. Present estimates are that the crop will be 55,000,000 to
60,000,000 bushels, with about 15,000,000
bushels carried over. Lack of bottoms has
forced shipments by rail, a factor of greater
transportation cost which affects prices unfavorably.
The barley crop is reported about normal.
A heavy export demand has resulted in exceptionally high prices. The hay crop is short
and high prices rule. Beans and sugar beets,
both important crops, are commanding unusual
prices.
Although the production of certain deciduous
fruits will be less than normal, growers will
average unusual returns because of the prevailing high prices. For instance, a single
carload of California cherries sold in New York
for $5,081. Canners are paying for peaches
more than double the prices paid last year.
Shipbuilding on this coast is active beyond
all parallel, but there continues a great shortage
of ships.
Railroad tonnage has been heavy, increased
by the lack of ships, and earnings, both gross
and net, are larger.
The financial, commercial, and industrial
outlook in this district is favorable.

418

FEDERAL RESERVE BULLETIN.

AUGUST 1,1916.

DISTRIBUTION OF DISCOUNTS BY SIZES September, 1915, the date of the first discount
of this class of paper, was $3,762,000.
AND MATURITIES.

Commercial paper to the amount of $11,660,000 was discounted by the Federal Reserve
Banks during June, a total of about 4 per cent
in excess of the total for May, though about 13
per cent below the corresponding total for
June, 1915. Of the total discounts for the
month, 53.8 per cent, as against 58.2 per cent
in May and 66 per cent in June, 1915, is
credited to the three southern banks. Chicago
reported a total of $1,564,300 discounted for
the month, the greater portion being agricultural paper. The total discounts for the first
six months in 1916 were $62,543,600, compared with $72,743,800 for the corresponding
period in 1915.
Commodity paper included in the above
total and discounted during the month by five
Federal Reserve Banks aggregated $712,000,
as against $899,400 for May, and constituted a little over 6 per cent of the total
discounts for the month, compared with about
8 per cent for May and about 15 per cent for
the first five months of the present year. Practically the entire amount was cotton paper and
was handled by the Richmond and Atlanta
banks, of whose total discounts for the month
commodity paper constituted about 18 per
cent. The total of commodity paper discounted during the six months of the present
calendar year was $8,359,400, while a total of
$18,674,500 of this class of paper was discounted by the Federal Reserve Banks since
September of last year.
Seven Federal Reserve Banks discounted
during the month trade acceptances (twoname paper) to the amount of $275,700, compared with $298,300 in May and an average of
about $305,500 for the first five months of
the present year. This total does not include
about $2,559,000 of trade acceptances based
upon foreign-trade transactions and $30,000
of domestic trade acceptances purchased in the
open market. San Francisco reports over
70 per cent of the trade acceptances in the
foreign trade, and Atlanta the entire amount of
domestic acceptances bought. For the first
half of 1916 the discounts of two-name paper
amounted to $1,803,200, while the total since




The total number of bills discounted during
the month was 9,238, compared with 8,300 in
May and 10,734 in June, 1915. The average
amount of the paper discounted was about
$1,260, compared with $1,350 for May, about
$1,540 for the first five months of the present
year, and about $1,250 for June, 1915. The
averages for the month vary between $860
for St. Louis and Kansas City and $3,650 for
Boston, where, however, the total discounts
for the month were only $466,800. For the
three southern banks the average for the
month was about $l?140. Over one-quarter
of the number and more than one-half the
amount of the paper discounted was in amounts
of over $1,000 to $5,000. Small notes (in sizes
up to $250) constituted nearly 29 per cent of
the total number, though but 3.3 per cent of
the total amount of bills discounted during the
month. Bills in sizes of over $10,000,76 in number, amounted to 11.7 per cent of the total discounts for the month, Boston reporting 44.7 per
cent of its total discounts in bills of this class.
Of the total paper discounted during the
month, 10.4 per cent was paper maturing within
10 days at the time of discount, 17.6 per cent
paper maturing after 10 but within 30 days;
20.4 per cent paper maturing after 30 but within
60 days, and 26.5 per cent paper maturing after
60 but within 90 days. Agricultural and livestock paper maturing after 90 days (6-month paper) discounted amounted to about $2,900,000,
constituting over 25 per cent of all bills discounted during the month. The Dallas bank
reports nearly 40 per cent of the total amount of
this class of paper, which was over one-half of
the bank's total discounts. Minneapolis reports
$353,600 of this class of paper, or about 74 per
cent of its June discounts; Chicago, $432,300, or
28 per cent; and Kansas City, $316,200, or over
38 per cent of the bank's total discounts for the
month.
While the total amount of paper discounted
during the first six months of the present year
is about 10.2 millions less than for the corresponding period in 1915, the combined amounts
of 10- and 30- day paper discounted during the
present year were 1.7 millions, and those of
6-month agricultural and live-stock paper 1.6

419

FEDERAL RESERVE BULLETIN.

AUGUST 1, 1916.

millions larger than in 1915. On the other commodated, due to the increasing number of
hand, the amounts of 60-day paper discounted banks in rural communities that are redisduring the present year fell off about 9 millions, counting agricultural and live-stock paper.
and those of 90-day paper about 4.5 millions. Dallas, with 147 discounting banks out of a
Discounted paper held on the last Friday in total of 618 member banks in the district, and
June amounted to about 21 millions, of which Richmond, with 109 out of a total of 516, report
13.8 millions, or nearly two-thirds, was held by the largest absolute and relative numbers of
the three southern banks. The total amount banks accommodated during the month.
Member banks in Texas to the number of 128
of paper held on the corresponding date in 1915
secured $1,965,700 of rediscounts; 44 banks in
was about 5 millions larger.
Of the total member banks—7,621 at the South Carolina, about $1,103,000; 32 banks in
end of the month—678, or about 8.9 per cent, North Carolina, $949,500; 10 banks in Pennrediscounted with the Federal Keserve Banks, sylvania, $855,100; 13 banks in Illinois,
as against 655 the month before and 813 in $652,700; 45 banks in Iowa, $616,200; and 37
June, 1915. The number accommodated by banks in Georgia, $546,600. The combined
the three southern banks was 338 as against share of rediscounts secured by the 309 banks in
335 in May, 1916, and 431 in June, 1915. Chi- the 7 States named was about 58 per cent of
cago and Kansas City each show substantial the total discounts reported to the Board
increases in the number of member banks ac- during June.
Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks, during the month
of June, 1916, distributed by sizes.
NUMBER OF PIECES AND AMOUNTS.
[In thousands of dollars.]
To $100. Over $100 Over $250
to $250.
to $500.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta (including
New
Orleans
branch)
Chicago
St. Louis
Minneapolis
Kansas City
Dallas......
San Francisco
Total

Over $500
to $1,000.

Over $1,000 Over $2,500 Over $5,000

to $2,500.

16 3.0
74 12.4
32 5.3
34 5.9
318 58.5

12.4
24.2
12.8
13.9
415 183.5

17.0
39.9
34.1
17.7
326.0

15.8
16.2
.2!
41 7.8
4.31
36.4
20714.4 7441123.3
2 .2
9 1.8

176 73.1
101 37.2
87 31.9
280106.1
528192.6
17 6.8

127.8 171
277! 221.7 253
85 61.3 70
120; 82.9 113
222 157.2 140
362 256.2
17.1
28

15611.

2..5

•4

12
53
64
34
352

to $5,000.

t o $10,000.

Over
$10,000.

Total.

Per cent.

21.6 33
86.7 31
119.5 94
52.5
6
627.8 205

156.2
130.2
403.7
19.9
816.4

47.6
32.6
277.4
33.3
527.1

208.5 128; 466.8 1.4 4. 013,
!,650
20.0 323|
348.4 3.5 3.0 1,070
92.5 304; 945.7 3.3 8.1 3,110
13.5 145; 157.0 1.6 1.3 1,080
281. 2 2. 0011 2,832.3 21.7 24.3 1,410

284.6
417.3
109.9
175.0
216.0
479.8
58.9

299.9
499.5
57.1
112.2
168.8
592.7
80.2

185.5
144.4
26.1
70.3
88.41
298.2
60.5

121. 9 1 136 1,165.5 12.3 10.0
190.0 972; 1,564.3 10.5 13.4
15.0 377i 323.2 4.1 2.
409J
480.3 4.4 4.1
47.5 962
824.7 10.41 7.1
318.5 2,353 2,275.7 25.4! 19.5
318.5
50.6 1281 276.1 1.4! 2.4

678',50.2 1,955 338.2 1,981 775. 7 1,859J1,358.9 1,593 2,649.6 848 3,336.8 2481,791.4

1,020
1,610
860
1,170
860
970
2,160

76 1,359.2 9,238 11,660.0100.0100.0 1,260

P E R C E N T A G E S OF AMOUNTS OF EACH CLASS TO TOTAL.
Banks.
Boston
New York
..
Philadelphia
Cleveland
Richmond
Atlanta (including New Orleans
branch')
. ....
Chicago
-St Louis
*Minneapolis
Kansas City
Dallas
San' Francisco
Total




Over $100
I to $250.

Over $250
to $500.

Over $500
to $1,000.

0.1
.7

0.6
3.6
.6

2.7
6.9
1.4

.2
.4

3.8
2.1

8.8
6.5

3.6
11.4
3.6
11.3
11.5

4.6
24; 9
12.6
33.4
22.2

33.5
37.4
42.7
12.7
28.8

10.2
9.4
29.3
21.2
18.6

44.7
5.7
9.8
8.-6

1.1
.2
.1

4.4
1.0
5.0

7.0
4.7

8.5
2.5

25.7
31.9
17.7
23.4
20.5
26.0
29.0

10.5
12.1

5.4
.7

24.4
26.7
34.0
36.4
26.2
21.1
21.3

15.9

.5
.6
.1

11.0
14.2
19.0
17.3
19.1
11.3

14.6
10.7
13.1
21.9

14.0
18.3

100 0
100.0
100.6
100.0
100 0
100.0
100.0

.4

2.9

6.6

1L7

22.7

28.6

15.4

11.7

100.0

To $100.

1.6
4.4

11.5
6.7
12.9

6.2

Over $1,000 Over $2,500 Over $5,000
to $2,500.
to $5,000. to $10,000.

9.2
8.1

Over
$10,000.

9.9

4.6
5.7

Total.
100.0
100.0
100 0
100.0
100 0

420

FEDERAL RESERVE BULLETIN.

AUGUST 1, 1916.

Commercial paper, exclusive of open-market purchases, discounted during June by each of the Federal Reserve
distributed by States, and maturities as of date of discount.

Banksy

[In thousands of dollars.]
Paper maturing—
Number of Number of
banks
member
accommobanks.
dated.

Districts and States.

District No. 1—Boston:
Connecticut
Maine
Massachusetts . . . .
New Hampshire
Rhode Island
Vermont . .

.

56
68
164
56
17
48

1
3

Within 10
days.

After 10
days but
within 30
days.

38.2

After 30
days but
within 60
days.

After 60
days but
within 90
days.

355.7

After 90
days.

Total
commercial
paper
discounted.

2.7
393.9
16.8

2.7
3.5

2

8.8-

14.1

14.4

4.9

53.4
466.8

4.5

3

20.0

409

9

58.2

373.3

23.2

12.1

15
133
484

3
19

27.6

6.3
113.3

16.3
99.6

6.9
74.9

1.4
2.1

30.9
317.5

632

22

27.6

119.6

115.9

81.8

3.5

348.4

24
71
533

3
10

32.9
17.3

27.6
20.1

19.4
36.1

1.1
5.5

628

13

9.6
776.1
785.7

50.2

47.7

55.5

6.6

90.6
855.1
945.7

72
374
300
13

4
9

42 4

11.4
31 9

6.0
25 3

20.4
130 5

2.1

3.0
30 9

4.0

759

15

42.4

47.3

33.4

33.9

15
97
79
78
143
104

38 5

32
44
24
3

6.8
2.0

336.8
200.8
205.1

16 2
31.3
176.2
395 5
114.2
14.4

128 4
52.0
403.3
366 9
146.7
7.6

26.4
137 8
21.8

183.1
86.9
949.5
1,103.0
487.8
2.2.0

516

109

8.8

784.2

747.8

1,104.9

186.6

2,832.3

93
56
110
21
18
93

13
37
4

45 0
' 1.8
78.6
10 5

60 7
27.7
148.2
18 0

173 8
42.5
186.9
34 3

60 2
2.5
132.5
35 0

339 7
74.5
546.6
97 8

20.9

25.7

57.9

2.4

106.9

:

391

82

.4

156.8

280.3

495.4

232.6

1,165.5

District No. 7—Chicago:
Illinois
Indiana
Iowa
Michigan
Wisconsin

318
196
350
77
51

13
17
45
4
1

255.0
2.5
9.7

257.8
12.4
28.1
17.7

65.0
80.4
157.3
8.2

53.5
52.3
113.7
11.6
6.8

21.4
45.9
314.6
8.4
42.0

652.7
191.0
616.2
55.6
48.8

992

80

267.2

316.0

310.9

237.9

432.3

1,564.3

1 8

18 9
17.4
1 0

48 7
12.2

7.4
38.7
5.7

7.9
22.3

76 9
45.6
50
1 0
30.6
100.1
64.0

89.1

•91.1

.

Total
District No. 2—New York:
Connecticut
New Jersey
New York
Total
District No. 3—Philadelphia:
Delaware
New Jersey
Pennsylvania
Total
District No. 4—Cleveland:
Kentucky
Ohio
Pennsylvania . .
.
West Virginia

.

. .

Total
District No. 5—Richmond:
District of Columbia
. .
Maryland
North Carolina
South Carolina
Virginia
. .
West Virginia
Total
District No. 6—Atlanta:
Alabama
Florida
Georgia
..
Louisiana
Mississippi
Tennessee
Total

Total

..

*.. .

District No. 8—St. Louis:
Illinois
Indiana
Kentucky
Mississippi
Missouri
Tennessee
Total




64
157
61
68
18
81
20
469

2

1
5

19
.4

9

7

3.0

2
13
5

6.1
13.5
37.4

75
10.8
40
1 0
9.2
25.6
20.9

40

64.0

79.0

10
2

5.2

1

6.1

g

157.0

323.2

A U G U S T 1,

421

FEDERAL RESERVE BULLETIN.

1916.

Commercial paper, exclusive of open-market purchases, discounted during June by each of the Federal Reserve
distributed by States, and maturities as of date of
discount—Continued.

Banks,

[In thousands of dollars.]
Paper maturing—
Number of Number of
banks
member
accommo- Within 10
banjos.
dated.
days.

Districts and States.

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

After 30
days but
within 60
days.

After 60
days but
within 90
days.

2.3

27.4
4.6
.5
10.2

19.6
35.5
1.0
2.0
4.1

]21 1
109.0

172.8
40.1
122 1
114.5
30.8

42.7

62.2

353.6

480.3

45.4
68.9
14.8
21.7
22.0
143.4

70.1
302.4
28 9
62.1
32.4
328.8

316.2

824.7

31
282
69
154
124
88

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

30s
6
10
17
1

1.9

748

....

Total
commercial
paper
discounted.

After 10
days but
within 30
days.

64

1.9

3.0
14.6
19.9

After 90
days.

123.5

121

4

5.5

22
4
9
1
33

33.4

1.0

220
53
198
9
303

58.7
.5

62.2
5.6
18.5

13.1

24.6

93.7

18.2
79.2
8.5
21.4
10.4
54.0

938

73

46.5

84.8

185. 5

191.7

45.5
5.2
379.4

3.1

46.6
5.4
570.5

129.1
61.5
968.4

15 1
221.2
73.7
1,965.7

34

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

6
10

District No. 12—San Francisco:
Alaska
Arizona
California .
Idaho
Nevada. .
Oregon
Utah.
Washington

9
8
128

10.0

1.6
37.4

618

Total

2

28
33
541

147

10.0

39.2

435.3

629.1

1,162.1

2,275. 7

12
3

5.0

1.3
1.0

15.6
11.8

39.0
1.5

51.8
14.4

5
1.0

12 3

25 7

15 4

1.1.

22.3

25.1

26.3

112.7
28.7
53 9
1 0
79.8

4.9

62.0

91.3

107.9

276.1

1
7
262
58
10

.2

82
23
78

5.0

521

Total

5
1
3
24

10.0

5.2

6.6

RECAPITULATION.
[In thousands of dollars.]
Paper maturing—
Districts and cities.

No. 1—Boston
No 2—New York
No. 3—Philadelphia
No 4—Cleveland
No. 5—Richmond
No. 6—Atlanta (including New
Orleans branch)
. .
. .
No. 7—Chicago
No 8—St. Louis
No 9—Minneapolis
. . . .
No. 10—Kansas City
No 11—Dallas
No. 12—San Francisco.
Total for June
Per cent

..

Total for Jan.-June, 1916...
Total for Jan.-June, 1915




Number
of
member
banks.

Number
of banks
accommodated.

Within 10
days.

409
632
628
759
516

9
22
13
15
109
82

992

80

469
748

After 60
days, but
within 90
days.

373.3
119.6
50.2
42.4
784.2
156.8
316.0
64.0
19.9
84.8
39.2

12.1
81.8
55.5
33.4
1,104.9

4.9

23.2
115.9
47.7
47.3
747.8
280. 3
310.9
79.0
42.7
185.5
435.3
62.0

495.4
237.9
89.1
62.2
191.7
629.1
91.3

3.5
6.6
33.9
186.6
232.6
432.3
91.1
353.6
316.2
1,162.1
107.9

.4
267.2

40
64

After 30
days, but
within 60
days.

58.2
27.6
785.7

391

After 10
days, b u t
within 30
days.

8.8

1.9

After 90
days.

Total
commercial
paper
discounted.

466.8
348.4
945.7
157.0
2,832.3

4.0
3.0
8.1
1.3
24.3

1,165.5
1,564.3
323.2
480.3
824.7
2,275. 7
276.1

10.0
13.4
2.8
4.1

938
618
521

73
147
24

46.5
10.0
10.0

7,621

678

1,216.3
10.4

2,055.3
17.6

2,377.6
20.4

3,084.4
26.5

2,926.4
25.1

11,660.0
100.0,

4,516.4

10,764.3

16,468.1

19,985.7

10,809.1

62,543.6

25,513.1

24,478.6

9,205.9

72,743.8

13,546.2

Per cent.

7.1

19.5
2.4

100.0

422

FEDERAL RESERVE

AUGUST 1, 1916.

BULLETIN.

Trade acceptances discounted by each Federal Reserve Bank from Sept.-2, 1915, date of first discount to June 30, 1916.

Total to
Dec. 31,
1915.

Federal Reserve Bank.

New York
Philadelphia
Cleveland
Richmond
,
Atlanta (including New Orleans
branch)
,
Chicago

June, 1916.

$5,700
4,900
450,500

$7,300
49,500
89,600

1,007,100

46,900

Total
for first
6 months
in 1916.
$5,600
44,900
118,000
732,100
533,800
8,200

Total to
Pec. 31.
1915.

Federal Reserve Bank.

St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

June, 1916.

$167,800

40,400
3,500

1,958,800

Total..

$38,500

87,800
160,800
74,200

275,700

Total
for first
6 months
in 1916.
SI79,000
600
120,400
55,300
5,300
1,803,200

Commodity paper discounted by each Federal Reserve Bankfro*m Sept. 8, 1915, date of first discount, to June 30, 1916.

Total to
Dec. 31,
1915.

Federal Reserve Bank.

June, 1916.

Total
for first
6 months
in 1916.

Total to
Dec. 31.

Federal Reserve Bank.

June, 1916.

1915.

Total
for first
6 months
in 1916.

Dallas
San Francisco

$239,100
37,200

$2,500
2,300

$222, 700
58,200

Total...

10,315,100

712,000

8,359,400

Commodity paper discounted by each of the Federal Reserve Banks during the six months ending June} 1916,
by classes.

distributed

Richmond
Atlanta (including New Orleans
branch)
„
St. Louis
Minneapolis

$2,881,400

$499,100

$4,781,900

7,032,300
99,800
25,300

207,100

3,276,800

1,000

19, 800

Richmond.

Cotton
Peanuts
Wheat
Maize
Flax
Hops
Hav
Beans
Raisins

-

$3,273,000
900

Minneapolis.

Dallas.

$215,700

San Francisco.

$300

7,600
24,000
58,200

8,359,400

7,000
3,000

......

.

.

.

.

.

26,300

400
500

..

........

Total

2,600

1,000

4,781,900

-

Total.

$8,228,500
40,700
16,800
8,000
3,000
26,300
400
500
7,600
27,600

$16,800
1,000

Miscellaneous

Amounts

Atlanta
(including
New
Orleans
branch).

$4,739,500
39,800

Class.

3,276,800

19,800

.222,700

of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank
^
distributed by maturities.

on June 30, 1916,

Paper maturing—
Federal Reserve Bank.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta (including New Orleans branch)
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Per cent




Within
10 days.

After 10
days, but
within
30 days.

After 30
•days, but
within

After 60
days, but
within
90 days.
$8,200
36,100
36,000
51,500
876,300
479,500
411,000
115,900
92,800
422,200
851,200
85,000

$2,100
15,800
47,600
454,500
461,200
597,500
120,900
662,200
475,000
2,218,500
130,700

$182,900
447,800
529,600
269,500
5,368,900
2,782,900
2,051,800
584,000
946,700
1,911,200
5,663,100
447,800
21,186,200

After 90
days.

$110,000
94,000
292,800
43,400
1,005,500
480,600
213,600
84,700
59,100
194,700
690,800
40,400

$33,900
179,400
111,800
42,300
,441,700
676,200
254,400
99,900
74,600
315,400
774,600
77,300

$30,800
136,200
73,200
84,700
1,590,900
685,400
575,300
162,600
58,000
503,900
1,128,000
114.400

3,309,600

4,081,500

5,143,400

3,465,700

5,186,000

15.6

19.3

24.3

16.3

24.5

Total.

Per cent.

0.9
2.1
2.5
1.3
25.3
13.1
9.7
2.8
4.5
9.0
26.7
2.1

100.0

423

FEDEBAL EESEKVE BULLETIN.

AUGUST 1, 1916.

ACCEPTANCES..
Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file on dates specified, distributed
[In thousands of dollars.]
Bankers' acceptances.

Bankers' acceptances.
Trade
accept- Total
Nonmember banks.
ances
bought acceptMemin open ances.
Total.
ber
Trust
market.
banks. compa- State Private
nies. banks. banks.

Date.

1915.
Feb. 22
Apr. 5
May3
June 7
July3
Aug. 2
Sept. 6
Oct. 4
Nov. 1
Dec. 6

• 93
3,653
5,038
5,242
4,342
5,350
. . 6,087
.9,000
8,477
12,311

1916.
Jan.3
Jan. 1 0 . . . . . .
Jan. 17
Jan. 24
Jan. 3 1 . . . . . .
Feb. 7
Feb. 14
Feb. 21
Feb. 28

15,494
16,492
16,908
16,348
15,834
15,681
17,581
17,661
17,436

10
10
10

7,820
8,189
4,516
5,267
5,407
6,305
4,898
4,331
5,172

20
20
132
253
275

7,160
8,057
7/655
8,070
8,174
7,876
7,985
8,194
8,755

362
370
425
363
356
336
347
392
408

93
11,593
13,347
9,960
9,770
11,129
12,884
14,373
13,265
18,154

93
110 11,593
110 13,347
192 ' 9,960
9,770
161
352 11,129
472 12,884
343 14,373
204 13,265
396 18,154
822
938
1,010
1,441
1,510
1,456
1,851
1,841
1,841

23,838
25,857
25,998
26,222
25,874
25,349
27,764
28,088
28,440

180
180
180
489
528
460
460

23,838
25,857
26,178
26,402
27,054
25,838
28,292
28,548
28,900

Trade
accept- Total
ances
bought acceptMemin open ances.
Total.
ber
Trust
market.
banks. compa- State Private
banks.
nies. banks.
Nonmember banks.

Date.

1916.
Mar. 6
Mar. 13
Mar. 20
Mar. 27
Apr. 3
Apr. 10
Apr. 17
Apr. 24
May 1
May 8
May 15
May 22
May 29
June 5
June 12
June 19
June 26
July 3
July 1 0 . . . . .
July 17
July 24

17,182
20,323
20,563
21,128
21,000
22,239
22,135
23,566
24,875
25,058
26,633
26,639
26,104
24,680
27,354
32,011
33,155
32,989
34,144
40,497
41,514

8,670
10,032
11,280
12,864
13,573
14,864
15,028
15,196
15,400
15,750
15,372
16,490
16,541
17,029
19,209
19,490
18,722
18,921
20,201
22,309
22,327

408
470
408
411
473
476
564
584
585
671
773
690
690
644
622
560
552
471
620
593
610

1,781 28,041
1,631 32,456
2,467 34,718
3,078 37,481
3,202 38,308
3,405 40,984
3,442 41,169
3,504 42,850
3,430 44,290
3,493 44,972
4,960 47,738
0,038 49,857
5,895 49,230
7,007 49,360
7,865 55,050
9,067 61,128
11,009 63,438
11,830 64,211
11,827 66,792
13,193 76,592
12,977 177,428

462
546
678
629
722
874
1,321
1,438
1,477
1,518
1,635
2,006
2,037
2,208
2,310
2,054
1,958
3,422
3,052
3,685
3,651

28,503
33,002
35,396
38,110
39,030
41,858
42,490§
44,288
45,767
46,490
49,373
51,863
51,267
51,568
57,360
63,182'
65,396
67,633
69,844
80,277
81,079'

i Of the total of $77,428,000, there were $1,133,000 of trust company acceptances, $215,000 of State bank acceptances, and $2,995,000 of private
bank acceptances which bore the indorsement of member banks.
Amounts

of acceptances held by the several Federal Reserve Banks at close of business on Fridays,

June 30 to July 21, 1916,

[In thousands of dollars.]

Acceptances maturing—

Within 10 days:
June 30. .1
July7
July 14
July 21
From 11 to 30 days:
June 30
July7...
July 14
July 21
From 31 to 60 days:
June 30...
July7
July 14..
July 21....
From 61 days to 3 months:
June 30
July7..
July 14
July 21
Total acceptances held:
June 30.
July7
July 14
July 21




Phila- CleveNew
Boston. York. delphia. land.

Richmond.

Atlanta.

508
76
226
1,220

3,285
1,681
3,493
4,015

1,214
1,570
1,568
1,445

796
129
413
623

320
30
1,085

50
9
468

1,175
2,629
4,051
4,532

4,145
4,250
4,756
4,364

2,565
2,026
2,508
3,011

597
1,298
1,516
1,712

480
1,356
300

5,695
6,181
5,842
4,842

5,298
8,177
8,767
9,742

3,465
3,547
4,152
4,138

1,799
1,577
2,140
2,659

238
261

5,079
3,207
1,986
1,667

10,756
9,249
11,093
11,328

3,032
3,091
3,279
2,801

1,966
1,888
1,894
2,142

12,457
12,093
12,105
12,261

23,484
23,357
28,109
29,449

10,276
10,234
11,507
11,395

5,158
4,892
5,963
7,136

Chicago.

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

San
Francisco.

Total.

447
308
380
448

170
71
182
314

175
56
213
303

336

8,140
4,790
7,306
11,418

272
474
465
21

776
1,192
1,565
1,388

545
1,052
996
1,002

330
597
566
506

302
451
391
387

947
1,698
1,758
2,254

12,455
16,147
19,928
19,477

544
793
823
813

1,533
1,205
1,928
2,222

1,253
1,354
1,864
2,268

625
780
861

490
286
195
37

2,590
2,778
3,086
2;261

23,249
26,523
29,815
30,104

565
64
150
204
801
800
1,624
1,646

565
448
456

1,298
1,354
1,490
1,669

1,670
1,353
1,418
1,398

715
703
739

38
37

1,944
1,722
2,068
2,434

27,151
26,68a
24,081
24,382

1,381
1,381
1,448
1,506

4,172
4,199
5,439
5,848

3,915
4,067
4,658
5,116

1,985
2,008
2,231
2,420

1,005
830
798
727

6,461
6,287
7,248
7,877

71,095
70,14881,130
85,381

424

FEDERAL RESERVE BULLETIN.

AUGUST 1,1916.

Amounts of acceptances (in the foreign and domestic trades) bought in open market by each Federal Reserve Bank during the
calendar year 1915 and for the 6 months ending June, 1916.
[In thousands of dollars.]

Cleveland.

1,246
587
909
680
23
408
2,121
5,974

695
277
741
1,000
1 382
1,152
5,247

101
64
50

208
423

2,137
102
41
98
235
99
858
3,570

2,377
621
313
520
765
925
1,919
7,440

1,464
43
36
1,835
335
510
1,257
5,480

746
42
30
70
214
315
596
2,013

11,471 22,211
2,681
2,686
3,686
4,157
5,913
6,978
1,497
5,690
3,633
4,010
6,639 10,914
35,520 56,646

5,406
151
396
2,183
2,655
2,217
3,357
16,365

2,116
267
395
579
684
1,397
2,150
7,588

250

14,105
2,831
3,727
6,011
1,732
3,860
7,671
39,937

7 565
194
709
4,759
3,990
4,109
5,766
27,092

2,963 '
373
475
649
898
1,712
2,954
10,024

250

497
48

March 1916
ADril 1916
Mflv 1916'
Tune 1916

Total

After 30 days, b u t within 60 days:
Ca Isndo-r VGar 1915 - • -. TanuarV 1916
March 1916
At>ril 1916
May 1916
June, 1916
.
Total
After 60 days, but within 3 months:
Calendar year 1915
....
Januarv 1Q16
^ebruarv 1Q16
March 1916
..
ADril 1916
May 1916
June 1916
Total
Total acceptances bought:
Calendar vear 1915
January 1916
February, 1916
. . .
March, 1916
April, 1916
May, 1916
June 1916
Total
...

Distribution

Philadelphia.

Boston.

Within 30 days:
Calendar vear 1915
Tanuarv 1916

A

Atlanta
Rich- (includ- Chicaing New
mond. Orleans
go.
Branch.)

New
York.

128
174
847

Acceptances maturing—

25,834
3,894
5,379
8,178
6,-478
5,343
14,954
70,060

7
41
15
20
503
579

961

250

41
15
480
501
503
1,790

103

45
20
1

Total
for
system.

San
Francisco.

69
9
50

18
2
220
50
277

61
6
125

50

4
49
355
600

2 980
734
1 453
1 454
1 029
2 207
4,676
14 533

113
289

103

66

78

18
214
14
15
280

816
279
116
150
478
166
651
2,656

374
43
50
146
137
327
448
1,525

191
6
33
44.
153
126
268
821

183
55
22
151
115
82
34
642

750
13
13
107
277
300
1,589
3,049

9,057
1,204
654
3 j3g
3 403
3 345
7 635
28 437

46
300
65
421
234
288
818
2,172

4,810
489
656
787
1,092
962
1,403
10,199

1,324
357
143
355
602
1,074
1,790
5 645

1,219
200
194
365
381
502
858
3,719

1,536
151
197
285
325
639
38
3,171

2 419
304
420
459
907
1,638
2,119
8,266

52 808
7 586
10* 309
18* 325
v14 067
16'360
30 086
149'541

72
300
65
439
448
522
' 883
2,729

5,782
768
772
955
1,572
1,128
2,167
13,144

1 801
400
193
501
739
1,401
2,238
7,273

1,455
226
228
409
534
628
1,126
4,606

1,788
215
219
436
440
721
72
3,891

3 230
323
558
566
1,188
1,987
4,063
11,915

64 845
9 524
12 416
22,918
18,499
21,912
42 397
192,511

19

480
481

156

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

50

50

of bills bought in open market by all the Federal Reserve Banks during the month of June, 1916, by classes
of acceptors and sizes.
To $5,000.

To $10,000.

To $50,000.

To $25,000.

To $100,000.

Over $100,000.

Total.

Acceptances b y
classes.

8
;
86 $3., 644,207
2,680,654

35 $3.,488,878
' 20 1,439,940

119 1,005,388

478 $7,251,178
190 3,177,187
9
101,250
131 2,567,131

1,781,925

503 1,372,843
160,325
59

575 4,863,067
162 1,375,101

808 13,096,746
45
642,892

562 1,533,168
3.6

737 6,238,168
14.7

85313,739,638
32.4

Member banks
Trust companies..
State banks
Private b a n k s . . . . .

283
114
21
85

$780,279
283,716
86,250
222,598

Total bankers' acceptances
Trade acceptances.
Total biUs
bought in
the open
market
Per cent

341 $2,897,577
115
960,102

48.2
24.5
.4
20.6

188 8,106,786
102,827

82 6,710,971
52,255

35 5,561,584 2,191 139,711,997
351,752
272 2 2,685,152

93.7
6.3

192 8,209,613
19.3

83 6,763,226
16.0

37 5,913,336 2,463
14.0

598 23,596,676

Total, 6
m bri-th s
ending
June, 1916. 1,915 5,671,952 1,85015,310,974 2,247 39,360,663

27 1,782,153

13$2!, 369,645 1,236 $20,431,764
;
12 1,849,787 "509
10,391,386
30
187,500
10 1,342,152
416
8,701,347

277 23,152,447

108 20,573,414

42,397,149 100.0
100.0

127,666,126

I
1 Of the above total, bankers' acceptances totaling $39,367,197 were based on imports and exports, and $344j800 on domestic trade transactions
2 Of the above total, trade acceptances totaling $2,655,152 were drawn abroad on importers in the United States and indorsed by foreign banks
while $30,000 represents the amount of domestic trade transactions bought in«*the open market during the month.




425

FEDERAL RESERVE. BULLETIN.

AUGUST 1, 1916.

of short-term investments (municipal warrants) held by each of the Federal Reserve Banks at close of bus[
Fridays, June 30 to July 21, 1916, distributed by maturities.

Amount

[In thousands of dollars.]
Warrants maturing.
Within 10 days:
June 30
July 7
July 14
July 21
From 11 to 30 days:
June 30
July7
July 14.
July 21
Prom 31 to 60 days:
June 30
July7
July 14...
July 21
"From 61 to 90 days:
June 30...
July7
July 14.
July 21..
From 91 days to 6 months:
June 30
July 7
July 14
July 21
•Total municipal warrants held:
June 30
July7
July 14
July 21

Boston.

New
York.

Phila- Cleve- RichAtdelphia. land. mond. lanta.

230

218
691
494
77

25

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

Chicago.

50

25

Total,

252
277
55

1/790
1,069
968
351

53
141
187

878
5,476
7,592
8,172

506
440
394
394

25

763
1,247
1,099
927

312
88
63
34

53
250
275
200

6,709
2,941
2,768
2,706

192
318
294
153

195
176
151
35

545
97
94
48

21
40
60
60

305
2,219
3,485
3,389

32
269
527
503

2,175
2,198
2,379

10
10
260

305
396
622
660

18
124
380
405

143
103
83
133

2,391
412
260
210

290
109
84
84

2,651
955
932
745

10
50
76
76

322
601
750
951

225
126
65
40

124

2,346
2,421
2,421
2,371

2,751
3,061
3,436
3,486

1,300
1,652
1,737
1,787

1,459
1,182
1,182
1,345

2,362
2,938
2,743
2,677

678
972
1,176
1,271

584
796
821
871

340
340
340

761
1,141
1,141
1,420

12,531
14,503
14,997
15,568

2,750
2,595
2,595
2,595

5,639
6,010
7,500
7,531

1,899
2,235
2,527
2,550

4,941
5,100
4,900
4,594

3,468
4,416
4,596
4,519

976
1,270
1,670
1,765

796
1,008
1,033
1,083

430
480
455
455

1,712
2,062
2,062
2,296

22,671
25,236
27,424
27,724

426
231
206
31

336

77
87
87

62

Total investment operations of each Federal Reserve Bank during the month of June, 1916 and 1915.
[In thousands of dollars.}
Bills bought in open
market.
Bills
discounted
Bank- Trade
for
mem- er's, acceptber accept- ances. Total.
banks. ances.

Bank*

466.8 7, 589.1
Boston
348.4 14, 607.8
New York...
945.7\ 5, 601.6
Philadelphia
157.0
788.7
Cleveland........
502.5
Richmond
2,832.3
853.4
A t l a n t a . . . . . . . . . . 1,165.5
166.9
Chicago
1,564.3
238.4
St. Louis
323.2
126.4
Minneapolis
480.3
71.
Kansas City
824.7
Dallas....
2,275.7
San Francisco
276.1 2,165.3

Municipal warrants bought.

City.

320.2
81.6 7,670.7
345.914,953.7 1,933.3
164.3 "),765.9
'"' "
572.2
984.6
165.7 !,954.4
502.5
50.5
883.4
30.0
J, 166.9
584.9
5,238.4
339.9
.,126.4
217.0
71.9
8.0
4,062.9

0.4

All

State. other. Total.

50.9
20.4
20.4
15.3
15.3
.10.1
20.4

Total:
>E
t'.A
June, 1916.... 11,660.0 39,712.0 2,685.1'42,397.1 5,300.0 152.8
4,701.0
June, 1915.... 13,406.0 4,701.0
6 months ending June 30,
62,543.6121,931.3 5,734.8 127,666.1 51,497.0 2,803.0
1916
6 months ending June 30,
122,606.0
1 9 1 5 . . . . . . . . 72,743.8 22,606.0 —




1

Sold $25,000 of 3 per cent conversion bonds of 1946.

25.0

320.2
1,184.2
617.6
1,005.0
50.5
600.2
355.2
227.1
8.0

United States bonds and Treasury
notes.
2 per
cent.

3 per
cent.

4 per 1-year!
cent, notes.

319.0

115.54

20.0 -

434.94
359.5

20.0

525.0
245.0

309.
25.0 5,477.8
4,512.8

867.5.
200.0

175.154,475.134,488.6 3,622.82 4,128.0
29,065.6 5,771.751,704.5
2

1916

8,457.7
17,298.8
7,329.2
404.0
4,520.4
3,385.3
2,048. 9
4,331.8
2,916.8
2
135.54 1,969.34
1,429.6
525.0
2,520.7
245.0
648.8
112.5

12.5
85.0

Total investment
operations.

1915

1,652.7
5,262.1
1,526.3
1,094.4
4,004.3
2,358.0
1,361.6
554.3
1,019.3
435.9
2,477.1
1,433.3

1,322.44 60,857.34
23,179.3
559.5
50.0 42,289.42 286,974.22
7,476.25

Sold $10,200 of 3 per cent conversion bonds of 1946.

131,891.65

426

FEDERAL RESERVE BULLETIN.

AUGUST 1, 1916...

FEDERAL RESERVE BANK STATEMENTS.
Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays^.
June SO to July 21, 1916.
RESOURCES.
[In thousands of dollars.]

Boston.

New
York.

Philadelphia.

Cleve- Richland. mond.

Atlanta.

San
St.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. City.
cisco.

Gold coin and certificates
in vaults:
7,572 12,803 5,110 6,4S9
40,137 5,408 6,695 •4,254 5,286
5,326 156,391
June 30
6,721 12,869 5,110 5,942
39,539 5,013 6,210
4,261 5,248
6,276 157,227
Julv7.
-36,561 5,672 6,021
11,222 12,961 5,141 5,968
4,154 5,237
6,675 162,823
July 14
..
37,419 4,047 6,003 4,384 5,260
8,512 13,775 5,205 6,302
7,892 151,815
July21
Gold settlement fund:
4,655 5,379 9,326 9,103
3,927
15,553 11,343 14,801
14,777
June 30
4,761
9,939 5,878 5,777 10, 587 10,002
16,416 12,405 15,826 5,
16,667
July7.
-.-4,367
11,016 6,197 5,657 11,539 9,759
16,200 11,898 10,538 1,504
20,163
July 14.
6,010
7,832 5,649 4,608 11,711 4,541
12,275 11,161 11, 561
16,052
July21
1,940
Gold redemption fund:
200
17
18
250
50
420
30
63
5
471
255
June 30
200
108
250
50
65
413
30
159
5
462
259
July 7.".
200
250
50
90
59
407
30
157
5
453
259
July 14.
200
250
50
423
30
145
65
5
55
447
251
July21
Legal tender notes, silver,
etc.:
606
1,821 1,130
20,612
317 1,057
203
616
166
885
June 30
853
135 1,068
1,050 1,127
172
46
31,223
298
90
809
July7...:.........-..
737 1,135
111 1,097
4,762
182 1,002
15
300
85
800
July 14
1,098 1,148
7,426
165 1,146
203 1,078
246
76
786
July21
Total reserve:
52,038 11,210 12, 720 13,809 15,529
23,492 25,221 20,534 12,955
20,134 181,180
June 30
50,728 12,126 12,315 15,097 16,318
23,322 26,407 21,521 12,646
22,994 193,461
July7
27,613 26,015 16,268 8,927
48,514 13,094 12,008 15,935 16,055
26,888 172,202
July 14
21,002 26,137 17,392 9,767
46,549 10,909 11,037 16,316 10,838
24,195 168,501
July 21...
Five per cent redemption
fund against Federal
Reserve bank notes:
400
June 30
400
July7
400
July 14
400
July 21
Bills discounted—members:
530
2,052
584
183
270 5,369 2,783
947 1,911 5,663
June 30
2,581
370
585
471 5,285 2,734
613 1,126 1,900 5,697
89
July7
325
546 5,505 2,707
3,633
644 1,219 1,943 5,892
823
181
July 14
281
434 5,810 2,842
3,626
758 1,434 1,908 6,134
1,095
4,057
July 21
:....:
Bills bought in open market:
23,484
12,457
10,276 5,158
801 1,381
4,172 3,915 1,985 1,005
June 30
23,357
4,199 4,067 2,008
12,093
10,234 4,892
800 1,381
830
July7
28,109
5,439 4,658 2,231
12,105
11,507 5,963
,624 1,448
798
July 14...
29,449
5,848 5,116 2,420
12,261
11,395 7,137
,646 1,506
727
July 21
United States bonds:
3,538 6,756
3,082
3,476
,605 1,684
9,753 2,959 3j 513 9,853 3,111
June 30
3,482
3,182 6,756
,605 1,684
3,082
9,753 2,959 3,513 9,853 3,111
July7
3,482
,605 1,684
3,182 6,756
3,082
9,753 2,959 3,513 9,853 3,111
July 14
2,732
377 1,508
3,182 5,756
3,082
9,753 2,770 3,513 9,853 3,111
July 21.
One year treasury notes:
1,532
350
462
250
380
350
410
June 30
1,532
350
456
250
350
410
818
July 7.....
.1,532
350
456
250
350
410
818
July 14
526
250
2,282
800
350
410
570
818
July 21
-..
Municipal warrants:
4,941
60
5,639
3,468
2,750
1,899
976
430
796.
June 30
5,100
60
6,010
2,235
4,416
2,595
1,270 1,008
480
July7
4,900
2,527
86
7,500
4,596
2,595
1,670 1,033
455
July 14
4,594
336
7,531
4,519
2,595
1,765 1,083
455
July 21
2,549
F e d e r a l reserve notes,
net:
1,798
634
309
742
13,821
1,700
1,297
903
June 30
1,605
481
14,997
187
1,658
1,364
1,079
July7
1,633
11,554
461
194
1,678
1,391
1,365
July 14
11,826
1,106
487
259
1,246
1,153
739
1,449
July 21
Due from other Federal
Reserve Banks, net:
463
4,220
1,413 1,580
5,466
2,408
7,666
1,333 1,414
634
June 30
1.749 1,224
8,067
902
7,454
2,386
5,831
1,357 2,054
226
July7
,
2,537 1,609
1,001
1,595
5,639
2,494
1,921
1.018 1,446
100
July 14
2,028
2,331
6,909
3,274
653 1,963
53
July 21
i Items in transit, i. e., total amounts due from less total amounts due to other Federal Reserve Banks.




Total
for
system.

6,567
6,826
7,167
8, 435

262,038,
261,242:
269,602
262,049-

8,798
8,953
9,763
6,221

112,931
122,600*
118,631
99,561

10
10
10
10

1, 789
2,011
1,970
1,931

9
11
23
34

27,448
36,882
10,279"
13,802

15,384
15,800
16,963
14,700

404,206422,735
400,482377,343

450
46a
45a
450
532
550
558

21,188
21,98323,96a
28,937

6,461
6,287
7,248
7,877

71,09570,148
81,130
85,382.

3,609
3,609
3,609
3,109

52,939
52,589
52,589
49,746.

500

4,19a
4,546
4,546
7,19a

1,712
2,062
2,062
2,296

22,671
25,236
27,424
27,725

1,978
1,756
1,664
1,749

23,182
24,113
20,76a
20,014

1,841
2,878
1,751
126

120,414
120,422
120,056
i 11,982

427

FEDERAL RESERVE BULLETIN.

AUGUST 1, 1916.

.Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays,
June 30, to July 21, 1916—Continued.
RESOURCE S—Continued.
[In thousands of dollars.]

Boston.

All other resources:
June 30
July 7....
July 14
July 2 1 . . . . . . . . . .
Total resources:
June 30
July 7
July 14
July 21

59
102
38
432

47,323
48,022
47,880
47,611

New
York.

Philadelphia.

Cleve- Richland. mond.

Atlanta.

San
St.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. City.
cisco.

187

58.
160
48
65

350
412
421
468

164
149
197
151

1,333
1,160
1,032
823.

618
549
902
791

411
413
378
527

229,896
243,453
228,838
222,789

45,109
49,084
48,574
42,924

44,418
45,974
47,332
47,613

30,569
31,100
27,350
27,396

22,747
22,462
18,782
18,078

79,267
81,338
80,154
79,241

24,140
25,578
27,668
26,842

316
244

4,134

131
86
106
89

327
183
182
251

22,678 29,559
22,842 31,207
22,843 31,422
22,028 32,283

Total
for
system.

167
255
261
167

4,622
4,140
8,244
4,756

25,675 31,600
25,829 33,179
25,753 34,108
20,991 31,082

624,957
646,362
639,649
613,523

688
427
545
805

LIABILITIES.
[In thousands of dollars.]
Capital paid in:
June30..
July7......
:.
July 14
July 21
•Government deposits:
June 30
July7
July 14
July 2 1 . . , . .
Hember bank deposits,
net:
June 30
July7
July 14......
July 21
Federal Reserve notes,
net liability:
June 30
July7
July 14
July 21
JFederal Reserve bank
notes in circulation:
June 30
July7
July 14
July 21
'Due to other Federal Reserve Banks, net:
June 30
Jnly7
July 14
July 21
All other liabilities:
June 30
July7
July 14
July 21
Total liabilities:
June 30
July7
July 14
July 21




4,925
4,925
4,925
4,925

11,281
11,281
11,596
11,594

5,215
5,216
5,216
5,216

5,966
5,966
5,966

3,357
3,357
3,357
3,357

2,468
2,468
2,468
2,491

6,668

2,790
2,790
2,792
2,792

2,576
2,576
2,576
2,576

2,999
2,999
2,999
2,997

2,676
2,679
2,679
2,679

3,933
3,933
3,921

54,854
54,858
55,176
55,183

8,636
8,320
8,061
3,877

29,311
40,399
34,169
18,085

10,532
10,747
10,692
6,105

3,244
3,377
3,550
2,749

8,202
8,524
3,985
3/403

9,225
9,678
5,097
4,366

11,974
11,929
9,348
3,604

4,962
5,221
5,884
4,177

801
774
670
819

2,644
3,221
3,297
2,344

6,439
6,722
6,906
2,005

5,182
5,508
5,817
2,743

101,152
114,420
97,476
54,277

33,676
34,677
34,799
38,073

181,280
178,067
182,018
189,966

60,625
19,301
.62,741 17,567 19,492
64,137 18,992 19,597
19,873 18,633

21,327
22,078
22,088
23,810

12,081
11,813
11,536

22,485
23,738
24,358
11,688 24,418

457,503
465,147
474,942
492,000

4,479
4 ""
4,632
4,619

9,440
9,992
10,098
10,120

29,346 35,208 14,851 10,935
33,078 36,631 14,950 10,315
32,616 37,816 15,771 11,214
16,094 10,028
31,551
4,093
4,189
4,148
4,061

1,188
i 1,318
1,440
1,721
1,721
1,720
1,692

634

8,024
13,706
1,055
3,144

100
95
102
47,323
48,022
47,880
47,611

386
16
43
50
52

243,453
228,838
222,789

1,191

66
80
89
95

1,721
1,721
1,720
1,692

119
1
3
2

45,109 44,418 30,569 22,747
49,084 45,974 31,100 22,462
48,574 47,332 27,350 18,782
42,924 47,613 27,396 18,078

287
224
237
251
79,267
81,338
80,154
79,241

24,140
25,578
27,668
26,842

22,678
22.842
22.843
22,028

29,559
31,207
I 31,422
i 32,283

25,675
25,829
25,753
20,991

31,600
I 33,179
34,108
31,082

624,957
646,362
639,649
613,523

428

FEDERAL RESERVE BULLETIN.

AUGUST 1,1916-

Circulation of Federal Reserve notes at close of business on Fridays June 30 to July 21, 1916.
[In thousands of dollars.]

Boston.

Federal Reserve notes issued to the bank:
June 30
July7
July 14
July 21..
Federal Reserve notes in
hands of bank:
June 30
July 7....„....•
July 14.
July 21.
Federal
circulation:
June 30
J ly .
7
July 14
July 21
Gold and lawful money
deposited with or to the
credit of the Federal
Reserve Agent:
June 30
July7
July 14
July 21..........V..-..
Carried to net assets:
June 30
July7......
July 14.....
July 2 1 . . . . .
Carried to net liabilities:
June 30
July7
July 14...
July 2 1 . . . . . .




New
York.

Philadelphia.

Cleve- Rich- Atlan- Chicago.
St.
Minneland, mond.
ta.
Louis. apolis.

Total for
system.

City.

Dallas. Francisco.

12,143
12,625
12,808
12,808

9,201
9,292
9,482
9,714

13,957
14,319
14,319
14,277

9,745
9,729
9,729
9,616

176,16$
179,783
179,358175,219

217
142
152
200

412
395
408

1,978
1,756
1,664
1,749

23,924
25,098
21,779;
21,181

10,235
10,663
10,606
10,548

69,474
71,060
70,731
66,933

7,313
8,160
7,982
7,947

9,920
9,887
9,762
9,735

9,628
9,649
9,578
9,419

14,122
13,998
13,998
13,904

3,639
3,633
3,625
3,620

6,791
6,768

742

739

13,821
14,997
11,554
11,826

634
481
461
487

309
187
194
259

427
431
472
559

1,798
1,605
1,633
1,106

1,700
1,658
1,678
1,246

1,297
1,364
1,391
1,153

1,079
1,365
1,449

9,493
9,677
9 786
9,809

55,653
56,063
59,177
55,107

6,679
7,679
7,521
7,460

9,611
9,700
9,568
9,476

9,201
9,218
9,106

12,324
12,393
12,365
12,798

1,939
1,975
1,947
2,374

5,494
5,404
5,347
5,545

11,240
11,546
11,443
11,359

8,984 13,859
9,150 13,907
9,330 13,924
9,514 13,869

7,767
7,973
8,065
7,867

152,244
154,685
157,579
154,038

10,235
10,663
10,606
10,548

69,474
71,060
70,731
66,933

7,313
8,160
7,982
7,947

9,920
9,887
9,762
9,735

5,108 14,122
5,029 13,998
4,958 13,998
4,799 13,904

3,639
3,633
3,625
3,620

6,791
6,768
6,738

12,143
12,625
12,808
12,808

8,116
7,962
8,012
8,074

9,745
9,729
9,729
9,616

165,986
168,806
168,241
163,932

742

13,821
14,997
11,554
11,826

309
187
194
259

1,798
1,605
1,633
1,106

1,700
1,658
1,678
1,246

1,297
1,364
1,391
1,153

1,978
1,756
1,664
1,749

23,182
24,113
20,760
20,014

739

634
• 481
461
487

4,148
4,061

9,380
9,292
9,292
9,250

1,079
1,365
1,449
1,188
1,318
1,440

4,479
4,615
4,619

9,440
9,992
10,098
10,120

AUGUST 1,

429

FEDERAL RESERVE BULLETIN.

1916.

Statement of Federal Reserve Agents' accounts at close of business on Fridays, June 30 to July 21, 1916.
[In thousands of dollars.]

Boston.

Federal Reserve notes:
Received from ComptrollerJune 30
July?
July 14
July 21
Returned to ComptrollerJune 30
July7
July 14.....
July 21
Chargeable to Federal
Reserve AgentJune 30..
July7
July 14.....
July 21..
In hands of Federal
Reserve Agent—
June 30..
July7
July 14
July 21
Issued to Federal Reserve Bank, net—
June 30
July7
July 14
July 21
Amounts held by Federal
Reserve Agent:
In reduction of liability on outstanding notesGold coin and
certificates
on hand—
* June 30
July 7
July 14
July21
Credit balances
in gold redemption fundJune 30
July 7
July 14
July 21
Credit balances
withFederalReserve BoardJune 30
July7
July 14
July 21
As security for outstanding notes—
Commercial
paperJune 30
July7
July 14
July 21
TotalJune 30
July7
July 14
July 21
Memorandum:
Total amount of commercial paper delivered to Federal
Reserve Agent—
June 30
July7
July 14
July 21




New
York.

Philadelphia.

Cleve- Richland. mond.

Atlanta.

San
St.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. City.
cisco.

Total
for
system.

20,380
20,380
20,380
20,380

119,240
119,240
121.240
121,240

15,480
15,480
15,480
15,480

15,160
15,160
15,160
15,160

17,000
]7,000
17,000
17,000

20,400
20,400
20,400
20,400

9,380
9,380
9,380

9,600
9,600
9,600
9,600

19,000
19,000
19,000
19,000

13,000
13,000
13,000
13,000

23,580
23,580
23,580
23,580

13,320
13,320
13,320
13,320

295,540
295,540
297,540
297,540

3,425
3,497
3,554
3,612

31,966
32,380
32,709
36,507

3,547
3,600
3,778
3,813

1,740
1,773
1,898'
1,925

3,872
3,951
4,022
4,181

2,306
2,306
2,400

874
879

1,047
1,070
1,100
1,140

327
345
362
362

1,035
1,035
1,073

2,584
2,672
2,672
2,714

775
791
791
904

53,206
54,286
55,101
59 510

16/955
16,883
16,826
16,768

87,274
86,860
88,531
84,733

11,933
11,880
11,702
11,667

13,420
13,387
13,262
13,235

13,128
13,049
12,978
12,819

18,218
18,094
18,094
18,000

8,520
8,514
8,506
8,501

8,553
8,530
8,500
8,460

18,673
18,655
18,638
18,638

12,119
11,965
11,965
11,927

20,996
20,908
20,908
20,866

12,545
12,529
12,529
12,416

242,334
241 254
242,439
238,030

6,720
6,220
6,220
6,220

17,800
15,800
17,800
17,800

4,620
3,720
3,720
3,720

3,500
3,500
3,500
3,500

3,500
3,400
3,400
3,400

4,096
4,096
4,096
4,096

4,881
4,881
4,881
4,881

1,762
1,762
1,762
1,762

6,530
6,030
5,830
5,830

2,918
2,673
2,483
2,213

7,039
6,589
6,589

2,800
2,800
2,800
2,800

66,166
61,471
63,081
62,811

10,235
10,663
10,606
10,548

69,474
71,060
70,731

7,313
8,160
7,982
7,947

9,920
9,887
9,762
9,735

9,628
9,649
9,578
9,419

14,122
13,998
13,998
13,904

3,639
3,633
3,625
3,620

6,791
6,768
6,738

12,143
12,625
12,808
12,808

9,201
9,292
9,482
9,714

13,957
14,319
14,319
14,277

9,745
9,729
9,729
9,616

176,168
179,783
179,358
175,219

9,700
9,700
9,700
9,700

65,817
63,817
63,817
60,317

3,690
4,090
4,090
4,090

9,380
9,330
9,250
9,200

2,850
2,850
2,850
2,850

10,120
10,620
10,820
10,820

4,000
4,000
4,050
4,150

8,040
8,040
8,040
8,040

535
963
906
848

3,657
7,243
6,914
6,616

333

540
557
512
535

391

332
497

673
655
638

616
462
462
424

810
722
822
780

395
379
379
266

9,809
13,379
12,974
12,415

3,550
3,550
3,550
3,550

1,350
1,350
1,350
1,350

3,500
3,500
3,500
3,500

530
530
430
430

9,350
9,350
9,350
9,350

42,580
42,980
42,650
42,350

1,085
1,330
1,4.70
1,640

4,577
5,027
5,027
5,027

9,201
9,292
9,482
9,714

13,957
14,319
14,319
14,277

1,091
1,339
1,570
1,640

4,950
5,128
5,564
5,634

1,122

358
299

904

329
323
315
310

4,700 13,000
4,700 13,000
4,600 13,000
4,500 13,000

!,290
3.
3; 560
3,360

408

3,310
3,310
3,310
3,310

4,520

4,620
4,620
4,620

10,235
10,663
10,606
10,548

69,474
71,060
70,731

7,313
8,160
7,982
7,947

9,920
9,887
9,762
9,735

9,628
9,649
9,578
9,419

5,163
4 —
6,307
5,603

14,122
13,998
13,998
13,904

3,639
3,633
3,625
3,620

6,791
6,768
6,738

12,143
12,625
12,808
12,808

113,597
112,447
112,617
109,167

10,182
10,977
11,117
11,287
9,745
9,729
9,729
9,616

176,168
179,783
179,358
175,219

11,204
11,305
13,441
12,877

430

FEDERAL RESERVE BULLETIN.

AUGUST 1, 1916.

GOLD IMPORTS AND EXPORTS.
Below are given data showing the imports
and exports of gold, classified by countries of
origin and destination, also under the heads of
ore, bullion, and coin, for the fiscal years end-

ing June 30, 1914 to 1916. These data were
prepared and furnished to the Board by the
Bureau of Foreign and Domestic Commerce of
the Department of Commerce:

Imports and exports of gold, by countries, during the 12 months ending June 30, 1914, 1915, and 1916.
Countries.

.,
J l , 195,284
14,176

1915

1916

$11,552,926

$15,406

2,565,423

1,965,270

38, 319,111

480,040
559,554
410,719

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

117,996,063
43,000
267,461,590
3,427,321
6,246,249
25,037,153
16,905,993
1,631,803
9,207,136
39,305,148
6,732,439

66,538,659

France
----Germany....
:...
United Kingdom:
England
Scotland.
Canada
Central American States.
Mexico.

1914

171,568,755

494,009,301

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

27,226,603
103,455,383

5,774,998
15,309,139

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

27,776,310
753,183
1,611,296
10,001,538
4,805,937
4,844,494
19-371,187

112,038,529

146,224,148

90,248,082

490,450
116,942
044,005
342,955

•.•':

West Indies.
South America
China.
Japan..
Australia
All other countries.
Total.
EXPORTS—FOREIGN AND 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.




6,761,361

AUGUST l,

431

FEDERAL RESERVE BULLETIN.

1916.

Imports and exports of gold in ore, bullion, and coin, by customs districts, fiscal year ending June SO, 1916.
Coin.
Ore and
base
bullion.

Customs districts.

Maine and New Hampshire.
Massachusetts
New York
Philadelphia
Porto Rico
Rhode Island
Florida
New Orleans. *
Arizona
Eagle Pass.
El Paso
Laredo

$1,200

Bullion, refined.

Ozs. (troy).
2

3,630,086

i5,*469,"i3i'

1,302

San Francisco
Southern California.
Washington.
...
Buffalo
.:.
Chicago
Dakota....
Duluth and Superior.
Michigan
Ohio
St. Lawrence.
Vermont.

27,474

14,468,907

47,799
10,600

12,752
1
5,498
203,826
513,374
325
181,564
1109,584
88,621

3,300,
10,195,
6,
2,959,
2,122,
1,635,

4,391,000
38,500

9,390
2,920
505
62,425

45,635,208

251,

4,534
255,577
825
1,842,788
2^500
1241,567
965 / 4,727,398
\

Total...

Total gold.
Foreign.

$50 $48,390,003 $11,651,680
3,000
7,423,055 134,898,673
2,507,200
2,115

771,431

421,-951
527,592
6,617
155,699
164,934
143,685
2,253,865
3,019
3,691,585

United
States.

110,

498,000

250
120
4,967,723
97,334,317 } 3,771,541 81,813,216
1,360
1,000

6,857,245 138,380,834

59,722,083 281,437,477

$60,042,933
3,000
159,152,339
2,507,200
2,115
27, 474
4,438,799
471,051
778,625
6,642
266,280
164,934
3,454,058
58,087,257
10,189
7,2*1,455
7,388,229
4,534
255,577
1,075
1,842,908
.- 2,500
187,887,762
2,365
494,009,301

EXPORTS—DOMESTIC.

Maine and New Hampshire
New York
Porto Rico
New Orleans
.
Alaska
.,
Hawaii.
San Francisco....
Washington
Buffalo-..-.

1,500
345,546
50,588
...

.
300,454
88,731

Duluth and Superior.
Michigan...
Montano and Idaho...
St. Lawrence.
Vermont.

1339,278
958
111,691
10,635
122
96
1,667
148,488
126
1,022

Total

...

...

441,273

759,529

7,139,906

2,260
31,747,459
15,000
10,000
50,588
127,830
23,303,121
459,520
1,477,078

. 760
24,607,553
15,000
10,000

127,830
7,016,470 16,286,651
19,138
139,928
241,695
220,006 • 926,646
449
1,905
34,408
485
2,855
1,004,390
" 2,591 2,243,715
19,251
750,300
15,700,269 45,111, 723

2,414
34,893
2,855
3,250,696
769,551
61,253,265

EXPORTS—FOREIGN.

Maine and New Hampshire..
New York
El Paso
Alaska
San Francisco
Buffalo....
Duluth and Superior
Michigan
St. Lawrence

2,
19,662.

s;

519




1

10,395

519

Total.

10,395

United States mint or assay office bars.

64,
133,
1,
2,
9,109,
28,984,422

2,150
19,662,518
8,093
185
64,922
133,176
1,000
2,741
9,120,032
28,994,817

432

FEDERAL RESERVE BULLETIN.

AUGUST 1,

1916.

Imports of gold, by customs districts, Jan. 1 to July 21, 1916.

Total.

Law

uthe
for

Maine and New
Hampshire.

[In thousands of dollars.]

Week ending June 30.
73
264
1,228

Total

148
132

15

72

47

280

72

15

1,565

Ore and base bullion.
Bullion, r e f i n e d . . . . . .
Foreign coin

47

24

25,398
6,813
24

351
25,842
8,041

32,211

34,234

Week ending July 7.
Ore and base bullion
United States mint or assay
office bars
Bullion, refined
Foreign coin

67

55

265
205
9,993
3,689

205

9,863
3,684

"126

13,614

Total

130

7

133

130

205

55

14,152

29

267

Week ending July 14.
26

Ore and base bullion
United States mint or assay
office bars
Bullion, refined
Foreign coin

10

13

619
2,492

Total

18

132

3,137

10

145

150

12

-17
18

103

17

253

109

12,000

106
12

29

3
12,981
2,492

12,000

15,743

Week ending July 21.
Ore and base bullion
United States mint or assay
office bars
20,000
Bullion, refined
United States coin
Foreign coin
Total

20,000

46

198

271
7,479

210
28,015

7,479

28,506

210
433

103

""2
481

301

210

Jan. 1 to July 21.
1,352
Ore and base bullion
.
United States mint or assay
office bars
20,000
Bullion, refined
....
United States coin
115
Foreign coin
28,521
20,002~ 48,716
Total.




198

346

69

121

100

41
41

212

36 1,273

638 3,112
1
4," 867'

31

467

148

148

675 9,252

1,965

597

177 1,044

2,478
856 990
55
27 2,876 4,065

7,212
2,478
119,479 163,979
1,777
1,994
9482 72,880

177 1,044

160,738 248,543

AUGUST 1,

433

FEDERAL RESERVE BULLETIN.

1916.

Exports of gold, by customs districts, Jan. 1 to July 21, 1916.

Total.

Vermont.

St. Lawrence.

Montana a n d
Idaho.

Michigan.

Duluth and Superior.

Dakota.

Buffalo.

Washington.

San Francisco.

Hawaii.

Alaska.

Porto Rico.

New York.

Maine and New
Hampshire.

[In thousands of dollars.]

Week ending June 30.
21
1

1
2

21
255
526
844
2

1

3

1,648

5

5
3,529
255

5

3,789

39

17
1,686
39

39

1,742

1

United States mint or assav office bars
Bullion refined domestic

1
257
5
1

255
5

520
250

TTnitfid 'States nnin

590

1
2

Total

770

845

22

7

Week ending July 7.

United States mint or assay office bars
United States coin
Foreign coin
Total

3 523
255

1

5

3 778

1

5
=====

Week ending July 14.

Bullion, refined, domestic..

9

8
630

TTnitfifl 'Sta.fiAS o.mr\

Total

3
3

638

1,052
1,052

1
1

9

Week ending July 21.

United States mint or assay office bars
Bullion, refined
TJnited States coin
Foreign coin . . . .
Total
Jan. 1 to July 21,1916.
Ore and base bullion
United States mint or assay office bars
Bullion, refined:
Domestic
Foreign
United States coin
Foreign coin
Total




244
4

11

2
1
1

248

11

4

1

264

67
69

1

517

189
7,160

2

108

12
5,815

758
4 208
1 438
20,294
18 080
2

701

2

244

1

2

15

1

108

17,250
63

47

19
8

12

2
2

3

44,778

15

13

108

23,829

157

407

13

7

15

12
1
1

21
5
1,020
1,423
2,986

9
750
759

5,200
1,443
39,519
19,579
73,090

434

FEDERAL RESERVE BULLETIN".

AUGUST 1, 191ft.

EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS.
Average amounts of earning assets held by each Federal Reserve Bank during June, 1916, earnings from each class of
earning assets, and annual rates of earnings on the basis of June, 1916, returns.
Average balances for the month of the several classes of earning assetsBills redi scounted,
members.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago..
St. Louis
Minneapolis..
Kansas City...
Dallas
San Francisco.

409,789
547,013
277,443
5,287,134
2,790,231
1,974,229
649,804
881,100
1,837,618
5,129,389
422,000

Total...

Bills bought
in open
market.

20,514,283

$11,236,833
20,681,672
9,610,755
4,400,823
803, 753
1,579,205
3,690,197
3,389,110
1,724,000
1,161,459

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

5,125,000

1,895,000

63,402,807

24,216,008

56,759,483

Total...




United
States
bonds.

$910.94 $19,039.60
1,348,98 37,034.13
16, 580.97
1,645.88
1, 005. 84
7,418.37
17,924.71
2,011.22
9,216. 89
3,020. 78
7,569. 47
6,474.38
2,362. 51
5, 770.80
3,393. 51
2,812.95
7,480. 75
2,008.08
18,639.33
1, 767. 43
8,997. 59

$5,884.82
11,473.69
5,889.06
10,348.92
150.90

3, 723.28

$5,907.86
10,897.83
7,347.90
13,120.30
4,155.25
3,731.85
19,032.62
6,084. 43
7,207.18
17,973.12
4,951.02
6,014.58

$31,743.22
60,754.63
31,463.81
31,893.43
24,242.08
15,969.52
40,373.26
16,235.67
16,422.91
28,568.14
23,590.35
20, 502.88

73,266.24

50, 800.85

106,423.94

341,659.90

111, 168.87

3,474,576
952,572
1,408,000
549,625

$17,629,712
3L757,29&
17,120,064
15,802,2668,212,293
6,403,436*
18,892,035
8,330,486
7,825,400'
13,751,952
8,117,639
11,050,000164, 892,581

Calculated annual rate of earnings from—

Municipal
warrants.

7,296.79
2,017.93
3,009.27
1,106.19

$2,752,346
5,651,520
2,962,296
4,509,667
60,406

Total.

$3,332,000
5,014,317
4,000,000
6,614,333
2,061,000
2,034,000
9,753,033
3,339,000
3,812,300
10,203,250
2,988,250
3,608,000

Earnings from—
Bills
BiUs redis- bought in
counted,
open
members.
market.

United
States
bonds.

Municipal
warrants.

Total.

Bills
Bills
redisbought
counted, in open
members. market.

Municipal warrants.

United
States
bonds.

All investment,
operations.

Per cent. Per cent. Per cent. Per cent. Per cent.
3.60
2.61
2.16
2.20
2.07
4.00
2.44
2.61
2.33
2.18
3.67
2.42
2.24
2.24
2.10
4.4.2
2.90
2.38
2.4&
2.06
4.14
3.05
2.46
3.60<
3.05
4.03
2.24
3.04
2.33
4.68
2.38
2.61
•2.14
2.56
4.44
2.22
2.38
2.08
2.51
4.70
2.31
2.5fr
1.99
2.61
4.96
2.14
2.53
2.10
.2.45
4. 43
2.02
3.55*
5.11
2.03
2.36
2.40
2.14
4.36

2.14

2. 56.

2.29

2.5a

INTERDISTRICT MOVEMENT OF FEDERAL RESERVE NOTES, JANUARY i TO JUNE 30, 1916.

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

Returned
to.

780,730

Received
from.

Richmond.

Cleveland.

Atlanta.

Returned
to.

Received
from.

Returned
to.

Received
from.

Returned
to.

Received
from.

Returned
to.

Received
from.

$626,500
"'866J566'
472,500
2,262,150
1, 746, 710
76,450
205,800
316, 600
357,000
695,250
4S5,400

$83,000
876,480
19,635
33,205
16,115
55,000
7,205
4,140
1,550
2,505
3,745

$62,380
1,592,500

$67,000
482,260
107,280

$4,985
147,960
19,635

107,280
315,190
105,620
8,970
12,175
23, 690
19,910
37,280
15,480

$93,000
2,288,120
302,715
25,245

$7,340
134,420
33,205
15,095

15,095
30,520
253,000
34,135
16,935
6,240
7,015
9,795

25.245
10^25
8,805
6,010
13,410
10,920
10,515
3,085

$46,000
1,754,130
105,620
10,925
91,360

$12,215
214,640
16,115
30,520
241,070

241,070
165,000
30,840
9,200
5,610
10,820
11,215

91,360
410
3,535
3,675
4,480
9,095
1,195

277,000
244,240
11,940
10,785
125,495
12,415

6,090
32,890
13,795
27,015
550,890
7,390

1,743,000 j 4,561,055

8,110,860

1,102,580

2,300,475

1,029,275

261,495

3,182,835

303,810

2,689,910

1,152,630

Chicago.

$1,368,000
:

St. Louis.

Minneapolis.

Kansas City.

San Francisco.

Dallas.

Total.

Received Returned Received Returned Received Returned Received Returned Received Returned Received Returned Received
to.
from.
from.
from.
from.
from.
to.
to.
to.
from.
to.
from.
to.
Boston
,
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City....
Dallas
San Francisco..
Total




Returned
to.

i,* 608; 500
147,960
134,420
214,640
778,500
113,220
73,155
18,185
36,770
67,705

$634,850 $1,339,000
62,380
83,000
4,985
67,000
7,340
93,000
46,000
12,215
9,000
36,500
10,000
6,150
28,000
4,440
20,000
l',785
33,000
2,210
15,000
7,875

Total..

Philadelphia.

New York.

•Boston.

$9,000
79,710
8,970
8,805
410
6,090

$36,500
778,500
55,000
253,000
165,000
277,000

$10,000
210,690
12,175
6,010
3,535
32,890
230,500

28,750
29,380
2,895
3,260
4,480

230,500
1,020,500
698,500
478,500
177,500

11,290
31,815
53,920
5,350

181,750

4,170,500

$6,150 $28/000
113,220 316, 600
23, 690
7,205
34,135
13,410
30,840
3,675
244,240
13,795
28,750 1,020,500
64,070
64,070
568,355
21,325
617,665
10,640
29,775
16,525

608,175 | 1,731,155 1,545,480

$4,440
73,155
4,140
16,935
9,200
11.940
29', 380
11,290
52,030
25,565
72,500

$20,000
358,800
18,910
10,920
4,480
27,015
698,500
568,355
48,530

$1,685
17,185
1,550
6,240
5,610
10,785
2,895
31,815
21,325

112,965
23,520

68,430
6,930

310,575 1,891,995

$33,000
698,900
37,280
10,515
9,095
508,500
478,500
617,665
25,565
68,510

$1,995
34, 770
2,335
6,625
9,510
109,995
3,260
51,930
10,640
107,965

27,210

344,695

$15,000
465,440
15,480
2,040
1,195
7,390
177,500
16, 525
72,500
6,930
5,990

$7,875 $1,772,000
67,705 8,165,980
3,745 2,303,000
9,795
260,450
303,810
11,215
12,415 1,110,240
4,480 4,170,500
5,350 1,731,155
307,075
29,775
175,630
23.520
371,590
26,210
203,085

$772,065
4,513,055
1,092,430
1,019,125
3,168,030
2,666,990
178,490
601,295
1,545,480
1,889,695
2,552,400
806,675

785,990

202,085 20,874,515

20,805,730

5,670

174,450 2,514, 740

Returned
to.

w
d
IT1

fed

OO

INDEX.
Page.

Page.

Acceptances, distribution of, by sizes, maturities,
etc
423-424
Announcement by Board
374
Bill limiting use of words '' Federal" and '' reserve ". 373
Branch bank at Petrograd, Russia, permission
granted to National City Bank of New York to
open
372
Brokers' paper, suggestions for purchase of
375
Business conditions throughout the 12 Federal
Reserve districts
399-417
Checks, use of, in France
374
Circular regarding section 8 of Clayton Act
389-392
Clearing system, comments on
377
Commercial failures in June
377
Depositors in national banks, increase in number of.
376
Discount rates in effect
383
Discounts, distribution of
418-422
Dividends of Federal Reserve Banks
373
Earnings of Federal Reserve Banks
373
Earnings and expenses of Federal Reserve Banks,
six months ending June 30
384-388
Earnings on investments of Federal Reserve Banks. 434
"Federal" and "reserve," bill limiting use of
words
373
Federal Reserve Agents' accounts, statement of
429
Federal Reserve Bank statements
426-427
Federal Reserve notes, circulation of
428

Federal Reserve notes, interdistrict movement of..
435
Form for use in making applications under Kern
amendment to Clayton Act
391
Gold imports and exports
430-433
Gold settlement fund
380-383
Hearing of Wisconsin Banks
372
Informal rulings of the Board:
Membership of State banks and trust companies 393
Notes payable "on or before"
394
Clayton Act interpretations
394
Notes for farm implements
395
Cattle paper
395
Interdistrict movement of Federal Reserve notes.. 435
Law department:
Provisos to Clayton Act cumulative
396
Member bank acceptances
397
Member banks granted authority to accept up to 100
per cent
372
Meredith, E. T., class C director of Chicago Federal
Reserve Bank, resignation of
372
National-bank charters issued
379
National-bank deposits in the United States
376
Purchase of brokers' paper, suggestions for
375
Resources and liabilities of Federal Reserve Banks. 426-427
State banks admitted to system
372
Summary of business conditions
398
Work of Board
371, 372




O