Full text of Federal Reserve Bulletin : August 1920
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FEDERAL RESERVE
BULLETIN
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
, 1920
WASHINGTON
GOVERNMENT PRINTING OFFICE
1920
FEDERAL RESERVE BOARD.
W. P. G. HARDING, Governor.
EX OFFICIO MEMBERS.
EDMUND PLATT, Vice Governor.
DAVID F. HOUSTON,
Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS,
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
Comptroller of the Currency.
HENRY A. MOEHLENPAH.
WALTER S. LOGAN, General Counsel.
W. T. CHAPMAN, Secretary.
W. W. HOXTON, Executive Secretary.
R. G. EMERSON, Assistant Secretary.
H. PARKER WILLIS,
W. M. IMLAY, Fiscal Agent.
W. W. PADDOCK,
Chief, Division of ExaminationJ. E. CRANE,
Acting Director, Division of Foreign Exchange.
Director, Division of Analysis and Research.
M. JACOBSON, Statistician.
E. L. SMEAD,
Chief, Division of Reports and Statistics.
OFFICERS OF FEDERAL RESERVE BANKS.
Federal Reserve Bank
of-
Chairman.
Deputy governor.
Governor.
Cashier.
Boston. . . .
New York.
Frederic H. Curtiss... Chas. A. Moras...1
Pierre Jay
Benj. Strong, jr.
C. C. Bullen...
J. H. Case 2 ....
L. F. Sailer 3 ...
E. R. Kenzel..
G. L. Harrison.
Philadelphia.
Cleveland....
R. L. Austin.
D.C.Wills...
George W. Norris.
E. R. Fancher. . .
Richmond.
Caldwell Hardy.
George J. Seay.
Atlanta.
Chicago.
Joseph A. McCord.
Wm. A. Heath
M. B. Wellborn.
J. B. McDougal.
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Wm. McC. Martin.
JohnH. Rich
Asa E. Ramsay. . .
Wm. F. Ramsey. .
John Perrin
D. C. Biggs
R. A. Young
J. Z. Miller, jr. . .
R. L. Van Zandt.
J. U. Calkins
Wm. H. Hutt, jr
M. J. Fleming 4
Frank J. Zurlinden 4.
C. A. Peple
R. H. Broaddus 4
A. S. Johnstone
JohnS. Walden 4
L. C. Adelson
C. R. McKay 4
B.G. McCloud
0. M. Attebery
1
2
On leave of absence.
Acting governor.
3
Controller.
C. A. Worthington
Lynn P. Talley
Wm. A. Day
Ira Clerk5
C. H. Stewart5
< Assistant to governor.
W. Willett.
L. H. Hendricks.*
J. D. Higgins.3 8
Channing Rudd.
A. W. Gilbart.3
Leslie R. Rounds.*
J. W. Jones.3
W. A. Dyer.
H. G. Davis.
Geo. H. Keesee.
M. W. Bell.
S. B. Cramer.
J. W. White.
S. S. Cook.
J. W. Helm.
Sam R. Lawder.
W. N. Ambrose.
,
6
Assistant deputy governor.
MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS.
Federal Reserve Bank of-—
New York:
Buffalo branch
Cleveland:
Cincinnati branch
Pittsburgh branch
Baltimore branch
Atlanta:
New Orleans branch
Jacksonville branch
Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch
Manager.
Ray M. Gidney.
L. W. Manning.
Geo. De Camp.
Morton M. Prentis.
Marcus- Walker.
Geo. R. De Saussure.
A. E. Walker.
J. B. McNamara.
R. B. Locke.
W. P. Kincheloe.
J. J. Heflin.
A. F. Bailey.
Federal Reserve Bank of—
Manager.
Kansas City:
L. H. Earhart.
Omaha branch
C. A. Burkhardt.
Denver branch
Oklahoma City branch. C. E. Daniel.
Tialloa*
El Paso branch
Houston branch
W. C. Weiss.
E. F. Gossett.
San Francisco:
Los Angeles branch
Portland branch
C. J. Shepherd.
Frederick Greenwood
(acting).
Salt Lake City branch. R. B. Motherwell.
C. A. McLean (acting").
Seattle branch
W. L. Partner (acting).
Spokane branch
SUBSCRIPTION PRICE OF BULLETIN.
The FEDERAL RESERVE BULLETIN is the Board's medium of communication with
member banks of the Federal Reserve System and is the only official organ or periodical publication of the Board. It is printed in two editions, of which the first
contains the regular official announcements, the national review of business conditions and other general matter, and is distributed without charge to the member
banks of the Federal Reserve System. The second edition contains detailed analyses
of business conditions, special articles, review of foreign banking, and complete
statistics showing the condition of Federal Reserve Banks. For this second edition
the Board has fixed a subscription price of $4 per annum to cover the cost of paper
and printing. Single copies will be sold at 40 cents. Foreign postage should be added
when it will be required. Remittances should be made to the Federal Reserve
Board. Member banks desiring to have the BULLETIN supplied to their officers and
directors may have it sent to not less than 10 names at a subscription price of $2
per annum.
No complete sets of the BULLETIN for 1915, 1916, or 1917 are available.
in
TABLE OF CONTENTS.
Page.
Review of the month
;
Business, industry, and finance, July, 1920
The coal shortage
Employment conditions
Condition of wholesale trade
Terms of sale in the principal industries
Economic conditions in Brazil
Stock of money in the United States, 1914-1920
Earnings and expenses of the Federal Reserve Banks
Official:
State banks and trust companies admitted to system
Banks granted authority to accept up to 100 per cent of capital and surplus
Charters issued to national banks
Fiduciary powers granted to national banks
Rulings of the Federal Reserve Board
Law department
Miscellaneous:
July crop report
Commercial failures reported
Statistical:
Wholesale prices in the United States
Retail trade index
Foreign trade index
Wholesale prices abroad
International price index
Discount and interest rates prevailing in various centers
Physical volume of trade
Debits to individual account, June and July
Discount and open-market operations of the Federal Reserve Banks
Operations of the Federal Reserve clearing system
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account
Condition of member banks in selected cities
Imports and exports of gold and silver
Estimated stock of money in the United States
Resources of State banking institutions
Condition of leading foreign banks of issue
Discount rates approved by the Federal Reserve Board
Diagrams:
General stock of money in the United States, 1914-1920
Money held in Treasury and Federal Reserve Banks, also money held outside, 1917-1920
IV
769
783
789
791
795
797
813
824
828
833
833
833
834
835
835
832
833
•
836
839
841
842
850
852
853
863
867
874
875
880
882
888
890
891
893
890
827
827
FEDERAL RESERVE BULLETIN
VOL.
6
REVIEW OF THE MONTH.
Relatively slight activity in the money
market has been necessary on
T r e a s u r y fae pr a r ^ 0{ fae Government
nnance.
.
during the month ot July.
Redemption of certificates of indebtedness falling due up to July 15 has continued, but the
fiscal operations of the month have been really
little more than a continuation of those of the
last month of the past fiscal year. On July 21
Secretary Houston announced that subscriptions for the 5f per cent Treasury certificates
of indebtedness dated July 15, 1920, which had
previously been announced, and maturing
January 15, 1921, as well as the issue dated
July 15, 1920, and maturing March 15, 1921,
had been closed on Tuesday, July 20. Reports
received from the 12 Federal Reserve Banks
showed that the combined issue, which was for
$200,000,000, had been oversubscribed to the
extent of $1,061,500, allotments being as
follows:
New York
San Francisco
Philadelphia
Kansas City
Cleveland
St. Louis
Boston
Chicago
Atlanta
Richmond
Dallas
Minneapolis
Treasury
Total
Total subscriptions allotted.
$90, 391, 500
15, 000, 000
14, 250, 000
8, 005, 500
14,154, 500
6, 002, 500
12, 638, 500
18, 221, 500
3, 211, 000
3, 745, 000
1, 687, 500
1, 754, 000
12, 000, 000
201,061,500
July receipts on ordinary account amounted
to 5230,366,525, while disbursements on ordinary account were $306,501,839, a difference of
$76,135,314. Inasmuch as Government withdrawals from banks during the month have
been relatively light as compared with June,
the effect of Treasury operations upon the
No. 8
AUGUST, 1920.
banking situation has been distinctly less
influential than during the recent past.
The Secretary of the Treasury in a statement issued July 26 reviews the developments
in the Treasury situation which have taken
place during the past year. In sketching the
outcome of the 12 months' operations he says:
"On the basis of daily Treasury statements,
the total ordinary receipts for the fiscal year
ended June 30 amounted to $6,694,565,388.88,
and current ordinary disbursements amounted
to $6,766,444,461.09, leaving a net current
deficit of only $71,879,072.21 for the fiscal
year 1920, the first full fiscal year after hostilities ceased. After taking into account the
special deposit of the War Finance Corporation,
resulting from its redemption of United States
securities, the net ordinary disbursements for
the fiscal year 1920 were $6,403,343,841.21,
leaving an adjusted surplus of $291,221,547.67
for the fiscal year.
"The operations incident to the handling of
the maturities of Treasury certificates from
June 15 to July 15 have now been completed
and have resulted in further reductions in
both the gross debt and the floating debt of
the United States. The gross debt on June 30,
on the basis of daily Treasury statements,
amounted to $24,299,321,467.07, as against
$25,484,506,160.05 at the end of the previous
fiscal year on June 30, 1919, and $26,596,701,648.01 on August 31, 1919, when the gross
debt was at its peak. In other words, the
ross debt on June 30, 1920, had been reduced
y $2,297,380,180.94 from its peak on August
31, 1919, and by $1,185,184,692.98 from the
figure on June 30, 1919. On July 20, 1920, on
the basis of daily Treasury statements, the
gross debt amounted to $24,264,309,321.54,
showing a further reduction of about $35,000,000 after taking into account the $201,061,500
face amount of Treasury certificates issued
under date of July 15. The floating debt on
June 30 amounted to $2,485,552,500, as against
$3,267,878,500 on June 30, 1919, and $3,938,225,000 on August 31, 1919. On July 20, 1920,
the loan and tax certificates outstanding
amounted to $2,453,946,500, showing a further
f
769
770
FEDERAL RESERVE BULLETIN.
reduction of about $31,000,000 as the result of
the redemption of loan certificates since the
close of the fiscal year 1920 in the amount of
some $232,000,000 and the issue of loan and
tax certificates dated July 15 in the amount
of some $201,000,000.
" Further issues of Treasury certificates will
be offered as necessary from time to time to
provide for the current requirements of the
Grovernment and to meet maturities of Treasury
certificates now outstanding. The amounts of
these issues will depend in large measure upon
the extent of the burden imposed by the
transportation act of 1920, in connection with
the return of the railroads to private control,
including particularly the liability on the
guaranty, which is as yet unascertainable."
In speaking of the furtherance of the effort
to secure a wide distribution and retention of
Liberty bonds by private investors, Secretary
Houston on July 21 made acknowledgment of
action taken by the Montreal convention of the
American Federation of Labor. At that meeting it had been urged that members of labor
organizations continue holders of bonds at
present prices by way of sustaining the thrift
and savings campaign of the Government.
In the letter of July 21 already referred to
Secretary Houston said:
"Nowhere are Liberty bonds more widely
distributed than among the ranks of organized
labor. Both the Treasury Department and
the American Federation of Labor are desirous
of protecting the holders of these Government
obligations. They can protect those who hold
their bonds and buy more, but they can not
protect those who sell at present prices. But
if the principles adopted by your organization
are followed out by the Nation, all holders of
bonds will be protected, for the basic, intrinsic
value of the securities backed by the good faith
and total resources of the Nation is unchanged
and will remain unchanged."
The month of July has been, unmistakably,
a period of business and credit
Business and t r a n g i t i o n T l l i s s i t u a t i o n i s
credit outlook.
.
emphasized by the reports ot
Federal Reserve agents on business conditions,
of which a condensed summary is given in this
issue* The transition has been marked and
characteristic not only as regards industrial
developments themselves, but also as regards
credit. It has been particularly exemplified
AUGUST, 1020.
in the relationship between business and lending conditions. Notable among the month's
developments has been a tendency on the part
of commercial rates of interest to go to slightly
higher figures, notwithstanding the maintenance of the same rates of rediscount at
Federal Reserve institutions; the further development, although still upon a very moderate
scale, of unemployment in some lines of
business due to cancellation of orders and poor
transportation of fuel and materials; the
liquidation of stocks of commodities which had
been held upon a speculative basis; and the
gradual elimination from banks of paper
collateraled by such goods. In connection
with the last of these developments should be
noted a sustained tendency toward the payment and cancellation of paper collateraled by
Government war obligations, as well as by
corporate stocks and bonds. The pronounced
checking of speculation and the restriction of
operations in securities and stocks to a very
low level has been a decisive element in the
financial centers and particularly in New York.
Coupled with these conditions has come, according to general agreement, a definite if slight
increase in general efficiency and an equally
positive, though limited, curtailment of extravagant expenditure and unnecessary borrowing.
These factors, if maintained as an influence in
the general business and credit situation, will
mark the turn from the period of "peak"
inflation to a period of restoration of sounder
conditions. The difficulty in both the industrial and credit situation is still found in the
lack of available means of transportation which
will permit of the regular and steady movement
of goods to market and of fuel and materials
to points of manufacture and consumption.
According not only to reports made by Federal
Reserve agents but also those of other observers, there has been some improvement in transportation during the month and some relief
of the congestion which had been a notable
feature at the outset of the month, but this
improvement has been upon a relatively small
scale. Fuel reserves continue to be of the
most limited character and it is evident that
AUGUST, 1920.
much more energetic action will have to be
taken if industrial conditions are to be made
safe for the coming winter. This condition of
affairs has a very important bearing upon
the credit outlook because, of the fact that it
still remains true that large accumulations of
goods at producing or distributing points must
in great measure be carried by advances made
by banks. The distinct improvement in agricultural conditions which now promises a very
large return in many lines, tends to emphasize
this state of affairs because of the fact that considerable proportions of last year's staple crops
are still held over at points of production and
distribution. A further accumulation of goods,
such as is feared in some Federal Reserve
districts, would result not only in taxing the
carrying capacity of the warehouses and other
places of storage, but would also impose a
further strain of serious character upon the
credit resources of Federal Reserve Banks.
The months of June and July have been a
period of important changes in
anges o p r j c e s a s we\\ a s ^f mo dificaDF1C6S
tion of industrial conditions.
These price changes may be summed up as
declines in basic materials, notably wool,
leather, silk, and a variety of materials, accompanied at the same time by advances in foodstuffs. In the field of retail prices there have
been downward tendencies in such articles as
clothing, shoes, and other consumable staples,
although few or none in foods. The index
number of wholesale prices constructed for
the Board shows a decline for the month of
June of 6 points, now standing at 258. This
tendency has been paralleled by a similar
trend in British prices. Sauerbeck's index
number, made public on July 20, shows a decline of 4.3 points from the preceding month,
although even with this moderate reduction
the index number in question is more than 57
points ahead of the peak reached during the
war period. While there are some differences between the Sauerbeck number and that
of the Economist^the general tendency of the
two is parallel, both indicating a downward
drift. The main difference between the two is
771
FEDERAL RESERVE BULLETIN.
found in the field of textiles, where there has
been a greater decrease in some lines represented in the Economist number than in those
embodied in Sauerbeck's.
An idea of the extent to which staple raw
materials have fallen in the United States
during the past month is furnished by the
following compilation, in which some representative prices are presented for purposes of
comparison:
April.
Raw silk, Japanese, Filatures
Shinshu, No. 1, 13-15 (per
pound)
$13.60
Raw wool, Ohio, fine unwashed, delaine (per pound).
.95
Print cloths, 39 inches, 80 by
80, 4 yards per pound (per
yard)
.3300
Calfskins, 7-9 pounds (per
skin to tanners)
6.4375
Goatskins, Rio Hache (per
pound)
'.7375
May.
June.
July.
$11.35
$8.35
$7.40
.80
.70
.68
.3100
.2950
.2587
5.7500
4.0625
3.6812
.6650
.4750
.3917
The downward tendency of prices thus
referred to is not to be explained by reference
to any one cause or set of causes, but is the
outcome of a complex of factors. In wool the
termination of the period of Government
control in various parts of the world and the
steady marketing of the raw supply held by the
Government of the United States as the result
of war purchases has had an important effect.
Large stocks of leather and hides which had
accumulated during preceding months, coupled
with a falling off in consumption demand for
leather products directly resulting from the very
high retail prices which were being charged, are
currently regarded as primarily responsible for
the shrinkage of leather values. In silk, as is
well known, there had been extensive speculation, and large stocks of the staple had been
carried by oriental interests, with the result
that consumption both in the United States
and abroad was being quite materially curtailed.
The financial difficulties in Japan which developed during the spring of 1920 were in part
the outcome of heavy operations in raw silk,
and the cutting of silk prices to a point 50 per
cent below the values of last winter is to be
ascribed to the collapse of these speculative
operations, as well as to the influence of the
772
FEDERAL RESERVE BULLETIN.
withdrawal of bank credits in oriental countries
and to the decline of demand for silk by consumers both here and elsewhere.
It remains true that there is at the present
time a wide gap between the new level of raw
material values and the prevailing level of
retail prices. During the month it has been
pointed out by industrial leaders that the
high price of goods has been due only in part
to high costs of material and has in very large
degree been the outcome of high capital charges
and very great advances in the wages of labor.
For these reasons consumers have been discouraged from taking the view that shrinkage
in retail values was immediately to be expected as a result of reductions in the wholesale field. It is true, however, that the saving
afforded by manufacturers through lessened
cost of materials and increased efficiency of
labor must eventually be reflected in a downward movement of retail prices. For the
coming autumn and winter season it is likely,
however, that this downward movement will
be evident in comparatively small degree. Indeed, in many lines higher retail prices are
predicted, due to the fact that purchases for
the autumn and winter trade had already been
contracted for at the old level of values, the
changes in the price of materials at the present
time showing their effect not earlier than the
spring of 1921.
As had been noted in former issues, the
general manufacturing organiCourse of pro- zation of the country had
duction.
succeeded in enlarging its efficiency and its percentage of output in an unexpected way during the early spring of this
year. The following condensed table recapitulates some essential elements in the industrial
situation as shown by the Board's index numbers representing the physical volume of trade
for June:
AUGUST, 1920.
May, 1920.
Receipts of live stock at
15 western markets (in
thousands of head)
Receipts of grain at 17
interior centers (in
thousands of bushels).
Shipment of lumber reported by 3 associations (in millions of
feet)
Bituminous coal production (in thousands of
short tons)
Crude petroleum production (in thousands
of barrels)
Pig iron production (in
thousands of long tons)
Steel ingot production
(in thousands of long
tons)
Cotton consumption (in
thousands of bales)
Wool consumption (in
thousands of pounds).
June, 1920.
June, 1919.
Total.
Relative.
Total.
Relative.
Total.
Relative.
5,160
96.8
5,064
95.0
5,329
100
64,400
82.6
80,058
102.7
77,996
100
863
96.7
685
76.7
893
100
39,059
101.3
44,463
115.3
38,547
100
36,859
116.5
37,219
117.6
31,644
100
2,986
141.1
3,044
143.9
2,115
100
2,883
129.9
2,981
134.3
2,219
100
541
114.1
556
117.3
474
100
50,649
103.6
40,679
83.3
48,850
100
In reviewing the industrial situation at
present, however, special attention should be
given to the position of certain important
staple industries. In iron and steel, in spite of
the presence of a large volume of unfilled orders on the books of some concerns, shortage
of fuel and materials has tended to prevent a
maximum of output from being maintained.
In the woolen industry during the past month
temporary suspension of operation has been
announced, due to the fact that cancellations
of orders and uncertainty in the industrial outlook "made it undesirable to proceed, pending a
further development of the readjustment
process. There is difference of opinion about
the actual coal situation, but general agreement as to the fact that supplies of coal at
many important distributive points have been
very low. Important manufacturing establishments and public utilities have had difficulty in obtaining their current supplies in
some instances due to the fact that they were
working under low-price contracts of long
standing. The situation is in part attributed
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
to the increasing demand for coal, not only for
domestic use but also for export. The large
number of new mines that have been opened
within the recent past has necessarily required
an increased number of coal cars, while the
fact that production of such cars has not been
maintained during the past two or three years
has made the available supply less adequate
for all working mines. Activity of production
necessarily makes correspondingly heavy demands upon the available coal supply and
tends to create shortage. Up to the 1st of
July the output of bituminous coal for the year
had been 257,095,000 tons, as compared with
214,959,000 tons during the corresponding
period in 1919, while anthracite had been produced to the extent of 42,777,000 tons, as
compared with 39,392,000 tons for the first
half of 1919. Efforts to improve the effi.ciency of transportation have been vigorously
in progress during the past month and some
success has been obtained, but according to
current reports the movement of freight on
many lines is still much below normal. What
amounts to a practical embargo upon export
coal has also been established as a result of
priority and other orders which have given the
advantage to domestic consumers and have
made it difficult to obtain coal for foreign shipment. The result of these measures should in
the near future be to restore the activity of
manufacturing at those points where it has
been restricted in consequence of insufficient
fuel supply. Attainment of this result should
be further assisted in so far as transportation
improvement results in a better distribution of
raw materials.
Exactly how far the transportation situation
has changed may be better
Transportation u n d e r s t o o d f r o m a com parison
773
greater activities in both months than in the
corresponding period of 1919.
How far the lowered efficiency of transportation has been due to an unsatisfactory labor
situation can not be precisely stated. The
action of the Railway Labor Board in handing
down on July 20 a decision in the pending wage
adjustment cases may, it is hoped, bring about
a better condition of affairs. The substance
of the award is to grant an increase in wages
which for the United States as a whole is estimated at about $600,000,000 and which
amounts to an average advance of about 21
per cent upon the scale of wages previously
existing. This award represents, roughly, 55
to 60 per cent of the maximum amounts which
had been recommended by organizations of
the railway employees. If it should result in
improving the operating efficiency of the lines,
its effect will naturally be that of relieving
congestion and facilitating the more rapid
movement of freight to destination. Results
in this direction can not, however, be expected
before the lapse of perhaps another month.
Meanwhile there is undoubtedly a continuation of difficulty at shipping points which
calls for energetic action. According to Federal Reserve agents, the quantity of grain
which is being carried at primary markets is
much in excess of that which was in stock at
the corresponding period a year ago. The
great improvement in agricultural prospects
for the present summer and autumn is an
important factor in the maintenance of the
country's prosperity, but tends to render the
transportation problem even more difficult
than before.
The extent of the existing transportation congestion is difficult to measure statistically.
Data showing the acceleration or the retardation of specific commodity movements
situation.
*
. *.
from
month to month do not adequately
oi ton-mileage figures lor past
reflect
the seriousness of the situation bemonths. Preliminary estimates i n d i c a t e
cause they often fail to take account of
smaller activities in June than in May, but
774
FEDERAL RESERVE BULLETIN.
normal seasonal changes in receipts and shipments, as in the case of grain. Moreover, no
allowance can be made for goods that would be
in transit if there were any prospect of moving
them. This is especially true, for example, in
the lumbering regions of the Pacific coast and
the Northwest. Even though new orders have
been received, stocks are augmented, while
shipments fall to still lower percentages of output. In the Dallas district production figures
of the Southern Pine Association show a marked
curtailment in output, which is 65 per cent of
normal for the month of June, while shipments
are only 80 per cent of cut. Similarly, in the
San Francisco district, 122 mills of the West
Coast Lumbermen's Association have shipments 18.6 per cent below the cut, which in its
turn is 7.5 per cent less than normal.
When coal, lead, and zinc mines, for example,
are working at only 50 per cent capacity, or
are even closed entirely because of inability
to move their output, it throws no light on
the existing congestion to show that current
ore movements have slightly or even greatly
increased in amount.
The policy of Federal Reserve Banks in seeking to shift applications for acd comm
°dation from unessential
to essential branches of business has been further prosecuted during the
past month, but has been applied with a maximum of consideration for the maintenance of
productive activity in all parts of the country.
Governor Harding, in reply to an inquiry, has
made the following statement of the Board's
purposes in its application of the present rate
policy:
"The Federal Reserve Board," he says,
"deemed it its duty to exert its power in the
direction of curbing the expansion of credit
used for speculative or nonessential purposes
without interfering with maximum production
along essential lines. In the adjustment of
trade and industry to the new basis of essential
production suspension of operations and some
hardship from unemployment may result, but
in view of the serious shortage of goods in all
lines and the pressing demands of consumers the
AUGUST, 1920.
world over a readjustment should be effected
without undue delay and with a minimum of
friction and unrest."
Summarizing the outcome to the present
time, Governor Harding expresses the opinion
that as a result of the measures thus far adopted
"further expansion of bank credits has apparently been checked, though the volume of loans
and discounts of neither member banks nor
of Federal Reserve Banks has been materially
reduced."
The opinion that a turning of the tide of
expansion has occurred has likewise been expressed by Hon. A. B. Hepburn, of the Federal
Advisory Council, who, in a statement to the
press on July 16, indicated his belief that
there had been a decided shifting of credit from
unessential to essential lines and a more favorable banking position. " I do not look," said
Mr. Hepburn, "for any acute money stringency
in the fall. People are now looking to the
future, taking an account of stock, curtailing
their commitments, and exercising a more
wholesome, conservative judgment."
This analysis of the case is corroborated by
the views of others. The result in question is
being attained only in part through the direct
influence of higher rates of interest and discount and in part through the application of
judicious methods of limiting unessential or
unnecessary credits. In speaking of this phase
of the matter Governor Harding, in the communication already referred to, says that "the
Board has taken the position that it is not
sufficiently close to the actual day-to-day requirements of business to undertake to lay
down rules as to what loans are for essential
purposes and what loans are not. The Federal Reserve Banks in their dealings with member banks are better situated in this respect,
but ultimately the main responsibility of such
decisions must rest with the commercial banks
themselves, which in their dealings with customers are in a position to ascertain the purpose of each loan and to decide whether this
purpose is essential or not." This is the position which has been uniformly adhered to by
the Federal Reserve Board ever since the
AUGUST, 1920.
development of a necessity of restricting credit
during the war. At that time such restriction
of credit was accompanied by limitations upon
transportation and use of fuel and materials
which were determined upon a basis of war
necessity. The use of this method of selection or discrimination has long since passed by
with the closing of the war, and at present the
standard of essentiality is necessarily different from that which existed during the time
when war demands were at their height. As
pointed out in the letter already referred to,
the problem is one which can best be dealt
with by bankers who are themselves close to
the actual requirements of their customers.
Development of bank portfolios, both at
Federal Reserve Banks and
f
bannered!™ ° member banks during the month
of July, has on the whole indicated the application at least of a check to expansion, although not a definite decline in
accommodation. Two criteria may be cited
as indicative of the general drift in this direction, the first that of reserve ratios at the
several Federal Reserve Banks, the second
that of investment conditions at member banks.
The following brief compilation reviews the
course of the reserve ratio during the month of
July:
Ratio of total reserves to net deposit and Federal Reserve note
liabilities in 12 Federal Reserve Banks.
July
July
July
July
July
2
9
16
23
30
775
FEDERAL RESERVE BULLETIN.
42.8
43.1
43. 9
44. 4
44. 2
[In thousands of dollars.]
Loans (including redis- Rediscounts
Date.
and bills
Number counts) and payable
Net
with demand
of banks investments
Federal
deposits.
reporting. (including
Reserve
United States
securities).
July2
July9
July 16
Julv23
July 30
1920.
814
814
814
814
814
16,929
36,901
16,934
16,903
16,884
Banks.
2,056
2,051
1,990
1,953
1,972
11,486
11,461
11,552
11,416
11,388
The figures thus furnished show a distinct
upward movement in the reserve ratio at
Federal Reserve Banks, which has been progressively higher with each succeeding week in
the month, excepting for a minor reaction at
the close. By the side of this development
should be placed the fact indicated in the table
relating to member bank condition that there
has been a steady, although moderate, decline
in the rediscounts and bills payable with
Federal Reserve Banks. Together with advance in the reserve ratio there may be noted
a gradual decline in the gross amount of obligations payable to Federal Reserve Banks,
and while the reduction has been moderate, it
nevertheless seems to indicate a turning of the
tide away from inflated conditions. The situation is somewhat different when attention is
given to the item of loans and investments
carried by member banks on behalf of their
customers. This figure shows that the total
amount of advances made by the member
banks in selected cities is about holding its
own, while the same view of the situation is
confirmed by a study of the figures showing
net demand deposits.
Export and import figures for the month of
June, made available by the
Foreign trade Department of Commerce on
This change in ratios should be studied in
connection with the course of development during the past month in the portfolios of member
banks. The following table which contains financing.
^
data furnished in former issues provides an inJuly 24, show a reaction m exdication of the trend of the banking situation port trade of a kind which has long been prefor the country as a whole:
dicted. Whereas our "favorable balance of
776
FEDERAL RESERVE BULLETIN.
trade " for the month of May amounted to approximately $315,000,000, this balance for the
month of June fell to $78,000,000, while a
favorable balance for the 12 months ending
June, 1919, of about $4,136,000,000, was reduced for the 12 months ending June, 1920,
to $2,872,000,000. In considering the latter
figures it should be borne in mind that the 12
months ending June, 1920, include a part of the
time during which the effects of Government
advances to foreign countries were still being
felt. The substance of the figures may be presented in compact form in the following brief
table:
June—
1920
Imports:
Free of duty
Dutiable
1919
$277,000,000
276,000,000
$195,549,458
97,366,085
553,000,000
292,915,543
617,000,000
14,000,000
907,968,086
20,411,117
Total
631,000,000
928,379,203
Excess of exports
78,000,000
635,463,660
Total
Exports:
Domestic
Foreign
12 months ended June—
Increase.
1920
Imports:
Free of duty
Dutiable
Total
Exports:
Domestic
Foreign
Total
Excess of exports
$3,405,235, 628
1,833,510,952
1919
$2,230,222,808 $1,175,012,820
968,013,692
865,497,260
5,238,746,580
3,095,720,068
2,143,026,512
7,950,335,672
160,840,459
7,081,461,938
150,820,748
868,873,734
10,019,711
8, 111, 176,131
7,232,282,686
878,893,445
2,872,429,551
4,136,562,618
There are numerous factors which confirm
the belief that our excessive export balance is
now in process of being still further curtailed.
The very high prices which have prevailed in
the United States for many months and which
until recently have shown indication of advancing to still higher levels have undoubtedly
tended to discourage a good many foreign
buyers who would otherwise have sought to
supply themselves in this market but who have
AUGUST,
1920.
found it impossible to contend against the combined handicap furnished by the high domestic
prices and the increment resulting froin unfavorable exchange conditions. Shipping concerns testify that shortage of freight for export is
more pronounced than it has been for some time
past, and while this is in part due to embargoes
or what amounts to such upon coal and other
heavy freight, as the result of the transportation "tie-up," there is every reason to ascribe
it, in part at least, to the general competitive
conditions already referred to. In this same
connection, mention should be made of the
fact that, as money stringency has become
more pronounced and rates higher, there has
been an increasing indisposition on the part of
commercial banks to furnish financial facilities
designed to take care of the movement of goods
abroad. More conservative banking institutions engaged in the export trade have taken
pains to cover their foreign exchange commitments as rapidly as they were incurred, and
even in the face of the rather more stable conditions of exchange that prevailed during the
latter part of June and the first weeks in July,
they were disinclined to carry very large balances in foreign currency. Perhaps this indisposition to incur obligations on foreign exhange account has been as pronounced during
the recent past as at any time heretofore, if not
more so. On the other hand, banking institutions expressly devoting themselves to foreign
trade have found it difficult to continue the
extension of accommodation under as favorable
conditions as heretofore. The sale of their
acceptances—a resource upon which they have
necessarily relied in large part to carry on their
operations—has naturally been hampered by
the high rates for money, while they have found
in some cases the effort to offer foreign balances
as security unsatisfactory to local buyers of
their paper. Such attempts as have been made
on a small scale to place foreign securities in
the United States have been successful only
when a very high rate of interest was offered.
Of this situation a notable example has been
afforded in the case of the Swiss loan which
AUGUST, 1920.
was placed during the early part of July at a
market rate of 8 per cent.
Under the terms of the Phelan Act adopted
by Congress on April 13, 1920,
Application of J . .
? r A
progressive rates. P™™ion ^as made for the application of graduated rates of
rediscount, rising from a base rate to be established at the option of the board of directors
of a Federal Reserve Bank, according as the
applications for rediscount filed by member
banks exceeded a specified or base line to
which the normal or basic discount rate was
applicable. Since the adoption of the Phelan
Act the new plan has been put into effect by
four Federal Reserve Banks. The basic line
which has been adopted by the Atlanta, St.
Louis, and Kansas City banks is two and onehalf times a sum equal to 65 per cent of the
member bank's average reserve balance plus
its paid-in subscription to the capital stock of
the Federal Reserve Bank both calculated over
a fixed period either preceding or identical
with the period to which the basic line applies.
For the Dallas district, however, a basic discount line was adopted equal to the paid-in
capital and surplus of the member bank. Atlanta and St. Louis apply the normal rate, i. e.,
the generally effective rate to all offerings for
rediscount and apply a progressive " superrate " at the end of the reserve computation
period to the average borrowings in excess of
the basic line, while Kansas City and Dallas
impose the " super-rate" upon such part of
the current offering as may, together with outstanding borrowings, be in excess of the basic
line. As a scale of rates, all four banks have
adopted an increase of one-half of 1 per cent
for anything up to 25 per cent in excess of the
basic line, with 1 per cent for the second 25 per
cent excess, and so on upward. Exceptions to
this progressive rate plan were generally made
in case of member-bank collateral notes secured
by Government obligations, although some
variation in method of making exceptions has
been introduced in the four banks where the
plan has been in effect. As illustrative of the
working of the plan a concrete example may be
777
FEDERAL RESERVE BULLETIN
cited. A bank with a normal line of $100,000
and borrowings of $200,000 would be charged
an excess or super-rate of one-half of 1 per
cent on $25,000, 1 per cent on an equal amount,
1J per cent on a like amount, and 2 per cent
on the final $25,000. All paper under discount
on the date the progressive rates became effective was exempted from the application of the
super-rate, although counted as part of the
general credit structure in determining the scale
of super-rates applicable to new loans or to
renewals. The working of the plan is of considerable interest because of the fact that it has
not been applied in all districts, while there has
been difference of opinion as to the theoretical
advantages of it. The following table affords
a general view of the operation of this system
for the past two months:
Discounted and purchased bills held by groups of Federal
Reserve Banks.
Group 2.
Group 1.
G r o u p 3.
Total.
May28
June 4
June 11
June 18
Juno 25
July2
July 9
July 16
July 23
July 30
A
B
A
B
A
B
1,752
1,794
1,769
1,603
1,708
1,793
1,777
1,729
1,709
1,708
1,686
1,732
1,706
1,564
1,682
1,785
1,782
1,705
1,685
1,677
424
420
415
405
415
421
421
413
414
413
510
499
488
456
468
475
462
484
501
515
762
760
742
686
707
721
736
705
700
716
742
743
732
674
680
675
690
658
637
645
2,938
2,974
2,926
2,694
2,830
2,935
2,934
2,847
2,823
2,837
Group 1 shows totals for the Boston, New York, Chicago, and Minneapolis Federal Reserve Banks, all of which have raised their commercial discount rate to 7 per cent.
Group 2 shows totals for the Atlanta, St. Louis, Kansas City, and
Dallas Federal Reserve Banks, all of which have adopted a system of
progressive discount rates.
Group 3 shows totals for the remaining four banks, i. e., the Federal
Reserve Banks of Philadelphia, Cleveland, Richmond, and San Francisco, which have neither raised their discount rates during the more
recent period nor adopted a system of progressive discount rates.
Column A shows actual totals of discounted and purchased bills held.
Column B shows adjusted totals of discounted and purchased bills,
i. e., exclusive of bills discounted for or bought from other Federal
Reserve Banks, and including bills discounted for or bought from other
Federal Reserve Banks.
A noteworthy development of the past few
months whose results are only
American invest-just c o m i n g definitely to light
ment abroad.
P
i .
,,
•i •
is found in the rapid increase
of American investment abroad. This investment has been of special interest in connection
with the taking over of shares in German enterprises by American concerns. Notable
778.
FEDERAL RESERVE BULLETIN.
among such undertakings is the arrangement
concluded between New York steamship interests and the former Hamburg-American line,
purchases of a large block of stock in the
Vienna Kreditanstalt, such shares being held
by two well-known New York banking houses,
the establishment of a close working relationship between the electrical industry of the
United States and that of Germany, and the
introduction of somewhat similar arrangements
based upon mutual control between the tire
manufacturers of the United States and the
German rubber and tire-producing factories.
In a number of other lines, less significant,
although important, alliances have been concluded. Under these arrangements American
concerns supply capital which will be used for
the reorganization and rejuvenation of the
foreign enterprises, depleted as these have been
in their resources and opportunities as a result
of the war. Such arrangements have an important effect financially, inasmuch as they
undoubtedly result in transferring to the
United States a considerable portion of foreign
financing. Had not such relations been established, the foreign enterprises which had become affiliated to American concerns would
have had to supply themselves with raw material and current capital and would have been
obliged to finance such shipments. As things
stand, the obligations representing the financing may more easily be placed through the
American concerns which have assumed this
responsibility for, or control over, foreign
houses. This in a sense will convert a large
block of foreign financing into domestic
financing. To operations of this kind special
weight must be given in explaining the recent
unexpected stability of German currency.
There is, however, an easily reached limit in
the development of operations of this description. Such a limit is found in the fact that in
all foreign countries there is a disposition to
AUGUST., 1920.
avoid a situation in which control of an extensive kind will be exercised by outside concerns. There is no European country, least of
all Germany, in which an extensive invasion on
the part of American capital is likely to be
looked upon with favor. How far the present
movement of international purchase of securities and international control of industrial
enterprises is likely to go thus becomes distinctly conjectural, with some well-defined
limits clearly in sight. Before the present
movement toward the establishment of closer
relationships with Germany is completed, it is,
however, quite possible that steps will have
been taken for the purpose of reorganizing
German currency and banking relationships
in a way that will lay the foundation for a more
stable and satisfactory state of things.
During the month of July the foreign exchange market has been comJuly exchanges.
paratively inactive, the feature
of the first half of the month being a slightly
stronger movement in most of the European
currencies, while during the second half of the
period reaction was noted. The outstanding
event of the month in connection with foreign
exchange was the conference at Spa in which
the allied premiers placed before representatives
of the German Government various demands
with respect to the enforcement of the Treaty of
Versailles. In oriental exchange the chief interest has centered about the movement of the
price of silver, which early in July trended
downward and later moved in the opposite direction, eventually reaching a maximum for the
month of 95 cents. In the South American
field the principal event of importance has been
the break in Argentine exchange resulting from
the action of the Government of that country
in prohibiting the exportation of gold and terminating the arrangement whereby payments
were made in the United States through the
embassy of Argentina. The following compila-
AUGUST, 1920.
FEDERAL, RESERVE BULLETIN.
779
tion continues similar figures for preceding Apparently the effect of these purchases has
been to help the general market price of silver
months furnished in former issues:
by relieving the world market of some portion
Foreign exchange rates.
of the supply which would otherwise have had
July 10.
July 3.
June 26.
to be taken care of, and to this situation may
possibly be attributed the advance of about
High. Low. High. Low. High. Low.
5 cents in the price of silver per ounce which
has
occurred during the month. On the
3 04*
3.93*
3.96f
England
3.994 3.95|
3.95
8 18
8.55
8.30*
7.99
8.52
France
8.61
strength
of these Treasury purchases the pre5 89
Italy
6.18
6.18
6.03
6.21
6.05
16.40
16.20
16 40
Spain..
16.68
16.75 16.64
diction
is
now made in many quarters that a
42.10 41.50 41.90 41 .50 41.75 41.25
Argentina
China (Hongkong)... 75.75 72.75 75.50
73.75 74.00 72.00
greater
degree
of stability will be assured.
China (Shanghai)
105.00 99.00 105.50 103.00 104.00 103.00
Japan (Yokohama)... 51.25 51.25 51.25 51.25 51.375 51.25
Assuming
that
the Treasury Department is
2.59
2.62
Germany
2.66
2.65
2.74
2.65
18.02 17.95
Switzerland
18.21 18.15 18.15 18 08
under
obligation
to purchase in all some
Sweden (Stockholm). 21.93 21.80 22.08 21 90 22.15 22.00
25 35.375 35.25
Holland
35.937 35.625 35.50
270,000,000
ounces
of silver in order to make
8
Belgium
8.91
8.33
8.87
63
9.03
8.73
up the amount provided under the terms of the
July 24
July 17.
Pittman Act during the war, and assuming
further that the annual production in the
High.
High.
Low.
Low.
United States is about 60,000,000 ounces, it
would
appear that the average annual produc3.84f
3.94|
3.86|
England
8.285
8.44
8.22
France
tion
of
domestic silver mines for the coming
5.81
5.30
6.02
5.88
Italy
15.88
15.68
16.04
Spain
16.13
five
years
would find a market at the rate of $1
39.10
40.85
41.375
41.125
Argentina
72.00
74.00
74.50
China (Hongkong)
72.75
per
ounce.
This condition of affairs is by
100.50
104.00
104.50
102.00
China (Shanghai..
51.50
51.375
Japan (Yokohama)
51.375
51.375
some
regarded
as likely effectually to "stabi2.32
2.56
2.54
Germany
2.63
17.24
Switzerland
17.95
17.67
17.51
lize"
the
silver-mining
industry and to some
21.40
22.00
22.00
22.10
Sweden (Stockholm).
Holland
34.875
35.25
34.3125
34.875
extent
the
price
of
silver
over the period in
7.98
Belgium
8.715
9.03
question.
On July 5 there convened at Spa, Belgium, a
Contrary to what had been expected, there has
conference between the prebeen but little further movement of gold into the
The Spa confer- m i e r g o f t h e a U i e d n a t i o n s op _
United States. Some small shipments received ence.
posed to Germany during the
in the course of ordinary exchange operations
and aggregating only about $10,018,000 for recent war and representatives of the German
the month ending July 20 have represented ,the Government for the purpose of discussing the
net inward movement. It had been predicted conditions of enforcement of the peace treaty.
in not a few quarters that the exchange situa- As in the case of the former conference at
tion would require large shipments to the Hythe, England, at which, however, only the
United States for the purpose of providing a allied premiers were present, no definite
means of liquidating the maturities of the official announcement was made. The outcome
early autumn in connection with the Anglo- at Spa has apparently not as yet had much direct
French loan obligations. These expectations influence on the course of exchange, although
have been disappointed, largely, it is stated, this may be due to the fact that arrangements
because of the success that has been had in are still necessarily in a tentative condition.
arranging for the adjustment of the loan obli- Rumors of unpromising conditions on the
gations by other methods. There has been no Polish frontier tended to weaken % exchange
values.
official announcement on the subject.
Meantime the German fiscal and currency
In connection with silver, continued purchases have been in progress under the terms situation continues difficult, and the industrial
of the Pittman Act, the aggregate up to the conditions in Germany have scarcely imclose of July amounting to 9,639,000 ounces. proved. The total annual budget of Germany
780
FEDERAL RESERVE BULLETIN.
for the current year is 52,500,000,000 marks,
of which only 25,000,000,000 marks are expected to be provided by taxation. It would
seem that 10,000,000,000 marks were made
available from the preceding financial year
to meet part of the extraordinary expenditures. On the other hand, the issues of
the Reichsbank have shown a steady tendency to increase on account of the enormous
additions to the floating debt which are being
made in order to provide for the current needs of
the Government. These Reichsbank issues were
on June 15 officially stated at 50,809,000,000
marks, an increase since the 15th of January
last of not less than 15,125,000,000 marks.
The value of the mark in the United States has
continued to hold its own with an unexpected
degree of firmness and stability during the
past few weeks, being quoted during the month
of July most of the time above 2.30 cents per
mark. This, however, is in no small measure
due to investment and speculative conditions
which have resulted in the transfer of large
quantities of American capital to Germany.
It can not be taken as having more than an
indirect relationship to the general exchange
situation. The low value of the mark and the
increasing difficulty in equalizing the German
budget and in obtaining a more satisfactory
condition of affairs in the currency circulation
raises a serious problem with respect to the circumstances under which the indebtedness to
the Allies is actually to be paid, since, as now
appears clear, such payment must in the
last resort take the form of shipments of
goods. It is with these conditions in mind
that some eminent foreign authorities have
lately proposed plans contemplating the
institution of an elaborate and semipermanent system of barter designed to serve the
purpose of carrying on the trade between
Germany and the foreign countries.
During the month ending July 10 the net
inward movement of gold was
Gold and silver
$11,517,000, as compared with
movements.
a net inward movement of
$19,785,000 for the month ending June 10.
Net imports of gold since August 1, 1914, were
$708,584,000, as may be seen from the following exhibit:
AUGUST, 1920.
[In thousands of dollars.]
Imports.
Aug. 1 to Dec. 31,1914
Jan. 1 to Dec. 31,1915.
Jan. 1 to Dec. 31,1916.
Jan. 1 to Dec. 31,1917.
Jan. 1 to Dec. 31,1918.
Jan. 1 to Dec. 31,1919.
Jan. 1 to July 10,1920.
Total
Exports.
Excess of
imports
over
exports.
104,972
31,426
155.793
372,171
40,848
368,185
205,257
181,719
420,529
529,952
181,542
21,102
1291,651
i 71,171
1,278,652
708,584
23,
451,
685,
553,
61,
76,
134
1,987,236
» Excess of exports over imports.
Canada furnished $8,219,000, or about onethird, and England and Hongkong each
$6,600,000, of the $24,483,000 of gold imported
during the monthly period ending July 10;
Colombia, New Zealand, France, Mexico, and
Peru furnishing most of the remainder. Of
the gold exports, amounting to $12,966,000,
about three-fifths, or $7,568,000, was consigned to Japan, $2,223,000 to Hongkong, and
$1,200,000 to the Dutch East Indies, most of
the remainder going to Mexico, British India,
and Canada. Since the removal of the gold
embargo on June 9, 1919, total gold exports
have amounted to approximately $559,000,000.
Of this total, $146,555,000 was consigned to
Argentina, $110,445,000 to Japan, $65,211,000
to Hongkong, $55,396,000 to China, $39,661,000
to British India, $29,778,000 to Spain, and the
remainder principally to Uruguay; Mexico, the
Dutch East Indies, the Straits Settlements,
Canada, and Venezuela.
During the same monthly period the net
inward movement of silver was $2,235,000, as
compared with a net inward movement of
$1,409,000 for the month ending June 10.
Net exports of silver since August 1, 1914, were
$453,364,000, as may be seen from the following exhibit:
[In thousands of dollars.]
Aug. 1 to Dec. 31,1914
Jan. 1 to Dec. 31,1915.
Jan. 1 to Dec. 31,1916.
Jan. 1 to Dec. 31,1917.
Jan. 1 to Dec. 31,1918.
Jan. 1 to Dec. 31,1919.
Jan. 1 to July 10,1920.
Total
Imports.
Exports.
Excess of
exports
o\er
imports.
12,129
34.484
32', 263
53, 340
71,376
89,410
58,517
22,182
53,599
70,595
84,131
252,846
239,021
82,509
10,053
19,115
38.332
30; 791
181,470
149,611
23,992
351,519
804,883
453,364
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
Mexico furnished $4,002,000, or over threefifths, and Peru $1,071,000, of the $6,438,000
of silver imported during the monthly period
ending July 10, most of the remainder coming
from China, the Dutch East Indies, Chile, and
Canada. Of the silver exports, amounting to
$4,203,000, about three-fifths, or $2,507,000,
was consigned to China, and the remainder
principally to Hongkong, Canada, and Mexico.
Changes in the principal loan and investment
accounts of 814 reporting memThe banking situation.
b e r b a n k g b e t w e e n J u n e 18 a n d
July 16 reflect largely the character and volume of Treasury operations, including the issue on July 15 of over 200 millions
of loan and tax certificates, the redemption on
July 1 and 15 of the outstanding balances of
over 284 millions of loan certificates issued three
months before, besides the current withdrawals
of funds from depositary institutions during
the period under review. The effect of these
operations is seen in a reduction from 1,588
to 1,544 millions in the banks' United States
security holdings (most of the decrease being
shown under the head of Treasury certificates)
and in a decrease from 1,026 to about 1,000
millions in loans secured by United States
war obligations. The banks were also able
to reduce by about 66 millions their loans
secured by stocks and bonds. On the other
hand, all other loans and investments, including commercial loans and discounts
proper, show a further expansion of 116
millions. Total loans and investments, accordingly, show a decrease for the period of
20 millions. Accommodation of reporting
member banks, as shown on the books of the
Federal Reserve Banks, increased during the
period from 1,833 to 1,990 millions, or from
10.8 to 11.7 per cent of the reporting banks7
total loans and investments. For the New
York City banks an increase in this ratio from
9.7 to 12 per cent may be noted.
Principal changes in the condition of the
Federal Reserve Banks between June 25 and
July 23, include a reduction of 30.6 millions in
loans secured by United States war obligations,
as against an increase of 68.7 millions in other
781
discounts. Holdings of purchased acceptances,
owing to the growing investment demand for
this class of paper by country banks, savings
banks, and other corporations, declined 45.6
millions, while Treasury certificates on hand
fell off 37.5 millions, this reduction representing
in part the net amount of special temporary
certificates redeemed by the Treasury during
the period.
Interbank discounting shows but little change
in total volume during the period, the total of
discounts held on July 23 by the Boston, New
York, and Cleveland banks, 123.2 millions,
being slightly less than the June 25 total and
7.5 millions below the high figure reported on
July 2. The Chicago bank, which on June 25
reported an indorsees liability on rediscounted
paper of about 25 millions, no longer figures
among the list of rediscounting banks, which
on July 23 included the Federal Reserve Banks
of Richmond, Atlanta, St. Louis, Minneapolis,
Kansas City, and Dallas. It may also be noted
that four of these banks, viz, those at Atlanta,
St. Louis, Kansas City, and Dallas, which
during the entire period have been applying
progressive discount rates, show an increase of
36.5 millions in their rediscounts with other
Federal Reserve Banks, this increase more
than offsetting the increase in the discounts for
their member banks. During the period the
New York and Chicago banks sold considerable
amounts of acceptances out of their own portfolios, and on July 23 acceptance holdings of
the Boston, Philadelphia, Cleveland, and San
Francisco banks include 42.5 millions of bank
acceptances bought from the above two banks.
Government deposits at the Federal Reserve
Banks varied between 21.7 millions oil July 2
and 11.7 millions on July 16, while net deposits
fluctuated between 1,754.9 on July 2 and
1,685.6 millions on July 23, the latter figure
being 36.6 millions below the June 25 total.
An expansion by 64.2 millions in Federal
Reserve note circulation during the first two
weeks was followed by a considerable return
flow of notes during the latter two weeks, so
that the net increase in Federal Reserve note
circulation for the four weeks amounts to only
782
FEDEKAL KESERVE BULLETIN.
1.5 millions. The banks' gold reserves, in
consequence of further gold imports, show a
gain of 13.9 millions, while total cash reserves,
owing mainly to further silver deposits by the
Government, increased by 25.4 millions. After
reaching the low level of 42.8 per cent on July 2,
the banks7 reserve ratio assumed an upward
course, and on July 23 stood at 44.4 per cent,
a gain of 0.8 per cent over the June 25 level.
Under orders executed by the President,
dated July 23, 1920, Hon.
P e r s o n n e l W. P. G. Harding was redesigchanges.
nated as Governor of the Federal Reserve Board for the period ending
August 10, 1922, and Hon. Edmund Platt was
designated as Vice Governor of the Board for
AUGUST 1920.
the period July 23, 1920, to August 10, 1922.
Mr. Walter S. Logan has been appointed
General Counsel of the Federal Reserve Board,
succeeding Mr. George L. Harrison, who
resigned to become Deputy Governor of the
Federal Reserve Bank of New York.
The Oklahoma City branch of the Federal
Reserve Bank of Kansas City
J
Oklahoma City
branch opened.
Was
,
°Pened
-
for
,
.
busmess
o n
August 2, with Mr. C. E.
Daniel as manager. This branch was authorized by the Federal Reserve Board in January
of this year. The directors are as follows:
Mr. William Mee, Mr. E. K. Thurmond, Mr.
C. E. Daniel, Mr. Dorset Carter, and Mr. P. C.
Dings.
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
783
BUSINESS, INDUSTRY, AND FINANCE, JULY, 1920.
Uncertainty has been characteristic of the
month of July in the business field. Some
districts report that the price-cutting movement begun in May and continued through
June is slowing down, while in other districts
reduction of prices is reported still in progress.
Industrial activity in many lines has been
shortened in consequence of lowered demand,
cancellation of orders, and general readjustment. In some districts, however, production
continues upon old orders which are still on
the books despite the fact that new business
has fallen off. In the agricultural regions improved crop conditions and the development
of a more confident tone in business are reported to have brought about a turn distinctly for the better. Speculation in commodities is, in many parts of the country,
reported to have been greatly reduced, and in
some practically eliminated. There is a general feeling that extravagant buying is at least
less extreme and dangerous than it was some
time ago, while labor in many parts of the
country is reported as increasing in efficiency
and a better spirit of cooperation exists between employer and employee. From the
credit standpoint there is general expression of
the belief that unessential demands have been
reduced, and that even where there has been
no lessening in the volume of loans the advances that are being currently made are in a
much greater proportion to those which grow out
of bona fide commercial and agricultural necessities than at any time for many months past.
Transportation continues to be, perhaps, the
least satisfactory phase of the month's development, and while there has been some improvement in certain sections of the country
it is still true that there is great congestion,
and that in consequence of it an undue and
unnecessarily severe strain has been brought to
bear upon credit for the purpose of making
possible the carrying of goods which would
otherwise have gone to market and would have
been liquidated.
Probably the most hopeful element in the
outlook during the month has been the continued improvement in crop prospects in general, and the special improvement seen in
certain important agricultural lines. District
No. 9 (Minneapolis) reports both winter and
spring wheat in a healthy condition, with the
prospect of a yield considerably above normal
and an indicated yield of 186,000,000 bushels
of spring wheat, 7,500,000 bushels of winter
wheat, and 273,500,000 bushels of oats. District No. 10 (Kansas City) estimates a combined crop of winter and spring wheat of
260,000,000 bushels, with oats at 185,000,000
bushels and corn at 400,000,000 bushels. In
the Middle West generally the crop output is
improving and in many sections corn " never
looked better." Wheat and oats also hold out
excellent prospects. District No. 8 (St. Louis)
reports wheat low in quantity but high in
quality, corn in favorable condition, oats bearing out optimistic estimates, and hay the most
satisfactory ever raised in the region. Cotton
is improving and labor conditions better than
expected. The combined condition of all crops
in the district as reported by the Department
of Agriculture is 95.8 per cent. On the Pacific
coast spring wheat is now estimated at about
50,000,000 bushels, or 10,000,000 bushels more
than 1919. The special local crops, such as
beans, sugar beets, and others, are particularly
promising, but the rice crop has received serious
injury. Favorable weather during the past
month has considerably improved the condition of deciduous fruits in the Northwest.
Oranges will be considerably lower than last
year; lemons about the same. The price of
vegetable oils has declined considerably.
In live stock, conditions appear to be exceptionally good the country over. District
No. 10 (Kansas City) reports excellent pasturing conditions, but states that prospects for
any material increase in the supply of animals
during the autumn and winter are not encouraging because of the length of time required
to build up the industry after the inroads
suffered during the war. District No. 11
(Dallas) reports excellent range conditions,
with stock making satisfactory progress practically throughout the district and prices materially higher at the close of June. In other
parts of the country the live-stock situation is
also encouraging. Receipts of cattle at 15
primary markets during June were 1,290,265
head, corresponding to an index number of 128,
as compared with 1,209,656 head during May
and 1,122,782 head during June, 1919, the
respective index numbers being 120 and 111.
Receipts of hogs amounted to 2,746,390 head
784
FEDERAL RESERVE BULLETIN.
during June, corresponding to an index number oi 125, as compared with 3,128,249 head
during May and 3,061,838 head during June,
1919, the respective index numbers being 142
and 139. Receipts of sheep for June were
1,006,528 head, as compared with 796,160 head
during May and 1,116,003 head during June,
1919, the respective index numbers being 74,
58, and 82. In district No. 10 (Kansas City)
the movement of live stock to the markets in
June was less than in May and less than in
June of last year, but trade in cattle was more
encouraging to shippers than in any previous
month of this year. Purchases of cattle by
packers during June were smaller than in May
or in June of last year, but prices have improved in most branches of the business, except
sheep. In district No. 11 (Dallas) there was
a heavy movement of cattle and hogs to market
during June, figures in some lines reaching
record proportions. Prices at Fort Worth
registered a sharp recovery during June and
this tended to enlarge subsequent shipments,
the influx of animals weakening the market so
that by the opening of July much of the gain
recorded had been lost. The hog market,
however, reached the highest point since last
November. Gross receipts both of cattle and
calves were larger than in May or than in
June, 1919, wnile hogs and sheep fell off as
compared with both preceding periods.
The movement of grain has been retarded
by the car-shortage situation. In district
No. #9 (Minneapolis), however, there was an
improvement of about one-fourth in the
number of cars for grain and flour forwarded
as compared with the month of May, and the
number of cars received was about the same.
The very moderate improvement over May
was the result of strenuous efforts to secure
empty grain cars by virtue of the priority
orders. Wheat receipts at Minneapolis during
June show a falling off of 3 per cent from the
May figures, and receipts of corn show an
increase of 119 per cent. The movement of
wheat and corn during the present crop year
commencing September 1, 1919, has been substantially the same as during the preceding
crop year, but the movement of the other
grains is about 43 per cent of the movement of
the previous year. Price declines were noted
in Minneapolis during June for grain and flour,
with the exception of oats and barley, which
showed slight increases.
The wool and woolen outlook has been of
special importance during the past month.
In raw wool the inactivity which has been
characteristic of the past six weeks con-
AUGUST, 1920.
tinues and the market has become entirely a
buyers' market. The raw wools are in numerous instances being quoted at 30 per cent
below the level of last January in district No. 3
(Philadelphia). In district No. 1 (Boston)
dealers in raw materials are placing practically no orders and such wool as is going into
the market is being received on a consignment
basis. " I t is still felt that with more wool in
the world than was ever before known prices
have not yet reached bottom." Goods returned to the mills together with cancellations
are estimated at $100,000,000. An encouraging feature in the situation is the willingness
of wool dealers to extend longer time and to
accept cancellations of orders. In the woolen
and worsted goods industry yarn spinners are
having but few inquiries for their product,
while for finished textiles conditions are
equally discouraging. In district No. 3 (Philadelphia) "there is no demand for the product
and the closing of plants is general; while some
manufacturers feel that activity will be resumed in the early fall, others have no hope
for a decided improvement in conditions until
aftor the presidential election." Nevertheless,
it is believed that "when business is resumed,
manufacturing conditions should be much
more favorable than those prevailing during
the first six months of the year. The raw
material supply is plentiful and lower in price,
and labor conditions show signs of real improvement." Collections in the industry generally are slowing up. The strain, however,
has on the whole been well borne by the industry.
In cotton goods there has been a reduction
of. activity. In the Massachusetts cottonmill region demand continues light and many
mills report supplies of raw cotton sufficient
to last until next year. The better crop
prospects in the South have reduced any
anxiety that was felt concerning prospective
scarcity. Prices are about 50 per cent more
than in 1914 for the best grades. In district
No. 3 (Philadelphia) little or no interest is
shown by cotton yarn interests in the raw
staple, while manufacturers are placing few
orders for yarns. Curtailment of production
is prevalent. Prices for cotton products have
been steadily declining and are now on a price
level equal to that of last autumn. In New
Bedford (Mass.) mills have on hand sufficient
cotton to run until the latter part of August.
There has been a softening in the yarn market,
and in Fall River orders are not coming in
freely. In Lowell mills are still running on
full time. Some houses in different parts of
AUGUST, 1920.
FEDERAL, RESERVE BULLETIN.
the country have made commitments for fall
goods at prices higher than prevailed in the
autumn of 1919, while others are refusing to
place orders freely. The chances seem to
favor a still further reduction of activity in
the industry. In small wares conditions have
not much changed during the past month;
prices are about the same, collections are
slower, and volume of buying is slowing up.
Predictions are made that prices of cotton
small wares will be higher this fall than last
and higher this coming spring than the spring
just past. Some concerns, however, have
begun cutting prices. According to reports
received from 29 mills belonging to the Association of Knit Goods Manufacturers, cancellations during the month have exceeded new
orders for the same period, the former amounting to 25,599 dozen, against 18,609 dozen.
Production during the month was 590,664
dozen, and shipments 175,682 dozen.
The past month has seen but little improvement in the depressed situation existing in
leather and shoes a month earlier. Shoe
manufacturers are not placing many orders
with leather dealers. July is usually a dull
period in any case, but the dullness began
earlier and is lasting longer this year. A great
curtailment of operations both in the manufacture of leather and in that of shoes is noted in
New England. Manufacturers, however, on
the whole, anticipate a brisk autumn business
due to belated orders, and they also look for a
greater demand for shoes of grades other than
the finest. Export shipments are believed
likely to fall off. In district No. 3 (Philadelphia) curtailment which exists in the Massachusetts region likewise prevails. There is
conflicting opinion throughout the trade as to
the outlook, some believing that a sudden
autumn demand will spring up, others that
retailers are sufficiently well stocked to 'c carry
on" for a good while to come. Manufacturing
conditions in the shoe industry are fairly satisfactory. In the Middle West "shoe manufacturers have been marking time," and output
is only 30 per cent to 40 per cent of that of a
year ago, but conditions are considered better
than in the East. Retailers' stocks are depleted. In the Virginia shoe-producing district
manufacturers are not getting their usual orders.
Cancellations are still an important factor.
In district No. 8 (St. Louis) the shoe industry is
now, however, swinging to a more certain basis.
Manufacturers and distributers are showing
increase in volume and value of business.
785
Cancellations have decreased, raw materials are
more abundant, and labor is ample. Collections vary a good deal.
The serious condition in which the iron and
steel industry is now placed as the result of
railroad congestion and shortage of raw material and fuel is illustrated by the statement
made by the Cleveland district that "traffic
conditions i/} the iron and steel industry during
the past r*onth have reached a more acute
stage and have become a matter of constant
struggle to keep plants in operation and finished material moving." The piling up of
unshipped product in mill and furnace yards
has continued, and there is also a large tonnage
of semifinished material which is stacked up m
work yards. It is estimated that 2,000,000
tons of iron and steel are tied up in the hands
of the producers throughout the country. In
district No. 4 (Cleveland) there have been few
cancellations of unshipped products, but many
mills are regulating their operations entirely in
accordance with the ability of the buyer to
furnish transportation. Thousands of motor
trucks have been put into service hauling material from mills to points where cars are available
or even to consumers' plants. Crude material
production in that district has kept up quite
well, the restriction of output applying most
severely to the finishing operations. In district
No. 3 (Philadelphia) the transportation situation has so thoroughly tied up the iron and
steel industry that the entire situation centers
on the question of getting movement of products. While many plants are running at 100
per cent of capacity, a continued lack of cars
will force a reduction, possibly by two-thirds
at the end of another six weeks. Pig iron
continues in active demand, but it is impossible to procure coke in any quantity. If
demand were to be taken as a criterion of the
outlook, manufacturers would think it excellent, but their stocks of material and fuel have
been so seriously depleted that the shipping
prospect is very questionable. In the Birmingham district (district No. 6, Atlanta)
transportation difficulties are slightly improved, but apprehension still exists as to the
supply of raw material. The greater number of
sales are in small lots and domestic business is
being given practically sole attention. Consumption of pig iron is again showing improvement. Confidence is expressed that the pigiron market will be firm for several years to
come and that export business will be substantial. Production during June was 3,043,540
786
FEDERAL RESERVE BULLETIN.
tons, as compared with 2,985,682 tons during
May and 2,114,863 tons during June, 1919, the
respective index numbers being 131, 129, and
91. The unfilled orders of the United States
Steel Corporation at the close of June were
10,978,817 tons, as compared with 10,940,466
tons at the close of May, the index number
for both months being 208.
The coal outlook is closely connected with
the entire manufacturing situation, but particularly with iron and steel prospects. In
district No. 3 (Philadelphia) the car supply is
still inadequate, the general situation is discouraging, and both domestic consumers and
plants face a serious situation. The output in
.Pennsylvania and West Virginia is 50 per cent
of normal, while in Ohio, Indiana, and Illinois
it is still smaller. Exports of coal which have
been mentioned as one cause of the present
difficulty are an inadequate explanation, the
real source of trouble being insufficient production in relation to demana. Our output for
the nation at large is now about 9,000,000 tons
of coal per week, but current demands show a
need for 11,000,000 tons. Prices have been
advanced. In the Birmingham district (district No. 6, Atlanta) coal production is still
lagging, strikes at domestic mines being partly
responsible. There is also an undercurrent of
unrest among the coal miners in Pennsylvania,
with local labor troubles. In district No. 4
(Cleveland) the movement of coal is unsatisfactory, shipments to the Northwest up to
July 1 being more than 5,000,000 tons below
the corresponding figure a year ago, and there
has been little increase during July. Coke
shortage is widespread, and the high price of
coke has been an important factor affecting the
activities of many iron and steel plants. Spot
coke has been selling from $18 to $20 at the
ovens. Production of bituminous coal during
June was 44,462,500 tons, corresponding to an
index number of 120, as compared with
39,059,000 tons during May and 38,547,000
tons during June, 1919, the respective index
numbers being 105 and 104. The production
of anthracite coal for June amounted to
7,754,000 tons, compared with 7,6*39,000 tons
during May and 7,251,000 tons during June,
1919.
More active petroleum exploitation is gradually bringing up the production of crude oil.
Pipe-line runs in Oklahoma and Kansas are
now beginning to exceed shipments, and reserve
stocks are getting back to something like
normal. This may be partly due to inability
of refiners to get tank cars, but the output
AUGUST, 1920.
itself is increasing. June was the best month
of the year in crude-oil production. In district
No. 10 (Kansas City) the output for that month
was worth over $40,000,000, and new wells
completed numbered 1,136. In district No. 11
(Dallas) June operations, however, showed a
"slump." There were 169 less completions
than in May, but the total production, about
11,500,000 barrels, was only about 250,000
below May. In June 650 wells were completed
in the eleventh district. In district No. 12
(San Francisco) the June production was
slightly less than in May, being 273,000 barrels
per day, while shipments exceeded production,
stored stocks declining 120,000 barrels. There
is a shortage of gasoline, and buyers have
raised prices for crude oil.
Metal mining conditions during the month
have not been uniform. In district No. 10
(Kansas City) the half-year period ending
June 30 shows an increase in the value of lead
and zinc shipments over 1919, in spite of
adverse productive conditions. Shipments of
zinc ores declined during June, and there was
a tendency to decline both in price and volume
of shipments of zinc. Metal mining in Colorado
has suffered from a shortage of labor. Little
new prospecting is in progress.
One notable feature of the business situation
during the month has been a change in labor
conditions. An important factor in this connection has been the development of unemployment in various parts of the country. This
unemployment has been apparently chiefly due
to three factors. Where poor transportation
prevented deliveries of fuel and raw materials
some plants have been obliged to curtail operations and thereby reduce opportunities for
emplovment pending better conditions; in other
manufacturing districts the shutting down of
mills as a result of cancellation of orders and
lack of demand has also thrown considerable
forces of men out of work; elsewhere, inability
to obtain capital for construction and consequent abandonment or suspension of undertakings that had been contemplated have produced a certain amount of unemployment,
with some shifting of workers from one occupation to another. An effect of the changed labor
situation which has been the subject of quite
general comment in the various Federal Reserve districts is an increase in the efficiency
of labor. One of the largest producing companies in district No. 4 (Cleveland) reports the
" greatest four months in our history of pounds
produced per man." In district No. 1 (Boston) "labor is less insistent in its demands,"
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
and during the first half of July only ten new
strikes were sported to the Massachusetts
department of labor, but two of these involving any considerable number of men. During
the latter part of June and the first two weeks
of July there was a marked decrease in the
demand for factory help. The Boston Public
Employment Office reports a surplus of machinists, mechanics, and general factory workers. Retrenchment in Government manufacturing operations has released some labor.
Unskilled labor is also more plentiful than
heretofore. District No. 6 (Atlanta) reports
that all parts of the district are seriously short
of farm hands, but for the country as a whole
the farm labor supply is reported as more
adequate. In district No. 5 (Richmond) there
is considerable sporadic unemployment, but
this is believed to be due largely to irregular
transportation. In the extreme southern part
of the country a better supply of agricultural
labor has resulted from the slackening of industrial production. In New York there has
been a distinct, though not large, decrease in
employment, and this is more noticeable than
usual at this season in the clothing trades.
The labor difficulties at the port of New York
have been reduced. Generally speaking, conditions are more stable than they were several
months ago. Local shortage of unskilled labor
due to the scarcity of immigrant hands is
observable. There is less complaint than usual
of labor conditions on the Pacific coast, district
No. 12 (San Francisco) reporting "no strikes or
labor disturbances of any importance in this
district." A notable event of the month has
been the decision of the Railway Wage Adjustment Board, which has resulted in awarding a
wage increase to railway workers estimated to
aggregate $600,000,000, and presumed to represent an average increase of 21 per cent or over
for railway employees as a whole, although the
increase granted has been greatest in the lower
paid grades of employment.
There appears to be no difference of opinion
concerning the causes that are responsible for
the difficulties that hamper building operations. The hindrances are summed up under
the all-inclusive heads of high prices of structural materials and heavy labor costs; transportation troubles that make the securing of
supplies problematical; and inability to obtain
funds for financing contemplated projects,
especially residential structures. It is true
that, although all these factors are operative,
reports from certain districts are inclined to
stress some one factor while minimizing the
importance of others. The situation in the
787
West and Southwest appears to be much more
favorable than in other parts of the country,
districts No. 11 (Dallas) and No. 12 (San
Francisco) both reporting increased activity
in the month of June as compared with May.
District No. 1 (Boston) emphasizes the shortage of lumber and other structural materials
resulting from congested traffic conditions, and
predicts that prices will remain high, probably
into the spring of 1921. However, the total
value of building permits in 13 principal cities
outside Boston showed an increase of 47.1 per
cent in amount for the first six months of 1920,
as compared with the same period in 1919,
although the actual number of permits declined from 3,614 to 3,440. District No. 2
(New York) thinks that the principal deterrent
to the execution of housing programs is scarcity
of mortgage money, the New York situation
being made worse by the fact that industrial
projects have secured the limited amount of
labor and materials available. District No. 4
(Cleveland), although stating that there has
been some improvement in securing raw
materials, especially cement, during the last
two weeks, through the use of lake vessels,
says that building operations are very low for
the season and the outlook for the fall is
uncertain. In district No. 5 (Richmond) no
improvement is noted—a decrease in value of
permits issued as compared with May is
recorded. As for building materials, it becomes increasingly difficult to secure them, and
a number of lumber mills have shut down
because of inability to make deliveries, while
cement, crushed stone, steel, brick, etc., are
practically impossible of acquisition. Cessation of construction in Richmond is threatened
unless the local situation is relieved. In district No. 6 (Atlanta), on the other hand, there
has been an increase in the value of permits in
some of the large cities such as Atlanta,
Augusta, Savannah, and Mobile. A marked
drop in the total volume of building permits in
New Orleans was no doubt the result of the
local carpenters' strike, of which mention has
been made elsewhere. In district No. 8 (St.
Louis), as a result of better weather and improvement in transportation, work already
begun has been resumed or continued, but new
projects are few. There is no improvement
in the housing situation. Labor troubles have
also been experienced. Both in the Minneapolis and the Kansas City districts the June
reports show a reduction in building permits
by number and value as compared with May.
In district No. 11 (Dallas), on the other hand,
improvement has occurred in June, an increase
788
FEDERAL RESERVE BULLETIN.
of 15 per cent in total valuations over the
month of May being noted, although the total
is 16 per cent below the record for June a year
ago. For the first six months of the year the
1920 valuations exceeded those of 1919 by 147
per cent. Similarly in district No. 12 (San
Francisco) building is active, permits issued in
19 cities showing valuation increases of 7.7
per cent as compared with May and 63.3 per
cent as compared with June a year ago. For
the six-month period an increase of 107.17
per cent was recorded.
Financially, the developments of the month
show improvement. District No. 2 (New
York) reports that "the tremendous expansion
in loans and discounts which took place last
year has been very largely checked" and that
in the New York district it "has been wholly
checked." Reports of the Comptroller of the
Currency show that up to May 4 some increase
in loans was still occurring in the country
banks, but at a lessened rate than previously.
Speculative activity has also subsided. The
number of shares sold on the New York Stock
Exchange has declined in the past few months
to not much more than a quarter of the average
activity of last autumn, while bank clearings
in New York City have declined about 25 per
cent in district No. 7 (Chicago), while commercial paper commands the highest rate in years,
collections are generally good, and speculation
not only in stocks and commodities but also in
farm lands has been checked, at least temporarily. The activity in banking turnovers is
on the decline as compared with June, although
larger than in 1919. Borrowing at the banks
AUGUST^ 1920.
continues in large proportions and there is no
prospect of relief from high rates. In the
South there has been some success in eliminating loans on United States obligations,
while other loans and investments show a
slight increase up to July 23, and this tendency
is apparently continuing. Money rates continue very high. In the principal manufacturing districts there has been no marked
change in the credit situation, and any surplus
credit at one point is immediately absorbed by
demand at some other point. Large stocks in
the hands of merchants and manufacturers
have combined with the difficult money
market to force many realizing sales. Collections are still good. In New England loans
secured by stocks and bonds have decreased
materially, about one-half of the decrease
being in paper secured by corporate bonds and
stocks. Borrowings from the Federal Reserve
Banks show a decline. The total turnover as
shown by charges against deposit accounts is
about the same as during the preceding month.
Investment securities show a fairly consistent
level, though perhaps with a slightly downward
tendency. The bill market in New York and
other financial centers has been quite active,
with good demand for prime bills. Rates have
changed but little in commercial paper, but
have had a somewhat stronger tendency. Call
money rates have been tolerably stable around
8 per cent. The reserve ratio of the Federal
Reserve Banks has tended on the whole to
reach a more satisfactory figure, the average
for the four report periods ending with July 23
being 43.6 per cent.
AUGUST,, 1920.
FEDERAL RESERVE BULLETIN.
789
SPECIAL REPORTS ON BUSINESS CONDITIONS.
THE COAL SHORTAGE.
Statements concerning the seriousness of the
coal shortage are somewhat conflicting. Reports from district No. 2 (New York) and district No. 4 (Cleveland) are rather optimistic,
both stating that there has been an accelerated
carrying movement. But it is evident that
production as well as distribution falls far short
of needs, and in nonproducing regions, such as
district No. 1 (Boston) and district No. 9 (Minneapolis), prospects for speedy betterment are
poor.
The chief hindrance to increased output has
obviously been lack of coal cars, although a
few strikes of slight importance have been
noted in the reports as slowing down production. The strikes which are just assuming
serious importance in district No. 7 (Chicago)
can hardly have made their influence felt as
yet.
District No. 1 (Boston) emphasizes the persistence of transportation troubles, which have
resulted not only in a shortage of coal but of
other raw materials upon which the industries
of New England depend for their existence.
District No. 2 (New York) stresses the fact
that the movement of coal has been greater
during the first half of this year than it was
during the same period a year ago. This fact
does not, however, mitigate the seriousness of
the actual shortage. It merely shows that abnormally heavy consumptive demands have
been the cause of the existing fuel crisis.
The New York report says: "Freight movement on the leading railroads in this district
has steadily improved during the past month
and most of the roads report increases from
week to week in the loaded freight-car movement on their various lines. The freight congestion which continued for a number of weeks
after the April strike had lost its force has been
entirely cleared away on all but one road.
Nevertheless, every road now is handling its
freight on the license system, because the volume of freight offered has often been beyond
the physical capacity of the roads.
"Particularly noteworthy is the increase this
year in the movement of coal. All the larger
carriers of coal report an increased movement
of coal from the mines this year and there has
been a gradual weekly increase in the past two
months in the volume of coal carried. One
large carrier of anthracite, for instance, moved
5 per cent more coal in the first two weeks of
July than during the same period last year.
Two leading carriers of bituminous report increases for June of this year over June of 1919
of 7.2 per cent and 17.8 per cent, respectively.
These indications are confirmed by the statistics
of the United States Geological Survey, which
show an increase of 19.6 per cent in the amount
of coal produced and moved in the first six
months of this year as compared with the corresponding period a year ago."
Nevertheless, in view of depleted stocks and
present unsatisfactory conditions at the mines,
the outlook is an anxious one, as the report from
district No. 3 (Philadelphia) indicates.
"The output in Pennsylvania and West
Virginia is 50 per cent of normal, and in Ohio,
Indiana, and Illinois it is still lower. Retailers
are reported to be limiting their buying to supplies shipped on contract, with the result that
low stocks are general and the possibility of a
domestic fuel shortage increases. The tonnage
going to the Northwest is in unsatisfactory
volume, and it is a question whether enough
will be shipped to that region to supply the
domestic consumers and the industrial needs
of the district.
"The matter of distribution of the coal
mined will assume a greater importance as the
summer months go by, for it is generally conceded now that even with the best efforts in
effecting good car supply all serious danger
facing next winter has not been averted and a
proper allotment of such coal as will be available is of the utmost importance. Producers
are not now'free to ship their product to places
where, in some cases, it is most needed, as they
are bound by contract and must ship pro rata
on each contract, irrespective of the public
advantage to be gained by supplying certain
consumers.
"Three of the larger and well-known coal
companies have advanced their prices for stove
and chestnut, mine basis, and are charging
$7.65 to $7.90, while some of the independent
concerns average about 75 cents higher. The
market holds strong for steam sizes of anthracite, influenced by the bituminous scarcity,
and is expected to remain so through the fall.
"With reference to labor, there is still an
undercurrent of unrest among the coal miners
of Pennsylvania. It is reported that 10 col-
790
FEDERAL RESERVE BULLETIN.
lieries in this district, having a yearly output of
200,000 tons of coal and employing 8,500 men
and boys, are idle as the result of a strike
inaugurated by the miners because the company refused to abolish the contract system by
which contractors, or 'pushers/ are given all
the richest places to work and that the ordinary
miners get what is left, many of them being
unable to earn fair wages. Although one of
the miners' demands now being considered by
the Anthracite Mine Commission is the abolition of the contract system, the strikers refuse
to lay their case before that body.
"If some radical change for the better does
not soon take place, the coal situation for next
winter looks very grave. It is hoped that the
railroads will be able to devise some means
whereby the channels of transportation can be
cleared in order to be able to move coal more
quickly/'
District No. 4 (Cleveland) notes an improvement in the coal situation, although conceding
the probability that the shortage in the Northwest can not be made good.
"The Interstate Commerce Commission's
priority order governing the use of coal cars
for use other than for coal purposes has resulted in a distinct improvement in the coal
situation, although complete mine operation
is not yet possible. Manufacturers are making
every effort to accumulate coal for next winter's operations, as the spring of 1920 found reserve stocks of coal almost depleted by reason
of transportation difficulties and the miners'
strike during the past winter. While the
original order was effective for 30 days, it has
been extended for a similar period, which
should be reflected in a still further improvement.
"Coke production is being stimulated by the
record high prices obtaining—quotations being
as high as $18.50 for Connellsville foundry
coke.
"That there will be a shortage of coal in the
Northwest is pretty certain, as the movement
up to July 1 was over 5,000,000 tons less than it
was last year for the same period, and the loss
will be greater on August 1, as there was not
much increase in shipments in July. That
means that the movement from now on will
have to be more than doubled in order to reach
last season's total, and even then the supply
would be short, as the requirements will be
greater than they were in 1919. It is up to the
mine operators and the railroads to get the
coal forward, as there is plenty of dock and
vessel capacity to handle the business."
AUGUST, 1920.
The report from district No. 5 (Richmond)
is by no means optimistic.
"The coal situation is causing much worry
throughout the entire country. It would seem
from all information coming to us that it is a
transportation problem almost entirely, and
that there will be little improvement until
traffic conditions are bettered. Car shortage,
railroad strikes, embargoes—all these operate
to keep down production. We have a report
from a mine capable of producing more than
1,200 tons a day, but during June this mine
was able to work less than 10 days and in May
only lOf days. Another mine belonging to the
same company and capable of producing approximately 800 tons per working day was
able to work only 69 hours in June. The mines
can not operate unless they can secure cars to
haul away their product, both because they do
not have storage space for the coal and because
they can not finance their operations without
prompt collections."
District No. 6 (Atlanta) says that "the coke
output is a little better the second week of July
than previously; the coal shortage is noted at
one or two places where coke ovens are supplied. The coal production in Atlanta is still
lagging, strikes at domestic mines and two or
three commercial iron company mines playing
havoc."
In district No. 7 (Chicago) "the fuel problem
is causing considerable apprehension. While
heretofore manufacturing plants and consumers
of steam coal have been able to obtain sufficient coal from time to time to cover their requirements, the situation has changed, and
there now is active competition between manufacturers for the coal available, with a resultant
upward tendency in prices. Few, if any, plants
have been able to secure a sufficient surplus of
coal to protect them against delays due to
interruptions of transportation during the winter months. None of the railroads has been
able to accumulate the usual amount of storage
coal, and most of them have no storage coal
whatever.
"Unless this situation is relieved before cold
weather sets in, the fuel shortage is likely to
prove a serious handicap to manufacturing.
The coal production last year, it will be recalled,
was the smallest of any year since 1915, and the
present year started with the storage bins
empty and about one-half of the usual amount
of coal on the docks on Lake Superior and Lake
Michigan. These dock supplies were exhausted
before navigation opened. The movement of
coal on the Lakes to Superior and Michigan
, 1920.
FEDERAL RESERVE BULLETIN.
docks up to the end of June was 3,620,000 tons,
compared with 8,800,000 tons for the same
period in 1919 and 7,270,000 tons in 1918.
"The scarcity of low sulphur coal, usually
obtained from eastern Kentucky, western
Pennsylvania, and West Virginia, is retarding
the manufacture of steel in this district. The
movement of this coal has been hindered by
the car situation. Inadequate transportation,
whether due to car shortage, insufficient motive power, or labor' shortage, is still playing
an important part in the general situation and
has an adverse influence at a time when the
country is woefully underproduced in many
lines of manufacture. There is still a shortage
of raw materials, which seriously delays the
finished product."
The Minneapolis report brings additional
evidence to support the view that the extreme
shortage in the Northwest is likely to persist.
"The problem of securing adequate fuel supplies for the northwestern States is more dependent upon the condition of lake transportation than ever before, owing to difficulties in
rail transportation. The receipts of coal at
Duluth and Superior Harbor during the month
of June, 1920, were 911,211 short tons, as compared with 455,806 short tons in May, 1920,
or an increase over the month of May of practically 100 per cent. The total coal receipts
between the opening of navigation and the end
of June, 1920, were 1,388,017 tons, as compared
with 3,781,772 tons on the same date in 1919.
The receipts for the current year are therefore
36.7 per cent of one year ago.
"A closer analysis of the total receipts for
the current year to date as compared with one
year ago shows that the receipts of soft coal
nave been 29.1 per cent and hard coal 92.2
per cent. If the improvement shown in June
over May continues, there will probably be no
difficulty in securing enough anthracite coal
for residence heating purposes, but the problem of securing bituminous coal for industrial
usage is serious. It must be borne in mind
that the docks were clean at the opening of
this navigation year, whereas a year ago substantial stocks were on hand. The monthly
improvement will need, therefore, to be constantly accelerated, and steps are being taken
to secure an improvement in the delivery of
coal to the ports on Lake Erie, the lack of
which has been the chief cause for the small
receipts of this year compared with last/ 7
District No. 10 (Kansas City) unequivocally
;ates that "coal production seems from all
states
791
reports to have hit a snag, or at least the output shows no perceptible sign of improvement.
The biggest factor, it is shown by reports from
all fields, is the transportation disability. At
the mines of this district there was some slight
improvement in the supply of cars, but as a
matter of fact the car situation is acute in Missouri, Kansas, and Oklahoma and is proving
a serious hindrance to the production movement of coal. Loss on account of labor disturbances is now very low, though there are
some scattered strikes here and there. And
with the shortage of production and distribution there is no prospect of an easement of
prices."
EMPLOYMENT CONDITIONS.
As was to be expected, following the extensive shutdowns and curtailment of operations
in the New England district, unemployment
among certain classes of labor is now reported
from that section. In other districts also unemployment has developed here and there in
those industries, primarily textiles and boots
and shoes, which have felt the effect of cancellations. As a result of special circumstances,
such as labor troubles or, more usually, traffic
congestion, particularly severe in district No.
4 (Cleveland), some surplus of labor is also
reported. The enforced unemployment in mining regions, likewise a result of the transportation problem, has been referred to elsewhere.
It is significant that the lack of farm labor
is not so pressing a problem in all parts of the
country as it was feared it would be, although
district No. 6 (Atlanta) and district No. 7
(Chicago) report a persistent shortage, while
district No. 12 (San Francisco) notes the importation of Mexican laborers to take care of
the cotton crop.
District No. 1 (Boston) reports as follows:
"During the first fortnight of July only 10
new strikes were reported to the Massachusetts
department of labor, but two of which involved any considerable number of workers,
indicating that conditions are more nearly
normal in this respect than they have been
for many months. During the latter part of
June and the first two weeks of July a very
marked decrease in the demand for factory
help has occurred, and while such a lull is
normally expected at this season, it is more
pronounced at the present time than during
the past three or four years; the Boston public
employment office reports a surplus of machin-
792
FEDEKAL RESERVE BULLETIN.
ists, mechanics, clerks, and general factory
workers looking for employment.
"At the end of the Government fiscal year,
June 30, Congress having determined to retrench in certain lines of war expenditures as
a part of the program to get the country back
upon a peace basis, the Watertown Arsenal
was forced to release over 2,000 men, a large
number of them skilled machinists; there has
continued, however, an active demand for
shipyard workers at the Fore River (Quincy,
Mass.) plant of the Bethlehem Ship Building
Co., and the current business of the machine
shops, tool and hardware making industries of
Massachusetts and Connecticut continues on
such scales of activity that they have been
able to absorb a good part of the supply of
skilled labor released from Government work.
There has been only nominal closing of factories and mills in the Bridgeport section, and
where there has been short time or complete
shutdowns it has been for the purpose of
taking inventory or because of unsatisfactory
shipping conditions. In New Britain, manufacturing largely builders' hardware, factories
are running full time, with some shortage of
labor, and labor conditions generally satisfactory, with no strikes and none threatened.
The situation in Hartford is also reported as
satisfactory, except for a shortage of unskilled
labor and unwillingness of some workmen to
turn out a full week's work, piecework earnings being high. In New Hampshire numerous
woolen, worsted, and shoe factories ha vebeen on
short-time schedules, and some which have remained on full time will be obliged to curtail
unless new orders are received soon. Unskilled
labor is more plentiful in Rhode Island.
"Difficulties in procuring cans and tin plate,
due to transportation delays, have caused a
shutdown of American sardine canneries along
the Maine coast, affecting, it is said, 10,000
men and women employed in these plants.
In the textile and shoe and leather centers
factories have been altogether closed down or
are running on short time, with thousands of
operatives out of employment or living on
reduced earnings even if at higher wage rates;
purchasing power in these communities is
therefore beginning to show signs of diminishing, though no serious inroads have yet apparently been made on savings deposits nor
are Liberty bonds being generally sacrificed
by small holders."
In district No. 2 (New York) "there was a
distinct though not large decrease in employ-
AUGUST, 1920.
ment during the past month. The closing of
some mills of a large woolen company threw a
number out of employment, and the dullness
in textile and leather industries resulted in
other factories reducing their working forces.
Unemployment in the clothing trades is still
much greater than is usual at this season of the
year, and the hope of a settlement of the strike
of fur makers in New York City has not been
realized. The shoe industry showed an increase of employment during June, but this
was due to the settlement of a strike at Rochester. The Pennsylvania Railroad's announcement on July 19 that it would lay off about
12,000 of its employees in the eastern region
will apply to several thousand in this district.
"A strike of 1,000 longshoremen engaged in
the deep-sea trade lasted only one day, but the
strike of longshoremen and lightermen in the
coastwise trade continues. There have been
several minor labor disturbances, but generally
conditions are more stable than they were several months ago. There are frequent reports
that labor is more efficient, that the increase in
unemployment has made some think greater
efforts were necessary to hold their jobs.
"There is a surplus of untrained male office
help, due in part to the number of students
seeking employment during vacation; but there
are still local shortages of unskilled hands,
caused to some extent by the scarcity of immigrant labor, and opportunity for employment for
4,000or more is reported in the Syracuse district.
"In spite of the prevailing conditions, the
average weekly earnings during June of factory
workers in this State increased. The June
average, as reported to the New York State
Industrial Commission, was $28.77, an increase
of 32 cents over May. During the past year
the average increase was 28 per cent, ranging
from 21 to 36 per cent, while in the six years
from June, 1914, to June, 1920, the average
increase was 127 per cent, ranging from 96 per
cent to 153 per cent.
"Few large changes in weekly earnings occurred from May to June this year, but numerous slight increases were reported. The largest
gain was $3.27 in the cotton-goods industry,
due to a general increase of 15 per cent in wage
rates, and earnings in the iron and steel industry reached the record average of $43.12.
There was a decrease of $3.15 in the earnings of
fur workers, and slight decreases in other industries where increased activity resulted in the
hiring of a number of lower-paid workers."
AUGUST., 1920.
FEDERAL RESERVE BULLETIN.
In district No. 3 (Philadelphia) there is considerable unemployment in the knit-goods industry, while strikes have closed down some
carpet and rug mills. On the other hand, there
is a shortage of unskilled labor in certain lines,
such as pottery.
In district No. 4 (Cleveland) "unemployment
is becoming more common, and a marked increase in the efficiency of labor is observed.
One of the largest producing companies in this
district reports that 'we have had the greatest
four months in our history of pounds produced
per man/ In the city of Akron alone from
12,000 to 15,000 men have been laid off. Akron
warehouses are full of automobile tubes and
casings which can not reach the markets."
District No. 5 (Richmond) states that " glass
manufacturers report difficulty in securing sufficient laborers, and a large manufacturer of
steel products complains that present-day
labor is too much inclined to float from job to
job. Inability of coal-mining companies to
run full time, due to car shortage, appears to
be causing considerable unrest among the
miners; the men employed in the few mines
which are able to run more nearly at capacity
seem to be much better contented than those
working in mines which can market only
enough coal to keep running a few days each
month. It would seem from numerous reports received that many laborers are now
being, or soon will be, laid off or forced to work
only three or four days each week because of
inability of manufacturers to secure raw materials or to get finished products to market.
Several letters state that if the transportation
system of the country be made to function
properly there will be full-time work for everyone, and the increased production will reduce
general prices sufficiently to remove most of
labor's complaints."
In district No. 6 (Atlanta) the labor shortage continues in the rural districts, while extensive strikes are reported from New Orleans.
1<
There appears/' it is said, " to be no relief from
the shortage of farm labor which has existed
from the beginning of the war. Reports continue to indicate that all parts of the district
are seriously short of farm hands, and this will
result in smaller crops than would otherwise
be produced. Abandonment of some cotton
acreage is predicted, and the shortage seems to
be general throughout the district.
"One Mississippi city reports public improvements are being held up indefinitely
because of inability to obtain the necessary
labor.
793
"After a month's duration the carpenters'
strike in New Orleans was ended the last of
June, and building has been resumed with renewed zest in an effort to make up for the time
lost. The first of July, however, brought a
strike of street-car men for an 83 per cent increase and a signed contract. This demand
has receded to a 54 per cent increase, which has
not been granted. Cars are being operated
with considerable regularity under the existing conditions by forces recruited from other
cities and some local men.
"The metal workers' strike at New Orleans
since May 18 continues with renewed force and
some violence. The Metal Trade Association
has offered 90 cents an hour, but workers will
accept nothing less than their original demand
of $1. Several machinery companies have
been obliged to sublet contracts to other
cities, especially orders for sugar machinery in
Cuba, where it must be installed and tested in
time for the beginning of the sugar season
in December.
"The coastwise longshoremen's strike, also
in New Orleans, continues, but is not so severely felt owing to the declaration of open
shop by some steamship companies, and in this
way a comparatively full working force has
been recruited."
District No. 7 (Chicago) likewise emphasizes the lack of farm labor.
"The absorption of labor by the automobile
industry and by other lines of endeavor offering abnormally profitable and excessively high
wages has seriously hampered the ability of
producers of other commodities to profitably
maintain their production schedules. Thousands of farms over the Middle West are idle
for this reason."
In district No. 8 (St. Louis), on the contrary,
"so far as can be learned there is no lack of
labor, skilled or unskilled. In certain instances plant operation has been curtailed and
there have been temporary shutdowns, the latter being due, however, to inability to obtain
raw materials or fuel. This district has had
no indefinite suspensions, as in the case of
textile plants in the East.
"The predicted record shortage of labor for
harvest and general agricultural operations
this season has not been verified in anything
like the magnitude suggested. On the contrary, where wheat has been harvested and
other crops garnered there has in general been
ample hands for handling the work. In only
a relatively few localities have farmers suffered
from lack of help. In industrial and general
794
FEDERAL RESERVE BULLETIN.
lines labor is also reported more plentiful.
Actual unemployment in this district is negligible, Federal and State commissioners reporting that idleness coming under their observation thus far is voluntary or due to strikes.
Closing down of or curtailment at eastern
plants has resulted in a drift of surplus workers
in this direction which largely relieved existing
deficiencies. Wages remain about stationary as
compared with a month ago, except in segregated
instances where advances are reported. There
have been minor strikes in the district, the
most serious of which embrace the building
trades in St. Louis. Officials of labor unions
report a growing tendency toward thrift and
saving among their members. To the south
agricultural labor is less abundant than elsewhere in the district. Employment agencies
find no improvement in the supply of domestic
help, and lack of this variety of labor is
acute
in the smaller towns and rural districts.77
District No. 10 (Kansas City) reports
" cessation of operations in the zinc and lead
mining regions, although some of the released
labor apparently has found occupation elsewhere. The last week of the month was
marked by a complete closing down of the
entire mining district, only two mines operating in the entire Oklahoma field. This action
was brought about by the realization of the
inability to ship ores, the difficulty of obtaining
labor, which was rapidly deserting the mines
for the harvest fields, the desire to curtail production in order to stabilize the market and
eliminate the huge stock of surplus ores existing
in the fields. The shutdown is scheduled for
two weeks, no mines intending starting up
earlier than the 12th of July. This is the most
complete shutdown in the history of the industry, and coming coincident with the holiday
season of Independence Day it makes it less
harmful for the unemployed than would otherwise have resulted.
"The metal-mining conditions in Colorado
have been marked during the past month by a
considerable shortage of labor in practically
all the mining districts of the State. It is particularly acute in Cripple Creek, and in connection with the other difficulties of the gold
producers will probably result in a very much
decreased production of gold for the year. A
few new operations are reported from various
parts of the State, but the larger mines are
finding it difficult to keep up production on
account of the impossibility of obtaining a
AUGUST, 1920.
sufficient number of men. There is very little
prospecting going on, and consequently not
much chance of anything new being found
this season.
"The reports all tend to show a marked improvement in the harvest labor supply this
season as compared with the difficulties experienced last year. This is said to be due to
many reasons. One of the most important
was increased efficiency of Federal, State, and
city employment agencies and of civic bodies
in sending able-bodied men to the harvest fields.
In Oklahoma a 'Save the grain committee/
with N. R. Graham as chairman, did very
effective work toward solving the harvest labor
problem by enlisting for this purpose the cooperation of former Liberty loan chairmen and
workers in every county in that State. Hundreds of men employed in the mines in Missouri, Oklahoma, and Kansas helped in the
wheat harvest. No trouble was experienced
in Kansas on account of shortage of harvest
hands, except in the northwestern part of the
State; but the release of men from the harvest
in the southern and central sections of the
State early in July eased up the situation.
Another big factor in the solution of the
harvest labor problem was a closer cooperation of the country town people and the
farmers by which other activities were suspended temporarily in many communities in
order that the wheat might be taken care
of."
District No. 11 (Dallas) reports an increase
in the labor supply and says: "Labor conditions have been gradually improving, according
to reports received. The slackening in construction work and various other industrial
activities has had a tendency to stimulate
competition for employment, resulting in a
greater efficiency as well as supply of labor."
In district No. 12 (San Francisco) "there
are at the moment no strikes or labor disturbances of any importance, although in some
sections it is reported that there is a tendency
for radical propaganda to increase.
"With the exception of the cotton-growing
regions in southern California and Arizona, the
supply of labor about equals the demand.
Cotton growers are importing Mexican labor
for use during the picking season, which will
be returned to Mexico at the close of the
season. This procedure will apparently insure
sufficient labor to take care of the crop as it
matures."
AUGUST,
CONDITION OP WHOLESALE TRADE IN JUNE.
Percentage of increase (or decrease) in net sales in June, 1920,
as compared with the preceding month.
District.
! !
No. 4
No. 6
No. 7
No. 10
No. 11
No. 12
P.ct.
P.ct.
P.ct.
P.ct.
-5.2
-4.7
- 7.1
- 5.1
+21.2
+ 4.0
-22.1
-24.0
-14.0
District.
No. 4
No. 6
No. 7
No. 10
No. 11
No. 12
11
-6.0
-0.8
20
-10.8
14
f
P.ct.
-9.0
+ 1.0
P.ct.
-3.8
-16.0
P.ct.
District.
DISTRICT N O . 6
+25.0
1
P.ct.
+47.8
+27.4
+35.1
+48.0
+ 4.0
+ 0.0
P.ct.
+11.5
-18.7
+31.4
P.ct.
+37.2
+42.8
-32.0
+22.3
+16.0
+31.9
- 5.9
P.ct.
+53.4
P.ct.
P.ct.
P.ct.
+31.0
+52.0
+ 6.3
-2.0
+ 8.7
+50.0
P.ct.
+10.2
-3.0
14
District.
No.
No.
No.
No.
No.
No.
4....
6....
7....
10
11
12...
DISTRICT N O . 4
immediate wants, and that while prices are
not now advancing generally there is no particular point of weakness. The weight of
opinion is that prices will decline rather than
advance.
Grocery dealers report nearly 50 per cent
increase in net sales, a considerable part of
which is said by some to have been represented
by large sales of sugar. The tendency is
toward cautious purchasing on the part of
both wholesalers and retailers. Buying of
canned goods, notwithstanding" high prices, is
said to average up to that of former years.
Dealers are practically a unit in declaring that
price concessions can not be made in their line.
Collections are reported as especially good.
Sales of drugs show a substantial increase,
and the tendency seems to be to lower prices.
P.ct.
Percentage of increase (or decrease) in net sales in June, 1920,
as compared with June, 1919.
No. 4
No. 6
No. 7
No. 10
No. 11
No. 12
795
FEDERAL RESERVE BULLETIN.
1920.
+27.1
(CLEVELAND).
13
(ATLANTA).
There appears to have been a strengthening
of the determination on the part of the public
generally to delay buying until further declines in prices take place. This is reflected
in the fact that the volume of sales by wholesale firms during the month of June is appreciably below the figures for May, and in some
instances even below the sales for June of
last year.
Wholesale grocery firms report their customers are buying cautiously for immediate
delivery, with the expectation of lower prices at
an early date. There is fear that canned
goods will be scarce and high, but the trend
of prices generally is downward.
Wholesale dry goods merchants are of the
opinion that manufacturers are making abnormally large profits, that prices are too high
to allow retailers any profit, and many are
making only necessary purchases, believing
that merchandise will decline in price before
the fall months. There was a general decrease
in volume of sales by wholesale hardware firms.
The opinion appears to be that although prices
have reached the peak, there is no immediate
prospect of decline in any appreciable amount.
Wholesale shoe companies report that as high
as 25 per cent of orders for fall delivery have
been canceled on account of some decline in
prices of leather and because of some unfavorable local crop reports. Retailers expect
declines in prices, but wholesale firms appear
to doubt any early reductions.
Wholesale trade continues to show substantial gains over the volume of trade during the
early months last year, as indicated by reports
from dealers.
Dry goods dealers predict lower prices except
in such merchandise as has been oversold and
DISTRICT NO. 10 (KANSAS CITY).
in which production is backward.
While the wholesale trade in dry goods is
Wholesale hardware dealers report that purchases are confined largely to goods needed for quiet, the June reports show an increase of
796
FEDERAL RESERVE BULLETIN.
advance orders for fall shipments. One house
puts the increase at 100 per cent over June,
1919, but mentions as a fact that the amount
of advance orders increased mainly on account
of advanced prices. Production is reported
as increasing, with a downward trend of prices.
Both wholesalers and retailers are buying stocks
cautiously.
In the wholesale furniture trade the combined reports for four leading houses in this
district snow June sales averaged 3.8 per cent
less than in May and 6.3 per cent more than
in June of last year. Goods are coming in
more freely at some centers, but are still scarce
at others. While it is felt that prices have
reached their highest peak, there are no declines in sight.
Drug wholesalers are reported to be buying
heavily on account of slow freight deliveries,
while retailers are buying liberally. At present prices are advancing more than they are
declining.
The three wholesale grocery firms that reported said that retailers were buying cautiously on account of a downward tendency of
prices. Unfilled orders were not large.
DISTRICT NO. 11 (DALLAS).
Wholesalers in this district report that retail
merchants continued their previous policy of
cautious buying during the month of June.
Immediate needs of the trade seemed to
dominate most transactions, although in some
lines renewed interest in "futures" began to
be manifested toward the end of the month.
Net sales for the month of June, as compared
with the preceding month, showed losses in
various lines ranging from 6 per cent to 24
per cent, although gains were reported by
dealers in groceries and automobile supplies.
As compared with orders booked in June,
1919, the past month's reports show an increase
in all lines except furniture and dry goods.
The higher price levels of the present, however,
must be considered in measuring the physical
turnover in June, 1919, and June, 1920, by
the dollar volume of sales.
A feature of interest in the June wholesale
reports is the evidence they afford of heavy
accumulations of stocks. Both as compared
AUGUST,, lyno
with stocks a year ago and those on hand at
the end of May, 1920, a marked increase is
shown. This situation seems to reflect a conviction on the part of the wholesalers, based
largely on the favorable crop outlook in this
district, that despite financial restrictions and
price resistance there will be a brisk trade this
fall in all lines of business. In fact, many of
them are confidently predicting this in their
reports to the monthly review.
Many complaints are being voiced by wholesale houses on the subject of the transportation service. The slowness and uncertainty
of deliveries greatly handicapped operations
in June, according to advices from reporting
firms. With the approach of the crop-moving
season it is feared that the situation will
become still more acute, and retailers are being
advised to anticipate, as far as possible, their
merchandise needs for the period in which the
roads will be heavily engaged in moving the
products of the farm.
DISTRICT NO. 12 (SAN FRANCISCO).
Both retail and wholesale trade activity as
reported by representative stores in this district was smaller during June than during
May, although larger than during June, 1919.
Sales by 71 representative wholesale firms
were 15.6 per cent smaller by value during
June than during May, and 11.7 per cent greater
during June, 1920, than during June, 1919.
Approximately 37 per cent of the increases over
June of 1919 were due to price increases. Total
sales of reporting wholesale firms averaged by
value 38.1 per cent greater during the first six
months of 1920 than during the first six
months of 1919.
The decrease in wholesale trade as compared with May was greatest in dry goods and
grocery lines, the respective percentage decreases being 14 per cent and 22.1 per cent. As
compared with May, the general level of
wholesale and retail prices has been practically
stationary; although the wholesale silk market
is still very weak, wholesale sugar and shoe
prices have shown a slightly downward tendency and wholesale stationers report that
prices are tending slightly upward. The detailed table, giving percentage changes by cities,
follows.
797
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
per cent report prices firm with no changes of importance.
No declines are reported.
Dry goods.—Twenty-eight per cent report an upward
(la) Percentage of increase or decrease in net sales for June, movement in some lines; 36 per cent report prices firm;
36 per cent report a decline in some lines, particularly
1920, over June, 1919.
silks. Cotton goods are reported as firm or advancing,
while woolen goods show a weak tendency.
StaGroceries.—Fifty per cent report an upward tendency;
Hard- Dry Grocer- Shoes. tion- Furni- Total. 1
29 per cent report prices firm; 21 per cent show a downware. goods. ies.
ery. ture.
ward tendency Many firms note especially the decline
in sugar prices, and several report a falling off in sugar
Condition of Wholesale Trade During June, 1920, in
Federal Reserve District No. 12.
43.0
45.2
Sacramento
39.2
San Francisco
23.3
Portland
Salt Lake City.. .
25.8
Seattle
54.9
Spokane
37.7
Tacoma
District
31.9
2 4.9 34.7
5.2
4.6 2 3.3
2
7.1 2 34.0
2
13.5
3.9
2 3.0
17.2
22. i
23.9
33.9
22.6
2
0.0002
22.3
73.9
8.7
11.7
12.1
14.5
26.1
27.1
5.9
15.5
18.0
12.4
5.4
2 11.2
21.4
8.5
17.8
2 34.4
(lb) Percentage of increase in net sales January 1-June 30,
1920, over same period 1919.
Sta- FurniHard- Dry Grocer- Shoes. tionTotal, i
ware. goods. ies.
ery. ture.
Los Angeles
Sacramento ..
San Francisco....
Portland .
Salt Lake City
Seattle .
Spokane
Tacoma
District
65.5
53.2
56.7
36.4
38.5
20.9
34.8
32.6
23.4
24.3
32.2
21.9
55.6
27.7
28.6
89.2
24.2
75.5
53.3
46.3
54.0
40.8
54.7
29.4
1.9
47.8
30.3
42.3
78.5
On
2
23 5
40.9
22.1
31.6
36.9
Drugs.—Seventy-two per cent report prices firm, while
28 per cent report a few reductions.
Shoes.—Eighteen per cent report prices firm; 55 per cent
report a downward tendency in some lines; 27 per cent
report prices generally declined. Several firms reported a
falling off in sales in high-priced goods and price reductions in these goods.
Stationery.—Eighty-one per cent report advances or an
upward tendency, while 19 per cent report prices firm.
An advance in paper, due partly to a shortage of pulp, is
reported. No declines are noted.
Furniture.—Fifty per cent report advances; 10 per cent
report prices firm but with an upward tendency; 40 per
while others report a tendency for prices to settle down,
with a falling off in the buying demand.
9
94.6
26.2
33.7
38.0
28.8
58.8
38.1
(4) Collections.
Excellent.
Hardware
(lc) Percentage of increase or decrease in net sales for
1920, over May, 1920.
June,
Hard- Dry Grocer- Shoes. Total. 1
ware. goods. ies.
Los Angeles
Sacramento
San Francisco
Portland
Salt Lake City
Seattle
Spokane
Tacoma
District..
22.7
7.3
1.5
2
9.2
2
2
7.4
1.0
6.1
0.9
23.8
2
0.8
24.8
24.6
2
28.3
1.0
2 14.5
22 41.7
11.0
22 17.4
18.5
25.8
14.0
27.2
2 15.7
2 10.8
2 19.0
4.0
2
14.2
2
28.1
2 9.5
1.0
2 16.0
2 7.9
2 15.6
Drugs: District, 3.8 per cent.
1
Includes reporting drug firms.
(2) Character of buying demand.
All firms report customers buying for current use and the
increase or decrease in sales occurring mostly in essentials.
Several firms report a noticeable decrease in the sale of
luxuries. Conservative buying by customers is also
noted.
(3) Comment on price changes.
Dry goods
Groceries..
Drugs
Shoes
Stationery
Furniture
Good.
Fair.
Poor.
Per cent. Per cent. Per cent. Per cent.
5
17
78
55
45
62
28
10
]4
17
57
54
54
77
29
46
29
23
TERMS OF SALE.
The following is the fifth of a series of articles
giving data as to current practice and recent
history of terms of sale in the principal industries. Acknowledgment is due the many business houses, individuals, trade periodicals, and
trade associations who have courteously furnished the information.
WHOLESALE DRY GOODS.
Dry goods jobbing is exceedingly complex.
Many different classes of goods are handled, and
the business of individual jobbers differs somewhat. Houses are of several types.1 First are
the large nation-wide general dry goods jobbers,
located in the larger markets, in particular in
Chicago and St. Louis and in the Mississippi
Hardware.—Forty-three per cent of reporting firms report
an upward movement in prices, characterized as "slight"
1
by nearly one-half of these firms. Twenty-five per cent
This classification is substantially similar to that of Cherington, The
report prices generally firm with some increases, and 32 Wool Industry, pp. 142 ff.
798
FEDERAL, RESERVE BULLETIN.
Valley, who cater to buyers throughout the
entire country. Larger stocks are carried,
with greater range in quality and selection, and
the volume of business done enables each to
conduct practically a specialty business in each
department, while a large mill shipment business is also done, shipments being direct from
mill to retailer. Second are local general jobbers, located in important railroad centers, and
covering a more limited territory, being found
in the upper Mississippi Valley, the central
South, and on the Pacific coast, though rarely
in»rthe territory accessible to New York. Third
are smaller local jobbers, covering a more restricted territory, and found to a considerable
extent in the South. The. differences between
the three types are largely in the extent of territory covered. In the second and third, however, certain differences may also appear
according to the territory in which the house is
located, and a corresponding difference in the
character of goods handled. Thus heavier
goods, such as blankets, flannels, and woolen
underwear play a larger r61e in the North and
Northwest, and these items carry a later dating
than do the regular items. Likewise, it has
been suggested that eastern houses have a larger
percentage of their business in finer and more
expensive goods in which the style factor plays
a larger role than is the case in other sections
of the country. Most eastern jobbers cover
limited territories, and their customers are in
close proximity to the market, so that most of
their buying is done in the market and from
open stock, whereas in the West sales for future
delivery play a larger role.
In order to clarify the discussion the various
items which are handled may be classified as
follows: Piece goods, notions, white goods and
linens, ladies' ready to wear, men's furnishings,
hosiery and underwear, and floor coverings.
Of each of these there may be several subdivisions. Leading houses will have departments organized along these or other general
lines, although the plan of departmentalization
may vary greatly from house to house, and the
notion department in certain houses, for example, may include many other items such as
jewelry, laces, and embroideries, veilings, dress
trimmings, buttons, umbrellas, etc., as well as
those recognized as regular notion items. Following are the classifications of departments in
two leading houses:
t
1.
2.
3.
4.
5.
6.
Domestics.
Dress goods.
Silks and velvets.
Upholstery.
Cabinet hardware.
B lankets, flannels, linings.
1. Domestics.
2. Woolen goods, including blankets and flannels.
3. Short length cotton piece goods.
4. Curtains and draperies.
5. Dress goods.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
IS.
19.
20.
Furs.
Cloaks, suits, waists.
Muslin underwear.
Knit underwear.
Hosiery.
Gloves'.
Linens.
White goods.
Notions and trimmings.
Umbrellas and ribbons.
Yarns, thread, and knit goods.
Rugs, carpets, and oilcloths.
Furniture.
Laces, embroideries, and lace
curtains.
AUGUST, 1920.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Silks.
Wash goods.
Prints, ginghams, and percales.
Linings.
Linens, damasks, laces, and
embroideries.
Ribbons, notions, etc.
Underwear, sweaters, gloves,
ties.
Hosiery.
Ladies' ready to wear.
Shirts.
Overalls, pants, and duck
clothing.
For the present purpose, another significant
classification which should be noted is that into
staple and fancy items, cotton piece goods, thus
for example, being of both descriptions. It may
be remarked, however, that the volume of piece
goods handled has decreased greatly over a
period of years. In addition to the regular
distributors mentioned above, during the past
two years, "loft" or "secondary" distributors
have grown up who find an outlet for their
merchandise through the channels of regular
jobbers and also to manufacturers of garments
who could not secure sufficient quantities of
merchandise through the regular mill channels.
As in other leading jobbing lines, great interest has been displayed in the terms upon which
merchandise is purchased, and both of the leading associations have considered the matter,
though from somewhat different points of view.
The National Wholesale Dry Goods Association has considered primarily the adequacy of
the cash discount or cash premium allowed on
separate articles. Its several divisions, in
particular the Jobbers Association of Notion
Buyers, have regularly communicated in the
past with manufacturers whose discounts, both
cash and trade, were unsatisfactory, or who
announced a decrease in or elimination of the
same. The Southern Wholesale Dry Goods
Association has considered rather the question
of a uniform set of terms to apply to all purchases. The committee appointed to deal
with the matter, which existed for several years,
recommended uniform terms of 2 per cent 10
days, 60 days extra, instead of the variety of
terms actually in use. In 1919 the report of
the steering committee to deal with factors,
commission merchants, and manufacturers,
and appointed for the purpose of improving
relations between the two groups, again recommended, among other things, " a minimum cash
discount of 2 per cent, with minimum dating
of 60 days on all commodities." Since the
opening of the war period the problem has
assumed new importance as a result of the
curtailment of terms and decrease of discounts
by houses selling the jobber. Thus, it is stated
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
that 10-day terms have frequently been quoted
or, where 60 days was still given, such high rate
of anticipation attached as practically to force
payment within 10 days. Coupled with this
has been the demand that the wholesaler take
goods far in advance of the season for immediate payment. While this has been due in part
to the efforts of purchasers to obtain advance
deliveries for fear of later shortage, it has been
pointed out that the effect has been to force
wholesalers in many cases to finance several
seasons' goods at the same time, thus financing;
two-thirds of their business in two months
time. The situation has been aggravated by
the billing of goods by mills prior to delivery
to the transportation company, in the event
of embargoes or refusal of the carrier to receive
the goods. He himself has found it necessary
to continue to carry the retailer, and his
regular terms on the whole have shown relatively little change. " Summed up briefly/'
then, it has been stated t h a t " the wholesale dry
goods house is to-day bearing both the burdens
of the manufacturer and of the retailer."
The Southern Wholesale Dry Goods Association alone has taken formal action in adopting a set of maximum terms upon which it is
recommended that goods be sold. After discussion at each of its previous conventions, in
1915 terms were adopted at Nashville of 2 per
cent 10 days, net 30 days, on season shipments,
with dating of October 1 and April 1 for shipments after June 1 and January 1, respectively. Intermediate shipments carried 60
days extra, terms on them being 2 per cent 10
days, 60 days extra, net 90 days. In 1916 and
1917 these terms were reaffirmed, and in the
latter year an interpretation was added, stating that June to July and January to February
shipments carried the season da tings, while
shipments during August to December and
during March to June carried the terms for
intermediate shipments. At these conventions
the members practically universally expressed
satisfaction with the terms, and in a considerable number of cases favored the adoption of
even shorter terms. It has been stated that
more than 90 per cent of the membership were
making terms less than the maximum outlined in the Nashville resolution. Thus, instances of the omission of net 30 days on season
terms were reported, as well as the use of 2 per
cent 10 days, 30 days extra. In 1917 some
houses had eliminated the 10 days on season
shipments, making terms October 1 and April
1 with 2 per cent discount, as well as on intermediate shipments, 2 per cent 60 days thus
799
being given. Several instances of longer terms
were reported, such as 2 per cent 10 days, net
60 days, on shipments bearing season dating,
as well as 3 per cent 10 days October 1. Some
houses, in particular in Tennessee and at New
Orleans, reported difficulty in enforcing the
terms, due to competitive conditions.
The feeling in favor of shorter terms resulted in a revision of the terms in 1918 at the
New Orleans convention. The 10 days on
season shipments were omitted, making terms
on season bills 2 per cent October 1 and April
1, and due net November 1 and May 1. Intermediate shipments carried terms of 2 per cent
10 days net 60 days but exception was made of
department stores, which were to be granted
60 days extra on such shipments. The latter
concession, which was intended to be used
merely where competition forced the naming
of such terms, however, seemed to have been
" misunderstood, misinterpreted, and generally
has caused confusion and dissatisfaction/7 to
quote the report of the committee on terms at
the 1919 convention. Accordingly the committee, while recommending the same season
terms, favored 2 per cent 60 days on intermediate shipments, but strongly recommended
that bale goods and all intermediate shipments
of other goods as far as possible be billed on
terms of 2 per cent 10 days, net 60 days. The
longer terms on intermediate shipments were
specified in view of the fact that certain of the
members had previously employed them, and
they also were felt to be necessary to enable
those coming in contact with the larger markets
to meet these terms. An unsuccessful effort
was made by certain members so situated to
reinstate the 10 days which the New Orleans
terms had withdrawn. It is understood that
there has been no subsequent change in the
formal terms.
The several territorial divisions of the association have also interested themselves in the
subject and have passed resolutions indorsing
the recommended terms, as well as made recommendations to the association's committee
on terms. In 1919 a large majority of eastern
Tennessee houses were reported to have terms
of 2 per cent 30 days, net 60 days, and on sales
to department stores 2 per cent 60 days, net
90 days. West Virginia houses, which had
first adopted terms of 30 days extra, 2 per cent
10 days, net 60 days, in consequence of subsequent adoption of 2 per cent 10 days, 60
days extra, net 90 days, by outside jobbers,
recommended the -adoption of such terms.
Terms have also been adopted locally in cer-
800
FEDERAL RESERVE BULLETIN.
tain cases, Cincinnati houses, through their
association in 1918, adopting terms similar to
those of the Southern Dry Goods Association.
The matter of terms of sale has been discussed at many of the conventions of the National Wholesale Dry Goods Association. Complaint has been made at various times of the
tendency of purchasers to deduct discounts
when running somewhat beyond the discount
period, as well as to endeavor to deduct discounts and add interest instead when taking
longer time, such as, for example, with terms of
four months or with note settlements. In 1913
it was suggested by several members that
formal action be taken, but nothing was done.
In 1914 the necessity of curtailing season
datings in order to afford an increased margin
of profit was emphasized. The old datings
were largely continued bv jobbers, although
they had tieen eliminated by manufacturers.
Jobbers'' cash discounts were stated not to
differ much from manufacturers' although
some jobbers had eliminated the old regular
terms and emploved net terms instead. With
the pronounced shortening of terms by manufacturers during the war, increased stress was
placed upon the necessity of a corresponding
shortening in jobbers' terms. Additional emphasis was lent by the steadily rising cost of doing business. The adjustment of terms on each
line exactly to correspond with manufacturers
is not, however, possible in all cases, inasmuch
as jobbers' terms are in many cases the same
for all kinds of a general type of goods. At the
1918 meeting various houses cited instances of
shortening of terms, such as moving the season
dating forward one month from May 1 and
November 1 to April and October 1, elimination of 60 days extra, and of 10 days time on
sea son terms, and use of net 10 days in place
0f 2 per cent 10 days.
General agreement, however, existed as to
the undersirability of concerted action, and this
was reiterated at the meeting held in July, 1918,
the " consensus of opinion being that a nationwide uniform set of terms would not be possible
for all sellers of dry goods, underwear, hosiery,
notions, and kindred goods." At the meeting
earlier in the year, the secretary had been
instructed to collect the terms of members,
which was done. While great variety appeared, the compilation showed a decrease m
the time given and a tendency to closer terms.
It was stated to be u a proven fact that the
' terms situation' was in better shape than at any
previous period," and that "the improvement
might reasonably be expected to continue."
AUGUST, 1920.
While there was an effort at further shortening,
terms at present, however, are stated to be
substantially on the same basis as indicated in
the survey.
We may proceed to examine in greater detail
the terms of the 135 houses which are given in
this survey. The general terms are 2 per cent
10 days, 60 days extra, for many years recognized as the regular dry goods terms. While
in many cases no terms beyond the 70-day
period are formally quoted, and bills are due
net after 70 days, in other cases net 90 days
or net 4 months is frequently specified, though
there has been a tendency toward the firstnamed net terms. Anticipation at the rate of
6 per cent per annum is generally permitted,
which gives a cash discount of 3 per cent 10
days, which, in fact, is quoted by some houses,
as well as in some cases, 1 per cent 10 days, net
30 days. Season datings most frequently
specified are April 1 and October 1, in general
for shipments made prior to two months before
the dating, thus being February 1 and August
1 for the datings given, after which time the
regular 60 days' extra terms are given. Certain houses, however, employ other season
datings, in particular May 1 and November 1,
for the general line, while several instances of
earlier datings, such as February 1 and March 1
and August 1 and September 1, were also
noted. Orders bearing the season dating in
general carry no further dating, although in
certain cases 60 days extra was also given,
mainly by houses having the earlier season
datings and practically nullifying the same.
In all sections houses are found which do not
employ the regular terms or which have no
season datings. In part this is the result of a
shortening of terms in recent years, and one
house states that there has been a decided
tendency to eliminate season datings during the
last two years, while in part it is a reflection of
the character of business done. Some houses
noted that they had recently revised their
terms, while others either were contemplating
or favored revision. Thus, in some cases, 30
days extra in place of 60 days was given to new
accounts, and in St. Louis several leading
houses had eliminated the 10 days of grace on
season datings, bills then being subject to 2 per
cent discount for payment on October 1, while
in certain cases, for example, in Los Angeles,
houses had eliminated these 10 days in connection with the regular terms. Some houses
then sold on terms of 2 per cent 10 days or 2 per
cent 30 days net 60 days, while terms of 2 per
cent 10 days, 1 per cent 30 days net 60 days,
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
were also found, and an effort was being made in
northern New York to obtain the adoption of
such terms by jobbers. Jobbers handling
primarily special lines such as hosiery and
underwear, or men's furnishings, also depart
in some cases from the regular terms, following
the manufacturer's terms on these items, which
will be indicated below. Certain markets, such
as St. Louis and Baltimore, have been known
in the past for their liberality in the matter of
terms, but the former has advanced the customary dating from May 1 and November 1
to April 1 and October 1 during the last few
years. Jobbers located at smaller centers in
various sections in a number of cases instance
the competition of a larger neighboring market
as forcing the granting of 60 days extra, a
November 1 season dating, etc.
The extent to which houses classify their
business and extend different terms on each
class would appear to vary roughly to some
extent with the size of the market. Houses
located in the smaller centers in many cases
have but one set of terms to apply to their
entire business. In the larger markets, in
particular those of the Middle West, distinction
in general is made between spring goods and
fall goods, certain of which in each case bear
a dating one month later, factory or manufactured goods produced by the house itself, and
mill shipments, while staples in certain cases
are also distinguished. In between these two
extremes there is wide variety, many houses
having a lesser number of types, and in certain
sections, such as in the East, the entire range
of types is frequently not found. Classification presents a twofold aspect, certain goods
having both different discounts and net terms,
while with others the difference is merely in
the season dating. Mill shipments in general
bear terms of net 30 days, although some
houses give net 60 days or net 60 days on certain items only, such as towels and white
goods, while giving net 30 days on other items.
Little uniformity appears in the terms on overalls, work shirts, and similar items, instances
noted being net 30 days or 60 days, in some
cases with a discount of 1 per cent 10 days, 2
per cent 10 days, and 2 per cent 10 days 60
days extra, but no season dating in general is
given on these lines. Terms on yarns, spool
cotton, and thread also vary somewhat, instances of 1 per cent and 2 percent 10 days net
30 days and 60 days being reported, without
season dating. Terms on floor coverings are
as a rule 4 per cent 10 days, 60 days extra.
801
In part, classification results from an effort
to shorten terms or reduce discounts to correspond to manufacturers' changes in terms with
respect to certain items. Thus, certain houses
give no season dating on some items like
prints, domestics, percales, ginghams, and
sheetings, in some cases only on specified
brands. Some houses, in addition, have eliminated the cash discount, and bill these and similar items on terms of net 60 days, while others
have advanced the season dating one month,
from April 1 and October 1 to March 1 and
September 1. This tendency is also seen in
connection with certain items such as hosiery
and knit underwear, which, while frequently
continuing to bear a season dating, in the case
of many other houses are sold without such
dating, or bear merely terms such as net 10 days
or 1 percent 10 days, 30 days or 60 days extra,
similar discounts being applied also by certain
houses in connection with the season dating.
Certain items, however, frequently carry the
later season datings of May 1 and November 1.
Among these may be noted laces and embroideries, white goods, cloaks, and furs (which in
some cases carry December 1 dating), blankets,
underwear (when a dating is given), sweater
coats, and fancy knit goods. These items are
of a twofold character, being either heavier
goods, which will be wanted for later fall use, or
style items. Some eastern houses report a
later shipment date in lieu of season datings,
while some houses extend additional time on
shipments to more distant territories, one
house, for example, extending one month's
extra dating on its Montana business.
Collections naturally vary with the different
seasons of the year, payments being concentrated largely in the spring and fall. As fall
sales are heavier than spring sales, they are
heavier in the fall, this being noted alike for
each of the various parts of the country. In
certain agricultural sections, such as the
Dakotas and Montana, this will be accentuated by the fact that accounts are carried to
some extent until the fall, and certain houses
selling such sections report a larger proportion
of accounts in the summer which do not take
the discount. The movement of merchandise
with the majority of wholesale dry goods houses
is about 40 per cent in the first six months of
the year and 60 per cent in the last six months.
The following figures show the proportion of
their total annual receipts received by three
houses during each month of the year. It
should be noted, however, that the data are
802
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
not strictly comparable, inasmuch as the terms* The latter industry developed earlier than did
of the houses differ somewhat:
the women's ready-made industry, which consequently has drawn most of its forms and
methods of operations from it, and a greater
Jan. Feb. Mar. Apr. May. June.
portion of men's clothing is factory made. In
1900 the output of men's clothing as a factory
New England *
7.0
7.4
5.6
6.5
8.3
8.3
product was already valued at twice the custom
5.6
5.0
7.0
5.4
7.0
5.7
Northwest
North Pacific coast
6.1
6.0
6.1
6.6
6.6
5.1
product. The number of factory-made garments would be even greater, inasmuch as the
July. Aug. Sept. Oct. Nov. Dec.
relatively higher priced garments are made by
the tailor.
New England!
7.7
7.5
8.4
9.5 11.5
12.3
The jobbers of men's wear woolens and
6.6
Northwest
. .
7.0
8.7 12.0 18.0
12.0
Noith Pacific coast
7.9 10.8 13.8 11.8
11.5 worsteds and tailors' trimmings are of two
7.8
principal kinds. Due to the scarcity existing
i Another New Fngland house also notes that payments drag from
m the cloth markets during the last few years,
about Jan. 15 to Mar. 15 and from July 1 to Sept. 1.
and the great number of resales, the class of
A leading authority states that on an average traders existing alongside of the so-called " oldabout 5rt0 per cent of the accounts of retailers line " jobber has assumed particular importance
with wholesalers are discounted, and about 20 in this branch of the textile industry also.
per cent are anticipated at the usual anticipa- The principal markets in which trading occurs
tion rate of 6 per cent, dependent upon locality are New York, which is by far the largest,
and trade conditions. Several New England Boston, Philadelphia, and Chicago. With
houses report that from 25 to 30 per cent of the such concerns terms vary greatly, and the
number of accounts anticipate, 60 to 65 per question is largely a price problem. A large
cent pay at the due date (i. e., in 70 days), and percentage, however, is stated to sell on terms
10 per cent run beyond. Several northwestern of net 30 days, although spot cash or net 10
houses agree that 40 to 45 per cent of their days, net 60 days, and net 4 months are also
accounts discount, and one states that 30 per given. Some houses of this description note a
cent pay at maturity, while the balance re- decrease in the length of terms during the past
quire more or less banking accommodation. few years, instances of change from 4 months to
One southwestern house has 66.75 per cent of 60 days and from 60 days to 30 days being
its accounts anticipated and discounted, and reported.
The old-line jobbers, through their associa33.25 per cent paid at the net period, while
another has 10 per cent of its accounts paid in tion, in January, 1918, adopted a resolution
10 days, 40 per cent in up to 30 days, and 20 effective March 1, 1918, in favor of terms of 7
per cent in 31 to 60 days, and the balance in 61 per cent 10 days, 6 per cent 30 days, 5 per cent
60 days. Invoices were to be dated ahead
days to 4 months.
Interest has been displayed in the trade ac- about two months, December deliveries thus
ceptance by both trade associations. The bearing February 1 dating, with the exception
national association has sent out considerable that January-February deliveries bear April 1
descriptive literature, while the 1918 conven- and July-August deliveries bear October 1
tion of the southern association adopted a reso- dating, no goods being dated March 1 or Seplution favoring it, and several members who tember 1. Bills are due net in four months after
were employing it reported themselves well the dating, and are subject to an interest
pleased with it. At the 1919 convention 20 charge of 6 per cent per annum thereafter.
members present at one of the meetings stated The same rate of interest is allowed for anticithat they used acceptances. On the whole, pation. On goods sold at net prices, no longer
however, as in other jobbing lines, the instru- dating and no longer time is given. Goods
shipped to Pacific coast territory, however, may
ment is not used by the majority of houses.
bear longer dating, April 1 on December shipMEN'S WEAR WOOLEN AND WORSTED JOBBING. ments, October 1 on June shipments, and 30
days extra on shipments during the other
As is the case with goods for women's wear, months. Although the matter of terms had
woolens and worsteds for men's wear find their been frequently discussed, no action had been
way into consumption via one of two chan- taken prior to 1918, and no regular terms
nels—the jobber who sells to the small tailor existed, although the terms which were adopted
and the ready-made clothing manufacturer. at that time, namely 7 per cent 10 days, 6 per
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
cent 30 days, and 5 per cent 60 days, had been
previously in general employed.
In addition there are book houses who put
up sample books of the fabrics which they have
purchased from the mills. The tailor displays
the book to his customer, who selects the style
he desires, and the tailor then orders a suit
length of the style from the book house. There
is stated to be little difference in the relative
strength of the book house and the regular
jobber as a link in the distributive chain in the
various sections of the country. Certain book
houses combine jobbing with their regular business to a greater or lesser extent. The customer
of the book house requires little credit, due to
the fact that he shifts to it the burden of stocking the goods. In consequence, a large portion
send cash with order or accept C. O. D. shipments, while some remit on receipt of goods or
when sending the next order, and others receive
10 days, end of month terms or 30 days. The
same principle underlies the granting of time as
in the case of proximo terms, namely to group
invoices in the case of frequent shipments.
The annoyance incident to C. O. D. shipments
is also avoided. Orders for large quantities
of material bear 30 or 60 days, and only rarely
are longer terms extended, such as 90 days in
the case of orders for stock. For years a discount of 7 per cent has been granted, but this
was abolished in certain cases last year.
MEN'S CLOTHING.
Manufacturers of men's ready-to-wear clothing may be divided into several classes. The
first distinction is between makers of trademarked clothing and makers of clothing unidentified by either trade-mark or label. The
former will feel to a greater extent the desirability of greater concentration of work under
their direct supervision, and the large inside
factory is in fact on the increase everywhere
but in New York. On the other hand, particularly in that center, the system of contracting is still largely employed. Between
the two, the medium-sized house, it is felt in
some quarters, is being driven out, due to the
disadvantages inherent in its competition with
both the small manufacturer on low grade and
the large manufacturer on better grade garments. The relative capital of the typical
cutting house is small compared
with its turnover and in consequence l' the whole structure
rests on the
ready saleability of the cutter's
product," 1 the chain extending from retailer
through cutter to manufacturer of cloth.
i Cherington, The Wool Industry, p. 204.
803
As is well known, the industry is distinctly
seasonal, although during the past two years
activities have continued to a greater extent
over the entire 12 months. The duration of
the spring season is from about November 15
to May 15, the cloth being bought during
the previous June, July, and August, and the
salesmen soliciting orders during September,
October, and November. Deliveries are generally made after January 1, being heaviest in
February and March, and reorders follow in
the spring. The cloth for the fall season is
bought in December, January, and February,
orders are received during March, April, and
May, and deliveries are heaviest in August and
September. Little, in particular in the higherpriced lines, is made for stock.
There is no standardization of terms in the
industry. It has been the practice for the
manufacturer to date shipments ahead, so as
to permit the retailer to dispose of part of his
purchases before being required to pay the
manufacturer. Thus up to recent years terms
were mostly 9 per cent for cash within 10 days,
or 7 per cent 10 days, with December 1 dating
on fall goods and June 1 dating on spring
goods. In certain cases, however, the dating
was November 1 or November 15 on fall goods
and May 1 or May 15 on spring goods. Some
houses have distinguished further between
different classes of goods, suits, for example,
being dated November 1 and overcoats December 1, or May 1 being specified on spring
goods and June 1 on distinctly summer goods.
Late shipments, for example, after April 1 or
April 10 on spring and October 1 or October 10
on fall goods, in many cases bore terms of 7
per cent 10 days, 60 days extra, or 7 per cent
60 days. In certain cases 7 per cent e. o. m.
has been given instead. Tradition in the industry sanctioned terms of 6 per cent 30 days,
5 per cent 60 days, and net 4 months. In some
cases, however, 7 per cent 10 days, 5 per cent
30 days, and 4 per cent 60 days was given.
Some manufacturers have considered accounts
as due net at the close of 90 days. Other
manufacturers, although permitting 30 days
or longer settlements with correspondingly
reduced discounts, have given formal terms of
only 7 per cent 10 days, and have thus been
able to insist upon payment of accounts of
financially involved customers at any time
after the expiration of the initial 10-day period.
Anticipation has been generally permitted at
the rate of 6 per cent per annum.
During the last few years many manufacturers have shortened terms, although the
* larger number continue to employ the regular
804
FEDERAL RESERVE BULLETIN.
terms. Some have eliminated the dating entirely, while others have granted datings that
would not be so far advanced in the season.
Some manufacturers give no terms longer than
5 per cent 30 days, or 5 per cent 60 days without dating. There has also been a tendency
away from the high discounts which were formerly almost universal. Some manufacturers,
while retaining season dating terms, give only
8 per cent for immediate payment, others 7
per cent 10 days, and 5 per cent for payment
on dating dates, such as June 1 and December
1, or specify that accounts, while bearing the
customary 7 per cent discount at the dating
period, are due net in 30 days thereafter. The
principal controversy, however, concerns the
use of so-called "net terms." By the phrase
is meant merely terms where the discounts are
small, and correspond to the cash discounts
generally in vogue in other lines. An instance
is afforded by the terms of 2 per cent 10 days,
net 60 days, without season dating, now employed by certain manufacturers. Other houses
employing these terms give datings, such as
April 1. The use of such terms at times when
making quantity sales to large dealers is also
noted. A study made several years ago states
that some high-grade
clothing is sold on net
10 day terms,1 and some manufacturers give
terms of net 10 days with July 1 dating on
summer clothing. ^Several houses which had
adopted shorter terms are reported to have gone
back to the longer terms in 1919.2
The subject of standardization of terms has
been discussed for some time by committees
of manufacturers and retailers. The latter
prefer standardization in the regular or old way,
and have objected strongly to the introduction
of net terms, which are favored by some wholesalers. Other wholesalers, however, believe
that the higher discount terms have tended to
accelerate collections. In consequence, no
definite arrangement has been consummated.
The opinion has been expressed that the many
changes just noted in terms in the industry
during recent years do not represent any real
standardization, but have been made from the
point of view of the individual house.
Lack of rigid adherence to terms in the past
was noted.3 Retailers, it has been said, often
1 Bureau of Foreign and Domestic Commerce, Miscellaneous Series
No. 34.
2
It is stated that in view of the present high money requirements,
being
made on a spot cash basis.
3
The material in this paragraph relative to conditions in the past has
been taken from a paper on Datings and Discounts, read by Mr. Ira D.
Kingsbury before the convention of the National Association of Clothiers
June, 1914. The paper is reproduced in the Bureau of Foreign and Domestic Commerce, Miscellaneous Series No. 34.
AUGUST, 1920.
bought on one basis and wished to settle on
another. The liberal credit policy followed,
due in some measure to keen competition, encouraged merchants who were inexperienced
and possessed inadequate capital to engage in
the retailing of clothing, and who then required
the manufacturer's aid in carrying the merchandise. The long terms forced the manufacturer to carry the retailer, although a goodly
percentage of the latter were in a position to
take the best discounts. On the other hand,
because of the high discounts given, wrongful
deduction of discounts was frequent. Tnus
some retailers expected to give notes bearing
interest at 6 per cent per annum, while obtaining the full cash discount, and succeeded in
obtaining such concessions from manufacturers.
During the last two years, however, and in particular during the past year, collections have
improved greatly and there have been very
few failures among retailers. The retailer has
done a large volume of business at high prices,
while payments by him have also been stimulated through a desire to obtain his full allotment of merchandise. The question has been
raised as to what extent the merchants who
would have failed in the absence of the unusual
trade activity of the last few years will remain
on a permanently improved basis when conditions become more normal, or whether they
will again slip back.
The manufacture of trousers may be considered as a separate branch, although the number
of houses making trousers exclusively has declined during the past two decades. Advantages accrue from the addition of other lines,
such as summer clothing and overcoats, and
these combinations are found as well as combination with the manufacture of work clothing.
Regular clothing manufacturers also make
trousers to a greater or lesser extent. Trousers
bear either terms of 7 per cent 10 days, 6 per
cent 30 days, and 5 per cent 60 days, which are
stated to have been largely initiated by clothing
manufacturers, or terms of net 60 days, with a
discount of 2 per cent 10 days in some cases, or
in other cases 1 per cent 10 days, 30 days extra.
Some manufacturers give only net 30 days. Inasmuch as trousers are also distinctly seasonal,
a spring dating of April 1 or May 1 and a fall
dating of September 1, October 1, or November
1 are generally given for January to February
and June to July or August shipments, respectively.
Terms for work clothing range from net 30
days to 2 per cent 10 days, net 60 days. In
general, however, terms are stated to be 1 per
cent 10 days, 30 days extra, net 60 days. Some
AUGUST, 1920.
FEDERAL, RESERVE BULLETIN".
years ago 1 per cent 10 days, 60 days extra was
also given. One house selling on terms of net
60 days gives 30 days extra on a trade acceptance settlement. The same datings as in the
case of trousers are given to some extent, and in
both branches anticipation at the rate of 6 per
cent per annum is permitted in certain cases.
In recent years the tailor to the trade, who in
a central factory makes clothes to measure,
which are ordered through retailers or agents in
the various sections of the country, has been an
increasingly important factor in the industry.
In addition to his regular business, he is often
employed by large retailers to make up clothes
after their own styling, just as is the regular
manufacturer who does not feature his own
name. Although found in all sections of the
country, the tailor to the trade branch is stated
to be considerably larger in the Southwest than
either the ready-made or merchant tailoring
branches. As is to be expected, it is relatively
stronger in the smaller than in the larger
centers.
Distinction in terms is made by the tailor to
the trade according to the credit rating of the
customer. Those with good rating in general
receive net 30-day terms, monthly settlement,
for example, by the 10th, being permitted in
certain cases. During the war one of the leading houses lengthened the 30 days to 60 days.
Some houses provide 10-day terms for purchasers of lesser rating. A deposit, such as $5
per suit and $1 per pair of single trousers, when
placing the order, and C. O. D. terms are generally required in the case of those who do not
have a rating sufficient to entitle them to credit
on open account. While the larger houses do
the majority of their business upon 30-day
terms, certain houses are known in the trade as
C. O. D. houses and deal almost entirely with
unrated merchants. In certain cases cash in
advance is required, or else a guaranty, the
regular monthly settlement being permitted in
the latter case. Some houses allow a cash discount, such as 2 per cent 10 days or 3 per cent
cash in advance. Regular ready-made clothing
manufacturers in certain cases sell also made-tomeasure garments, terms being net 30 days or in
some instances net cash.
Jobbing in men's ready-made clothing is very
small. In the study above referred to, data obtained from 64 manufacturers showed that
98.21 per cent of the output was sold to retailers
and only 1.29 per cent to jobbers. The latter
are stated to be largely disappearing, except
where they have goods made up for themselves
to be sold under their own labels. The cheaper
goods are mainly handled, the manufacturers of
805
trade-marked clothing selling their product direct to the retailer, in general granting the latter exclusive agencies. Even in small-town
and country trade, which is now their chief field
of activity, their work is confined mainly to the
sale of working clothes. A few jobbers also exist who dispose of slow lines for manufacturers
on commission, or else purchase the same outright. Terms of jobbers are reported to vary
greatly, and no definite statement can be made.
WOMEN'S OUTER GARMENTS.
There are several distinct branches in the
women's garment industry. Cloak and suit
manufacturers generally do not make skirts,
although there is a distinct tendency for them
to do so. The same manufacturer at times
makes both skirts or suits and dresses, although the large majority of manufacturers
confine their attention to either article. It is
estimated that 95 per pent of ladies' waist
manufacturers specialize in this product. There
are thus the cloak and suit, skirt, dress, and
waist branches, each of which has its distinct
identity. In addition to the manufacturers,
there are so-called "jobbers" or stock houses,
who however practically create their own styles,
furnish their own materials, and have their garments made up by submanufacturers and contractors. Contracting in the industry, while it
figures largely, is however less important than
for men's wear, due to the greater number of
small cutting concerns.
Jobbers are found in all the larger centers
where the manufacturers are located. New
York is the largest center in the cloak and
suit industry, its output being estimated in
the census of 1910 at approximately 70 per
cent of the total output of the industry, and
it produces finer goods than other centers.
Cleveland is noted for the production of staple
articles, and Philadelphia, Boston, and Chicago
are also large centers. St. Louis is the second
largest center in the skirt industry. There are
many jobbers, but no stock houses, and there
are relatively few small concerns, as is the case
in New York and elsewhere. The principal
dress centers include New York, Chicago, Philadelphia, St. Louis, Cleveland, Cincinnati, Boston, and Los Angeles.
The industry differs in some important particulars from the men's clothing industry.
There are fewer trade-marked lines, and the
agency and branch store are not employed.
The larger New York stores are stated to seek
the smaller manufacturers rather than the
larger factories for the greater part of their
806
FEDERAL RESERVE BULLETIN.
stock, and have a large part in the creation of
their styles. The time between orders by the
store and delivery by the cutter is very short,
and cutters endeavor to keep goods in process of
manufacture as small as possible, seldom
getting far ahead of orders actually in hand.
Sales are made to department stores, specialty shops, and catalogue houses. Seasons
differ somewhat. Cloak and suit orders in
New York are placed from July 15 to October
15 and from January 15 to about two weeks
before Easter, shipments occurring respectively in August, September, and October and
February and March. The dullest months are
December and June. In Cleveland, however,
orders are stated to be taken further in advance of the season and deliveries made earlier,
beginning about July 1 and January 1, and
being heaviest from July 15 to September 15
and in February and March respectively. In
the skirt industry heaviest sales are made in
July and August and in January and February,
heaviest deliveries being approximately one
month later. These seasons must be further
subdivided in view of the change in the separate
skirt business from a staple character to the
manufacture of novelties for sport wear, etc.,
which has made it necessary to carry a far
larger stock. St. Louis has selling seasons
running from June 15 to August 1 and from
December 1 through January and in some
years through the early days of February,
heaviest deliveries being from August 1 to
September 15 and in February respectively for
fall and spring seasons. October, November,
and December are the dull months in the skirt
industry.
In the dress industry there are four seasons.
These extend roughly from the middle of
June to the middle of August or September,
from the middle of September to the 1st of
November, from December until the middle
of March, and from the middle of March until
about the 1st of June, deliveries being made
approximately one month later. The dull
months are June and November. Seasons, of
course, differ according to the character of
the garment and the material employed.
Thus winter-resort fabrics will precede summer cotton garments and sport wear, while
midwinter wear and fur-trimmed garments
are somewhat earlier than garments for formal
functions and evening wear. It is generally
believed that there has been a tendency during the last two years for seasons to become
interlocking. Selling for the fall waist season
occurs in July and August and for spring in
AUGUST, 1920.
January and February, heaviest deliveries
being in August and September and in March,
April, and May, respectively, although the
business is practically continuous.
In New York City, the Garment Conference
Council of Wholesalers and Retailers adopted
a resolution in July, 1917, fixing maximum
terms, which was later confirmed by the
respective local associations of cloak and suit
manufacturers, dress and waist manufacturers,
and garment "jobbers," and concurred in by
various associations of retailers. Terms hacl
previously been very mixed, ranging from net
up to discounts as high as 16 per cent, and the
aouse prevailed of deduction of excess discounts by purchasers. In the dress and waist
industries 10 per cent was called regular. The
maximum terms adopted were 6 per cent 10
days, 7 per cent 30 days, 8 per cent 60 days, or
so-called "net" terms, namely, 2 per cent 10
days, 1 per cent 30 days, net 60 days, the
price being advanced correspondingly in the
former case to compensate for the difference
in discount. A strictly net basis is also
permitted, as are e. o. m. 10 day terms.
The endeavor was first made to offer merely
a 2 per cent discount, but in consequence of the
opposition of the retailers, who favor a high
discount (as also in men's clothing), a compromise was effected after about a month whereby
the two optional sets of terms were specified.
It has been stated that the majority of cloak
and suit and skirt manufacturers selling lowpriced garments offer only the low discount and
short dating. Few dress and waist houses in
the association employ the "net" or strictly
net terms. The length of time given will vary
with the individual credit risk, and thus some
buyers receive only 30 days, etc.
Cloak and suit manufacturers in the Cleveland market, however, have adopted no uniform terms, although "the consensus of
opinion has been to sell as nearly as possible
on a net basis with 60 to 90 days dating,"
while at the same time offering a reasonable
cash discount. Up to about 10 years ago the
majority of houses sold on terms of from 7 to 10
per cent 10 days, with proportional discounts
for payments within 60 days and 90 days.
Terms now range from 2 per cent 10 days, net
30 days, to 5 per cent 10 days, 2 per cent 10
days, 60 days extra, but the majority give
terms of 4 per cent 10 days or 2 per cent 10
days, 60 days extra. Many houses give season
datings of March 1 and September 1, the dating
on suits in some cases being one month earlier
than on coats. The difference in practice be-
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
tween New York and Cleveland with respect
to dating corresponds to the difference in practice noted above with respect to orders and
deliveries, there being no heavy purchasing in
advance in New York, and goods being ordered
for delivery when needed.
It is stated that skirt manufacturers in New
York who are not members of the manufacturers' association in general adhere to the
terms adopted by the garment conference,
although they are reported often to give extra
terms. Prevailing terms among St. Louis
houses are fairly uniformly 3 per cent 10 days,
2 per cent 30 days, although special terms of
8 per cent 10 days to 10 per cent 10 days are
allowed to firms of exceptional credit. Jobbers' terms in the main are 2 per cent 10 days,
net 60 days. While some members oi the
trade claim that terms were formerly flat 3
per cent, but that about 4 years ago eastern
competition forced concessions during several
seasons, terms on the whole show no great
changes during the past decade. The city
trade, which amounts to but a small portion
of the total, receives e. o. m. 10 day terms.
In other markets it is reported that 10 per cent
10 days is largely given.
The standard maximum terms were not
accepted by all New York City dress houses
which belonged to the dress and waist association. Prior to that time discounts ranged from
3 per cent up to as much as 16 per cent in
some cases, while 10 per cent was called regular, as was noted above. Terms of houses in
New York which are not members of the local
association, as well as of houses located in other
markets, vary greatly, and instances are found
of net terms of 10, 30, and 40 days, while discounts range from 2 per cent to 8 per cent,
e. o. m. terms or 30 days extra being given in
some cases, as well as graded discounts (in
general not over 2) such as 2 per cent 10
days, 1 per cent 30 days, net 60 days, or 3
per cent 10 days, 2 per cent 30 days, and
special terms according to account. While
many state that differences in terms are primarily due to the policy of the individual
house, others distinguish between cheaper
dresses, which are stated to be generally sold
on shorter terms and lesser discounts, and
medium and fine dresses. Thus one authority
states the former are sold more largely on
terms of net 10 days or 2 per cent 10 days,
the latter on terms of 8 per cent 10 days, in
some cases with e. o. m. terms or 30 days
extra, and some extremely high-priced dresses
on terms of 8 per cent 10 days extra or 7 per
807
cent 10 days 60 days extra. It is also agreed
that the last few years in general have witnessed a shortening of terms and an abolition
of the old extremely high discounts.
Waists are generally sold on terms of 8 per
cent 10 days, in some cases with e. o. m.
terms for the better grade and 2 per cent 10
days for the cheaper grade. It is stated that
there is a general tendency to eliminate the
60-day clause. Collections on the whole are
reported fairly prompt, payment on the average being made within 30 days from receipt
of goods.
FUR MANUFACTURING.
Raw and dressed furs are purchased by
manufacturers from importers and dealers.
At times manufacturers import their raw materials extensively, but the great bulk of the
business is done through dealers. Both manufacturers and dealers have their
raw furs
dressed by "dressers and dyers/7 which is a
separate branch of the industry. The business
in the past has been a one-season business, but
in recent years the fashion for summer furs has
given the industry two seasons.
The matter of standardizing terms in the industry has been discussed for eight years or
more, but no formal action has ever been taken,
and it is very generally conceded that the establishment of fixed rules in regard to the
matter would be extremely difficult if not entirely impracticable.
The prevailing terms are 2 per cent 10 days
or 7 per cent 10 days December 1, and 2 per
cent 10 days January 1, on merchandise
shipped after July 1, and 7 per cent 10 days
July 1 on merchandise shipped prior to that
date. Houses making fine goods usually give
7 per cent 10 days with both datings, while
houses making cheap goods give 2 per cent 10
days December 1 and 7 per cent 10 days July 1.
As there are more firms making cheap goods
than fine, more goods with the December dating bear 2 per cent than a 7 per cent discount.
It has been suggested that the existence of a 7
per cent discount with the July 1 dating may
be due to the fact that when the fur trade was
a one-season business special inducements were
necessary to stimulate early orders, and these
persisted even after the industry had assumed
a two-season character.
Variations from these terms are, however,
frequent. The customer with a poor credit rating may have to take a lower discount, although this is not generally practiced. Ex-
808
FEDERAL RESERVE BULLETIN.
ceptionally large discounts, such as 6, 8, 10,
12, and up to 16 per cent, are given in certain
cases where desired by large retailers. During
the year much larger use of the trade acceptance by manufacturers is reported, although it
is not by any means a general trade practice.
Large use is made of it in the purchase of skins
from importers or dealers.
Prior to 1912 over 50 per cent of the total
product was shipped on memorandum or consignment. Serious abuses, however, resulted,
and in that year a rule was adopted in the
trade of prohibiting the practice. Shipment of
goods on approval, to remain not longer than
three days in the customer's hands, is, however,
permitted, i t is estimated that not over 10
per cent of the product at present is shipped
on memorandum, the greater part of which is
on three days' approval.
MILLINERY.
The organization of the millinery industry
is complex. There are four principal branches.
Of these the millinery jobbers are the chief, but
the term is somewhat inaccurate, for many of
them make their own hats, in large part
import their specialties, and sell feathers, etc.,
direct to the retail trade. There are also hat
manufacturers who make untrimmed and
banded hats, which are made by machine and
not by hand, and who sell almost exclusively
to large jobbers, or in a very few cases to large
retailers. The trimmed-hat houses manufacture trimmed hats and sell almost exclusively
to retail dealers. In addition, there are
specialty houses handling flowers, feathers, etc.
The hat manufacturers who sell to the
jobbers have a seasonable business lasting
from three to four and one-half months each
season. The trimmed-hat manufacturers have
a longer season, owing to the scarcity of
trimmed hats, their season lasting about 10
months each year. At the present time there
is an active and well defined movement on foot,
sponsored by the Millinery Chamber of Commerce of the United States, looking toward the
establishment of a 12 months' business for all
branches of the millinery industry, with a
resultant sale of seasonable millinery for each
season of the year. It is stated that this
movement is meeting with great success.
Terms of millinery jobbers are now fairly
standardized. First among their organizations to adopt terms was the Millinery Jobbers' Association in 1900, which now covers
the territory between Columbus and Denver,
AUGUST, 1920.
and St. Paul and Dallas. The terms as
revised in 1910 called for a maximum dating
of April 15 and October 15 on goods shipped
prior to February 15 and August 15, respectively. On goods shipped subsequent to these
dates it was optional with members to allow
60 days dating, the discounts being 6 per cent
10 days, 5 per cent 30 days, and 4 per cent 60
days from value date. Anticipation at the
rate of 6 per cent per annum was permitted.
Beginning with the spring season, 1918,
datings were fixed at April 1 and October 1
for shipments prior to February 1 and August
1, respectively, while the clause relating to
goods shipped subsequent to these dates remained unchanged. The terms of 4 per cent
60 days were, however, eliminated, and a
clause instead substituted providing that no
discount was to be allowed after 30 days.
One of the principal purposes in the formation of the National Millinery Association in
the East, covering the Atlantic seaboard from
Boston to Atlanta, in the winter of 1917, was
to improve credit conditions, in particular in
view of the high percentage of bad-debt losses.
Prior to that time terms varied greatly, but
most houses are stated to have given terms of
7 per cent 10 days, 6 per cent 30 days, with
May 1 and November 1 datings. From Boston
it is stated that terms had been usually 7 per
cent 10 days, 5 per cent 30 days, with datings
of April 15 and October 15, and a flat 60-day
dating to all large accounts. In Baltimore, in
addition to 7 per cent 10 days and 5 per cent
30 days, 4 per cent 60 days, 2 per cent 90 days,
and net 4 months were given, with 60 days
dating, as well as net terms of 2 per cent 10
days, 1 per cent 30 days, net 60 days, strictly
net 30-day terms, and without discount
privilege according to price quoted. In Atlanta terms were 7 per cent 10 days, 5 per
cent 30 days, with April 1 and October 1
datings on shipments prior to February 1 and
August 1, respectively, and 60 days extra on
subsequent shipments.
The datings and shipment dates fixed by
the National Millinery Association are identical
with those of the Millinery Jobbers' Association. Terms of 4 per cent 60 days were,
however, permitted, no discount being allowed
after 60 days, and terms of 7 per cent 10 days
e. o. m. were permitted. At the same time, a
similar change was made by houses on the
Pacific Coast, the datings being changed from
April 15 and October 15 to April 1 andOctober
1, and terms being specified as 6 per cent 10
days, with anticipation at the rate of 6 per
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
809
and cloth headwear. The interests of these
branches are closely interwoven. Manufacturers sell to jobbers and to retailers direct, a
few, but usually of large producing capacity,
selling to jobbers almost entirely, while others
sell only to retailers and others have their
accounts almost equally divided. Of an estimated production of finished hats amounting
to 10,000 dozen per day, about 40 per cent
is stated to go to the jobbing trade, and the1
remaining 60 per cent to the retail trade,
one-third of this 60 per cent being the output
of manufacturers who buy the bodies. In
addition, there is an estimated production of
800 dozen bodies per day sold to small and
medium sized factories throughout the country
for finishing and trimming. The quality of
products sold to jobbers is reported much
lower on the average than of that sold to the
retailer direct, but it has been stated that
with the constantly rising prices the proportion of better grade hats being sold to jobbers
has materially increased. Retailers sold direct
will naturally be located more largely in the
larger centers.
Turning to the several branches, the manufacture of felt hats is divided into several
distinct branches, in the manner just indicated. Certain manufacturers manufacture or
purchase hatter's fur, making their own hat
bodies and finishing and trimming the hats
complete ready for sale, but others manufacture or purchase hatter's fur and manufacture
only the hat bodies in the rough, which are
sold to and become the raw material for the
third class, known in the trade as dry shops,
who finish and trim the hats complete ready
for sale.
Considerable variation in terms is found as
between different firms, although in each
branch of the industry certain terms are recognized as regular. Standard terms of manufacturers of hat bodies in the rough are net 30
days, while it is stated that formerly up to net
90 days was given.
There is no general difference in the terms
on which manufacturers who engage in the
entire process and the dry shops sell. Standard terms to jobbers are 10 per cent 10 days,
e. o. m., with sliding scale of reduced discounts
for various periods of deferred payments. In
years of business depression the discounts have
MEN'S HATS.
been known to be increased to \2\ per cent,
The principal branches of the men's hat and in exceptional instances to 15 and even to
industry, aside from the preparation of the 17 per cent. For many years standard terms
raw material, are the manufacture of felt hats, * One authority, however, places the percentages for felt hats at 20 per
straw hats, Panama and fiber body hats, cent and 80 per cent, respectively.
cent per annum, or 7 per cent 10 days quoted.
Sixty days extra has been given on other than
early shipments.
The hat manufacturers have terms, which
have been in effect for many years, of 6 per
cent 10 days, 5 per cent 30 days, with datings
at March 1 and September 1, and no datings
thereafter, other than e. o. m. terms in some
cases.
Trimmed-hat houses on July 1, 1917, through
their association adopted terms of 6 per cent
10 days, 60 days extra, or 7 per cent 10 days.
Terms previously in use were 7 per cent 10
days, 60 days extra, or 8 per cent 10 days,
and many houses are still employing these
terms. In 1919 several millinery jobbers
reported the use of net terms on trimmed
hats, and a committee on discounts was
accordingly appointed by the Millinery Jobbers'
Association, out at the recent convention it
was decided not to sell them net.
Among the specialty items, flowers and
feathers are sold on terms of 7 per cent 10
days, with May 1 and November 1 dating, or
10 per cent 10 days e. o. m.
The trade acceptance is little used in the
industry. It was adopted in June, 1919, by
the Raw Ostrich Feather Importers' Association, for use where requested by the seller on
all accounts not liquidated by the 10th of the
month following purchase, terms being 10
per cent 10 days (e. o. m. in some cases),
9 per cent 30 days, 8 per cent 60 days, 1\ per
cent 90 days, 7 per cent 4 months. This association urged the use of trade acceptances in a
letter in 1919 to the Millinery Jobbers' Association, but the latter did not deem them
practical for the millinery business at that
time. Millinery braids were sold to millinery
jobbers and hat manufacturers upon terms of
6 per cent 10 days, with datings of April 1
and October 1, but practice as to payments is
stated to be very lax. On March 1, 1920,
purchasers were advised that the season
dating would be eliminated, and terms would
be 8 per cent 10th e. o. m. or 6 per cent 10th
e. o. m., 60 days extra, but the effect is stated
to have been nullified through instructions
given by customers to ship goods on January 1,
making due dates and discounts 8 per cent
February 10, or 6 per cent April 10.
810
FEDERAL RESERVE BULLETIN.
to retailers were 7 per cent 10 days, 6 per cent
30 days, with a loss of 1 per cent per month
for further deferred payments, and these terms
are still most generally observed. In recent
years a number of manufacturers changed to
terms of 2 per cent 10 days, net 30 days, and
various authorities report either a general decrease in the discount or shortening of terms,
one manufacturer selling to retailers thus reporting elimination of the 60 days extra formerly given on all shipments. There is also a
considerable number of manufacturers who
transact their business on terms of 6 per cent
10 days, 5 per cent 30 days, and net thereafter,
while others employ terms such as net 10 days
and net 30 days. It has been stated that
manufacturers of the medium and cheaper
grades have granted larger discounts than
manufacturers of the finer grades. It is reported that eastern manufacturers generally
grant an additional time allowance, such as 30
days extra, to Pacific coast purchasers, while
to accounts located in the territory west of the
Mississippi Kiver and east of the Rocky Mountains certain manufacturers grant 20 days
additional.
Silk hats are reported to be generally sold on
net terms.
The straw-braid hat industry before the war
was distinctive in that the manufacturers
booked the majority of orders from the early
part of July to the early part of October, for
the entire season's business, running from July
to July. Shipments were made at the discretion of the purchaser, and for many years
terms were 7 per cent 10 days May 1 to the
jobber, and 6 per cent 10 days, 5 per cent 30
days, June 1, to the retailer. The bulk of
shipments were made during March and April,
necessitating storage by the manufacturer
until that time. In 1917 the three larger Baltimore manufacturers found great difficulty in
making their shipments at the customary time,
due to transportation conditions. In consequence, for the year commencing July, 1918,
straw-hat manufacturers with few exceptions
decided upon revision of their methods, requiring the purchaser to take the goods as they
came from the factory. In order to encourage
early purchasing, shipment, and payment,
terms were changed to 10 per cent for payments on or before October 10, 1918, with a
decrease in discount of 1 per cent per month
for later payments, thus making the lowest
discount 2 per cent for payments after May 10
and before June 10. Manufacturers, in addition, were enabled at their option, in case of
AUGUST., 1920.
financial stringency, to bring their bills due on
any date upon demand. For the season commencing July 1, 1918, a decision, however, was
reached to return to the old terms but to allow
also an additional 2 per cent to purchasers
taking goods as they came from the factory.
Terms of manufacturers of panama and
fiber body hats, while not strictly uniform, in
general are 2 per cent 10 days, net 30 days
May 1, although in some instances May 1 net
is specified. Some manufacturers producing
straw hats also grant the same terms on
panama and fiber body hats as on straw-braid
hats, which have been noted above.
The trade acceptance is reported to be little
used by manufacturers of men's hats, and is
employed by perhaps less than 5 per cent of
the number of manufacturers, although some
firms employ it with very great success. As to
collections, it is estimated very roughly that
75 per cent of buyers take the highest discount
and 20 per cent pay on a 30-day basis, although
another estimate places the figure for those
taking the highest discount at 50 to 60 per
cent for the felt - hat industry. Individual
manufacturers in this industry report individual percentages ranging from 65 to 75, and
over 80 per cent taking the highest discount,
30 per cent and 15 per c&it taking the second
discount, and 2.2 per cent and 5 per cent taking
over 30 days. Additional time taken beyond
30 days will almost always affect credit standing adversely.
Jobbers' terms are largely 2 per cent 10 days,
30 days extra, but deduction of the discount
by purchasers is permitted even if payment is
made at the expiration of 90 days. Some
houses grant Pacific coast customers 60 days
extra in place of 30 days. It is stated that prior
to about four years ago high discounts prevailed, such as 6 per cent or 7 per cent 10 days,
60 days extra.
MEN'S FURNISHINGS.
Collars and shirts.—A study made several
years ago 1 showed that of the output of 42
reporting establishments, 59 per cent was sold
direct to retailers, as against 39 per cent to
jobbers. The practice varied with the individual firms, 17 selling their entire product to
retailers, as against 4 to jobbers, while 11 other
establishments also sold part of their output
to jobbers. By far the greater proportion of
high-grade lines of shirts is sold direct to the
1
XT. S. Bureau of Foreign and Domestic Commerce, Miscellaneous
Series, No. 36.
AUGUST., 1920.
retailer, the portion sold to jobbers consisting
very largely of work shirts and low-priced
lines. It has been estimated that from 80 to
85 per cent of the output of collars is sold
direct to the retail trade. Jobbers are stated
to have been formerly of much greater importance in the industry than at present. Manufacturers of shirts frequently also make other
products, such as pajamas, men's muslin underwear, boys' blouses, and overalls.
Terms of sale of collars are quite uniformly
6 per cent 10 days, 5 per cent 30 days, while in
the case of shirts considerable variety is found,
the study quoted above reporting terms to jobbers as usually 2 per cent 10 days, 60 days
extra, and to retailers, by the greater number
of manufacturers, as 2 per cent 10 days or16 per
cent 10 days, both with 60 days extra, but
ranging from net 10 days to 8 per cent 10 days,
60 days extra. Certain of the manufacturers
of finer grade goods selling direct to the retail
trade report elimination during the last decade
of the 60 or 90 days extra dating on collars
which prevailed to some extent prior to the
war. This dating is now given by certain of
these manufacturers only on season orders.
Some manufacturers of this class of goods report a change in their terms on shirts from 6
per cent 10 days, 5 per cent 30 days to 2 per
cent 10 days, 60 days extra. The above study
states that terms on shirts in considerable
measure depend upon the quality of merchandise and the importance of the customer, concessions being made on new accounts or important sales, while demands for extra discount
and dating were frequent. The trade acceptance is not employed by the great majority of
manufacturers. A high percentage of discounters is noted. It is reported that collections in the industry are generally prompt,
though varying of course with general business
conditions. A leading manufacturer estimates
that 40 per cent pay within the 10 or 30 day
discount period, 20 per cent pay within 60
days, 20 per cent within 90 days, and the balance in one or two months thereafter, while
another reports his receivables as averaging
45 to 50 days' sales.
Men's neckwear.—It has been estimated that
by far the larger proportion of men's neckwear,
at least 80 per cent, is sold direct to retailers
by manufacturers. Certain of the firms selling the jobber also ;ell the large retailers, in
particular department stores. As a general
rule, neckwear sold to the jobber is of a lower
i Certain manufacturers from whom data were obtained in the present
study report, however, that 90 days extra is also given.
811
FEDERAL, EESEKVE BULLETIN.
grade. A number of manufacturers produce
also allied lines, such as handkerchiefs, mufflers,
etc.
Prevailing terms among the larger manufacturers are stated to be 6 per cent 10 days or 5
per cent 10 days, 60 days extra, a considerable
number of manufacturers giving 7 per cent
10 days, 60 days extra (or 8 per cent 10 days)
up to the middle of the war period, when they
reduced the discount to the former figure. It
is reported, however, that a large amount of
neckwear s sold upon terms of 6 per cent 10
days, 60 days extra, 7 per cent 10 days also
being granted in such cases. Some manufacturers employing these terms reduced the discount to 2 per cent or 1 per cent several years
ago, in order, it is stated, to enable the sale of
goods by jobbers at accustomed prices per
dozen. In certain cases e. o. m. terms are
given, and some manufacturers quote only
terms of 10 days. The trade acceptance is
infrequently employed. In most cases the
related lines which are manufactured are *old
on the same terms as the neckwear.
Suspenders, belts, and garters.—It has been
estimated that of the cheaper grades of suspenders and belts 70 per cent is sold by manufacturers to jobbers, while of the better grades
90 per cent is sold direct to the retailer. For
garters 70 per cent or more is estimated to be
sold to jobbers, in particular of the better
grades while low-priced garters are stated to
be sold primarily direct to chain stores handling
low-priced merchandise.
Terms are repo ted to vary from 1 per cent
10 days without further dating to 7 per cent,
60 days extra, the majority of manufacturers
selling on terms of 2 per cent 10 days, 60 days
extra. E. o. m. terms are given in certain
cases. It is stated that up to three or 'our
years ago certain manufacturers who sold the
retail trade employed terms of 6 per cent 10
days or 7 per cent 10 days, 60 days extra, but
that most of them have since changed to 2 per
cent 10 days, 60 days extra. Little use is
made of the trade acceptance. Several leading
manufacturers granting 60 days extra report
that from 80 to 90 per cent of accounts are paid
within 70 days.
COKSETS.
Corsets, corset waists, and brassieres are sold
by the manufacturer almost entirely direct to
the retailer. Trade-marked goods are not sold
to the jobber. The amount handled by the
latter is confined to the lower grades and does
812
FEDERAL RESERVE BULLETIN.
not, it is stated, exceed at the most 5 per cent
of the output.
Terms to retailers are largely 6 per cent 10
days, 60 days extra, although a few manufacturers allow a discount of 7 per cent instead,
and a very small number, who usually do only
a local business, have terms of 2 per cent 10
days, net 30 days. On the Pacific coast goods
shipped from manufacturer's Pacific coast offices
carry terms of 2 per cent 10 days, 60 days
extra, inasmuch as merchandise is shipped
f. o. b. point of purchase, and the 4 per cent
differential covers the difference in freight
charges to the manufacturer. There has been
no change in the above terms for many years.
Terms to jobbers, however, vary with the individual manufacturer from 1 per cent 10 days,
60 days extra, up to 7 per cent 10 days, 60
days extra.
CLOTH UNDERWEAR.
The larger manufacturers of cloth underwear
deal very largely through the jobber, while
there is a tendency for the smaller manufacturers to sell directly to the retailer. While a
little higher class of garment is possibly sold
direct to the retailer, of whom there are a large
number, smaller manufacturers tend to make
more or less staple articles, as the manufacture of fancy goods requires more capital. It
has been estimated roughly that about half of
the total output of cloth underwear is sold to
jobbers and half to retailers. There may be
a tendency to more direct selling by manufacturers of women's garments, some estimates
placing the proportion thereof sold to retailers
at about two-thirds.
Manufacturers' terms of sale for cloth underwear to the jobber are relatively standardized
at either 2 per cent 10 days, 60 days extra, or
net 10 days, 60 days extra. While some of the
largest manufacturers employ the net terms,
it has been estimated that as much as 90 per
cent of the total business is done on the former
terms. Aside from poor risks not entitled to
credit and one manufacturer (also making nightwear), who quotes 2 per cent 10 days, net 60
days, the only exception reported to the above
terms was for some manufacturers of women's
and children's underwear, whose terms instead
are similar to the regular dry goods terms (with
season dating), as will be noted below.
Terms to the retailer in general are even
more largely 2 per cent 10 days, 60 days extra.
Exceptions noted (employed by manufacturers
also making nightwear) include 30 days extra
instead of 60 days and 2\ per cent or 3 per cent
discount in place of the 2 per cent, with net
AUGUST., 1920.
terms of 60 days. The only marked change in
terms reported during the last 25 years has
been the elimination of the season datings of
May 1 and October 1, with terms of 2 per cent
10 days, by the larger manufacturers.
Some manufacturers of women's cotton cloth
and muslin underwear sell on terms of 8 per
cent 10 days, 7 per cent 10 days, 60 days extra,
to both jobbers and retailers, while others have
regular terms of 3 per cent 10 days, 2 per cent
10 days, 60 days extra, but quote jobbers who
so desire 8 per cent 10 days, adjusting the price
accordingly. One manufacturer grants jobbers January 1 dating on merchandise manufactured during the summer months for January
delivery, while in some cases the use of the
regular dry goods season datings of April 1 and
October 1 are reported by houses employing
terms of net 10 days, 60 days extra.
Nightwear terms are similar. The former
terms of 6 per cent 10 days, 60 days extra, are
stated to have been changed to 3 per cent 10
days, 2 per cent 10 days, 60 days extra, in
addition to which terms of net 10 days, 60 dayextra, are also in use. In addition to the exy
ceptions remarked above, the employment of
terms of 5 per cent 10 days is reported. Vers
little use of the trade acceptance is reported
in the cloth underwear and nightwear industry.
GLOVES.
Distributive methods in the glove industry
show little change during the last 25 years.
Several estimates place the proportion of the
output sold by manufacturers to retailers at
50 per cent or more, figured on the basis of
dozens rather than dollars, and of this total
20 per cent are men's gloves. It has been
estimated that 75 per cent of the output of
work gloves and heavy gloves is sold to jobbers, while of the better grade of gloves 75
per cent is sold to retailers. In general, manufacturers of high-grade leather gloves sell exclusively to retailers and employ their own
salesmen rather than work through selling
agents. A larger jobbing business is stated to
be done in the West than in the East.
Prior to about 1915 manufacturers' terms
of sale were largely 6 per cent 10 days, 60
days extra to retailers, and 6 per cent 10 days,
5 per cent 30 days, with season datings of May
1 and November 1 to jobbers, with 30 days
extra between seasons. Some manufacturers
employed terms of 2 per cent 10 days, 60 days
extra, or 7 per cent 10 days, which in certain
cases have been retained. During the war,
however, terms were largely changed to net
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
10 days, but have since been generally lengthened to net 30 days or in some cases net 60
days, with the exception of the poorer credit
risks, who largely are still quoted terms of
net 10 days. The larger manufacturers make
no distinction in terms according to locality,
but it is reported that in some instances eastern
buyers may be quoted net 10 days, whereas
western buyers of equal credit standing may
obtain net 30 days from the same manufacturer,
and that some other manufacturers do not vary
their terms but make the adjustment by changing the shipping dates. It is estimated that today 75 per cent of the business is done on net
terms. In general buyers taking additional
time are charged interest at the rate of 6 per cent
per annum. Some manufacturers, however,
have retained terms of 6 per cent 10 days, 5
per cent 30 days, 30 days extra, while terms of
several manufacturers were given as 7 per
cent 10 days, 6 per cent 30 days e. o. m., or
as 2 per cent 10 days, net 60 days. The
season dating has largely disappeared in the
leather-glove industry, and is only found
occasionally when a manufacturer wishes to
ship before the regular season for deliveries.
The trade acceptance is little used in the
industry, although one manufacturer stated
that he employed it in connection with 25 per
cent of his business.
Amendment to Clayton Antitrust Act.
House bill 13138, amending section 8 of an
act entitled "An act to supplement existing
laws against unlawful restraints
and monopolies, and for other purposes/7 known as the
Clayton Antitrust Act, was approved by the
President May 26, 1920. The act follows.
[PUBLIC—No. 225—66TH CONGRESS (H. R. 13138).]
AN ACT To amend section 8 of an act entitled "An act to supplement
existing laws against
unlawful restraints and monopolies, and for
other purposes/ 7 approved October 15, 1914, as amended May 15,1916.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That
section 8 of an Act entitled " An Act to supplement
existing laws against unlawful restraints and monopolies,
and for other purposes," approved October 15, 1914, as
amended by the Act of May 15, 1916, be further amended
by inserting in the proviso at the end of the second clause
of said section after the word "prohibit" the words "any
private banker or," so that the proviso as amended shall
read:
"And provided further, That nothing in this Act shall
prohibit any private banker or 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, which board is hereby
813
authorized, at its discretion, to grant, withhold, or revoke
such consent, from being an officer, director, or employee
of not more than two other banks, banking associations,
or trust companies, whether organized under the laws of
the United States or any State, if such other bank, banking association, or trust company is not in substantial
competition with such banker or member bank.
"The consent of the Federal Reserve Board may be
procured before the person applying therefor has been
elected as a class A director of a Federal reserve bank or
as a director of any member bank."
Approved, May 26, 1920.
ECONOMIC AND FINANCIAL CONDITIONS
IN BRAZIL.
Brazil has an area of over 3.3 million square
miles, and occupies nearly one-half of the South
American Continent. Her territory equals
that of the United States, including all the outlying possessions, excepting only Alaska. Her
population, however, numbers only about 24
million people; that is, about 7.4 per square
mile as compared with 30.9 for the United
States. Large portions of the tropical and
mountainous territory included in the boundaries of Brazil are very thinly populated, the
greater part of the population being concentrated near the seaboard, except in the States
of Minas Gereas, Sao Paulo, and Rio Grande
do Sul.
In prewar years Brazil's chief place in the
markets of the world was as a producer of
coffee and rubber, the former constituting
about 63 per cent of her exports, and the latter
about 20 per cent more. This dependence of
Brazil's foreign commerce on two articles of
export resulted in a serious dislocation of her
business and financial conditions when, at the
outbreak of the war, the demand for coffee
declined, and the problem of securing shipping
space for exports was at times fraught with
difficulties. Overproduction of coffee, followed
by a drop in price, together with the injury to
the rubber industry caused by oriental competition, had created an unfavorable position
m Brazil during the years preceding the war,
and the sudden interruption of her normal
business increased still further the difficulties of the Republic. But Brazil is endowed
with vast natural resources, and the shock produced by the war has had the result of encouraging Brazil to diversify her agricultural production. Stock raising, wool and hide production, the cultivation of rice, corn, beans, cassava
meal, cocoa, tobacco, and yerba mate received
a powerful impetus from the decline in the
814
FEDERAL RESERVE BULLETIN.
demand for coffee, together with the difficulty
of importing from abroad the food required for
domestic consumption. As a consequence,
Brazil emerges from the world conflict not only
as a practically self-supporting country in so far
as food is concerned—wheat being the only
article of food of which Brazil does not produce
a sufficient quantity to meet her domestic
requirements—but also as an exporter of meat,
sugar, cocoa, beans, and other food products.
The production of minerals, especially manganese, has also greatly increased since prewar
days. At the same time the difficulty of importing manufactured articles from Europe
during the war has resulted in the development of domestic industries in Brazil, such
as meat packing, cotton mills, shoe factories,
and lumber mills.
MONETARY SYSTEM.
Brazil's monetary system is based on a gold
milreis of 0.82207 grams of fine gold, with a par
value of $0.5462, or 27 pence in British money.
The gold milreis, however, does not circulate,
and only small quantities of coins of 5, 10, and
20 milreis are in existence. The principal currency of the country is the paper milreis, which
is issued by the Government and is inconvertible. Against this paper money the treasury
has been accumulating a guaranty and retirement fund at the Caixa de Amortizacao, which
is discussed below.
The desire on the part of the Government to
stabilize the price of coffee, as well as to prevent
excessive fluctuations in exchange, resulted in
the creation on December 6, 1906, of a conversion office (Caixa de Conversao). This office
began operation on the basis of a loan of 15
million pounds from England, its functions
being to receive gold and issue convertible
notes at the rate of 1 milreis for 15 pence in
gold (raised in 1910 to 16 pence). These notes
are legal tender and were redeemable on demand
at the conversion office in gold, which must not
be used for any other purpose. The notes
were used in part for the purchase of coffee,
thus maintaining its price. While the convertible notes were made legal tender, old
contracts made on the basis of a milreis worth
27 pence continued to be payable on that basis.
The original limit of the amount of gold that
the conversion office was authorized to receive
was 20 million pounds sterling, or 320 million
milreis (320,000 conto of reis) at the rate of 16
AUGUST, 1920.
milreis per pound sterling. After this amount
was reached the rate of exchange could be raised
by law. As a matter of fact, this rate was
raised to 16 pence per milreis on December,
31, 1910, and the limit of gold deposits in the
office was raised to 60 million pounds, corresponding to 900 million milreis in convertible
notes at the rate of 15 milreis per pound
sterling, or 16 pence per milreis. This change
in the conversion rate resulted in a debit of the
Government to the conversion office amounting
to about 19 million milreis, with the consequence
that the gold in the conversion office fell short by
that amount of covering the outstanding convertible notes.
In addition to affording a means for the
stabilization of coffee prices (valorization) the
conversion office during the prewar period
served as an agency for the conversion of
international currency—gold—into Brazilian
paper currency, or vice versa, and tended to
regulate fluctuations in exchange rates. When
the exchange value of the paper milreis would
fall below the fixed amount of 16 pence, the
holders of convertible notes would find it profitable to exchange them at the conversion office
for the guaranteed amount of gold. The gold
thus removed from the conversion office would
be used for international payments, and this
would tend to raise the exchange rate. On the
other hand, when the value of the paper milreis
rose above 16 pence, it would become more
valuable than gold, and the public would take
gold to the conversion office to exchange it for
notes. This withdrawal of gold from circulation would in turn have a tendency to lower
exchange rates. In this manner the conversion
office exercised a steadying influence on the
exchange value of Brazilian currency.
At the outbreak of the war, however, when
exchange rates were steadily falling, the run
on the conversion office became serious, and the
Government was forced to suspend conversion
operations and to close the office. This suspension is still in force. At the same time the
Treasury itself purchased convertible notes in
the market with inconvertible notes at a premium, and released equivalent amounts of gold
from the conversion office, some of this gold
being used for export and to support exchange,
while large amounts were transferred to the
guarantee fund for inconvertible notes.
The amounts of convertible and of inconvertible notes at the end of each year, from
1911-1919, is given in the table following.
AUGUST, 1920.
Note circulation of Brazil.
[In 1,000 paper milreis.J
December 31—
1911
1912
1913
1914
1915
1916
1917
1918
1919
. . .
. . . .
.
.
Convertible.
378,843
406,036
295,347
157,787
94,560
94,560
94,560
20,912
20,912
Inconvertible.
612,519
607,025
601,488
822,496
982,090
1,122,560
1,389,415
1,679,176
1,729,002
Total.
991,002
1,013,061
896,835
980,283
1,076,650
1,217,120
1,483,975
1,700,088
1,749,974
The maximum amount of convertible notes
outstanding at the end of any year was 406
millions at the end of 1912. At the end of 1913,
it was 295 millions; at the end of 1914, 157
millions. Large scale redemption in 1915 reduced the amount to 95 millions, at which figure
it remained stationary until the end of 1917, to
fall to 21 millions in the following year, which
is the amount outstanding at the present
time.
The gold in the conversion office decreased
proportionately, the difference between the gold
and the notes on each date being 19 millions,
representing the above-mentioned debit of the
treasury to the office. At the end of 1918 and
1919 the total amount of gold was only 1.6
millions against 21 millions of outstanding
notes.
Gold exports from Brazil amounted to about
126 million milreis in 1914, and to about 98
millions in 1915, but since that time the exports
have been insignificant, the gold withdrawn
from the conversion fund being for the most
part transferred to the guaranty fund. Nearly
all the convertible notes have thus been withdrawn from circulation and their gold cover has
been in part exported and in part transferred
to the general guaranty fund for inconvertible
paper currency.
By a law of April, 1918, the treasury was
authorized to issue against the gold transferred
from the conversion office five times its value in
inconvertible notes. Thus, when 60 millions
of convertible notes were withdrawn from circulation on October 2, 1918, a corresponding
amount of gold was released at the conversion
office. This gold, however, amounting to 60
million milreis on the basis of 16 pence per
milreis, was worth only 35.6 millions on the
basis of 27 pence per milreis, the original gold
parity of the milreis at which rate the transfer
was made. The 35.6 millions in the guaranty
fund enabled the Government to issue 177.8
millions in inconvertible notes, of which 60
815
FEDERAL RESERVE BULLETIN.
millions took the place of the retired convertible notes and 117.8 millions was new circulation. As a consequence of this procedure and
of the issuance of much larger additional
amounts of uncovered notes for various purposes on the authority of different decrees, the
amount of inconvertible paper currency increased from 600 millions in 1913 to 822 millions in 1914, 982 in 1915, 1,679 millions at the
end of 1918, and 1,729 millions at the end of
1919, at which figure approximately it stands
at the present time.
Gold holdings of the Government in the guaranty fund amounted to about 48 million milreis
at the end of 1919 and constitute about 3 per
cen t of the paper money in circulation. Around
this nucleus the Government hopes ultimately
to build up a sufficient gold reserve to insure the
redemption of all the outstanding inconvertible
notes.
FOREIGN TRADE AND FOREIGN EXCHANGE.
Brazil, like other South American countries,
had a favorable merchandise trade balance in
normal times, offset by interest payments on
its foreign debt and on investments by foreign
countries in Brazil. The years preceding the
outbreak of the war were years of very large
production of coffee, accompanied by a drop in
price, and were also marked by demoralization
of the rubber market. This resulted in a decline in the value of exports which totaled 973
million milreis in 1913, as against 1,007 millions
of imports, the merchandise trade balance thus
being unfavorable to Brazil during that year.
Foreign trade of Brazil during
the years 1910-1919.
[In 1,000 paper milreis.]
Difference
Year.
1910
1911
1912
1913
1914
1915
1916
1917
1918
1919
.
Imports.
Exports.
713,863
793,716
951,370
1,007,495
561,853
582,996
810,759
837,738
989,405
1,334,358
939,413
1,003,925
1,119,737
972,731
750,980
1,022,634
1,136,888
1,192,175
1 137,100
2,178,719
between
imports
and
exports.
+225,550
+ 210,208
+ 168,367
- 34,765
+ 189,127
+ 439,638
+ 229,749
+351,437
+ 147,695
+844,361
Exports declined still further when the war
broke out and were only 751 millions in 1914,
but imports were reduced even more, because
European countries could not spare goods for
Brazil, so that the trade balance was favorable
816
FEDERAL RESERVE BULLETIN.
to that country by 189 million milreis in 1914.
It is notable that, while the value of exports in
1914 was decidedly below the 1913 figure, the
quantity of exports did not materially decline,
the principal reason for the decrease in value
being the drop in the price of coffee from 6i
milreis for 10 kilos (22.4 pounds) in 1913 to
4 | milreis in 1914. During 1914 Brazil exported about 114 million milreis in gold, and
the gold holdings of the conversion office
dropped from 276 million to 138 million.
The demand for coffee was decidedly reduced by the war, first, because Germany,
which had been a large importer of Brazilian
coffee, was altogether eliminated as a customer,
and, secondly, because allied belligerents in
Europe reduced their consumption of coffee as
a nonessential.
Rubber exports also suffered a decline because of the difficulty of securing transportation and of the growing competition of oriental
rubber. Brazilian rubber is considered the
best in the world, but its production is still in
the elementary stage of pure exploitation and
has not been organized as a systematic, selfperpetuating industry. In spite of the decline
in rubber and in coffee exports, the value of
exports from Brazil increased in 1915 and continued to grow throughout the period under
discussion, the exports for each of the war
years, 1915-1918, being over 1 billion milreis,
while in 1919 they amounted to considerably
over 2 billion milreis. Imports also increased
in value after 1915, but not as rapidly as exports, and Brazil had a favorable merchandise
balance every year from 1914 to 1919. The
increase of exports was due to the growth in
the production and exports of foodstuffs other
than coffee. Thus the export of frozen beef,
which had been insignificant before the war,
amounted to over 9 thousand tons in 1915, 35
thousand tons in 1917,. 71 thousand tons in
1918, and 73 thousand tons during the first 10
months of 1919. Meat was shipped largely to
Italy, France, and the United Kingdom. Considerable quantities of sugar, beans, cassava
meal, and yerba mate were also exported, the
latter largely to other South American countries. On December 3, 1917, a convention was
entered into between the Brazilian and the
French Governments by which the latter took
over 30 of the German ships seized in Brazilian
waters. France agreed to have these ships
make at least 40 trips from Brazil to Europe
and at least 35 from Europe to Brazil during
the period December 3, 1918, to March 3, 1919.
A cash payment of 110 million francs was also
AUGUST, 1920.
to be made by the French Government, and in
addition the French Government agreed to
purchase 2 million bags of coffee for 100 million
francs. This agreement, besides bringing funds
to Brazil, helped to overcome the difficulties in
the.way of exporting Brazilian products, and
also had a favorable effect on the coffee market.
On the basis of merchandise exports alone
Brazil's trade balance was favorable throughout the war period, but the war had brought to
a stop the constant flow of foreign capital to
Brazil, which had helped to develop the country, and, while creating an increasing amount
of obligations for interest and dividend payments, acted as a temporary offset against
imports of manufactured goods. The total
amount of foreign capital invested in Brazil is
estimated at 2 billion dollars. A set of figures,
published in the Gazeta da Bolsa, shows the
estimated amounts of foreign capital invested
in Brazil during each year from 1908-1918.
These amounts were 28 million pounds in 1908,
20 millions in 1909, 33 millions in 1910, 38
millions in 1911, 25 millions in 1912, and 41
millions in 1913, but only 6 millions in 1914,
and about 1 million in the three years 1915—
1918 combined. With this stream of new
capital cut off, Brazil found it •difficult to meet
the interest payments on her foreign debt and
arranged for a funding loan, as will be explained later. At the same time foreign investments in Brazilian industries continued to
earn returns which called for settlement, and
Brazil, in spite of a favorable merchandise
balance, had a decidedly unfavorable balance
of international payments. Hence the drop
in exchange rates. In January, 1914, sight
drafts on London were quoted at 15ff pence
per milreis. In July of the same year the
quotation was only slightly below that amount.
In August it dropped to 14J, in September to
13, and in October to lOfJ, the lowest level
recorded during the period under review. A
gradual rise brought the milreis up to 1 3 ^
pence in March, 1919. It should be noted
that this decline of the milreis in terms of
British currency was in the face of an increasing depreciation of sterling itself. The value
of the milreis declined also in terms of French
francs, but in the case of Italy the depreciation
of the lira considerably more than offset the
decrease in the value of the milreis. Owing
to the fact that dollar and sterling exchanges
were linked in New York through the pegging arrangement, their course was parallel as
long as this arrangement lasted. When in
March, 1919, the European exchanges in
AUGUST, 1920.
New York were "unpegged," the value of the
milreis in terms of European currencies immediately began to rise, as these currencies,
deprived of official support in New York, sought
the lower levels in harmony with the adverse
trade balances and currency inflation in the
respective countries. In terms of pence the
milreis rose from 13-^ in March to 17ff in December, 1919, and to 18-H in March, 1920. The
French franc, which was worth 715 reis in
March, 1919, was only worth 276 reis in March,
1920. The decline of the Italian lira was
even greater; from 613 reis per lira in March,
1919, exchange had declined to 216 reis per
lira in March of this year. Dollar exchange
was quoted in Brazil throughout the more
recent period under review at a figure above the
3.083 milreis, which is the equivalent of 16
pence in British currency.
In spite of the fact that Brazil's exports to
the United States each year from 1914 to 1919
were far in excess of her imports from this
country, as America was a heavy importer of
Brazilian coffee and rubber, the value of the
dollar in the Brazilian market rose from 3.180
milreis in July, 1914, just before the outbreak
of the war, to 4.328 milreis in April, 1917, when
the United States became a belligerent. From
that time until February, 1918, the rate declined
to 3.765 milreis, in sympathy with the decline
in the rates on other allied countries. During
the summer of 1918 rates on all allied countries,
including the United States, had an upward
tendency, as the fortunes of war had turned in
their favor. Since the "unpegging" of the
exchanges in New York in March, 1919, dollar
exchange has fluctuated in Brazil but has not
shown a pronounced upward or downward
tendency. The fact that the United States has
maintained the gold standard and is the only
important free gold market, has had a tendency
to overcome the traditional dependence of
Brazil on British currency as a standard of
exchange. Some Brazilian contracts have
recently been made with reference to dollar
exchange, and the loan to Italy mentioned
below is made on a dollar basis and is to be
handled through the Guaranty Trust Co. In
December, 1919, the Brazilian Government
issued an order to the effect that customs
duties, which previously had been calculated
in terms of sterling, should henceforth be
figured on the basis of dollars, since sterling
had ceased to represent gold value.
The general favorable developments in
Brazilian exchange during the last year are due
in part to the great increase in her exports,
817
FEDERAL EESEEVE BULLETIN.
after the cessation of hostilities made more
ships available, but also to the increase in the
price of coffee caused by the decrease in production following the heavy frost of 1918 which
killed nearly one-half of the coffee-bearing
trees. Prior to that time Brazil suffered from
overproduction and was unable to dispose of
the large stocks of coffee accumulated under
the valorization plan. Reduced coffee planting, improved prices, and diversification of
agricultural production are reacting favorably
on Brazil's economic conditions and on the
exchange value of her currency.
BANKS.
The leading bank in Brazil is the semiofficial
Banco do Brasil, organized in 1905. A bank
under the same name was chartered as early
as 1809, was frequently reorganized under different names, and immediately before the 1905
reorganization was known as the Banco da
Republica. The paid-in capital of the Bank
of brazil is 45 million milreis, owned in equal
shares by the Government and by the stockholders of the old Banco da Republica. Additional stock of 25 millions to be sold to the
public is authorized but has not been issued.
There is a reserve fund of 8 million milreis.
The bank acts as fiscal agent of the Government. It also conducts a regular commercial
business and engages in foreign exchange
transactions. The bank has a branch in
London and has a loan of 1 million pounds
sterling from the Brazilian Government for the
purpose of exchange operations in the London
market. As holder of half of the bank's stock,
the Government receives half of the profits, and
uses them for the redemption of paper money.
The business of the bank has expanded decidedly during the war period. Its discounts increased from about 51 million milreis in 1913 to
114 millions in 1919. Its loans on current
account increased from 31 millions to 123
millions, and the amounts due from its agents
in Brazil and in Europe increased from 67
millions to 125 millions. At the same time its
demand deposits increased from 66 millions
to 143 millions. The bank's profits have for
some years been between 8 and 10 per cent.
While the Bank of Brazil has not the privilege
of issuing notes, there is a clause in its charter
providing that in case any bank is granted that
privilege the Bank of Brazil is to have the
monopoly of note issue. A reorganization of
the bank as a bank of issue and rediscount,
modeled after the pattern of European central
818
FEDERAL RESERVE BULLETIN.
banks and of our own Federal Reserve Banks,
is now under discussion. The present minister
of finance, Sefior Homero Baptista, was formerly president of the Bank of Brazil, and is
favorable to this reorganization. Recent reports from Brazil indicate that such a plan was
discussed and unanimously approved by the
directors of the bank at a meeting on April 30.
Outside the Bank of Brazil there are many
large domestic banks, of which the Banco da
Provincia do Rio Grande do Sul, the Banco
Commercial da Provincia do Rio Grande do
Sul, the Banco do Commercio e Industrias de
Sao Paulo, and the Banco Mercantil do Rio
de Janeiro are the most important.
Banks controlled by foreign capital are also
prominent in Brazil, as in other South American
countries. These banks engage in general
commercial business, deal extensively in foreign exchange, and act as agents for the interests of their nationals in Brazil.
Banks in Brazil are chartered under a general
statute applying to all joint stock companies,
and, outside of the requirement of publication
monthly of a statement of condition, are not
subject to governmental supervision. During
the war daily reports of foreign exchange transactions were required. Branches of foreign
banks must have a specified portion of the
home institution's capital assigned as capital
to the Brazilian branch. Foreign banks are
subject to the same taxes as domestic banks.
Of the foreign banks, the three controlled
by British capital, the London and Brazilian
Bank, the London and River Plate Bank, and
the British Bank for South America, which has
recently been amalgamated with the AngloSouth American Bank, are the oldest and most
influential.
Brazil's financial relations to England are
very close, most of the foreign investments in
Brazil are British, and the external national
debt has been floated and is held to a large extent in England. The predominance of British
influence in Brazil's finances is indicated by the
fact that its official foreign exchange rates are
in terms of British currency and that the conversion office redeems notes at a fixed rate in
sterling. A tendency to break away from sterling as a standard of value has, however, recently become manifest, as mentioned above.
German capital was represented in Brazil by
three important banks affiliated with the three
great German commercial banks, the Deutsche
Bank, the Dresdner Bank, and the Discontogesellschaft. The banks were actively interested
AUGUST, 1920.
in the development of electric industries in
Brazil. As Brazil was at war with Germany,
these banks were first placed under governmental control and later liquidated after 1917,
but they have now resumed operations. Important banking concerns, representing French
and Dutch capital, are also in operation in
Brazil, the French banks being particularly
interested in railroad development. The principal French bank is the Banque Francaise et
Italienne, while the important Banco Nacional
Ultramarino represents Portuguese capital.
There were eight new foreign banks and
branches opened during the period under discussion, besides one domestic bank; three
American banks, namely, the National City
Bank, the American Mercantile Bank, and the
American Foreign Banking Corporation; one
Dutch bank, one Portuguese bank, a branch of
the Japanese Yokohama Specie Bank, one
Scandinavian bank, and a branch of the Royal
Bank of Canada.
A table is attached showing the assets and
liabilities of the principal banks in the Rio de
Janeiro on December 31, 1919. It should bo
noted that for banks whose head offices are not
in the capital figures for the Rio office alone
are included, so that the table is indicative of
the relative importance of the banks in that
city, but not of their aggregate resources in
Brazil. Another table showing assets and liabilities of the banks in Sao Paulo is included
for comparison; also two tables showing aggregate assets and liabilities of domestic and foreign banks, respectively, on December 31, 1913
to 1918.
The banks in Brazil hold a large proportion
of cash reserves to demand deposits, chiefly
because in the absence of a central bank of
issue and rediscount each bank must carry
sufficient reserves in its own vaults for all contingencies. Taking all the banks combined,
their ratio of cash to deposits was 45.1 per
cent in 1913 and 45.7 per cent in 1919. It is
of interest to note, however, that the percentage for the domestic banks increased from
34.3 per cent to 43.4 per cent, while that of
the foreign banks declined from 65.3 per cent
to 48.5 per cent. Among the foreign banks it
appears that the more newly established institutions carry much smaller percentages of
reserve. The average for five new banks is
34.3 in 1919 as against 50.7 per cent for the
other bank. The Portuguese bank's ratio of
reserves is the lowest, amounting to only 14.77
per cent.
AUGUST,
1920.
819
FEDERAL RESERVE BULLETIN.
PUBLIC FINANCE.
Like many new countries, Brazil has for
many years past annually exceeded its receipts
by its expenditures, with the consequence that
the national debt has been steadily increasing.
On December 31, 1918, Brazil's foreign debt
amounted to 116 million pounds sterling, while
its domestic debt, issued in the form of shortterm bonds (apolices), amounted to over a
billion milreis, with an additional 356 millions
of floating indebtedness.
The State governments of Brazil also had
very considerable debts, amounting in the
aggregate to about 1,200,000,000 milreis.
The principal sources of revenue of the National Government are import duties, while the
principal sources of revenue of the States are
export duties. In 1914 Brazil arranged lor a
funding loan of 15 million pounds, which relieved it from the necessity of paying interest
on its foreign debt until the end of 1917, and of
amortizing any portion of this debt until 1927.
This loan is secured by a second lien on the
customs receipts at Rio de Janeiro, the first
claim on these receipts being represented by the
funding loan of 1898, of which about 8 million
pounds are stiU outstanding. In case the
receipts at the port of Rio de Janeiro are insufficient, receipts at other ports are also pledged.
Furthermore, Brazil, like Argentina, is confronted by the fact that while European countries have almost unlimited need of Brazil's
products they are not in a position to pay cash,
and Brazil, if she wishes to sell her products,
will have to make arrangements for granting
credits to the purchasers. An agreement has
already been reported by which the Brazilian
Government extends a 6-months' credit of
100 million milreis to Italy for the purpose of
enabling that country to purchase goods in
Brazil.
As a consequence of the war, Brazil is thus
beginning to figure as an international creditor,
while sne still continues to be a debtor on a
large scale. With a large domestic and foreign
debt, and a circulation of 1.8 billions of paper
milreis, against which less than 3 per cent gold
cover is at present available, Brazil faces the
necessity of a radical reorganization of its fiscal
policy. This is fully realized by the present
administration, and plans for a revised system
of taxation are being developed.
SOURCES.
Ministro da Fazenda: Annual Reports, 1915-1919.
Commercio Exterior do Brasil, 1913-1919.
Diario Official, Estados Unidos do Brasil, official daily, 1913-1920.
Redfield, Arthur H., Brazil, A Study of Economic Conditions since 1913,
compiled by the War Trade Board and published by the United States
Department of Commerce.
Hurley, Edward N., Banking and Credit in Argentina, Brazil, Chile, and
Peru, published by United States Department of Commerce, 1914.
Lough, William H., Banking Opportunities in South America, published by the United States Department of Commerce, 1915.
Williams, John H., Latin America exchange and international balances during the war. Quarterly Journal of Economics, May, 1919,
p . 422.
Brazil, Financial and Economic Conditions and Public Debt, a Report
Prepared for the Central Executive Council of the International High
Commission, Washington, D. C, October, 1919.
Calogeras, J. P., La Politique Mone*taire du Bresil, Rio Janeiro, 1910.
Banco do Brasil, Reports: 1915-1918.
Trade Reports from South America and Portugal, issued by the London
and Brazilian Bank.
The Americas, monthly, published by the National City Bank.
Boletim do Camara Portuguesa de Comercio e Industria do Rio Janeiro,
monthly.
Gazeta da Bolsa, weekly, Rio Janeiro.
Gazeta Commercial e Fmanceira, weekly, Rio Janeiro.
Wileman's Brazilian Review, weekly, Rio Janeiro.
Jornal do Commercio, daily, Rio Janeiro.
Boletin da Directoria de Industria e Commercio, Sao Paulo, June, 1919
Exchange rates on foreign centers at Rio de Janeiro, 1914-1919.
London.
January
February
March./.
April
May
June
July
August
September
October
November
December
January
February
March
April
May
June
July
August
September
October
November
December
1914.
d. per
milreis.
1541
151
15U
15H
1514
11
14*
13
IO-H
13H
13||
1915.
13H
13
tt
12H
12H
llff
12*
12*
llf
lit*
12*
12*
Paris.
Italy.
23,050
18,100
17,662
601
601
601
608
608
602
601
661
747
908
731
728
Rs. per
lira.
600
597
602
609
610
600
600
651
754
872
718
702
16,850
17,400
18,300
18,425
19,150
20,300
19,350
19,050
21,500
20,383
20,350
20,350
700
715
776
746
764
793
729
715
745
738
724
727
684
702
723
691
709
730
667
644
693
687
670
662
Rs.per£. Rs. perfr.
15,050
15,025
15,025
15,166
15,100
15,087
15,075
16,565
New
York.
Buenos
Aires.
Rs. per Rs. per padollar. per peso.
3,121
3,120
3,118
3,162
3,162
3,100
3,180
3,105
3,800
4,610
3,747
3,713
3,603
3,730
4,030
3,932
4,043
4,286
4,033
4,050
4,501
4,279
4,285
4,278
1,782
1,786
1,696
1,679
1 795
1776
1*740
1,758
820
FEDERAL RESERVE BULLETIN.
AUGUST,
1920.
Exchange rates on foreign centers at Rio de Janeiro, 1911-1919—Continued.
London.
d. per
milreis.
1916.
January
February .
March
April
May.
June
July
August..
September
October
November
December
lift
.
13&
Hfl
12TS
12H
12*1
II 3
1917.
January..
February
March.
April
May.
June
July.
August
September...
October
November.
December. .
January...
February.
March..
April.
May
June
July
August.
September
October..
November
December
..
nS
llfl
*
13-H
13$
12H
12$
12ff
13M
1918.
.
.
.
.
Rs.per£. Rs.perfr.
733
759
733
736
738
702
702
700
702
719
725
742
lira.
655
671
646
669
699
656
655
639
644
655
649
654
21,100
20,800
21,300
21,300
19,300
19,900
19,750
20,150
20,300
20,000
20,850
20,950
733
732
742
742
706
666
653
684
688
684
686
661
628
613
591
575
588
546
521
549
540
526
508
482
4,263
4,259
4,332
4,328
4,031
3,800
3,766
3,918
3,957
3,945
3,925
3,804
,781
,900
j 935
,900
,755
740
1,712
1,756
1,745
1,730
1,810
1,836
21,000
20,700
20,700
21,300
22,000
22,100
24,650
24,050
24 700
454
449
442
450
444
435
442
471
688
642
641
597
3,726
3,765
3,827
3,860
3,935
3,907
4,021
4,171
4,188
4,066
4,040
3,752
1,765
1,693
1,690
1,733
1,770
1,780
1,813
1,870
1,890
133
21,250
22,700
23,000
23,050
22,650
22,850
20,700
21,000
21,0.50
20,300
20,200
20,000
699
718
715
679
615
578
567
505
506
475
444
333
602
616
613
574
497
472
463
437
429
412
372
293
3,797
3,910
3,882
4,016
3,680
3,645
3,6S3
4,073
4,03S
3,965
3,904
3,706
1,735
1,760
1,750
1,750
1,646
1,615
1,580
1,772
1,715
1,675
1,677
1,615
20,050
20, 550
20,700
333
278
276
275
222
216
3,656
3,909
3,915
1,600
1,735
1,732
I2fi
13i
13ft
14" 11
August.
September
October
November.
December
14H
141 9
.
.
.
Rs. per Rs. per paper peso.
dollar.
1.776
4,298
1,855
4,473
3,310
1,805
j835
4,393
4,372
1,825
,740
4,164
,734
4,155
,709
4,120
1,722
4,141
744
4,188
4,215
tltt>
,800
4,325
20,350
21,250
20,950
21,050
20,775
19,800
19,866
19,950
19,800
19,750
20,450
21,212
I2i
July
.
1920.
January
February.
March
. . .
Buenes
Aires.
24,550
20,950
1241
1919.
Rs. per
New
York.
12f
1317
2219
121?
I2i
January..
February
March.. .
April.
May
June... .
Italy.
654
660
671
676
691
685
706
728
759
747
751
689
13-1-
.
Paris.
18a4
18H
1,832
1,705
AUGUST,
821
FEDERAL RESEKVE BULLETIN.
1920.
Assets and liabilities of the Banco do Brasil on Dec. 31, 1913, Nov. 30, 1914, and Dec. 31, 1915-19iy.
[In 1,000 paper milreis.]
1919
ASSETS.
Government securities in guaranty or reserve fund.
Loans in current accounts
Bills discounted
Bills receivable
Foreign and domestic credits
Due from agents in, Brazil and in Europe
Bank stock
Other stock
Stock in liquidation
Bank buildings and furnishings
Various accounts
Cash in the vault
Total
13,631
30,648
50,875
4,597
12,647
36,440
36,108
4,152
4,686
33,703
16,330
5,504
5,073
41,973
39,209
17,968
5,933
51,946
46,165
21,074
66,975
130,301
4,923
1,430
13,668
40,668
5,220
1,430
12,890
29,075
62,830
10,410
12,083
4,191
1,430
8,468
29,780
72,86$
10,490
12,663
3,628
1,435
23,276
40,639
227,415
268,261
189,495
45,000
3,925
8,280
57,834
74,997
122
6,499
45,000
4,291
54,410
53,548
6,022
281
80,394
1,201
8,889
8,668
2,786
5,359
8,889
44
596
5,443
5,339
97,044
10,490
11,677
3,438
1,435
33,765
31,409
8,978
110,551
169,520
83,159
89,321
191,467
10,490
4,425
2,492
1,663
110,123
76,482
8,266
123,146
113,779
96,550
86,701
125,446
10,490
2,704
5,463
2,307
182,526
69,152
269,222
314,376
858,671
826,530
45,000
4,902
69
57,789
696
197
2,061
4,607
1,350
8,889
45,000
5,509
36,884
53,511
1,237
1,128
1,320
8,277
1,207
8,889
45,000
6,139
19,217
60,706
1,389
1,459
45,000
7,386
52,701
119,376
12,395
1,664
72,994
13,193
2,471
8,889
45,000
8,865
23,788
119,222
17,922
1,519
38,420
18,115
1,513
8,889
604
1,800
57,983
651
1,800
100,331
686
1,800
144,791
796
2,250
523,823
8,427
7,980
826,531
LIABILITIES.
Capital paid in
Surplus
Deposits, not interest bearing
Deposits, interest bearing
Deposits, time
Current accounts
Due to agents in Brazil and in Europe
Bills payable, interest bearing
Government deposits, judicial
Government exchange account
Other Government deposits
Dividends, pavable, accumulated
Dividends, undivided
Various accounts
Pension fund
Profit and loss
*3,49i
Total.
227,415
3,548
3,478
4,594
749
1,800
508,933
4,766
6,354
189,495
269,222
314,376
858,671
"4," 029"
268,261
10,835
7,563
1,308
8,889
Principal assets and liabilities of the banks in Rio de Janeiro on Dec. 31, 1919.
[In 1,000 paper milreis.]
ASSETS.
Loan sin
from
Securi- Due
Bills dis- current Bills re- Securihead
held ties de- office
and
counted. ac- ceivable. ties
in trust. posited. branches.
counts.
London and Brazilian Bank (Ltd.)
London and River Plate Bank
British Bank of South America
Brasilianische Bank fur Deutschland..
Banco Hollandes da America do Sul...
Banco Allem&o Transatlantico
Banco Nacional Ultramarino
Banco Germanico
National City Bank of New York
Banco Espanol del Rio de la Plata
Bane* Portugues do Brasil
American Foreign Banking Corporation
Yokohama Specie Bank
Royal Bank of Canada
Banco do Brasil
Banco do Commercio
Banco da Lavoura e do Commercio do
Brasil
Banco Credito Rural
Banco Commercial do Rio de Janeiro..
Banco Mercantil
Banco da Provincia do Rio Grande do
Sul
Banco Nacional Brasiliero
Banco Pelotanse
Total foreign banks
1,636
2,911
5,392
3,813
1,845
989
8,214
1,239
9,821
1,914
7,178
1,814
3,030
1,918
113,779
5,127
12,763
10,777
17,703
4,122
19,596
2,831
53,180
5,280
44,376
1,879
46,061
7,717
107
3,054
123,146
2,941
21,467
21,198
20,829
4,639
28,325
929
27,639
5,480
34,680
2,796
24,226
3,763
445
3,320
96,550
1,657
9,316
23
6,578
35,896
2,004
322
7,808
14,982
580
4,405
3,527
18,413
6,191
5,404
5,719
4,615
4,284
2,497
3,250
8,887
51,714
200,727
Total domestic banks
Total domestic a n d foreign b a n k s . 252,441
16>, 586 115,917
4,584
89,987
56,647
9,788
2,852
99,278
574
8,381
66,598
4,823
82,187
1,795
917
135,540
60
3,311
18,751
7,640
12,452
21,246
36,564
8,172
23,073
7,101
131,767
10,516
15,442
14,722
295
4,353
212,147
1,854
196,721
5,255
97
97,435
59,934
878
90
23,521
39,122
27,594
265
52,999
67,764
6,285
1,492
!,290
15,921
32,990
1,453
15,312
218
2,817
229,446 199,736 218,646 481,344
165,821 121,353 282,369 356,355
395,267 321,089 501,015 837,699
312,094
238,633
550,727
SecuriMortties
owned on real
by the estate.
bank.
Cash.
11,832
6,482
12,119
3,757
4,262
3,<12
1,205
23,768
4,720
190
1,545
1,397
5,743
*796"
110
498
1,205
37,671
38,876
1,096
1,096
11,933
2,001
19,765
11,728
13,683
4,193
2,167
4,025
69,152
4,139
Various
accounts.
Total
assets.
907
199,859
689
144,268
130,089
4,947
2,931
53,148
2,095
191,965
4,522
29,410
145,051
335,688
2,523
28,447
5,784
328,380
773
32,318
52,069
295,464
1,146
36,666
29
6,141
4,321
21,088
187,988 1,120,686
482
86,299
1,666
50
5,572
26,316
7,399
93
2,765
7,037
51,092
2,240
110,187
200,929
11,645
1,634
2,225
1,559
549
406
71,065
58,437
33,766
110,959 227,787 1,832,931
122,398 208,278 1,734,701
233,357 436,065 3,567,632
822
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
Principal assets and liabilities of the banks in Rio de Janeiro on Dec. 31, 1919—Continued.
LIABILITIES.
Securities Due to
Capital
Sight
Time deposited head
Various Total
paid in. Surplus. deposits. deposits. in guar- office and
liabilities
anty. branches
London & Brazilian Bank (Ltd.)
London & River Plate Bank
British Bank of South America
Brasilianische Bank fiir Deutschland
Banco Hollandes da America do Sul
Banco Allemao-Transatlantico
Banco Nacional Ultramarino
Banco Germanico
National City Bank of New York
Banco Espanol del Rio de la Plata
Banco Portugues do Brasil
American Foreign Banking Corporation
Yokohama Specie Bank
Royal Bank of Canada
Banco do Brasil
Banco do Commercio
Banco da Lavoura e do Commercio do Brasil.
Banco Credito Rural
Banco Commercial do Rio de Janeiro
Banco Mercantil
Banco da Provincia do Rio Grande do Sul...
Banco Nacional Brasiliero
Banco Pelotanse
Total foreign banks ...
Total domestic banks .
13,334
1,500
",889
15,000
2,000
3,675
3,000
2,205
3,082
800
25,000
4,613
Total foreign and domestic banks .
15,345
14,825
14,422
4,488
27,179
2,666
26,290
6,501
50,499
3,015
1,000
3,933
45,000
7,000
5,000
1,322
9,000
4,990
8,864
285
521
248
141
736
2,000
344
88,031
74,312
3,015
11,139
162,343
14,154
39,200
2,824
1,170
5,945
144,529
9,266
3,143
98
14,241
40,740
10,655
10,215
211,354
232,887
444,241
11,099
5,104
19,702
2,120
2,343
1,325
30,089
3,553
5,915
7,890
4,341
31,623
7,633
42,531
7,993
140,914
22,884
2,241
20,739
3,016
3,002
38,420
1,656
8,011
132,502
94,571
78,574
17.279
125,828
9.883
66;598
10,303
116,867
5,508
159,826
7,074
121
3,417
304.557
64,983
28,557
265
81,713
116,607
27,552
44,519
9,743
11,420
32
6,643
24,026
199,859
144,268
22,353
130,089
612
9,920
53,148
2,992
191,965
4,228
29,410
167,180
335,688
28,447
1,445
328,380
2,747
32,318
435
295,464
47,585
1,103
36,666
155
6,141
4,089
21,088
543,279 1,120,686
1,763
86,299
13,871
51,092
307
2,240
4,235
110,187
1,949
200,929
2,740
71,065
1,327
58,437
9,369
33,766
109,035
100,856
828,351
678,496
304,275
58,171
288,870 1,832,931
578,840 1,734,701
209,891 1,506,847
362,446
867,710 3,567,632
14,271
2,691
18,597
313
679
702
36,037
1,346
857
35,907
18,698
Principal assets and liabilities of the banks in Sao Paulo on June 30, 1919.
[In 1,000 paper pesos.)
ASSETS.
Due
Due
Due SecuriColfrom
Current from from
lateral head
Bills Bills accounts, domes- foreign
Bills
ties
held
office, Other
disreceiv- guar- secured
tic
Cash. against branches,
corre- held
counted. able. anteed. and
corre- spondin
adand
other. spond- ents. trust.
vances. agenents.
cies.
Banca France*© e Italiana per V America del Sud
Banco Commercial do Estado de Sao
Paulo
Banco de Credito Hypotecario e Agricola do Estado de Sao Paulo
Banco de Sao Paulo
Banco do Commercio e Industria de
Sao Paulo
,
Banco Naoional da Cidade de Nova
York
Banco Nacional Ultramarino
Banque Franchise pour le Bresil
Banque Italo-Belge
Brasilianische Bank fur Deutschland-.
British Bank of South America (Ltd.).
London and Brazilian Bank ( L t d . ) . . .
London and River Plate Bank (Ltd.)
Total
39,541
39,151
21,206
36,691
24,988
22,317
40,943
37,530
9,168
11,964
619
8,390
40
10,670
38,300
7,983
7,358
52,988
34,434 204,750
7,446
8,409
457
1,683
39,541
2,140 42,974
27,964 29,997
17,890
249 88.321
3,992
Total
assets.
513,416
1,693
214,848
7,109
2,111
153,898
45,567
82,160
45,760
5,732 33,279 39,502
5,681
276,295
21,81C 19,012
44,052 55,908
3,563
5,338
14,203 26,823
4,423
988
9,065
6,002
18,576 31,487
15,135
6,452
15,883
57,861
10,371
18,877
2,503
8,239
20,259
3,554
246 40,193 7,726
429
2,606 15, 948 21,740 15,224
2,712 2,125 10,349
12,719 1,197 6,329 12,964
65
900 14,150 5,825
304
5 14,414 9,122 11,211
....
49,890 14,694
31,024 2,780
3,305 2,671
18,284 104,218
1,212
991
26,343 2,651
1,900 1,665
1,707
610
7,060 1,084
1,367
181
126,928
358,905
38,179
128,121
33,116
67,565
159,125
64,876
207,063 205,233 310,464
303,811
81,057
81,208 173,639 2,180,839
56,823
7,657
23,064
1,518
6,015
697
6,886
16,075
2,667
"i'ne"
75,591 446,445 183,741 111,597
823
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
Principal assets and liabilities of the banks in Sao Paulo on June 30, 1919—Continued.
LIABILITIES.
Paid in
capital.
Banca Francese e Italians per PAmerica
del Sud
Banco Commercial do Estado de Sao
Paulo .
Banco de Credito Hypotecatio e Agricola do Estado de Sao Paulo
Banco de Sao Paulo
Banco do Commercio e Industria de Sao
Paulo
Banco Nacional da Cidade de Nova
York
Banco Nacional Ultramarino
Banque Francaise pour le Bre"sil
Banque Italo-Belge
Brasilianische Bank fur Deutschland.
British Bank of South America (Ltd.)
London and Brazilian Bank (Ltd.)
London and River Plate Bank (Ltd.)...
Total
7,500
Demand
deposits.
149,549
Time
Due to
deposits
head
and
office,
Bills
deposits branches, payable.
payable
and
upon
agencies.
notice.
22,186
Deferred
credits.
204,750
63,978
60,519
513,416
1,272
68,908
22,317
17,672
214,848
619
1,043
88,361
19,047
28,684
3,141
153,898
45,567
909
82,160
40,636
18,207
276,295
11,463
21,055
59,204
77,648
18,399
37, 983
18,573
31,627
81,377
39,191
21,816
3,563
10,667
988
7,826
3,248
148,227
860
9,012
3,077
815
24,277
15,389
126,938
358,905
38,179
128,121
33,116
' 67,565
159,125
64,866
827,228
172,410
333,128
2,180,839
2,496
2,438
19,171
12,000
68,880
4,628
3,188
5,000
33,029
14,231
17
3,105
20,000
102,170
12,213
2,033
42,285
1,422
2,786
1,494
3,676
11,220
80
13,783
16,458
7,113
34,450
893
11,034
7,149
4,060
2
398
500
15,389
49,834
4,822
24,690
1,650
12,092
35,047
5,613
58,715
516,996
107,145
116,548
526
3,000
2,000
5,527
Due to
correspond- Guaranents,
domestic tees.
and
foreign.
38
55
33
3,006
6,441
457
48,142
Other
liabilities.
Total
liabilities.
Assets and liabilities of domestic banks in Brazil on Dec. 31, 1913-1918.
[In 1,000 paper milreis.]
1913
1914
1915
1916
1917
180,286
236,571
63,237
264,549
282,939
169,215
66,850
97,768
106,0G0
56,328
195,081
214,579
82,214
408,235
310,145
140,082
68,956
107,719
138,258
45,887
168,990
214,547
75,592
353,020
334,505
148,283
82,801
110,914
156,619
49,058
234,016
272,158
109,652
406,090
386,104
183,360
85,132
120,523
175,071
66,248
284,224
334,103
132,702
407,992
495,892
260,217
89,744
132,395
203,852
77,345
391,918
442,868
187,112
438,745
537,403
438,777
108,878
128,050
215,147
95,752
1,543,982
1,711,156
1,514,329
2,038,443
2,418,466
2,98-1,650
165,164
39,136
310,205
99,619
653,193
131,554
24,630
120,603
174,507
40,507
214,499
151,597
895,145
163,497
4,634
114,892
173,898
43,925
191,576
144,580
827,873
128,216
4,469
179,792
177,002
49,405
306,792
231,913
956,092
78,486
4,209
234,184
190,590
54,412
422,199
210,817
1,075,728
154,384
9,189
301,144
227,128
66,150
578,925
294,032
1,155,127
297,472
3,555
362,261
1,543,982
1,711,156
1,511,329
2,038,443
2,418,466
2,984,650
1918
AS3ETS.
Bills discounted
Loans in current accounts
Bills receivable
Securities held in trust
Securities deposited
Due from branches and correspondents.
Securities owned
Mortgages on real estate
Cash..
Various assets
Total assets..
LIABILITIES.
Capital paid in
Surplus
Demand deposits
Time deposits
Securities in trust deposit,
Due to branches and correspondents..
Mortgages on real estate
Various liabilities
Total liabilities.
824
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
Assets and liabilities offoreign banks in Brazil on Dec. 31, 1913-1918.
[In 1,000 paper milreis.]
1913
1914
1915
1916
1917
114,164
203,741
269,945
322,037
414,837
157,136
67,058
177,250
214,021
299,346
469,297
154,881
74,231
174,613
208,793
291,477
591,448
214,541
97,602
190,226
241,835
296,417
616,365
212,541
108,212
20,284
173,253
50,901
184,564
92,817
164,793
90,311
134,312
218,463
242,153
297,676
631,075
228,919
1,335
183,352
79,017
173,912
358,767
370,655
380,061
798.704
323,324
1,435
277,193
130,358
1,589,177
1,606,007
1,832,484
1,279,996
2,014,302
2,814,409
1918
ASSETS,
Bills discounted
Loans in current account
Bills receivable
Securities held in trust
Securities deposited
Due from branches rmd correspondent?
Securities owned
Cash
Various assets
Total assets..
LIABILITIES-
Capital paid in
Surplus
Demand deposits
Time deposits
Securities in trust deposits
Due to branches and correspondents.
Various liabilities
Total liabilities.
GENERAL STOCK OF MONEY IN THE
UNITED STATES.
Developments in the money situation in the
United States since 1917 are shown in the subjoined tables and charts. The amount and distribution by classes of the general stock of
money is shown by five bars in the chart for
five significant dates in connection with the
war, namely, July 1, 1914, before the outbreak of the"war; April 1, 1917, about the time
of the entry of the United States into the war;
April 1, 1918, about the time of the adoption
of the so-called Pittman Act, under whose provisions large amounts of silver were exported to
theOrient; June 1,1919, immediately before the
removal of the gold embargo; and July 1, 1920.
The changes in our stock of money caused
by the war and by the inauguration of the
Federal Reserve System are clearly shown in the
bars. Between the outbreak of the war and
April, 1917, our stock of gold increased by 1.2
billions as the result of favorable trade balances and payments in gold by foreign governments for munitions and supplies purchased in
America. Between April, 1917, and June, 1919,
comparatively little change in the stock of gold
is shown, because the entry of the United
States into the war stopped the inflow of gold
from the Allies, since the United States supplied them with goods on credit, and also
stopped its outflow, as in the autumn of 1917
an embrago was placed on gold exports. When
this embargo was removed on June 9, 1919,
considerable amounts of gold began to leave
60,439
61,892
66,664
72,874
161,932
153,679
865,823
162,952
181,230
174,732
109,145
842,293
196,815
173,008
248,307
128,780
990,883
168,740
229,110
268,755
117,799
1,029,950
182,265
238,433
76,439
412
290,141
147,791
.1,054,720
232,602
212,197
86,734
654
480,428
205,825
1,346,204
346,190
348,374
1,589,177
1,606,007
1,832,484
1,279,996
2,014,302
2,814,409
the country in settlement of trade balances
with the Orient and South America, and the
stock of gold on July 1, 1920, was 2,688 millions
or 404 millions less than before the removal of
the embargo.
The stock of silver, which remained steady
at between 560 and 570 millions until the Pittman Act was passed, shows a decline of about
% 260 millions in the following year and a further
decline of about 40 millions since June 1, 1919,
the stock on July 1 of this year being about
269 millions. Subsidiary silver shows a steady
but comparatively moderate increase throughout the period.
United States notes remained constant at
347 millions, while national-bank notes fluctuated slightly and aggregated on July 1, 1920,
about 32 millions less than the 1914 total.
Two kinds of Federal Reserve currency, Federal Reserve notes and Federal Reserve Bank
notes, make their appearance first in the bar
for July 1, 1917, and show a constant and rapid
growth from that time to the present, when
the total stock of the former is about 3,406
millions and that of the latter about 201 millions
To sum up, between 1914 and 1920 the total
stock of money in the United States increased
from 3,736 to 7,887 millions. This increase of
4,151 millions is the result of a net addition of
897 millions to the stock of gold, of 76 millions
to the stock of subsidiary silver, and of the introduction of 3,607 millions of Federal Reserve
currency, offset by losses of about 297 millions
in the stock of silver and of about 32 millions
in the stock of national-bank notes.
825
FEDEKAL RESERVE BULLETIN.
AUGUST, 1920.
Another table with illustrative chart shows
data for the first of each month from April,
1917, to June, 1920, regarding the amounts of
money held by the Treasury and by the Federal
Reserve Banks and the amounts held outside,
i. e., in the tills of the banks and of industrial
and commercial establishments, also in the
pockets of the people. The latter amounts
are shown above the zero line on the chart,
and the amounts held by the Treasury and
the Federal Reserve Banks are shown below
that line, the total shaded area thus representing the entire stock of money in the
country. The money outside the Treasury
and the Federal Reserve Banks is divided
into two classes—Federal Reserve notes and
all other money. It will be noted that during
the 40 months covered by the chart the money
outside of the Treasury and the Federal Reserve
Banks increased, with seasonal fluctuations,
from 4,101 millions to 5,381 millions, or by
about 1,280 millions. During the same period
Federal Reserve note circulation increased
from 357 to 3,121 millions, an increase of
2,764 millions, while all other money in circulation declined from 3,744 to 2,260 millions, a
decrease of 1,484 millions. I t is apparent,
therefore, that of the 2,764 millions of new
Federal Reserve notes more than one-half,
1,484 millions, took the place of other money in
circulation, while less than one-half, 1,280
millions, represents the net addition to the
circulating medium. Of the money displaced
from actual circulation gold (including gold
certificates) and silver (including silver certificates) constitute the major portion.
It will be noted below the zero line that gold
held by the Treasury and by the Federal
Reserve Banks increased from 1,099 millions
on April 1, 1917, to 2,012 millions on July 1,
1920, an increase of 913 millions, while other
money so held increased from 113 millions to
494 millions, an increase of 381 millions.
It appears, therefore, that of the total increase in the stock of money from April 1,
1917, to July 1, 1920, amounting to 2,575
millions, slightly more than one-half (1,295
millions) represents additions to the money
held by the Treasury and by the Federal
Reserve Banks, while slightly less than onehalf (1,280 millions) represents additions to
actual circulation.
General stock of money in the United States.
[In thousands of dollars.]
J u l y 1,
1914.
Federal Reserve V,ank notes
United States notes
National bank notes
Federal Reserve notes
Sutsidiary'silver
Silver
*
Gold
Total all money
-
,
....
Apr. 1,
1917.
Apr. 1,
1918.
June 1,
1919.
Julyl,
1920.
182,316
565,834
1,890,678
11,226
346,681
717, 563
383,147
196,317
568,270
3,088,905
11,662
346,681
720,920
1,563,969
225,972
568,270
3,042.708
175,220
346,681
722,765
2,702,716
243 680
308,979
3,092,038
201,226
346,681
719,038
3,405,877
258,048
268,799
2,687,513
3,736,181
5,312,109
6,480,182
7,592,079
7,887,182
346,681
750,672
826
FEDERAL, RESERVE BULLETIN.
AUGUST, 1920.
Money held in Treasury and Federal Reserve Banks and outside.
| In thousands of dollars.]
Money held in United States Treasury
as assets of the Government and in
Federal Reserve Banks.
Date.
(First of the month figures.)
1917.
April
May
June
July
August
September.,
October
November..
December..
Gold and
gold certificates.
All other
money.
Total.
Money held outside United States Treasury and Federal Reserve Banks.
Federal
Reserve
notes.
All other
money.
Total.
1,098,953
1,173,455
1,150,515
1,403,734
1,475,903
1,453,383
1,521,557
1,625,647
1,715,509
112,180
124.291
122,072
130,818
168,348
160,258
150,335
162,743
179,432
1,211,133
1,297,746
1,272,587
1,534,552
1.644,251
i; 613,641
1,671,892
1,788,390
1,894,941
357,239
421,175
463,509
508,077
534,833
595,658
701,093
858,297
1,043,483
3,743,737
3,696,040
3,689,322
3,437,381
3,334,209
3,344,362
3,269,280
3.177,167
3,087,704
4,100,976
4,117,215
4,152,831
3,945,458
3,869,042
3,940,020
3,970,373
,035,464
,131,187
1,770,348
1,854.734
1,884,613
1,929,750
1,970,827
2,030,285
2,085,071
2,133,808
2,166,018
2,173,362
2,205,477
2,218,799
230,266
311,945
273,440
283,631
259,960
301,834
289,416
311,446
274,291
291,659
319,043
320,793
2,000,614
2,166,679
2,158,053
2,213,381
2,230,787
2,332,119
2,374,487
2,445,254
2,440,309
2,465,021
2,524,520
2,539,592
1,227,553
1,210,964
1,320,432
1,431,856
1,525,355
1,577,437
1,711,,509
1,855,351
2,090,806
2,365,006
2,531,813
2,607,438
3,028,031
2,893,960
2,873,063
2,834,945
2,784,813
2,705,452
2,656,230
2,594,485
2,561,840
2,560,981
2,533,840
2,522,547
,255,584
,104,924
,193,495
,266,801
,310,168
,282,889
,367,739
,449,836
^925^987
5,065,653
5,129,985
2,207,895
2,264,87S
2,277.797
2,314,540
2,323,406
2.352,893
2,295,174
2.262,946
2,227,597
2,195,399
2,177,024
2,117,618
467,759
477,711
437,083
431,240
445,752
430,273
450,954
468,054
483,049
508,523
510,627
493,303
2,675,654
2,742,589
2,714,880
2,475,780
2,769,158
2,783,106
2,746,128
2,731,000
2,710,646
2,703,922
2,687,651
2,610.921
2,631,977
2,443,357
2,475,284
2,502,622
2,521,144
2,506,177
2,494,051
2,503,571
2,561,703
2,669,732
2,738,914
2,840,305
2,473,163
2,425,683
2,376,136
2,338,351
2,324,447
2,302,736
2,34S,295
2,290.545
2,291,356
2,289,243
2,294,996
2,331,918
5,105,140
4,869,040
4.851,420
4;840,973
4,845,591
4,808,913
4,842,346
4,794,116
4,853,059
4,958,975
5,033,910
5,172,223
2,091,054
2,055,735
2,007,045
2,000,056
1,981,490
1.989,763
2,011.967
558,257
579,060
521,406
487,749
483,592
461.620
494,362
2,649,311
2,634,795
2,528,451
2,487,805
2,465.082
2,451,383
2,506,329
2,987,225
2,844,891
2,909,690
3,032,401
3.062,455
3,101,432
3,121,242
2,324,784
2,265,083
2,278,171
2,240,940
2,225,417
2,251,714
2,259,611
5.312,009
5,109,974
5,277.861
5,273,341
5,290,872
5,353,146
5,380,853
1918.
January
February...
March
April
May
June
July
August
September..
October
November..
1919.
January
February...
March
April
May
June
July
August
September.,
October
November..
December..
1920.
January..
February.
March
April
May
June
July
AUGUST, 1920.
827
FEDERAL RESERVE BULLETIN.
GENERAL STOCKOfMONEY INTHE UNITED STATES.
__
1914-1920.
B B Silver
^ ^
^M Subsidiary Silver
H I Mt£u>nal$aitiejrotes.
i H U.S. Mfes.
JULr/,/314.
AWL U917.
junei,i9ie.
REMOVAL 0f
60LP£MBAR60.
AmL!,!918.
(PtTTMANACT)
JULY 1,1920.
MONETHELD IN TREASURY AND FEDERAL RESERVE BANKS.
ALSO MONEY HELD OUTSIDE, I91F-I920.
^^^ H H (Sold, uiJrcasury and fJt.JBanJ&.
tefl Other Money uiJrcasary and FJl.Slante.
f
FSt^JfoCesheld, outside.
%%%% OtherMoney held outside.
828
FEDERAL RESERVE BULLETIN.
AUGUST., 1920.
EARNINGS AND EXPENSES OF FEDERAL
RESERVE BANKS.
and the system as a whole the ratios of surplus
to subscribed capital stand as follows:
Total earnings of the Federal Reserve Banks
for the six months ending June 30, 1920, were
$81,778,352, compared with $46,690,577 for the
corresponding period in 1919, while total current expenses for the first six months of the
present year were $13,195,241, compared with
$9,061,746 in 1919. Current expenses for the
six-month period under review include $10,714,924, expenses of operation proper; $1,285,438,
the cost including expressage, insurance, and
other expenses incident to the issue and
redemption of Federal Reserve currency;
$473,678, taxes on Federal Reserve Bank note
circulation; $680,281, the cost of furniture and
equipment bought during the period, and
$40,920, miscellaneous minor expenses. Current expenses shown are exclusive of the expenses of the fiscal agency departments, which
are treated separately, being reimbursable by
the Government.
During the first six months of the present
year the Federal Reserve Banks, assisting the
Government in its fiscal operations, expended
a total of $3,397,148, compared with $11,119,274 during
the corresponding period in 1919.
There wTas also due to the banks from the
Treasury at the beginning of the year a total
of $3,587,167, disbursed by the banks during
the past calendar year. Reimbursements received by the banks since January 1, 1920,
totaled $5,568,914, leaving thus a reimbursable
balance on June 30 of $1,415,401.
Current net earnings of the banks, i. e., the
excess of earnings over current expenses, totaled
$68,583,111, or at the yearly rate of 151.2 per
cent on an average paid-in capital of $91,165,000, compared with 92 per cent for the corresponding period in 1919, and 55.9 per cent in
1918. After crediting $343,667 direct to profit
and loss the banks had available for dividends,
surplus, and franchise taxes a total of $68,926,778. Out of this total came dividends at the
annual rate of 6 per cent for the six months,
$2,734,959. Of the remainder, $6,603,738 was
carried to profit and loss, and $44,625,563 to
surplus; moreover, the New York bank, whose
surplus is in excess of 100 per cent of its subscribed capital, in accordance with amended
section 7 of the Federal Reserve Act, reserved
$14,962,518 as a franchise tax to the Government. For each of the Federal Reserve Banks
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Per cent.
82.0
104.0
78.5
67.7
83. 6
93.3
90.0
Per cent.
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
69.1
79.2
97.4
55.4
90.8
System
87.1
Of the total earnings for the six months of
the present year about 78.7 per cent, as against
82.1 in 1919, came from discounts, largely war
aper; bills purchased in open market, largely
ankers' acceptances, contributed 15.6 per cent
of the total earnings, as against 11 per cent in
1919; United States securities, largely Treasury
certificates, 4.3 per cent, as against 5 per cent
for the first half of 1919. Combined earnings
from these three sources account for about 99
per cent of the six-months' earnings of the
banks, the balance being made up of net earnings from bank transfers, penalties and interest on deficient reserves, collection charges,
profits on sales of foreign coin, and sundry
minor profits.
Of the total expenses of operation of the
banks proper, exclusive of their fiscal agency
departments, $5,455,812, or nearly 51 per cent,
as against 45 per cent in 1919, went as salaries
to the clerical staff. This amount is exclusive
of $313,777, composed chiefly of the amount of
extra pay for overtime work and $60,211, the
premium paid by the banks for life insurance
of the employees. Salaries of bank officers
totaled $881,364, or 8.2 per cent of the banks'
operating expenses for the six months of the
present year, as against 9.8 per cent in 1919.
rrinting and stationery account for 5.7 per cent
of the total expense of operation, and postage
and expressage for 4.6 per cent. Contributions
of the banks for the support of the Federal
Reserve Board totaled $519,257, or 4.8 per cent
of the operating expenses, compared with 4.5
per cent in 1919.
Rent paid for the first six months of the
present year totaled $361,385, or about onethird more than for the first six months in 1919.
In addition, the banks show an increase for the
present year of $3,269,063 in their investments
in bank premises. All of them own either all
or a part of the premises occupied by them
as banking quarters, or else have purchased
ground on which they propose to erect permanent bank buildings for their own use.
E
Earnings and expenses of each Federal Reserve Bank for the six months ending June 30, 1920.
EARNINGS.
Boston.
New York. Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago.
St. Louis.
Minneapolis.
Kansas
City.
Dallas.
San
Francisco.
Total.
to
o
Discounted bills
$4,466,423 $21,120,722 $5,417,649 $4,367,998 $2,691,248 $2,864,646 $10,556,549 $2,821,065 $1,958,250 $2, 946,393 $1,817,658 $3,300,769 $64,329,370
288,451
119,937 1,694,833
253,363 1,754,868
212,929
758,291 5,097,152
137,747
123,425
Purchased bills
53,802 2,229,694 12,724,492
139,122
277,359
194,951
237,877
351,268
159,367
503,943
94,631
273,868
United States securities
981,798
140,092
3,519,091
164,815
1
39,912
161,468
30,523
1,750
132,056
Transfers, net earnings
447,825
85,616
Deficient reserve penalties (includ48,881
100,054
34,066
71,549
78,174
44,109
45,065
ing interest)
21,618
25,756
85,202
35,276
643,396
53,646
606
643
3,552
58,932
13,235
11,748
Sundry profits
7,265
114,178
165
39
128
13,188
4,677.
i, 429, 589 3,219,518 3,334,673 13,051,929 3,285,758 2,254,172 3,427,266 2,179,049 5,834,579 81,778,352
5,488,886 27,336,778 5,936,155
Total earnings.
CURRENT EXPENSES.
Expenses of operation:
Assessments, account expenses
of Federal Reserve Board
Federal Advisory Council (fees
and traveling expenses)
Governors' conferences (including traveling expenses)
Federal Reserve Agents' conferences (including traveling expenses)
SalariesBank officers
Clerical staff
Special officers and watchmen
Allother
Life-insurance premiums (employees' group insurance).
Directors' fees
Per diem allowances
Traveling expenses.
Officers'• and
nd clerks'
«' ' • traveling
•
expenses
Legal fees
Rent
Taxes and fire insurance
Telephone
Telegraph
Postage
Expressage
Insurance and premiums on
fidelity bonds
Light, heat, and power
Printing and stationery
Repairs and. alterations
Currency shipments to and from
member and nonmember
banks and between the Federal Reserve Bank and its
branch or branches
Currency shipments (other than
Federal Reserve and Federal
Reserve bank notes) to and
from Washington or a subtreasury
Allother
Total expenses of operation...
$38,666
$168,682
$41,828
$46,555
$25,531
$20,302
$66,764
$19,520
$16,607
$25,329
$16,167
252
700
297
767
380
607
617
600
415
260
400
147
112
122
109
214
243
109
141
484
$33,306
$519,257
391
878
3,183
6,234
140
375
58,450
349,323
177,731
1,708,367
60,010
374,022
71,907
359,923
43.135
260^10
77,572
205,456
105,835
771,192
57,100
274,767
33.755
1*5,475
48,768
300,992
55,125
297,783
91,976
408,202
881,364
5,455,812
8,753
3,945
77,621
78,533
31,681
40,045
13,400
48,834
6,279
13,928
7,508
10,613
41,589
53,485
9,324
12,429
6,834
7,146
12,967
12,670
7,737
15,936
13,026
16,213
236,719
313,777
480
2,300
1,267
12,493
11,890
6,267
1,610
460
950
2,519
1,745
350
1,322
1,795
2,395
2,663
7,927
2,420
510
1,851
3,150
3,215
1,040
1,680
1,094
1,970
330
819
7.138
3,340
3,710
2,534
2,812
1,200
445
1,380
8,263
3,180
418
939
60,211
36,865
11,275
17,426
8,787
1,252
2,264
6,746
2,200
350
722
5,235
1,923
32,422
963
5,812
4,926
31,866
439
8,362
8,324
144,168
552
15,380
21,138
56,104
2,116
2,702
1,272
8,180
9,822
7,521
4,728
26,149
266
30,049
872
3,993
11,954
35,507
704
9,043
570
4,132
5,177
1,497
9,946
29,404
573
6,955
1,928
9,150
2,586
1,666
23,144
24'442
954
18,764
3,750
68,211
129
8,988
26.749
58,123
5,232
14,783
1,500
22,007
1,707
3,025
20,782
40,430
1,052
6,809
1,375
9,129
92
1,438
4,053
28,031
6,426
11,081
1,500
19,633
192
2,372
13,601
55,127
1,095
16,670
1,250
7; 451
2,074
1,833
23,274
32,468
IS, 548
13,453
1,960
6,853
4,360
4,407
30,805
37,883
2,684
122,644
25,352
361,385
28,526
57,932
195,100
455.534
40^089
2,607
7,634
31,198
13,798
1,279
118,996
30,678
31,604
3,985
55,017
7,492
22,499
2,617
51,928
9,371
1,938
3,785
27,957
8,831
12,315
3,237
34,977
2,584
32,133
10,825
88,356
48,575
10,789
3,121
35,222
4.762
9,628
23,710
2,467
19,870
2,753
40,312
6,343
3,765
2,607
30,921
8,760
22,763
4.415
76,394
38,686
183,709
52,258
614,988
168,837
45,126
46,066
34,936
20,144
11,380
19,746
41,261
12,636
4,632
12,335
12,456
15,954
276,672
20,217
28,594
• 67,019
86,362
15,891
17,987
19,995
18,124
10,616
9,215
9,431
20,355
14,082
21,906
8,104
43,431
12,576
20,994
222,754
365,769
791,575
787,394
489,153
503,946
13,403
15,565
583,718
6,861
15,464
2,859,110
24,559
67,772
1,555,850
334,701
640,394
612,988
i Debit.
872,196 10,714,924
00
to
CO
Earnings and expenses of each Federal Reserve Bank'for the six inonths ending June SO, 1920—Continued.
OO
CO
CURRENT EXPENSES—Continued.
Boston.
Federal Reserve currency (original
cost, including shinping chanrp^..
Miscellaneous charges account Federal Reserve currency
Taxes on Federal Reserve Bank
note circulation
Furniture and equipment
Bank premises
New York. Philadelphia.
$130,110
14,132
Total current expenses
$187,672
$110,632
Cleveland.
Richmond.
Atlanta.
Chicago.
St. Louis.
Kansas.
City.
$53,971
$68,440
$193,474
$95,015
$16,026
6,216
7,212
6,184
10,382
15,463
1,633
74,969
173,821
31,717
24,500
62,203
14,427
20,505
2,040,213
780,899
387,292
770,187
17,842
8,378
42,000
9,764
9,113
95,393
89,695
49,990
40,167
90
41,351
51,623
20,991
38,311
26,654
24,219
889,018
3,249,712
1,000,832
1,026,538
609,638
629,443
Credits to profit and loss on account
of—
Amounts previously deducted
from current net earnings for
assessment account expenses
Federal Reserve Board, Jan.June, 1920
All other, net
38,666
15,586
168,682
346
41,828
104
46,555
116,691
25,531
1181
Net credits to profit and loss
54,232
169,028
41,932
29,864
25,350
11,011,716 2,504,859
121.4
118.0
20,302
1985
66,764
11,093
19,520
16,607
19,317
65,671
19,520
244,410
713, 738
296,248
138,672
107,725
469,091
2,354,236
513,667
249,6-56
261,822
6,223,602 4,263,754 4,623,000 2,246,902 2,355,000
14,962,518
11,077,387 2,524,379
3S2,404
124,543
1,069,498
239,984
9,625,485 2,159,852
16,607
Dallas.
San
Francisco.
Total.
$37,393
$115,104
3,278
3,278
8,730
102,728
41,724
49,872
20,826
33,449
20,853
86,652
473,678
680,281
40,920
$34,919
1,866,880 2,657,079
173.7
Net amount available for dividends,
surplus, etc
4,654,120 24,256,094 4,977,255 5,432,915 2,635,230 2,724,547
218,423
443,570
3,992,127
Minneapolis.
$139,954
Current net earnings..
4,599,868 24,037,066 4,935,323 5,403,051 2,609,880 2,703,230
Ratio of current net earnings to
121.8
110.0
113.6
151.5
127.0
203.6
average paid-in capital, per cent..
Dividends paid.
Carried to profit and loss
Carried to surplus.
...
Reserved for franchise tax
o
707,934
$1,182,710
1,103,535 13,195,241
1,471,115 4,731,044 68,583,111
128.1
83.5
482
16,167
i133,960
482
i 117,793
1
156.8
151.3
33,306
13,869
493,928
1150,261
19,437
343,667
1,883,487 2,657,561 1,353,322 4,750,481 68,926,778
95,441
125,089
178,805
253,247
1,609,241 2,279,225
106,285
181,981 2,734,959
445,458 6,603,738
124,704
1,122,333 4,123,042 44,625,563
14,962,518
w
i Net debit.
i—i
FISCAL AGENCY DEPARTMENT DISBURSEMENTS OF EACH FEDERAL RESERVE BANK AND AMOUNTS REIMBURSED DURING THE 6 MONTHS ENDING
JUNE 30, 1920, ALSO BALANCES REIMBURSABLE BY THE UNITED STATES TREASURY ON JULY 1, 1920.
Boston.
Total disbursements during the six
months ending June 30,1920
Amounts reimbursable Jan. 1, 1920...
Total
Reimbursements received since Jan.
1,1920
Balance reimbursable July 1,
1920
New York. PhiladelCleveland.
phia.
$234,925 $867,101
977,835
185,777
420,702 1,844,936
$206,683
117,817
$228,884
330,386
Richmond.
Atlanta.
Chicago. St. Louis.
Minneapolis.
Kansas
City.
Dallas.
$262,453
252,823
$131,741
121,787
$565,173
532,481
$151,267
106,457
$121,595
129,285
$203,653
407,176
$128,550
213,594
San Francisco.
Total.
$295,123 $3,397,148
211,749 3,587,167
324,500
559,270
515,276
253,528
1,097,654
257,724
250,880
610,829
342,144
506,872,
6,984,315
335,307
1,553,129
277,605
436,305
486,985
195,175
832,594
203,866
200,237
465,741
308,256
273,714
5,568,914
85,395
291,807
46,895
122,965
28,291
58,353
265,060
53,858
50,643
145,088
33,888
233,158
1,415,401
Earnings and current expenses of each Federal Reserve Bank, by months, from January to June, 1920.
EARNINGS.
Boston.
January.
February
March
April
May
Total.
New York. PhiladelCleveland.
phia.
$783,325 $3,999,906 $894,031 $912,535
885,683 4,266,985
932,022 l,003,«6
963,600 4,791,127 1,031,375 1,151,285
907,418 4,433,053 1,007,745 1,126,698
922,195 4,858,822 1,060,427 1,151,006
1,026,665 4,986,885 1,010,555 1,084,439
5,488,886 27,336,778
Richmond.
Atlanta.
$493,729
503,739
576,205
535,380
555,193
555,272
$463,201 $1,607,501
496,878 1,804,334
582,599 2,251,441
553,332 2,381,120
629,890 2,480,203
608,773 2,527,330
5,936,155 6,429,589 3,219,518 3,334,673
San Francisco.
St. Louis.
Minneapolis.
Kansas
City.
Dallas.
$465,699
495,848
586,861
572,925
603,925
555,500
$339,915
320,334
352,255
387,158
421,323
433,187
$515,580
489,680
569,608
595,980
639,643
616,775
$314,948 $879,796 $11,670,166
883,027 12,378,494
296,338
928,564 14,134,762
349,842
378,544 1,042,771 13,922,124
401,237 1,112,401 14,841,265
988,020 14,831,541
43S,140
13,051,929 3,285,758 2,254,172
3,427,266
Chicago.
2,179,049 5,834,579
Total.
81,778,352
CURRENT EXPENSES.
January..
February.
March i...
April
May 1
June
Total.
$115,388
123,185
159,170
137,591
149,965
203,719
889,018
$439,637
445,486
721,094
492,397
482,593
668,505
$117,685
133,845
137,748
119,258
141,449
350,847
$105,973
134,500
214,047
148,765
155,356
267,897
3,249,712 1,000,832 1,026,538
$67,618
78,743
110,233
94,458
91,604
166,982
$72,436
92,044
125,740
87,465
85,633
166,125
$265,718
260,031
381,891
300,494
351,337
480,742
$110,124
111,134
125,331
121,742
117,661
194,907
$50,784
56,116
60,173
54,653
56,178
109,388
$101,222
110,495
144,918
145,338
118,192
150,022
629,443
2,040,213
780,899
387,292
770,187
$112,650
115,914
155,847
138,922
138,825
441,377
$1,657,057
1,764,094
2,468,803
1,949,747
2,007,547
3,347,993
707,934 1,103,535
13,195,241
$97,822
102,600
132,612
108,664
118,754
147,482
1
Increases shown for the month of March are due to the payment of additional compensation to employes, and for the month of June to special charges on account of cost of Federal Reserve currency and furniture and equipment, also to additional compensation paid to employes.
i
00
CO
832
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
shown in the table below, together with estimates of production in 1919 and 5-year averForecasts of crop production issued by the ages for 1915-1919.
Bureau of Crop Estimates, United States Department of Agriculture, as of July 1, are
July Crop Report by Federal Reserve Districts.
Production of corn, wheat, cotton, oats, and hay, by Federal Reserve districts—July 1, 1920, forecast of the Bureau of Crop
Estimates.
[In thousands of units of measurement.]
Federal Reserve district.
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco.
Total...
32,897
58,841
194,147
195,343
250,162
886,088
421,391
211,129
392,546
150,641
7,332
456
11,546
24,269
34,788
35,891
6,676
65,803
55,837
209,535
245,270
16,285
103,244
480
12,493
25,922
63,748
37,094
10,326
112,202
108,022
135,094
300,994
33,605
101,008
380
10,404
23,344
48,051
41,952
10,830
83,392
78,328
209,823
217,430
19,771
88,356
10,890
23,945
34,217
35,891
6,676
50,018
55,004
8,379
224,357
15,504
53,364
2,778,903 2,917,450 2,809,413
809,600
940,988
832,061
518,245
7,055
34,729
55,446
187,846
180,805
230,761
859,627
398,851
241,114
402,781
170,709
9,179
Federal Reserve district.
Total
Spring wheat (bushels).
Average Forecast Estimate Average Forecast Estimate Average
Forecast
Forecast Estimate Average
1915- for 1920. for 1919. for 1915- for 1920. for 1919. for 19151915- for 1920. Estimate
for 1919. for1919.
for 1920. for 1919. for1919.
1919.
1919.
10,276
41,089
66,444
212,297
188,994
240,315
927,852
380,722
242,363
372,870
225,743
8,485
Cotton (bales).
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
,
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Winter wheat (bushels).
Total wheat (bushels).
Corn (bushels).
456
656
324
571
480
750
316
1,034
350
63
271
107,021
5,757
284,531
32,707
61,075
10,054
23,281
47,780
41,952
10,830
70,743
77,937
13,753
201,404
19,228
52,027
15,785
833
201,156
20,913
781
49,880
19,140
1,001
129,337
16,463
898
39,933
12,649
391
196,070
16,026
543
36,329
731,636
568,989
291,355
209,352
263,072
11,743
25,606
62,714
37,094
10,326
93,062
Oats (bushels).
Average Forecast Estimate
Forecast Estimate for
1915- for 1920. for 1919.
for 1920. for 1919.
1919.
2,079
2,751
2,372
2,816
2,040
3,044
1,935
860
3,779
i 180
832
3,097
i 117
711
3,588
77
211,566
211,030
2 1^403
Hay, tame and wild (tons).
Average
Forecast Estimate for
1915for 1920. for 1919.
1919.
10,957
44,130
25,518
84,240
25,635
32,546
572,006
70,007
2S4,134
185,475
53,782
47,026
4,160
5,664
2,939
5,463
4,088
4,194
4,912
7,073
3,155
6,089
4,916
4,272
4,882
6,686
3,266
6,410
4,036
. 3,350
15,899
7,117
9,054
13,367
1,419
11,449
18,629
8,124
17,245
19,907
2,309
12,035
18,563
7,498
16,626
17,969
1,562
12,452
1,322,065 1,248,311 1,435,456
84,813
108,666
103,300
12,600
42,149
24,742
71,522
26,826
29,101
484,323
67,302
289,700
186,366
41,419
46,015
12,123
31,856
23,214
70,279
26,397
29,008
461,082
63,595
208,857
182,677
99,004
40,219
1
In addition, the following amounts were estimated grown in Lower California (Mexico): 1920, 91,000 bales; 1919, 52,000 bales,
a Cotton grown outside of cotton belt included as follows: 1920, 11,000 bales; 1919, 7,000 bales; 1915-1919 average, 8,000 bales.
Forecasts of corn production show an aggregate for this year of 2,779 million bushels, or
138 millions less than in 1919, a reduction of
4.7 per cent from last year's production and
of 1.1 per cent from the five-year average.
The wheat crop is expected to amount to
about 810 million bushels, an improvement of
30 million bushels over the June estimate, due
to the better prospects both for winter wheat
and spring wheat, the forecast, however, being
still 131 millions, or 13.9 per cent, below last
year's estimate, but only 22 millions below the
five-year average.
Cotton prospects are good, the forecast of
11,566,000 bales being over one-half million
bales above last year's estimate and 163,000
bales above the average for the five years
1915-1919. The crop of oats is expected to be
better than last year by 74 million bushels,
but still below the five-year average by 113
million bushels, while the forecast of the hay
crop places it at 85 million tons, 24 millions'
below the 1919 production and 18 millions
below the average for the past five years.
833
FEDEE VL KESERVE B U L L E T I N .
AUGUST, 1920.
State Banks and Trust Companies Admitted.
The following list shows the State banks and trust companies which have been admitted to membership in the
Federal Reserve system during the month of July. One
thousand four hundred and one State institutions are now
members of the system, having a total capital of $494,909,578,
total surplus of $491,135,450, and total resources of
$9,840,912,065.
CONVERSION.
The Northern Savings Bank, Fargo, N. Dak., into the Northern National Bank.
CONSOLIDATION.
The Savings Union Bank & Trust Co., a member bank, the Mercantile
Trust Co., a nonmember, and the Mercantile National Bank, San Francisco, Calif., have consolidated under a new charter as the MercantileTrust Co., San Francisco, which company has been admitted to membership.
VOLUNTARY LIQUIDATION.
Scandinavian American Bank, Astoria, Oreg.
Capital.
Surplus. Total resources.
Acceptances to 100 Per Cent.
District No. S.
Northeastern Trust Co., Reading, P a . . . $250,000
$25,000
$688,937
District No. 5.
United Loan & Trust Co., Lynchburg,
300,000
Va
Petersburg Savings & Trust Co., PetersL
,
000,000
burg, Va
200,000 1,655,840
100,000 6,290,654
District No. 6.
25,000
60,000
The Bank of Pittsview, Pittsview, Ala..
The Peoples Bank, Carrollton, Ga
Wartrace Bank & Trust Co., Wartrace,
Tenn
2,500
27,000
25,000
139,966
594,065
47,949
District No. 7.
First State Savings Bank, Mount Carroll, 111
50,000
50,000
636,997
50,000
75,000
200,000
322,210
5,000
37,750
585,607
50,000 3,368,836
District No. 9.
Fanners & Merchants State Bank,
Eureka, Mont
,
25,000
13,000
451,388
50,000
35,000
714,265
40,000
4,000
146,717
District No. 10.
The Stockgrowers Bank, Evanston,
Wyo
Uinta County State Bank, Mountain
View, Wyo
District No. 11.
The Celina State Bank, Celina, T e x . . . .
35,000
Dallas County State Bank, Dallas, Tex.. 250,000
State Bank & Trust Co., Houston, Tex. 200,000
25,000
First State Bank, Leakey, Tex
First State Bank, Matador, Tex
25,000
Citizens State Bank, Maypearl. Tex
25,000
Bank of Commerce & Trust Co., Mercedes, Tex
50,000
Farmers Guaranty State Bank, North
Zulch, Tex
25,000
Merchants State Bank, Port Arthur,
Tex
100,000
First State Bank, Roaring Springs. Tex.
25,000
Central Trust Co., San Antonio, T e x . . .
Guaranty State Bank & Trust Co., 1,000,000
Waxahachie, Tex.
200,000
Farmers State Bank, Georgetown, Tex.
50,000
248;333
7,500
105,000 1,613,411
2,495,286
71,809
12,500
403,610
15,000
241,642
5,000
187,045
158,657
40,000
1,705,708
15,000
150,000
189,192
15,000 9,880,315
1,640,670
50,000
666,658
District No. It.
2,500
114,875
Farmers State Bank Tetonia. Idaho
25,000
The Rideout Bank, Marysville, Calif
250,000 308,930 5.843,632
Security Trust Co., Bakersfield, Calif... 500,000 220,000 7,129,622
Mercantile Trust Co., San Francisco,
calif
: 4,000,000 3,000,000 70,758,510
WITHDRAWAL.
The Lincoln County Bank, Merrill, Wis., has withdrawn from membership.
New National Bank Charters.
The Comptroller of the Currency reports the following
increases and reductions in the number and capital of
national/banks during the period from June 26 to July 30,
1920, inclusive:
Banks.
District No. 8.
Monroe County Bank, Brinklev, Ark... Bank of Russellville, Russellville, Ark..
Cass Avenue Bank, St. Louis, Mo
Since the issuance of the July BULLETIN the following
banks have been authorized by the Federal Reserve Board
to accept drafts and bills of exchange up to 100 per cent of
their capital and surplus:
Citizens National Bank, Baltimore, Md.
Maryland Trust Company, Baltimore, Md.
Commercial National Bank, Sherman, Tex.
Lincoln Trust Co., New York City.
New charters issued to
34
With capital of
Increase of capital approved for
91
With new capital of
Aggregate number of new charters and
banks increasing capital
125
With aggregate of new capital authorized
Number of banks liquidating (other than
those consolidating with other national
banks under the act of June 3,1864)
7
Capital of same banks
Number of banks reducing capital
0
Reduction of capital
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks
under the act of June 3, 1864)
7
Aggregate capital reduction
Consolidation of national banks under the
act of Nov. 7, 1918
0
Capital
The foregoing statement shows the aggregate of increased capital for the period of
the banks embraced in statement was
Against this there was a reduction of capital owing to liquidation (other than for
consolidation with other national banks
under the act of June 3, 1864), and reductions of capital of
Net increases
$2,190, 000
14, 345, 000
16, 535, 000
2, 380, 000
0
2, 380, 000
0
16, 535, 000
2, 380, 000
14,155, 000
Commercial Failures Reported.
The tendency toward increase in the country's business
mortality has recently become more marked, and the 384
commercial failures reported to R. G. Dun & Co. in three
weeks of July considerably exceed the 287 defaults of the
834
FEDERAL RESERVE BULLETIN.
same period of 1919. During June, the latest month for
which complete statistics are available, there were 674
insolvencies for $32,990,965 of liabilities, whereas the 485
reverses of June, last year, represented a low month record
up to that time, and the indebtedness involved by these
failures was less than $9,500,000. Separated according to
Federal Reserve districts, the June returns disclose more
insolvencies than in that month of 1919 in 10 of the 12 districts, the exceptions being the first and third districts,
and in the latter district a difference of only one failure
appears. The statement of liabilities, moreover, reveals
smaller amounts than in June, 1919, only in the third and
fifth districts, a number of defaults of unusual size accounting for large increases in several instances.
Failures during June.
Number.
Liabilities
District.
1920
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth .
Eleventh
Twelfth
Total
55
164
26
65
37
30
69
34
21
22
35
116
674
1919
61
104
27
44
30
20
56
15
10
9
31
78
485
1920
1919
$1,783,684
16,218,230
219,092
975,973
314,156
459,562
2,742,755
2,283,002
306,250
281,255
278,668
7,128,338
$765,929
4,040,301
295,163
597,244
1,001,355
302,869
933,669
351,947
67,969
31,832
210,444
883,999
32,990,965
9,482,721
Fiduciary Powers Granted to National Banks.
The applications of the following banks for permission to
act under section lL-k of the Federal Reserve Act have
been approved by the Board during the month of July,
1920:
DISTRICT N O . 1.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
First National Bank, Bennington, Vt.
AUGUST,
1920.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, and receiver:
First National Bank, Henry, 111.
Executor, administrator, guardian of estates, assignee, and receiver:
First National Bank, Bancroft, Iowa.
DISTRICT N O .
10.
Trustee, executor, administrator, registrar of stocks and bends, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Lamar National Bank, Lamar, Colo.
Commercial National Bank & Trust Co., Emporia, Kans.
First National Bank, Lawton, Okla.
DISTRICT N O . 12.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
First National Bank, Pasoo, Wash.
National Bank of Tacoma, Wash.
PRINCIPAL BOOKS AND ARTICLES RELATING TO
BANKING AND CURRENCY RECEIVED AT THE
FEDERAL RESERVE BOARD LIBRARY DURING
THE MONTH ENDING JULY 15, 1920.
Alabama. Laws, statutes, etc.
Combined banking laws of the State of Alabama. In effect Jan. 1,
1920. 1919. 41 p.
Arizona. Laws, statutes, etc.
Banking laws of the State of Arizona. July 1,1919. 18 p.
Arnold, Julean.
. . . Salient facts about China. 1920. 8 p.
Brady, John E.
Digest of the Banking law journal . . . a classified digest of legal
decisions published in the Banking law journal, from the time of
. its foundation in 1889 to June, 1919. 1919. 408 p.
Carles. Frederick.
Essentials of investment; the analysis of a bond circular. 1919. 84 p.
Chamberlain, Lawrence.
Principles of bond investment. 1911. 551 p.
Conyngton, Thomas, and Louis Bergh.
Business law. 1920. 431 p.
Friedman, Elisha M.
International commerce and reconstruction. 1920. 432 p.
Hobson, J. A.
Taxation in the new state. 1920. 254 p.
Parker, William.
The Paris bourse and French finance; with reference to organized
speculation in New York. (Columbia University studies in
history, economics and public law, v. 89, no. 3.) 1920. 116 p.
Beichsbank. Statistische Abteilung. Berlin.
Die deutschen AbrechrmngsstelJen im Jahre 1919, auf Veranlassung
der Berliner A brechnungsstelle, bearbeitet in der Statistischen
Abteilung der Reichsbank. 1920. 55 p.
Spalding, William F.
A primer of foreign exchange. 1919. 107 p.
DISTRICT N O . 2.
Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics:
The Black River National Bank, Lowville, N. Y.
Suffern National Bank, Suffern, N. Y.
Trustee, executor, administrator, guardian of estates, assignee, receiver,
committee of estates of lunatics:
New York State National Bank, Albany, N. Y.
Jahrbuch fur Gesetzgebung, Verwaltung und Volkswirtschaft. Ed. by
Schmoller. Jahrgang 40-42 complete.
Maryland. Bank commissioner.
. . . Annual report . . . showing the condition of the State banks,
trust companies, and savings institutions for the period ending
February 1,1920.
BANK REPORTS, 1919.
DISTRICT N O . 4.
Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of luiiutics:
Citizens National Bank, Piqua, Ohio.
DISTRICT N O . 5.
Executor, administrator, registrar of stocks and bonds, guardian of
estates, assignee, receiver, and committee of estates of lunatics:
Commercial National Bank, Charleston, S. C.
DISTRICT N O . 6
Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics;
First National Bank, Carrollton, Ga.
DISTRICT N O . 7.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
First National Bank, Elmburst, 111.
The National Bank of Pontiac, Mich.
First National Bank, Antigo, Wis.
National Bank of Manitowoc, Wis.
Marine National Bank, Milwaukes, "Wis.
National Exchange Bank of Milwaukee, Wis.
American National Bank, Ripon, Wis.
Bank of Chosen, Seoul.
. . . Semi-annual report. . . 1919, 2d half.
Banque de France, Paris.
. . . Compte rendu au nom du conseil general de la banque et rapport
de MM les censeurs, 1919.
Commonwealth bank of Australia, Sydney.
. . . Aggregate balance sheet.. . 1919.
Nationalbankeni Kj0benhavn.
Nationalbankensregnskab f o r . . . 1918-19.
Nederlandsche bank, Amsterdam.
. . . Verslag door den president en door de commissarissen... 1919-20.
Norges bank, Christiania.
Regnskap . . . 1919.
Other bank reports.—Anglo-South American bank, limited, London.
Bank of Liverpool and Martins, limited, Liverpool. Bank of Montreal.
The Canadian bank of commerce, Toronto. Chartered bank of India,
Australia, and China, London. Comptoir national d'escompte de
Paris. Credit Lyonnais, Lyons. Hongkong and Shanghai banking
corporation, Hongkong. Ionian bank, limited, London. Kjobenhavns handelsbank i Kj0benhavn. London and River Plate bank,
limited, London. London joint city and midland bank, limited,
London. Manchester and Liverpool district banking company,
limited, Manchester. National bank of India, limited, London. The
State savings bank of Victoria, Melbourne.
N E W PERIODICALS.
Board of trade journal, London. Frankfurter zeitung, Frankfurt.
Living age, Boston. Plutus, Berlin.
AUGUST, 1920.
FEDEKAL EESERVE BULLETIN.
835
RULINGS OF THE FEDERAL RESERVE BOARD.
Acceptance of drafts drawn for the purpose of furnishing
dollar exchange.
Under the provisions of Regulation C, Series
of 1917, subdivision (B), it is provided that any
member bank desiring to accept drafts drawn
by banks or bankers in foreign countries for
tfie purpose of furnishing dollar exchange shall
first make application to the Federal Keserve
Board setting forth the usages of trade in the
respective countries in which the drawer banks
or bankers are located, and under the terms
of the law no member bank may accept such
drafts unless it is required by the usages of
trade in the country in which the drawer bank
is located.
If a national bank wishes to make such an
application with respect. to a country as to
which no previous application has been granted,
it should submit to the Board evidence that the
usages of trade in that country are such as to
require the drawing of drafts of this character.
The Board has heretofore ruled that there is.
nothing in the provisions of section 13 of the
Federal Reserve Act which can be construed to
ermit the acceptance by member banks of
rafts drawn merely for the purpose of correcting adverse exchange conditions. An application can not be granted, therefore, if it appears
that the drafts are to be drawn not because
the usages of trade so require but merely
because dollar exchange is at a premium in the
country where the drafts are to be drawTn.
This ruling, of course, has no bearing upon the
question of whether particular drafts are
eligible for acceptance by member banks under
those provisions of section 13 of the Federal
Reserve Act which relate to the acceptance of
drafts which grow out of transactions involving
the importation or exportation of goods.
S
LAW DEPARTMENT.
Agencies of national banks for purpose of accepting
drafts.
The following is a ruling made by the Comptroller of the Currency under date of July 16,
1920, in response to a request from the Governor of the Federal Reserve Board for an
opinion as to the right of a national bank
located in California to appoint an agent in
New York to accept, in behalf of the bank,
drafts drawn on it payable in New York and to
p ay such drafts out of the funds deposited in
N ew York under the control of the agent.
Receipt is acknowledged of your letter-of July 16, which
raises the question of the right of a national bank located
in California to appoint an agent in New York to accept
in behalf of the bank drafts drawn on it payable tii New
York and to pay such drafts out of the funds deposited in
New York under the control of the agent.
You state as this is a matter within the jurisdiction of
my office you would like to be advised as to the answer
which shall be made.
Frequent requests have been received from national
banking associations to establish agencies for the transaction of a part of their business at points other than the
banking house, and it has been the uniform practice of the
office to decline approving such requests.
In December, 1919, a national bank in New York requested to be authorized to establish an agency in that
city to receive deposits from its customers and accom-
panied the request with a brief of counsel insisting that the
establishment of such an agency would not be in violation
of the National Bank Act.
Notwithstanding previous rulings of the office, in view
of the urgent request of the bank and of its counsel, the
matter was referred to the Solicitor of the Treasury, and
under date of December 9, 1919, an opinion was received
from him stating that such action would be in violation
of the^National Bank Act, and that the request of the bank
could not be approved without legislative sanction.
Section 5190, U. S. R. S., provides in part that "the
usual business of each national banking association shall
be transacted at an office or banking house located in the
place specified in its organization certificate." This has
been construed by the Attorney General and by the Solicitor of the Treasury to mean one place or house.
It would perhaps not be questioned that accepting and
paying drafts is a part of the usual business of a national
bank, and it has been held in the case of Armstrong v.
Second National Bank (38 Fed., 883) that an arrangement
by the bank to provide for the cashing of checks drawn
upon it at any other place than its office or banking house
would be in violation of section 5190.
The same rule would seem to apply to the payment of
drafts as to the payment of checks.
It is also my opinion that it would be bad policy on the
part of a bank to authorize the accepting of drafte drawn
upon it by an agent authorized by power of attorney who is
not an officer of the bank.
For these reasons I am of opinion that the request of the
California bank should not be approved, and ii approved
would be in violation of section 5190, U. S. R. S.
836
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
WHOLESALE PRICES IN THE UNITED
STATES.
In continuation of figures shown in the July BULLETIN,
there are presented below monthly index numbers of
wholesale prices for the period July, 1919, to June, 1920,
compared with like figures for June of previous years;
also for July, 1914, the month immediately preceding the
outbreak of the great war. The general index number is
that of the United States Bureau of Labor Statistics. In
addition there are presented separate numbers for certain
particular classes of commodities, in accordance with
plans announced in previous issues of the BULLETIN.
In the construction of the index number for June, the
only change in the list of commodities has been the
omission of the quotations for pails and tubs. Index
numbers for June are provisional, due to the fact that
certain data were not received in time to render them
available for use in the ealculatiens.
For the first month since September, 1919, wholesale
prices show a decrease from the previous month. The
general index number o the Bureau of Labor Statistics
stands at 269 for the month of June, as compared with
272 for the month of May. While the index numbers for
the other two principal groups of commodities decreased,
the index number for the group of raw materials remains
unchanged at 260, showing an increase amounting to only
0.1 per cent. Diversity, however, is exhibited in the
changes in the numbers for the subgroups included under
this head. Increase is shown in the case ot animal products and mineral products from 179 to 186 and from 234
to 244, or 3.6 per cent and 3.9 per cent, respectively, the
latter being a new record figure. Among the commodities included in the former subgroup, decreases in the
prices of various classes of sheep and poultry, hides and
wool were more than offset by increases in the prices of
cattle, hogs, and silk. The increase in the index number
for the mineral products subgroup was due to increases
in the prices of various classes of bituminous coal and coke,
pig iron, and phosphate rock, which more than offset decreases in the prices of pig tin and zinc and sulphur. The
number for the subgroup of farm products decreased 4.1 per
cent, from the record figure of 314 to 301, due to decreases in
the prices of various grades of spring and winter wheat,
corn and barley, hay, flaxseed, and tobacco, which were
not offset by increases in the prices of oats, rye, and
bluestem wheat. An increase in the price of yellow
poplar was more than counterbalanced by decreases in
the prices of Douglas fir and plain white oak, the index
number for June standing at 363, which is 3 points, or 1
per cent, less than the May record figure.
The index number for the group of producers' goods
has decreased from the record figure of 271 to 265, or 2
per cent. Among the commodities included in the group,
increases in price occurred in the case of wood alcohol,
alum and glycerin, brick and lime, cottonseed meal,
lubricating oil and gasoline, and wood pulp, while decreases were noted for a more namerous list of commodities, including cotton and worsted yarns, chrome calf
leather, sugar, bran, oleo oil, rubber, hemp and jute,
steel plates, lath and shingles, linseed oil, rosin and turpentine, and soda ash.
An approximately equal decrease, namely, 2.1 per cent,
is noted in the index number for the group of consumers'
goods, which now stands at 279. as compared with the
record figure of 285 for the month of May. Decrease in
price occurred for an extended list of commodities, among
which may be mentioned various meats, such as bacon
and mess pork, lamb and mutton and poultry, granulated
sugar, wheat flour, butter, cheese and eggs, onions and
potatoes, oleomargarine and peanuts, cottonseed oil, boots
and shoes, print cloths, sheetings and shirtings, trouserings and carpets. Increases in price occurred chiefly in
the case of foodstuffs, and among such commodities were
included fresh beef and hams, beans, corn meal, glucose,
fresh milk at New York, canned corn, bananas, lemons,
prunes and raisins, and starch.
Index numbers of wholesale prices in the United States for 'principal classes of commodites.
[Average price for 1913= 100.]
Raw materials.
Year and month.
July, 1914
June, 1915
June, 1916
June, 1917
June. 1918
June, 1919
July, 1919
August, 1919....
September, 1919
October, 1919...
November, 1919.
December, 1919.
January, 1920...
February, 1920.
March, 1920
April, 1920
May, 1920
June, 1920
Farm
products.
102
107
111
229
234
25d
261
251
240
254
276
288
291
278
288
304
314
301
\nimal
products.
IOC.
102
122
166
203
217
233
235
215
212
212
209
213
206
200
196
179
186
Forest
products.
97
93
97
120
138
156
166
193
227
234
239
259
273
315
348
367
367
363
Mineral
products.
91
96
117
212
173
173
177
180
184
184
183
186
190
194
197
224
234
244
Total raw
materials.
100
113
187
192
203
214
218
216
220
226
233
239
240
247
260
260
260
All commodities
Producers' Consumers (Bureau of
goods.
goods.
Labor Statistics index
number).
93
98
142
196
195
196
202
212
212
211
216
228
245
246
246
263
271
265
103
100
117
178
199
217
230
241
226
228
239
242
259
256
203
280
285
280
100
100
119
185
193
207
219
222
221
222
230
238
248
248
253
266
272
837
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
In order to give a more concrete illustration of actual
price movements, there are also presented in the following
table monthly actual and relative figures for certain commodities of a basic character, covering the period July,
1919, to June, 1920, compared with like figures for June
of previous years; also for July, 1914, the month immediately preceding the outbreak of the great war. The actual
average monthly prices shown in the table have been
abstracted from the records of the United States Bureau
of Labor Statistics.
Average monthly wholesale prices of commodities.
[Average price for 1913=100.]
Corn, No. 3,
Chicago.
W h e a t , No. 1,
Cotton, middling, northern
spring,
New Orleans.
Minneapolis.
Wheat, No. 2,
red winter,
Chicago.
Cattle, steers,
good to choice,
Chicago.
Hides, packers,
heavy native
steers, Chicago.
Year and month.
July, 1914
June 1915 . .
June, 1916
June, 1917 . . . . . . .
June 1918
June, 1919
Julv, 1919
Augu st, 1919
Septe mber, 1919
Octot er, 1919
.. .
Nove tuber, 1919
Decernber 1919
Janua.rv. 1920
February 1920
March, 1920
\pril 1920 .
May, 1920
June, 1920 . .
Average
price per
bushel.
Relative
price.
Average
price per
pound.
$0.7044
. 7355
.7341
1.7119
1.5125
1. 7563
1.9075
1.9213
1.5410
1.3888
1.4875
1.4485
1. 4750
1.4125
1.5515
1.6913
1.9825
1.8*90
114
119
119
278
246
285
310
312
250
226
242
235
240
229
252
275
322
299
$0.1331
.0911
.1280
.2421
.3066
. 3185
.3377
.3125
.3078
.3538
.3963
.3990
.4035
.3944
.4060
.4144
.4038
4030
Hogs, light,
Chicago.
Relative
price.
105
72
101
191
241
251
266
246
242
279
312
314
318
311
320
326
318
317
Wool, Ohio, i - |
grades, scoured.
Average
price per
bushel.
Relative
price.
Average
price per
bushel.
Relative
price.
Average
price per
100
pounds.
Relative
price.
Average
price per
pound.
$0.8971
1.2869
1.1143
2.6935
2.1700
2.4575
2.6800
2.5250
2.5350
2.6250
2.8250
3.0300
2.9313
2.6875
2.7550
3.0063
3.0750
2.9000
103
147
128
308
248
281
307
289
290
301
323
347
336
308
315
344
352
332
$0.8210
1.2265
1.0413
2.6388
2.1700
2.3613
2.2580
2.2394
2.2385
2.2394
2.2881
2.4490
2.6338
2.4900
2.5000
2. 7725
2.9750
2.8950
83
124
106
268
220
239
229
227
227
227
232
248
267
252
253
281
302
294
$9.2188
8.9563
10.2625
12.5500
17.1750
15.4600
16.8688
17.6375
16.8050
17.5938
17.5000
17.0750
15.9375
14.9688
14.4000
13.9063
12.6000
15.0313
108
105
121
148
202
182
198
207
198
207
206
201
187
176
169
163
148
177
$0.1938
. 2325
. 2675
. 3300
.3300
.4075
.4860
.5200
.4638
.4820
.4688
.4100
.4000
.4025
.3640
.3613
.3538
.3410
Hemlock, N e w
York.
Yellow pine,
flooring,
New York.
Relative
price.
105
126
145
179
179
222
264
283
252
262
255
223
218
219
198
196
192
185
Coal, anthracite, Coal, bituminous,
stove, New York,
run of mine,
tidewater.
Cincinnati.
Year and month.
Average
price per
100
pounds.
Julv, 1914
.
June 1915
June 1916
June 1917
June 1918
June 1919
July 1919
Augc ist 1919
Septej m W , 1019
Octo ber 1919
Novemhpr 1919
December 1919
JanuP r v iQ?fi
Febr uarv 1920
Marc -> 1 Q 2 0
Anril 1920
May 1G20 .
June 1920
...
$8.7563
7.5781
9.3813
15.2125
15.5250
20.7800
22.3875
21.6125
18.2100
14.7250
14.1438
13.6800
15.1250
14.9813
15.5000
15.7125
14.7550
15.3500
Relative
price.
104
90
111
180
184
246
265
256
215
174
167
162
179
177
183
186
175
182
Average
price per
pound.
$0.4444
.5571
.6714
1.1000
1.4182
1.1818
1.2364
1.2364
1.2182
1.2361
1.2545
1.2545
1.2364
1.2364
1.2364
1.2000
1.1636
1.0000
Relative
price.
94
118
143
234
301
251
263
263
259
263
266
266
263
263
263
255
247
212
Average
price per
M feet.
Relative
price.
Average
price per
M feet.
Relative
price.
Average
price per
long ton.
Relative
price.
Average
price per
short
ton.
$24.5000
20.5000
101
85
43.0000
44.0000
44.0000
48.0000
53.0000
57.0000
57.0000
57.0000
57.0000
57.0000
177
182
182
198
219
235
235
235
235
235
68.0000
73.0000
78.0000
95.0000
100.0000
100.0000
112.0000
112.0000
139.0000
139.0000
160.0000
160.0000
160.0000
152
164
175
213
224
224
251
251
312
312
359
359
359
$4.9726
4. &300
5.3713
5.7884
6.3212
8.1174
8.1881
8.3145
8.4020
8.4135
8.4273
8.4098
8.4291
8.4118
8.4109
8.4368
8.9964
98
95
106
114
125
160
162
164
166
166
167
166
167
166
166
167
178
100
107
142
149
169
94
90
87
112
$2.2000
26.0000
34.5000
36.0000
41.0000
$42.0000
40.0000
39.0000
50.0000
6.0000
3.7500
4.0000
4.0000
4.0000
4.5000
4.5000
4.1000
4.1000
4.1000
4.1000
4.1000
5.5000
6.0000
6.0000
273
170
182
182
182
205
205
186
186
186
186
186
250
273
273
Relative
price.
838
A U G U S T , 1920.
FEDERAL RESERVE BULLETIN.
Average monthly wholesale prices of commodities—Continued.
[Average price for 1913=100.]
Coal, Pocahontas, Norfolk.
Coke, Connellsville.
Copper, Ingot,
electrolytic,
New York.
Lead, pig,
desilverized,
New York.
Petroleum, crude,
Pennsvlvania,
at wells.
Pig iron, basic.
Year and month.
Average
price per
long ton.
July, 1914
June 1915
June 1016
June, 1917
June, 1918
June, 1919
July 1919
August, 1919
September 1910
October, 1010
November 1919.
December 1919
January, 1920
February 1920
March, 1920
April, 1920
May, 1920
June, 1920
$3.0000
.
. ~.
Rela- Average Relative price, per tive
price. short ton. price.
Average
price per
pound.
$1.8750
77
2.6250
0.5O0O
6.0000
4.0000
4.0050
4.2188
4.5020
4.8250
5.9375
6.0500
6.0000
6.0000
6.0000
10.5000
12.0000
14.3000
108
389
246
164
168
173
188
198
243
24S
246
246
246
430
492
586
$0.1340
. 1875
.2800
.3250
.2350
.1756
.2150
.2281
.2220
.2172
.2038
.1873
.1931
.1906
.1858
.1919
.1906
.1900
100
7.0000
4.2320
5.1400
5.1400
233
141
171
171
5.1400
4.6320
4.6320
4.6320
4.6320
4.6320
6.4800
6.4800
6.4800
171
154
154
154
154
154
216
216
216
Cotton yarns,
northern cones,
10/1.
Leather, sole,
hemlock No. 1.
Rela- Average
tive price per
price. pound.
Relative
price.
Average
price per
barrel.
Relative
price.
$0.0390
.0490
.0725
.1150
.0728
.0530
.0561
.0579
.0609
.0643
.0676
.0718
.0872
.08S1
.0923
.0896
.0856
.0848
S9
111
165
261
165
120
128
132
138
146
154
163
198
200
210
204
195
193
$1.7500
71
3.1000
1.0000
1.0000
1.0000
1.0000
t.2500
1.2500
1.4375
1.6000
5-0625
5.5125
6.1000
6.1000
6.1000
6.1000
127
163
163
163
163
173
173
181
188
207
225
249
249
249
249
85
119
178
207
149
112
137
145
141
138
130
119
123
121
118
122
121
121
Steel billets,
Bessemer,
Pittsburgh.
Steel plates,
tank, Pittsburgh.
Steel rails,
open hearth,
Pittsburgh.
Average Relaprice per tive
long ton. price.
$13.0000
12.5900
18.0000
48.7500
32.0000
25.7500
25-7500
25.7500
25 7500
25.7500
28.3125
24.6000
37.7500
42.2500
41.6000
42.5000
43.2500
44.0000
88
86
122
332
218
175
175
175
175
175
379
213
255
287
283
289
294
299
Worsted yarns,
2-32's crossbred.
Year and month.
July, 1914
June, 1915. .
June, 1916
June 1917
June, 1918.
June, 1919
July, 1919
August, 1919
September, 1919
October, 1919
November, 1919
December, 1919..
January, 1920
Februarv, 1920
March, 1920
April, 1920
May, 1920
June, 1920
Average
price per
pound.
Relative
price.
Average
price per
pound.
$0.2150
.1650
.2500
.3750
.6437
.5608
.5912
. 6130
.5903
.6111
.6648
.6986
.7271
.7465
.7549
.7784
.7672
.7299
97
75
113
169
291
253
267
277
267
276
300
316
329
337
341
352
347
330
$0.3050
.2950
.3700
.5800
.4900
.5300
.5300
.5700
.5700
.5700
.5700
.5700
.5600
.5700
.5700
.5700
.5700
.5700
Beef, carcass,
goo d native
steers, Chicago.
Relative
price.
108
105
131
206
174
188
1S8
202
202
202
202
202'
199
202
202
202
202
202
July, 1914
June, 1915
June, 1916
June, 1917
June, 1918
June, 1919
July, 1910.
August, 1010
September 1010
October, 1910
November, 1019
December, 1910
January 1920
February, 1320
March, 1920
April, 1920
May, 1920
June, 1920
$0.1350
.1253
.1415
.1615
.2338
.2025
.2075
.2350
.2275
.2290
.2350
.2350
.2320
.2125
.2050
.2090
.1950
.2225
Relative
price.
104
97
100
125
181
156
160
181
176
177
181
181
170
164
158
161
151
172
Average
price per
pound.
74
79
169
383
184
149
149
149
149
149
160
180
186
214
233
233
233
233
$0.0113
.0115
.0345
.0700
.0325
.0265
.0265
.0265
.0253
.0261
.0265
.0265
.0274
.0350
. 0365
.0375
. 0375
.0355
$19.0000
20.5000
43.5000
98.7500
47.5000
38.5000
38.5000
38.5000
38.5000
38.5000
41.3750
46.4000
48.0000
55.2500
60.0000
60.0000
60.0000
60.0000
Rela- Average
tive vhco per
price. long ton.
76
78
233
473
220
179
179
179
171
176
179
179
185
236
247
253
253
240
Relative
price.
Average
price per
pound.
$30.0000
100
$0.6500
35.0000
117
57.0000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
50.7500
54.5t)00
54.5000
54.5000
54.5000
54.5000
190
157
157
157
157
157
157
157
169
182
182
182
182
182
.8200
1.1000
1.5500
2.1500
1.6000
1.6000
1.6242
1.7500
1.7500
2.2000
2.2000
2.2500
2.2500
2.2000
2.2000
2.0000
2.0000
Coffee, Rio, No. 7.
Flour, wheat,
standard patents
(1918, standard
war),
Minneapolis.
Average
price per
pound.
Relative
price.
Average
price per
barrel.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
gallon.
Relative
price.
Average
price per
pound.
$0.0882
.0700
.0988
.1038
.0841
.2114
.2303
. 2150
.1663
.1650
.1697
.1518
.1628
.1478
.1500
.1514
.1559
.1498
79
63
89
93
76
190
207
193
149
148
152
136
146
133
135
136
140
135
$4.5938
6.5950
5.7625
13.893S
9.S25O
12.0125
12.1550
12.0063
11.6200
12.0313
12.9.500
14.0250
14.4438
13.5375
13.1650
14.2813
15.0313
14.1600
100
144
126
303
214
262
265
262
254
2G2
233
306
315
295
287
312
328
309
$0.1769
.1585
.1850
.2594
.2994
. 380(3
.3835
.3838
.3480
.2000
.2859
.2888
.2944
.3056
.3155
.3313
.3556
.3650
106
95
111
156
180
229
231
231
209
174
172
174
177
184
190
199
214
220
?0.1200
.1200
.1200
.1200
.1710
.2000
.2050
.2180
.2200
.2200
.2200
.2200
.2240
.2400
.2500
.2600
.2600
.2600
97
97
97
97
139
162
166
177
178
178
178
178
182
195
203
211
211
211
?0.0420
.0588
.0736
.0754
.0731
. 0882
.0882
.0S82
.0882
.0882
.0882
.1085
.1537
.1495
.1372
• 1919
.2247
.2120
Year and month.
Average
price per
pound.
Average Relaprice per tive
long ton. price.
Hams, smoked,
Chicago.
Illuminating oil,
150° fire test,
New York.
Relative
price.
84
106
142
200
111
206
206
209
225
225
283
283
290
290
283
283
258
258
Sugar, granulated,
New York.
Relative
price.
98
138
172
177
171
207
207
207
207
207
207
254
360
350
321
449
526
497
AUGUST, 1920.
FEDERAL KESERVE
839
BULLETIN.
inclusion of new stores' from time to time in
the reporting list.
In the following tables is given a summary
In district No. 11 inquiries made of several
of the results obtained during the past few stores in a number of lines brought the folmonths in districts Nos. 1, 2, 3, 4, 5, 6, 7, 10, lowing average results:
and 12, on the regular retail trade index form
from representative department stores. In June, 1920, retail trade, compared with May, 1920, and
June, 1919.
districts Nos. 1, 5, and 12 the data were re[+increase;
—decrease.]
ceived in (and averages computed from) actual
amounts (dollars). In districts Nos. 2, 3, 4,
5, 6, 7, and 10 the material was received in the
Selling atStocks
Compared
Sales.
end of
with—
price.
form of percentages, the averages for the cities
month.
and districts computed from such percentages
being weighted according to volume of business
Per cent. Per cent. Per cent.
May, 1920...
Same.
done during the calendar year 1919. For the Groceries
June, 1919...
+ 67
May, 1920...
+ 27
Same.
+10
month of June, the tables are based on reports Furniture
June, 1919...
+41
+12
+42
from 23 stores in district No. 1, 18 in district Shoes
May, 1920...
+ 1
-20
- 2
June,
1919...
+34
+15
+ 19
No. 2, 14 in district No. 3, 16 in district No. 4, Clothing
May, 1920...
-10
Same.
+ 10
June, 1919...
+32
-20
+27
9 in district No. 5, 11 in district No. 6, 7 in
May, 1920...
- 5
- 5
- 1
district No. 7, 11 in district No. 10, and 32 in Dry goods
June, 1919...
+44
+21
+ 8
May, 1920...
+ 6
Same.
Same.
district No. 12. For the earlier months the Hardware
June, 1919...
+37
+21
+ 3
number of stores varied somewhat, due to the
RETAIL TRADE.
Condition
of retail trade in Federal
Reserve districts
Nos. 1,2,
3, 4, 5, 6, 7, 10, and 12.
[Percentage of increase.]
Comparison of net sales with those of corresponding period previous year.
July 1,1919, to close
of—
District and city.
District No. 1:
Boston.
Outside
NoOcto- vember,
ber,
1919. 1919.
52.0
District
District No. 2:
New York City and
Brooklyn
Outside
DeFebApril, May, June,
cem- January, ruary, March,
ber, 1920.
1920. 1920. 1920. 1920.
1920.
1919..
42.3
41.9
33.2
43.5
15.4
36.1
38.9
29.4
16.8
26.0
19.4
25.5
27.8
28.5
42.1
34.8
18.3
37.5
18.5 20.7
—
28.0
49.2
54.6
29.9
22.2
17.6
28.6
14.2
District
District No. 3
District No. 4
District No. 5
District No. 6
District No. 7
District No. 10
District No. 12:
Los Angeles
San Francisco
Oakland
Sacramento
Seattle
Spokane.. .
Halt Lake City
District
:::::::
:::::::
*"48*2" **5i."7*
• Jan. 1,1920, to close of—
No- De- FebOcto- vemMarch, April, May, June,
ber, ber, cember, ruary,
1920. 1920. 1920. 1920. 1920.
1919. 1919. 1919.
33.0
36.3
38.5
24.9
41.6
30.7
36.4
26.1
33.1
37.2
32.5
31.6
27.5
24.7
30.5
25.3
30.0
25.8
26.2
:
66.6
50.4
15.0
22.4
41.1
22.8
26.4
32.3
64.8
15.8
35.4
28.4
37.5
45.5
23.1
27.4
65.2
24.6
12.4
18.4
3.9
23.4
33.3
19.6
50.7
31.3
11.0
31.0
49.7
10.9
34.3
31.5
21.4
24.3
59.6
12.9
49.7
39.8
59.3
38.1
35.0
33.6
35.3
30.1
32.7
31.7
57.0
34.9
33.7
33.8
:::::: ::::;:
20.3
36.0
5.3
26.2
38.2
12.1
29.9
57.4
26.9
20.5
33.6
8.8
22.0
43.5
24.9
30.9
32.1
9.3
28.1
49.6
21.2
31.0
34.6
11.4
29.3
58.7
17.9
"50." Y
110.6
92.3
68.5
69.2
5P.6
176.0
44.8
88.7
45.2
30.3
36.6
21.0
46.4
42.7
77.3
54.6
29.8
50.7
28.6
77.1
32.3
83.8
53.5
41.4
54.2
23.9
36.2
23.8
51.6
26.9
27.4
22.6
22.4
23.6
11.5
58.4
35.4
31.0
65.1
19.2
19.8
10.5
43.6
28.5
14.9
33.9
4.3
10.9
7.1
38.2
40.9
17.1
34.4
6.3
48.8
26.4
39.0
23.6
15.2
32.1
11.1
62.8
18.3
69.9
46.5
32.3
35.7
31.6
99.9
24.8
77.2 77.3
46.3 47.1
31.9 31.9
35.7 39.5
29.5 29.3
70.4 72.0
32.0 29.2
68.3
58.9
34.8
36.6
23.0
30.1
18.1
61.2
39.7
32.3
00.9
21.8
26.8
15.1
56.1 52.2
36.6 37.6
27.9 25.6
47.5 39.4
16.2 *13.9
r
23.1 29.1
12.8 46.4
49.8
35.3
23.2
38.3
13.4
35.7
14.7
82.0
46.1
50.7
51.7
31.1
37.8
13.8
31.2
27.8
46.9
47.5
46.5
41.0
36.9
33.2
47.0
34.7
840
FEDERAL. RESERVE BULLETIN.
AUGUST, 1920.
Condition of retail trade in Federal Reserve districts Nos. 1, 2, 3, 4, 5, 6, 7, 10, and 12—Continued.
[Percentage of increase.]
Stocks at end of month compared with—
Oct., Nov., Dec, Jan., Feb.,
1919. 1919. 1919. 1920. 1920.
District No. 1:
Boston
Outside
4.9
District
District No. 2:
Nen York City a nd
Brooklyn
Outside
15
1
. . . 14
In
District
5
4
6
9
11 9
19 5
2G.5
4.9
.3
15.3
13.8
17.5
9.9
11.9
4.0 13.4
2.8 11.8
15.6
15.1
16.1 15.1
7.8
10.2
3.7
12.9
15.5
11.9
8.4
27.9 1.3
9.3 U . 4
16.6
11.7
15.4
17.7
25.8
1 .4 15.0
16.1
13.4
7.0
12.3
11.6
14.1
4.7
10.1
5.4
7.3
i.l
3.0
13.0
il.O
19.2
15.0
7.8
3.1
45.2
43.2
44.5
43.8
43.8
36.3
25.2
29.6
38.0
42.8
41.7
44.3
41.4
36.4
44.0
49.6
69.6
60.6
53.8
51.6
47.9
51.7
45.5
38.4
68.6
53.6
49.1
43.2
9.9
16.4
48.6
57.0
24.3
56.1
51.5
41.1
64.9
38.9
25.7
63.9
59.5
29.9
39.9
43.3
30.4
57.0
67.1
50.2
49.7
40.7
26.7
53.3
57.2
47.2
77.1
39.6
58 3
62.2
35.2
61.8
53.8
63.3
64.9
60.7
34.4
29.4
55.5
39.0
65.0
54.9
29.7
34.1
46.7
59.6
62.9
58.5
33.9
3L4* *44.*5*
13.2 25.4
42 1
59.4
27.7
37.1
53.7
35.0
35.6
57.3
5 6 10 7 110 9
9.7
9.7
2 2 i 11.1 4.7
5.4
19.7 18.4
.2
3.7 16.1
6.5
"i*i8*9" "i*2.*6"
9.4
3.4 U5.6
28.5
48.4
58.0
56.5
52.6
52.5
6.5
42.7
San Francisco
Oakland
Sacramento
Seattle
Spokane
7.4
9.7
42.3
44.9
31 0 44 0
32.7 45.9
9.2 10.6
38.0
51.8
Percentage of average stocks at end of each month to average
monthly sales for same period.
7.5
U0.4
.
..
14.7
1.3
Mar., Apr., May, June,
1920. 1920. 1920. 1920.
10.9 15.2
13.8 13.7
38.1
37.5
--
District No. 12:
Jan., Feb.,
1920. 1920.
29.7
28.4
i
No. 3
No. 4
No. 5
No 6
No. 7
No. 10
Mar., Apr., May, June, Oct., Nov., Dec,
1920. 1920. 1920. 1920. 1919. 1919. 1919.
25.4
24.9
District
District
District
District
District
District
District
Previous month.
Same month previous year.
District and city
113.3
2.6
45.1
10.5
55.9
12 1
12.7
18.6
ii.*8*
10.9
14.0
78
37
6.1
6.5
1 .5
16.7
1.9
2.3
1 .5
2.1
16.1
1 5
16.5
1 .6
3.7
11.5
14.9
16.7
27.9 140.2 15.7
2.4
9.6
14.7
.0
18.8
1.4
15.2
12.6
0.1
18.7
14.4
13.0
Percentage of outstanding orders at end of month to total
purchases during previous calendar year.
Jan. 1,1920, to end of—
District and city. July 1,1919, to end of—
Oct., Nov., Dec
Oct.,
1919.
District No. 1:
Boston
Outside
Nov.,
1919.
367.4
„.
District
District No. 2:
New York City
and Brooklyn
Outside
.....
Dec,
1919.
Jan.,
1920.
Feb.,
1920.
Mar.,
1920.
Apr., Mav
June,
1920. 1920 •; 1920.
360.7
413.9
320.8
229.8
382.2
402.5
509.5
320.5
389.8
464.7
348.4
442. 5
339.2
431.7
382.1
306.0
385.5
389.9
405.2
366. 5
358.0
343.4
336.9
405.6
381.7
372.3
403.1
392.8
392. 4
415. 7
379.9
349.5
383.4
402.0
399. 4
369.9
380.0
3.%.* 3* 369.1
456.8 423.8
347.0
439.0
422.2
382.6
362.8
421. 5
357.5
362.3
407.0
298.6
337.6
332.5
272.1
305. 8
285. 4
328.3
353.7
468.3
494.9
610.7
390.7
492.3
585.2
District
District
District
District
District
District
District
No. 3
No. 4
No. 5
No. 6
No. 7
No. 10
District No. 12:
Los Angeles
San Francisco
Oakland
Sacramento
Seattle
Spokane
Salt Lake City....
District
495.6
442.8
558.3
355.9
422.3
459.3
485.6
453.0
559.1
339.3
432.0
462.4
463.1
424.3
403.1
600.2
422.7
405.2
490.6
378*6* 427* i
411.5 508.8
422.6
429.0
480.
469.
589,
533.
665*6" 542.6* 527*9* 539.
755.9 605.8 528.8 605.
418.3
477.5
581.6
534.7
515.3
456.0
1
4
8
4
7
4
508. 0
Decrease.
1919. 1919.
Jan., Feb. Mar., Apr., May, June,
191*)'.' 1920. 1920. 1920. 1920. 1920. 1920.
19 4
?4 R
13. 7
26.5
16.7
19.6
19.7
18.8
18.6
15.8
15.5
15.4
7.5
15.4
10.0
23. 1
24.0
19.6
18.7
15.7
12.7
12.3
22 8
22 9 IS 8
20.3
17 6 15 5
21.8 13.9
16 8
17.7
19.0
18.2
14.8
17.2
. . . . -• 21.0
27.9 24.8
18 6 19 4
20.4 16.9
20.9
29.7 31 4
14.6
23.5
34 8
12.1
20.1
31 2
18.0
17.6
13 2
9.9
20.6
31.9
5.4
19.3
16 2
9.7
17.0
19 5
25.3
29.7
23.9
26.2
26.0
... ...
... ...
... ... ... ....
18 1
481.3 45 .1
508.8 25 .8
573.8
531.3
524.6 *?5 i
579.4
j.6 8*
53.5
29.5
48. 1
28. 1
33.3
18.2
37.1
31.9
33.9
31.0
39.0
27.7
22
32 9
34. 5
18 4 22 6
37.2 40.6
17*6
34.7
".7 2 14 2* * 1.6 3
25. J
31.1
516.0
29.2
31.7
27.2
21. C
29 .6
20.0
11.4
8.
32.3
28.0
23.2
23.1
A U G U S T , 1920.
841
FEDERAL RESERVE BULLETIN.
crease in the exports of producers' and consumers' goods more than compensated for the
There is presented below a series of indexes decrease in raw materials. The index of goods
designed to reflect movements in foreign trade imported shows a very marked decline for the
of the United States, with fluctuations due to month of May. While all classes of goods
price changes eliminated. The commodities show a decrease, the largest decrease is seen in
chosen for these indexes are those for which consumers' goods.
prices are compiled by the Federal Reserve
The month of June, 1920, was marked by a
Board in the preparation of its international large increase in the imports of all classes of
price index. The list includes 14 of the most goods and a concomitant decrease in the eximportant imports the value of which in 1913 ports of all classes of goods. The increase
in
formed 40.6 per cent of the total import values imports was most marked in consumers7 goods,
and 29 of the most important exports the value although the increase in imports of proof which in 1913 formed 56.3 per cent of the ducers' goods and raw materials was considertotal export values. The list of the com- able. The decline of all classes of exports was
modities is given in the July BULLETIN. The shown, but the most marked decrease was in
month of May was marked by a decline in the consumers' goods.
exports of raw materials. However, the inFOREIGN TRADE INDEX.
Value of exports and imports of selected commodities at 1913 prices.
[ID thousands of dollars; i. e., 000 omitted.]
[Monthly average values, 1913=100.]
Imports.
Exports.
Raw materials
(12 commodities).
1913.
January
February
March
April
May
June
.
July
August
September...
October
November...
December...
Consumers'
goods (7 commodities).
Value.
Index
Index
Index
num- Value. num- Value. number.
ber.
ber.
100,027
71,074
61,681
71,446
68,856
46,963
51,325
74,«69
103,614
137,772
126,836
113,326
116.8
83.0
72.0
83.0
80.4
54.8
59 9
87-4
120.9
160.9
148.1
132.3
Year... 1,027,789
1919.
January
February
March
April
May
June
July
August
September..
October
November..
December..
84,066
58,488
57,659
65,112
67,595
94,660
71,918
81,302
70,209
70,240
99,589
89,585
Year..
910,423
1920.
January
February....
March
April
May
June
93,141
70,130
90,805
68,048
63,650
55,446
Producers'
goods (10 commodities).
11,762
12,266
11,836
14,128
11,661
11,612
11,109
11,547
10,622
12,608
9,987
10,053
101.4
105 8
102.1
121.8
100.6
100.1
95.8
99.5
91.6
108.7
86.1
86.7
30,715
30,790
28,698
28,708
29,923
28,242
27,686
29,370
32,190
34,612
31;246
33,089
100.0 139,191
100.0 365,269
98.2
68.3
67.3
76.0
78.9
110.5
84.0
94.9
82.0
82.0
116.3
104.6
159.0
125.9
139.3
166.9
137 7
247.1
146.1
168.8
167.0
145.2
135.7
113.9
18,444
14,598
16,161
19,356
15,972
28,658
16,943
19.578
19^ 365
16,844
15,741
13,208
88.6 214,868
108.7
81.9
106.0
79.4
74.3
64.7
15,647
14,198
17,279
17,063
17,546
14,663
56,748
53,338
61,585
80,639
58,731
95,917
50,531
49,548
43,108
45,983
46,473
43,563
154.4 686,164
134.9
122.4
149.0
147.1
151.3
126.4
35,406
41,645
56,428
51,689
62,457
46,117
100.9
101.2
94.3
94.3
98.3
92.8
91.0
96.5
105.8
113.8
102.7
108.7
Raw materials
Grand total
exports (29 com- (6 commodimodities).
ties).
Producers'
goods (6 commodities).
Value.
Index
number.
12,080
11,865
10,145
8,983
6,127
6,843
7,557
9,438
14,068
14,695
13; 892
19,028
107.6
105.7
90.4
80.0
54.6
60.9
67.3
84.1
125.3
130.9
123.8
169.5
94,961
91,348
94,048
87,984
76,839
73, 426
70,416
78, 855
91,793
69,868
73,710
91,320
114.6
110.2
113.5
106.2
92.7
88.6
85.0
95.1
110.8
84.3
88.9
110.2
100.0 134,721
100.0
994,568
100.0
12,115
12;056
21,768
13,222
15,949
12,208
21,555
17,525
20,779
17,198
17,060
14,831
107.9
107.4
193.9
117.8
142.1
108.7
192.0
156.1
185.1
153.2
152.0
132.1
96,280
107,783
139,937
145,911
172,318
142,853
166,701
131,973
191,424
170,820
171,038
140,077
116.2
130.0
168.8
176.0
208.0
172.4
201.1
159.2
231.0
206.1
206.4
169.0
145.7 1,777,115
178.7
159.2
126.9
171.6
190.1
98.5
163.0
229.6
228.4
258.7
227.2
159.2
195.0
Value.
Index
Index
Index
num- Value. num- Value. number.
ber.
ber.
142,504
114,130
102,215
114,282
110,440
86,817
90,120
115,786
146,426
184,992
168,069
156,468
111.6
89.4
80.1
89.5
86.5
68.0
70.6
90.7
114.7
144.9
131.6
122.5
50,336
45,175
46,079
42,785
38,111
32,793
31,681
35,194
42,588
36, 842
37.465
48', 886
123.8
1111
113.3
105.2
93.7
80.6
77.9
86.6
104.7
90.6
92.1
120.2
32,545
34,308
37,824
36,216
32,601
33,790
31,178
34,223
35,137
18,331
22,353
23,406
Consumers'
Grand total
goods (2 com- imports (14 commodities).
modities).
105.0
110.7
122.0
116.9
105 2
109.0
100.6
110.4
113.4
59.2
72.1
75.5
100.0 1,532,249
100.0 487,935
100.0 371,912
159,258
126,424
135,405
165,107
142,298
219,235
139,392
150,428
132.682
133,067
161,803
146,356
124.7 38,273
99.0 35,074
106.1 39,396
129.3 51,280
111.4 71,831
171.7 73,401
109.1 72,974
117.8 77,988
103.9 109,761
104.2 88,701
126.7 84,424
114.6 64,252
94.1
86.3
96.9
126.1
176.7
180.5
179.5
191.8
269.9
218.2
207.6
158.0
187.9 1,811,455
118.2 807,355
165.5 773,494
208.0 196,266
90,433
75,597
77,966
77,288
45,967
55,965
222.4 82,014
185.9 99,502
191.7 117,188
190.1 89,684
113.0 74,811
137.6 87,205
264.6
321.0
378.1
289.4
241.4
281.4
186.4
175.2
202.3
264.9
192.9
315.1
166.0
162.8
141.6
151.1
152.7
143.1
116.3
136.8
185.4
169.8
205.2
151.5
144,194
125,973
164,512
136,800
143,653
116,226
112.9
98.7
128.9
107.1
112.5
91.1
45,892
60,653
78,773
81,409
84,538
57,244
72,172
36,460
60,884
64,921
69,554
60,994
148.1
195.7
254.2
262.7
272.8
184.7
232.9
117*6
196.4
209.5
224.4
196.8
17,874
14,241
19,260
21,347
11,140
18,437
Value.
190,321
189,340
214,414
188,319
131,918
161,607
Index
number.
842
FEDEKAL RESERVE BULLETIN.
WHOLESALE PRICES ABIfOAD.1
Wholesale prices declined in the leading industrial countries of the world during June.
The revision occurred apparently without much
regard to the currency or fiscal conditions of
the countries concerned. Beginning with the
fall in the prices of nonferrous metals, silk, and
wool, the movement extended to other lines
as well. Foods and fuel have in general remained unaffected. The cause for the movement
is to be found partly in the restriction of credit
for speculative purposes and partly in conditions peculiar to the different lines.
Index numbers of wholesale prices (all commodities).
[1913=100.]
United
Statos;
Bureau
of
Labor
Statistics
(£28
quotations).
United
Kingdom;
Statist
(45
commodities).
France;
Bulletin
dela Italv;
Prof.
Statis- Bachi
tiquc
(40
Ge"n6- comrale modi(45 ties).
commodities).
CalJa- Australia; Can- cutta,
pan; ComIndia;
Bank mon- ada;
De- DeSwe- of Jaden;
pan wealth part- partSvensk for Bureau ment ment
Han- To- Census of La- of
and
bor Stadels
kvo Statis(272 tistics
tid(56
ning. com- tics (92 quo- (75
com- ta- commodi- modities). ties). tions). modities).
100
100
101
124
174
197
100
101
126
159
206
226
100
101
137
187
262
339
100
95
133
202
299
409
100
116
145
185
244
339
100
96 *Vi6o'
141
97
132
117
2155
149
170
197
Jan...
Feb..
Mar..
Apr..
May..
June..
July..
Aui*..
Sept..
Oct...
Nov..
Dec.
203
197
201
203
207
207
218
226
221
223
230
238
224
220
217
217
229
235
243
250
252
264
271
27G
348
340
337
332
325
329
349
347
360
382
405
423
324
320
324
329
336
356
359
368
370
388
436
455
369
358
354
339
330
324
320
321
319
307
308
317
214
213
20fi
206
214
228
247
251
257
271
280
288
1920.
Ian...
Feb..
Mar..
Apr..
May..
June..
248
249
253
265
272
209
1913..
1914..
1915..
1916..
1917..
1918..
100
101
110
135
177
206
" Vi66
212
207
205
206
210
210
218
223
223
222
227
240
1920.
mist index number also shows a decrease for the
two months, but differs from the Statist in that
it shows a considerably greater decrease for
June than for May. The Economist number
shows a heavy decline in textiles which may account for the difference. Clearly the upward
trend of prices which began in April of last
year has definitely come to an end, and prices
are slowly descending.
June 30 brought the first quarter of the
British fiscal year to an end and showed an
expenditure of £284,000,000 for the period and
an income of £315,000,000. This means 'a
reduction of £116,000,000 from the expenditures for the same period in 1919 and an increase
of £129,000,000 in the revenue. During the
quarter the floating debt was reduced by
£18,000,000, from £1,312,000,000 to £1,294,000,000.
Early in the month of June, the Government
was forced to make heavy drafts on the Bank
of England to meet the interest falling due on
the 5 per cent war loan. As the month progressed, temporary advances declined until
June 30, when they again reached a high point.
Treasury bills were not in active demand
because of the pressure for money at the end
of the half year, but after July 1 larger sales
were anticipated.
[In millions of pounds sterling.]
1919.
172
I&8
169
171
172
173
176
182
185
200
199
197
AUGUST,
Treasury
bills
/
Temporary Total floatadvances. ing debt.
1920.
June
204
200
5
12
19
26
30
1, 071
235
1, 077
1 078
1, 070
\\ 050
224
213
218
244
1,306
1,301
1,291
1,288
1,294
The slight interest shown in the 5-15
year Treasury bonds, subscriptions for which
amounted to only £7,660,000 on June 26, has
been discouraging to those looking for floating
debt reduction from this source. Nor is the
>l
i July, 1914=100.
Last six months of 1917.
levy on increases in capital during the war to be
3 End of July, 1914=100.
introduced by the Government, because, according to the Chancellor of thaExchequer, this
ENGLAND.
form of taxation will. not yield enough to
The Statist index number for England shows justify it as a method of floating debt reduca 5-point price decrease for June as compared tion. The increase to 60 per cent in the excess
with an 8-point decrease in May. The Econo- profits duty will be in effect for at least one
vear.
1
The index numbers printed in this article are constructed by the
With an addition of £5,427,000 of coin and
various foreign statistical offices according to methods described in the
BULLETIN for January, 1920. In all cases except that of the United
States the original basis upon which the index numbers have been com- bullion to the holdings of the Bank of England
puted has been shifted to the 1913 base. The monthly and yearly index
and an increase of only £13,084,000 in curnumbers are therefore only approximate. The latest figures are received
rency and bank note circulation between
by cable and are subject to correction.
288
306
307
313
305
300
487
522
555
584
550
493
504
556
619
679
659
614
319
342
354
354
361
366
301
313
321
300
272
248
203
206
209
217
225
233
248
254
258
261
283
258
218
209
198
200
210
206
AUGUST, 1920.
843
FEDERAL BESERVE BULLETIN.
May 26 and June 30, a further rise in the official
discount rate is apparently not considered
likely. The London Economist is of the
opinion that practically the entire stock of gold
in the country has now been concentrated in
the Bank of England. With currency note
circulation at £357,356,000 on June 30, a
margin of only about £5,000,000 remains between the maximum fiduciary issue (fixed at
£320,600,000 for 1920) and the currency note
circulation (subtracting from the latter
£28,500,000 of gold and £13,400,000 bank
notes in the redemption account).
British foreign exchange.
New York.
Paris.
Italy.
Berlin.
Pounds sterling to—
Dollars.
Lire.
Francs.
Marks.
Par
4.8665
25.225
25.225
20.43
January
February . . .
March
April .
May
June
.
3.6904
3.4612
3.6907
3.9181
3.8462
3.9421
42.9375
48.2125
52.3375
63.2937
56.7125
48.9200
51.2375
60.3812
70.4700
88.0000
76.3120
66.9550
239.375
327.750
304.100>
239.500
183870
154.700
[In thousands of pounds sterling.]
Averago of weekly quotations from London Times.
Currency
notes.
Bank of
England
notes. 1
Total
notes.
Coin and
bullion
in Bank of
England.
1920.
May 26
June 2
9
16
23
30
..
1
348,316
351,051
353,496
354,096
354,012
357,356
103,614
104,957
104,317
103, 766
104,840
106,658
451,930
456,008
457,813
457, 862
458,852
464,014
112,455
114,4-59
116,707
117,690
117,815
117,882
Less notes in currency notes account.
The investment situation has not changed
strikingly during June. Gilt edged securities
were declining but not so much as more speculative industrial issues. It was estimated that
at the end of May something like £20,000,000
had been invested in municipal, county, and
other housing loans. Apparently with a view
to increasing subscriptions, the Chancellor ol the
Exchequer announced that he would propose
legislation to allow him to turn over savings
certificate loans to housing purposes.
Never has there been a period equal to the
first six months of this year as regards capital
issues. The London Joint City and Midland
report for June gives a total of £241,000,000
in capital issues for the period. Of this amount
only 11 per cent was for foreign countries, a
situation in striking contrast to that of 1913
when nearly 85 per cent of the issues went
abroad.
Improvement in sterling exchange on New
York continued through June. One encouraging feature of the recent situation is the much
narrower range of the fluctuations.
Although improvement is shown in francs
and lire during the last three months, the
quotations for June are considerably less
favorable to these countries than those of
January last. German exchange, on the other
hand, has shown very remarkable improvement during each successive month. Important factors leading to the improvement in
sterling in New York, South America, and the
Far East were mentioned in a recent speech of
the Chancellor of the Exchequer before Parliament:
(1) The payment of the English share of the
Anglo-French loan.
(2) The redemption of half the $100,000,000
Argentine loan.
(3) The prospective payment of 20,000,000
yen to Japan.
The trade figures for June were not so favorable as those of May. The second quarter of
the year, however, shows a decrease in imports
as compared with the first quarter of 1920, and
an increase in exports combined with reexports.
Invisible exports may, in fact, compensate for
the adverse balances of May and June.
[Value in thousands of pounds sterling.]
Imports.
January..
February
March
April
May
June
1919
1920
131,546
100,689
105,753
112,066
135,612
122,946
183,498
170,514
176,648
167,154
166,816
170,491
Exports.
1919
1920
47,313 105,880
46,915 S5,964
53,109 103,699
58,482 106,252
64,345 119,319
64,562 116,352
Reexports.
1919
4,560
5,119
«,949
13,346
11,495
11,964
1920
25,464
21, 004
27,031
20,40;
20.26C
20,124
844
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
Of great ultimate importance as regards the
future trend of prices and trade is the decision
of the Government to open up trade with Russia
as soon as satisfactory arrangements can be
made. Trade returns for May show a certain
quantity of hides as coming from there. Imports from Germany likewise point to a
resumption of trading with the Central Empires, a fact which will eventually have a
salutary effect upon English and continental
prices.
Railway and terminal congestion have played
an important part in slowing down activity.
The restrictions on the export of coal, combined with the glut of imports, are given as the
main cause of dock congestion by the Ministry
of Transport. Weekly coal production has not
been up to the standards of the first quarter of
the year, except during the week of June 19.
British shipping tonnage under construction
on June 30 was appreciably greater than on
March 31, but reports from official labor bureaus were to the effect that lack of raw
materials had caused considerable idleness in
the shipyards.
Tonnage under construction.
March 31, 1919
June 30, 1919
Sept. 30, 1919
Dec. 31, 1919
Mar. 31, 1920
June 30, 1920
Employment of skilled workers continued
very good in May, according to returns made
to the Ministry of Labor by trade unions.
Percentage of trade-union unemployment (1,572,085 membership).
1918
End of—
Weekly production of coal.
Tons.
4,718,000
4,770,000
4, 874, 000
4,686,000
4, 735, 000
4, 67 6, 000
June 5
June 12
June 19
June 26
July 3
July 10
* . . 2, 254, 845
2, 524, 050
2,816,773
2,994,249
3, 394, 425
3,578,000
Pig iron and ingot production for June were
likewise below the May averages. In the case
of pig iron the decrease is not very great and
the actual quantity produced is more than
during any other month of the year except
May. Ingot production, on the other hand, is
less than during any of the earlier months, a
fact which bears out trade reports to the effect
that finished steel is beginning to feel the break
in demand which occurred earlier in textiles,
leather, etc.
January..
February.
March
April
May
1919
1.0
.9
1.2
1920
2.4
2.8
2.9
2.8
2.1
2.9
1.6
1.1
.9
1.1
Considering the price situation in greater
detail, the salient facts to be noted are (1) a
slight fall in average wholesale prices in May
and June, accompanied by a continued rise in
the cost of living; (2) the fall in wholesale
prices in both months was mainly due to the
fall in prices of textiles and nonferrous metals,
the prices of foodstuffs continuing to advance.
Group index numbers— United Kingdom, Statist.
[1913=100.]
Date.
Vege- Ani- Sugar, Food- Miner- Textable mal coffee,
foods. foods. t e a . ' stuns, i als. tiles.
Sun- Matedries. rials.
Production of pig iron and steel ingots.
[Thousands of metric tons.]
Pig iron.
1
1913 (monthly average)
1919.
January
February
March
April
May
June
1920.
January
February
March
April
May
June
Ingots
and
castings.
672
636
702
658
682
730
746
770
6*0
767
641
676
766
811
854
779
848
745
656
710
655
738
726
1
Crude steel.
6-19
1913..
1914..
1915..
1916..
1917..
1918..
100
110
155
193
252
248
100
100
125
152
192
210
100
107
130
161
213
238
100
105
137
169
218
229
100
90
109
140
152
167
100
97
111
152
228
265
100
105
131
163
212
243
100
98
119
153
198
225
1919.
January...
February.
March..:..
April
May
June
July
August
September
October...
November
December.
249
250
240
243
245
246
244
255
258
260
266
270
226
226
205
1
206
208
208
208
208
208
226
226
228
221
221
238
229
236
244
275
320
328
322
332
336
234
235
223
223
226
229
231
242
245
253
258
260
159
156
154
154
177
182
203
206
206
222
226
234
245
242
235
239
254
258
257
273
287
305
325
334
246
235
246
243
258
271
283
283
278
284
292
296
218
212
213
213
230
238
249
255
257
270
280
286
1920.
January...
February.
March
April
May
June
274
297
345
346
351
359
230
237
237
265
244
244
356
415
393
392
473
496
265
286
300
315
318
325
256
267
263
263
273
343
362
360
354
308
308
312
329
318
321
311
282
302
313
312
311
298
285
AUGUST, 1920.
Index number of the cost of living.
[Food, rent, clothing, fuel, and light, etc.]
[Base, July, 1914.]
Date.
January
February
March
April.
May
June
1918
85- 90
90
90
90- 95
95-100
100
1919
120
120
115
110
105
105
1920
125
130
130
132
141
150
Most recent trade reports seem to indicate
that the May and June depression in trade and
prices of cotton, wool, and hides is beginning
to give way, and that buying on a limited
scale at approximately June prices has commenced. Iron and steel prices, which were
unaffected in May and June, seem to be less
strong in July, quotations for Cleveland pig
iron being the same as in June, and hard
steel billets slightly below those of the preceding month. Among leading foods, ham
and butter seem to be the only ones which
have declined in price, while prices of such
commodities as sugar and coffee are considerably higher.
Control of domestic meat prices was lifted
in June and the industry freed from a large
measure of Government supervision. The
Food Ministry still holds considerable stocks
of imported meats, which are being sold at
fixed wholesale and retail prices. Imported
mutton has been reduced in price, but advances
are anticipated in the home-grown meats.
The relationship of Government to industry
has been very much under discussion during
the month because of the introduction in Parliament of a bill for the management of the
coal industry and the publication of a, white
paper by the Ministry of Transport giving the
Government's plan for the reorganization of
the railway system. The introduction of the
coal bill was preceded by the removal of
central control of domestic distribution of coal
and of prices at wholesale and retail. Pithead
prices continue fixed, and the quantity allowed
for export is limited.
The new bill for the management of the
industry contains the following provisions:
(1) A ministry of mines is created under
the board of trade.
(2) Export of coal and the pithead price for
consumption in the British Isles is to be controlled for one year after August 31, 1920.
(3) Pit committees are created, representing
the owners, managers, and workers in the
mines (workers to form at least one-half the
845
FEDERAL RESERVE BULLETIN.
membership) to handle local questions such as
increase in output, welfare, disputes, etc.
(4) District committees are created with
equal representation for management and
workers to handle similar questions for the
district.
(5) Area boards are created with equal
representation for management and workers
to decide questions of remuneration of workers in the area, having regard to the profits of
the industry within the area.
(6) A national board is created with equal
representation for management and workers
to decide questions of policy.
Neither owners nor workers approve of the
bill. Complaints against it are mainly to the
effect that the bill provides for nationalization
but does not state how capital is to be obtained;
that the arrangement for adjustment of wages
by areas is unfair; and that the industry will
be disintegrated thereby instead of coordinated.
Following are some of the recommendations
regarding the unification of the railway system:
(1) The railway companies of England and
Wales to be divided into six groups, with a
seventh for Scotland.
(2) Each group railway will have a board of
management upon which the shareholders will
form the majority. The rest of the board will
consist of employees, one-third of whom will be
administrative officers and two-thirds workers.
(3) Government guaranty to cease, rates
and fares to be fixed to produce a net revenue
substantially equivalent, on a prewar basis,
to the net income of all the companies absorbed.
(4) Surplus revenue to be taken by the
State and used for light railway development.
(5) Machinery to be set up for fixing rates
and charges, wages, and working conditions.
FRANCE.
Changes in the financial and industrial condition of France during June were not as
striking as those which occurred during May.
Foreign exchange rates improved slightly and
prices continued to decline. In general the condition of the country was encouraging. The
shortage of coal continued, but crops were reported excellent, with reconstruction in the
devastated regions progressing rapidly. The
financial situation of the Government was
greatly strengthened at the end of the month
through the passage by both the Chamber of
Deputies and the Senate of new taxes which will
balance the 1920 budget. M. Francois Marsal,
French Minister of Finance, announces that he
846
FEDERAL RESERVE BULLETIN.
has arranged for a systematic organization of the
tax collecting so that all persons with an income of more than 5,000 francs a year will
contribute to the support of the Government.
The new taxes went into effect immediately.
The Bank of France made slight gains during
June. The gold reserve of the bank increased
816,000 francs between May 27 and June
24, and note circulation decreased 370,930,000 francs in the same period. The Government received 907,000,000 francs from
indirect taxes and monopolies during June,
an amount 277,000,000 francs greater than
budget estimates. Tax receipts for the first
six months of 1920 have been 1,915,000,000
francs greater than receipts for the same period
in 1919. With the enactment of the new
taxes, receipts for July should be even larger.
[Bulletin de la Statistique Generate.]
[1913=100.]
1913
1914
1915
1916
1917
1918
.
Animal
food.
Vege- Sugar,
Foods Mintable conee,
and
(20). erals.
foods. COCCil.
Textiles.
articles manufactured with the aid of large
amounts of coal.
The provision of the country with fuel continues to be one of its most serious problems.
However, the Spa conference should result in
increased deliveries of coal from Germany, and
it is thought that labor difficulties in the French
mines have been settled, so that the amount of
coal available in France should be much larger
by fall. The following figures show the progressive decline of coal receipts in 1920:
Coal available in France in 1920—Production and imports.
Metric tons.
January
February
March
April
May
13, 991,486
13, 954, 301
1 3, 781, 544
> 3, 603, 602
3,352,177
French coal production was 620,000 tons less
in May than in April as a result of the miners'
strike from May 1 to May 20. The total receipts of coal in that month were divided as
follows:
Group index numbers—France.
Date.
AUGUST, 1920.
Sun- Matedries. rials
(25).
100
100
103
126
162
215
286
100
103
126
170
243
298
100
106
151
164
201
231
100
104
131
167
225
281
100
98
164
232
271
283
100
109
132
ISO
303
460
99
H5
199
302
420
100
101
145
206
291
387
337
343
438
436
397
381
372
360
387
402
424
432
321
321
277
277
275
268
336
309
308
337
351
380
231
236
236
236
238
255
257
263
264
268
271
278
313
316
337
336
319
313
338
323
334
353
369
375
271
243
246
243
231
236
267
273
279
295
323
357
416
399
322
335
346
372
406
434
476
554
620
649
428
420
404
387
390
398
395
398
402
403
415
419
376
360
337
330
330
344
358
367
381
405
435
454
452
484
500
522
480
482
432
474
516
511
480
400
419
436
439
429
124
392
440
474
498
506
472
434
413
444
460
498
459
428
787
S28
884
y53
841
734
465
503
548
587
601
517
525
561
600
646
614
540
Coal available in France in May.
Metric tons.
French coal
Sarre coal
English coal
Belgian coal
German coal
American coal
,
806, 285
587,180
1,154, 530
68, 405
551, 812
183, 965
Total
3,352,177
1919.
January
February...
March
April
May
June
July
August
September..
October
November..
December...
1920.
January
February. ..
March
April
May
June
The French public continues to restrict consumption in the hope of lower prices. Cotton
and silk, cacao and coffee, oats and barley, lead,
zinc, tin, and copper all declined in price during
June, but in most cases the decrease was not as
great as during May. The shortage of fuel
prevented a pronounced decline in the price of
The French wheat crop for 1920 is estimated
as 50 per cent larger than the 1919 crop. Barley and oats are in excellent condition, and the
flax crop is reported as equaling that of 1914.
The 1920 crop of silk cocoons is said to be of
exceptional quality; no figures as to the quantity of the crop are as yet available.
France's foreign trade balance continues to
improve, partly because of the great increase
in exports of raw materials and manufactured
articles, and also because of the restriction of
the imports of luxuries by the French Government.
June figures show that imports for the first
six months of the year were only 1,908 million
francs greater than for the same period last
year, whereas the value of exports was 5,096
million francs greater than during the corresponding period of 1919.
1
Revised figures.
AUGUST, 1920.
847
FEDERAL RESERVE BULLETIN".
Figures for the first six months of 1919 and
1920 are as follows:
French foreign trade, January through
Imports;
Food
Raw materials
Manufactured articles
Total
Exports:
Food... .
Raw materials
Manufactured articles
Parcels post
Total.
Increase or
decrease.
1920
4,000
5,852
3,870
3,846
7,697
4,087
- 154
+1,845
+ 217
13,722
15,630
+ 1,908
318
424
1,703
239
795
2,208
4,489
288
+ 477
+ 1,784
+2,786
+ 49
2,684
7,780
+5,096
GERMANY.
No index numbers showing the trend of
wholesale prices in Germany are published,
but it is apparent from quotations taken from
the Frankfurter Zeitung that the decline which
has been going on for the past two or three
months in other European countries has also
occurred in Germany. It would seem that
the drop in prices, at least in certain lines, had
been more extreme there than in western
Europe. The result of this sudden fall in
prices, following immediately upon the very
recent rise in prices there to an international
level, is expected to have a disastrous effect
upon production.
The same commodities have been reduced
in Germany as elsewhere, namely, nonferrous
metals, hides and their products, cotton and
cotton goods, and certain vegetables, the price
drop occurring in March and April. The fall
in prices of iron, steel, and chemicals came a
month or so later. The dates given below are
only approximate. Quotations are in terms
of marks, but the unit is not always known.
Cotton
yarn,
36's.
Cotton
cloth,
92 cm.
19/1836/42.
Plates.
Structural
shapes.
June.
[Millions of francs.]
1919
Iron
bars.
Calfskins.
Sole
leather,
cow.
Peas.1
Pounds.
39
Kilos.
Kilos.
51
105
1919.
January
December
335
1,745
305
1,505
320
1,715
1920.
January
April
May
June
2,600
2,802
3,650
3,200
2,265
2,482
3,200
2,790
2,565
2,772
3,620
3,320
Potassium
permanganate.
Borax.
Kilos.
Kilos.
100
72*
18
12
Improvement in the value of the mark in
London and New York is very striking, but
in the absence of foreign trade statistics it is
impossible to say to what extent it is due to
an increase in bona fide trading, and how
much to speculation. Foreign speculation is
generally given, however, as the cause for the
improvement. Whether the fall in prices in
Germany came as a result of the fact that they
were too high to tempt foreign purchasers to
buy there, or was caused by the fall in prices
elsewhere is likewise uncertain. Commodities
most strikingly affected are goods entering
international trade.
A striking thing to note is that, although
prices have fallen in many important lines, the
expansion of the currency continues. The note
circulation of the Reichsbank, as well as the
darlehenskassenscheine, have almost doubled
within the year. Gold holdings of the bank
have fallen from 1,302 million marks on June
9, 1919, to 1,092 million on June 15, 1920.
Deposits have increased 60 per cent during
the same period.
Reichsbaiik.
[In millions of marks.]
Gold.
June 9,1919..
May 7, 1920...
May 15, 1920..
May 23,1920..
May 31, 1920..
June 7, 1920..
June 15,1920.
1,302
1,092
1,092
1,092
1,092
1,092
1,092
Darlehen-| N o t e c i r .
skassenDeposits.
scheine. culation.
8,268
15,353
15,546
15,606
15,907
16,115
16,188
28,218
48,373
49,127
50,017
50,649
50,809
9,151
12,934
16,451
16,392
17,024
13,751
15,313
ITALY.
1920.
January
February
March
April
May
....
94
1721
18£
132<
92i
871
9
18
18i
17
Hi
10*
7.6-12.05
iPrice Aug. 15,1919, 3f marks.
82*
72i
9
5
4
2.75
The decline in Italian wholesale prices
which was first noted in May continued in
June. Metals, minerals, and textiles are the
commodities responsible for the decline. Foodstuffs continued to rise.
848
No recent statistics are available showing the
condition of the currency, but the fiscal situation is reported as encouraging in that revenues
for the first 11 months of the fiscal year ending
June 1 show very material increases over the
preceding year. Savings deposits are also
stated to have shown a very large increase in the
course of the first 4 months of the year.
Group index numbers—Italy.
Prof. Bachi.
Cereals
and
meats.
[1913=100.]
Other
foodstuffs.
100
Minerals
Textiles.
and
metals.
Other
goods.
1913
1914
1915
1916
1917
1918
100
102
132
156
215
315
84
93
135
171
229
100
96
113
184
326
475
100
100
207
380
596
750
100
96
133
197
266
391
1919.
January
February...
March
April
May
June
July
August
September..
October
November..
December..
304
305
293
294
293
320
334
332
319
326
328
338
300
308
312
330
336
343
332
351
357
366
371
373
330
328
331
333
375
378
401
423
429
499
633
658
295
295
346
354
360
419
423
424
442
459
568
584
422
384
361
349
340
336
342
341
342
341
351
405
1920.
January
February
March
April
May
June
363
365
381
395
441
445
396
399
418
494
499
507
777
671
857
996
1,076
1,088
917
418
443
489
535
525
534
"
840
962
1,064
840
742
Exports from January 1 to April 30, expressed in terms of value, amounted to almost
twice those of the same period of 1919. As
prices did not rise anything like 100 per cent
in the same period, it is safe to say that Italian
exports have shown a material increase.
The new Giolitti Cabinet, which has been
brought in expressly to improve internal economic conditions, has announced the following
proposals for the strengthening of the budget
and the more equable distribution of taxation:
(1) Law for the conversion of bearer bonds
(issued by the Government, the Provinces, the
communes, stock companies, or any other
institution) into registered bonds.
(2) Law for the taxation in toto of war
profits obtained during the period from August
1. 1914, to December 31, 1919.
(3) Law to increase tax on inheritances and
donations.
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
(4) Law to increase taxes on automobiles,
motor cycles, and motor boats.
JAPAN.
The index number of the Bank of Japan for
June indicates that wholesale prices fell at
about the same rate during June as during
April and May. The number stood at 248 in
June, taking 1913 prices equal to 100. Speculative commodities show extensive reductions
from the high points of earlier months. Rice
was quoted at 31 yen per koku the middle of
June as compared with 51 in early January;
Osaka cotton yarn futures were quoted at 350
yen in June, which is about 300 points below
the maximum quotation of May; and Yokohama raw silk futures were at 150 yen per 10
kin as compared with 385 yen at the beginning
of the year.
Fluctuations have not been as great in other
commodities, as shown by the following percentages.
Index numbers of wholesale prices of principal
commodities.
[Average price for October, 1900=100.]
Months.
Rice.
Rawsilk.
Cotton
yarns.
Steel. Copper. Paper. Timber.
1919.
May
June
July
August
September.
October...
November,
December.
' 353
375
405
422
434
434
442
462
233
274
300
288
296
336
378
423
475
544
623
625
648
678
747
706
272
281
292
283
267
272
258
261
144
153
178
178
163
173
166
165
488
488
488
488
512
512
512
515
199
205
235
272
330
330
330
342
1920.
January...
February..
March
April
May
461
458
460
434
424
520
487
450
353
243
684
730
744
589
410
283
346
394
315
262
164
166
157
152
142
548
590
625
625
542
424
435
451
440
420
The very unfavorable balance of trade during
the first six months of the year will, it is hoped,
be wiped out in part by the increase in exports
which is anticipated for the second half of the
year. Except for the war years, when Japan's
favorable balance of trade continued throughout the year, it is characteristic for her to have
an excess of imports in the first half of the
year, which is balanced by her excess of exports in the second half. " The excess of imports over exports during 1920 has been abnormally large, however, amounting to 473,405,000 yen, or 251,000,000 yen greater than
during the same period in 1919. The monthly
figures are as follows:
849
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
Group index numbers—Sweden, Svensk Handelstidning.
[Unit, 1,000 yen.]
|
[1913=100.]
473,405
1913-14
100
100
100
100
100
100
100
1914 1
1915
1916
1917
1918
136
151
152
181
101
140
182
205
114
161
180
198
123
177
266
551
109
166
272
405
104
118
165
215
In view of the fact that domestic prices
have been reduced and that imports of raw
materials to be manufactured for export have
been large, experts believe that the unfavorable
balance of the first half of the year will be decreased by 50 per cent at least by the end of
the year. As Japan has annual credits amounting to 300 to 350 million yen from sources
other than merchandise, her international
trade position is not considered unfavorable.
221
419
304
Group index numbers—Australian Commonwealth—Bureau
of Census and Statistics.
[July, 1914-100.]
January
February...
March
April
May. .
June
July
August.. .
September
October. ...
November
December
1920.
January
February . .
March
AiDril
May
June
July 1914
1915
1916
1917
1918
1919.
January
February.. .
March
\pril
Mav
June .
July
August
September..
October
N ovember
December.
1920.
January
February....
March
April
May
June
100
93
131
207
232
i tobacco.
terials.
cts.
9
9
•
a
p
100
202
113
110
135
100
127
124
116
121
di
<
<3
g
'3
PQ
O
100
110
127
131
138
100
150
155
155
147
100
116
136
194
245
100
233
267
103
116
166
247
111
l?0
149
91?
856 398 275 300
195
276 483
356
810 373 293
323 208
276
276
356
356
784
814
293
288
323
323
208
174
276 423 367
276 417 364
276 424 328
769 287 288
733 246 285
746 212 284
323
299
286
172
172
162
260
260
255
230
230
241
412
396
386
360
361
362
334
334
323
323
317
319
732
795
893
893
840
840
213
214
213
213
225
237
284
280
282
281
280
294
285
292
289
292
316.
343
243
247
235
223
.228
258
308
328
350
170
204
204
248
273
270
265
261
250
328
305
304
284
283
273
864
317
319
936
960
318
320 1 008
320 1,069
311 1,252
248
259
291
283
324
318
295
371
367
367
367
381
388
476
682
767
783
778
258
269
268
263
252
212
353
380
3S0
368
374
368
?04
226
275
97^
275
303
448
438
341
317
Average for six months ending Dec. 31, 1914.
Group index numbers—Canadian Department of Labor.1
[1913=100.]
d
id
•a
100
117
154
213
220
ltu ral products.
ther, etc.
i
100
1919.
1
Date.
100
118
158
229
206
ii6
Oils.
1,611,884
Textiles.
Total
Date.
Hides and leather.
1,138,479
Paper pulp.
28,351
96,342
135,366
77,728
100,615
35,000
Building material.
204,701
270,630
328,500
296,520
293,533
218,000
Metals.
174,288
193,134
218,792
192,918
183,000
Coal.
176,347
1920.
January
February
March
April
May
June
Animal food.
Imports.
Raw materials for
agriculture.
Excess of
imports.
Exports.
Vegetable food.
Month.
Date.
Grains
and
fodder.
AniDairy
mals
prodand
meats. ucts.
Fruits
and
vegetables.
Other
foods.
Textiles.
o
100
149
172
243
315
100
114
136
1913
1914
1915.
1916
1917.
1918
142
206
231
100
107
104
121
161
197
100
100
105
119
149
168
100
102
114
148
201
100
99
93
100
104
121
130
233
214
136
180
213
206
188
189
224
218
219
293
281
282
273
1919.
218
204
200
195
195
194
186
182
182
186
184
186
194
184
185
197
200
214
226
229
225
243
254
259
165
166
161
162
162
160
168
190
200
236
238
224
126
129
136
136
140
140
141
135
138
141
142
142
142
141
142
142
143
144
148
150
149
152
151
156
137
132
147
156
148
150
148
145
152
154
132
132
265
264
261
248
257
250
243
249
259
271
278
281
313
314
309
290
268
273
277
277
263
272
267
266
189
192
205
205
214
214
273
283
281
277
265
260
227
226
226
234
252
261
143
149
162
169
177
187
156
161
160
192
197
195
147
149
126
160
170
208
282
287
298
298
307
307
268
272
280
280
297
297
January
February
March ..
April
May
June
July . ..
August
September
October
November
December
1920.
January
February
.
March
April
May..
June
198
192
199
191
191
198
217
210
231
238
240
243
232
232
214
214
217
216
201
180
240
251
269
280
291
301
302
191
178
171
184
181
197
213
284
179
186
189
193
204
209
221
200
210
195
178
213
215
218
224
227
228
277
274
279
277
283
290
176
221
240
230
298
182
230
240
232
306
195
195
198
200
207
206
228
216
206
196
189
183
265
290
295
316
358
338
245
251
254
264
275
274
316
321
322
366
323
314
1 Unimportant groups omitted.
850
AUGUST, 1920.
FEDEEAL RESERVE BULLETIN.
Group index numbers—Canadian Department of Labor—Con.
[1913=100.]
Group index numbers—Calcutta, India, Department of
Statistics.
[End of July, 1914=100.]
Build- Fuel
Hides,
Imple- ing ma- and
leather, Metals. ments. terials, lightetc.
lumber. ing.
Date.
Drugs
and
chemicals.
Date.
1913
1914
1915
1916
1917.
1918
100
105
110
143
168
169
100
96
128
167
217
229
100
101
106
128
174
213
100
100
97
100
118
147
100
94
92
113
163
188
100
106
160
222
236
250
1919.
January... . . . . .
February
March
April
May
June
July
August
September
October.
November
December
171
161
161
166
202
211
235
260
256
252
252
231
204
190
172
162
162
161
166
171
171
165
171
181
229
229
229
' 223
223
226
226
228
231
225
232
232
154
155
156
153
153
158
168
170
183
188
194
224
209
202
199
206
192
194
194
199
200
201
201
209
240
233
212
210
208
197
195
196
197
198
181
189
1920.
January
February,
March.
April
May
June
237
245
222
239
215
186
191
199
210
214
213
207
235
231
237
237
237
238
232
243
268
268
295
295
212
215
215
245
257
279
190
189
194
201
203
206
.
'.
Group index numbers— United States, Bureau of Labor
Statistics.
[1913=100.]
8
End of July, 1914...
August, 1918
September, 1918.
August, 1919
September, 1919.
1920.
January
February
March
April
,
May
June
100
100
317
314
224
214
100
83
75
193
156
100
100
240
217
179
215
100
328
331
225
199
100
240
217
179
215
118
118
127
114
128
131
225
217
218
201
215
233
226
215
222
219
248
244
253
233
211
209
160
116
356
364
351
357
365
364
214
185
179
158
135
144
181
164
150
170
142
147
153
158
159
161
164
164
100
100
89
105
143
131
100
96
116
235
188
100
100
95
100
106
109
100
179
196
271
292
100
1119
U34
1179
U77
125
123
118
119
120
83
200
190
166
163
169
171
377
363
321
377
511
482
207
191
160
159
150
149
167
158
151
156
157
156
204
199
192
185
183
180
Date.
End of July, 1914...
August, 1918
September, 1918.
August, 1919
September, 1919.
1920.
January
February
March
April
May
June
159
155
135
116
123
119
1
Date.
1913.
1914.
1915.
1916.
1917.
1918.
1919.
January
February
March
April
May
June
July
August
September
October
November
December
1920.
January.
February.
March....
April
May
June
,
100
100
100
212
208
217
216
213
212
221
225
217
220
220
220
Includes pulses.
INTERNATIONAL PRICE INDEX.
In the following table are presented wholesale price indexes for groups oi commodities in
United States markets, computed according to
methods described in the May BULLETIN.
Similar indexes are under way for England,
France, Italy, and Japan.
Index numbers— United States.
[Average prices 1913=100.]
Date.
1913.
January....
February...
March
April....
May
June
July
Goods Impro- portduced, ed, 18
72 quo- quotatations. tions.
100
100
100
101
100
100
100
105
104
103
101
100
99
RawExProport- Con- materials,
ducers'
ed
-,39 sumed,
goods,
quo- 86 quo- 39 31
quota- tations. quo- tations.
tations.
tions.
100
100
99
99
99
100
100
100
101
101
100
100
100
100
101
100
100
105
105
105
103
102
101
101
Consumers' All, 90
goods, quota20 quo- tions.
tations.
99
101
102
100
100
101
101
100
100
100
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
Index numbers— United States—Continued.
[Average prices 1913=100.]
Date.
Goods Im- Expro- port- portduced, ed, 18 ed, 39
72 quo- quo- quotatatations. tions. tions.
Raw
ProConCon- matesumers' All,90
rials,
sumed, 39 ducers'
quogoods,
goods,
86 quo- quo- 31 quo- 20 quo- tatations. ta- ;ations. tations. lons.
tions.
1913.
August
September.
October
November..
December..
100
101
101
99
98
101
100
98
98
93
99
102
103
102
99
102
101
99
98
96
101
102
102
100
98
100
98
96
95
91
101
101
101
101
99
101
101
100
99
97
197
191
193
198
204
204
214
221
215
215
222
225
168
168
163
165
172
180
176
174
170
174
179
203
200
192
194
194
211
214
224
219
212
226
242
243
195
190
191
196
201
202
211
218
212
212
217
225
195
190
196
201
209
208
217
217
211
213
220
223
193
191
185
181
185
192
200
206
203
207
213
223
196
188
188
197
202
202
211
224
216
214
219
225
195
189
191
196
202
203
212
218
212
212
219
224
244
244
250
265
266
261
212
216
218
242
246
226
254
250
256
241
242
247
263
264
258
245
243
246
263
263
258
236
247
263
274
274
265
242
240
241
257
261
256
241
243
248
263
264
258
1919.
January
February...
March
April
May.. .
June
July
August
September.
October
November.
December..
1920.
January....
February...
March
April
May
June
26*4
262
256
Declining prices had become general in June,
all groups snowing a decrease from the prices
of May. In one group only, however, was
the decline considerable. Import prices fell
from an average of 246 in May (expressed in
terms of 1913 prices =100) to 226 in June.
This was the first break in the prices of this
group of commodities, as a whole, since September, 1919. Silk and wool had been declining for several months but the advance in
sugar had been so excessive that it wiped out
851
the effects of the decline in other commodities
on the average for the group. In June, sugar
declined in accord with other leading commodities in the group.
Prices of exports have shown no consistent
trend during the past 6 months. They declined in February, advanced again in March
and April, and have been gradually falling
since then but are still above the January
level. The decrease in this group as in domestic goods as a whole during tne month of
June was slight, and prices remain 256 per
cent of prices in 1913.
Producers' goods, which were impervious to
the influence of the price decline in raw materials and consumers' goods in February, fell
more considerably in June than the other two
groups. The advance in prices of this group
of goods was continuous and very rapid from
September, 1919, to May, 1920, the index
number standing at 274 in May as compared
with 203 in September. At the beginning of
the year consumers' goods were relatively
higher than producers'; but in May the former
number stood at 261 as compared with 274
for producers' goods and 263 for raw materials.
The comparative stability of the raw-material
index is due to the importance of cereals and
live stock in the group. These commodities
have been considerably less affected by recent
disturbances than industrial goods.
All commodities have declined 6 points
during the month, the most considerable decrease since February, 1919. Even with the
decline, the number stands at a much higher
level than in March, 1920, and 36 per cent
higher than in February, 1919. It registers
258, or 11 points lower than the Bureau of
Labor Statistics index number.
DISCOUNT AND INTEREST RATES.
In the following table are presented actual discount and interest rates
prevailing during the 30-day period ending July 15, 1920, in the various
cities in which the several Federal Reserve Banks and their branches are
located. A complete description of the several types of paper for which
quotations are given will be found in the September, 1918, and October,
1918, FEDERAL RESERVE BULLETINS.
OO
increases, in particular for the low and customary rates, for commercial
paper purchased in the open market, but the increases in the rates for
other types of paper which are shown in certain centers in general are not
more frequent than are the decreases shown for the same types of paper
in other cities. In many centers rates remain unchanged. Present rates
continue higher at almost all centers than rates during the same period
of 1919.
Quotations for new types of paper
will be added from time to time as deemed of interest.
During the month under review a number of centers show further
Discount and interest rates prevailing in various centers during 80-day period ending July 15, 1920.
Prime commercial paper
H L.
8
8
7
Buffalo.
No. 3 . . . . Philadelphia.. 6
XT.
A
No. 9....
No. 10...
No. 11...
No. 12...
8
8
8
r-7i
8 6
7 fi
7
7
7
8
ft ft ft
8
7
7
7
8 6
8* 7
8* 6
8 6
10 fi
8 ft
7 ft
8
8
ft
fi
8
7
8
8
6
7
8^
fti
ft*
7'
7
7
8
7
ft
ft
6 6
6
6
6
?
fi
ft ft
ft 7
6
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ft 8
6 r-8
6 7
7
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ft
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7 ft
ft ft
71 8
7
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ft+ 7
8
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8
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10
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7
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L. C. H.
8 ft* ft
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ft*
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8 6 6
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71 6 61-7
8 6 67
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7
7
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ft ft* 6
6
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fi
ft
7 gi
8 8 8 7 7
8 8 8 8 6
fi
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81 81 61
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8 7
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81
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7 ft
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61 8
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ft
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71 8
Cattle
loans.
7
7
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6 6-6*
Unindorsed.
B. L.
7
6|
7
6
6
7* 61 7
ft 6 6
8
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7
7* 7
61 ft
8
61 6i 61 61 6 | 61 8
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84 6-8
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61 61 6 | 61 61 61* 6 6 6
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8 6 7 8 ft 7 8 ft 7
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7 6 7 7 ft 7 8* 6 7
8 6 61-71 8 6 7 8 6 7-8
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ft
ft
C.
6+
6 63-7
6| 6
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8
6 1 6 1 6 1 ft 61 7
64 51 6 61 ft ft 8
7 6| 7 7
7 8
gi
8
8
7
7
7
7
61 61 7
3 to 6
months.
3 months.
L. C.
7* 8
ft* 6
7
7
6
X. C.
7+ 7*
ft ft'
fi
6
7
7
6
ft
6
6
6
6
6
6
6
6
ft
8
ft
ft
ft
6
ft
ft ft
fi
8
8*
8
8
7
6 7
6 7
6 7-8
6 7
6-1 7
JET.
8
8
7
8
fi
7
ft
7 fi* 7
ft ft" fi
7
8
7
8
7
8
8
8*
8
6
7
7*
8
7
8
8
6
7
8
6
7 8
6 7
71 8
6
61
7
ft
ft
ft
7
7
6
64 8
6
7
q
8
8
7
6
ft
ft
ft
7
6
8
10
7
ft* 7
7
8
7
8
8
8
8
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7
ft*
7"
7
7
8
7
7
8
8
8
8
8
7
Rates for demand paper secured by prime bankers' acceptances, high 7, low 6, customary 6.
No report.
7
8
B
6
fi
8
8 6 7
8* 6 7
6 7-8
6 7
61 7
ft ft
8
jr. L. a
$
61 7
61
6* 7
ft ft
7
Secured
by secured by
\varehouse Liberty
receipts, bonds and
certificates
etc.
of indebtedness.
7
oo oo oc
No. 8....
6 6
6 b-o$
6 «
fi
6 ft
ft 7 8
8
7
6
ft 7
8
6 '
6
o ooot>
No 7
8
H
88
7
6
JOOt
No. 6...
Richmond
Baltimore.
Atlanta
Birmingham..
Jacksonville..
New Orleans..
Nashville
Chicago
Detroit
St. Louis
Louisville ..
Memphis2 .
Little Rock
Minneapolis...
Kansas City...
Omaha
Denver
El Paso.
Houston. . .
San Francisco.
Portland
Seattle
Spokane
Salt Lake City
Los Angeles...
6
6
ft fv-7
ft
6
6
•OOi
No 5
Cleveland
Pittsburgh
a
ft 7
Interbank
4 to 6
months.
30 to 90
days.
or other current.
8
8
^00 OO
4 to 6
months.
30 to 90
days.
No. 1. . Boston.. 1
No. 2 . . . . New York .
Open m a r k e t .
Ordinary
loans to
customers
Collateral loans—6tock exchange
<ioooo
Customers'.
City.
^oooo ;
District.
Bankers' acceptances,
60 to 90 days.
fi
8-
8
7
8
7
7
8
6 fi*
fi* 7*
7
ft
7
8
8
6
7
8
10
91
8
10
s
8
6 7-8 8
8 81
6 7 8
61 71 8
6 8 7
H. L. C.
77 6 6*
41 6
7 41 6-7
6 51 6
6 61
6 6 6
6 6
6 6
7
fi^
6* 6 6
6
6
6
6 6
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8 51 7
8 6 6-7
6 7
7
8
7
67 'ft-8 8 66 6-7
6
7 6 6
7
7
7
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7 61 7
7 61 7
6
6
6 6
C.
7
8
7
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71
6
;
7
7
7
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8
7
7
6
7
8
6
8 6
10 7
8 6
61 6
8
6
8 6
8
6
8
7
8 6
7
8
8
7
7
7
8
7
61
8
61
61
7
7
7
8
7
to
853
FEDERAL, RESERVE BULLETIN.
AUGUST, 1920.
PHYSICAL VOLUME OF TRADE.
In continuation of tables in the July FEDERAL RESERVE
BULLETIN there are presented in the following tables certain data relative to the physical volume of trade. The
January, 1919, issue contains a description of the methods
employed in the compilation of the data and the construction of the accompanying index numbers. Additional
material will be presented from time to time as reliable
figures are obtained.
In the textile group there continues some indication of
decline in activity. Wool consumption for June, 1920,
was materially below that for May, 1920, and for June,
1919, and the percentage of wool machinery idle is considerably larger in June, 1920, as compared with the previous month ago or a year ago. In July, the percentage
of wool machinery id le increased. Consumption of cotton,
however, in June, 1920, is appreciably greater than that in
May, 1920, and very much larger than in June, 1919.
Cotton spindles active during the month are also more numerous in June, 1920, than in May, 1920, or June 1919.
Imports of raw silk in June, 1920, were considerably in
excess of such imports for May, 1920, but less than for
June, 1919.
The production of bituminous coal shows considerable
increase both as compared with May, 1920, and June, 1919,
while the production of crude petroleum likewise shows
an increase as compared both with that of a month ago
and the same period last year. In the iron and steel
industry the production of pig iron and steel ingots both
show some increase in June, 1920, as compared with the
previous month and a considerable increase when compared with June, 1919. The unfilled orders of the United
States Steel Corporation at the close of June 1920, are
approximately the same as at the close of May, 1920, but
very much greater than at close of June, 1919. In comparing thesefiguresrelative to the iron and steel industries
of June of this year with those of June of last year, it
should be remembered that at that time the industry was
in the midst of the postarmistice depression.
The receipts of lumber at Chicago show a large increase
in June, 1920, when compared with May of this year and
June of the previous year. California shipments of citrus
fruits show a considerable decrease in June, 1920, when
compared with May, 1920, and a moderate decrease when
compared with June, 1919. Receipts of live stock at 15
western markets show some decrease in June, 1920, when
compared with May, 1920, and with June, 1919. The
receipts of grain and flour at 17 interior centers for June,
1920, show a marked increase when compared with May,
1920, and some increase when compared with June, 1919.
The tonnage of vessels cleared was considerably greater
in June, 1920, than in May, 1920, or June, 1919.
Livestock movements.
[Bureau of Markets.]
Receipts.
Shipments.
Cattle and
calves, GO
markets.
Hogs, 60
markets.
Sheep, 60
markets.
Horses and
mules, 44
markets.
Total, all
kinds.
Cattle and
calvos, 54
markets.
Hoes, 54
markets.
and
Sheep, 54 Horses
Total, all
44
markets. inulps,
kinds.
markets.
1919.
June
July
August
September..
October
November..
December...
Head.
1,580,256
2,007,266
2,019,139
2,377,054
2,989,090
2,680,042
2,169,631
Head.
3,812,466
2,998,836
2,103,609
2,401,677
3,144,831
3,775,589
5,024,650
Head.
1,685,236
2,177,942
3,211,331
3,810,441
3,605,198
2,751,421
2,393,632
Head.
41,839
48,691
81,917
140,848
124,497
140,192
86,666
Head.
7,119,797
7,232,735
7,415,996
8,730,020
9,863,616
9,347,244
9,674,579
Head.
618,105
706,843
894,816
1,150,183
1,532,297
1,374,452
967,160
Head.
1,146,594
963,662
690,821
860,614
1,103,837
1,308,095
1,608,292
Head.
734,861
997,338
2,014,267
2,406,937
2,159,531
1,597,007
1,183,602
Head.
38,787
43,738
74,268
135,724
125,701
134,679
86,534
Head.
2,538,347
2,711,581
3,674.172
4,613,458
4,921,366
4,414,233
3,845,588
1920.
January
February
March
April
May
June
1,868,723
1,468,370
1,803,073
1,542,150
1,766,394
1,870,121
5,275,412
3,423,992
3,963,245
3,030,801
4,234,022
3,741,202
1,560,051
1,387,111
1,255,490
1,441,072
1,421,009
1,592,450
138,541
108,056
82,584
48,036
40,901
33,205
8,842,727
6,387,529
7,204,392
6,062,059
7,462,326
7,236,978
752,605
591,691
570,323
593,362
771,865
789,982
1,665,274
1,287,169
1,399,485
1,119,205
1,374,902
1,295,973
669,458
572,634
483,550
724,718
769,718
768,172
138,145
110,827
87,896
47,998
40,021
34,545
3,225,482
2,562,321
2,541,254
2,485,283
2,956,506
2,888,672
854
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
Receipts and shipments of live stock at 15 western markets.
[Chicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth,
Indianapolis, Louisville, Wichita.]
RECEIPTS.
[Monthly average, 1911-1913=100.]
Cattle and calves.
Head.
Hogs.
Relative.
Head.
Sheep.
Relative.
Head.
Total, all kinds.
Horses and mules.
Relative.
Head.
Relative.
Head.
Relative.
1919.
June
July
August
September
October
November
December
1,122,782
1,527,881
1,541,133
1,871,042
2,317,487
2,046,664
1,650,315
111
152
153
186
230
203
164
3,061,838
2,411,539
1,595,759
1,704,944
2,160,079
2,715,955
3,785,870
139
110
73
78
98
124
172
1,116,003
1,558,767
2,220,229
2,890,831
2,405,511
1,743,189
1,589,237
1,400,031
1,068,092
1,203,499
1,040,903
1,209,656
1,290,265
139
114
119
103
120
128
3,912,449
2,440,154
2,910,909
2,150,281
3,128,249
2,746,390
178
119
132
98
152
125
1,035,591
948,116
900,299
928,191
796,160
1,006,528
114
162
212
176
128
116
28,058
37,646
56,926
88,003
78,940
83,838
53,173
61
82
124
191
171
182
116
5,328,681
5,535,833
5,414,047
6,554.820
6,962,017
6,589,646
7,078,595
115
120
117
142
151
143
153
90,662
76,048
57,880
31,235
25,469
21,316
197
168
126
68
55
46
6,438,733
4,532,410
5,072,587
4,150,610
5,159,534
5,064,499
139
105
110
90
112
110
1920.
January
February
March
April
May
June
SHIPMENTS.
1919.
June
July
August
September
October
November
December
503,354
515,071
650,252
872,043
1,154,995
993,148
686,325
124
127
160
214
284
244
169
1,005.505
691,283
455,705
501,856
654,755
788,107
1,003,682
208
143
94
104
135
163
207
465,776
694,942
L, 352,252
1,849,958
1,382,419
945,992
682,439
93
138
269
3f>7
275
188
136
24,962
32,616
49,716
82,984
80,528
78,709
55,551
61
80
122
203
197
192
136
1,999,597
1,933,912
2,507,925
3,306,841
3,272,697
2,805,956
2,427,997
139
135
175
230
228
195
169
548,841
427,608
418,310
414,967
515,062
528,273
135
113
103
102
127
130
1,023,763
814,253
923,526
712,087
822,907
797,946
212
180
191
147
170
165
403,382
334,012
29S, 878
373,381
316,002
399,613
80
71
59
74
63
79
90,630
79,100
62,625
31,348
24,617
22,623
221
207
153
76
60
55
2,069,616
1,654,973
1,703,339
1,531,783
1,678,588
1,748,455
144
124
119
107
117
122
1920.
January
February
March
April
May
Jun«
Exports of certain meat products.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Beef, canned.
Beef, fresh.
Pounds. Relative. Pounds.
1919.
June
July
August
September...
October
November...
December...
6,574,766
5,392,104
2,894,361
1,213,709
1,793,784*
1,393,238
1,886,835
1920.
January
February
March
April
May
June
163
1,081,643
735,132
119
847,397
128
1,606,737
243
5,976,493
902
6,787,622 1,025
Beef, pickled, and
other cured.
Rela- Pounds. Relative.
tive.
Hams and shoulders, cured.
Bacon.
Pounds.
992 15,212,094
814 8,680,524
437 8,075,366
183 7,285,951
271 31,178,216
210 15,694,002
285 6,061,769
1,226
700
651
587
2,513
1,265
489
4,768,308
3,320,564
2,494,113
3,523,887
3,402,422
2,997,652
3,135,069
178 172,441,100
124 117,679.193
93 84.150,778
132 57,179,511
127 56,462,312
112 65,288,694
117 58,982,754
22,872,223
13,010,793
6,036,166
17,687,306
4,304,038
12,526,669
1.844
1,124
487
1,426
347
1,010
1,670,500
1,631,457
2,290,835
2,241.460
3,056,449
2,563,702
63
65
86
84
114
95
77,501,002
75,891,195
75,002,410
24,356,349
50,412,388
60,730,935
Lard.
Pickled pork.
Rela- Pounds. Relative.
tive.
Relative.
Pounds.
1,030
703
502
341
337
390
352
96,854,552
47,452,834
40,147,727
18,209,239
13.090,972
16,844,285
15,688,297
649 114,328,804
318 68,163,734
269 48,968,628
122 36,960,364
88 41,016,518
113 42,106,339
105 63,645,722
260
155
111
84
93
96
145
3,131,639
2,392,515
2,117,796
2,792,439
3,804,290
4,934,696
4,125,550
54
48
63
86
111
93
463
486
448
145
301
363
13,905,923
24,217,706
31,088,859
15,640,236
17,896,764
21,277,089
93
174
208
105
120
143
88
89
158
93
126
102
4,251,187
3,710,308
3,160,456
2,784,535
3,816,157
3,962,649
96
90
71
63
86
90
Relative.
Pounds.
38,823,902
36,644,906
69,429,785
40,758,401
55,544.483
45,069,517
71
AUGUST, 1920.
855
FEDERAL RESERVE BULLETIN.
Receipts of grain and flour at 17 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha. P('eoria,
St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha. Spo]ikane,
Toledo, and Wichita.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.]
Wheat.
Corn.
Oats.
Rye.
Barley.
Total grain.
RelaRelaRelaRelaRela- Bushels.
Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive.
1919.
June
July
August
September
October...
November.
December.
125,034
612,115
714,559
953,295
006,164
729,832
582,779
3021,098,146
18412,549,219
8,503,282
26016,267,145
18912,490,107
133 14,606,137
113 23,983,657
4,576,968
94 24
!5,233,109
56 25,
19,774,582
38 29,
72 26,721,030
"14,323,974
7,699,925
10715,592,282
122 2,791,618
125,3,105,486
147j3,824,263
13215,446,371
120 4,472,397
88 2,579,579
77 2,876,636
252 12,878,517
281 8,627,091
345 6,638,871
492 5,294,256
404 4,369,326
4
233 3,582,873
260 3,769,859
1920.
January...
February..
March
April
May
June
55,074,624
18,115,324
18,007,798
15,260,236
20,510,063
21,020,640
93 24,
1,139,094
72 26,
6,051,855
67 24,
4,306,196
57111,326,509
7612;2,107,950
78 277,251,166
108 20,925,941
124 20,575,654
108 19,149,624
5012,952,593
5416,724,389
12114,260,053
104 41,378,610
109 31,263,686
95 31,548,739
64 2,J, 914,553
83 3,1,758,507
71 31,177,770
]
396 3,1,298,544
316 2,5,470,622
3212i1,928,440
263 2,!, 245,881
340 2,!,690,076
287 2,1,721,367
1
180 69,470,283
120 99,127,020
93 129,455,557
74123,682,097
96,661,968
74,198,346
76,805,213
46
37
41
31
38
38
77,816,813
70,477,141
67,940,797
44,699,772
55,790,985
68,430,996
Total grain and
flour.*
Flour.
RelaRelaRelative. Barrels. tive. Bushels. tive.
891,894,599
127 1,572,420
166 2,283,145
1593,073,034
124 3,468,787
95;3,541,957
99 2,371,262
97 77,995,979
80106,202,910
117131,738,702
157137,510,750
177112,271,510
181 90,137,153
121 87,475,892
90
122
152
159
129
104
101
100 2,298,692
972,059,421
87 1,617,544
57 888,423
721,913,075
88 2,113,979
117
113
83
45
98
108
102
99
87
56
74
92
88,160,927
79,744,536
75,219,745
48,697,676
64,399,823
80,057,876
Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel.
Shipments of grain andflourat U interior centers.
[Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita;
shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]
Corn.
Wheat.
Oats.
Rye.
Total grain.
Barley.
Rela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Bushels.
Bushels. tive.
tive.
tive.
tive.
tive.
1919.
8,151,872
June...
12,423,422
July....
36,986,491
August
September 37,730,048
October... 25,813,130
November. 20,877,718
December. 17,383,075
53
81
240
245
167
135
8,629,052
8,102,275
5,135,459
6,622,779
7,116,502
6,609,629
11311,509,719
6115,638,317
5715,628,503
3617,919,623
4716,651,580
5016,705,015
4715,582,081
8112,433,716
103 2,740,593
""1,546,100
103
1
11811,436,377
110 2,317,740
2;
1101,1,426,528
103 3,110,541
3,
82 2,255,139
2
1920.
January...
February..
March
April
May
June.
11412,326,051
98 11,977,640
~~ 11,165,894
7111
72 5,371,811
134 5,939,145
13110,088,237
8715,822,099
91 13,073,089
7914,243,957
8,691,440
20,444,288
7112,805,056
5212,007,718
104 3,685,914
3,
L, 306,340
92 2,113,505
2,
L, 574,887
94 3,062,530
3,
57 8,811,500 1,2451,651,509
986 1,488,387
135 6,977,479
767 1,905,225
84 5,428,886
17,514,087
14,114,215
11,027,336
11,058,643
20,720,121
20,242,046
387 9,588,195
9,
218 9,133,004
9,
203 5,028,674
— 2,943,167
327
2,
202 3,087,951
3,
439 2,827,956
2,
2,624,376
3199 2;
246
234
129
75
79
73
67
Total grain and
flour.*
Flour.
RelaRelative. Barrels. tive. Bushels.
Relative.
44,748,029
46,833,304
66,506,624
66,265,314
54,149,126
49,007,925
46,206,025
913,130,826
95 2,589,176
135 3,805,273
134 4,787,300
" 0 5,
5,975,261
110
} 5,604,616
99,
94 4,470,122
4;
58,836,746
58,484,596
83,630,353
87,808,164
81,037,801
74,228,697
66,321,574
91
90
129
136
125
115
103
51,355,869
42,584,789
41,074,604
35,584,903
55,569,420
50,469,450
122 69,987,282
104 4,,140,314
;, 156,962 100 56,791,118
92 3,
87 54,395,392
83 2,960,175
50 43,244,497
"~"., 702,132
721
!, 877,122 85 68,516,469
112 2;
102 31,071,470
91 67,362,535
108
94
84
67
106
104
1 Flour reduced to its equivalent in wheat on basis of 4i bushels to barrel.
92
76
112
141
176
165
132
856
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
Receipts of grain and flour at nine seaboard centers.
^Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for
Seattle and Tacoma.]
[Compiled from reports of trade organisations at these cities.]
[Monthly average, 1911-1913=100..
Total grain.
Barley.
Rye.
Oats.
Corn.
Wheat.
Total grain and
flour.i
Flour.
RelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels.
1919.
June
July
August
September
October...
November.
December.
10,260,075
5,806,227
26,002,757
28,010,858
14,755,827
9,152,534
5,782,777
81 1,051,177
46 901,842
214 815,132
222 512,072
117 507,065
73 438,147
46 816,630
30 10,249,644
6,959,186
5,676,984
5,345,464
4,335,038
3,998,525
2,991,717
216 3,660,255
1461 ,478,551
119
61,710
113 534,301
91 1,717,301
8411,391,024
63 1,664,755
2,576 6,564,620
1,041 9,723,852
43 4]1,993,395
376 2,), 171,521
1,209 796,839
979 851,651
1, 172 2,!, 309,085
1920.
January...
February..
March
April
May
June
5,711,009
4,898,690
6,486,745
5,441,434
10,621,723
13,374,721
45
42
51
43
84
106
1,491,759
1,244,393
1,203,649
1,317,555
767,332
1,878,284
2,663,274
2,331,246
3,646,727
1,546,590
2,382,271
3,194,897
56 2,643,611
53 3,212,668
77 4,119,986
33 3,440,350
50 5,117,806
67 6,506,053
1,8611,297,839
2,423 1,315,291
2,9001,300,871
~ - * 685,054
556,764
4', 579 1,191,767
396
586
301
131
48
51
139
Relative.
31,785,771
24,869,658
38,449,978
36,574,216
22,112,070
15,831,881
13,564,964
140 2,
>, 340,158
1101L, 514,135
1691[,385,762
161 2;J, 306,213
97 2.
J, 521,329
701,1,552,796
60 2,
1,149,458
224
145
133
221
241
149
206
42,316,482
31,683,266
44,685,907
46,952,175
33,458,051
22,819,463
23,237,525
154
116
163
171
122
83
85
13,807,492
13,002,288
16,757,978
12,430,983
19,445,896
26,145,722
611,561,693
61 1,102,606
741
" 1,752.860
55 843,116
8611,301,211
1151,486,365
150
113
168
81
125
142
20,835,111
17,964,015
24,645,848
16,228,605
25,301,346
32,834,365
76
70
90
59
92
120
iFlour reduced to its equivalent in wheat on basis of 4£ bushels to barrel.
Stocks of grain at eight seaboard centers at close of month.
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.J
[Compiled from reports of trade organizations at these cities.]
[Bushels.]
1919.
June
July
August
September
October
November
December
1929.
January
February
March
April
May
June
Wheat.
Corn.
4,180,160
5,557,644
17,396,269
21,171,440
25,322,242
18,728,730
13,053,280
214,079
265,196
155,491
172,254
82,240
155,490
279,451
5,475,856
3,760,063
2,216,989
1,901,510
1,898,271
2,504,833
2,435,455
514,252
867,491
578,250
516,142
483,270
1,264,494
709,276
6,783,798
5,528,176
5,414,183
4,061,830
3,079,360
2,351,012
3,007,379
17,168,145
15,978,570
25,761,182
27,823,176
30,865,383
25,004,559
19,484,841
8,485,491
6,634,682
6,280,682
7,704,155
10,781,927
8,492,819
711,501
948,239
851,287
967,475
437,521
459,568
2,396,639
1,671,209
1,351,457
389,958
819,790
901,756
2,397,156
2,671,743
2,389,321
1,944,350
1,889,965
2,035,334
2,587,543
2,340,787
1,891,862
2,034,983
1,071,920
1,193,082
16,580,330
14,166,660
12,764,609
13,040,921
15,001,123
13,082,559
Oats.
Rye.
Barley.
Total grain.
NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton.
Cotton.
[New Orleans Cotton Exchange.]
[Crop years 1911-1913=100.]
Sight receipts.
Bales.
Relative.
Port receipts.
Bales.
Relative.
Overland movement.
Bales.
Relative.
American spinners' Stocks at ports and
interior towns at
takings.
close of month.
Bales.
Relative.
Bales.
Relative.
1919-20.
August
September
October
November
December
January
February
March
April
May
313,
584,
1,779,
2,369,
2,147,
1,526,
1,003,
1,088,
529,
316,
25
47
142
189
171
122
86
87
45
25
238,271
260,
1,029,
1.178,
1,069,
982,
725,
621,
499, 187
289,
26
28
112
128
116
107
85
68
54
32
49,630
26,138
110,202
245,237
242,940
205,233
138,084
108,573
48,565
57,661
47
25
105
233
231
195
141
103
46
55
302,233
300,001
621,784
1,155,324
1,214,337
793,453
374,093
270,269
276,805
214,678
67
66
137
254
267
175
88
59
61
47
1,412,048
1,501,805
2,340,881
2,616,383
2,765,040
2,470,496
2,510,482
2,276,737
2,148,038
1,913,407
120
127
199
222
235
210
213
193
182
162
AUGUST, 1920.
857
FEDERAL RESERVE BULLETIN.
California shipments of citrus and deciduous fruits.
[1911-1913=100.]
Lemons.
Carloads.
Relative.
3,648
2,568
1,785
1,840
2,706
3,257
3,592
149
105
73
75
111
133
147
2,457
2,683
4,715
3,720
5,048
3,294
100
118
193
152
206
132
Total
deciduous
fruits.
Total citrus fruits.
Relative.
Carloads.
1,520
1,038
436
414
572
442
271
375
256
108
102
141
109
67
5,168
3,606
2,221
2,254
3,278
3,699
3,863
181
127
78
79
115
130
136
4,199
6,601
6,781
5,529
2,141
197
630
852
651
508
1,353
1,576
156
225
161
125
334
389
3,087
3,535
5,366
4,228
6,401
4,870
108
133
188
148
225
171
123
139
155
22
24
1,263
Carloads.
Carloads.
Relative
1919.
June
July
August
September
October
November
December
1920.
January
February
March
April
May
June
Sugar.
[Data for ports of New York, Boston, Philadelphia.]
[Weekly Statistical Sugar Trade Journal.]
[Tons of 2,240 pounds.
Tons.
1919.
June
July •
August
September
October
November
December
271,875
264,782
246,419
262,137
233,650
154,674
96,342
R a w stocks
at close of
month.
Meltings.
Receipts.
Relative.
148
144
134
142
127
84
52
Tons.
Relative.
171
159
125
159
118
96
69
313,000
292,006
229,000
292,000
216,000
177,000
126,765
Monthly average 1911-1913=100.]
Receipts.
Relative.
Tons.
85,193
57,975
75,394
45,531
63,181
40,855
10,432
49
34
44
26
37
24
6
Tons.
1920.
January
February
March
April
May
Relative.
208,554
316,667
335,532
310,580
254,616
301,318
June
R a w stocks
at close of
month.
Meltings.
113
184
182
169
138
164
Tons.
Relative.
181,000
269,000
333,000
307,000
286,000
319,000
99
157
182
167
156
174
Tons.
37,986
85,663
88,185
91,765
60,381
50,666
Relative.
22
50
51
53
35
29
Naval stores.
[Data for Savannah, Jacksonville, and Pensacola.]
[In barrels.]
[Compiled from reports of trade organizations at these cities.]
Spirits of turpentine.
Receipts.
Stocks at
close of
month.
Receipts.
Stocks at
elose of
month.
62,955
76,561
73,402
72,616
67,080
77,125
76,792
221,612
235,707
203,812
190,580
186,231
204,281
200,333
Receipts.
Rosin.
Stocks at
Stocks at
close of Receipts. close of
month.
month.
1920.
1919.
June
July
August
September
October
November
December
Spirits of turpentine.
Rosin.
22,656
23,598
21,013
21,574
19,367
18,757
17,109
33,733
30,656
24,756
27,021
27,389
28,741
30,924
January
February
March
April
May
June
8,300
3,762
1,876
7,644
23,473
33,522
24,910
17,900
4,819
3,996
6,174
19,654
47,874
29,303
14,660
27,029
68,163
94,904
165,927
140,559
103,443
98,517
78,113
108,656
858
AUGUST, 1920.
FEDERAL RESERVE BULLETIN".
Lumber.
[From reports of manufacturers' associations.]
[M feet.]
Douglas fir.
Western pine.
Southern pine.
Num- Produc- Ship- Num- ProducNumShip- ber
ber of
of tion.
ber of Producments. mills. tion.
tion.
ments.
mills.
mills.
Eastern white pine.
North Carolina pine.
Num- Produc- Ship- Num- Produc- Shipof tion.
ber of tion.
ments. ber
ments.
mills.
mills.
Ship-
1919.
June
July
August
September.
October
November.
December.,
204
206
204
202
201
202
198
360,084
401,939
417,036
416,640
421,025
391,347
353,923
426,193
466,786
*423,002
372,727
356,124
344,717
363,176
156,561
148,533
152,748
154,102
156,828
110,525
139,923
140,680
140,236
138,537
143,252
117,472
93,377
115
114
118
126
124
126
129
300,410
268,634
416,422
332,905
419,108
324,511
227,331
327,364
301,050
397,290
261,797
339,321
241,301
176,935
29,741
27,382
20,247
16,913
12,888
2,786
4,776
26,525
22,470
26,839
22,574
18,139
21,596
17,840
20,733
22,326
27,177
33,146
24,055
24,925
19,048
28,865
34,191
30,159
35,468
22,079
26,926
26,241
1920.
January
February..
March
April
May
June
202
203
205
205
205
204
386,481
383,239
436,944
438,056
430,271
385,293
404,706
369,047
424,775
359,461
347,404
287,487
69,895
85,583
130,425
167,165
183,621
197,461
144,180
147.180
156,211
133,114
132.181
125,770
128
124
123
126
124
127
327,568 344,568
332,511 295,934
342,948 329,012
359,651 274,597
424,687 383,346
343,801 271,815
38,007
32,551
43,771
46,222
12,731
25,771
63,614
59,687
61,620
61,757
26,323
41,557
24,678
15,534
29,633
13,659
15,992
14,259
26,283
15,202
10,613
18,657
10,481
Receipts and shipments of lumber at Chicago.
[Chicago Board of Trade.]
[Monthly average, 1911-1913=100.]
Shipments.
Receipts.
M feet.
Relative.
M feet.
Receipts.
Relative.
M feet.
Relative.
M feet.
Relative.
1920
1919.
June
July
August
September
October
November
December
Shipments.
184,862
200,148
170,385
205,909
208,638
176,972
226,617
87
94
80
97
98
83
107
80,762
90,134
87,953
93,120
95,674
70,175
79,553
105
118
115
121
125
92
104
January
February
March
April
May
June
208,145
235,423
284,146
124,725
187,931
234,562
71,233
81,561
122,401
51,495
89,259
90,503
119
134
59
89
111
93
114
160
67
116
118
Coal and coke.
[Bituminous coal and coke, U. S. Geological Survey; anthracite coal, Anthracite Bureau of Information.]
[Monthly average, 1911-1913=100.]
Bituminous coal, estimated monthly production.
Short tons.
Relative.
Anthracite coal, shipments over 9 roads.
Long tons.
Rel ative.
Beehive coke, estimated
monthly production.
Short tons.
Relative.
1919.
June
July
August
September
October
November
December
38,547,000
42,698,000
42,883,000
47.402,000
56,243,000
18,688,000
36,612,000
100
115
116
128
152
50
99
5,619,591
6,052,334
6,144,144
5,687,401
6,560,150
5,971,671
6,138,460
100
108
109
101
117
106
109
1,179,563
1,503,367
1,733,971
1,790,466
1,551,979
1,680,775
1,760,800
45
57
66
68
59
64
67
48,fi89,000
40,127,000
46,792,000
37,966,000
39,059,000
44,462,500
131
116
126
102
105
120
5,713,319
4,913,664
102
94
1,982,000
1,731,000
2,025 000
1,602,167
1,689,500
1,710,333
76
71
1920.
January
Februarv
March./.
April
May
June
77
61
65
65
AUGUST, 1920.
859
FEDERAL, RESERVE BULLETIN.
Crude petroleum.
[U. S. Geological Survey.]
[Barrels of 42 gallons each.]
Produced.
Barrels.
June
July
August
September
October
November
December
1919.
31,644,000
33,894,000
33,862 000
33,667.000
33,319 000
32,114,000
32,508,000
Produced.
Stocks at end
of month
(barrels).
Relative.
165
177
177
176
174
168
170
133,995,000
140,093,000
136 467 000
137,131,000
135 461 000
131,601,000
127,S67,000
Barrels.
January
February
March
April
Mav
j une
Stocks at end
of month
(barrels).
Relative.
1920.
33,980,000
33,212,000
36 461 000
36,201,000
36 859 000
37,219,000
177
186
190
189
192
194
127,164,000
126,339,000
125 597 000
124,991,000
124 633 000
126,674,000
Total output of oil refineries in United States.
[Bureau of Mines.]
Crude oil run
(barrels).
Gasoline
(gallons).
Kerosene
(gallons).
28,920,764
31,202,522
32,362,057
32,601,044
33,682,968
32,213,754
32,427,617
338,336,985
342,491,757
326.846,167
339,582,564
3G3,450,747
338,667,570
335,659,587
178,974,224
205,727,289
219,502,888
199,244,293
227,104,346
214,829,925
229,476,468
632,205,805
638,185,469
685,702,461
683,409,674
680,158,446
663,309,514
685,084,086
64,636,153
67,037,414
72,920,214
70,230,692
78,658,410
75,962,212
72,040,862
30,815,160
29,208,723
33,592,004
32,852,010
34,578,282
336,719,157
322,588,697
367,137,678
355,597,451
381,079,291
195,956,392
194,523,334
191,110,175
184,469,017
180,877,089
617,555,156
589,684,857
680,945,963
643,088,785
707,198,355
75,878,635
74,243,073
81,818,973
85,568,064
89,252,410
Gas and fuel Lubricating
(gallons).
(gallons).
1919.
June
July
August
September.
October
November..
December..
1920.
January..
P'ebruary.
March....
April
May
STOCKS AT CLOSE O F MONTH.
1919.
June 30
July 31
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 31
1920.
Jan. 31
Feb. 29
Mar. 31
Apr. 30
May 31
16,775,723
15,304,915
15,131,549
13,925,441
14,091,945
13,983,716
13,143,285
593,896,610
514,919,358
434,531,446
371,125,419
354,160,071
378,133,185
446,793,431
252,542,434
279.855,061
296,065,646
311,843,057
329,1C0, 795
347,070,560
339,319,690
811,790,637
817,809,519
830,329,785
862,135,385
828,574,452
791,052,991
714,124,455
175,384,775
173,884,303
170,572,819
158,907,070
152,536,736
149,193,143
137,318,934
13,200,727
13,500,599
14,346,458
15,145,691
15,331,375
515,934,364
562,996,489
626,393,046
643,552,644
577,671,795
327,548,646
330.120,942
334,617,117
376,358,123
419,077,605
652,080,901
590,322,125
580,182,858
590,687,009
618,939,135
141,690,177
132,759,244
130,630,597
140,355,972
135,882,485
860
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
Iron and steel.
[Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute.]
[Monthly average, 1911-1913=100; iron ore, monthly average, May-Noy ember, 1911-1913=100.]
Iron-ore shipments
from the upper
Lakes.
Steel-ingot production.
Pig-iron production.
Unfilled orders U. S.
Steel Corporation
at close of month.
Gross tons. Relative. Gross tons. Relative, Gross tons. Relative. Gross tons. Relative.
June
July
August
September.
October
November..
December..
January..
February.
M^rch
April
May
June
1019.
7,980,839
9,173,429
4,42,3,133
8,178,483
6,201,883
3,152,319
132
151
73
135
102
52
2,114,863
2,428,511
2,743,388
2,487,985
1,863,558
2,392,350
2,633,268
91
105
118
107
SO
103
114
2,219,219
2,508,17G
2,746,081
92
104
114
4,892,855
5,578,661
6,109,103
6,284,638
6,472,668
7,128,330
8,265,366
93
106
116
119
123
135
157
3,015,181
2,978,879
3,375,907
2,739,797
2,985,682
3,043,540
130
138
146
118
129
131
2,968,102
2,865,124
3,299,049
2,63*, 305
2,883,164
2,980,690
123
127
137
109
119
123
•9,285,441
9,502,081
9,892,075
10,359,747
10,940,466
10,978,817
176
180
188
197
208
208
1920.
230,854
6,970,085
9,233,566
115
136
Imports of pig tin.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Pounds.
Relative.
Pounds.
Relative.
1920.
1919.
June
July
August
September
October
November
December
112,000
113,120
9,872,459
11,087,403
16.210,512
L5,233,671
12,940,125
1
1
109
122
178
168
142
January...
8,772,953
13,925.843
11,980,019
10,345,130
February.
March
April
May
June
9,102,341
11,232,325
97
164
132
114
100
124
Raw stocks of hides and skins.
[Bureau of Markets; July, 1920, on, Bureau of the Census.]
[In pieces.]
June 30..
July 31..
Aug. 31..
Sept. 30.
Oct. 31..
Nov. 30..
Dec. 31..
Jan. 3 1 . . . .
Feb. 29....
Mar. 3 1 . . . .
Apr. 30....
May 3 1 . . . .
June 30
Calfskins.
Kipskins.
Goat.
Kid.
Cabretta.
4,696,332
4,966,081
5,498,844
6,158,289
6,436,765
6,918,534
7,349,146
2,285,015
2,389,368
2,145,320
2,055 084
2,007,208
1,844,737
2,117,442
558,033
554,516
585,269
947,546
1,097,039
1,188,173
1,122,156
16,991,195
15,589,944
18,263; 446
15.749,664
15,302,942
14,248,671
15,984,179
2,521,016
1,964,828
880,276
823,740
2,239,604
331,389
752,055
1,697,754
2,767,694
2,348,769
2,736,802
2,574,499
2,684,084
2,092,425
8,118,702
6,815,160
7,126,885
8,661,215
10.122,930
9,398,712
9,296,812
6,773,360
6,559 337
6,558,300
6,072,895
5,831,341
6,212,946
1,920,184
1,859,697
1,930,218
2,281,370
2,720,610
3,107,393
1,036,372 13,474,529
1,141,620 16,481,328
966,850 15,938,660
834,711 14,666,590
922,682 14,120,171
915,499 14,562,713
927,436
605,524
468,188
156,871
791,150
60,999
1,893,614
2,197,683
2,047,519
1,947,499
2,253, 785
2,070,471
8,902,067
9,460,914
9,227,252
8,911,661
8,978,852
10,993,228
Sheep and
lamb.
1919.
1920.
NOTE.—Figures for June 30 are provisional.
Cattle
bides.
AUGUST,
861
FEDERAL RESERVE BULLETIN.
1920.
Textiles.
[Silk, Department of Commerce; cotton and idle wool machinery, Bureau of the Census; wool consumption, Bureau of Markets.]
[Cotton, monthly average crop, years 1912-1914=100; silk, monthly average, 1911-1913=100.]
Percentage of idle woolen machinery on first of month
to total reported.'
Cotton consumption.
Bales.
1919.
J une
. ...
July
August
September
October
November
December . . .
'74,330
510,328
502,536
91,313
555,344
490,698
511,585
1920.
Januarv
• cbruary
March
April
May .
J une
July
591,725
516,594
575, 704
567 839
5-11,080
555,521
...
Imports of raw silk.
Cotton
spindles
active
during
month.
Wider Under Sets of Combs.
than 50- 50-inch cards.
Woolen. Worsted.
inch reed reed
space.
space.
Rclative.
105
113
112
109
123
109
114
132
123
128
126
120
124
Spinning spindles.
Looms.
Wool consumption
(pounds).
33,950,358
34,171,690
34,187,310
3), 216,662
34,307,307
34,483,775
34,594,214
48,849,892
54,973,093
48,938,476
52,985,961
TO, 018,415
52,428,854
55,566,253
29.6
22.0
22.1
19.9
16.0
14.8
13.9
26.6
26.0
24.9
22.8
20.7
18.2
19.1
34,739,071
34,668,643
34,667, 747
34,346,737
34,066,236
34,503,754
63,059,862
55,247,652
58,344,602
57,887,832
50,649,381
40,679,920
14.5
12.2
14.9
13.1
15.2
26.8
42.5
18.5
17.6
19.8
16.9
18.2
22.4
32.3
15.4
12.8
15.2
7.6
8.9
Pounds.
9.4
8.1
8.2
7.6
10.5
6.5
5.5
5.9
5.3
5.3
8.9
7.9
7.7
6.7
8.4
21.1
13.5
10.9
12.8
7.2
6.7
6.2
3,848,354
5,202,407
3,802,500
6,755,271
3,955,845
4,841,407
3,576,585
8.8
7.6
9.8
7.2
6.9
7.0
9.1
7.1
10.3
10.2
7.9
11.7
4,855,989
3,696,121
2,491,651
2,227 857
2,505 798
3,221,177
9.7
9.6
9.5
7.1
6.7
10.6
21.1
38.0
11.5
23.1
42.0
15.9
35.0
7.0
7.0
14.2
32.7
Relative.
188
254
186
330
193
237
175
237
194
122
109
122
157
Production of wood pulp and paper.
[Federal Trade Commission.]
[Net tons.]
Wood
pulp.
1919.
J une
....
Julv
August
September
October
November
December
Newsprint.
277,142 114,898
2i;0,685 113,929
2,0,987 113,413
2>36,915 111,434
308,710 125,216
324,488 116,C03
306,617 122,781
Book.
Paper
board.
Wrapping.
Fine.
71,938
75,613
82,737
81,024
89,440
84,085
88,779
152,957
169,593
189,782
184,897
202,524
182,940
174,649
CO,656
63,769
64,861
63,353
67,110
63,394
62,288
27,122
30,036
33,122
31,923
34,808
32,468
31,014
1920.
January
February
March
April
Mav
June
Wood
pulp.
Newsprint.
Book.
Paper
board.
Wrapping.
302,541
266,191
327,143
350,191
*fi3,815
337,115
129,663
114,235
127,847
128,269
129,230
130,380
96,419
85,532
95,851
%,251
92,856
94,957
211,934
176,855
207,863
199,395
213,475
215,131
70,109
61,574
68,403
75,347
70,511
72,987
Fine.
32,886
29,202
33,671
33,493
31,575
34,121
Sale of revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands).
[Commissioner of Internal Revenue.]
Cigarettes.
Cigars.
Large.
1919.
June
July
August
September
October
November
December
Number.
576,976,572
•V>fl, 908,339
33,227,393
75,777,829
77,622,154
55,421,893
.62,046,997
Small.
Small.
Cigars.
Manufactured
tobacco.
Number.
Pounds.
Number.
48,855,070 3,140,393,217 31,312,150
47,500,287 3,585,030,983 33,838,667
54,953,647 3,918,403,687 35,568,246
53,735,960 4,283,247,387 36,623,005
64,170,793 5,028,875,337 39,335,546
56,080,813 4,768,598,203 32,965,088
45,491,540 4,578,641,450 29,409,443
Large.
1920.
January
February
March
April
May
Cigarettes.
Small.
Number.
Number.
663,634,243 58,837,900
593,832,200 43,358,500
7-3,239,958 55,052,100
i 03,577,579 56,548,853
1.76,227,828 59,943,280
Small.
Number.
4,528,760,833
3,536,117,847
4,373,778,917
3,756,989,397
3,953,345,380
Manufactured
tobacco.
Pounds.
33,608,313
31,531,460
38,422,481
34,327,970
34, £75,839
862
AUGUST,
FEDERAL RESERVE BULLETIN.
1920.
Output of locomotives and cars.
[Locomotives, United States Railroad Administration; cars, Railway Car Manufacturer's Association.]
Output of cars.
Locomotives.
Domes- Foreign
comtic
shipped. pleted.
1919.
June
July
August
September..
October
November...
December...
Number.
Number.
160
121
160
111
89
39
103
44
73
173
51
55
23
42
Domes-
Foreign.
Number. Number.
1,785
5,307
2,777
6,936
18,509
5,015
19,980
4,302
10,445
3,715
8,967
2,622
4,506
2,428
Output of cars.
Locomotives.
Domes- Foreign
comtic
shipped. pleted.
Total.
Number.
7,092
9,713
23,524
24,282
14,160
11,589
6,934
Domestic
Number. Number. Number.
4,650
22
48
3,960
3,053
2,313
2,792
2,780
1920.
January
February...
March
April
May
June
Foreign.
Total.
Number. Number.
1,914
6,564
1,066
5,026
2,040
5,093
1,934
4,247
1,402
4,194
731
3,511
'sels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation.
[Monthly average, 1911-1913=100.]
Gross
Number. tonnage. Relative.
June
July
August
September
October
November
December
1919.
272
2S45
238
202
210
143
149
422,889
397,628
455,338
378,858
357,519
347,051
294,064
1,750
1,645
1,884
1,568
1,479
1,436
1,217
Gross
Number. tonnage.
Relative.
January
February
March
April
May
June
1920.
115
140
170
164
184
198
Tonnage of vessels cleared in the foreign
253,680
267,231
279,709
251,442
185,145
267,076
1,050
1,185
1,157
1,040
766
1,105
trade.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Net tonnage.
American. Foreign.
1919.
June
July
August
September
October
November
December
2,339,320
2,362,571
2,957,249
2,627,480
2,645,778
2,251,871
2,043,675
Net tonnage.
Percentage . RelaAmerRela- can to tive.
tive. total.
Total.
2,511,501 4,850,821
2,920,247 5,282,818
2,797,818 5,755,067
2,481,676 5,109,156
2,073,560 4,719,338
1,910,489 4,162,360
1,733,923 3,777,598
125
136
148
131
121
107
97
48.2
44.7
51.4
51.4
56.1
54.1
54.1
American. Foreign.
1920.
191
177
203
203
222
214
214
January
February
March
April
May
June
1,933,385
1,702,407
1,836,716
2,504,038
2,729,790
3,199,274
1,949,798
1,628,212
2,040,538
1,960,634
2,436,247
3,141,913
Total.
3,883,183
3,330,619
3,877,254
4,464,672
5,166,037
6,341,187
Percentage Relative.
Rela- Amerito
tive. can
total.
100
92
100
115
133
163
49.8
51.1
47.4
56.1
52.8
50.5
197
202
187
222
209
200
Net ton-miles, revenue and nonrevenne.
[United States Railroad Administration.]
February
July
August
September
October
1919.
,
25,629,489,000
34,914,294,000
36,361,653,000
38,860,311,000
40,343,750,000
November
December
January
February
1919.
32,539,248,000
33,462,298,000
1920.
34,769,722,000
32,699,143,000
AUGUST, 1920.
863
FEDERAL RESERVE BULLETIN.
Commerce of canals at Sault Ste. Marie.
[Monthly average, May-November, 1911-1913=100.]
EASTBOUND.
Grain other than
wheat.
Bushels .
June
April
1919.
1920.
May
June
Wheat.
Relative.
Bushels.
Flour.
Relative.
Total.
Iron ore.
Barrels.
Relative.
Short tons.
Relative.
Short tons.
Relative.
6,694,901
75
6,402,051
33
1,031,630
89
8,004,897
135
8,554,979
122
6,008,000
11,904,942
3,076,986
134
33
4,274,611
13,497,995
5,976,125
70
31
658,910
1,082,521
57
73
162.630
6,683,820
8,707,350
ii3
454,726
7,483,836
9,153,884
107
131
105
WESTBOUND.
Hard coal.
1919.
1920.
April.
Mav
June
. . .
.
...
.
Total.
Soft coal.
Total freight.
Short tons.
Relative.
Short tons.
Relative.
Short tons.
Relative.
Short tons.
227,200
73
2,266,984
118
2,664,437
107
11,219,416
118
10,000
202,000
271,020
65
87
50,831
531,375
966,382
28
50
82.483
937,374
1,493,935
38
55
537,209
8,421,210
10,647,819
89
112
Relative.
BANK TRANSACTIONS DURING JUNE-JULY.
In the attached tables are shown debits to
individual account for the four weeks ending
July 23 of the present year and for the corresponding weeks of 1919, as reported to the
Federal Reserve Banks by the country's more
important clearing houses. A recapitulation
by Federal Reserve districts presents a comparison of figures for 154 centers for which reports are available both for the 1920 and the
1919 periods under review.
Aggregate debits to individual account for
the 154 centers included in the recapitulation
fluctuated between 8,5£9 millions for the fiveday week ending July 7 and 9,377 millions for
the following week. Except for the smaller
total shown for the week ending July 7, which
included July 5, a legal holiday in all the districts, the variations in aggregate debits during
the period under review were comparatively
small, the difference between the largest and
the smallest total being only 328 millions, or
about 3.5 per cent of the smaller figure.
The statement below presents a comparison
of debits in New York City and in 153 other
centers for each week of the period under review, together with totals for corresponding
weeks in 1919, and percentages showing the
excess or deficiency of 1920 figures as compared
with corresponding 1919 amounts.
[In millions of dollars. |
Debits to individual account.
In New York.
Week e n d i n g -
June 30,1920.
July 2, 1919...
July 7,1920...
July 9,1919...
July 14,1920..
July 16,1919..
July 21,1920..
July 23,1919..
1920
1919
4,463
5,069
Excess
of 1920
over 1919.
In 153 other centers.
1919
4,587
4,523
Per cent.
1.4
4,529
3,526
28.4
4,821
4,671
3.2
4,891
4,274
14.2
Per cent.
4,060
4,173
| 4,557
5,580
} 4,383
5,433
-12.0
- 2.7
-18.4
-19.4
Excess
of 1920
over 1919.
1920
For the 153 centers outside of New York
City, debits to individual account are considerably larger for each week of 1920 than for the
corresponding week of 1919, the largest difference, amounting to more than a billion dollars,
being shown for the weeks ending July 7, 1920,
and July 9,1919. Owing to the continued dullness of the stock exchange, total debits in New
864
FEDERAL RESERVE BULLETIN.
York City are considerably lower for each week
of this year compared with the corresponding
week of last year. Average figures for the 29
weeks of each year for New York City were
4,748 millions in 1920, as compared with 4,324
millions in 1919, the 1920 amount being 9.8 per
AUGUST,
1920.
cent above the 1919 figure; while for 147 other
centers the 29-week average for 1920 was 4,627
millions, an increase of 23.6 per cent over the
corresponding average in 1919 (3,743 millions),
the increase representing largely the rise in the
general price level.
Debits to individual account at clearing-house banks.
[In thousands of dollar?.]
Federal Reserve district.
June 30.
No. 1—Boston:
Bangor
Boston
Fall River
Hartford
Holyoke..
Lowell
Manchester
New Bedford....
New Haven
Portland
Providence
Springfield
Waterbury
Worcester
No. 2—New York:
Albany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
No. 3—Philadelphia:
Altoona
Chester
Harrisburg
.lohnstown
Lancaster
Philadelphia....
Reading
Scranton
Trenton
Wilkes-Barre....
Williamsport
Wilmington
York....
No. 4—Cleveland:
Akron
• Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensburg
Lexington
Oil C i t y . . . .
Pittsburgh
Springfield
Toledo
Wheeling
Youngstown
No. 5—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Huntington
Norfolk
Raleigh
Richmond
No. 6—Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga
Jacksonville
Knoxville
Macon
Mobile
Montgomery
1919.
Week ending—
1920.
Week e n d i n g July 7.
July 14.
July 21.
July 2.
July 9.
July 16.
July 23.
3,565
289,517
9,785
22.121
4)351
5,612
5,233
7 654
19,137
8,463
38,655
17,258
7,286
18,761
3,909
295,064
9,528
28,528
4,045
5,778
5,904
7,498
21,130
8,358
39.964
17)363
7,814
18,304
3,790
322,284
9,837
27,206
4,631
6,530
6,284
8,668
22,611
7,738
39,287
18,471
7,978
21,554
3,847
333,990
8,926
25,863
4,567
6,273
5,940
8,978
21,795
9,675
42,243
19,046
7,463
21,098
2,983
370,280
9,194
25,314
4,042
5,378
2,715
249,359
6,675
19,364
2,926
4,273
3,693
354,871
9,300
23,601
3,832
6,149
2,848
319,780
8,207
24,672
3,657
4,765
6,814
16,866
5,323
14,151
7,374
17,759
6,927
18,071
34,881
11,775
7,456
20,238
25,772
10,200
5,998
14,290
37,063
15,089
7,457
19,515
35,752
15,369
7,596
14,167
19,843
4,598
68,380
4,463,000
5,124
32,169
18,328
22,324
4,799
78,900
4,060,377
5,952
34,920
21,454
24,936
4,789
78,553
4,556,620
5,676
30,911
19)589
25,176
4,984
79,395
4,382,556
5,841
33,412
20,293
30,511
3,765
76,372
5,068,924
3,985
38,115
16,617
38,155
3,265
56,162
4,172,793
3,495
23,837
12,968
11,245
4,188
64,110
5,579,559
3,421
29,317
14,249
16,553
3,203
61,589
5,433,175
3,847
31,437
14,078
3,528
5,088
4,517
5,108
5,496
372,189
4,060
15,486
12,000
9,609
3/949
9,818
, 4,675
2,919
5,567
2,470
4,142
5,437
359,956
5,043
15,148
11,793
8,801
4,405
8,230
5,117
2,314
5,789
3,468
4,998
6,274
347,7S9
5,894
17,074
11,620
10,013
5,480
7,732
4,638
3,330
5,904
3,572
4,174
6,563
349,136
5,718
13,863
13,396
9,483
4,595
8,072
4,210
3,400
4,742
3,790
3,697
4,670
367,886
4,083
13,521
9,618
7,522
3,374
11,036
3; 444
2,910
3,783
3,906
2,485
3,602
276,611
3,158
11,245
8,272
5,603
3,060
9,604
2,560
3,697
4,434
4,077
3,641
4,788
362,219
4,457
12,977
9.622
7,360
3,647
10,654
3,360
2,148
4,058
3,800
2,919
4,649
358,851
3,734
11,861
9,853
6,617
3,691
11,024
3,580
30,579
68,122
171,634
30,863
11,998
8,355
6,915
4,950
3,409
232,481
3,235
33,732
9,045
15,621
25,605
67,698
182,243
28,333
13,152
7,435
5,211
5,246
2,833
191,768
4,257
30,784
8,051
17,539
20,690
65,712
201,537
31,474
13,124
8,372
5,923
5,224
3,901
202,371
4,361
34,719
9,509
19,070
26,969
71,929
205,989
31,666
12,375
8,324
8,263
5,241
3,330
209,546
3,703
35,175
9,798
14,819
21,119
62,606
194,161
29,978
13,728
6,642
3,247
5,369
2,762
220,161
3,486
25,939
10,778
15,988
18,972
54,136
142,914
24,249
12,255
5,836
3,459
3,893
2,233
113,073
2,954
23,155
8,188
14,577
22,933
60,657
200,883
32,476
12,122
6,876
4,042
3,858
3,038
180,861
3,487
30,277
9,589
19,431
23,623
58,062
162,210
32,884
13,102
6,540
2,842
3,901
2,740
196,839
3,291
28,353
8,747
14,186
111,778
9,400
7,872
5,577
5,563
20,356
4,070
31,170
108,543
9,875
7,340
5,742
5,175
19,797
3,900
29,361
112,150
9,400
8,867
5,989
6,183
21,853
4,258
24,834
106,374
9,933
8,856
5,771
5,708
23,371
4,000
27,676
121,076
10,217
4,100
7,966
93,966
7,102
4,900
6,464
117,865
8,987
6,200
7,170
112,315
6,969
5,500
5,527
20,922
3,600
22,007
17,028
3,500
19,831
22,451
3,999
25,040
19,100
3,500
24,918
31,579
7,925
16,1:86
10,330
12,629
5,863
5,831
7,817
5,590
28,668
8,282
17,234
12,605
13,936
6,923
6,390
8,013
4,636
30,995
7,539
16,845
12,319
14,837
7,422
6,726
8,203
5,364
31,896
7,669
18,321
12,906
14,278
7,717
8,053
8,902
4,880
27,440
6,712
14,596
11,292
10,718
5,359
4,261
7,599
4,571
23,981
7,755
11,372
9,939
9,906
5,536
4,766
6,580
4,078
29,637
8,175
12,335
12,535
10,654
6,122
8,792
7,188
3,700
26,386
6,946
12,460
11,632
11,015
5,919
5,715
7,310
4,038
AUGUST, 1920.
865
FEDERAL RESERVE BULLETIN.
Debits to individual account at clearing-house banks—Continued.
[In thousands of dollars.]
1920.
Week e n d i n g -
1919.
Week e n d i n g -
Federal Reserve district
June 30.
No. 6—Atlanta—Continued.
Nashville
Ne'v Orleans
Pensa cola
Savannah
Tampa
Vicksburg .
No. 7—Chicago:
Bay City
Bloomington
Cedar Rapids
Chicago
Davenport
Decatur. .
Des Moines
Detroit
Dubuque .
Flint
Fort Wayne .
Grand Rapids
Indianapolis..
Jackson
Kalamazoo...
Lansing
Milwaukee
Peoria...
Rockford...
Sioux City.
South Bend.
Springfield
Waterloo...
No. 8—St. Louis:
Evansville
Little Rock
Louisville
Memphis
St. Louis
No. 9—Minneapolis:
Aberdeen.
Billings
Duluth
Fargo
Grand Forks
Great Falls.
Helena...
Minneapolis...
St. Paul
Sioux Falls..
Superior
Winona
No. 10—Kansas City:
Atchison
Bartlesville. .
Cheyenne
Colorado Springs..
Denver
Joplin..
Kansas City, Kans
Kansas City, Mo
Muskogee
Oklahoma City.
Omaha
Pueblo
St. Joseph
Topeka
Tulsa...
Wichita
No. 11—Dallas:
Albuquerque . . .
Austin
Beaumont..
Dallas
.
El Paso
Fort Worth
Galveston..
Houston
San Antonio
Shreveport...
Texarkana.
Tucson.. .
Waco
-
......
.
July 7.
July 14.
July 21.
July 2.
July 9.
July 16.
July 23.
24,183
74,284
2,044
14,504
5,317
1,383
22,374
79,279
2,150
15,903
6,097
1,792
27,354
74,362
2,484
15,186
6,216
1,910
24,329
75,886
2,535
15,948
6,553
1,763
20,587
81,842
2,192
18,251
4,230
1,542
21,018
60,501
1,646
14,270
4,234
1,551
21,577
64,376
2,114
16,851
4,162
1,550
22,684
67,129
2,142
17,541
3,982
1,254
3,265
2.785
6,282
722,263
7,577
4,337
21,409
152,731
2,726
10,007
7,860
20,830
41,031
3,522
5,474
7,133
65,662
12,359
6,315
16,020
5,879
5,362
5,258
3,342
2,845
8,600
690,499
9,789
3,905
18,670
141,300
4,193
17,762
7,733
20,523
40,896
4,829
5,461
7,562
65,633
11,961
7', 277
14,166
5,361
6,568
4,052
3,321
2,854
13,975
769,067
8,355
4,210
25,039
159,382
4,153
11,231
8,688
21,601
42,046
2,496
5,120
6,402
71,692
11,930
6,882
16,036
5,139
4,959
4,544
3,302
2,844
11,621
816,123
7,482
4,167
20,884
179,234
2,712 •
9,816
8,104
26,158
43,180
4,625
5,609
6,879
77,722
12,235
6,311
18,611
5,937
4,421
4,673
2,600
3,162
9,774
734,388
7,472
3,079
16,780
134,321
2,500
8,247
6,141
15,126
33,985
4,043
3,837
5,112
66,268
13,192
5,410
17,399
2,152
4,211
3,731
2,553
2,559
9,061
533,401
3,870
2,922
17,948
98,630
2,560
8,573
5,974
18,481
28,545
3,483
3,036
4,184
46,731
9,502
4,549
13,820
2,666
4,472
3,159
3,567
2,785
9,583
790,416
6,543
3,700
19,267
152,327
2,500
7,471
6,386
17,231
47,359
3,565
3,591
4,777
72,612
12,470
4,991
17,730
4,301
3,941
3,750
2,622
2,415
7,281
694,491
6,153
3,497
18,020
129,364
2,223
9,044
5,139
17,152
35,516
7,073
3,491
5,162
41,327
11,238
4,450
14,695
4,151
3,994
3,552
5,466
8,673
37,125
28,818
144,978
6,003
8,647
33,429
26,882
135,606
5,603
12,118
37,164
29,864
153,320
4,919
10,295
32,548
30,021
160,981
5,524
6,616
35,884
29,609
160,725
3,934
6,418
35,330
26,531
104,527
3,980
9,270
37,606
32,133
214,693
4,018
6,417
38,091
27,708
151,400
1,552
1,765
18,818
3,220
1,395
2,042
2,081
81,711
35,606
5 734
1,987
1 003
1,808
1,991
16,351
4,023
1,971
2,293
2,553
74,967
34,636
5 571
2,036
1 409
1,840
2,037
23,866
3,892
1,845
1,982
2,369
97,397
38,648
6,126
2,036
1 507
806
2,135
23,806
3,407
1,602
1,822
2,368
87,490
35,996
6,057
2,180
1 409
1,530
1,847
27,193
2,477
1,655
1,574
2,264
83,663
31,887
1,587
2,133
18,626
2,641
1,503
1,774
2,495
60,421
29,979
2,056
2,079
28,573
3,168
1,716
1,448
2,457
83,553
40,804
2,498
2,114
21,015
5,673
1,628
1,621
2,052
69,200
39,772
1,244
1,400
1,115
1,440
1,146
1,173
1,256
1,069
489
4,686
1 915
3,215
39 077
3 155
4,121
82,353
5,919
22,560
58 174
5,404
16,635
3 441
32 287
12 072
519
3,792
1 882
2,795
41,667
3 086
4,507
79,030
5,868
22,759
53,353
5,897
16,906
3 671
25 115
14 211
762
3,462
1 664
3,474
43 370
3 837
3,275
92,198
5,005
23,672
58 004
4,815
12,842
4 485
31 477
15 508
675
3,403
1,958
3,543
40,655
3 249
4,099
75,889
5,297
24,222
57,186
4,375
14,056
4,189
29 449
18,713
3,595
2,404
3,007
2,247
4,101
35,877
2,821
3,687
97,116
3,950
15,063
59,898
6,109
18,088
4,827
25 212
11,385
3,634
24,688
2,811
3,189
79,623
3,958
18,409
49,756
5,636
12,646
4,949
27 582
13,932
4,323
27,689
3 603
2, 654
104,687
4,721
22,712
59,33^
4,415
16,485
5,002
26 203
H 457
4,638
28,500
2,758
2,376
114,643
5,380
24,275
61,971
4,080
18,112
5,281
21,728
14,221
1,523
2,732
3,821
33,587
8 617
23,569
7,888
31,960
6,185
8,107
1,615
1,782
3,860
2,114
3,098
4,509
37,843
8 279
2,4,869
10,104
39,870
6,841
5,678
1,411
1,888
3,460
1,972
3,285
5,060
34,420
8 700
24,897
8,945
44,849
7,677
8,130
2,093
1,910
4,240
1,977
2,342
4,779
36,652
8,592
25,841
8,650
33,136
7,520
8,508
1,422
745
3,860
1,803
6,304
3,493
33,268
6 931
20,368
8,623
33,149
4,689
6,224
1,551
1,480
2,943
1,765
4,992
3,445
29,951
6 299
17,883
7,713
29.935
3,144
5,186
1,532
1,530
3,155
1,807
3,311
3,945
38,308
6 641
21,757
8,375
36,781
3; 991
7,938
2,581
1,402
3,415
1,802
2,722
4,450
34,134
6,351
24,860
8,830
36,171
3,576
6,288
1,678
1,521
3,719
866
AUGUST, 1920.
FEDEKAL RESERVE BULLETIN.
Debits to individual accounts at clearing-house banks—Continued.
[In thousands of dollars.]
1920.
Week e n d i n g -
1919.
Week e n d i n g -
Federal Reserve district.
June 30.
No. 12—San Francisco:
Berkeley
Boise
Fresno
Long Beach
Los Angeles
Oakland
Ogden
Pasadena... ,.
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
. .
Spokane
Stockton . .
Tacoma
Yakima...
...
.
2,134
3,380
8,605
4,317
98,750
32,386
3,771
4,954
41,327
3,309
13,342
17,788
7,392
232,759
4,905
44,302
• 11,073
5,180
9,338
2,518
July 7.
2,822
2,873
10,832
6,861
105,010
36,388
4,474
4,823
45,411
3,366
15,977
18,362
8,795
215,598
7,695
41,046
12,174
7,000
10,828
2,959
July 11.
3,023
3,445
10,738
5,498
107,112
38,578
3.984
5,506
49,499
2,992
14,770
18,579
9,843
229,798
6,785
47,840
13,332
6,100
12,473
3,280
July 21.
2,731
3,578
10,019
4,942
106,850
37,271
3,844
5,361
46,538
3,228
15,112
18,309
8,593
239,562
5,856
47,428
12,527
6,559
12,441
3,044
July 2.
1,682
2,978
5,044
1,881
78,665
12,402
2,484
5,561
45,138
1,336
10,295
17,699
5,537
173,867
3,745
51,561
10,903
5,980
10,943
2,572
July 9.
2,078
2,763
8,255
4,372
61,420
13,951
3,430
4,092
30,279
1,980
11,190
13,540
4,844
157,477
5,752
37,750
10,223
6,361
8,132
1,900
July 16.
2,431
4,943
8,603
3,480
79,369
14,298
3 523
4.167
43,691
2,433
12,273
19,163
6,106
210,320
4,167
54,031
11,339
6,453
11,941
2,514
July 23.
2,253
2 931
7,395
3 338
85,630
13,417
2 756
3,915
33 448
2,436
10 487
16,058
6,726
188,687
4,195
44,912
10,970
6,015
11,341
2,061
Recapitulation, by Federal Reserve districts.
[In thousands of dollars.]
Federal Reserve districts.
Boston.
.^
New York
Philadelphia
Cleveland .
Richmond
Atlanta..
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
1920.
Week e n d i n g -
Number
of centers
included.
1919
Week e n d i n g -
June 30.
July 7.
July 14.
July 21.
July 2.
July 9.
July 16.
12
7
13
14
7
15
23
5
11
14
13
20
444,002
4,611,442
455,523
630,939
190,223
225,665
1,136,087
225,060
151,180
293,099
135, 246
551,530
458,925
4,228,726
439,028
590,155
184,558
234,282
1,102,927
210,567
144,038
282,657
149,964
563,294
492,847
4,721,074
433,083
625,987
187,351
237,762
1,209,122
238,069
177,419
305,424
156,178
593,175
504,089
4,551,657
432,016
647,127
185,981
241,636
1,282,650
238,764
163,021
288,325
144.014
593,793
515,221
5,238,289
440,783
615,964
189,888
221,192
1,102,930
238,358
156,734
291,729
130,826
450,273
361,046
4,310,675
336,799
459,894
152,791
187,133
830,679
176,740
123,714
253,217
116,530
389,789
505,703
5,706,089
434,933
590,527
191,712
209,768
1,200,863
297,682
168,173
299,291
140,252
505,245
461,811
5,563,882
426,785
557,320
177,829
206,153
1,032,080
227,634
147,898
310,213
136,108
458,978
154
9,049,996
8,589,121
9,377,491'
9,273,073
9,592,187
7,699,007
10,250,238
9,706,691
July 23.
NOTE.—Figures for the following centers, while shown in the body of the statement, are not included in the recapitulation, complete data for
these centers not being available for each week under review: Manchester, N. H.; Portland, Me.; Atchison, Kans.; Cheyenne, Wyo.; Sioux Falls,
S. Dak.; Huntington, W. Va.
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
867
DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS
DURING JUNE, 1920.
Detailed tables showing the discount and
open-market operations of each Federal Reserve Bank during June, 1920, are shown on
pages 869 to 871. Following is a summary,
for the system as a whole, of the operations in
June and May of the current year with comparative figures for 1919:
Of the total bills discounted by the Federal
Reserve Banks the proportion secured by
Government war obligations was 72 per cent,
compared with 73 per cent the month before
and 95 and 97 per cent for June and May, 1919.
Discounts of trade acceptances totaled about
2.6 millions less in June than in May of this
year, but were about 6 millions above the
Summary of discount and open-market operations of Federal amount shown for June of last year. DisReserve Banks in June and May, 1920 and 1919.
counted bankers' acceptances also show a
decline in June, the total being about 6 mil[In thousands of dollars.]
lions less than in May, but still about 9 millions
1920
1919
more than in June, 1919, when the aggregate
of this class of paper discounted was less than
May.
May.
June.
one-half million. Discounts of commercial
paper proper and of agricultural and liveTotal discounts and open-market
stock paper totaled 172 millions more in June
7,797,839 6,452,944 6,771,913 7,620,107
purchases
than in May of this year, the amount for June
6,336,642 6,135,984 6,328,911 7,3S5,833
Discounts—Total
Secured by Government war
being 1,484 millions above the corresponding
obligations
4,545,248 4,508,435 6,036,277 7,169,366
Otherwise secured and unseamount for June, 1919.
1,791,394 1., 627,549 292,634 216,467
cured— Total
13,920
7,061
Trade acceptances
16,538
7,949
In June, as in the preceding three months,
9,432
1,112
Bankers' acceptances
15,254
496
about 88 per cent of the discounts consisted
All other (commercial n. e, s.,
agricultural and live-stock
of 15-day paper, i. e., paper maturing within
paper)
1,768,0421,595,757 284,189 208,294
14.48
9.13
Average maturity (in days)
9.79
14.74
15 days after date of discount or rediscount
Average rate (365-day basis) per
with the Federal Reserve Banks. A year ago
6.20
4.16
cent
4.19
5.74
Open-market operations:
this proportion was much higher, viz. 97 per
285,753 274,237 291,915 147,650
Bills purchased—Total
Bankers' acceptances—Total. 256,184 268,053 290,203 144,595
cent in June and 98 per cent in May. SixIn the domestic trade
37,889
62,219
62,811
72,768
month bills, composed of agricultural and liveIn the foreign trade
193,373 195,295 227,984 106,706
Trade acceptances—Total
1,896
1,645
24,419
3,739
stock paper, totaled 53 millions in June, as
In the domestic trade
275
661
1,517
1,015
In the foreign trade
1,621
984
compared with 41 millions the month before
22,872
2,721
Dollar exchange
1,159
67
5,150
2,435
and 17 millions during June, 1919. The averAverage maturity (in days)
45.80
45.60
45.68
44.22
Average rate (365-day basis), per
age maturity of the bills discounted in June
6.0'
5.96
4.24
cent
4.24
figures out at 14.48 days, as compared with
United States securities purchased:
14.74 days in May and 9.79 days in June of
278
Victory notes
1,175,444
42,723 150,809
86,538
Certificates of indebtedness
last year.
A further increase in the average rate of
During the month of June the total of dis- discount, from 5.74 per cent in May to 6.2
count operations of the Federal Reserve Banks per cent in June, is noted, the average rate
was about 200 millions larger than during May, for the corresponding months in 1919 being
and about 8 millions larger than during June, 4.16 and 4.19 per cent. Four of the Federal
1919. It should be noted that the totals for Reserve Banks adopted before June systems
discounts in the table are exclusive of bills of progressive rates, namely, the Atlanta, St.
discounted for other Federal Reserve Banks, Louis, Kansas City, and Dallas banks. The
which totaled 273 millions during June and average rates of discount were higher in June
270 millions during May of this year, and 355 than in May for each of the Federal Reserve
millions during June and 258 millions during Banks, with the exception of the Kansas City
bank, where a system of progressive rates has
May of the past year.
While the discounts for the system as a been in operation since the latter part of April.
Total bills purchased in open market in
whole were larger in June than in May, the
totals for June were smaller for the Boston, June were about 12 millions more than the
Cleveland, Richmond, Atlanta, St. Louis, and month before, but about 6 millions less than
San Francisco banks, the decrease for the last- a year before. The increase in June over
May of this year was in trade acceptances,
named bank being particularly notable.
868
AUGUST, 1020.
FEDERAL RESERVE BULLETIN.
which rose from about 4 to about 24 millions,
while bankers' acceptances purchased totaled
about 12 millions less in June than in May.
Bankers' acceptances in the domestic trade
show a decline for the most recent month of
about 10 millions, and bankers' acceptances
in the foreign trade a decline of about 2 millions, while trade acceptances in the domestic
trade increased by about one-half million and
trade acceptances in the foreign trade by
about 20 millions.
The average maturity of all paper purchased
by the Federal Reserve Banks during June
was 45.68 days, compared with 44.22 days the
month before and with 45.6 days the year
before. The average rate charged on acceptances purchased in June was 6.07 per cent,
marking an advance from the May average of
5.96 per cent, while for June and for May,
1919, the corresponding rate was 4.24 per
cent.
During the month under review 66 banks
were added to the membership of the system,
the total number of members increasing from
9,329 to 9,395, while the number of banks
accommodated through discount of paper increased from 4,645 in May to 4,948 in June.
The number of members in each district at
the end of June and of May and the number
accommodated during each month is shown in
the following statement:
Federal Reserve Bank.
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
Total...
Number of member banks in
district.
Number of member bank s accommodated.
June 30.
May 31.
432
772
688
861
601
438
1,394
562
972
1,062
812
801
432
771
687
859
598
437
1,389
561
961
1,059
794
781
246
365
378
296
377
267
739
297
495
494
610
384
252
389
374
307
356
254
735
301
441
471
404
361
9,395 I
9,329
4,948
4,645
June.
May.
Federal Reserve Bank holdings of discounted
and purchased bills, by classes of paper, at the
end of June and of May, 1920 and 1919, are
shown in detail on pages 872 and 873, and are
summarized in the table below:
Summary of discounted and purchased paper held by the
Federal Reserve Banks at the end of June and of May, 1920
and 1919}
[In thousands of dollars.]
1920, e n d of—
June.
May.
1919, e n d of-
June.
May.
2 ; 431,794 2,519,4311,818,040 1,989,392
Discounted paper—Total
Secured by Government "war
1,277,980 1,447,962 1,573,483 1,802,893
obligations
Otherwise secured and unse1,153,8141 ,071,469 244.557 186,499
cured—Total
83,193
30, 836
28,619
63,537
Agricultural paper
84. 845
37,420
30,372
77,154
Live-stock paper
20,034
7,803
7,321
21,979
Trade acceptances
25,174
1,113
1,122
41,841
Bankers'acceptances
Commercial paper, n. e. s. ... 940,568 866,958 167,385 119,065
384,551 420,192 315,993 185,556
Purchased paper—Total
Bankers' acceptances—Total... 372,541 411,427 314,407 183,563
255, 564 275,369 233,519 136,741
Member banks
1,876
2,954
2,853
Nonmember trust companies.
9,225
54,598
18,729
Nonmember State banks
56,187
29,361
Private banks
38,647
47,448
14,628
29.648
Foreign bank branches and
21,856
29,469
12,654
10,612
agencies
12,010
8,765
Trade acceptances— Total
1,586
1,993
1,939
Domestic
1,542
382j
136
Foreign
10,071
7,223
1,204
1,857
1
For discounts the figures are for the last Friday of each month; lor
purchased paper, for the last day of each month.
Among the principal changes between May
and June in holdings of discounted paper the
following are to be noted: A decrease of 170
millions in paper secured by Government war
obligations, partly offset by an increase of 82
millions in paper not so secured. Holdings of
agricultural paper were larger by 20 millions
at the end of June than at the end of May of this
year, while the most recent total of 83 millions
was 52 millions in excess of the corresponding
amount a year earlier. Live-stock paper shows
an increase of 8 millions for the month of June
and an increase of 47 millions for the year,
while bankers' and trade acceptance holdings
were smaller at the end of June of this year
than at the end of May, but considerably
larger than at the end of June, 1919, the increase for bankers' acceptances being from 7
to 20 millions, and for trade acceptances from
about 1 to 25 millions. Holdings of commercial paper not otherwise specified show a further
increase, from 867 millions in May to 941 millions in June, the corresponding figures in 1919
being 119 and 167 millions, respectively.
While commercial paper constituted only 9.2
per cent of all discounts held at the end of
June, 1919, this proportion rose to 34.3 per
cent at the end of May and to 38.7 per cent at
the end of June of this year.
AUGUST,
869
FEDERAL RESERVE BULLETIN.
1920.
Holdings of purchased acceptances at the
end of June were about 385 millions, marking
a decrease of about 35 millions from the end of
May of this year but an increase of about 70
millions since June, 1919. While bankers' acceptances held show a decrease of about 39
millions from the end of May to the end of
June, trade acceptances increased by about 3
millions. As compared with June, 1919,
bankers' acceptances held on the most recent
date show an increase of about 58 millions and
trade acceptances an increase of over 10 mil-
lions, the holdings of the latter at the end of
June of last year having been less than 2 millions. Of the bankers' acceptances held at the
end of June 68.6 per cent were acceptances by
member banks, 15.1 per cent by nonmember
State banks and trust companies, 10.4 per cent
by private banks, and 5.9 per cent by foreign
bank branches and agencies. Of the trade acceptances held, about 10 millions were based
on transactions in the domestic trade and
about 2 millions on transactions in the foreign
trade.
Total discount and open-market operations of each Federal Reserve Bank during the month of June, 1920.
United States securities purchased.
Federal Reserve Bank.
Boston.
New York . .
Philadelphia.
Cleveland
Richmond
Atlanta..
Chicago
St Louis.
Minneapolis
Kansas City...
Dallas
San Francisco
.
.
.
Total, June, 1920
Total, June, 1919
Total, 6 months ending June 30,
1920
Total, 6 months ending June 30,
1919
Bills bought
Bills disin open
counted for
member banks.
market.
Victory
notes.
Bonds.
$416,684,913
3,425,122,642
496,288,767
224,297,738
287,363,052
162,751,021
5(50,925,938
178,176,535
94,757,699
142,708,174
117,290,253
230,275,223
$23,960,722
160,589,278
1,033,53"
29,244,978
3,501,948
2,979,12 *
35,419,808
3,215,491
1,424,843
1,757,440
60,000
22,585,448
6,336,641,955
6,328,911,530
285,752,619
291,915,446
$50
38,431,408,230
1,713,703,385
223,050
3S,065 028,179
1,072 767 902
1,327,775
Total.
Certificates of
indebtedness.
$53,475,500
762,769,500
28,510,000
84,527,500
I
34,437,500
27,168,000
25,321,000
9,226,000
31,370,000
118,639,500
June, 1920.
June, 1919.
$494,121,135
4,348,461,420
525,832,297
338,070.216
290,865,000
165,730,145
630,783,246
208,560,026
121,503,542
153,691; 623
148,720,253
371,500,171
$395,725,026
3,354,611,216
1,088,293,030
252,156,990
406,366,036
168,556,993
423,769,919
184,850,182
55,528,177
142,111,061
114,043,122
185,901,324
1,175,444,500
150,808,500
7,797 839 071
5,050 4,658,359,000
44,803,708,715
$277,550
363 450 1 564 655 500
6,771,913,076
138,704,143,806
i Includes $1,000 municipal warrants.
Average amount of earning assets held by each Federal Reserve Bank during June, 1920, earnings from each class of earning
assets, and annual rates of earnings on basis of June, 1920, returns.
Average daily holdings of the several classes of
earning assets.
Discounted Purchased United
States
bills.
bills.
securities.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, June, 1920.
Total, June, 1919.
Total.
Calculated annual rate of earnings from—
Earnings from—
Discounted
bills.
Pur- United
States
chased securibills.
ties.
$158,915,248 $31 >, 755 $24,062,292 $214, 877,295 $758,836 $157,872
788,272,697 183' 358,598 104,413,8431,076, 045,138 3,843,939 900,441
705,171 924,905
205,214,643 1,965,078 34, 525,450] 241,
9,731
~ • • 705,637
754,719 274,056
161,770,746 55,712,608 27 2 2 2 , 2 8 3 244,
494,210 119, 743,405 468,981 44,636
97,383,865 8,865,330
882,483 135, 573,319 541,130 24,908
114,709,207 4,981,629
217,484 526, 848,474 2,128,317 268,019
427,021,228 54,609,762
212,567 129, 491,232 490,315 17,778
106,641,474 3,637,191
4,039,000
457,000
73,248,000
86, 744,000 378,309 17,242
247,400 133, 536,432 554,548
109,515,689 1,773,343
8,623
708,007
73,806,819
3,599
420,300 87, 935,126 345,3731
445,258
698,423
212,
144,521,967 49,633,508
239,885
289,783|
i, 809 347,445,095',3,209,650,487 11,887,7951,966,790
2,461,021,583 401,183,
1,842,111,951 246,157,r,789 235,722,33ri|2,323,992,07r 6,361,387
" ""' — 848,092
~
$40,871
216,567
64,634
46,556
22,254
26,215
77,733
32,974
15,720
38,986
22,929
31,741
Total.
1957, 579
4,960, 947
999, 270
1,075, 331
535, 871
592 253
2.474. 069
541'. 067
411, 271
602; 157
371 ,901
970! 049
637,18014,491,765
451,324 7,660,803
DisPur- United
States Total.
counted chased securibills.
bills.
ties.
Per ct. Per ct. Per ct. Per ct.
5.83
2.07
6.04
5.44
5.95
5.99
2.53
5.62
5.50
2.28
6.04
5.04
5.
6.00
2.09
5.36
2.01
5.88
6.14
5.46
6.10
2.01
5.76
5.33
2.10
6.08
5.99
5.73
5,96
2.09
5.61
5.10
2.03
6.30
5.21
5.78
5.93
2.14
6.18
5.50
2.07
5.69
6.10
5.14
5.90
2.12
5.90
5.57
5.89
4.20
5.98
4.19
2.24
2.33
5.51
4.01
870
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
Bills discounted during the month of June, 1920, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
,
Total, June, 1920
Total, June, 1919
1
Customers'
paper secured by
Government war
obligations.
Member banks' collateral
notes.
Secured by
Government
war obligations.
$12,289,026 $337, 099,120
64,056,828 2,355, 679,526
16,013,900
359, 097,886
7,421;322
179, 480,080
3,399,082
239; 109,667
4,400,562
113, 706,135
16,198,818
329. 900,321
7,606,355
102^ 899,084
1,189,056
45, 514,640
4,499,367
860,223
1,579,826
923,728
1,866,123
153, 450,985
140,526,265
134,483,163
1
Bankers
Otherwise
secured.
2
All other
(commercial
n.e.s., agricultural and
live-stock
paper).
Total.
$414,809
$489,639
$66,392,319
$416,684,913
2,142,998 2 2,065,0^5 1,001,178,225 3,425,122,642
354,533
120,530,898
496,288,767
291,550
35,234,616
224,297,738
1,217,192
177,528
41,908,925
287,363,052
1,803,878
41,969,922
162,751,021
253,444
1,924,958
560,925,938
211,121,638
460,999
1,222,262
178,176,535
65,910,048
726,900
743,548
94,757,699
46,169,267
374,736
142,708,174
37,804,850
30,021
1,001,913
117,290,253
24,445,165
153,074
729,460
3
230,275,223
67,154,997
1,990,016 4,783,302
1
$767,000
1,141,500
490,000
2,021,900
290,600
1,510,000
511,800
459,000
1,029,800
4,404,721,395 8,221,600
5,901,794,546 20,272,961
Includes $88,000 in the foreign trade.
Bankers'
acceptances.
Trade
acceptances.
13,920,303
7,948,697
9,431,522
496,352
1,759,820,870
263,915,811
Includes $65,000 of dollar exchange bills.#
6,336,641,955
6,328,911,530
Average Average
maturity
rate
in
(365-day
days.
basis).
12.99
7.10
12.32
17.31
15. 74
25.59
35.75
26.38
43. 62
35.02
29.11
26.22
Per cent.
6.24
6.19
5.51
5.75
5.95
5.82
6.64
5.94
6.78
6.72
5.95
5.93
14.48
9.79
6.20
4.19
3 Includes $42,750 in the foreign trade.
and trade acceptances in the foreign and domestic trade and dollar exchange bills purchased during the month of
June, 1920; also average rates and maturities of bills purchased by each Federal Reserve Bank.
Bankers' acceptances.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago .
St Louis
Minneapolis
Kansas City
Dallas.
San Francisco
In the
foreign
trade.
In the
domestic
trade.
Trade acceptances.
Total.
In the
domestic
trade.
In the
foreign
trade.
Dollar
exchange
bills.
Total.
Average
Total bills Average
rate
purchased. maturity
in days. (365-day
basis).
$11,467,425 $12,488,297 $23,955,722
$5,000 $23,960,722
27,477,744 105,244,645 132,722,389 $1,484,767 $22,055,797 $23,540,564 4,306,325 160,569,278
711,630
1,033,530
321,900
1,033,530
6,743,442 22,371,536 29,114,978
130,000 29,244,978
2,817,948
3,501,948
684,000
3,501,948
711,007
2,979,124
2,268,117
2,979,124
34,786,428
7,474,571 27,311,857
633,380 35,419,808
420,000
3,215,491
2,795,491
3,215,491
1,329,843
1,424,843
95,000
1,424,843
1,757,449
1,757,449
1,757,449
60,000
60,000
60,000
62,307
816,531
3,422,845
18,208,765 21,631,610
878,838
75,000 22,585,448
193,372,977
227,983,824
Total, June, 1920. 62,810,535
Total, June, 1919. 62,218,856
256,183,512 1,547,074
290,202, 680
661,269
22,872,328
983,940
24,419,402
1,645,209
5,149,705
67,557
285,752,619
291,915,446
32.91
39.49
50.27
56.02
47.72
66.83
64.58
37.21
57.32
66.43
38. 00
56.33
Per cent.
6.15
6.06
5.99
6.03
6.08
6.08
6.12
6.20
6.06
6.08
6.08
6.00
45.72
45.60
6.07
4.24
Amount of bills discounted and acceptances bought by each Federal Reserve Bank during April, May, and June, 1920 and
1919, distributed by maturities.
15-day maturities.
30-day maturities.
60-day maturities.
Federal Reserve Bank.
Discounts.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total.
Discounts. Acceptances.
Total.
Discounts. Acceptance?.
$1,001,301,420 $32,318,195 $1,033,619,615 $38,674,783 $10,303,757 $48,978,540 $64,590,550 $28,005,688
9,401,501,512 151,769,926 9,553,271,438 38,299,109
67,651,212 105,950,321 77,301,220 88,684,335
112,500 1,409,802,730
1,409,690,230
16,720,865
410,950
17,13i;815
16,484,528
644,991
6,095,740
636,247,137
630,151,397
15,968,689
7,772,574 23,741,263 33,610,137 31,656,504
1,090,984
780,840,478
779,749,494
18,720,926
1,442,153 20,163,079 39,476,840 6,560,602
' 708,050
17,900,984
379,433,614
378,725,564
16,153,384
1, 747,600
32,293,745 3,948,687
16,647,693 1,046,206,540
1,029,558,847
66,908,458
4,763,392 71,671,850 156,723,963 38,600,484
4,411,035
447,086,812 23,998,468
' 442,675, 777
70,662 24,069,130 100,031,451 1,325,669
96,919
144,988,833 20,853,141
144,891,914
781,402 21,634,543 26,319,759
2,184,350
13,617,621 32,611,329
282,146, 761 13,385.293
282,146, 761
232,328
1,678,406
5,047,958
270,378,131
270,378,131
4,938,323
109,635
17,985,391 1,193,675
710,760,956
708,200,994 " " 2,559,' 962'
19,743,108
12,262,977 32,006,085 45,813,713 44,640,662
Total three months
ending:
June 30, 1920.. 16,478,972,041
June 30,1919.. 19,090,756,531
Acceptances.
215,811,004 16,694,783,045
142,253,112 19,233,009,643
294,364,547
,53,349,156
107,548,642 401,913,189 643,242,626 249,124,053
99,603,995 152,953,151 118,415,536 189,360,820
Total.
$92,596,238
165,985,555
17,129,519
65,266,641
46,037,442
36,242,432
195,324,447
101,357,120
28,504,109
34,289,735
19,179,066
90,454,375
892,366,679
307,776,356
AUGUST, 1920.
871
FEDERAL RESERVE BULLETIN.
Amount of bills discounted and acceptances bought by each Federal Reserve Bank during April, May, and June, 1920 and
1919, distributed by maturities—Continued.
90-day maturities.
Over 90-day maturities.
Total.
Federal Reserve Bank.
Discounts. Acceptances.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$79,258,769 $11,791,160
254,830, 731 105,316,354
82,575,965
1,360,892
46, 787, 786 33,938.387
33,436,604 4, 790,622
59,702,407 3,880,173
323,518,218 30,828,050
75, 704,434 4,163,865
62,396,838
3,120, 260
52,896,800
925,691
26,945,306
780,000
64,254,463 34,204,546
Total three months
ending:
June 30, 1920.. 1,162.308,321 235,100,000
June 30, 1919.. ' 307,526,069 148,986,620
Total.
Discounts. Acceptances.
$91,049,929
360,147,085
83,936,857
80,726,173
38,227,226
63,582,580
354/346,268
79,868,299
65,517.098
' 53,822,491
27,725,306
98,459,009
Total.
Discounts.
Acceptances.
Total
$27,978 $1,183, 853,500 $82,418,800
,266, 272,300
92,214 9, 772; 024,786 413,421,827 10,185; 446,613
15,339 1,525, 486,927
2,529,333 1,528, 016,260
242,137
726, 760,146 79,463,205
806, 223,351
2,976,534
874, 360,398 13,884,361
888, 244,759
6, 684,623
493, 559,723
503, 844,233
10,284,510
897,879
20,188,393 1,596;
90,839,619 1,687, 737,498
3,850,876
646, 261,006
9,971,231
656, 232,237
277, 896,002
17,251,419
6,182,931
271, 713,071
421, 096,164
37,219,556
2,836,425
418, 259,739
665,128
337; 748,438
15,417,977
335,
2.083,310
951^ 192,488
19,512,063
857, 524,341 93,668,147
$27,
92,
15,
242,
2,976,
6,684,
20,188,
3,850,
17,251,
37,219,
15,417
19,512,
1,397,408,321 123,479,109
456,502,689 46,098,934
123,479,109 18,702,366,644 807,583,699 19,509,950,343
46,098,934 19,616,146,226 580,204,547 20,196,350,773
Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from Apr. 1 to June SO, 1920.
[In thousands of dollars.]
Rediscount ed or sold by Federal Reserve Bank of—
Discounted or purchased by Federal
Reserve Bank of—
New York.
April.
Boston
New York.
Cle\ eland
Minneapolis
Dallas
San Francisco
June.
5,003
April.
April.
May.
29,500
27,500
5,000
5,000
3,500
Total
2,371
5,003
2,371
5,003
67,000
3,500
75,000
67,000
3,500
75,000
15,000
40,000
May.
June.
May.
30,000
45,000
30,000
Chicago.
Jane.
April.
May.
June.
1
60,000
10,802
3,000
14,002 1 50,500
6,850
23,000
38,000
15,000
28,011
18,000
75,000
90,000
13,802
20,852
73,500
53,000
46,011
75,000
90,000
13,802
20,852
73,500
53,000
46,000
20,000
2,371
Purchased bills
Discounted bills .
Atlanta.
Richmond
Philac!elphia.
11
Rediscounted or sold by Federal Reserve Bank of—
Discounted or purchased by Federal
Reserve Bank of—
April.
Boston
New York
Cleveland
Dallas
Total
Purchased bills
Discounted bills
May.
June.
April.
May.
13,500
5,000
12,500
27,500
April.
May.
June.
1,500
16,000
26,500
6,000
16,000
8,000
24,000
13,000
23,000
6,000
June.
Fan
Francisco.
Dallas.
Kansas City.
Minneapolis.
St. Louis.
April.
May.
June.
18,000
9,000
10,000
3,000
10,058
10,058
5,000
25,000
5,000
3,000
5,000
73,500
35,000
8,000
18,500
40,000
44,000
22,000
32,000
42,000
4,000
18,000
22,000
6,000
67,500
35,000
8,000
18,500
40,000
44,000
22,000
32,000
42,000
4,000
18,000
22,666
30,000
15,000
21,000
3,000
April.
1,000
7,500
10,058
872
FEDERAL RESERVE BULLETIN.
AUGUST,, 1920.
Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from Apr. 1 to June SO, 1920—Contd.
Rediscounted or sold by all Federal
Reserve Banks since Jan. 1,1920.
Rediscounted or sold by all Federal Reserve Banks.
Discounted or purchased by Federal
Reserve Bank of—
Boston
New York
Cleveland
Atlanta
Chicago...
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
April.
57,500
158,558
9-},CJO
June.
May.
43,000
131,802
95,500
Total.
61,503
96,013
12 ,.331)
Purchased
bills.
Discounted
bills.
5,003
10,069
c,oco
157,000
376,304
303,850
2,371
162,003
386, 373
3 9,S5J
5,000
5,000
5,000
20,000
10,871
20,000
10,871
20,000
8,500
Total
345,929
270,302
277,866
Purchased bills
Discounted bills
18,429
327,500
270,302
5,014
272,852
Purchased
bills.
Total.
232,582
392,271
428,607
57,087
173,590
13,000
40,029
25,04$
143,000
29,279
894,097
8,582
10,967
29,657
5,087
5,090
5,049
5,779
Discounted
bills.
224,000
381,304
398,950
52,000
168,500
13,000
40,029
20,000
143,000
23,500
1,534,494
23,443
70,211
870,654
1,464,283
Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank, on the last Friday in June,
1920, distributed by classes.
[In thousands of dollars.]
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
June, 1920
May, 1920
June, 1919
May, 1919
Percentage distribution by
class of paper:
June, 1920
May, 1920
June, 1919
May, 1919
Agricultural
paper.
13
624
278
140
4,439
5,412
27,706
2,297
9,663
7,454
11,236
13,931
Member banks' collateral notes.
Customers'
paper seLive-stock cured by
Trade acGovern- Secured by
paper.
ceptances.
ment war
GovernOtherwise
obligations ment war
secured.
obligations.
1,958
20,707
35,243
10,862
13,943
30,880
140,043
62,871
17,077
8,991
7,695
18,413
14,772
2,491
7,234
2,122
3,246
55,316
378,460
98,363
102,500
39,311
41,289
112,334
39,8.9
2,605
26,053
27,106
38,979
83,193
63,537
30,836
28,619
84,845
77,154
37,420
30,372
315,835
326,473
232,818
187,683
3.4
2.5
1.7
1.4
3.5
3.1
2.1
1.5
13.0
12.9
12.8
9.4
3
269
142
1,718
Bankers'
acceptances.
151
768
165
272
147
732
227
269
192
358
3,739
816
1,657
1,506
2,059
3,491
1,137
420
919
681
3,251
769
12,523
371
325
962,145
1,121,489
1,340,665
1,615,210
2,923
3,154
13,983
9,628
39.6
44.5
73.7
81.2
0.1
0.1
0.8
0.5
Another
(commercial paper
n. e. s.).
Total.
243
4,955
58,880
246,173
27,719
51,291
43,910
53,761
261,769
45,546
35,507
32,942
20,956
59,191
146,216
781,562
190,421
173,410
99,067
114,058
426,955
106,679
72,125
110,138
73,475
137,688
20,034
21,979
7,803
7,321
25,174
41,841
1,113
1,122
937,645
863,804
153,402
109,437
2,431.794
2,519,431
1,818,040
1,989,392
0.8
0.9
0.4
0.4
1.0
1.7
0.1
0.1
1,959
2,970
38.6
34.3
8.4
5.5,
100
100
100
100
AUGUST, 1920.
873
FEDERAL RESERVE BULLETIN.
Acceptances purchased by each Federal Reserve Bank and held on June 30, 1920, distributed by class of accepting
institutions.
[In thousands of dollars.]
Trade acceptances.
]Bankers' acceptances
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City.
Dallas
San Francisco...
.
Total:
J u n e 30 19°0
May 31, 1920
Apr 30,1920
Mar. 31, 1920.
Feb 29, 1920
Jan. 31, 1920 .
June 30 1919
June 30,1918
Member
banks.
.
..
Nonmember
trust
companies.
26 967
104 337
1 280
28 240
7 056
4 080
51,887
3,302
1.663
2,161
405
24,186
146
1,730
2,^5 564
275,369
270 808
282^ 339
364 940
383,375
233 519
173,698
1,876
2,954
1 237
1,389
2 100
6,134
9 225
1,992
Nonmember
State
banks.
1 814
37,954
118
10 288
Private
banks.
3,862
23,641
27
8,263
Foreign
banks,
branches,
and
agencies.
273
14,214
Total.
342
100
269
1,109
3,713
1,745
2,262
33 062
181,876
1 425
51,409
7 056
4.080
53,525
3,402
2,234
2,161
405
31,906
54 598
56,187
45 055
55,390
70 127
68,592
29 361
459
38,647
47,448
48,549
51,012
60,218
61,218
29 648
21 478
21,856
29,469
31 210
23,654
33,440
36,203
12,654
12,315
372,541
411,427
396,859
413,784
530,825
555,522
314,407
209,942
4,618
187
302
Grand
total.
Domestic.
Foreign.
1,692
8,557
Total.
isi
iiii
1.665
33 062
192,125
1 425
51 505
7 056
4,080
53,525
3,402
2,234
2,161
405
33,571
1,939
1,542
600
572
580
1,893
382
10,071
7,223
9,788
5,566
4,800
4,595
1,204
7,418
12,010
8,765
10,388
6,138
5,380
6,488
1,586
7,418
384,551
420;192
407,247
419,922
536,205
562,010
315,993
217,360
10,249
96
96
874
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM FROM JUNE 16 TO
JULY 15, 1920.
[Amounts in thousands of dollars.]
Items drawn on banks in own
district.
Federal Reserve
Bank or branch.
Located in Federal
Reserve Bank
and branch cities.
Located outside
Federal Reserve
Bank and branch
cities.
Items drawn on
Treasurer of
United States.
Items forwarded to Items forwarded to
other Federal
parent bank or to
Reserve Banks and branch in same
their branches.
district.
Total.
Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount.
658,820
Boston
727,643 2,834,264
493,911 147,895
,013,337 2,256,547 3,845,365 1,321,947 906,231
New York
337,490
146,283
Buffalo
113,783
62,838 15,727
,336,484
Philadelphia....
921,511 1,893,325
276,381 161,936
313,109
Cleveland
209,543 52,693
304,946 1,078,507
43,047
745,167
Cincinnati..
153,567
99,091
165,784
Pittsburgh.
291,158 345,865 781,999
119,165 47,206
45,577
1,405,822
Richmond
96,020
299,261
163,738
660,290
186,441
Baltimore..
84,928 50,556
190,744
299,453
95,722
Atlanta
66,546 23,513
81,648
133,294
Birmingham
12,752 10,821
42,898
23,588
9,501
113,161
Jacksonville
15,618
26,493
20,694
11,198
183,536
Nashville
24,676
46,843
44,724
16,552
97,979
New Orleans
16,716
52,568
61,328
Chicago
767,350
842,303 3,247,246
451,500 333,032
343,206
Detroit
201,826
214,231
52,755 32,558
St. Louis
207,984
261,168 1,226,671
105,607 106,325
Little Rock.
243,230
42,332
24,851
19,354
6,324
Louisville..
331,244
84,373
26,307 22,230
66,751
Memphis...
139,442
65,601
11,490
8,684
34,210
Minneapolis
209,673
121,371 38,395
155,791 1,431,435
Kansas City
370,458 2,363,162
332,417
289,149 87,982
Denver
301,283
18,288
64,271
23,009
70,375
Omaha*.
479,805
68,724
43,528 41,669
94,423
Dallas
72,495 1,469,335
74,954
251,978 24,637
El Paso
12,155
12,381
125,612
27,547
14,631
Houston
14,842
48,372
325,987
66,198
35,895
San Francisco..
108,962
270,382
29,979 44,582
113,618
Los Angeles
84,059
444,654
46,342 19,897
109,611
Portland...
38,198
165,515
12,273 17,973
48,947
Salt Lake City....
12,201
30,220
364,222
33,579
42,907
Seattle
,
50,217
186,092
16,527 25,338
63,075
Spokane
,
9,417
18,062
149,542
12,657
26,386
17,093
479,176
1,214
53,604
6,766
3,978
7,627
8,334
13,889
6,102
1,268
1,474
1,662
4,078
30,831
13,500
8,896
1,816
4,739
1,422
4,309
6,363
2,702
3,378
2,773
2,280
2,005
202,465
10,889
7 457
2,712
li;412
1,007
3,640,979
5,764,933
499,500
3,391,745
1,444,309
941,781
1,120,363
1,547,419
897,287
418,688
187,013
149,155
241,577
167,099
4,347,628
577,590
1,540,980
291,886
437,847
213,727
1,679,503
2,783,561
389,946
615,897
1,568,926
165,314
407,027
428,582
574,162
232,435
419,330
274,505
185,345
1,238,647
4,057,670
177,835
1,251,496
521,254
268,853
472,657
471,333
289,-K61
154,296
37,608
37,786
71,062
82,122
1,324,634
280,486
375,671
46,021
97,797
47,122
281,471
665,970
89,982
115,630
327,246
29,292
86,272
341,406
141,290
57,929
66,511
78,156
31,726
107,624
906,975
142,129
713,524
21,276
14,074
61,536
115,166
147,035
19,251
15,463
27,474
26,690
42,541
287,142
8,872
23,552
8,136
12,141
2,053
85,162
252,241
85,923
35,259
86,415
21,314
12,633
24,33P.
52,482
2,586
4,887
16,535
5,879
85,191
622,736
34,840
233,906
39,964
14,115
46,172
81,071
122,734
18,190
11,743
8,161
4,939
13,494
49,732
8,857
8,711
2,198
2,368
963
38,057
83,618
20,253
9,202
38,913
8,782
3,645
4,654
7,874
1,914
15,613
6,152
2,728
June 16 to July 15,
1920
927,221 37,546,039 13,1,616,792 13,388,306 U , 651,490
7,109,340 7,988,267 28,1,017,717 4,701,304 2,418,982
May 16 to June 15,
1920
7,010,705 7,679,173 27
27,476,667
509,831 36,452,80812, ,841,650 23,429,896 1,645,107
4,652,6461,965,436
;
June 16 to July 15,
1919
4,960,503: 6,361, 83217 ,028,180 3;,776,4342,380,545 1,224, 428 24,,369,22811 ,362,694 32,364,338 31,417,259
1
2
3
Includes 7,313 items amounting to $2,073,000, forwarded direct to member banks in
Includes 6,662 items, amounting to $2,021,000, forwarded direct to member banks in
Includes 4,405 items, amounting to $2,846,000, forwarded direct to member banks in
NOTE.—Number of business days in period 25, except for Baltimore and Minneapolis, which
Number of member banks
in district July 15.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago.
St. Louis
Minneapolis
Kansas f.itv
Dallas..
. . . .
Ran Francisco
Total
. . . .
1919
10,448
21,303
45,015
9,346
31,977
9,421
9,245
54,576
25,196
7,422
11,465
7,218
12,358
6,767
24,484
31,938
4,260
3,122
17,110
6,782
9,135
9,308
10,429
12,293
39,959
2,551
2,155
1,513
10,256
3,361
3,145
4,332
677
1,182
64,313
49,315
20,341
56,789
14,801
9,418
61,995
25,910
25,606
6,980
33,798
17,139
14,623
17,416
8,002
9,651
3,271
2,830
13,075
5,568
4,597
9,360
5,969
5,106
736,000
265,407
708,352
253,058
472,146
258,?4C
other Federal Reserve districts.
other Federal Reserve districts.
other Federal Reserve districts.
had 24.
Number of nonmember
banks on par list July 15.
Federal Reserve district.
1920
24,612
31,173
1920
1919
432
774
688
860
606
440
1,395
564
976
1,065
822
801
429
735
669
826
574
424
1,356
519
887
1,007
746
676
256
324
427
1,077
762
433
4,238
2,517
2,903
3,388
1,238
1,042
241
319
406
911
349
333
3.067
1,606
1,318
2,290
321
910
9,423
8,848
18,605
12,071
Number of incorporated
banks other than mutual
sa\ings banks not on par
list July 15.
1920
1919
174
154
1,081
1,241
1,098
1,055
1,548
953
883
154
2,136
8,167
781
1,181
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
875
CHANGES IN CONDITION OF FEDERAL RESERVE BANKS.
Loan operations of the Federal Reserve
Banks during the four-week period between
June 25 and July 23, as measured by the
amounts of discounted bills held at the close
of each week, moved within relatively moderate limits, following an upward course during
the first two weeks and a downward course
during the last two weeks under review. As a
consequence, the July 23 total of 2,469.9
millions of discounted bills held by the Federal
Reserve Banks shows an increase of 38.1
millions over the corresponding June 25 total.
Weekly changes in these totals reflect largely
the character and volume of the Treasury's
operations, including the issue and redemption of certificates and the deposits of funds
with and withdrawals from Government
depositaries. Redemption operations included
the redemption on July 1 of the balance of
about 200 millions of 3-months' loan certificates; also the redemption two weeks later of
about 84 millions of loan certificates also
issued three months before. On the latter
date the Government issued slightly over 200
millions of loan and tax certificates, the net
result of these operations being a substantial
reduction in the amount of certificates held by
the member banks and incidentally a moderate
decrease of loans secured by such certificates
carried by the Federal Reserve Banks for their
members. July 23 holdings of bills secured by
United States war obligations, 1,247.4 millions,
were 30.6 millions less than the June 25 holdings, while the holdings of other discounted bills
show an increase during the four weeks of 68.7
millions.
From 52.6 per cent on June 25, the share of
war paper in the total discounts held by the
Federal Reserve Banks declined to slightly
over 50 per cent on July 23. All classes of war
paper held on the latest date were below the
corresponding totals shown four weeks earlier.
Thus, loans secured by Liberty bonds declined
from 611.8 to 600.5 millions, loans secured by
Victory notes from 298.3 to 297.2 millions, and
loans secured by Treasury certificates from
367.9 to 349.7 millions.
For the first two weeks of the period an increase of about 154 millions is seen in the
amount of 15-day paper, accompanied by a
reduction of about 50 millions in the holdings
of 30-day paper and smaller changes in the
holdings of paper of longer maturities. For the
last two weeks bills of all maturities, except
90-day paper, have shown substantial reduc-
tions. Of the June 25 total of 2,431.8 millions,
15-day paper constituted 52.8 per cent, while
of the total discounts held four weeks later, the
share of 15-day paper had gone up to 57.6 per
cent.
Holdings of purchased acceptances, apparently because of the growing investment de-,
mand for prime bills by country banks, savings
banks, insurance companies, and industrial corporations, show a continuous decrease from
399.2 to 353.5 millions. Almost 90 per cent
of these bills are in the portfolios of the Boston,
New York, Cleveland, Chicago, and San Francisco banks, the New York bank acting as
agent of the other banks in purchasing and
distributing the bulk of this class of paper.
Changes in the totals of Treasury certificate
holdings represent largely amounts of special
certificates redeemed or given to the Federal
Reserve Banks to cover temporary advances
by the latter to the Treasury pending receipt
of funds from depositary institutions.
Discounted bills held by the several Federal
Reserve Banks include amounts held under
discount for other Federal Reserve Banks.
During the four weeks under review the
amounts of paper, largely 15-day bills, thus
held varied between a maximum of 130.9
millions on July 2, and a minimum of 123.2
millions on July 23, the latter being 1.7 millions below the June 25 total. No change is
shown in the number of discounting banks,
which includes those at Boston, New York,
and Cleveland. The number of rediscounting Federal Reserve Banks declined from
seven to six. The Chicago bank, which on
June 25 had about 25 millions of rediscounted
paper outstanding, no longer figures among
the list of rediscounting banks, which on July
23 included the Reserve Banks of Richmond,
Atlanta, St. Louis, Minneapolis, Kansas City,
and Dallas. It may be noted in this connection that four of these banks, viz, those at
Atlanta, St. Louis, Kansas City, and Dallas,
which have been applying progressive discount
rates during the period under review, show an
increase for the period in their rediscounts
with other Federal Reserve Banks from 51.4
to 87.9 millions. This somewhat more than
offsets the increase in discounts granted to
member banks by these four Reserve Banks.
Holdings of acceptances purchased from
other Federal Reserve Banks show an increase
from 6.6 to 42.5 millions, the latter amount
representing acceptances sold by the New
876
FEDERAL RESERVE BULLETIN.
York and Chicago banks without indorsement
from their own portfolios to the Boston, Philadelphia, Cleveland, and San Francisco banks.
No change is shown by the Federal Reserve
Banks in the amount of guarantor's liability of
16.2 millions on bills purchased for account of
foreign correspondents.
Government deposits varied between 21.7
millions on July 2, and 11.7 millions on July
16, members' reserve deposits show a variation
between 1,874.2 and 1,825.6 millions on July
2 and 23, respective^, while other deposits,
largely because of the partial withdrawal of the
deposit standing to the credit of the Argentine
Government, show a steady reduction from 70
millions on June 25 to about 49 millions on July
23. Net deposits, after reaching a high level
of 1,754.9 millions on July 2, declined steadily
to 1,685.6 millions on July 23, or 36.6 millions
below the total shown four weeks earlier.
Federal Reserve note circulation shows an ex-
AUGUST,
1920.
pansion of 64.2 millions during the first two
weeks and reached a maximum for the year of
3,180.9 millions on July 9, as a consequence of
the heavy demand for currency incident to
holiday travel. The return flow of these notes
during the following two weeks was almost
equal in volume to the increase in circulation
for the two previous weeks, and the volume
of circulation reported on July 23, 3,118.2
millions, was only 1.5 millions in excess of the
total shown four weeks before. The banks'
gold reserves, in consequence of further gold
imports, show a gain of 13.9 millions, while
total cash reserves, owing mainly to substantial silver deposits by the Government, show a
gain of 25.4 millions. The banks' reserve
ratio, after a decline from 43.6 to 42.8 per cent
on July 2, shows a steady rise, reaching on
July 23 the high level of 44.4 per cent, a gain
of 0.8 per cent as compared with the June 25
reserve percentage.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 2 to July 23, 1920.
RESOURCES.
[In thousands of dollars.]
Boston.
Gold and gold certificates:
July 2
July9
July 16
July 23
Gold settlement fund, Federal
Reserve Board:
July2
July 9
July 16
July 23
Gold with foreign agencies:
July 2
July 9
July 16
July 23
Gold with Federal Reserve
agents:
July 2
July9
July 16
July 23
Gold redemption fund:
July 2
July9
Julyl6
July 23
Total gold reserves:
July2
July9
July 16
July23
Legal tender notes, silver, etc:
July 2
July9
July 16
July 23
Total reserves:
July 2
July9
July 16
July 23
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
2,380
2,398
2,425
2,454
7,971
8,067
8,153
7,669
Chicago.
San
St. Minne- Kansas Dallas. FranLouis. apolis. City.
cisco.
24,142
24,250
24,249
24,396
3,454
3,488
3,340
3,301
7,237
7,207
7,231
7,238
20,015 10,443 60,735
19,940 4,220 62,924
15,456 5,104 49,719
17,301 5,808 68.271
8,394
8,951
5,808
12,476
6,660
4,812
8,758
5,956
4,015
4,015
4,015
4,015
13,272
13,272
13,272
13.272
5,242
5,242
5,242
5,242
3,011
3,011
3,011
3,011
38,908
43,029
41,107
39,215
48,466
50,566
50,182
48,261
169,381
167,547
164,447
160,670
45,873
46,374
45,358
44,744
3,006
1,921
3,729
2,877
7,960
5,963
7,006
8,131
8,020
6,278
6,675
7,824
31,177
32,629
35,262
38,608
163,819
162,640
162,557
164,703
223,165
230,791
238,840
246,184
74,728
76,795
71,459
72,566
78,915
73,146
74,129
73,577
107,200
106,846
116,388
119,015
384
222
270
256
1,621
1,580
1,758
1,857
90
101
138
651,002
631,781
639,365
615,634
164,203
162,862
162,827
164,959
224,786
232,371
240,598
248,041
74,818
76,896
71,597
72,635
11,540
11,600
11,679
11,760
83,504
82,217
82,078
89,113
1,123
1,156
1,151
1,166
10,074
10,117
10,195
10,227
22,458
36,716
44,759
49,651
103,090
83,980
83,143
50,381
50,519
45,320
46,933
36,612
51,706
60,057
66,563
73,395
8,142
8,142
8,142
8,142
40,932
40,932
40,932
40,932
8,922
8,922
8,922
8,922
9,146
9,146
9,146
9,146
5,465
5,465
5,465
5,465
122,485
119,620
121,152
128,670
282,362
281,827
280,907
280,222
88,294
91,790
89,605
107,672
149,233
149,550
149,207
150,539
14,861
17,285
15,016
16,948
33,914
35,979
35,917
35,971
14,961
15,452
15,946
10,331
179,486
193,363
200,748
215,171
543,802
524,935
522,977
496,619
7,390
6,900
7,150
7,364
186,876
200,263
i207,898
[222,535
481
498
512
533
Total.
13,995
12,620
12,266
17,200
171,176
168,929
168,767
180,529
26,561 10,705 31,474
25,832 5,971 44,037
26,301 6,072 35,289
23,811 7,317 36,366
402,760
402,760
393,905
387,345
5,353
5,353
5,353
5,353
2,900
2,900
2,900
2,900
5,131
5,131
5,131
5,131
111,531
111,531
111,531
111,531
31,806
32,278
32r077
31,691
36,913
36,795
36,599
36,694
24,477
25,555
29,431
28,488
108,746
100,171
112,803
103,349
1,146,944
1,145,102
1,152,875
1,160,215
5,043
5,217
5,304
5,565
18
22
195
75
3,430
4,248
4,106
3,573
8,039
8,589
4,278
3,755
8,856
9,411
10,909
139,285
142,994
144,343
143,651
298,707
300,622
286,949
305,217
68,006
69,272
65,052
71,328
48,732
47,330
51,272
47,971
72,738
72,726
72,871
69,964
51,396
48,326
48,169
47,932
168,202
171,370
176,398
172,039
1,971,696
1,971,316
1,971,421
1,983,271
1,518
1,366
1,743
1,839
8,222
8,632
8,871
7,516
7,331
7,351
7,444
58
170
106
172
1,602
1,630
1,651
1,833
1,466
1,342
1,384
1,241
738
757
816
958
137,805
136,877
147,626
150,741
80,433
74,512
75,872
75,416
306,929
309,254
295,820
313,910
75,522 48,790 74,340 52 862
76,603 47,500 74,356 49,'668
72,403 51,378 74,522 49,553
78,772 48,143 71,797 49,173
168,940
172,127
177,214
172,997
2,109,501
2,108,193
2,119,047
2,134,012
5,275
5,311
5,488
5,472
AUGUST, 1920.
877
FEDERAL RESERVE BULLETIN.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 2 to July3, 1920—Contd.
RESOURCES—Continued.
[In thousands of dollars.]
Boston.
New
York.
Bills discounted:i
Secured by Government
war obligations—
111,298 531,782
July2
93,045 544,229
July9
81,699 542,559
July 16
July23
78,845 529,833
All otherJuly 2
66,917 300,105
July 9
73,123 303,454
70,944 287,814
July 16
July 23
65,883 297,544
Bills bought in open market :*
July2
38,050 180,162
35,910 154,181
July 9
July 16
33,738 147,375
July23
31,621 141,003
United States Government
bonds:
560
1,457
July 2
1,457
July9
560
1,456
July 16
559
1,457
July 23
557
United States Victory notes:
July 2
50
50
July9
50
July 16
50
July 23
United States certificates of
indebtedness:
July 2
21,712 101,291
21,695
79,214
July9
78,738
July 16
23,679
75,312
July 23
26,148
Total earning assets:
July 2
238,542 1,114,847
July 9
224,338 1,082,585
July 16
210,624 1,057,992
July 23
203,059 1,054,199
Bank premises:
July 2
1,401
3,763
July9
1,476
3,763
July 16
1,497
3,767
July 23
1,516
3,783
Uncolleeted items and other
deductions from gross deposits:
July 2
64,670 167,603
July 9
68,718 161,762
July 16
76,601 187,211
July 23
61,767 161,585
5 per cent redemption fund
against
Federal Reserve
Banknotes:
July 2
1,072
3,113
July9
1,072
3,100
July 16
1,072
3,085
July 23
1,072
3,085
All other resources:
July 2
234
523
July9
1,422
282
July 16
663
611
July 23
562
280
Total resources:
July 2
492,795 1,940,851
July9
496,149 1,884,413
July 16
498,303 1,892,083
July 23
490,229 1,829,848
1
Includes bills discounted for
other Federal Reserve Banks:
July 2
35,354
34,461
July9
36,096
35,994
July 16
40,183
34,280
July
23
39,385
36,495
2
Includes bankers' acceptances
bought from other Federal
Reserve Banks, without their
indorsement:
July2
4,918
July 9
4,918
July 16
4,918 I
July 23
4,351 ,
Philadelphia.
Cleve- Richland. mond.
Atlanta.
Chicago.
MinneSt.
Louis. apolis.
Kansas
City.
.51,609
.46,759
.40,499
39,845
20,696
.14,910
.00,171
85,234
42,811
45,488
40,225
41,427
53,404
52,959
52,768
53,742
114,970
118,917
133,749
159,949
48,982 8,520
49,243 8,031
49,002 7,488
40,998 10,727
35,447 25,324 50,049 1,294,892
47,092 26,110 49,567 1,296,350
45,077 18,829 44,192 1,256,258
44,861 15,905 46,005 1,247,371
36,448
39,662
41,128
35,200
58,822
63,432
69,034
71,079
56,542 61,120 315,265 64,361
58,344 61,611 319,503 59,053 70,418
58,735 61,053 301,638 60,672 67,636
60,282
282,914 66,959 67,375
74,968 47,715 99,156 1,250,302
62,590 50,763 103,290 1,265,243
61,307 53,555 100,374 1,233,890
63,817 56,112 94,438 1,222,536
1,425
11,429
11,085
11,510
51,328
50,800
49,336
56,600
7,096
6,220
5,300
5,220
3,909
4,297
3,865
3,702
54,750
54,457
51,104
40,782
3,346
3,268
3,071
2,800
2,384
2,612
4,056
4,261
1,386
1,386
1,386
1,386
833
833
833
833
1,233
1,233
1,233
1,233
113
114
114
114
4,477
4,477
4,477
4,477
1,153
1,153
1,153
1,153
116
116
116
116
44,851
46,146
44,125
52,354
390,085
372,591
356,471
353,543
3,966
3,966
3,966
3,966
2,632
2,632
2,632
2,632
26.792
26.793
26,791
26,791
69
69
69
23,346 12,260 15,665 39,782 17,321
23,322 12,260 15,664 39,642 17,239
23,322 14,260 16,665 42,743 17,228
23,322 12,260 15,665 39,717 17,372
134,214 529,244
134,648 536,996
134,468 533,711
134,158 I527,839
8,498
8,492
8,489
8,484
12,846
12,940
12,880
12,884
8,342
8,365
9,308
8,303
11,413
11,333
15,186
13,140
309,379
281,942
294,182
287,909
135,163
129,956
131,126
129,282
88,401
89,669
87,785
90,963
134,507
134,105
130,867
133,500
85,752
89,859
86,338
84,906
208,101
212,968
206,509
208,569
3,271,519
3,242,988
3,167,661
3,138,218
556
556
556
566
730
730
762
762
906
906
907
972
232
232
232
232
13,658
13,734
14,084
14,243
22,364 63,364
24,402 61,825
24,408 70,092
23,416 68,084
41,322
44,650
46,309
41,487
40,503
40.301
51,442
39,510
785,059
797,347
890,554
772,333
665
665
665
665
12,424
12,293
12,400
12,742
227,771
231,012
225,782
223,243
255,035
253,307
242,706
237,078
119,942
123,545
119,753
120,422
592
592
595
619
1,155
1,155
1,156
1,156
752
752
1,040
1,052
589
590
590
601
2,116
2,116
2,116
2,118
866
866
66,265 81,821
64,658 81,273
77,362 89,015
69,113 79,952
57,427
60,554
63,345
60,066
27,209
29,481
32,104
26,907
109,021
113,467
123,160
100,614
43,490
46,256
49,505
39,832
1,300
1,300
1,300
1,300
871
871
871
871
451
451
451
451
528
573
531
1,908
1,820
1,951
2,240
523
523
525
523
491
416
447
545
916
916
916
916
586
586
586
586
226
194
311
310
322
145
187
a 938
187
840
97
104
100
121
111
575
461
526
523
258
282
285
309
146
51
78
97
209
201
221
245
200 & 1,456
171
326
100
c328
156
358
460,357
460,618
468,177
459,544
563,990
569,122
574,533
567,626
254,328
262,385
257,026
254,723
243,077
239,904
243,686
237,681
949,793
964,114
957,284
947,244
255,822
254,486
254,710
249,584
160,748
162,594
164,652
163,730
274,066
272,133
277,380
275,304
61,097
54,494
51,979
47,333
181,628
185,840
183,793
177,280
419,897
426,619
436,390
422,331
I
5,191
3,822
4,271
3,576
1,197,352
>, 178,377
>, 208,017
>, 075,124
130,912
126,584
126,442
123,213
n,008
10,008
10,008
18.086
10.014 I
10.014
10.014 10,001
a Includes Government overdraft of $142,000.
& Includes Government overdraft of $895,000.
Total.
405
655
680
620
3
3
3
2
10
10
10
10
36,903
31,776
31,684
35,302
2,379
2,616
2,736
3,070
San
Dallas. Francisco.
c Includes Government overdraft of $10,000.
d Includes Government overdraft of $40 2,000.
14,926
24,940
24,940
42,452
878
FEDERAL RESERVE BULLETIN.
A U G U S T , 1920.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 2 to July 23, 1920—Contd.
[In thousands oi dollars.j
Uoston.
Capital pnidin:
July 2
Juh-9
J u h 16
Jul v 23
Surplus Amd:
Julv 2
Julv 9
Julv 16
Juiv 23
Government deposits:
July 2
Julv 9
- -Jutv 16
Juh 23
Due to members—reserve account:
Julv 2 . . . .
Julv 9
Julv 16
July 23
Deferred avaiiabilitvi terns:
July 2
July 9
Julv 16
Julv 23
Other deposits, inchidiii" foreign Government creaks:
Juiy 2
7,53.'
~
}
)
}<y
12 T)l
12'351
12 351
12 351
New
York.
24,672
24.675
21,676
24 677
242
612
117,499
13,712
13 712
I ) 712
13, 712
A t-
rin-
rt.
r.onis.
C.i^O.
4.25.4 2.; 7
4' s73
l.l' 2 ;0
1 . - ll
1 j';,)')
4 ' 2 yo
• >'
8
S
x
8
7 050
7,050
7, 050
7,050
25,917
2'i 917
2;, 917
2,5 917
5, 88-1
0, 884
5,178
5,178
5,178
5 178
1,413
3 Sv»5
2. 541
1, 479
929
5 iS
i, 792
1,199
665
779.520
73S', 232
757,420
713,737
106.621
106'. 107
106/)i;2
106,33o
110, 707
143,114
1 12, wo
145.763
55,300
59, 876
57,454
5y,079
52,607 254,336
2o 1,308
.V.lj40!.J 2"JS'4U(
257,771
55 105 61 S57
52 616
5S,030 os,;,2(.s
53,969 61, i.n
48 100
47 219
48, 1U()
44,600
23 956
25 334
27,178
2.i, 090
3, 453
2 21^
2 'M'-)
J ' V,", A
1,606
1 2'o5
3 143
27,726
23 974
23 444
21,316
4 072
3 434
3 10S
2, hSO
2.15
93J
" 3 , " 404"
837
1,220
2 690
2, 324
l , ' l - i : i
1,377
921, 239 167,111 209,159 105. (>2)
876 091 165 90S 205 753 112' 172
904 i)01 170 OK) •>\ 1 i y } . 1117 ,V;)0
845,205 103,'7 75
h'li, 276
i, OiiJ
1,776
5, Ss4
62,903
63,59s
5, 970
5 7 99
4,5:-)
4, 471
79,5-2 553, l.j
•>
2 337
1 sll
2:; 3-.,2
21 ;,35*
25,77 7
1, 940,851
1, 881 413
1,892,083
1,829,848
1 232
1,428
1 815
2.042
460,357
460,618
468.177
459^514
9
0
10,
10
^01
987
140
°02
ll'.'i.j 1 *
11,210
11 3-~1'
0' 395
•i J 5 2
1 06 '
371
1,364
S40
47,427
46,169
40,773
49.042
'49,79,
1.874,161
1',-S31.), 704
1,S5S,428
1,^2.5,564
"' *'34
> ) '
• :
>
•
)
1 10
1,UI6
1,338
1 i;>2
871
939
2 471
' ' -,
J X!)
",,L 7<<l
2,;oLl
15 741
7,7,9
82,905 nv.027
S7 52 i
['; j ' \ 1 v
81,001 hi ;/2sy
Ki,2!2
S2 782 2'1 461
77 905
79.1 hi
. .
,'
j
.
77,268
'•>'! 62 i
7 12 '
7 512
i) 'i \\
i 1 'V-;
1,027
1 119
1,217
1,346
1,570
1 V3
8 531
1,815
s 1, i ; :
" ' ' ' 1' '6
21..1; 880
7,121
7,13J
7 05 J
t.i' 5M
10,718
10 734
1,779
1/215
1,273
1,3;-; 3
2 00)
2, 371
160. 74 S 27 1, O0,f;
tl's. S'">7
;
' i":4 1 1 I251 1M» 1M2'5:>t
243.1)86 ( t57' 2^- 2ol' 710 164,652 2 , , . 5 SO 1S3,705
237,681 9 4 7 , 2 4 - " J )' i>i 163,730 2', .J} 304 17 7, 280 i22^ 331
V.(.) 122
574,533
5J7'. 020
104 745
164,745
161,745
164 745
s-] 739 54,664 11"). S29
>2, isi 57, 343
5'.i, 15 \
•1 i . *>•',*.)
54,412
14 1..V.I
1 f 1 <-<)
1. i 56
] r '3
94,594
94 639
94 730
(
-5 008
2 136
1 706
1 212
11'.. ' 21
Total.
21 704
15 919
11 700
11?972
65,936
•1.705
11,(M)2
11 062
9 009
894
S S(i9
8^ 820
r.63/.!'K) 2 ' 4 , 328 2 4 3 , 0 7 7
2,304
11,602
n,r,,;2
1,2-4
7.)O
\\ 7'?
!2,03
32 2S5
l» ' 'ri')
5,71"
0,01-
[\\'i
4,152
4,152
4,152
52 S
410
J S , 9i3
1,"27
l.K.-i
1,327
9
\\ 3'!-)
1 .'• 1
8 :;>;5
S.395
8 395
S, '.',')')
1', 539
11 H I .
75,4/0
11 9 2 5
6,421
(),:--.> w
v)3
"J
2 < 4
Kan
Francisco.
\ 745
! ,. 1 2
2
•Ml, 72 1 hi") r-'i
314 <»-7 1 •"' '. * '
3 i - • I i ; •>-,' ,)(•..;
846,836 253,100 316. ( 2 1 121,130 13S.641 ;..:;',! iv
19 366 16 S ( 3
i9,4.;o
19,179 1 7 , 5 ( 2
i') 'M2 17 M)G
•4, 279
'•> 27 1
:: 2 7 6
64,u50
68 987
l!) 215 .'1 939 24 579
,V- j f;
73 803 38 971
81,309 41'~SS O. / . ; ; .
2^*455
69,277 3u,lSo
•JO, 679 24,810
882 500 251 253 31° 5 V) 12") 280 110, 554 5 1 2 , 9 8 12S, 9i!(f
871, 167 252,-sis 32«VJ1;1
Hl.3-,2 5 i 7, HI 7
38 ">r)3
37, 487
36, 3-.0
3'J 045
Dallas.
S !,S
City.
13 2 10
(i.)7
057
0c7
057
Kan-
Mill] ir-
3, 7 SO
3 7^S
Si MM
3 841
4.^2")
3. I'o2
113 751
113 276
125,200
109,487
2 ij.iS
10, l(i()
10. m i
S 32--i
s ' : 2V, 10, hi'.)
8 340 10 K)2
Rich-
1,310
3,691
2 SI 6
1,220
51 2SS
52' 500
oJj'olS
4 7, 230
_ 121
July 16
2 h;4
July 23
Total ^ross deposits:
July 2
. . .
17.1*450
Julv 9
Julv 16
L72,3U2
July 23
Federal Reserve notes in actual
circulation:
2-1 490
Juh- 2
2 ,7.332
Juh' 9
*'
.
''i (
Julv 16
2 2 284
Juh'23
. .
Federal Reserve I'ank notes in
circula'ioi]—net liabilitv
Jul ' 2
1 !:7Sl
Julv i)
13,521
Jub 1*6
J u h 23
13 70*
All other liabilities:
! 510
Juh 2
Juh. 9
Juh 16
1 S4'»
2,050
Julv 23
Total liabilities:
Julv 2
4 n 2, 7';5
Juh 9
Juh; 16.
498,303
July 23
490, 229
Cleveland.
8, 320
51,398 13,05')
51,308
51,308 13, (M)
51 308 13 00J
1 0S9
52
600
S76
121^142
122.053
rhiladel-
572 105
•y>i 434
64'6 782
572,109
71 980
55 159
5 ) 585
is,332
2, 5T\ 950
2 oil") 216
2 5"7 495
2^45?;977
3 168 814
3,ISO'948
3'i;-;5 S"3
3 118 205
1S * 23*^
l-'J.i 287
190 067
40,017
42 542
45,779
49,122
6,197,352
6 178 377
6,208^017
6,075,124
MEMOEANDA.
Contingent liability as indorser
on discounted 'paper rediscounted with other Federal
Reserve Banks:
July 2
July9
Julv 16
July 23.
Contingent liability on bills
purchased lor ioreign correspondents:
July 2 .
Julv 9
July 16
July 23
24 Q ~0
24 972
4 778 °>4 23 %\ 6°7
5,507 31 672 25,013
95 000 10 923 16,923 24, 221
22,776 15,650
31,177
1, 16s
1,168
1,168
1,168
6, 089
6, 089
6,089
6,089
1,280
1, 2S0
i; 280
1,280
1,312
1.312
1,312
1,312
784
784
784
784
576
576
576
576
1, 904
I, 904
1,904
752
752
752
16 932
15'653
13.292
12,499
IS,! Sol
q 4^1
11,'000
16,590
22,250
432
432
432
432
768
768
768
768
416
416
416
416
l i 9"6
V 707
130 912
120 584
126, 442
123,213
736
736
736
736
16,217
16,217
16,217
16,217
A i <;•
ST,
1920.
879
FEDERAL RESERVE BULLETIN.
Maturities of bills discounted and bought, also of Treasury certificates of indebtedness.
[In thousands of dollars.]
Within 15
days.
Bills discounted:
Jirlv 2
July 9
July 16
July 23
Bills bought:
July 2
July 9
July 16
July 23
United States certificates of indebtedness:
July 2
July 9
July 16 .
July 23
16 to 30
days.
31 to 60
days.
61 to 90
days.
291 845
285,693
241,400
240,829
511,758
486,603
449,893
416,780
261,835
272,743
284,650
316,347
109,527
10 \ 303
101,612
97 177
76,971
67,968
72.802
88' 680
158,984
163,173
142,024
138,714
44,603
36,147
40,033
28,972
53 794
26,705
36 987
31,136
4 400
6,600
5,600
13,773
17,600
19,400
36,975
23,680
28,023
36,533
31,252
43,945
1 389 732
1,437 411
1,437,321
1,422,134
Over 90
days.
90,024
79,143
76,884
73,817
Total.
2 545,194
2,561,593
2,490,148
2,469,907
390,085
372,591
356,471
353,543
205,562
192,704
183,368
175,375
309,379
281,942
294,182
287,909
880
AUGUST,, 1920.
FEDERAL RESERVE BULLETIN.
FEDERAL RESERVE NOTES.
Federal Reserve agents' accounts at close of business on Fridays,
July
to 23, 1920.
[In thousands of dollars.]
Boston.
New
York.
Phila- Cleve- Richdelphia. land. mond.
San
St.
Minne- Kansas |
Chicago. Louis.
apolis. I City. Dallas. Francisco.
Atlanta.
Total.
RESOURCES.
Federal Reserve notes on
hand:
44,100 128,600
July 2
51,200 135,000
July 9
49.700 135,000
July 16
43;200
135,000
July 23
Federal Reserve notes outstanding:
' 294,372 987,714
July2
297,607 993,186
July 9
295, 839 992,085
July 16
294,857 985,870
July 23
Collateral security for Federal
Reserve notes outstanding:
Gold and gold certificates900 196,608
July 2
900 196,608
July 9
900 196,608
July 16
900 196,608
July 23
Gold redemption f u n d 19,585
12,754
July 2
26,720
12,219
July 9
23,252
11,299
July 16
20,770
10,614
July 23
Goldsettlement fund,Federal Reserve Board—
102,000
73,000
July 2
92,000
73,000
July 9
97,000
73,000
July 16
73,000
107,000
July 23
Eligible p a p e r Amount required—
171,887 705,352
July 2
1177,987 711,359
July9
174,687 711,178
July 16
166,187 705,648
July 23
Excess amount held—
44,378 304,749
July 2
24,091 257,336
July 9
11,694 234,032
July 16
10,162 228,566
July 23
Total resources:
677,222 2,408,777
July 2
670,505 2,378,708
July 9
653, 072 2,353,202
July 16
648,076 2,335,306
July 23
33,880
34,680
32,280
28,780
28,920
24,150
32,750
28,450
28,194
28,453
28,253
28,863
! 68,625
66,975
; 68,425
! 67,725
262,001
265,498
265,712
267,280
327,020
332,587
331,544
332,177
129,687
[132,009
131,087
130,585
144,881
145,770
144,596
143,376
32,025
32,025
32,025
32,025
66,380
74,540
74,060
75,780
16,480 10,205
15,680 8,235
13,080 7,915
13,080 8,255
590,016 144,197
594,622 146,458
593,442 146,642
589,865 '144,528
2,500
2,500
2,500
2,500
4,330 10,055 1,100
4,470 9,030 I 1,100
5,070 11,730 3,100
6,650 12,350 3,100
79,057 1103,340
80,249 1103,682
79,943 ! 105,486
78,617 105,501
3,810 13,052
3,810 13,052
3,810 I 13,052
3,810 13,052
86,022 271,150
86,125 276,695
84,661 279,927
84,057 ,277,473
10,331
10,331
10,331
10,331
440,869
453,513
461,363
456,233
3,419,457
3,454,488
3,450,'064
3,434,186
259,226
259,226
259,226
259,226
16,905
15,401
18,216
16,283
17,208
17,525
17,182
18,514
1,908
3,529
1,607
2,715
2,966
3,166
3,182
2,761
9,236
8,403
8,303
8,526
3,832
1,833
3,417
3,303
1,654
1,626
1,425
1,539
71,389
76,389
71,389
91,389
100,000
100,000
100,000
100,000
37,000
39,500
39,500
36,500
43,000
44,900
44,500
43,000
160,145
159,144
156,144
152,144
38,231
40,731
38,131
37,631
17,100
17,600
17,600
17,100
173,707
173,708
176,107
159,608
177,787
183,037
182,337
181,638
90,779
88,980
89,980
91,370
96,415
95,204
94,414
95,115
420,635
427,075
428,995
429,195
98,324
100,084
101,284
99,784
47,251
! 47,971
! 47,866
46,926
66,427
66,887
68,887
68,807
61,545
60,570
55,230
55,569
162,404
176,524
167,124
174,124
2,272,513
2,309,386
2,298,089
2,273,971
1,659
3,479
3,117
906
50,767
44,228
33,937
29,203
11,018
18,941
8,182
12,685
22,018
23,660
23,260
23,256
64,096
65,469
57,368
54,372
18,306
11,461
11,307
10,926
23,470
23,205
17,927
24,585
46,341
45,272
40,233
42,914
11,899 13,076
16,958 12,106
17,834 8,713
17,068 8,396
611,777
546,206
467,604
463,039
559,541
569,155
566,821
564,246
733,727 298,586
733, 552 311,412
729,775 298,609
722,007 302,718
380,405
382,175
380,877
377,733
1,310,508
1,329,253
1,318,312
1,309,882
323,180
320,057
317,671
313,062
191,789
191,938
185,728
190,074
257,351
556,476 7,891,560
257,106 198,238 566,596 7,908,695
256,275 198,886 571,667 7, *30,895
260,566 197,532 566,442 7,787,644
2,212,700
2,227,700
2,231,080
2,233,480
600,080
605,880
605,880
|605,880
605,540
609,020
618,920
;618,920
334,740
338,700
339,500
341,500
353,020
354,060
355,420
355,420
1,071,240
1,085,840
1,087,280
1,089,200
334,420
337,880
337,880
337,880
166,580
166,580
166,580
166,580
226,580
228,180
231,780
234,280
1,096,386
1,099,514
1,103,995
1,112,610
304,199
J305,702
307,888
309,820
249,600
|252,283
254,626
258,293
176,859
178,238
180,160
182,052
139,514
141,315
142,399
144,319
414,844
416,678
419,778
423,555
173,743
175,742
178,158
180,272
77,318
78,096
78,722
79,708
118,910
120,028
121,224
122,129
71,583
72,505
73,629
74,573
188,550
190,125
192,493
194,947
3,271,334
3,292,919
3,319,233
3,350,921
1,116,314
1,128,186
1,127,085
1,120,870
295,881
300,178
297,992
296,060
355,940
356,737
364,294
360,627
157,881
160,462
159,340
159,448
213,506
212,745
2131,021
211,101
656,396
669,162
667,502
665,645
160,677
162.138
159,722
157,608
89,262
88,484
87,858
86,872
107,670
108,152
110,556
112,151
96,077
95,155
96,391
96,407
272,25Q
277,795
283,027
280,573
3.860,326
3,908,001
3.912,327
3,890,419
282,362
281,827
280,907
280,222
88,294
91,790
89,605
107,672
149,233
149,550
149,207
150,539
38,908
43,029
41,107
39,215
48., 466
50,566
50,182
48,261
169,381
167,547
164,447
160,670
45,873
46,374
45,358
44,744
31,806
32,278
32,077
31,691
36,913
36,795
36,599
36,694
24,477
25,555
29,431
28,488
108,746
100,171
112,803
103,349
1,146,944
1,145,102
1,152,875
1,160,215
1,010,101
968,695
945,210
934,214
175,366
177,187
179,224
160,514
228,554
227,265
216,274
210,841
101,797
107,921
98,162
104,055
118,433
118,864
117,674
118,371
484,731
492,544
486,363
483,567
116,630
111,545
112,591
110,710
70,721
71,176
65,793
71,511
112,768
112,159
109,120
111,721
73,444
77,528
73,064
72,637
175,480
188,630
175,837
182,520
2,884, 290
2,855,592
2,765,693
2,737,010
2,408,777
2,378,708
2,353,202
2,335,306
559,541
569,155
566,821
564,246
733,727
733,552
729,775
722,007
298,586
311,412
298,609
302,718
380,405
382,175
380,877
377, 733
1,310,508 323,180
1,329,253 320,057
1,318,312 317,671
1,309,882 |313,062
191,789
191,938
185,728
190,074
257,351
556,476
257,106
566,596
256,275
571,667
260*566 ! 197'532566,442
7,891,560
7,908,695
7,830,895
7,787,644
2,053
2,935
3,739
2,834
4,412 18,124
5,490 17,438
4,366 15,707
5,423 14,418
110,637
116,285
111,695
107,700
34,860 9,734 90,622
33,860 9,734 82,733
32,860 14,734 97,096
33,860 12,734 88,931
777,081
769,591
781,954
793,289
LIABILITIES.
Federal Reserve notes received from Comptroller—
gross:
July 2
598,300
July 9
611,500
July 16
611,700
July 23
611,700
Less amounts returned for
destruction:
July 2
253,828
July9
262,693
July 16
266,161
July23
268,643
Net amount of Federal Reserve notes received from
ComptrolleroftheCurrency:
July 2
338,472
July 9
348,807
July 16
345,539
July 23
343,057
Collateral received from Federal Reserve Bank:
GoldJuly 2
122,485
July 9
1119,620
July 16
1121,152
July 23
,128,670
Eligible paper—
i
July 2
1216,265
July 9
:202,078
July 16
185,381
July 23
176,349
Total liabilities:
July 2
677,222
July 9
670,505
July 16
653,072
July 23
648,076
167,660 460,800
167,660
, _467
."-,920
.
170,020 475
>, 520
170,980 475,520
7,131,660
7,200,920
7,231,560
7,241,340
AUGUST, 1920.
881
FEDERAL RESERVE BULLETIN.
Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during
the period Jan. 1 to June 30, 1920.
Boston.
Philadelphia.
New York.
Cleveland.
Federal Recerve Bank.
Received.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
Jan. 1 to June 30,1920.
Jan. 1 to June 30,1919.
Jan. 1 to June 30,1918.
Returned.
Received.
Returned.
Received.
Returned,
$25,844,000
$20,773,250
$28,672,050
2,683,500
1,131,800
1,851,000
1,203,350
2,478,200
708,320
224,000
370,300
246,150
929,930
$26,124,000
2,880,400
1,558^100
1,382,600
1,267,600
2,884,700
507,400
425,000
537,300
448,000
559,100
$2,766,600
32,160,350
$2,880,750
28,567,850
26,581,000
10,716,500
9,057,750
7,379,050
13,650,000
4,632,075
1,260,000
2,580,100
2,157,950
6,063,875
23,090,100
12,699,400
8,474,600
5,549,500
17,893,650
2,474,700
1,726,550
2,179,650
1,879,050
6,386,700
6,231,300
5,705,250
1,587,100
2,704,500
993,995
232,000
435,700
361,600
1,002,710
40,498,600
26,682,025
8,896,980
38,574,200
44,681,350
12,021,750
109,922,300
119,395,210
48,728,590
103,127,150
134,780,450
47,657,450
54,181,105
30,592,445
18,376,580
Richmond.
Atlanta.
Received.
Returned
$1,532,900
20,960,000
5,683,500!
$963,000
9,464,000
4,982,500
6,083,750
5,134,750
1,973,000
3,604,250
784,005
363,500
677,500
560,250
691,640
4,535,250
3,237,800
10,573,500
4,140,675
495,500
1,027,950
647,750
1,493,265
2,344,000
1,676,000
9,018,000
1,162,500
605,000
923,000
566,500
486,000
51,321,245
49,496,550
23,414,160
54,328,090
46,522,285
15,933,030
32,190,500
34,306,400
7,261,200
Chicago.
St. Louis.
Federal Reserve Bank.
Received.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis......
Minneapolis...
Kansas City. -.
Dallas
San Francisco.
Total:
Jan. 1 to June 30,1920.
Jan. 1 to June 30,1919.
Jan. 1 to June 30,1918
Returned
$1,402,550
14,237,100
4,800,000
2,828,400
$1,769,750
8,777,000
5,882,500
4,364,250
Received.
Received.
Returned.
Returned
$1,262,100
8,558,000
1,827,250
1,781,500
6,442,000
$1,161,200
7,349,950
1,617,900
3,156,950
4,317,200
$2,911,000
23,740,200
3,342,750
10,333,900
4,0z6,250
4,977,100
$2,526,000
13,790,000
3,013,500
10,862,500
2,032,500
3,145,000
Received.
Returned
$509,900
$707,230.00
3,659,500 4,737,300.00
675,250 1,088,290.00
1,423,300 4,161,240.0.)
1,455,000 ' 1,156,265.0:)
6,970,300 5,176,705.00
7,079,500 17,164,850.00
4,570,400
2,056,500
1,164,905
171,500
567,000
384,350
816,880
6,175,000
3,848,750
1,387,750
430,500
1,166,7501
1,152,5001
305,000|
3,083,000
5,203,950
226,500
904,250
2,336,100
1,394,730
4,548,450
7,209,550
481,200
1,039,600
2,811,350
638,100
17,041,750
7,624,000
6,877,300
1,913,250
6,626,265
7,128,500
10,914,000
5,941,500
1,697,500
4,856,000
417,5001
968,645.00
4,113,650 j 5,398,230.00
2,406,850 4,376,097.50
1,322,475 1,430,790.00
32,999,585
38,251,890
12,049,500
35,259,750!
42,483,000!
10,910,550!
33,019,380
28,815,230
10,211,880
34,331,450
28,619,355
11,392,750
89,413,765
69,956,730
19,390,780
65,907,000
61,755,000
21,924,100
30,033,225 46,365,642.50
24,751,040 37,368,050.00
6,404,560i 16,473,030.00
Minneapolis.
Kansas City.
Dallas.
San Francisco.
Total.
Federal Reserve Bank.
Received. Returned Received. Returned, Received. Returned Received. Returned.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas....."..._
San Francisco.
$423,000 $218,500 $544,100 $356,800 $449, 960.00
2,825,550 1,288,500 3,429,350 2,587,600 2,656, 200.00
658,750
349,500
243,000
477,200
522, 500.00
724,000
504,000 1,074,000 1,026,950
549, 500.00
433,750
171,500 1,199,250
439,300 1,144, 000.00
472,550
233,000 1,071,350
916,250 2,707, 450.00
10,904,500 7,702,500 5,894,000 6,877,300 1,669, 000.00
431,000 5,341,235 4,113,650 4,199, 12.50
963,145
1,063,500 1,549,350
I79i 500.00
1,562,550 1,105,000
3,339: 550.00
201,850 2,663,450 3,425,450
291,300
2,602,620 1,691,000 3,498,015 2,655,150 1,811,435.00
Received.
Returned.
,910. $3!12,754,755.00
$654,800 $1, 138,975 $38,300,910.00
), 359,500 - 582,335 150 257! 800. 00 1111,335,085.00
^ 745:500.00 44,753,290.00
621,500
120,450
536,500
613,430 37,330: 700.00 46,626,070.00
313,000
855,065 36,162^ 500.00 26,672,280.00
466,420 34,821, 350.00 29,807,675.00
644,900
200.00 82,242,260.00
973,310
4,796,500
393,310 45,841: ,972.50 28,894,215.00
1,452,230
1,848,000
624,585 13,742: 000.00 20,375,880.00
2,655,650
582,255 24,434; 000.00 24,963,685.00
2,072,450
876,735 15,481, 200.00 18,995,282.50
27,562, 200.00 21,319,030.00
1,619,550
$259,300
2,066,550
357,450
595,500
364,500
2,229,200
1,726,500
2,301,850
' 287,550
2,412,900
Total:
Jan. 1 to June 30,1920. 21,552,465 13,789,850 26,437,000|24,425,000 19,228,787.50 14 , 220,850 24,955,030 29,226,870 536,569,332. 50 488,739,507.50
17,292,750.00
Jan. 1 to June 30,1919. 19,570,570 14,071,500 27,024,84O|15,372,900 12,397,460.00 1,151,500 19,793,670116,206,695 463,453,395.
Jan. 1 to June 30,1918. 7,192,465 1,804,000 19,485,7251 3,299,905 5,971,680.00 7,122,250 6,278,700' 3,301,610178,920,470. 00166,582,755.00
882
FEDERAL RESERVE BULLETIN.
AUGUST,
1920.
CONDITION OF MEMBER BANKS IN LEADING CITIES.
A summary of changes during the four weeks certificates. On July 16 the amount of Treasending July 16 in the principal resources and ury certificates held was 473 millions, comliabilities of 814 member banks in leading cities parable with 511 millions on June 18.
Holdings of paper secured by United States
is given below:
war obligations underv. ent little change for the
Resources and liabilities of 814 member banks in
first two weeks under review, but show a
cities, June 18 to July 16, 1920.
decline of about 23 millions for the last two
weeks, while loans secured by corporate stocks
[In millions of dollars.]
and bonds, owing largely to the dullness of the
stock market and the consequent diminution
June June July July July
16.
9.
18.
of demand for speculative loans, show a reduction from 3,113 millions at the beginning to
879
879
877
877 1 880
United States bonds
3,047 millions at the end of the four weeks.
196
200
194
United States Victory notes
,
198
198
Other loans and investments, including comUnited States certificates of in420
399
473
483
debtedness
511
mercial and industrial loans proper, on the
Total United States securities
1,588 1,561 1,497 1,474 1,544
owned
other hand, show a constant expansion, and
Loans secured by Government war
stood at 11,343 millions on July 16, an increase
obligai ions (including r e d i s counts with Federal Reserve
of about 116 millions during the four-week
Bank)
1,026
1,026 1,023 1,012 1,000
Loans secured by corporate stocks
period. The net result of these changes in the
and bonds
3,047
3,113 3,107 3,119
3,080
different classes of earning assets is a decrease
All other loans and investments
(including rediscounts w i t h
of
total loans and investments of all reporting
Federal Reserve Bank)
11,343
11,227 11,272 11,285
11,335
Total loans and investments (inbanks
by 20 millions. As compared with the
cluding rediscounts with Fedtotal
of
16,589 millions reported under this
16,934
eral Reserve Bank)
16,954 16,966 16,925
16,901
Reserve balances with Federal
head at the beginning of the year, the amount
Reserve Banks
1,368 1,394 1,446 1,403 1,422
394
368
366
358
358
Cash in vault
on the most recent Friday was 16,934 millions,
Net demand deposits
11,513 11,344 11,486 11,461 11,552
indicating an increase of 345 millions for a
2,684 2,692 2,700 2,699 2.698
Time deposits
44
'122
263
108
Government deposits
268
period somewhat over one-half of the current
calendar year. For the same period the reportBills discounted and rediscounted
with Federal Reserve Banks:
ing member banks in New York City show a
2,056 2,051 1,990
Total
..
decrease in loans and investments of about
Secured by Government war
165 millions, or from 5,849 to 5,684 millions,
984
996 1,020 1,011
956
obligations
950 1,036 1,040 1,006
All other
,
877
this decrease being the result of a decline of
126 millions in Government securities held, of
Moderate liquidation of loans secured by 145 millions in loans secured by United States
Government war obligations and by corporate war obligations, and of 284 millions in loans
stocks and bonds, accompanied by a steady secured by corporate stocks and bonds, partly
and considerable growth of other loans and offset by an expansion of 390 millions in the
investments, including commercial and in- item "all other loans and investments," which
dustrial loans, characterizes the period under includes commercial loans and discounts proper.
Government deposits show little change for
review. The banks7 borrowings from the
Federal Reserve Banks, after showing an in- the first w^eek of the period, but a sharp decline
crease of 223 millions during the two weeks for the secondT and third weeks, apparently in
immediately following June 18, declined by connection w ith the redemption of Treasury
66 millions in the subsequent two weeks, and certificates, while the credit given to the Govstood on July 16 at 1.990 millions, as compared ernment on the books of member banks for the
certificates issued on July 15 accounts for the
with 1,833 millions four weeks earlier.
Holdings of Treasury certificates show a considerable increase in Government deposits
decline for each of the first three weeks of the shown for the week ending July 16. Other
period under review, the largest diminution demand deposits (net) show fluctuations bebeing reported for the week ending July 2, tween 11,344 millions on June 25 and 11,552
during which the Treasury redeemed about 154 millions on July 16, the amount on that date
millions of certificates. The last week included being about 39 millions larger than four weeks
in the table saw an increase of 74 millions in earlier, but 57 millions less than the total shown
Treasury certificate holdings caused by the for the beginning of the year. Similar fluctuissue on July 15 of over 200 millions of loan ations are shown in the net demand deposits
and tax certificates. On the same date the of the New York City banks, their total on
Treasury redeemed about 75 millions of loan July 16 being 35 millions lower than the June
AUGUST,
883
FEDERAL RESERVE BULLETIN.
1920.
18 total, and 39 millions lower than at the
be^innin^ of tho year. Time deposits show
comparatively slight changes for the four
weeks, the total at the end of the period, 2,698
millions, being about 14 millions above the
June 18 amount.
Total accommodation of reporting member
banks at Fede-al Reserve Banks, as shown on
the books of the letter, was lower on June 18,
as the result of June 15 tax payments and
Treasury operations in connection with tho
issue and redemption of loan and tax certificates, than at any date since January 23.
Two weeks later the amount was 223 millions
larger than on June 18, but the last two weeks of
the review period saw a reduction of 66 millions
in borrowings by member banks, the amount on
July 16 being 1,990 millions, or 157 millions more
than four weeks earlier. The borrowings of
reporting banks in New York City show a net
increase of 136 millions for the four weeks, the
aggregate on July 16—686 millions—being
about 13 millions less than the corresponding
total at the beginning of the year. Paper seemed by Government war obligations, which
constituted about 52 per cent of the discounts
by Federal Reserve Banks for all reporting
member banks on June 18, formed about 49
peT cent of the total on July 1.6, as compared
with 65 per cent on January 2. This ratio for
the New York City banks was 67 per cent at
the beginning of the year, as well as on June 18,
and 65 per cent on the latest report date.
Reserve balances of the reporting banks at
the Federal Reserve Banks aggregated 1,422
millions on July 16, showing an increase of
54 millions for the four-week period, while
cash in vault, after considerable fluctuations,
totaled 368 millions on the most recent date,
showing only a slight increase of 2 millions as
compared with the total reported four weeks
earlier.
Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from June 25 to July 16, 1920.
1. ALL REPORTING MEMBER BANKS.
[In thousands of dollars.]
Boston.
Number of reporting
banks:
June 25
July 2
July9
July 16
United'States bonds to
secure circulation:
June 25
July 2
July 9
July 16
Other "United States
bonds, including Liberty bonds:
June 25
July 2
July 9
July 16
United States Victory
notes:
June 25
Julv2
July 9
July 16
United States certificates of indebtedness:
June 25
July 2
July 9
July 16
Total V nited States securities owned:
June 25
July 2
July 9
July m
Loans secured by Government war obligations, including rediscounis with Federal
Reserve Bank:
June 25
July 2
July 9
July 16
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
114
114
114
114
Minne- Kansas
St.
Chicago. Louis.
apolis. City. Dallas.
107
107
107
107
San
Francisco.
68
49
Total.
814
814
814
814
12,311
12,311
12,311
12,311
46,658
46,658
46,658
46,658
11,347
11,347
11,347
11,347
41,874
41,874
42,842
42,413
28,232
28,282
28,302
28,300
14,185
14,185
14,185
14,235
21,550
21,549
21,549
21,550
16,924
16,924
16,896
16,925
7,321
7,321
7,271
7,321
15,316
15,358
15,358
15,358
19,573
19,573
19,574
19,573
34,492
34,485
34,485
32,535
269,783
269,867
270,778
268,526
13,994
13,946
13,945
13,347
253,839
253,813
253,495
251,802
30,387
29,634
29,550
29,359
60,059
59,911
60,086
60,210
,95
33,903
34,106
33,998
28,168
28,097
28,224
28,309
62,706
60, 880
59,414
60, 898
12,796
12,763
12,779
13,250
9,830
9,728
8,900
9,480
21,972
24,467
23,346
23,267
20,811
20,741
21,188
21,248
61,377
61,526
63,487
63,215
609,897
609,409
608,520
608,383
9,200
9,059
8,982
8,863
19,515
19,363
19,344
19,326
7,957
7,730
7,881
7,666
4,126
4,093
3,975
4, 228
40,058
39,901
39,834
39,754
2,835
2,816
2,704
2,781
1,335
1,048
1,733
1,351
4,520
4,918
4,464
4,521
3,374
3,239
3,326
3,537
12,734
12.567
13^ 087
12,201
198,125
198,310
195,897
194,366
7,087
6,993
7,554
7,360
85,384
86,583
83,013
82 778
29,037
23,249
21,078
25,420
241,022
220,124
205,8-17
260,738
35,730
24,021
21,711
27,613
33,568
24,743
23,358
25,270
13,732
12,991
12,751
12,763
9,866
9,017
9,202
8,915
63,978
56,197
56,248
59,753
5,775
4,043
3,656
6,137
6,540
5,004
4,459
3,321
8,356
7,649
9,211
10,456
6,535
5,950
5,836
4,824
28,985
26,966
25.594
27.595
483,124
419,954
398,951
472,805
62,429
56,499
54,888
58,438
626,903
607,178
589,013
641,976
86,664
74,061
71,590
77,182
155,016
145,891
145,630
147,219
83,879
82.906
83', 040
82,727
56,345
55,392
55,586
55,687
188,292
178,527
177,045
181,955
38,330
36,546
36,035
39,093
25,026
23,101
22,363
21,473
50,164
52,392
52,379
53,602
50,293
49,503
49,924
49,182
137,588
135,544
136,653
135,546
1,560,929
1,497,540
1,474,146
1,544,080
53,733
55,521
54,088
52,541
503,367
495,996
497,060
486,312
96,856
96,204
92,267
89,518
76,718
78,783
79,844
77,559
33.932 28,495
32', 805 28,13S
33,312 27,292
33,269 27,581
105,697
111,289
104,790
111,210
38,359
37,112
36,482
35,564
18,144
17,338
16,893
16,569
27,463
27,340
27,041
26,523
9,629
10,222
10,217
9,892
33,898
32,699
33,015
33,791
1,026.291
1,023,447
1,012,301
1,000,329
884
FEDERAL RESERVE BULLETIN.
AUGUST,
1920.
Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from June 25 to July 16,1920—Con.
1. ALL REPORTING MEMBER BANKS-Continued.
[In thousands of dollars.]
Loans secured by stocks
and bonds other than
United States securities:
June 25
July 2
July 9
July 16
All other loans and investments, including
rediscounts with F ederal Reserve Bank:
June 25
July 2
July 9
July 16
Total loans and investments, including rediscounts with Federal Reserve Bank:
June 25
July 2
July 9
July 16
Reserve balances with
Federal ReserveBank:
June 25
Julv 2
July 9
July 16
Cash in vault:
June 25
July 2
July 9
July 16
N et demand d-eposits on
which reserve is computed:
June 25
July 2
July9
July 16
Time deposits:
June 25
July 2
July9
July 16
Government deposits:
June 25
July2
July9
July 16
Bills payable with Federal Reserve Bank:
Secured by United
States war obligationsJune 25
July 2
July9
July 16
All o t h e r June 25
July2
July 9
July 16
Bills rediscounted with
Federal R e s e r v e
Bank:
Secured by United
States war obligationsJune 25
July 2
July9
July 16
All o t h e r June 25
July 2
July9
July 16
San
Francisco.
Total.
146,068
144,189
145,706
143,668
3,107,025
3,119,466
3.079,793
3.046,794
Boston.
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
188,440
192,049
187,534
185,601
1,329,176
1,342,002
1,309,634
1,290,333
205,278
199,672
201,053
199,987
328,967
336,991
333,589
330,156
107,392
104,714
105,420
105,682
61,634
59,672
59,682
60,736
463,580
464,409
462,217
458,707
128,462
127,935
127,107
123,542
31,550
30,589
30,371
30,820
79,591
80,627
80,679
80,202
36,887
36,617
36,801
37,360
800,795
791,645
795,227
799,718
3,954,160
3,958,472 580,865
3,984,476 584,218
3,990,166 581,494
928,282
920,352
932,767
929,864
390,521
388,750
388,919
386,794
413,946
410,267
416,500
413,214
1,781,390
1,789,753
1,788,159
1,784,646
411,943
409,808
410,904
409,422
292,037
288,833
289,755
290,589
508,253
512,986
510,312
513,606
241,540
244,671
244,716
254,324
,105,397
,095,714
,091,737
,096,298
6,413,606
6,403,648
6,380,183
6,408,787
952,666
950,802
949,128
948,181
1,488,983
1,482,017
1,491,830
1,484,798
615,724
609,175
610,691
608,472
560,420
553,469
559,060
557,218
2,538,959
2,543,978
2,532,211
2,536,518
617,094
611,401
610,528
607,621
366,757
359,861
359;382
359,451
665,471
673,345
670,411
673,933
338,349 ,302,554 6,965,980
341,013 , 300,639 16,925,062
341,658 ,304,420 16,901,239
350,758 ,302,164 16,934,199
81,676
81,899
83,432
83,351
685,972
719,059
676,758
693,380
66,207
69,101
68,696
67,502
94,443
100,509
98,949
98,466
35,123
35,731
37,805
35,955
33,579
33,359
31,119
31,107
184,537
188,879
192,160
191,704
42,358
40,340
40,064
39,630
18,449
21,781
20,198
21,099
44,498
49,293
45,040
46,147
24,183
23,691
25,408
24,827
120.166
116; 993
132,454
122,016
16,216
15,862
18,256
15,914
31,514
33,416
34,313
34,103
16,946
18,832
19,164
17,061
12,994
13,664
13,997
12,701
818,241
821,565
825.480
839,594
5,219,623
5,292,471
5,239,382
5,247,798
662,888
676,852
670,841
672,455
867,816
893,911
895,997
909,495
335,181
336,08S
340,211
342,856
269,859
272,145
271,367
270,605
1,378,932
1,397,171
1,396,286
1,430,410
320,436
312,892
321,099
321,327
209,673
213,863
213,430
215,496
410,020
426,662
426,702
425,677
140,780
139,219
138,737
139,048
417,491
418,817
419,864
422,049
32,981
33,178
33,181
33,332
365,090
366,872
364,725
365,339
104,986
105,149
105,125
105,244
152,651
152,614
151,106
151,184
624,181
626,094
627,033
625,544
124,484
126,446
125,623
124,596
64,327
64,044
63,806
63,274
19,631
7,934
3,175
7,958
129,675
52,515
21,139
79,121
17,918
7,246
2,889
6,551
22,760
9,483
4,481
7,197
3,480
1,397
550
1,006
3,955
2,503
995
1,827
30,299
12,455
5,228
4,719
7,544
3,031
1,204
3,308
30,342
31,751
23,546
20,057
309,369
349,412
352,280
356,962
62,458
54,978
54,406
54,918
46,701
45,941
43,109
38,574
40,306
35,358
40,640
36,194
30,826
32,396
31,837
32,115
94,568
90,567
91,593
91,830
111
111
36
100
1,154
690
100
441
386
336
729
St.
Minne- Kansas Dallas.
Chicago. Louis.
apolis. City.
985,000 1,271,735
988,207 11,284,609
989,046 11,334,999
989,159 11,342,996
23,968
24,520
25,397
25,983
82,899
81,242
83,082
87,582
1,393,709
1,445,713
1,402,700
1,421,906
63,933 9,470 9,206 14,885 10,910
65,779 9,811
8,710 13,855 10,736
71,006 10,565 10,131 15,320 11,683
67,204 9,456 9,975 13,815 11,598
27,637
26,903
31,751
29,183
358,080
358,252
394,048
367,853
223,285
223,497
229,869
233,502
628,174
619,074
630,775
642,600
11,344,128
11,486,191
11,461,439
11,551,815
98,990
97,828
97,100
96,674
49,279
49,452
49,498
54,313
516,840
520,658
523,171
517,882
2,691,880
2,700,371
2,698,969
2,69s, 479
907
365
138
138
9,243
3,751
1,508
5,813
2,891
1,173
453
508
14,558
5,937
2,344
3,415
262,861
107,790
44,104
121,561
21,779
21,433
20,168
21,035
8,781
6,972
5,430
3,278
26,188
27,475
26,759
26,873
14,190
14,545
15,730
14,863
21,705
29,744
28,347
23,049
707,213
740,572
733,845
719,748
600
174
174
350
350
450
450
85
60
85
25
135
285
85
85
1,111
2,346
2,531
1,599
3,169
2,426
2,494
2,256
6,311
6,419
6,037
6,106
2,322
2,292
2,471
2,857
289,134
279,891
276,787
264,329
23,563
24,653
23,683
20,149
134,451
129,822
131,484
129,875
59,506
58,076
54,590
48,769
14,827
14,684
15,892
14,862
5,913
6,030
5,291
7,672
6,063
5,669
6,036
16,343
15,050
14,806
15,039
12,835
12,619
11,769
11,368
52,813
60,168
58,629
54,255
230,324
271,148
269,411
258,574
25,468
32,408
35,757
37,661
42,852
44,564
44,581
42,332
35,143
37,406
38,079
38,082
50,039
46,902
45,706
50,333
257,725
274,887
279,206
262,367
62,715
69,063
67,316
67,247
1,238
1,874
1,862
1,721
50,942
16,329
51,437 59,830 18,201
52,522 56,007 19,851
49,104 57,870 19,792
65,683
948,519
67,607 1,033,621
70,959 1,038,024
66,570 1,004,187
AUGUST,
885
FEDERAL RESERVE BULLETIN.
1920.
Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from June 25 to July 16,1920—Con.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
[In thousands of dollars.]
Boston.
Number of reporting
banks:
June 25
July 2
July9
July 16
United States bonds to
secure circulation:
June 25
July2
July9
July 16
Other United States
bonds, including Liberty bonds:
June 25
July 2
July 9
July 16
United States Victory
notes:
June 25
July 2
July 9
July 16
United States certificates of indebtedness:
June 25
July 2
July9
July 16
Total United States securities owned:
June 25
July 2
July9
July 16
Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank:
June 25
July2
,
July9
July 16
Loans secured by stocks
and bonds, other than
United States securities:
June 25
July 2
July9
July 16
All other loans and investments, including
rediscounts with Federal Reserve Bank:
June 25
July 2
July9
July 16
Total loans and investments, including rediscounts with Federal Reserve Bank:
June 25
July 2
July9
July 16
Reserve balances with
F e d e r a l Reserve
Bank:
June 25
July 2
July9
July 16
Cash in vault:
June 25
July 2
July9
July 16
New
York.
Philadelphia.
Cleveland.
St.
AtMinne- Kansas
Richmond. lanta. Chicago. Louis. apolis. City. Dallas.
San
Francisco.
Total.
280
280
279
278
2,281
2,281
2,281
2,281
36,961
36,961
36,961
36,961
7,337
7,337
7,337
7,337
3,664
3,664
3,664
3,664
2,782
2,782
2,782
2,782
3,100
3,100
3,100
3,100
1,438
1,438
1,438
1,438
10,294
10,294
10,266
10,295
2,791
2,791
2,791
2,791
4,946
4,958
4,958
4,958
4,560
4,560
4,560
4,560
18,500
18,500
18,500
16,550
98,654
98,666
98,638
96,717
5,181
5,140
5,153
4,545
221,092
220,560
220,629
218,825
23,099
22,289
22,240
22,049
7,385
7,472
7,466
7,470
4,767
4,706
4,706
4,706
1,738
1,841
1,837
1,837
25,199
24,690
22,923
23,838
4,678
4,657
4,708
5,139
1,831
1,869
1,818
1,544
7,153
9,103
7,799
7,935
5,813
5,830
5,946
5,809
36,961
37,133
39,363
38,390
344,897
345,290
344,588
342,087
342
346
823
623
75,638
77,000
73,533
73,310
6,562
6,441
6,440
6,323
2,179
2,252
2,246
2,241
199
198
198
195
217
136
128
128
12,388
12,226
12,292
12,366
622
624
535
613
181
181
181
507
2,455
2,826
2,401
2,465
904
946
4,325
4,191
4,221
4,152
106,012
107,224
103,807
103,869
19,435
14,182
12,227
15,811
223,003
203,782
189,597
243,490
33,176
21,606
19,546
25,433
5,965
4,740
4,750
4,665
1,446
1,190
1,183
1,286
1,226
1,221
1,221
1,216
24,048
21,023
19,777
22,034
3,976
2,701
2,449
4,807
2,173
1,409
1,347
703
3,179
2,551
4,142
5,085
1,834
1,457
1,343
1,166
14,549
13,885
12,873
13,858
334,010
289,837
270,455
339,554
27,239
21,949
20,484
23,260
556,694
538,303
520,720
572,586
70,174
57,673
55,563
61,142
19,193
18,128
18,126
18,040
9,194
8,876
6,281
6,298
6,286
6,281
63,073 19,570
59,377 18,276
56,430 17,958
59,676 20,854
6,976
6,340
6,137
5,545
17,733
19,438
19,300
20,443
13,111
12,650
12,658
12,481
74,335
73, 709
74,957
72,950
883,573
841,017
817,488
882,227
44,907
46,226
45,210
43,999
474,175
466,884
466,685
454,427
92,123
91,539
87,609
84,881
19,069 9,367
20,910 9,428
21,149 10,013
21,075 10,052
5,555
5,781
5,671
5,564
71,556
78,150
73,125
75,885
9,170
9,117
9,184
9,094
11,620
11,421
11,690
11,576
2,749
2,673
2,682
2,570
16,574
15,846
16,149
16,804
782,367
781,920
772,186
757,753
146,139
146,834
141,819
140,499
1,175,820
1,186,362
1,151,534
1,134,789
185,597
180,346
181,695
180,992
115,499 15,058
116,388 15,027
119,136 14,795
116,625 14,246
7,709
6,768
6,804
6,935
344,547
345,691
344,589
341,253
89,561 13,856 34,152 10,338
88,998 13,607 34,712 9,692
88,787 13,337 34,983 9,647
85,223 13,294 34,604 9,918
69,517
68,716
70,975
68,705
2,207,793
2,213,141
2,178,101
2,147,083
576,725
573,597
575,949
579,449
3,486,948
3,491,814
3,524,610
3,522,254
494,013
509,883
513,381
516,260
289,585
286,586
291,385
295,752
74,334
74,567
73,604
75,159
70,789
72,032
71,307
73,424
1,069,918
1,070,359
1,076,885
1,068,504
278,522
277,998
279,484
279,403
141,673
140,836
142,104
141,576
178,209
179,011
179,569
182,869
55,102
57,230
57,634
57,783
484,550
487,130
485,583
486,701
7,200,368
7,221,043
7,271,495
7,279,134
795,010
788,606
783,462
787,207
5,693,637
5,683,363
5,663,549
5,684,056
841,907
839,441
838,248
843,275
443,346
442,012
449,796
451,492
107,953
107,898
107,281
108,426
90,334
90,879
90,068
92,204
1,549,094
1,553,577
1,551,029
1,545,318
413,155
409,217
409,248
407,306
171,675
169,900
170,762
169; 509
241,714
244,582
245,542
249,492
81,300
82,245
82,621
82,752
644,976
645,401
647,664
645,160
11,074,101
11,057,121
11,039,270
11,066,197
65,808
66,001
67,253
66,580
642,952 59,671
674,113 62,056
632,818 62,602
61.276
25,435
29,315
25,015
26,212
4,780
5,702
6,322
5,618
5,488
5,278
4,990
5,642
133,084
135,246
137,938
132,675
31,650 7,045 13,777
30,360 10,064 17,997
29,987 9,145 14,842
29,879 9,181 14,457
6,241
5,407
7,255
6,512
39,190 1,035,121
37,181 1,078,720
38,604 1,036.771
41,464 1,046,304
14,657
14,071
14,988
14,200
106,679 12,855
102,029 12.277
116,414 14,341
107,471 12,386
8,652
9,551
9,684
9,109
1,729
1,596
1,907
1,774
2,212
2,211
2,268
2,086
35,163
36,363
39,868
36,391
1,953
1,780
2,033
1,780
10,565
10,590
12,127
10,907
25,502
23,945
23,019
21,826
5,064
5,097
5,677
4,903
2,841
2,493
3,241
3,352
3,840
3,575
3,926
3,472
206,210
201,633
226,474
207,831
886
FEDERAL, RESERVE BULLETIN.
AUGUST^ 1920.
<nrincipal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from June 25 to July 16, 1920—Con.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued.
[In thousands of dollars.]
Boston.
New
York.
Philadelphia.
Net demand deposits on
which reserve is computed:
June 25
633,149 4,705,010 575,476
July 2
631,2.'5 4,769,9S1 587,312
July 9
4,718,9.V.) 582. 265
i 647, iZV.) 4,726,330 583,271
Julv 10
Time d^ncMU:
.) 11 m "'. J
'
in 623 303,559 23,320
43, <l\
302,162 ' 2:;,:m
Jljlv U
4:OKKI
300,592 :, '2.1,21)4
J-jly 16. . . .
4:>; »W4
299,905 ^3,397
Government d.-po^its:
l
14 293
June 25
126,176 16.590
51, 0i)7
6,711
July 2..
. .
5,801
2,316
20,440
Jiilv 9
2,676
6,012
77, 605
July 16
6, 338
Bills payable with Federal Reserve Hank:
Secured by United
States war obligationsJune 25
271,197 58,343
27,696
July 2
311,834 50,522
29,114
July 9
320,205
49,965
19,274
July 16
320,011 50,477
17,800
All o t h e r June 25
Julv 2.. . .
July 9
July 16.
Bills rediscounted with
Federal R e s e r v e :
Bank:
Secured by United
States wa-r obligations—
June 25
131,027 58,758
22,016
Julv 2.. .
126,331 57,334
23,625
126,927 53,873
July9
22,821
124,102 48,051
Julv 16
19,512
All o t h e r 209,619 24,348
June 25
50,594
250,499 30,840
July 2
58,933
258,289 34,633
July 9
57,423
241,973 36,537
July 16
53,182
Cleveland.
Richmond.
lanla.
213,026
225,216
224, 932
227, 862
47,980
53,047
51, 720
51.994
172,631
174.353
172]HZi
172, 81)3
San
Krancisco.
Total.
62,434
64,141
63,962
65,277
294,464
290,418
298,126
299, 462
7,974,509
8,083,643
8,043,150
8,082,309
12,040
11,778
11, 667
11,664
5,014
5, 008
5,021
5,024
241,445
244,746
247, 064
242, 755
1,226,403
1,231,263
1.229,360
1,221,325
650
261
97
97
7,173
2,912
1,166
5,070
2,455
994
389
348
11,966
4,910
1,952
3,120
206,841
84,095
33,904
105,519
1,906
1,299
414
383
15,951
16,280
16,073
15,690
103
203
2,203
1,953
9,642
14,373
14,733
11,476
456,874
486,529
486,771
481,316
g°-
St.
Louis.
43,124
42,081
44,128
44,589
951,116
962, 857
961,607
971,343
226,349
219,817
2:.'5,348
229,538
88,681
90,592
89,908
91,311
133,700
146,926
146, 674
144,293
21,275
21,3"?0
21,243
21,292
22,381
22,200
21,747
21, 418
281, 660
283, 950
284,413
282,900
74,347
75, 604
75,368
74, 438
23,108
23,010
23,157
22,665
4, 964
2,251
1,038
634
479
195
75
365
345
138
51
36
14, 863
6,061
2,590
2,788
6,887
2, 764
1,114
3,106
10,921
10,104
9,000
8,899
7,978
4,158
7,216
5,796
1,664
1,680
1,382
1,597
38,097
32,997
32,911
33,095
13,376
13,965
13,395
14,139
Chica
Minne- K a n s a s ' -ip> a ii
llas
apolis. City.
600
600
3,561
3,509
3,892
4,073
1,223
1,183
1,137
713
962
1,167
1,180
1,140
8,881
8,567
9,340
9,127
7,792
7,136
6,524
5,838
1,814
1,557
1,516
1,535
3,684
3,626
3,512
3,617
511
481
473
432
1,116
870
954
1,401
241,345
235,386
232,149
219,541
30,448
31,457
31,358
33,143
10,067
10,480
9,961
10,597
8,000
8,917
7,721
9,930
191,598
204,020
206,785
194,695
44,272
50,718
49,802
49,872
35,795
36, 479
36,874
34,238
27,309
27,732
27,598
29,746
3,485
3,369
4,387
4,271
34,245
36,967
36,612
34,930
669,780
750,411
761,443
733,114
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES.
[In thousands of dollars.]
RichNew
CleveSan
Atlanta Chicago St. Louis Kansas
Dallas
land
mond
York
City
6
Francisco
district.1 districts district.3 district.* district.& district. district.7 district.* district.
Number of reporting banks:
June 25
July 2
July 9
July 16
United States bonds to secure circulation:
June 25
July 2
July 9
July 16
Other United States bonds, including
Liberty bonds:
June 25
July2
July 9
July 16
United States Victory notes:
June 25
July 2
July9
July 16
United States certificates of indebtedness:
June 25
July2
July9
July 16
10
10
10
10
40
40
40
40
19
19
19
19
24
24
24
24
12
12
12
12
18
18
18
18
19
19
19
19
12
12
1,599
1,599
1,599
1,599
24,896
24,896
25,864
25,435
5,608
5, 608
5,608
5,608
6,930
6,930
6,930
6,930
1,905
1,905
1,905
1,905
5,280
5,280
5, 280
5,280
4,387
4,387
4, 3*7
4,387
11,352
11,457
11,444
11,444
41,181
41,296
41,140
41,283
9,168
9,149
9,271
9,217
22,549
22,358
22,479
22,350
17,626
17,603
17,615
17,585
7,600
7, 583
7, 551
7,552
2,109
1,995
1,927
1,923
14,244
14,029
14,011
14,042
2,876
2,874
2,872
2,848
2,897
2, 938
2, 862
2,922
18,553
2,105
18,609 I
2,093
18,578
2,068
18,523
2,063
19,819
14,364
13,520
15,991 i
3,181
3,081
3,081
2,780
7,548
6,754
6,899
6,627
29,984
27,187
28,394
28,251
12,313
10,777
10,769
11,492
1 Buffalo.
2 Pittsburgh and Cincinnati.
' Baltimore.
< New Orleans, Birmingham, Jacksonville, and Nashville.
•Detroit.
6
7
8
1,644
1,212
1,077
1,197
Total.
12
44
44
44
44
198
198
198
198
7,108
7,108
7,108
7,108
13,192
13,185
13,185
13,185
70,905
70,898
71,866
71,437
5,579
5, 668
5,633
5,731
7,240
7,232
7,233
7,240
21.214
21^189
20, 731
21,433
143,509
143,535
143,097
143,835
644
611
591
593
1,197
1,204
1,227
1,203
7,668
7,635
8,088
7,512
52,293
51,988
52,224
51,629
3,395
3,349
3,338
3,676
2,824
2,614
2,614
1.679
12,373
11,553
11,198
11,944
93,081
80,891
80,890
83,637
Louisville, Memphis, and Little Rock.
Omaha and Denver.
El Paso and Houston.
» Spokane, Portland, Seattle, Salt Lake City, and Los Angeles.
AUGUST, 1920.
887
FEDERAL RESERVE BULLETIN.
Principal resource awl liability items of member hanks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal 'Reserve branch cities, as at close of business on Fridays from June 25 to July 16, 1920—Con.
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued.
[In thousands of dollars.]
Cleveland
district.
Rk'hnonl
disi rid.
y
tianfa
district,
27,373
25, 828
25, 739
20, 458
100,140
94,5S5
94,535
96,751
20,833
20, 712
20, 832
20, 453
39,924
38,980
39,170
38,829
I
!
1
!
68,068
65,304
66, 492
66,264
16,629
16,168
15,976
16,092
14,005
14,015
13,949
14,387
18,369
IS,158
18,182
17,230
54,447
53,562
53,202
54,074
359,788
347,312
348,077
350,538
9,85?
9, -^73
10, 7sH
12,410
46,144
40,500
47,03-S
44, S52
9, 582
9, 439
9, 575
9,1 OS
17,158
16,726
15,74;)
16,712
j
i
!
j
14,708
13,575
::i.'f54
!7,356
11,530
11,571
11,883
12,315
10,103
9,909
9,268
9,059
2,678
2, 853
2, 909
2, 909
16,486
15,969
15', 963
16; 131
138,241
136,415
136,622
140,852
52,272
r?u7
52,7SI
52.904
153,642
159,90!
154.407
153)691
32,170
31, 170
31,326
32,503
59,586
40, 'Kf.
40,488
59,006
r9, 026
35, 899
35,"5?
35, 302
35,274
21,757
21,756
22,118
22,178
15,594
15,442
1.5,45!
15,287
70,554
6^,541
69,454
68, 929
483,110
484,957
480,011
480,340
180,823
179,710
172,897
180,508
467,143
463.647
469,716
464,362
121,242
119,266
119,812
120,256
255,962
252,325
255)207
254,049
339,206
34'), S49
340,919
343,854
117,045
115,663
114,947
113,403
158,086
159,223
158,020
159,522
77,796
79,016
79,448
82,231
464,097
465,145
464,112
464,515
2,181,400
2 174,844
2,174,878
2,182,700
270,320
267, 4 W
2
O0
767,069
761,633
765,696
759,656
183,827
180,587
181,545
182,380
354,680
348,091
350,292
350,078
'79,871
486,500
181,103
179,354
178,JOS
177,084
203,951
204,903
203,355
205,146
114,437
115,469
115,990
117,657
ROr,, 584
604,217
602', 731
603,649
3,102,539
3J43/-28
3, 139,588
3,154,430
17,479
18,533
17,223
16,994
51,920
52,970
56,098
54,183
12,968
12,593
13,947
12,717
21.937
21 ',610
20,134
19,832
26,271
27,262
26,935
30,444
9, 523
8, 850
9,014
8, 865
13,958
14,718
13,154
14,706
8,388
8,328
7,808
7,814
40,384
40,890
41,210
42,551
202,828
205,754
205, 523
208, 106
12,972
14,507
14,122
14,232
5, 288
4, 877
5,904
5,596
6,818
7,428
7,671
7,012
13,191
13,690
14,467
14,098
3, 738
3, 791
4,078
3, 676
5,279
5,070
5,402
4,985
2,889
3,231
3,513
3,304
15,320
14,595
17,626
16,501
68,489
71,301
76, 704
73,005
176,915
176,654
177, ('37
173,515
483,479
494,442
495,864
502,747
113,432
107,846
108,921
110,780
174,275
178,898
175,339
174,022
197,179
200, 084
200, 638
221,488
83,852
82,813
85,4?0
81,583
124,267
124,850
125,568
126,708
66,201
65,083
68,231
67,877
304,023
299,457
301,137
311,105
1,723,623
1,730,127
1,738,155
1,769,825
45, X36
4': 551
53;376
116,774
116,934
116,438
116,473
19,209
18,948
18,982
19,643
90,513
90,231
90,211
90,785
223, 626
224 070
224,359
40, 661
41,308
40,829
40,787
50,942
50,444
50, 158
49,791
21,940
22,007
21,907
21)862
?62,678
263.339
26?,OPS
261,773
872,518
875,388
876,247
878,849
14,865
6,225
2, 864
5,754
400
160
60
290
2,881
2,074
835
1,763
10,600
4,392
1,817
402
657
267
90
202
1,490
597
240
621
389
643
379
510
58
150
2,035
801
302
275
34,905
15,314
6,645
9,967
23,441
22,440
15,074
19,756
31,903
32,670
31,077
26,735
12,505
10,981
13,687
10,940
24,513
26,037
25,376
25,469
32,479
34,750
36,226
36,169
8,088
7,063
6,458
6,586
4,945
5,773
5,259
6,232
7,594
7,694
7,529
6,829
10,896
14,156
12.326
10)335
156,364
161,564
153,012
149,051
100
441
386
336
729
135
285
85
85
761
731
506
839
Nev-
T o t a l U n i t e d S t a t e s securities owm
J u n e 25
July 2
July 9
J u l y 16
L o a n s secured V.y C o v e n a n t : ; wa:
gations. including rec'i -< oui ( s
Federal Reserve B a n k s :
J u n e 25
July 2
„.
July 9
J u l y !(i
Loans secured ''\ r •>' ••- < n . M: 1 ;,
t h a n 1 "nited : i )' --s •*>• .• -itJ u n o 25
July 2
J u l y 9.
July 16
All other l o w , - m
Hurting rediscounts \\ > 's '-('MM..! '-. .'ser\ e
Ban!-:
J u n e 25
July 2
Julv 9
Jl.iv 16
. . .
Total loans and in . ^ i ..«ei>K, iT-lujlin-r
Ban':" "
"
"' '
"' ' '
June25...
July 2
July 9
July 1fi
Reserve'•uilanc'cs \viih '/?.;<\- :>1 '^vserve
Bani-s:
J u n e 25
Julv ?,
July ifi
Cash in vault:
} u n p, 26
July 2
July 0
'.
July 16
N e t d e m a n d deposit;: cu '.vhi.-p reserve L(;
computed:
June 25
July 2
July 9
July 1'i
June 25
July 2
July ^
July 16
Government deposits:
June'25
July 2
July 9
July 16
Bills payable with Federal Reserve Bank:
Secured by United States war obligations—•
June 25
July 2
July 9
July 16
All o t h e r June 25
July 2
July 9
July Ifi
Bills rediscounted with Federal Resene
Ban\:
Secured by United States war obligations—
June 25
July2
Julv 9
Jn'y 16
All o t h e r June 25
July 2
July 9
July 16
2,994
4, 1 '2
3/.)2!
3,601
Chicago
district.
st. Louis
dist&t.
San
Dallas
district. Francisco
district. I
85
60
85
25
Total.
1,282
1,354
2,431
3,579
9,875
9,903
10,713
9,480
2,849
2,534
2,842
2,411
5,680
3,911
3,405
3,951
3,585
2,590
2,274
2,817
4,786
4,948
4,734
5,191
1,509
1,497
1,292
1,313
378
544
585
583
1,072
1,284
1,376
1,384
31,016
28,565
29,652
30,709
10,249
11,386
1,601
8,090
7,531
7,783
7,321
3,615
12,029
13,489
14, 706
14,531
33,874
29,657
29,508
32,128
11,857
14,459
16,723
13,369
17,581
17,576
16,578
16,494
18,961
19,739
16,199
16,465
6,364
8,100
7,862
8,145
25,745
25,331
28,808
26,537
144,191
147,520
139,306
139,374
888
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
IMPORTS AND EXPORTS OF GOLD AND SILVER.
Gold imports into and exports from the United States, distributed by countries.
Exports.
Imports.
During Durins;
10 days 10 days
ending
ending
.Tune 20, June 30,
1920.
1920.
Belgium .
France
Germany.
Greece
Iceland.
Italy..
Netherlands .
Norway
Portugal
Spain .
Sweden...
Switzerland
United Kingdom—England
Total Europe
During
During
From
During 10 days
10 days
Jan. Jan.
1
to
month of ending From
1 to Julv Julv 10, ending
June,
June 20,
Julv 10, 10, 1920.
1919.
1920.
1920
1920.
$16,585
During During During
10 days month 10 days From Jan. From Jan.
ending 1 to July 1 to July
ending
June 30, of June, July 10, 10,1920.
10,1919.
1920.
1920.
1920.
$335,906
710,940
$336,500
$336,500
40,000
40,000
110,000
107
107
11,771
40,107
1,161,428
3,324
25,364
4,937
4,937
$387,193
$10,000
$39,924
25,850,000
661
$1,087 4,294,740 4,296,840 2,301,700 62,700,668
$10,853
1,087 4,671,347 4,690,155 2,318,285 65,092,074
10,8.53
Total N o r t h
America
4,210,345 4,290,011 8,895,608
13,235
39 Q94
39,924
China
British India
Straits Settlements
Dutch East Indies.
Hongkong
Japan
289,468 31,428,672 36,815,947 338,180
1,020
16,279
20,000
2,214 *"**59,"363
826,392
37,520
20,000
99,243
865,088
8,800
8,800
69,201
45,440
4,331
57,718
6,172
24,585
325,280
1,485,312
400,632
71,940
17,644
145,423
12,433
515,366
68,144
1,069
18,363
146,116
532,254
334,764
79,694
15,272
550,273
42,174
42,174
i,03i
269,796
123,193
955.333 1.197.007
144.165
15,259
167,470
Total
South
America... .
182,463
11,099
630
2,830,397
543,893
19,000
21,000
20,000
238, 710 15,398,041
1,000
5,004,362
$87,672
125,000
7,940
10,000
10,000
39,000
336,382 18,441,438
641,0081,613,326
3,156,801 1,869,142
5,578,195
104,689,000 55,739,882
i
108,325
.
589,294
266,5io| 26,887,148
89,995,000 32,460,000
1,500,000
280,000
50,000
400,000
100,000
700,000 4,332,295
130 000
5,005
19,795
1,918,067
12,850,000 7,405,000
334,000 7,949,720
1,260
97,368 2,485,147 1,651,003
6,576,087 30,191,910 10,000,000
23,390
16,286, 750
830,167
5,360,088 1,249,822
6,683,454
700,000 1,700,000 500,000 12,045,105 1,647,000
763,810 848,300 1,435,820 25,125,502 3,886,920
500,000 7,568,471 16,330,658 17,024,393
510,000
618,325
6,674,455 32,678,317 11,651,003 131,715 1,973,810 3,666,625 9,504,291 81,831,557 24,638,302
Total Asia...
New Zealand
Philippine Islands
British South Africa .
British West Africa...
Portuguese Africa..
60,000
1,100
1
British Honduras
20
Canada
36,538 27,458,298 32,278,567 71,610 $128,033 255.196
4,056,596 4,126,228 8,379,589
54,763
389,717
51,334
Costa Rica. .
377,554
40,519
5,519
Guatemala....
14,872
9,353
17,967
182,509
Honduras..
131,829
995
3,828
135,032
Nicaragua
780,671
699,510
31,609
26,860
45,310
1,338
1,771
Panama... .
41,308
1,338
Salvador
419,184
148,487
12,0091
7,896
246,524i 162.558 2,335,678 2,741,529 253,570 462,975 1,295,130
92,923
Mexico. .
53,072
Newfoundland
61
3,100
Cuba... .
327
4,827
327
50,000
50,000
British West Indies
18,838
87,249
9,500
9,500
Virgin Islands of U. S
13.000
Dominican Republic...
13,000
129,040
Dutch West Indies....,
33,040
16,990
16,050
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
British Guiana
Dutch Guiana... .
Peru
Uruguay...
Venezuela
912
241,263
$39,924
386,451
48,939
48,464
53.341
434,915
102,280
107,440
100,642
1,036,454
486,217
206,107
256,527
8,150
372,010
28,038
Total, all countries 4,829,285 10,018,496 15,319,96519,634,455 134,085,642 50,983,632 509,819 2,614,818 5,319,875 9,840,673 *205,256,543 112,843,527
1
Includes: Ore and base bullion, $10,706,000; United States mint or assay office bars, $3,846,000; bullion refined, $62,151,000; United States coin,
$10,868,000; foreign coin, $46,515,000.
8
Includes: Domestic exports—ore and base bullion, $10,000; United States mint or assay office bars, $14,280,000; bullion refined, $993,000; coin,
$189,627,000. Foreign exports—coin, $347,000.
Excess of gold exports over imports since Jan. 1,1920, $71,171,000. Excess of gold imports over exports since Aug. 1,1914, $708,584,000. Excess
of gold exports over imports since June 10,1919, $392,435,000.
AUGUST,
1920.
889
FEDERAL RESERVE BULLETIN.
Silver imports into and exports from the United States, distributed by countries.
Imports.
Exports.
During
During During
During 10
days From Jan. From
10 days 10 days month
of ending
1 to
ending ending
1 to Julv Jan.
June,
Julv 10,
J u l v 10, 10, 1920.
June 20, June 30,
1920.
1919.
1920.
1920.
1920.
Denmark
France
Italy
Netherlands
Norway
Portugal
Spain . . .
Sweden
Switzerland
United Kingdom—England
Total Europe
$24, 0?6
isoo
$s, 000
24,
$12, 531
$77, 491
0?6
During
10 davs
ending
June 20,
1920.
$11,100
i
42, 260
6, 000
36, 593
42, 593
6, 300
60, 619
77, 609
8 811
1 700
17 991
54 309
11 442
519 785
613 268
330
205 586
....
9 141
13 819
341 954
58 663
11 442
786, 039
12, 531
940,807
21,934
33,034
1 ??6
62 216
974
27.364
4 554
41,203
105,968
1,527
1 977 69? 1 071,277
?54
115,292
11,163
45 426
33
?,0 876
739 364
$587 S07
5,704, 066
15, 000
285, 251
417, 283
1 500
5 000
1 500
15 000
1 000
168 741
396 906
216,380 2,384,111
44,343
3 000
94,998
4? 5
\°> 387
149
253 719
509 308 1,587 691
349 353 10 784 370 6,540,831
278 000
289 974
248 126
2 130 875
19,910, 918
5,624, 213
1,773, 221
3 500
371
3 000
542 000
2 400
67 050
184 ? 0
2,434 436
853 660
17
939
25
197
680
136
000
000
16,328
105 000
4, 000
460 492
981 896
604
604
161,728 10,161 470
2,995 909
11 49 9
743
9 187
2 333
85?
2 000
1 00?
2 403
4 440
16,bob
604
604
9,187
24 827
2,507 ,311 2,507 311
598 647
10 528
48,850 194 8,863 146
223 211 108,273 177
642,248
1 650
1,086, 406
1, 950
228
93, 870
172
2,308, 931 12,264, 9C)S
$216,380
15, 000
6 380
7 739 665 5,194,088
280
68
303 357 1,152 637
35
35
China
British India. .
.Dutch East Indies
French East Indies
Hongkong
Japan
Russia in Asia
Turkey in Asia
4,058 373
16,800 267
40
970
910 803
2,665 561
52 759
38 511
Total Asia
New Zealand
Philippine Islands . .
British South Africa
British West Africa
Portuguese Africa
$32, 920
$15, 000
453
978
Total North
1,204 778 1,595 871 4.886 73?, 1,549 872 44, 216 725 37,103,560 232,984
America
Total South
America
$15, 000
30 8?0
300
2, 693
24 197
24, 197
63, 367
218,382
British Honduras
44, 439
26, 807 2, 095,276 4,448,546 $89,609
61, 875
Canada
229, 824
4, 97s
3, 38?
4, 817
31,503
Costa Rica
47,194
20,036
25
31
Guatemala
100, 85?
12, 717 1 540,131 1,334,659
228, 384
Honduras
906
478 821
18 4?5
510,284
60
Nicaragua.
1, 466
31 915
76,349
1 000
Panama
3 628
14, 000
44, 251
22, 567 3 565
220,187
Salvador.. .
1,026, 360 1,509 799 4,285 400 .1,465, 943 36, 236 218 30,209,154 141,950
Mexico
11
Newfoundland
6 949
425
2,29o
British West Indies
5 477
5 477
45 671
52,189
Cuba..
Virgin Islands of U. S . .
84 800
Dominican R e p u b l i c .
1
Dutch West Indies
?0
French West Indies
Haiti
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Venezuela
During
During
10 d a y s From Jan. From Jan.
10 days During
ending
endiiig ofmonth
1 to July 1 to July
June, July
10, 10, 1920.
J une 30, 1920.
10, 1919.
1920.
1920.
526 126
7 483
1 113
69
874
7 55?
1 987
2 461 010
642,248
11 ?16
10 0?6
6 097
5,498
76,822
86 657
37,736
69,933 055 119,854 643
3,105 ,958 3,418 ,114
I
Total, all coun1,832 942 2,166 741 6,561 571 2,437 882 i 58,516,908 44,439,729 232,984 3,582 054 4,415 614
countries
i
5 480
387,295 2 82,508,943 142,771 P98
1 Includes: Ore and base bullion, $46,443,000; United States mint or assay office bars, $3,000; bullion refined, $4,583,000; United States coin,
$603,000; foreign coin, $6,885,000.
2 Includes: Domesti » exports—Ore and base bullion, $6,000; United States mint or assay office bars, $3,444,000; bullion refined, $47,686,000; coin,
$13,874,000. Foreign exports—Ore and base bullion, $1,000; bullion refined, $13,995,000; coin, $3,503,000.
Excess of silver exports over imports since Jan. 1,1920, $23,992,000. Excess of silver exports over imports since Aug. 1,1914, $453,364,000.
890
FEDERAL RESERVE BULLETIN.
AUGUST, 1920.
General slock of money in the United States, money held by the Treasury and the Federal Reserve System, and alt other money
in the"l,-t^h I Stales, July 'l, 1920.
Held in the
United St.ites
Treasury as
assets of the
(<'o\ eminent. 1
General stock.
Held by or for
Federal Reserve
Banks and
agents.
Hold outside
United States
Treisury and
] e/ural R e s e n e
System.
Amount nor
capita outside
United States
Treasury and
Federal
Reserve
SYSTPVI.
Gold coin / includinc bullion in Treasurv^2
Gold certificate^
Standard silver -lojhrSilver certified e^
>ubsidiarv sil er
Treasury notes o! 1890
United States notes
Federal Resen e not^s
federal Reserve Dank note--
.
8401 208 993
268,793,60.:
14,641,786
'?",'-, 0 " , tr)f;
6,944 072
9,3°!,l.::.<3
719 037 730
22,691,896
7,887,181,5^6
7 804 on^ 384
7.755,'553,906
7,7(>1,146,018
7,^06,311,880
7,714,769,263
7,961,320,139
7,588,473.771
7,780,793,6^6
6,742,225^4
6,256,1^,271
5,4^0; 009,884
485,057,472
462,799,326
488,928,232
503,309,638
546,960,744
625,142,749
604,888,833
578,848,013
454,948,160
356,124,750
277,043,358
253,671,614
2,021,271,614
1,988,583,225
1,976,153,519
1,984,495,464
1,981.490,058
2,009,651,988
2,044,422,303
2,167,280,313
2,220,705,767
2,018,361,815
1,723, 570,2(U
1,280,880,714
,.•
;'.
' i
: ) • • > )
3, i »".» '77. : :
. . . .
$1,286,314,977
321,443.510
3 60 644 295
20 172 438
<57,602,317
256,936,480
12,080 544
3,077,053
-1
Total:
July 1, 1920
Time 1 1Q20
May 1 1920
Apr. 1, 1920
Mar 1 1920
Feb. 1, 1920
Jan 1 1920
July 1, 1919
Jan 1 1919
July 1, 1918
Jan. 1, 1918
Julv 1 1917
$2,6=7.512,862
;
27 0''N ^ 3
2,4<-() 609
.1415,407.769
260,137,613
73,331,3''2
98 349 336
251,104 384
1,656,355
279,697,476
3,121,241,7(7
186,654,617
693,268,781
5,380,852 500
5,353,145,833
5,290,872,155
5,273,340,916
5,277,861,078
5,109,974,526
5,312,009,003
4,842,345,415
5,105,139,679
4,367,739,209
4,255,584,622
3,945,457,556
£50 19
50.00
49 45
49.33
49 41
47.88
49 81
45.00
47.83
41.31
40.53
37.88
* Includes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of
national bank notes, Federal Reserve notes, and Federal Reser%e Bank notes, but excludes gold and silver coin and bullion held in trust for the
redemption of outstanding gold and silver certiiicates and Treasury notes of 1890.
2 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents.
3
Includes subsidiary silver.
4
Includes Treasury notes of 1890.
FEDERAL RESERVE BANK DISCOUNT RATES.
Rates on paper discounted for member banks approved by the Federal Reserve Board up to July 31. 1920.
Discounted bills maturing within 90 days (including member ban! s'
15-day collateral notes)
secured b y Federal Reserve Bank.
Treasury cer- Liberty
tificates of
bonds and
indebtedVictory
ness.
Boston
New York
Philadely)liia..
Cleveland. . . .
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas Citv - Dallas....."...
San Francisco
i
5*
6"
51
6
6
6
51
5!
6
5i
6
51
6
51
51
6
Bankers'
Trade
acceptances acceptances
maturing
maturing
within
within
3 months.
90 days.
51
51
6
51
6
51
6
51
51
6
Discounted bills secured
otherwise than by Government war obligations, also unsecured,
maturing within—
90 days (including
91 to 180
member
davs a.Tibanks'
cultura. and
15-day
live-stock
collateral
paper).
notes).
7
7
6
5!
6
6
7
6
61
6
1
Discount rate corresponds to interest rate borne by certificates pledged as collateral, with minimum of 5 per cent in the case of Philadelphia,
Atlanta,
Kansas City, and Dallas, and 5-^ per cent 111 the case of Richmond, Chicago, and San Francisco.
2
5£ per cent on paper secured by 5\ per cent certiiicates, and 5 per cent on paper secured by 4 | and 5 per cent certificates.
NOTE.—Rates shown for Atlanta. St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not in excess of basic lines fixed for
each member bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line are subject to a -£ per cent progressive increase for
each 25 per cent by which the amount of accommodation extended exceeds the basic line.
RESOURCES OF STATE BANKING INSTITUTIONS.
Statement showing 'principal resources and liabilities,
also aggregate resources, of all banking institutions
under State control.
[Compiled from statements furnished by heads of State banking departments by R. N. Sims, secretary-treasurer National Association of Supervisors of Slate Banks.]
State.
Alabama
Arizona
Arkansas
California
Colorado
Connecticut"
Savings banks
Other banks
Delaware
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland:
Savines banks
Other banks
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York:
Savings banks
Other banks
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island:
Savings banks
Other banks
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Total.
Numof
Date of report. ber
institutions.
Feb. 27,1920
Feb. 28,1920
do
Mar. 31,1920
May 4,1920
Capital.
Undivided
profits.
Surplus.
Capital, surplus', and undivided profits.
is
Lca-v and discounK
Deposits.
248
66
404
425
258
$11,576,879.41
3,683,967.00
15,542,250.00
80,947,720.00
8,756,500.00
$5,420,947 23 12,985,678.49
1,242,052.90
2,10.3,258.54
3,189,345.83
5,923,569.06
37,549,164.92 15,799,238.00
1,328,316.02
3,659,939.11
$19,983,505.13 $115,5°9,«29.12
5% 737, 571.15 .
7,029,278.44
143,COS, 220.18 ,
24,652,164.89
134, 29,">, 122.92 1,181,073,066.75
104,681,190.32 j
13,744,755.13
31,1920
28,1920
4,1920
31,1919
2.1919
4.1920
28,1920
31.1919
2,1920
14,1910
12,1920
17.1920
27,1919
250
27
204
662
139
988
792
1,341
1,098
450
224
97
11,581, 137.50
4,144, 700.00
8,485, 500.00
31,009, 070.00
4,990, 210.68
112,304, 605.00
37, 798, 367.50
52,36i; 450.00
27,249, 000.00
20,458, 191.50
19,544; 190.00
4,623, 000.00
4,140,442.61
29,976, 780.84
5,058, 589.70 2,076.728.09
798;i37.61
2,374, 476.09
25, 775, 846.76
525,419 23
1,433, 382.29
72,902, 672.54 23,288,147.08
5,057, 316.95
14,663, 408.42
22, 668, 899.98 13,031,831.44
3,659.387.62
13,885, 585.70
3,300] 726.14
10,658, 253.35
4,771/679.79
10,293, 712.76
6,167,648.24
9,303, 969.43
45, 698, 360.
11, 280,017.
11, 058,113.
56, 7^4,916.
••012.
6,
208, 495, 424.
57, 519,0^2.
88, 062,231.
44, "93] 973.
34, 417,1
34, 609 582.
20, 094,617.
Dec. 31, 1919\
May 4, 1920/
Oct. 31, 1919
May 4, 1920
Feb. 28, 1920
.do
Dec. 30, 1919
Feb. 28, 1920
Feb. 14, 1920
May 4, 1920
June 30, 1919
Mav 24, 1920
Feb. 28, 1920
496
535
1,177
312
1,484
286
1,008
23
70
276
71
Mar.
Feb.
May
Dec.
Dec.
May
Feb.
Dec.
Apr.
Feb.
Apr.
Mar.
Sept.
187
1
18,264,907.12
28,264,750.44
40,057, 991.57
125,523, 109.65
34,892, 420.43
52,381, 820.00
33,332, 124.16
13,848, 400.89
11,729. 250.00
7,973, 350.23
37, 554, 183.19
59,625! 600.00
11,990] 000.00 i
3,848, 714.61
7,874, 698.79
25,527, 700.00 1
442, 434.16
1,678, 500.00
805, 000.00 1 12,523, 119.65
35,126, 849.71
29, 700, 281.00
910, 130.00
2,885, 500.00
Dec. 31,1919\
Feb. 28,1920/
do
do
May 4,1920
do
Feb. 28,1920
May 4,1920
561
513
718
776
610
274
580
194,654,300.00
Dec. 31,1919
Apr. 14,1920
May 4,1920
Feb. 28,1920
do
May 4,1920
Mar. 23,1920
May 4,1920
Feb. 28,1920
May 4,1920
.do
Feb. 28,1920
....do
47
389
552
440
979
104
59
316
304
217
814
110
9,049, 600.00
16, 770, 564.41
12,326, 477.00
19,102, 781.95
45,154, 800.00
7,543, 554.08
2,109, 600.00
21,577, 365.50
17,129, 200.00
15,895, 023.00
29,665, 550.00
2,960, 000.00
18,202,977.23
12,383,000.00
65,816,652.00
14,633,650.00
20,344,000.00
134,010,507.27
^ 474,194,500.78
7,903,849.38
4,295,000.00
50,962,171.00
2,099 3"6. 35
8, 803, 238.98
200,994,542.17
16,839,158.49
7,297,633.44
4, 002,689.18
Ul,265,364.86
1 21,973,646.11
3,180,184.23
6,534,199.52
11,818,912.76
5,505,558.90
9, 756,537.55
10,963,164.62
1,117,306.""
5,292,136.69
47,904,276.73
14,718,432.52
4,390,274.69
2,224,808.86
14,691,979.04
1,461,212.02
4,745,460.10
467, €37.92
11,251,705.28
200,311.45
5,081,686.13
666,474.42
18,590,702.00
2,490.149.82
3,631,665.49
46,134,084.07
668,848, 800. 78 6,063,307,817.67
237,697,450.42
31,188,512.74
127,515,642.07
17,344,474.42
135,369,525. 00 1,133,172,111.00
1S6,«34,958.68
20,123 156.17
278,529,124.05
32,778,904.47
381,139,133.51 1,614,428,973.61
1,440,067.84
2,350,267.48
3,440,894.19
2,243,893.13
4,739,144.66
5,893,609.32
581,531.12
21,961 1,402,365,014.88 jl, 442,841,633.68 310,816,778.01
1
33,241, 081.68
29,326. 687.44
18,540, 280.40
30,368, 146.81
67,128,446.11
12,163, .15
10,994,067.00
36,837, 172.45
24,878, 652103
30,390, .21
46,522, 323.94
4,658, 838.01
034,982.03
15', 643,590.38
195, 951,450.48
199, 141,987.14
323, 250,283.30
75. 302,033.06
119, 944,370.98
143, "10,445.11
212, 838,107.78
154, 089,088.11
453, 648,102.52
29, 120,478.39
284,
3,156,023,426.57 24,189,608,5
Includes undivided profits.
".4
.51
I".' M . .,•-,•
'<> 40
17,7..'
2-1". r ; " , 2
1.^3
2s, i 2,-i<>> ".'{
217! :>'-,! 7(.i-.'> .".5
i V ••.".•'•'••-. V ,
120', 700,025 91
2"2, l'!"),rU9.iO
:s". •t.'"^.o.-, ,
2 '. " •
o r . -"• > • „ • • ; . ? 1
1.5!. 7 3 . V S i ; . ' i . 5
2 1 7 , M N i , . ^ ' •.<•;
". V '
z • '
r -. :>,
71,17-1. W.l»i
13'. Si
154.^33.7*2.31
171,4"
1. sic; ;,
. 33
->')
7 "3 . H
rn.731.: "3.'3
315,
131.
531.
.13!
85.' 56s! 3">o
724, 2 17*. 35
115, 29'!. 3.
1L
13.
."2
310. 070,
21(5, S>1 90
!*>',47t.
41').
1, 141
377
( C !
( " '
"> 2 9
".07
2,579, 307, 4A, 01 3,11'-. 320
is
7-.
20"), 996 0" - 3 .
i
116 "i * ('1 d _
\ ' i
,"s
l ^ ) "U
292, 712 ,n< 1
5'>2, S( ), 7(>9
141, 2 t e , 623
150, ou, n<)~
157, 2 I1!, Os"
165, 7 K, 251
260, 7 ' t . 4 M
70, S ' i , 82^
9) 4 ' } S->/>
145,' f [?, CY>
142, ] 11, 186
12!"), « • 5 > 788
329^ : u, 539
24. J H .743
m
71
1
lr
"
,
9 J
' }
51
7/
.21 14,690,', 'l ; 234.3i.
'*> s'()'! M^2
.>O13!l41
3 ^,529.992
S' 315.sl7
'JK224.27!
.'L1. 003'. 211. 44
3^7,236,931.85
3".?.'
,9'.'i 2 -Is'.
621, °02, ."OS. 19
:'*•-'.;', 1
7O.V4S7'siO.nO
393', <W, 453.3
LSI. 828,727. 23
2 ^ , 5 0 9 , 2 7 0 . h.
291,231,719.10
Total resources.
V * " , 2" 1.78
" 1
v?
562,651,991. 15 \
65,576,409.16
86,033,5'w.02
261,653,393.M ;
52,034,714.45 ,
1,462, 700, SO3. 09 1,
322,960,913.2!
51,821,794.25
213,485, 377.95 2,333,4>9,247.987s;670,113.
101.992; 672.95
51] 570,'799.74
465, 318, 09 L,
21 927 409.09
77,516,322.
111,871, 762.23
679,154,035.
17,302, 926.63
100,692,903.
38,147, 858.89
298.465,167.
2,588, 872. 08
2O'.547,SSv
13,328, 119. 65
133,652,017.
76,078, S3"). 99
61-3,037,533.
3,995, 941.45
20.931,108.
7,352,323.19
5,258,489.59
2,211,114.22
I*
> <K •to-V
i
\i -uri; ie , etc
' '."7,'ir,:U)37'79
:>2^, J f5,^iO. (-5
217. ()J ',995.90
1 i - -17! . • w 4 93
7^6 '. ')i.374
25
! 70 > 95
M
7. ? >3,129,4°0.20
1 ^t^::^:i !
1 • -1
S";2
457,
142, 667
16, 557 on 37
7 1 "24', *.v,s
30, 197
1-4,
30, 3 ".
25,
4(Y .'VV2
2."' I
85
8,425,222,2y>
321,619,171.83
."1.1
7 15
' • »:> 17
••, t o } on
OO
Statement showing aggregate resources, etc., of all banking institutions under State control—Continued.
to
State.
NumDate of re- ber of
instiport.
tutions.
Capital.
Surplus.
Undivided
profits.
Capital, surplus, and undivided profits.
Deposits.
Loans and discounts.
Bonds, stocks,
securities, etc.
Total resources.
Statement of Comptroller of the CurCurrency gives totals
for allnationalbanks
on Feb. 28,1920..
Excess of State banking institutions
Increase shown by
State banking institutions over statement compiled in
January, 1920, from
latest figures available at that time
ncrease shown by all
national banks over
statement by Comptroller of the Currency for June 30,
1919
Excess increase of
State banking institutions
7,933 $1,182,082,000.00
$944,126,000.00
$404,443,000.00 $2,530,651,000.00 $16,965,122,000.00 $11,994,523,000.00 $4,430,268,000.00 $21,862,540,000.00
14,028
220,283,014.88
498,715,633.68
193,626,221.99
625,372,426.57
7,224,486,399.21
2,696,210,234.30 3,994,954,280.42
7,161,555,838.83
933
94,476,426.88
109,950,184.82
51,934,137.14
256,360,748.84
2,556,786,387.40
2,433,598,707.90
2 72,300,731.04
3,058,420,002.53
148
29,419,000.00
71,900,000.00
31,7/94,000.00
133,113,000.00
1,040,257,000.00
909,061,000.00
2 617,253,000.00
1,062,990,000.00
785
65,057,426.88
38,050,184.82
20,140,137.14
123,247,748.84
1,516,529,387.40
1,524,537,707.90
1544,952,268.96
1,995,430,002.53
1
Excess national banks.
* Decrease.
AUGUST, 1920.
893
FEDERAL RESERVE BULLETIN.
CONDITION OF LEADING FOREIGN BANKS OF ISSUE, ABOUT END OF JUNE, 1913-1920.
BANK OF ENGLAND.
[Combined data for issue and banking departments.]
[From the London Economist and weekly statements of the Bank of England.]
[In thousands of dollars.]
June 25,
1913.
June 24,
1914.
June 30,
1915.
June 29,
1916.
June 27,
1917.
June 26,
1918.
June 25,
1919.
June 30,
1920.
ASSETS.
G old and silver
Government securities:
Held by the issue department
Held by the banking department
Other securities
186,956
194,310
253,506
298,706
279,989
317,432
427,332
573,673
89,787
62,087
176,124
89,787
53,755
194,636
89,787
248,401
744,160
89,787
205,303
424,909
89,787
220,306
487,750
89,787
251,365
490,543
89,787
325,184
393,228
89,787
438,370
502,164
514,954
532,488
1,335,854
1,018,705
1,077,832
Proprietors' capital
Eest (surplus)
Public deposits
Other deposits
Seven-day and other bills
Notes in circulation
70,822
15,806
87,753
201,006
127
139,440
70,822
15,378
87,958
218,584
63
139,683
70,822
15,023
396,693
684,492
268
168,556
70,822
15,573
239, 816
517,655
136
174,703
70,822
15,626
190,587
608,931
131
191,735
70,822
15,884
174,119
627,044
49
261,209
70,822
15,714
97,544
670,336
63
381,052
70,822
15,865
76,638
856,344
63
584,262
Total
Eatio of metallic reserve to deposit and not
liabilities combined—per cent
514,954
532,488
1,335,854
1,018, 705
1,077,832
1,149,127
1,235,531
1,603,994
43.7
43.5
20.3
32.0
28.2
29.9
37.2
37.8
Total
1,149,127 {
1,603,994
LIABILITIES.
BANK OF FRANCE.
f From L'Economiste Franc.ais and weekly statements of the Bank of France.]
[In thousands of dollars.]
June 26,
1913.
Gold in vault
Other metallic reserve
Total metallic vault reserve
Gold held abroad
Foreign credits
Government securities:
Permanent investments
Advances to the Government since outbreak of war
Treasury bills discounted (advances to
foreign governments.)Other Government securities.
Loans and discounts
Bills matured and extended
Advances on bullion, specie, securities, etc ..
Bank premises
Sundry assets
June 25,
1914.
640,181
120,364
767,309
123,200
760, 54-5
890,509
June 24,
1915.
57,900
June 28,
1917.
June 27,
1918.
June 26,
1919.
June 24,
1920.
757,944
71,947
866,995
66,383
627,877
50,157
648,816
50,050
689,516
58,607
696,651
46;486
829, 891
933,378
52.314
136^ 920
678,034
392,712
139,860
698,866
397,987
267,234
748,123
381,808
327,723
743,137
381,808
165,915
"149,665
57,900
June 29,
1916.
57,900
57,900
57,900
57,900
57,900
57,900
1,158,000
1,524,700
2,045,800
3,560,850
4,487,250
5,018,000
220,020
21,571
86,557
283,482
232,764
8,848
67,149
503,730
21,645
107. 766
230,529
238,522
8,918
110,447
662,955
21,767
262,995
207,746
183,269
8,951
187,851
702,520
21, 558
168,858
155,950
246,842
8,990
296,912
745. 945
19,535
344,876
100,917
359,193
8,957
392,328
22,732
319,645
22,687
311.075
144,634
8,108
33,761
143,437
9,220
57,844
44,390
22,369
50,063
438.677
120; 564
9,587
55,742
1,367,325
1,492,672
2,936,188
3,625,603
4,515,863
6,518,371
7,604,434
8,339,511
Capital
Surplus, including special reserves
Dividends unpaid
Government deposits
O ther deposi ts
Bank notes in circulation
Sundry liabilities
35,223
8,206
3,796
86,925
141, 286
1,041,<W1
49,898
35, 223
8 206
289
.56 S05
196 226
1,129,
66,430
35,223
8,292
572
10, 485
439,061
2,336,201
106,354
35,223
8,292
4,815
7,387
438,620
3,050,492
80, 774
35,223
8,292
4,922
6,467
527,559
3, 825,859
107,541
35,223
8,292
5,051
7,164
775,716
5,510,232
176,693
35,223
8,294
5,248
9,519
648,872
6,647,306
249,972
35,223
8,294
862
14,4S4
690,557
7,245,074
Total
Ratio of metallic reserve to deposit and note
liabilities combined—per cent
1,367, 325
1,492,672
2,936,188
3,625,603
4,515,863
6,518,371
7,604,434
59.9
64.4
29.8
26.7
15.6
11.1
10.2
Total.
LIABILITIES.
344,117
8,339,511
9.3
894
AUGUST, 1920.
FEDERAL RESERVE BULLETIN.
Condition of leading foreign banks of issue, about end of June, 1913-1920—Continued.
GERMAN REICHSBANK.
[From Die Bank, the Deutscher Oekonomist, and the Berliner Borsen-Courier.]
[In thousands of dollars.]
June 30,
1913.
June 30,
1914.
June 30,
1915.
June 29,
1916.
June 30,
1917.
June 29,
1918.
June 30,
1919.
June 30,
1920.
ASSETS.
Gold
257,472
67,268
311,137
77,272
568,737
11,124
587,330
7,408
585,329
15,205
558,866
28,771
265,927
4,751
260,047
Total metallic vault reserve
Imperial Treasury and Loan Bank certificates.
Notes of other banks
. ..
Bills, checks, and discounted treasury bills
Advances on collateral
Securities
Sundry assets
324,740
3,328
3 277
358,577
30,466
24,236
45,517
388,409
11,876
2,303
288,876
17,063
87.423
51;977
579,861
120,989
1,554
1,171,409
3,730
4,845
46,477
594,738
149,899
1,096
1,574,550
2,691
11,505
91,326
600,534
107,261
476
2,611,268
2,096
25,059
291,652
587,637
425,332
244
3,971,016
1,359
25,512
443,709
270 678
2,157,726
772
7,930,363
1,493
29,781
625,762
260 825
4,109,334
478
12,137,269
1,923
81,817
2,786,968
790,141
847,927
1,928,865
2,425,805
3,638,346
5,454,809
11,016,575
19,378,614
42,876
16,685
551,854
165,882
12,844
42,876
17,741
573,247
204,446
9,617
42,876
19,187
1,391,168
428,592
47,042
42,876
20,366
1,724,687
564,701
73,175
42,876
21,471
2,072,030
1,356,001
145,968
42,876
22,588
2,979,967
2,186,982
222,396
42,876
23,700
7,138,470
3,270,400
541,129
42,876
24,834
12,856,874
5,577,204
876,826
790,141
847,927
1,928,865
2,425,805
3,638,346
5,454,809
11,016,575
19,378,614
45.2
49.9
31.9
26.0
17.5
11.4
2.6.
1.4
Total
778
LIABILITIES.
Capital paid in
Surplus
Notes in circulation
Other liabilities payable on
Sundry liabilities
demand....
Total
Ratio of metallic reserve to deposit and note
liabilities combined (per cent)
BANK OF THE NETHERLANDS.
[From the Amsterdam Algemeen Handelsblad, and weekly statements of the Bank of the Netherlands.]
[In thousands of dollars.]
June 28,
1913.
June 27,
1914.
June 26,
1915.
June 24,
1916.
June 30,
1917.
June 29,
1918.
June 28,
1919.
June 28,
1920.
<Jold coin and bullion.
.•Silver
58,405
3,592
64,572
3,762
139,549
956
221,914
3,380
251,945
2,997
288,459
3,092
264,404
3,302
255,794
5,586
Total metallic vault reserve.
Loans and discounts
Foreign bills
Advances
-Government securities
•Other securities
Bank premises
tSundry assets
,
61,997
31,223
6,638
32,967
4,636
3,609
804
413
68,334
26,709
8,009
23,719
5,256
3,616
723
345
140,505
29,553
928
47,856
1,372
3,614
643
3,735
225,294
17,010
3,250
32,198
291,551
17,614
3,117
49,079
1,836
3,640
712
36,284
267,706
43,794
10,269
90,525
3,680
563
20,176
254,942
21,163
3,138
31,817
1,844
3,670
589
26,609
3,440
1,332
33,171
261,380
47,135
19,979
119,385
5,486
3,043
1,445
16,768
142,287
136,711
228,206
302,171
343,772
403,833
450,237
474,621
Capital
Surplus
Notes in circulation
Interest-bearing certificates.
Government deposits
Other deposits
Sundry liabilities
8,040
2,010
125,876
8,040
2,011
123,073
870
8,040
2,010
194,507
621
8,040
2,104
307,218
1,503
8,040
2,042
372,789
nil
2,046
671
22,073
955
24,094
813
19,543
642
8,040
2,010
409,267
1,430
6,087
22,003
1,400
8,040
2,010
403,933
775
4,649
779
8,040
2,072
253,625
1,004
7,964
28,776
690
Total
Ratio of metallic reserve to deposit and note
liabilities combined (per cent)
142,287
136,711
228,206
302,171
343,772
403,833
450,237
474,621
47.5
54.6
64.9
77.6
76.9
74.3
61.2
56.6
Total.
LIABILITITS.
57,774
2,089
AUGUST,
1920.
895
FEDERAL RESERVE BULLETIN.
Condition of leading foreign banks of issue, about end of June 1913-1920—Continued.
BANK OF SPAIN.
[From weekly statements of the Bank of Spain, and Espana Economica y Financiera.]
[In thousands of dollars.]
June 28,
1913.
June 27,
1914.
June 26,
1915.
June 24,
1916.
June 30,
1917.
June 28,
1918.
June 28,
1919.
June 26,
1920.
ASSETS.
Gold
Silver
Total metallic vault reserve
Credits abroad
Loans, discounts, and advances
Government securities:
Charter 1891
Charter 1899
Other
Sundry assets
,
Total
88,208
145,628
102,599
141,085
133,086
144,193
199,168
148,034
303,837
145,838
405,533
135,916
438,349
126,711
473,344
119,765
233,836
37,377
127,535
243,684
34,614
133,021
277,279
23,829
132,416
347,202
18,847
114,184
449,675
17,729
146,891
541,449
19,434
166,301
565,060
17,094
316,163
593,109
9,936
293,122
28,950
19,300
66,483
19,015
28,950
19,300
66,475
17,391
28,950
19,300
66,475
43,364
28,950
19,300
66,475
35,518
28,950
19,300
66,477
11,240
28,950
19,300
66,477
9,195
28,950
19,300
66,484
13,969
28,950
19,300
66,484
41,593
532,496
543,435
591,613
630,476
740,262
851,106
1,027,020
1,052,494
28,950
3,860
30,235
85,841
354,792
28,818
28,950
3,860
32,382
93,675
365,186
19,382
28,950
4,246
24,024
131,989
380,596
21,808
28,950
4,632
11,260
149,046
415,298
21,290
28,950
5,018
41,953
153,797
478,147
32,397
28,950
11,194
8,947
213,918
561,819
26,278
28,950
11,580
87,043
189,799
678,685
30,963
28,950
11,966
9,869
223,860
747,324
30,525
532,496
543,435
591,613
630,476
740,262
851,106
1,027,020
1,052,494
49.6
51.7
69.0
59.1
60.5
LIABILITIES.
Capital
Surplus
Government deposits
Other deposits
Notes in circulation
Sundry liabilities
,
Total
Ratio of metallic reserve to deposit and note
liabilities combined—per cent
,
49.7
60.3
66.7
INDEX.
Acceptances:
Page.
Agencies of national banks for purpose of accepting drafts
835
Banks granted authority to accept up to 100
per cent of capital and surplus
833
Draft drawn for purpose of furnishing dollar
exchange
835
Purchased by Federal Reserve Banks—
During June
870, 873
During 3 months ending June
870
American investments abroad
777
Bank of England, statement of condition of
893
Bank of France, statement of condition of
893
Bank of Netherlands, statement of condition of
894
Bank of Spain, statement of condition of
895
Banking situation, discussion of
781
Books received by Federal Reserve Board library
during July
834
Branch at Oklahoma City opened for business
782
Brazil, economic and financial conditions in
813-824
Business and financial conditions during July... 783-797
The coal shortage
789
Employment conditions
791
Condition of wholesale trade
795
Certificates of indebtedness:
Issued during June
769
Maturities of, purchased by Federal Reserve
Banks
781
Chart showing stock of money in the United States. 827
Charters issued to national banks during July
833
Clayton Act, amendment to
813
Clearing and collection:
Number of banks on par list
874
Operations of the system, June-July
874
Clearing-house bank debits, June-July
863-866
Clothing industry, terms of sale in
803
Coal shortage, reports on, by Federal Reserve
agents
789
Commercial failures reported
833
Condition reports:
Bank of England
893
Bank of France
893
Bank of Netherlands
894
Bank of Spain
895
Brazilian banks
821-824
Federal Reserve Banks
875-879
German Reichsbank
894
Member banks in leading cities
882-887
Corset industry, terms of sale in
811
Credit control, discussion of
774
Crop report for July
832
Currency, stock of, in the United States
890
Debits to individual account, June-July
863-866
Discount and open-market operations of the Federal
Reserve Banks
867-873
Acceptances purchased during June
870, 873
Acceptances purchased during 3 months ending
June
870
Bills discounted during June
870
Bills discounted during 3 months ending June. 870
Bills held on last Friday in June
872
Collateral notes held on last Friday in June
872
Discount and open-market operations of the Federal Page.
Reserve Banks—Continued.
Dollar exchange bills purchased during June.. 870
Earning assets held during June
869
Member banks, number of, accommodated
868
Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks 872
Discount rates:
Application of progressive rates
777
In effect July 30
890
Prevailing in various centers
852
Dry-goods industry, terms of sale in
797
Earning assets held by Federal Reserve Banks
869
Earnings and expenses of the Federal Reserve Banks
for 6 months period
828-831
Employment conditions, reports on, by Federal
Reserve agents
791
Failures, commercial, reported
833
Federal Reserve Banks:
Discount and open-market operations of
867-873
Earnings and expenses of, for 6 months period 828-831
Resources and liabilities of
875-879
Federal Reserve notes:
Interdistrict movement of
881
Note account of Federal Reserve agents and
banks
880
Fiduciary powers granted to national banks
834
Financing of the Treasury during June
769
Foreign banks, condition of
893-895
Foreign exchange rates
779
Rates on foreign centers at Rio de Janeiro
819
Foreign trade index
841
Foreign trade
financing
775
Fur manufacturing industry, terms of sale in
807
German Reichsbank, statement of condition of
894
Glove industry, terms of sale in
812
Gold, imports and exports of
780, 888
Harding, W. P. G., redesignated as governor of Federal Reserve Board
782
Harrison, G. L., resignation as general counsel of
Federal Reserve Board
782
Hats, men's, terms of sale in the industry
809
Imports and exports:
Gold
780, 888
Silver
780,889
Index numbers:
Foreign trade
841
International price index
850
Physical volume of trade
853-863
Retail trade in the United States
839, 840
Wholesale prices abroad
842-850
Wholesale prices in the United States
836-838
Interest rates prevailing in various centers
852
Law department:
Agencies of national banks for purpose of accepting drafts
835
Logan, W. S., appointed general counsel of Federal
Reserve Board
782
Maturities:
Acceptances purchased
870
Bills discounted and bought
870, 879
Certificates of indebtedness purchased
879
i
II
INDEX.
Member banks:
Number discounting during June
868
Number in each, district
868
Resources and liabilities of, in leading cities.. 882-887
State banks admitted into system during July. 833
Men's furnishings, terms of sale in the industry
810
Millinery, terms of sale in the industry
808
Money, stock of, in the United States
824-827, 890
National banks:
Agencies of, for purpose of accepting drafts
835
Charters issued to, during July
833
Fiduciary powers granted to
834
Oklahoma City, branch bank opened in
782
Physical volume of trade
853-863
Platt, Edmund, designated as vice governor of Federal Reserve Board
782
Prices:
Changes in, discussion of
771
International price index
850
Wholesale, abroad
842-850
Wholesale, in the United States
836-838
Rates:
Acceptances purchased
870
Bills discounted during June
870
Earning assets held by Federal Reserve Banks. 869
Retail trade index
839, 840
Resources and liabilities:
Federal Reserve Banks
875-879
Member banks in leading cities
882-887
Rulings of the Federal Reserve Board:
Page.
Acceptance of drafts drawn for purpose of furnishing dollar exchange
835
Sale, terms of, in the principal industries
797
Silver, imports and exports of
780, 889
Spa conference
779
State banks and trust companies:
Admitted into system during July
833
Resources of State bank institutions
891
Terms of sale in the principal industries
797
Trade:
Foreign, index of
841
Physical volume of
853-863
Retail, index of
839, 840
Wholesale, reports on, by Federal Reserve
agents
795
Transportation situation
773
Treasury financing during July
769
Underwear, terms of sale in the industry
812
Wholesale prices:
Abroad
842-850
In the United States
836-838
International price index
850
Wholesale trade, reports on, by Federal Reserve
agents
797
Woolens and worsteds, terms of sale in the industry. 802
MO. * ^
f-^K
FEDERAL RESERVE DISTRICTS
^ FEDERAL RESERVE BANK CITIES
O FEDERAL RESERVE BRANCH CITIES
The branch at Helena, Mont., has been authorized by the Federal Reserve Board, but is not yet open for business.
@FedFRASER