Full text of Federal Reserve Bulletin : August 1927

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FEDERAL RESERVE
BULLETIN




AUGUST, 1927

ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

Bank Credit and Money Rates
Business Conditions in the United States
Report of Agent General for Reparation Payments

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON
1927

FEDERAL RESERVE BOARD
Ex officlo members:

D. R. CRISSINGER, Governor.
EDMUND PLATT, Vice Governor.

A. W. MELLON,

ADOLPH C.
CHARLES S.
GEORGE R.
EDWARD H.

Secretary of the Treasury5 Chairman,
J. W. MCINTOSH,

Comptroller of the Currency.

MILLER.
HAMLIN.
JAMES.
CUNNINGHAM.

WALTER L. EDDY, Secretary.

WALTER WYATT, General Counsel.

J. C. NOELL, Assistant Secretary.
E. M. MCCLELLAND, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.

E. A. GOLDENWEISER, Director, Division of Research
and Statistics.

CARL E. PARRY, Assistant Director, Division of Research and Statistics.
hiefj Division of Examination, and Chief Federal
Reserve Examiner.
E. L. SMEAD, Chief, Division of Bank Operations,

•J. F. HERSON,

FEDERAL ADVISORY COUNCIL
District No. 1 (BOSTON)
District No. 2 ( N E W YORK)
District No. 3 (PHILADELPHIA)
District No. 4 (CLEVELAND)
District No. 5 (RICHMOND)
District No. 6 (ATLANTA)
District No. 7 (CHICAGO)
District No. 8 (ST. LOUIS)
District No. 9 (MINNEAPOLIS)
District No. 10 (KANSAS CITY)
District No. 11 (DALLAS).
District No. 12 (SAN FRANCISCO)..
II




„.--_
.

.„

ARTHUR M. HEARD.
JAMES S. ALEXANDER.
L. L. R U E .
HARRIS CREECH.

JOHN F. BRUTON, Vice President.
.
_-__
__.
____.

. P. D. HOUSTON.
FRANK O. WETMORE, President.
BRECKINRIDGE JONES.
THEODORE WOLD.
P. W. GOEBEL.
B. A. MCKINNEY.
HENRY S. M C K E E .

OFFICERS OF FEDERAL RESERVE BANKS
Governor

Chairman

Federal Reserve Bank of—
Boston -.- . - —
New York

Frederic H. Curtiss_
G. W. McGarrah

Philadelphia—

R. L. Austin...„.
George DeCamp._.__

Cleveland

- .. .. Wm. W. Hoxton.
Oscar Newton
...

Richmond *.
Atlanta
Chicago

St. Louis.
Minneapolis

Wm. A. Heath

„

.

Kansas Citv
Dallas..
San Francisco

.„

Deputy governor

Cashier

W. W. Paddock.
W. P. G. Harding
Benj. Strong
_.„.„--. J. H. Case__...
L.
_„
G. FL. Sailer
Harrison
E. R. Kenzel
Geo. W.Norris...........
„. Wm. H. Hutt
M. J. Fleming..„........„_
E. R. Fancher
Frank J. Zurlinden....
„
.._ George J. Seay«._
. „ C. A. Peple.
R. H. Broaddus
M. B. Wellborn . .
Hugh
_. .
Creed Foster.
Taylor. _
J. B. McDougal
C. R. McKay
John H. Blair

Wm McC. Martin . .
John R. Mitchell

D. C. Bigj?s
R. A. Young

M. L. McClure .
C. C. Walsh.

W. J. Bailey...
Lynn P. Taliey
J. U. Calkins

Isaac B. Newton

* Controller.

0. M. Attebery
.„.. W. B. Geery
B. V. Moore %
Harry Yaeger
C. A. Worthington
R. R. Gilbert
R. B. Coleman
Wm. A. Day
Ira Clerk
L. C. Pontious—

W. Willett.
A. W. Gilbart.i
J. W. Jones.*
Ray M. Gidney.*
L. R. Rounds.i
C. A. McDhenny
W. G. McCreedy.i
H. F. Strater.
Geo. H. Keesee.
John S. Walden, Jr.*
M. W. Bell.
W. C. BachmanJ
K. 0. Childs.i
J. H. Dillard.i
D. A. Jones.i
0. J. Netterstrom.*
J. W. White.
Gray Warren.
Frank C. Dunlop.i
J. W. Helm.
Fred Harris.
W. N. Ambrose.

> Assistant deputy governor.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
New York:
Buffalo branch
„
Cleveland:
Cincinnati branch...
Pittsburgh branch
Richmond:
Baltimore branch
Atlanta:
New Orleans branch
Jacksonville branch
Birmingham branch. _.
Nashville branch
_...__
Chicago:
Detroit branch
.
...
St. Louis:
Louisville branch
Memphis branch..
Little Rock branch

Managing director

W. W. Schneckenburger.
C. F. McCombs.
J. C. Nevin.
A. H. Dudley.
Marcus Walker.
Geo. R. DeSaussure.
A. E. Walker.
J. B. Fort, jr.
W. R. Cation.
W. P. Kincheloe.
W. H. Glasgow.
A. F. Bailey.

Federal Reserve Bank of—
Minneapolis:
Helena branch..
Kansas City:
Omaha branch
Denver branch
Oklahoma City branch
Dallas:
El Paso branch
Houston branch.
San Antonio branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch
Seattle branch..
Spokane branch
.

Managing director
R. E. Towle.
L. H . Earhart.
J. E.. Olson.
... C. E Daniel.
W. 0. Ford.
D P. Reordan.
M. Crump.
Wm. M. Hale.
R. B. West.
W. L. Partner.
C. R. Shaw.
D. L. Davis.

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. The BULLETIN will be sent to all member
banks -without charge. To others the subscription price, which covers the cost of
paper and printing, is $2. Single copies will be sold at 20 cents. Outside of the
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<

TABLE OF CONTENTS
Page

Review of the month—Bank credit and money rates

555

Merchandise distribution in the first half of 1927
Revised indexes of building contracts, freight-car' loadings, and automobile production
Earnings and expenses of Federal reserve banks

558
562
619

National summary of business conditions
Financial, industrial, and commercial statistics:
Reserve bank credit—Reserve bank credit in use
Discounts and deposits of Federal reserve banks
Gold imports and exports and money in circulation
Money rates in New York City
Federal reserve bank rates
Open-market rates
Rates charged customers by banks in principal cities
Member bank credit—
Member bank reserve balances and borrowings at Federal reserve banks
Loans, investments, and deposits of reporting member banks
Bankers' balances in Federal reserve bank and branch cities
Commodity prices, security prices, and security issues
,
Industrial production
Factory employment and pay rolls
Building
Commodity movements
Wholesale trade
Retail trade
Bank suspensions and commercial failures

_

564

566
566
567
568
568
568
569
;

Foreign banking and business conditions:
Report of the agent general for reparation payments
Annual report of the Bank of Italy
Annual report of the Bank of Netherlands
Financial statistics for foreign countries:
Condition of central banks
Condition of commercial banks
Discount rates of 32 central banks
Money rates in foreign countries
Gold exports and imports of principal countries
Foreign exchange rates
Price movements in principal countries—
Wholesale prices
R,etail food prices and cost of living

570
570
571
572
573
574
575
576
576
577
578
579
590
596
600
602
602
603
604
605
606
608

Rulings of the Federal Reserve Board:
Reserves against so-called savings accounts which are subject to check
Violations of section 22 of the Federal reserve act and of sections 5208 and 5209 of the Revised
Statutes of the United States
Changes in national and State bank membership
Fiduciary powers granted to national banks

609
612
612

Detailed banking statistics for the United States

613

IV




609

FEDERAL RESERVE BULLETIN
VOL. 13

AUGUST, 1927

REVIEW OF THE MONTH
The banking situation during recent weeks
has been characterized primarily by a.decrease
in the demand for currency and
Banking situ- bank credit and by easier conation
ditions in the money market.
The demand for currency for general circulation, which decreased during the second quarter of the year, remained relatively low
in July, after the return of currency that went
into circulation over the holiday, and continued
to be below the level of a year ago. Reduction
during July in member bank credit outstanding, after a rapid increase in earlier months,
approximated $290,000,000 for member banks
in leading cities, the decrease being partly in
commercial loans but more largely in investments and in loans on stocks and bonds,
primarily at New York City. Am important
factor underlying this development was a
reduction in the current volume of new securities issued and a distribution of bonds that
had previously accumulated in the portfolios
of investment houses. Deposits of member
banks, especially at New York City, declined
during recent weeks, with the consequence
that their reserve requirements in July were
considerably below the exceptionally high level
of June; this decrease in reserve balances,
together with the reduction of currency in
circulation after July 4 resulted in a diminution of the demand for reserve bank credit.
Total bills and securities held by the reserve
banks, after rising in June to the highest level
since the seasonal peak of last December, declined during July and at the end of the month
were considerably below the average for the
first half of the year. At the same time conditions in the money market became easier,
with money rates on collateral loans and
bankers' bills at a low point for the year.




No. 8

Thus the banks of the country enter upon
the crop-moving season with a smaller amount
of indebtedness at the reserve bank and with
easier conditions prevailing in the money market than at any time since the corresponding
season of last year.
The decrease during the last month in member bank investments and loans on securities,
approximating $170,000,000 for
Investments these two items combined, foland loans on T
-,
,-,
securities
lowed an increase oi£ more than
$800,000,000 during the preceding four months, when the commercial deBILLIONS OF DOLLARS

BILLIONS OF DOLLARS

10

COMBINED INVESTMENTS AND SECURITY LOANS

t922

1923

1924-

1925

1926

10

1927

mand for bank loans was not sufficiently large
to absorb the growth in funds at the disposal
of member banks. During this period member
banks sought employment for their surplus
funds in investments and in loans on securities,
and the growth in these items was more rapid
than at any other time since 1924, bringing
their level in June to a new high point both for
banks in New York City and for banks in other
555

556

FEDERAL RESERVE BULLETIN

leading cities, as brought out by the chart
which shows separately for these two groups of
banks the course of combined holdings of
investments and loans on securities during the
past five years. The chart also brings out the
fact that, notwithstanding the reduction of
these holdings during recent weeks at New
York City and the absence of appreciable
growth in other leading cities, the general level
of these holdings in July was higher than at
any time prior to last June. The reduction for
New York City banks early in July reflected
both declines in their investment holdings and
in their street loans on securities, indicating that
the reduction may have been largely the consequence of a decrease in the credit requirements
of investment houses, following upon recent readjustments in the market for new issues of
bonds and other types of investment securities.
Total security issues during the first half of the
year were larger than in any other half year since
the period of war financing.
Security flota- These amounted altogether,
tions
including both new issues and
refunding issues, to about $5,300,000,000, or
$1,350,000,000 more than during the first half
of 1926. The refunding issues, which amounted
to nearly $1,200,000,000, were more than twice
as large in volume as last year or the year before, and generally bore a lower rate of interest
than the securities which they replaced.
New issues of securities, which afford the
best indication of the demand for new capital,
have been in relatively large volume for a
series of years. During the last four fiscal
years, they have approximated, on the average,
nearly $6,000,000,000 per year, amounting for
the period as a whole to $24,000,000,000, of
which $20,000,000,000 have been domestic
securities and $4,000,000,000 foreign securities.
Corporate issues, which constituted more than
three-fifths of the total issues, were distributed
by class of corporation as follows:




AUGUST,

CORPORATE ISSUES, JUNE 30, 1923, TO JUNE 30,

1927

1927

Amount Percent(millions age of
of dollars) total
Public utilities
Land, buildings, etc
Railroads
Other industrial and manufacturing
Oil
Iron, steel, coal, copper
Motors and accessories...-Rubber
_
Shipping
Equi pmeiit manufactures
Miscellaneous
Total

-.._

5.920
2,249
2,062
1,765
906
646
449
113
68
62
1,518

37.6
14.3
13.1
11.2
5.8
4.1
2.8
.7
.4
..4
9.6

15, 756

100.0

About one-half of these corporate issues
represent capital requirements of public utilities of various kinds: Railroads, street railways,
electric light and power, telephone and telegraph, water and gas companies, and the like.
Other corporate issues have represented a part
of the demand for housing accommodation,
and non-corporate issues, not shown in the
table, have reflected the demand for capital
arising from the construction of public roads
and public buildings. Thus the demand during recent years for capital to be used in longterm investment has originated largely in a
demand for durable instruments of production
and durable consumption goods as is usual
during periods of large industrial activity.
At the same time the supply of funds seeking
long-term investment has been ample, except
for short periods of a few months, as is evidenced by the downward trend of long-term
interest rates during the last four years. The
decline since the middle of 1923, measured by
the change in yield on high-grade bonds, has
been close to one-half of 1 per cent, and has
brought the yield on high-grade bonds of miscellaneous character to a current level of about
43^2 per cent. This level, while not so low as
in the earlier part of the present century, is
close to that of the years immediately preceding the outbreak of the war.

AUGUST, 1927

FEDEEAL RESEEVE BULLETIN

557

The recent course of short-term money rates, City banks to the Federal Reserve Bank of
after a slight seasonal increase around the New York, which was in June and July near
first of July, has been down- the lowest level since 1924. Member banks in
The money mar-,
-,
,
i ,i
j other leading cities, on the other hand, owed
ket
,ftt
ward, as shown toward the end the reserve banks slightly more than at the
of the month by a decline of same time in 1926 or 1925. Member banks
rates for call money, time loans on stock ex- outside of the leading cities, however, includchange collateral, and bankers 7 acceptances to ing almost all of the so-called country banks,
a level lower than at any other time this year. have increased their borrowings somewhat
A factor in this decline in rates has been the during recent months, as is usual at this season,
decrease in the demand for currency for gen- but throughout the last three months were
eral circulation, a decrease since the first of MILLIONS OF DOLLARS
MILLIONS OF DOLLARS
~ •
the year larger than the average decline during 5 0 0
BORROWINGS FROM
FEDERAL RESERVE BANKS
the same period of other recent years. Gold
imports since the early part of M a y have
400
not been an important factor in the money
market because they have been accompanied
by large sales of gold by the reserve banks to
foreign account. The effect of these sales of
gold on the money market has been more than
offset, however, by an increase in the security
holdings of the reserve banks.
100100
The average volume of reserve bank credit
in use during June, $1,033,000,000, was close
ol
1927
1925
1926
1923
1924„
, , to the highest level of the year,
J
Reserve bank
., J ,. I borrowing less at the reserve banks than at
1 ,, °
ana there was a substantial the same season in any other recent year.
credlt
temporary advance above this
level early in July, reflecting the effect of the
holiday demand for currency, which was met Reduction of discount rates
by the member banks through increasing their
The discount rates of four Federal reserve
borrowings at the Federal reserve banks. banks on all classes of paper and all maturities
This indebtedness was reduced as the currency were reduced from 4 to 3J^ per cent, effective
returned from circulation, with the conseas follows: Kansas City, July 29; St. Louis,
quence that the volume of reserve bank credit
August 4; Boston and New York, August 5.
in use decreased from week to week after
July 6, and toward the end of the month was San Antonio Branch of Federal Reserve Bank
The San Antonio branch of the Federal
close to the lowest level of the year, and about
Reserve
Bank of Dallas, recently authorized
$125,000,000 below the level of a year ago.
by the Federal Reserve Board, was opened for
The recent decrease occurred in part in re- business on July 5. The territory served by
serve bank holdings of acceptances, which usu- this branch comprises the following counties in
ally decline during the summer, but was re- Texas: Aransas, Atascosa, Bandera, Bee, Bexar,
flected primarily in a decrease in member bank Blanco, Brewster, Brooks, Caldwell, Calhoun,
borrowings. Both the temporary increase in Cameron, Comal, DeWitt, Dimmit, Duval,
borrowings at the end of June and the subse- Edwards, Frio, Gillespie, Goliad, Gqnzales,
quent decrease, as shown by the weekly re- Guadalupe, Hays, Hidalgo, Jim Hogg, Jim
Wells, Karnes, Kendall, Kenedy, Kerr, Kimble,
turns, occurred at member banks throughout Kinney, Kleberg, La Salle, Live Oak, Llano,
the country, but when the comparisons are Mason, Maverick, McMullen, Medina, Nueces,
made on a monthly basis, as is done on the Presidio, Real, Refugio, San Patrick), Starr,
chart, it appears that the most considerable Terrell, Travis, Uvalde, Valverde, Victoria,
change during recent months has been a Webb, Willacy, Wilson, Zapata, and Zavalla.
reduction in the indebtedness of New York




558

FEDERAL RESERVE BULLETIN

AUGUST,

1927

MERCHANDISE DISTRIBUTION IN THE FIRST HALF OF 1927
Distribution of merchandise to consumers,
as indicated by sales of department stores, mailorder houses, and chain stores operating in all
sections of the country, was slightly larger in
the first half of 1927 than in the first six months
of 1926. Wholesale trade, on the other hand,
was smaller in value than in the corresponding
period of last year, but this decrease in dollar
value of sales has been influenced by the reduction in wholesale prices. Inventories carried
by department stores averaged smaller than in
the corresponding period of last year and reflected a continuation of the policy of retailers
to carry smaller stocks, relative to sales, than
in earlier years and thereby to increase the rate
of stock turnover.
Retail trade.—Department store and mailorder house sales in the first half of 1927 were
about the same in value as in the first half of
1926, while sales of chain stores, which reflect
changes in number of stores as well as in the
value of sales, were substantially larger. Detailed statistics showing the amount of sales
made by each class of stores in the first half of
1926 and 1927, and the number of firms represented by the data are given in the following
table:
RETAIL SALES AND NUMBER OF REPORTING FIRMS
Per cent
increase (+) Number
or decrease of stores
(-)

Sales: First
6 months,
1926

Sales: First
6 months,
1927

Department stores.__ $800, 559, 000
253, 941,000
Mail-order houses
Chains of stores:
514,464,000
27 grocery
197, 275,000
5 five-and-ten
9 drug.._ 43, 368, 000
50,886,000
3 cigar.
19, 668, 000
6 shoe
5,909, 000
4 music14, 554, 000
5 candy

$807,091, 000
254,416,000

+0.8
+0.2

624,450,000
217,861,000
49, 901,000
52,675,000
19, 585, 000
5, 233,000
15, 486, 000

+21.4
+10.4
+15.1
+3.5
-0.4
-11.4
+6.4

Class of stores

359
14
2 27, 551
2 2, 397
2 731
2 3, 413
595
2 62
2 275

1 Total number of reporting mail-order firms. Number of separate
distributing
houses and retail outlets not available.
2
Number of stores operated in June, 1927.

Department-store sales and stocks.—Department-store sales, starting in January at
about the same level as in the corresponding
month a year earlier, increased considerably
more than is customary in February. In
March generally unfavorable weather for
spring retail trade together with the late




Easter season delayed a large part of the
customary buying b}T consumers and sales
for the month of March as a whole were
below those of March, 1926. In April retail
trade expanded rapidly, reflecting more favorable weather conditions and the late Easter
season, and department-store sales were
nearly 8 per cent larger than in April of the
previous year. Sales declined slightly in
May but in June they increased again, and as
DEPARTMENT STORE SALES AND STOCKS
( SEASONALLY ADJUSTED-1919=100 )

1923

1925

1926

1927

the first half of the year ended, they were
running slightly larger than in 1926. The
course of sales in the first half of this year is
shown in greater detail in the chart, which also
shows the movement of stocks of department
stores from the beginning of 1923 through
June, 1927.
Analysis of department store sales by Federal reserve districts for the first half of the
year shows that in the Boston, New York,
Cleveland, and Chicago Federal reserve districts, which are basically industrial and
commercial, and in the San Francisco and
Kansas City districts, sales were larger than in
the first half of 1926, while in several southern
and middle western districts, which are principally agricultural, and in the Philadelphia
district, sales were below those of last year.
Increases over the first half of 1926 varied from
about 1 per cent in the Cleveland and Kansas
City districts to 3 per cent in the San Francisco
district, while decreases ranged from 1 per cent
in the Atlanta district to 4 per cent in the St.

AUGUST,

559

FEDEKAL EESEKVE BULLETIN

1927

Louis district. Analysis of sales in 63 individual
cities throughout all sections of the United
States shows that sales were larger than in the
first half of 1926 in 36 cities and smaller in 27
cities. Increases of more than 10 per cent occurred at Columbus, Atlanta, Evansville, Oklahoma City, and Tulsa, while the largest decreases, ranging from 6 per cent to 10 per cent,
were in Harrisburg, Birmingham, Little Rock,
and Memphis. Statistics showing in greater
detail changes in the amount of sales in the
first half of 1927 compared with the first half
of 1926, by cities and by Federal reserve districts, are shown in the table.
Inventories of department stores.—Inventories of merchandise of department stores averagecl slightly smaller in the first half of the
year for the country as a whole than in the
first six months of 1926. Stores in nearly all
sections of the country, except in the Boston
and San Francisco Federal reserve districts,
reported smaller stocks at the end of June of
this year than in 1926, and the largest declines
were in the St. Louis, Minneapolis, and Dallas
districts. In certain individual cities—Buffalo,
Rochester, Syracuse, Wheeling, Birmingham,
Dallas, and Salt Lake City—inventories were
reduced much more than for the country as a
whole, and at the end of June averaged more
than 10 per cent smaller than a year ago. In
other cities—Trenton, Wilmington, Youngstown, Atlanta, and Tulsa—stores reported
relatively large increases in inventories as
compared with a year ago.
Smaller inventories and larger sales resulted
in a slightly higher rate of stock turnover in
the first half of the year than in the corresponding periods of 1926 and 1925. This slight
increase in the rate of stock turnover in the
first half of this year reflects a continuation
of the practice followed by mercantile firms
in recent years of increasing sales without
a corresponding increase in stocks. Wide
variation, however, in the course of sales and
stocks in different sections of the country
resulted in considerable variation in the rate
of turnover in the several Federal reserve dis55972—27-




2

tricts and in individual cities, as is seen from
the following table. The table shows the
percentage of increase or decrease in sales in
the first six months of 1927, in stocks on hand
at the end of June, compared with the corresponding periods in 1926, and the rate of stock
turnover in the first six months of 1926 and
1927 at stores in different cities and by Federal
reserve districts.
SALES, STOCKS, AND RATE OF STOCK
DEPARTMENT STORES

Sales: Per
cent of increase or
decrease
( - ) in first
half of 1927
compared
with 1926

Federal reserve district
and city

Boston:
Boston
Outside Boston
New Haven
Providence

_

Total
New York:
New York
Bridgeport
Buffalo
Newark
Rochester
Syracuse _Other cities

___.

Philadelphia:
PhiladelDhia
Allentown
Altoona
Harrisburg

Johnstown.
Lancaster

Reading
Scranton
Trenton
Wilkes-Barre
Wilmington
York
Other cities

3.4
-.3
-.6

1.0
2.5

-.4

2.12
1.52
1.34
1.66

2.10
1.55
1.41
1.79

1.8

1.86

1.87

-2.4
-1.1
g

a2

-.8
-8.3
-13.1
4.8
-11.8
-23.0
-2. 3

1. 98
1.54
1.48
1.82
1.78
1.54
1.15

2.03
1.56
1. 67
1.95
1.77
1.89
1.14

2.4

-2.7

1.83

1.91

-4.0
7.9

-1.1
6.8
-4.5
1.4
-1.5
6.5
-7.6
-4.0
10.5

1.85
1.30
1.30
1.42
1.29
1.42
1.36
1.73
1 57
1.37
1.45
1.53
1.25

1.76
1.33
1.40
1.32
1.24
1.39
1.51
1.66
1 61
1.37
1.35
1.54
1.14

5.4

_ __

_ _ _.

Davton
Pittsburgh .

Toledo.Wheeling
Youngstown
Other cities
Total

-10.3
-.6
.7
-4.6
1.6
—1.1
.3
3.9
2.9

Total
Cleveland:
Cleveland
Akron
Cincinnati__
Columbus

__

Stocks:
Rate of stock turnPer cent
over in first half
increase or
of year
decrease
(—) at end
of June,
1927, com1927
1926
pared with
June, 1926

2.3
2.6
44

2.4
-3.6
o

Total

TURNOVER OF

3.8

14.7

-4.2

.2
1.4

-3.0

-.6

1.69

1.63

1.3
2.2
3.0
14.4
-.3
-2.5
5.9
-2.1
7.1
.9

2.7
-.6
.7
18.3
-3.7
-4.6
-4,0
-10.2
22.9
-4.1

1.69
1.57
1.68
1.60
1.57
1.47
1.28
1.33
2.13
1.16

1.69
1.71
1.73
1.64
1.62
1.45
1.37
1.44
1.92
1.15

-.4

1.54

1.56

1.1

Richmond:
Richmond-.
Baltimore
Washington
Other cities

3.2
-3.2
-1.9
-1.2

.5
-4.7
.3
2.8

1.60
1.53
.1.66
1.34

1.63
1.52
1.63
1.27

Total

-1.9

-1.5

1.56

1.54

.

560

FEDERAL RESERVE BULLETIN

SALES, STOCKS, AND RATE or

STOCK

TURNOVER OF

DEPARTMENT STORES—Continued
Sales: Per
cent of increase or
decrease
( - ) in first
half of 1927
compared
with 1926

Federal reserve district
and city

Atlanta:
Atlanta
Birmingham
Chattanooga
Nashville
New Orleans
Savannah
Other cities

„

Total
Chicago:
Chicago
Detroit
IndianaDolis _ _
Milwaukee
Other cities
Total

-

St. Louis:
St. Louis
Evansville
Little Rock
Louisville
Memphis

11.1
-6.1
1.7
-1.3
-2.0
4.6
-9.5

23.6
-16.7
8.2
-2.0
-4.4
-3.0
-4.2

1.79
1.37
1.22
1.52
1.31
1.35
1.59

1.87
1.29
1.19
1.64
1.18
1.42
1.38

—1.4

-1.6

1.44

1.37

5.4
4.3
2.7
0.5
-2.8

-0.2
1.7
3.3

2.41
2.26
2.23

2.54
2.22
2.29

-8.6

1.39

1.45

-3.2

1.80

1.85

-3.3
16.0
-7.0
-1.2
-7.9

-5.6
7.8
-4.7
-3.3
-4.7

1.68
1.09
1.22
1.49
1.38

1.67
1.18
1.19
1.62
1.33

-3.9

-5.1

1.54

1.54

1.6

-

Total

Rate of stock turnStocks:
Per cent
over in first half
increase or
of year
decrease
(—) at end
of June,
1927, com1927
1926
pared with
June, 1926

AUGUST,

1926. Declines in sales were reported in all
lines except boots and shoes, the largest being
in sales of dry goods, women's clothing, and
hardware. In the first quarter of the year,
sales of wholesale firms were considerably
smaller than in the first quarter of 1926, but
in the second quarter the decline in the volume
of sales from last year w^as less than in the first
three months. A factor in reducing the dollar
volume of wholesale trade as compared with
1926, has been the decline in wholesale commodity prices. The following table shows the
percentage changes in the value of wholesale
trade in each of the 10 lines in each of the
first two quarters of 1927, and in the first half
of the year as a whole, compared with the
corresponding periods of last year.
PEKCENTAGE OF CHANGE IN VALUE OF
TRADE IN 1927 COMPARED WITH

Line

GrTOCGriPS

Minneapolis:
Total.

-3.0

-12.0

Kansas City:
Kansas City
Denver
Lincoln
Oklahoma City
Tulsa
Wichita__
Other cities

-4.2
0.6
-4.7
11.7
12.9
9.8
-1.8

-5.3
-4.9
-1.3
2.9
11.6
2.7
-7.3

___
„_

Total
Dallas:
Dallas
Fort Worth..
Houston.
Other cities

_._

_____

Total
San Francisco:
San Francisco
Los Angeles
Oakland
Salt Lake City
Seattle
Spokane

_

Total...-___„_„___ j
United States..

_.

1.1

Meats

1.98

2.11

Total

-14.4
-8.4
-1.5
-4.7

1.20
1.16
1.27
1.30

1.44
1.30
1.29
1.34

-2.0

-8.9

1.23

1.31

0.4
6.4
0.2
-2.8
4.4
-1.6

4.9
5.8
-4.3
-10.1
3.6
-6.0

1.33
1.66
1.14
.99
1.51
.89

1.29
1.67
1.22
1.07
1.54
.92

2.3

1.39

1.41

-1.4

1.67

1.69

0.3

Wholesale sales.—Total sales of approximately 1,250 wholesale firms in 10 lines of trade—
groceries, meats, dry goods, men's clothing,
women's clothing, boots and shoes, hardware,
drugs, furniture, and agricultural machinery—
averaged 5 per cent smaller in the first half
of the vear than in the corresponding period of




Dry goods
IVEen's clothinsr
Women's clothing
Boots and shoes
Hardware
Agricultural machinery
Drugs
Furniture

First

quarter

WHOLESALE
1926

Second
quarter

First 6
montRS
of year

-4.4
-3.3
—10.0
-2.6
-10.2
0.0
-8.3
-4.1
-2.2
-3.9

-8.0
-6.5
-1.6
-9.7
+2.1
-6.6
-1.6
-0.3
-1.8

-5.7
-8.4
-2.2
-10.0
+1.0
-7.4
-2.8
-1.3
-2.£>

-8.0

-4.2

-5.1

1 0

*>•

7

-2.4

-6.5
4.9
-2.4
-0.9

3.1

1927

Wholesale trade by Federal reserve districts.—Sales of groceries were smaller than in
the first half of 1926 in eight Federal reserve
districts, larger in three districts, and in about
the same volume as last year in one district.
Increases were reported by firms in three middle
western Federal reserve districts—Chicago,
Minneapolis, and Kansas City. In the four
districts, Richmond, Atlanta, St. Louis, and
Dallas, which include the Southern States where
agricultural conditions were less satisfactory in
1926 than in other recent years, sales of groceries in the first half of 1926 showed declines
ranging from 5 per cent in the Dallas district
to slightly more than 14 per cent in the Atlanta
and St. Louis districts. Dry-goods sales were
smaller than in the first half of 1926 in all sections of the country, the largest declines occurring in the Philadelphia, Cleveland, Chicago,

AUGUST

,1927

FEDERAL RESERVE' BULLETIN

St. Louis, and Kansas City districts. Prices of
textiles and textile products which declined
almost constantly in 1926 continued lower in
the first half of 1927? and a large part of the
reduction in the value of wholesale dry-goods
sales may be attributed to this decline in
prices. Sales of shoes by manufacturers and
wholesalers averaged 1 per cent larger than
in the first half of 1926 and reflected a continuation of the improved conditions that
have been noted in recent months in the
leather and related industries. Larger sales
than in the first half of last year were reported
in the Boston, New York, St. Louis, and
San Francisco Federal reserve districts. Hardware sales averaged 7 per cent less than
last year for the country as a whole and were




561

smaller in practically all sections except in the
Richmond Federal reserve district. Sales of
drugs declined in six of the districts from which
reports were received and increased in three
districts, averaging for the country as a whole
1 per cent less than in the first half of 1926.
Wholesale stocks.—At the end of June the
value of inventories of most reporting lines
except shoes was smaller than in the summer of
1926. Value of stocks of dry goods and groceries was smaller each month during the first
half of 1*927 than in the first half of 1926, and
those of hardware were smaller in each month
except February. Stocks of shoes averaged
larger than in the first half of 1926, and at the
end of June they were nearly 4 per cent larger
than in June of last year.

562

FEDERAL RESERVE BULLETIN

AUGUST,

1927

REVISED INDEXES OF BUILDING CONTRACTS, FREIGHT-CAR LOADINGS, AND
AUTOMOBILE PRODUCTION
New adjusted index numbers of building conThe automobile figures used in the new index
tracts awarded, of freight-car loadings, and of have recently been compiled from 1913 to
automobile production, computed by the board's date by the Bureau of the Census. Figures
division of research and statistics, are published from 1913 to June, 1921, were not previously
herewith. Changes in these index numbers available, and those formerly published for the
consist of a few revisions in data used, change months from July, 1921, to date were slightly
in the base from 1919 to the average for the revised in the new compilation. The revised
three years 1923, 1924, 1925, and adjustments figures have been incorporated in the board's
for typical seasonal movements by means of index of industrial production, replacing those
newly derived adjustment factors.
formerly included in that index, which, prior to
Data used.—The index of the value of July, 1921, were estimates based on figures of
building contracts awarded was compiled for annual production and monthly shipments.
the period from 1910 to date from monthly The monthly index numbers represent average
figures reported by the F. W. Dodge Corpora- output per working day adjusted for typical
tion. From January, 1910, to April, 1921, they seasonal variations. In arriving at the numincluded figures for 25 States, east and north ber of working days for each month, on which
of and including North and South Dakota, is based the computation of daily average outIowa, Missouri, Tennessee, and Virginia, to- put, allowances are made for. complete Sunday
gether with the District of Columbia and por- closing, for one-half day on Saturdays, and for
tions of Kansas and Nebraska. Beginning the holidays listed above for freight-car loadings.
with May, 1921, figures for North and South
Adjustments for seasonal variations.—The
Carolina were added, and in January, 1923, monthly seasonal adjustment factors, by which
reporting systems were inaugurated in Florida, the figures are adjusted for seasonal moveGeorgia, Alabama, Mississippi, Louisiana, Ar- ments, have been derived by the method used
kansas, and Oklahoma. In May, 1925, figures in the board's index of industrial production,
were added for Texas. These different sets of the "ratio-to-moving-average" method; this
data were chained together into a single com- was explained briefly in the March, 1927, BULparable series by computing index numbers LETIN, page 172. The derived adjustment
for the various sets with different bases, rep- factors used in each of the indexes here preresenting in each case the average value of sented are given in. the accompanying tables.
contracts awarded during the three years
In the eases of building-contract awards and of
1923-1925. The base for the latest series of automobile production, the character of seasonal
37 States was partially estimated.
movement typical of the data has changed
Figures on freight-car loadings, representing somewhat in the period covered by the figures,
the number of cars of revenue freight loaded, are i. e., the relative importance of the different
reported weekly by the car service division of the months to each other has shifted. In order to
American Kailway Association. The data used allow for these shifts it is necessary to change
in this index are daily averages of monthly fig- the seasonal adjustment factors slightly from
ures, which in turn were derived by adding totals year to year. All of these factors for the entire
for weeks falling completely within the month period covered by each of these indexes are
and prorating the figures for overlapping weeks given in the accompanying tables. They show
on the basis of number of working days falling in the case of automobiles, for example, that
in each of the two months. In computing daily the relative importance of March and April deaverages, allowances were made for Sundays and. clined steadily from 1913 until about 1921, and
the following holidays: New Year's Day, Wash- afterwards increased slightly, while the adjustington's Birthday (one-half day),Memorial Day, ment factors for June and July increased during
Independence Day, Labor Day, Thanksgiving, the early period and subsequently decreased.
and Christmas. Indexes are published for total The figures do not indicate that the range of
loadings and for five commodity groups—(1) the seasonal movements in the automobile industry
total of miscellaneous products and, merchan- has narrowed to any appreciable extent.
dise in less than car lots, (2) grain and grain
The seasonal adjustment factors computed for
products, (3) livestock, (4) coal, and (5) forest building-contract awards indicate that during
products. Indexes for coke and ore, relatively the war and early postwar years, a period of
minor groups, and for miscellaneous products slackened building activity, the months of June,
and merchandise taken separately have been July, and August were relatively more important
compiled but are not published.
in respect to contracts awarded than they were




AUGUST,

in either the pre-war or the later post-war years.
Since the war period the practice of awarding
contracts in March and April has increased considerably. In general, it appears that the range
of variation between the months of largest and
smallest awards has been somewhat narrower
in recent years than at any other time in the
period covered by these figures.

25
16
19
20
19
19
18
19
22
18
23
17

15
18
20
19
22
19
22
23
22
34
20
25

25
30
18
22
22
22
20
21
21
18
19
22

20
17
17
21
18
19
20
21
15
15
16
15

18
20
23
20
20
21
28
24
25
25
30
30

26
23
29
27
35
32
30
34
41
41
42
41

38
40
41
42
43
44
41
43
38
41
33
35

00

OS

OS

OS

67
56
37
37
33
52
39
38
38
43
45
23

22
40
40
53
62
62
81
78
70
80
79
89

94
82
94
80
64
58
53
54
54
49
46
39

47
41
50
55
58
52
55
58
72
62
66
71

70
70
83
82
85
82
92
86
81
71
82
77

8511011101146123
97 1011041136 131
87 99107128131
79 96 112 120,128
89 95115 125 126
81 91125 125144
76 84123 124!
72 85 •135130L-.
76 90 135 1 3 0 . . .
88 100 129 126L-.
90 1031127 1 3 0 . . .
90 94 138 136

1927

OS

1926

OS

OS

L925

Os

L924

OS

L923

15
22
22
20
24
21
21
20
14
18
20
20

OS

L922

CO

CO
OS

L921

Jan
Feb
Mar
Apr
May
June
July—Aug
Sept
Oct
Nov
Dec
Annual
av

o
OS

L920

VALUE OF BUILDING CONTRACTS AWARDED
Index Numbers, Adjusted for Seasonal Variations
[Monthly average, 1923-1925=100]

Month

563

FEDERAL HESEEVE BULLETIN

1927

FREIGHT-CAR

Jan
Feb
Mar
Apr
May.—.
June
July.....
Aug
Sept
Oct
Nov
Dec
Annual
av

Month

99103 1 0 2 1 0 5 . . . 90
81
86 96 103 103 104 109 .
89 100 99 100 105 109
83 105 98 104 107 108
79105 97 105 108 107
87 103 92 101109 104
84 102 92! 101108
84 .101 951105 108
99 99J102 109
97 99)100 109
991104 108 ...
95
100 105 106 ...
95

! 00

OS

June
July
August
.
September
9 16
October
10 15
November
December
Annual average—j 13 15

84 91 79 87 100 97 103 107 — 87 84 78 88] 97 98 105 108

Grain and grain products

n*-k-

...
87
83l
82|
82!




Livestock

88 104 102' 97
96 109 100i
86 117 94.112
98 102 105
91101102 101
98
92 94 105 103
103
97 103 87101 96 100 100
88 105 103 89; 97 94 110 105
73 120J104 91 j 95 90118
721021 99 92109 97 101
96- 88
79!102| 93 93 124
96 86
78: 971100 96:131
98 82
1' 77108 99!ll2 100
105 90
'4 90110 98.102 109
104 83

8l!
81|
82
75

f\-t

1 r\-t

-»*"\n

-i

/"w

96 103 95 108

85

101

96101100 91
99 1041 97i 89
_ 1031103! 92J 93
94 1051100 951 93
__ 92 102104 90i 91
93 100 1011101! 901 94
"" 93 1051101 921 94
95 IO81IOO' 97 95
96 108 1011 93 103
97 103 100102 97
81 100 102 1031 91 90
83 96 1041109 96

100 91 87 95 103 102 95
Forest products

Coal

OS

39 48| 34
53 i 35
47j 29
63 j 52 76 100
52; 19 uu\ 58 4965 107
53! 16 641 54 47 73 108
551 15 G9 47! 41 83 112
48j 26 66 45l 33 95 123
i 42| 49! 30 50J 58j 41 66 102

OS

OS

OS I CS

931103 90 851102104105 96114
1O7;1O6J1O8' 9' 99121
811102
82|1O9 75 116; 109 96: 87 105 122
98J108 91 52'l20 84! 97 112 107!
108 108 101] 51|117 87102 107 103
107(118 97 5811486! 96 109 96
110119! 92 50113 85 102108
57:112 90114
106 j 120 86 0.'..Liz
yu at i111
n
1121112 "• 95!l00 lOli 9611.4
llOjlllI
9o| 96 95 93 113
641116|, 84|104j
, , 95 991001128
91|121| 73 105! 92 103! 99 124
82106 95 99111

71!111!llOJ 93
76113lO6'-__
87i 78128'_„
88.'100124!___
:
S6il33105j
85;135| 8SL__

ira j cc
bs os j 5s

i>- oo os> o H | N J .
5s" os cs Ss 8? al \l

80,1231 65 L —
90,107J109!

! I

78 101 99 lOli

80| 82 67

98...

Total

Grain j
and [
grain I liveprod- ! stock
ucts !

Coal

__

92
92
94
92
98
101
103
105
112
113
105
93

103 j
95 i

109
96

85 !
84 i
106 j
121 !
121 I
110 !
109 1
102 i

92
112
123
119
106

86 I
78 I

111
102
96
S3
89
93
90
98
105
114
109
104

Merchandise,
less

Forest
products

than
carloads,
and
miscellaneous

94
102
106
104
105
105

87
91
97
99
101
102
102
103
111
111
105
91

Ss Ss

53 81 80 79 78 78 7676; 77 79 80 80, 80 January
84 83
104 103
)3 10-:
102 101100 VO]
98|VI
97\ V±
9494i
100; 1021102. February
Vt' 96100|
UUJUUJ.UU
March. _^
118 119 117jll4llll!lO8 1071061103 105 108 109189;133 131128|125!l21J119rll8 ! 115lll6 115 118 119! 120;lls(ll8 April
l l 8 18
;
_
126 125 124123 122121jl20| 120! 118
I H 9 ! 1 9 l 2 0 119 May
106 106 107109jllljll2ll3|115
117J11S 115 108;106|105 103 June
!
n i n n l!
87 90|,; 95
99.102
10o
« c " '- ^5|l08111|107104l04|104;i03 103 July...
87 88| 89, 9l| 93; 95'
98 99100 101 August
•5 99 102103:
102103 ! 99,
99! 98
108 107106 106 105.1104! 104 103 103]101;102103 101J100 101 September.
91 93! 94 95 97 97! 97j 93 97J 97 97 October
90 92: 931 nn 89 89^
83 86:
89^ 871 89
89; 90
90 90 November
89 89
78 77i 75
81 SO;
74 77| 79J 76| 76j 70 78 December
.IU1 Wtt lUOilUi J.U1|.LW

...j

85i 68 7l|l01 101 105| 97 94
.03 95
82 72
97 106 105! 99! 91
64|
63) 77 102 101103100J 90
651 77 101 99162100! 93
96100 ! 91
82 103
96! t8 ...
651 80 103
99 981
60 79 106
98 IOO!
66 80103
98,100!
73 821031
1031
95 94J.._
1011 90...

Seasonal Adjustment Factors

Seasonal Adjustment Factors

January--February..
March'.....
April
May.
June
July
August
September.
October. __
November.
December.

82 96 98 103 107 108
94 100 105 107 109
9S 105 107 110
91! " 98 105 106 110
86! 99 9C 104 109 108
97 92 103 1O9|1O8
96 94 104 108
96 97 106 109
87| 96 98 107 109
87 97
" 101 105 110
91 98 10C 106 106
96 10C 109 106

CT

•

c*

load lots a n d miscellaneous

Month

Jan
Feb
Mar
Apr
Seasonal Adjustment Factors
May
CO
I"- : 00 OS
O
f-l <N CO
H IN M ] .,
- _
June
os os I os a os
Month 5 5 5
July
Aug
Sept
1 72 75
78 77 76 75 74 73 72 72
Jan
Oct
... 73] 731 75 ..
70 70 71! 7 1 72j 72 72 73
Feb...
Nov
112 110J108 105 102 " 97
98 103J108J110 11:
MSET—_
Apr... 124 122 120 118 116 1131110 106 105 107 114 120 12511271:126 123 116 115 Dec
19.-1:19:?.
10811311K
11519.1121
124123114 108 107 107
May.. 136134 132 127122 11 ' 114 110 1ftR!iT3
109
107J~\jl
10' Annual
June_. 124 124 1241123123 130:132 139 144J138 134 127
±41 121J116J11J
L£i-\±.1V'11.J
1 W JLUI
av.
July-__ 103 104 105 107 109 111 113 115 116J118
llVi.
112 110jl05il04
1041102 102
100 103 108 111 113 114 1141114 112 110 L08
V. 1041105 110)113 113
Aug._. 94
Sept__
94 95 9596| 96 97 97
97 96 97 102 105 105
Oct... 100 101 103I-104 105 107)111 114 116lll5 109
.03|103!103 100 100 100 Month
01
07 87 8:
Nov.-- m n^ cm
86| 89j 92 911 91
87
Jan
Dec.__
811 84J 88 931 96
83| 82 78 74( 76
'8 80
Feb
Mar
AUTOMOBILE PRODUCTION
Apr
Index Numbers, Adjusted for Seasonal Variations
May
[Monthly average, 1923-1925=100]
June....
July
N I M • •* O
CO ! 1-Aug
<N
iM C<1 <N CN <N
Month
Sept....
Oct
Nov
12 42 46! 35 36 75
94 120! 89116: 95
January
96117! 93117! 99 Dec
February
— ^ 16 391 431 36 40
97107101113104
March..
12 lol 23! 41 44! 38
Annual
April
14 16 24J 39 451 39 42j 46| 41 62 100 93J107111:104
av
79110112105
May
14 15 23| 38 46, 36 451 57 42

Month

Merchandise in less-than-car-

Total

20 19 21 22 18 23 34 40 42 64 63 57 81 84 95 122 129!...
1 i

QQ

LOADINGS

Index Numbers, Adjusted for Seasonal Variations
[Monthly average, 1923-1925=100]

97
99
101
99
100

564

FEDERAL RESEKVE BULLETIN

AUGUST, 1927

NATIONAL SUMMARY OF BUSINESS CONDITIONS
The output of industry declined substantially in June to a level close to that of a year
ago, reflecting reduced activity both in mines
and in factories. The value of building contracts awarded was the largest for any month
on record. The general level of prices remained practically unchanged.
Production.—Production of iron and steel
and automobiles declined considerably in June
and curtailment in these industries continued
during the early part of July. There were

On the basis of conditions on July 1 forecasts
of the Department of Agriculture indicate
increases as compared with the 1926 harvested
production in the output of wheat, oats, barley,
rye, hay, and potatoes, and decreases in corn,
tobacco, and the principal fruit crops. Cotton, for which no production estimate was
given, shows a decrease of 12 per cent in acreage
planted, while the total area planted to all
crops shows a reduction of 2 per cent. A
reduction of 371,000,000 bushels in the estimated production of corn, compared with
1926, indicates the smallest crop since 1901.
Trade.—Wholesale trade in most leading
lines increased slightly between May and
June, while retail trade showed less than
customary seasonal decline. Sales of department stores were in about the same volume as a
PERCENT
200

200

150

PRODUCTION OF
MANUFACTURES AND MINERALS

1923

192**

1925

1926

Ar
fKK ]V\
A

1927

Index of production of manufactures and minerals. (1923-1925 average=
100.) Latest figures, June

also decreases in June in silk deliveries, sugar
refining, and production of lumber, copper,
and anthracite coal. Cotton and woolen mills
continued active for this season of the year, and
consumption of raw cotton was larger than in
any previous June on record. Meat packing,
shoe production, and the manufacture of
building materials showed increases. Production of manufactures, as a group, was slightly
larger in June than in the same month of 1926,
but output of minerals, owing largely to decreased production of coal, was in smaller
volume than a year ago. The value of building
contracts awarded in June was larger than in
any previous month on record, owing chiefly
to the steady increase within recent months of
contracts for public works and public utilities.
Awards were particularly large, as compared
with previous months of this year and with
June of last year, in the New York and Chicago
Federal reserve districts. Contracts were
awarded during the first half of July in practically the same volume as in the corresponding period of last year.




A/A/

V

100

50

50
BUILDING CONTRACTS AWARDED

0

ass?®* Wrtfi Seosona/Ad/i/st/ne/)t
Without /ld/ust/7/entI
19241923
1925

1927
1926
Federal Reserve Board's indexes of value of building contracts awarded
as reported by the F . W. Dodge Corporation. (1923-1925 average=
100.) Latest figures are for June

year ago, while those of mail-order houses and
chain stores were larger. Sales of meat, dry
goods, and hardware at wholesale were smaller
than in June of last year, while sales of groceries, shoes, and drugs were about the same in
volume. Inventories of department stores
declined further to a level about 3 per cent
below that of June, 1926. Stocks carried by
wholesale firms showed no change for the
month and were smaller than a year ago.
Daily average freight-car loadings failed to
show the customary seasonal increase between
May and June and were in smaller volume from
early in May to the middle of July than during
the corresponding period of last year. Shipments of almost all groups of commodities have

AUGUST,

565

FEDEKAL KESEKVE BULLETIN

1927

been smaller than-a year ago. The largest declines occurred in the shipments of coal and coke.
Prices.—The general level of wholesale commodity prices^ according to the Bureau of
Labor Statistics index, continued practically
the same in June as in the two preceding
months. The prices of agricultural commodities as a group declined slightly while the
average for the nonagricultural group remained practically unchanged. There were
declines between May and June in the prices
of silk, iron and steel, nonferrous metals,

lower than a month before.
The decline was
principally in the banks7 investment holdings
and in loans secured by stocks and bonds.
Loans for commercial, agricultural, and inBILLIONS OF DOLLARS
10

BILLIONS OF DOLLARS
10

PERCENT
[200

PER CENT

200

150

1923

100

100

1924-

1925

1926

1927

Monthly averages of weekly figures for banks in 101 leading cities.
Latest averages are for first four weekly report dates in July
50

50

WHOLESALE PRICES

I

I

1926
1927
1924
1925
1923
Index of United States Bureau of Labor Statistics. (1913=100, base
adopted by bureau.) Latest figures, June

building materials, and rubber, and advances
in grains, cotton, hides and skins, and anthracite coal. During the first three weeks of July
prices of wheat, bituminous coal, iron and
steel, and rubber declined while those of livestock, cotton, wool, copper, and hides advanced.
Bank credit.—The demand for member
bank credit decreased from the latter part of
June to the middle of July and on July 20 the
loans and investments of member banks in
leading cities were more than $200,000,000

dustrial purposes decreased by about $45?000,000.
Demand for reserve bank credit in connection with settlements at the end of the fiscal
year and increased currency requirements over
the holiday period carried total discounts for
member banks on July 6 to the highest level
since the first of the year. Thereafter, largely
in consequence of the return flow of currency
from circulation, there was a decreased demand for member bank accommodation and
on July 20 total discounts were is somewhat
smaller volume than four weeks earlier. Holdings of United States securities showed a
slight increase during July.
Conditions in the money market, after
seasonal firmness at the end of June were
easier in July.

FEDERAL RESERVE BOARD INDEXES OF PRODUCTION, EMPLOYMENT, AND TRADE

Year and
month

Building contracts
Indus- Production of Producawarded 1
trial
tion of
manuproducminerfacals^
tion^
UnadAdtures i
justed justed

Railroad
car
loadings i

Factory Factory Wholeemploypay
sale
ment
trade
rolls

Monthly average 1919=100

Monthly average 1923-1925=100
May
.
June
July-—
August
1927
January
February
March
April
May.
June...

Bank
Department-store Department-store debits
sales i
stocks i
outside
of New
UnadAdUnadYork
Adjusted justed
justed justed
City i

107
107
107
111

107
107
107
112

103
104
105
109

134
133
126
146

125
125
124
129

108
109
108
108

109
109
104
108

82
84
82
88

137
130
99
105

132
130
133
134

138
131
125
130

138
138
133
130

124
127
136
126

106
109
112
109
111
108

105
107
110
109
112
108

117
120
122
106
108
103

94
96
151
147
135
154

123
131
131
128
126
144

105
109
109
108
107
104

102
109
110
108
108
106

75
73
83
78
79
81

114
107
129
143
131
130

130
139
129
140
127
130

124
131
142
143
138
129

139
139
140
139
138
136

125
133
134
137
133
134

i The indexes of production, car loadings, and bank debits are adjusted to allow for seasonal variation; the indexes of building contracts and
pepartment-store sales and stocks are shown both with and without seasonal adjustments.




566

FEDERAL RESERVE BULLETIN

AUGUST, 1927

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS
RESERVE BANK CREDIT
BILLIONS OF DOLLARS

RESERVE BANK CREDIT IN USE
[Monthly averages of daily figures. In thousands of dollars]

BILLIONS OF DOLLARS

2

19241926
1923
1927
1925
Monthly averages of daily figures for 12 Federal reserve tonks. Latest
figures are averages for July

Bills discounted
for
member
banks

Reserve
bank
credit 1in
use

Month

1,231,337
1,176,328
1,176,439
1,158, 891
1,155,191
1,139, 808
1,166, 564
1,158, 264
1, 225, 236
1, 269, 356
1, 270, 057
1, 380, 571
1,146, 523
1,007,624
1,029,319
1,038, 857
999, 504
1.033,123
1,026,152

1926—January _._
February __
March
April
May
June
July
_
August
September
October.. __
November.
December.
1927—January—.
February..
March
April
May
June
July

526,042
525,049
558, 795
539, 594
514, 559
476,044
548, 966
555, 799
641, 797
665, 566
618, 367
671, 722
486, 875
393, 636
427, 716
447,286
472, 984
428,563
453,997

Bills
bought

United
States
securities

327,179
305, 631
269,634
235, 956
230, 555
244.038
231,132 .
245,094 j
263,992
294, 296
346, 859
384, 826
345, 448
305,013
254, 618
248,429
233, 224
205,273
189, 774

335,367
336,198
369, 779
398, 249
408, 776
379, 745
353, 903
315, 747
306, 413
302, 309
321,446
310, 637
306, 707
344, 921
341, 081
291, 495
397,754
381, 081

i Total holdings of bills and securities by all Federal reserve banks,
including "other securities" and foreign loans on gold.

DISCOUNTS AND DEPOSITS OF FEDERAL RESERVE BANKS
[Monthly averages of daily figures. In thousands of dollars]
Federal Reserve Bank
Total

Month

Boston
Discounts:
1926—January __„„
February _.„
March.
April
May
June____
July.
August
September.
October
NovemberDecember-.
1927—January
February...
March
April
May
June
___.
July .
Deposits:
1926—January
!
February
March
April..
May..
June
_..
July
August...
September
_
October
.„__
November

December
1927—January __
February
March
April
May__
J
July




:

New
York

Philadelphia

Cleveland

Richmond

Atlanta

Chicago

St.
Louis

Minneapolis

Kansas:
City Dallas
15,511 |
17,063
17,499
19, 044
20,149
18, 472
16,164
12,693
13,542 I
12,455 •"

526,042
525,049
558,795
539,594
514, 559
476,044
548, 966
555, 799
641,797
665, 566
618, 367
671,722
486, 875
393,636
427,716
447,286
472, 984
428, 563
453, 997

31, 895
38,775
35,151
28, 450
27,068
24, 816
34,529
36,653
45,498
42,180
38,031
56,726
34,476
28,669
35, 538
23,201
37,129
33, 843
29, 689

163,247
180,152
140. 813
129, 202
136, 767
117,785
165,983
163, 270
182,447
164,579
134,908
154,570
120,787
90,232
114,391
121,628
137, 765
91,932
122, 892

48,172
56,248
59,901
53, 295
49, 722
49,243
48,135
45,851
46,224
49,918
43, 826
60, 785
44,184
36,158
41, 819
43,744
45.841
45, 227
46, 791

59, 208
42,669
56, 611
56, 207
52,071
43,977
37,221
33,666
44,966
70, 386
75, 602
90,051
62,107
39,424
SI, 888
53,890
43, 624
41.801
35, 393

38,035
38, 287
43,558
45, 066
46, 637
47, 366
41,775
44,918
46,359
45,664
35,516
29,620
22,498
23.409
22,221
22,506
25.450
22,374
21, 839

26, 953
26, 617
40,006
44.354
35,183
38,384
42,011
47, 585
55,345
55,681
50,455
47, 553
34, 435
26, 738
31,389
34,140
34.625
32. 618
36, 273

80,112
66,948
75, 507
75,266
56, 311
52, 547
60,854
54,591
67,736
89,224
105,702
119,165
90,847
78,297
70,691
56, 281
52, 679
63, 917
59, 685

19, 680
20,773
26,126
28, 236
26, 662
28,536
30,642
35,196
43,462
42,163
37,548
37,844
19, 072
14,531
14, 374
16.202
24, 024
26. 251
29, 818

4,676
6,369
6,699
6,386
6,920
5, 254
7, 556
13,076
11,212
11,145
8,613
6,101
4,146
4,324
4,609
6,058
P., 737
6.514
5, 952

2,289,298
2.274,728
2,276,724
2,251, 846
2,. 253, 294
2,241,415
2,262,420 |j
2,253,350
2,273,205
2,280,180
2,279,135
2, 289, 632
2,300,204 |
2,266,460 !
2,284,809 !
2,301,120 i
2,326,816 !
2,355,428 |
2,339,478

148,192
148,884
148,287
148,224
146,111
145,362
148,013
145,625
147,447
153, 231
155,409
150, 252
148, 810
149,134
146,177
148,394
148.045
149,846
152, 538

872, 556
855, 864
862, 833
851,678
856.697
865, 577
857,668
847, 061
862.912
853;359
856,416
879, 596
885, 641
856,053
878, 285
882, 386
908,188
941, 867
918, 918

137,443
134, 093
134,749
137,832
137, 307
135,361
137,621
136, 502
137r152
139,637
139, 260
139,419
141,195
139,360
138, 894
140, 451
138,961
137,874
137, 993

177, 700
181,330
181,208

70,956
72,227
70, 073
69, 314
69,311
66,556
71,418
70. 054
70, 061
72, 240
72,626
71,010
73,3S5
72,276
70, 484
71,211
72,586
71,679
74; 262

83,104
85, 237
84.476
80, 744
76.133
72.477
73,453
71, 873
72, 718
74, 640
72,938
71, 802
72, 723
72, 531
71.134
72.766
71,126
68,810
68, 471

327,433
328, 522
330,484
325,392
332, 762
329,191
335,306
340,386
338, 071
336, 643
332,040

86, 804
85, 658
84,561
83,538
83,394
81, 270
82,917
82,092
80,937
83, 745
82,771

329, 801
331, 215
329,680
328,167
332,363
338.974
338,545
337, 875

82, 823
83, 325
83,754
82, 780
83,827
83,193
82.434
82, 622

55, 560
54, 274
57, 580
54. 663
52,934
51,698
51, 538
49, 787
50,099
51, 574
53, 070
52, 550
52, 278
50,759
51, 484
50,371
49,156
49, 678
50,607

181, 553
181,333
185,981
188, 314
188, 048
185,945
184,749
181, 215
182, 290
183,035
188,427
188,122
188,376
190, 247
189, 620

16, 866
13,663
10,256
9,437
8,584
11. 902
17, 333
16, 524
12, 460
91, 912
| 91,859
i 89,574
88,278
88.775
88,155
92, 651
94, 619
93, 706
92, 848
91,393
91,127
90, 880
91,425
90,789
90,832
89, 378
88,342
90,916

San
Francisco

7,463 31, 090
5,841
25, 307
50, 283
6,641
7,400 46,688
9, 832 47, 237
11,921 37, 743
16,138 47,958
20,139 48.161
25,000 60,006
62.720
19,451
17,223 54,077
10,320 i 47.324
5,606 ' 38,461
39,202
3,215
49,015
3,197
4,403 53, 331
4, 670 43,107
41, 390
6,172
7,374 45, 831
64, 389
64, 244
63,315
61,580
59,399
57, 087
57,478
57, 595
58,913
60, 984
61,148
62,902
62,156
63,763
63.170
62', 587
61, 645
59,765
60, 209

173,249
172,536
169, 584
169,922
168,915
167,348
168,376
169,442
173,141
175,334
177,315
177,13,p
176,356
174,690
175,01S
177,810
177.188
176,341
175, 417

567

FEDERAL RESERVE BULLETIN

AUGUST, 1927

GOLD IMPORTS AND EXPORTS AND MONEY IN CIRCULATION
MILLIONS OF DOLLARS

too

MILLIONS OF DOLLARS

100

•

GOLD IMPORTS AND EXPORTS

MONEY IN CIRCULATI0N

-H-

80

60

80

w
m T7ti~ 1
4
1ill m 1
1

40

n

5000

:!

2a

0
510

20

ili

-LF4

{

40

60

J

20

s

u

an
1922

1923

1924

4500

—

Bars above base line represent Irn jorts
-Bars below base line represent Ex nnrf-e
Black port/ens represent exce&s Itnpc
rfs or Exports

1921

MILLIONS OF DOLLARS
5500

MILLIONS OF DOLLARS

5500

80
1925

1926

1927

GOLD STOCK1

5000

}

4500

4000
1927
1326
1925
1923
1924Based on averages. Latest .figure, July, $4,745,000,0C0, average of
figures for July 1 and August 1
4000

[First of month figures. In millions of dollars]
| 1922

Month
January...
February. _
March
April
May
June
July
August
September
October.....
N o vein b er
December

3,657
| 3,681
! 3,721
3,75]
•_.. 3, 767
3. 774
_. 3. 786
3, 825
3. 859
3, 874
3. 902
3. 909

1923 I 1924 ! 1925 1920
W jI
3. 933
3,938
3,961
3,909

4,247
4,289
4. 338
4, 368
4,417
4,4fiO
4, 491
•1, 517
4. 531
4. 548
4, 554
4, 570

3, 982
4,023
4,049
4.079
4, 109
4,13ft
4, UP
4,210

4, 547
4,482
4, 424
4,405
4, 394
4,396
4. 3W
4, 391
4.400
4. 399
4,442
4, 426

MONEY IN CIRCULATION

1927

[First of month figures. In millions of dollars]

4, 502
4,537
4, 586
4,599
Month
4. fiO9
4, 608
4, 588 J a n u a r y .
4. 586 February

4,409
4,415
4, 445
4, 495
4.497
4,494
*. 500
4.519
4,531
4. 499
4, 49]
4, 495

March
April
May
June

1

Gold coin and bullion held by United States Treasury and Federal
reserve banks (including gold held abroad) and gold coin in circulation.
GOLD IMPORTS AND EXPORTS, BY COUNTRIES

1922
_.

......

July.
Aue-UFt
Septem ber
October
November.
December

.
^__.

I 1923

4, 605 i 4, 733
4,353 I 4,509
4,402
4,6.11
4. 656
4,413
4. 385 4, 6?fi
4, 706
j 4.370
4. 374 4,729
4. 337 4. 696
4, 394 4, 778
4. 521 4,8f-0
4. 570 4, 835
4,617 4,923

1924

1925

1926

4,951
4,682(
4^813
4, 760
4, 815
4, 755
4, 665
4, 774
4,806
4.880
4,994

4,993
4,752
4,804
4,776

5, 008
4,740
4,814
4, 806
4, 854
4, 871
4, 835
4. 858
4, 864
4.906
4,933
4,949

4'. 774
4, 736
4. 720
4,784
4,827
4.901
4,972

I 1927

5,001
4, 713
4, 779
4, 758
4,784
4,786
4, 745
4,744

fTn thousands of dollars!
1926

1927

Country of origin
or destination

June

January-June

linr,o.t« Exports Imports. Exports Imports

England
France •
Germany _._
Netherlands
Canada
Central America.
Mexico
Chile
Colombia
Ecuador . . .
Peru
Venezuela
Australia
'.
British India
British1 Malaya
China
Dutch East Indies..
Japan
Philippine Islands..
All other countries..
Total
1

11
67
7 419
707
73
COS

51
95
230
227
3
4,866

133
136
51
14, 611

Including Hong Kong.




47
250
635

130

540
180
12

39. 383
21 001
1
8,156
46, 519
639
3,262
3, 732
• 665
574
1 403
146
12,173
1,673
849
20, 000
824
372

1, 840 161, 372

6
13, 924
4,309
253
3,468
1,001
230
78
1, 527
3,095
493
1,487

KINDS OF MONEY IN CIRCULATION'

Calendar year

1,212
351
1
82, 543
1,516
23, 913
21,180
1,663
1, 307
2 644
647
51, 119
5
6, 540
1,707
14, 000
1,990
1,168

29. 871 213, 504

[In million" of dnllars]

Exports
18
47, 550
42, 392
3. 855
(\ 202
2, 019
6
1, 700
573
3,342
4,495
2,221
60

First of month figures

A verages J

Kind of money

Gold coin and bullion
Gold certificates..
Standard silver dollars
Silver certificates
Treasury notes of 1890
Subsidiary silver
United States notes
Federal reserve notes
Federal reserve bank notes..
National bank notes.
Total

August

June

July

387
1, 004
49
379
275
293
1, 734
5
659

386
1,0107
49
376
1
276
292
1,703
5
650

390
1,031
49
378
1
275
297
1. 668
5
652

387
1,006
49
377
1
275
292
1,718
5
655

4,786

4,745

4,744

4,765

•1

June

July
388
1,019
49
377
275
294
1,685
651
4,745

1,270
115, 708

1
Averages of figures for first of given month and first of following
month.

568

FEDERAL RESEEVE BULLETIN

AUGUST, 1927

MONEY RATES IN NEW YORK CITY
PER

PER
CENT

CEHT

5

-

- s

r

4
\

Commercial PaperRafe
^

lL /

;

\f

~

F. R. Ban k Disc Rate

k

1

¥~

f

3

- 3
- Open Marker
Acceptance Rate
**

1

Ft e"&

-

-

0

1922

1923

192^-

1926

1925

1927

FEDERAL RESERVE BANK RATES

OPEN-MARKET RATES

DISCOUNT KATES

RATES IN NEW YORK CITY

[Rates on all classes and maturities of eligible paper]

Federal reserve bank

Rate in
efiect on
Aug. 5

Date established

Prevailing rate
on—

Aug. 5, 1927__
Aug. 5, 1927__
Nov. 2.0,1925.
Nov. 17, 1925.
June 14,1924.
June 18,1924.
June 14,1924.
Aug. 4, 1927..
Oct. 15, 1924..
July 29, 1927.
July 16,1924..
Nov. 23, 1925.

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

BUYING RATES ON ACCEPTANCES

1-15 days—
16-30 days-.
31-45 days_.
46-60 d a y s . .
61-90 days.91-120 days.
121-180 days

Rate in
effect on
Aug. 5

Date established

Previous
rate

Aug. 5,1927do
do
do
do
do
33/8
3M July 29, 1927.

NOTE.—Rates on prime bankers' acceptances. Higher rates may be
charged for other classes of bills.




Prime
commercial
paper,
4-6
months

1926
June
July
August
September
October
November
December-

[Buying rates at the Federal Reserve Bank of New York]
Maturity

Average rate
on—

Previous
rate
Month or week

1927
January
February
March
April
May....
June
July
Week ending—
July 2
July 9
July 16... _.
July 23
July 30

4
4
4
4
4

-4V2
-4M
-4H
-&
-4X

f
ti
44M
^

4M

1

Prime
bankers'
Call
Time
accept- loans 1 loans a
ances,
90 days

4.15
4.27
4.52
5.02
4.75
4.56
5.16

4.20
4.39
4.76
4.88
4.99
4.70
4.70

4.32
4.03
4.13
4.18
4.26
4.33
4.05

4.52
4.42
4.39
4.45
4.40
4.49
4.45

4.80
4.25
4.00
3.95
3.85

4.59
4.52
4.51
4.42
4.35

Average yield
on—
U.S.
Treasury
per
notes
cent
and
Libcertifierty
cates,
bonds
3-6
months
»2.90
3.11
3.27
3 3.47
3.58
3.35

3.90
3.93
3.95
3.96
3.95
3.91
3.83

3.23
3.29
3.21
3.39
3.33

3 3.09
2.96

3.80
3.80
3.80
3.87
3.86
3.84
3.82

3.16
3.13
3.06
2.93
2.84

3.86
3.84
3.84
3.82
3.80

8

* Stock exchange call loans; renewal rate.
* Stock exchange time loans; weekly average of daily average rates on
principal maturities.
3 Change of issues on which yield is computed.

569

FEDEKAL BESERVE BULLETIN

AUGUST, 1927

PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES
The rates shown are those at which the bulk of the loans of each class were made by representative banks
during the week ending with the 15th of the month. Rates reported by about 200 banks with loans exceeding
$7,500,000,000.
FEDERAL RESERVE BANK CITIES
Month

Boston

New
York

Philadelphia

Cleveland

Richmond

Atlanta

Chicago St. Louis

Minneapolis

Kansas
City

Dallas

San Francisco

Prime commercial loans
1926—July.August
.
September...
October
November...
December...
1927—January
February.-..
March
April
May
_.
June
July

5
5 -6
5J4-6
5^-6

4M-5
5

5y2-Q

5 -6
5 -6
53^-6
6
6
6
6

5^-6
5 -6
5^-6
5 -6
5 -8
434-6
5 -6

5 -6
5 -6
5 -8
5 -6
5 -6
5 -6
5 -6
5 -6
4^-6
5 -6
5 -6
5 -6
5 -6

5
5
5
5
5

434-5
434-5
4^-5
434r5
4^-5
434-5

-5
-5 ;:
-5
-5
5 -6
-5H j 5 -6

5 -5y2

5 %
4^-6

5
5
5
5

-5y2
-6
-6
-6

5
6
6
5

5
5
5
5

-6
-6
-6
-6

434-6
4^-6

34-4M
J4-5

5 -53/3

4^-5

Loans secured by prime stock exchange collateral
1927—January
February...:
March
__
April
May
June
:--.
July

4M-5
4^
4%

434-5
4H-5
43^-5
434-5
4^-5
4H-5

434-5
43^-5
4^-5
4^-5
434-5
43^-5
4H-5

534-6
5 -6
5M-6
5 -6

6
6
6
6
6
6
6

6
6

434-6

5
5
5
5
5
5
5

-6
-6
-6
-6
-6
-6
-6

434-5

5
5
5
5
5
5
5

414-5
4^-5
4^-5
434-5
434-5

—5'y2
-5Y2
—5y2
-53^2
-51^
-51^
-5y2

5 -6
434-6
4M-6
4^-6
434-6
4M-6

5
5
5
5
5
5
5

-6
-6
-6
-6
-6
-6
-6

-7
-7
-7
-7
6

5 -7
5 -7

-6
-6

5 -6

Loans secured bj warehouse receipts
1927—January.

February.
March.
April
May.
JuneJuly

1927—January..
February.
March-..
April
May
June -.
July......
FEDERAL RESERVE BRANCH CITIES
Loans secured by prime
stock exchange collateral

Prime commercial loans

Loans secured by warehouse
receipts

Interbank loans

City
May

June

July

Buffalo

5 -6

Pittsburgh
Baltimore
B inningb am
Jacksonville
Nashville
- -New Orleans
Detroit
Little Rock
Louisville
-Helena
Denver
Oklahoma City
Omaha
El Paso
Houston
San Antonio
Los Angeles.
Portland
Salt Lake City
Seattle
Spokane

5
5
5
5

5 -6
53^-6
5 -6
5 ~53^
5 -6
5 -6

5 -6
534-8
5 -6
5 -5M
5 -6
5 -6




-6
-5?4
-6
-8
6

6

5 -6
5 -6
6
8
5 -6

5^-6
5 -6
5 -6
5 -6
8
4 -8
5 -6

4

4

8
5 -6

8
5 -6

6
5 -7
6 -7

8
6
6
6
6 -7

May
5 -6
5^-6
5-6

5^-6
6
6 -8

6

6

5^6
5 -6
5 -6
5 -6
8
4 -6
5 -6
434-6
8

5^-6
5 -8
6 -7

5-6

4^-7
6
6
6
6
5 -6

June

July

5 -6

5H-Q

5 -6

5 -6
5 -5M
6
5 -8
6
534-6
5 -6
6 -7
5 -6
8
5 -6

2
6
6 -8

6

8
5 -8
8
* 534-8
8
5 -6

5 -6
6 -7
5 -6
8
5 -6
6
5^-6
8
5 -6

6 -7
6
6
6 -7
6

6 -7
6
6
6 -7
6

2

1

6

5 -6
6 -8
6 -7
6
6
6 -7
6

June

May
6

6

534-7
6
5H-6
6
6 -8

6
6 -8

5 -6
5 -6
5 -7
6
6 -8
6
6
7 -8
5 -7

5 -6
5 -6
5 -7
6
6 -8
6
6
7 -8
5 -7

7
6 -7
7
6 -7
7

7
,6 -7
7
6 -7
7

6

July
6
6 -7
6
5^-6
6
6 -8
5^-6
5 -6
5 -6
5 -7
6
6 -8
6
6
7 -8
5 -7
6 -8
7
6 -7
7
6 -7
7

May
5

5 -6
5 -6
5 4 -6 2
6
5^-6
5 -5Y2
5 -8
5 -6
5
6 -8
6 -63^
6

June

July

5
5 -6
5 -6
5M-6
5 -6
6
534-6

5
5
5
5

5 -6
5 -6
5
6 -8
6 -6H
6

6

6

5

5

6
6
6
6 -7
6

6
6
6
6
6

5
-6
-6
-53^
-6
6

5 2-8
5 -6
5 -6
5
6 -8
6 -63^
6
5^-6
8
5

6
6
6
6
6

570

FEDERAL RESERVE BULLETIN

AUGUST,

1927

MEMBER BANK CREDIT
MEMBER BANK RESERVE BALANCES AND BORROWINGS AT FEDERAL RESERVE BANKS
{Monthly averages of weekly figures. In thousands of dollars]
Borrowings at Federal reserve banks

Eeserve balances

N e w York
City

1926—May
June
Julv
August
September
October..
November
December
1927—January
February
March.
April
May
June
July

Reporting member banks

Reporting member banks

Month

_
„.

_

691,061
713, 944
699, 557
679,145
711,833
662, 329
672, 948
725. 298
717,310
682.026
709,853
687, 972
720. 255
775, 900
728,491

Other
leading
cities

Other
member
banks

Total

N e w York
City

564,293
566,473
572,903
571, 988
578, 811
583,111
580, 514
579, 291
587, 647
584,612
593,492
594, 900
593,528
592, 650
603, 200

1, 649,745
1,666,473.
1,650, 974
1,543,316
1, 677,127
1,631,735
1, 636,134
1,685,561
1,677,549
1,644,717
1,671,037
1, 659,080
1,696,601
1,749,218
1, 695,553

958, 684
952, 529
951,417
964,171
965,294
969,406
963,186
960, 263
960, 239
962, 691
961,184
971,108
976, 346
973.318
867, 062

Total

2,214,038
2,232, 946
2, 223,877
2,215,304
2, 255, 938
2,214, 846
2, 216, 648
2, 264, 852
2, 265,196
2, 229, 329
2, 264, 529
2,253, 980
2, 200,129
2, 341, 868
2, 298, 753

82,003
54,944
117,229
111,296
128.173
84,406
71,162
99, 611
75,894
59, 907
73.118
78,459
90,167
51. 485
59,383

Other
leading
cities
208,484
196,811
197, 725
224,147
299,449
355, 892
350, 687
347, 515
223,259
172, 986
195,001
191,883
213, 476
219, 307
213, 252

Total
290,487
251, 755
314,954
335,443
427, 622
440, 298
421,849
447,126
299,153
232,893
268,119
270,342
303, 643
270, 792
272, 635

Other
member
banks

206,363
220.373
221,125
215,007
209,261
196,211
191,127
200, 647
177.141
158, 791
150,734
151,086
155,476
163, 753
160, 970

Total

496,850
472,128
536,079
550,450
«36, 883
636, 509
612, 976
647, 773
476, 294
391, 684
418,853
421,428
459,119
434, 545
433,605

LOANS, ENVESTMENTS, AND DEPOSITS OF REPORTING MEMBER BANKS
[Monthly averages of weekly figures. In thousands of dollars]
Net demand, time, and Government deposits

Loans and investments
Loans

Month
Total

In New York City:
1926—June.
July
August
Septern ber
October
No vein ber
Decem ber
1927—January
February
March
April
May
June
July
In other leading cities:
1926—June
July
August
Septern ber
October
November
Decem h* r
1927—January.
February
March..April
May
June
July
Total:
1926—June
July
August.
September
October.
. November
December
1927—January
February
March
April
May
_
June
July




._

.

.

|
j
.___!
i._j

!

Total

'

O n

securi

-

All other

Investments

Total

Net
demand

6,271,298
6, 224. 442
6,199,917
6, 237, 607
6,179,229
6,174, 250
6, 308. 886
6,341.114
6,189,052
6,349, 701
.6,421,105
6, 534. 882
6, 692, 243
6, 601, 841

4, 436,270
4,409,338
4, 408,177
4, 484,084
4, 472.159
4,464.416
4, 575, 021
4, 593,379
4, 436, 661
4, 525, 865
4,570,02ft
4,628.567 I
4, 767.162
4, 720,139

2.121,717
2.125, 574
2-116,635
2,108, 290
1. 992,107
1, 912. 580
2. 018, 731
2. 097,907
1, 981,261
2,026, 633
2,038,079
2, 078, 562
2, 208, 984
2,163, 781

2,314,553
1,835,028
2,283. 704 1, 815,104
2, 291, 542 1, 791, 740
2,375, 794 1, 753, 523
2, 480,052 1,707,070
2, 551, 836 1,709,834
2, 556, 290 1,. 733, 865
2. 495, 472 1, 747, 735
2, 455. 400 1, 752, 391
2, 499, 232 1. 823,836
2.531.950
1,851,136
2, 550, 005 1, 906, 315
2, 558,178 1,925,081
2, 556,. 358 1, 881, 702

5,995,281
5, 888, 830
5.831,126
5,908, 909
5, 863, 058
5, 858', 635
6.030, 809
6,080, 894
5, 894, 478
6.063, 771
6,079,869
6,169,518
6,421, 358
6, 268, 844

13, 420, 935
13.437,826
13.503,320
13, 654, 395
13,781,837
13, 699, 690
13,644.289
13.549,741
13, 559, 444
13,816,867
13.813,141
13,911,812
13, 990,132
13,948,103

9. 564, 303
9, 597, 098
9,671,571
9, 785, 393
9, 902, 614
9, 859, 666
9, 845; 918
9,775,401
9, 725. 026
9. 810, 819
9, 782,499
9, 826, 864
9, 870,964
9,820,407

3. 446, 607
3, 491, 476
3.526.212
3, 608; 494
3, 637,288
3, 608,031
3, 639,043
3. 630,189
3, 618, 665
3, 654, 953
3,657,805
3, 701, 027
3,781.252
3,776,316

6,117,696
6.105, 622
6.145,359
6,176. 899
6,265; 326
6, 25i; 635
6,206, 875
6,145', 212
6.106, 361
6,155, S66
6.124. 694
6.125, 837
6.089,712
6, 044, 091

3. 856, 632
3; 840, 728
3, 831, 749
3, 869, 002
3, 879,223
3, 840,024
3, 798,371
3, 774,340
3, 834. 418
4,006, 048
4, 030, 642
4, 084, 948
4,119.168
4,127, 6S6

12, 864, 891 7, 934.084
12, 894, 660 7, 945, 583
12, 88(5, 530 7, 947,876
7,994, 795
12, 989,158
13.076, 639 8, 044, 827
12; 962', 913 7,,990, 791
12. 922, 009 . 7,948,148
12, 995. 274 7,951,323
13,015; 911 7,961, 606
13,220, 909 7, 973, 947
13,226.693
7,977,523
8,011,731
13, 274, 774
8,034, 314
13, 324, 838
13,317,083
8, 017, 612

19, 692, 233
19, 662,268
19,703,237
19,892,002
19,961,066
19, 873, 940
19.953,175
19, 890, 855
19, 748, 496
20, 166, 568
20.234. 306
20. 446, 694
20, 682. 375
20, 549,944

14, 000, 573
14,006,436
14. 079, 748
14,269,477
14.374, 773
14,324,082
14,420,939
14,368, 780
14.161,687
14,336.684
14,352,528
14, 455, 431
14, 638,126
14, 540, 546

5, 568, 324
5,617,050
5,642,847
5,716. 784
5,629,395
5,520,611
5, 657,774
5, 728,096
5, 599, 926
5,681,586
5,695,884
5, 779, 589
5, 990, 236
5, 940, 097

8, 432,249
8,389. 386
8, 436; 901
8,552, 693
8, 745.378
8,803; 471
8,763,165
8,640,684
8,561,762
8.655.093
8, 656, 644
8,675,842
8, 647, SCO
8, 600,449

5,691,660
5, 655, 832
5, 623, 489
5, 622, 525
5, 586,293
5,549,858
5,532,236
5, 522,075
5,586,809
5,829.884
5,88 K 778
5, 991, 263
6.044, 249
6, 009,398

18,860,172
18, 783, 490
18, 717, 656
18, 898,067
18, 939, 697
18,821,548
18, 952,818
19,076,168
18,910,3S9
19,284,680
19,306,562
19, 444, 292
19, 746,196
19, 585, 927

5,133, 643
5,012,434
4,945,294
6,025,387
4, 978, 784
4, 959. 046
5,093, 951
5,127,308
4, 935,006
5, 068.281
5.066.081
5,179, 092
5, 389, 740
5, 264, 543

13, 067, 727
12,958,017
12,893,170
13,020.182
13.023, 611
12. 949, 837
13,042.099
13,078, 631
12,896,612
13,042,228
13,043,604
13,190, 823
13, 424.054
13, 282,155

Time

Government

829, 646
850,761
865,354
839, 646
833, 852
872,198
901,789
917, 60S
929, 499
929,103
95Q,045
956, 334
1,009. 999
992,370

31,9S2
25, 635
20, 478
43,876
50, 422
27, 391
35. 069
35; 978
29, 973
66,387
63,743
34, 092

4, 780, 562
4, 829,206
4, 843, 867
4,848,831
4,883,138
4, 898,171
4,881,382
4, 951, 288
4, 977, 558
5,082, 378
5,091,851
5.179,428
5; 174. 294
5. 204, 050

150, 245
11G.871
94, 787
145, 532
348,674
73. 951
92, 479
92, 663
76, 747
164,584
157.319
83,615
118, 230
95,421

5, 610, 208
5,679,967 j
5, 709,221
5,688, 477
5, 716,990
5,770, 369
5, 783,171
5,868,896
5,907, 057
6,011,481
6,041,896
6,135, 762
6,184. 293
6,196, 420

182,237
145,506
115,265
189,408
199,096
101,342
127,54S
128, 641
106,720
230,971
221,062
117, 707
137,849
107, 352

21. 619
11,931

AUGUST,

571

FEDEBAL RESERVE BULLETIN

1927

BANKERS' BALANCES IN FEDERAL RESERVE BANK AND BRANCH CITIES
FEDERAL RESERVE BANK CITIES
[Weekly reporting member banks. Monthly averages of weekly figures]
[In thousands of dollars]
City
Month
New
York

Boston

Due from banks:
1926—January...

37,909
35,215
37.888
44,456
42,592
44,282
39,468
38,732
August
40,258
September.
36,983
October.._
41,031
November.
37,755
December.
40,246
1927—January...
February. _ 39,050
40,963
March.....
48,196
April
42,815
May
. 45,846
June.
45,947
July
„
Due to banks:
1926—January... 134,453
February._ 127,188
March _ 130,312
135,075
April..
131,158
May.__
126,416
June
July
_. 130,199
August
119,858
September- 119,490
October ...- 125,816
November. 128,262
December. 126,533
1927—January... 136,801
February... 135,794
134,562
March
April
_. 142,243
137,294
Mav
143.113
June
160, 660
July

Philadelphia

Richmond

Cleveland

Atlanta

Chicago

St. Louis

Minneapolis

Kansas
City

Dallas

San Francisco

101,482
96,667
96,886
108,123
101,225
107,517
104,846
91,973
102,4^5
111,081
102,636
96,640
100,303
93,479
100,235
106,574
101, 680
94,870
92,480

69,977
62,687
67,948
69,635
63,658
65,922
£8,791
53,441
59,256
53,385
56,828
55,079
55,212
58,036
55,362
54,430
53, 447
56, 374
50,668.

27,336
25,818
27,358
28,615
27,117
30,018
27,113
25,607
25,090
27,646
27,057
24,340
27,459
23,250
22,318
22,912
22, 674
24,499
22,948

19,108
17,542
16,694
16,426
16,538
15,778
14,862
14,083
15,934
16,341
18,465
17,680
12,839
7,520
7,544
6,820
6, 713
6,718
6,847

16,052
13,811
13,780
13,049
14,037
12,226
12,826
11,833
12,274
14,420
12,688
12,082
14,923
13,323
11,744
11,658
11, 467
10,511
11, 675

154,366
149,257
150,144
153,225
165,357
168,279
157,130
148,873
151,706
15.% 581
154,580
152,680
148,857
139,348
143,846
147,663
169, 597
145,323
143.247

35,084
30,490
28,235
28,563
30,210
29,300
27,859
26,235
25,582
28,037
29,503
28,400
31,673
29,850
29,852
28,208
27, 296
28, 503
25, 626

20,066
18,996
20,576
21,829
21,579
21,620
22,558
19,252
20,264
22,264
22,794
22,239
21, 532
20,017
19,822
19,836
19,602
19,932
21,744

45,567
41,692
39,894
38,373
39,537
37,831
46,989
46,947
44,939
43,654
50,466
43,733
44,621
41,884
40,846
38,649
33,490
33. 445
36,041

27,395
25,860
23,438
22,962
22,968
24,447
23,372
19,679
24,415
28,156
29,069
26,309
27,975
20,241
19,184
18,768
16,613
15,795
15,162

51,178
52,089
50,080
50,132
48,381
51,295
53,980
50,277
53,917
53,016
50,605
54,380
50,798
52,112
54,371
50,832
51, 325
53, 515
52, 269

1,125,909
1,083,501
1,116,084
1,086,318
1,071,846
1,097,672
1, 066,912
1,040,250
1,061,770
1,066,954
1,052,188
1,078,048
1,107,405
1,090,437
1,118,300
1,104,366
1,116, 781
1,170,711
1,164,095

184,843
179,098
178,180
180,893
180,040
179,382
174,699
167,796
169,984
170,767
165,589
163,054
173,041
173,142
172,512
170,573
169,109
164,173
169,079

46,708
46,931
45,931
47,470
45,049
46,344
49,529
48,949
49,932
48,214
46,647
45,143
48,845
53,578
54,017
55,613
55,089
56,135
60,290

37,343
36,983
33,523
31,672
32.177
29; 568
30,812
29,173
30,147
31,654
33,067
33,095
33,256
33.585
33,460
31,223
29, 585
30,346
30,359

22,424
20,306
19,403
17,788
16.315
15; 505
15,438
14,802
16,554
17,927
18,383
18,257
19,413
18,623
17,063
15,427
15, 544
14,113
15,394

375,921
377,337
387,489
383,232
379,873
381,543
373,312
371,742
374,605
359,722
349,234
347,137
370,264
362,476
371,986
362', 808
372, 351
346,052
361,439

95,549
92,001
84,896
84,286
83,691
81,441
83,870
82,664
80,331
79,292
78,936
79,495
88,533
88,347
87,039
86,085
81,810
81,401
81,920

58,578
55,753
54,832
47,331
50,378
48,613
46,733
43,113
45,627
50,364
52,698
50,771
53,080
55,471
53,586
50,934
47, 521
47, 514
46,463

105,224
103,038
94,047
91,007
91,626
93,669
108,780
110,499
103,734
98.413
97,038
96,657
101,170
95,337
90,268
86,741
82, 551
82. 674
91,837

34,798
32,090
27,557
26,720
25,149
24,860
25,516
24,072
26,679
32,764
33,771
32,340
32,575
33,234
31,913
28,624
27, 036
24,894
24.801

105,511
102,393
94,420
89,010
87,784
94,849
101,182
108,473
109,046
107,215
105,774
107,583
105,868
127,068
104,055
94,916
98, 387
99,877
108,422

February._
March
April
May...
June
July

FEDERAL RESERVE BRANCH CITIES
(Weekly reporting member banks.

Monthly averages of weekly figures for 1927]

[In thousands of dollars]
D u e to banks

Due from banks
City
Buffalo
Cincinnati
Pittsburgh
Baltimore
Birmingham
Ja ckson ville
Nashville
New Orleans
Detroit
Little Kock-_—
Louisville
Memphis
Helena
Denver
Oklahoma C i t y .
Omaha
El Paso
Houston
San Antonio
Los Angeles
Portland
Salt Lake C i t y Seattle
Spokane
—




March

April

May

June

July 11

14,511
15,710
43,157
14.348
8,112
14,285
4,304
19,078
37,754
3,511
10,548
16,036
1, 561
18.019
14,635
17,683
3,048
16.349
6,245
50, 859
10,782
5,255
16,544
4,289

13,047
16.338
36,836
1.3,298
7,873
14,118
4,218
15,826
37,779
3,573
10,410
13,771
1,488
15,264
13,005
15,314
2,850
16,664
7,026
53,001
10, 976
5,062
16,502
3,698

13.485
15,555
38,402
13,271
7,610
13,411
5,335
15,438
36,231
3,325
8,307
13,923
1,377
14,083
11,842
14.486
3,078
16,116
7,251
52,742
10,776
4,924
16,010
3,986

12,864
14,949
40,852
14,406
8,065
11,325
5,095
15,495
37,256
3,484
9.150
13;085
1,410
14,884.
11,454
15,384
2,532
16,571
6,968
53,645
9,802
5,171
16,433
3,778

12,893
14,042
38,096
14.333
9,988
11, 236
5,753 I
15,363 :
34,705 !
3, 450 j
7,410 ;
13,268 !
1,891 !
14,074
12, 219
17,978
2,742
15,951
7,137
54,264
10,131
4,959
16, 638
3,912

City
March
Buffalo
Cincinnati-:
Pittsburgh
Baltimore
Birmingham _.
Jacksonville
Nashville
N e w Orleans--.
Detroit
Little Rock___.
Louisville
Memphis
Helena
Denver
Oklahoma City
Omaha
___.
El Paso
Houston
San A n t o n i o . . .
Los Angeles
Portland
Salt Lake C i t y .
Seattle
Spokane

April

22,447
23,263
36,665
36.747
128,770 128,754
37,070
37,534
7,246
6,925
14,452
14,878
11,760
11,994
39,938
40,733
43,590
43,499
10,875 ! 10,673
29,994 I 28,386
17,138
14,793
3,031 I 2, 7120
18,131 j 16,255
22,674 I 20,678
33,730 | 30,693
2,140 i
2,136
28,076 ' 25,618
6.S06
6.815
58,595
60,488
15,632
16,690
11,249
10, 799
17,416
17,661
8,812
8,713

May

June

23,2,14
23,593
35,48.1
33,703
124,289 121,277
36,570
35,787
6,592
6,0.92
14,746
13,366
12,400
11,153
38,391
37,977
41,013
44,516
10.617
10.585
29; 894
24,134
13.628
12,909
2,379
2, 359
14,531
15,681
17,011
18,203
31,906
29,981
2,115
2,. 231
24,730
26,680
7,598
7,589 I
55,518
£0,445
15,339
18, 258
10,288
10,576
16,379
17,628
8,014
8,316

July
25,380
34,863
125,049
38,346
7,479
12,942
12,507
37,384
41,897
10, 489
27,085
12,303
2,381
13,836
18, 639
33, 298
2,173
22,659
7,017
59,987
15, 883
10,007
18,790
7,783

572

FEDERAL RESERVE BULLETIN

AUGUST, 1927

COMMODITY PRICES, SECURITY PRICES, AND SECURITY ISSUES
WHOLESALE P R I C E S , BY C O M M O D I T Y G R O U P S *
[1913-100]
Clothing
materials

Metals
and
metal
products

Building Chemiand
materials cals
drugs

House
furnishing
goods

Nonagricultural

Month

All commodities

Farm
products

1926
April
May
June
July
August
_,
September...
October
November..
December..

151
152
152
151
149
151
150
148
147

145
144
144
141
138
141
138
135
135

153
154
157
154
151
152
152
151
151

177
176
175
173
175
175
172
170
169

174
179
179
177
180
182
184
190
183

127
125
125
126
127
127
127
127
126

173
172
171
172
172
172
172
174
173

130
131
131
131
131
131
129
129
128

163
162
162
161
161
160
160
160
159

127
125
123
123
122
120
119
118
118

149
149
151
148
145
146
143
141
142

153
153
153
152
153
154
153
154
152

1927
January
February...
March
April
May
June

147
146
145
144
144
144

137
137
137
137
137
138

150
148
147
147
148
146

167
169
168
169
170
170

180
177
168
161
158
159

124
122
123
122
121
122

170
168
167
165
166
164

122
122
121
122
122
122

157
158
157
157
157
157

118
119
119
119
120
121

143
144
144
143
144
143

150
148
146
144
144
144

Foods

Fuels

Miscellaneous

Agricultural

i Index numbers of Bureau of Labor Statistics.
PRICES OF FARM PRODUCTS AT THE FARM i

SECURITY PRICES

[August, 1909-July, 1914=100]

Month

30
commodities

Fruit
and
Grains vegetables

Common stocks *

Dairy Cotton
Unand
and
poultry cottonclassiprodfied
seed
ucts

Meat
animals

1926

May

June
„
July...._._.
August
September.
October
November .
December. _

139
139
136
133
134
.130
130
127

131
130
125
128
121
123
121
120

240
216
195
166
136
136
142
137

148
154
152
144
148
148
142
140

131
130
131
130
139
144
157
161

130
132
126
130
134
94
88
81

82
81
85
81
93
97
97
91

1927
January
February...
March
April.
May.
June
July

126
127
126
125
126
130
130

120
122
121
119
127
140
139

140
142
140
147
158
201
195

140
143
144
143
137
129
131

152
142
133
133
130
124
125

85
94
102
101
113
119
124

87
84
81
80
79
82
81

1

Index numbers of Department of Agriculture.

Class of issue'

623.3

267.9

472.2

133.1

414.9

265.8

306.7

87.8

267.9 248.1
22.1
17.2
124. 8
.5

235.9
17.6
53.2

85.8
2.0

30.0

40.0

135.5

5.2

635.8

139.6

_ 482.0

136.7

334.0
36.9
110.9

90.9
1.2
44.6

Farm loan issues.
Municipal issues
Total new and refunding




New

New

Total

1.7
152.1
77, >

2.5
2.8
4

June, 1926

Refunding

Refunding

New

Corporate issues
Bonds and notesLong-term
Short-term. __
Stocks

May, 1927

205.9
891.2

2.2

July....
August
September
October
November
December

Bonds:
average
price
of 40
issues

Total
229,
stocks

stocks *

31
railroad
stocks 8

152.7
159.2
159.8
155.4
157.5
161.7

128.3
131.4
134.6
129.6
132.4
135.2

145.6
151.1
152.5
147.9
150.2
153.9

94.87
95.03
95.03
94.93
95.66
96.05

158.4
163.0
165.7
165.1
174.5
175.4
179.0

136.7
142.1
143.1
147.4
150.5
151.9
153.9

153.5
156.9
159.0
166.2
167.5
168.5
171.7

96.43
96.44
96.63
97.24
97.55
97.06
97.03

173.7
173.8
178.9
182.9
185.8

150.6
152. 0
154.9
154.1
157.8

167.0
167.4
171.9
174.5
177.7

96.84
97.02
97.03
97.10
97.16

1926

1927
January
February
March
April..
May
June
July
Week endingJuly 2-...
July9___.
July 16...
July 23__.
July 30...

* Index numbers of Standard Statistics Co.
2 Average of 1917-1921 prices=100.
* Average of yearly high and low prices, 1913-1922=100.

DOMESTIC CAPITAL ISSUES
[In millions of dollars]
June, 1927

Month or week

198
indus-

F O R E I G N CAPITAL I S S U E S
[In millions of dollars]

Refunding

605.3

June 1927

Total
_
TsTpw issues
Europe
Canada and Newfoundland
Latin America
United States insular
possessions..
International
Refunding issues
Total, Government
and corporate

May, 1927

June, 1926

Government

Corporate

Government

Corporate

Government

93.3
83.3
45.9
23.7
10.9

62.4
48.4
.8

19.7
19.7
15.7

32.1
32.1
15.1

54.7
44.2
14.2

56.2
50.7
35.4

17.0

7.0
20.7

13.4
1.4

2.8
10.0

5.1
7.5

4.0

35 0
14.0

155.7

51 . 8

Corporate

2.3

.5

10.5

5.5

11 L.O

AUGUST,

573

FEDEKAL BESEKVE BULLETIN

1927

INDUSTRIAL PRODUCTION
[Index numbers, adjusted for seasonal variations. 1923-1925 average=1001
Index of Industrial Production

1922

1925

1926

1927

1922

1923

106
107
108
107
107
107
107
111
113
111
108
105

106
109
112
109
111
108

94
95
97
100

105
105
105
103
103
101
103
103
102
105
106
108

73
75
78
81
86
90
89
87
89
94
98
100

100
100
103
107
107
104
102
101
101
95

95

104

108

87

101

1924

January.. _.._
February . . . .
March
April
May....
June
July
August
September...
October......
November...
December

74
76
81
77
81
85
84
83
88
94
97
100

100
100
104
107
107
105
103
102
100
99
97

Annual index

85

101

102
101
95
89
85

Minerals

Manufactures

Total

Month

1924

1925

1926

1927

108
108
108
107
107
107
107
112
113
110
106
103

105
107
110
109
112
108

95
97
101

105
106
106
103
103
101
103
103
104
107
108
110

94

105

108

102
101
95

1922

74

1923

1924

1925

1926

100
100
106
112
108
107
109
110
98
105
104
99

103
106
101
92
93
91
90
92
97
97
96
100

105
101

93
98
108
107
103
104
105
109
111
116
118
120

105

96

104
99
102
107
90
91
94
94

1927
117
120
122
106
108

ioa

107

Index of Production of Manufactures, by Groups
Total

Iron
and
steel

Textiles

Food
products

Paper
and
printing

1926
April........
May
June
July
August
September...
October
November
December

107
107
107
107
112
113
110
106
103

115
115
112
113
120
117
114
104
102

101
99
101
99
105
110
110
110
109

95
94
99
100
103
103
102
99
96

114
115
113
114
115
116
118
115
113

1927
January
February
March
April
May
...
June

105
107
110
109
112
108

1105
1113
1114
115
1116
104

107
107
114
113
118
121

93
92
100
99
103
102

112
1113
113
114
113
111

Auto-

Lumber mobiles1

106
102
97
99
94
100
97
95

111
112
110
106
128
124
105

95
99
104
104
105
93

Leather Cement, Non- Petro- Rubber Tobacco
and
brick, ferrous leum
manuand glass metals refining tires factures

93
98
102
103
105
106
100
100

100
97
196
U00
104

107
111
122
118
119
119
114
106

115
114
107
109
111
111
113
120
119

123
125
126
126
128
128
129
133
135

109
108
117
118
128
138
126
106
112

113
111
113
10$
113
113
116
116
11G

108
121
109
108
112

116
112
107
111
110
108

135
134
135
134
132
134

117
114
122
131
1127
133

114
113
118
122
122

Index of Production of Minerals, by Products

Month

Bitumi- Anthracite Crude pe- Iron ore
troleum shipments
coal
nous coal

Total
April
May.......
June
July
August
September..
October
NovemberDecember..
January...
February..
March
April
May
June
_

Copper

Zinc

Silver

Lead

1926
107 i
103 |
104
105 I
109 ;
111 I
•116 |
118 !
120

107
100
101
101
103
108
114
125
124

126
120
124
118
121
127
125
113
111

103
106
106
112
117
121

117
120
122
106
108

122
130
139
93
91

98
95
89
109
119
101

120
124
124
119
120
119

95
103
109
128
116
134
97

109
108
106
112
108
114
113
116
112

113
112
110
107
119
124
122
121
119

112
116
108
113
116
116
118
115
122

108

115
111
100
105
106
104

116
114
114
109
107
113

113
113
115
122
113
114

100
98
93
88
187
94

93
92
98
90
93
93

1927
j
!
1
|

103 I

120
100

* Revised.
NOTE.—These tables contain, for certain months, index numbers of industrial production, together with group indexes for important components. The combined index of industrial production is computed from figures for 60 statistical series, 52 of manufactures, and 8 of minerals.
Adjustments have been made in the different industries for the varying number of working days in each mpnth and for customary seasonal variations, and the individual products and industries have been weighted in accordance with their relative importance. The sources of data and
methods of construction were described and monthly indexes for the above groups were published in the BULLETINS for February and March, 1927.




574

FEDERAL RESERVE BULLETIN

AUGUST, 1927

PRODUCTION OF MANUFACTURES, BY INDIVIDUAL LINES
June,

May,
1927

1927

Iron and steel:
Pig iron....
_
Steel ingots
Textiles:
Cotton consumption
Wool—
C onsum p tion
Machinery activity 1
Carpet and rug loom activity »„_
SilkDeliveries
Loom activity *
Food products:
Slaughtering and meat packingHogs
._
-Cattle
Calves
Sheep
Flour
Sugar meltings
Paper and printing:
Wood pulp and paperNewsprint
.
Book paper
Fine paper
Wrapping paper _
Paper board
Wood pulp, mechanical
Wood pulp, chemical
Paper boxes
Newsprint consumption
Lumber:
Lumber cut
Flooring
Transportation equipment:
Automobiles
__„
Locomotives
Shipbuilding

106
104

109
117

111
112

136

125

107

109
84
87

107
84
91

92
79
79

128
107

143
112

117
100

98
113
98
108
99
99

98
107
103
103
108
101

79
120
110
11.0
103
103

100
104
113
2 103
91
114
2 133
129

110
109
109
103
119
112
114
132
117

89
108

2 95
102

95
109

93

105
60
181

* 110
90
79

97
108
108
116
87
109
123
123

June,

June,
1926

Leather and products:
Leather, tanningSole leather 1
Upper leather—
Cattle . . .
Calf and kip
Goat and kid.
Boots and shoes
Stone, clay, and glass:
Cement
BrickFace brick
Paving brick
Plate glass
_
_ _
Nonferrous metals:
Copper
Lead
Zinc
Tin 1 .
Chemicals and allied products:
Petroleum refining—
Gasoline1
Kerosene
Fuel oil 1
Lubricating oil l
_
Coke production—
Bv-product
. .
Beehive
Rubber tires and tubes:
Tires, pneumatic
Tniier tubes

Tobacco products:
Cigars
Cigarettes
Manufactured tobacco and snuff

June,

May,
1927

1927

1926

96

104

87

96
95
125
106

84
106
110

97
99
114
98

119

115

118

113
81

104
81
113

104
89
148

106
113
101

109
113
107
110

105
109
110
108

149
96
119
111

145
100
122
110

136
112
110
116

122
68

123
. 64

122
95

136
108

2 129
2
115

119
106

98
142
97 i

92
128
102

Paper Foods Leather Stone, ToRailclay, bacco
and
and
and
road Autoprodvehi- mobiles print- prod- prod- and
glass
ing
ucts
ucts
ucts
cles

Chemicals
and
prod-

1 Without seasonal adjustment.

2 Revised.

FACTORY EMPLOYMENT AND PAY ROLLS
[Index numbers without seasonal adjustment. Monthly average, 1919=100]
Metals and
products
Month

Total

Group
Employment:
1926—May
June.
July .
August
SeptemberOctober
NovemberDecember—
1927—January....
February.
March
April
May _ _
June
Pay rolls:
1926—May
June
July
August
SeptemberOctober
NovemberDecember—
1927—January ___
February
March.....
April
May. _
June

95.5
95.1
93.5
94.4
95.8
96.3
95.2
94.1
92.4
93.6
93.9
93.2
92.6
92.3
168.9
108.8
103.6
107.6
108.3
112.4
108.8
107.8
101.9
108.5
109.9
108. 4ri
108.1
105.7

i
1
I

1
!

lion
and
steel

Textiles and products
Group Fabrics Products

Lumber
and
products

ucts

93.1
92.7
91.4
91.9
92.9
93.3
91.7
90.5
88.9
90.1
90.6
89.9
88.7
87.7

92.8
92.5
91.1
91.7
92.7
93.0
91.5
90.4
88.7
90.1
90.3
89.6
88.4
87.5

92.6
91.0
87.0
88.4
91.3
93.7
93.6
95.0
95.2
96.9
96.6
95.1
93.6
93.1

93.7
91.8
88.2
88.6
92.8
95.9
97.0
97.5
97.6
98.5
98.3
97.5
96.5
96.3

91.3
90.0
85.6
88.0
89.5
90.8
89.4
91.9
92.2
94.7
94.5
92.0
89.9
88.9

100.1
100.1
99.4
100.3
100.0
100.1
99.3
97.1
92.6
91.7
91.1
90.8
91.5
91.8

87.8
86.7
85.7
84.9
85.0
83.9
83.0
82.3
79.8
79.2
78.0
78.4
78.5
78.9

127.1
125.2
122.0
125.1
124.6
119.9
110.2
104.0
104.2
117.3
122.4
123.4
123. 7
117.2

106.9
106.8
106.4
106.6
108.4
109.8
111.1
110.7
108.8
109.0
109.0
108.1
107.3
106.9

83.6
85.5
85.7
86.0
88.6
90.4
88.6
86.7
85.1
84.9
84.1
83.1
83.7
87.6

82.6
82.4
85.5
89.5
90.9
90.6
89.0
87.1
88.5
88.9
88.6
84.2
82.6
82.2

127.4
129.7
127.3
129. 7
129.3
126. 6
123.9
117.9
109.6
110.1
115.9
121.5
124.0
124.2

79.4
82.1
79.1
76.7
80.6
82.7
82.3
81.8
73.5
79.0
78.9
77.3
78.2
80.3

76 0
76.3
75.1
75.6
77.4
78.2
78.2
77 8
77.6
77.8
78.2
78.1
75.3
75.9

100.5
100.6
94.8

100,1
100.3
94.5
96.7
97.9
102.2
99.0
99.1
93.8
98.7
100.1
99.1
96.2
94.7

99.1
97.4
91.6
96.5
98.9
105.3
102.0
106.3
105.3
11L0
110.8
105.1
103.3
102.8

100. 7
98.2
92.7
96.0
100.7
108.2
107.3
109.8
107.6
111.7
111.3
108.1
107.6
107.0

97.2
96.4
90.2
97.0
96.7
101.7
95.5
102.0
102.6
110.3
110.3
101.4
98.1
97.6

111.8
112.9
107.5
112.6
113.7
117.0
115. 5
111.8
100.6
102.6
103.7
102.2
104. 5
104.2

95.1
96.2
89.6
93.1
88.9
93.4
92.1
91.9
84.6
89.3
87.0
88.0
89.8
87.9

157.3
147.7
136.7
152. 7
148.9
151.3
131.3
111.5
94.0
140.2
153.4
157.7
158.7
131.4

147.1
146.9
144.0
144.4
146.8
151.0
152.3
154.7
150.3
150.8
152.2
150.7
150.3
148.2

99.5
101.6
100.8
100.5
103. 6
105.6
102.9
102.1
99.3
99.3
99.1
98.0
100.7
104.6

81.2
85.4
90.3
97.6
97.4
97.3
90.4
88.5
90.0
95.6
93.2
87.0
84.4
85.1

158.3
162.9
152.9
162.3
157.0
159.5
154.6
147.6
129.5
136.8
144.9
151.6
157.6
154.5

81.7
87.1
83.6
82.8
87.6
91.3
90 6
88.4
76.2
79.2
80.9
77.9
83.6
86.7

103.7
105.0
101.7
101.1
102. 3
109.0
108.6
109.1
107.0
108. 9
111.7
109. 9
107.0
109.1

97.0
98.4
102.6
99.3
! 99.3
94.1
99.1
100.7
99.5
96.8
95.1

NOTE.—This table contains for certain months general index numbers of employment and pay rolls, together with group indexes for important
industrial components. The general index is a weighted average of relatives for 34 individual industries. The method of construction was described in detail and indexes for the above groups since January, 1919, were published in the BULLETIN for May, 1925. See also p. 668 of BULLETIN
for September, 1925, for certain revisions.




AUGUST,

575

FEDERAL RESERVE BULLETIN

1927

BUILDING
BUILDING CONTRACTS AWARDED 1
[Index numbers based on value of contracts. Monthly average, 1923-25=100]
Without seasonal adjustment

With seasonal adjustment

Month
1922

January
February __
March __„ _ _ _.
April
May

June
July

.

1925

76
78
109
121
108
101
87
89
87
103
95
83

61
71
94
101
109
93
79
75
73
91
80
76

48
52
85
102
105
100
102
93
79
73
71
62

._

August __
September
October
November
December

1924

1923

1926

75
76
120
138
124
137
133
149
138
129
116
129

111
99
146
139
134
133
126
146
137
126
119
131

1927

1922

94
96
151
147
135
154
130

1924

1923

70
70
83
82
85
82
92
86
81
71
82
77

85
97
87
79
89
81
76
72
76
88
90
90

1925

101
101
99
96
95
91
84
85
90
100
103
94

1927

1926

101
104
107
112
115
125
128
135
135
129
127
138

146
136
128
120
125
125
124
130
130
126
130
136

123
131
131
128
126
144
128

BUILDING CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS *
[Value of contracts in thousands of dollars]
Federal Reserve District

Total

Month

NewYork

Boston
1926
April
May
....
June
July
August
September..
October
November..
December...
1927
January
February...
March
Aoril
May
June
BUILDING

Month

1926
April
May
June
July
August
September.
October
November _
December...
1927
January
February..
March...,.
April
May
June

570,614
549,815
547, 792
518, 932

Philadelphia

Cleveland

Richmond

tlanta

Chicago

St. Louis

Minneapolis

Kansas
City

Dallas

562,371
515, 727
487,013
537,396

41,788
44,489
36,838
39,228
42,098
42,427
29,297
34, 584
31, 570

173,176
144,232
129,051
110,671
158,608
151,251
127,176
118, 757
228,021

36,376
37,780
50, 576
37,483
39, 767
39,189
28,843
28,609
31,018

56,948
57,053
71,293
66,749
57,361
55, 226
55,236
38,733
41, 795

39,005
31,859
27,817
25,009
29,252
38,704
35,250
44, 318
22,596

54,310
40,223
36,492
42, 715
31,656
37,194
34,979
40,084
28,232

87,690
95,009
101,737
106,661
128,213
110, 760
108,944
114,456
92,113

30,697
34, 212
35,033
34, 752
48,743
35,187
40,981
30,586
22,504

15,966
15,245
14,121
13,863
11,839
12,955
13, 712
9,752
8,588

14,074
18,839
17,894
21,559
23,556
18,445
22,935
11,979
11, 520

20, 584
30.874
26,940
20, 242
29,716
21,033
18,374
15,155
19,439

384,455
393,583
620, 738
604, 391
552,349
632,478

15,848
20,298
42,806
40, 649
39,023
33, 569

116,973
105,958
157,873
168,170
141,177
175,991

32,353
33,088
52,351
52,925
36,172
47,632

48,509
45,741
62, 733
74, 366
72, 782
72,266

27, 776
24,944
34, 694
31,192
39, 736
35,502

32,454
31,928
45,921
31,004
31,100
31,188

56,372
69,698
121,426
112,070
103,226
138,187

21, 533
25,697
42,704
34, 888
31,344
44,171

4,337
5, 548
16,107
13,944
12,999
14,134

11,419
16,173
16,342
22, 644
21,528
17, 598

16,881
14,510
27,781
2G,539
23,262
22,240

CONTRACTS
AWARDED,
BY
TYPES
BUILDING i
[Value of contracts in thousands of dollars]

Residential

Indus- Comtrial mercial

OF

BUILDING

PERMITS

ISSUED, BY FEDERAL
DISTRICTS

RESERVE

[Value of permits in thousands of dollars]

Public
works Educaand
tional
public
utilities

All
other

52, 589
47, 688
48, 639
50,545
60,088
57, 666
51, 543
48,053
64,585

Federal reserve district

Number
of cities

June,
1927

May,
1927

June,
1926

United States

168

293, 886

294,311

330, 478

Boston
New York. __
Philadelphia.
Cleveland

14
22
14
12

12,574
101,388
20, 816
18, 964

12,999
98, 833
18, 272
21, 477

12,656
112, 309
24,076
22,336

Richmond
Atlanta
Chicago
32, 631 St. Louis
47,126 Minneapolis,.
65,468 Kansas City..
59, 676 Dallas
69,026 San Francisco.
77,142

15
15
19
5

13, 954
7, 762
62, 879
6,916

11,141
8,845
58,390
7,632

16,654
14, 721
62,434
7,206

9
14
9
20

5. 347
8, 8-36
6,697
27, 723

5, 307
8,240
8,012
35,163

5,644
8,253
7,969
36, 220

1
Figures for building contracts awarded are for 37 States east of the Rocky Mountains, as reported by the F. W. Dod^e Corporation*
indexes by months from 1910 to date given in this issue of the Bulletin, p. 563.

Adjusted

265,331
244, 587
237, 725
184, 940
223,292
225, 516
226, 794
229,821
203, 966

45,653
45, 977
54, 515
62, 764
68, 279
49,113
46,465
64, 781
51,181

89,333
70,892
67,960
67, 219
81,343
97,378
63, 601
59, 657
75,196

79, 22S
100,961
98,200
111,448
125,683
98,167
103. 757
50,129
120,290

40, 753
42,016
42,124
34, 531
23, 567
34, 572
22,178

167,866
163,088
250,078
267,417
219,980
239,814

27, 875
41, 247
48, 077
44, 602
44,889
33,879

80,116
67,896
113, 766
80, 754
72, 541
88,122

58, 955
52,180
106,827
116,264
111,368
151,399

17,012
22, 046
36, 522
35, 678
34,545
42,122




38, 480
39, 710

578

FEDERAL RESERVE BULLETIN

COMMODITY

AUGUST, 1927

MOVEMENTS
AGRICULTURAL MOVEMENTS i

FREIGHT-CAR LOADINGS, BY LINES »
[Index numbers, adjusted for seasonal variations. 1923-1925 = 100]

[Index numbers, without seasonal adjustment. 1919—100]
AniLive- mal Grains Cot- Vege- Fruits ToTotal stock
ton tables
prodbacco
ucts
•

Total

Livestock
1926—May

85
91
107
August.
108
September- 144
190
October
November.. 165
138
December _ _
1927—January . . . _ 115
February. _. 104
103
March
85
April
94
May
94
June.
_

June
July .

1926—May....
June___.
July.—
August.
September
October
November
December
1927—January
February
March
April
.__
May
June
1

Grain
and
grain
products
100
110
118
101
92
104
93
99
96
102
98
97
100
105

108
109
108
108
109
109
108
106
105
109
109
108
107
104

..

87
88
80
88
102
113
107
95
99
81
91
82
95
91

137
168
152
118
104
96
117
126
86
95
118
137
161
169

54
84
170
158
124
125
99
82
86
84
71
50
63
84

43
20
12
48
213
375
343
251
152
118
117
74
58
32

121
170
134
101
186
251
135
98
118
113
146
146
140
162

173
115
177
204
295
435
204
104
99
97
100
128
174
127

16
30
2
66
192
261
286
344
404
383
212
31
8
1

* For description and early figures see BULLETIN for March, 1924, and
for certain revisions see page 739 of the BULLETIN for October, 1925.

Revised. For description and early figures see p. 562 of this Bulletin.

WHOLESALE

TRADE
CHANGES IN SALES AND STOCKS—Continued

SALES, BY LINES
[Index numbers,1 without seasonal adjustment. Mo. av. 1919=100]
Month

Total

1926—May.... .
June
July...
.
August
September.,..
October
November...
December...
1927—January .
February
March
April. .
May.. __ __
June

82
84
82
88
97
94
86
78
75

Dry
HardGroceries Meat goods Shoes ware Drugs
80
86
84
82
92
91
87
80
74
69
79
77
81
86

81
82
77
81
86
85
76
73
77

78
77
78
102
114
102
91
71
72
78
90
75
71
74

60
59
52
73
84.
76
67
60
46
53
73
68
56
58

107
105
99
99
112
114
104
99
80
82
107
102
99
103

111
116
113
115
124
133
117
11C
112
104
130
122
113
115

Line and Federal reserve
district

Dry goods:
United States
..
New York
^
Philadelphia . . .
Cleveland „
Richmond
Atlanta
Chicago
St Louis
73
73
Kansas City
71
83
Dallas
71
78
'
San Francisco
74
79
Shoes:
73
81
United States
1
New York
. . . . .
For description of wholesale trade index see BULLETIN for April, 1923.
Philadelphia
Cleveland
.
CHANGES IN SALES AND STOCKS, BY LINES AND DISTRICTS
Richmond
- Atlanta
[Increase or decrease (—), per cent]
Chicago
. .
. - St. Louis.-w_--Minneapolis
Sales: June, 1927, Stocks: June, 1927,
San Francisco
compared with—
compared with—
Hardware:
Line and Federal reserve
United
States
district
New York
May,
June,
May,
June,
Philadelphia
1927
1926
1927
1926
Cleveland
Richmond.
.
Atlanta
,
Groceries:
Chicago
. .
6.0
-0.3
3.1
3.6
St. Louis.
» ..
United States. . .
Boston
89
—3 7
Minneapolis
New York
5.4
64
1.9
—9 2
Kansas City . .
9.4
-6.9
0.7
-5.0
Philadelphia . . .
Dallas
.....
1 8
Cleveland
98
—3 5
—6 7
San Francisco
2.1
5.4
3.0
Richmond..
-4.3
Drugs:
-5.0
4.3
Atlanta
-0.3
-1.1
United States
Chicago
9.0
-4.3
-2.0
3. 6
-9.2
-18.0
-7.3
— 1.3
St. Louis
Philadelphia
2.0
22.0
10.0
-5.0
Minneapolis.. . .
Cleveland
Kansas City
'3.1
8.9
— 18.6
36
Richmond
-8.4
Dallas
,
-0.7
-3.7
-3.3
Atlanta
2.2
6.6
-6.9
—1.1
San Francisco
Chicago
St Louis
Kansas City
.
NOTE.—Changes in stocks are computed as of end of month; figures
Dallas
for the United States are weighted averages computed on the basis of
San Francisco
....
firms which have reported regularly since January, 1923.




Sales: June, 1927,
compared with—
May,
1927

June,
1926

3.1
13 8
-2.4
—4 1
-2.4
-9.1
8.9
-1.0
-1.7
-4.4
3.0

-3.6
27
-14.0
—14 9
2.1
-3.3
-6.5
-2.1
-7.0
-10.4
-4.4

2.8
50
27. 6
-4.5
-0.2
-17.7
—15.1
-0.6
—41.8
8.0
-7.9

Stocks: June, 1927,
compared with—
May,
1927
7.2

June,
1926
-6.2

-2.1
20
19.6
-2.9
11.1
14.6
-2.7
12.1
-1.8

27.9
—15 4
-2.4
-22.1
-15.1
2.2
8.8
-4.8
0.9

-0.8
29
6.8
-19.8
-14.3
-4.6
— 10.4
12.0
— 10.0
-8.0
0.2

1.2
10
12.7
-4.4
-13.4
-1.9

3.9
—2 4
50.1
22.7
1.2
5.5

-7.7
21.5
2.0
2.2

-4.7
-0.3
-48.0
-4.8

3.3
6.4
-0.9
0.5
-7.9
-3.7
-0.3
0.4
-13.0
5.8
9.8
1.8

-2.5
-2.2
-11.1
-3.4
5.9
-19.2
-3.7
-12.8
12.0
-1.7
-3.2
-1.2

-5.0
-10.2
-2.5
-6.9
2.3
-3.1
-0.8
-5.3
4.3
1.4
-5.1

-7.7
14.0
-1.9
-16.1
-5.0
-6.6
1.6
-23.5
-2.0
3.9
-18.8
-15.0

2.2
24
-2.2
4.1
-3.4
6.4
2.8
65
-0.9
-4.0

-0.1
—5 7
-2.6
0.3
1.1
1.0
-3.8
10 2

6.4
8 1
-0.6

-3.2
—19 2
35.9

-0.3

-1.8

-6.7

0.9

0.7

-1.5
-6.5
33.9

6.0

-3.8

4.0

1.3

22.6

577

EEDEEAL EESERVE BULLETIN

AUGUST, 1927

RETAIL TRADE
SALES OF DEPARTMENT STORES, MAIL-ORDER HOUSES, AND CHAIN STORES
[Index numbers. 1 Average monthly sales 1919=100]
Sales with seasonal adjustment

Sales without seasonal adjustment

Month

1926
January. __

February..
March.

April.
May
June __ _
July
August
SeptemberOctober. _.
NovemberDecember.

De- Mailpart- order
ment houses
Gro- 5-and- Drug
stores
cery 10-cent (9)
(4)
(359)
(27)
(5)

Chains
Cigar
(3)

De- Mailpart- order
ment houses
Gro- 5-andShoe Music Candy st ores (4)
cery 10-cent Drag
(359)
(4)
(5)
(6)
(9)
(27)
(5)

Chains
Cigar
(3)

Shoe Music Candy
(5)
(6)
(4)

114
104
130
133
137
130
99
105
131
158
156
234

116
111
130
120
105
113
97
98
121
151
153
166

286
287
302
329
322
309
317
296
307
334
347
373

166
170
199
202
214
204
206
204
211
257
247
466

178
172
194
191
188
184
195
193
192
206
198
261

127
127
142
150
160
152
155
148
153
162
150
222

108
97
143
166
174
153
145
122
142
158
150
215

101
103
112
111
109
118
108
121
137
151
146
223

167
173
206
226
220
204
210
194
218
227
232
303

130
135
130
130
132
130
133
134
144
139
138
146

118
122
111
118
117
133
331
130
128
116
123
139

284
299
279
324
321
314
329
310
323
324
344
357

228
227
207
216
225
222
227
215
227
237
237
252

185
189
192
196
191
187
194
192
195
202
210
215

146
151
147
156
157
156
157
151
152
155
151
164

142
145
143
143
151
144
159
155
148
140
138
164

122
126
124
130
131
149
145
136
137
125
117
118

199
205
204
226
228
218
214
193
221
221
244
208

114
107
129
143
131
130

108
107
132
128
106
115

347
332
386
381
382
398

177
191
213
244
224
224

209
201
224
223
206
210

134
137
153
157
157
151

106
110
125
198
143
155

94
98
108
104
88
87

178
194
216
257
216
215

130
139
129
140
127
130

110
118
113
125
119
135

345
346
357
376
380
404

243
256
222
261
236
244

217
222
222
230
209
213

154
162
158
163
154
155

140
164
126
170
124
145

114
119
120
122
106
109

212
230
213
257
224
229

1927

January _._
February..
March.....
April....
May
June

i For description of retail trade indexes see BULLETINS for January and March, 1924. Index of sales of grocery chains revised in February, 1925;
comparable figures since January, 1919, obtainable from Division of Research and Statistics, Federal Reserve Board.
DEPARTMENT STORE SALES AND STOCKS, BY FEDERAL RESERVE DISTRICTS
[Index numbers. Monthly average 1919=100]
Federal Reserve District
United
States
Boston

New
York

Philadelphia

Cleve- |* Richland I mond

Atlanta

Chicago

Minneapolis

Dallas

San
Francisco

I

Sales (unadjusted):
1926—April
May
June..
1927—April
May.......
June

133
137
130
143
131
130

333
134
134
144
130
139

138
139
137
148
134
143

128
137
129
133
124
126

133
137
126
147
132
124

126
129
123
134
123
120

114
114
104
114
108
102

147
159
146
162
151
147

107
102
93
103
92
92

108
115
107
114
116
100

150
152
142
166
152
137

Sales (adjusted):
1926—April.......
May
June. _-__..
1927—April.
May
June

130
132
130
140
127
130

126
126
127
136
122
131

134
136
136
145
131
142

116
132
125
121
120
122

129
131
124
143
127
122

123
128
119
131
122
117

111
109
110
111
103
108

144
152
147
160
144
148

103
100
92
99
90
91

114
113
112
119
114
105

156
147
151
173
147
146

Stocks (unadjusted):
1926—April
May.
June..
1927—April.......
May
June...

143
138
131
143
138
129

125
123
116
129
127
119

142
138
131
142
137
128

201
184
177
200
191
183

134
133
126
134
130
124

131
132
126
132
131
122

125
116
110
130
120
106

159
153
147
161
156
145

110
106
101
100
97
89

130
125
114
112
109
101

145
139
131
147
139
136

Stocks (adjusted):
1926—April
May
June...
1927—April..
May...
June
__

139
138
138
139
138
136

122
123
122
125
126
125

137
138
138
137
136
134

198
189
183
197
195
190

129
132
129
129
129
127

128
134
134
129
132
130

122
119
115
127
123
112

153
154
156
155
157
154

107
102
10697
93
94

129
123
120
112
108
106

140
139
138
141
142
142

NOTE.—Number of reporting firms included in sales and stocks indexes, respectively, for department stores are as follows, by Federal reserve
•districts: United States, 359-314; Boston, 24-24; New York, 63-63; Philadelphia, 22-13; Cleveland, 54-52; Richmond, 23-19; Atlanta, 35-22; Chicago,
83-51; Minneapolis, 23-22; Dallas, 21-19; San Francisco, 31-29.




578

FEDEEAL SESERVE BULLETIN

AUGUST,

1927

BANK SUSPENSIONS AND COMMERCIAL FAILURES
BANK S U S P E N S I O N S , BY CLASS OF BANK

COMMERCIAL FAILURES, BY CLASS OF ENTERPRISE

[Amounts in thousands of dollars]

[Amounts in thousands of dollars]

All 1Danks

Member
banks

Nonmember
banks

Number

Num- Total Num- Total N u m - Total
ber deposits ber deposits ber deposits

ManuManu-i
Agents.
brokers, Total factur- TradTotal factur- iTrading
ing
ing
ing
etc.

1926
January..
February
March
April
May
__
June
July.
August
September _.
October
November..
December...
Total..
1927
January...
February March....

April
May
June
. Total 6 months

65 13,384
52 11,763
51 10,249
56 12,512
68 16,324
77 34,229
140 48, 618
52 10, 001
37 12,050
88 18,209
154 45, 983
116 39,166
956 272,488

11
10
6
6
10
16
5
9
8
19
33
27
160

3,992
2,861
710
3, 534
4,234
5,318
1,637
2,127
4,317
6,280
19,389
14,413
68,812

54
42
45
50
58
61
135
43
29
69
121
89
796

9,392
8,902
9,539
8,978
12,090
28,911
46,981
7,874
7,733
11,929
26, 594
24, 753
203,676

132 37, 229
82 32,918
75 44,893
48 12,492
47 14,185
40 12, 049
424 153. 766

27
16
16
10
11
9
89

11, 836
8,895
8,999
5,471
7,172
5, 521
47, 894

105
66
59
38
36
31
335

25, 393
24, 023
35, 894
7,021
7,013
6,528
105, 872

BANK SUSPENSIONS,! IN JUNE, 1927, BY DISTRICTS
[Amounts in thousands of dollars]
All banks

Federal reserve district

Member
banks 2

1926
2,296
January
1,801
February
1,984
March
1,957
April.
1,730
May
', 708
June
., 605;
July..
_
August
_. ,593
,437
September
,763
October
.,830
November
2,069:
December
Total

5,395 15, 268

2,465
2,035
2,143
1,' 852
1,833

501 1,842
1,508
1,468
492 1,342
444 1,292
427 1,310

Total 6 months. 12, 296

2. 844 8,762

90
72
91
85
77
113
87
73
105
108
105
104

January
February
March
April
May.
June

43, 651
34,176
30, 6231
38, 487!
33, 543:
29, 408
29, 680
28,130
29,990
33,231
32,694
45, 620

N u m - Total N u m - Total Num- Total
dedede- 3
ber posits 3 ber" posits 3 ber posits

1,110 409, 232 158,042 201, 334
122
116
106
134
116
96

51,290
46, 941
57,891
53,156
37, 785
34,465

40

12, 049

1

281

2
3
8
10
7
1

9

5, 521

31

1
3, 589
1.094
4
1 1
197
3fiO
2

24,530
23,406
28,191
22, 308
19,978
17,856

690 281, 528 105, 549 136, 269

[Amounts in thousands of dollars]
Liabilities

Slumber

5,510
1,943
1,548
2,033
714
301

19,996
10, 518
22, 368
25,278
13,802
13,587

COMMERCIAL FAILURES, BY DISTRICTS

Federal reserve
district
3
7
9
12
*7
2

16,094 21, 502
10, 822 20, 317
9, 862J 18, 623
16,734 19, 094
16,157 15,710
10.092 15, 525
11,167 14, 614
12, 516 14,096
10.093 11, 243
11, 650 15,874
16,097 14,158
16, 758 20, 579

Nonmember
banks

1,921
849
1,351
1,673
714
20
6,528

1 Banks closed to the public by order of supervisory authorities or by
the directors of the banks on account of financial difficulties.
2 Comprise 8 national banks with deposits of $1,932,000 and 1 State
member
bank with deposit of $3,589,000.
3
Figures represent deposits for the latest available date prior to the
suspensions and are subject to revision when information for the dates of
suspension
becomes available.
4
Includes 2 banks for which deposit figures are not available.




1,
1,282
1,424
1,378
1,216
1,160
1,122
1,071
958
1,205
1,285
1,471

21, 773

_ _

_ _

510
447
469
494
437
435
396
449
374
450
440
494

1927

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

Liabilities

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

June,
1927

May,
1927

June,
1926

June,
1927

May,
1927

June,
1926

171
260
41
164
142
174
253
98
114
123
59
234

206
325
61
148
125
121
266
81
88
103
51
277

222
286
87
144
96
72
268
81
69
83
39
261

2,476
4,733
5,610
3f573
2, 255
2,347
4,000
1,897
1,397
1, 768
1,555
2,852

5, 536
6,798
753
3,226
5,707
1,673
5,455
539
998
2,135
1,220
3,744

3,438
6,260
2,304
3,078

1,833

1,852

1,708

34,465

37, 785

29,408

'839
6.255
'882
505
885
1,034
2, 207

AUGUST,

FEDERAL RESERVE BULLETIN

1927

579.

FOREIGN BANKING AND BUSINESS CONDITIONS
REPORT OF THE AGENT GENERAL FOR REPARATION PAYMENTS
The recent interim report of the Agent General for Reparation Payments, published under
date of June 10, 1927, deals with the operation
of the experts7 plan during the first niiie months
of the third annuity year, September 1, 1928,
to May 31, 1927, and contains full discussions
of the German budgetary position and general
financial conditions in Germany.
During the period covered in the report
Germany paid a total of 983,895,425.61 gold
marks, of which 930,800,000 gold marks were
payments on account of the third annuity.
The total was distributed among the creditor
powers as follows: France obtained 516,687,000
gold marks; the British Empire, 204,242,000
gold marks; Italy, 10,251,000 gold marks; Belgium, 72,161,000 gold marks; the United
States, 68,888,000 gold marks; and Yugoslavia, 37,737,000 gold marks; Kumania, Portugal, Greece, Poland, and Japan, a total of
26,487,000 gold marks. Of the total transfers
made, 48.73 per cent (449,303,987 gold marks)
consisted of cash transfers in foreign currencies, while 51.27 per cent consisted of deliveries
in kind and in payments of expenses for the
armies of occupation and for the various
interallied commissions.
The portion of the report (Part VI) dealing
with German credit conditions is given below:
GERMAN CREDIT CONDITIONS

German credit conditions during the last
six months have been under the influence of a
financial policy which has aimed to reduce the
inflow of foreign funds and to restrict the German money markets as far as possible to
domestic resources. This policy succeeded
only temporarily with respect to short-term
credits from abroad, but since the beginning of
1927 the inflow of long-term credits has been
practically shut off. As the flow of credits
toward Germany fell off, a counterflow of
investment credit from Germany to foreign
countries began. In part this outflow was a
reaction from the heavy borrowing abroad during the preceding two years; but in part it
marked a revival of the German capacity to
invest in foreign countries, and as such introduced a new phase of German reconstruction.
It is natural that the outflow of credit for
whatever purpose should have narrowed the




basis of credit at home, particularly as represented in the gold and devisen reserves of the
Reichsbank. The Reichsbank, however, has
stood ready to provide the foreign exchange
required, and its portfolio of domestic bills
has expanded as its stock of devisen has declined. In consequence, the general volume of
credit has continued to increase, and money
rates taken as a whole were easier, until toward
the end of this period, than at any time since
stabilization.
The relative ease of credit has had a marked
bearing upon the activity of industry and commerce and has been an important factor in the
process of recovery from the crisis of 18 months
ago. At this time, according to the available
figures, the volume of goods being produced
and passing into consumption is in general
higher than at any time since stabilization.
Internal development has resulted in lower
costs of production and in a somewhat increased purchasing power on the part of the
people. But as the internal market has
grown and the volume of production has risen
German industry has required a largely increased supply of raw materials from abroad.
For the past six months German imports as a
whole have been far in excess of German
exports, and past accumulations of credit,
largely the result of last year's foreign loans,
have been drawn upon in paying the deficit.
In due course it is to be presumed that a sufficient portion of these imported raw materials
will go out again in the form of finished exports
to provide for further imports of raw commodities. But up to the present, though public
financial policy has been directed against the
inflow of foreign funds with which imports can
be bought, no tangible increase has taken place
in exports.
During most of 1926 the Reichsbank was out
of technical contact with the banks and the
money market and had to exercise its influence
otherwise than by the rate or through its control of credit. The steps it took to reestablish
contact with the market and to reassume the
direction of credit policy have been of primary
importance in the development of credit conditions as a whole.
Limitation of foreign credits.—Up to the
end of December, 1926, the long-term foreign7
credits granted to Germany since the experts

580

FEDETtAL KESEKVE BULLETIN

plan went into operation amounted to about
3,850 million reichsmarks. Of that sum, 960
millions represented the nominal amount of the
German external loan, 1924, which was issued
in connection with the plan itself. The remainder was composed of a wide variety of borrowings for the account of the States and communes, the enterprises controlled by them, and
private industry. In addition to the funds
derived from long-term loans, the bulk of which
was transferred for use within the country,
there was the usual ebb and flow of short-term
money. It is impossible to estimate the
volume of the latter, since the successive movements in and out of Germany, determined
largely by relative interest rates in Berlin and
abroad, often canceled one another. But the
amount of foreign funds of both classes available for temporary use in the German market
was at times very large.
The inflow of foreign funds had the double
effect of rapidly expanding the Reichsbank's
stock of gold and devisen and of reducing its
portfolio of domestic bills. The influence of
the Reichsbank was correspondingly diminished, and in the autumn of 1926 its rate was
almost without effect upon the German money
market. At the same time it had possession of
a very large supply of gold and foreign currencies convertible at will into gold.
Since early in 1925 official agencies, including
the Reichsbank and the finance ministry of the
Reich, had been attempting to control foreign
borrowing, but with limited success. Meanwhile, as the German domestic market strengthened, it became possible for German borrowers
to obtain funds at home on terms which compared more and. more favorably with terms
offered by foreign bankers. By the end of
November, 1926, the domestic and foreign
markets were nearly in equilibrium and as
the opportunity for long-term borrowing at
home increased borrowing abroad diminished.
There remained, however, a tax preference
operating nominally in favor of the foreign
lender, and this the Finance Minister proceeded to remove. Under date of December 4,
1926, the exemption from income tax formerly
accorded to German issues placed abroad was
suspended, except for certain loans then awaiting consideration. The nominal effect was to
make the income from future German loans,
whether placed in domestic or foreign markets,
subject without distinction to a deduction of
10 per cent collected annually at the source.
The actual effect, however, was to raise up a
tax barrier against foreign loans, which con-




AUGUST,

1927

tinued until early in June, when the Finance
Minister announced that he was again prepared in certain cases to recommend tax
exemption for loans made abroad.
The gradual awakening of the German
domestic market, and its increasing power to
take care of the long-term credit needs of both
industry and the various units of Government,
was a development of great constructive importance. The withdrawal of the tax exemption
marked the point at which the domestic longterm market for the time being at least became
self-sustaining; it did not supply the cause,
which was to be found rather in the gradual
filling up of the,reservoir of credit from foreign
borrowings and domestic savings. With the beginning of 1927 long-term foreign loans became
of relatively slight importance, and total German
loans placed abroad during the first four months
of the year amounted to about 94 million reichsmarks, whereas similar issues offered on the
domestic market amounted to 712 millions.
The cheapening of credit and the broadening
of the domestic market was fully in accord
with Reichsbank policy. On January 11,
1927, the Reichsbank reduced its discount
rate from 6 to 5 per cent. The 6 per cent
rate had been in effect since July 6, 1926, and
during most of that time had been of little or
no consequence to the money markets. The
bill rate, as well as the rates for stock exchange
money, ranged far below the Reichbank rate.
The reduction of the bank rate at the beginning of 1927 was followed by a further decline
in market rates for money. In part this was
the result of the discount rate reduction itself,
but it was also the consequence of seasonal
forces which ordinarily bring cheaper money
in the first weeks of a new year.
The discount rate remained at 5 per cent
until June 10, 1927, when it was increased to
6 per cent.
The outflow of funds.—The immediate consequence of the easy-money conditions at the
beginning of 1927, which the reduction of
the bank rate had explicitly defined, was a
rapid outflow of funds from Germany. Thus
the situation as it had existed for many months
was reversed—the inflow of foreign funds was
checked and an outflow in very substantial proportions began. Probably some part of this
outflow would have taken place whether the
Reichsbank had lowered its rate or not; but it
is doubtful whether the outflow would have
reached such magnitude or lasted for so long a
time if it had not been encouraged by the
Reichsbank rate.

AUGUST,

1927

FEDERAL RESEKVE BULLETIN

The outflow took a number of forms, some
of which had been manifested tentatively
during the previous year. The first, not
perhaps in the amount of money involved but
in its potential importance, was the growth of
German investments abroad. As early as the
spring of 1926 Germans had begun to repurchase
bonds of their own issues sold in foreign countries. As the year advanced such purchases
v/ere reported to be more numerous. The
first piece of direct foreign financing which
attracted attention was a purchase in June,
1926, of a substantial amount of treasury bills
offered by a foreign government. Later in the
year the formal stabilization of the Belgian
currency and the steadiness of the French
franc began to attract German capital to Belgium and France. In part the German interest
in those markets was speculative and temporary, but in the main it arose from the
expectation of a rise in security values over a
term of years. While it is manifestly impossible to estimate the gross amount of the
German purchases of French and Belgian
securities, competent banking opinion has
placed them at a very substantial figure.
There have also been substantial German
investments in Italy and credits to eastern and
southeastern Europe, including a long-term
merchandise credit granted to Russia under
the partial guaranty of the Reich and the
States. This credit, though involving no
export of funds as such to Russia, was extended
by German banks and industry. It amounted
in the beginning to 300 million reichsmarks,
and was later increased to 366 millions, which
was fully committed by the end of March,
1927. In addition to the foregoing, there have
been important participations by German
bankers in various new issues of foreign industrial securities offered internationally. The
portions of such issues allotted for German
subscription have on the whole been well taken.
A second important class of funds moving
into and out of Germany is made up of the
various types of short money. Under the
conditions prevailing in the money markets of
the world in recent years, such funds have
moved from market to market with great
rapidity, the result, no doubt, of great concentrations in a few markets of liquid capital
seeking investment in short-term obligations
payable in gold. The main factor determining
the direction in which such funds flow is, of
course, the relative rates of interest. Taking
the year 1926 as a whole, for example, the
movement of short money was away from




581

Germany, where interest rates were falling and
where there was an ample supply of foreign
funds derived from long-term loans. In substance a very large part of the short-term indebtedness of Germany was converted through
this process into long-term debt. The sharp
drop of interest rates at the beginning of 1927
accompanying the reduction of the Reichsbank
discount rate caused a further outflow of shortterm money, and in January it was reported
from London that German funds were again
seeking short investment in that market.
This movement, however, soon came to an
end, and by the end of February rising interest
rates, notably on the Bourse, were again
attracting foreign money to the Berlin market.
For the most part this inflow, which has lasted
more or less persistently up to the present, has
been of an especially undesirable nature. It
introduced funds which were offered primarily
for the purpose of financing active stock market
speculation and which as short-dated debt
w^ere peculiarly susceptible of being withdrawn either on account of unfavorable developments in the German market or in that
of the lender. It is of more than passing
importance to observe that, except for a very
brief period at the beginning of 1927, the
Reischsbank discount rate had very little to do
with the inflow of foreign short-term money.
Such funds have moved in accordance with
money rates in the market, and whenever the
Reichsbank rate was out of contact with the
market it was without control over the flow
of short foreign funds either in or out.
Foreign investment and speculation in the
German stock market have also played an
important part in the flow of funds. About a
year ago rising prices on the Bourse began to
attract foreign participation, which increased
rapidly as the market continued to rise. It is
impossible to estimate the amount of money
brought to Germany for this purpose, but it is
obvious that the withdrawal of profits has
made a large and unproductive drain upon the
foreign exchange reserves.
Of all the factors entering into the outward
flow of funds since the first of the year, without
doubt the most important was the adverse
foreign trade balance. In the last two months
of 1926 German imports of merchandise exceeded exports by 388 million reichsmarks, and
in the first four months of 1927 the adverse
balance amounted to an additional 1,175
millions. In these six months, in other words,
the deficit in the foreign trade amounted nearly
to the entire proceeds of the long-term foreign

582

FEDERAL RESERVE BULLETIN

loans placed during the year 1926. Obviously,
those loans provided a stimulus to imports,
and in some sense the present heavy deficit in
the trade balance is a delayed reflection. of too
extensive foreign borrowing. But it is clear
that the deficit could not have reached such
proportions if credit conditions in Germany
during the time.it was in process had not favored it. A powerful dominant factor in this
direction was the Reichsbank's discount rate,
which was decidedly encouraging to domestic
credits, the proceeds of which were directly
or indirectly convertible into foreign exchange.
The remaining form of capital outflow mentioned here is reparation payments. Reparation transfers, by their very nature, necessarily
reduce the inflow of funds if the current is
toward Germany, or increase the outflow if
the current is away from Germany. In these
effects it is not essential whether the payment
of reparations takes the form of a transfer in
foreign currencies or of deliveries in kind,
except that deliveries in kind represent to
some extent exports which Germany would
not otherwise make.
The reversal in the current of money resulting from the various movements outlined above
was promptly reflected in the foreign exchange
rates. Sterling at the end of December was at
or about the point at which it was profitable to
ship gold from London to Berlin, and some such
shipments had in fact been made. Immediately after the first of the year, however,
sterling began to rise, and by the middle of
January the exchange on London stood at
a marked premium. Simultaneously the dollar,
which for a brief period had been below parity
with the reichsmark, rose nearly to the goldexport point. This condition has in general
continued up to the present, and such tendencies to recover as manifested themselves from
time to time became more feeble as the period
advanced. . . .
It should be added here
that the last remaining legal regulation governing foreign-exchange transactions was removed
by decree on February 22, 1927, when the rule
restricting such transactions to legally authorized banking institutions was abolished.
The effect of the outflow of funds upon the
Reichsbank's reserves was immediate. While
the German commercial banks naturally maintain balances abroad, any unusual demand for
foreign funds is bound to be passed on to the
Reichsbank as the holder of the gold and foreign
exchange reserves of the country. The Reichsbank has stood ready ever since June, 1924, to
provide foreign exchange when the market
itself was unable to supply it, but such calls




AUGUST,

1927

heretofore had not made much visible impression upon the Reichsbank's reserves. On the
contrary, the Reichsbank on the whole had
received far more foreign exchange than it was
called upon to provide, and its reserves in consequence showed a large net gain. At the end
of December, 1926, the Reichsbank reported
1,831 million reichsmarks of gold and 519
millions of devisen. The total, 2,350 millions,
was the highest figure yet reported and represented an increase of about 1,500 millions since
the bank was reconstituted in October, 1924.
In addition to the devisen reported as reserves,
the Reichsbank possessed a large stock of bills
and other items payable in foreign currencies,
which it did not report separately but merged
with its other assets. This practice of carrying
unreported devisen made it impossible during
the time of accumulation to estimate the
growth of the Reichsbank's stock of foreign
exchange, and at the beginning of 1927, when
funds began rapidly to flow away from Germany, made it equally impossible to tell the
rate at which the stock was declining. On
May 31, 1927, the reported gold and devisen
reserves of the Reichsbank amounted to 1,894
million reichsmarks, a fall since December 31,
1926, of about 450 millions. The unreported
devisen declined in the same period by somewhat more than the same amount, bringing the
total decline to about one billion.
Reichsbank credit policy.—The loss of gold
and devisen has been met, without causing
thus far any general contraction in the
volume of credit, by the increase—taking
account of the two items in the Reichsbank
statement entitled "Bills and checks" and
" Collateral loans." The Reichsbank has ordinarily carried an unstated amount of its
unreported devisen in the item " bills and
checks," which during the autumn of 1926
were of sufficient volume to account for 20 to
25 per cent of the loans and discounts. After
the beginning of 1927 the calls upon the
Reichsbank for foreign exchange were such
that these unreported devisen were gradually
drawn off, but the general level of loans did
not fall correspondingly. On the contrary,
except for a seasonal decline after the Christmas holidays, the volume of Reichsbank credit
has steadily risen, and the portfolio of bills
and checks plus the collateral loans stood at a
higher point on May 31, 1927, than at any
time since the Reichsbank was reconstituted
on October 11, 1924. In substance, it appears
that the Reichsbank has replaced with domestic
credit the full amount of gold and devisen
which have been withdrawn from its reserves

AUGUST,

1927

FEDERAL RESERVE BULLETIN

and from its unreported holdings of foreign
currencies. Whereas the Reichsbank's stock
of gold and devisen, reported and unreported,
is about 1,000 millions lower than at the end
of last December, the volume of domestic
credit granted by it is about 1,000 millions
higher than it was at that time.
The effect of the Reichsbank's credit policy
upon the German economy as a whole has
already been indicated. In general, the stimulation which the long inflow of foreign credits
had given to business was retained even
though a portion of the foreign funds flowed
out again. I t remains to speak of Reichsbank
credit policy as it affected the stock market.
Share prices on the Berlin Bourse rose with
very little interruption from the beginning of
1926 until May, 1927. In part the rise was a
reflection of progressively easier money conditions attributable in considerable degree to
the inflow of foreign funds either as loans or
for the specific purpose of stock exchange
speculation and investment. In part, also,
particularly in the earlier stages, the rise reflected a recovery of confidence in the earning
capacity of German industry. But, as was
said in the last report, prices reached by a
number of leading stocks even as long ago as
last November were "less a reflection of probable dividend return than a discounting of possible speculative profits." In fact, the prices
of many stocks which paid no dividends at all
were continually rising. By the end of 1926
the average dividend return on shares listed
on the Berlin Bourse at the prices then prevailing was barely 3 per cent. This compared
with an average interest rate on bonds of 734
to 7J/£ per cent.
The rapid and long-continued rise of stock
prices, far from being a proof of strength, was
an element of weakness in the German
economy as a whole. I t was bound to bring
undesirable credit to the market from abroad
which after due time would be withdrawn
along with the profits of speculation. These
profits, w^hen transferred abroad, were necessarily a sheer loss to the German credit system.
The Reichsbank, in determining its rate policy,
was fully conscious of these adverse aspects of
stock-market speculation. I t refrained from
lowering its discount rate during the second
half of 1926 in order to avoid giving any further stimulus to speculation, and when it
finally acted on January 11, 1927, it left unchanged at 7 per cent the so-called Lombard
rate—that is, the rate on collateral loans, a
55972—27
3




583

type of borrowing often employed for short
accommodation over stock-market settlement
dates. The very reduction of the discount
rate, however, was so definitely an indication
of easier credit conditions that it inevitably
accelerated and sustained the rise in stock
prices which began at that time and continued
through January and February.
By the end of March the Reiphsbank had
fully achieved its purpose of regaining contact
with the money market. I t had a large and
increasing portfolio, a good share of its devisen
had already been exchanged for domestic bills,
and its rate was in relation with other money
rates. By the end of April it was in a fair way
to lose the control thus acquired, not because
its rate was above other mpney rates, as was
the case during the previous autumn, but
because its rate was below other important
rates with the single exception of the openmarket bill rate. That the Reichsbank rate
was still slightly above the bill rate was not a
matter of any significance, because the market
for bills remains strongly under the influence of
the Reichsbank itself and the bill rate is largely
determined by the buying rate at the Reichsbank.
In these circumstances, if the Reichsbank
was to avoid losing control of the market
altogether, it had either to raise its rate or,
alternatively, to attempt some form of direct
action against excessive users of credit. I t
chose the latter expedient and set in motion
through the Berlin banks measures against
stock-market speculation, which it deemed to
be largely responsible for the money conditions
then prevailing, and which, as has already been
seen, was attracting short-term foreign funds
to the market. I t took this course in preference to raising the rate on the theory that a
contraction of stock exchange credits wxmld
increase the liquidity of the banks without
exerting credit pressure on commerce and industry or causing a general rise in the cost of
credit. I t appears to have been moved also
by the thought that an increase in its discount
rate might again attract foreign funds in large
volume to Germany.
On May 12 the principal Berlin banks and
banking houses, acting in general agreement
with the Reichsbank's analysis of the situation, decided upon a radical curtailment of
stock-exchange credit, and published the following statement next morning:
The members of the Berlin Bankers' Association
(Stempelvereinigung) have agreed gradually but ap-

584

FEDEEAL EESEKVE BULLETIN

preciably to reduce the funds loaned for report and
lombard purposes and for other advances on securities. They will therefore begin by making a reduction
of 25 per cent in the funds available for report and
lombard purposes on the Bourse by the date of settlement at the middle of June and will undertake further
reductions on subsequent dates of settlement. The
same procedure will be adopted toward customers.
It is expected that lenders of money not belonging to
the said association will take similar action.

The effect of this very direct statement of
intention caused a decline in stock prices,
which for one day assumed the proportions of
a panic. Subsequent movements were more
restrained, and at times prices recovered somewhat; but at the end of May the general
level of stock prices on the Berlin Bourse
was not far from where it stood at the end of
1926.
. . .
In taking direct action to contract the use
of credit on the Bourse the Reichsbank
adopted an unusual method in preference to
the more customary method of raising the
bank rate. Rate action was avoided temporarily, largely on the ground that a higher
bank rate would attract foreign funds with all
of their implications. But at the same time
the bank rate was permitted to remain the
lowest representative rate in Germany. The
outflow of reserves continued, and the volume
of Reichsbank credit reached its highest point
since stabilization. At the end of May, 1927,
while the Reichsbank reserves remained amply
sufficient to provide the legal proportion of 40
per cent against the Reichsbank's own note
issue, they fell slightly below that proportion
if the Rentenbank notes, which have no gold
cover of their own and are an undeclared charge
upon the Reichsbank's reserves, are taken into
account.
These changes introduced a new phase of
credit conditions in Germany. The position
of the Reichsbank has become substantially
reversed from what it was six months before;
whereas its reserves were then high, now they
are low; and whereas its loans were then low,
now. they are high. The bank rate was ineffective then and it had become ineffective
again, but with the difference that in November
it was above the market and in April and May
it was below the market. The size of the
Reichsbank's portfolio, however, gives it the
undoubted power to regain control of the market at such time as it deems action to be necessary for the protection of its reserves; and it
has now taken action in this direction by raising its discount rate to 6 per cent, effective
June 10, 1927.




AUGUST,

1927

The administration of the public funds.—
The relation of the public and quasi-public
funds to the money market has been for many
months a complicating and uncertain factor
with which Reichsbank credit policy has had
to reckon. At times the offering of these
funds wherever they would earn the most
satisfactory interest return has been sufficient
to undermine Reichsbank policy and has had
an important part in making the bank rate
ineffective. At other times the rapid withdrawal of these funds from the market has
worked in the opposite direction and has magnified difficulties already existing. In general,
the public funds have tended to exaggerate
money market tendencies, and so have worked
exactly as a central supply of funds should
not act. . . .
The event which raised once more the question of public funds in the case of the Reich
was the issue in February, 1927, of a Reich
loan in the nominal amount of 500 million
reichsmarks. The Finance Minister had had
authority for some time to borrow money to
meet expenditures of the class chargeable to
the extraordinary budget, but the highly favorable cash position of the Reich had permitted
it to postpone borrowing up to that time. Even
at the beginning of 1927, though its cash balances were much reduced, the treasury was not
faced with any pressing demands requiring a
large loan; on the contrary, the proceeds of
the loan were desired for future use, and its
size corresponded with the requirements of the
year 1927 as estimated by the Finance Minister. The decision to place a long-term loan
at that time was based upon conditions as they
then existed on the money market, which were
referred to as follows in the semiofficial announcement of the issue:
The reduction of the discount rate of the Reichsbank
to 5 per cent and the satisfactory condition of the
money market have now induced the Reich Finance
Minister to take advantage of what appears to be a
particularly favorable opportunity and to float a Reich
loan of 500 million reichsmarks bearing interest at .5
per cent.

Of the 500 millions nominal amount, 300
millions were underwritten by a syndicate of
banks headed by the Reichsbank and were
offered to the public at 92. The remainder was
reserved for subscription by various public
and semipublic institutions, including the
German Railway Co. and the post office, on
the understanding that for the time being such
bonds would be withheld from the market.
The terms of the issue provided that no drawings for sinking fund purposes would take place

AUGUST,

1927

FEDERAL RESERVE BULLETIN

before 1934, and that the loan as a whole could
not be called for redemption before 1937;
amortization was to be completed by 1959.
The Reich loan was nominally a success.
But while it was possible for the Reichsbank
to announce an oversubscription of the 300
millions tranche when the books closed on
February 11, this result was accomplished only
through the assistance of public and semipublic institutions. The loan was officially
admitted to trading on the Bourse on April 5.
Steps had been taken to limit offerings during
the first months of trading by making a certain
portion of the bonds sold to the public nontransferable for six months. Nevertheless,
enough were offered on the Bourse to cause the
quotation to fall below the issue price on the
next day after trading opened. For some
weeks the issue was officially supported at 90,
but during May, in connection with the
strained conditions on the Bourse, there was a
further small decline to 89.
The effective proceeds of the tranche issued
to the public were about 270 million reichsmarks. The Reich had no immediate occasion
for funds in such amount, and the finance
ministry placed somewhat more than half at
interest with the Gold Discount Bank and the
remainder with the Reichs-Kredit-Gesellschaft
and the Seehandlung.
The Reich loan thus recreated the problem
of the public funds on a basis substantially
identical with that of 1925 and 1926, except
that now a portion of the inactive funds were
placed with the Gold Discount Bank, not
previously a depositary. The loan is responsible
in this way for bringing about an artificial
repetition of a phase of German public finance
which had worked adversely to the money
market, to the Reichsbank's effective relation
with the money market, and in a broad sense
to the welfare of German economy itself. This
result is much to be regretted, all the more so
as the Reich's need for funds, if met in other
ways, might have restored the normal relation
of the treasury to the money market and made
a beginning with the final solution of the public
funds problem. According to accepted practice, the purpose to be served by the loan could
have been served much better by a series of
offerings of treasury bills, issued as and when
funds were required, and taken up later, if
necessary, by issues of bonds. Such a contingencjT- was foreseen over a year ago, when
the program of tax reduction made it probable
that the treasury surplus would become
reduced and finally disappear. In order that
the Finance Minister could carry that program




585

through without danger to his cash position,
an amendment to the Reichsbank law was
proposed and passed, becoming effective on
July 14, 1926. Under that amendment short
treasury bills of the Reich, when brought to
the Reichsbank from the market, were made
eligible for rediscount or purchase. Thus the
Reich was assured of a market for its offerings
of short obligations.
Conditions in the German money markets
last February were singularly appropriate for
an issue of treasury bills. There was a surfeit
of short money, and the long-term market, on
the other hand, was already showing signs of
strain under the numerous issues offered in
preceding months. The stock market was in
a state of speculative activity, stimulated by
the large supply of funds flowing there for
short-term use. To this supply of funds the
temporarily inactive money of the public or
semipublic enterprises contributed. Assuming that it was necessary for the Reich to
borrow at that time at all, an issue of treasury
bills would have served not only to withdraw
excess money from the short-term market, but
to provide a convenient and altogether liquid
investment for those public enterprises, as, for
example, the railway company, which had
funds seeking employment. Moreover, the
long-term market would have been left in a
better position to take care of the needs of
other borrowers.
In point of fact, however, the Reich loan
removed from the long-term market an exceptionally large volume of funds, and then put
the Reich under the necessity of seeking temporary investment for these funds in the
short-term market, thus aggravating the oversupply of funds in that market. Furthermore,
instead of simplifying the administration of
the public funds, it revived one phase of that
problem which had been in a fair way to
disappear. In due course, no doubt, as the
Reich disburses these funds, there will be a
reversion to the position as it existed last
January, and the opportunity will recur to
work out a borrowing program which will fit in
with a comprehensive settlement of public
funds administration.
There has been little change since the last
report in the financial practices of the public
and quasi-public enterprises. A trial arrangement has been entered into, however, which
modifies somewhat the practices of theVerkehrsKreditbank, and accordingly deserves attention.
The Verkehrs-Kreditbank is maintained by
the German Railway Co., which owns threequarters of the capital stock. The railway

586

FEDERAL RESERVE BULLETIN

company is practically the bank's only depositor. On December 31, 1926, the deposits
of the Verkehrs-Kreditbank amounted to 529
million reichsmarks, as against 352 millions at
the end of the preceding June. Its funds were
redeposited with other banks and banking
houses of great variety or were invested in
discounts. In addition the bank carried on
the function for which it was originally established—that of financing freights on credit.
The large concentration of funds in the
hands of the Verkehrs-Kreditbank made it a
very important factor in the money market,
and since these funds were managed chiefly
for the purpose of profit, their administration
frequently ran counter to the policy of the
Reichsbank. Negotiations have been carried
on between the railway company and the
Reichsbank looking toward the development
of a workable plan agreeable to them both,
but up to this time these have been only
partially successful. The tentative arrangement, in general outline, leaves in the hands
of the Verkehrs-Kreditbank the management
of the railway company's active cash and the
funds needed for financing freights on credit;
the remainder, consisting of surplus funds not
required on short notice, are to be deposited
with the Gold Discount Bank at a rate slightly
below that which the Verkehrs-Kreditbank
has been in a position to earn.
The arrangement marks some advance toward consistent administration, since it tends
to remove the Verkehrs-Kreditbank as a factor
in the money market; but it introduces a new
complication by bringing in the Gold Discount
Bank and will be reviewed toward the end of
the year in an effort to reach a broader arrangement that is generally more satisfactory.
No progress seems to have been made with
the Reichs-Kredit-Gesellschaft. Its general
position has already been summarized in
previous reports, but it still publishes no
statement of condition other than an annual
balance sheet, and accordingly many of its
activities remain invisible. It is indirectly
owned by the Reich itself, and apparently
serves to some extent as a depositary for the
funds of the Reich and as a medium for carrying on other banking business for the Reich.
It also continues to conduct an ordinary
banking business in competition with the
private banks, and even in competition with
the Reichsbank itself, to the extent that it
serves as a bank of rediscount for private
banks and bankers.
The Gold Discount Bank, which is owned in
full by the Reichsbank, assumed a function




AUGUST* 1927

which it had not previously exercised when it
became a depositary for funds belonging to
the Reich and the German Railway Co. In
undertaking this new business the Gold Discount Bank acted as the instrument of the
Reichsbank, not permanently but as an interim
means for bringing a portion of the public
funds into the field of the Reichsbank's control.
The Reichsbank as long ago as July, 1924, expressed the intention of liquidating the Gold
Discount Bank, and it still adheres to that
intention. But in the meantime the Reichsbank desires to frame a workable plan for
bringing the management of the public funds
as a whole into harmony with its credit policy.
Since the Gold Discount Bank began operations on April 16, 1924, it has been exclusively
under the direction of the officers of the Reichsbank, of which, practically speaking, it is a
department. Whereas the Reichsbank law
carefully delimits the functions of the Reichsbank to business appropriate to a central bank,
the separate corporate existence of the Gold
Discount Bank has enabled the Reichsbank
to act through it in performing functions which
the Reichsbank could not exercise if it acted
in its own name. These supplementary functions have resulted in extending the business
of the Gold Discount Bank into directions not
contemplated when the bank was founded.
The Gold Discount Bank was organized as
a bank of issue, but that function was never
exercised. The associated function of granting credits in foreign currencies for the benefit
of German foreign trade, however, was exercised largely and successfully. After the
reconstitution of the Reichsbank in October,
1924, this function became less important and
the Gold Discount Bank passed into the stage
of liquidation, which was suspended in March,
1925, on the ground that the bank was needed
to stimulate German foreign trade, then heavily
adverse.
During 1926 the export credit business of the
Gold Discount Bank again diminished, but in
the meantime it had undertaken new functions in other directions and its liquidation accordingly remained in suspense. Early in
January, 1926, the bank agreed to buy from
the Rentenbank-Kredit-Anstalt, the central
bank for agriculture, farm-mortgage bonds
maturing in three to five years and carrying
interest at 7 per cent, which was well below
the then prevailing rate. By the end of 1926
its holdings of such bonds amounted to about
220 million reichsmarks. While the Gold Discount Bank had considerable assets of its own,
most of which w^ere rediscountable a t . the

AUGUST,

1927

FEDERAL RESERVE BULLETIN

Reichsbank, these purchases placed some burden upon its resources. Accordingly, in December, 1926, it offered in the market its own
one-name bills known as Solawechsel, with a
maturity of three months. The volume of
bills sold at that time amounted to ,72.6 million
reichsmarks, of which 50 millions were sold to
the Verkehrs-Kreditbank as an investment for
railway funds. This operation achieved a
second object in withdrawing a substantial
volume of funds from the short-term market
which at that time was oversupplied. In
January a further 20.5 millions of Solawechsel
were issued, maturing in April. All have now
been repaid with the exception of those held
by the Verkehrs-Kreditbank which, at the request of the latter, were renewed and are due
on June 14, 1927.
The acceptance by the Gold Discount Bank
of deposits from the Reich and the German
Railway Co. naturally has relieved it from
selling further amounts of its one-name bills
in the market. At the same time the Gold
Discount Bank, in taking on the obligation to
pay interest on these deposits, assumed an
obligation to earn the money- with which that
interest could be paid. Consequently, its
functions have become more and more like
those of an ordinary bank, with agricultural
bonds and discounted bills on the one side and
interest-bearing deposits on the other. On
May 31, 1927, according to its published statement, which is made up in terms of sterling, it
had among its assets about £7,900,000 of bills
and checks and £14,000,000 of securities,
mostly the bonds of the Rentenbank-KreditAnstalt; and among its liabilities about £4,900,000 of day-to-day obligations, mainly
demand deposits, and £6,600,000 of obligations subject to notice, mainly time deposits.
The Reichsbank, in agreeing that the Gold
Discount Blink should accept these deposits
at interest, used the Gold Discount Bank for a
function wThich it could not exercise itself.
The law authorizes the Reichsbank itself to
receive onry noninterest-bearing deposits, in
recognition of the fundamental rule of central
banking that a bank of issue must be free to
govern its discount policy according to the
market and without regard for earnings. The
experts' plan, in the various sections quoted
in the Agent General's Report for May 30,
1925, had fully contemplated, however, that
the public and quasi-public funds would be
placed with the Reichsbank, in accordance
with the general principle that a bank of issue
can not fulfill its functions with respect to credit




587

and the currency unless it has control of the
public funds.
The arrangement by which funds of the
Reich and the German Railway Co. are placed
at interest with the Gold Discount Bank gives
the Reichsbank only nominal control over
their disposition. The Reichsbank, through
its subsidiary, has had to give an indirect
guaranty that these deposits will earn interest.
A central bank in the long run can not
directly or indirectly guarantee interest on
funds placed under its control and at the same
time be free to manage its discount policy
with an eye single to credit and the currency.
If a rate of interest is guaranteed, it presumably must be earned, which means that the
funds must be employed irrespective of market
conditions and irrespective of whether the
credit policy of the Reichsbank inherently
favors their investment or not.
The Reichsbank regards the use of the Gold
Discount Bank as only a partial and interim
solution of the problem of public-funds administration. The final solution can not be based
on the isolated advantage of separate parts of
the public service by way of interest return or
otherwise; it must take into account the
common advantage of a unified credit policy
to German economy as a whole. There is no
reason in the law or in principle why firm
administrative action can not now bring the
public-funds problem to a definitive solution
on such a basis as will produce a reasonable
return not necessarily month by month, but
probably year in and year out, and at the
same time insure management consistent with
the policy of the Reichsbank, which, after all,
has the final responsibility toward credit and
the currency.
Volume of credit.—The volume of credit, as
measured by the capital issues placed in the
domestic market and the loans and deposits
of the banks, has risen further in the last six
months. During this period, as distinguished
from any other of equal length since the experts' plan went into effect, growth has taken
place without the stimulation of inflowing
foreign loans; on the contrary, the direction
of the flow of funds has been outward. As the
period progressed, particularly after the issue
of the Reich loan in February, the power of
the domestic market to absorb new long-term
issues materially diminished, and late in the
spring steps were taken looking toward some
renewal of foreign borrowing.
Thus far in 1927 foreign borrowing has been
of slight importance. Whereas in 1926 Ger-

588

FEDERAL RESERVE BULLETIN

many borrowed abroad in the nominal amount
of nearly 1,700 million reichsmarks, during the
first four months of 1927 foreign loans have
amounted to less than 94 millions. A substantial fraction of this year's borrowing was
the result of banking arrangements made last
year, and on that account does not reflect
credit conditions prevailing in Germany at the
time the loans were placed. . . .
In contrast with the limited volume of
foreign loans issued during the first four
months of this year was the large amount of
long-term loans issued at home. Up to the
early part of 1926 there was practically no
market in Germany for long-term loans, but
in the course of that year formal domestic
issues of bonds and notes of varying maturities
aggregated about 960 million reichsmarks.
In addition, less formal issues were reported
up to a total of about 380 millions, maldng a
total for the year of approximately 1,340
millions nominal amount. In the first four
months of 1927 public offerings of bonds and
notes were in the nominal amount of more
than 700 million reichsmarks, or more than
half the total for the whole year 1926. . . .
The Reich loan offered in February in the
nominal amount of 500
million reichsmarks, of
which 300 millions wrere offered to the public,
marked the turning point in the market for
new issues. This loan, as has already been
seen, was not well taken, and shortly after
being quoted on the Bourse fell below the issue
price. It is noteworthy that during the first
two months of 1927 the loans offered to the
public amounted to about 600 millions, but
that in the next two months the offerings fell
to about 100 millions. In May there were
practically no long-term public issues at all.
The loans of private enterprises amounted
during the last 16 months to only 20 per cent
of the total; the rest were loans of the Reich,
the States and their political subdivisions,
and the enterprises owned or controlled by
them. . . .
Except for a brief period of interruption in
the early part of 1926, the volume of credit
reported bimonthly by the private banks has
continued to expand ever since stabilization.
Statements as of April 30, 1927, for the six
largest reporting banks, which together represent about three-fourths of the nonpublic
banking strength of Germany, indicated that
credits had increased in the six months since
October 31, 1926, by over a billion of
reichsmarks, or about 20 per cent. The
published statements do not segregate credits




AUGUST,

1927

so as to show what portion of the increase was
was due to stock-exchange loans, though the
expansion of such loans offered the occasion
for the contraction of credit announced in
May which precipitated the decline on the
stock market. . . ,
The volume of loans of the principal State
banks appears to move with less regularity
than is shown by the loans of the large private
banks. For several months prior to August
31, 1926, there was little change in the volume
of public bank credit. Between that date
and February 28, 1927, the loans of these
banks increased substantially, but in the next
two months the change was again
negligible. . . .
The loans of the Girozentralen, the central
institutions through which the various savings
offices and communal banks are interrelated,
have continued to increase, whereas there have
been only inconsiderable changes in the deposits. This apparent disproportion is owing
to the practice of the Girozentralen of granting credits at fixed term out of the proceeds of
long-term loans.
During the six months ended April 30, 1927,
the volume of savings deposits in Germany, as
reported by the Sparkassen or savings offices,
increased over one billion reichsmarks. The
increases reported each month were above the
average month-to-month increase in 1926, and
in the early months of 1927 the increments
were higher than at any time since stabilization. Practically all the savings deposits now
reported have been accumulated in a little
over three years; but they are still only 20
per cent of the pre-war volume. . . .
The German currency.—The decline in the
Reichsbank's stock of gold and devisen has
had no effect thus far upon the volume of the
currency. On the contrary, the circulation
during the last six months has continued to
rise, thereby maintaining the tendency which
has prevailed since stabilization. The increase in the circulation has on the whole
been remarkably steady, and periods of business inactivity, as for example in the winters
of 1925 and 1926, have affected the circulation rather by retarding the rate of increase
than by causing a reduction. In the main, the
rise from month to month has been progressive, and the weekly and seasonal variations of
one year have been repeated during the next
but on a higher level. The maximum for
1926 was reached as usual at the end of
December; the total of 5,830 millions has not
yet been exceeded, and it was still somewhat

AUGUST,

1927

FEDEKAL EESEEVE BULLETIN

below what was regarded as customary before
the war, when the total German circulation
fluctuated around 6,000 millions.
The notes of the Reichsbank have necessarily furnished the main fluctuating element
in the circulation, both as regards weekly
variations in the volume of currency and the
year-to-year increase. During the last six
months the Reichsbank circulation has ranged
from 250 to 600 millions above the 1926
monthly average. In addition to this element of increase, the Reich has been issuing
further amounts of coins, the amount of which
in actual circulation at the end of April was
about 60 millions higher than six months previously. Some demand for new coins was
created during 1926 by the retirement of
Rentenbank notes of the 1 and 2 rentenmark
denominations, and, when notes of the 5 rentenmark denomination pass into retirement,
further issues of coins can probably be absorbed by the public. But the supply of unissued coins held by the Reichsbank stood at
the end of May at about 98 million reichsmarks,
a slight reduction from the stock of 115 millions
on hand at the end of October, 1926. To
some extent a supply of small coins is needed
for till money at the Reichsbank and its
branches, but in large measure the present
stock must be regarded as redundant. In this
sense it represents an unauthorized credit
without interest from the Reichsbank to the
Reich.
The notes of the Rentenbank have represented since the first of the year about 20 per




589

cent of the total German circulation, whereas
during 1926 they amounted to about 25 per
cent and in 1925 to 34 per cent. This change
is due not only to the larger volume of currency in general but to the decreasing circulation of Rentenbank notes, which have been in
process of redemption since the plan went into
effect. Up to the end of April, 1927, the total
redemptions amounted to 980 million rentenmarks, of equal value with reichsmarks. Of
this amount 379 millions were redeemed during
the last six months, chiefly through the repayment of 293 million rentenmarks on November
30, 1926, representing the year's maturity of
agricultural bills. There remains one further
installment of agricultural bills in the same
amount, due on November 30, 1927.
Rentenbank notes are an artificial element
in the German currency and, since they have
no gold reserve of their own, are necessarily an.
undeclared charge against the gold reserves of
the Reichsbank. Their retirement has led
heretofore to a counterexpansion of other elements in the circulation, mainly of Reichsbank
notes, and further retirements are likely to
work in the same direction. But as long as
they exist they must be taken into account
in
testing the adequacy of the Reichsbank5s reserves. At the end of May, 1927, a time of
lowered reserves and of high circulation, the
gold and devisen reserves of the Reichsbank
were a fraction below 40 per cent of the joint
note circulation of the Reichsbank and Rentenbank, thereby reflecting in vivid fashion the loss
of reserves which has characterized the period.

590

FEDEKAL RESERVE BULLETIN

AUGUST,

1927

ANNUAL REPORT OF THE BANK OF ITALY
The annual report of the Bank of Italy for
1926 was presented to the meeting of stockholders on March 31, 1927. The following
extracts from the report deal with economic
and financial developments in Italy during the
past year, including in particular the account of
banking reform:
Significant features of the Italian financial
situation are as follows: First, the satisfactory
condition of the budget; second, the systematic
conversion of the internal debt, the volume of
which is being gradually reduced; third, the
reduction in note circulation; and, finally, the
adoption of a well-planned scheme of banking
reform, from w^hich public finance and credit
organization should alike benefit.
Public finance.—The budget for the fiscal
. year 1922-23 closed with a deficit of 3,000,000,000 lire, which was reduced to 418,000,000 lire
at the end of the fiscal year 1923-24. In the
following year 1924-25, the deficit was converted into a surplus, which amounted to
417,000,000 lire. Even more satisfactory were
the financial results for the year 1925-26, which
closed with a favorable balance of 2,268,000,000
lire. This very large figure, however, was
obtained by the new system of including
carried-over surplus among the revenues, in
accordance with recent royal decrees, and the
order of the Minister of Finance.
In the first eight months of the present
financial year the actual surplus was 237,000,000 lire as against the original estimate of
126,000,000 lire. Taking into account, however, the fact that expenditures charged to this
period include 333,300,000 lire, the eight
months proportion of 500,000,000 lire assigned
by law for the annual reduction of bank note
circulation issued for account of the State and
166,700,000 lire for railway construction, an
item which had previously been charged to
a separate account, the surplus should actually
have amounted to 737,000,000 lire.
Currency.—During the past year the total
volume of bank notes outstanding declined
from 19,349,700,000 lire to 18,340,100,000 lire,
while the amount of currency notes issued
directly by the treasury was reduced from
2,100,000,000 lire to 1,793,000,000 lire. Altogether there was an actual reduction of 1,316,600,000 lire, and the amount has been reduced
still further during the first months of the
present year.
The net decline in bank note circulation,
amounting to 1,009,600,000 lire, is the result of




a reduction of notes outstanding for account of
the State by 2,833,100,000 lire, against an
expansion of the so-called circulation for account of trade by 1,823,500,000 lire. The
latter expansion was not, however, due to any
additional issue of notes, but was the result of
a bookkeeping transfer of 2,500,000,000 lire,
from notes for account of the State to notes
for account of trade. As a matter of fact, all
notes issued, without distinction of origin, are
at the disposal of the market, and it would
have been impossible to withdraw the whole
amount of 2,500,000,000 lire at once. Therefore it may be concluded that the circulation of
notes issued for actual trade requirements,
formerly issued by the three note-issuing banks
and now only by the Banca d'ltalia, was not
increased in the course of 1926 as the result
of any expansion of operations. The concentration of the note-issue privilege in the
hands of the Banca d'ltalia, which became
effective as of July 1, 1926, requires us to render
separate accounts for the business of the first
and second half year and to suspend our comparisons with previous years, when the total
operations of the three banks could be analyzed
as if they were a single unit.
During the first half of 1926 the total of the
principal assets of the three banks (discounts,
advances, and deferred payments at the clearing houses) rose slightly from 10,952,100,000
lire to 11,126,400,000 lire. That is to say,
the above assets showed little change as compared with the close of 1925. Concerning the
second half of 1926, bearing in mind that only
the normal transactions of the Banca d'ltalia
are recorded, and these will be considered in
detail later, it may be stated here that the total
of the above assets declined from 9,356,600,000
lire to 8,274,400,000 lire. Discounts alone
were reduced from 5,972,600,000 to 5,356,200,000 lire, including rediscounts on behalf of the
ordinary section of the Syndicate for Advances
against Industrial Securities. A still greater
reduction took place in advances. At one time
these had become excessive and had practically
converted into notes a considerable proportion
of the securities held by other banks and saving
institutions, thus increasing the circulation.
Gradually the balance was reestablished, owing
partly to the influx of foreign currencies, which
replaced a portion of the* outstanding debt of
the banks to the central bank.
The more limited operations of the Banca
d'ltaiia in the second half of the past year dem-

AUGUST,

FEDEBAL KESERVE BULLETIN

1927

onstrate the effectiveness with which the bank
assisted the Government in carrying out a reasonable plan of deflation for the purpose of
supporting the exchange and improving the
gold value of the lira.
Changes in the value of the currency have
been reflected in the prices of Government
securities. The monthly average price of the
5 percent consols (accrued interest excluded) declined from 91.98 per cent in December, 1925,
to 91.07 per cent in February, 1926, and recovered to 93.09 per cent in April. A progressive decline began in May which brought
the price to 85.93 per cent in October. On the
opening of the subscription to the Littorio loan
the decline became more pronounced, owing to
the larger volume of securities offered, the price
being 82.86 and 78.72 per cent in November
and December, respectively, and the downward
trend continued during the first months of 1927.
Similarly the 3J^> per cent rentes, after declining from 72.76 to 69.91 per cent between December, 1925, and February, 1926, recovered
in March and April to around 71.30 per cent
and afterwards declined gradually to 65.79
per cent in October and finally to 60.33 per
cent in the last two months of the year.
Foreign exchange rates during the past year
moved along lines somewhat parallel to the
movements of the previous year. Until August,
and more decidedly during that month, the
decline of the lira was sharper than during the
corresponding period of 1925. After that,
owing to the adoption of strong measures in
defense of the lira, an upward movement took
place, which was more pronounced than the
corresponding movement toward the end of
1925. The severity of the decline during the
summer made the average quotation of the lira
for 1926 considerably lower than the average
for 1925 and increased the difference between
the high and the low quotations for the year.
Recent quotations of the lira indicate that the
currency policy of the Government is achieving
its purpose.
The relation which formerly existed between
the lira, the French franc, and the Belgian
franc no longer exists. Each currency follows
its own course according to the particular
economic and financial condition of the country
concerned, while the action of the Belgian
Government in stabilization of its currency led
to the final dissolution of the old Latin Monetary Union.
Balance of payments.—The exchange movements have affected foreign trade. While
during the first half of the year no important
changes were recorded as compared with the
55972—27




4

591

corresponding period t)f 1925, the greater
stability and increased value of the lira during
the last six months was accompanied by an
improvement of the trade balance. From
January 1 to June 30, 1926, the excess of
imports over exports was 26,000,000 lire less
than during the corresponding period of 1925;
whereas from July 1 to December 31, 1926,
the unfavorable balance was 701,000,000 lire
less than in the corresponding months of the
previous year. For the year 1926 as a whole
there was a decline of 9.2 per cent in the
adverse balance as compared with 1925. Since
the beginning of 1927, probably owing to important Italian loans floated in foreign countries, the position seems to have changed
somewhat.
As regards other items affecting our international balance of payments, it may be said
that if no appreciable improvement has taken
place, neither have there been any changes for
the worse. The large offers to Italy of foreign
loans, mainly from the United States, have had
and continue to have a favorable influence in the
foreign exchange market. This is helpful to
the extent that such loans are wisely used, and
do not at some future time disturb the balance
of our international payments.
Industrial conditions.—Almost every branch
of Italian industry in the past year has experienced a slowing down of activity and consequently a decline in profits, as compared with
the year before. Among the general causes
for this condition are (a) weaker demand on
the domestic market in expectation of further
reduction in prices; (6) the difficulty of maintaining and increasing markets for Italian
goods in countries where economic and monetary adjustment are still in progress; (c) the
British coal dispute, which made fuel more
expensive; (d) the relative scarcity of circulating capital and the high cost of credit facilities;
(e) the difficulty of collecting from customers,
owing to the increasing habit of postponing
payments; (f) some increase in unemployment,
which, however, has been alleviated to some
extent in the larger enterprises by apportioning the available work among all the employees,
by adopting part time, and by a reduction in
the number of working days; (g) the instability
of the exchange together with wide fluctuations in the prices of raw materials, which not
only had an unfavorable effect on the sale of
goods in foreign countries and increased risks
and overhead charges but also made impossible
exact calculations of production costs.
Definite conclusions can not yet be drawn as
to the effect of the appreciation of the lira on

592

FEDEKAL RESEKVE BULLETIN

price levels in Italy, although, measured in paper
currency, prices are bound to show a decline.
In any case it would be a mistake to exaggerate
the seriousness of the decline to Italian manufacturers.
On the other hand, work everywhere has
gone on steadily and has not been interrupted
by labor disputes. Some few controversies
concerning slight adjustments of wages, of
vital importance for the industries concerned,
were equitably adjusted, and the workmen
showed the highest spirit of cooperation and
understanding. New treaties and commercial
agreements have enlarged our opportunities
for trade outside our own boundaries. There
has been an increased influx of foreign capital,
by which some of the largest industrial concerns have benefited. In spite of difficulties,
therefore, our industries were able to maintain
a satisfactory position until the end of the
year; and in spite of the temporary disturbance
caused by currency reform the future of Italian
industries seems favorable.
Legislation.—It is worth while to summarize
the measures taken by the Government regarding note circulation. The main provisions for the unification of the note issue privilege were: (1) Transfer to the Banca d'ltalia
of the bullion and "equivalent reserve" held
by the Banco di Napoli and Banco di Sicilia
against their outstanding notes; (2) transfer
to the debit of the Banca d'ltalia of notes
issued by the two banks, as outstanding on
June 30, 1926; (3) transfer to the Banca
d'ltalia of Banco di Napoli and Banco di
Sicilia credits with the special independent
section of Syndicate for Advances Against
Industrial Securities (now Istituto di Liquidazioni), with all securities and reserves relating thereto; (4) transfer to the Banca
d'ltalia of Banco di Napoli and Banco di
Sicilia credits with the royal treasury in respect of advances and notes supplied to the
State, as outstanding on July 1, 1926.
On June 30, 1926, the reserves and note circulation of the two banks were as follows:
Banco
di
Napoli
Reserve (in million gold lire):
Go^d in hand
Silver in hand
Gold deposited abroad
Balances abroad
Foreign treasury bills
__ _
Other currencies
Total
_____
___
Notes in circulation (in million paper
lire):
On trade account
.
On State account.
Total




Banco
di
Sicilia

Total

202.5
30.1
30.0
1.4
10.9
.3
275.2

39.4
9.6
8.2
1.1
9.2
.3
67.8

241.9
39.7
38.2
2.5
20.1
.6
343.0

2, 272. 3
1,138. 7
3, 411. 0

482.5
350.6
833.1

2, 754. 8
1,489. 3
4,244.1

AUGUST, 1927

Of the 343,000,000 gold lire forming the
bullion and "equivalent reserve77 of the Banco
di Napoli and Banco di Sicilia, as cover for
their notes, the Banca d'ltalia took over
about 311,000,000 gold lire, as follows:
[In million gold lire]
Banco
di
Napoli
Gold
Silver (5-lire coins)
Gold deposited abroad
British treasury bills
Total .._

Banco
di
Sicilia

Total

202 4
14.0
30.0
4.3

39 4
8.2
8.8

241 8
17.8
38.2
13.1

250.7

60.2

310.9

O

O

On the other hand, the Banca d'ltalia was
charged with the following amounts in respect
of the notes issued by the above two banks,
which are being gradually replaced by its own
notes:
Banco di Napoli and Banco di Sicilia
notes outstanding against advances
Lire
to the State, which have been transferred to Banca d'ltalia
1, 489, 347, 433
Banco di Napoli and Banco di Sicilia
notes outstanding against their commercial assets
2, 293, 040, 386

Of the latter amount, 802,158,515 lire were
issued against the credit of the two banks with
the special independent section of the Syndicate
for Advances Against Industrial Securities,
which was transferred to the Banca d'ltalia,
and 1,490,881,871 lire are equivalent, at the
rate of exchange provisionally fixed, of the
bullion and "equivalent reserve" of the two
banks, which was actually taken over by the
Banca d'ltalia.
The total amount of notes issued by the
Banco di Napoli and Banco di Sicilia which
have been actually charged to the Banca
d'ltalia, to be replaced with the latter's notes,
is therefore 3,782,300,000 lire, whereas the
total circulation of the two banks on June 30,
1926,'amounted, as we have seen, to 4,244,100,000 lire. The difference between these
two figures, amounting to 461,800,000 lire,
represents the amount of notes which the two
banks have redeemed from their own resources,
according to agreement.
Under the terms of article 5 of the decree of
May 6, 1926, the bullion and "equivalent
reserve" transferred from the Banco di Napoli
and Banco di Sicilia will be held by the Banca
d'ltalia as a special reserve fund against the
notes formerly issued by the above banks. Of
these issues, the notes for account of the State
and those representing the credit with < the

AUGUST,

1927

special independent section are subject to the
regulations which apply to notes outstanding
for those particular objects, while the balance
of the notes issued against the gold reserve
taken over from the tw^o banks is not subject
to any taxation or contribution, being outside
the normal limit of circulation prescribed by
law.
After providing for a single bank of issue,
the Government carried out a well-planned
scheme of deflation for the defense and the
gradual improvement of the value of the lira.
This consisted of the following measures: (1)
Reducing the amount of the State debt to the
bank of issue in respect of notes received by
the treasury to meet war and postwar requirements; (2) 7increasing the bullion or " equivalent reserve ' against outstanding bank notes;
(3) fixing a limit to the circulation of notes
issued by the Banca d'ltalia for account of
trade; (4) reducing the amount of treasury
notes and replacing small notes with coin.
The above measures were enacted by royal
decree on September 7, 1926, and by order of
the Minister of Finance on September 9, 1926.
In the first article of the above decree the
State undertakes the gradual repayment of its
debt to the Banca d'ltalia consisting (August
20, 1926) of 6,729,411,855 lire, which was
equivalent to the amount of notes outstanding
on State account. A first reduction was made
by transferring to the bank an amount equal
to $90,000,000 in United States currency,
against which the debt was reduced by
2^500,000,000 lire. This operation immediately reduced to 4,229,411,855 lire the debt of
the Government to the bank and increased
the reserve of the bank by about 463,800,000
gold lire.
The remainder of the State debt to the bank
will be paid off gradually by including in the
budget as a charge of the finance ministry an
annual sum of 500,000,000 lire, beginning with
the financial year 1926-27.
Article 3 of the decree provided that the
normal circulation of Banca d'ltalia notes must
not exceed the sum of 7,000,000,000 lire, not
including the 2,500,000,000 lire of notes charged
to the bank against the $90,000,000 nor the
following: (1) Notes outstanding for account
of the State; (2) notes outstanding for account
of trade against the credit with the special
independent section of the Syndicate for Advances Against Industrial Securities (Instituto
di Liquidazioni); (3) notes outstanding in




593

FEDEEAL RESERVE BULLETIN

respect of bills rediscounted to the ordinary
section of the Syndicate for Advances Against
Industrial Securities; (4) the equivalent in
notes of the Banco di Napoli and Banco di
Sicilia reserve taken over by the Banca d'Italia.
The following figures from the bank return
for December 31, 1926, will explain the position :
[In million lire]

Total circulation of notes
Notes outstanding on treasury
account
Notes equivalent to $90,000,000._
Credit with Istituto di Liquidazioni
Rediscounts to Ordinary Section
of Syndicate for Advances
against Industrial Securities
Notes equivalent to Banco di
Napoli and Banco di Sicilia reserve
Balance of notes outstanding in respect of commercial transactions

18, 340. 1
4, 229. 4
2, 500. 0
3, 368. 4
599. 7
1, 490. 4

12, 187. 9
6, 152. 2

Therefore, on the above date the circulation was 847,800,000 lire less than the maximum limit of 7,000,000,000 lire established
by law. A temporary exception to the legal
limit of 7,000,000,000 lire was granted in connection with the issue of the Littorio loan,
in order to facilitate its flotation.
Important measures were also adopted by
the Government concerning the circulation of
currency notes issued directly by the treasury.
These were as follows:
(1) Withdrawal from circulation and redemption of 25-lire notes outstanding, of which the
original issue amounted to 400,000,000 lire.
(2) Conversion of the 5 and 10 lire notes
into silver coin of the same face value. These
notes were issued for a total amount of 1,700,000,000 lire, 850,000,000 lire of each denomination. For minting the new silver coins, the
old 1 and 2 lire coins previously withdrawn
from circulation have been used. Between
January 1 and December 31, 1926, the amount
of treasury notes outstanding was reduced
from 2,100,000,000 lire to 1,793,000,000 lire.
Short-term debt.—Treasury bills outstanding
declined from 18,307,000,000 lire on December
31, 1925, to 15,209,000,000 lire on December
31, 1926. This reduction was not entirely due
to the action of the Government. The decline might probably have been checked by
increasing the rate of interest on the bills,
but this would have imposed a heavier burden

594

FEDERAL BESERVE BULLETIN

on the State for the service of the debt. The
demand for reimbursement by the holders
could not easily be stopped, however, since
the deflation program of the Government
had been announced and was being carried out.
Since the war treasury bills had acquired to
some extent the nature of interest-bearing currency, which could be added to the noninterestbearing treasury notes and bank notes. The
short-term bill, not being liable to price fluctuations, could be used as a substitute for cash because it was always acceptable as cash in case
of need. But this very quality, although it
made the bills more marketable, constituted an
intrinsic defect, since it contained elements of
inflation obviously detrimental to price levels.
If at any time the issue had been discontinued,
the treasury would have had to make large
capital disbursements to meet the maturities,
and, after exhausting its own cash balances,
would have had no alternative but to shift the
security inflation to a currency inflation. Inasmuch as a policy of currency deflation had
been adopted by the Government, it was obviously necessary to guard against the dangers
of a huge floating debt, in order to avoid such
a crisis as had taken place in other countries
under similar conditions.
At the end of October the position of the
Italian treasury and of the note circulation
made imperative the conversion of the shortterm interest-bearing treasury bills. This was
accomplished under the terms of a decree authorizing the issue of a funding 5 per cent loan,
exempt from present and future taxation and
not convertible until December 31, 1936. The
five-year and seven-year treasury bills outstanding, maturing as from November 11, 1926,
had to be converted into bonds of the funding
loan on the terms prescribed. The decree authorized the Government to offer the loan for
public subscription at the price of 87.50 per
cent, stipulating that the net proceeds of the
subscription should be paid by the treasury
into its current account with the Banca d'Xtalia
in order that the bank might use these funds
for further advances against the new security.
The treasury, however, was given the option
of using these funds also for the purpose of paying off short-dated State obligations. Other
sections of the decree provided for the establishment of a market for the new security, for
granting assistance to prospective purchasers
of the same, and for giving it priority as security,
against advances,




AUGUST,

1927

Supervision of banks,—Under the terms of
a decree of September 7, 1926, the Banca
d'ltalia has been charged with the task of
supervising those banks which receive money
on deposit, Under the existing legislation the
supervision of savings banks, pawnbroking
establishments (Monti di Pieta), and special
credit institutions was intrusted to the ministry
of national economy. But in this supervision
other banks were not included, especially those
which were free to indulge in any kind of
transactions, even entailing a large measure of
risk without any guaranty for the depositors.
Therefore it was obviously necessary that provision should be made to protect these clients.
The above decree provided that all existing
banks should be registered at the finance
ministry, that no new bank should be founded
nor any new branch of an existing bank be
established without ministerial sanction, which
would be granted only after consultation with
the bank of issue. It also provided that bank
amalgamations should be subject to the approval
of the ministry after consultation with the bank
of issue. It was further provided, in order to
strengthen the position of the banks, that after
closing the 1926 balance sheet the banks must
add yearly to their reserve not less than 10 per
cent of their net profits until the reserve shall
have reached an amount equal to 40 per cent of
the paid-up capital. For rural banks the proportion of net profits to be carried to the reserve
is 90 per cent until the reserve shall have reached
an amount equal to 10 per cent of the deposits.
Savings banks and first-class pawnbroking
establishments were exempted from these rules
until February 10, 1927, when a new degree
provided that 70 per cent of their net profits
must be carried to the reserve until the latter
equals one-tenth of the total deposits.
The supervision by the bank of issue applies
to all banking institutions which are not under
the control of the ministry of national economy.
For many reasons it was considered desirable
that this supervision should not be intrusted
to a Government department but to the central
bank.
The decree of November 6, 1926, contains
regulations establishing, first, the minimum
capital for new banks; second, the minimum
ratio of capital resources to total deposits;
and, finally, the maximum limit for credit
facilities which a bank may afford to any one
customer, in proportion to the assets of the
bank.

AUGUST,

1927

FEDERAL RESERVE BULLETIN

These regulations are not intended to be in
the nature of a guaranty to depositors. The
new regulations are rather to be regarded as
emphasizing the responsibility of all those who
are intrusted with the administration of the
savings of the Italian people.
Italian National Institute of Foreign Exchange.—Under the terms of a decree of
February 13, 1927, the Italian National Institute of Exchange has been reorganized. This
became necessary after the concentration of
the note issue privilege in the hands of the
Banca d'ltalia had dissolved the consortium
previously formed by the three banks of issue,
which had supplied, pro rata, the capital of
the institute.
In this decree, the institute is described as a
public body with an independent administration under the supervision of the finance
ministry. It is authorized to perform all kinds
of foreign-exchange transactions and to deal in
any way that may assist the foreign trade of
Italy. The assets of the institute consist of
the subscribed capital amounting to 10,000,000
lire and furnished entirely by the Banca
d'ltalia; and the total net profits accumulated
during its previous existence and forming its
reserve on December 31, 1926. All net profits
accumulated in future are likewise to be
carried to the reserve. On the liquidation of
the institute the then existing reserve will be
divided in the following proportion: Threequarters to the treasury and one-quarter to the
Banca d'ltalia, the latter being required to
use such amounts as may be forthcoming from
that source as an addition to the bullion
reserve against its outstanding notes.
A few days prior to the issue of this decree,
a convention was signed between the Finance
Minister and the governor of the Banca d'ltalia
in his capacity as chairman of the institute, by
which the institute was invited to take over, on
behalf of the treasury, the administration of the
foreign balances held by the latter, to settle the
debit and credit balances, both in foreign currencies and lire, constituting the " exchange
position " of the treasury on January 31, 1927,
and to purchase and sell such currencies as
were required for that purpose. Furthermore,
the Finance Minister decided that the proceeds
of foreign loans which certain companies were
authorized to contract under the terms of the
decree of November 14, 1926, as well as the
proceeds of other foreign loans which might be
authorized later under the same decree, should




595

be transferred to the institute.1 The institute
in turn undertook to place at the disposal of the
borrowing companies, always on behalf of the
treasury, such amounts of foreign currencies as
might be required at each maturity both for
interest and redemption of such loans. The
close financial connection existing between the
institute and the treasury as a. result of the
above convention is obvious. It was the outcome of the treasury's successful action in the
foreign-exchange market during the past year
to support the lira and improve its value. It is
now the task of the institute to proceed along
the same lines and to make a final settlement of
all outstanding accounts. To this should be
added the control of the foreign-exchange
market, from which the institute must draw
the currencies which are required to meet the
normal needs of Government departments, the
service of foreign Government loans and of
loans concluded abroad by Italian industries,
the proceeds of which have been transferred tothe institute.
During the past year new legal regulations
were passed to supplement the action of the
Government for the protection of the currency.
Especially important is the decree under the
terms of which, as a rule, only Italian banks
with2 a minimum paid-up capital of 100,000,000
lire are authorized to transact foreign exchange business, and the order regarding the
embargo on exports of Italian currency. In
special cases, however, if approved by the
Banca d'ltalia, certain banks having a paid-up
capital of less than 100,000,000 lire, arid, being
recognized as largely interested in the foreignexchange business, may, within certain limits,
still deal in foreign exchanges under the
auspices of the Banca d'ltalia as its agents.
1

The above decree consists of the following articles:
ART. I. The Finance Minister is authorized to purchase, up to a total
amount of $100,000,000, the proceeds of foreign loans concluded abroad by
enterprises of Italian nationality, whose production is likely (1) to affect
considerably the employment of labor and the economic activity of the
country; (2) either to increase exports, or utilize national resources with
the effect of reducing imports. Each particular transaction will be
submitted by the Finance Minister to the approval of the Cabinet
Council.
ART. II. For the above transactions the Finance Minister is authorized
to order that the royal treasury give a guaranty to the borrowing concerns
that the same exchange rate at which the foreign currencies have been
taken over will apply to the currencies which will be necessary for the
service of the loans. The borrowing concerns, however, must supply the
Italian currency which is required to meet the service of the loans, at the.
agreed
rate of exchange.
2
Under the terms of an order of the Finance Minister, the Italian*,
branches of foreign banks which are correspondents of the royal treasury
may also be authorized to deal in foreign exchanges. No transaction!
can be concluded, however, unless it is for genuine commercial needs or
for the needs of people traveling abroad. Such needs must be proved;
with original documents, which must prove that any speculative object,,
even indirect, is excluded. The banks which are authorized to deal ini
foreign exchanges are required to control the evidence for each transaction, and are directly responsible to the treasury for all business done,.

596

FEDERAL RESERVE BULLETIN

AUGUST,

1927

ANNUAL REPORT OF THE BANK OF THE NETHERLANDS
The annual report of the Bank of Netherlands, covering the fiscal year ending March
31? 1927, was presented to the general meeting
of stockholders on June 21, 1927. The report
comments generally on a gradual improvement in European economic conditions, especially as indicated by greater stability of
the exchanges and a decline of interest rates in
the principal countries, describes the measures
of financial reorganization put into effect in
Belgium and the assistance rendered in this
connection by various central banks, and gives
a number of statistical tables relating to
financial developments in the Netherlands.
The special subjects discussed most fully are
those covered by the following extracts from
the report:
Gold movements.—The principal countries
of Europe may be divided into three general
groups: (1) Those which returned to the gold
standard some time ago; (2) those which returned to the gold standard during the past
year; (3) those which are planning to reestablish it in the future.
In the first group a distinction should be
drawn between the countries which have
obligated themselves to the delivery of gold
as soon as their exchange reaches the gold
export point, and those countries which,
although they have adopted gold as their
monetary standard, have not as yet pledged
themselves to deliver gold for the maintenance
of their exchanges.
The Netherlands belongs to the first group,
but with this reservation—that it has obligated
itself to deliver gold for export to those countries only which in their turn are prepared to
release gold to us as soon as their rates of
exchange reach the gold export point to the
Netherlands.
In our report of last year we pointed out that
a curious possibility presented itself in connection with determining the gold import and
export points of the florin on the international
exchange market. Formerly the import and
export points of gold were well established; if
the exchange rate reached a certain point one
could be sure that gold shipments would take
place, but only in case the import or export
point was actually touched. Recently, however, such important changes have been brought
about in the costs of transportation and in the
rapidity of shipment that the gold points have
again and again been subject to fluctuation.
These changes might be caused by any one of a




number of individual factors; as, for example,
an exceptionally low freight rate granted by a
steamship company; the saving of interest by
means of airplane transport; shipping in small
packages in order to take advantage of low
parcel-post rates; or the concession of a reduced insurance charge. Again, such a change
might result from a slight advance in the purchase price of gold or the granting of interestfree advances in order to furnish gold for shipment. Thus the gold points have lost their
former fixity. It would be highly desirable in
the general interest that this matter be taken
under consideration jointly by the central
banks.
Our gold shipments during the past year
have amounted to a total of 8,266,000 florins.
Foreign bill portfolio.—We have taken an
active part in the foreign bill market in order
to avoid the unnecessary and uneconomical
practice of shipping gold back and forth. These
operations were reflected in the considerably
greater variations in our portfolio of foreign
bills (including balances with correspondents
abroad). The largest volume of foreign bill
holdings for the year was reached on July 22,
1926, with 255,628,498 florins; the lowest
amount on February 3, 1927, with 168,958,250
florins—a difference of nearly 87,000,000 florins.
The figures for the close of the last two fiscal
years, however, show less divergence. On
March 31, 1927, the foreign bill portfolio (including balances held abroad) amounted to
178,987,100 florins, as compared with 201,213,080 on March 31, 1926, showing a decrease of
22,225,980 florins.
When the decline in the foreign bill portfolio
became more pronounced at the beginning of
February, 1927, as the result of large flotations
of foreign issues in this country and the outflow of domestic capital, we felt compelled by
way of gentle warning to raise our lombard rate
by one-half per cent. This measure had the
desired effect.
The florin inclined toward the gold export
point during the entire year; this was due to
the outflow of funds from the Netherlands to
foreign countries and probably also to the
demand for Dutch funds by those markets
which offered a higher rate of interest. On
the other hand, the large proceeds accruing
from the sale of our overseas products had a
favorable influence on the position of the florin.
Discount rates and price levels.—The discount rate in various countries during the

AUGUST, 1927

FEDEKAL BESEKVE BULLETIN

past year has been subject to fewer changes
than in previous years. In this country the
interest rate was changed but once, on February, 3, 1927, by an increase of one-half per
cent on lombard loans—not including loans on
commodities—and advances on current account. . . . The official rate of the
Netherlands Bank averaged 3.50 per cent during the calendar year 1926, as compared with
3.90 per cent during 1925. The average
cany-over rate on the Amsterdam Bourse
during the fiscal year 1926-27 was 3.07 per
cent; the private discount rate averaged 3.01
per cent. . . .
Commodity prices in this country have declined steadily. The index numbers for the
past 10 years have been subject to great fluctuations; the decline in the later years, however, has proceeded very gradually. . . .
The index numbers are still computed with
the base 1913 = 100, according to the old
method. It is questionable whether this base
can be of much value any longer, because
entirely new conditions have developed in
recent years. Here and there this old basis of
comparison has already been abandoned, for
example, by the statistical bureau of the Federal Reserve Board in Washington. These
comparative figures, however, still retain a
certain value, provided that in the light of
present conditions the figure for 1913 is no
longer considered the "normal" index.
Hegulations governing acceptances.—The
discount market continued to develop satisfactorily, owing to the low interest rate prevailing here and to the activity of institutions
which continued to develop the acceptance
and the discount business. The provisions
governing the eligibility of bills at our institution have again been somewhat broadened in
such ways as seemed advantageous.
As has been already stated in reports of
previous years, bills drawn on the basis of
transactions between the Netherlands or foreign countries and other foreign countries
were not eligible for discount at our institutions during the war and the years immediately
following, unless our official sanction for their
acceptance had previously been obtained.
We gave our sanction as a rule only in case of
a commercial transaction in which a Netherlands business firm or shipping company was
involved.
After the conclusion of the peace, when
foreign countries began to turn to the Netherlands to a greater extent for financing their
transactions, we decided as a rule no longer to




597

discount bills drawn on foreign countries and
domiciled in the Netherlands. Our Netherlands bankers who finance such transactions
appeared to be more and more ready to give
their own acceptances instead. It was burdensome, however, for the banks to be obliged to
confer with the Netherlands Bank over each
case; we made an arrangement with them,
therefore, by virtue of which certain kinds of
bills should be recognized as eligible for discount without their having to be submitted
separately on each occasion. This arrangement was entered into in April, 1922, with the
leading Dutch banks, and defined the following types of paper as eligible for discount:
A. Bankers7 acceptances.—(1) Bills used to
finance the import of merchandise into the
Netherlands or the Dutch East Indies, drawn
by the foreign exporter on a Netherlands bank
and accepted by it; provided that from the
documents handed over or the evidence
submitted, it is demonstrated to the satisfaction of the accepting bank that the merchandise against which the bill is drawn has
been delivered in or has actually been shipped
to the Netherlands or the Dutch East Indies.
(2) Bills arising out of a reimbursement
credit granted by a Netherlands bank to a
Dutch or foreign firm, and accepted by the
bank; provided that the reimbursement credit
is not too large and that it arises out of current
business; and provided that the acceptances
falling under this head are not in too large
proportion to the resources of the accepting
institutions.
B. Acceptances other than hankers1 acceptances.—Bills financing imports of merchandise into the Netherlands drawn abroad on
the importing Netherlands firm, accepted by
it, and discounted by a Netherlands banker
or banking institution; provided that the
accepting firm is a Dutch commercial firm
established in the Netherlands; and provided
that from the documents handed over it is
demonstrated to the satisfaction of the Netherlands banking house that the merchandise
against which the bill is drawn has been
delivered in or has actually been shipped to
the Netherlands.
The arrangement of April, 1922, applied
therefore to all true commercial bills. In
regard, however, to the eligibility of bank
acceptances granted for the financing of other
transactions between the Netherlands and
foreign countries, or between foreign countries,
the Netherlands Bank must be consulted just
as before. The requirement that in such

598

FEDERAL EESEEVE BULLETIN

financing a Netherlands trading or shipping
orgarnzation must be involved is being gradually modified, but such transactions must not
be in competition with a Netherlands firm.
In passing judgment on such applications,
however, we attach great importance to the
self-liquidating character of the bills, a quality
which some reimbursement bills do not possess.
For example, renewed bills which are drawn at
the maturity of a reimbursement credit for the
purpose of financing the manufacture of raw
materials such as cotton or tobacco, or bills
drawn for seasonal requirements, bills .drawn
for the financing of merchandise stored with
a view to speculation, or for the financing of
long-term transactions—all these types of bills,
not being self-liquidating, are not considered
eligible for discount at our bank.
According to these principles as indicated
above, the acceptances of the three acceptance
companies, which at the beginning of 1924
were organized in this country by Netherlands
bankers in cooperation with foreign banking
houses, are admitted to discount.
In March, 1926, we went a step further, and
declared eligible in principle commercial paper
accepted by foreign banks established in this
country since 1914, provided that these are
actually operating as Netherlands corporations
or partnerships, and under the conditions
which were mentioned in the report of last
year on pages 21 to 23. In the beginning we
declared eligible only reimbursement bills
arising from actual import transactions, but
later on we began to consider as eligible certain
reimbursement bills arising from export transactions or occasional renewed bills; for example,
to finance the import of wool for manufacture.
In the case of each acceptance, however, we
had first to be consulted.
Finally, in April, 1927, we broadened the
discount privilege still further by giving to
foreign banks of the designated class the privilege of admission to the arrangement made in
April, 1922, the details of which have been given
above. These banks, therefore, can give their
acceptances for import and export credit
transactions, and are assured of the eligibility
of these bills for discount without having to
consult with us in each instance, as formerly.
Like all the other banks, however, which were
admitted to the arrangement in question, they
are required to furnish us a written statement
in regard to each acceptance. All banks,
moreover, issue a statement regarding such of
their acceptances as oiiginate in transactions




AUGUST,

1927

falling outside the scope of this arrangement
but approved in principle by us after consultation.
The Netherlands Bank has, therefore, complete oversight of all outstanding bankers'
acceptances drawn in florins, which relate to
financial transactions with a foreign country,
and which have been pronounced eligible for
discount by the bank. From the foreign
banking institutions we have received most
valuable cooperation in supplying us with all
the information which w^e needed to decide
these questions.
International clearing facilities.—During the
past year we agreed at the request of the
Reichsbank to cooperate in the so-called international clearing account business. By this
means it became possible for the Reichsbank,
out of the surplus of its account with us, to
transfer amounts at the request of its clients
to the accounts of correspondents of the Netherlands Bank. This arrangement, however, has
up to the present been one-sided, because our
correspondents have not needed to make payments in Germany through the Reichsbank
clearing office, inasmuch as the private banks
and postal checks provide satisfactory clearing
facilities.
Gold in circulation.—We have continued to
put gold 10-florin pieces into circulation. During the past fiscal year the bank gave out the
sum of 9,397,410 florins, of which 1,889,360
florins came back to us, so that during the
year the circulation of 10-florin coins has been
increased by 7,508,050 florins. Since November 17, 1925, when we began the payment
of gold coins, we have put into circulation a
total of 31,467,100 florins. Of this total, an
amount of 23,959,050 was put out during the
period November 17, 1925, to March 31, 1926,
and 53,905 florins were returned to the bank
during the same period. In addition, we paid
out 635,000 florins in gold 10-florin coins to be
sent to Curacoa, where favorable economic
developments have created an increased demand for currency. Furthermore, we should
mention that during the past fiscal year a sum
of about 10,000,000 florins in 10-florin gold
pieces was shipped by private individuals to
the East Indies.
The circulation of silver notes on March 31,
1927, amounted to 12,309,000 florins, as compared with 15,736,000 florins on March 31,
1926. We have cooperated in this gradual
reduction of silver notes because it is highly
desirable that this government paper cur-

AUGUST,

1927

FEDEEAL RESERVE BULLETIN

rency, which was intended to supplement the
circulation in times of emergency, should be
called in now that the emergency no longer
exists.
Capital flotations.—In the past fiscal year
domestic loans in the amount of 619,074,000
florins have been issued, of which 456,989,550
were conversions. During the same period
foreign loans were issued in the following
currencies:
In
In
In
In
In
In
In
In

florins
dollars
reichsmarks
Swiss francs
Belgian francs
belgas
pounds sterling
lire

154, 250, 000
46, 731, 250
79, 500, 000
43, 125, 000
200, 000, 000
6, 000, 000
3, 090, 000
6, 375, 000

Treasury finance.—During the fiscal year
two important repayments were made by the
French Government of credits extended b}^
the Netherlands Government to the Government of France in 1918 and 1919. The first
was the repayment of the credit of 30,000,000
florins granted on December 6, 1918, by the
Netherlands Government through the agency
of the N. U. M., which did not mature until
April 1, 1927, but was repaid by the French




599

Government on November 1, 1926. In addition, on February 1, 1927, the Government of
France repaid to the Netherlands Government
the credit of 25,000,000 florins, which was
granted for the reconstruction of northern
France and does not mature until July 1, 1929.
These repayments have contributed in no
small degree to easing the position of the
treasury. As a result both of the repayment of
these credits and of the greater abundance of
funds, the Government during the past fiscal
year had less occasion to resort to the open
market than in previous years. From April
1 to November 1, 1926, the Government
offered treasury bills for public subscription
in the amount of 74,440,000 florins. In addition to that, it discounted its bills with the
Netherlands Bank in a total of 108,000,000
florins, and was able to place treasury bills
with another institution in the amount of
12,500,000 florins. Altogether during the past
fiscal year treasury bills in the total amount of
194,940,000 florins were issued by the Government.
Of the amount of 108,000,000 florins placed
with the Netherlands Bank, we have resold
13,500,000 florins on the open market by agreement with the agent of the ministry of finance.

600

FEDERAL RESERVE BULLETIN

AUGUST, 1927

FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
CONDITION OP CENTRAL BANKS
[Figures are for the last report date of month]
1927

June
Bank of England (millions of
pounds sterling):
Issue departmentGold coin and bullion
Notes issued
Banking department—
Gold and silver coin
Bank notes
--Government securities
Other securities.
Public deposits
Other deposits
Ratio of gold and note reserve to deposit liabilities
(per cent)
Bank notes in circulation i
Currency notes and certificates. _
Bank of France2 (millions of francs):
Gold reserve
Silver reserve
Gold, silver, and foreign exchange
Credits abroad.
Loans and discounts
Advances to the Government
Miscellaneous assets
Note circulation
Total deposits
*...
German Reichsbank (millions of
reichsmarks):
Gold at home
Gold abroad
Reserves in foreign exchange
Bills of exchange and checks
Miscellaneous assets
Deposits
Reichsmarks in circulation
Rentenmarks in circulation
Bank of Italy (millions of lire): a
Gold reserve
Credit and balances abroad
Loans and discounts
Advances to the Government
Note circulation for commerce. __
Note circulation for the State. .-•_
Total deposits
Bank of Japan (millions of yen):
Gold at home and abroad
Advances and discounts
__.
Advances on foreign bills
Government bonds
Total note and deposit liabilities..
Notes issued
__
Total deposits

May

1926

April

June

_

150.5
170.2

150.9
170.6

152.5
172.3

1.6
32.3
51.7
59.3
7.9
119.0

1.7
34.8
48.5
50.9
19.8
98.4

1.7
34.7
47.9
42.2
10.2
98.6

149.0
168.7
1.4
27.0
51.6
103.1
10.5
154.7

. 28.7
81.7
298.3

30.8
79.6

33.4
81.3
294.8

17.1
85.5
294.0

3,683
345
2,181
50
4,096
26,850
22,321
52,786
12, 382
1,745
58
67
2,495
462
670
3,815
1,064

1,063
908
8
238
2,413
1,379
1,034

293.6

3,683 3,683
344
342
2,140 2,064
53
58
3,787 4,707
26,600 29,300
19, 018 12, 526
51,801 52,210
10, 583 6,991

3,684
337
576
7,054
36,600
3,303
53,073
2,926

1,746
69
79
2,421
444
700
3, 719
1,073

1,749
101
171
2,068
452
582
3,676
1,100

1,232
260
325
1,288
522
527
2,971
1,520

1,164
1,565
6,983
4,229
13,214
4,229
2,636

1,157
1,259
7,389
4,229
13,349
4,229
2,187

1,136
570
10, 762
6,729
11,613
6,729
2,532

1,053
1,070
12
239
2, 542
1,388
1,154

1, 062
1,533
38
281
3,084
2,037
1,047

1,058
369
40
294
1,973
1,280
693

59
414
178
125
174
917
36

416
176
101
174
901
29

3,223

3,198

59
428
164
114 .
174 I
918
25

19
514
100
81
183
836
62

National Bank of Belgium (mil-

lions of francs):
Gold*
Foreign
bills and balances in
gold4
Domestic and foreign bills
Loans to State
Note circulation
Deposits
_
_.

2,219
2,367
2,000
9,532
359

2,163
2,426
2,000
9,308

3,173
2,154
2,433
2,000
9,391
566

274
30
1,362
6,580
8,514
429

* Notes issued, less amounts held in banking department and in currency note account.
2 Not including gold held abroad.




1926

June

May

1,239
278
944
4,562
3,735
2,660

1,232
271
821
4,512
3,530
2,751

1,226
303
996
4,512
3,603
2,711

2,780

85
534
42
268
232

85
579
21
263
250

85
548
19
279
198

148
293
64
382
91

1,053
1,815
144

1,053
1,824
73

1,052
1,805
73

1,041
1,284
202

540
7,118
890

555
6,762
1,237

560
6,838
1,139

677
7,220
685

April

June

National Bank of Bulgaria (mil-

Austrian National Bank (millions
of schillings):
Gold
Foreign bills of the reserve
Other foreign bills
Domestic bills
Treasury bills
Note circulation
Deposits

1927

lions of leva):
Gold»
Foreign bills, etc
Loans and discounts..
Advances to State
Note circulation
Deposits
_

Central Bank of Chile (millions of
pesos):
Gold at home
Gold abroad
Loans and discounts
Note circulation
Deposits
_
__

Czechoslovak

National

1,374
5,453

Bank

(millions of Czechoslovak crowns):
Gold and silver
Foreign balances and currency...
Loans and advances.
_.
Assets of banking office in liquidation
Note circulation
Deposits

Bank of Danzig (millions of Danzig gulden):
Balances with Bank of England..
Foreign bills, etc
Loans and discounts
Note circulation.
Deposits

24
15
13
35
2

National Bank of Denmark (millions of kroner):
Gold
Foreign bills, etc
Loans and discounts
Note circulation
Deposits

193
58
101
368
24

193
41
130
377
21

54
124
401
22

3,655
23, 505
26, 655
26,708
21,815
17,098

3,430
24, 404
26,762
27, 455
21, 940
13,363

508
25
481
92
5, 866
1,972
813

500
39
240
127
5,814
1,808
841

193
45
130
367
27

National Bank of Egypt (thou-

sands of Egyptian pounds sterling) :
Gold
English Government securities...
Egyptian Government securities.
N ote circulation
Government deposits
Other deposits

Bank of Estonia (millions of Estonian marks):
Gold
_
Cash in foreign currency
Foreign correspondents' account
Foreign bills
Loans and discounts
Note circulation
Deposits and current accounts. _
Bank of Finland (millions of Finnish marks):
Gold.
—
Balances abroad and foreign
credits
Foreign bills
Domestic bills
State debts
Note circulation-.
Demand liabilities

509
29
399
110
5,883
1,922
820

323

324

325

331

901
43
622
110
.,398
282

974
47
629
122
1,411
251

1,096
41
592
133
1,447
344

900
61
656
262
1,298
481

34 Figures previous to July, 1926. are for 3 banks of issue.
Figures previous to Oct. 25, 1926, carried at par.
• Figures previous to 1927 carried at par.

AUGUST,

601

FEDEEAL RESERVE BULLETIN

1927

CONDITION OF CENTRAL BANKS—Continued
1927

June

May

1926
April

June

National Bank of Greece (millions

2,708
3,868
4,016
4,859
5,047

2, 721
3,954
3, 896
5,042
4,921

1,935
3,814
3,166
4,530
4,215

189
70
273
116
285
428
248
231

92
249
117
221
429
249
143

169
93
242
117
229
443
234
146

121
107
165
152
245
395
176
191

185
23
71
315
56

185
21
72
308
53

185
20
61
307

200
23
57
326
43

National Bank of Hungary (mil-

Bank of Latvia (millions of lats):
Gold
Foreign exchange reserve
_...
Bills
_
Loans
Note circulation...
Government deposits
Other deposits
...

April

177
207
1,755
81

9
365
211
1,751
62

363
144
1, 843

146
8,868
16,359
21,001

146
9,100
10,679
21,029
8,962

141
8,438
30,679
20,971
7,783

17, 705
7,946
65,377
92,029

16, 685
8,374
64, 738
90,550

16, 590
8, 374
61,382
87, 516

14,683
5,025
53,059
72, 663

1,168
2,966
5,295
1,617

397
1,238
2,966
5,337
1,231

87
291
1,303
2,966
5,434
615

80
323
1,266
2,966
5,494
664

7,527
5,725
1,107
7,414

7,439
7,236
1,094
8,417
5,073

8,463
6,784
1,034
8, 599
8,110

7,572
4,808
988
7,506
5,169

2,597
692
39
495
1,464
4,160
1,008

2,597
705
37
573
1,370
4,246
1,006

2,597
701
37
584
1,435
4,283
1,016

2,541
674
33
722
1,667
4, 333
1,059

222
163
350
535
127

222
161
297

222
171
271
497

228
162
345
528
134

455
55
328
835
76

459
45
359
815
124

459
25
831
78

419
14
365
800

54, 948
89, 555
65,044
73, 647

54,944
95,362
m, 862
71,456

June

_

,

,

National Bank of Rumania (millions of lei):
Gold 6....
._.
Bills
Advances to State
Note circulation.—
Deposits...

„

147
8,807
16,359
21,032
„.__. 8,451

State Bank of Russia (note-issuing

department; thousands of chervontsi):
Gold.....
Foreign currency
Loans and discounts.„_
Bank notes

South African Reserve Bank
(thousands of pounds sterling):
Gold
Foreign bills...
Domestic bills
Note circulation
Deposits

----.

florins):
Gold
_.__.
——
Foreign bills
-___.
Loans and discounts..
>
Note circulation
-.
Deposits
.

404
122
329
783
55

409
141
265
813
32

419
134
220
791
39

Bank of Norway (millions of kroner):
Gold __
Foreign balances and bills
..
Domestic credits
Note circulation
..
Foreign deposits..
Total deposits

147
10
303
332
6
120

147
10
309
315
9
144

147
25
353
321
17
201

Reserve Bank of Peru (thousands
oflibras):
Gold..
...._
Gold against demand deposits._.
Foreign exchange reserve
Bills
Note circulation
Deposits

4,086
330
681
1,852
5,892
660

4,186
228
669
1,471
5,819
458

4,197
219
709
1,626
5, 832
441

Bank of Poland (millions of zloty):
Gold
Foreign exchange, etc
Loans and discounts
Note circulation
Current accountsPrivate. ._
Treasury
..Liabilities in foreign currency
Not including gold held abroad.




dos):
Gold.
„
Balances abroad
Bills
Note circulation
Deposits....

(millions of dinars):
Gold
Foreign notes and credits
Loans and discounts
Advances to State
Note circulation
Deposits.
„

Netherlands Bank (millions of

6

May

National Bank of the Kingdom
of Serbs, Croats, and Slovenes

Bank of Lithuania (millions of
litas):
Gold
_
Foreign currency—
Loans and discounts
Note circulation
Deposits.

June

1926

Bank of Portugal (millions ofescu-

of drachmae):
Gold and balances abroad
Government loans and securities.
Loans and discounts
Note circulation
Total deposits
_

lions of pengo):
Gold
_
Foreign bills, etc
Loans and discounts
.
Advances to treasury
Other assets
Note circulation
—
Deposits
Miscellaneous liabilities
Bank of Java (millions of florins):
Gold
Foreign bills,-.—
Loans and discounts
Note circulation.
——
Deposits
=

1927

161
219
452
728

. 157
230
414
705

157
237
404

120
96

121
99
30

140
•83

33

427
199
196 Bank of Spain (millions of pesetas):
Gold
__—
809 |
64 i
Silver
Balances abroad
Bills discounted
_
Checks and drafts
147
Note circulation
81
Deposits
_
339
343 Bank of Sweden (millions of kro5
ner) :
184
Gold
Foreign bills, etc
Loans and discounts
Note circulation
3,910
Deposits
511
888 Swiss National Bank (millions of
2,742
francs):
6,581
Gold
.
1,023
Funds on demand abroad
Loans and discounts...
Note circulation
135
Deposits „-„..
j
79
375 Bank of t h e Republic of U r u g u a y j
448
(thousands of pesos):
Gold
!
77
Loans and discounts
i
1
Note circulation..-.._
I
69
Deposits.
!

54,942
86, 351
61, 503
69, 790

602

FEDERAL RESERVE BULLETIN

AUGUST, 1927

CONDITION OF COMMERCIAL BANKS
[Figures are for the last report date of month except for London clearing banks, which are daily averages]
1927

June

May

139
1,122
237
1,649

127
1,110
237
1,650

1926
April

Three commercial

193
2,008
1,804
2,044

1,653

124
1,109
236
1,642

121
1.084
'243
1,630

2,570

124
2,535
1,933
3,573

1927

Chartered banks of

1926

May

April

March

70
1,276
434
530
165
2,321

70
1,298
400
528
172
2,319

70
1,278
431
510
164
2,291

72
1,195
360
544
164
2,197

1C4
170

101
182

172

172

1,890
53

1,910
57
144
1,996

1,926
55
140
2,024

2,029
61
129
2,211

May

Canada

(millions of dollars):
Gold coin and bullion i
Current loans and discounts
Money at call and short notice...
Public and railway securities
Note circulation
Individual deposits
Gold reserve against Dominion
notes
Dominion notes circulation

Joint-stock banks of Finland
(millions of Finnish marks):
Loans and discounts
Due from abroad
Due to abroad
Deposits

___

7,702
202
371
6,538

7,501
223
355
6,507

7,376
224
354
6,481

7,018
98
388
5,717

1926

April | March • May

banks of

France (millions of francs):
Bills and national defense bonds.
Loans and advances _
Demand deposits
Time deposits
Six Berlin banks (millions of reichsmarks):
Bills and treasury notes
Due from other banks
Miscellaneous loans
Deposits
I
Acceptances

14,312
5,021
24,173
363

13,818
4,915
23,741
371

14,065
5,273
20,749

1,413
846
4,827
6,552
407

2 1,383
2 592
2 3,069
2 4,732
2 243

1.189
8; 486
5,649
13,267
2,430

1,155
8,810
5,510
13,093
2,496

Four private banks of Italy (mil- !
lions of lire):
Cash
.
B ills discounted
Due from correspondents
Due to correspondents
Deposits

I

!
j

Joint-stock banks of Norway
(millions of kroner):
Loans and discounts
Due from foreign banks
Due to foreign banks
Rediscounts
Deposits..

1,678
' 72
187
145
1,834

Joint-stock banks of Sweden

Joint-stock banks of Denmark

(millions of kroner):
Loans and discounts
Due from foreign banks
Due to foreign banks
Deposits and current accounts.__

May

June

Nine London clearing banks

(millions of pounds sterling):
Money at call and short notice. _.
Advances and discounts
_
Investments
Deposits.
Tokyo banks (millions of yen):
Cash on hand
Total loans
Total deposits
Total clearings

1927

(millions of kroner):
Loans and discounts..
Foreign bills and credits abroad..
Due to foreign banks
Rediscounts
Deposits

1,701
65
212
150
1,855

1,705
61
209
154
1,870

149
312
204

4,227
185
120
112
3,538

4,241
187
125
115
3,555

4,319
148
138
141
3,539

1,738
2,810
24

1,750
2,803
23

1,686.
2,693
22

292
691
1,547

293
692
1,551

246
645
1,441

|
4,174
172
114
132
3,506

Swiss Cantonal banks (millions

of francs):
Loans and discounts
1,741
Mortgages
2, 818
Foreign bills
23
Due from banks and correspondents
Commercial deposits.
Savings deposits
I 1,549
2 Figures are for April, 1926.

i Not including gold held abroad.

DISCOUNT RATES OF 32 CENTRAL BANKS
[Prevailing rates, with date of last change]
Country

Rate

Austria
..
Belgium
Bulgaria
Chile
Czechoslovakia.
Danzig
Denmark.
_
England.

7
5
10
•7

5
6
5

In effect
since—
July
June
Aug.
Mar.
Mar.
June
June
Apr.

21,1927
23,1927
31,1924
7,1927
8,1927
21,1927
24,1926
21,1927

Country

Rate

Estonia...
8
Finland.. .
7
5
France
Germany _ 6
10
Greece
Hungary. _ 6
4
India
7
Italy

In effect
since—
Oct.
Mar.
Apr.
June
June
Aug.
July
June

1,1926
22,1927
14,1927
10,1927
7,1927
26,1926
28,1927
18,1925

Country
Japan..
Java
Latvia
Lithuania—.
Netherlands.
Norway
Peru
Poland..

Rate
5.84
6
7
7
%lA
4M
6
8

In effect
smce—
Mar.
May
Jan.
Feb.
Oct.
Oct.
Apr.
May

9,1927
3,1925
1,1927
1,1925
2,1925
27,1926
1,1923
13,1927

[
Country
Portugal
Rumania
Russia
South Africa
Spain
Sweden
Switzerland.
Yugoslavia..

Rate

In effect
since—

July 27,1926
Sept. 4,1920
Apr. —,1924
Nov. 21,1924
5 Mar. 23,1923;
4 Apr. 22,1927
VA Oct. 22,1925
6 June 23,1922
8
6
8

Changes: National Bank of Greece from 11 to 10 per cent on June 7,1927; National Bank of Austria from 6 to 7 per cent on July 21,1927; Imperial
Bank of India from 5 to 4 per cent on July 28, 1927.




AUGUST,

603

FEDERAL EESEEVE BULLETIN

1927

MONEY RATES IN FOREIGN COUNTRIES
England (London)
Month

Bankers'
acceptances, 3
months

Treasury
bills, 3
months

Day-to-day
money

Netherlands (Amsterdam)

Germany (Berlin)

Bankers'
allowance on

Private
discount
rate

Money for Day-to-day
1 month
money

Private
discount
rate

Money for
1 month

Switzerland

Private
discount
rate

l

1926
January
February
March. _„
April
May
June
July
August
SeptemberOctober
November...
December-..

4.78
4.31
4.37
4.33
4.37
4.27
4.26
4.45
4.54
4.69
4.57
4.53

4.78
4.25
4.34
4.34
4.43
4.29
4.29
4.55
4.65
4.80
4.80
4.60

4.00
4.00
4.26
3.92
4.18
3.82
3.86
3.99
3.99
4.07
3.95
3.78

1927
January
February
March
April...
May
June

4.16
4.18
4.34
4.11
3.90
4.34

4.21 j
4.32
4.36 I
4.04 I
3.84
4.36

3.76
3.93
4.09
3.64
3.54
3.44

3
3
2K

6.28
5.46
5.00
4.88
4.69
4.53
4.54
4.61
4.88
4.82
4.63
4.72

8.07
6.66
6.73
6.02
5.53
5.81
5.73
5.80
6.21
6.14
6.12
7.13

7.04
6.03
5.63
4.77
4.80
4.76
4.93
4.85
4.77
4.75
4.45
5.88

2.95
2.19
2.67
2.90
2.95
2.83
2.74
2.63
2.78
2.83
3.21
3.39

2.93
2.40
2.82
2.93
2.94
3.00
2.72
2.50
2.81
2.75
3.23
3.96

2.44
2.22
2.18
2.30
2.38
2.38
2.37
2.34
2.52
2.80
2.96
3.35

4.21
4.28
4.59
4.59
4.90
5.39

5.82
5.77
6.91
6.57
6.95
7.73

3.78
5.19
4.87
5.63
5.99
5.79

2.97
3.46
3.48
3.46
3.45
3.57

9 Q9

3] 66
3.53
3.78
3. 78
3.87

3.16
2=87
2.98
3.13
3.19
3.42

Sweden
(Stockholm)

Japan (Tokyo)

Month
Private
discount
rate
1926
January.
February _.
March..
April.
May..
JuneJuly....
August.
September..
October
November..
December.
1927
January
February
March
April
_.
May
June..

Private
discount
rate

4.57
4.27
4.25
4.25
5.15
5.73
6.00
7.00
6.98
7.25
6.69
5.77
3.90
3.99
4.19
4.33
4.23
4.17

4.99
4.45
3.89
3.17
2.46
2.25

Prime
commercial paper

10V2-WA
10 10 -n%

Day-to-day
money

Loans up
to 3
months

Call
money
overnight

6. 75-9.13
6. 57-8. 76
6. 57-8.40
6. 75-8. 76
6.75-8. 76
7.12-8. 76
6.94-8.76
6. 75-8. 40
6.39-8.40
6. 21-8.40
6.39-8.40
6.75-8.76

4. 56-8. 03
4.38-7. 30
4. 75-7. 67
6.02-7. 30
4. 75-7.30
5.11-8. 76
5.11-8.03
5. 84-7. 48
4.93-7.30
5.11-7.12
4. 75-7.48
5.11-8.03

6.39-8. 76
6.21-8.03
5.84-7. 67
5.84-8.03
6. 57-7. 67

4. 56-7. 30
2.92-7. 30
4. 38-6. 21
4. 38-5. 29
4. 38-4. 75

1
For sources used, methods of quotation, and back figures, see the FEDERAL RESERVE BULLETIN for November, 1926. Rates for Belgium,
France, and Italy, added to this table in April, are from thej ame source as the figures for Switzerland—viz, Bulletin Mensuel, Banque National
Suisse—and are quoted in the same way.




604

EEDEKAL BESEKVE BULLETIN

AUGUST,

1927

GOLD MOVEMENTS
[In thousands of dollars]
United States
Month
Imports

Great Britain

Germany

Net
Ex- | imports
Imexports or
ports ports

Net
Ex- imports
ex- Imports or
ports ports

South
Africa

Netherlands

Net
Ex- imports
ex- Imports or
ports ports

Net
Net
imports
Ex- imports
ex- or exports or
ports
ports

1925
January

5,038
3,603
7,337
8,870
11,393
4,426
10,204
4,882
4,128
50,741
10,456
7,216

February
March
April
May....
June
Julv

August.
September.
October
November
December..
Total
January
February

73,526
50, 600
25,104
21,604
13,390
6,713
4,416
2,136
6, 784
28,039
24,360
5,968

-68,488
- 4 6 , 997
- 1 7 , 767
- 1 2 , 734
- 1 , 997
- 2 , 287
5,788
2,726
- 2 , 656
22, 702
- 1 3 , 904
1,248

19,737
10, 969
14,912
16, 218
18, 759
12,928
5,287
28, 976
7,251
8.997
7,990
727

23,354 -12,327
2,876
18, 605
14, 672 - 5 , 611
9, 694 - 4 , 677
12,818
78
7,864 19.486
15, 918 27,550
13.144
497
13,324 - 9 , 2 6 5
49, 517 -23,180
41, 570 -24,508
21,257 - 1 0 , 653

2,648
3,637
29
86
5
12
119
1,029
931
4,892
9,204
9,566

8,883 143,867 202,004 241,739 -39,735

32,157

590
661
630
616
658
673
672
587
896
1,076
1,013
812

128,272 262, 640 -134,367 152,750

19,147
10,30?
14, 282
15, 602
18,101
12,255
4,615
28,38S
6,355
7,921
6,977
-85

11,027
21,481
9,061
5,017
12,896
27,350
43,468
13.641
4', 059
26,337
17,062
10,604

India

365
1,078
-224
- 4 , 963
-5,054
-9,689
-14,512
—1,014
792
4,161
7 9,197
9, 525
41

2,283
2,559
253
5,049
5,059
9,701
14,631
2,043
139
731

Net
imports
or exports

-6, 767
- 8 , 361
-26,286
—14,388
-10,566
—27,580
-21,363
-21,107
- 1 8 , 976
-18,322
-9,479
- 1 5 , 734

28,241
44,240
53, 957
4,746
11,376
8,492
9,226
9,810
13,967
15,767
11,275
7,903

42,495 - 1 0 , 338 —198, 930

219,000

1926
19, 351
25,416
43,413
13,116
2,935
18,890
19,820
11,979
15,987
8,857
16, 738
17,004

March
April.
May
June
July_
August.
September
October.
November..
December
Total.... . . .

16,264
3,087
3,851
21, 565
4,225
39,188
17,884 - 4 , 768
9,343 - 6 , 4 0 8
15, 544
3,346
14, 750
5,070
29, 743 - 1 7 , 764
23,081 -7,094
1,156
7,701
7,727
9,011
9,808
7,196

213,504 115, 708

5,517
14,030
9,561
1,393
838
571
626
10, 631
23, 608
36,343
16,462
18,407

11,913
7, 611
12. 750
3,489
6,852
4,881
6,210
8,959
5,017
21,262
24,590
18, 609

10,108
9,198
-6,472
3,699
11,835
11,222
13,300
9,908
7,120
-4,346
-6,029
-4,078

6,615
156
619
87
270
1,010
330
136
800
580
464
108

8,720 129, 26'7 187,608 132,14C

55,468

11,174

823
740
768
604
693
631
621
634
702
869
902
858

97, 796 137,987

4,694
13, 29f
8, 793!
78£)
145
-6C

22,021
16. 809
6. 278
7,188
18, 687
16,103
19,510
9,99-7 18,867
22,90() 12,137
35.47^[ 16,916
15,56() 18.561
17, 54<> 14,531

35
6, 580
-327
483
599
2C
59
2S
70
200
959
51
2,014 —1,684
76
6C
144
430
15C
174
290
2,612 - 2 , 505
6,48c

- 1 9 , 952
—14,892
-8,479
—29, 737
—18,003
—21,002
-22,668
—15,-723
- 8 , 686
-29,082
- 1 3 , 376
-10,553

8,619
7,062
17, 233
6,838
12,317
7,241
4,076
4,404
4,839
4,004
3,466
3,530

4,691 -212,152

83, 627

1927
January.
February..
March
April..
May

June

_

59,355
22, 308
16,383
14,493
34,212
14,611

44,465
19,895
10,758
11,902
31,702
11,771

14,890
2,414
5,625
2,592
2,610
1,840

525
659
840
771
673

14,088
10,329
6,576
935
705

13, 56[5
9, 67()
5,73( 5
16<I
3.2

MOVEMENTS TO AND FROM GREAT BRITAIN
[In thousands of dollars]

June,
1927

All countries.
France
Netherlands
Russia

May,
1927

Net imports or exports




June,
1927

Imports
C o u n t r y of origin oi
destination

May,
1927

16,464

9, 674

26,580

29
730

783
2, 847

82
69

34

241
1,230
20,808
49
1,704
123
397

38

144

470
14, 605
515
77

7 694
418
117

__

/fqy
2, 025
253
7fi
1
2,584
1, 239

1

47
2,653

1,228
411
449
3£
1,334 - 1 , 0 5 3
3,0U - 2 , 9 6 8
5,19( - 2 , 5 3 7
• 74

- 1 7 , 522
-14,079
—20, 718 -23,146

2,518
6,543
10,041
4,941
4,890

[In thousands of dollars]

27

35

1,303
411
488
281

M O V E M E N T S TO AND F R O M INDIA

8,435

Spain a n d Canaries
Svy7itzerland

United States
South America
British India
British Malaya
Egypt.
__
Rhodesia
Transvaal
West Africa
All other countries.__

18,181 - 6 , 667
15,480
262
632 j
6,894
3,735 20,943 1
26, 580 -10,116 1
9,674 —1,239

Exports

Imports
Country of origin or
destination

11,514
15,742
7,526
24,678
16,464
8,435

1,870
=
10,116

April,
1927

All countries.
England
France
United States...
Aden and derjendencies
ArabiaBahrein Islands.
British Oceania
Ceylon.
China
Mesopotamia
Straits Settlements
Java __
Egypt.
NatalMauritius and dependencies
All other countries
Net imports

4,945
1,099
39 _
103
91
63

Exports

March,
1927
10,052

April,
1927

March,
1927
6

11

5

10

1

1

1,683
64
82
125
129
10

1
44
124

208

728
2,654

529
7,222

4,941

10,041

605

FEDERAL RESERVE BULLETIN

AUGUST, 1927

FOREIGN EXCHANGE KATES
[Monthly averages of daily quotations. 1 In cents per unit of foreign currency]

EUROPEAN COUNTRIES
Austria
(schilling)

Belgium
(belga)

Bulgaria
(lev)
19.30

Par value

14.07

13.90

1926—July
August
September...
October
November
December—
1927—J anuary
February....
March
April
_.
May
June
July

14.0832
14.0787
14.0837
14.0842
14.0845
14.0802
14.0794
14.0841
14.0738
14.0736
14. 0674
14. 0625
14. 0695

2 2.4250
2. 7538
2.7228
2. 7784
13.9088
13.9108
13.9072
13.9023
13. 9000
13.9000
13. 8968
13. 8900
13. 8980

Par value
1926—July
August
September. _.
October
November. __
December
1927—January
February
March __
AprU
May
June
July

.7266
. 7262
.7246
.7260
.7271
.7244
17230
.7242
.7246
.7249
.7238
.7218
.7232

Czechoslovakia
(crown)

2.9616
2. 9618
2.9618
2. 9618
2.9620
2.9620
2. 9618
2. 9618
2. 9616
2. 9616
2. 9615
2.9616
2. 9626

Denmark
(krone)

England
(pound)

Finland
(markka)

France
(franc)

26.80

486.65

2.52

19.30

26.5015
26.5442
26.5540
26. 5744
26. 6159
26.6369
26.6488
26.6495
26.6456
26. 6681
26. 6784
26. 7207
2& 7276

486.3450
485.8608
485.4168
485.0328
484.8758
485.1250
485.2648
485.0282
485.4025
485. 6546
485. 7020
485. 6088
485. 5056

2.5209
2.5206
2. 5209
2. 5211
2. 5208
2.5210
2.5208
2.5208
2.5205
2. 5206
2. 5201
2. 5194
2. 5196

Russia »
(chervonetz)

Italy
(lira)

Netherlands
(florin)

Norway
(krone)

Poland
(zloty)

Portugal
(escudo)

Rumania
(leu)

19.30

40.20

26.80

19.30

108.05

19.30

40.1773
40.1123
40.0732
40.0036
39. 9850
39. 9927
39. 9868
40.0041
40. 0137
40.0023
40. 0196
40. 0515
40. 0600

21.9304
21.9146
21.9140
23.6060
25.3046
25.2858
25. 5700
25. 7759
26. 0474
25.8592
25. 8360
25. 8896
25. 8352

10.0654
10.8573
10. 9676
11.0892
11.2271
11.2665
11.3076
11.3391
11.3703
11.4226
11.3816
11. 3065
11. 2500

3.3504
3.2950
3. 6688
4.1196
4.2142
4.4350
4.3448
4.3182
4. 5059
5.0204
5.4016
5. 5819
5.4488

5.1296
5.1300
5.1256
5.1108
5.1063
5.1196
5.1152
5.1155
5.1170
5.1138
5.1220
5. 0419
5. 0008

.4601
.4672
.5105
.5357
. 5488
. 5206
.5306
.5743
. 6128
.6157
.6176
. 5964
.6094

2.4658
2.8327
2.8548
2. 9404
3.4167
3.9492
3. 9584
3. 9232
3. 9126
3.9188
3. 9168
3.9169
3.9112

Germany
Hungary
Greece
(reichs- (drachma)
(pengo)
mark)
23.82

19.30

23.8035
23.8096
23.8120
23.8028
23.7488
23.7958
23.7216
23.6977
23.7137
23. 7011
23. 6924
23. 6923
23. 7428

(peseta)

Sweden
(krona)

Switzerland
(franc)

514.60

19.30

26.80

19.30

515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515. 0000
515.0000
515. 0000
515. 0000
515. 0000

15.7169
15.2942
15.2240
15.1016
15.1533
15.2365
16.0340
16. 7805
17.4088
17. 6385
17. 5912
17.1988
17. 0856

26. 7954
26. 7654
26.7476
26.7288
26. 6904
26. 7196
26. 7056
26.6864
26. 7452
26. 7788
26. 7480
26. 7792
26. 7784

19.3604
19.3235
19. 3216
19.3084
19.2846
19.3192
19.2740
19.2318
19.2359
19.2323
19. 2324
19. 2365
19. 2528

Spain

17.49

1.1758
1.1160
1.1609
1.2087
1.2343
1.2643
1.2895
1.2979
1.2898
1.3295
1.3211
1.3430
1.3232

17.5704
17.5604
17. 5620
17. 5616
17. 5642
17. 5654
17. 5332
17.5314
17.5074
17.4773
17. 4556
17.4438
17.4376

Yugoslavia
(dinar)

19.30
1.7672
1.7649
1.7662
1.7674
1.7659
1.7653
1.7635
1.7605
1. 7593
1. 7581
1.7579
1. 7577
1. 7585

OTHER COUNTRIES
Country

Unit

Canada.
Cuba
Mexico

_. Dollar.

Argentina
Bolivia3
Brazil
Chile
Colombia3 3
Ecuador
Peru 3 ..
Uruguay

Peso (gold).
Boliviano...
Milreis..
Peso...
.do.
Sucre_. Libra. _
Peso...

Pe:

.do-

Par
value

July,
1927

June,
1927

100. 00
100. 00
49.85

99. 8520
99.9:
46. 5383

99. 9360 100.1265
99. 9150 99.9187
46.4197 48. 8692

38. 93
32.44
12.17
97. 33
48.67
486. 65
103. 42

96.5540
34. 5950
11. 7916
12.0224
97. 5345
19. 5750
374. 6000
99.1684

96. 4373
34.4231
11. 8050
12.0235
97. 4196
19. 6019
374. 4231
100. 3708

July,
1926

92.0504
33.8077
15. 5631
12. 0500
99. 2885
17. 6827
376. 5865
100.2504

Country
Venezuela 3
China
Do—
.,
Hong Kong
India
Japan3
Java
Straits Settlements.
Turkey
Egypt

Unit

Par
value

July,
1927

* 19. 30 19.1280
Bolivar.
Mexican dollar.. i 48.11 44. 6004
Shanghai tael__. * 66. 85 62. 2760
Dollar.
__"_. 47. 77 48.9772
48. 66 36.1108
Rupee
49. 85 47.1312
Yen...
40.20 40.1963
Florin.-..
Singapore dollar. 56.78 55.9600
Turkish pound,. 439. 65
Egyptian pound 494. 31

June,
1927

July,
1926

18. 7620
45. 5077
62. 7362
49. 0742
36.1973
46. 68961
40. 2079i
55. 9807

19. 3231
51. 7104
71. 3031
54. 5919
36. 2862
47.0685
40. 4736
56. 2092

51. 9992! 55.1773
497.8950: 498.5858

I

1 Based on noon buying rates for cable transfers in New York, as certified to the Treasury by the Federal Reserve Bank of New York, in
pursuance
of the provisions of section 522 of the tariff act of 1922.
2
Rate on franc from July to October, inclusive.
3
Averages based on daily quotations of closing rates as published by New York Journal of Commerce,
* Silver currency. Parity represents gold value of unit in 1913 computed by multiplying silver content of unit by New York average price of
silver for 1913. This average price was $0.61241 per fine ounce, which compares with an average price of $0.56670 for July, 1927, $0.57057 for June,
1927, and $0.65106 for July, 1926. The corresponding London prices (converted at average rate of exchange) were $0.56836, $0.57300, and $0.65386.




606

FEDERAL RESERVE BULLETI N

AUGUST, 1927

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES
ALL COMMODITIES
[Pre-war=100]
Europe

Month

United
States
(Bureau
ofLabor AusStatis- tria Beltics) (gold gium
basis)

England
Den-1 (Board
Bul- Czechoslol
garia vakia mark
of
Trade)

France
Finland

Germany2 Hun(Federal| gary Italy Nether- Norway
Statis- (gold (Bachi) lands (Oslo)
tical basis)
Bureau)

Federal Reserve
Board

Statistical
'Bureau

1925

November...
December

158
156

125
125

569
565

2,822
2,913

1926
January
February
March
April
May
June
July
August
September. _.
October
November...
December..-.

156
155
152
151
152
152
151
149
151
150
148
147

122
120
119
119
118
124
126
126
123
125
128
127

560
556
583
621
692
761
876
836
859
856
865
860

2,901
2,899
2,844
2,774

147
146
145
144
144
144

130
130
133
135
137
142

856
854
858
846
848
851

2,706
2,688
2,649
2,592
2, 751

1927
January
February
March
April
May
June
July

2,842
2,838
2,759
2,723
2,716
2,739
2,718

977
977

950
938
923
928
926
973
972
978
978
979
975
979

158
160

153
152

1,118
1,120

606

157
151
145
141
141
140
141
143
141
145
150
145

151
149
144
144
145
146
149
149
151
152
152
146

1,094
1,091 I
1,081 '
1,081
1,070
1,079
1,079
1,092
1,093
1,095
1J097
1,101

634
636
632
650
688
739
836
770
787
752
684
627

527
540
545
565
597
631
704
691

141
140
139
138
139
142
142

144
143
141
140
141
142

1,103
1,103
1,095
1,093
1,091

622
632
641
636
629
623

591
595
600
610
618
605

518

662
592

|
!
i
I

141
140

129
130

712
715

154
155

217
218

136
134
133
133
132
132
133
134
135
136
137
137

127
125
123
123
122
122
123
122
122
125
127
126

708
704

709
724
740
731
712
709
681

153
149
145
143
143
144
141
139
140
143
147
147

214
211
204
198
196
195
196
196
197
188
182
176

136
136
135
135
137
138

127
129
128
130
133

661
658
646
622
592
567

145
146
144
143
145
148

170
165
160
159
160
159

T
Europe—Continued
Month

Poland2 Russia

Asia and Oceania

Canada Peru
SwitzerSpain Sweden land i i

China Dutch India
(Shang- East (Caltralia . hai) Indies cutta)

Africa
Japan
(Tokyo)"

New
Zealand

Egypt
(Cairo)

South
Africa

-I1925
November..
December...
1926
January
February.__
March
April
May
June
__
July
August
September..
October
November..
December...
1927
January
F e b r u a r y . __
March
April
May
June
July

175
179

186
187

155
156

157 !
157 i

161
164

204
203

165
170

158
158

161
159

198
194

161
160

145
140

154
158
158
178
197
191
181
188
190
192
193
195

183
190
194
196
197
189
183
182
180
179
178
178

186 !
183 I
183
179
179
177
178
180
178
179
185
186

153
152
149
150
151
150
148
147
146
148
148
150

156
155
151
148
147
145
145
146
146
145
147
148

164
162
160
161
157
156
156
154
153
151
152
151

206
205
204
204
206
204
204
204
202
202
198
199

161
160
163
168
167
163
162
162
158
154
155
155

164
163
164
163
160
156
157
161
164
171
174
172

159
154
151
149
146
147
145
147
146
144
146
146

192
188
184
181
177
177
179
177
175
174
171
170

159
159
157
156
156
155
156
154
153
153
151
153

134
134
134
133
128
129
129
129
129
129
130
130

195
197
200
206

177
179
179
177
175
174

184
180
179
177
172

146
146
145
143
145
146

147
145
147
147
147
147
147

151
150
149
149
152
154

200
204
206
201
207
206
205

154
153
150
151
152
155

173
172
175
173
171
169

146
148
146
145
146 ,
149 I

170
171
171
170
171
173

150
146
146

126
124
124
122
124
123

160
157
156
156
155
156
158
157
156
156
157
154
154

124
120

"122
~126

128
126

2
i First of month figures.
New index.
The foreign index numbers of wholesale prices are cabled to the Federal Reserve Board by the various foreign statistical offices. Index number
of commodity groups for most of the countries are also available in the office of the Division of Research and Statistics of the board, and may be
had upon request.
Wherever possible the indexes have been shifted from original bases to a 1913 base. Further information as to base periods, sources, number
of commodities, and period of the month to which thefiguresrefer may be found on page 48 of the January, 1924, issue of the BULLETIN.




AUGUST,

607

FEDERAL RESERVE BULLETIN

1927

WHOLESALE PRICES—Continued
GROUPS OF COMMODITIES
[Pre-war=100]
ENGLAND—BOARD

ITALY- CHAMBER OF COMMERCE

OF TRADI
1927

June
All commodities
Total food
Cereals
Meat and fish.__
Other foods
Total, not food
Iron and steel
Other minerals
and metals
Cotton
Other textiles...
Miscellaneous

May-

April

March February

June

Mi
153
154
133
172
135
122

140
148
. 148
132
163
135
125

141
147
148
132
161
137
126

143
152
149
141
166
137
127

146
155
150
154
161
142
120

117
155
154
141

121
150
153
141

126
141
155

131
141
154
141

134
137
152
142

145
161
158
141

632
630
583
641

739
660
554
739

FRANCE—STATISTICAL BUREAU
All commodities
All foods..
Animal foods
Vegetable foods.
Sugar, coffee,
cocoa
All industrial material
Minerals
„
Textiles.
__
Sundries

623
611
557
653

629
630
574
674

636
646
603
678

641
643
621
640

616

637

650

679

689

633
574
767
608

629
579
734
615

629
588
738
608

641
616
742
612

634
621
696
619

802
753
1,030
725

138

137

135

135

136

132

140
168
112

139
169
107

135
158
107

136
156
108

139
156
111

124
127
121

126
157
128

128
157
129

132
146
127

139
144
128

147
144
128

131
109
136

132
130
126

131
129
126

130
131
125

130
135
124

129
135
125

128
131
123

107
153

108
150

110
147

112
144

109
141

114
150

125
124

124
124

122
125

120
125

122
125

111
121

85

84

85

87

87

126

129
51

129
50

131
51

133
47

133
54

150

149

149

149

150

161
146
130

160

155

155

151

142

144
129

143
129

142
129

142
129

150
132

158

156

154

152

151

163

47
150

'

147
155

147
155

147
155

147
156

145
157

145
159

126
146

128
145

123
146

124
145

118
142

106
144

* First-of-month figures.




April

March

A1J commodities
Vegetable products..
Animal products.„_.
Fuels and oils
Raw materials for
manufacture
in
iron and metal
industry
Paper pulp and paper Raw materials for
manufacture
in
leather i n d u s t r y Raw and manufactured chemicals. ._
Raw materials _.
Semifinished materials
Finished materials..
Producers' goods
Consumers' goods...

June

509
558
579
531

537
590
621
552

565
618
642
589

593
640
670
603

601
643
681
596

654
696
727
658

490
446
470

516
475
498

544
501
523

574
540
,'546

584
551
552

637
677
.597

483

503

546

580

593

639

589

601

618

640

653

688

494
550

536
571

559
594

593
612

603
618

630
618

OF T R A D E
145
146
130
122

146
147
136
125

146
146
136
127

150
146
144
120

119

122

122

124

125

163

164

166

168

170

119

116

119

120

122

120

170
138

168
134

168
135

170
138

170
140

174
140

151
148
137
153

145
148
133
152

145
150
134
154

146
151
135
155

145
151
134
157

150
155
138
160

146
151
128
118

143
145
128
116

118
158

•AUSTRALIA-BUREAU
All commodities
!
Metals and coal
'
Textiles.
__!
Agricultural prod- |
ucts
'
Dairy products
'
Groceries and to- j
bacco.
-J
Meat
_
__
Building materials. _'
Chemicals
_

February

OF CENSUS AND STATISTICS

155
178
142

151
180
146

150
180
142

153
180
138

154
181
133

163
173
147

162
160

155
150

156
145

170

178

145

144

184
160

167
124
152
179

166
108
153
179

164
110
148
181

165
105
147
180

166
107
151
180

167
136
150
178

INDIA (CALCUTTA)—DEPARTMENT OF STATISTICS

S W I T Z E R L A N D i—DR. J. .]L O R E N Z

All commodities
Consumers' goods...
Agricultural products
Industrial products.

All commodities
Total food
Vegetable foods.
Animal foods
All industrial products
. .___.
Textiles
Chemicals
Minerals and
metals
Building materials _
_.
Other vegetable
products
Sundries
.___

SWEDEN—BOARD

GERMANY—FEDERAL STATISTICAL BUREAU
All commodities
Total agricultural
products
Vegetable foods.
Cattle.
Animal products..
_
Fodder..—
Colonial goods
Total industrial raw
materials and
semi-finished
products
Coal
Iron
_
Non ferrous
metals
__
Textiles
Hides and
leather..
_
Chemicals
- Artificial fertilizers
Technical oils
and fats
Rubber
Paper materials
and paper
Building material
Total
industrial
finished products.
Producers' goods
Consumers'
goods

May

June

142
156
157
137
175
134
120

14C

1926

1927

1926

1927
May

All commodities
Cereals _. _
«. _
Pulses
Tea
Other foods _
Oil seeds
„___
Raw jute
Jute manufactures. _.
Raw cotton,
Cotton manufactures
Other textiles
Hides and skins
Metals
Other articles

April

1926

FebMarch ruary

January

May

146
140
154
. 138
165
141
86
132
160

145
141
154
138
167
144
88
142
148

146
141
155
138
166
134
93
145
148

148
142
156
138
167
143
91
139
150

146
143
155
140
165
141
93
139
127

146
137
139
203
149
133
123
136
143

158
126
112
137
154

159
126
116
137
144

163
127
119
138
145

163
128
123
140
150

156
122
117
138
149

183
112
105
139
133

608

FEDEEAL KESEEVE BULLETIN

AUGUST,

1927

RETAIL FOOD PRICES AND COST OF LIVING
RETAIL FOOD PRICES
[Pre-war=100]
European countries
Month

United
States Aus(51
tria Belcities) (Viengium
na)

1925
October
November..
December...

158
164
162

1926
January
February. _.
March
April
May
June
July
August
September..
October
November..
December...

161
158
157
159
158
157
154
153
155
157
158
159

1927
January
February...
March
April
May
June
July

156
153
151
151
152
155

Bui-

Other countries

NethSwitEng- Es- France Ger- Greece Italy
(Mi- er- Nor- Rus-3 zerland'2 tonia2 (Paris) many (Athens) lan) lands way sia land

Canada 2

New South
Aus- India
Zeatralia (Bombay) land Africa

144
146 2,698
148 2,785

172
172
174

130
129
133

433
444
463

151 1,597
147 1,676
146 1,718

649
660

149
149
148

228
223
221

215
217
224

168
168
167

147
151
156

157
156
155

148
149
151

155
156
154

119
117
116

119
117
114
114
113
116
115
117
116
117
117
118

141
141
137
139
146
155
177
187
184
194
204
206

2,773
2,771
2,719
2,652

171
168
165
159
158
158
161
161
162
163
169
169

137
138
136
139
139
139
139
138
128
127
127
128

480
495
497
503
522
544
574
587
590
624
628
599

143
142
141
142
142
143
145
146
145
145
148
150

1,760
1,738
1,805
1,821
1,817
1,870
1,849
1,871
1,890
1,933
1,986
1,973

681
676
654
645
664
657
654
660
652
654
630
631

148
148
147
146
146
146
146
146
145
146
147
146

216
212
205
198
195
194
198
196
193
191
186
184

226
230
234
241
250
243
236
234
231
230
234
235

165
163
161
161
159
159
159
157
158
160
159
159

157
155
154
153
152
149
149
150
147
147
148
151

155
154
159
163
163
162
159
157
155
153
155
158

151
150
151
150
150
152
155
153
152
153
152
154

154
153
152
151
151
151
149
149
148
147
146
149

116
117
118
119
119
118
117
117
117
120
119
117

119
119
118
119
119
122 i

207
210
201
200
196

2,586
2,569
2,533
2,478
2,630

167
164
162
155
154
154
159

131
132
129
130
130

592
585
581
580
589
580

151
152
151
150
151
153

1,975
1,975
1,975
1,975
1.975

625
642
635
617
565
541

147
147
146
145
145
145

174
177
173
169
169
172

208
208
205
203
201
199

158
157
156
156
156
157

153
151
149
146
145
146

158
153
151
151
152
153

155
152
152
151
150
151
154

148
146
146

116
117
118
119
121

2,717
2,713
2,637
2,641
2,597
2,618
2,598

f
i

COST O F LIVING
[Pre-war=100]

Other countries

European countries
Month

Massachusetts

Bel- Czecho- Enggium slovakia l a n d 2

Finland

France Ger- Greece
(Paris) many (Athens)

NethHun- Italy
ergary (Mi- lands
lan)

Norway

Po- Spain Sweland
den

Switzerland

Canada2

168
168
168

149
152
154

Australia

India
(Bom- South
bay) Africa

X 1925

Oct
Nov
Dec

^ 1926
Jan _

Feb

Mar—
Apr
May. _June,
July- _-_
Aug
Sept
Oct
Nov.Dec

162
162
165

533
534
534

875
863
866

176
176
177

1,228
1,227
1,197

164
163
161
161
159
159
159
158
158
158
159
159

527
526
521
529
558
579
637
681
684
705
730
741

854
845
832
832
837
861
876
878
878
888
902
912

175
173
172
168
167
168
170
170
172
174
179
179

1,166
1,175
1,172
1,163
1,159
1,175
1,183
1,213
1,203
1,197
1,193
1,197

158
157
156
156
157
156

755
770
771
774
776
785
790

914
914
915
923
930
949

175
172
171
165
164
163
166

1,187
1,189
1,183
1 173
1 166
1 184

421

451
485
539
545

144
141
141

1, 547
1,610
1,644

124
123
123

643
643
649

140
139
138
140
140
141
142
143
142
142
144
144

1,673
1,664
1,706
1,731
1,741
1,791
1,808
1,818
1,833
1,862
1,895
1,889

122
121
119
119
118
116
117
116
114
114
116
116

665
661
647
642
652
650
649
652
647
672
657
657

119
120
119
119
119

655
667
663
651
612
5S6

177

234

174

225

171

218

164

217

168

213

166

203

167

201

152
157
173

189
186
183

175

170
171
169
177
185
184
178
182
189
193
197
199

188
183
185
187
183
183
186
178
187
190
191
193

174

202
201
200
203
204

171
196
190
194
196 ~~170"
196
196

173
172

"m"

~~I55~

153
153
155

132
:31
131

167
165
163
162
160
160
160
159
159
160
159
159

155
154
154 ~~157~
153
152
150
161
150
150
149
158
149
150
151
157

155
154
155
153
153
155
157
155
155
155
154
156

131
131
131
131
132
131
130
130
130
131
131
129

158
158
157
156
156
157

152
151
150
148
148
149

156
155
155
153
152
154
156

130
130
131
131
132

1927
Jan

Feb

Mar
Apr
Mav
June
July

11921 = 100.

524

145
145
145
146
147
148

1

i

2 First of t h e m o n t h figures.

3

Revised since January, 1927.

N O T E . — Information as to t h e n u n b 9 r of fools and i t e i i s included, t h e original base periods, a n d sources m a y be found on page 276 of t h e A p r i l '
1925, issue of t h e B U L L E T I N . T a a original bases of the indexes have been shifted to J u l y , 1914, wherever possible.




AUGUST,

1927

FEDEBAL RESERVE BULLETIN

609

RULINGS OF THE FEDERAL RESERVE BOARD
Reserves against so-called savings accounts which are
subject to check.

The Federal Reserve Board has been asked
to rule on the question whether accounts of
a certain member bank known as special
reserve savings accounts may properly be
classified as savings accounts within the meaning of section 19 of the Federal reserve act and
accordingly subject only to a 3 per cent reserve
requirement.
These so-called special reserve savings accounts are made up of individual accounts,
bank accounts, and trust-department accounts.
The pass book provides that 30 days7 notice
before withdrawal may be required by the bank
and also that the pass book must be presented
whenever a deposit or withdrawal is made.
It appears, however, that in actual practice
these deposits are subject to check without the
presentation of the pass book. It also appears
that in some cases the pass book is held by the
bank, so that it is not necessary for the depositor to present the pass book with each withdrawal.
In the board's ruling published in the June,
1923, BULLETIN at page 677 it was held that
an account which is subject to withdrawal by
check without the presentation of the pass book
is not a savings account, on the principle that
a checking account can not properly be considered a savings account within the meaning
of section 19 of the Federal reserve act. The
so-called special reserve savings accounts of
the member bank in question are subject to
check, and these deposits, therefore, can not
properly be classified as savings accounts. In
order to comply with the board's regulation D
the pass book must be presented to the bank
whenever a withdrawal is made. Nor does the
retention.of the pass book by the bank make the
account a savings account. The pass book is
the depositor's receipt. The apparent purpose
of its retention by the bank is to render the
account subject to check without the necessity
of presenting the pass book. In the board's
opinion, an account which is subject to check
in this manner is not properly a savings account
within the meaning of section 19.
Some of the deposits under consideration,
known as special reserve savings accounts, are
bank deposits. Savings accounts are commonly
understood to consist of the savings or accumulations of small depositors. Deposits made by
one bank in another are obviously not deposits




of this kind. Savings deposits and bank deposits are of essentially different character.
For the reasons stated, it is the board's
opinion that the special reserve savings accounts under consideration are not savings
deposits within the meaning of section 19 of the
Federal reserve act or the board's regulation D.
Neither do such accounts come within the
other classes of time deposits defined in the
board's regulations. They should accordingly
be classed as demand deposits and subjected
to a corresponding reserve.
Violations of section 22 of the Federal reserve act
and of sections 5208 and 5209 of the Revised
Statutes of the United States "

The first paragraph of section 22 (a) of the
Federal reserve act provides that—
No member bank and no officer, director, or employee
thereof shall hereafter make any loan or grant any
gratuity to any bank examiner. Any bank officer,
director, or employee violating this provision shall be
deemed guilty of a misdemeanor and shall be imprisoned not exceeding one year, or fined not more than
$5,000, or both, and may be fined a further sum equal
to the money so loaned or gratuity given.

The Federal Reserve Board has recently
been requested to make a ruling as to whether
or not it is unlawful under this provision of
section 22 (a) for a State bank which is a
member of the Federal reserve system to make
a loan to a bank examiner appointed by a
State and charged with the examination of
State banks.
The violation of the provision of section-22 (a)
above quoted is made a criminal act and no
ruling by the board would afford any protection to a person indicted for violation of this
provision. Furthermore, the question of the
interpretation of the criminal provisions of the
Federal reserve act is one which comes within
the jurisdiction of the Department of Justice
rather than the jurisdiction of the Federal
Reserve Board. The board is of the opinion,
therefore, that it can not properly undertake
to make a definite ruling on this question. It
may be stated, however, that section 22 (a)
does not by its terms limit the class of bank
examiners to whom member banks are forbidden to make loans or grant gratuities, but
provides that no member bank shall make a
loan or grant a gratuity "to any bank examiner." In view of the broad terms used in
this section, it would appear that State banks

610

FEDERAL RESERVE BULLETIN

which are members of the Federal reserve
system are forbidden to make loans or grant
gratuities to all bank examiners, regardless of
the source from which such examiners receive
their appointments. As stated above, however, the board feels that it should not make a
definite ruling on this question.
It has been suggested to the board in connection with this question that probably a
number of the State banks which are members
of the Federal reserve system are not aware
of the terms of the provisions contained in
section 22(a). It was accordingly suggested
that this section should be called to their
attention.
Section 22 of the Federal reserve act and
also sections 5208 and 5209 of the Revised
Statutes of the United States are specifically
made applicable to all member banks, and a
violation of the provisions of these sections
by an officer, director, or employee of such
banks is made a criminal act subject to severe
penalty. If an officer, director, or employee
of a member bank should violate the provisions
of section 22 of the Federal reserve act or of
sections 5208 or 5209 of the Revised Statutes
of the United States, the fact that he was
ignorant of the provisions of these sections
would not protect him from prosecution.
The board feels, therefore, that in order to
avoid any possible embarrassment the officers,
directors, and employees of all the member
banks should be thoroughly familiar with the
provisions of these sections. It is accordingly
deemed advisable to publish herewith for the
information of the officers, directors, and employees of member banks who may not already
be familiar with them, the provisions of section 22 of the Federal reserve act and also the
provisions of sections 5208 and 5209 of the
Revised Statutes of the United States. They
are as follows:
SECTION 22 OF THE FEDERAL RESERVE ACT

(a) No member bank and no officer, director, or
employee thereof shall hereafter make any loan or
grant any gratuity to any bank examiner. Any bank
officer, director, or employee violating this provision
shall be deemed guilty of a misdemeanor and shali be
imprisoned not exceeding one year, or fined not more
than $5,000, or both, and may be lined a further sum
equal to the money so loaned or gratuity given.
Any examiner or assistant examiner who shall accept
a loan or gratuity from any bank examined by him, or
from an officer, director, or employee thereof, or who
shall steal, or unlawfully take, or unlawfully conceal any
money, note, draft, bond, or security or any other property of value in the possession of any member bank or
from any safe deposit box in or adjacent to the premises
of such bank, shall be deemed guilty of a misdemeanor
and shall, upon conviction thereof in any district court
of the United States, be imprisoned for not exceeding




AUGUST,

1927

one year, or fined not more than $5,000, or both, and
may" be fined a further sum equal to the money so
loaned, gratuity given, or property stolen, and shal]
forever thereafter be disqualified from holding office as
a national bank examiner.
(b) No national bank examiner shall perform any
other service for compensation while holding such office
for any bank or officer, director, or employee thereof.
No examiner, public or private, shall disclose the
names of borrowers or the collateral for loans of a member bank to other than the proper officers of such bank
without first having obtained the express permission in
writing from the Comptroller of the Currency, or from
the board of directors of such bank, except when ordered
to do so by a court of competent jurisdiction, or by
direction of the Congress of the United States, or of
either House thereof, or any committee of Congress, or
of either House duly authorized. Any bank examiner
violating the provisions of this subsection shall be imprisoned not more than one year or fined not more than
$5,000, or both.
(c) Except as herein provided, any officer, director,
employee, or attorney of a member bank who stipulates
for or receives or consents or agrees to receive any fee,
commission, gift, or thing of value from any person,
firm, or corporation, for procuring or endeavoring to procure for such person, firm, or corporation, orfor any other
other person, firm, or corporation, any loan from or the
purchase or discount of any paper, note, draft, check, or
bill of exchange by such member bank shall be deemed
guilty of a misdemeanor and shall be imprisoned not more
than one }^ear or fined not more than $5,000, or both.
(d) Any member bank may contract for, or purchase
from, any of its directors or from any firm of which any
of its directors is a member, any securities or other
property, when (and not otherwise) such purchase is
made in the regular course of business upon terms
not less favorable to the bank than those offered to
others, or when such purchase is authorized by a majority of the board of directors not interested in the sale
of such securities or property, such authority to be
evidenced by the affirmative vote or written assent of
such directors: Provided, however, That when any
director, or firm of which any director is a member,
acting for or on behalf of others, sells securities or other
property to a member bank, the Federal Reserve Board
by regulation may, in any or all cases, require a full
disclosure to be made, on forms to be prescribed by it,
of all commissions or other considerations received, and
whenever such director or firm, acting in his or its own
behalf, sells securities or other property to the bank the
Federal Reserve Board by regulation, may require a full
disclosure of all profit realized from such sale.
Any member bank may sell securities or other property to any of its directors, or to a firm of which any
of its directors is a member, in the regular course of
business on terms not more favorable to such director
or firm than those offered to others, or when such sale
is authorized by a majority of the board of directors of
a member bank to be evidenced by their affirmative
vote or written assent: Provided, however, That nothing
in this subsection contained shall be construed as
authorizing member banks to purchase or sell securities
or other property which such banks are not otherwise
authorized by law to purchase or sell.
(e) No member bank shall pay to any director,
officer, attorney, or employee a greater rate of interest
on the deposits of such director, officer, attorney, or
employee than that paid to other depositors on similar
deposits with such member bank.
(f) If the directors or officers of any member bank
shall knowingly violate or permit any of the agents,
officers, or directors of any member bank to violate

AUGUST,

1927

FEDERAL KESERVE BULLETIN

any of the provisions of this section or regulations of
the board made under authority thereof, every director
and officer participating in or assenting to such violation
shall be held liable in his personal and individual
capacity for all damages which the member bank, its
shareholders, or any other persons shall have sustained
in consequence of such violation
SECTION

5208 OF

THE REVISED STATUTES
UNITED STATES

OF

THE

611

defined in the Act of December twenty-third, nineteen
hundred and thirteen, known as the Federal reserve
Act, who embezzles, abstracts, or willfully misapplies
any of the moneys, funds, or credits of such Federal
reserve bank or member bank, or who, without authority from the directors of such Federal reserve bank
or member bank, issues or puts in circulation any of the
notes of such Federal reserve bank or member bank, or
who, without such authority, issues or puts forth any
certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond,
draft, bill of exchange, mortgage, judgment, or decree,
or who makes any false entry in any book, report, or
statement of such Federal reserve bank or member
bank, with intent in any case to injure or defraud such
Federal reserve bank or member bank, or any other
company, body politic or corporate, or any individual
person, or to deceive any officer of such Federal reserve
bank or member bank, or the Comptroller of the Currency, or any agent or examiner appointed to examine
the affairs of such Federal reserve bank or member bank,
or the Federal Reserve Board; and every receiver of a
national banking association who, with like intent to
defraud or injure, embezzles, abstracts, purloins, or
willfully misapplies any of the moneys, funds, or
assets of his trust, and every person who, with like
intent, aids or abets, any officer, director, agent,
employee, or receiver in any violation of this section
shall be deemed guilty of a misdemeanor, and upon
conviction thereof in any district court of the United
States shall be fined not more than $5,000 or shall be
imprisoned for not more than five years, or both, in the
discretion of the court.
Any Federal reserve agent, or any agent or employee
of such Federal reserve agent, or of the Federal Reserve
Board, who embezzles, abstracts, or willfully misapplies
any moneys, funds, or securities intrusted to his care, or
without complying with or in violation of the provisions
of the Federal reserve Act, issues or puts in circulation
any Federal reserve notes shall be guilty of a misdemeanor and upon conviction in any district court of the
United States shall befinednot more than $5,000 or imprisoned for not more than five years, or both, in the
discretion of the court.

It shall be unlawful for any officer, director, agent,
or employee of any Federal reserve bank, or any member bank as defined in the Act of December 23, 1913,
known as the Federal Reserve Act, to certify any
check drawn upon such Federal reserve bank or member bank unless the person, firm, or corporation drawing
the check has on deposit with such Federal reserve
bank or member bank, at the time such check is certified, an amount of money not less than the amount
specified in such check. Any check so certified by a
duly authorized officer, director, agent, or employee
shall be a good and valid obligation against such
Federal reserve bank or member bank; but the act of
any officer, director, agent, or employee of any such
Federal reserve bank or member bank in violation of
this section shall, in the discretion of the Federal
Reserve Board, subject such Federal reserve bank to
the penalties imposed by section 11, subsection (h) of
the Federal Reserve Act, and shall subject such member bank, if a national bank, to the liabilities and
proceedings on the part of the Comptroller of the
Currency provided for in section 5234, Revised Statutes, and shall, in the discretion of the Federal Reserve
Board, subject any other member bank to the penalties
imposed by section 9 of said Federal Reserve Act for
the violation of any of the provisions of said Act.
Any officer, director, agent, or employee of any Federal
reserve bank or member bank who shall willfully
violate the provisions of this section, or who shall
resort to any device, or receive any fictitious obligation,
directly or collaterally, in order to evade the provisions
thereof, or who shall certify a check before the amount
thereof shall have been regularly deposited in the bank
by the drawer thereof, shall be deemed guilty of a misdemeanor and shall, on conviction thereof in any district
As stated above, the board can npt undercourt of the United States, be fined not more than
$5,000, or shall be imprisoned for not more than five take to rule whether or not a particular act
years, or both, in the discretion of the court.
comes within the provisions of these sections.

In case of doubt as to whether a particular act
would come within these provisions, it is sugAny officer, director, agent, or employee of any gested that the attorney of the member bank
Federal reserve bank, or of any member bank as be consulted.

SECTION 5209 OF THE REVISED STATUTES OF THE UNITED
STATES




612

FEDERAL RESERVE BULLETIN

AUGUST, 1927

tics; (9) in any other fiduciary capacity in which State
banks, trust companies, or other corporations which
come into competition with national banks are perThe following list shows the changes affect- mitted
to act under the laws of the State in which the
ing State bank membership during the month national bank is located.
ended July 21, 1927, on which date 1,319 State
institutions were members of the system:
Changes in State Bank Membership

Location
CHANGES
Total
resources

Capital

Surplus

$500,000

$300,000 $5,273,000

District No. 1

Consolidated with national bank:
Fitchburg Bank & Trust Co.,
Fitchburg, Mass
District No. 2

Merged with Fidelity Union Trust
Co., Newark, N. J., a member:
City Trust Co., Newark, N. J.
(member)
Ironbound Trust Co., Newark,
N. J. (member)
North End Trust Co., Newark,
N. J. (nonmember)
American National Bank, Newark, N. J.—
Citizens National Bank & Trust
Co., Newark, N. J
Merged with Interstate Trust Co.,
New York, N. Y., a member:
Franklin National Bank, New
.York, N. Y
_.

6,886,000

300,000

300, 000

500,000

500,000 17,640,000

200,000

100,000

1,426,000

500,000 1,000,000 18,811,000
200,000

100, 000

2, 576, 000

800,000

400, 000

7,397,000

District No. 6

District No. 8

l
Mechanicks National Bank_
2
12
Citizens National Bank
First National Bank
Ito9
Ito9
Gramatan National Bank___
19
Hanover National Bank
I
to9
Mechanics National Bank.
Ito9
Caldwell National Bank
1 to 9
First National Bank
15 to 9
First National Bank
Ito9
First National Bank
1 to 9
First National Bank
_
Ito9
First National Bank
1 to 9
First National Bank
Ito9
Citizens National Bank
18
Second National Bank
Ito9
National Bank of
Ito9
Merchants National Bank...
lto 9
Third National Bank
!5to9
La Salle National Bank
15 to 9
Second National Bank
15 to 9
City National Bank
7 First National Bank
15 to 9
8 First National Bank
lto 9
8 Boone County National
15 to 9
lto 9
10 First National Bank
10 National Bank of Commerce 1 to 3, 5 to 9
12 United
States National 1 to 7 and 9
Bank.

1
1
2
2
2
2
2
2
3
3
3
3
3
4
4
5
6
6
7
7
7

100, 000

30,000

1,096,000

250, 000

300, 000

8, 049,000

Changes in National Bank Membership
The Comptroller of the Currency reports the following increases and reductions in the number and capital
of national banks during the period from June 25 to
July 22, 1927, inclusive:
Number of
banks

District No. 9

Absorbed by State Bank of Madelia,
Madelia, Minn., a member: First
National Bank, Madelia, Minn....

25,000

14,000

356,000

New charters issued __
Restored to solvency
__ . . .
Increase of capital approved 1
Converted to national bank: CenAggregate of new charters, banks restored to
tralia State Bank, Centralia, Wash.
14, 000
703, 000
100, 000
solvency, and banks increasing capital
Absorbed by national bank: Orange
Liquidations
_
County Trust & Savings Bank,
Reducing
capital
Santa Ana, Calif
_. 300, 000 150, 000 2, 585, 000
Total liquidations and reductions of capital. _
Consolidation of national banks under act of Nov.
7, 1918..
—
Fiduciary Powers Granted to National Banks Consolidation of national banks and State banks
under act of Feb. 25, 1927
_.
_
Total consolidations
__
During the month ended July 21, 1927, the Federal
Reserve Board approved applications of the national Aggregate increased capital for period
banks listed below for permission to exercise one or Reduction of capital owing to liquidations, etc
Net increase
more of the fiduciary powers named in section 11 (k)
District No. 12

of the Federal reserve act as amended, as follows: (1)
Trustee; (2) executor; (3) administrator; (4) registrar
of stocks and bonds; (5) guardian of estates; (6) assignee; (7) receiver; (8) committee of estates of luna-




Powers
granted

Name of bank

1 Supplemental.

Consolidated with national bank:
American Trust & Savings Bank,
2, 250, 000 1, 500, 000 17,823, 000
Birmingham, Ala
Converted into national bank: Mer500, 000
chants Bank, Mobile, Ala
500, 000 14,369, 000
Absorbed by nonmember: Jonesboro Trust Co., Jonesboro, Ark...
Voluntary withdrawal: Grenada
Bank, Grenada, Miss

Concord, N. H
Tilton, N. H
Batavia, N. Y
Bronxville, N. Y__.
New York, N. Y.__
Bayonne, N. J
Caldwell, N. J
Milltown, N. J
Princeton, N. J
Ashley, Pa
Conshohocken, Pa__
Philadelphia, Pa.__
Sayre, Pa
Harlan, Ky
Warren, Ohio
Petersburg, Va
Mobile, Ala
Nashville, Tenn
LaSalle, 111
Richmond, Ind
Clinton, Iowa
Flint, Mich
___
Madison, Ind
Columbia, Mo
Florence, Colo
Tulsa, Okla
Los Angeles, Calif..

District
No.

Amount
of
capital

12
1
36

$1,955,000
75,000
5,920,000

49

7,950,000
3,730.000
25,000
3,755,000

'I

19

3

2,100,000

4

4,895,000
6,995,000
7,950,000
3,755,000
4,195,000

7

1
Includes two increases in capital aggregating $450,000 incident to
consolidations under act of Nov. 7, 1918, and four increases aggregating.
$2,960,000 incident to consolidations of State banks under act of Feb.
25, 19^7.

AUGUST,

613

FEDERAL EESERVE BULLETIN

1927

DETAILED BANKING STATISTICS FOR THE UNITED STATES
FEDERAL RESERVE BANKS
RESOURCES AND LIABILITIES, BY WEEKS
RESOURCES
[In thousands of dollars]
Federal Reserve Bank

Total
Boston

Gold with Federal reserve
agents:
July 6
July 13.
July 20
July 27
Gold redemption fund with
U. S. Treasury:
July 6.
July 13___
July 20
July 27
„
Gold held exclusively against
Federal reserve notes:
July 6
July 13
July20
July 27
Gold settlement fund with
Federal Reserve Board:
July 6
July 13
July 20
July 27
Gold and gold certificates held
by banks:
July 6..
July 13
July 20
July 27
Total gold reserves:
July 6
J u l y 13
J u l y 20
J u l y 27
Reserves other t h a n gold:
July 6 . .
J u l y 13
J u l y 20
J u l y 27

New
York

Philadelphia

Cleveland

Richmond

Atlanta

Chi-

St. Minne- Kansas
Dallas
Louis apolis
City

San
Francisco

1, 606, 704
1, 633,803
1, 664,068
1,652, 604

134,914
142,409
139, 572
136,784

381,719
381, 593
411, 594
411,454

115,633
120,135
121,295
119, 251

196,059
196,368
197,302
201,850

51,240
50,067
48,950
47, 747

146,025
143,137
138, 558
137,671

243,955
253,955
263,916
263,865

47,738
40, 883
40, 868
47,396

10,524
2,270
4,340
6,242

11,720
10,061

3,116
3,607
3,232
4,197

1,329
1,371
1,547
1,574

1,940
2,392
2,425
2,275

1,578
2,791
1,916

7,175

7,558
9,414
11,340
13,326

1,459
1,634
1,150
1,587

1, 554, 442
1,674, 686
1, 704, 936
1,700,000

145, 438
144,679
143,912
143,026

393, 439
391,654
420, 393
418,629

123,191
129, 549
132,635
132,577

199,175
199,975
200, 534
206,047

52, 569
51,438
50,497
49,321

147, 965
145, 529
140,983
139,946

245, 533
256, 746
265,832
267,831

12,412
15,405
14, 790
15,311

598,832
585,410
549,380
567,132

45, 748
54,326
42,744
49,446

189, 537 .46, 540
196,684 39,784
217,300 34, 646
202,316 33,482

52, 677
48, 584
46, 513
54,417

22,102
23,474
25,857
28,773

12, 869
9,518
6,355
4,330

118, 326
115,247
87,857
100,782

734,835
752, 582
757,363
756,356

28,901
31,606
33,878
32,799

485,443
489,467
490,443

27,074
28,478
28, 815
29,014

62,322
60,434
62,143
63,443

4,711
5,210
5,412
5,131

4,003
4,323
4,280
4,

52,471
59, 589
57, 698
56,905

15,784
16,730
16.347
15,990

7,306
7,751
8,160
8,467

8,147
8,748
9,305
8,941

2,988,109
3, 012,678
3, Oil, 679
3,023,488

220,087
230,611
220, 534
225,271

1,068,419 196,805 314,174
1,077,805 197,811
1,128,136 196,096 309,190
1, 111, 033 195,073 323,907

79,382
80,122
81, 766
83,225

164,837
159,370
151,618
148,474

416,330
431, 582
411,387
425,518

46,922
45,114
43,596
51,039

77,841
79,244
77, 617
76,301

94, 014
91,054
96, 797
95,115

50.605
46, 724
46,015
45,249

258, 693
264,248
248, 927
243, 283

152,848
158,160
159,290
157,322

17,153
17,103
16,370
15,471

7,807 13,149 22,154
8,294 14,557 23, 918
8,506 14,414 24,276
7,854 15,247 24,636

17, 971
17, 719
17,""
17,431

3,710
4,247
4,408
4,245

5,487
5,783
6,r6,035

7,759
7,917
7,913
8,009

8,713
8,309
8, 890
9,327

32, 927
34,263
33,170
32,854

5, 525 10,493
5,677 10,373
6,230 11,461
6,434 9,779

10,953 56,221
13,771 60,689
13,640 58,337
13,724

56,248
55,605
56,073
58,109

26.
26, 606
26,029
25,495

186,791
189,468
188,802
177, 785

I? 436
759
919
1,204

2,795
3,099
2.304
1,933

1,
1,052
932
1,180

2,950
2,433
1,964
2,737

57,657
61,448
59,256.
60,073

59,043
58, 704
58,377
60,042

28,279
27, 658
26,961
26,675

189, 741
191, 901
190, 766
180, 522

18, 726 12,878 26,824
12,979 10,045 23,602
12,459 10,201 29,115
19,738 7,761 26,132

13,125
9, 671
9,621
9,003

39,480
41, 496
26, 712
30,952

9,201 29,472
9,395 30,851
9,433 31,449
9,571 31,809

Total reserves:
July6__
3,140,957 237,240 1,101, 346 202, 330
July 13
3,170,!"" 247, 714
203, 488
3,170,'
July20
236,904 1,161* 306 202, 326
3,180,810 240,742 1,143,887 201, 507
July 27
Nonreserve cash:
11,319
977
50,131
3,
July 6
64, 424
16,617 1,024
5,561
July 13
63, 333
6,353
15,044 1,248
July 20
61,072
6,466
14,751 1,159
July 27
Bills discounted:
Secured by IT. S. Government obligations—
301,063
12, 789
121, 858 31,534
July6
244,133
103,761 31, 038
12,941
July 13
216,443
17,090
July 20
61,933 27,910
220,671
July27
16, 771
67,229 28,974
Other bills discounted—
22,980 15, 886
July 6
205, 705 15, 873
9,473
30,729 12,957
July 13
182,i "
25,159 13,948
186, 879 14,580
July 20
..
25,305 13,924
177,459
9,092
July 27
Total bills discounted:
July6_
July 13
July 20
July 27




506, 788
426,202
403, 322
398,130

28, 662
22,414
31, 670
25,863

144, 838
134,490
87,092
92,534

47, 420
43,995
41, 858
42,898

324, 667
319, 366
320, 651
333, 686

87,189
88, 416
90,272
91,079

177,986
173,927
166,032
163,721

438,484
455, 500
435, 663
450,154

64, 893
62,833
61,185
68,470

81, 551
83, 491
82,025
80,546

99, 501
96, 837
102,860
101,150

5;
54, 641
53,928
53, 258

267, 4Q6
272, 557
257,817
252,610

3,816
4,076
4,810
3,241

5,332
5,729
5,931
5,816

4,405
5,328
5,063
5,039

8,977
11,233
10,057
9,383

3,705
4,187
4,027
3,911

877
1,457
l', 557

2,049
2,937
2,940
3,167

2,281
2,761
2,384
2,512

2,504
3,514
3,779
4,070

26, 775
30,285
20,016
23, 937

8,288
6,316
4,794
5,163

6, 550
6,327
7,113
4,834

51,257 16, 680
22,977 12, 697
34,931 16, 796
30,752 14,411

5,032
644
1,679
1,278

3,918
1,960
2,140
2,842

2,245
1,773
1,917
2,207

14,137
13,414
20,124
22,273

16, 361
7,000

16,465
17, 613
14, 635
13,819

25, 722
28, 505
30,233
31,027

24, 398
21, 330
20,277
21,605

16,877

10, 568
15, 866
12,456

4,146
3,821
4,128
4,170

10, 520
11, 737
8,786
8,692

4,060
4, 525
5,620
6,530

32, 417
23, 811
25, 381
24,614

24, 753
23, 929
19,429

32,272
34, 832
37, 346
35, r"

75, 655
44, 307
55,208
52,357

33,557
23,265
32, 662
26,867

9,178
4,465
5,807
5,448

14,438
13, 697
10,926
11, 534

6,305
6,298
7,537
8,737

46, 554
37,225
45, 505
46,887

6,225
43,136
37, , r "
28,282
30,162

614

FEDERAL RESERVE BULLETIN

AUGUST,

1927

REDSRAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WESKS-Continusd
RES OURCES—Continued
[In thousands of dollars]
Federal Reserve Bank

Total
Boston

Bills bought in open market:
July6__
July 13
July 20
July 27
U. S. Government securities:
BondsJuly 6__
July 13
July 20
July 27
Treasury notesJuly 6
July 13
July 20
July 27
Certificates of indebtednessJuly 6
July 13
July 20
July 27
Total U. S. Government
curities:
July 6
July 13
July 20
July 27
Other securities:
July 6.
July 13..—
July 20
July 27
Total bills and securities:
July 6
July 13
—_^
July 20
July 27
Gold held abroad:
July 6
July 13
—
July 20
Due from foreign banks:
July 6..— - _
July 13
July 20
July 27
Uncollected items:
July 6
Julyl3_._
July 20
July27___
Bank premises:
July 6-__
July 13
July 20
July27.__
All other resources:
July 6
-_
July 13
July20_.
July 27
Total resources:
July 6
July 13
July 20
July27.._...




New
York

199,043
193,207
185, 379
169,385

18,806
16, 794
16,265
13, 785

42,092
37,277
34,085
30,337

164,484
176, 725
182,181
180, 784

6,463
6,132
6,274
6,302

83,432
76,832
80,310
80,332

Philadelphia

14,325
15,221
14,758
12,846

Cleveland

Richmond

Chi-

cago

St. Minne- Kansas
Dallas
Louis apolis
City

San
Francisco

10,049

27, 685
29,036
28, 348
27, 570

11,468
10,991
9,758
8,229

7,060
6,532
5,919
5,684

9,744
9,935|
9,1051
7,f~"

7,111
6,893
7,016
7,045

2,947
2,779
2,997
3,002

35, 602
33,859
34,278
33,096

6,319
9,995
9,852

8,801
8,585
8,519

18,233
17, 863
17, 615
17,653

2,519
2,560
3,610
3,610

933
938
1,460
1,460

6,612
6,583
9,003
8,643

7,910
9,916
6,659

5,028
5,09,1
5,665
5,665

4,536
4,664
5,609
5,609

3, 895 14,777
4,067! 6,129
4,888 7,569
4,870 7,569 •

9,866
9,764
9,629
9,702

6,195
6,141
6,120
6,140

5,958
5,878
5,911
5,921

15,005
14,619!
14,606
14,"""

5,604
9,953
9,849

4,653
4,627
4,558
4,568

9,072
9,054
8,903
8,919

7,842 i
7,8351
7,6841
7, 666

27,162 45,393
26,785 44,999
27,943 45,681
27,986 45, 743

15,825
15,594
16,746
16,795

9,595
10,368
10,383

57,219 19,833
55,061 29,864
57,887 26,360
56,321 26, 586

18,482
18,303
18,721
18,752

31,841
31,581)
32,127
32,181

18,966
19,445
18, 966
16, 536

9,221
9,510
10,442

26, 356
26, 599
23, 622
24,440

5,807 18, 543
8,902 18,158
9,092 25,908
9,116 25,947

2,268
2,321
3,344
3,343

12,325
11,757
15,723
15,973

5,695 16,984J
5,729 17,077
6,686 10,094
6,687 10,094

126,502
124,246
123,278
123,900

5,912
5,817
5,805
5,825

27,682
25,375
25,203
25, 711

15,660
12,154
12,165
12,183

374,468
377, 803
385,769
385,016

14,643
14.270
15; 423
15,470

66,363
63,731
64,548
66,124

l,300!
,300j
1,300
1,300

Atlanta

10, 430

io r

9,811
9,541
9,324
9,076

19, 730
18, 319
19,479
16,942

15,881!
16,257;
16,714;
15,397

12,421
20,703
20,315
20,373

27,618
28,159
29,286
27,933!

13,053
13,029
12,795
12,820

40,251
39,861
40,679
40, 762

300
300.
300
300

1,0
1,000
1,000

107,495 49,504 52,840 160,559 64,858 34, 720
101,729 48,744 55,622 128,404 64,120 29,300
92,929 45,685 57,876 141,443 68,780 30,447
92,441 46,219 56,593 136,248 61,662 29,884

1,081,579
998,512
975,770
953,831

62, 111
53,478
63,358
55,118

253,293
235,498
185,725
188,995

89,907
87,001
85,559
84, 730

13,566
2,682
2,682

1,200
201
201

1,9
743
743

1,536
258
258

1,696
284
284

832
140
140

38,049
48,716
48.718
48.719

2,665
3,640
3,640
3,640

12,355
13.625
13.626
13,628

3,412
4,659
4,659
4, """

3,767
5,145
5,145
5,145

2,524
2,524
2,524

696,172
753,494
694, 843
601,252

71,738
74,646
68,332
57,617

180, 838
190,956
179,223
152,222

59,961
64,221
62, 321
52,487

65, 342
75,819
69,441
60,398

55,038
58, 537
54, 646
48,788

59,146
59,292
59,296
59,313

3,946
3,946
3,946
3,946

16,276
16,276
16,276
16,276

1,748
1,749
1,749
1,749

7,119
7,119
7,118
7,119

2, 336
2,356
2,356
2,366

2,900
2,900
2,900
2,900

8,297
8,420
8,420
8,420

3,95'
3,957
3,957
3,957

2 774
2 774
2 774
2,774

4,459
4,459
4,464
4,464

1,827
1,827
1,827
1,827

3,507
3,509
3,509
3,515

14,261
14,459
14, 611
14,923

39
56
62
338

4,449
4,313
4,432
4,679

290
299
297
299

1,124
1,139
1,279
1,303

315
303
301
310

1,590
1,580
1,584
1,571

1,543
1,530
1,524
1,450

939
947
899
874

1 704
1 842
1 869
1,746

696
720
672
678

561
582
596
583

1,011
1,148
1,096
1,092

5,093,861
5,112,417
5,030,222
4,919,920

382,828
389,242
382,796
367,867

1,581,874
1,590,096
1, 576, 375
1,534,438

360,161
362,699
358,417
346,590

515,026 202,394 268,482
514, 677 206,749 270, 820
501, 657 201,855 261, 682
503,333! 197,102 252,375

706,968
705,910
690,075
689,138

174,784
172,586
171,708
167,850

137, 657
134, 729
133,211
129,157

207,004
206, 544
206,993
200,326

133,699
132,822
130,150
126,089

422,984
425,543
415,303
405,655

If 1

656
110
110

2,208
370
370

1,457
1,990

4,904

56,023 43,734 106,535
55,213 43,998 95,405
52,158 46,147 105,663
51,604 45, 746 104,591

115
115

480
80
80

592
99
99

560
94
94

1,120
188
188

1,990

1,528
2,087
2,087
2,087

1 066
1 456
1 456
1 456

1,315
1,796
1,796
1,796

1,2441
1,699
1,699
1,699

2,488
3,397
3,398
3,397

26, 648
29,363
26,127
20,561

81,996 34,216
93,755 34,340
85,900 30, 658
76,785 26,889

14 485
14 329
12 863
11 194

It"""

42,369 25,128 38,413
44,483 27,220 45,825
42,004 23,475 39, 853
37,467 20,464 36,380

615

FEDERAL RESERVE BULLETIN

AUGUST, 1927

FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued
LIABILITIES
[In thousands of dollars]
Federal Reserve Bank
Total

Federal reserve notes in circulation:
July 6
„
July 13
July 20
July 27
Deposits:
Member bank—reserve
accountJuly 6_
July 13
July 20
July 27
GovernmentJuly 6
July 13
_.
July20_
July 27
Foreign b a n k July 6
July 13
July 20
July 27..
Other depositsJuly 6
July 13
July 20
July 27..
Total deposits:
July 6-.
July 13
—
July 20-_
July 27
Deferred availability items:
July 6
July 13
July 20...
July 27
Capital paid in:
July 6
July 13
July 20
July 27
Surplus:
July 6
July 1 3 . . —
_
July 20
__
July 27
.._
All other liabilities:
July 6....—....__.
July 13...
July 20
July 27
_
Total liabilities:
July 6
July 13
July 20
July 27-.

-

St.
Minne- Kansas
Louis apolis City Dallas

San
Francisco

244, 521
240, 967
235,388
230,709

40,406 .62,052 64,177 35,425
39,320 60, 605 63, 953 34, 634
39,112 59,419 63, 867 35,050
38,961 58, 754 63, 361 34,931

185, 868
176,004
173, 803
169, 619

66,401
69, 633
66,065
63,518

335, 715
327, 698
322,929
333,424

84,661
80, 655
82,179
82,755

50,195
48,454
49,037
47,121

91,135
88, 545
88,436
86,894

57, 600
57,851
57,193
56,109

169, 589
173,016
171, 377
167,463

1,408
419
1,026
1,907

1,112
1,745
929
273

81
1,
1,651
2,617

330
1,20'
1,356
1, 277

1,077
1,105
1,176
1,053

184
1,056
2,817
2,670

497
917
1,084
1,010

567
2,276
1,805
2,324

571
570
570
570

280
280
280

220
221
221
221

743
743
743
743

231
231
231
231

161
161
161
161

199
199
199
199

188
188
188
188

377
377
377
377

1,004
1,053
918
922

70
128
70
103

90
300
44
81

1,039
972
1,160
948

478
307
329

143
146
125
126

120
171
114
103

211
278

3,874
3,906
3,843
3,855

196,175 73,156
191,615 72,542
187,256 72,259
193,684 73,842

67,823

337,578
71, 899 331,109
67,259 326,483
64,093 337,732

85,502
82,566
84,073
84,592

51,576 91,638
49,866 89,971
50,499 91,566
48,461

58,571
59,316
58,676
57,585

174,407
179,575
177,402
174,019

73,420
82,296
76, 611
69,041

32, 619
34,437
32,243
27,953

12,544
12,765
11,810
10,465

37,284
38,695
37, 649
33,170

26,770
25,945
23,506
20,604

36,789
44,000
38,156
36,023

5,103 17,245
5,100 17,248
5,133 17,277
5,137 17,277

5,271
5,271
5,266
5,266

3,007
3,007
3,004
3,004

4,220
4,220
4,219
4,224

4,246
4,246
4,243
4,249

9,168
9,167
9,133
9,133

12,198
12,198
12,198
12/""

9,632
9,632
9,632
9,632

31,881
31,881
31,881
31,881

9,939
9,939
9,939
9,939

7,527
7,527
7,527
7,527

9,029
9,029
9,029
9,029

8,215 16,121
8,215 16,121
8,215 16,121
8,215 16,121

Phila- Cleve- Richdelphia land mond

Boston

New
York

1,751,050
1, 703,289
1,876,411
1,661,729

143,087
138,096
137,421
136,894

405,194 133,060 216,060
383,985 131,308 217, 758
380,940 126, 780 211,164
128,491 213,094

61,017
59, 695
59,043
57, 789

160,183
156, 964
154,424
152,450

2,297, 397
2, 315,003
2, 300, 585
2,282,028

143, 883
151,245
151,109
147,031

895,232
918,980
917,055
902,581

137,160
137, 321
138, 628
132,340

194,428
189, 890
185, 694
191,240

71, 398
71, 715
70, 883
71, 552

7,337
13,524.
15, 855
18,352

172
739
866
749

172
102
74
952

5,336
5,532
4,701
5,142

404
404
403
404

604
1,133
1,781
486
2,215 • 856
2,003 1,517
517
1,445
517
1,641
517
811
517
1,251

30,830
27,181
25,137
24,496

117
127
89
48

23,727
19,441
18,116
17,668

80
99
140
35

2,340,900
2,361,240
2,346, 278
2,330,018

144,576
152,515
152,467
148,232

921, 537
941,843
938,197
923, 503

138,361
138,423
140. 141
134,409

631,825
677,792
636,487
557,209

68,075
71,497
65, 546
55,333

151,861
161,221
153,674
131,164

54,159
58,395
56, r~"
4.9,038

63, 985
66,461
64,319|
57,581

129,426
129,414
129,795
129,807

9,145
9,145
9,426
9,426

38,931
38,941
38,946

13,033
13,033
13,033
13,033

13,856
13,842
13,914
13,912

6,204
6,204
6,206
6,200

228,775
228,775
228,775
228,775

17,606
17,606
17,606
17,606

61,614 21,267 23,746
61,614 21,267 23,746
61,614 21,267 23,746
61,614 21, 267 23,746

11,885
11, 907
12,476
12,382

339
383
330
376

2,740
2,502
3,009
2,535

Atlanta

49,183 25,136
55,469 26,611
51,475 24, 612
46,425 20,412

Chicago

281
273
310
352

1,255
1,258
1,316

636
641
674
648

605
614
622
651

2,323
2,409
2,435

1,047
1,053
1,075
1,139

951
959
952
946

656
676
663
676

472
466
460
505

631
676
688
740

5,093,861
1,581,874 360,161
5,112,417 389,242 1,590,096 362,699
5,030,222 382,796 1,576,375 358,417
4,919,920 367,867 1,534,438 346,590

515,026
514,677
501,657
503,333

202,394
206,749
201,855
197,102

268,482
270,820
261,682
252,375

706,!
705,910
690,075
689,138

174,784
172,586
171,708
167,850

137,657
134,729
133,211
129,157

207,004
206,544
206,993
200,326

133,699
132,822
130,150
126,089

422,984
425,543
415,303
405, 655

78.1
76.0
74.
75.

75.3
79.6
77.5
79.2

51.5
51.6
49.7
55.4

71.8
75.6
74.6
75.1

62.9
66.2
66.0

62.1
58.2
57.5
57.

74.2
76.7
73.4
73.5

5,117
5,117
5,324
5,324

10,236
10,235
10,648
10,648

1,204

MEMORANDA

Ratio of total reserves to Federal reserve note and deposit
liabilities combined (per
cent):
July 6
July 13
July 20
July 27.
Contingent liability on bills
purchased for foreign correspondents:
July 6
July 13
July 20..
July 27
.
Own Federal reserve notes held
by Federal reserve bank:
July 6
July IB.
July 20
July 27..
._

55972—27-




76.8
78.0
78.8
79.7

82.5
85.2
81.7
84.4

83.0
83.9
88.0
88.0

74.5
75.4
75.
76.6

78.8
78.0
80.5
82.0

65.0
66.9

146,037
151,195
151,583
151, 749

10,966
10,966
11,409
11,409

40,326
45,485
41,604
41,770

14,036
14,036
14,603
14,603

15,498
15,498
16,124
16,124

7,603
7,603
7,910
7,910

5,995 20,177
5,995 20,177
6,237 20,992
6,237 20,992

6,287
6,287
6,541
6,541

4,386
4,386
4,563

5,410
5,410
5,628
5,628

357,811
403,288
405,445
395,073

25,814
28,300
27,538
25,277

115,546
129,620
123, 709
123,832

32,573
36,827
39,515
36,760

24,991
20,653
29, 680
24,098

14,959
15,108
14, 643
14,694

27,794 55,645
31,035 63,980
30, 676 59, 907
30, 543

3,562
3,916
4,933
4,r"

4,261
6,321
6,215
5,867

10,149
9,702
9,245

69.2

4,851 39,147
6,251 51,128
5,764 53,163
5,349 53,810

616

FEDERAL RESERVE BULLETIN

AUGUST,

1927

FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS* ACCOUNTS, BY WEEKS
[In thousands of dollars]
Federal Reserve Bank

Total

Federal reserve notes received
from comptroller:
July6_
July 13
July 20
July 27
Federal reserve notes held by
Federal reserve agent:
July 6
July 13
July 20__._
July 27
.
Federal reserve notes issued to
Federal reservte bank:

July6
July 13
July 20
July 27
Collateral held as security for
Federal reserve notes issued to
Federal reserve bank:
Gold and gold certificatesJuly 6
July 13
July 20
July 27_ .
Gold redemption f u n d July 6
July 13
July 20
July 27
Gold fund, Federal Reserve
BoardJuly 6
July 13
July 20
July 27
Eligible p a p e r July 6_
July 13
July 20
July 27
Total collateral:
July 6
July 13
July 20
_
July 27

New
York

Phila- Cleve- Richdelphia land mond

242,001
239,496
249,459
246, 671

812,820
805,685
796,729
792, 588

199.533
202; 235
204,895
205,451

275,791
271,101
271,234
266,782

102,606
101,427
100,310
99,107

73,100 292,080
73,100 292,080
84,500 292,080
84, 500 292,080

33,900
34,100
38,600
41,200

34,740
32,690
30,390
29, 590

26,624
26,624
26,624
26, 624

76,270
74,360
75,0801
75,520

152,900
151,700
159,900
161,450

21,840 19,254 38,220 19,087
22,320 18,829 36,320 18,137
21,380 20,769 39,280 17,667
21,060 21,314 39, 280 17, 667

2,108,861 168,901 520,740 165,633 241,051
2,106,577 166,396 513,605 168,135 238,411
2,08i,'856 164,959 504,649 166,295 240,844
2, 056,802 162,171 500, 508 165, 251 237,192

75,976
74,803
73,686
72,483

187, 977
187,999
185,100
182,993

300,166
304,947
295,295
291,339

43,968
43, 236
44,045
43,929

2,944,476
2,952.237
2,953,526
2,932,487
835,615
845,660
871,670
875,685

215,150
215,150
215,150
215,150

392,341
391,891
391,85"
391,85,

35,301
35,30C
35,30C
35,30C

100,24!
107,533
97,67r
10106

10,614
18,109
15,272
12,484

1,114,11
1,134,37!
1,174,53!
1,159, -

89,00(
89,00C
89,00C
89,00C

145,000
145,000
175,000
175,000

657,09c
575,874
549,84J
534, 27!

47,46
39,20
47,93f
39,648

2,263,80c
2,209,67*
2,213,91;
2,186,88i

182,382
181,617
187,507
176,432

8,780
8,780
8,780
8,780

Atlanta

San
St. Minne- Kansas
Louis apolis City Dallas Francisco

Boston

264,247 453,066 65,808 85,567 111,065
262,359 456,647 65.556 85,755 110t422
260,180 455,195 65,425 86,403 112,849
258,513| 452,789 64,989 85,935 111, 886

36,469 17,017
36,468 17,018
36,469 17,018
36,468 17,017

12,279
12,588
13,522
13,070

6,771
5,599
4,481
6,279

9,208
7,319
5,140

105,27'
107,67'
111, 67'
107, 67'

175,000
175,000
175,000
180,000

8,000
8,000
8,000
5,000

158,796
144,955
101,043
106,025

51,07i
50, 574
45,59
46, 95(

59,761
54, 977
45,806
45, 010

31,739
32,273
27,949
28, 783

540,515
526,548
512,637
517, 479

166, 70S
170,70£
166,887
166, 20<

255,82251,345
243,108
246, 860

82,97C
82,34C
76,89£
76, 53C

21,56S 10,356
21,443 12,458
21,444 9,618
21, 304 11, 574

Chicago

72,845
74,102
73,569
72, 606

8,950 12,
8,500 12,267
8,500 12,267
8,500 12,267

8,454

1,955
1,955
1,916
1,865

2,003
1,271
1,140
1,224

119,8001
118,800
116,400
112,200

242,000
252,000
262,000
262,000

4,000
4,000
4,000

42,134 101,37'
45,154 71,47:
46,645 81,71!
45,345 78,13!
188,159
188,291
185,203
183, 016

66,313
66, 926
65,634
64, 621

954
1,422
1,070
1,602

59,363 272,615
59,022 292,532
58,481 292,366
57,947
47,60.0
65,400
65,400
65,400

40,276 225,015
40,885 227,132
40,814
40,280 223,429

18,408 40,000
18,408 40,000
18,373 40,000
18,373 40, 000
3,388
4,745
4,213
3,249

43,000 52,860
47,000 50,860
45,000 51,860
45,000 54,860

3,538 17,613
3,198 17,426
2,656 17,200
3.122 16,838
5, OOP
5,000
5,000
4,000

129,178
132,042
131,602
120,947

44,193 15,827 23,695 15,679 65,358
33,689 10,556 23,147 15,420 54,450
41,854 11,285 19,487 16,420 64,111
34,420 10, 743 18,867 17,390 62,953

345,329 55,146 72,048 79,943 42,625 252,149
325,426 47,460 71,245 78,752 42,026 243,918
345,634 55,494 69,622 75,560 42,449 252,913
342,004 48,144 69,612 76,976 42,885 240,738

MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS HELD BY FEDERAL RESERVE BANKS
[In thousands of dollars]

Total

Within 15
days

16 to 30

days

31 to 60
days

6i to 90
days

91 days to
6 months

Over 6
months

Bills discounted:
July 6
J u l y 13
J u l y 20
J u l y 27
_
Bills bought in open m a r k e t :
July 6
J u l y 13
July 20
July 27
Certificates of indebtedness:
J u l y 6.
J u l y 13
J u l y 20
J u l y 27




506, 768
426,202
403,322
398,130

406,073
329,243
301,207
297,756

22, 398
22,914
23,449
21,223

34,937
33,041
38,355
37, 583

28,262
26,328
28,225
29,753

14,960
14,539
11,930
11,698

199,043
193,207
185, 379
169,385

75, 641
73, 954
81, 641
76,112

51,953
53, 344
48,940
45, 906

45, 647
45, 768
37,402
31, 743

20,233
15,194
12, 681
12,697

5,569
4,947
4,715
2,927

126, 502
124,246
123,278
123,900

33
32
32

31,257
31,052
29,924
60,294

81,178

138
137
156
117

95,212
93,162
12,144
63,172

617

FEDERAL RESERVE BULLETIN

AUGUST, 1927

FEDERAL RESERVE BANKS—AVERAGE DAILY RESERVES AND DEMAND LIABILITIES IN JULY AND JUNE, 1927
[Amounts in thousands of dollars]
Total cash reserves

Total deposits

Federal reserve notes
in circulation

Reserve percentages

Federal reserve bank
July

June

Boston
._
New York
Philadelphia.
Cleveland
Richmond
Atlanta
ChicagoSt. Louis
Minneapolis. _
Kansas City__
Dallas
San Francisco

241,443
1,118, 669
201,700
323,074
90, 651
171, 624
447,123
63, 416
99,983
55, 902
259, 637

227,332
1,168,617
199,231
313,761
94,923
180, 675
429,101
61, 758
79,022
1 93,517
59,866
262, 360

Total...

3,156, 204

3,170,163

July

June

July

June

152, 568
918r918
137, 993
189, 620
74, 262
68, 471
337, 875
82, 622
50, 607
90,916
60, 209
175, 417

149, 846
941,867
137,874
190,247
71, 679
68,810
338, 545
82,434
49, 678
88, 342
59,765
176, 341

140,174
393,146
132, 434
215,784
59,756
157,105
239, 299
39, 858
60, 284
63, 845
35,358
177, 623

140,076
410, 679
129,067
213,188
62,240
162,023
226, 646
41,154
59, 776
63,350
35, 394
174, 610

82.5
85.3
74.6
79.7
67.6
76.1
77.5
51.8
74.8
64.6
58.5
73.5

78.4
86.4
- 74.6
77.8
70.9
78.3
75.9
50.0
72.2
161.6
62.9
74.8

2, 339, 478

2, 355, 428

1, 714, 666

1, 718, 203

77. c

77.8

July

June

i Revised figures.
GOLD SETTLEMENT FUND—INTERBANK TRANSACTIONS, JUNE 23-JULY 20, 1927, INCLUSIVE
[In thousands of dollars]
Transfers for Government account

Transit clearing

Federal reserve note
clearing

Federal reserve bank
Debits
Boston...
.
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. __
Kansas City.—
Dallas
San Francisco..
Total 4 weeks ending—
July 20,1927...
June 22,1927
July 21,1926
June 23,1926




17,800
3,500
14, 500
5,500
4,500
6,000
3,500
2,500
1,500
4,500
12, 500
76,300
225, 900
68,000
177,300

Debits

Credits

953,432
3,025,312
729,711
696,231
537,094
291,674
1,254,423
536,217
158,401
397, 215
275, 292
352,867

970, 528
2,973,158
751,095
700,499
538,110
289,449
1,259,962
531,010
163,494
395,403
270,719
364,442

4,524
10,680
5,381
7,488
2,486
4,407
6,437
1,514
1,554
2,174
1,358
3,621

4,165
14,381
5,402
4,456
3,496
3,129
6,717
2,783
1,344
2,817
1,273
1,661

76,300 9,207,869 9,207,869
225, 900 11,890, 725 11,890, 725
68,000 8,883,119 8, 883,119
177, 300 10,880,794 10, 880,794

51,624
64, 788

51,624
64,788
46,933
56,856

Credits

52,300
1,000
500
2,000
12,000
3,000
500
2,000
3,000

Debits

56,856

Credits

Changes in ownership
of gold through trans- Balance
fers and clearings
in fund at
close of
period
Decrease
Increase
1,063
3,764
474
9,503

347
7,905

14,319
~~2,~883"
9,158
115
25, 569

25,569

42,743
217,300
34,646
46,514
25,857
6,355
87,857
32,460
10,201
29,114
9,621
26,712
549,380
591,050
652,815
662,192

EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING SIX MONTHS ENDING JUNE 30, 1927
Total
EARNINGS:
Discounted bills
Purchased bills
United States securities
Deficient reserve penalties..
Miscellaneous. _„_.-„
Total earnings.

20,412, 375 1,413,175

Legal fees
_.
Insurance (other than on currency and security
ments)
Insurance on currency and security shipments.
Taxes on banking house
_
Light, heat, and power
.'Repairs and alterations, banking house
Rent
Office and other supplies
Printing and stationery
Telephone.
„
Telegraph
_

1, 223, 237
5,853,091
405, 516
2,042
42
7,245
79,101
123, 805

Cleveland

Richmond

$857, 636
306, 342
352, 688
3,380
54, 715

$909,505
424,338
648,987
10, 850
75, 911

$457,668
185,864
122, 249
25, 238
12,409

4, 794,170 1, 574, 761 12,069, 591

59, 000
439,137
17,855
42, 676
64

221, 017
1, 513, 747
89,526
239, 382
223

66, 249
455,460
23, 207
46, 316
64

111,475
511, 873
51,083
114, 426
124

4,094

393
8,744
14,093

350
3,730
5,624

422
3,480
10, 578

21, 220
21
12, 553
18,607
19,206
4,967
718
5,

39, 292
1,250

43, 342
2,000

218, 297
307,439
703, 009
172,020
99, 336
112,889
185, 549
227,495
100, 747
234, 559
887,930
218,005
359,439

14, 606
42,016
66,390
11, 365
1,478
220
12,003
23, 747
10,199
3,353
100,070
21, 019
20, 356

37, 920
59,435
193,787
39, 310
11, 037
12, 575
41,007
35,147
27,490
23,752
144, 524
53, 274
77,000

17, 913
47, 353
18, 670
11, 643
21, 262
813
12, 756
21,083
13, 304
6,923

17, 376
38,031
67, 225
18,498
7,081
9,969
17, 612
21,038
7,050
16, 613
78,822
13, 793
26,409

13,241
3,179
11,766
61, 226
16,290
13,863

925, 720

2, 957,136

958, 557 1,188, 320

647,432

Total current expenses..

13,812,357
6, 600,018
3,827,094

57,946
5,773
989,439

295, 372
7,702
3, 260, 210

423, 736 1, 533, 959
268,343 1,140,026

23, 035

98,560

73,345

26, 601
3,757

7,921

St. Louis

Minneapolis

Kansas
City

Dallas

1,428 i$l,365,353 $379, 345
236', 021 ' 621,371 236, 735
913, 254 424, 879
71,838
26, 094
8,730
12,108
170, 712
16, 684
67, 700

$110,195
174,814
309, 241
6,818
53,175

$246,023
230, 399
497, 579
8,860
141,163

$90, 775
209,079
424,533
10,149
41,037

Atlanta

Chicago

3,096, 784 1,066, 373

654,243 |l,124,024

San
Francisco

$879, 648
428, 272
649,934
12,093
39,211

775,573 I 2,009,158

101,163
205, 748
17, 563
20, 572
147

149, 363
888, 324
53, 813
145, 302
149

85. 549
289; 869
23,932
37, 698
137

181,057
14, 265
39, 048

80,900
317,057
32,343
86, 568
184

74,283
244,909
16, 727
40,290
339

122,075
540,394
42, 513
62,065
536

551
12, 730
8, 543
16, 996
2,466

577
4,790
12,931

600
6,686
14, 486

600
3, 687
14, 853

700
13, 379
4,632

623
2,793
10, 751

1,700
11, 273
16, 758

56, 372
793

17, 669
372

12, 285
14,122

15, 343

14, 519
5,533

28, 741
354

13, 394
16, 728
28, 573
8,127
3,906
2,566
11,438
16,359
3,016
30, 759
51, 705
16, 762
19,347

24,115
35,101
138,000
16,442
40, 560
19, 209
28,047
35,837
11, 270

13, 673
7,201

21,865
17, 511
36,620
7,485
1,480
51, 740
17, 354
19,754
8,865
37, 336
62,452
10,455
33, 674

609,159
28, 275
5,414

12,964
5,841
41, 358
10, 375
1,793

18,834
9,150
43, 512
26,024
8,057

20, 685
116,769
27,973
64, 950

33, 395
9,483
1,171
9, 876
8, 324
4,493
6, 259
20, 398
46,113
7,279
17, 967

12; 803
2,702
10,031
27, 585
4,145
15, 616

11,373
11,042
3.^850
30/524
65,776
6,633
23,823

13, 084
10,465
16,273
8,301
793
833
7,107
12,951
3,563
22,419
41, 727
9,283
23, 399

1, 871, 372

662, 630

503,425

815, 790

580,965

1,153,000

16, 005

19,473

20,771

78,152

645

2,835

1,958

7,624

603,694

1,238,776

152,805
9,149

10, 250
1,870

065,038 jl, 268, 313 677,790

642,848

2,033, 326

674,750 |

520,075

509, 723
385, 901

801,279
414, 525

125, 639
185,093

388, 247
151, 698

1,063,458
508, 731

391, 622
158, 645

134,168
90, 500

285, 927
125,998

171,879
128,266

770,381

OF
68, 502
38,544

3,439
1,732

7,019
8,974

4,409
879

8,352
6,305

4,268
1,573

2,580
1,305

15,826
8, 918

5,120
1,327

6,505
3,099

3,624
1,428

4,290
786

3.070
2,218

107,046

5,171

15, 993

5,288

14, 657

5, 841

3,885

24, 744

6,447

9,604

5,052

5,076

5,288

Other than those connected with governors' and agents' conferences and of the advisory council.
2 Credit.




83, 700
285, 516
22, 689
34,040
75
42
362
3,715
6,674

113, 753

91,161
31,099

I

803,428 1,031,095

30, 632
1,191

CURRENT NET EARNINGS.
DIVIDENDS PAID

1

Philadelphia

410,164
34,166

Expressage
Miscellaneous expenses
Total, exclusive of cost of currency
12,873> 506
Federal reserve currency—
Original cost, including shipping charges..
877, 555
Cost" of redemption, including shipping
61,296
charges

Total .

New
York

$8,823,856 $640,389 $2,243,891
4,848,163
559, 554 1,235,374
5, 763, 267 185,897 1,162,188
11,851
139, 710
3,539
837, 379
23, 796
140,866

CURRENT EXPENSES:
SalariesBank officers
__„
Clerical staff
Special officers and watchmen
All other___
Governors' conferences
Federal reserve agents' conferences
Federal Advisory Council
Directors' meetings__
Traveling expenses 1
Assessments for Federal Reserve Board ex-

REIMBURSABLE
EXPENDITURES
FISCAL AGENCY DEPARTMENT—
Salaries
„„__.„___„
Allother___
_
_

Boston

1

619

FEDERAL RESERVE BULLETIN

AUGUST, 1927

FEDERAL RESERVE BANKS—HOLDINGS OF BILLS AND SECURITIES, JUNE, 1927
[In thousands of dollars]
Federal Reserve Bank
Total
Boston

New
York

Philadelphia

Cleve- Rich- Atlanta
mond
land

Chicago

St.
Louis

Minne- Kansas Dallas
apolis
City

San
Francisco

HOLDINGS ON JUNE 30,
1927
Total bills and securities
1,025,415
Bills discounted
443,450
Bills bought in open market _ 210, 585
United States securities
370,080
Other securities
. .
1,300

78,719 207,237
45,062 90,947
19,414 51,177
14, 243 65,113

98,668 104,898
57,108 40,811
13,798 19,615
26,762 44,472
1,000

50,076
25, 629
8,872
15, 575

48,279 148,343
28,163 62,127
10,131 30,952
9,685 55,264
300

71,509
35,494
11,182
24,833

29,598
4,013
7,303
18,282

50,536
11,323
9,671
29, 542

42, 787
6,221
10,057
26, 509

94, 765
36, 552
18,413
39,800

7,915

Bills Discounted
Rediscounted bills:
Commercial and agricultural
paper, n. e. s
Demand and sight drafts. _ .
Trade acceptances.
_
Secured by United States
Government obligations. _.
Member bank collateral notes:
Secured by United States
Government obligations._.
0 therwise secured
Total discounted bills

143, 591
27
2,130

21, 584

7,615

11, 201

5,200

12, 792

10,354

3,207
2

250

230

103

600

13,475
22
14

3,309

167

21,331
3
676

25, 608

37

2,608

89

19

66

69

130

395

203

5

12

1,612

8

242,758
52,336

23,352

69, 569
13, 596

38,994
6,644

31,971
3,344

8,924
3,741

3,861
2,162

34, 791
733

17,488
4,292

516
183

868
89

980
420

11, 444
17,132

443,450

45,062

90,947

57,108

40,811

25, 629

28,163

62,127

35,494

4,013

11, 323

6,221

36, 552

75, 982
49,044
32,494
5,744

5, 551
3,125
5,214
407

17,391
12,360
4,406
2,047

3,858
3,496
2,142
1,054

7,756
2,730
2,882
540

3,979
1,813
1,006
163

4,174
2,877
1, 631
35

11,140
10,230
6,291
325

3,814
2,101
1,434
375

3,246
1,720
236
220

4,494
2,112
1,030
53

3,020
2,549
2,584
100

7, 559
3,931
3,638
425

32,336
2,252

4,249
67

10,533
751

2, 223

3,205
45

1,356

976

1,469
24

2,924
75

1, 411
150

1, 362
225

1,355
75

1,273
840

236
8
12,489

801

236
8
3,445

1,025

2,457

555

438

1,473

459

320

395

374

747

210, 585

19,414

51,177

13,798

19, 615

8,872

10,131

30,952

11,182

7,303

9,671

10,057

18,413

160,171
83, 618
126, 291

6,308
2,194
5,741

25, 872
12,092
27,149

5,652
5,620
15,490

17,929
16, 891
9,652

7,014
2,472
6,089

2,949
876
5,860

34,127
6,638
14,499

8,256
8,841
7,736

8,724
4,991
4,567

16,118
4,479
8,945

14,976
3,831
7,702

12, 246
14, 693
12,861

370,080

14,243

65,113

26, 762

44,472

15, 575

9, 685

55,264

24,833

18,282

29, 542

26, 509

39,800

87,820 106,451
45,227 41,801
13, 696 17,953
27, 664 46, 697
1,233

42,326
22,374
8,534
11,418

52; 703 151, 564
32, 618 63, 917
9,642 28,012
10,143 59, 635
300

66, 534
26,251
11, 729
28, 554

33,179
6,514
7,350
19, 315

57,312
16, 524
9,260
31, 528

43,048
6,172
9,684
27,192

100, 735
41, 390
17,430
41, 915

53

Bills Bought
Bills payable in dollars:
Bankers' acceptances based
on—
Imports Exports
Domestic transactions.__
Dollar exchange
Shipments between or
storage of goods in foreign countries
All other
Trade acceptances based on—
Imports _
Domestic transactions __
Bills payable in foreign currencies
Total purchased bills

•

United States Securities
United States bonds
Treasury notes __•_
Certificates of indebtedness
Total United States securities
DAILY AVERAGE HOLDINGS DURING JUNE
1,033,123
Total bills and securities
Bills discounted
.
_ ._ 428, 563
205, 273
Bills bought.
397, 754
United States securities._.
1 533
Other securities




71,121 220, 330
33,843 91,932
20,884 51,099
16,394 77,299

1

620

FEDEEAL KESERVE BULLETIN

AUGUST,

1927

FEDERAL RESERVE BANKS—VOLUME OF DISCOUNT AND OPEN MARKET OPERATIONS DURING JUNE, 1927
[Amounts in thousands of dollars]

Total

Total Volume of Operations.

3, 555,1
l

Bills discounted for member banks
2,311,236
Bills bought: In open market
293,213
From other Federal reserve banks
8,706
United States securities bought:
In open market
:
913,156
From other Federal reserve banks
28,858
Bills Discounted
Rediscounted bills:
Commercial and agricultural paper, n.
e. s
134,519
Demand and sight drafts
63
Trade acceptances
1,381
Secured by United States Government
1,71;
obligations
Members bank collateral notes:
Secured by United States Government
1,637,048
obligations
536,511
Secured by eligible paper 2
Total..

Boston

Total-

173,830
48,599
35,394
1,100

4,103

Total..

Dallas

San
Francisco

96,224
73,445

631,375 14,847 26,348
4,165 1,033 1,105

8,344
5,717

5,860 76,246 14,360 17,586 26,702 28,430 27,664
735 1,742
1,145
566 2,344 8,522

5,393

9,395

4,342
175

32,032

8,721
1,300

5,118
600

5,935

6,817 21,000 42,863 25,016
23
15
2
762
101
25

2,006

2,373
5

6,301
20
25

1,605

14

528,089130,421374,
37,348 13,150 255,674 85,253 13,346 16,016
186,221 44,267 36,877
310 7,171
20,180 9,403 17,415
719,810 184,186 416,350108,151 55,145 308,055127,712

8,655 77,917
1,991 75,338

14,639 29,124 14,629159,605
4.00

4.00

4.00

8.54
8.88
8.50
43.32 125.62 100.08
739
972
599

9.19
47.31
815

9.05
76.31
676

182
30.4

127
17.2

140
17.2

180
26.6

5,424 12,133

2,951

1,940

2,188

3,239

4,647

2, 574 10, 494
9,405

5,770

3,178

4,804

4,031 8,786
589 15,273

114, 678 12,877 14, 625

6,772

7,998 32,032

8,721

5,118

7,687

6,808 27,298

26, 868 10,18' 10, 894
19
24
304
84,118 1,301
1,250
60
3s:
3. 62
3.71
3.60
34.43 40.50 42.26

4,743
315
1,029
130

7,661

3,466

3.66
46.11

5, 084 19,587
8
758
1,485 10,070
144
976
3.71
3.67
46.72 41.31

9
3.60
39.44

3.67
52.67

5,903
3
1,320
43
23
3.65
47.34

4,248 9,783
24
2,140 16,520
168
56
46
3.69
3.69
46.75 41.37

6,23'
6,342
4,491

2,188
1,87"
1,244
100

2,443
1,155
231
33

3,601
1,645

1,
1,503
1,499

4,170
2,961
2,448
25

2,653
200

755
181

1,164
255

838
325

1,424
250

374

747

4.00

4.00

4.00

4.00

4.00

6.27
52.29
9,106

7.45
45.97
415

5.4'
53.53
928

7.90
47.1:
775

3.44
49.81
841

2.29
57.78
569

12.34
54.88
469

8.59
45.81
1,308

2,834
31.1

179
43.1

42.6

49.0

222
26.4

222
39.0

200
42.6

444
33.9

64,891

10, 577

13, 692

841

2,125

93,401
134,921

10,043
27,979

19,311 12,036
81,675

7,727

293,213

48, 599

35, 394

27,298

7,S

4.00

20,620

7,687
900

6,772
600

4.00

913,156

Min- KanSt.
sas
Louis neapolis
City

114,678 12,877 14,625
2,800
500

1

98, 541 4, 889
24,816
1,326
710,462 2 4 , "
79, 337 5,094
4

Chicago

4.00

158,292

United States Securities Bought in Open
Market
Bought outright:
United States bonds
Treasury notes.__
Certificates of indebtedness
Bought with resale agreement

Cleve- Rich- Atland mond lanta

719,810 .84,186 416,350 108,151 55,145 308,055 27,712 14,639 29,124 14,629 .59,605

107

Bills payable in dollars:
Rates charged—
33^5 per cent
125,200 16,776
2>
A per cent
1,680
225
ZZA per cent
'__. 151, 862 30,705
?>% per cent
.,
92
4 per cent
3.68
Average rate (365-day basis),3 per cent__.
3.68
Average maturity (in days)
41.28
41.91
Class of bills: *
Bankers' acceptances based on—
Imports
46, 735 3,925
Exports
36, 566 3,559
25,896 4,646
Domestic transactions
2,882
Dollar exchange
490
Shipments between or storage of
7,132
goods in foreign countries
31,851
Another
1,742
6"
Trade acceptances based on—
Imports
282
Domestic transactions
8
Bills payable in foreign currencies
12,330
801
Total..

Philadelphia

258, 923 1,472,828 212,943 458,928 129,584 69,569 418,677 160,615 38,627 65,558 52,608

2,311,236 173,830

Average rate (365-day basis), per cent
Average maturity (in days):
Member bank collateral notes
Rediscounted bills
Number of member banks on June 30
Number of member banks accommodated
during month
Per cent accommodated
Bills Bought in Open Market
From member banks
From nonmember banks, banking corporations, etc.:
Bought outright
Bought with resale agreement

New
York

8,636
8,412
3, 400
484

3,393
3,523
2,552
870

4,827
1,970
2,594
290

2,766
1,250
794
163

2,369
1,395
33

8,241
254

1,514

2,442
45

1,190
54

883

3,615
100

1,025

2,457

438

1,473

282
8
3,286

4.00

4.00

592 ~1~332

16.3

16.8

459

320

39,

6,772

7,998 22, 627

8,721

5,118

7,687

4,009 7,124
1,135
1,946
9,703 17,278

3,233
915
4,196

2,701 15,476
499 3,305
2,660, 36,159
21,306

5,943 3,714 7,424 10,770 11,178
1,051 1,922
1,507
2,011 2,951
6,910 12,821 16,356 11,097 13, 535
1,000
4,552

631, 375 14, 847 26,348

8,344

5,860 76,246 14,360 17, 586 26,702 28,430 27, 664

33,003 12,877 14, 625

22,080
6,248
555, 662
47, 385

6,219 12,025

1 Includes $15,000 secured by adjusted service certificates discounted for nonmember banks, also $750,000 discounted for the Federal Intermediate2 Credit Bank of Berkeley, Calif., and $46,500 discounted for the Federal Intermediate Credit Bank of Spokane, Wash.
Includes bills taken under a resale contract.
3
Exclusive of bills bought under a resale contract.
* Includes special 1-day certificates issued by the Treasury to Federal reserve banks as follows: Boston, $18,000,000; New York, $527,000,000;
Philadelphia, $3,500,000; Cleveland, $2,500,000; Chicago, $21,000,000; Minneapolis, $8,000,000; Kansas City, $7,500,000; and Dallas, $3,000,000;
and excludes $339,000,000 of special 1-day certificates, $22,000,000 of other certificates, $23,000,000 of Liberty Loan bonds, and $10,000,000 of Treasury
notes sold under repurchase agreement and subsequently repurchased.




AUGUST,

621

FEDERAL RESERVE BULLETIN

1927

WEEKLY REPORTING MEMBER BANKS
REPORTING MEMBER BANKS;IN LEADING CITIES
PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS
[In thousands of dollars]
Federal Reserve District
Total
Boston

New
York

Philadelphia

Cleve- Rich- Atlanta Chicago St. Minne- Kansas Dallas
land mond
Louis apolis City

San
Francisco

Loans and investmentstotal;
July 6
20,728,326 1,473,275 7,868,\, 255 1 195,092 2,050,178 668,389
July 13.
181,873 2,063,105 676,704
20,514,245 1,462,
684,
July 20.
„___.. 20,477,954 1,471, 1281\ 636,
636', 250 1,189,249 2,078,694 675,554
July 27
"""•
20,479,248 1,462,825
7; 656,812 1 183,047 2,091,605 679,877
Loans and discounts—total:
July 6
14,682,671 1,022,5,47O5;, 524,296 806, 2711 , 377,243 517,347
July 13
14,499,596 1,011,., 042 5,, 349,299 793, 8391,391,555 523,984
July 20
. 14,492,398 1,008,460 5,,339,440 795, 5221, 406,720 521,882
July 27
14,487, 518 1,004,839 5,356,112 791, 2101, 405, 065 525, 247
Secured by United
States Government
obligationsJuly 6
17,692 4,199
9,133
6,828
118,141
36,173
July 13
16,906 4,441
9,519
6,622
34,700
115,349
July 20
_
17,023 4,425
30,157
6,614
109,218
July 27
32,126
17, 021 4,415
6,976
8,979
112,298
Secured by stocks and
bonds—
July 6
!, 554,650 410,603 580,402 155,092
5,917,575 375, 737 2,
July 13
_____: 5,784,722 355,765 2,415,848 394,949 601,281 155,678
July 20
__•
5,786,571 354,850 2,407,149 399,202 604,324 155,772
July 27
393,648 591,623 156,652
5,816, 515 355, ""2,442,338
570
All other loans and discounts—
July 6
8,646,955 639, 905 2,,933,473 386,535 779,149 358,056
July 13
8,599,525 648, 655 2,,898,751 389,371 773,368 363,865
,
July 20
. 8,596,609 64 , , 902134
387,512 785,373 361,685
July 27
8, 558,705 646,996 2,902,134 388,583 796,421 364,180
642,293
2,881,
648
In vestments—total:
July 6
5,343,959 388,821 672,935 151,042
6,045,655 450,
),805 2,
July 13
, 335,299 388,034 671,550 152, 720
2,
6,014,649 451,, 716 !
July 20
J,
393,727 671,974 153,672
!
,
668
2,296,810
,
.
5,985,556 462,
July 27
5,991,730 457,986 2,300,700 391,837 686,540 154,630
United States Government securitiesJuly 6
2,548,266 156,683 999,703 102,926 279,611 71,503
July 13
2,539,591 156,407 999,476 102,834 280,962 72,157
July 20
•__. 2,538,284
166,128 991,303 101,209 282,273 72,602
July 27
162,289 987,595 99,343 295,746 72, 766
2, 536,419
Other bonds, stocks,
and securitiesJuly 6_._
__. 3,497,389 294,122 1,344,256 285,895 393,324 79, 539
80, 563
July 13
3,475,058 295,309 1,335,823 285,200
July 20
3,447,272 296,540 1,305,507 292,518 389,701 •81,070
July 27
3,455,311 295,697 1,313,105 292,494 390,794 81,864
Reserve balances with
Federal reserve bank:
July 6
94,153 776,149 82,904 136,740 44,372
1,692,258
82,548 132,642 42,476
July 1 3 . .
1, 709,728 101, 786 800,897
83,835 127,169 43,458
July 20
1,703,649 101,966 801,843
78,103 127,985 43,335
July 27
__.
1,676,580
95,902 783,593
Cash in vault:
13,977
19,364 76,151 15,440
277,469
July. 6
........
20,001 73,270 15,454 31,082 13,962
272,633
Julyl3
68,175
14,797 29,952 13,370
18,733
254,981
July 20..
15,283 29,596 13,245
18,934
259, 566
July 2 7 . . . „
Net demand deposits:
', 349 ,1 054,036 390,166
777,
928,040
5,944,461
13,
364,101
July 6
_..
394,027
>, 847,300 767,', 213 ,051,018
.
1, .
13,323,627 942,885 5,
July 13
394,246
932,372
5,
769,8311,064,362
>,
815,395
July 2 0 . . . . . . . . . . . _ _ . . . 13,240,399
922,456 5,804,473 752, 622 1,068, 062 400, 619
.
July 27
„_.13,200,495
Time deposits:
461,,01911,466,106 263,947 867,617 229,134
July6
-__._.„. 6,200,894
1,436, 676 263, 674 890,059 229,229
July 13
6,186,133
462,2911.
262,679 888,302 230,712
July 20
- . - . . . 6,188,356
4 6 1 " " " 1,451,049
'
896,933 233,526
462,5481,464,918
July 27
. . . 6,210,300
Government deposits:
132,256
18,448 18,694 17,165 14,504 3,738
July 6
._„....
11,800 2,958
July 13
107,183
14,813 15,211 13,969
13,534 12,432 10,512 2,590
July 20
95,452
13.187
July 27
13.188 13, 534 12,432 10, 536 2,634
95,518




., 788,002
610,028 2,993,619
356,047 623,926 402, 708 1,
603,222
""" 222 2,
2,967,608 702,693 353,385 632,443 404,"~ ., 781,151
701,212 353,044 625,024 405,
600, 078
™ 2,968,985
"'
., 773,368
597, 262 2, 956, 697
630,281 402, 572 .
1, 770, 790
491,.,384 2,!, 200,668
2,187,762
488,356 2]
483,881 2,194;
2,194,725
482; 437 2,183, 544

499,477
502,091
500,112
498,646

236,356
234,335
233,469
230,752

418,685
427,254
420,200
424,945

19,278
18,863
18,002
18,779

4,573
4,703
4,605
4,566

2,577
2,046
2,222
2,233

4,179

5,149
5,053
5,018
4,933

108,025 923,314 201,979
109,879 933,965 205,031
108,843 950,550 202,797
109,475 953, 785 205,388

310, 9151, 277,559
312, 1481,277,931
313, 173 1!.,274,814
311, 912 1, 272,809

2,876
2,833
2,859

5,425
5,312
5,262
5,250

77,061 127,577 76,061
76,543 135,842 76,256
76,865 126,709 77,042
131, 616 75,916

327,074
323,685
322,468
321, 609

4,249
4,161

378', 210 1, 258,076 292,925
373, """ ",234,934 292,357
370,
., 226,173 292,710
368, 029 1:, 210,980

156,718
155,746
154,382
149,624

286,929
287,104
289,242
289,168

231,919
233,016
233,298
233,137

947,084
945, 950

118,644
114,866
116,197
114, 825

119,691
119,050
119,575
117,854

205,241
205,189
204,824
205, 336

91,793
92,557
92,195
90, 660

510,443
503,220
498,554
497,981

63,280 97,599
63,035 97,168
63,968 97,183
62,947

63,768
65,217
64,733
63,003

266,946
265,241
265,738
266,363

792,951
779,846
774,260
773,153

199,330
200,602
201,100
200,228

57,573 311,756
55,428 305,412
55,545 301,204
55,116 300,317

76,918
76,254
76,398
74, 506

945,060

61,071
59,438
60,652
59,709

481,195
474,434
473,056
472,836

122, 412
124, 348
124,702
125, 722

56,411
56,015
55,607
54,907

107, 642
108,021
107, 641
108, 908

28,025
27,340
27,462
27,657

243,497
237,979
232,816
231,618

40,181
41, 557
39,146
37,034

251, 775 48, 804
242, 682
239,710
249, 712

24,629
23,493
23,784
22,017

58, 006
55,726
55,474
53, 955

29.879
29, 626
29.880
29, 034

104, 666
109, 603
109,056
107,264

11,849
11,173
10,668
10,788

49,126
47,225
44,540
44,248

8,186
7,881
7,354
8,554

5,'
6,134
5,958
6,127

12,316
12, 713
11,836
12, 354

9,655
9,462
8,330

24,883
24,276
21,268
21,784

330,719 1,801,812
330,4931,814,883
328,513 1,789,636
317,178 1,790,323

399, 604
409,271
400,360
402,926

209,338
209,480
207,316
206, 043

497, 597
501,044
494,570
495,169

267, 753
271, 723
270,388
267,566

763,226
784,290
773,410
773, 058

241, 3961,., 110, 585231, 747
240, 6921,., 105, 537231,957
239, 513 1., 107,410 231,459
239, 6791,i, 108, 664234,429

126, 549
128, 370
128,235
124,831

152, 087
153, 779
153,439
153, 354

109, 396
109,913
109,483
109,376

941, 311
933,956
924,298
917,339

1,850
1,504
1,339
1,339

7,125
5, 798
5,161
5,161

21,295
17, 328
15,422
15,422

10,076
8,144
7,237
7,235

15, 615
12, 630
11,346
11, 346

2,026
1,649
1,465
1,465

1,720
1,379
1,227
1,226

622

FEDERAL RESERVE BULLETIN

AUGUST, 192?

PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS—Continued
[In thousands of dollars]
Federal Reserve District

Total
Boston

Due from banks:
July 6...
_.
July 13
July 20
July 27
Due to banks:
July 6
July 13
July 20
July 27
Borrowings from Federal
reserve bank—total:
July 6
July 13
July 20
July 27
Secured by U. S. Government obligationsJuly 6
July 13
July 20. _.
July 27
All otherJuly 6
July 13
July 20
July 27.
Number of r e p o r t i n g
banks:
July 6
July 13
July 20
July 27

New
York

1,186, 382
1,194,481
1,119,503
1, 072,412

67,105 149, 601
59,178 129, 601
57,094 128,155
57,106 120,861

3,450,389
3,355, 568
3,259, 885
3,157,446

177,746 1,303,750
172, 7611,: , 241,691
172, 378 L., 219,829
159, 2521;, 157, 668

Philadelphia

San
Francisco

Cleve- Rich- Atlanta Chicago St. Minne- Kansas Dallas
Louis apolis City
land mond

60,978 104,791
60, 723 106,549
56,315 100,198
51, 538 99,572
183,411
175,363
178,255
167,652

246,176
254,161
246,374
249,346

76,285 229,913 54,985
82,200 245, 515 55, 603
75,101 233,947 52,185
70,421 213, 626 43,555

61,004
58,927
51,906
55,491

51,948
57,295
49,062
49,885

121,730 60,468
122,265 58,283
114,368 53,649
114,449 55,177.

147, 574
158, 322
147,523
140, 731

111,540
112,508
106,588
101,200

540.337
516.338
486,358
486,621

140,089
138,875
133,239
132,490

87,666
83,765
79,791
77,407

216,626
216,698
208,862
214, 073

94,348
89,354
83,824
81, 073

227,712
235,916
226,705
217, 529

10,209 16,588
9,809 14,119
5,884 20,328
4,319 17, 615

54, 757
23,928
35,645
33, 617

24,989
15,721
22,243
16,411

5,250
275
1,265
700

7,940
7,477

2,179
1,868
2,451
3,130

34,733
26,128
33,795
33,890

120,988
118,138
117,682
113,135

344,534
264,755
247,442
233, 810

15,851
10,548
21,676
14, 682

117,996
108,777
64,076
65, 602

20,447
17,488
15,742
17,175

33,595
28,617
20,049
21,954

237,521
184,147
154,610
153,137

3,600
4,575
10,325
8,815

107,045
91,055
50,650
53,943

14,830
13,890
10,765
12, 094

20,439
24,181
13,899
14,267

4,280
2,554
1,663
1,308

5,329
4,804
5,508
3,307

41,763 13,799
13,913 9,299
26,265 12,275
23, 235 10,232

4,700
225
1,200
700

3,252
1,150
1,850

1,318
1,293
1,520

16, 546
14,667
19,617
21,866

107,013
80,608
92,832
80, 673

12,251
5,973
11,351

10, 951
17, 722
13,426
11, 659

5,61
3,598
4,977
5,081

13,156
4,436
6,150
7,687

5,929 11,259
7,255 9,315
4,221 14,820
3, 011 14, 308

12,994 11,190
10,015 6,422
9,380 9,968
10,382 6,179

550
50

4,688
3,811
3,138
2,865

241
550
1,158
1,610

18,187
11,461
14,178
12, 024

4J715

f

663
662

58
58
58
58

33

REPORTING MEMBER BANKS IN FEDERAL RESERVE BANK CITIES
PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS
[In thousands of dollars]
Cities
I

Total

New
York

San

Cleveland

Richmond

AtSt. Minne- Kansas
lanta Chicago Louis apolis City Dallas

_,
1,746,714 1,032,423
982,638 6,572,455 1,017,700
19,7916,531,41011,024,117
982, 029 6, 556, 783 1, 017, 737

755,876
775,406
781,957
787,889

110,367
110,514
108, 726
110, 795

94,923 1,, 797,882441,867 176,450 179,180 114,002 731,361
93,456 1,, 780,174445,834 175,020 184,966 114,238 726,392
93,835 i;, 778,323442,289 171,812 177,306 116,672 716,548
93,507 li, 774,862441, 038
183,816 115,921 713,571

769,8014,843,061
757,8514,672
672,548
753,970
, , 6 74,671
1,228
750757 4,693,717
750,757
493

709,033
695,199
696,256
691,770

594,804
615,731
622,067
625,659

33,693
32,216
27, 714
29, 669

8,610
9,000
8,281
8,253

6,207
5,623
5,721
5,693

600
644
606
601

276,139J2,225,814
257,186 2,099,607
254,9912,083,682
257,297 2,122, 728

353,506
336,277
341, 732
334, 727

209,844
233,737
235,110
230,028

488,,162 2,,583,554
495,
), 374 2,
!, 540,725
493,1,697 2.!, 559,832
487,825 2, 541,320
541

346,917
349,922
346,243
348,790

Boston

Philadelphia

Fran-

Loans and investments—total:

July 6
—13,174,994
July 13
12,978,793
July 20
_ 12,932,786
July 27
12,946,557
Loans and discounts—total:
July 6
9,640,249
July 13
9,468,133
July 20
9,455,322
July 27
9,478,639
Secured by United States
Government
obligationsJuly 6
76,485
July 13
74,109
July 20
67,940
July 27
70,887
Secured by stocks and
bondsJuly 6
4,195,339
July 13
4,066,543
July 20
4,052,750
July 27
4,096,871
All other loans and discountsJuly 6
5,368,425
July 13
5,327,481
July 20
5,334,632
July 27
__ 5,310,881




5,500
5,291
5,282
5,635

94,770 70,671 1,,389,100 320,350 118,291 120,209
94,702 69,4261,386,447 323,667 116,868 125,348
92,421 69,825 1,389,886 320,813 114,058 117,081
94,374 69,8561, 388,670 321,774 112, 544

I,1

86,316
86,431
88,762
89,142

523,843
523,915
518,955
517, 387

419
332
300
302

1,683
1,667
1,672
1,654

1,635
1,639
1,641

13,295
13,026
12,255
13,071

2,831
2,919
2,813
2,754

813
550
568
576

1,186
1,206
1,089
1,038

25,037
25,061
23,325
25, 052

13,505
13,380
14,121
14,315

696,429
704,585
717,012
724,099

146,187
147,647
145,569
146,714

33,712
33,194
31,368
32,383

38,913
43,416
33,877
39,709

378,753 69,133
376,371
381,236 68,490
389,938 68,721

55,518
54,411
54,065
53,900

679,376
668,836
660,619

171,332
173,101
172,431
651, 500 172,306

83,766
83,124
82,122
79, 585

80,110
364,824
80,726 67,206 368, 688
82,115 69,334 364,448
82, 242 69,513 365, 241

18,917 157,336
153, 560
19,128 152,835
19,327 150,492

AUGUST,

FEDEEAL RESERVE BULLETIN

1927

PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS—Continued
[In thousands of dollars]
Cities
Total
Boston

In vestments—total:
July 6 - July 13.
July 20
July 27..
— United States Government securitiesJuly 6
July 13
_.
July 20
—.
July 27
Other bonds, .stocks, and
securitiesJuly 6
July 13
July20_._
July 27.
Reserve balances with Federal
reserve bank:
July6
July 13
July 20..
July 27
Cash in vault:
July6_
:.._.
July 13
July 20
.
July 27
Net demand deposits:
July 6
July 13
....
July 20
July 27
Time deposits:
July'6
July 13
July 20
July 27
Government deposits:
July6_
Julyl3__.
July 20
July 27
Due from banks:
July 6
July 13..
July 20.
July 27
Due to banks:
July 6
_
July 13
—
July 20
July 27..
Borrowings from Federal reserve banks—total :
July 6...
July 13
_.
July 20
July 27
Secured by U. S. government obligationsJuly 6
July 13
July 20....
July 27..
All otherJuly 6
July 13
July 20
July 27
_...„...
Number of reporting banks:
July 6
- July 13
July 20
July 27

55972—27




New
York

Philadelphia

3,534,745
3,510,660
3,477,464
3,467,918

224,1481 ,903,653
224,7871 , 899,907
235,i, 8211,., 860,182
231,i, 272 1,863,066

323,390
322,501
327,861
325,967

1,577,370
1,566,624
1,566,626
1,549,242

87,392 895,894
87,105 896,104
96,821 891,734
92,976

87,223
87,128
85,006
83,233

1,957, 375
1,944,036
1,910,838
1,918, 676

136,756 1,007,759
137, """ , 003,803
139,000 968,448
138,296 976,382

236,167
235, 373
242,855
242,734

Cleve- Richland mond

161,072 15,597 24,252
159,675 15,812 24,030
159,890 16,305 24,010
162,230 16,421 23,651

408,782
393,727
388,437
386,192

3,388 14,128
3,437 14,128
3,970 14,128
3,971 14,128

177,636
170,278
166,826
165,835

67,203
67,461
67,521
67,562

93,869 12,209
92,214 12,375
92,369 12,335
94,668 12,450

72, 355
76,900
79,048
72,843

715,975
735, 781
741,485
720,722

75, 525
75,471
76,084
70,852

47,309
41,488
40,331
42,335

8,033
7,314
6,376
6,882

8,218
8,184
7,510
7,850

60,964
58,755
54,872
56,638

12, 511
12,545
12,050
12,636

9,519
8,882
9,005

930
813

9,242, 413
9,171,128
9,121,332
9,106,114

693,012 5.347,
,713
275,808
705, 654 5,254,,891 679,108 278,100
700,078 5,230
, , 3 1 4 680,176 284,631
690,666
,666 5,
5225
,225,254 666.147 286,019

63,307
61, 618
61,040
66,081

3, 089,884
3,078,461
3,078,269
3,099,190

236,315 1,
[, 006,139
237,383 975,060
236,527 987,822
237,0461,[,000,460

1,208, 459
1,211,899
1,222,029
1,196,822
130,448
126,634
118,199
122,479

91,292
73,927
65,921
65,948
557,133
546,659
513,296
481,526
2,422,071
2,346,058
2,291,866
2,199,034

17,771
14,262
12,697
12,698

200,201
198,993
198,304
200,305

10,124
9,902
9,882
9,523

174,790
161,450
161,137
169,638

1,340
1,166
1,161
1,110

21,759
20,163
19,209
18,746

58,159
58,152
57,754
56,065

26,844
26,811
26,415
25,696

95,377
93,713
90,015
89,384

32,250 13,496 18,445
30,379 11,924 17,466
31,341 12,624 19,304
31,650 11,230 15,998

7,947
7,357
7,297
8,179

39, 716
40,770
40,538

1,261
1,231
1,198
1,338

6,129
6,256
5,198
5,380

2,550

53,022 1,208,324 267, 512
274,242
55,047"1,207,103
1
678 267,930
53,141 1,195,
"
SI,"" 1,198,831 269,301

106,372
105,853
103,375
100,226

167,263

472,233
35,162
496, 721 33,021 35, 350
493,972 33,120 35,808
499, 740 33,225 35,753

547,958
544,417
546,879
550,394

129,657
130,294
130,378
133,101

57,721
59, 624
59,134
58.701
1,643

16,337
13,296
11,833
11,833

2,134
1,738
1,548
1,575

296
241
215
214

2,772
2,217
1,995
1,995

9,847
7,907
7,142
7,142

1,611
1,311
1,165
1,165

51,759 110,371
44,888 90,295
43,697 85,415
43,445 83,838

53,884
52,808
49,881
46,100

23,789
22,136
20,898

7,059
8,329
5,909

11,633
13,420
11,645
10,004

142,319
153,256
148,167
129,246

26,891
27, 546
25,819
22,249

L, 234,100
166,703 1,
162, 636 1,
1,174,929
162,6611,, 153,324
150,640 1.,094,025

175.148
168,282
171,760
161,125

60,072 30,815

16,346

379,985 83,179 50,236
369,996 84,017 46.702
349,164 80,967 45,155
79,516 43,760

30,858

12,263
7,466
19,013
12,890

85,492
77,124
37,620
37,295

18,364
15,896
14,064
14,856

13,152
2,000
2,500
3,200

3,850
5,302
1, 777
720

150,188
106,245
80,970
81,728

1,025
2,825
8,725
7,415

81,450
63,050
27,875
29,100

12,870
12,370
9,150
9,829

7,150
1,700
1,000
3,000

125

60.917
45,514
50,040
38,706

11,238
4,641
10,288
5,475

4,042
14,074
9,745
8,195

5,494
3,526
4,914
5,027

6,002
300
1,500
200

3,725
5,302
1,777
720

220
220
220
220

17
17
17
17

53
53
53
53

36
36
36
36

15,281
14,060
1,312
461
239
339

l', 173
1,173
21,993
24,024
20,248
20,711

26,149 17,185
6,162 9,917
9,262 14,348

4,250
275
1,265
700

23,125
4,150
8,465
6,785

6,991
4,891
5,972
4,189

3,700
225
1,200
700

1,312
461
239
339

3,024
2,012
797
1,301

10,194
5,026
8,376
5,300

550
50
65

5
5
5
5

45
45
45
45

13
13
13
13

0

207,518
202,477
197,593
196,184

5,418
4,764
4,756
4,914

1,908
1,981
1,664
1,897

59,923 30,657
60,528 29,105

27,686
27,807
27,910
26,779

27,711
28,634
28,610
29,864

14,632
11,904
10,593
10,593

.

58,971
59,618
60,225
60,827

San
Francisco

47,522 31,315 31,260 22,268 112,141
46,851 31,341 30,984 23,043 108,764
46,937 31,339 31,615 23,151 107,578
44,856
30,963 21,865 106,800

231,146 73,995
223,449 75, 316
221,611 74,539
220,357 74,408

6,232
5,955

6,576

121,517
122,167
121,476
119,264

3,630
3,461
3,217
4,601

211,105
151,759
131,010
120,434

6

St.
Minne- Kansas Dallas
Chicago Louis
apolis City

Atlanta

2,425
2,396

35,758

76,745 295,035
77,452 301,950
166, 595
299,841
169,856 77,927 304,503

170,110

18, 638 17,741 335,129
19,441 17,695 330,462
19,114 17,483 319,728
18,825

17,744

1,455
1,183
1,053
1,053

5,347
4, 351
3,872
3,872

17,447
14,197
12,635
12,635

36,479 16,479
38,458 16,528
33,692 14,507
35,533 13,134

54,477
52,138
52,180
50,279

92, 724
93,536
89,835
91,252

26,371
25, 219
23,851
23,762

106,392
113,356
109,288
104,652

3,117
4,091
2,052
2,070

281
815
1,792

25, 690
23,065
28, 055
28,997

350

185

2,476
225
352

13, 217
14, 558
18,358
20,358

2,767
1,615
2,052
2,070

590
1,440

12,473
8,507
9,697
8,639

13
13
13
13

7
7
7
7

10
10
10
10

96

624

FEDEEAL RESERVE BULLETIN

AUGUST, 1927

BROKERS' LOANS
LOANS TO BROKERS AND DEALERS, SECURED BY STOCKS AND BONDS, MADE BY REPORTING MEMBER BANKS IN
NEW YORK CITY
[In thousands of dollars]
Demand loans

Demand and time loans

July 6.
July 13___—
July 20
July 27___._-

Total

For own
account

For
account
of outof-town
banks

3,126, 327
3, 059, 279
3,058,974
3,141,193

1,105, 949
991,498
981,769
1,047,608

1,155,799
1, 204, 315
1, 202,644
1,187,441

For
account
of others

864, 579
863,466
874, 561
906,144

Total

2, 377, 777
2, 299, 507
2, 294,481
2,375,321

Time loans

For own
account

For
account
of outof-town
banks

For
account
of others

779,919
659,700
656,490
723,913

831, 680
879,185
868,129
850,938

766,178
760, 622
769,862
800,470

For own
account

Total

748, 550
759, 772
764,493
765,872

326,030
331,798
325,279
323,695

For
account
of outof-town
banks
324,119
325,130
334. 515
336,503

For
account
of others

98,401
102, 844
104, 699
105,674

BROKERS' BORROWINGS ON COLLATERAL, IN NEW YORK CITY, REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings. In thousands of dollars]
Total

Borrowings from—
New York banks and trust
companies

Date
On
demand

Total

On time
Total

2,541,682
2,328,340
2,475,498
2, 504, 688
2,541,306
2,673,993
2, 756,969
2,764,511

3,292,860
3,138,786
3, 256,459
3, 289,781
3, 341,210
3,457,869
3. 568,967
3,641,695

1926—Dec. 31.
1927—Jan. 31Feb. 28.
Mar. 31
Apr. 30.
May 31.
June 30.
July 30.

Private banks, brokers, foreign
banking agencies, etc.

751,178
810,446
780,961
785,093
799,904
783, 876
811, 998
877,184

On demand

2,803, 585
2, 670,144
2, 757, 385
2, 790,080
2,864, 957
2,967,546
3,064,975
3,144,976

On time

2,127,996
1, 963, 554
2, 084,852
2, 111, 565
2,146,447
2, 254,153
2,316,440
2,343,316

Total

675,589
706, 590
672, 533
678, 515
718,510
713, 393
748, 535
801,661

On demand

489,275
468,642
499,074
499, 701
476,253
490, 323
503,992
496,719

413, 686
364,786
390,646
393,123
394,859
419,840
440,529
421,195

On time
75,589
103, 856
108,428
106, 578
81,394
70,483
63,463
75,523

ALL MEMBER BANKS
DEPOSITS, BY FEDERAL RESERVE DISTRICT AND SIZE OF CITY
[In thousands of dollars]
Net demand deposits
1926

1927
M a r . 23

A p r . 27

T i m e deposits

M a y 25

J u n e 22

J u n e 23

1927
M a r . 23

|

• 1926

Apr. 27

M a y 25

J u n e 22

J u n e 23

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

._

1,357,495
6, 537,120
1, 201,346
1, 565,183
613, 307
618, 079
2,493,431
726,871
424, 870
874,982
645,449
1,298,987

1,388,999
6, 592, 670
1,194, 758
1,515,128
607,826
614, 672
2,497,190
729, 554
405, 767
854, 225
632, 818
1, 312,106

1,395,009
6,712,049
1,191,239
1, 521,344
607,942
601,350
2, 551,378
724,384
399,616
838, 619
613,136
1, 314,887

1,397,206
6, 771, 542
1,177, 296
1, 576,897
612,324
587,188
2, 517,104
727,157
409, 701
846, 366
606, 696
1,304, 431

1,376,357
6,443,053
1,187, 668
1, 520, 560
585,834
649, 584
2,472,402
730, 589
437, 644
851, 921
588,075
i, 266,447

890, 769
2, 593,487
976, 648
1,481,059
539,947
453, 357
1,891,609
514,079
430,266
326,770
176,130
1, 576,153

895, 339
2,615,989
986, 065
1, 534, 888
548, 611
456,010
1,956, 695
514, 784
431, 238
328,499
175, 836
1, 557,879

906,358
2, 628, 743
987, 946
1, 553, 859
552, 642
462, 732
1,979,175
520,851
431,485
330, 823
178,895
1, 590,128

914, 574
2, 682, 325
989, 651
1, 507, 593
555, 618
460,112
2,019,010
508,726
433, 219
330,407
180, 545
1, 577,050

852,245
2, 350,454
894,481
1,411,006
518,690
443, 594
1,928,196
477,187
434,380
321,439
166,827
1,378,973

18, 357,120

18, 345, 713

18,470, 953

18, 533, 908

18,110,134

11, 850, 274

12, 001, 833

12,123,637

12,158, 830

11,177,472

Banks in cities and
towns having a
population of—
Less than 5,000.- 1, 628,223
5,000 to 14,999
1,115,408
15,000 to 99,999... 2, 353, 827
100,000 and over.. 13, 259, 662

1,613,762
1,114,248
2, 358,158
13,259, 545

1, 608, 719
1,104, 643
2,352, 628
13.404.963

1, 597,148
1, 111, 583
2,335,074
13,490,103

1, 634, 673
1,118,469
2, 362, 562
12,994,430

1,844,336
1, 211,002
2,316, 003
6.478,933

1,839, 547
1, 219,967
2,337,857
6.604.462

1,857,083
1, 222,435
2,358,077
6. 686, 042

1,855,311
1,233,482
2,363,066
6.706.971

1, 788, 633
1,157,523
2, 216, 950
6, 014, 366

-..
_..

Total.—




625

FEDEEAL EESEEVE BULLETIN

AUGUST, 1927

BANKERS' ACCEPTANCES OUTSTANDING
[In thousands of dollars]
Banks outside New York
City

Banks in New York City

All reporting banks *
End of—
1925

January—
FebruaryMarch
April -_
May
__
June
_July
_
August-.
September
OctoberNovember-.
December—
1

834,825
808,359
800,137
757,074
607,942
569,386
555,167
| 607,025
674,168
689, 768
773,736

1926

1927

1925

788,254
767,127
745,660
720,611
685,333
621,949
600,487
582,635
614,151
681,647
726,395
755,360

773,604
785,488
809,446
810,966
774,720
751,270

588,501
562,405
560,007
544,603
499,509
451,844
425,725
404,247
447,387
502,810
507,592
579,836

1926

1927

574,042
559,731
543,502
524,608
506,012
461,508
440,797
420, 545
442,999
500,186
532,166
560,964

567,554
574,202
598,536
604,052
579,698
561,274

1926

1925

246,324
245,954
240,130
212,471
180,837
156,098
143,661
150,920
159,638
171,358
182,176
193,900

214,212
207,396
202,158
196,003
179,321
160,441
159,690
162,090
171,152
181,461
194,229
194,396

1927
206,050
211,286
210,910
206,914
195,022
189,996

Figures collected and compiled by American Acceptance Council.

LAND BANKS AND INTERMEDIATE CREDIT BANKS
LOANS OF FEDERAL AND JOINT-STOCK LAND BANKS
[In thousands of dollars]

LOANS OF INTERMEDIATE CREDIT BANKS
[In thousands of dollars]
1927

Net amount of loans outstanding

Class of loan
July 2 July 9 July 16 July 23 July 24

Date
Total
1926
Jan. 31.
— . _
Feb. 2 8 — —
Mar. SI.-.—
Apr. 30
May 31.
—
June 3 0 _ — ~ —
July 31
— .
Aug. 31
— —
Sept. 30. _ — —
Oct. 31.
Nov. 3 0 — —
Dec.
31——
1927
Jan. 3 1 . .
Feb. 28.-Mar. 3 1 —
Apr. 30
May 31
June 30_

Joint-stock
Federal
land banks land banks
(12 b a n k s )

(54 b a n k s )

1,566,844
1,587,030
1,606,818
1,620,214
1,632,413
1,644,105
1, 653,902
1,664,130
1,671,856
1,682,273
1,692,826
1,710,295

1,011,088
1,019,486
1,027,361
1,033,045
1,038,385
1,043,955
1,048,184
1,053,336
1,057,217
1,063,056
1,068,596
1,077,819

555,756
567,544
579,457
587,169
594,028
600,150
605,718
610,794
614,639
619,217
624,230
632,476

1,724,821
1,745,404
1.765,365
1,732,395
1, 741, 275
1,738,165

1,085,170
1,097,642
1,109,354
1,117,914
1,124,055
1,130, 648

639,651
647,762
656,011
614,481
617,220
607, 517

Direct loans outstanding o n Cotton
1,698
1,336
511
293
6,117 6,264 6,224 6,374
Tobacco
300
Wheat.
150
200
Canned fruits and vege551
557
474
488
tables__
5, 000 5, 000 5,000 5,000
R aisins
789
900 1,086
Wool
1,183
1,004
94.6
Rice._914
839
109
Allother
105
66
57
15, 568 15,108 14,425 14, 434
TotalRediscounts o u t s t a n d i n g
forAgricultural credit cor29,045 34, 514 29,465 29,504
porations
37
37
37
37
National banks..
601
589
551
State banks
596
Livestock loan com19, 719 14,482 19, 615 19,700
panies
Savings banks and trust
67
76
companies
67
Total

49,469 49, t

DEBITS TO INDIVIDUAL ACCOUNTS BY FEDERAL RESERVE
DISTRICTS
[In thousands of dollars]




M a y , 1927

J u n e , 1926

1
140

33,008,251
23,806,913

31,270,139
22,874,987

28,196,065
22,466,147

11
7
10
13
7
15
21
5
9
15
10
18

2, 847,802
33,893,620
2,294,481
2, 984,591
766,403
1,074,650
6,059,258
1,242,557
665,021
1,240,210
580,948
3,165,623

2, 724,323
32,117,870
2,249,657
2, 589,809
715,656
1,081,748
5,955,773
1,202,490
652,759
1,197,049
576,092
3,081,900

2,611,091
29,063,449
2,210,598
2, 553,924
797,444
1,106,449
5, 731,621
1,225,233
670,147
1,225,456
570,435
2,898,365

141

56,815,164

54,145,126

50,662,212

'__'_

!

30,222
3
459
12, 842
62
43, 588

MEMBERSHIP, BY FEDERAL RESERVE DISTRICTS
[Number of banks at end of June]
Member banks

New York City
Outside New York C i t y Federal reserve districts:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
...
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

703
3,150
2,017
594
190
30,356

PAR COLLECTION SYSTEM

BANK DEBITS

Number of J u n e , 1927
centers

49,782 49,881

9,820
12,882
1,000

_L.

L_^

Federal reserve
district

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

Nonmember banks
On p a r list

1927

Not on par list *

1926
1927

1926

1927

9,106

9,384

13,556

14,257

3,863

415
928
775
841
569
469
1,308
599
739
972
815
676

416
895
760
860
589
489
1,369
619
806
1,011
844
726

245
412
502
1,030
665
317
3, 737
1,934
840
2,461
682
731

245
402
5.14
1,072
694
351
3,762
2,036
1,049
2,601
747
784

10
607
1.026
184
435
1,113
229
198
61

* Incorporated banks other than mutual savings banks,

1926
3,965

•'•

9

655
1,108
240
418
1,083
202
186
64

FEDERAL RESERVE DISTRICTS

N.DAK.
9

-^

MINN, i

Mcijpws -

^

•—»BOUNDARIES OF FEDERAL RESERVE DISTRICTS
— — BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES
®
FEDERAL RESERVE BANK CITSES
d FEDERAL RESERVE BRANCH..CITIES.'
O FEDERAL RESERVE BANK AGENCY




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