Full text of Federal Reserve Bulletin : August 1928
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FEDERAL RESERVE
BULLETIN
AUGUST, 1928
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
The Return to Gold
Amalgamation of Currencies in Great Britain
New French Currency Law
Reserve Requirements of Central Banks
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON
1928
FEDERAL RESERVE BOARD
Ex officio members:
ROY A. YOUNG, Governor.
EDMUND PLATT, Vice Governor,
A. W. MELLON,
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
GEORGE R. JAMES.
EDWARD H. CUNNINGHAM.
Secretary of the Treasury, Chairman.
J. W. MCINTOSH,
Comptroller of the Currency.
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.
J. F. HERSON,
Chief\ Division of Examination, and Chief Federal
Reserve Examiner.
CARL E. PARRY, Assistant Director, Division of Research and Statistics.
E. L. SMEAD, Chief, Division of Bank Operations.
FEDERAL ADVISORY COUNCIL
District No. 1 (BOSTON)
District No. 2 (NEW YORK)
ARTHUR M. HEARD.
JAMES S. ALEXANDER.
District No. 3 (PHILADELPHIA)
L. L. RUE.
District No. 4 (CLEVELAND)
HARRIS
District No. 5 (RICHMOND)
JOHN F. BRUTON, Vice President.
District No. 6 (ATLANTA)
_
P. D. HOUSTON.
District No. 7 (CHICAGO)
District
District
District
District
District
II
No.
No.
No.
No.
No.
8 (ST. LOUIS)
9 (MINNEAPOLIS)
10 (KANSAS CITY)
11 (DALLAS)
12 (SAN FRANCISCO)—
CREECH.
FRANK O. WETMORE, President.
__
_
W. W. SMITH.
THEODORE WOLD.
P. W. GOEBEL.
. B. A. MCKINNEY.
F. L. LIPMAN.
OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
Chairman
Deputy governor
Governor
W. Willett.
J. W. Jones.i
Ray M. Gidney.*
J. E. Crane.1
W. B. Matteson.i
W. W. Paddock...
J. H. Case
L. F. Sailer
G. L. Harrison
E R. Kenzel
A. W. Gilbart
L. R. Rounds
Wm. H. H itt
Boston
New York...
Frederic H. Curtiss
Q. W. McGarrah
W. P. G. Harding.
Benj. Strong.
Philadelphia
R. L. Austin
Geo. W. Norris__
Cleveland
George DeCamp
E. R. Fancher...
Richmond
Wm. W. Hoxton
George J. Seay...
Atlanta
Oscar Newton
Eugene R. Black.
Chicago
Wm. A. Heath
J. B. McDougal..
St. Louis
Wm. McC. Martin
D. C.
O. M Attebery—.
MinneapolisKansas City..
Dallas
John R. Mitchell
W. B. Geery
M. L. McClure
C. C. Walsh
Isaac B. Newton.
W. J. Bailey
Lynn P. Talley
J. U. Calkins...
B. V. Moore
Harry Yaeger
C. A. Worthington.
R. R. Gilbert
R. B. Coleman
Wm. A. Day
Ira Clerk
San Francisco.
Cashier
C. A. Mcllhenny.
W. G. McCreedy.*
H. F . Strater.
M. J. Fleming
Frank J. Zurlinden.
C. A. Peple
R. II. Broaddus..._
Hugh Foster
Creed Taylor
C. R. McKay
John H. Blair
i Assistant deputy governor.
Geo. II. Keesee.
John S. Walden, jr.'
M. W. Bell.
W. C. Bachman.*
K. C. Childs.'
J. H. Dillard.'
D. A. Jones.1
O. J. Netterstrom. 1
A. H. HailU
F. N . Hall.' 1
S. F. Gilmore.
G. O. Hollocher.2
C. A. Schacht.»
Gray Warren.
Frank C. Dunlop. 1
J. W. Helm.
Fred Harris.
W. D. Gen try.»
Wm. M. Hale.
* Controller.
MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
New York:
Buffalo branch
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Charlotte 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. II. Dudley.
Hugh Leach.
Marcus Walker.
W. S McLarin, jr.
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 b anch
Kansas City:
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 Ear hart
J. E. Olson.
C. E. Daniel.
W. 0 Ford
D. P. Reordan.
M. Crump.
W. N . Ambrose.
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
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or periodical publication of the board. The BULLETIN will be sent to all member
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cents.
in
TABLE OF CONTENTS
Page
Review of the month—The return to gold
Completion of monetary reconstruction—Forms of gold basis—Redistribution of gold—Reserve
position of central banks—Stability of the exchanges—Convergence of money rates.
541
Annual report of the Federal Reserve Board
Earnings and expenses of Federal reserve banks
The return to gold—Summary, by countries
Reserve requirements of central banks in foreign countries
Amalgamation of currencies in Great Britain
Text of British currency and bank notes act, 1928
New French currency law and administrative conventions
New balance sheet of the Bank of France
Annual report of the National Bank of Hungary
Annual report of the Bank of Norway
Annual report of the National Bank of Rumania
Annual report of the National Bank of Albania
544
611
562
563
564
565
570
576
577
580
583
585
,
National summary of business conditions
545
Financial, industrial, and commercial statistics:
Reserve bank credit
Monetary gold stock and money in circulation
Discount rates and money rates
Member bank credit
Bankers' balances
Bankers' acceptances and commercial paper outstanding
Brokers' loans
Commodity prices, security prices, and security issues
Production, employment, and trade
Industrial production
Facto.ry employment and pay rolls
Building
Trade and distribution
Bank suspensions and commercial failures
July crop report
546
547
548
550
551
551
552
553
554
555
556
557
558
560
561
Financial statistics for foreign countries:
Condition of central banks
Condition of commercial banks
Discount rates of central banks
Money rates
Gold exports and imports
Foreign exchange rates
Price movements
588
590
590
591
592
593
594
Changes in National and State bank membership
Fiduciary powers granted to national banks
Detailed banking statistics for the United States
IV
_*>
597
597
598
FEDERAL RESERVE BULLETIN
VOL. 14
AUGUST, 1928
REVIEW OF THE MONTH
Reestablishment of the gold standard in
France on June 25 signalizes the practical completion of the world's monetary
Completion of r e c o n s t r u c t i o n < Currencies of
monetary recon-
struction
nearly all the principal countries now bear a definite relationship to gold, and their gold parities are in
the majority of cases established by law, though
in a few countries they are maintained solely
as a matter of administrative practice. The
return to gold has reduced the danger of wide
fluctuations in foreign exchange, thus removing
the obstacles to international trade arising
from uncertainty of currency values, and removal of barriers against the free movement
of gold has brought the money markets of the
world into closer relationship; as a consequence,
money rates and commodity prices, once more
subject to the same influences throughout the
commercial world, tend to be in closer international alignment.
The return to a gold basis has taken different
forms in different countries. A complete gold
standard—characterized by abForms of gold s e n c e f a U r e s t r i c t i o n s o n gtoo l d
basis.
.
imports or exports, full redeemability of notes in any amount in gold, and
unlimited obligation of the mint to purchase
and sell gold at a fixed price—exists in practice
only in the United States. Other countries
have followed Great Britain in adopting the
gold bullion standard under which the central
bank is under obligation to redeem its notes
only in bullion or bars of a specified minimum
weight (400 ounces, worth about $8,000, in
Great Britain). This method makes for economy of gold by keeping it from domestic
circulation, without placing obstacles in the
way of international gold shipments. Many
other countries have adopted the gold-exchange
standard, which gives the central bank the
No. 8
option of redeeming its notes either in gold or
in drafts upon gold standard countries. Under
the recently accomplished monetary reform in
France, the legal basis for a full gold standard
has been established, but for the present the
Bank of France has been given the option of
paying out gold only above a certain minimum
amount, which has been fixed at 215,000 francs,
or $8,400, an amount similar to the minimum
established in England. A summary of the
status of monetary reform in about 30 foreign
countries appears elsewhere in this issue of the
BULLETIN, which contains also an article on
the recent amalgamation of the Treasury and
Bank of England currencies in Great Britain
and the text of the laws and conventions
adopted in connection with the return of France
to a gold basis.
That the progress of the gold standard during
the past year has been accompanied by the
withdrawal of a considerable
of gol d d StribUti ° n
v o l u m e of g o l d f r o m t h e
United
States was indicated in this
review for July. The following table shows
gold holdings of the central banks and Governments of principal countries in mid-year, 19241928, and changes for the four-year period.
CENTRAL GOLD HOLDINGS
[End of June figures. In millions of dollars]
!
Country
United States 1
France
Great Britain
Argentina
Japan
Spain.. _ Germany
Italy
Netherlands
O ther countries
Total
..--
1927
Increase
(+) or
decrease
(-)
between
1924 and
1928
1924
1925
1926
4,095
710
624
458
599
489
110
218
214
1,146
3,962
711
765
461
586
490
253
219
183
1,226
4,056
711
731
451
570
490
355
219
172
1,226
4,202 3,732
2 875 1,136
740
838
452
616
544
542
501
503
429
496
225
257
162
175
1,287 1,437
-363
+426
+214
+158
-57
+14
+386
+39
-39
+292
8,663
8,856
8,981
9,417
9,733
+1,070
1928
12 Treasury and Federal reserve banks.
Partly estimated.
541
542
FEDERAL RESERVE BULLETIN
' Growth from year to year in the total of
central gold holdings represents for the most
part the excess of gold production over consumption by the arts and absorption by India,
but reflects also the acquisition of gold by
central banks from private hoards and the
release for monetary use of gold previously
held as security for loans. The increase in
gold holdings was particularly large between
1926 and 1927 and also between 1927 and 1928.
During both of these years India was a relatively small taker of gold, and there were also
considerable amounts of gold obtained from
hoards and released from pledge.
The total increase in central gold reserves
for the period was considerably in excess of
$1,000,000,000, and increases were shown by
all the countries listed in the table with the
exception of the United States, Japan, and
Netherlands. If the gold withdrawn from the
three countries mentioned is added to the gold
derived from other sources, it appears that the
central institutions outside of these three countries have increased their holdings of reserves
by more than $1,500,000,000 during the four
years. Of this amount, $426,000,000 went to
France, $384,000,000 to Germany, $214,000,000
to Great Britain, and $158,000,000 to Argentina. Increases in the gold stock of other countries were relatively smaller in volume, but a
large number of countries not listed in the table
showed an increase in gold reserves amounting
to nearly $300,000,000, of which more than
$80,000,000 went to Brazil. The United States
is the only country which lost a considerable
amount of gold over the period, and the proportion of central gold reserves that are held in the
United States declined from about 50 per cent
in 1924 to about 40 per cent in midsummer of
this year. The loss of gold reserves by the
United States, however, still leaves the Federal
reserve banks in exceptionally strong reserve
position, while the increase in the gold holdings
of foreign countries increases the security of the
gold standard in the world.
AUGUST, 1928
Changes in the reserve position of the principal central banks are indicated in the table
below, which shows the reserve
Reserve position of central
ratiog for
j
i m
'
and
j
'
'
banks.
1928, and changes for the year
in note and deposit liabilities
and in holdings of gold and foreign exchange.
In the item of foreign exchange is included not
only such foreign exchange as can be counted as
legal reserve, but also other foreign exchange.
The table is intended to bring out the position
of the central banks in respect to demands that
may be made upon them for making international payments and is, therefore, indicative of
the banks' positions in regard to operating
reserves rather than legal reserves.
RESERVE POSITION OF CENTRAL BANKS
Bank
Ratio of
reserve
material to
notes and
deposits
(per cent)
Increase (+) or decrease (—)
between June, 1927, and
June, 1928 (in millions of
dollars)
Liabilities
Reserve
material
June, June, Notes De- Gold
1927 1928
posits
Federal reserve banks
Bank of France
Bank of England-—
National Bank of Argentina
Bank of Japan
Bank of Spain
German Reichsbank
Bank of Italy
Bank of Netherlands
74.3
66.2
30.0
20.0
47.9
57.0
34.0
39.7
62.8
+65 -449
-23 +261
+13 +98
37.1
+62 +132
47.7 ""-97 +100
-17
58.9
-10
+2
-34 +67
40.4 +99
+19 +31
52.3 - 9 0
72.2 +18
+12
63.4
77.7
33.4
-76
+308
+30
Foreign
exchange
+254
+6
+44
+75
+30
NOTE.—For the Federal reserve banks, which hold practically no
foreign exchange, and the banks of England and Japan, whose foreign
exchange holdings are not made public, ratios shown are for gold reserves
alone. Figures for the Bank of Fiance are based in part on estimates.
For the National Bank of Argentina figures used for gold holdings include
other cash, principally notes issued by conversion office. For the German Reichsbank the figures used for foreign exchange include only
foreign exchange reported in the reserve.
Between the middle of 1927 and the middle
of 1928 the reserve ratios of all of the banks
included in the table, with the exception of the
Federal reserve banks and the Bank of Japan,
showed a considerable advance. The rise in
the reserve ratios of foreign central banks has
been brought about in part through the transfer
of gold from the United States to other coun-
AUGUST, 1928
FEDERAL RESERVE BULLETIN
tries, and the reserve ratio of the 12 Federal
reserve banks combined showed a decline from
74.3 per cent to 63.4 per cent. In the middle
of 1927 the reserve ratio was higher at the Federal reserve banks than at any of the other
important central banks, while at the present
time higher reserve ratios are shown by the Bank
of France, and the Bank of Netherlands. If the
fact is taken into consideration, however, that
the actual amount of monetary gold in the
United States is still nearly four times as large
as that in any other country—including more
than $1,400,000,000 of gold in circulation in the
form of gold coin and gold certificates—it is
apparent that the reserve position of the United
States continues to be exceptionally strong.
Values of the principal currencies in the international market have fluctuated within a narrow range during the past year
a
y
**
I
*
°
the exchanges. since, with
, the reestablishment
. .
of free gold markets, variations
from parity in excess of the cost of shipment
have resulted in actual movements of gold.
Compared with the wide and rapid fluctuations
in some earlier years, recent changes in exchange
rates have been negligible, and exchange fluctuations are no longer one of the great hazards
in international trade and a matter of daily
concern to importers and exporters, but have
resumed within the last year or two their normal function as regulators of national gold
movements, and it is once more chiefly to central banks and to dealers in gold and in exchange
that these fluctuations are of immediate importance. During the larger part of the past
year the dollar has been at a discount, as compared with the British pound, the French franc,
the German mark, and other important currencies. This lower level in the international
value of the dollar has been due to the relatively low level of money rates in the United
States and to the large volume of foreign lending by American investors, and has been the
immediate occasion for the outflow of much of
the gold that has left this country. The recent
rise in money rates in the United States, together with changes in the European situation,
following the return of France to gold, has been
reflected in declines in the dollar value of
543
European currencies, and recently the pound
and the franc have been near their par values
in the New York market.
Less direct than the effect of the return to
gold on exchange values has been its influence
on the level of money rates in
onvergence
^ principal international cenof money rates.
ters. I he chart indicates, nevertheless, that open-market money rates in New
York, London, Amsterdam, and Zurich have
ACCEPTANCE RATES
IN INTERNATIONAL CENTERS
1926
1927
1928
Open-market rates on a weekly basis
been in closer alignment during the last year
and a half than they have been at any other
time in the post-war period. The rates in Berlin, however, are further from the general level
at the present time than they were two years
ago, but closer than in earlier years. The fact
that German rates are not yet in close adjustment to the world level is due to special conditions in that country that have prevented Berlin from resuming its former place as an important international money market. The
chart brings out the fact that at present, for the
first time since 1924, with the exception of a
brief period in 1925, money rates in New York
are higher than in London, and that they have
resumed their usual position above the levels
prevailing in Zurich and Amsterdam. Easy
money in the United States last year encouraged
foreign borrowing in this country, and the proceeds of foreign loans by increasing the supply
of dollar exchange have been a factor in the
544
FEDERAL RESERVE BULLETIN
withdrawal of gold from the United States.
At the same time easy money conditions in the
United States have encouraged the growth of
bank credit for domestic use. Increased demand for reserves in the United States, together with gold withdrawals by foreign countries, has caused money rates in the United
States to advance recently to the highest level
in five years.
Freedom of gold movements and the convergence of money rates under the gold standard have also exerted an influence toward a
closer adjustment of commodity prices in
different countries. International price comparisons can not be made precise, owing to
technical differences in the existing index numbers and the differences in economic conditions
in the different countries. Nevertheless, certain tendencies in the relationship between
price movements in different countries can be
observed. Even prior to the restoration of
the gold basis price levels in the principal
commercial countries began to show less
extreme divergence than had prevailed during
the period of inflation and currency disorganization. In fact, restoration of currency stability in the different countries has generally
taken place after the domestic value of the
local currency, when expressed in gold, had
been brought into approximate adjustment to
the buying power of gold standard currencies.
After the return to the gold basis, price movements in the different countries have tended to
come into still closer general alignment with
one another.
To summarize, the past 12 months have
witnessed the practical completion of the
world's return to the gold basis. Currencies
of nearly all the principal countries of the
world have resumed a definite relationship to
gold, and free international gold movements
have been substantially restored, though there
are still certain restrictions upon gold withdrawals in many foreign countries. The return to free gold movements has reduced
fluctuations of the exchanges to a range within
the gold points, has brought about a closer
adjustment of money rates at the principal
AUGUST, 1928
money markets, and has been an influence for
effecting a closer interrelationship of commodity price movements as between different
countries. Reestablishment of these relationships has had the important consequence, from
the reserve bank point of view, of restoring
the influences that under the gold standard
tend to correct exceptional credit developments in any country that takes an important
part in international finance and trade.
Annual Report of the Federal Reserve Board
The complete edition of the Annual Report
of the Federal Reserve Board, covering operations for the year 1927, is now in press and is
expected to appear about the end of August.
It contains, in addition to the text of the
report issued in March, tables relating to reserve bank credit, member and nonmember
bank credit, gold stock, gold movements,
money in circulation, money rates at home
and abroad, and general business conditions in
the United States. It also gives in full the
recommendations of the Federal Advisory
Council during 1927 and the regulations of the
Federal Reserve Board.
Many of the tables cover a longer period
than those given in earlier reports, the period
1914-1927 for the principal statistics relating
to the Federal reserve banks and to member
and nonmember banks. For the reporting
member banks figures are given for the entire
period for which they are available (19191927), and most of the tables relating to
money rates and to industrial and commercial
conditions in the United States cover the same
period. The revised data relating to the
monetary gold stock of the United States and
to United States money in circulation, which
were given for the last five years in the BULLETIN for December, 1927, are shown in the
annual report back to 1914.
A larger number of tables than in previous
reports show monthly averages of daily figures,
or of weekly figures, and weekly^averages of
daily figures.
Advances in Discount Rates
Advances of discount rates from 4j/£ to 5 per
cent on all classes of paper of all maturities
were made at the following banks, effective on
the dates indicated: Atlanta, July 14; Boston
and St. Louis, July 19; Philadelphia, July 26;
and Cleveland, August 1.
AUGUST, 1928
FEDERAL RESERVE BULLETIN
545
NATIONAL SUMMARY OF BUSINESS CONDITIONS
Industrial production and the distribution of
commodities in June were in smaller volume
than in May, and the general level of wholesale
prices, following a sharp advance in April and
May, also declined. Member bank credit was
in record volume early in July, and indebtedness at the reserve banks was larger than at
any time in the past six years.
Production.—Activity of manufacturing industries declined slightly in June, and there
was a decrease of about 6 per cent in the output of minerals owing to declines in the production of coal. The manufacture of iron and
steel decreased in June but in July was in larger
volume than a year ago. Production of flour
and activity of cotton and wool mills also declined in June. Automobile production showed
less than the usual seasonal decline in June,
and weekly employment figures for Detroit indicate that operations of automobile plants
were well maintained during July. Production
of lumber, copper, and shoes, and activity of
silk mills increased in June.
Contracts awarded for new building continued large in June, and total awards for the
first half of the year exceeded those for any
previous corresponding period. There were increases over last year in contracts for residential,
industrial, public, and educational building.
The July estimates of the Department ot
Agriculture indicate a yield of wheat of 800,000,000 bushels, a decrease of 8 per cent from
the harvested yield of 1927, and a yield of
corn of 2,736,000,000 bushels, a reduction of 2
per cent. The production of oats, barley, white
potatoes, and tobacco is expected to be larger
than last year. The acreage of cotton in cultivation on July 1 was estimated at 46,695,000
acres, 11 per cent more than a year ago.
Trade.—Merchandise distribution at retail
and wholesale was seasonally smaller in June
than in May. Sales of department stores declined by about the usual seasonal amount,
while the declines in sales of chain stores were
smaller. Sales of wholesale firms in most lines
of trade showed a more than usual seasonal
decline. Compared with a year ago sales of
department stores and chain stores were larger
and those of wholesale firms were smaller.
Stocks of wholesale firms were in about the
same volume at the end of June as a year ago
and those of department stores were smaller.
Freight-car loadings for practically all classes
of commodities declined in June and continued
in smaller volume than a year ago. During the
first two weeks of July, however, owing to increases in loadings of grains and miscellaneous
commodities, total loadings were larger than in
the corresponding period of 1927 but continued
below the high level of 1926.
Prices.—The general level of wholesale commodity prices declined in June, and the Bureau
of Labor Statistics index, which had advanced
from 96 per cent of the 1926 average in March,
the low point for the year, to 98.6 per cent in
May, declined in June to 97.6 per cent. The
decline in the all-commodities index reflected
decreases in those groups which had advanced
most rapidly in previous months—farm products, foods, and hides and leather products.
Prices of livestock and meats, which are
included in these groups, however, showed
further advances in June, and there was also
an increase in the prices of building materials,
while prices of silk, fertilizer materials, house
furnishings, and automobile tires declined.
During the first three weeks in July there were
declines in the prices of wheat and cotton, and
advances in cattle and hogs.
Bank credit.—Member bank credit, after
rising to a record volume early in July, declined somewhat during the two following
weeks, and on July 18 total loans and investments of reporting banks in leading cities were
about $160,000,000 smaller than four weeks
earlier. The decrease was largely the result
of reduction by about $125,000,000 in the
banks' investment holdings, but reflected also
a decline in the volume of loans on securities
following a temporary increase over the midyear. Contrary to the usual seasonal trend,
loans largely for commercial purposes were in
record volume during the period.
Member bank borrowing at the reserve
banks showed a decline following the mid-year
settlement period, but the volume on July 25,
at slightly more than $1,000,000,000, was somewhat larger than five weeks earlier. Holdings
of acceptances and United States securities
declined during the period.
In July there were further advances in open
market rates for commercial paper and bills,
and discount rates at eight Federal reserve
banks were raised from 4 ^ to 5 per cent.
NOTE.—Charts and tables giving figures upon the basis of which the foregoing summary was prepared are given in the following section of the
Bulletin: "Financial, Industrial, and Commercial Statistics."
546
FEDERAL RESERVE BULLETIN
AUGUST, 1928
RESERVE BANK CREDIT
RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES
1925
1924
1926
1927
1928
RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES
[Averages of daily figures. In millions of dollars]
Changes as compared with preceding month or
week
Reserve bank credit outstanding
Bills and securities held by Federal reserve banks
Month or week
Total
volume *
1927
January.. .
February
March
. . .
April.,
May
June
July...
August _
September. _
October
November
December. _
January...
February
March..
April
May June
July
1928
Week endingJuly 7
July 14
July 21
July 28
__
. .. .
_ _ ..
_ ..
_ _. _
. ._
Total *
Bills discounted for
member
banks
Bills
bought
United
States
securities
Volume
of reserve Monetary Money in
bank
credit out- gold stock circulation
standing
1,186
1,043
1,055
1,087
1,041
1,081
1,115
1,093
1,187
1,254
1,377
1,568
1,138
1,006
1,024
1,039
1,000
1,033
1,026
1,022
1,139
1,213
1,331
1,513
481
393
425
447
473
429
454
409
422
424
415
529
343
304
253
248
233
205
190
173
216
282
336
378
310
307
345
341
291
398
381
439
501
506
579
606
-263
-143
+12
+32
1,389
1,264
1,295
1,405
1,472
1,531
1 531
1,350
1,237
1,272
1,371
1,442
1,495
1,488
465
471
513
661
836
1,019
1,090
373
360
343
358
349
244
185
512
406
415
351
257
232
213
-179
-125
+32
+110
+67
+59
1,662
1,558
1,480
1,453
1,610
1,510
1,435
1,420
1,183
1,103
1,045
1,041
207
190
180
171
220
216
209
207
+141
-104
-46
+40
+34
-21
+94
+67
+123
+191
-78
-27
1 Includes total bills and securities, amounts due from foreign banks, and reserve bank float (see p. 599).
2 Including "other securities" and foreign loans on gold.
+46
+49
+19
+7
+49
-44
-31
+10
bank
reserve
balances
-224
-61
+25
+14
+24
+28
+8
+14
+39
-21
-29
+21
-3
-31
-12
-6
-1
-18
-76
-74
+69
+17
+2
+112
+17
+26
+47
+26
-39
-4
-38
-48
-80
-88
-6
-264
+27
+5
+4
-1
+1
-76
+1
+20
-7
-13
-58
-3
+32
+10
-9
-33
-31
+76
+43
-48
-49
-24
-32
-28
-14
547
FEDERAL RESERVE BULLETIN
AUGUST, 1928
MONETARY GOLD STOCK AND MONEY IN CIRCULATION
MONETARY GOLD STOCK OF THE UNITED STATES
MILLIONS OF DOLLARS
1001
[In millions of dollars]
MILLIONS OF DOLLARS
100
CHANGES IN
MONETARY GOLD STOCK
80
80h
1923
End of month:
January
February..
March.
April.
May
June
July
August
September
October
November
December
Daily average:
January...
February..
March
April
May
June
July..
August
September
October...
November
December.
1924
1925
1926
1927
1928
3,953
3, 963
! 3,970
3,982
4,028
4,050
4,079
4,111
4,136
. . . | 4,167
j 4,207
\ 4,244
4,289
4,323
4,364
4,411
4,455
4,488
4.511
4,521
4,511
4,509
4,527
4,499
4,423
4,369
4,346
4,350
4,361
4,365
4,370
4,383
4,382
4,407
4,397
4,399
4,412
4,423
4,442
4,438
4,433
4,447
4,471
4,473
4,466
4,473
4,477
4.492
4,564
4,586
4,597
4,610
4,608
4,587
4,580
4,588
4,571
4,541
4,451
4,379
4,373
4,362
4,305
4,266
4,160
4,109
H,113
3,945
3,960
3,966
3,975
3,993
4,040
4,061
4,097
4,123
4,155
4,182
4,226
4,266
4,302
4,340
4,383
4,433
4,471
4,503
4,516
4,515
4,506
4, 517
4,507
4,468
4,393
4,347
4,346
4,359
4,364
4,365
4,374
4,386
4,391
4,407
4,397
4,407
4,425
4,444
4,448
4,434
4,438
4,460
4,467
4,471
4,472
4,477
4,481
4,527
4,576
4,595
4,601
4,651
4,606
4,575
4,585
4, 584
4,566
4,490
4,416
4,377
4,373
4,335
4,287
4,207
4,119
14,113
60
60
100
1921
1922 1923 1924- 1925 1926 1927
1928
Based on figures for end of month
UNITED STATES MONEY IN CIRCULATION
[In millions of dollars]
i Preliminary.
1923
1924
1925
1926
4, 614
4,703
4,747
4,759
4,797
4,823
4,787
4,876
4,945
4,929
5,018
5,044
4,777
4,887
4,899
4,853
4,905
4,849
4,756
4,859
4,863
4,942
5,052
5,047
4,802
4,853
4,818
4,789
4,841
4,815
4,795
4,867
4,916
4,969
5,044
5,104
4,841
4,904
4, 860
4,907
4,923
4.885
4; —
4,679
4,672
4,713
4,731
4,764
4,779
4,812
4,833
4,901
4,941
4,953
5,071
4,847
4,832
4,870
4,886
4,866
4,830
4,810
4,800
4, 853
4,891
4,970
5,088
4,863
4,807
4,821
4,809
4.797
4,794
4,798
4,819
4,908
4,945
4,960
5,119
1927
1928
NET IMPORTS OR NET EXPORTS ( - ) OP GOLD
End of month:
January
February. .
March
1926
1928
Month
1923
April
1927
1922
1924
May
June
July.25,708 24,348 44,855 -68,488 16,264 44,465 -13,766
January
August
February... 27,007 6,984 34,606 -46,997 i 21,565 19,895 -11,120
September.
32, 525 5,559 33,505 -17,768! 39,188 10, 757 -94,853
March
October
April.."II" 10,665 8,533 44,027 -12,734, -4,768 11,911 -91,150
November..
5,587 45,332 40,481 -1,9971 -6,408 31, 702 -81,721
May
lay.
December..
11,376 18,885 24,913 - 2 , 287! 15,544 12, 771 1 -79, 931
June.
5,787 i 14,751 8,935 -64, 478 Daily average:
42,343 27,407 18,507
July
January
6,353
2,726:- -17,764
18,136 30,655 15,752
August
February. _
September.. 23,066 26,941 2,076 -2,656! -7,094 -11,465
March
October
22,702! 7,701 -8,642
3,275 28,488 15,57'
April
November.. 14,877 39,010 13,173 -13,904| 9,011 -53,184
May
December.. 23, 730 31,930 -29,401
1,248! 9,808 -67,418
June..
July..
Total.. 238,295 294,073 258,073 -134,367! 97,796
August
SeptemberOctober
i Preliminary.
November.
December..
INCREASE OR DECREASE ( - ) IN GOLD STOCK
THROUGH CHANGES IN GOLD UNDER EARMARK FOR FOREIGN ACCOUNT
1 Preliminary.
KINDS
[In thousands of dollars]
[In thousands of dollars]
Month
1922
1923
1924
January
-1,629;.
February
593
4,329
-2,452
March
April
1,000! -558
1,000
May
2,000
June
July
-1,500 - 2 , 583
August
-7,""
500 -13,229
September
-1,500 -2,000 -17,000
October
November... -200
-500i
December... -2,000
-1,500
Total. -3,700
1925
1926
1927
+700!-42,213 +32,244:-26,297-160,153
July-
4,891
4,854
4, 864
4,882
4,871
4,881
4,916
4,912
4,969
5,001
5,008
5,128
4,903
4,843
4,856
4,880
4,860
4,831
4, 851
4,849
4,917
4,934
4, 936
5,048
4,785
4,709
4,710
4,730
4,722
4,736
14,746
OF MONEY IN CIRCULATION
[In millions of dollars]
1928
19,487 5,500
-810! -6,043
End of month
-1,366! -11,000
3,180
-6,825; -22,988 -1,502 35,800
14,850i
-1,000 45, 740
12, 725!
-95,000 -26,539
5,075! -580
-500 30,053
-3,8011 4,000
184 60, 947 1928—January
8,725| 19,200 - 2 , 501
February
901! -2,400 -9,000
March
2,870!
4 -25,001
April
2,000! -7,498 -40,000
May
1,008 -8,500
-2,000
June
4,677
4,690
4,749
4,748
4,744
4,797
14,701
4,978
5.021
5; 037
5,095
4, 846
4,885
4,862
4,891
4,893
4,851
4,846
4,854
4,948
4,946
4,952
5.003
Total
4,677
4,690
4,749
4,748
4,744
4,797
4,701
Gold
coin
389
386
383
381
380
377
376
U.S.
notes,
Na- silver
cerGold Federal tional
certifi- reserve bank tificates,
cates n6tes notes and all
other
money
1,016
1,004
1,025
1,020
1,013
1,019
977
1,561
1,570
1,588
1,586
1,587
1,626
1,592
617
639
654
652
649
650
637
1Preliminary. For back figures see BULLETIN for March
L,094
,091
1,099
1,109
,115
1,125
1,119
548
FEDERAL RESERVE BULLETIN
AUGUST, 1928
MONEY RATES IN NEW YORK CITY
PER
CENT
5
-
3
-
1923
192*+
1925
1927
1926
1928
FEDERAL RESERVE BANK RATES
OPEN-MARKET RATES
DISCOUNT RATES
RATES IN N E W YORK CITY
[Kates on all classes and maturities of eligible papei]
Rate in
effect on
Aug. 1
Federal reserve bank
Boston
m
New York
Philadelphia
Cleveland .
Richmond*
„
Atlanta
Chicago^
St. Louis
Minneapolis
Kansas City.Dallas
San Francisco....,
«.„ _
„
„
5
5
5
5
5
5
5
5
43/ 2
Date established
Prevailing rate o n Previous
rate
July 19, 1928
July 13, 1928
July 26, 1928
Aug. 1, 1928
July 13, 1928
July 14, 1928
July 11, 1928
July 19, 1928
Apr. 25, 1928
June 7, 1928May 7, 1928
June 2, 1928
4M
4iz
4
4
4
4
1-15 days-—
16-30 d a y s . .
31-45 dayis,.
48-60 d a y s . .
81-90 d a y s . .
£1-120 days.
121-180 days
Date established
rate
4V6! July 26, 1928..
4Hi
do
43^1
4Ki
4Hj
4%
5
do.
do
do
do
do
NOTE.—Rates on prime bankers* acceptances.
-charged for other classes of bills.
Previous
«,..
Higher rates may be
1927
July.....
August
...
September
October
November
December
1928
January
February
March
April
May
June
July
Week e n d i n g July 7
July 14
5 -5X
July 21
July 28
1
1
1
Averageyield
U. S.
Treasury
notes Treasand
ury
Re- certifi- bonds 8
New newal
cates,
3 to 6
months
Call loans *
Time
loans,
90
days 3
4V
43^2
BUYING RATES ON ACCEPTANCES
Maturity
4 to 6 :
months:
414
ty
[Buying rates at trie Federal Reserve Bank of New York]
Rate in
effect on
Aug. 1
Prime Prime
bankMonth or week commercial ers'
j ^veragerate
3 H 4'
4 -4M
3.95
3.66
3.84
3.88
3.60
4.43
4.05
3.68
3.80
3.90
3.60
4.38
2.96
2.70
« 2. 81
3.08
3.04
* 3.17
3.44
3.48
3.45
3.43
3.39
3.34
4.15
4 33
4.24
4.38
3.31
3.33
3.35
3.36
3.30
3.32
3.35
3.40
3.50
4.48
6
5Vs
5.06
5.69
6.21
6.06
6.59
6.55
544
5.44
5. 50
3.23i
4.471 <3.30
3.62
5.08
3.90
5.70|
3.92
6.32{ *3. 97
6.05
4.26
6.
6.40
5. 80
5. 50
4.03
4.15i
4. 46i
4.33;
3. 40
3. 52
3. 53
3.53
Stock exchange call loans; new and renewal rates.
Stock exchange 90-day time loans.
3 issues—d%, 4, and \y± per cent; yields calculated on basis of last
redemption
dates—1956, 1954, and 1952.
4
Change of issues on which yield is computed.
549
FEDERAL RESERVE BULLETIN
A U G U S T , 1928
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
Philadelpbia
Cleveland
Richmond
Atlanta
Chicago St. Louis
Minneapolis
Kansas
San Francisco
City
Prime commercial loans
1927—July
August
September..
October
November..
December..
1928—January....
February
March
April
May...
June
July
4 *-434
4 -434
4 -434
4 -434
4 -434
434
434-434
4^A%
4%-b
5 -6
4
A *-*&
4H-4H
4
434
4 X-4H
4U-4%
434-5
4
5
Loans secured by prime stock-exchange collateral
1928—January
February..
March
April
...
May
June
July.
434-5
434-5
4^-434!
434-5
5
5 -534
5 -534
5 -6
534-53^
5K-534
434-5
434-6
434-5
4%-b
5 -6
5 -6
5 -6
5 -6
5 -6
5 -6
6
5 -6
5 -6
5 -6
5' -C
4^-6
5 -6
534-6
5 -6
4^-6
434-6
5 -6
5 -534
5 -6
534-6
534-6
5 -6
-6
5 -6
-6
-6
5 -6
5 -6
fxi 1
4H~b \
434-534
5 i
534
5H-6 |
4H-5H
MM
4H-5H
43,^-514
434-53^
4%~bl/2
5 -6
434-534
5K-6
5H-6
5H-6
5
5
-6
5
5
5
5
-6
-6
5
5
5
5
5
6
5
-7
-7
-7
-7
-7
-7
-7
5 -6
5 -6
5 -6
5 -6
5*4-6
514-6.
534-6-
5
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
-6
5
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
-6
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
5
5
-6
5
-6
5
5
5
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
-6
5
Loans secured by warehouse receipts
1928—January..
February
March....
April
May
June
July
5
5
5
-534
53^-6
5H6
4312-6
454-6
6
6
4^-6
5M
6
6
6
6
434-6
434-6
6
5
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
-6
4*4-5
4J^-5
4V6-5
43'12-534
4>
4\ i-e, *
4^-5
43>'2-6^
5
4%-bli
5 ~by> 5 - 6 / 2
5 -6
5M-6 "
4*4-5
43^2—6
43 / 2~5^2
434-5
41^-5
43<£_5i/£
4k-53/2
Interbank loans
1928—January..
February
March...
April
May
June
July
434
4
4^1
4?4-5
5
5 -6
434~4^
4^-434
414-5
4^-5
5 -534
434-5
434-5
4H-5
4J4-5
434-5
5 -534
534-6
4
5
-5
4^-534
43^-5
4^-534
5 -534
1%
5
-6
5
5
5 -534
5^-53^
5^-534
5 -6
5 -6
5 -6
434-6
5 -6
5 -6
5 -6
5
5
434-5
5
5
5 -bY2
5 -6
4%-5}4
4^2~5/^
5 -534
5 -bY2
5 -5}4
5 -534
5 -534
5 -51/ 2
5 -t
5 -534
5 -6
5 -6
534-6
53^-6
b
6
6
6
6
6
534-6
5
5
FEDERAL RESERVE BRANCH CITIES
Prime commercial loans
City
Buffalo
Cincinnati
Pittsburgh
Baltimore
Charlotte
Birmingham
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.
May,
1928
414-6
5 -6
5 -6
4%-b}
5 -6
5 -6
5 -6
6
5 -6
4^-6
5 -6
June,
1928
4M-6
534-6
5 -6
43/£-5>
5 -6
5 -6
5 -6
6
534-6
5
-6
2
434-6
5 -6
5 -6
8
5 -6
-7
6
6
5 -6
6
8
4H-6
5 -6
sy
5 -6
434-6
6 -7
6
534-6
Loans secured by prime
stock-exchange collateral
July,
1928
May,
1928
June,
1928
5 -6
5M-6
5> 2 -6
5 -6
5 -6
5 -6
5 -6
5 -6
6
6
5 -8
6
534-6
534-6
5 -6
5 -6
8
534-6
6
5 -6
534-6
5 -6
5H-6
6
6
5 -8
5
5
-6
-6
6
534-6
434-6
534-6
6
8
6
5 -6
5M-6
6 -8
5 -6
5 -6
6 -7
6
6
6
6
5 -6
5 -8
6 -7
6
6
6 -634
6
5 -6
534-6
8
534-6
6
5H-6
6 -8
5 -6
6 -8
6 -7
6
July,
1928
5
6
6
May,
1928
June,
1928
July,
1928
-6
5 -6
534-6
6
6
5 -8
6
534-6
534-6
5H-6
6
8
534-6
6
6
5
6
6
Loans secured by warehouse
receipts
-8
-6
-8
-7
6
6
-7
-7
534-7
6
534-6
534-6
6
434-7
534-6
5 -6
534-6
6- 7
7
5
6
6
6
6
-8
-7
-8
-7
-7
634-7
6
6
5 -7
534-6
53/2-6
6 -7
6
6 -8
7
5
6
6
6
6
-8
-7
-8
-7
-7
-7
6
6
534-6
6 -7
5 -7
534-6
534-6
534-6
5 -7
6
6 -8
5H-6
6
6
6
6
6
-8
5
-8
-7
-7
7
-7
7
Interbank loans
May,
1928
5
5 -6
5 -6
5 -53>
534-6
5 -6
6
5H-6
5 -6
534-6
5
6 -8
6 -634
6
5
6
6
5
-6
-7
6
6
June,
1928
July,
1928
534-6
5 -6
6
534-6
5 -6
534-6
M6
5 -5V2
5 -6
534-6
5 -6
534-6
5 -6
6
5^-6
5 -6
5 -6
534-6
5
6 -8
6 -634
6 *
6
6
5 -534
5 -6
6 -7
6
5 -6:
5
5
5
5
-6
-6
-6
550
FEDERAL RESERVE BULLETIN
AUGUST,
1928
MEMBER BANK CREDIT
ALL MEMBER BANKS
MILLIONS OF DOLLARS
10000
[In millions of dollars]
MILLIONS OF DOLLARS
10000
REPORTING MEMBER BANKS
Reporting member banks in
leading cities
Month
Borrowings at Federal
reserve bank:
1927-July..August
September
October
November
December
1928—January
February.-March
April
May
June
July.-Reserve balances:
1927—July
August.-September
October
November
December
1928—January
February
March
April
May
June
July
Net d e m a n d p l u s
time deposits:
1927—July
August
September
October
November
December
1928—January
February
March
April
May
June
July.-Net demand deposits:
1927—July
August
September
October
November
December
1928—January.
February
March
April.
May
June
July
Time deposits:
1927—July..
August
.September
October
November
December
1928—January
February
March
April
May
June
July
All
member
banks
Total
New
York
City
489
637
826
1,012
1,079
273
256
267
283
276
388
315
338
362
488
644
796
854
59
74
90
75
73
127
94
78
75
145
222
271
274
2,299
2,313
2,323
2,355
2,400
2,410
2,436
2,384
2,351
2,411
2,395
2,364
2, 314
1,696
1,707
1,709
1,725
1,767
1,787
1,805
1,765
1,733
1,789
1,778
1,747
1,730
728
724
726
728
768
769
781
754
738
777
767
749
730
434
413
417
428
421
532
Member
banks
Other leading outside
cities
leading
ChiTotal cago cities
214
182
177
208
203
261
221
260
287
343
422
525
580
12
6
8
10
11
21
23
13
25
35
49
61
80
161
157
150
145
145
143
124
125
127
149
182
216
225
997
999
1,018
1,024
1,011
995
1,012
1,011
998
1,000
167
182
182
186
180
189
193
186
181
182
187
184
190
603
605
614
630
634
623
631
620
618
622
617
617
614
1,864
1,908
1,914
1,929
1,939
1,931
1,964
1,919
1,923
1,944
1,995
1,991
1,931
8000
8000
6000
4000
2000
1923
2000
1924
6,257
6,224
6,228
6,269
6,485
6,604
6,732
6,564
6,547
6,727
6,759
6,589
6,447
13,336
13,392
13,495
13,602
13,732
13,791
13,914
13,833
13,828
13,959
14,001
13, 895
13,779
1926
1927
1928
REPORTING MEMBER BANKS
[Monthly averages of weekly figures. In millions of dollars]
11,405
Month
11,409
11, 567
11,721
11,823
11,832 Total:
11,911
1927—July
11,761
August
"11,800
September..
"11,921
October
"11,933
November...
"11, 894
December...
11,920
1928—January
February
18,555
13, 340 5, 265 8,075 1,260 5,355
March
8,096 1,291 | 5,329
18,493 13,309 5,213
April
8,150 1,301 ! 5,437
18,667
13,374 5,224
May
8,192 1,304 5,558
18,960 13,447 5,255
June
8,304 1,317 5,650
19,180 13,734 5,430
July.
8,334 1,298 5,627 New York City:
19,586 13,904 5,570
8,379 1,326 5,611
19,719 14,012 5,633
1927—July..
8,236 1,272 5,476
19,162 13,707 5,471
August
8,144 1,262 *5,455
*19,106
13,611 5,467
September..
8,242 1,255 *5,486
* 19, 391 13,849 5,607
October
8,228 1,281 *5,472
*19, 315 13,794 5,566
November..
8,109 1,266 *5,453
'19,170
13,488 5,379
December. _
8,015 1,242 5,457
18, 795 13,288 5,273
1928—January
February. __
604 5,051
992
5,261
6,253
12,261
March
617 5,081
6,307 1,010
5,297
12,334
April
613 5,130
6,349 1,004
5,345
12,452
May
625 5,163
6,424 1,015
12,527
5,409
June
622 5,174
6,483 1,055
12,579
5,428
July
633 5,205 Other leading cities:
6,491 1,034
12,677
5,457
638
6,634 1,099
12,928
5,535
1927—July
647 6,285
1,093
6,690
12,990
August
5,597
661 *6, 345
6,764 1,080
>13, 059
September5,684
689 *6, 435
6,837 1,120
"13,259
October
5, 717
714 *6, 461
1,193
6,966
*13,420
November..
5,773
:
725 *6, 441
6,996 1,210
13,443
December..
5,
6,938 1,174
13, 422
1928—January
5, 764
February...
March
•Revised.
Aprii
NOTE.—All figures in this table are monthly averages of weekly figures
May
except those for deposits of (1) all member banks, and (2) banks outside
June
_.
leading cities; these are for a single datei n the month See BULLETIN
July
for December, 1927, p. 828.
30,816 19,593
30,827 19, 616
31,119 19,723
31,487 19,871
31,759 20, 217
32,263 20,395
32,647 20,646
32,152 20,397
32,165 20,375
32,650 20,686
"32, 735 20,760
=32, 613 20,484
32,217 20,226
1925
Total
loans
and investments
Loans
Total
On securities
All
other
[nvestments
20, 687
20, 646
20,951
21,227
21, 462
21, 723
21,917
21, 737
21,922
22,366
22, 568
22,486
22,430
14,621
14,671
14,917
15,112
15,198
15,332
15,395
15,177
15, 323
15,758
15,906
15,816
15,842
6,116
6,125
6,221
6,325
6,410
6,594
6,731
6,527
6,502
6,841
6,991
6,873
8,504
8,545
8,696
8,787
8,787
8,739
8,664
8,650
8,821
8,917
8,915
8,943
8,976
6,066
5,976
6,033
6,115 ,
6,265
6,396
6,522
6,560
6,599
6,602
6,579
6,705
6,783
6,954
7,124
7,277
7,103
7,148
7,383
7,514
7,399
7,400
4,720
4,748
4,911
5,009
5,115
5,228
5,312
5,111
5,143
5,435
5,539
5,380
5,400
2,281
2,275
2,313
2,370
2,465
2,605
2,692
2,509
2,429
2,655
2,765
2,589
2,601
2,439
2,473
2,598
2,640
2,651
2,622
2,619
2,602
2,714
2,780
2,774
2,791
2,799
1,882
1,831
1,794
1,773
1,838
1,897
1,965
1,992
2,005
1,948
1,975
2,019
2,000
14, 085
14,068
14, 246
14, 444
14, 508
14,604
14, 640
14, 634
1 14,774
14,983
15,054
15,087
15,030
9,901
9,923
10,006
10,102
10,083
10,105
10,083
10,066
10,180
10, 323
10,367
10,436
10,442
3,833
3,850
3,908
3,956
3,946
3,988
4,039
4,018
4,073
4,186
4,226
4,284
4,265
6,067
6,072
6,098
6,147
6,136
6,116
6,045
6,048
6,107
6,137
6,141
6,152
6,177
4,184
4,146
4,239
4,342
4,427
4,499
4,557
4,568
4,594
4,660
4,687
4,651
4,588
6,662
6,670
6,588
551
FEDERAL RESERVE BULLETIN
AUGUST, 1928
BANKERS' BALANCES OF REPORTING MEMBER BANKS IN LEADING CITIES
[Monthly averages of weekly figures. In millions of dollars]
Other leading cities
Total
Doe to banks:
1926—June
July
August
September
October
November...
December
1927—January
February
March
April...
May
June
July
August
September
October
November
December
1928—January
February
March
April
May
June
July.
Dae from banks!
1926—June
July
August
September
October
November
December
1927—January
February
March
April
May
June
July
August
September
October
November
December
1928—January
February
March
April
May
June
July.
New
York
City
3,302
3,304
3,243
3,225
3,229
3,308
3,313
3,379
3,475
3,653
3,587
3,748
3,634
3,548
3,463
3,320
3,153
3,184
1,098
1,067
1,040
1,062
1,067
1,052
1,078
1,107
1,090
1,118
1,104
1,117
1,171
1,164
1,160
1,177
1,209
1,324
1,282
1,373
1,331
1,318
1,281
1,247
1,160
1,175
1,177
1,194
1,175
1,166
1,152
1,148
1,129
1,194
1,253
1,275
1,215
1,269
1,189
1,169
1,192
1,160
1,124
1,135
108
105
92
102
111
103
97
100
93
100
107
102
95
92
85
95
111
104
103
112
105
110
123
115
104
102
|
Total
PhilaBoston delphia Pittsburgh
2,212
2,186
2,139
2,108
2,058
2,144
2,154
2,202
2,266
2,330
2,306
2,375
2,303
2,230
2,182
2,073
1,993
2,009
126.4
130.2
119.9
119.5
125.8
128.3
126.5
136.8
135.8
134.6
142.2
137,3
143.1
160.7
152.1
141.4
146.8
156.5
150.7
167.5
148.9
141.3
149.8
141. 2
130.0
136.2
179.4
174.7
167.8
170.0
170.8
165.6
163.1
173 0
173.1
172.5
170.6
169.1
164.2
169.1
167.9
168.6
172.9
173.5
168.0
204.2
192.4
188.2
185.8
174.2
162.9
163.1
1,083
1,094
1,068
1,064
1,057
1,056
1,044
1,099
1,142
1,171
1,113
1,157
1,084
1,059
1,069
1,045
1,020
1,033
44.3
39.5
38.7
40.3
37.0
41.0
37.8
40.2
39.1
41.0
48.2
42.8
45.8
45.9
44.1
43.1
52.6
45.7
42.2
52.3
41.2
36.7
42.8
40.1
37.1
41.9
65.9
58.8
53.4
59.3
53 4
56.8
55.1
55.2
58.0
55.4
54.4
53.4
58.4
50.7
52.3
51.2
52.3
60.9
52.6
56.7
52.1
50 3
57.8
56.6
53.5
53.3
Cleveland
Chi-
San
Min- Kansas FranSt.
Louis neapolis City
cisco
134.5
12a 8
128.8
124.3
121.3
126.0
128.5
127.3
130.8
132.9
131.2
131.3
132.2
118.4
118.5
112.2
101.8
101.1
46.3
49.5
48.9
49.9
48.2
46.6
45.1
48.8
53.6
54.0
55.6
55.1
56.1
60.3
60.4
61.4
61.2
63.1
59.6
62.0
62.9
61.2
60.2
59.1
58.8
59.5
381.5
373.3
371.7
374.6
359.7
349.2
349.1
372.4
364.5
374.1
364.8
374.4
347.9
363.4
363.9
372.0
376.8
368.1
370.0
379.8
375.0
378.6
381.7
357.7
367.4
353.5
81.4
83.9
82.7
80.3
79.3
78.9
79.5
88.5
88.3
87.0
86.1
81.8
81.4
81.9
78.6
78.7
78.9
85.3
86.4
88.5
85.9
77.9
77.5
78.6
74.4
74.0
48.6
46.7
43.1
45.6
50.4
52.7
50.8
53.1
55.5
53.6
50.9
47.5
47.5
46.5
45.5
57.6
63.8
62.3
58.4
57.1
58.1
61.8
58.5
55.1
52.8
50.9
93.7
108.8
110.5
103.7
98.4
97.0
96.7
101.2
95.3
90.3
86.7
82.6
82.7
91.8
91.2
87.9
83.8
83.8
88.1
92.2
92.9
89.4
84.5
82.2
77.0
90.0
35.5
43.2
36.8
38.4
40.9
36.1
39.7
38.3
41.0
37.3
33.3
36.7
34.6
32.7
32.3
31.0
29.3
31.0
30.0
27.1
25.6
25.1
27.6
27.1
24.3
27.5
23.3
22.3
22.9
22.7
24.5
22.9
24.2
26.4
24.9
24.3
22.3
23.6
24.9
23.1
23.9
23.6
22.7
25.1
168.3
157.1
148.9
151.7
155.6
154.6
161.8
154.2
144.5
154.9
151.8
173.9
150.6
148.3
146.8
152.2
152.7
158.1
150.4
147.7
145.9
150.8
161.1
173.7
169.0
162.0
29.3
27.9
26.2
25.6
28.0
29.5
28.4
31.7
29.9
29.9
28.2
27.3
26.5
25.6
27.0
25.6
28.0
30.6
33.1
36.6
32.9
29.9
29.6
28.6
27.2
25.8
21.6
22.6
19.3
20.3
22.3
22.8
22.2
21.5
20.0
19.8
19.8
19.6
19.9
21.7
19.8
27.7
29.3
37.8
47.0
46.9
44.9
43.7
50.5
43.7
44.6
41.9
40.6
38.6
33.5
33.4
36.0
33.1
32.9
36.1
35.1
36.0
35.2
33.1
31.8
32.4
30.1
30.5
34.5
215
20.5
21.0
18.8
19.7
17.4
20.7
19.8
23.8
All
other
94.8
101.2
108.5
109.0
107.2
105.8
107.6
105.9
127.1
104.1
986.7
94.9
958.2
98.4
937.8
99.9
913.8
108.4
936.6
107.4
958.2
105.7 1,001. 8
110.1 1,040.8
127.9 1,076.1
126.3 1,066.9
117.7 1,074.7
114.5 1,040.2
117.1
996.1
114.1
951.4
96.6
916.1
101.3
866. 6
100.8
879.9
51.3
54.0
50.3
53.9
53.0
50.6
54.4
50.8
52.1
54.4
50.8
51.3
53.5
52.3
53.3
58.8
56.8
66.8
70.5
68.8
64.7
61.8
56.2
55.8
58.5
54.6
639.2
632. 5
618.7
601.4
605.9
616.1
603.5
642.6
668.4
687.7
651.9
678.4
635.8
622.2
615.5
584.8
572.4
581.0
BANKERS' ACCEPTANCES AND COMMERCIAL PAPER OUTSTANDING
[In millions of dollars]
Total outstanding
]Bankers'
Commercial paper 3
a sceptances •
End of month
1925
January _.
February
March
April
Mav
June
July
August
September _ _
October
December _>
1
2
1,655
1,628
1,613
1,558
1,456
1,367
1,296
1,277
1,315
1,358
1,356
1,395
1926
1,442
1,422
1,414
1,384
1,353
1,274
1,255
1,221
1,226
1,275
1,292
1,281
1927
1,325
1,362
1,415
1,410
1,357
1,330
1,310
1,373
1,464
1,586
1,632
1,636
1928
1,635
1,623
1,655
1,642
1,582
1,529
1925
835
808
800
757
680
608
569
555
607
674
690
774
1926
788
767
746
721
685
622
600
583
614
682
726
755
1927
774
785
809
811
775
751
741
782
864
975
1,029
1,081
1928
1,058
1,056
1,085
1,071
1,041
1,026
1925
820
820
813
801
776
759
727
722
708
684
666
621
1926
654
655
668
663
668
652
655
638
612
593
566
526
1927
551
577
606
599
582
579
569
591
600
611
603
555
1928
577
567
570
571
541
503
Figures collected and compiled by American Acceptance Council.
Paper maturing within 7 months. Figures reported by 25 dealers to the Federal Reserve Bank of New York; prior to January, 1928,26 dealers
reported.
552
FEDERAL RESERVE BULLETIN
AUGUST,
1928
BROKERS' LOANS
BROKERS' BORROWINGS ON COLLATERAL, IN NEW YORK CITY, REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings. In millions of dollars]
On demand and on time
From
New York
banks and
trust companies
Date
Total
2,926
2,998
3,142
3,219
3,111
3,129
3.293
3,139
3,256
3,290
3,341
3,458
3,569
3,642
3,674
3,915
3,946
4,092
4,433
4,420
4,323
4,640
4.908
5,274
4,89-S
4,837
1626—June 30.
July 3 1 .
Aug. 31.
Sept. 30
Oct. 30.
Nov. 30.
Dec. 311927—Jan. 3 1 .
F e b . 28.
M a r . 31
Apr. 30.
M a y 31.
June 30.
July 30,
Aug. 31.
Sept. 30
Oct. 31Nov. 30.
Dec. 3 1 .
1928—Jan. 31Feb. 29.
M a r . 31.
Apr. 30_
M a y 31.
J u n e 30.
July 3 1 .
On demand
From
private
banks,
brokers,
foreign
banking
agencies,
etc.
2,509
2,583
2,697
2,745
2,667
2,636
2,804
2,671
2,758
2,791
2,865
2.967
3,065
3,145
3,170
3,340
3,363
3,519
3,812
3,805
3,737
3,947
4,246
4,568
4,169
4,150
417
415
444
474
444
493
489
469
499
500
476
490
504
497
504
575
583
573
621
615
585
693
662
707
730
687
From
New York
banks and
trust companies
Total
2,225
2,283
2,364
2.419
2,289
2,330
2, 542
2,328
2,475
2,505
2,541
2,674
2,757
2,765
2,746
3,018
3,023
3,134
3,481 I
3,393 I
3,294 !
3,580
3. 739 |
4,070
3,742
3,768
On time
From
private
banks,
brokers,
foreign
banking
agencies,
etc.
1,852
1,918
1,984
2,021
1,924
1,932
2,128
1,964
2,085
2,112
2,146
2.254
2,316
2,343
2,330
2,539
2, 549
2,675
2,963
2,882
2,807
3,016
3,201
3, 455
3,122
3,183
Total
374
365
379
398
365
397
414
365
391
393
395
420
441
421
415
479
475
459
518
511
488
564
537
616
619
585
From
private
banks,
brokers,
foreign
banking
agencies,
etc.
From
New York
banks and
trust companies
43 4
50.2
65.0
75.8
78.5
95.9
75.6
103.9
108.4
106.6
81.4
70.5
63.5
75.5
88.8
95.8
108.5
113.4
103.4
104.2
97.7
657
665
713
724
743
704
676
707
673
679
719
713
749
802
840
801
814
844
849
923
931
931
1,045
1,113
1,046
967
701
715
778
800
822
800
751
810
781
785
800
784
812
877
928
897
923
958
952
1,027
1,028
1,060
1,169
1,204
1,157
1,070
128.6
124.2
90.8
110.3
102.5
LOANS TO BROKERS AND DEALERS IN SECURITIES MADE BY REPORTING M E M B E R BANKS IN NEW YORK CITY
[In millions of dollars. Monthly data are averages of weekly figures]
Month or date
1926—June
July..
August
September...
October
November
December
1927—January
February
March
April
May
June
July.
August
September...
October
November
December
1928—January
February
March
April
May
June
July
July
July
July
July
f
3
11.
18
25
Revised.
For own
For account of
out-oftown
banks
2,517
2,607
2,720
2,783
2,698
2,615
2,698
2,778
2,733
2,816
2,866
2,933
3,115
3,096
3,181
3,261
3,392
3,441
3,621
3,802
3,784
3,761
4,062
4,414
*4, 360
4,232
973
960
948
974
866
819
887
933
841
901
929
936
1,077
1,032
1,048
1,061
1,103
1,175
1,282
1,342
1,167
1,064
1,193
1,272
1,048
929
944
1,000
1,073
1,128
1,106
1,048
1,045
1,104
1,127
1,091
1,131
1,191
1,180
1,188
1,225
1,285
1,326
1,276
1,354
1,470
1,500
1,450
1,617
1,628
1,571
1,559
600
646
699
682
726
748
766
741
765
824
806
805
858
877
908
916
962
990
985
990
1,117
1,247
1, 252
1,514
*1,741
1,744
4,307
4,243
4,194
4,184
1,132
942
820
824
1,512
1,569
1,602
1,552
1,664
1,732
1,772
1,809
Total
account
Time loans
Demand loans
Demand and time loans
For account of
others
For account of For acout-of- count of
others
town
banks
For own
account
For account of
out-oftown
banks
For account of
others
1,838
1,935
2,027
2,074
1,975
1,911
2,012
2,094
2,069
2,154
2,190
2,219
2,385
2,336
2,36G
2,463
2,603
2,632
2,782
2,938
2,871
2,861
3,122
3,368
*3.309
3,207
613
605
610
656
549
520
596
639
548
615
642
639
772
705
726
777
820
879
948
992
820
741
843
885
687
614
689
746
793
807
773
728
737
799
843
805
830
861
851
857
849
891
942
902
981
1,083
1,084
1,036
1,204
1,198
1.147
1,155
536
584
624
611
653
663
679
656
678
734
718
719
762
774
791
795
841
851
853
863
967
1,084
1,075
1,285
* 1,475
1,438
678
671
693
710
723
704
686
685
664
661
677
714
730
760
815
799
789
809
839
863
913
900
940
1,046
1,051
1,025
359
355
337
318
317
298
291
295
293
285
287
297
306
327
322
284
283
296
334
350
347
323
350
386
361
315
255
254
280
321
333
320
308
305
284
286
301
330
328
330
376
394
385
374
373
387
416
414
413
431
424
404
63.8
62.1
75.4
71.0
72.8
85.4
87.0
84.8
87.1
89.9
88.4
86.4
95.8
102.9
116.4
120.fi
121.4
138.7
132.3
126.8
160.0
162.9
177.3
229.1
265.9
305.9
3,261
3,201
3,182
3,185
800
617
512
528
1,088
1,152
1,211
1,168
1.373
1,431
1,459
1,489
1,025
1,046
1,042
999
332
324
309
295
424
417
391
384
291.1
300.2
312.2
320.1
Total
Total
For own
account
553
FEDERAL RESERVE BULLETIN
AUGUST, 1928
COMMODITY PRICES, SECURITY PRICES, AND SECURITY ISSUES
WHOLESALE PRICES, BY COMMODITY GROUPS
[1926 = 100]
All commodities
Month
1927—May
June
July
_.
August
September...
October
November
December
1928—January
February
March
April
May
June
1
Farm
products
Foods
96.3
96.5
97.6
102. 2
105.9
105.0
104,3
104. 4
106.1
104,5
103. 5
107.6
109. 8
10G.7
93.7
93.8
94.1
95.2
98.5
97.0 1
96.7 !
96.8
96.3
96.4
96.0
97.4
98.fi
97. 6
94.4
94.4
93.9
94.2
96.5
100. 0
101. 5
100,7
98.5
98.7
98.0
99.5
101.2
100.3
93.9
94.3
94.3
96.2
98.5
98.4
97.5
97.2
96.7 |
96.6 |
96. 5
96.5 |
96. 6 I
96.3
103.7
107.3
111.7
111.7
112.5
113.0
114.3
116.9
121.0
124.1
124.0 j
126.7
126.3
123.7
83.9
84.2
84.2
84.1
84.2
83.8
82.9
82.5
80.8
81.2
80.8
80.8
81.8
82.1
95.1
94.6
93.7
92.9
92.1
91.6
90.2
90.4
90.8
91.0
91.0
92.5
93.5
93.9
98.6
98.2
97.7
98.0
67.6
97.1
97.0
98.4
98.1
98.3
98.4
98.4
98.6
98.7
97.9 i
97.8 !
97.0 |
93.2
93.1
93.2
93.3
94.0
94.8
94.6
94.8
93.7
94.2
94.0
94.7
95. 6
95.2
New index of Bureau of Labor Statistics.
SECURITY PRICES
[August, 1909-July, 1914=100]
Month
30 commodities
Grains
Common stocks i
Fruit
Dairy Cotton
and
and
Unand
Meat poultry
vege- animals
classitables
prod- cottonfied
seed
ucts
1927
June
July .August
September.
October
November..
December..
126
130
130
132
140
139
137
137
127
140
139
138
134
128
120
123
158
201
195
172
145
138
136
141
137
129
131
136
142
145
141
138
130
124
125
127
137
146
153
158
113
119
124
136
179
169
162
153
79
82
81
81
87
83
86
90
1928
January
February. _.
March
April
May
June
July
137
135
137
140
148
145
145
125
128
136
144
160
152
142
144
153
174
179
181
168
156
138
139
139
142
151
150
157
154
144
137
134
134
132
134
152
141
147
154
166
162
170
91
90
89
85
86
87
88
May
Month or week
1927—July
August
September.
October
November.
December..
1928—January
February..
March
April
May
June
_.
July
Week euding—
July 7
July 14.
July 21
July 28
Index numbers of Department of Agriculture.
! industrial
railroad3
stocks
I stocks 2
179.0
189.0
197. 0
197. 5
202.1
208. 7
210. 4
207. 6
221.0
236. 2
243.9
231.5
232. 0
153. 9
156.0
157.1
158.9
158.6
160.6 !
158.2 i
153.7
159.0 !
164.8
168.1 !
159.8
157.1 I
171.7
179.3
191.1
186.2
189.4
194.6
195. 2
191.9
202.9
215. 3
221.8
210.4
210.1
99.25
99.35
99.31
99 20
99 18
98 79
97.38
96.56
235. 2 I
228.8 I
228.7
235.4
159.8 !
155.9 i
155.3 i
157.5 i
213.1
207.5
207.3
212.6
97.25
96.84
96.21
95.95
Class of issue
Total _
Corporate issues
Bonds and n o t e s Long-term...
Short-term
Stocks
Farm-loan issues
Municipal issues
Total new and
refunding
New
Refunding
New
643.2
111.7
3, 210.0
489.5
108.6
146.1
6.6
336.8
27.1
126.6
37.1
.3
71.2
754.9
June,
1928
January-June
1928
3.1
Refunding
1927
New
Refunding
Class of issue
4, 498. 4
January-June
1928
1927
Gov- CorGovern- po- °eZ' Ceernment P ° r a t e ment
ment
Total .
1, 308. 2 3, 404. 4 1, 093. 8 New issues
Europe
2, 416. 5 1, 292.8 2, 538. 6 983.6
Canada and Newfoundland
1,196. 8
923.8 1, 657. 6 851.4
Latin America
90.4
105. 5
34.3
27.0
United States insular
1,129. 3
775.4
334.7
105.2
possessions.
37.1
49.8
92 8
Miscellaneous.
756.4
816.1
15.4
17.3 Refunding issues.
4, 518. 2
97.03
97.76
98.00
98.62
FOREIGN CAPITAL ISSUES
[In millions of dollars]
[In millions of dollars]
June,
1928
Bonds:
Average
Total 228 price of
stocks 40 issues
197
1
Index numbers of Standard Statistics Co.
* Average of 1917-1921 prices=100.
« Average of yearly high and low prices, 1913-1922=100.
DOMESTIC CAPITAL ISSUES
91.3
90.2
89.3
89.9
89.2
88.3
88.3
89.0
89.0
87.3
86.8
84.9
8a. 1
82.2
97.8 i
98.0 i
98.0 !
98.6 !
98.6 ;
98.5 i
98.9 i
98.8 •
98.6 !
98.4 i
98.3
95.4
95.8
95.3
95.4
96.4
97.1
97.4
97.2
96.3
95.8
95.6
95.8
95.3
94.9
l
PRICES O F FARM PRODUCTS AT THE FARM »
1
Nonagricultural
commodities
Metals
Hides
HouseBuilding ChemiTextile Fuel and
and
and
and furnish- Miscelleather products lighting
metal materials cals
drugs ing goods laneous
products
j products
Total,Government and
corporate
1.8 165.1 614.9
69.1 116.1
41.0 33.1
506.1
266.0
20.0
12.0
20.8
150.8
20.2
12.1
56.5
108.7
246.0
408.3
Corpo278.1
312.4 454. 3 241.8
77.0
164. 5 159.2
60.2
85.5
39.1
17.8 130.1 61.1
69.9
95.9
1, 023.1
4.7
74.8
61.5
793.9
4.6
60.0
36.2
554
FEDERAL RESERVE BULLETIN
AUGUST,
1928
PRODUCTION, EMPLOYMENT, AND TRADE
[Index numbers of the Federal Reserve Board]
I
Indus- ProducFactory
tion of Productrial
tion of Factory
employproduc- manuminerfacment
rolls
als 1
Year and month tion» tures »
Mo. a v. 1923-1925=100
Building contracts
Wholesale distribution
awarded *
Freight
car
loadings 1 UnadUnadAdAdjusted justed
justed justed
1924
January
February
April
May
July
September
October
November
December
1925
January
February
March
April
May.
June
«
July
August
....
October
November . . . . .
December
1926
January
February
March
April
May
July
August
September
October
November - . .
December
1927
January
February .
March
April
May
June
July
August
September
October _
November
December . . . . .
1928
January
February
March,._
April
May
June
.
-
84
87
67
77
89
Adjusted
Unadjusted
Adjusted
.x2aS3JS_
78
94
84
91
79
86
100
98
103
107
103
110
114
87
89
101
98
101
98
95
101
101
99
96
95
91
84
85
90
100
103
94
99
103
99
98
97
92
92
95
99
99
99
100
94
98
102
96
87
82
86
105
118
118
97
88
103
102
94
99
95
91
93
95
101
99
99
101
87
82
91
104
100
94
72
74
93
111
111
168
99
101
99
99
97
100
96
95
100
95
101
100
90
97
105
107
104
97
93
96
105
111
113
94
101
102
102
103
102
100
100
100
101
101
100
100
75
76
120
138
124
137
133
149
138
129
116
129
101
104
107
112
115
125
128
135
135
129
127
138
103
103
100
104
105
101
101
105
102
100
104
105
93
97
109
98
90
91
94
113
117
124
99
89
102
101
100
100
99
100
102
101
100
105
100
98
86
80
95
106
100
99
75
78
95
129
114
178
98
103
103
102
101
100
100
101
102
110
104
106
90
96
104
106
102
97
94
98
106
111
115
97
102
101
101
101
100
100
101
102
102
101
102
103
107
112
113
110
109
109
104
108
108
112
109
108
111
106
146
139
134
133
126
148
137
126
119
131
146
145
128
120
125
125
124
131
130
126
130
136
102
104
105
107
108
109
108
108
109
109
108
106
94
97
107
94
91
91
91
107
117
111
97
84
102
101
100
97
99
99
97
97
100
94
98
95
89
81
102
103
107
101
78
83
101
124
121
184
106
104
101
103
107
102
104
107
109
110
106
110
93
98
107
107
103
98
94
97
107
114
117
96
105
103
104
103
101
101
101
101
103
103
104
102
92
94
94
93
93
92
91
91
92
92
90
89
102
109
110
108
108
106
101
104
104
105
101
102
94
96
151
147
135
154
130
135
127
137
114
116
123
131
131
128
126
144
128
119
121
137
125
121
105
109
109
108
107
104
101
104
104
101
96
94
86
91
103
90
88
87
88
111
112
106
93
82
94
95
96
93
95
93
95
100
96
91
95
93
101
75
89
100
119
122
186
106
107
105
105
103
104
103
111
109
105 !
107
111
92
97
106
106
103
97
94
97
107
113
116
96
103
102
103
102
101
100
101
101
103
103
103
102
88
89
90
89
89
90
98
104
105
103
104
104
104
113
144
157
163
158
137
155
125
136
152
148
100
102
103
104
106
102
87
93
99
86
89
84
94
97
93
89
96
89
88
85
103
102
107
103
10*
ins
105
103
104
105
91
S6
103
104
101
95
103
101
100
100
99
87
101
94
105
108
106
70
74
105
96
99
107
107
100
103
82
90
104
95
95
96
92
100
124
84
89
11J
104
L07
109
105
64
63
57
81
84
95
122
129
128
100
102
100
95
89
85
83
89
94
94
97
101
99
102
101
95
88
84
82
88
93
95
97
101
102
104
99
92
93
92
92
92
97
89
96
100
100
101
101
99
96
93
89
89
91
93
92
94
108
114
113
111
105
100
92
96
99
103
101
108
76
78
109
121
108
101
87
89
87
103
95
83
105
105
104
103
103
102
103
103
102
105
106
1,08
106
106
106
103
103
102
103
102
104
107
109
110
104
100
96
98
104
101
104
108
90
91
94
93
94
96
96
96
95
94
93
94
95
97
97
97
103
109
110
107
107
105
102
105
104
111
112
112
106
107
107
107
106
107
107
111
112
111
108
105
109
108
108
107
107
107
107
111
112
110
106
103
92
96
106
106
104
106
107
109
111
115
118
119
96
97
97
96
96
95
93
94
96
96
95
94
107
109
111
108
111
108
106
107
105
103
99
99
105
107
110
109
111
108
106
107
105
102
98
99
116
118
118
104
108
104
100
106
105
105
101
103
106
109
109
109
109
108
106
110
110
110
110
99
103
103
105
103
105
99
83
87
67
85
101
95
104
108
106
Unadjusted
Departmentstore stocksi
Monthly average 1923-1925* 100
M o . av. ] 919*100
ANNUAL INDEX
1919
1920
1921
1922
1923
1924
1925
1926
1927
MONTHLY INDEX
Departmentstore salesi
79
105
89
88
98
101
101 1
103 i
102
87
88
98
99
103
106
106
S9
83
100
111
102
1
98
i The indexes of production and car loadings are adjusted to allow for seasonal variation; the indexes of building contracts wholesale distribution, and department-store sales and stocks are shown hotb with and without seasonal adjustments
555
FEDERAL RESERVE BULLETIN
AUGUST, 1928
INDUSTRIAL PRODUCTION
INDEX OF INDUSTRIAL P R O D U C T I O N
PER CENT
PRODUCTION OF
MANUFACTURES AND MINERALS
[Index numbers, adjusted for seasonal variations.
1923-1925 average-100]
1922
1923
January
February
March
April
May
June
July
August
September.-..
October
November
December
76
80
77
81
86
86
84
88
94
07
100
100
100
103
107
107
105
103
102
100
99
97
96
100
102
100
95
89
85
Annual index.
85
101
Month
1924 | 1925
1926
1927
94
94
97
101
105
105
104
103
103
102
103
103
102
105
106
108
106
107
107
107
106
107
107
111
112
111
108
105
107
109
111
108
111
108
106
107
105
103
99
99
95
104
108
106
PER CENT
\\hO
120
120
100
100
80
80
1928
106
109
109
109
109
108
60
1925
1924-
1927
1926
1928
INDEX O F PRODUCTION O F MANUFACTURES. BY GROUPS
i
Year and month
Total
1927
March
April
May
June
July
August
September - . October
November
December
January
February
March
April
May
June
1928
..
Iron
and
steel
Textiles
Food
products
Cement, NonPaper
Auto- Leather
and
brick,
ferrous
Lumber mobiles
and
shoes
and glass metals
printing
Petroleum
refining
Rubber Tobacco
manutires
factures
110
109
111
108
106
107
105
102
98
99
115
116
116
105
103
102
98
94
88
93
114
112
116
121
118
119
118
113
112
105
99
98
103
102
96
97
93
94
94
95
113
114
112
112
114
112
113
111
110
112
91
88
95
93
95
95
99
94
96
93
106
106
103
95
84
89
81
70
47
53
98
98
100
105
113
112
113
108
97
96
119
109
108
109
111
115
113
108
107
105
10S
112
111
108
106
108
107
106
106
111
135
134
132
134
136
136
139
142
140
137
123
131
127
131
124
119
113
116
117
110
116
122
122
116
109
119
123
121
122
112
106
110
110
110
110
109
110
115
106
107
106
101
107
105
102
110
105
97
96
93
116
117
118
119
121
117
91
92
94
97
91
92
92
103
114
110
108
119
99
102
111
115
109
108
101
109
135
139
101
96
107
110
141
147
*95
104
113
112
111
150
153
124
139
135
131
134
148
118
118
119
119
120
114
125
117
112
115
INDEX OF P R O D U C T I O N O F MINERALS, BY PRODUCTS
Year and month
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May
June
Total
Bituminous coal
Anthracite
coal
Crude petroleum
108
117
102
75
107
100
107
106
92
123
119
120
120
124
123
124
124
124
124
79
109
114
74
121
119
121
119
119
117
1927
118
104
108
104
100
106
105
105
101
103
131
87
94
91
87
92
92
90
85
87
1928
103
103
105
103
105
99
Iron-ore |
shipments j
120
101
99
99
87
95
49
80
107
Copper
Silver
100
106
107
105
101
101
104
102
106
105
102
104
102
103
110
110
•Revised.
NOTB.—These tables contain, for certain months, index numbers of industrial production, together with group indexes for important com*
ponents. 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 month 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 BULLETIN for February and March, 1927.
556
FEDERAL RESERVE BULLETIN
AUGUST, 1928
PRODUCTION OF MANUFACTURES, BY INDIVIDUAL LINES
June,
1928
Iron and steel:
Pig iron
Steel ingots
Textiles:
Cotton consumption
WoolConsumption
Machinery activity 1
...
Carpet and rug loom activity l .
SilkDeliveries
Loom activity l .
__.
Food products:
Slaughtering and meat packingHogs
Cattle
Calves
_
Sheep
Flour
Sugar meltings
Paper and printing:
Wood pulp and paper—
Newsprint
Book paper
Fine paper
Wrapping paper. _ _ _
Paper board
Wood pulp, mechanical
Wood pulp, chemical . . .
Paper boxes
Newsprint consumption
Lumber, cut
Flooring
Transportation equipment:
Automobiles. . . .
Locomotives
Shipbuilding
May,
1928
June,
1928
June,
1927
106
113
106
118
107
108
97
79
85
99
82
89
151
123
134
115
95
93
91
113
94
87
97
94
100
105
107
78
93
120
113
106
123
90
110
148
126
95
126
117
115
136
85
113
* 131
127
90
108
89
112
Leather and products:
Leather, tanning—
Sole leather l .
Upper leather—
136
Cattle
Calf and kip
104
Goat and kid
84
Boots and shoes
87
Stone, clay, and glass:
Cement..
133
BrickFace brick..
107
Plate glass
Nonferrous metals:
99
Copper
105
Lead.
Zinc
9S
103
Tin !
98
Chemicals and allied products:
108
Petroleum refining—
Gasoline *_
Kerosene
98 !
Fuel oil i
109
Lubricatin g oil *
112
Coke production—•
105
By-products
. . .
113
Beehive
88
liubber tires and tubes:
109
Tires, pneumatic
. . .
..
Inner tubes
125
Tobacco products:
Cicars
92
Cigarettes
109
Manufactured tobacco and snuff
119
108
28
56
95
47
175
106
105
i Without seasonal adjustment.
May,
1928
June,
1927
104
101
96
85
91
140
104
70
94
117
95
94
95
127
107
122
119
120
104
107
97
116
113
103
120
99
117
106
115
100
113
106
106
113
114
101
172
108
134
130
167
111
130
129
149
96
119
111
134
34
*133
38
122
66
151
121
136
117
134
108
°4
98
132
98
142
92
* Revised.
FACTORY EMPLOYMENT AND PAY ROLLS
[Index numbers without se asonal adjustment. Monthly average, 1919=100]
Metals and
products
Month
Employment:
May
Total
Textiles and products
Lumber
and
products
Railroad
vehicles
Paper
and
Automobiles printing
Foods Leather Stone, To- Chemicals
and
clay,
bacco
and
and
prod- prodand
prod- products
glass
ucts
ucts
ucts
Group
Iron
and
steel
92.6
88.7
87.8
85.7
85.4
85.1
84.4
82.8
81.8
80.9
83.1
84.5
84.8
85.5
85.5
88.4
87.5
85.4
85.0
84.7
84.0
82.3
81.4
80.7
82.7
84.0
84.2
84.9
85.0
93.6
93.1
91.0
92.3
93.9
94.5
94.2
93.6
92.9
93.8
92.9
90.0
87.8
87.4
96.5
96.3
94.8
95.6
96.5
97.0
97.2
96.4
95.1
95.1
93.6
91.0
88.9
88.6
89.9
88.9
86.2
88.2
90.5
91.4
90.3
89.9
89.9
92.3
92.0
88.7
86.3
85.9
91.6
91.8
91.2
92.4
93.0
92.4
91.2
88.0
84.5
84.7
85.7
86.8
86.7
87.4
78.5
78.9
78.2
76.7
76.1
75.5
73.4
72.0
70.5
70.4
71.3
72.0
72.5
72.7
123.7
117.2
109.9
114.3
111.0
109.9
100.7
105.0
114.0
124.8
130.2
133.6
141.2
141.1
107.3
106.9
106.3
106.9
107.8
108.6
109.7
110.1
108.6
108.1
107.0
105.9
106.3
106.1
83.7
87.6
86.7
85.8
88.7
89.2
87.7
86.7
83.8
84.8
84.4
82.8
83.0
84.2
82.6
82.2
85.3
88.2
88.5
86.5
81.5
79.8
83.2
84.6
84.1
79.8
77.7
77.6
124.0
124.2
119. 5
120.2
119.3
116.2
114.7
109.0
101.6
101.9
105.7
109.1
113.8
114.9
78.2
80.3
80.3
74.4
83.5
85.3
84.6
80.3
73.8
77.1
77.9
76.0
76.8
77.5
75.3
75.9
75.0
75.3
76.9
77.8
78.5
77.2
75,1
77.2
76.9
76.7
74.5
75.1
108.1
105.8
101.1
104.4
103.8
105.1
101.0
101.8
97.7
103.5
104.9
102.7
103.8
103.5
96.8
95.2
87.4
90.4
87.9
88.9
86.0
87.6
84.8
92.1
94.1
93.1
95.3
94.5
96.2
94.7
86.7
89.8
87.3
88.2
85.2
86.6
84.1
91.2
93.3
92.2
94.3
93.7
103.3
102.8
99.1
102.7
104.8
106.9
101.6
103.6
100.2
103.5
101.9
94.7
93.4
93.5
107.6
107.0
102.8
105.8
107.3
108.9
104.5
106.1
100.3
102.4
100.3
95.5
95.3
94.2
98.1
97.6
94.6
98.9
101.9
104.3
98.1
100.6
100.0
104.8
103.9
93.8
91.1
9? 6
105.3
104.8
101.1
105.8
107.3
109.1
106.3
102.5
91.2
95.4
97.8
98.0
98.6
99.4
89.8
87.9
83.0
85.4
81.3
83.6
82.2
80.2
75.1
78.2
80.4
81.2
80.7
81.3
158.7
131.4
125.2
136.3
128.7
133.6
117.6
127.8
127.2
160.0
168.9
171.8
178.8
169.5
150.3
148.2
145.4
147.2
148.9
151.0
149.0
152.7
148.8
147.5
147.7
146.7
146.7
146.7
100.7
104.6
103.1
101.7
104.4
104.8
103.0
102.2
99.0
100.8
100.4
96.5
99.0
101.3
84.4
85.1
90.2
97.5
95.2
88.5
76.8
77.8
83.5
88.9
87.5
75.3
72.7
76.3
157.6
154.5
143.7
149.0
145.7
145.0
140.8
133.6
122.1
123.8
128.7
134.6
140.9
141.3
83.6
86.7
85.7
79.7
90.5
91.3
90.5
87.0
78.1
78.1
79.4
73.8
77.3
82.5
107.0
109.1
103.6
105.2
105.7
110.0
109.7
112.4
106.3
109.3
110.2
108.8
106.6
106.1
June .
. 92.4
90.7
July
91.2
August
September 91.9
91.7
October
November- 90.1
December. 89.0
1928—January... 87.9
February.. 89.4
89.9
March
89.3
April
89.4
May
89.6
June.-
Group Fabrics Products
Pay rolls:
May
June.
July. .
August
SeptemberOctober. __
November.
December.
1928—January...
FebruaryMarch
April
May
._
June...^...
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_o£
BULLETIN for September, 1921, for certain revisions.
AUGUST,
557
FEDERAL RESERVE BULLETIN
1928
BUILDING
BUILDING CONTRACTS AWARDED
[Index numbers based on value of contracts.
1923-1925=100]
M o n t h l y average,
Without seasonal
With seasonal
adjustment
adjustment
Month
January
February
March
April
May
June
July
August
SeptemberOctober
November.
December.....
1925
1926
1927
1928
1925
1926
1927
75
76
120
138
124
137
133
149
138
129
116
129
Ill
106
146
139
134
133
126
148
137
120
119
131
94
96
151
147
135
154
130
135
127
137
114
116
104
113
144
157
163
•158
142
101
104
107
112
115
125
128
135
135
129
127
138
146
145
128
120
125
125
124
131
130
126
130
136
123
131
131
128
126
144
128
119
121
137
125
121
1928
137
155
125
136
152
*14S
140
too
SO
BUILDING CONTRACTS AWARDED
1924-
With SeasonalAdjustment
W/t/wut Adjustment
I
1925
1926
1927
1928
*Revised.
BUILDING CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS
[Value of contracts in thousands of dollars]
Federal Reserve District
Month
Total
New
Boston
York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago St. Louis
Minneapolis
Kansas
City
Dallas
1927
June
July
August
September. _.
October
November...
December....
632,478
534,390
552, 488
521, 611
562,816
466,393
477,364
33,569
29, 658
37, 461
32,863
27, 486
40,070
29, 407
177, 235
158, 435
144,049
107,448
169, 299
132,481
130, 346
54, 644
33,982
53,519
40,174
34,211
30,138
28, 634
64,011
57, 465
62, 447
65, 235
49, 315
39,136
35, 275
35,502
34,241
31,813
57, 464
29, 553
24,811
37,285
31,188
28,093
28,176
30,917
26, 023
39,151
24,816
140,608
107,480
109, 646
106,296
141, 523
84,182
126, 841
44,171
32,205
34,134
32, 573
41, 405
27,793
33,352
11,712
13,111
12,371
8,038
9,305
7,138
4, 473
17, 598
17, 203
19, 061
22, 253
19,317
16, 516
12, 316
22,240
22, 517
19,811
18,350
15, 379
24,977
14, 619
427,169
465,331
592, 567
643,137
668,097
650, 466
33,410
21,826
39, 694
42, 957
56, 097
38, 519
133, 271
140,227
155,154
154,369
188, 687
178, 448
35, 765
34,980
46,317
60, 982
49, 743
48, 698
26, 403
37,841
66, 821
70,184
63, 813
69, 605
27, 607
22,301
42, 061
66, 591
39, 421
46, 227
27, 696
23,376
29, 826
24, 371
32, 497
28, 600
77, 806
108,789
108, 093
128, 643
139,784
128,607
29.187
35,294
40. 626
43,818
36, 360
44, 225
4,428
3,968
8,339
10, 249
13,178
11, 042
13,318
13,793
33,174
20, 658
20,199
28,070
18, 278
22,936
22,463
20,315
28,318
28,426
1928
January
February
March
April
May
June..
_.
BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING
BUILDING
PERMITS
[Value of contracts in thousands of dollars]
Resi- i Indusdential j trial
Month
Educational
88,122
83,010
76,915
59,617
79, 720
43, 521
86, 933
151, 399
143,916
119, 741
126, 230
108, 210
76,089
92,657
42,122
36,434
41,035
29,244
30,170
31,741
23,248
77,142
53,792
64,302
55,097
50, 442
47,189
37, 256
68,852
57,695
73, 075
82, 758
91, 200
93,942
72, 039
59,980
110, 338
117,401
150,223
130,852
23,369
18,651
33, 881
32,885
47, 851
46,135
31,750
55,139
51, 277
48, 413
52,851
57, 917
All
other
1927
June.
July
August
September.
.
..
October.
November
December
1928
January
February
March.
April..
May..
June..
239,814 33,879
186,935 30,303
209, 456 41,039
. 202,877 48, 546
! 243,562 50, 712
...
214,963 52,890
207,281 j 29,989
I
j 193,189
I 238,985
275,192
276, 586
288,826
258,084
37,970
34,881
48, 804
85, 093
37,146
63, 537
RESERVE
[Value of permits in thousands of dollars]
Public
works
and
public
utilities
Commercial
I S S U E D , BY F E D E R A L
DISTRICTS
Federal reserve district
Number
of cities
June,
1928
May,
1928
June,
1927
United States
168
302,087
306, 441
293,476
Boston,
New York
Philadelphia..
Cleveland
14
22
14
12
10,159
116, 637
21,160
25, 760
9,519
107, 723
18,995
22, 427
12, 574
101,388
20, 816
18, 964
Richmond
Atlanta
Chicago
St. Louis
15
15
19
5
11,479
7,370
49, 454
8,411
12,054
13, 589
66, 031
8,327
13, 953
7,762
62, 879
6,916
Minneapolis _.
Kansas C i t y . .
Dallas
San Francisco.
9
14
9
20
4,012
9,435
6, 357
31, 852
4,844
9,565
8, 753
24, 614
4,938
8, 866
6, 697
27, 723
NOTE.—Figures for building contracts awarded are for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge CorporationAdjusted indexes by months from 1910 to date given in the BULLETIN for August, 1927, p. 563.
558
FEDERAL RESERVE BULLETIN
AUGUST, 1928
TRADE AND DISTRIBUTION
FREIGHT-CAR LOADINGS. BY LINES
[Index numbers, adjusted for seasonal variations. 1923-1925=100]
Month
1927—June..
July...
August.
September
October
November
December
1928—January
February
March
April
May
June
Total
Grain
and
grain
products
Livestock
104
101
104
104
101
96
94
100
102
103
104
106
102
105
97
98
108
106
94
94
102
108
116
109
102
89
93
89
91
87
94
87
82
91
101
96
89
88
86
WHOLESALE DISTRIBUTION
Merchandise
Forest 1. c. 1.
prodand
ucts miscellaneous
Coal
108
107
109
108
106
102
99
106
106
108
108
110
107
91
94
95
95
93
87
82
90
93
89
85
90
88
96
89
102
102
94
91
93
94
96
96
99
101
90
With SeasonalAdjustment
Without Adjustment
1926
1925
1924-
1928
1927
For description and early figures see p. 562 of August, 1927, BULLETIN.
INDEX OF WHOLESALE DISTRIBUTION-NINE LINES OF TRADE
[1923-1925 average-100]
Sales with seasonal adjustment
Sales without seasonal adjustment
Month
1924
1923
January
February
March
April
May
June
July
August
September
October..
November
December
103
102
94
99
95
91
93
95
101
99
99
101
102
100
104
100
103
102
101
103
99
103
100
95
_.
_
1925
1926
1927
102
101
100
97
99
99
97
97
100
94
98
95
102
101
100
100
99
100
102
101
100
105
100
98
1928
94
97
93
89
96
89
94
95
96
93
95
93
95
100
96
91
95
93
1924
1923
Annual average.. _.
1925
1926
1927
1928
93
96
114
97
94
92
92
115
115
123
100
82
94
98
102
96
87
82
86
105
118
118
97
88
93
97
109
98
90
91
94
113
117
124
99
89
94
97
107
94
91
91
91
107
117
111
97
84
86
91
103
90
88
87
88
111
112
106
93
82
101
98
101
98
95
87
93
99
op.
89
84
SALES IN INDIVIDUAL LINES OF WHOLESALE TRADE
With seasonal adjustment
Month
Groceries Meats
Without seasonal adjustment
Wom- Boots
Dry Men's
en's
Furcloth- clothand Hard- Drugs niture
oods ing
shoes
ing
1927
June
July
August
September..
October
November..
December. .
104
102
109
109
109
105
109
88
88
102
91
86
89
87
90
90
101
92
81
86
93
90
134
111
104
91
105
101
1928
January
February.._
March
April
May
June
106
113
109
112
109
112
89
88
83
78
87
79
99
99
94
77
96
76
114
109
96
93
113
81
92
92
97
99
94
100
97
106
105
112
114
111
112
106
108
109
109
110
116
109
102
102
109
103
99
100
89
Gro-
101
92
97
102
102
100
90
Meats
106
104
111
117
122
101
103
106
108
105
105
109
114
Men's Wom- Boots HardFurDry cloth- en's
and
Drugs nigoods ing cloth- shoes
ture
ing
78
81
125
113
99
88
70
46
78
165
140
101
61
48
85
107
122
127
114
110
82
76
128
131
75
57
39
94
87
110
99
114
76
96
90
98
106
105
98
90
99
100
110
122
128
113
99
90
84
111
117
118
105
83
106
101
120
112
109
103
78
96
107
88
87
83
NOTE.—The basic data used and the methods of construction of the index of wholesale distribution were described and monthly indexes from
January, 1919, to October, 1927, were published in the BULLETIN for December, 1927, pp. 817-828. Indexes of sales of furniture revised in May, 1928.
559
FEDERAL RESERVE BULLETIN
AUGUST, 1928
DEPARTMENT STORES: SALES AND STOCKS. BY FEDERAL RESERVE DISTRICTS
[Index numbers. Monthly average 1923-1925=100]
Federal Reserve District
United
States
Month
Boston
New
York
Phila- Clevedelphia land
Sales (unadjusted):
1927—February ._
March
April
May
June
1928—February..
March
April
May
June
83
100
111
102
101
85
103
102
107
103
78
97
111
100
110
78
96
99
101
112
85
99
112
102
109
Sales (adjusted):
1927—FebruaryMarch
April
May
June
1928—February.
March
April
May
June
107
105
105
103
103
105
105
103
104
105
Stocks (unadjusted):
1927—February
March
April
May
June
1928—February.
March
April
May
June
Stocks (adjusted):
1927—February.
March
April
May
June
1928—February _
March
April
May.
June
78
94
103
94
97
82
98
116
105
99
89
102
103
109 |
112
72
95
90
94
94
85
101
101
106
100
104
104
102
102
105
100
98
97
98
106
109
107
107
104
111
97
96
98
96
96
104
103
107
103
99
109
106
106
107
114
85
94
91
92
94
103
102
100
100
100
97
106
106
103
97
96
103
104
101
95
95
105
107
106
99
97
105
107
106
97
97
107
109
105
98
95
105
103
98
92
96
105
106
102
98
97
105
108
104
98
91
98
96
93
86
93
103
103
100
94
102
103
102
101
100
101
100
100
99
101
103
104
105
103
103
103
104
105
101
105
105
105
105
103
100
100
99
98
97
101
101
99
99
99
104
103
104
104
102
96
93
92
93
91
98
99
96
96
95
Richmond
Atlanta
Chicago
Minne- Kansas
St.
Louis apolis Cityi
78
99
110
103
100
82
105
99
106
102
109
108
99
91
110
102
114
90
108
117
108
107
94
115
113
122
113
104
102
105
105
99
105
105
102
104
101
109
105
104
105
105
108
113
103
107
104
114
114
106
107
107
115
118
110
115
113
103
101
101
97
107
107
104
98
96
103
104
100
95
100
108
110
103
92
101
105
108
103
96
97
105
105
101
95
99
105
106
103
95
95
102
103
102
97
93
96
98
96
91
102
103
102
103
102
101
100
99
99
102
105
105
102
97
103
102
103
102
101
102
102
101
100
100
104
102
102
102
100
101
100
98
100
101
99
94
94
94
95
76
92
104
91
91
72
91
82
90
84
108
96
93
85
105
99
104
94
Dallas
76
89
98
88
86
86
97
109
112
95
77
93
93
94
84
88
109
102
116
98
108
100
108
108
99
103
99
92
90
91
101
105
100
103
99
94
95
78
85 ,
84 !
—
106
109
108
107
103
109
116
115
112
104
85
92
93
90
83
111
118
116
116
108
83
86
87
83
76
88
90
88
89
89
86
84
83
81
81
San
Francisco
85
109
115
107
95
92
110
114
116
101
111
112
114
106
103
115
110
121
111
109
102
109
110
107
103
105
111
111
108
102
106
107
104
106
106
109
109
106
107
106
i Monthly average in 1925=100.
NOTE.—For description of indexes given in this table see BULLETIN for February, 1928.
SALES OF MAIL-ORDER HOUSES AND CHAIN STORES
[Index numbers of sales. Monthly average 1923-1925=100]
Sales with seasonal adjustmen t
Sales without seasonal adjustment
Month
1927—February
Marsh
April
May
June
1923— February
March _
April
Mav
June
Chains
Chains
Mailorder
houses Gro- 5-and- Apcery 10-cent parel
(4)
(34)
(14)
(5)
Drug
(13)
Cigar
(5)
Mailorder
Gro- 5-and- Aphouses
Shoe C a n d y (4)
cery 10-cent parel
(4)
(7)
(34)
(5)
(14)
Cigar
(5)
Shoe Candy
(4)
(7)
101
125
120
99
107
148
174
172
171
178
104
116
135
123
123
114
148
199
171
172
129
143
144
134
136
99
111
113
113
109
84
96
150
109
118
103
115
136
115
114
112
117
113
118
121
155
163
166
171
178
133
128
137
132
135
173
175
192
172
175
139
139
144
137
138
115
113
115
113
112
121
104
117
99
108
121
116
127
120
121
108
125
115
116
127
193
224
201
213
207
115
133
135
139
139
137
200
195
221
216
148
163
154
164
162
96
107
100
110
108
86
117
130
130
147
106
119
130
127
122
116
113
117
132
144
194
210
202
206
208
142
142
147
144
153
201
224
205
213
219
153
157
161
161
164
107
109
105
105
111
120
119
109
113
134
120
120
125
127
129
NOTE.—For description of indexes given in this table see BULLETIN for April, 1928.
Drag
(13)
560
FEDERAL RESERVE BULLETIN
AUGUST,
1928
BANK SUSPENSIONS AND COMMERCIAL FAILURES
BANK SUSPENSIONS, BY CLASS OF BANK
COMMERCIAL FAILURES. BY CLASS OF ENTERPRISE
[Amounts in thousands of dollars]
[Amounts in thousands of dollars]
All banks
Month
Member
banks
Nonmember
banks
Num- Total
! Num- Total
Num- Total
dededeber posits
I ber posits ber posits
Liabilities
Month
Agents,
brokers,
etc.
1926
January.
February __.
March
April
May
June..
July
August
September..
October
November..
December..
11
10
6
6
10
16
5
9
8
19
33
27
3,992
2,861
710
3,534
4,234
5,318
1,637
2,127
4,317
6,280
19,389
14,413
54
42
45
50
58
61
135
43
29
69
121
89
956 272,488 ! 160
68,812
796 203,676
32,038
25,157
31, 222
11, 750
13,198
10, 784
12,162
17, 364
8,988
11,542
11,210
8,476
11, 555
8,744
7,700
5,462
6,434
5, 521
2,638
8,881
1,257
3,729
3,105
1, 31.3
106
65
59
39
38
32
35
22
30
35
37
42
65
52
51
56
68
77
140
52
37
88
154
116
Total
-t
13,384
11,763
10,249 !
12,512 i
16,324 !
34,229 I
48,618
10,001
12,050
18, 209
45,983 i
39,166 i
9,392
8,902
9,539
8,978
12,090
28,911
46,981
7,874
7,733
11,929
26,594
24, 753
1926
January...
February _
March
April
May
June
July.
August
September
October. _.
November
December.
6,055
3,037
2,138
2,659
1,676
3,791
3,898
1,518
8,654
5,707
2,439
8,282
1927
January.
February
March
April
May
June
July
August
September..
October
November..
December..
133
81
75
49
47
41
37
27
36
44
43
49
662 193,891
•. ..
53 12,535
50 20, 669
64 17, 682
8,362
44
6,647
29
27 15, 151
Total..
1928
January..
February.
March
April
May
June
Total, 6 months
J 267
124
66, 336
6,764
13,017
7,332
5,570
4,005
3,022
9,575
9,573
5,385
4,445
6,412
5,305
~538~|l27,555
8
11
9
6
5
2
81, 046
49,854
20, 483
16,413
23, 522
6,288
6,764
5, 263
9,524
8,483
7,731
7,813
8,105
7,166
9,079
10, 587
13. 309
5,001
4,360
13, 452
25, 258
226
55,788
BANK SUSPENSIONS i IN JUNE, 1928, BY DISTRICTS
[Amounts in thousands of dollars]
All banks
Federal reserve district
Boston .
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
.
St. Louis
Minneapolis
Kansas City .
Dallas....
San Francisco
Total
Member
banks J
33,912
Nonmember
banks
[Amounts in thousands of dollars]
Number
Federal reserve
district
..
_.
1
1
6
8
6
4
1
97
791
6,560
3,164
3,559
910
70
2
27 ! 15.151
2
1, 699
1,699
1
1
6
6
6
4 1
1
25
97
791
6,560
1,465
3 55Q
Q10
70
13,452
1 Banks closed to the public by order of supervisory authorities or by
the2 directors of the banks on account of financial difficulties.
Comprise one national bank with deposits of $1,500,000 and one
State member bank with deposits of $199,000.
* 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.
COMMERCIAL FAILURES. BY DISTRICTS i
Num- Total
Num- Total
Num- Total
dededeber posits
ber posits
3
3 ber posits 3
June,
1928
Boston.
New York
Philadelphia
Cleveland
Richmond
\tlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Total
May,
1928
Liabilities
June,
1927
June,
1928
May,
1928
June,
1927
278
364
79
136
98
108
265
105
55
88
46
325
201
315
85
157
140
109
293
138
70
128
66
306
171
260
41
164
142
174
253
98
114
123
59
234
3,242
6,476
1,807
2,847
1,396
1,984
4,901
963
499
1,060
540
4,111
3, 558
5,994
2,693
2,378
2,948
1,567
7,456
1,663
912
1.768
2,214
2,965
2,476
4,733
5,610
3, 573
2,255
2,347
4,000
1,897
1,397
1,768
1,555
2,852
1,947
2,008
1,833
29,827
36,117
34,465
i Figures furnished by R. Q. D u n & Co
561
FEDERAL RESERVE BULLETIN
AUGUST, 1928
JULY CROP REPORT, BY FEDERAL RESERVE DISTRICTS
[District figures derived from July estimates b y States, made by the Department of Agriculture]
[In thousands of units]
Corn
Total wheat
Winter wheat
Spring wheat
Federa reserve district
Estimate,
Estimate,
Estimate, Yield, 1927 Estimate,
Yield, 1927 July 1,1928 Yield, 1927 July 1,1928 Yield, 1927
July 1,1928
July 1,1928
Boston
New York
Philadelphia
Cleveland
_
Richmond
Atlanta
Chicago
St. Louis
Minneapolis _ _ _ _ _
Kansas City
Dallas
San Francisco
.___
Total
_____
_
Bushels
8,493
26,394
45, 929
150, 323
163, 753
184,477
787,986
342,426
304,986
612, 497
134,968
11,476
Bushels
8,025
23,295
48,177
175,096
140,347
142,065
954, 682
355,403
278,159
488, 258
112,863
9,247
Bushels
92
7,216
18, 761
33,931
25,233
4,528
65, 560
42, 210
• 274, 028
249,167
18,356
133, 513
Bushels
100
6,081
16,406
13,806
24,198
4,340
40, 634
26,399
215, 748
322,386
23, 342
106,497
2, 773, 708
2, 735, 617
872,595
799,937
Oats
Hay
Bushels
Bushels
6,994
18.651
33, 817
25, 233
4,528
60,256
41,701
20, 224
236,454
18,213
87,217
5,887
16, 294
13, 637
24,198
4,340
33, 550
26,199
13, 432
307, 880
23,141
75, 224
553, 288
543, 782
Tobacco
Bushels
92
222
110
114
Bushels
100
194
112
169
5,304
509
253, 804
12, 713
143
46, 296
7,084
200
202,316
14, 506
201
31, 273
319,307
256,155
White potatoes
Federal reserve district
Yield, 1927
Boston
. _
New York
Philadelphia
Cleveland.
Richmond
_
_ _
. _
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
- _ .
.
___
_._
___
Dallas
San Francisco
Total _
_
_.
_
_
_
Estimate, Yield, 1927 Estimate, Yield, 1927 Estimate, Yield, 1927 Estimate,
July 1,1928
July 1,1928|
July 1,1928
July 1,1928
Tons
Bushels
9,215
36,636
24,844
78, 362
26,104
14, 282
454,805
40, 547
283, 709
138,400
43,807
33, 435
Bushels
8,813
36,973
24,094
110,472
21, 762
10, 615
563, 877
61, 740
259,146
155,135
38,085
29, 385
Tons
4,802
7,780
3,664
7,652
4, 693
3,141
21, 626
9,411
22,980
20,122
1,809
16,114
4,781
6,971
3,308
5,365
4,164
2,759
14,198
6,584
8,653
12, 269
1,632
13, 699
1,184,146
1, 320, 097
123, 794
84, 383
Pounds
37,280
1,249
44,880
80, 647
706,036
121,134
32, 840
166,876
1,990
2,948
Pounds
45, 436
1,427
46, 708
120, 079
672, 713
134, 267
42, 669
243,459
2,486
2,580
Bushels
45,287
33,152
25,998
21, 501
40, 798
12,303
51,925
14,061
65, 833
36,928
3,128
56, 050
Bushels
47,103
36,980
28, 544
22.868
44, 586
15,421
69, 342
17,818
63, 849
44, 348
2,984
49, 797
1,195, 880
1, 311, 824
406,964
443, 640
562
FEDERAL RESERVE BULLETIN
AUGUST, 1928
FOREIGN BANKING AND BUSINESS CONDITIONS
THE RETURN TO GOLD—SUMMARY BY 1925—April 28: New Zealand.—Restrictions on gold
exports ceased. Notes are to remain inconCOUNTRIES
vertible until January 10, 1929, but New Zealand
currency in practice has moved closely with the
English pound.
1925—May 18: South Africa.—Restrictions on gold exports ceased. The obligation of the South African
Reserve Bank to redeem its notes in gold was reimposed.
1925—September 2: Albania.—National Bank of Albania
opened under legal obligation to redeem its notes
in gold or gold exchange.
1925—December 21: Finland.—New regulations became
effective under which the Bank of Finland must
redeem its notes in gold or gold exchange.
1925—Switzerland.—During 1925 general authorization
was given for the export of gold and the Swiss
1923—January 3: Austria.—National Bank of Austria
National Bank of Chile began payment of gold
opened under legal obligation to prevent depreciacoin into circulation.
tion of its notes in terms of gold.
1926—January 11: Chile.—Central Bank of Chile
1923—July 23: Colombia.—Bank of the Republic of
opened under legal obligation to redeem its notes in
Colombia opened under legal obligation to redeem
gold or gold exchange.
its notes in gold.
1926—April 1: Czechoslovakia.—National Bank of
1924—April 1: Sweden.—Restrictions on gold exports
Czechoslovakia opened under legal obligation to
ceased and exemption of Swedish Riksbank from
maintain the relation of the crown to undepreobligation to redeem its notes in gold expired.
ciated foreign gold currencies at the level of the
Obligation of the bank to maintain the parity of
preceding two years.
the krona in relation to the dollar had existed since 1926—July 1: Canada.—Control over gold exports was
March 31, 1923.
removed and obligation to redeem notes in gold
1924—October 11: Germany.—New bank law became was reimposed.
effective, with the exception of article 31, which 1926—October 25: Belgium.—By royal decree the obligation was imposed upon the National Bank of
imposed the obligation on the Reichsbank to
Belgium to redeem its notes in gold or gold
redeem its notes in gold or gold exchange. The
exchange.
bank has publicly announced that it will buy and
sell gold when required to hold mark exchange 1927—January 1: Bulgaria.—New bank law became
effective under which it is the duty of the Bank
within the gold points.
of Bulgaria to insure by all means in its power
1925—April 28: England.—The Bank of England,
that the gold value of its notes shall remain stable.
already under legal obligation to redeem its notes
in gold, was given a general license to export gold 1927—January 1: Denmark.—Exemption of the National Bank of Copenhagen from obligation to
with the understanding that this meant in effect
redeem its notes in gold expired.
the free export of gold. The gold standard act
became law on May 13 and the gold and silver 1927—April 1: India.—Law passed imposing upon the
Government the obligation to buy gold and to sell
(export control) act of 1920 lapsed entirely on
either gold or sterling at fixed rates.
December 31.
1925—April 28: Hungary.—The krone, having been 1927—August 10: Ecuador.—Central Bank of Ecuador
opened under legal obligation to redeem its notes
stabilized with reference to sterling since August
in gold or in exchange on New York or London.
1, 1924, by commitment of the National Bank of
Hungary, came into fixed relation to gold when 1927—August 27: Argentina.—Conversion office was
reopened and obligation to redeem paper pesos in
England returned to the gold standard. The bank
gold was reimposed.
is under legal obligation to preserve the stability
1927—October 13: Poland.—New statutes of the Bank
of its notes in terms of gold exchange.
of Poland became effective under which the bank
1925—April 28: Danzig.—The gulden having been
must redeem its notes in gold or gold exchange.
officially stabilized with reference to sterling on
March 17, 1924 (when the Bank of Danzig opened 1927—December 22: Italy.—By royal decree the obligation was imposed upon the Bank of Italy to
under legal obligation to buy and sell sterling at
redeem its notes in gold or gold exchange.
fixed rates) came into fixed relation with gold
1928—January 1: Estonia.—New statutes for the Bank
when England returned to the gold standard.
of Estonia became effective under which the bank
1925—April 28: Netherlands.—Restrictions on gold
must redeem its notes in gold or gold exchange.
exports ceased and obligation to redeem notes in
gold was once more assumed by the Bank of 1928—May 1: Norway.—Restriction on gold exports
ceased and exemption of the Bank of Norway from
Netherlands.
obligation to redeem its notes in gold expired.
1925—April 28: Java.—Restrictions on gold exports
ceased. The Bank of Java was already under legal 1928—May 14: Greece.—Bank of Greece opened under
legal obligation to redeem its notes in gold exchange.
obligation to redeem its notes in gold or silver coin.
1925—April 28: Australia.—Restrictions on gold ex- 1928—June 25: France.—New monetary law became
effective under which the restrictions on gold exports ceased. The Commonwealth Bank was
ports ceased and the Bank of France was placed
already under legal obligation to redeem its notes
under obligations to redeem its notes in gold.
in gold.
There is presented herewith a chronological
list of measures undertaken by the principal
countries of the world in reestablishing a fixed
relationship between their currencies and gold.
These official acts have generally followed after
a period of actual stability in the value of the
currency, and consequently in many cases the
currencies have been on a de facto gold basis
for some time before the date shown in the
tabulation.
563
FEDERAL RESERVE BULLETIN
AUGUST, 1928
LEGAL RESERVE REQUIREMENTS OF FOREIGN CENTRAL BANKS
Reserve requirements
Country-
Albania. _
Australia.
Austria
Belgium..
Bulgaria..
Chile
Liabilities against which reserves
must be held
Notes
Notes
Notes plus other demand liabilities,
minus amount represented by
Federal loan debt.
Notes and deposits
Notes and other demand liabilities..
Notes and deposits
Gold
Gold
and
foreign
exchange
Per cent
Per cent
Foreign exchange may not exceed two-thirds.
25
2 24
30
Notes
Ecuador..
Notes and deposits...
Egypt....
Notes
England-
Notes in excess of fiduciary issue of
£260,000,000.
Notes and other demand liabilities...
Estonia...
Finland .
France
Germany..
Greece
Hungary..
Notes and other demand liabilities
in excess of 1,200,000,000 markka.
Java...
Notes and other demand liabilities...
Notes
Notes and deposits
Notes plus other demand liabilities,
minus amount represented by
State debt.
Notes and deposits exclusive of
Treasury fixed deposit account.
Notes in excess of fiduciary issue of
120,000,000 yen.
Notes and other demand liabilities...
Latvia
Lithuania
Netherlands..
Notes
Notes
Notes and other demand liabilities...
Norway
Notes in excess of fiduciary issue of
250,000,000 kroner.
Notes and other demand liabilities..
Notes and deposits...
Notes
Notes, deposits, and bills payable
Italy..
Japan.
Peru..
Poland
Russia
South AfricaSpain
Notes..
2 60
l 2 22
30
50
100
40
Reserve ratio to be increased at 5-year intervals ending January 2,
1938, the successive ratios being 20 per cent, 24 per cent, 28 per cent,
and 33)£ per cent.
The bank will take steps to raise the reserve ratio to 40 per cent.
Foreign exchange may consist only of demand deposits payable in
New York or London.
Foreign exchange may consist only of demand deposits.
Silver in reserve may not exceed one-fourth. Beginning April 1,
1926, with reserve ratio of 20 per cent, the bank will increase it by
1 per cent each year over a period of 15 years.
100 per cent reserve must be held against circulation in excess of 100
gulden per capita. Foreign exchange may consist only of demand
claims on the Bank of England.
Foreign exchange may consist only of the bank's noninterest-bearing
demand balances with Bank of Norway and Swedish Riksbank,
less indebtedness to these two banks, and noninterest-bearing demand balances in special account with German Reichsbank. The
bank, when authorized by royal proclamation and subject to payment of a tax, may permit the reserve ratio to fall below the legal
minimum.
Foreign exchange may consist only of deposits payable in gold on
demand or on 3 days' notice in New York or London.
The original requirement was a gold reserve ratio of 50 per cent, but
on October 30, 1916, the bank was authorized to substitute British
Treasury bills for gold.
Fiduciary issue may be increased by authorization of Treasury.
Power to suspend requirement is vested in the Government.
Markka
300,000
Per cent
35
2 30
100
2 40
40
220
40
»100
»20
50
100
2 30
"V46"
37,47
50
Switzerland
Uruguay
Notes.
Notes in denominations of 10 pesos
or more and deposits.
»40
40
Foreign exchange may consist only of undisputed balances with
foreign correspondents.
Power to suspend requirement is vested in the Government.
Reserve ratio to be increased at 5-year intervals ending June 24,1939,
the successive ratios being 20 per cent, 24 per cent, 28 per cent, and
3 3 ^ per cent.
Silver in reserve may not exceed one-fourth. Fiduciary issue may be
increased by authorization of Minister of Finance.
Previous to emergency legislation in 1914 the reserve requirement was
40 per cent.
Additional requirements for notes in excess of 100,000,000 lats.
Previous to emergency legislation in 1914 the reserve requirement was
40 per cent.
Fiduciary issue may be increased, subject to tax, by authority of King
and Storting.
•20
Notes in excess of fiduciary issue of
125,000,000 kronor.
50
2 50
Sweden.
1
May legally
2
The bank is
3
40
2 50
Notes and deposits
Colombia
Czechoslovakia. Notes plus other demand liabilities,
minus amount represented by
debt in respect of state notes outstanding.
Danzig
Notes
Denmark
Qualifying provisions, etc.
50
2 40
125
45, 160
60
Reserve may include platinum.
Silver in reserve may not exceed one-fifth. The bank, subject to tax and
with consent of the Government, may suspend reserve requirements.
Note circulation limited to 6,000,000,000 pesetas and may exceed
5,000,000,000 only with consent of the Government. Consent of
the Government required for any reduction of gold holdings and
can not be given unless these holdings are in excess of the requirement necessary for a circulation of 6,000,000,000 pesetas. First
4,000,Qp0,000 pesetas require 45 per cent reserve; at least 37 per
cent must be gold; 5 per cent may be silver and 3 per cent foreign
exchange. Circulation above 4,000,000,000 pesetas requires 60 per
cent reserve; at least 47 per cent must be gold; 10 per cent may be
silver and 3 per cent foreign exchange.
Gold reserve may not fall below 75,000,000 kronor. In emergency
the King and Riksdag acting together may extend the fiduciary
issue by 125,000,000 kronor.
Silver in reserve may not exceed one-fifth.
Note issue in denominations of less than 10 pesos may not exceed
one-half paid-up capital of the bank. Note issue in denominations
of 10 pesos or more is limited in relation to capital of the bank,
gold deposited by commercial banks, and a war loan made to th«
French Government.
include silver as well as gold and foreign exchange.
specifically authorized, subject to the payment of a tax, to permit the reserve ratio to fall below the legal minimum.
Metallic reserve \may legally include sil ver as well as gold.
564
FEDERAL RESERVE BULLETIN
AUGUST, 1928-
AMALGAMATION OF NOTE ISSUES IN GREAT BRITAIN
The British currency and bank notes act,
providing for the amalgamation of the currency
note issue with the Bank of England issue,
became law on July 2, 1928.* This act completes the monetary reconstruction of Great
Britain, and its passage makes opportune a
brief review of the country's monetary developments since the outbreak of the World War.
chart shows the amount of currency notes
outstanding from December, 1914, to June,
1928, at half-yearly intervals, and also the
amount covered by gold and Bank of England
notes.
MILLIONS OF POUNDS
MILLIONS OF POUNDS
War-time changes in British currency.—
Prior to 1914 the money of England, aside
from subsidiary coin, was chiefly composed of
gold coin and Bank of England notes. These
Bank of England notes, which could not be
issued in denominations of less than £5, were in
turn largely covered by gold. The act of 1844
had permitted the Bank of England to issue
£14,000,000 of notes without gold cover, and
this figure was later raised in accordance with
the provisions of the act as other small noteissuing banks lost their privilege of note issue.
By June 30, 1914, the issue of Bank of England
notes not covered by gold, commonly known as
the "fiduciary issue," had grown to £18,450,000.
For all notes issued in excess of this amount an
equivalent amount of gold had to be set aside
in the vaults of the Bank of England.
With the advent of the war, steps were taken
to mobilize the gold of the country, features of
the program being the substitution of paper
currency for gold coin in circulation and the
introduction of a currency that could expand
on a basis other than gold. The Bank of
England note, however, retained its character
of a gold-covered note, and the requirements of
the situation were met by the issue of a new
kind of currency by the treasury. Under the
Currency and Bank Notes Act, 1914, the British
treasury was authorized to issue currency
notes with legal tender powers in denominations
of £1 and 10 shillings. In the main, currency
notes have been a fiduciary issue, though to
some extent they have been covered by gold
and Bank of England notes.
The volume of currency notes outstanding
increased rapidly during and after tlie war,
reaching a maximum of about £370,000,000
in December, 1920, while the volume of Bank of
England notes in circulation increased less
rapidly, from about £40,000,000 in 1914 to
about £115,000,000 at the end of 1920. The
1
Two amendments were made in the original bill as introduced
into the House of Commons on May 2 and published in the FEDERAL
KESERVE BULLETIN for June. A paragraph was added to section 9 of
the bill and a phrase was inserted in subsection 2 of section 11. The
entire act as passed is published at the close of this article on p. 567.
1915 1916 1917 1918~ 1919 1920 1921 1922 1923 1924-1925 1926 1927 1928
Report of the Cunliffe committee.—In Jan-
uary, 1918, a committee was appointed "to consider the various problems which will arise in
connection with currency and foreign exchanges
during the period of reconstruction and report upon the steps required to bring about
the restoration of normal conditions in due
course." Lord Cunliffe, governor of the Bank
of England, was appointed chairman of the
committee, which is in consequence generally
referred to as the " Cunliffe committee."
In August the committee made its first
report, which recommended that as soon as
possible steps should be taken to reduce the
uncovered or fiduciary issue of currency notes.
The method proposed by the committee was
that "the actual maximum fiduciary circulation in any year should become the legal
maximum for the following year." This suggestion was later adopted by the Treasury
in its minute of December, 1919, which fixed
the legal maximum fiduciary issue of currency
notes for 1920 at the actual maximum for 1919.
In each succeeding year the legal maximum has
been lower than in the preceding year. The
figures are given below:
1920-_ .__ £320, 600, 000 1925
1921
317, 600, 000 1926
1922
309,988, 000 1927
1923
270, 183, 000 1928
1924.
248, 145,000
£248, 191, 000
247, 903, 000
246,011, 000
244,940,000
AUGUST, 1928
FEDERAL RESERVE BULLETIN
The committee anticipated that, once a
check had been put on the further expansion
of currency notes and other measures had
been taken for curbing inflationary tendencies
a more normal situation would develop, in
which it would be possible to fix permanently
the fiduciary issue. The committee was of
the opinion that the country required a
minimum gold reserve of about £150,000,000
and that a corresponding amount of currency
should be covered by 100 per cent of gold,
while the remainder of the necessary currency
could be fiduciary in character. That is,
if under normal circumstances it should
be found that the notes outstanding were
generally about £400,000,000, then a fiduciary
issue of approximately £250,000,000 should be
maintained, leaving £150,000,000 to be covered
pound for pound by gold. The passage in
the report which deals with determination of
the minimum reserve is as follows:
The pre-war gold reserves were about £38,500,000 in
the Bank of England and an amount estimated at
£123,000,000 in the banks and in the pockets of the
people. If the actual circulation of gold coin ceases
and the whole of the gold is concentrated in the central
institution, some economy is permissible in view of its
increased mobility. On the other hand, the aggregate
amount of currency required will undoubtedly be
larger. We accordingly recommend that the amount
to be aimed at in the first instance as the normal
minimum amount of the central gold reserve should be
£150,000,000, and that, until this amount has been
reached and maintained concurrently with a satisfactory foreign exchange position for a period of at
least a year, the policy of reducing the uncovered note
issue as and when opportunity offers should be consistently followed. In view of the economic conditions which are likely to follow the restoration of
peace, it will be necessary to apply this policy with
extreme caution and without undue rigidity. When
the exchanges are working normally on the basis of a
minimum reserve of £150,000,000, the position should
again be reviewed in the light of the dimensions of the
fiduciary issue as it then exists.
Although the committee was strongly in
favor of the principle of a fixed fiduciary limit,
it recognized that in the past the limit has had
to be suspended extra-legally in times of crisis,
and it therefore proposed that legal provision
should be made for temporary suspensions.
Its language on this point is as follows:
"We have considered with care the possibility of so modifying the act of 1844 as to
make provision for the issue of emergency
currency in times of acute difficulty. It
might, no doubt, be sufficient to leave matters
as they were prior to 1914 and to risk the possibility of the law having to be broken, subject
to indemnity from Parliament, but upon the
whole we share the objections which have been
expressed in many quarters to this procedure.
565
We are, therefore, of opinion that the provisions of section 3 of the currency and banknotes act, 1914, under which the Bank of
England may, with the consent of the Treasury, temporarily issue notes in excess of the
legal limit, should be continued in force. It
should be provided by statute that Parliament
should be informed forthwith of any action
taken by the Treasury under this provision by
means of a Treasury minute which should be
laid before both Houses. The statute should
also provide that any profits derived from the
excess issue should be surrendered by the
bank to the exchequer. It will, of course, be
necessary that the bank rate should be raised
to and maintained at a figure sufficiently high
to secure the earliest possible retirement of
the excess issue."
Report of the committee of 1924.—In 1924 a
second committee was appointed with instructions "to consider whether the time has now
come to amalgamate the Treasury note issue
with the Bank of England note issue." This
committee devoted its chief attention to
developing a program for the restoration of
the gold standard in England, which it considered a necessary preliminary to the amalgamation of the Treasury or currency notes with
the Bank of England issue. So far as the
latter was concerned, the committee indorsed
the position of the Cunliffe committee and
closed its report with the following statement:
"We anticipate that if a free gold market is
restored at the end of 1925 the experience
necessary to enable the amount of the fiduciary issue to be definitely fixed will have
been obtained by the end of 1927. The
transfer of the issue could then take place early
in 1928."
Currency and bank notes act of 1928.—In
April, 1925, the gold standard was restored in
England and a little over three years later,
in July, 1928, the currency and bank notes
act became law. The act follows closely the
recommendations of the Cunliffe committee.
By the terms of this act the Bank on "the appointed day" is to take over the liability on
outstanding currency notes, and also to take
over the Bank of England notes, the silver, and
the securities that serve as cover for the notes.
The excess of cover, amounting to about
£13,000,000, is to be turned over to the sinking
fund of the treasury. The act permits the
Bank of England henceforth to issue bank
notes with legal tender powers in denominations of £1 and for 10 shillings, and provides for
a fiduciary issue of £260,000,000, corresponding
closely to the combined fiduciary issues of the
566
FEDERAL RESERVE BULLETIN
Bank and the treasury previous to the act. At
the time the act was introduced the fiduciary
issue would have left a gold covered issue of
about £158,000,000, requiring a gold reserve
not far in excess of that suggested by the Cunliffe committee.
The proposal of the committee that suspension of the fiduciary limit with the consent of the treasury should be made legal
was adopted in section 8. This section is of
such importance that it is quoted in full below:
(1) If the Bank at any time represent to the treasury that it is expedient that the amount of the fiduciary note issue shall be increased to some specified
amount above £260,000,000 the treasury may authorize
the Bank to issue bank notes to such an increased
amount, not exceeding the amount specified as aforesaid, and for such period, not exceeding six months,
as the Treasury think proper.
(2) Any authority so given may be renewed or
varied from time to time on the like representation
and in like manner: Provided, That, notwithstanding
the forgoing provision, no such authority shall be
renewed so as to remain in force (whether with or
without variation) after the expiration of a period of
two years from the date on which it was originally
given, unless Parliament otherwise determines.
(3) Any minute of the Treasury authorizing an
increase of the fiduciary note issue under this
section shall be laid forthwith before both Houses
of Parliament.
That section 8 is intended to do more than
was proposed by the Cunliffe committee (i. e.,
merely to legalize the method of meeting a
crisis which prior to 1914 was employed extralegally) was indicated during the debate in the
House of Commons. On May 14 Sir L. Worthington-Evans, Secretary of State for War,
supporting the bill on behalf of the Government, said:
" I t may be that in the course of the years to
come with an increased population and, as we
hope, greater employment, greater earnings,
greater expenditure and a higher standard of
comfort of the people, the currency of the
country will require a permanent expansion.
The provision in the bill for increase in the
fiduciary issue is not intended therefore to be
a mere legislative substitute for the crisis
letter. On the contrary it is intended to be
used not in a crisis but before it, and to prevent
undue stringency arising from any of the causes
I have mentioned.
"The bill has this advantage. It allows a
tentative change in the first instance before
Parliament is called upon to legislate. A
period of two years during which temporary
changes can be tried and the results watched
is allowed and if the reasons for the increase
AUGUST, 1928
appear to be permanent Parliament can be so
advised and by legislation the fiduciary limit
of £260,000,000 can be extended."
And on May 22, Sir L. Worthington-Evans
made the following important statement with
reference to his remarks quoted above:
" I am authorized to say that the governor
of the bank has read what I said on the second
reading. For fear that I should pledge him too
much, and to be more specific, he has read what
I said in column 746 to 748 of the official report,
and he has authorized me to say that that does
represent the general intention of the bank."
The occasion for making use of section 8 may
arise either from additional demand for currency by the public or an additional demand
for credit. In case the demand arises from
additional need for currency for circulation
the assets acquired by the Bank of England
in exchange for notes will have to be turned
over entirely to the issue department, and the
earnings from these assets would be paid over
(under section 6) to the treasury. In case, however, the occasion for using section 8 is an increased demand for credit rather than for currency, the bank could meet this demand and
maintain its reserve position by turning over
only about 40 per cent of the additional securities to the issue department in exchange for
that amount of notes.
Not only does the act make provision for
an extension of the fiduciary issue, but provision is made in section 2 for its contraction
as well. This provision would enable the
bank, in case of an accumulation of reserves,
to turn a portion of them over to the issue
department and to withdraw in exchange a
like amount of securities held in that department as cover for notes. By this process the
bank could convert its surplus gold into an
earning asset, and increase its earnings, since
earnings on securities held in the issue department must by virtue of section 6 be paid
to the treasury.
There is also a provision in the act which
will enable the Bank of England to draw to
its own holdings such monetary gold as is
owned by others in the United Kingdom.
Section 11 provides that "any person in the
United Kingdom owning any gold coin or
bullion to an amount exceeding £10,000 in
value * * * shall, if so required by the
bank, sell to the bank the whole or any part
of the said coin or bullion, other than any part
thereof which is bona fide held for immediate
export or which is bona fide required for industrial purposes, on payment therefor by
AUGUST, 1928
FEDERAL RESERVE BULLETIN
the bank, in the case of coin of the nominal
value thereof, and in the case of bullion at
the rate fixed by section 4 of the bank charter
act, 1844." The rate fixed in the bank charter
act is £3 17s. 9d. per ounce of standard gold,
the legal buying rate of the bank. As the
legal selling rate is £3 17s. 103^d., no person
will be tempted to exercise his right to buy
back the gold immediately. This provision
enables the bank to increase its reserves by
the acquisition of gold privately held in Great
Britain, but it does not in any way interfere
with the freedom of individuals to acquire
gold for export or for use in the arts.
In general, the currency and bank notes
act, though it incorporates the war-time currency issue with that of the Bank of England,
maintains the fundamental principles established for British currency nearly a century
ago, and makes provision for only such departures from these principles as experience
has demonstrated to be at times unavoidable
BRITISH CURRENCY AND BANK-NOTES ACT
An Act to amend the law relating to the issue of bank
notes by the Bank of England and by banks in
Scotland and Northern Ireland, and to provide for
the transfer to the Bank of England of the currency
notes issue and of the assets appropriated for the
redemption thereof, and to make certain provisions
with respect to gold reserves and otherwise in connection with the matters aforesaid and to prevent
the defacement of bank notes.
Be it enacted by the King's most Excellent
Majesty, by and with the advice and consent of
the Lords Spiritual and Temporal, and Commons,
in this present Parliament assembled, and by the
authority of the same, as follows:
Amendment with respect to powers of Bank
of England to issue bank notes.
1. (1) Notwithstanding anything in any
act—
(a) The Bank may issue bank notes for £1
and for 10 shillings.
(b) Any such bank notes may be issued at
any place out of London without being made
payable at that place, and wherever issued shall
be payable only at the head office of the Bank.
(c) Any such bank notes may be put into
circulation in Scotland and Northern Ireland,
and shall be current and legal tender in Scotland and Northern Ireland as in England.
(2) Section 6 of the Bank of England Act,
1833 (which provides that bank notes shall be
legal tender), shall have effect as if for the
words "shall be a legal tender to the amount
expressed in such note or notes and shall be
taken to be valid as a tender to such amount
for all sums above £5 on all occasions on which
any tender of money may be legally made"
567
there were substituted the words "shall be
legal tender for the payment of any amount."
(3) The following provisions shall have effect
so long as subsection (1) of section 1 of the
Gold Standard Act, 1925, remains in force:
(a) Notwithstanding anything in the proviso
to section 6 of the Bank of England Act, 1833,
bank notes for £1 or 10 shillings shall be
deemed a legal tender of payment by the Bank
or any branch of the Bank, including payment
of bank notes.
(b) The holders of bank notes for £5 and
upwards shall be entitled, on a demand made
at any time during office hours at the head
office of the Bank, or in the case of notes payable at a branch of the Bank, either at the
head office or at that branch, to require in exchange for the said bank notes for £5 and
upwards bank notes for £l or 10 shillings.
(4) The Bank shall have power, on giving
not less than three months' notice in the
London, Edinburgh, and Belfast Gazettes, to
call in the bank notes for£l or 10 shillings of
any series on exchanging them for bank notes
of the same value of a new series.
(5) Notwithstanding anything in section 8
of the Truck Act, 1831, the payment of wages in
bank notes of £1 or 10 shillings shall be valid,
whether the workman does or does not consent
thereto.
Amount of Bank of England note issue.
2. (1) Subject to the provisions of this act
the Bank shall issue bank notes up to the
amount representing the gold coin and gold
bullion for the time being in the issue department, and shall in addition issue bank notes
to the amount of £260,000,000 in excess of
the amount first mentioned in this section,
and the issue of notes which the Bank are by or
under this act required or authorized to make
in excess of the said first-mentioned amount
is in this act referred to as "the fiduciary note
issue.77
(2) The Treasury may at any time on being
requested by the Bank, direct that the amount
of the fiduciary note issue shall for such period
as may be determined by the Treasury, after
consultation with the Bank, be reduced by such
amount as may be so determined.
Securities for note issue to be held in issue
department.
3. (1) In addition to the gold coin and bullion for the time being in the issue department,
the Bank shall from time to time appropriate
to and hold in the issue department securities
of an amount in value sufficient to cover the
fiduciary note issue for the time being.
568
FEDERAL RESERVE BULLETIN
(2) The securities to be held as aforesaid may
include silver coin to an amount not exceeding
£5,500,000.
(3) The Bank shall from time to time give to
the Treasury such information as the Treasury
may require with respect to the securities held
in the issue department, but shall not be required to include any of the said securities in
the account to be taken pursuant to section 5
of the Bank of England Act, 1819.
Transfer of currency notes issue to Bank of
England.
4. (1) As from the appointed day all currency notes issued under the Currency and
Bank Notes Act, 1914, certified by the Treasury
to be outstanding on that date (including currency notes covered by certificates issued to
any persons under section 2 of the Currency
and Bank Notes (amendment) Act, 1914, but
not including currency notes called in but not
canceled) shall, for the purpose of the enactments relating to bank notes and the issue
thereof (including this act) be deemed to be
bank notes, and the Bank shall be liable in respect thereof accordingly.
(2) The currency notes to which subsection
(1) of this section applies are in this act referred
to as "the transferred currency notes."
(3) At any time after the appointed day the
bank shall have power, on giving not less than
three months' notice in the London, Edinburgh,
and Belfast Gazettes, to call in the transferred
currency notes on exchanging them for bank
notes of the same value.
(4) Any currency notes called in but not
canceled before the appointed day may be
exchanged for bank notes of the same value.
Transfer to Bank of certain part of assets of
currency note redemption account.
5. (1) On the appointed day, in consideration of the Bank undertaking liability in respect
of the transferred currency notes, all the assets
of the currency note redemption account other
than Government securities shall be transferred
to the issue department, and there shall also
be transferred to the issue department out of
the said assets Government securities of such
an amount in value as will together with the
other assets to be transferred as aforesaid
represent in the aggregate the amount of the
transferred currency notes.
For the purpose of this subsection the value
of any marketable Government securities shall
be taken to be their market price as on the
appointed day, less the accrued interest, if any,
included in that price.
AUGUST, 1928
(2) Any bank notes transferred to the Bank
under this section shall be canceled.
(3) Such of the said Government securities
as are not transferred to the Bank under the
foregoing provisions of this section shall be
realized and the amount realized shall be paid
into the Exchequer at such time and in such
manner as the Treasury directs.
Profits of note issue to be paid to Treasury.
6. (1) The Bank shall, at such times and in
such manner as may be agreed between the
Treasury and the Bank, pay to the Treasury an
amount equal to the profits arising in respect
of each year in the issue department, including the amount of any bank notes written off
under section 6 of the Bank Act, 1892, as
amended by this act, but less the amount of
any bank notes so written off which have been
presented for payment during the year and
the amount of any currency notes called in
but not canceled before the appointed day
which have been so presented.
(2) For the purposes of this section the
amount of the profits arising in any year in
the issue department shall, subject as aforesaid, be ascertained in such manner as may be
agreed between the Bank and Treasury.
(3) For the purposes of the income tax acts,
any income of, or attributable to, the issue
department shall be deemed to be income of
the Exchequer, and any expenses of, or attributable to, the issue department shall be deemed
not to be expenses of the Bank.
(4) The Bank shall cease to be liable to
make any payment in consideration of their
exemption from stamp duty on bank notes.
7. Section 6 of the Bank Act, 1892 (which
authorizes the writing off of bank notes
which are not presented for payment within
40 years of the date of issue), shall have effect
as if, in the case of notes for £1 or 10 shillings,
20 years were substituted for 40 years, and as
if, in the case of any such notes being transferred currency notes, they had been issued
on the appointed day and, in the case of any
such notes not being transferred currency
notes, they had been issued on the last day
on which notes of the particular series of which
they formed part were issued by the Bank.
Power to increase amount of fiduciary note
issue.
8. (1) If the Bank at any time represent to
the Treasury that it is expedient that the
amount of the fiduciary note issue shall be
increased to some specified amount above
£260,000,000 the Treasury may authorize the
Bank to issue bank notes to such an increased
AUGUST,
1928
FEDERAL RESERVE BULLETIN
569
amount, not exceeding the amount specified as the said coin or bullion, other than any part
aforesaid, and for such period, not exceeding thereof which is bona fide held for immediate
six months, as the Treasury think proper.
export or which is bona fide required for in(2) Any authority so given may be renewed dustrial purposes, on payment therefor by the
or varied from time to time on the like repre- Bank, in the case of coin, of the nominal value
sentation and in like manner: Provided, That, thereof, and in the case of bullion at the rate
notwithstanding the foregoing provision, no fixed in section 4 of the Bank Charter Act, 1844.
such authority shall be renewed so as to remain Penalty for defacing bank notes.
in force (whether with or without variation)
12. If any person prints or stamps or*by any
after the expiration of a period of two years
from the date on which it was originally given, like means impresses on any bank note any
word, letter, or figures, he shall in respect of
unless Parliament otherwise determines.
(3) Any minute of the Treasury authorizing each offense be liable on summary conviction to
an increase of the fiduciary note issue under a penalty not exceeding £1.
this section shall be laid forthwith before both Short title interpretation and repeal.
Houses of Parliament.
13. (1) This act may be cited as the "Currency
and Bank Notes Act, 1928."
Amendment as to issue of notes by banks in
(2) This act shall come into operation on the
Scotland and Northern Ireland.
appointed day and the appointed day shall be
9. (1) For the purpose of any enactment such
day as His Majesty may by Order in Counwhich in the case of a bank in Scotland or cil appoint,
and different days may be apNorthern Ireland limits by reference to the pointed for different
amount of gold and silver coin held by any provisions of this act.purposes and for different
such bank the amount of the notes which that
(3) In this act, unless the context otherwise
bank may have in circulation, bank notes held
by that bank or by the Bank on account of that requires—
The expression "the Bank" means the Bank
bank, shall be treated as being gold coin held
of England.
by that bank.
The expression "issue department" means
(2) A bank in Scotland or Northern Ireland
issue department of the Bank.
may hold the coin and bank notes by reference theThe
expression "bank note" means a note of
to which the amount of the bank notes which
Bank.
it is entitled to have in circulation is limited theThe
"coin" means coin which is
at such of its offices in Scotland or Northern current expression
and legal tender in the United KingIreland, respectively/not exceeding two, as may dom.
from time to time be approved by the Treasury.
The expression "bullion" includes any coin
10. The form prescribed by Schedule A to which
is not current and legal tender in the
the Bank Charter Act, 1844, for the account to
Kingdom.
be issued weekly by the Bank under section 6 United
(4)
The
set out in the schedule
of that act may be modified to such an extent to this act enactments
hereby repealed to the extent
as the Treasury, with the concurrence of the specified in are
the third column of that schedule.
Bank consider necessary, having regard to the
Schedule—Enactments repealed
provisions of this act.
Power of Bank of England to require persons
Session and
Short title
Extent of repeal
to make returns of and to sell gold.
chapter
11. (1) With a view to the concentration of
Charter Sections 2, 3, 5, and 9, in section
the gold reserves and to the securing of econ- 7 and 8 Viet. c. TheAct,Bank
1844.
11 the words from "save and
omy in the use of gold, the following provisions 32.
except that" to the end of the
section,
sections 13 to 20, and
of this section shall have effect so long as subsection 22, and, so far as relates
section (1) of section 1 of the Gold Standard
to England, sections 10 and 12.
24 and 25 Viet. Bank of England Section 4, so far as unrepealed.
Act, 1925, remains in force.
Act, 1861.
c. 3.
5 Geo. 5 The Currency and The whole act, except subsection
(2) Any person in the United Kingdom 4 and
Bank Notes Act,
c. 14.
(5) of section 1 and section 5.
1914.
owning any gold coin or bullion to an amount
4 and 5 Geo. 5 The Currency and The whole act.
exceeding £10,000 in value shall, on being re- c. 72.
Bank Notes
(amendment)
quired so to do by notice in writing from the
Act, 1914.
Bank, forthwith furnish to the Bank in writing 5 and 6 Geo. 5 The Finance Act, Section 27.
particulars of the gold coin and bullion owned 15c.and62. 16 Geo. The1915.Gold Standard Paragraph (6) of subsection (1)
Act, 1925.
of section 1.
by that person, and shall, if so required by the 5 c. 29.
Bank, sell to the Bank the whole or any part of
570
FEDERAL RESERVE BULLETIN
AUGUST, 1928
NEW FRENCH MONETARY LAW AND ADMINISTRATIVE CONVENTIONS
THE MONETARY LAW APPROVED JUNE 25,
1928
ARTICLE 1
The provisions of article 3 of the law of
August 5, 1914, which established as a temporary paeasure the legal-tender quality of the
notes of the Bank of France and of the Bank
of Algeria, are hereby repealed.
ARTICLE 2
ARTICLE 5
There shall be struck off by the mint
(VAdministration des Monnaies et Medailles)
gold pieces of 100 francs 0.900 fine. Deviation from the standard of fineness shall not
exceed one-thousandth in excess or deficiency.
Deviation in weight shall not exceed two-thousandths in excess or deficiency. These coins
shall be unlimited legal tender.
ARTICLE 6
The franc, the French monetary unit, shall
contain 65.5 milligrams of gold 0.900 fine.
A decree issued by the Council of Ministers
The present definition is not applicable to
international payments, which, prior to pro- shall fix the date on which the mint shall re^
mulgation of the present law, have been validly sume free coinage of gold for private account.
This decree shall determine the conditions unstipulated in gold francs.
der which gold may be accepted for coinage
at the rate fixed in article 2 and shall fix the
ARTICLE 3
charge for coinage.
The Bank of France shall guarantee the conUntil publication of this degree there shall
vertibility in gold of its notes to bearer and at be no coinage of gold by the mint except for
sight.
account of the Bank of France, and the charge
It is authorized to effect this conversion for coinage shall be 40 francs per kilogram of
either by redeeming its notes in legal tender gold, 0.900 fine.
gold coin or by exchanging them for gold bullion
at the rate of 65.5 milligrams of gold 0.900 fine
ARTICLE 7
per franc.
It is not required to redeem or exchange its
To replace 5, 10, and 20 franc notes of the
notes except at its central office and for such
Bank
of France, which shall be retired from
minimum amounts as shall be fixed by agreement between the Minister of Finance and the circulation before December 31, 1932, from
which date they shall cease to be legal tender,
Bank of France.
Convertibility of notes of the Bank of Alge- the mint shall coin, for account of the Governria shall be guaranteed under similar conditions ment, silver coins of a nominal value of 10 and
by agreement between the Minister of Finance 20 francs, 0.680 fine, to a total amount not in
excess of 3,000,000,000 francs.
and the Bank of Algeria.
The weight of silver coins shall be as follows:
The Bank of France shall buy gold over the
10
grams per coin of 10 francs, 20 grams per
counter at its central office and at such branch
coin of 20 francs.
offices as it may designate, at the rate of
Deviation of weight and of fineness shall not
franc per 65.5 milligrams of gold 0.900 fine,
and without deducting interest. It is au- exceed 0.005.
One-third of the profit resulting from the
thorized to charge the seller for cost of coinage
at the rate charged by the Paris mint. The coinage of silver shall, at the end of each year,
be allocated to a reserve fund set aside for
cost of assay shall be charged to the seller.
maintenance of monetary circulation; the other
two-thirds shall be appropriated as provided
ARTICLE 4
for in article 6 of the agreement consummated
The Bank of France shall maintain a metallic June 23, 1928, between the Premier and Minreserve in gold bullion and gold coin equal ister of Finance, and the governor of the Bank
at the minimum to 35 per cent of the combined of France.
In payments between individuals silver
amount of its notes in circulation and its liamoney shall be legal tender only to the extent
bilities on current account.
Legal provisions heretofore enacted fixing a of a maximum amount of 250 francs.
The designs of the new gold and silver coins
maximum amount for the note circulation of the
shall be specified by decree.
Bank of France are hereby repealed.
FEDERAL RESERVE BULLETIN
AUGUST, 1928
ARTICLE 8
The token currency of chambers of commerce
shall be replaced as it is retired from circulation by coins of the same denominations issued
by the Government.
In payments between individuals, coins of
bronze-aluminum shall be legal tender only
to a maximum amount of 50 francs; coins of
nickel and of bronze shall be legal tender only
to a maximum amount of 10 francs.
ARTICLE 9
571
portation of nickel and copper coins, as well as
bronze and aluminum pieces; the law of February 12, 1916, and October 16, 1919, prohibiting trade in national currency and specie; the
law of October 20, 1919, forbidding the melting
and demonetization of national coins; the provisions of the law of April 3, 1918, and of laws
subsequently enacted relative to prohibition of
exports of Bank of France notes in excess of a
specified amount; the law of August 7, 1926,
concerning operations preliminary to currency
stabilization as well as all other laws inconsistent with the present enactment.
From the promulgation of the present law,
ARTICLE 13
all gold and silver coins minted prior to the
date of this promulgation shall cease to be legal
The following agreements are hereby aptender between individuals and in payment of proved :
public dues.
(1) The agreement entered into June 23,
1928, between the Premier and Minister of
ARTICLE 10
Finance, and the governor of the Bank of
The reserves of gold and silver at present France.
held by banks which have received from the
(2) The agreement entered into June 23,
Government the privilege of note issue in the 1928, between the Premier and Minister of
colonies and protectorates where the franc is Finance, and the presidents of the administralegal tender, shall be revalued on the basis of tive council and of the finance committee of
the new parity of the currency.
the autonomous fund for the administration of
The Minister of Finance is authorized to national defense bonds and amortization of the
conclude agreements with the banks of issue public debt.
designated above, fixing the conditions under
(3) The agreement entered into June 23,
which the Government shall receive all profits 1928, between the presidents of the adminisfrom revaluation.
trative council and of the finance committee of
the autonomous fund for the administration of
ARTICLE 11
national defense bonds and amortization of
Deposit accounts at the Treasury which the public debt, and the governor of the Bank
were opened with the central treasury fund of France.
These agreements are exempt from stamp
under order of the Minister of Finance of
and registration taxes.
December 17, 1920, are hereby discontinued.
The present law, considered and adopted by
Article 104 of the law of April 19, 1926, is
hereby repealed, except as regards deposits the Senate and Chamber of Deputies shall be
made by associations which are required or enforced as a law of the State.
Executed at Paris, June 25, 1928.
permitted to deposit their available funds with
GASTON DOUMERGTTE.
the Treasury.
The preceding provisions shall become effectBy the President of the Republic:
ive July 1, 1928.
RAYMOND POINCARE,
The Premier and Minister of Finance.
ARTICLE 12
The law of the seventeenth germinal, year
XI, 1 concerning the minting and assaying of
coins is hereby repealed.
The following laws are hereby repealed: The
law of November 15, 1915, prohibiting exportation of gold bullion, gold coin, and silver coin;
the law of April 12, 1916, prohibiting exportation of silver bullion; the decrees of April 1,
1915, and December 2, 1921, prohibiting exJApr. 6, 1799.
CONVENTION BETWEEN THE PREMIER AND MINISTER OF FINANCE, AND THE GOVERNOR OF
THE BANK OF FRANCE
Between the undersigned: M. Raymond
Poincare, Premier and Minister of Finance,
acting in the latter capacity, and M. Emile
Moreau, governor of the Bank of France, duly
authorized by vote of the general council of the
Bank of France, on June 23, 1928, the following
agreement has been reached:
572
FEDERAL RESERVE BULLETIN
AUGUST, 1928
ARTICLE 1
ARTICLE 4
The Bank of France shall proceed to the
revaluation of—
(1) The items of its cash reserve entered in
its weekly condition statement under the captions, "Gold held in France," "Unpledged gold
and freely available funds held abroad," and
"Silver."
(2) The foreign exchange holdings bought
by it for the national treasury under the law of
July 22, 1926, and the convention of July 24,
1926, as also under letters of August 25 and 26,
and September 6 and 8, 1926.
(3) Holdings of gold, silver, and foreign exchange acquired under arrangements made
in conformity with the convention of Septem-'
ber 16, 1926, and representing acquisitions of
coin, bullion, or foreign exchange, effected by
the bank under the law of August 7, 1926, in
respect to operations preliminary to currency
stabilization.
This revaluation shall be made:
(1). In the case of gold, at the new monetary
parity, according to actual weight of coin and
bullion, deduction being made for cost of coinage at*the new rate charged by the mint.
(2) In the case of silver, according to actual
weight of the coin, at the price of silver as
quoted on the international metal market on
the day of the promulgation of the law effecting
monetary reform and approving the present
convention.
(3) In the case of foreign exchange bills,
at their new mint parities on the basis of gold.
The net increase in value resulting from the
revaluations and valuations provided for in
articles 1 and 2 above, as well as the available
balance of the reserve and amortization account
after entering credits as provided in article 3,
shall be appropriated on the books of the bank
to complete amortization of—
(1) The balance of temporary advances extended by the bank to the State under the
law of August 5 and December 26, 1914; July
10, 1915; February 16 and October 4, 1917;
April 5 and June 7, 1918; March 5 and July 7,
1919; April 5, June 27, November 23, and
December 4, 1925.
(2) The sum of 1,349,601,215.22 francs included in the total, 1,401,549,429.63 francs, at
which figure the "gold abroad, not available"
is entered in the reserve account.
(3) The debit balance of the provisional
account established by article 3 of the convention of September 16, 1926, ratified by the law
of August 7, 1926.
ARTICLE 2
The Bank of France shall evaluate, on the
basis established in the last paragraph of article
1, the foreign exchange sold by it under repurchase agreement. The difference between this
value and the price fixed by the loan agreements for the repurchase of the foreign exchange
bills in question shall be added to or deducted
from the net increase in value resulting from
the revaluations provided for in article 1.
ARTICLE 3
The reserve and amortization account established by article 5 of the convention of September 21, 1914, and ratified by the law of December 26, 1914, shall be credited to the annexed
account for interest on the amortization
account, which is payable to the Government
under the amendment of March 11, 1918, to
the convention of October 26, 1917, ratified by
the law of December 20, 1918.
ARTICLE 5
The unappropriated surplus shall be carried
on the books of the bank to the credit7 of the
current account of the public Treasur} .
•
ARTICLE 6
The treasury bonds held by the bank under
the convention of February 3, 1927, which was
ratified by the law of March 15, 1928, shall
cease to bear interest for the profit of the Bank
of France. They shall be administered by the
Autonomous Fund for the administration of the
national defense bonds and amortization of
the public debt, which shall collect for their
amortization:
(1) A budgetary annuity equal to 1 per cent
of the amount of bonds not yet redeemed.
(2) Profits resulting from coinage of subsidiary silver coins and not allocated to building
up those funds which shall be created for the
maintenance of the monetary circulation.
(3) From August 1, 1928, 50 per cent of the
amount of the proceeds which are taken as the
basis for calculating the tax as provided in
article 5 of the law of November 17, 1897, and
article 4 of the convention of October 26, 1917,
and are in excess of the sum of 650,000,000
francs. This appropriation shall not be in
addition to the former tax, which shall thereafter cease to be due upon proceeds in excess of
650,000,000 francs.
573
FEDERAL RESERVE BULLETIN
AUGUST, 1928
(4) Proceeds of eventual recoveries under
credits extended to the Russian Government
represented by the old bonds discounted for
advances of the French Government to foreign
governments, and of the credit of 499,087,368.50 francs, resulting from the convention
concluded February 2, 1915, between the Bank
of France and the Russian State Bank.
After complete amortization of the bonds the
above appropriation shall accrue to the benefit
of the general budget of the Government.
If on the other hand, an unpaid balance
should remain upon the expiration of the charter of the bank it shall be liquidated by the
Government.
ARTICLE 7
ARTICLE 10
The bank shall retain provisionally among
its assets up to the amount at which they have
been revalued, under the conditions provided
in article 1, holdings of silver coin represented
at present in its weekly condition statement
under the caption "Reserves of the bank/ 7
The bank engages to transfer these silver coins
to the Government at the revaluation price for
the minting of subsidiary silver coins of the
new types according to the requirements of the
mint. This transfer should be entirely completed by December 31, 1929, at the latest.
The Bank of France shall deliver to the mint
for recoinage the above-mentioned silver coins
upon order of and for account of the Government. It shall receive from the mint coins of
the new standard. The amount of profit
accruing from the reminting shall be appropriated according to the provisions of article 6
of the present convention.
From the promulgation of the law ratifying
the present convention and without prejudice
to the provisions of the treaties and conventions
of June 10, 1857, March 29, 1878, October 31,
1896, and November 11, 1911, the Bank of
France shall grant to the Government a loan
without interest of 3,000,000,000 francs, the
ARTICLE 11
total amount of which shall immediately be
placed to the credit of the current account of
The following measures are hereby annulled:
the public Treasury.
(1) The conventions and articles following,
As guaranty of reimbursement of this loan relative to the temporary advances of the bank
a treasury bond maturing on December 31, to the Government: The two conventions of
1945, shall be delivered to the Bank of France. November 11, 1911, ratified by the law of
August 5, 1914; the convention of September
21, 1914, ratified by article 13 of the finance
ARTICLE 8
law of December 26, 1914; the convention of
With exception of the provisions of the May 4, 1915, ratified by the law of July 10,
amendment of May 21, 1928, to the convention 1915; the convention of February 13, 1917,
of April 30, 1928, the operations and arrange- ratified by the law of February 16, 1917; the
ments provided for in articles 1 to 7 above shall convention of October 2, 1917, ratified by the
become effective immediately upon promulga- law of October 4, 1917; articles 2 and 3 of the
tion of the law making effective the currency convention of October 26, 1917, ratified by
reform and ratifying the present convention. article 2 of the law of December 20, 1918; the
The account of temporary advances of the convention of April 4, 1918, ratified by the law
bank to the Government, the account of French of April 5, 1918; the convention of June 5,
treasury bonds discounted for advances of the 1918, ratified by the law of June 7, 1918; the
French Government to foreign governments, convention
of February 13, 1919, ratified by
the reserve and amortization account and the the law of March
5, 1919; the convention of
related interest account shall thereafter be April 24, 1919, ratified
by article 1 of the law
finally closed.
of July 17, 1919; the convention of April 14,
ARTICLE 9
1920, ratified by the law of April 22, 1920; the
The Bank of France shall have authority to convention of December 29, 1920, ratified by
purchase bills and short-term securities for the the law of December 31, 1920; the convention
account of such foreign banks of issue as shall of April 7, 1925, ratified by the law of April
have opened current accounts on its books. 15, 1925, and by article 2 of the law of June
Interest on these investments shall be placed 27, 1925; the convention of June 30, 1925, conto the credit of the current account of the for- cluded in accordance with article 2 of the law
eign banks of issue. The Bank of France may, of June 27, 1925; the convention of November
at the request of these institutions, rediscount 24, 1925, concluded in accordance with the law
the bills and securities in question, which it i: of November 23, 1925; the convention of December 7, 1925, concluded in accordance with
authorized to guarantee.
574
FEDERAL RESERVE
BULLETIN
AUGUST, 1928
article 4 of the law of December 4, 1925; article
ARTICLE l
5 of the convention of June 13, 1927, concluded
The Autonomous Fund for the administration
in accordance with the decree of the same day; of national defense bonds and amortization of
article 5 of the convention of April 30, 1928, the public debt shall, immediately upon promulconcluded in accordance with the decree of the gation of the law approving the present consame day.
vention, be charged with the service of amor(2) Articles 4, 5, and 6 of the convention of tization of treasury bonds in a total amount
December 22, 1924, ratified by article 1 of the of 5,930,000,000 francs held by the Bank
law of December 31, 1924, and articles 3 and of France under the convention of February 3,
4 of the convention of July 24, 1926, concluded 1927, which was ratified bv the law of March
in accordance with article 1 of the law of July 15, 1928.
22, 1926.
ARTICLE 2
(3) The convention of September 16, 1926,
Until the total amount of these bonds shall
concluded under article 4 of the law of August have been redeemed, the Autonomous Fund
7, 1926, in respect to operations preliminary to shall receive and shall apply to their amorcurrency stabilization.
tization :
(4) Article 2 of the convention of February
(1) A budgetary annuity equal to 1 per
3, 1927, ratified by the law of March 15, 1928. cent of the amount of bonds not yet redeemed.
Read and approved.
(2) Profits resulting from coinage of subsidiary silver coins and not allocated to building
RAYMOND POINCARE,
up those funds which shall be created for the
The Premier and Minister of Finance.
maintenance
of the monetary circulation.
EMILE MOREAU,
(3) From August 1, 1928, 50 per cent of the
The Governor of the Bank of France.
amount of the proceeds which are taken as the
Executed at Paris, June 23, 1928.
basis for calculating the tax as provided in
article 5 of the law of November 17, 1897, and
CONVENTION BETWEEN THE PREMIER AND article 4 of the convention of October 26,
MINISTER OF FINANCE AND THE AUTONO- 1917, and are in excess of the sum of 650,000,000
MOUS FUND FOR THE ADMINISTRATION OF francs.
NATIONAL-DEFENSE BONDS AND AMORTIZA(4) Proceeds of eventual recoveries under
TION OF THE PUBLIC DEBT
credits extended to the Russian Government
represented by the old bonds discounted
Between the undersigned: M. Raymond for advances of the French Government to
Poincare, Premier and Minister of Finance, foreign governments, and of the credit of
acting in the latter capacity, and MM. Lebrun 499,087,368.50 francs resulting from the conand Milan, senators, presidents of the adminis- vention concluded February 2,1915, between the
trative council and of the finance committee of Bank of France and the Russian State Bank.
the Autonomous Fund for the administration of
ARTICLE 3
national defense bonds and amortization of the
public debt, acting by virtue of the powers
In case complete amortization of the bonds
conferred upon them by the administrative shall not have been effected before December
council and the finance committee of this in- 31, 1945, the balance remaining on that date
stitution, under the law of August 7, 1926; the shall be paid to the Bank of France by the
constitutional law of August 10, 1926, supple- Government.
menting the constitutional law of February 25,
Read and approved.
1875, in respect to the organization of public
RAYMOND POINCARE,
powers; the convention agreed upon June 23,
The Premier and Minister of Finance.
1928, between the Premier and Minister of FiA. LEBRUN,
nance, and the governor of the Bank of France;
The
President
of the Administrative
the decisions of June 20, 1928, of the adminisCouncil of the Autonomous Fund.
trative council and of the finance committee of
F. MILAN,
the autonomous fund for the administration of
The President of the Finance Committee
national defense bonds and amortization of the
public debt; the following agreement has been
of the Autonomous Fund.
reached:
Executed at Paris, June 23, 1928.
575
FEDERAL RESERVE BULLETIN
AUGUST, 1928
CONVENTION BETWEEN THE AUTONOMOUS FUND
FOR THE ADMINISTRATION OF THE NxlTIONAL
DEFENSE BONDS AND AMORTIZATION OF THE
PUBLIC DEBT, AND THE BANK OF FRANCE
Between the undersigned: MM. Lebrun and
Milan, Senators, presidents of the administrative council and of the finance committee of the
autonomous fund for the administration of
national defense bonds and amortization of
the public debt, acting by virtue of the powers
conferred upon them by the administrative
council and the finance committee of this
institution, and M. Moreau, governor of the
Bank of France, duly authorized by vote of the
general council of June 23, 1928, the following
agreement has been reached:
ARTICLE 1
In accordance with the two conventions of
June 23, 1928:
(1) Between the Premier and Minister of
Finance, and the presidents of the administrative council and of the finance committee
of the autonomous fund for the administration
of national defense bonds and amortization
of the public debt;
(2) Between the Premier and Minister of
Finance, and the governor of the Bank of
France;
The Autonomous Fund for the administration
of national defense bonds and amortization of
the public debt shall, from the promulgation
of the law approving the aforesaid conventions,
be charged with the amortization of treasury
bonds amounting to a total of 5,930,000,000
francs held by the Bank of France under the
agreement of February 3, 1927, which was
ratified by the law of March 15, 1928.
ARTICLE 2
order to influence the volume of credit and to
maintain control of its circulation; it may
likewise repurchase such bonds before their
maturity.
The difference between the selling price of
these bonds and their repurchase price, or
their reimbursement price at maturity, shall be
charged to the Bank of France.
ARTICLE 4
The Autonomous Fund shall collect the
revenues specified below, and shall allocate
them in proportion to the amount collected
to the amortization of bonds of the Fund
designated by article 2 above:
(1) Budgetary annuity equal to 1 per cent
of the amount of bonds not yet redeemed, as
provided for under article 6 of the convention
of June 23, 1928, between the Premier and
Minister of Finance, and the governor of the
Bank of France.
(2) Profits resulting from coinage of subsidiary silver coins and not allocated to building
up those funds which shall be created for
the maintenance of the monetary circulation.
(3) From August 1, 1928, 50 per cent of the
amount of the proceeds which are taken as the
basis for calculating the tax of the Bank of
France to the Government, as provided in
article 5 of the law of November 17, 1897, and
article 4 of the convention of October 26, 1917,
and are in excess of the sum of 650,000,000
francs.
(4) Proceeds of eventual recoveries under
credits extended to the Russian Government,
represented by the old bonds discounted for
advances of the French Government to foreign
governments, and of the credit of 499,087,368.50 francs resulting from the convention
concluded February 2, 1915, between the Bank
of France and the Russian State Bank.
In return for each amortization payment the
Bank of France shall deliver to the autonomous
fund bonds of the fund in an equal amount for
cancellation.
Read and approved.
In exchange for the treasury bonds designated in article 1, above, the autonomous fund
shall deliver to the Bank of France bonds of
the fund bearing no interest and having a
maturity of three months, in a maximum
amount equal to that of the treasury bonds
indicated above.
A. LEBRUN,
These bonds of the fund shall be kept at
the Bank of France, drawn in blank or to The President oj the Administrative Council
of the Autonomous Fund.
bearer, and issued in denominations of not
EMILE MOREAU,
less than 100,000 francs.
The Governor oj the Bank oj France.
ARTICLE 3
The Bank of France shall have the right to
sell in the open market the bonds designated
in article 2 above, if it seems expedient, in
F. MILAN,
The President oj the Finance Committee,
oj the Autonomous Fund.
Executed at Paris, June 23, 1928.
576
FEDERAL RESERVE BULLETIN
AUGUST, 1928
NEW BALANCE SHEET OF THE BANK OF FRANCE
The statement published below has been
made by the Bank of France in explanation of
its new balance sheet. A copy of the first
of the new balance sheets to appear, that of
June 25, is given at the close of the statement.
STATEMENT OF THE BANK
The weekly balance sheet published by the
Bank of France on Thursday, June 28, is the
first to be issued under the new monetary law
of June 25, 1928, and the conventions put into
effect by that law. The condition statement
has undergone certain additional modifications
because the bank took the opportunity offered
by the monetary reform to make very considerable changes in the actual content of its balance
sheet for the sake of simplification, clearness,
and precision.
Among the assets, the gold reserve naturally
shows a very great increase, by reason not only
of its revaluation under the conditions established by the convention of June 23, but also of
the incorporation of the total gold reserve
which had previously been included either in
the items, " Purchases of gold, silver, and
foreign exchange/7 or in the item "Miscellaneous assets."
The item "Gold reserve" now includes
under this one caption the total amount of
gold held by the bank, as follows: (1) Gold
included in the former reserve, previously
valued at the currency parity of the year XI;*
(2) gold which the bank has purchased since
August, 1926, either from the public in the
form of coin, or in the form of bullion in foreign
markets; and more especially in the American
market through the facilities afforded to it,
in particular by the Federal Reserve Bank of
New York, whose friendly cooperation in this
respect deserves to be emphasized.
On the other hand, the reserve item no
longer includes anything but actual gold—
excluding all holdings of foreign exchange—
and freely available gold—excluding all gold
under pledge. Foreign exchange, the value of
which was previously included under the caption "Free gold and freely available gold values
held abroad," has been placed under various
accounts in foreign exchange. Gold abroad not
available, which was previously included in the
total gold reserve at about 1,400,000,000 francs
at the former gold parity, has been completely
amortized—to the amount of about 1,350,000,000
francs, under the convention of June 23, by the
increase in value resulting from the revalua11799.
tion of the reserve; the remainder out of the
bank's own assets.
It is interesting to observe that, notwithstanding these segregations and amortizations,
as the result of the policy of strengthening the
gold reserves followed by the bank during
recent months, the total of this reserve at
present, allowing for the new value of the franc,
amounts to a sum equal to or even larger than
that of about 5,543,000,000 francs at which the
gold reserve, valued at the former parity, has
stood among the assets of the bank.
Silver holdings, the value of which is no
longer to be counted in the reserve, and which
the bank is pledged to deliver to the Government for the minting of new coins of the subsidiary currency, has been carried, at the amount
at which it was revalued, to a special account
called "Silver coins demonetized for reminting."
Holdings of foreign exchange built up by the
bank, the greater part of which had hitherto
been included in "Miscellaneous assets," have
been plainly shown in their full amount,
regrouped and distributed according to their
degree of liquidity between the two items
"Funds available at sight abroad" and "Negotiable bills (foreign bills)."
Amounts of foreign exchange which have
actually been loaned, and of which the bank is
therefore not in possession for the time being,
and which for that reason have heretofore not
been shown among its assets, will be shown there
henceforward for the sake of a complete record,
in a special account, the exact value of which will
also be carried as a corresponding liability item.
Finally, it should be noted that as a result of
the operations authorized by the convention of
June 23, and effective since the day on which
the monetary law was promulgated, the account
of advances granted by the bank to the Government from 1914 to 1925 has been liquidated and
closed, and that it has disappeared from the
balance sheet.
The same thing is true of the account
"French treasury bonds discounted for advances of the French Government to foreign
governments." The 5,930,000,000 francs of
bonds which were formerly shown on the
balance sheet have been taken over, as is well
known, by the autonomous sinking fund, which
is pledged to deliver to the bank in exchange
negotiable bonds of the fund for an equal
amount. The amount of this portfolio, the
gradual amortization of which is guaranteed
by appropriation of special revenues, has been
shown under the new caption "Negotiable
bonds of the autonomous sinking fund."
AUGUST, 1928
577
FEDERAL RESERVE BULLETIN
The liabilities side of the new balance sheet
calls for only two comments. The amount of the
amortization account has been absorbed into the
amortization of the advances of the bank to the
Government. It will continue to exist, however,
until August 1 next, the bank having undertaken
on May 21 last to pay into it the interest on
foreign exchange acquired from January 1 to
August 1,1928, to be credited to the Government,
preliminary to arranging the conversion loan.
On the other hand, since the gold reserve of
the bank must henceforward always amount to
at least 35 per cent of the combined note circulation and liabilities on current account, it has
seemed necessary to group under the same
inclusive caption the various items of the balance sheet which come under this definition—
that is, notes in circulation, the current account
of the Treasury, that of the autonomous
sinking fund (which has been shown under a
separate caption), and, last, current deposits
of individuals and other demand liabilities
(arrears of securities on deposit, dividends to
be paid, promissory notes, checks in circulation, etc.). The total of the liabilities thus
given in detail on the balance sheet is shown
in a special table at the bottom of the balance
sheet, together with the ratio of the gold reserve to this total, so that the difference between this ratio and the legal ratio of 35 per
cent can be seen at a glance.
Finally, in the interest of simplicity and
precision, the bank has decided henceforth to
make uniform for both the head office and the
branches the dates on which the statement of
accounts shall be reported. Hitherto the
balance sheet issued each Thursday was made
up by compiling the condition statement of the
head office as of Wednesday evening and of the
branches as of the preceding Friday. This
method has been given up. From now on the
balance sheet, which will be published each Thursday, will give the condition statement of the
Paris office and of the branches for the same
date as of the preceding Saturday morning.
As a single exception to the above arrangement the balance sheet of Thursday, June 28,
was compiled for the head office, as well as for
the branches, as of Monday, June 25, the date
on which the measures giving effect to the
monetary reform came into force.
CONDITION STATEMENT OF THE BANK OF FRANCE
(Amounts in francs]
June 25, 1928
ASSETS
Gold reserve (coin and bullion)
28, 934, 885, 268. 85
Silver and copper coins
233,164. 27
Postal current accounts
699, 822, 920. 51
Funds available at sight abroad
15, 984, 600, 741. 32
Foreign exchange loaned
9, 777, 767, 643. 00
Advances on gold bullion and coin
37, 258, 500. 00
Bills:
Commercial bills discounted in
France
2,955,453,811.32
Commercial bills discounted
2, 972, 422, 601. 21
abroad
16,968,789.89
Negotiable bills bought in
France
Negotiable bills bought abroad.10, 544, 906, 332. 68 40, 544, 906, 332. 68
Advances against securities
1, 846, 774, 369. 43
Negotiable bonds of the autonomous sinking fund... 5, 930,000,000. 00
Loans without interest to the Government
3,200, 000,000.00
(Law of June 9,1857; convention of Mar. 29,1878;
law of June 13,1878, extended; laws of Nov. 17,1897,
Dec. 29, 1911, Dec. 20, 1918, and June 25, 1928.)
Rentes earmarked for special purposes
112,980, 750.14
(Law of May 17,1834; decrees of Apr. 27 and May
2, 1848; law of June 9, 1857.)
Bank buildings and equipment
219, 327,419. 32
Silver coins demonetized for reminting
784,824, 534.42
Miscellaneous assets
1,239,422, 613. 32
Total
82,285,226,858. 46
LIABILITIES
Capital
182, 500, 000. 00
Profits in addition to capital
272, 696,110. 93
(Laws of June 9, 1857 and Nov. 17, 1897.)
Legal liquid reserves
22,105, 750.14
(Law of May 17,1834; decrees of Apr. 27 and May
2, 1848; law of June 9, 1857.)
Nonliquid reserve
_
4,000,000. 00
Demand liabilities:
Notes in circulation
58, 772,461,105. 00
Current account of the Treasury
5,078,688,970.25
Current account of the autonomous sinking fund
1,934,117,189.24 12, 757, 248, 720. 95
Other current accounts and deposits
5, 471, 052, 901. 62
Other demand liabilities
273,389, 659.84
9, 777, 767, 643. 00
Liabilities arising from foreign exchange loaned
496,447, 528.44
Miscellaneous liabilities
Total
82. 285, 226, 858. 46
Total demand liabilities
71, 529, 709,825.95
Ratio of gold reserve to demand
liabilities
40.45
ANNUAL REPORT OF THE NATIONAL BANK OF HUNGARY
The annual report of the National Bank of
Hungary was made to the board of directors on
February 6, 1928. Part of the English version
of the report furnished by the bank is as follows:
Economic situation.—The i n t e r n a t i o n a l
movement of capital and goods, and the
factors affecting these, deserve particular consideration because during the second half of
the year the weakness in our otherwise favorable economic situation was due to our foreign
balance of merchandise and of payments.
The chief concern of the National Bank of
Hungary, which is responsible for the stability
of the currency, is the effect of these balances
on the value of the monetary unit. Since
there are many possible ways of restoring equilibrium to the balance of payments, and since
every nation holds large assets on which in an
emergency it can realize in the international
market, we believe that only a long-continued
and radically unfavorable development of the
balance of payments is likely to affect the
stability of the currency. Nevertheless we
need to be cautious not only in availing ourselves
578
FEDERAL RESERVE BULLETIN
of foreign loans and in restricting their employment to productive uses, but also in adjusting our consumption more nearly to our present
production. We should also use every means
at our disposal to further the accumulation of
capital at home, and to afford private enterprise greater opportunities for activity.
Credit conditions.—The relief experienced
in the credit market during 1926 continued
during the opening months of 1927. During
April the rates of interest sank to their lowest
level; in May. however, partly under the
influence of events abroad and partly in consequence of the increased demand for capital,
the tendency was reversed. During the remainder of the year rates showed a rise, which
in the case of prime commercial bills amounted
to about 1 per cent as compared with the lowest
rates touched. This movement was also furthered by the increase in economic activity,
and by the difficulty of placing Hungarian
mortgage bonds abroad as the result of the
temporary reserve of the American money
market. The accumulation of domestic capital
was insufficient to offset these adverse factors.
For although the increase in deposits makes a
favorable showing, the fact that, despite a
relatively brisk course of business, only a few
joint-stock companies increased their share
capital, even these increases being effected to a
very considerable extent with the aid of foreign
funds, and more particularly the fact that the
amount of fixed interest-bearing securities
which could be placed in the home market was
insignificant, leads to the conclusion that the
process of accumulation of domestic capital is
a very slow one. Nor can we expect any improvement in this respect to result from the
efforts to mitigate credit conditions by extending the bases of credit.
Under the circumstances outlined above, foreign capital has to be resorted to on an increased
scale in order to meet the credit demands of our
productive enterprises. During the year foreign capital to the amount of some 240,000,000
pengo entered the country in the form of longterm bond loans. Of this amount the greater
part was taken up by municipalities and other
public corporations; the remainder, which
served predominantly agricultural purposes,
being negotiated by private enterprise.
Not only these long-term loans but our shortterm foreign indebtedness also increased. In
addition to the direct credits granted to our importers—the amount of which has in all probability expanded as the result of the growth of
our imports—increase in the amount of our
other short-term credit during the year under
review may be estimated at between 150,000,000
AUGUST, 1928
and 200,000,000 pengo. This is a phenomenon
by no means desirable from the point of view of
the stability of our economic position; we may,
however, note as a favorable circumstance the
fact that this abundance of offers of credit, and
more particularly the favorable terms on which
the offers are made, indicate that foreign capital
has confidence in the country and in its banking
organization.
During the year our banking organization in
general showed a further development. The
half-yearly balance sheets issued by the several
institutions bear witness to an increase of
business opportunities. Embarrassments experienced in some instances were the result of
excessive participation in industrial and commercial transactions, so that reduction of
investments along certain lines on the part of
weaker banking institutions must be regarded
as a healthy process.
During the year, too, the National Bank continued, as it will do in the future, to concentrate
its efforts on developing in the credit market
such a situation as would lead to a reduction in
rates of interest. Unfortunately, the circumstances outlined above—in particular the
increased demand for credit and the insuffiency
of the capital accumulated in the country—
raised obstacles in the way of a realization of
this purpose.
.Stock exchange.—The change which took
place during the spring in the money market
was reflected in the volume of transactions on the
stock exchange. During the opening months of
the year the upward tendency which began in
the summer of the preceding year continued.
The turnover reached its culmination in the
month of April; subsequently, however, there
was a considerable decrease; while during the
closing months of the year the course of business in the securities market w^as quiet, at relatively favorable prices. The introduction of the
quotation of market prices in terms of pengo,
and also the contraction of shares following on
the revaluation of the balance sheets, was
effected without the slightest disturbance.
Prices.—The upward tendency characteristic of the first half of the year was reflected in
the development of prices. Wholesale prices
continued to follow the upward movement
which had set in during the autumn of the
previous year; and reached their peak in
August, being then about 10 per cent in excess
of those prevailing a year earlier. A corresponding advance was in evidence in the cost
of living, to which the gradual abolition of restrictions governing house rent, etc., contributed.
Discounts.—The renewed briskness of production and trade outlined above could not
AUGUST, 1928
FEDERAL RESERVE BULLETIN
fail to affect the condition of the National
Bank; the effect found expression first in the
advance of the amount of discounts. The
average amount for the whole year represented
by bills and warrants discounted was 57.6 per
cent in excess of that of the preceding year.
During the opening months of the year the
usual seasonal decline did indeed take place;
however, even this decline was of a comparatively limited character. From March until
October the rise in discounts was unbroken, this
being followed in November by a slight decline
and in December by a slight increase, so that
the amount of discounts reached its highest
level for the year on December 31, when it
stood at 332,100,000 pengo.
The cause of the expansion must, therefore,
be sought primarily in the general resumption
of business activity which was independent of
seasonal factors, and in the demand for credit—
or rather in the increased demand for means of
payment—resulting therefrom. Under such
circumstances it did not seem justifiable to
restrict credit, particularly in view of the fact
that the expansion of production had created
a larger supply of eligible bills. There were
no signs of any such growth of speculation as
might have rendered it advisable to make
credit dearer; nor did any such growth seem
probable even during the later stages of the
recovery, for there had been a considerable
setback on the German exchanges at the beginning of May. Apart from the legitimate
increase of the demands of production, it was
impossible to ignore the fact that the gradual
repayment of the State debt due to the bank,
and the increase of the State deposits concentrated in the hands of the bank would tend to
reduce the note circulation. It appeared a
justifiable procedure to counteract this effect
by an elastic issue of notes based on discounts,
particularly so since the expansion of the
amount of discounts does not in itself affect the
purchasing power of the currency, but affects
it only indirectly through the amount of means
of payment in circulation. The amount of the
means of payment expressing actual purchasing
power did not exceed the limits justified by the
conditions of production and trade. These
considerations guided the management of the
bank in leaving the official bank rate unchanged
throughout the year at the original level of
6 per cent, though several central European
banks of issue raised their rates, and though
here and there signs of excess were perhaps in
evidence in the general economic recovery of the
country.
In taking this decision the management of
the bank was guided further by the considera-
579
tion that although raising of the bank rate
would check the endeavors to obtain bank
credit, it would, nevertheless, increase the
number of those persons in quest of credit
who would be able to obtain loans abroadfon
more advantageous terms; and that would in
its turn have only had the still less desirable
result of increasing short-term foreign loans
and weakening the control of the money
market by the bank.
Metal and foreign exchange reserve.—During the first half of the year under review the
metal and foreign exchange reserve of the bank
declined somewhat. The metal reserve fell
from 290,800,000 pengo at the close of 1926, to
less than 260,000,000 pengo in March, remaining at or about this level until the second half
of July, when it sank to the lowest point—
253,400,000 pengo—recorded during the year.
In the second half of the year, however, it
began to increase once more, so that at the
close of the year it figured in the bank's balance
sheet at the amount of 317,500,000 pengo.
The relatively slight fluctuations of the metal
and foreign exchange reserve recorded during
the year prove that our international payments were cleared throughout the year without difficulty. The introduction of the new
monetary unit was effected without disturbing
international relations; and no complications
whatsoever accompanied the introduction of
the quotation of the pengo in foreign markets.
During the year our business in foreign means
of payment was on a larger scale than in the
previous year, as a natural consequence of the
revived activity of trade and of credit transactions.
The ratio of gold in our metal and foreign
exchange reserve continuously increased. The
stock of gold gradually increased until August 7,
rising from 168,800,000 to 196,800,000 pengo,
the highest figure attained during the year, and
remaining near that level until the close of the
year. The proportion of gold in the aggregate
metal and foreign exchange reserve rose during
the year from 58 to 62 per cent.
State debt to the bank.—The agreement concluded during 1926 relative to the State debt
to the bank—intended to hasten the repayment of the said debt—resulted in a further
reduction from 134,700,000 to 111,400,000
pengo, the sum extinguished being therefore
23,300,000 pengo during 1927.
Note circulation.—In judging the volume of
note circulation and comparing it with that of
the previous year, we must allow for the fact
that part of our note circulation has been
gradually replaced by token coins during the
course of the year 1927 and therefore take
580
FEDERAL RESERVE BULLETIN
account of the note and token-coin circulations
combined. The aggregate yearly average
amount of actual means of payment in circulation was during the year 1927 15.9 per cent
in excess of the note circulation of the previous
year, whereas, if we leave out of account the
token coins, the difference is only 6.6 per cent.
We shall find a somewhat larger increase, if
we also take into account the item of the socalled virtual note circulation—i. e., the current
accounts and other liabilities payable on demand. For the yearly average aggregate
amount of the actual and virtual note circulation showed an increase of 13.7 per cent or,
including the circulation of token coins, of
19.7 per cent, as compared with that of the
previous year. We must, however, not ignore
the fact that this relatively greater increase of
the virtual note circulation is to be attributed
mainly to the increase of State deposits.
These credit balances of the State, although
the rules relating to cover are identical, can not
be regarded as means of payment in the same
sense as are bank notes or current account
credit balances of private individuals, since
they play a comparatively slight role in the
work of effecting payments and are therefore of
far less importance as a factor in the purchasing power of the currency.
During the course of the year 1927 the
proportion of cover of our note circulation
prescribed by the statutes was on a lower level
than in the previous year; indeed, as from the
end of April it sank below 50 per cent. As
compared with the proportion of 50.17 per cent
recorded at the beginning of the year, its lowest
point was reached on October 31, when it was
46.15 per cent; while on the last day of the
year it stood at 46.41 per cent. This decline
AUGUST, 1928
is to be attributed not only to increase of the
actual and virtual note circulation but also to
the fact that the State debt to the bank—the
amount of which is to be deducted from that
of the note circulation requiring cover—was
considerably reduced during the course of the
year.
The new pengo currency.—The replacement
by our new pengo notes of the State currency,
notes expressed in terms of crowns, which was
begun on December 27, 1927, was effected with
a rapidity that exceeded all expectations. A
year's experience has established the fact that
people very soon accustomed themselves to
calculating in terms of pengo and to the use of
the means of payment expressed in terms of
pengo currency.
The various kinds of token coins also, as
well as the pengo notes, were in general favorably received. For some months past our
circulation of token coins has amounted to
about 40,000,000 pengo, a fact which seems to
show that that amount is sufficient for present
requirements.
Cooperation of banks of issue.—The cooperation of banks of issue of the world,
which is becoming closer every year and has
played no small part in the work of remedying
the disastrous financial situation resulting
from the Great War, yielded beneficial results
during the past year. As in the case of reconstruction of the public finances of Belgium,
the stabilization by law of the Polish and
Italian currencies afforded an opportunity for
cooperation of banks of issue, and it is giatifying to be able to record that the National
Bank of Hungary cooperated with its fellow
institutions in foreign countries in the work of
giving effect to these two stabilization schemes.
ANNUAL REPORT OF THE BANK OF NORWAY
Director N. Rygg addressed the annual fishing, and shipping. There are still adjustmeeting of the Bank of Norway on February ments to be made not only in specific lines of
20, 1928. Part of the address is as follows:
production, but as well in the interrelations
The year which has passed since the board of different branches.
of directors made their last annual report has
The fishing industry.—During the spring
been in many respects a difficult one, although one could discern several bright lights in the
developments have been of more than usual in- dark picture. Of the industries that had been
terest. At this time last year depression was the particularly depressed one may mention fishing.
keynote, and prospects in many of our major The price of "ldipfisk" reached its lowest level
industries were far from encouraging. The in April, and improved gradually thereafter,
year 1927, also, must be characterized as a bad with the exception of one slight setback,
year. But it is not sufficient to emphasize reaching a satisfactory level toward the close
this fact. It is of great importance that we of the year when storage supplies were diminishexamine the tendencies that have been mani- ing. Taken as a whole the year has proved
fested and determine their direction. Depres- more favorable than had been anticipated for
sion in our chief industries a year ago weighed producers and exporters. Profit has been fair
with equal pressure on agriculture, forestry, and the situation has improved. Salmon fish-
AUGUST, 1928
FEDERAL RESERVE BULLETIN
ing likewise improved after the spring season.
In spite of the abnormally low prices which
have been obtained in foreign markets, the
past year has been one of normal and satisfactory operation for fishermen as well as for
exporters. This has meant much in our
national economy.
Agriculture.—Agriculture, which is exceedingly important in our national economy, is at
present working under severe handicaps. We
are quite aware that it is not the home market
only which influences this industry, but that
the agricultural depression is of an international
scope. Financial returns under the high costs
of production are very low, and the situation
must be characterized as serious.
Unemployment and insolvencies.—Unemployment continues in large volume, but there
has been a considerable decrease since last summer. Another indication of improved conditions is found in the decrease in business
failures during 1927. The decrease may be
due partly to greater care exercised in extending credit, but even that in itself* is a sign of
improvement.
Industrial depression.—Every branch of
industry has been affected by the depression
of the last few years. Many industries have
gone beyond their strength and obtained credit
beyond reasonable limits. But any close
observer will find a number of major industries
which have planned with care, concentrated on
their task, and used foreign capital with great
judgment and in consequence have weathered
the hard times and are to-day well prepared to
meet competition. I may refer to our shipping, which is of fundamental importance in
our international dealings. Norway's tonnage
is greater than at any earlier period, and
its effectiveness has advanced steadily. Our
merchant marine is in excellent condition and
well prepared to meet foreign competition. Our
fishing industry, also, has shown a satisfactory
expansion. These two great industries have
been especially affected by the international
market situation, which has been depressing.
The money market.—During the first half of
the year the money market was under no strain.
Generally speaking, major industrial concerns
made few or no applications for loans. In consequence loans against prime acceptances were
obtained at as low a rate as 2% per cent. The
situation changed, however, about the middle
of the year, and from then on became tighter.
Explanation for this is found primarily in the
large withdrawal of foreign capital temporarily
deposited in Norway. In the course of the
summer, as the amount of foreign exchange
holdings became normal, restrictions upon
581
capital were abandoned and normal fluctuations occurred. The desire of the bank to
aid industry was evidenced by the increased
number of loans made by the Bank of Norway to
other banks during the latter part of the year.
The discount rate was maintained at 4 ^
per cent during the greater portion of the year—
a low level which was considered to be of great
advantage. In the meantime it became evident that this low level was not in accordance
with existing conditions, and that the low rate
was not attracting capital in the desired
amount. The rate was in consequence raised
to 5 per cent on November 1.
The year 1927 showed considerable changes
in the accounts of the Bank of Norway corresponding to fluctuation in foreign deposits.
Total deposits at the close of 1926 amounted to
304,000,000 crowns and at the close of 1927 to
95,000,000 crowns, a reduction of 209,000,000
crowns. Loans and discounts dropped from
466,000,000 to 260,000,000 crowns, showing a
reduction of 206,000,000 crowns. The reduction was due in greater part to a stable rate of
exchange, but in part to other tendencies.
As will be recalled, due precaution was taken
in purchasing a considerable amount of foreign
securities, which were deposited in the Bank of
Norway, a corresponding amount of Norwegian notes being issued by the bank. B}^
reason of the great care taken in effecting these
transactions no unfavorable disturbances took
place in the money market.
Foreign relations.—Financial relations with
foreign countries again became normal. Before the war bank balances in foreign accounts
had been evenly offsetting. During the war
the net balance grew in favor of Norwegian
banks. After the war it changed in favor of
foreign banks, necessitating greater activities
on the part of the Bank of Norway in order to
counterbalance the effect.
The Bank of Norway joined the movement
of the last few years for greater cooperation
between central banks of different countries.
Exchange rates.—I have on several occasions
pointed out the great misfortune which befalls
a country when there are wide fluctuations in
the exchange value of its currency, such as we
have experienced since the war. Unfortunately, it is rather difficult to remedy such a
situation. All the various remedies proposed
involve certain hardships. During the rapid
rise in the exchange rate of the crown there has
been considerable and widespread complaint
against the hardship of bringing the crown back
to parity. Nothing, however, would be more
disastrous than to refuse to return to parity
by lowering the value of the crown.
582
FEDERAL RESERVE BULLETIN
In reality there was only the choice between
redemption at par value, which has occasioned
complaints of hardships, and establishment of
a new and lower level of value for the crown,
which would have developed still greater opposition, because more people would have been
affected by the latter course.
There is much to be said of the exchange
fluctuations. The year began with the pound
sterling at 19.25 crowns and closed with the
quotation at 18.34. While the period may be
characterized as quiet, the exchange fluctuations have had several interesting features.
At the beginning of the year the Bank of Norway held in considerable amount foreign exchange which had been deposited by foreign
countries, the withdrawal of which was only a
question of time. In addition to these amounts
held on foreign accounts, certain requirements
of Norwegians for foreign exchange were covered with difficulty. There were no unusual
developments during the first two months of the
year, but toward the close of March the threatening labor conflicts occasioned stringency in
the money market. The pound sterling
dropped from 18.60 to 18.80 crowns; this rate
continued practically unchanged from April 8
to May 28. During this time the bank encountered a strong demand for exchange.
The board of directors became convinced
that it would be unfortunate to have the value of
the crown fall by even a few points. A decline
in the exchange value, it was believed, would
create unrest with an unfavorable effect on
business. As the months passed by the several
branches of industry had occasion to adjust
themselves to the new and sustained currency
value. Following heavy withdrawal of capital,
the market became quieter during April and
May, and normal transactions again became
the order of the day. During the latter half
of July there was a strong demand for exchange,
which necessitated considerable selling by the
Bank of Norway. From July 12 to August 11
the rate of exchange was maintained at 18.80
crowns. Some nervousness developed as a
market reaction over maintenance of the rate
unchanged for so considerable a period, since
many apparently were desirous of obtaining
higher quotations. In the meantime it became evident that the value of the Norwegian
crown should advance as a normal effect of prevailing conditions and that a change at any
time might be expected. This happened in
a natural way on August 11 and created a
feeling of relief.
During the months from June to September,
inclusive, the situation on the exchange market
AUGUST, 1928
was favorable. The market took care of itself,
and only occasionally was it necessary for the
Bank of Norway to aid in meeting the constant
withdrawal of foreign capital. Following a
strong demand for exchange the situation
quieted down during August. Toward the end
of the month, however, a notable turn in the
market, with an increased number of sellers,
both Norwegian and foreign, increased the value
of the Norwegian crown during September. On
September 13 the exchange rate of the pound
sterling dropped to 18.41 crowns, with an even
lower rate in the open market. During this
period the Bank of Norway strengthened its
position by buying exchange in the open market
in considerable amounts. Early October also
was characterized by quietness, which must on
the whole be termed a satisfactory development.
There has been during the past few months
some withdrawal of capital, but not to any
great amount. This may be in part accounted
for as a reaction upon the rumor about writing
off the national debt, which gave rise to some
uneasiness and had an unfavorable effect on
the money market. It was necessary to wait
for the cessation of these rumors.
As already noted, the market was quiet. It
continued stable as results of the election became known. The unrest subsided in a few
days because of popular approval of developments. In addition assurance from several
quarters that no radical changes would be attempted had a soothing effect, which would
have been greater if the assurance had been
given at an earlier date. However, one fortunate result was that the foreign demand for
Norwegian exchange had been considerably reduced. There was no very considerable amount
of funds left to withdraw; otherwise the unrest
might have been greater.
October proved to be for us a very expensive
month. Unrest spread over the country like
wildfire and gained ground in small places long
after quiet had been established in some important centers. Later on in the month a considerable portion of the capital which had been
withdrawn was returned again.
In November the Bank of Norway announced that it had secured an exchange credit.
At the same time announcements were made
that several industrial concerns and the
Municipal Bank of Norway had obtained
foreign loans. The rate of exchange on foreign
currency dropped, and this as usual brought a
number of sellers into the market. As a consequence the Bank of Norway could again increase its holdings without hindrance to the rise
in value of the crown. The pound sterling was
AUGUST, 1928
FEDERAL RESERVE BULLETIN
thus quoted at 18.34 crowns on November 25,
and this rate of exchange was maintained to
the close of the year. Demand for exchange
during early November was in considerable
amount, and was followed by sufficient inflow
of capital toward the close of the year.
Savings.—It has been mentioned before, but
it needs repeating, that it is of great importance to our progress that saving be encouraged.
While it is true of other countries that saving
has fallen off during the last few years, the
decrease has been particularly marked in our
case. Saving has been reduced partly because of high cost of living and partly because
of heavy taxation. The investigation of Professor Wadervang shows that the average saving has been materially reduced, and every
effort should be made to bring it back to its
former level. Our progress depends upon
greater production, and it must be the mission
of the banks to secure means, with a reasonable
profit, which will make possible greater production. As a requisite of this advancement, it
583
is necessary that we exercise greater thrift, no
matter how much self-denial is required. This
is a fundamental social necessity. If we neglect to build up and help by refusing to save we
shall bar possibilities of progress. Confidence
will return in proportion as we create a sense
of security.
Developments since the close of the year.—
The first part of January, 1928, was characterized by depression, due to several causes
which intensified the situation, and made it
necessary to exercise great care. During the
first half of the month there was a considerable
demand for exchange, which, however, was
counterbalanced by influx of capital during the
last half of the month. Following this we had
a period of great unrest during which we were
the object of heavy exchange pressure. The
inflow of capital funds from the home market
during this period was insignificant. Because
of these circumstances it was absolutely necessary to increase the discount rate. The board
of directors had no choice.
ANNUAL REPORT OF THE NATIONAL BANK OF RUMANIA
The annual report of the National Bank of
Rumania for 1927, submitted to the general
meeting of shareholders on February 19, 1928,
contains the following section dealing
with the
policy of the bank during the year: 1
The prudent policy of the Government, together with the sacrifices made by taxpayers,
guaranteed a balanced budget for the past
year; and this enabled the Government to
fulfill the obligations w^hich it had assumed in
respect to the National Bank, and consequently
to increase the bank's assets. The chief concern of the bank was to bring the currency
under control—a prerequisite for security in
business operations. As a result of a wise
use of the bank's own assets, and of the gradual
liquidation of the Government debt, we have
been able to maintain the lev at its normal
level and to defend it against the play of
speculative interests. The satisfactory results of this policy have helped greatly to
strengthen the credit of Rumania beyond her
own frontiers and have attracted a larger
influx of foreign capital to our more important
business enterprises.
Allocation of credit.—During the past year
the bank endeavored to allocate its credits
with due regard to the urgency of the needs,
and to the reliability, the capital and the reserves of applicants. In order that our assist1
For the annual report covering the year 1926, see Bu LLETIN for
October, 1927.
ance might be given as directly as possible to
the producer, we have sought constantly to
enlarge the field of our activities, but always
within the limits of safe and liquid investment.
Believing that the strongest ties which bind
the citizens of a country to their government
are economic, the bank has done everything in
its power to solve the difficult problems created
by the breaking of financial relations between
the united provinces of Rumania and the financial centers from which they were cut off. It
has been impossible to do all that we wished>
but the fullfillment of this duty is one of the
essential parts of our program, which will find
new means for its realization during the current
year.
The National Bank has undertaken to assist
all branches of production and to make the resources at its disposal as effective as possible.
Cost of money.—It is characteristic of the
situation that the cost of money rose during
1927 to the highest point ever reached—a height
so excessive as automatically to induce a reaction in reduction of rates, the burden of which
had become intolerable to producers. This
movement began last autumn in the more important centers of Ardeal. The National Bank
being fully aware of the dangers arising from
excessive interest rates, and being now in a
position to intervene effectively, decided to
support the movement beginning in Ardeal, to
organize, extend, and assist it. This plan,
584
FEDERAL RESERVE BULLETIN
which is explained in detail in our circular of
December 22, is now in operation. We do not
doubt that all the credit institutions will give
their loyal support to the execution of our
policy, which is indispensable for the maintenance of production—the very basis of their
existence. We should, therefore, coordinate
our efforts to relieve the crisis, which reflects
actual economic conditions and is depressing
the general level of production throughout the
country.
Industrial depression.—Agriculture has had
a poor yield and furthermore, as a consequence
of the world-price level, its labor and sacrifices
have been inadequately remunerated, especially in relation to the increasing cost of living.
The oil industry has been seriously affected by
international competition. As to other industries, they are depressed as a result of decline in
the general purchasing power, while net costs of
production have steadily risen.
Business also, which lives by exchange of
commodities, is depressed by these same causes.
Banking business in particular feels the effects
of an increasingly evident reduction in the
volume of profitable operations.
Foreign credit.—By the application of its
utmost efforts, the wise policy of the Government has achieved a balanced budget, consolidation and regular amortization of the
floating debt, an active merchandise balance,
and control of the currency; the latter is an
indispensable step . toward the execution of
monetary reform and the floating of loans
under favorable conditions.
The results of sacrifices already made offer
a most adequate guaranty to foreign capital,
just as a consistent and vigorous policy inspires the greatest confidence, as a result of
which, naturally, better conditions will be
obtainable for loans.
The international situation at present is
most favorable for the flotation of loans,
because the economic interdependence of
nations has been proved to possess even
greater reality than their political interdependence. Being compelled to choose between
a policy of reducing production to bring it into
accord with reduced purchasing power, and a
policy of increasing production by stimulation
of purchasing power in the world markets, our
economic authorities decided emphatically in
favor of the latter procedure.
At present, in the world markets the producing countries are regarded as rich customers
rather than as future competitors. It is this
fact which particularly characterizes the present
AUGUST, 1928
economic situation. This condition has been
favorable for development of the able policies
practiced recently by Belgium, France, Poland,
and Italy, each one of these powers striving
to the utmost of its ability to extend the influence of its own particular genius.
Currency stabilization.—Wishing to complete and make permanent the work of financial
reconstruction undertaken since the war, the
Rumanian Government has decided, as you
know, to stabilize the currency on the basis of
the current rate of exchange, a rate which we
believe to be in harmony with actual conditions. In our opinion legal stabilization, which
is desired by the whole producing community,
can be effected by the Government under very
favorable conditions, and the National Bank
will lend its full support. The accomplishment of this task is the first step in the direction of fruitful collaboration of foreign capital
in our labor and in the development of our
great natural resources, a collaboration which
will yield very large returns with complete
security.
We feel confident that the year 1928 is the
beginning of a period of expansion hitherto
undreamed of in our national economy, the
just reward of continuous labor and untiring
efforts since the close of the war.
Such are the prospects which open up before
us. We do not by any means believe that a
single effort will suffice to achieve them. We
should rather pledge ourselves henceforward
to intense and unremitting toil, but the rewards
will be in proportion to the new conditions in
which we shall find ourselves.
It is said, and with truth, "that after the
reorganization of the currency, the ills which
have grown up during a period of inflation
disappear only under the typical form which
they have exhibited during that period, but
for a long time thereafter they persist under
another aspect." We should bear this truth
in mind in order to avoid disillusionment, and
should never forget that the actual foundation
of sound money is a surplus of production.
Fortified by a firm determination, let us enter
upon the new road, which is that of realities.
The National Bank, upon which the unavoidable demands of the situation have imposed certain duties which do not properly
appertain to it, must, as soon as stabilization
shall have become an accomplished fact, limit
itself to such functions as are suitable to a bank
of issue—controlling the currency and maintaining complete liquidity. This aim will be
achieved without great difficulties, by means of
AUGUST, 1928
FEDERAL RESERVE BULLETIN
the reserve policy not only vigorous but also
consistent and wise, which the National Bank
has always steadily followed; and by means also
of the cooperation of the Government, which
will place funds at the disposal of the bank out
of the forthcoming loan.
Agricultural credit.—We should not forget,
however, that our country has a very strongly
marked agricultural character; and that it is
essential that the law providing for the reorganization of the bank shall enable the bank to
admit agricultural bills to discount in a stated
proportion, under such conditions as may be
required to meet the needs of that most important branch of production.
To the end that the Government may not
have to apply to the National Bank, the Treasury must be assured of readily available and
abundant revenues, as well as of the establishment of an adequate revolving fund for its industrial undertakings and for the Rumanian
railways.
Reorganization of our economic life will
require of the Government that it strengthen
and, if necessary, create such institutions as may
be needed to foster growth of the industrial and
of the purely agricultural life of the country, by
guaranteeing initial capital for long periods and
by giving these institutions such discretion as
the occasion may demand. These organizations should develop steadily along the lines of
such credits as they are called upon to extend.
585
Provision of the following should suffice to meet
the needs for agricultural credit in any of its
phases:
(1) Short-term agricultural credit, with a maturity determined by the cycle of production.
(2) Credit for tools and machinery, to be
repaid gradually over several years (these two
types of credit assuring production).
(3) Long-term credit on mortgages—the
foundation of the constant improvements
which agricultural property requires—but within the limits imposed by sound economic
principles.
We regard it an obligation to complete our
great agrarian reform by the effective largescale organization of agricultural credit for the
purpose of enabling agriculture to make its full
contribution to the economic life of the country, which alone would justify the sacrifice
which one social group has agreed to make for
the general welfare.
To improve agricultural production a responsible Rumanian organization will be needed,
which will have charge of shipping farm products to consumers' markets and will assure the
producer of the best possible price. This
organization, which is of the greatest importance, should also be a subject of unremitting
thought on the part of those who are to plan
our economic future.
Such, in brief, are the achievements which
we expect of the year 1928.
ANNUAL REPORT OF THE NATIONAL BANK OF ALBANIA
The general meeting of shareholders of the
National Bank of Albania was held in Rome on
March 25. Part of the address of the chairman of the board of directors and selections
from the report of the managing director are
given herewith. The text is the English
version of the report furnished by the bank.
ADDRESS OF THE CHAIRMAN
Only a few years ago, before the Italian
financial group had taken the initiative and
assumed the responsibility of establishing the
National Bank of Albania, the financial committee of the League of Nations appealed in
vain to the capital-exporting countries to
assist in the foundation of the new bank. The
Italian financial group alone accepted the invitation of the then president of the financial
committee of the league, Doctor Janssen, and,
encouraged by the subsequent support of other
friends, undertook to carry out the work it had
accepted.
Currency stabilization.—In the two and a
half years of its life the National Bank of
Albania has achieved this: That it has given
the country a sound currency—a currency
which remains stable within the gold points
and is almost always quoted at a premium over
other gold currencies; a currency which has not
depreciated even in periods of political tension—and this at a time when the currency
situation in other major States of the Balkan
Peninsula has been anything but strong.
With a view to strengthening its note currency, the National Bank of Albania declined
to avail itself of the right, insured by the laws
and statutes under which it operates, to introduce a gold-exchange standard. It preferred
to adopt from the start a full integral gold
standard. By exchanging its notes for actual
gold coin on demand the bank gradually accustomed to their use a country which had never
had a paper currency of its own, and whose
brief experience in this field during the Aus-
586
FEDERAL RESERVE BULLETIN
trian occupation had left behind it a bitter
record of loss.
The adoption of the gold standard in such a
country as Albania, whose balance of payments, according to experts, had for many
years been unfavorable, was a bold step, since
the exodus of gold to which it might have led
must inevitably have given rise to a hostile
current of opinion, adverse to the acceptance of
a, currency which must base its growth on
increasingly large metallic reserves.
The experience of the National Bank of Albania has not been in line with such premonitions. Instead of there being an excess of gold
exports over imports, the bank has imported
into Albania some 2,500,000 francs worth of
gold specie, while its exports have not exceeded
100,000 francs worth of gold. What has been
the cause of this unexpected situation? It is
twofold: On the one hand, it is the result of
the calling in of foreign bank-note currencies
circulating in some local centers of Albania;
and, on the other hand, it is due to the change
brought about in Albania's balance of payments
since the introduction into the country of new
economic activities enjoying the support of
foreign capital.
Foreign bank notes withdrawn.—The calling
in of foreign bank notes circulating in Albania
is a net advantage to the economic life of the
country; these notes sent back to their own
countries represent so many interest-bearing
deposit accounts held by Albania with foreign
banks. Our bank notes have gradually
replaced them to the benefit of the country's
internal monetary independence.
The larger resources thus made available for
foreign payments have insured greater stability
in exchange quotations, reducing as far as
possible the fluctuation of the rates within the
narrow limits set by the gold points.
Influx of foreign capital.—The other factor
which has favored the firmness of Albanian
exchange has been, as already stated, the
influx of foreign capital for business enterprises, public works, etc. A considerable proportion of this money is spent on the purchase
of raw materials and in the remuneration of
labor in Albania. The more considerable
sums thus introduced have been, and will
continue to be, those connected with the use
of the fund provided by the loan for public
works made to the Albanian Government by
the Company for the Economic Development of
Albania. As is known, this company also owes
its existence to the Italian financial group.
Thus a sound currency and a favorable
balance of payments have been secured for
AUGUST, 1928
Albania by the collaboration of the Italian
financial group. The Albanian people are thus
proceeding with steady, unhesitating steps
along the path of progress, directed toward a
more prosperous future.
REPORT OF THE MANAGING DIRECTOR
Depression of 1927.—For many reasons 1927
was unfavorable to the growth of economic resources of the country at the rate attained in
previous years, but the collaboration of foreign concerns and the use of foreign capital have
contributed, jointly with the direct action of
the bank, to alleviate the depression. As a
result the trade movement of 1927 is only
slightly inferior to that of the previous year.
Exchange operations.—The excess of imports
over exports during 1927, added to that of
previous years, should have given rise ti> ^ notable outflow of gold and silver, as occurred in the
years preceding the establishment of the bank.
It should be borne in mind that, according to
the investigation made by Calmes, this outflow
in 1921 exceeded 7,500,000 gold francs registered at the customs, besides the amounts
which inevitably escape customs returns.
To avoid this contingency, which would have
led to a further draining of the gold stocks existing in the country, the bank made a special
effort to call in the foreign currencies circulating in some parts of the country, to utilize
the influx of specie in connection with the investment of foreign capital in Albania, and to
call in the various other invisible assets of the
balance of payments, among which are the
large remittances made by emigrants.
Thus the bank, through the free play of exchange operations, succeeded in acquiring during 1927 over 21,700,000 francs worth of specie,
of which over 14,700,000 were spent during
the same period.
The proceeds of exchange transactions not
only made it possible to avoid the exodus of gold
from Albania, but enabled the bank to secure
a further influx of that metal as required for its
branch offices and to meet the demands of the
public. The net imports of gold made by the
bank exceeded 2,300,000 francs, of which about
1,600,000 were paid out to the public.
The significance of these figures is not in the
amount, in itself small, but in the fact that
they represent a suspension of the drainage of
gold from which the country heretofore has
suffered.
Confidence in the currency.—The circulation of the new currency has gradually gained
ground, more especially through the free play of
AUGUST, 1928
exchange business and other normal banking
transactions (credits, remittance of funds, etc.).
On the other hand, issues of bank notes
against gold receipts have been almost insignificant. Such issues would have merely meant
replacing the gold coins previously in circulation by notes. The bank, indeed, in accordance with the policy it has followed of bringing
new stocks of gold into Albania, has from the
beginning limited its acceptance of payments in
gold already in circulation, and finally by the
adoption of the following measure, which came
into force at the end of year, it ceased to accept
such money:
The National Bank of Albania does not accept gold
coin other than Albanian. Bank notes, up to any
amount, can be exchanged for Albanian gold coin on
sight at the central offices of the bank at Tirana and
Durazzo.
This measure indicates the complete differentiation and autonomy enjoyed by the new
currency, and reflects the well-grounded confidence acquired by the bearers of bank notes.
In this connection the decline in the exchange
of bank notes for gold is significant—from 18
per cent of the notes issued in the last quarter
of 1926 it fell to 0.7 per cent of those issued in
the last quarter of 1927.
The volume of currency in circulation rose
considerably as compared with that of the previous year. At the end of 1927 the circulation
stood at over 6,300,000 francs, against 2,300,000
at the end of 1926.
The new gold coins minted by the bank have
been put in circulation less rapidly than the
notes. The impetus of the first few months
has been followed by a period of stagnation
with slight movements. These alterations,
which are in keeping with the small number of
notes presented for payment, show that the
use of bank notes in preference to gold is gaining ground.
Toward the end of the year the bank provided for the minting of 10-franc gold pieces
to facilitate the payment of notes even for
small amounts, which can be freely changed
for gold on demand at the central offices of
the bank at Tirana and Durazzo.
Silver coins.—The bank also devoted its
best attention to reform of the token coin
circulation, with the object of substituting new
Albanian coins for the various silver token
coins of foreign States current in the country.
The habit of the public of using such silver
currency on the basis of its intrinsic value has
so far proved an obstacle to replacing it by
silver token coins of nominal value. It has
587
FEDERAL RESERVE BULLETIN
been replaced in part only by nickel coins.
It should, however, be noted that the Albanian
authorities, on realizing the injury caused to the
population by the continued circulation of
foreign specie, have given instructions that, as
from the end of February, 1928, all State
banks shall refuse to accept it. This justifies
a more "hopeful outlook for the success of the
reform of the specie circulation.
Exchange value
of Albanian
franc.—We
have already stated that exchange operations
have been regulated by the free play of supply
and demand, unhampered by restrictions or
formalities. We have also shown that, owing
partly to the calling in of foreign bank notes,
and partly to the intervention of foreign capital,
the bank's specie receipts have, on the whole,
been in excess of the public's requirements.
Thanks to this fact, the quotations of the
Albanian franc have been particularly steady,
at a premium on the theoretic gold parity of
the currency on the exchanges of both Milan
and Durazzo.
Besides stimulating the expansion and consolidation of the new currency, the bank has
also been busy in giving a start to normal
banking operations. It must be remembered
that so far not only are there no local banks in
Albania, but that the foreign banks which had
opened branches in various localities have
stopped business. Consequently our bank has,
though somewhat relunctantly, had to transact
simultaneously the business of a bank of issue
and of an ordinary bank, entering into direct
and immediate touch with the commercial life of
the country, so as to meet its needs.
The bank has taken pains to give sound and
profitable development to short-term credit.
The duty of protecting its own notes has,
however, compelled it to follow a conservative
policy and to abstain from transactions involving any risk of "frozen" credits; preference
has been given to commercial operations.
The results achieved may perhaps give the
impression that the business done has been
overcautious and modest. But a wider development of credit business, such as the bank has
in view, requires also the concurrence of circumstances extraneous to the bank itself, first
among which is the enactment of laws adequate
to insure the validity of instruments of credit
and to make them legally recoverable.
In view of the modest but sure results
achieved, we feel justified in looking forward
with confidence to the task—neither short
nor easv in truth—that still lies ahead of us.
588
FEDERAL RESERVE BULLETIN
AUGUST,
1928
FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
CONDITION OF CENTRAL BANKS
[Figures are for the last report date of month]
1927
1928
May
June
Bank of England (millions of pounds
sterling):
Issue department169.6
Gold coin and bullion
189.4
Notes issued
Banking department2.7
Gold and silver coin
53.1
Banknotes
30.8
Government securities
_
60.9
Other securities
23.9
Public deposits
105.6
Other deposits
Ratio of gold and note reserve to deposit liabilities
43.0
(per cent)
Bank notes in circulation i
80.0
Currency notes and certificates. _ 296.0
2
Bank of France (millions of francs):
28, 990
Gold.
15, 559
Sight balances abroad._
11, 702
Foreign bills
8,936
Foreign exchange loaned
5,404
Loans and discounts
5,930
Negotiable bonds...
Note circulation
_
Public deposits
Other deposits
German Reichsbank (millions
reichsmarks):
Gold reserve
Gold abroad
_
Reserves in foreign exchange
Bills of exchange and checks
Miscellaneous assets
Deposits
Reichsmarks in circulation
Rentenmarks in circulation
Rank of Italy (millions of lire 3 ):
Gold at home
_
Credits and balances abroad
Loans and discounts
Advances to treasury
Total note circulation
Public deposits
Otfaer deposits
Bank of Japan (millions of yen):
Gold
Advances and discounts
Advances on foreign bills..
Government b o n d s .
Notes issued
Total deposits
_
-I
-i
-I
159. 2
178.9
150.5
170.2
2.1
44.6
29.0
54.0
22.3
89.6
1.3
44.2
29.1
55.9
18.0
94.8
1.6
32.3
51.7
59.3
7.9
119.0
41.8
79.7
293. 7
40.3
78. 5
292.0
26.7
81.7
298.3
Austrian National Bank (millions of
schillings):
Gold
Foreign bills of the reserve
Other foreign bills
Domestic bills
Treasury bills
Note circulation
Deposits
National Bank of Belgium (millions
of belgas):
Gold
Foreign bills and balances in gold.
Domestic and foreign bills
Loans to State
Note circulation
Deposits
1,063
833
10
283
1,463
904
117 |
286 j
290 !
168
168
998
32
799
466
568
387
2,102
167
National Bank of Bulgaria (millions
of leva):
Gold
Foreign bills, etc
Loans and discounts
Advances to State
Note circulation
_.
Deposits
June
May
1,301
384
1,013
4,518
3,899
2,419
1,296
339
933
4,471
3,784
2,394
1,291
435
881
4,471
3,797
2,428
1,239
278
944
4,562
3,735
2,660
62
509
24
312
165
62
513
19
306
173
85
534
42
268
232
22,959 21,421
36,307 34,124
7,377
8,620
48,360 46,148
9,515 ' 9,307
20,154
22,147
14, 358
42, 272
6,408
April
June
I
Central Bank of Chile (millions of
pesos):
Gold at home
_
Deposits abroad
Loans and discounts
Note circulation
Deposits
__
(thousands of pesos):
Gold at home
Gold abroad
Loans and discounts
Note circulation
Deposits
1,955
86
274
2, 469
667
582
4,487
610
4,885
7,289
3,981
1, 003
1,066
9
118
1,207
1, 116
117
289
279
126
168
948
34
780
476
543
391
2,155
140
Czechoslovak National Bank (millions of Czechoslovak crowns):
Gold and silver
Foreign balances and c u r r e n c y . . .
Loans and advances
1,745 j|
1, 955
Assets of banking office in liqui58 i|
86
dation
_
_
67 i|
168
Note circulation
2,495
2,493
Deposits
462 II
589
670 I! Bank of Danzig (thousands of Dan558
3,815 |i
4,409
zig gulden):
1,064 !!
626
Gold.
Balances with Bank of E n g l a n d . .
Foreign bills, etc
4,276
4,772
Loans and discounts
< 4, 023
7,739
Note circulation
7,448
4,066
Deposits
".".IIIIIIIIIIIIIIIl
4, 229
17,124
17, 674
National Bank of Denmark (millions
300
792
of kroner):
3,365 {
2,696
1,063
922
7
178
1,348
918
275
125
168
947
38
760
472
557
392
2,106
133
1,063
908
8
238
1,379
1,034
Gold.
Foreign bills, etc
Loans and discounts.
Note circulation
Deposits
..
3
i
1,119
1,890
516
1,119 i 1,119
1,737
1,669 \
359 i
188 |
1, 053
1,815
144
469
7, 584
538
477
7,111
586
479 ;
7,098 i
310 :
540
7,118
2,707
2,478
15,118 14,078
25,794 j 25,951
22,208 i 23,146 '
35, 709 35,404 !
3,781
3,275 j
2,667
13, 523
12,131
21,869
35, 482
2,736
2,510
15,668
26, 660
21, 545
37, 352
3 459
>
182 !
104
62 I
347 |
182 i
|
70 |I
352 i
193
58
101
I
National Bank of Egypt (thousands
of Egyptian pounds sterling):
Gold
English Government secu. ties..
59 |
Egyptian Government securities.!
414 !
Note circulation
j
178
Government deposits
j
125 j
Other deposits
j
174
917 Bank of Estonia (thousands
36
krones):
Gold
Net foreign exchange..
Loans and discounts.
645
Note circulation.
444
Deposits473
Government.
400
Bankers.
1,906
Other..
110
1
Notes issued, less amounts hold in banking department and
in currency note account.
2
New form of bank statement adopted in June.
1927
Bank of the Republic of Colombia
17,105
300
3,151
..
June
160.9
180.6
of
1,998
86
250
2,477
684
525
4,674
600
April
1928
3,774 3,839
3,657
22, 260 I 22,960 21, 805
22,466 22,873 26, 276
25,363 26,314 I 24, 790
17,184 I 18, 200 I 21, 514
15,044 j 15,692 | 14, 683
10, 291
27, 404
27,252
37,133
10,281 ! 5,090
28,012
4,086
28,327 j 57, 488
39,033 i 19, 035
16,318 14,897 36, 675
2,121
1,852 1
4,078 4,396 J 8,233
New par.
Not including 1,535 million lire of gold pledged abroad.
589
FEDERAL RESERVE BULLETIN
AUGUST, 1928
CONDITION OF CENTRAL BANKS—Continued
[Figures are for t h e last report date of month]
June
Bank of Finland (millions of Finnish m a r k s ) :
Gold
Balances abroad and foreign
credits.
.
Foreign bills
Domestic bills State debts
Note circulation
D e m a n d liabilities,.
May
April
311
312
313
712
43
1,033
784
29
936
935
26
866
1,585
145
1,576
160
1,619
217
518
3,355
4 296
3,790
5,155
2,196
879
3,132
3 246
3,760
5,250
2,148
197
83
314
105
174
479
243
125
197
95
307
106
191
451
283
137
197
85
320
106
195
479
255
142
Bank of Java (millions of florins):
Gold
Foreign bills
Loans and discounts.
N o t e circulation
Deposits
174
21
99
311
48
174
17
79
305
41
174
22
81
304
47
Bank of Latvia (millions of lats):
Gold..
Foreign exchange reserve
Bills
Loans
Note circulation.
Government deposits
Other deposits
24
78
82
42
42
117
66
24
79
82
43
42
120
64
24
73
82
43
40
117
59
National Bank of Greece (millions of
drachmae)..: l
Gold
Net foreign exchange in reserve _ .
Total foreign exchange
Government obligations
Note circulation
Other sight liabilities
National Bank of Hungary
lions of pengo):
Gold
Foreign bills, etc
Loans and discounts
(mil-
Other assets
Note circulation
Deposits
Miscellaneous liabilities
June
185
23
71
315
56
24
30
70
57
29
96
47
34
44
85
86
74
34
48
84
91
73
34
51
83
96
70
32
40
59
87
44
N e t h e r l a n d s Bank (millions of florins):
Gold
Foreign bills
Loans and discounts
N o t e circulation
_
Deposits
435
197
151
768
50
435
194
165
797
36
435
190
219
853
32
404
122
275
783
55
147
37
291
325
2
98
147
41
290
313
2
121
147
49
293
321
2
125
147
10
303
332
6
120
4,086
330
1,404
1,255
6,026
661
4,094
322
1,223
1,285
5,847
645
4,111
305
965
1,625
5,913
610
4,086
330
681
1,852
5,892
660
Foreign deposits
Total deposits.
Reserve Bank of P e r u (thousands of
libras):
Gold
Gold against demand d e p o s i t s . . .
Foreign exchange reserve _
Bins..
_.
...;
:
N o t e circulation
_
Deposits
1
2
New form of bank statement adopted in May.
Not including gold held abroad.
June
Bank of Poland (millions of zlotys):
381
Gold at home
221
323
Gold abroad .
i
Foreign exchange, etc.—
901
524
Serving as note cover
43
All other
210
641
622
Loans and discounts
122
1,184
Note circulation
1,398 1
328
Current account of tho treasury..
282
Other current accounts
267
Bank of Portugal (millions of escudos):
Gold
9
Balances abroad
219
Bills
231
Note circulation
1,902
Deposits
_
92
National Bank of Rumania (millions
of lei): 2
Gold
-.
Bills
189
Advances to State
70
Note circulation
273
Deposits
116
State Bank of Russia (note issuing
285
department; thousands of cher428
vontsi):
248
15, 545
Gold...
231
7,010
Foreign currency
78, 208
Loans notes
and discounts
Bank
104, 606
Bank of Lithuania (millions of litas):
Gold
Foreign currency
Loans and discounts
N o t e circulation
Deposits
Bank of Norway (millions of kroner):
Gold
Foreign balances and bills.
Domestic credits
1928
1927
1928
National Bank of the Kingdom of
Serbs, Croats, and Slovenes (millions of dinars):
Gold
Foreign notes and credits
Loans and discounts
Advances to State
Note circulation
Deposits
South African Reserve Bank (thousands of pounds sterling):
Gold
Foreign bills
Domestic
bills
Note
circulation
DepositsGovernment
Bankers
Bank of Spain (millions of pesetas):
Gold
Silver
Balances abroad..
...
Loans and discounts
Note circulation
Deposits.
Bank of Sweden (millions of kronor):
Gold
.
Foreign bills, etc
Loans and discounts
Note circulation
Deposits
Swiss National Bank (millions of
francs):
Gold
Foreign balances and bills
Loans and discounts
Note circulation
Demand deposits.
Bank of the Republic of Uruguay
(thousands of pesos):
Gold
Loans and discounts
Note circulation
Deposits
3
4
Foreign balances only.
Total deposits.
May
1927
June
April
380
186
380
182
540
213
618
1,133
361
221
568
212
550
1,126
343
205
9
197
227
1,869
66
9
202
228
1,825
77
9
172
207
1,803
100
153
9,584
16, 803
21,038
10, 299
153
9,440
16, 803
21,017
10, 542
147
8,807
16,359
21,032
8,451
15, 513
6,747
72, 602
97, 373
15,808
7, 290
70, 764
95, 768
17,
7,
65,
92,
90
254
1,560
2, 966
5,354
617
j
161
J
219
427
728
96
120
705
946
377
029
90
263
1,520
2,966
5,325
875
88
386
1,168
2,966
5,295
1,617
8,274
8, 268
176
8,989
7,572
8,026
7,527
528
7,851
804
8,684
1,107
7,414
1,734
5,311
290
1,911
4,790
373
1,679
5,036
234
1,659
5,056
188
2,608
710
38
1,770
4,236
993
2,608
707
39
1,711
4,231
1,054
2,608
704
41
1,731
4,250
1,020
2,597
692
39
1,848
4,139
1,055
231
125
451
539
191
231
112
421
494
202
232
137
395
501
196
221
163
350
535
127
447
195
262
860
95
440
199
220
831
76
435
211
220
845
72
455
3 55
328
835
4 76
55,418
63,163
95,918 * 94, 710
64, 272
71,961
74, 596
81, 009
"Revised.
590
FEDERAL RESERVE BULLETIN
AUGUST,
1928
CONDITION OF COMMERCIAL BANKS
[Figures are for the last report date of month except for London clearing banks, which are daily averages!
Nine London clearing banks (millions of pounds sterling):
Money at call and short noticeAdvances and discounts
Investments
_
Deposits
Six Berlin banks (millions of reichsmarks):
Bills and treasury notes i.._
Due from other banks
Miscellaneous loans..
Deposits
A ceptances 1
Tokyo banks (millions of yen): 2
Cash on hand
Total loans
_
Total deposits
_
Total clearings
April
June
May
June
154
1,164
231
1,731
148
1,135
232
1,688
152
1,132
233
1,690
139
1,122
237
1,685
2, 081
930
5,777
8,201
2,090
979
5,731
8,224
386
2,112
950
5,640
8,091
393
1,373
843
4,660
6,409
404
292
2,092
2,075
2,839
378
2,289
2,074
2,622
286
2,255
1,999
2,515
193
2,008
1,804
2,045
May
Joint-stock banks of Denmark (millions of kroner):
Loans and discounts..
Due from foreign banks
Due to foreign banks
Deposits and current accounts...
Joint-stock banks of Finland (millions of Finnish marks):
Loans and discounts
Due from abroad.
Due to abroad
Deposits
1927
March
May
May
April
184
516
7,609
8,963
202
421
7,506
244
380
7,499
7,702
202
371
6,538
16,992
6,545
28, 539
461
17,441
5,945
26, 870
453
11, 766
5,146
23, 792
394
T h r e e commercial b a n k s of F r a n c e
1928
Chartered banks of Canada (millions of dollars):
Gold coin and bullion 3
Current loans and discounts
Money at call and short notice...
Public and railway securities
Note circulation
Individual deposits.
Gold reserve against Dominion
notes
Dominion note circulation
1928
1927
1928
April
1927
March
May
70
1,486
532
535
162
2,620
70
1,452
491
541
171
2,561
468
544
177
2,500
70
1,276
434
530
165
2,321
100
205
95
192
93
189
104
170
1,860
105
90
1,992
1,890
60
122
2,028
1,876
57
90
2,071
69
1,439
(millions of francs):
Bills and national defense bonds.
Loans and advances
Demand deposits
Time deposits
_.
Four private banks of Italy (millions
of lire):
Cash
Bills discounted
Due from correspondents
Due to correspondents
Deposits
1,250
9,078
5,237
14, 294
2,839
< 1,189
* 8, 486
5, 649
<13, 267
* 2,430
4
Joint-stock banks of Norway (millions of kroner):
Loans and discounts
Due from foreign banks..
Due to foreign banks
Rediscounts
Deposits
1,435
79
118
150
1,625
1,442
78
138
162
1,635
1,451
72
135
176
1,649
1,678
72
187
145
1,834
Joint-stock banks of Sweden (millions of kronor):
Loans and discounts
Foreign bills and credits abroad.
Due to foreign banks
Rediscounts
Deposits
4,084
260
141
255
3,492
4,091
283
158
243
3,509
4,111
271
156
192
3, 518
4,174
172
114
132
3,506
1,890 |j
53 !J
145 11
1,994
1
2
3
Checks formerly included under "Acceptances" are included under " Bills and treasury notes" beginning with the March statement.
Beginning in November, 1927, figures have been included for 10 banks not previously covered by the reports.
Not including gold held abroad.
* Figures are for April, 1927.
DISCOUNT RATES OF 33 CENTRAL BANKS
[Prevailing rates, with date of last change]
Country
Austria
Belgium
Bulgaria
Chile
Colombia
Czechoslovakia..
Danzig.
Denmark
England
Rate
6^
4
10
6M
7
5
6
5
4K2
In effect
since—
July
June
Aug.
Dec.
May
Mar.
June
June
Apr.
17,1928
30,1928
31,1924
12,1927
15,1924
8,1927
21,1927
24,1926
21,1927
Country
Estonia
Finland...
France....
Germany _
Greece
Hungary..
India.
Italy
Rate
In effect
since—
Country
Jan.
2,1928 Japan.
A u g . 7,1928 i Java
3fc J a n . 19,1928 i Latvia
Oct.
4,1927
Lithuania. .„
10
M a y 14,1928
Netherlands.
A u g . 26, 1926 ! Norway
6
J u l y 19,1928 j Peru
5
J u n e 25,1928
Poland
Rate
In effect
since—
5.48 Oct.
6
May
Apr.
Feb.
Oct.
Mar.
May
May
h
r
10,1927
3,1925
1,1928
1,1925
13,1927
27,1928
17,1928
13,1927
Country
Rate
Portugal . . .
Rumania.,
Russia
South Africa
Spain
Sweden
SwitzerlandYugoslavia..
8
8
\
6
In effect
since—
July
Sept.
Mar.
Jan.
Mar.
May
Oct.
June
27,1926
4,1920
22,1927
9,1928
23,1923
1,1928
22,1925
23,1922
C h a n g e s : A u s t r i a n N a t i o n a l B a n k from 6 to 6 ^ per cent on J u l y 17, 1928; I m p e r i a l B a n k of I n d i a from 6 to 5 per cent on J u l y 19, 1928; B a n k
of Finland from 6 to 6H Per cent on August 7, 1928.
AUGUST,
591
FEDERAL RESERVE BULLETIN
1928
MONEY RATES IN FOREIGN COUNTRIES
Netherlands (Amsterdam)
England (London)
Month
Bankers'
acceptances, 3
months
Treasury
bills, 3
months
Private
discount
rate
1926
May..
June
July
August
September...,
October
November....
December
Private
Money for Day-to-day discount
1 month
money
rate
4.69
4.53
4.54
4.61
4.88
4.82
4.63
4.72
1927
January
February
March
April
,
May
...
June
July
August
September....
October
November
December
1928
January
,
February
March
April
May
June
__.
3.78
5.19
4.87
5.63
5.99
5.79
7.06
5.81
6.00
7.19
6.03
7.24
4.13
4.18
4.07
4.01
3.95
3.80
3.48
3.62
3.64
3.56
3.58
3.32
5.16
6.66
6.81
.64
7.00
6.35
Sweden
(Stockholm)
Belgium
(Brussels)
Private
discount
rate
2.97
3.46
3.48
3.46
3.45
3.57
3.52
3.45
3.55
4.08
4.47
4.50
Private
discount
rate
Private
discount
rate
Private j Money
discount | for 1
rate
month
1926
May
June
July
August
September
October
November
December
6.65
6.65
6.70
6.75
6.72
6.64
5.77
4.34
1927
January..
February.
March
April
May.
June.
July.
August
September.
October. _.
November.
December.
3.90
3.99
4.19
4.33
4.23
4.17
3.84
3.84
3.75
3.87
4.09
4.15
1928
January
February.
March
April..
May..
June...
4.08
3.90
4.10
4.25
4.25
4.27
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
2.81
2.75
2.72
2.62
2.62
2.90
9.25
9.25
9.25
9.25
8.50
7.60
7.00
7.00
6.81
6.50
6.27
6.00
6. 39-8. 76
6. 21-8.03
5. 84-7. 67
5. 84-8.03
6. 57-7. 67
6. 57-8.
6. 21-8.40
5.48-8.03
5.11-7. 67
4. 75-7. 30
5.11-7. 30
5 48-7 67
4. 56-7. 30
2. 92-7. 30
4. 38-6. 21
4. 38-5. 29
4. 38-4. 75
4.38-5.11
3. 65-5.11
3. 65-4. 75
2.19-4. 38
2.19-4. 38
2. 74-4.02
2.19-5.84
6.00
5.89
5.75
5.49
5.25
5.25
4.38-7.67
4. 38-6. 21
4.02-5.84
4. 75-5.84
5.48-8. 03
1.64-5.11
1.46-4.02
2. 92-4.02
2. 56-4. 02
1.46-4. 02
* Revised.
NnTE.—For sources used, methods of quotation, and backfigures,see the FEDERAL RESERVE BULLETINS for November, 1926, and April, 1927
592
FEDERAL RESERVE BULLETIN
AUGUST, 1928
GOLD MOVEMENTS
[In thousands of dollars]
Germany
United States
Month
Exports
Imports
1926
November
December.. __ . .
16,738
17,004
Net
imports
or exports
7,727
7,196
1927
97, 796 137,987
207,535 201,455
Total
January
February
March
April
May
June
1928
16,462
18,407
.
38, 320
14.686
2,683
5,319
1,968
20, 001
52,086
25,806
97, 536
96, 469
83, 689
99, 932
15, 5^0
17,549
902
858
Netherlands
Net
imports
or exports
18,561
14,531
24, 590 -6,029
18, 609 -4,078
464
108
174
1,303
411
488
74
975
925
11,514 18,181 - 6 , 667
262
15, 742 15, 480
fi32
7,526
6,894
24, 678 3,735 20.943
269
32
16,464 26, 580 -10,116
8,435 9,674 -1,239
49
20 13,071 6,061
7,010
10, 579 21,4fjQ
5,782 15, 687
8,381
7, 637
607
744
6,126
4,726
1,400
699
652 15,012 21, 709 -6,696
710 9,485 10, 546 -1,060
433
4,264
38,487 157,905 137, 008 20,896
10,498
685
680
876
969
13, 563
5.572
5,736
6,080
47,622
9,135
-13,766
-11,120
-94,853
-91,150
—81, 721
-79,931
1,113
6,074
9,018
29,834
1,175
11, 275
704
409
844 5,230
1,008
8,010
822 29,012
688
487
707 10, 568
Net
imports
or exports
-13,376
-10,553
3,466
3,530
4,691 -212,152
83,627
290
2,613 - 2 , 505
6,483
666
673
662
Net
n
11,174
659
840
India
Net
55,572
525
South
Africa
imports
Ex- imports
exor exports or
pens
Imports
(-)
8,720 129,267 187,591 132.019
59,355 14,890
44,465 14,088
19,895 6,231
22,309
2,414
5,625
10, 757 6,576
16,382
935
14, 503 2,592
11,911
705
34, 212 2,510
31, 702
711
14,611
1,840
12, 771
705
8,935
10, 738 1,803
11,
259
1,524
6,
353
7,877
12,979 24,444 — 11,465 1,483
2,056 10, 698 - 8 , 642
1,668
2,082 55, 266 -53,184
1,627
1,635
10,431 77,849 -67,418
January
February
March
April
May
June
July
August- . .
September
October
November
December
Exports
(-)
9,011
9,808
Total (12 months).. 213, 504 115,708
Net
imports Imor ex- ports
ports
Exports
Imports
Great Britain
1,228
411
449
-1,053
-2,969
- 2 , 537
- 4 , 421
- 2 , 373
47
35
78
154
102
2
331
4,262
2,518
6,543
10,041
4,941
4,890
7,122
5.93P
2,860
3,315
2,685
4,408
3,916
16,937 -6,439
59,175
39
1,334
3,015
5,190
4,623
2,477
281
46
2,653
202
103
125
189
20,042 10,875
9,167 12,725
13,026 19,257 -6,231
227
6,289 78,605 -72,316
192
11, 760 2,943
66
8,816
157
18, 746 5,498 13, 248
89
39, 672 6,409 33, 263
8
1,147
7
19
379
38
-17,522
-14,079
- 2 0 , 718
-23,146
-15,717
-17,470
12, 716
-920
185
47
-222
51
8,590
6,952
9,544
8,250
8,664
MOVEMENTS TO AND FROM UNITED STATES
MOVEMENTS TO AND FROM GREAT BRITAIN
[In thousands of dollars]
[In thousands of dollars!
1927
1928
Country of origin
or destination
June
Imports
Exports
January-June
Imports
Belgium
England
11
6 10,014
France
.
103 81, 554
124
Germany
262
2
Italy
4 000
Netherlands
Canada
18, 598
46 66, 500
Central America
65
200
580
Mexico..
375
391 2,497
Argentina..
1,000
Brazil .
Chile
75
235
Colombia
143
673
536
Ecuador
108
767
Peru
72
812
Uruguay
Venezuela _
259
26
200
Australia
._ _.
British India...
China and Hong
Kong
_
1,405
92~
Dutch East Indies. .
175 " " 6 1 5 "
Japan
762
156
Philippine Islands.._
181
All other countries. .
9,138
150
Total
* Revised.
20, 001
99,932
Calendar year
Exports
Imports
2,000
32, 525
246, 555
27,401
20 000
4,000
276
300
2,793
69,400
21,984
1
39,396
21,048
1
7
15,075
*63, 650
1,224
6,001
23
2,053
9,000
5, 470
1,448
5,604
1,156
125
7,021
1,489
2 247
*2 268
531
21,920
Country of origin
or destination
Exports
2,200
8,562
10,000
13,994
8,055
29,698
253
6,984
61,499
34,351
1,001
2,000
1 530
2,974
1,674
1,499
20, 000
1,667
793
7,166
1,960
21
82, 976 455, 518 207,535
201,455
3,428
1927
1928
9,206
Imports
France
._
Netherlands
Russia
Spain and CanariesSwitzerland
United States .
24, 930
South America
British India
British Malaya
Egypt
Rhodesia
495
Transvaal
12 779
235
West Africa
All other countries.. 1,234
Total
January-June
Calendar year
Exports
Imports
Exports
Imports
Exports
4,073
77
1
683
8
105
13,499
95, 521
5,326
627
2,313
1,049
4,718
6,486
7,732
7,445
6,213
28,042
6,959
12,462
3,452
3,799
June
39, 672
819
17
117
32. 520
1,017
2,792
52, 925
1,642
5,026
5,636
7,275
918
1,251
8,567
2,017
5,958
124,348
16" 4,705
20
8,320
49. 680
7,534
6,409 109, 534 123, 587 157, 905 137,008
740
593
FEDERAL RESERVE BULLETIN
AUGUST, 1928
FOREIGN EXCHANGE RATES
jMonthly averages of daily quotations. 1 In cents per unit of foreign currency]
Austria
(schilling)
Belgium
(belga)
Bulgaria
(lev)
19.30
P a r value
14.07
13.90
1927—July
December.
1928—January . .
February.
March
April
May
June.
July
14.0695
14.0946
14. 0936
14.0823
14. 0728
14. 0(574
14.0656
14. 0685
14. 0852
13.8980
13.9885
13.9444
13.9232
13.9387
13.9641
13.9597
13.9615
13.9351
.7232
.7235
.7234
.7214
.7218
.7211
.7191
.7199
.7212
Italy
(lira)
Netherlands
(florin)
Norway
(krone)
Par value.
5.26
40.20
1927—July..
December._
1928—January
February. _
March
April.
May
June
July
5. 4488
5.3800
5. 2881
5.2930
5.2822
5. 2764
5. 2688
5. 2607
5. 2406
40.0600
40.4381
40. 3334
40. 2550
40.2501
40. 3091
40.3473
40.3331
40.2479
Czechoslo- Denmark
vakia
(krone)
(crown)
2.9626
2. 9630
2. 9628
2.9625
2.9622
2. 9624
2.9624
2. 9625
2. 9624
England
(pound)
Finland
(markka)
France
(franc)
26.80
486.65
2.52
2 3.92
26.7276
26.8192
2fi. 7829
26.7733
26. 7912
26.8224
26.8245
26. 8173
26. 7349
485. 5056
488. 2542
487. 5330
487.4840
487.9944
488. 2045
488.1594
488.0262
486. 3571
2. 5196
2. 5191
2. 5187
2. 5179
2. 5176
2. 5176
2. 5174
2.5171
2. 5171
Poland
(zloty)
Portugal
(escudo)
Rumania
(leu)
26.80
11.22
108.05
19.30
25.8352
26. 6169
26. 5985
26.6098
26.6634
26. 7390
26. 7829
26. 7845
26. 7270
11.2500
11.2204 |
11. 2402
11.2312
11.2255
11.1968
11.2133
11.2094
11.2011
5. 0008
4.9550
4. 9285
4. 7573
4.2572
4.2101
4.2207
4.4258
4.4565
.6094
.6188
.6177
.6145
.6185
.6273
.6194
.6152
.6136
NORTH AMERICA
3.9112
3 9396
3 9308
3. 9304
3. 9343
3.9363
3,9359
3.9311
3.9163
Russia 3
(chervonetz)
Spain
(peseta)
514. 60
4
515.0000
< 515. 0000
< 515. 0000
« 515.0000
« 515.0000
« 515. 0000
<4 515.0000
515.0000
« 515. 0000
Germany
Hungary
Greece
(reichs- (drachma)
(pengo)
mark)
23.82
1.30
17.49
23. 7428
23. 8904
23. 8264
23.8577
23.9047
23. 9154
23.9292
23. 9009
23. 8626
1.3232
1. 3294
1. 3255
1.3229
1.3237
1.3158
1.3036
1.3023
1. 2991
17.4376
17. 4773
17. 4748
17.4663
17.4685
17.4608
17.4589
17. 4475
17. 4350
Sweden
(krona)
Switzerland
(franc)
19.30
26.80
19.30
17. 0856
16. 6623
17.0975
16.9782
16.8212
16.7641
16. 7309
16.5681
16. 4759
26. 7784
27. 0015
26.8780
26.8371
19.2528
19. 3150
19 2695
19. 2389
19.2561
19. 2713
19. 2724
19. 2754
19. 2612
26.8492
26.8300
26.8334
26. 7843
Yugoslavia
(dinar)
19.30
1. 7585
1. 7615
1. 7625
1. 7598
1.7596
1. 7599
1. 7602
1. 7605
1. 7602
SOUTH AMERICA
Colombia 3 Ecuador a
(peso)
(sucre)
Peru 3
(libra)
Canada
(dollar)
Cuba
(peso)
Mexico
(peso)
Par value
100.00
100.00
49.85
96.48
38.93
32.44
12.17
97.33
20.00
486.65
103.42
1927—July
December
1928—January
February
March
April
May
June
July
99. 8520
99.8974
99.8159
99.8126
99. 9963
100. 0290
99. 9117
99. 7605
99. 7894
99.9154
99. 9157
100.0428
100.0644
99. 9877
99. 9615
99. 9495
99. 9344
46. 5383
48. 4506
48. 6946
48. 6710
48. 7436
48. 7387
48. 5588
47. 8267
47. 2920
96. 5540
97.2304
97.1136
97.1376
97.2547
97.1015
97.2008
96.9438
96.1408
34. 5950
34.8000
34.8000
34.8000
34.8000
34.8000
34. 8000
34.7615
34. 8000
11.7916
11.9677
11.9977
12.0088
12.0265
12.0329
12.0327
11.9924
11.9385
12. 0224
12. 2062
12. 2098
12. 2065
12.2115
12.2038
12.1910
12.1980
12.1390
97. 5345
97. 7381
98.0036
98.0400
97. 7944
98. 2128
98.1923
98.1046
98.1024
19.5750
19.3750
19. 3750
19.5870
19.9537
20. 0000
20.0000
20.0000
20.0000
374. 6000
389.8500
390.3400
390.1600
391.0925
397. 7600
399. 2692
399. 5000
400. 4800
99.1684
103. 8692
102. 7734
102. 9357
103. 6775
103. 5345
102.9908
102. 2513
102. 2849
Argentina Bolivia •
Brazil
(peso-gold) (boliviano) (milreis)
Chile
(peso)
Uruguay
(peso)
SOUTH
AMERICA—
continued
Venezuela 3
(bolivar)
Par value
1927—July
December..
1928—January
February. _
March
April
May
June
July..
19.30
19.1280
19.1700
19.1700
19.1943
19.2500
19. 2500
19.2500
19.2500
19. 2500
China
(Mexican
dollar) «
48.11
44. 6004
45. 9092
45. 7410
45. 3620
45. 6106
45. 7972
47. 7899
47.7930
47. 0840
China
China
(Shanghai (Yuan
dollar) s
tael)»
66.85
62. 2760
63. 7884
63. 7548
63.1137
63.0545
63.2502
66. 4450
66.2321
65. 2332
Hong
Kong
(dollar) «
India
(rupee)
47.50
47.77
36.50
43. 5804
45.1877
45.1408
44. 9818
45.3688
45. 4958
47. 2948
47.4815
46. 8483
48.9772
50. 3085
50. 4096
49.8564
49. 8008
49. 8658
51.0168
50. 5411
49.9917
36.1108
36. 7369
36. 7224
36. 5189
36. 5280
36. 5647
36. 5913
36.4618
36. 2571
Japan
(yen)
49.85
47.1312
46.1881
46. 8784
46. 8740
47.1463
47. 7136
46. 6097
46.6149
45. 8476
Java 3
(florin)
Straits
Turkey
Settlements
(Turkish
(Singapore pound)
dollar)
40.20
56.78
40.1963
40. 5319
40. 5596
40. 5243
40.3498
40. 2228
40.2446
40. 2327
40.1528
55. 9600
56. 7269
56. 7650
56. 7038
56.3469
56.2508
56.1362
56.1426
56. 0416
439.65
51. 0544
51.7846
51.5040
50. 4843
50. 5000
50.9084
51.2023
51.0877
Egypt
(Egyptian
pound)
494.31
497. 7768
500. 5719
499. 8319
499.7511
500. 3780
500. 6343
500. 5540
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 sec. 522 of the tariff act of 1922. For back figures see BULLETIN for January, 1928, pp. 56-62.
2
Effective June 25, 1923.
3 Averages based on daily quotations of closing rates as published by New York Journal of Commerce.
* Nominal.
• Silver currency. Parity represents gold value of unit in 1913 computed by multiplying silver content or 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 $0.59525 for July, 1928, $0.60332 for June,
1928, and $0.56670 for July, 1927. The corresponding London prices (converted at average rate of exchange) were $0.59710, $0.60364, and $0.56836.
594
FEDERAL RESERVE BULLETIN
AUGUST, 1928
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES
ALL COMMODITIES
EUROPE
United
States
(Bureau AusofLabor tria
Statis- (gold
tics) i basis)
Month
Belgium
Bulgaria
Czecho- Denslomark
vakia *
Germany Hun(Fedgary
eral
Statis- Federal Statisti(gold
tical Reserve cal Bu- basis)
Bureau Board reau)
France
England
(Board
of
Trade)
Finland
(gold
basis)
Italy Nether- Norway
(Bachi) lands (Oslo)
1926
December
98
127
860
2,718
978
158
146
144
627
592
137
126
574
146
176
1927
January
February
March
April
May
June
July
August
September -»«...-_
October
November
December
._..
97
96
95
94
94
94
94
95
97
97
97
97
130
130
133
135
137
142
140
133
130
129
127
127
856
854
858
846
848
851
845
850
837
839
838
841
2,708
2,688
2,649
2,592
2,751
2,823
2,775
2,745
2,736
2.747
2,707
2,739
979
975
976
979
988
990
992
983
975
966
967
976
157
156
153
152
152
152
152
153
153
154
154
154
144
143
141
140
141
142
141
141
142
141
141
140
144
144
143
143
142
144
144
147
148
148
149
148
622
632
641
636
629
623
617
618
601
587
595
604
591
595
600
610
618
605
590
578
574
554
545
567
136
136
135
135
137
138
138
138
140
140
140
140
127
129
128
130
133
133
133
134
133
133
133
135
558
556
545
521
496
473
467
465
465
463
466
463
146
145
144
143
146
148
150
149
150
150
152
152
178
165
160
159
160
159
160
1^1
158
157
157
156
96
96
96
97
99
98
129
128
129
131
131
133
133
851
848
848
847
844
844
2,782
2,826
2,839
2,891
982
985
978
984
987
986
153
152
153
154
155
155
141
140
141
143
144
143
144
143
144
145
143
145
607
609
623
619
632
626
...
569
569
587
601
617
621
139
138
139
140
141
141
463
461
464
464
465
154
151
153
153
152
152
157
157
157
156
156
158
160
1928
January
February
March
April
May
June
July
.
EUROPE—continued
Month
Poland
Russia» Spain
135
134
135
136
ASIA AND OCEANIA
Sweden Switzerland 3
Canada
Peru
Australia
China
(Shang-
hai)
AFRICA
Dutch India Japan
East (Cal- (ToIndies cutta) kyo)
New
Zealand
Egypt South
(Cairo) Africa
1926
December
1927
January
February
March
April
May
June _
July
August
September
October
November
December..
1928
January
February
March
April
May
June
July
»
.
195
178
186
150
142
151
199
155
172
156
146
170
153
130
195
197
200
206
208
206
207
207
206
206
208
205
177
179
179
177
175
174
173
171
170
170
170
170
184
180
179
177
172
171
168
168
169
169
168
J69
146
146
145
143
145
146
146
146
148
147
148
148
141
141
141
140
142
141
141
143
144
145
147
146
151
150
149
149
152
154
152
152
151
Ifi2
152
152
200
204
206
201
207
206
205
204
205
200
200
199
154
153
150
151
152
155
161
165
170
173
166
162
173
172
175
173
171
169
171
171
172
169
166
164
156
156
154
154
155
155
153
154
153
152
151
150
146
148
146
145
146
149
150
151
150
147
148
148
170
171
171
170
171
173
170
167
169
170
168
168
151
147
147
147
145
146
148
146
146
146
147
148
126
124
124
122
124
123
118
117
120
118
115
114
128
204
203
214
215
215
215
171
171
171
171
171
172
166
166
165
166
164
148
147
149
151
152
151
145
144
145
146
145
145
151
151
153
153
153
150
199
195
193
197
195
195
193
163
160
160
162
159
159
163
164
163
163
165
160
150
149
149
150
145
144
144
146
147
145
169
169
169
170
171
169
150
147
147
147
114
114
116
120
117
117
120
126
120
122
121
2 First of month figures.
3 New official index.
i New index—1926=100.
NOTE.—These indexes are in most cases published here on their original bases, usually 1913 or 1914, as determined by the various foreign statistical offices which compile the index numbers and furnish them to the Federal Reserve Board. In several cases, however, viz, France, Netherlands, Japan, New Zealand, and South Africa, they have been: ecomputed from original bases (1901-1910; 1910-1910; October, 1900; 1909-1913;
1910) to a 1913 base. Index numbers of commodity groups for most of the countries are also available in the office of the Division of Research and
Statistics and may be had upon request. Further information as to base periods, sources, numbers of commodities, and the period of the month
to which the figures refer may be found on pages 769-770 of the BULLETIN for November, 1927.
595
FEDERAL RESERVE BULLETIN
AUGUST, 1928
WHOLESALE PRICES—Continued
GROUPS OF COMMODITIES
[Pre-war=100]
ENGLAND-BOARD OF TRADE
SWEDEN—BOARD OF TRADE
1927
1928
All commodities
Total food
Cereals.._
_
Meat and fish
Other foods
Industrial products
Iron and steel
Other minerals and
metals__
Cotton
Other textiles
Miscellaneous
June
May
143
158
155
146
171
135
112
144
159
159
144
175
135
112
112
112
172
167
142
173
169
143
FebApril March ruary
June
143
159
156
139
182
135
113
141
152
153
133
170
135
113
140
152
151
136
167
134
113
142
156
157
137
175
134
120
111
169
170
142
112
164
168
144
112
157
167
146
117
155
154
141
609
577
548
575
624
636
517
796
637
623
611
557
653
616
633
574
767
FRANCE—STATISTICAL BUREAU
All commodities
All foods....
Animal foods
Vegetable foods
Sugar, coffee, cocoa
All industrial material
Minerals
Textiles.
Sundries
615
548
648
675
635
525
817
618
!
[
|
!
632
623
536
678
675
64.0
533
811
628
619
601
536
633
653
641
530
823
625
623
606
571
615
644
637
530
806
626
GERMANY—FEDERAL STATISTICAL BUREAU
All commodities..
Total agricultural products
Vegetable foods
Cattle
Animal products.
Fodder
Provisions
Total industrial raw materials and semi-finished
products
Coal
Iron
Nonferrous 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
June
All 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 industry
Raw and manufactured
chemicals
Raw materials
Semifinished materials
Finished materials
Producers' goods
Consumers' goods
141
136
156
105
132
162
140
140
134
154
100
133
158
136
139
131
146
100
139
148
134
138
130
141
103
143
141
130
112
126
157
128
135
131
128
105
164
151
128
82
120
27
135
131
128
104
167
156
126
82
118
25
134
128
126
104
165
160
126
83
115
25
134
131
127
103
162
157
126
83
112
33
134
131
127
104
159
160
126
82
113
40
132
130
126
107
153
125
124
85
123
47
151
161
148
160
148 I
158 I
149
158
150
158
150
161
159
137
176
158
136 j
175
158
136
174
157
136
173
157
135
173
146
130
158
Sundries
493
565
617
503
466
456
441
427
517
496
567
621
504
469
466
443
425
518
493
557
599
505
468
460
448
423
522
491
553
588
510
467
456
448
422
522
489
548
579
509
466
437
450
426
522
509
558
579
531
490
446
470
483
506
552
516
553
512
555
507
554
509
566
494
550
Feb- June
April March ruary
152
152
138
112
151
151
134
112
149
146
136
111
147
142
137
112
146
151
128
118
113
161
113
161
112
161
112
160
118
158
149
151
148
146
119
165
148
154
151
143
158
165
145
150
150
140
157
165
142
149
149
138
156
170
138
151
148
137
153
166
149
157
151
143
159
1
150
152
148
159
141
168
156
141
96
171
149
153
156
149
169
138
168
156
142
96
170
150
153
156
149
170
140
167
155
142
94
170
150
153
155
148
164
145
171
155
142
94
170
150
151
152
147
158
143
170
155
142
154
158
148
181
134
154
154
144
94
170
154
!
|
!
|
:
94 I
170 |
151 '
AUSTRALIA-BUREAU OF CENSUS AND STATISTICS
All commodities
Metals and coal..
Textiles
Agricultural products
Dairy products
Groceries and tobacco
Meat
Building materials
Chemicals
159
174
168
163
149
165
126
159
189
159
174
169
163
151
165
122
158
189
162
174
176
163
146
166
139
! 159
i 188
!
!
i
|
i
160
174
176
160
137
166
160
175
170
166
140
166
141
159
190
138
157
190 !
158
178
142
162
160
167
124
152
179
INDIA (CALCUTTA)—DEPARTMENT OF STATISTICS
ITALY—CHAMBER OF COMMERCE OF MILAN
All commodities
Total food
Vegetable foods
Animal foods
All industrial products
Textiles
Chemicals. _
Minerals and metals
Building materials
Other vegetable products..
May
CANADA—DOMINION BUREAU OF STATISTICS
All commodities..
Total raw materials._
Total manufactured goods.
Vegetable products _
Animal products
Textiles
._
Wood and paper products.
Iron and its products
Nonferrous metals _ _ 138 Nonmetallic
minerals
140
168 Chemicals-_
141
136
153
115
126
160
139
1927
1928
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
1928
1927
Feb- JanMay April March ruary
uary
May
147
132
150
176
155
140
102
149
179
159
144
149
125
137
146
130
148
172
162
139
101
152
173
157
145
156
125
137
144
130
146
169
163
136
95
147
168
155
137
147
125
137
144
131
151
169
167
136
88
143
170
157
129
139
126
135
145
135
149
175
165
139
89
143
170
158
131
153
125
136
146
140
154
138
165
141
86
132
160
158
126
112
137
154
596
FEDERAL RESERVE BULLETIN
A U G U S T , 1928
RETAIL FOOD PRICES AND COST OF LIVING
RETAIL FOOD PRICES
(Pre-war-100]
<3THEI t COUNTRIES
EUROPEAN COUNTRIES
Month
United
States Aus
(51 cit- tria Bel- Bul- Czecho- Eng- Esto- France Ger- Greece Italy Neth- Nor- Rus- Swit- Can- Aus- India New South
(Mi- erzertra- (Bom- Zeaies)
(Vi- gium i garia slovakia land* nia 2.3 (Paris) many (Athens) lan) lands way sia » land ada* lia bay) land Africa
enna)
1920
November.
December.
158
159
117
118
204
206
2,618
2,598
902
912
169
169
116
117
628
599
148
150
1,986
1,973
630
631
147
146
186
184
234
235
159
159
148
151
155
158
152
154
146
149
119
117
1927
January
February..
March
April..
May
June...
July
August. . .
September.
October...
November.
December.
156
153
151
151
152
155
150
149
151
153
153
153
119
119
118
119
119
122
122
120
126
127
126
128
207
210
201
200
196
201
205
202
206
210
211
212
2,586
2,569
2,533
2,478
2,630
2,699
2,653
2,625
2,615
2,626
2,587
2,618
914
914
915
923
930
949
962
914
910
907
905
913
167
164
162
155
154
154
159
156
157
161
163
163
119
120
118
118
119
120
122
118
111
112
113
113
592
585
581
580
589
580
557
539
532
520
500
523
151
152
151
150
151
153
156
150
151
152
152
153
2.002
1,995
1,997
2.021
2,063
2,063
2,059
2,044
2,070
2,071
2,086
2,101
625
642
635
617
565
541
524
518
509
509
510
513
147
146
146
145
145
145
144
143
143
146
148
148
180
177
173
169
169
172
175
175
174
173
171
171
208
208
205
203
201
199
199
199
198
198
199
200
158
158
157
156
156
157
156
156
158
158
159
159
153
151
149
146
145
146
147
147
147
148
149
151
158
153
151
151
152
153
152
155
157
159
157
155
156
152
152
151
150
151
154
155
151
148
147
149
148
146
146
145
145
144
144
143
143
143
144
146
116
117
118
119
121
120
119
118
117
152
149
148
149
151
150
129
127
125
126
211
207
201
202
197
200
2,660
2,701
2,713
2,766
913
910
902
905
162
159
155
155
156
157
118
118
122
126
126
530
522
524
532
546
557
152
151
151
152
151
152
154
2,127
2,098
514
518
516
516
148
149
150
150
150
150
170
170
171
171
172
170
173
201
202
203
203
205
206
158
157
156
156
156
151
149
147
146
146
145
154
152
153
154
154
154
151
146
142
140
140
142
143
147
145
145
144
117
115
115
115
116
114
no
119
119
1928
January...
February..
March
April
May... ...
June
July
908
COST OF LIVING
[Pre-war=100]
EUROPEAN COUNTRIES
Month
1926
November.
December.
159
159
191
195
740
741
179
179
1,193
1,197
1927
January .
February..
March
April.
May
June
July
August.
September.
October. _.
November.
December.
158
157
156
156
157
156
155
155
155
155
157
157
198
200
195
195
193
196
199
198
202
207
208
208
747
746
744
749
756
761
753
739
736
734
735
740
175
172
171
165
164
163
166
164
165
167
169
169
157
156
155
155
156
155
210
207
204
205
202
204
741
739
737
741
743
168
166
164
164
165
165
1928
January .
February..
March
April
Mav
June
July . . .
-
OTHER COUNTRIES
Massachu- BelItaly NethGreece
SwitIndia
Czecho- Eng- Fin- France Ger- (Ath- Hun- (Mi- er- Nor- Po- Spain Swe- zer- Can- Aus(Bom- South
setts gium*
den land ada* traslovakia land* land (Paris) many ens) gary lan) lands way land
lia bay) Africa
144
144
1,895
1,889
116
116
657
657
1,187
1,189
1,183 """524"
1,173
1,166
1,184 " 5 2 5
1,203
1,237
507
1,230
1,237
1,251
498
1,243
145
145
145
146
147
148
150
147
147
150
151
151
1,900
1,896
L, 898
1,911
1,938
1,951
1,960
L, 951
1,955
1,956
1,964
1,978
119
120
119
119
119
121
119
119
119
120
120
120
655
667
663
651
612
586
548
543
537
536
536
531
1,216
1,206
1,214
1,212
1,207
1,219
151
151
151
151
151
151
153
1,986
1,973
L, 966
L. 991
121
120
119
121
532
533
531
531
545
507
168
213
166
203
167
201
167
197
170
195
169
193
170
193
197
199
191
193
159
159
150
151 ""l57"
154
156
131
129
202
201
200
203
205
205
199
201
202
205
210
205
195
171
194
197
191 " 1 7 6 "
186
185
184
169
192
187
189 "172"
188
186
160
160
159
158
160
160
160
160
161
161
162
162
152
151
150
156
148
148
149 "155"
149
149
157
149
150
150
151
159
156
155
155
153
152
154
156
157
154
151
150
151
130
130
131
131
132
132
132
131
131
132
132
132
207
204
205
208
209
209
178
175
176
175
171
161
161
160
160
160
151
150
149 " l 5 7 "
149
149
148
154
148
145
144
147
146
146
132
131
135
137
137
132
171
"In"
11 1921 = 100.
8
First of month figures.
Revised on a gold basis.
NOTE.—Information as to the number of foods and items included, the origina base periods, and sources may be found on page 276 of the April
1925, issue of the BULLETIN.
597
FEDERAL RESERVE BULLETIN
AUGUST, 1928
of the Federal reserve act as amended, as follows: (1)
Trustee; (2) executor; (3) administrator; (4) registrar
The following list shows the changes affecting of stocks and bonds; (5) guardian of estates; (6)
State bank membership during the month ended assignee; (7) receiver; (8) committee of estates of
July 21, 1928, on which date 1,242 State institutions lunatics; (9) in any other fiduciary capacity in which
State banks, trust companies, or other corporations
were members of the system:
which come into competition with national banks are
ADMISSIONS
permitted to act under the laws of the State in which
the national bank is located.
Changes in State Bank Membership
Capital
Total
Surplus resources
Location
District No. 2
Franklin Bank & Trust Co., Newark,
N. J
District No. 3
$200,000
$160,000 $3, 796, 237
Dime Bank-Lincoln Trust Co., Scran1,350,000 1,000,000 17, 995, 000
ton, Pa
Provident Trust Co., Philadelphia, Pa.L 3,197, 520 12,244,996 53,001,182
District
No.
Camden, N. J
Berwick, Pa
Spartanburg, S. C.
Cartersville, Ga
Decatur, Ala
Chicago, Ill-
District No. 7
Iowa State Bank, Algona, Iowa
Kalamazoo Trust & Savings Bank,
Kalamazoo, Mich
Cass City State Bank, Cass City, Mich.
50,000
7,500
632, 282
600,000
40, 000
200,000
12,000
7,725,042
510, 444
CHANGES
Do
Fort Wayne, Ind_.
Do
Longmont, Colo.__
Beaumont, Tex
The Dalles, Oreg..
Phoenix, Ariz
Ellensburg, Wash
Powers
granted
Name of bank
American National Bank__.
1 to 9
Berwick National Bank
1 to 9
Central National Bank
15 to 9
First National Bank
Ito9
Morgan County National 1,2,3, and 5
Bank.
Straus National Bank &
1 to 9
Trust Co.
Jackson Park National Bank
Ito9
Portage Park National Bank
1 to 9
First National Bank
19
Lincoln National Bank &
19
Trust Co.
Longmont National Bank._
1 to 9
City National Bank
1 to 9
First National Bank
1 to 9
1 to 9
First National Bank of
Arizona.
1
4 to 9
Washington National Bank.
District No. 2
1
Mutual Bank of Roseville, Newark,
N. J. (succeeded by Franklin Bank
& Trust Co., Newark N. J., a member)
-.
$200,000
$160,000 $3, 796, 237
District No. 3
Bankers Trust Co., Atlantic City, N. J.
(voluntary withdrawal)
100,000 i 150,000 2, 876, 510
Peoples Savings & Dime Bank & Trust
Co., Scranton, Pa. (succeeded by
Dime Bank-Lincoln Trust Co.,
Scranton, Pa., a member)
1,350,000 1,000,000 17, 995,000
Provident Trust Co., Philadelphia, Pa.
(succeeded by Provident Trust Co., I
|
a member)
3,195,280 io, 000,000 41,876, 465
District No. 4
Bellevue Savings & Trust Co., Bellevue,
Pa. (voluntary withdrawal)
Farmers & Citizens Banking Co.,
Milan, Ohio (voluntary withdrawal)..
125, 000
200,000
2, 892, 521
25,000
14, 000
630, 240
District No. 5
Citizens Bank of Norfolk, Va
District No. 6
1,000,000
9, 078, 535
j
The Comptroller of the Currency reports the following increases and reductions in the number and capital
of national banks during the period from June 23 to
July 20, 1928, inclusive:
Number of
banks
New charters issued—_
Restored to solvency.
.
Increase of capital approved ! .
.
Aggregate of new charters, banks restored to
solvency, and banks increasing capital
Total liquidations and reductions of capital..
37,360, 249
Liberty Insurance Bank, Louisville, |
Ky. (title changed to Liberty Bank
& Trust Co.).
The Insurance Bank of St. Louis, Mo.
(title changed to Guaranty Bank &
Trust Co.).
i Readmitted under new charter.
Fiduciary Powers Granted to National Banks
Amount
of
capital
5
0
32
$675, 000
0
4,330,000
37
5, 005,000
20
3
1, 476,000
3,150, 000
23
4, 626, 000
3
6, 300,000
Consolidation of national banks under act of Nov.
7, 1918
Consolidation of a national bank and a State bank
under act of Feb. 25, 1927
Marine Bank & Trust Co., New
Orleans, La. (merged with Canal i
Bank & Trust Co., New Orleans, La.,
a member)
2,000,000 1,125, 000
District No. 8
Changes in National Bank Membership
Liquidations
Reducing capital 2
500,000
|
Supplemental.
Total consolidations
Aggregate increased capital for period
Reduction of capital owing to liquidations, etc
Net increase
_
2
2,100,000
5
8,400,000
5,005, 000
4, 626,000
379, 000
1 Includes one increase in capital of $1,000,000 incident to consolidation
of 2a State bank under act of Feb. 25,1927.
Includes two reductions in capital aggregating $3,100,000 incident to
consolidations under act of Nov. 7, 1918.
Acceptances to 100 Per Cent
During the month ended July 21, 1928, the Federal
The following member institution has been authorReserve Board approved applications of the national ized by the Federal Reserve Board to accept drafts and
banks listed below for permission to exercise one or bills of exchange up to 100 per cent of its capital and
more of the fiduciary powers named in section 11 (k) surplus: Interstate Trust Company, New York,N. Y.
598
FEDERAL RESERVE BULLETIN
AUGUST, 1928
DETAILED BANKING STATISTICS FOR THE UNITED STATES
FEDERAL RESERVE BANKS
BILLS DISCOUNTED, AND DEPOSITS BY CLASS OF DEPOSIT
[Monthly averages of daily figures. In millions of dollars]
Federal Reserve Ban fa
Total
Boston
Bills discounted:
iQ27 June
July
September
October _
November
December
1928—January
--February
March
April
May
June
Julv
Total deposits:
1Q27—June
July
August .
September
October
November
December
1928—January
.February
March
April
May
June
July
Member bank reserve balances:
1927—June
July
August
September
October
November
December
1928—January
. February
March
April
May
June
- -July
Government deposits:
1927 June
July
August
»September
October
November
December
1928—January February
March
April
May
June . .
July
AH other deposits:
2927—June
July
September
October
November
December
1028—January. .
Al arch
ipril
May
June
July
-
New
York
Philadelphia
Cleveland
Richmond
Atlanta
Chfcago
Minne- Kansas Dallas
St.
Louis apolis
City
428.6
454.0
409.4
422.2
424.4
415.2
528.6
465.3
470.7
513.2
660.9
835.5
1,018.7
1,089. 6
33 8
29.7
29.9
28.4
33.3
36.4
40.2
23.fi
45.2
49.5
44.4
59.6
84.8
68.0
91.9
122.9
118.4
142.4
126. 9
106. 5
171.1
152.9
119. 3
130.0
210.9
296.9
376.1
382.6
45.2
46.8
39.6
38.2
38.4
38.1
47.9
44.4
53.1
49.2
52.7
60.4
80.2
93.8
41.8
35.4
27.8
34.8
43.7
46.8
58.6
51.0
50.8
57.0
60.8
68.4
89.3
100. 8
22.4
21.8
19.7
26.3
28.9
21.5
24.4
26.9
27.3
27.8
34.6
43.0
48.0
54.9
32 6
36.3
34.7
31.1
26.0
32.7
36.1
29.3
28.3
25.2
S8.9
51.9
59.8
68.5
63.9
59 7
40.5
31.4
36.5
46.9
65.0
59.0
50.9
67.9
87.6
109.5
136.1
156.7
26.3
29.8
24.7
28.0
21.5
18.1
19.3
16.6
24.0
26.1
33.1
39.0
52.9
55.1
2,355. 4
2, 339. 5
2,331. 5
2,350. 9
2,380. 9
2,430. 0
2,436. 0
2,472. 4
2,419. 5
2,411. 7
2, 450. 2
2, 438.8
2, 394. 9
2, 372. 6
149.8
152.6
152.0
153.4
157.2
161.7
156.8
158.4
154.1
153.7
159. 0
155. 7
150. 6
151.4
941.9
918 9
902.1
911.1
921.3
946. 3
959.1
974.4
942.7
948.8
972.8
965. 1
942.1
919.4
137.9
138.0
138.6
140.9
141 5
142.3
140-1
143.8
140.4
140. 7
142. 3
140. 8
137.8
137.2
190.2
189.6
192.1
190.5
190.1
192.8
188.8
192. 0
192.2
189.5
190.3
191.8
188.9
190.1
71.7
74.3
74.5
74.6
74.7
76.7
75. 1
76.0
75.1
72.9
73.4
71.8
70.2
70.1
68.8
68.5
67.5
68.8
70.8
70.4
70.5
72.6
72.5
71.2
72.4
70.9
67.8
66.5
338. 5
337.9
345.5
344.0
346. 8
345.7
350.0
355. 8
349.7
349.7
353.5
358. 2
355.9
355.4
82.4
82.6
81.6
81.6
84.7
87.9
87.9
87,6
87.5
84.5
84.3
84.1
81.6
81.6
147.9
2,300.9
2, 288.9
151.1
150.2
2, 283.1
2,300. 5
151.0
2,326. 0
155. 0
2, 373. 0 i 157.4
2, 399. 2
155.1
2,426. 4
155. 9
2, 368.1
151. 0
2, 365. 0 1 151.2
156.3
2,396. 5
153.6
2, 387. 6
2, 354. 5
149. 3
2,323. 5
149.9
913. 3
894.8
880.9
888.7
895.9
922.5
944.9
957.9
924.4
931.6
955. 5
946. 8
925. 9
902.4
135.8
136.4
136.8
138.6
139.4
139.8
138.7
141.7
138. 5
138.6
139. 3
138.5
136.2
134.7
187.2
187.1
189.3
187. 4
187.4
188.5
186.3
188.9
188.1
186.0
186.7
188.7
185. 9
186.8
69.5
71.6
72.0
72.1
71.8
74.1
73.5
73.8
72 4
70.6
69.9
69.0
68.5
67.2
671
66.7
65.6
67.6
68.5
68 6
69.3
70.7
70.0
69.4
69.1
68.3
66.6
64.7
334.5
333.9
341.2
339.7
343.0
342.5
347.2
352.1
345.8
345.7
348.1
353.2
352.0
351.0
20.7
17.4
17.9
20.3
20.4
12.8
10.0
19.4
25.6
23.0
26.8
23.8
12.8
19.5
1.2
.8
1.0
1.4
1.1
.9
.8
1.9
2.0
2.0
2.1
1.6
.6
.7
5.9
2.4
2.0
4.2
5.4
2.9
2.2
2.6
6.8
5.9
5.2
5.3
4.1
3.7
1.4
.9
1.2
1.6
1.3
1.2
.6
1.4
1.3
1.6
2.3
1.6
.8
1.3
1.2
.9
1.1
1.3
.9
.9
.7
1.4
2.2
1.9
1.7
1.6
.8
1.0
1.8
2.3
2.2
2.1
2.4
1.3
1.0
1.8
2.3
2.0
3.0
2.3
1.2
2.2
33.9
33.1
30.5
30.1
34.4
44.2
26.8
26.6
25.8
23.7
26.9
27.3
27.5
29.7
.7
.7
.8
1.0
1.1
3.4
.9
.6
1.2
.5
.6
.6
.7
.9
22.7
21.7
19.3
18.2
20.0
20.9
12.1
13.9
11.5
11.3
12.1
13.1
12.1
13.4
.6
.7
.6
1.9
1.6
1.7
1.8
1.8
3.4
1.9
1.8
1.9
1.6
1.9
1.6
2.1
2.3
.3
.4
.3
.4
.5
1.3
.7
.5
.4
.3
.7
.9
1.4
.8
.7
.6
.6
.8
.8
.9
1.1
.5
.7
1.4
1.4
1.6
.9
1.6
.8
1.5
1.9
1.5
2.7
2.0
.8
1.4
.3
.3
.3
.3
.7
1.0
.4
.3
.6
.3
.6
.6
.4
.5
6.5
6.0
16.5
12.5
6.1
9.3
San
Francisco
12.2
10.7
15.7
18.1
15.2
12.7
11 4
10.5
18.8
22.9
22.4
23.9
11.3
16.7
41.4
45 8
46.1
35.6
43 7
39.1
42 4
41.0
52.3
63.1
61 3
64.3
49.4
56 5
49.7
50.6
49.7
52.6
55 6
57.8
56.4
55.1
54.6
55.3
53.9
53.1
54.0
53.3
88.3
90.9
91.6
90.2
90.5
94.2
93.3
94.3
95.0
94.4
94.1
92.8
91.8
93.7
59.8
60.2
59.8
63.0
66.4
69.2
69.8
70.6
70.6
68.5
67.0
66.3
65.2
65.6
176.3
175.4
176.5
180.2
181.1
184.9
188.1
191.9
185.0
182.5
187.3
188.0
189.0
188.3
80.8
81.0
80.0
80.1
82.5
85.3
86.3
86.1
85.0
82.8
82.5
82.3
80.3
79.7
48.5
49.1
48.3
51.0
54. 0
56.3
55.2
53.3
53.1
53.9
52.4
51.6
52.9
52.0
87.2
88.8
89.9
88.9
88.8
91.0
91.3
92.1
92.4
92.4
91.9
90.6
90.3
91.7
58.5
58.8
58. 3
61.7
64.8
67.7
69.0
68.8
69 3
67.1
65.4
64.9
64.1
63.7
170.6
169.6
170.5
173.8
174.9
179.3
182.3
185.2
178.2
175.8
179.5
180.3
182.5
179.9
g
1.9
2.3
2.2
3.0
2.8
1.1
1.8
1.0
1.1
1.1
1.0
1.2
.9
.6
1.0
1.4
1.2
1.2
1.3
.7
1.1
,9
1.2
1.1
1.3
1.0
.7
.6
1.3
1.2
1.0
1.0
1.1
.6
.9
.8
1.7
1.3
.9
.9
.7
.6
1.3
1.4
1.1
1.3
1.4
.6
1.2
1.1
1.0
1.2
1.1
1.3
1.0
.5
1.4
1.0
1.2
1.4
1.1
.7
1.5
1.8
1.8
1.7
1.8
2.0
2.3
2.0
1.8
1.7
1.8
2.4
2.3
2.8
2.7
.6
.6
.5
.5
1.1
1.7
1.0
.6
1.0
.5
.6
.6
.7
.8
.3
.3
.3
.3
.6
.8
.6
.4
.3
.4
.5
.4
.5
.5
.4
.3
.4
.4
.8
2.6
1.3
1.0
1.2
.9
.9
.9
.9
.8
2.2
2 1
2.6
2.4
1.7
Q
4.4
2.7
2.6
3.0
3.7
4.0
3.3
10.1
10.6
8.5
6.2
7.4
12.7
11.0
7.2
8.4
5 4
4.3
4.1
3.8
8.0
9.0
14
.2
.2
.3
.5
.3
.3
.2
.2
.3
.3
.3
.4
1.8
1.6
1.6
2.1
1.7
.8
.8
2.0
1.8
1.6
1.9
1.9
.9
2.7
4.1
4.2
4.4
4.3
4.6
4.8
4.9
4.7
5.0
5.2
5.9
5.9
5.6
5.7
599
FEDERAL RESERVE BULLETIN
AUGUST, 1928
FEDERAL RESERVE BANKS—RESOURCE3 AND LIABILITIES AT THE END OF EACH MONTH
[In millions of dollars]
1927
June
July
August
Total gold reserves
Reserves other than gold_
2,998
158
13,002
149
2,998
148
131
Total reserves..
Nonreserve cash
3,156
52
23
3,152
51
3,146
48
Bills discounted
Bills bought:
Outright...
Under resale agreement.
443
I 442
181
30
153
19
Total bills bought
United States securities:
Bought outright
Under resale agreement .
211
172
367
3.1
385
7.5
Gold held abroad
Total United States securities
Other securities
Total bills and securities
Due from foreign banks
Eeserve bank float1
_.
Total reserve bank credit outstanding
Federal reserve notes of other reserve banks
Other uncollected items not included in float
Bank premises...
All other resources
Total resources
_
370 I 392
1.3
1.3
1928
Sep- Octo;ember ber
2,797
169
;2,808
166
2,729
162
12,698
155
2,595
I 148
|2,549
! 146
,095
42
3,054
52
2,867
77
2,966
85
2,974
70
2,891
57
12,854
57
2,742
I 56
2,695
51
401
437
412
582
423
493
599
834
1,021
1,095
118
67
174
76
286
76
310
82
333
46
303
41
296
54
326
31
271
21
194
23
185
250
342
355
392 I 379
344
350
292
217
470
2.9
487
19.5
519
2.9
544
4.1
560
56.6
431
6.1
399
386
8.51
281
14.'
204
16
199
36
437
408
1. )
395
l.Oi
296 I 220
1. 0
1.
522
47
1,082
1,296
12,102
19
514
59
14.8
_jo, 006 4,
12,940
58
| 548
.5
.91
1,276
17
603
59
13.9
April \ May | June
2,922 i 2,805 |2,733
131 I 135 | 134
,194
1,025 1,000.8 1,059
28.8!
48.7!
12.2
3o!
27.81 36.2! 31.3
1,093
•£& « |
17
555
59
17.7
2,231
18
605
60
13.0
11,381 1, 591
,240 11,245 1,345 11,488
.61
.6
.6
.6!
.6|
.61
19.4
34.1
14.2i
17.9
19.4J
6.
63.0!
! 1,416
22
2) |
576
638 i
60
60 i
13. 6|
14. 0
i 1,655
24
651
58
14.7
1,254
11,253 1,365
20
17
563 I 580
59
59
10.4
11.2
13
540
59
11,486
15
534
59
9.6i
1,534
13.
1, 548
235
.5
1,548
36.5
; 1,585
18 |
16
599 ! 562
60 I 6 0
9. 2|
8.0
6. 065
5,072
15.145
5,346
4,957
4,975
4,935
|5,025
5,033
|4, 977
18
1, 659 1,718
22
1, 712
20
1, 697
24
1,766
20
1, 561
17
1,571
13
1,590
15
1,587
18
1,588
I 16
11,628
1, 734
1,717
1,790
1,581
1,588
1,603
1,602
1,606
1,645
4, 945
Federal reserve notes:
Held by other Federal reserve banks.
Outside Federal reserve banks
17
1,704
19
1,669
Total notes in circulation
Deposits:
Member bank-reserve account _
Government
Foreign bank
Other deposits
1,721
1,688 11,676
2,249
30.7
6.
27
2,442 2,371 2,325
2, 277 j2, 299 2,293 2,324 j2,379 2,487 2,391 2,375 12,366
27.
21.2
2.
19.9
39.
23.6
18.4
27.9 ; 21.
30.4,
25.1 12.
|2,313
2,330
Total deposits....
Deferred availability items
Capital paid in
Surplus
All other liabilities
Total liabilities
._
| 603
j 129
.! 229
J 11.3
514
130
229
11.:
5.
24
5.
24
12,341
2,349
555
131
229
13.
605
131
229
14.
5,006 14, 903 |4,945 5,065
Contingent liability on bills purchased for for- j
eign correspondents
j 146
1
4.7
23
1,736
151
166
188
9.5
31
2,386
4.
28
12,413
576
131
229
16.1
5,072
638
132
229
17.
4.6
21
2,531
651
132
233
8.2
4.6
19
2,435
563
134
233
10.4
15,145
5, 346
4,957
186
229
237
6.0
17
6.
17
2,426
2,410
580
137
233
11.
540
136
233
13.
4,975
4,935
5.
19
2, 502
534
138
233
16.0|
2,378
599
562
140 | 141
233 I 233
18. 6 i 18. 5
5,025
J5,033 14,977
261
308
Uncollected items (exclusive of Federal reserve notes of other Federal reserve banks) in excess of deferred availability items.
2,436
9.1
20
600
FEDERAL RESERVE BULLETIN
AUGUST, 1928
FEDERAL RESERVE BANKS—AVERAGE DAILY RESERVES AND DEMAND LIABILITIES IN JULY AND JUNE,. 1928
[In thousands of dollars]
Total cash reserves
Federal reserve bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta _. _
Chicago
St. Louis.
Minneapolis
Kansas City Dallas
San Francisco
__.
_
_- - .
Total
Total deposits
#
Federal reserve notes
in circulation
Reserve percentages
July
June
July
June
July
June
208,748
865,162
160,842
256,765
65,768
115,979
449,861
85,143
77,247
98, 265
59, 507
286,934
172,406
872, 565
165, 523
260,061
72, 726
125,243
444,492
84,850
75,182
98, 572
62,686
293, 600
151,418
919,413
137,157
190,115
70,094
66, 527
355, 399
81, 631
53,314
93, 651
65, 563
188, 347
150, 564
942,085
137, 824
188,888
70,164
67,837
355, 852
81,630
53,962
91,841
65,190
189, 038
140, 235
347,071
130, 781
193, 996
52,858
131, 363
273,172
57, 687
55,448
55,801
30,071
1*3,743
133,302
341,255
130,391
193,929
54,486
135,689
258,646
55, 791
55.005
55,898
31,136
172,077
71.6
68.3
60.0
66.8
53.5
58.6
71.6
61.1
71.0
65.8
62.2
79.2
60.7
68.0
61.7
67.9
58.3
61.5
72.3
61.7
69.0
66. 7
65.1
81.3
2,730,221
2, 727,906
2,372, 629
2,394, 875
1, 642, 226
1,617,605
68.0
68.0
June
July
FEDERAL RESERVE BANKS—RESOURCES AND LI ABILITIES, BY WEEKS
RESOURCES
[In thousands of dollars]
Federal Reserve Bank
Total
I Boston
. Gold with Federal reserve
agents:
July 3
July 11
July 18
July 25
Gold redemption fund with
United States Treasury:
July 3
July 11
July 18__
July 25.__
Gold held exclusively against
Federal reserve notes:
July 3
July 11
July 18.__
July 25
Gold settlement fund with
Federal Reserve Board:
July 3
July 11
July 18._
July 25
Gold and gold certificates held
by banks:
July 3
July 11
July 18___
July 25
Total gold reserves:
July 3
July 11
July 18
July 25
Reserves other than gold:
July 3
July 11
July 18
July 25
Total reserves:
July3
July 11
July 18
July 25
Nonreserve cash:
July 3
July 11
July 18
July 25
.
1.129, 584
1,161,160
1.130, 963
1,119,717
67, 417
105,151
102, 636
104,736
62,1001
67, 36l|
73, 465!
71, 406|
4,337
5,915
7,807
4,961
New
York
175, 652
175, 652
175, 563
175,452
Philadelphia
71,050
74,754
75,69li
72,270
17, 559 9,158
21, 002 6, 501 i
19, 652 8, 589
18,026 11,042
Cleveland
Richmond
Atlanta
Chicago
132,034
131,709
133,188
132,321
23,136
26,646
25,190
23,730!
84,010!
79,936!
68, 9691
74,594
4, 575
5, 548
5,485
5,131
2,050
2,738
3,152
3,589
3,320
4,211
4,327
4,416
8,284!
7,157!
9,287|
8,231!
136,609
137,257
138,673
137,452
25,186
29, 384
28, 342
27,319
87, 330
84,14r
73, 296
79,010
St. Minne- Kansas! Dailas
Louis apolis
City
215,209
18,793
215,012: 25,441
214, 940! 24,402
214,808! 23,875!
47,138!
45,920!
45,920!
45,148;
45, 3621
44,266;
43,745)
42,593!
18, 634
19,071
16.2381
15,698!
231,149
217,602
204,481
194,492
6,221
5,973!
6,428|
5,435;
1,579
2,517!
2,255|
2,845;
2, 343|
3, 014!
3,142;
3,883i
,
1,577!
1,7701
l,604J
1,208
1,571
2,243
223,493;
222,169
224,227
223,039
25,014
31,414i
30,830|
29,310]
48,71
48,437!
48,175'
47,993;
47,705
47, 280!
46,887!
46,476?
20,412
20,648
18,008
17,302
232, 045
218, 810
2C6,052
196, 735
33, 667 24, 377!
36, 9381 24, 2471
19, 333! 20, 798!
29, 389! 18, 5771
38, 628
42, 598
32, 612
38,361
19, 990!
25, 679j
19,
9, 9371
16,' '67i
39, 964
38,194
34, 224
35, 321
6, 73.
6,408!
6, 313
7, 235
14, 066
14, 051
16,448
16, 487
26, 396
27,115
26, 755
26, 510
77,679 93,068
77,487 96,286
74,075 85, 812
71,643 92,072
54,468
60, 3781
54,393
50,556
298,405
284,119
267,031
258,566
1,191, 684
1, 228, 521
1, 204, 428
1,191,123
71, 754
111,066
110, 443
109, 697
193, 211
196, 654
195, 215
193, 478
80,208
81,255
84,280
83,312
699, 796
666, 960
661, 912
680, 561
84,441
63,384
62, 992
61,089
171,
112,175
195, 757
194,642
37,
55,
39,
47,
056
005
784
359
53, 795
68, 745
65, 834
68, 338
27, 472
15, 995
17, 865
12,113
7,118
8,423!
5,204:
7,2061
161,606
175,577
147,572
151,399
655, 010
699,395
733, 252
732, 347
22, 603
25,960
27,07<
26, 565
439,407
472, 937
500,098
499,901
25,
27,
27,
26,
612
298
507!
710
39, 820
38, 522
40, 543
41, 526
6,415
9,148
8, 83l|
8,7461
8, 250
8,183!
8,147!
8,359
49, 428
53,647
54,448]
52,711|
11,693:
11, 323|
11, 9841
12, 524!
2, 546,490
2, 594, 876
2, 599, 592
2, 604, 031
178,
200,410
200,511
197, 351
804, 300
781, 766
891,070
888,021
142,876
163,558
151,571!
157,381'
230,224
244,524
245,050
247,316
59,073! 102,698! 434,527
54, 527 100,753: 451,393
55, 038 86,6471 426,247
48,178 94, 575' 427,149
70,3741
79,6751
62,147J
71,223i
146,100
152,361
159, 244
157,154
14, 042
15, 678
16,032
14,795
28, 267
30,073
30, 549
31, 530
7,272:
7,693!
8,309!
8,065!
14,455!
14,019
15,609
14,141
11,183!
11,009
11,631
11,881
13,224
15,427
15,729
15, 524|
2, 692, 590
2, 747, 237
2, 758, 836
2, 761,185
192, 840
216, ""
216, 543
212,146
832, 567
811,839
921,619
919,551
54, 273
63,113
65, 096
64, 517
4,431
5,"""
6,900
6,508
16, 804
20,127
20,302
20, 433
150,148: 244,679
171,251;
-"" ~ " ' 258,543
159,880; 260,659
165,446' 261,457
1, 7 M !
1, 624!
1, 641!
3, 387J
3, 873|
4, 7661
17,017|
17,703!
18,598;
18,864!
15,992
16,881
18,912
19,283
70,256 119,715! 450,519
65,536! 118,456! 468,274
6,669 105,245! 445,159
60,059 113,439! 446,432
6,239
4,160
4,174
4,054|
4,237!
4, 725'
5,101|
5, 282
San
Francisco
4, 585
4, 803
5,102!
5, 073
2,714i
2,7111
2,4311
2, 388!
I
6,421
5,425
5, 573
5 592
*
83, 5981 80, 393;
99, 489
95,102
0,1981 101,711
77,876) . 6, 506! 91, 385
86, 747 74,03l| 97, 664
i
6,737
l,07l|
2,999
1,660
8,112
3,850i
1,581!
2,1851
8, 862 i 3, 747!
1,339;
1,994|
3,971
8,938
1,097j
2, 254 i
6,319
6,156
5,581
61,148
66,697!
60, 549
56,137
2,331
2,955
2,388
2,499
8,833
9,423
9,715
9, 510
307,238
293,542
276, 746
268, 076
2,663
3,935
3,882
3,532
601
FEDERAL RESERVE BULLETIN
A U G U S T , 1928
FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued
RESOURCES—Continued
[In thousands of dollars]
Federal Reserve B a n k
Total
Boston
Bills discounted:
Secured by U. S. Government obligationsJuly 3
July 11
July 18
July 25
Other bills discounted—
July 3 . .
July 11._
_
July 18._
_.
July 25....
Total bills discounted:
July 3
July ll._
July 18
_.
July 25
Bills bought in open market:
July 3
July 11
July 18
July 25
U. S. Government securities:
BondsJuly 3.-July ll.__
July 18
_
July 25
Treasury notesJuly 3.-_
July 11
July 18....
July 25.__
Certificates of indebtednessJuly 3 . - .
July 11
July 18
July 25
Total U. S. Government securities:
July 3 . . . .
July 11
July 18
July 25..
Other securities:
July 3 . . July 11
July 18
July 25
Total bills and securities:
July 3
July 11
July 18
July 25
Due from foreign banks:
July 3
—
July 11
July 18...
July 25
Uncollected items:
July 3
July 11
July 18
July 25
Bank premises:
July 3
-.
July 11
July 18
July 25
All other resources: •
July 3
July 11
July 18
July 25
Total resources:
July 3
July 11
July 18
July 25
New
York
Phila- Cleve- Richdelphia land mond
Atlanta
St. Minne- Kansas
Louis apolis City Dallas
Chicago
777,480
713,372
615,027
596,385
37,581
30,305
23, 572
25, 772
323,04c
333, 29*
205,81
202,14C
74,479
62, 519
70, 733
67, 307
79,05S
68,408
53, 95C
58,81]
18,303
21, 455
20, 389
25,265
16,48* 144, 604
19, 944 104, 772
19,06c 121, 61
12, 53S 115, 75c
23, 626
19,189
23, 55;
22,26,
5,178
5,063
4,941
7,324
413, 530
375,896
396, 730
428, 724
44, 786
28,043
38, 599
40, 613
113,492
116,335
98,512
108, 204
31, 529
23, 229
23,060
20, 063
37,
32,
36,
37,
07(
69c
97C
93,
32,268
31, 956
32,931
33, 370
47,
46,
56,
56,
44,
57
51:
37c
36,48£
33, 751
32, 79€
38,63C
30, 71:
28,103
37, 262
31,686
2,957
2,870
5,284
1,191,010
1,089,268
1,011,757
1,025,109
82,367
58,348
62,171
66,385
436, 53'
449,633
304,323
310,34'
106, 008 116,13c
85,748 101,102
93, 793 90, 92C
87,37C 96, 74
50, 571
53,411
53,320
58, 635
63,
66,
75,
68,
93c
52C
57f
90c
181, 08£
138, 523
154,412
154,39:
54, 33'
47, 292
60,819
53, 951
209, 664
187,642
181,035
169,083
24,88]
24, 915
22, 268
19,240
49, 409
33,486
36, 063
28,812
55, 701
60, 968
56,024
55,044
704
704
704
704
90, 687
87, 720
89,505
87,206
San
Francisco
12,34
942
6,435
5,697
12, 395
14,115
38,702
37,673
46,653
35, 677
13, 75;
14,330
15, 594
15, 578
5,475
5,782
5,855
8,496
17,553
12, 226
13, 355
31,881
8,135
7,933
10, 225
13, 213
23, 733
19,379
27,941
25,000
11,910
11,479
18, 250
22, 611
56, 255
49, 899
60, 008
67, 558
11,485 12, 687
10,407 12, 003
11,169 11, 362
9,039 10,179
21,158
21,033
19, 265
20,141
5,r~
20,407
20,449
19, 710
17,079
18,789
18,107
16, 509
18,79£
6,740
6,185
7,050
13, 97c
13, 34f
13,14
13, 00c
14,354
14, 589
12,466
12, 807
322
147
14'
143
13,183
12,426
12, 744
12,793
2,084
7,084
1,384
1,384
584
585
585
585
505
505
505
504
1,153
1,153
1,153
1,153
26
26
32
14'
20,002
20,26"
21, 017
19, 927
7,125
7,125
7,125
7,125
4,518
4,519
4,519
4,519
11,140
11,140
11,140
11,139
7,819
7,819
7,819
7,819
41
41
41
41
2,324
2,324
2,487
2,486
17,445
15,020
15,669
14,061
9,571
9,571
9,723
9,723
27, 667
27, 667
27,843
27,843
806
806
86
862
3,240
3,241
3,289
3,289
6,199
5,805
5,879
5,189
4,230
4,230
4,312
4,312
2,948
2,948
3,091
3,091
4,024
3,875
3,936
3,936
12,233
12, 233
12,414
12,414
73,177
69,077
63,813
65,391
4,549
4,589
4,426
4,427
21,394
18,193
15, 214
15, 213
11,454
11,492
11, 340
11,340
5,682
5,726
5,550
5,550
1,571
1,585
1,529
1,529
2,008
1,938
1,940
1,898
10,371
9,656
8,832
10,052
2,276
2,296
2,214
2,214
4,434
4,470
4,327
4,327
4,376
4,024
3,514
3,914
5,062
5,108
4,927
4,927
219, 565
217,765
209,34f
207,641
7,577
7,617
7,617
7,617
40,923
40, 297
32, 267
30,658
21, 609
21,648
21,648
21,648
33,854
33,898
33,898
33,897
3,530
3,544
3,544
3,544
5,274
5,205
5,261
5,331
36, 572
35, 728
35, 728
35,168
11,024 18, 522
11,045 18,558
11,045 18,558
11,045 18, 557
16, 219
15, 718
15, 269
15,669
17, 336
17, 382
17, 382
17, 382
7,125
7,125
7,125
7,125
490
490
490
490
490
490
490
490
1, 620, 729 114,825
1,495,165
1,402,624
92,056
1,402,323 93,242
526,869
523,416
372, 653
369,814
148,024
127,845
135,151
126,097
168, 778
153,108
141,327
149,438
63,115
63, 695
63,049
69,229
83,182
85,065
93, 983
87,241
232,015
188,840
202, 606
202,366
61, 784
54, 564
68,091
61, 219
32,832
31,894
34, 504
37,541
53,740
48,344
57, 668
52, 596
40,816
39, 200
44, 881
48,459
94, 749
88,314
96, 655
105,081
571
571
573
573
37
37
37
37
217
217
218
218
47
47
47
47
51
51
5.
52
25
25
*5
25
21
21
21
21
69
21
21
21
21
13
13
13
13
18
18
18
18
17
17
17
17
35
35
35
35
758,391
687,818
740,451
626,843
76,463
67,060
73,458
62,341
234,444
183,140
202,916
167, 632
67,624 66,687 55, 343 23,120
54,145 60,490 51,647 24,437
59, 269 71,180 51,638 24,251
45,402 21,767
50,344
88,834
87,457
96, 603
79, 587
28,932
32,125
32,896
27,251
14,282
15, 574
15, 561
13,337
37, 782
43,089
44,448
41,035
25,497
24,874
24,996
22,935
39, 383
43, 780
43, 235
36, 228
60,047
60,056
60,063
60,113
3,824
3,824
3,824
3,824
16, 563
16, 563
16, 564
16,568
6,806
6,806
6,806
6,806
3,437
3,437
3,436
3,481
2,832
2,833
2,833
2,833
8,720
8,730
8,720
8,720
3,892
3,900
3,901
3,902
2,202
2,202
2,202
2,202
4,:
4,:
4,308
4,;
1,877
1,877
1,883
1,883
3,834
3,834
3,834
3,834
195
247
211
221
1,222
1,239
1,243
1,258
437
403
401
388
1,315
1,301
1,297
1,294
956
997
962
994
535
546
552
556
851
824
1,035
974
429
418
407
406
487
482
500
510
561
572
570
577
1,
369, 504
1,556, 760 356,911
357,951
1,535,452
1,495,591 345, 738
491, 610
484,110
486,033
482,113
198,852
188,903
189,392
182,638
234,422
236,838
232,731
231,877
787,850
762,469
762,981
747,106
181,761
190,108
187,084
183,667
131,644
132,286
131,160
129,195
132,173
136,102
135,214
132,440
448,463
434,012
424,957
417,363
1,472
1,458
1,180
1,375
8,520
8,563
8,431
8,628
5,195,121
5,062, 523
5,036,074
4,924,182
1,752
1,752
1,752
1,752
392,480
383,951
392,891
378,173
197,426
200, 073
200,228
198,281
602
FEDERAL RESERVE BULLETIN
AUGUST, 1028
FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued
LIABILITIES
[In thousands of dollars]
Federal Reserve Bank
Total
Federal reserve notes in circulation:
July 3 . . .
July 11
July 18
July 25
._.
Deposits:
Member bank—reserve accountJuly 3
July 11
July 18
July 25
GovernmentJuly 3
.___
July 11
July 18
July 25
Foreign bank—
July 3
July 11
July 18
July 25
Other depositsJuly 3
July 11
July 18.
July 25
.Total deposits:
July 3
July 11
July 18
July 25
Deferred availability items:
July 3
July 11..
July 18
July 25
Capital paid in:
July 3 . . .
July 11
July 18.
July 25
Surplus:
July 3
July 11
July 18
July 25
All other liabilities:
July 3
July 11
July 18
July 25
Total liabilities:
July 3
July 11
July 18
July 25..
Boston
New
York
Phila- Clevedelphia land
San
Francisco
St. Minne- Kansas Dallas
RichCity
mond Atlanta Chicago Louis
1,660,132
1,640,150
1, 618,863
1,606, 582
138, 573
138, 511
139,135
139,299
349, 202
341,685
340,243
336, 272
132,416
130,408
128,125
126,349
194,158
197, 372
191, 623
191,889
53, 339
53,096
52, 212
51,140
133, 363
132,100
130, 338
129, 096
271, 227
273,054
271, 337
271,734
56, 769
57, 917
57, 683
56, 786
55,957
56,117
55, 516
54, 723
55, 543
55, 627
55,432
55,933
30, 353
30,097
29, 898
29, 498
189, 232
174,166
167, 321
163,863
2,402, 892
2, 365, 396
2, 306, 632
2, 299,893
151,
150,
152,
148,
206
339
332
081
936, 503
929, 535
894,417
889, 235
138, 720
138, 344
136, 853
132, 693
190, 527
185, 773
183, 547
188, 535
71, 598
67,930
68, 302
65,983
63,485
65,657
63, 886
64, 389
379, 474
355, 867
345,040
345,495
78,109
82,087
77, 639
80, 583
51, 535 94,110
50,936 90,611
50,T~~ 89,422
50, 339
63,101
65, 277
65,126
64,191
184, 524
183, 040
179, 770
179, 481
13, 735
20, 331
558
784
454
625
6,376
1,292
3,170
1,681
2,978
681
982
1,321
970
1,231
1,019
1,584
1,924
250
422
2,901
727
1,284
316
2,
1,880
1,076
2,411
1,107
440
1,203
919
1,041
821
617
802
1,031
317
1,207
1,056
1,385
935
1,637
716
1,901
3,542
968
1,468
3,668
8,852
9,476
10, 057
8,651
635
728
728
728
2,773
2,502
3, " •
1,678
804
923
923
923
432
495
495
495
356
408
408
408
1,177
1,350
1,350
1,350
364
418
418
418
229
262
262
305
350
350
350
296
340
601
1,010
1,010
1,010
26,104
20, 339
18, 618
17, 241
473
144
120
77
16, 548
11,171
8,814
8,915
59
194
164
122
1,369
1,639
1,368
l, 16:
86
174
224
255
77
64
58
90
1,208
1,445
1, 640
1,047
361
321
352
329
216
212
227
207
662
413
438
36
24
39
28
21,468
12, 230
340
5,009
4,538
5,174
4,620
2,459, 316
2,407, 441
2,349,042
2, 346,116
152,872
151, 995
153,634
149, 511
962, 200
944, 500
909,485
901, 509
142, 561
140,142
138, 922
135,059
193, 746
189, 653
186,944
192, 291
74,040
68,849
69,443
69, 634
64, 645
67,413
64, 668
66,973
383, 739
359, 738
350,441
348,999
79, 274
84,029
79,328
82,371
52, 801
52,027
51, 589
51,839
95,394
92, 581
91,266
93,012
64,368
67,278
66, 221
6Q, 460
682,191
619, 630
672,160
574, 543
72,126
64,474
71,007
60, 253
202,611
154, 506
169,458
141,175
57,621
49, 391
53, 862
47, 231
63, 549
56, 799
67,116
57,458
51,908
47,374
48, 250
42.323
20, 304
21,123
21,413
19,548
78,819
75,461
86, 899
71,896
28,964
31,370
33,171
27, 587
11,870
13,120
13,01 1
11, 568
32,615
37,980
39, 629
35,413
24,203 37, 601
25,453 42, 579
25,825 42, 513
23,174 36,917
141,210
143, 221
143,116
143,024
9,893
9, 893
9,895
9,895
45, 530
47,541
47, 564
47, 56<
14,195
14,195
14,178
14,178
14,281
14, 271
14,271
14, 271
6,233
6,233
6,083
6,083
5,209
5,239
5,239
5,145
18,215
18,203
18,209
18, 211
5,343
5,343
5,381
5,381
3,029
3,022
3,022
3,021
4,204
4,204
4,204
4,202
4,326
4,325
4,318
4,318
10, 752
10, 752
10, 752
10, 755
233, 319
233,319
233, 319
233,319
17,893
17, 893
17, 893
17,893
63,007 21, 662 24,021
63,007 21, 662 24,021
63,007 21, 662 24,021
63,007 21,662 24,021
12.324
12, 324
12, 324
12,32'
9,996 32, 778 10,397
9,996 32, 778 10, 39:
9,996 32, 778 10, 397
9,996 32, 778 10, 397
7,039
7,039
7,039
7,039
9,046
9,046
9,046
9,046
8,527
8,527
8,527
8,527
16, 629
16, 629
16, 629
16, 629
905
967
1,077
1,119
3,072
3,235
3,317
3,488
948
961
977
1,005
324
635
651
675
396
422
425
463
573
650
641
741
491, 61C '8,852 234,422
484, Hi
236, 838
486,032 189,392 232, 731
482,112 182, 638 231,877
787, 850
762,469
762, "
747,106
181, 761
190,108
187, 084
183,
131, 64
132, 286
131,160
129,195
197, 426
200,073
200, 228
198,281
132,173
136,102
135, 214
132, 440
448, 463
434,012
424,957
417, 363
65. 9
64. 6
68. 6
68. 5
62.3 63.0
65. 6
58. 5
80.2
80.8
78.1
76.1
1,123
18,953
18, 762
1,185
19, 574 . 1,327
20,598
1,322
5,195,12:
5,062, 52c
5, 036, 07'
4, 924,182
392,48C
383, 95:
392, 89:
378,173
6,386
5,521
5,695
6,064
1,049
1,113
1,202
1,259
1, 628, 936 369, 504
1,556,760 356,91:
1, 535, 452 357,95:
1,495, 59: 345,738
1,855
1,994
2,058
2,183
1,008
1,02"
1,081
1,134
1,014
1,052
1,124
1,145
193, 676
189, 236
187,101
188,458
MEMORANDA
Ratio of total reserves to Federal reserve note and deposit
liabilities combined (per
cent):
July 3
July 11
July 18
July 25
_...
Contingent liability on bills
purchased for foreign correspondents:
July3.
July 11
July 18
July 25
Own Federal reserve notes held
by Federal reserve bank:
July 3
July 11
July 18
July 25
74.4
74.
73.4
63.5
63.1
73.7
74.3
54. C
63.
59. S
63.3
63.1
66.8
68.9
68.1
55.2
53.7
54.8
49.7
60.5
59.4
54.0
57.9
74.0
71.6
71.
61.4
67.0
56.
62.
73.9
74.2
71.
69.5
309,036
310,888
305,18C
305,455
23,106
23,42:
23,18$
22,885
87,837
.86, 670
83,196
86,329
29, 26J
29, 66'
29, 372
28,992
32,040
32,477
32,155
31, 739
15, 712
15,926
15,768
15, 564
12 939
13^ 116
12, 985
12,818
42,823
43,407
42,976
42,42!
13,247
13,428
13, 295
13,123
8,318
8,432
8,348
8,24C
11, 091
11, 242:
11,130|
10, 987
360,292
401, 36t
415,40E
415,85C
23,98:
29, 77'
28, 038
28, 574
116, 221
126, 702
130, 672
127,416
23, 634
26, 74i
28, 566
32,721
25,838
28, 900
31,627
31,394
15,476
15, 454
15, 762
15,374
28,337
27, 496
26, 991
27,047
43, 271 9,349
45, 092 12, 208
45,896 12,403
45, 639 12, 773
8,148
7,070
7,67:
7,092
7,636
9
9,
7,847
10, 783
10,930
10,82:
10,68:
21,874
22,172
21, 952
21,668
52,421
6, 374 66,620
6,24i 72,444
6,10C 73,873
603
FEDERAL RESERVE BULLETIN
A U G U S T , 1928
FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS
[In thousands of dollars]
Federal Reserve Bank
Total
Boston
Federal reserve notes received
from comptroller:
July 3
Julyll._
July 18
July 25
Federal reserve notes held by
Federal reserve agent:
July3.
July 11
July 18
July 25
--.
New
York
2,819,200 236,504 735,703
2, 824. 67i 234, 238 738,50;
2,831,152 231, 723 745, 355
2, 822,202 228,823 738,128
Phila- Clevedelphia land
256, 426
259, 302
256, 280
255,313
92, 849
91, 759
90, 303
90,843
228.730
226,056
224, 389
223, 613
429, 748
433, 646
437, 633
444,473
83, 518
86,46;
87,126
87, 079
115, 2501
115, 500
120. 400
127,100
17,400 15, 579
16,340 15. 279
17. 040 18,319
17, 520 18, 919
799, 770
73,950
65,950
64, 550
60, 950
270, 280
270,120
274, 440
274,440
29. 700
30.300
27, 700
25,400
36, 430
33,030
33, 030
32, 030
24, 034
23, 209
22, 329
24,329
67, 030
66,460
67, 060
67,470
2,020, 425
2, 041, 515
2. 034, 27:
2, 022, 432
162, 554
168, 288
167,173
167,873
465, 423
468,387
470. 915
463, 688
156, 050
157,154
156, 691
159, 070
219,996
226, 272
223. 250
223,283
68.8151
68,550
67.974
66,514
161.700
159.596
157,329
156,143
355, 376
354, 977
352, 476
352,477
35. 300
35,300
35,300
35,300
153,161
153,161
153,161
153,161
50, 000
50, 000
50, 000
50,000
20, 395
20, 396
20, 395
20,396
96, 552
99, 815
95,355
91,446
19,117
16,851
14, 336
11,436
17,491
17,491
17, 402
17,291
11, 273
8,977
10, 914
12,493
12, 034
11, 709
13,188
12, 321
2,741
6,250
4,795
3,334
5,000 59, 777
5, 000| 65, 777
5,1
64, 777
5,000 59,777
70,000
70, 000
70, 000
70,000
798. 775
783,160
Minne- Kansas
Dallas
apolis
City
185,750
187,454
184,391
184,470
Federal reserve notes issued to
Federal reserve bank:
July 3
July 11
-.-.
July 18
..-.
July 25
Collateral held as security for
Federal reserve notes issued to
Federal reserve bank:
Gold and gold certificates—
July3
-...
July 11
July 18
July 25
Gold redemption fundJuly 3
-.-.
July 11
-.-.
July 18
July 25
Gold fund—
July3
July 11
July 18
July 25
Eligible paper—
July3
July 11
July 18
July 25
677, 656
706, 368
683,132
675, 794
13, 000
53, 000
53 000
58,000
1, 318, 795
1, 222, 349
1.157, 472
1,160, 789
107. 229
83,244
84, 420
85, 606
447, 714
455, 516
326, 218
327, 501
85, 603
84, 684
94, 758
90,474
134, 576
118,064
106, 935
114, 593
Total collateral:
July 3.
July 11
July 18
July 25
2, 448, 379
2, 383. 509
2, 288,435
2,280, 506
174, 646
188, 395
187,056
190, 342
623,366
631.168
501,7811
502,953i
156,653
159,438
170,449
162,744
266,610
249, 773
240,123
246, 914
RichSt.
mond Atlanta Chicago Louis
79, 684 96.199
78,466 96.123
81, 506 100,141
80, 73'
San
Francisco
57,436
56,873!
56, 540J
56,000
336,653
335,786
335, 765
333,736
21.102
20, 402
20.402
20, 402
95,000
95,000
96,000
96, 000
314,498 66,118 64,105 63,179 36, 33'
318,146 70,125 63,187 64, 553 36, 471
317, 233 70. 086 63,18: 64, 531 36,138
317,373 69, 559 61, 815 63, 780 35, 598
241, 653
240, 786
239, 765
237, 736
8,300
7,900
7,900
7,900
14,167
14,16"
14,167
14,167
2,541
1,502
2,975
4,971
3,753
3,753
2,981
33, 020
31, 570
35, 610
35, 210
12, 303
12, 303
9,803
9,803
40,000
40, 000
40, 000
40, 000
2.502
3,406
2,885
3,733
2,331
2.768
2,435
1,895
17,130
16, 871
16, 686
16,435
9.500 28,000
213,000
213, 000 15, 000 28, 000
213, 000 15, 000 28, 000
213,000 13,000 28,000
42. 860
40, 860
40,860
38, 860
4,000
4,000
4,000
4,000
174,019
160, 731
147, 795
138, 057
58, 811 77, 833 195, 318
56, 522 79, 809 152.980
58, 679 88, 657 166,750
59, 953 81,764 167, 057
54. 642
47,425
60,952
54, 076
21, 266
20, 315
22,952
25, 982
35, 096
29, 634
38,955
33, 908
24, 486
23. 444
29, 594
32, 773
76,221
70, 712
78, 602
87,102
81,947 161, 843
83,168 159, 745
157,626
83, 683 156,358
73, 435
72,866
85,354
77, 951
68, 404
66. 235
68, 872
71,130
80, 458
73.900
82, 700
76,501
43,120
42, 515
45, 832
48,471
307,370
288. 314
283, 083
281,594
21,
21,
21,
21,
750
750
750
750
3.760
7,186
5.519
4,744
58, 500
51, 000
41, 700
48,100
2,209
2,01
1,940
1,
410, 527
367. 992
381, 690
381,865
604
FEDERAL RESERVE BULLETIN
A U G U S T , 1928
MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS HELD BY FEDERAL RESERVE BANKS
[In thousands of dollars]
Total
Bills discounted:
July 3
July 11
July 18....
July 25
Bills bought in open market:
July 3
July 11
July 1 8 . . . .
July 25
Certificates of indebtedness:
July 3
July 11.
July 18
July 25
Within
15 days
16 to 30
31 to 60
days
61 to 90
days
91 days to
6 months
1,191,010
1,089,268
1, Oil, 757
1,025,109
1,044,234
936,325
828,869
844, 643
37,114
39, 563
40,928
38, 675
52,506
54,585
68,759
71,495
40,859
43,594
59,333
57,393
16,224
15,136
13,802
12,834
209, 664
187,642
181,035
169,083
94,671
73,920
76,020
57,426
43,862
37,839
29,072
36,340
37,931
43,478
44,012
44, 314
26,099
26,683
24,602
25,410
7,101
5,722
7,329
73,177
69,077
63,813
65,391
6,942
3,220
405
805
Over 6
months
73
65
40, 548
41,348
40,900
41,428
25,687
24, 509
22, 508
23,158
G O L D S E T T L E M E N T F U N D — I N T E R B A N K T R A N S A C T I O N S F R O M J U N E 21 T O JULY 18, 1928, INCLUSIVE
[In thousands of dollars!
Transfers for Government account
Transit clearing
Federal reserve note
clearing
Changes in ownership
of gold through transfers and clearings
Debits
Decrease
Federal reserve bank
Debits
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis .
Minneapolis
Kansas City
Dallas
San Francisco
_
Total 4 weeks endingJuly 18, 1928._
June 20, 1928
July 20, 1927
J u n e 22, 1927
Debits
Credits
Credits
2,000
5,500
16,000
500
50,300
700
6,000
4,500
1,300
6,700
5,000
2,600
9,800
500
1,000
952,675
3,154,164
705,527
754,379
718,208
299, 348
1,331,268
515,030
189, 536
430,198
300,811
448, 540
1,002, 878
3,166, 334
712,084
751,828
713,427
291, 293
1,322,947
506,640
187, 705
419,079
304, 623
420,846
3,609
8,894
4,713
6,641
1,913
3,142
7,082
2,054
1,314
1,829
1,063
2,915
3,817
10,245
4,712
3,513
2,977
2,429
6,660
3,075
1,940
2,905
1,271
1,625
88,900
153,300
76,300
225,900
88,900
153, 300
76,300
225,900
9, 799,684
9,871,855
9, 207, 869
11,890, 725
9,799,684
9,871,855
9,207,869
11,890, 725
45,169
46, 664
51,624
64, 788
45,169
46,664
51,624
64, 788
6,000
25,100
7,300
6,000
5,500
9,000
4,000
2,500
_
Credits
Increase
44,9H
38,721
44
5,679
4,717
16,468
6,043
4,869
1,395
2,243
980
43,984
85,027
85,027
Balance in
fund at
close of
period
62,991
195,757
39,784
65,834
17,865
5,204
147, 572
19, 333
20,798
32,612
19,937
34,224
661,911
694,772
549,380
591, 050
605
FEDERAL RESERVE BULLETIN
AUGUST, 1928
ALL MEMBER BANKS
BORROWINGS FROM FEDERAL RESERVE BANKS, BY STATES
[End of month figures. In thousands of dollars]
1928
1927
State
June
United States
New England:
Maine
New Hampshire
Vermont
M assach usetts
Rhode Island
_.
Connecticut
Middle Atlantic:
New York
New Jersey
...
Pennsylvania
East North Central:
Ohio
Indiana
Illinois
Michigan.. _
Wisconsin
West North Central:
Minnesota
Iowa
Missouri
North Dakota
South Dakota
Nebraska
|
Kansas
j
South Atlantic:
DelawareMaryland
District of ColumbiaVirginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
East South Central:
Kentucky
Tennessee.
Alabama
Mississippi
•
West South Central:
I
Arkansas
Louisiana
Oklahoma
Texas
Mountain:
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Pacific:
Washington
!
Oregon
California
443,450
July
DecemAugust SeptemOctober November
ber
ber
January
February
March
442,158 400, 524 437,425 411, 525 477,025 581, 503 423,310 492,568 598,681
April
May
June
834,228 1,021,352 1,095,423
2,300
2,231
1,375
35,360
487
4,354
733
1,366
1,078
33,511
1,304
3,343
951
927
884
28, 760
2,047
4,439
2,394
875
783
25, 520
1,772
2,530
1,808 1,473
909
730
636
805
1,128
649
558
20,388 33,404 24,314
787
552
304
2,504 3,096 3,083
752
1,112
534
33, 751
102
2,196
718
1,305
698
49,918
396
3,260
909
2,746
992
44,350
1,225
1,809
73,559
25,548
76, 794
30,156
49, 741
84,443 104,472
24,924 25,258
45, 242 51, 733
83,170 129, 769 266,687
22,225 22,140 19,150
46,622 57,920 104,217
103,025
19,923
59,006
19, 642
83,277
128,001
23,051
80,029
20,777
4,975
18,996
24,644
11,008
21,992
5,189
19,662
18,445
7,513
13,485
3,321
9,712
13, 751
4,679
21,483
3,545
17, 639
10,691
3,944
24,403 15,868 15, 535
3,577 1,686 3,115
25,266 23, 797 14,203
21, 582 27, 696 27,231
4,132 3,320 6,658
12,783
3,587
15,356
17,884
2,735
34,405
18, 645
23,093
12,932
33,392
4,825
66,447
23,152
16,557
28,779
5,491
63,390
33,599
14,781
42,039
4,361
64, 288
52,692
13,837
43,741
5,191
74,320
59,147
15, 555
876
3,463
27,646
1,171
1,262
2,289
2,314
1,547
3,509
3,461
2,913
17,850
1,761
1,283
1,310
1,338
1,416
17,141
1,554
1,479
1,674
1,794
16,947
830
794
1,697
1,417
722
1,033 2,375
4,555 6,870 4,023
9,913 11,837 11,475
427
312
319
570
695
640
5,167 9,119 4,705
2,980 1,246
2,408
4,586
16,228
472
619
4,182
1,199
2,895
3,772
20,277
369
508
2,940
1,061
2,696
3,887
24,168
543
381
4,429
1,052
12,814
3,599
20, 753
575
391
5,990
1,452
8,371
4,015
45,216
734
421
4,992
3,269
5,696
1,547
43,707
688
511
2,329
1,969
317
5,150
1,315
11,267
3,227
6,977
1,529
5,467
4,142
711
5,547
1,465
11,289
2,497
5,293
1,323
4,722
4,406
474
783
7,098 5,498
920
500
5,877 11,894
5,363
1,631
1,998
2,429
1,425
1,671
6,575 3,582
2,619
3,502
620
11,744
320
9,297
3,367
4,738
2,172
4,013
1,799
719
5,315
11,868
2,710
7,602
2,610
5,229
1,946
597
3,747
550
13,347
3,543
7,449
3,471
7,041
1,345
979
9,547
245
14,257
3,497
10,043
4,358
20,600
1,360
1,977
11,214
1,520
15,394
3,951
10,105
3, 739
23,114
2,643
3,063
8,323
3,895
19,755
5,847
12, 563
2,812
9,667
3,914
2,830
1,945
2,177
1,842
4,641
1,225
3,587
2,803
4,961
1,639
8,276
1,900
6,412
3,456
14, 597
4, 540
10,412
4,103
14,783
4,378
8,632
5,464
13,935
5,444
11,075
5,180
2,332 2,001
210
11,156 21, 557 16, 620
688
2,388 1,245
848
10,323 6,436
2,688
13,853
1,325
4,960
2,017
12,926
1,661
1,949
1,606
9,014
2,287
3,991
2,529
13f 8S9
3,656
9,302
2,077
20, 703
5,006
9,938
2,680
15,688
4,646
8,192
21
1C1
48
1,018
234
190
168
41
199
48
1,542
129
164
255
2,561
124
183
241
2
2,527
187
198
860
126
339
103
3,407
175
184
2,163
250
405
129
3,773
77
180
1,644
231
554
96
1,305
178
187
1,278
330
393
3,978
1,543
958
45,210
1,317
1,948
1,566
2,203
48,191
3,540
3,463
81,553
3,720
3,077
66,068
2,492
1,886
9,873
836
8,629
81
5,278
3,441
646
2,742
485
5,002
2,281
6,802
2,030
6,571
1,817
2,8(10
5,882
2,504
532
1,477
115
7,520
2,455
7,856
2,607
6,457
3,445
7,799
2,314
6,107
2,180
8,199
4,028
6,177
3,045
6,503
5,276
5,310
4,028
9,575
6,879
3,670
3,725
1,353
11,125
2,316
5,481
2,343
20,169
1,995
9,393
3,306
12,612
2, 583
12, 574
4,550
8,736
4, C95
4,767
604
1,217
192
1,503
170
240
995
761
1,582
278
3,568
258
346
2,201
1,328
427
1,366
186
389
1,977
393
779
230
1,388
200
325
1,171
1,946
1,684
30,470
3,271
1,811
44,064
2,421
672
38, 763
1,613
492
46,218
79
551
104
1,938
99
284
952
6,911
3,096
5,380
1,563
351
1,282
10
180
198
2, 254 1,788
875
247
38,955 38,490
2,845
2,411
1,239
1,072
1,332
934
36,340
593
1,759
2,123
2,334
1,029
69, 264
5, 918
5,203
2,672
2,584
1,711
62, 703
4,291
7,619
262,280 328,125 415,561
32, 784 35, 636 44,111
82, 553 103,524 143,416
14,191
985
606
FEDERAL RESERVE BULLETIN
ALL
AUGUST. 1928
MEMBER BANKS—Continued
NET DEMAND AND TIME DEPOSITS, BY DISTRICTS AND BY STATES
[In thousands of dollars!
Member banks in centers having a population
under 15,000
All member banks
Net demand deposits
Net demand deposits
Time deposits
Time deposits
Federal reserve district
or State
1927
1928
J u l y 11
18, 795,
United States
034
June 13
July 27
1927
1928
July 11
June 13
July 27
1928
July 11
June 13
1927
1928
July 27 July 11
1927
June 13
July 27
'9,169,86118, 555,366*13,422,31113,443,452 12,260, 7412,791,481 2, 784,161 2,722,087
3,306,503 3,289,774 3,117,438
DISTRICT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas.
San Francisco
--
1,411,951
6, 782,431
1,176,807
1, 518,197
581,627
578,233
2,641, 487
719, 730
445, 215
882, 552
668, 723
1,388,081
1,422,196 1,416,273 997, 920 999,161 941,739
7,020,157 6, 775,657 3,069, 6021 3,075,491 2,717,412
1,195, 280 1,173,116 1,099, 669! 1,106, 586 1,007,057
1,533,835 1,573,864 1,654,616! 1,633, 764 1, 532, 289
596,656 633, 759 600, 980 607,375 572, 086
596, 668 574,848 475,096 471,953 460,957
2, 685, 285 2, 501,570 2,247, 701 2, 278, 739 2,024,452
723,005 722,073 541,270i 540,748 514, 589
453, 763 409,322 461,105 465, 451 430, 783
859,698 861, 280 372,236 371,359 334,955
664, 746 603, 312 215,878 202,611
178, 368
'1,418,572 1,310,292 1,686,238 1,690,214 1, 546,054
45, 580
38, 554
18, 459
1,030, 915
126, 760
180,189
52,354 109,371
44,190
37,865
21,662
37,377
17,921
39,482
17, 705
1, 038, 726 1,032,431 563,439
130,662 128,116 188, 924
183,670 175, 617 104,870
6,441, 587 6, 249, 516 2,417,182
664, 780 608, 597 746, 816
1, 670,320 1,673,899 1,522,813
844,753 861, 711 1,033, 922
222,661 210,875 180, 782
1, 643, 710 1, 525, 259 1,006, 658
571, 339 530, 667 848,155
223,613 215,661 237,129
279,083 254,114 246, 992
181,612 175,820 185,467
561, 756 584, 619 278,435
34,114
31, 257
42,418
41,072
32,963
30, 724
130,108 115, 259
53,978
141, 558 146, 656
61,364
15,135
39,838
37, 911
136, 463 160, 028 146,906
44,391
79, 573
82, 597
152, 801 164, 424 175, 926
94, 577
84, 905
96, 531
89,614
109, 927 104,100
67,521
43, 500
42,841
127,'
121, 524 108,220
115,279 122, 061 102,903
142,062 146,144 120,796
136, 476 122,413 121,301
112,153 106,166
80,322
34, 707
38, 987
34,336
67,075
73,149
50,258
152,110 147, 251
80,732
232,722 241, 728 104, 513
617,954 562,355 195,082
60, 200
54, 269
55,848
33,423
22,431
31,858
21, 530
15,027
19,820
137,334 130,484
22,492
18,219
7,350
30,929
21,811
16,383
49,205
41,180
33,073
7,655
7,932
*204,123 179,377 137, 520
122,756 117,055 101,986
975,803 915,629 1,372,347
STATE
Maine
___
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
New York
New Jersey
Pennsylvania
Ohio...
Indiana
Illinois
Michigan
Wisconsin
Minnesota
Iowa
M issour i
_
North Dakota
South Dakota
Nebraska
Kansas
_
._.
Delaware
__
Maryland
District of Columbia
Virginia
West Virginia
North Carolina.__
South Carolina.__
Georgia
Florida
Kentucky
Tennessee
Alabama. _
Mississippi
Arkansas
Louisiana
Oklahoma
Texas
_
Montana
Idaho
Wyoming
__
Colorado
New Mexico
__.
Arizona
Utah...
Nevada
Washington
Oregon
.
California-
6,229,535
636, 556
1, 640, 916
841,134
216, 629
1,604,352
565, 888
230,045
272,374
180, 034
567,367
3 3 , •'--
40,067
128, 647
152, 756
43, 048
137,421
81,911
149,204
82,023
101, 796
42,323
125,201
107,272
142, 734
132,478
112,454
36,099
72,935
150,167
242,915
622,071
60,090
33, 769
21,342
134,859
22,229
30,231
46,575
8,578
203,306
118,165
953,615
109, 570 115,254
21,453
19,719
39, 549
36,303
561,477 517,252
191,411 185,697
105,821
94,548
2,418,874 2,108, 529
750, 546 697,633
1, 515, 877 1,354,166
1,028, 235 999,123
179, 551 161,099
1,043,096 849,819
845, 784 800, T
236,927 226,990
251, 546 236, 594
183, 506 182,104
278, 561 264,018
42,419
41, 257
30, 552
28,386
53,876
50,069
61, 379
54, 900
14,835
13, 538
150,178 138,008
43,625
41,993
176, 553 171, 691
94, 027
90, 525
92, 542
84,054
68,379
63,355
108,301 103,134
104, 695 108, 612
120, 203 115, 269
121, 029 113, 698
80,026
73,956
34,360
35,268
48,939
50,158
76, 546
76,083
87, 774
104,103
182,369 158,837
55, 757
22,950
20, 277
14, 900
13,890
98, 561
93, 281
6,128
7,516
13, 720
16,555
30,176
32, 671
7,172
7,903
*136,615 123, 760
94,466
100, 578
1,377, 970 1, 261, 505
127,474
360,785
214,310
259, 479
151, 599
143, 963
329,118
172, 238
186,000
324,664
291,827
230,024
123, 518
356,176
216,143
253,947
153, 820
149,945
329,800
175,468
189,052
313, 240
290,164
232,888
126,402
344,014
211,074
278,852
156,959
144, 543
319, 072
170, 039
171, 919
311, 575
261,809
225,829
174,779
620,901
455,247
383, 522
256, 520
139,103
452,189
156, 284
270, 923
166,2991
55, 012
175, 724
174,670
613,045
452, 777
383,127
257, 343
139, 862
448, 272
155, 203
271, 333
164, 688
54,635
174,819
162,039
566, 788
427,064
370,412
243, 311
133, 068
435, 029
146, 536
258, 062
157, 075
47,666
170,388
19,285
21,442
15, 957
48,968
1,035
23,461
18,197
20,642
15, 356
47,309
1,019
23, 549
226,476
175, 688
269,618
115, 873
61, 969
162,864
79,658
47,214
62,669
79, 293
39,622
28,389
34,038
45,313
84,034
3,432
22,038
20, 203
21,065
15,574
65,327
13,757
37,188
43, 580
4
17,804
430,690
251,389
600,006
130,825
56,821
168,704
188,200
94, 536
111, 176
89,975
27,043
35,887
28,345
35,309
41, 762
10,270
65,360
13, 614
37, 321
43,528
6
17, 701
425, 262
248, 522
600, 395
129, 081
56, 231
167, 095
186, 999
94,367
111, 856
89,089
26,946
35,845
28,124
34, 795
41, 707
10,062
59, 822
78, 979
48,857
48, 881
27,096
25,214
34,487
46,443
30, 960
28, 280
20,358
22, 961
12,168
38, 795
46,084
30,449
14,369
14,900
29,824
4,268
4,132
11, 645
7,903
36,134
34, 985
67,874
61,107
12, 210
34,384
41, 049
7
16, 098
396, 972
225,440
571, 707
126, 919
53, 391
158, 441
178,361
89,469
110,077
91,893
25, 377
35, 506
26,407
33, 527
38, 806
9,340
56,118
236,361
170,171
269,102
120,179
60,429
161, 788
79,167
61, 584
78,460
39,434
27, 740
32, 932
45,109
91, 643
3,500
22,615
1,042
22,949
226,359
161, 550
273,440
131,918
62,382
156,368
75,970
47,033
60,024
77,856
39.256
26,311
26, 776
39.257
88,024
3,759
24,035
40,443 40,193 40,446
36,856 36,848 43,386
39,342 41,818 38,081
16, 651 17,229 15,620
25, 560 25,988 25,488
36,408 40,150 42,393
49,851 49, 732 51.361
29,074 30, 073 26,928
31,621 32, 533 28,751
23,103 23,830 21,740
35,374 35, 939 31,651
17,302 17,943
17,059
116,005 110,617 114,543
268, 519 266,235 242,049
35, 501 35, 512 31,724
23,650 24, 028 22,336
21,342 21,530 19,820
40,361 41, 298 39,160
16,245 16, 788 13,453
6,822
5,200
8,379
9,295
7,655
8,578
47,006 48, 098 42, 746
52,835 54, 796 52.362
85,223 83,690
79,187
49,132
47, 587
25,328
33, 910
47,358
30,789
28,618
20,271
23, 203
11,874
39,355
46,355
30, 524
13, 908
15,027
30,160
4,324
4,210
11, 757
7,932
36,135
35,358
73, 752
46, 854
45,138
27, 750
24, 079
33, 740
42, 552
27,474
25, 628
21,110
22, 615
12,154
38, 505
39,386
25, 734
12,825
13, 890
28,203
3,640
4,070
10, 746
7,172
33,095
33,108
71, 612
•Revised.
NOTE.—For back figures (and explanatory notes, especially as regards California), see BULLETIN for December, 1927, pp. 828, 873, and 886-925
607
FEDERAL RESERVE BULLETIN
AUGUST, 1928
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
Loans and investmentstotal:
July 3
._ 22,735,900
July 11.
22,450,547
July 18
22,316,293
July 25..
22,218,546
Loans and discounts—
total:
July 3
16,088,762
July 11
15,837,409
July 18
15,749,676
July 25
15,691,686
Secured by U. S. Government obligationsJuly 3
140,982
July 11
128,988
July 18.._
._.
129,139
July 25
129,690
Secured by stocks and
bonds—
July3
6,920,662
July 11
6,783,829
July 18
6,632,886
July 25
6,595,964
All other loans and
discountsJulys
- . . - 9,027,118
July 11
8,924,592
July 18
__. 8,987,651
July 25
8,966,032
Investments—total:
July3.._
6,647,138
July 11
6,613,138
July 18
6,566,617
July 25
6,526,860
United States Government securities—
July 3
3,009,378
July 11
_
3,007,759
July 18
2,984,930
July 25
2,956,769
Other bonds, stocks,
and securitiesJuly 3
3,637,760
July 11
3,605,379
July 18
3,581,687
July 25
.- 3,570,091
Keserve balance with Federal reserve bank:
July 3
1,786,842
July 11
-. 1,748,049
July 18
1,693,803
July 25
._ 1,689,578
Cash in vault:
July 3
251,500
July 11
261,945
July 18
245,173
July 25
241,552
Net demand deposits:
July 3
-.13,573,888
July 11
13,337,783
July 18
13,189,802
July 25
__.. 13,050,589
Time deposits:
July 3
6,976,798
July 11
6,959,172
July 18
-.-_ 6,911,090
July 25
6,905,405
Government deposits:
July 3
162,535
July 11
-122,396
July 18
93,410
July 25
-.
71,692
New
York
Philadelphia
Cleveland
Richmond Atlanta Chicago
1, 552,464 8,, 869, 517ll, 257,821 2,233, 904
677,105
1,537,
, 634, 72811,260,666 2, 226,964679,983
676, 076
1, 538, 585 8,, 475, 605(1, 247,814 2,214, 648
1, 528,161 8, 443, 31511, 232,112 2, 218, 328 675, 370
St. Minne- Kansas
Louis apolis City Dallas
310,334
283, 287
292,152
276, 980
722,133
723,339
726,877
721, 258
368,856
371, 532
376,127
373, 773
671,144
674,088
684,088
680, 745
452, 224 .
1, 984,835
455,241 1,964, 221
460,119 1., 984,969
456, 026 1, 980, 271
505, 775 2,403, 738
506, 587J2, 381,391
506,069 2,397,781
499, 779 2, 389, 661
504, 621
507,284
511, 978
507. 205
235, 721
240,534
243, 601
240, 858
429,937
434, 604
445, 644
442, 111
332, 677 1, 327,814
336,191 1, 321, 745
339,>, "580 ,334,771
1
333,i, 957 .1, 329, 321
5,448
4,809
4,723
4,710
2,370
2,366
2,356
2,344
3,198
3,159
3,114
3,066
635, 563
638,
639,
632, 207
3,,
,
,
3,,
855, 5511 , 481,469
855, 5681,, 479,346
848, 5921 , 472, 504
839;
" " 213 1, 479, 905
517,724
519, 518
516, 585
516,023
8,494
8,726
9,211
13,934
13, 599
13,330
13, 297
3,250
3,226
3,598
3,630
431, 961 3,
!, 084, 584
421, 940 2,968,
" "I, 281
412,635 2, 832,
!,843
409, 362 2, 815,
>,370
472, 590
469, 541
466, 378
459, "
690, 506
678,977
673, 052
678, 033
184,916
185, 233
183, 832
185, 400
133, 6821 , 073, 036 215, 479
140, 1121 , 058, 217 214,443
133,7'481 , 049,452 218, 662
131, 661 1,043, 411 217, 769
75, 771
79,359
80, 537
80, 965
659, 689 3,247,956
3,
659, 794 3,144,140
3,
663,601 3,163, 201
658, 989 3,171, 118
374,062
377,533
373,488
370,319
777,029
786, 770
786,122
788, 575
329,558 367,', 7011
., 308, 779 283, 694
331,059 362,!, 131 .,
1 302,791 288,032
329,155 368,006 1., 327,851 288, 593
363, 963 1, 324, 241 284, 726
451, 235 2,477,
447,
!, 470,841
452,
,
!., 428,982
450,185 2, 407,
"",638
402,270
405,098
399,222
392, 899
752, 435
747, 618
742,144
738, 423
159,381
160,465
159,491
159, 347
157, 9911,., 218,521
156,944 li., 221,049
165,400 1.., 192, 295
163, 783 .
li, 178, 353
112,917
113,270
112,080
107, 787
317,196
318,200
316, 767
316,426
293,t, 244L,1 258,490
290, 278 1,
1 249, 792
287, 237 1,236,
1.
687
286; 402 1, 229, 285
289, 353
291, 828
287,142
285,112
1,101, 229
1,090, 754
1,085, 948
1,077, 976
6,392,506
6,163,887
6, 046,623
6. 035,677
9,579
9,020
9,712
9,625
59,966
51,466
50, 579
49,189
129, 788
131, 935
133,164
132,428
21,923
20,383
20, 478
22,009
3,706
3,765
3,758
3,748
4,317
4,357
4,450
4,706
115, 441
126,102
132, 591
126, 816
86,464
86,943
88, 237
85, 544
356, 232
354,681
360, 919
361, 950
157, 580
158, 809
160, 708
157, 549
311,:
305, 343
309, 939
312, 229
242, 507
245, 483
247, 585
244, 665
967, 265
962,707
969,402
962, 665
133,135
130,998
132, 526
132, 915
241,207
239,484
238,444
238, 634
119, 547
119,050
120, 539
122,069
657,021
642, 476
650,198
650, 950
109,423 81, 222
68,593 110,392 80,184
70, 111 110, 425 81, 665
70, 812 111, 388 82, 349
352, 335
349,677
355, 495
354, 729
217, 512
216,055
214, 899
214,053
70,404
70,390
71,059
71,112
61,050 382, 527
60, 599 382,343
61, 255 372, 761
365, 449
76,826
76,118
75, 617
74, 892
435,239
429, 418
425,377
421, 997
88,977
90, 075
88, 432
88, 235
68,738
71,336
71, 909
72, 739
524,069
519,553
521,610
521, 870
140, 686
139, 937
139, 282
139,161
64,169
62,405
62, 415
62,103
131, 784
129,092
128, 019
127, 246
38,325
38,8G6
38,874
39, 720
304,686
292,799
294, 703
296, 221
43, 285 38,073
41,865 39,831
41,324 38,924
38, 891
291,418
266,055
255,333
258, 289
42,894
47,619
44, 003
46, 409
24,450
23,657
23,888
23, 934
60,107
56, 219
54, 454
56, 495
32, 256
33,979
34,325
33, 604
119,148
118, 940
117,659
117, 648
40, 646
43, 293
40, 419
39,170
7,799
7,946
7,179
6,887
5,857
6, 352
5,917
6,103
10,425 8,653
12, 268 10,042
11,303 8,632
11, 523 8,817
26,812
24, 051
22,446
22,103
218,403 502,319 286, 709
221,847 501, 916 293, 457
223, 391 502,667 292,314
217, 801 499, 351 286, 976
816,396
825, 243
829,810
812,046
817,497
809,590
777,024
769,179
83, 784
82,676
80,857
77, 697
133, 298
128,440
126,891
131, 283
16,880
18,844
18,008
18,048
71,535
70,650
66,329
65, 259
13,815
14,599
13,910
13,833
26, 428
29,667
28, 786
28, 021
11,539
12,809
11, 854
11, 611
921,965 6,118,547
919,518 5,847, 768
922,449 5, 757,381
897, 599 5, 710,126
741,., 9601., 039, 747 360,311
751,., 506 .1, 039,531 359, 792
., 039,442 357, 718
732, 290 I!
., 036, 363 351, 917
721, 602 li
497,884 1,698,544
1
498,085 1,
1 704, 679
494,404 1, 683,383
492,425 1, 682, 565
313, 767
312,325
304, 603
306,305
978,359
980,632
975, 243
976, 789
7,222
5,418
4,270
3,160
10,293
7,711
5,859
49,876
37,402
28,420
21, 822
4,392
4,344
4,315
4,155
906, 596
901, 896
894,371
887,319
100, 632
99,178
99,121
97,160
7,543
5,663
4,317
3,312
San
Francisco
11,111
11,424
10, 390
10,177
330,347 1,860,524 376, 660
324,\, 865.,864,067
388, 273
1
315,i, 538 1, 841,326 375,476
314,> 738 .1, 823, 270378, 800
'250, 955 244,
L 447 1,283,959 243,495
247, 798 245, 704 1, 270,564 242,484
246,344 244; 039 1,262,550 242, 664
245, 209 242,6221,258,075 241, 412
1,847
1,331
1,075
819
10,848
8,219
6,243
4,801
10,189
7
5,805
4,458
5,
4,548
3,546
2,812
176,900
177, 990
178, 210
179,082
1,912
3,022
2,264
1,433
1,722
1,087
1,319
128,
129,
128,
129,
229
505
803
587
130,7'481 ,029,511
133, 662 I!., 015, 744
133, 520 L, 017,327
131, 869 1L, 019, 465
13, 220
9,798
7,535
5,790
41, 283
30, 961
23,531
18,071
608
FEDERAL RESERVE BULLETIN
AUGUST, 1928
P RINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued
[In thousands of dollars]
Federal Reserve District
Total
Boston
Due from banks'
July 3
July 11
July 18
July 25
Due to banks:
July3
July 11
July 18
July 25
Borrowings from Federal
reserve bank—total:
July/3
Julyhl.
July}l8_
July25
Secured by U . S . Government obligations—
July3
July 11
July 18
July 25
All other—
July3_...
July 11
July 18
July 25
Number of reporting banks:
July3
July 11
July 18
July 25
1,228,613
1,139,919
1,106,173
1, 067,116
3, 393,174
3,195, 857
3,085, 714
3,059, 891
60, 214
52,367
53,513
56,125
New
York
Philadelphia
167,308
139,529
13T,917
69, 781
54,597
56, 255
53, 607
151, 255 1,372, 257
151, 7 3 7 1,215,452
143, 029 1., 160, 593
135, 0621,, 205, 844
182, 727
170, 537
157, 962
Cleveland
KichChicago
mond Atlanta
St.
Louis
Minne
apolis
Kansas
City
Dallas
San
Francisco
73, 032
70,334
6C), 375
62, 943
265,358
244, 380
235, 911
222, 736
49, 791
49,938
44, 721
41, 875
53, 245
55,582
48, 919
47, 502
118,198
125,612
124,520
121, 886
59,365
56,867
53, 758
52, 791
157,255
150,492
151,303
142, 596
222,083 105,128 103, 756
214,676 99, 045 102, 767
214,489 95,651 95, 520
93, 566 89, 537
524,965
498, 090
481,309
468,003
121,873
121,632
118, 903
112,840
90,774
89,576
86,157
83, 532
209,423
227, 640
228,192
229, 273
92,817
3,752
86,524
216,116
212, 602
202,453
190, 768
101,184
93, 234
93, 725
88,439
53,882
46,987
46, 256
47, 921
673
584
412
532
52,444
34, 275
38,118
42,129
384,100
404,118
259, 564
268, 212
72,868
53, 523
62, 384
55, 708
99,840
84,844
76, 576
81,942
29, 273
31,337
28, 536
32, 573
44,397
46, 094
53,891
47, 213
156,012
114, 990
130,140
128, 911
39, 245
31, 225
43, 547
5,658
4,743
6,831
9,679
18,182
14,876
21,732
19,034
6,935
6,121
12, 232
15, 730
50,719
43,438
53,861
60, 759
650, 999
603, 721
504,439
500, 347
18, 575
15, 725
9,515
11, 375
289, 518
305,806
178,886
180,096
52,124
40,365
11, 248
13,869
11,125
15,547
14,161
16,906
15, 552
9,186
129,353
90,682
106,839
101,119
16, 786
11, 619
16,146
14,100
4,850
4,100
3,995
6,390
8,960
4,755
11,427
8,359
5,813
4,878
11,163
12, 708
31,950
45, 533
67,661
58,747
44,246
48, 944
308,674
265,863
282,973
298,185
33,869
18, 550
94, 582
98,312
80, 678
88,116
20, 744
13,158
13,441
10,175
32,179
26,097
32,330
32, 998
18.025
17,468
17,411
17.026
30,236
29,188
38,339
38, 027
26,659
24, 308
23,301
27, 792
22,459
19,606
27,401
22, 542
643
2,836
3,289
9,222
10,121
10,305
10, 675
1,122
1,243
Z, 022
18,769
7,169
7,259
13, 769
78
78
78
78
49
49
49
49
70
70
70
70
64
64
64
64
31
31
31
31
92
92
92
92
29
29
29
29
24
24
24
24
64
64
64
64
45
45
45
44
55
55
55
55
959,
869,
787,
798,
637
637
637
636
30, 754
36
36
36
46, 602
46, 990
AUGUST,
609
FEDERAL RESERVE BULLETIN
1928
REPORTING MEMBER BANKS IN FEDERAL RESERVE BANK CITIES
PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS
[In thousands of dollars]
City
Boston
New
York
Philadelphia
Loans and investments:
14, 524, 674 1,045, 6. ', 642,841 1,079,717
July 3
14, 272,644 1,030, 208 7,', 424,813 1, 080,729
July 11
14,136, 554 1, 034, 236 7!', 280,132 1, 068, 902
July 18
14,069, 320 1, 023, 025 7,', 253,:, 708 1.., 054, 561
July 25
Loans:
July 3
10, 686, 306 834, 257 5, 623,;, 891 744,258
10,439,187 822, 012 5, 401, 672 742,108
July 11
291
736, 061
10, 346, 637 818, 724 5, "".,436
July 18
July 25.
---- 10, 311, 569 810,' 738 5,», 283, 289 727, 907
On securities—
4,995, 268 318,911 2, 763,138 416,959
July3.-..
4,841, 265) 307, 277 2, 640, 852 411, 689
July 11
298,861 2, 508,475 409, 292
July 18.
July 25
i 67l)751 295, 293 2,491,032 . 403, 718
All o t h e r July 3.
.-_. 5, 691,038 515, 346 2,860, 753 327, 299
July 11.
5, 597, 922' 514, 735 2, 760,820 330, 419
July 18
5, 647, 5541 519, 863 2,782,961
July 25
- 5,639,818 515,445 2,792,257 324,189
Investments:
July 3
- - - 3, 838,368 211, 393 2, 018, 950 335,459
3, 833, 457 208,196 2,023,141 338,621
July 11
3, 789, 917
,98!" " - 332,841
July 18
3, 757, 751 212, 287 1, 970, 419 326, 654
July 25
Reserve with Federal reserve
bank:
78, 803 751, 671
1, 292, 607
75,564
July3
76,909 745,064
74,020
1, 244, 409
July 11
75, 771 713,359
72, 069
1,199, 707
July 18
74,
523
69,
975
1,198.
090
708,
688
July 25
Cash in vault:
6,851
119,
373
11,188
57,476
July3
7,574
120,406
55,958
11, 675
July 11
6,971
112, 882
53,007
11,048
July 18
51, 574
7,316
110, 549
11,149
July 25
Net demand deposits:
9, 386,812 683,686 5.i, 512,654 649,774
July 3
683,
9,154, 567
i, 256, 367 657,152
July 11
686, 727 5;», 181, 046 640, 520
9,035, 614
July 18
8,
959,
839
960
5,143,162
632, 353
July 25
Time deposits:
3,
524,390
264,969
1,185,
27'
250,
559
July3
265,129 1,191, 342 248, 649
3, 512, 090
July 11
262,
604
1
240,
989
3, 458, 359
July 18
,161,976
3, 453, 821 260, 7 481., 158, 311 242, 539
July 25
Government deposits:
7,022
7,239
118, 353
46,940
July3
5,267
5,432
88, 758
35, 204
July 11
4,155
67, 555
4,143
26, 749
July 18
3,072
51,
71"
20,
542
3,176
July 25
Due from banks:
43,119 121,708
63, 394
612,408
July3
39, 926
49,173
550, 387
97,45"
July 11
39,
389
51, 283
537,
956
92,
880
July 18
45, 248
49,152
522, 323
94,138
July 25
Due to banks:
2,436,640
141, 2631, , 305,176 175,233
July3
142, 857 1,, 149, 749 161,332
2, 257,076
July 11
134, 283 1,, 098, 422 163, 702
2,177, 674
July 18
126,
., 144, 825 151, 947
2,180,
960
July 25
Borrowings from Federal
reserve banks:
63,334
41,048 315, 633
646,215
July3
46,432
23, 512 341, 596
591, 244
July 11
54,243
27, 861 213,400
521, 611
July 18
47, 783
32, 550 223, 376
526,032
July 25
Number of reporting banks:
37
45
208
17
July3
3:
45
208
17
July 11
3:
45
208
17
July 18
3'
45
208
17
July 25
Minneapolis
San
Kansas
City Dallas Francisco
, 060,116 444,997
, 038,367 448,508
, 038, 552453, 757
,037,915 448,027
177,833
178,986
182,960
180, 564
186,950!
189,700
195,108
192, 644
130,241
133, 680
135, 419
136, 240
743,346
734, 012
735, 678
733, 647
, 557, 619314,468
, 536, 502319,195
, 544,141 324, 67!"
, 552,128 318, 592
110, 851
112, 781
115,986
113, 445
115, 571
118, 582
125, 537
122, 024
91,969
95,428
96, 730
95,628
513,329
507, 245
510, 759
506, 336
821,881
804, 279
796, 850
801, 206
155, 748 31,909
154, 466 33, 279
158,820 34, 438
157,140 33, 595
29,264
36, 648
38, 076
33, 099
21,897
22,062
22,384
22,512
152,868
149,851
150,317
149,541
55, 639
54,967
54,989
50,120
735, 738
732, 223
747, 2Q1
750, 922
158,720
164, 729
165,858
161, 452
942
502
548
850
86,307
81,934
87,461
88, 925
70,072
73, 366
74, 346
73, 116
360,461
357, 394
360, 442
356, 795
32,073
31,918
32, 212
32,18'
502,497
501,865
494,411
485, 78"
130, 529
129, 313 66, 205
129, 079 66, 974
129, 435 67,119
71, 379
71,118
69, 571
70, 620
38, 272 230,017
38, 252 226, 767
Cleveland
RichSt.
mond Atlanta Chicago Louis
794,925
797,161
796,072
795, 687
109,893
109, 570
108, 514
110, 542
108,165
106, 910
107, 224
102, 760
615,082
619, 902
620, 503
621, 733
88, 919
88,768
87,070
89,176
76, 092
74,992
75,012
70, 573
234, 788
233,891
235, 217
235, 290
27, 452
26,946
26, 330
28,872
20, 453
20,025
20,023
20, 453
380, 294
386,011
385, 286
386, 443
61,467
61,822
60,740
60, 304
179,843
177, 259
175, 569
173, 954
20,974
20,802
21, 444
21, 366
47,018
41,950
41, 410
43,194
7,727
6,327
6,346
6,031
7,901
9,109
9,079
8,530
773
871
780
822
78,
79,
81,
79,
224,919
40, 612 227, 311
6,032 213, 296 28, 632
6,501 186, 350 30,176
6,252 178, 510 27,631
6,451 180, 616 30,146
12, 495
11,965
11,858
11, " "
18,837
15, 667
16,184
16, 523
|9, 511
I 9, 474
9,479
9,656
43,021
40,006
40,838
40, 425
18,784
18, 653
17,070
16,478
3,453
3,429
3,124
3,01
1,765
2,125
1,835
1,943
2,054
2,388
2,241
2,294
1,239
1,439
1,267
1,
[6, 745
6,112
[5,414
5,165
278,606
281, 485
279,031
279,093
53,058 52,003 1, 262, 700 242, 960
1 252, 688 251,011
53,055 52, 684 1,
51,876 51,561"1, 227,178 245,933
55,156 51, 222:, 226, 495248, 870
111, 753
112, 076
114,847
110,020
490,135
490, 989
489, 246
489, 210
35,198
34, 866
34, 692
34, 425
38, 066
37,393
37,283
37,191
136,919
136, 686
136, 755
135, 710
55, 992
57, 050
56,461
57, 287
18, 927
20, 000
19,908
20, 845|
30,947
33,882
33,671
32, 985
315, 501
306,062
300, 259
304, 782
2,523
1,019
590
443
336
258
1,028
775
587
454
3,224
2,416
1,836
1,408
5,243
3,921
2,925
2,296
1,821
1,364
1,035
791
2,239
1,678
1,275
979|
7,641
5,732
4, 354
3,345
32,843
24,633
18, 721
14, 377
26, 817
24,486
25, 765
23,182
7,059
5,706
5,9ir
5,789
10, 038
9,411
10, 259
10, 209
180, 299
160, 681
160,134
146, 699
27, 639
29, 015
23,993
22, 588
24, 403
26, 705
22, 028
21,89<
30, 546
33,876
36, 992
36, 775
18,993
17, 753
16,458
15, 845
58,393
56,198
52,862
50, 804
60,635
59, 643
60,049
57, 536
23, 463
23,091
21, 725
20, 891
12, 714
13,098
12,234
11. 944
378,100
356, 967
344,291
334,469
74, 995
75,251
73,974
71, 760
53,000
52,215
49,364
48, 939
79, 951
91, 686
93, 256
95,196
26,181
26,477
25, 584
25,062
105, 929
104, 710
100,790
91,923
9,881 14, 721
8,960 14, 691
8,873 15,655
8,321 11, 276
95, 653
66,061
80,01:"
79, 983
25, 079
20,383
27,658
21, 742
2,270
1,855
2,420
4,615
9,772
8,561
14,900
9,655
43
43
43
43
11
11
11
11
M39
28,454
19,914
25, 528
26, 76r
8
8
8
8
8
8
8
8
1,144
1,073
1,046
977
701,900
690, 042
684, 515
679, 788
156, 663| 79, 624 303,331
161, 551 82,622 310,006
161, 581 83,098 312, 216
164,086 80, 579 302, 843
13
13
13
13
900 39,470
300 38,979
3,290 47,771
53, 686
610
FEDERAL RESERVE BULLETIN
A U G U S T , 1928
LAND BANKS AND INTERMEDIATE CREDIT BANKS
LOANS OF FEDERAL AND JOINT-STOCK LAND BANES
LOANS OF INTERMEDIATE CREDIT BANKS
[In thousands of dollars]
[In thousands of dollars]
1928
Net amount of loans outstanding
Date
Total
Sept. 30
Oct 31
Nov. 30
Dec 31
. ...
1927
_
._
614,639
619,217
624, 230
632, 476
1,671,856
1,682, 273
1,692,826
1, 710, 295
1,057,217
1,063,056
1,068, 596
1,077,819
1,724,821
1, 745,404
1, 765, 365
1, 732,395
1,741, 275
1,738,165
1, 742,575
1, 749, 393
1,752,665
1,757,185
1,758,834
1,765,121
1.085.170
1,097, 642
1,109, 354
1,117.914
I, 124,055
1,130, 648
L, 134,896
L, 139, 502
1,143,130
, 147, 135
1,150,943
1,155, 644
639,651
647,762
656,011
614, 481
617, 220
607, 517
607, 679
609, 891
609, 535
610,050
607,891
609,477
1,767,515
1, 778,338
1, 786,862
1,791,341
1, 793, 035
1,794,236
L, 158,717
L, 168,354
L, 175, 858
L, 180,420
L, 183, 672
L, 184,656
608,798
609,984
611,004
610,921
609, 363
609.580
1928
Jan. 31
Feb. 29
Mar. 31
Apr. 30.
May 31
June 30
„
_
_
May
31
Joint-stock
Federal
land banks land banks
(12 banks) (54 banks)
1926
Jan 31
Feb. 28
Mar 31
Apr. 30
May 31
June 30
July 31
Aug 31
Sept 30
Oct 31
Nov. 30
Dec. 31
1927
Class of loan
Direct loans outstanding
onCotton
Tobacco
- _Wheat
Canned fruits and vegetables
Raisins
Wool
Rice
All other.__
_
Total
March
31
Feb.
25
May
28
6,105
2, 557
605
8,482
2,746
1,039
11, 266
3,057
1, 364
13, 663
3, 636
1,965
6,156
6, 357
1,365
428
5, 671
258
1,002
79
493
5,512
29
1,302
141
630
5, 549
43
1 515
263
913
5,820
158
1,579
835
802
5,000
233
1, 549
202
16, 705
19, 744
23, 687
28, 569
21, 664
30, 614
8
411
28,111
6
418
24,168
7
296
29,850
37
612
21, 565
21, 877
21, 821
19,251
8
20
20
31
:o, 432
46,312
49, 781
Rediscounts o u t s t a n d i n g
for—
Agricultural credit cor31, 385
porations
-_
8
National banks
405
State banks
Livestock loan compa22,145
nies
Savings banks and trust
11
companies.
_.
53 ' y-
Total
April
28
•',2 606
BANK DEBITS
PAR COLLECTION SYSTEM
DEBITS TO INDIVIDUAL ACCOUNTS, BY FEDERAL
RESERVE DISTRICTS
MEMBERSHIP, BY FEDERAL RESERVE DISTRICTS
[Number of banks at end of June]
[In thousands of dollars]
Nonmember banks
Number of June, 1928
centers
N e w York City
Outside New York City
Federal reserve district:
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
_._
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total...
M e m b . banks
M a y , 1928
:--in«, 1927
1
140
45,455, 305
27,029, 269
45, 269, 912
26, 345,816
33, 00S, 251
23,812,165
11
7
10
13
7
15
21
5
9
15
10
18
2, 893, 471
46, 509, 703
2, 856, 734
2,979, 710
820, 253
1, 099, 993
6,876,153
1, 391, 335
790, 332
1, 318, 005
670,114
4, 278, 771
3,007, 290
46, 301, 904
2, 656, 842
2, 705. 272
754^ 380
1,132,339
6,874,173
1, 333, 525
759,555
1,269,180
644, 518
4,176, 750
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
•1,245,462
580, 948
3,165, 623
141
72,484, 574
Federal reserve
bank
United States
Boston
New York- .__
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis.
Minneaplis
Kansas City
Dallas
San Francisco. _.
71,615,728 *56,820,416
1
* Revised.
On par list
Not on par list1
1028
1927
1928
1927
1928
8,929
0,106
12,888
13, 556
3,928
3,863
410
934
786
823
557
457
1, 264
593
728
945
791
641
415
928
775
841
569
249
410
496
1,024
636
310
3,628
1,812
709
2,272
642
700
245
412
502
1,030
665
317
3,737
1,934
840
2,461
682
731
10
579
1,005
199
462
1,133
277
204
57
10
607
1,026
184
435
1,113
229
198
61
1,308
599
739
972
815
676
Incorporated banks other than mutual-savings banks.
'1927
EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING SIX MONTHS ENDING JUNE 30, 1928
I
Total
Earnin _c:
Discounted bills
Purchased bills
United States securities
Deficient reserve penalties
Miscellaneous
Total Darnings
$13, 397, 670
| 6,258,950
j
113,276
I 797,225
26,429,925
Current expenses:
Salaries—
1, 276, 965
B ank of1'. cers
5, 927, 789
Clerical staff
434, 514
Special officers and watchmen
Allother
908, 352
Governors' conferences
4,061
Federal reserve agents' conferences
1,081
8, 472
Federal Advisory Council
Directors' meetings
76, 274
Traveling expenses i
114, 960
Assessments for Federal Reserve Board expenses
300, 691
Legal fees
50, 509
Insurance (other than on currency and
security shipments.)
226, 608
Insurance on currency and security shipments
1
295,127
Taxes on banking house
j
705, 871
Light, heat, and power
i
173,511
84, 639
Repairs and alterations, banking house
!
131, 619
Rent
j
198, 733
Office and other supplies
I
228,077
Printing and stationery
I
101, 365
Telephone
|
240, 546
Telegraph
j
879, 865
Postage
I
230, 857
Expressage
351, 346
Miscellaneous expenses
Total, exclusive of cost of currency
12, 951, 832
Federal reserve currency:
Original cost, including shipping charges...
528, 565
Cost of redemption, including shipping
charges
58, 803
Total, current expenses
Current net earnings,.
Dividends paid
Reimbursable expenditures of fiscal agency
department:
Salaries, employees
All other.._I
Total.
1
Boston
New York Philadel- Cleveland
1,057, 225 $4, 366, 715 $1,146, 609 |$1, 255,159
763, 680 1, 430, 813
557,868 |
511,461
304, 732 1, 289, 367
523, 645
770, 477
4,547
2, 817
14, 551
16, 627
24, 148
22,507 |
73,395
144, 358
2,154, 332
60,000
432, 697
18, 183
46, 704
170
67
492
4,139
3,007
22, 445
1,135
7, 247, £
Atlanta
69,250
450,046
24,386
44, 378
|
!
|
I
405
3, 529
7,912
900
309
035
028
299
67
560
3,689
10, 798
84, 926
4,378
28, 687
2,715
31, 237
3,566
107,
533,
51,
126,
Chicago | St. Louis
$704,980 I $759, 318 $1, 761, 057
334,179 I 249, 397
745, 271
110,959 I
15,389 J
13, 202
142, 924
12, 468
48, 951
2,253,446 J 2,625,043 1,178, 709 1, 213, 058
404
421
028
813
466
67
502
9,661
14,139
265,
1, 558,
94,
238,
Richmond
88,
296,
26,
38,
250
418
836
020
183
67
390
3,781
8,010
15, 270
1,191
103, 301
203,161
17, 928
18, 902
254
67
694
11, 643
8,477
12, 473
2,670 I
1,014, 481
20, 050
227, 364
$653, 456
104, 348
446,167
6,490
17, 337
3,768,223 |1, 227, 798
Minneapolis
Kansas
City
$137,134
275, 853
293, 447
2,961
48, 004
$322, 273
217, 591
482, 513
6,235
137, 781
827, 477
77,
260,
21,
36,
85,065
280, 643
23, 840
38, 657
271
67
650
7,692
13, 151
58, 753
178, 573
16, 004
33,195
469
376
684
3,346
9,306
41,711
2,080
12, 936
890
8,259
14, 361
San
Francisco
$137,073 $1,096, 671
283, 600
388, 743
392, 519
487, 719
3, 577
7,564
10, 708
29, 470
757, 399 1,166, 393
447
392
203
599
233
67
672
4,619
13, 454
153,
878,
65,
136,
Dallas
2,010,167
649
823
098
489
389
67
823
4,399
8,960
122,996
541, 695
42, 596
63, 033
841
35
1,800
7,780
12, 683
10, 917
3,950
10, 514
6,281
21, 316
7,292
13, 738
23,141
19, 271
37, 235
9,572
2,666
44, 636
17, 599
25, 558
7,494
35, 969
68, 047
10, 577
34, 337
84,
313,
33,
87,
950
611
377
534
312
67
800
11, 996
5,063
14, 513
40, 688
17, 716
17, 921
12, 928
13,258
24, 433
13, 719
14, 824
19, 729
42, 089
63, 000
10, 797
884
240
10, 597
19,011
10,186
3,216
101,491
20, 820
17, 481
54, 752
197, 652
34, 203
12, 456
12, 583
40, 376
40,184
29, 539
24, 363
145, 490
55, 354
92, 390
44, 763
20, 572
11, 676
7,729
664
16, 375
15, 258
13, 288
7,038
88, 369
34,104
23, 255
35, 253
66, 845
18, 919
22, 776
36, 938
19, 669
20, 525
7,269
16, 631
77, 644
16, 729
29,119
16, 807
19,185
5.036
' 524
13, 382
9,288
12, 374
3,336
17, 651
61, 331
16, 512
13, 949
18, 781
29, 722
8, 065
2,575
3,050
10, 505
12,027
3,112
30, 596
50, 430
21, 665
16, 521
32,119
135, 846
20, 230
13, 555
5,092
31, 306
40, 682
10, 759
20,511
107, 925
28, 685
42, 388
6.841
29, 632
8, 976
3,092
9,718
8,419
11, 208
6, 072
20,109
41, 770
7,290
18, 801
6, 253
42, 960
9, 724
4,566
30
8,975
10, 074
2,527
8,757
27, 846
3,939
16, 627
8,709
46,132
28, 194
11, 696
17, 224
11, 080
3,851
30, 010
67, 001
7,295
24, 456
17,090
8,119
2,120
5,286
8,400
10, 096
3,932
25, 695
42, 521
7,887
22, 022
903, 364
3, 050, 835
932, 356
1, 254, 726
680, 719
599, 877
1, 810,008
649, 509
480, 428
827, 954
603, 887
1,158,169
56,172
65, 531
18, 314
16, 942
75, 734
16, 528
18, 891
16, 548
2,718
63, 097
7,984
6,661
3,346
3,841
10,155
2,209
604
2,754
1,856
21, 008
5,593
6,853
929, 965
3, 214, 770
996, 512
1,326,918
702,379
620, 660
1, 895, 897
668, 246
499, 923
847, 256
608,461 | 1,228,213
12, 890, 725 1,224, 367
4,105, 249
289, 261
4, 033,110
1, 277, 975
1, 256, 934
411, 252
1, 298,125
426, 595
476, 330
187, 450
592, 398
155, 567
1, 872, 326
549, 739
559, 552
159, 997
257, 476
90, 780
319,137
127, 101
219, 016
129, 074
781, 954
300, 458
3,373
1, 005
5, 746
21,001
4, 821
844
8,088
2,627
4, 192
1,309
2,670
981
29, 728
5,842
5,105
1, 540
2 6, 659
3,224
21, 514
1, 533
4,260
676
3,199
1,222
4, 378
26, 747
5, 665
10,715
5,501
3,651
35, 570
6, 645
9, 883
23, 047
4,936
4,421
13, 539, 200
99, 355
41, SO 1
Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council.
2 Includes $2,917 for official salaries.
td
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