Full text of Federal Reserve Bulletin : August 1930
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FEDERAL RESERVE
BULLETIN
AUGUST, 1930
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
The Banking Situation
Legal Reserve Requirements of Foreign Central Banks
Annual Reports of Central Banks—Netherlands and Czechoslovakia
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1930
FEDERAL RESERVE BOARD
Ex officio members:
R O T A. YOUNG, Governor.
EDMUND PLATT, Vice Governor.
A. W. MELLON,
Secretary of the Treasury, Chairman.
J. W. POLE,
Comptroller of the Currency.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
GEORGE R. JAMES.
EDWARD H. CUNNINGHAM.
WALTER WYATT, General Counsel.
WALTER L. EDDY, Secretary.
E. M. MCCLELLAND, Assistant Secretary.
J. C. NOELL, Assistant Secretary.
W. M. IMLAY, Fiscal Agent
E. A. GOLDENWEISER, Director, Division of Research
and Statistics.
CARL E. PARRY, Assistant Director, Division of Research
and Statistics.
Chief, Division of Examination, and Chief Federal
Reserve Examiner.
E. L. SMEAD, Chief, Division of Bank Operations.
FEDERAL ADVISORY COUNCIL
District No. 1 (BOSTON)
District No. 2 ( N E W YORK)
District No. 3 (PHILADELPHIA)
District No. 4 (CLEVELAND)
District No. 5 (RICHMOND)
District No. 6 (ATLANTA)
District No. 7 (CHICAGO)
District No. 8 (ST. LOUIS)
District No. 9 (MINNEAPOLIS)
District No. 10 (KANSAS CITY)
District No. 11 (DALLAS)
District No. 12 (SAN FRANCISCO)
HERBERT K. HALLETT.
W M . C. POTTER.
HOWARD A. LOEB.
HARRIS CREECH.
JOHN POOLE.
_ J. P. BUTLER, Jr.
FRANK O. WETMORE, President.
W. W. SMITH.
G E O . H. PRINCE.
W. S. MCLUCAS.
B. A. MCKINNEY, Vice President.
F. L. LIPMAN.
WALTER LICHTENSTEIN, Secretary.
II
OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
Chairman
Deputy governor
Governor
W. W. Paddock....
W. R. Burgess
J. E. Crane
A. W. Gilbart
E. R. Kenzel
Walter S. Logan...
L. R. Rounds
L. F. Sailer
Wm. H. Hutt
M. J. Fleming
Frank J. Zurlinden.
C. A. Peple
R. H. Broaddus
Hugh Foster
Creed Taylor
C. R. McKay
John H. Blair
Boston
New York
Frederic H. Curtiss
J. H. Case
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
R. L. Austin
George DeCamp
Wm. W. Hoxton..
Oscar Newton
Wm. A. Heath
St. Louis
John S. Wood-
Wm. McC. Martin
0. M. Attebery
Minneapolis...
John R. Mitchell
M. L. McClure
C. C. Walsh
Isaac B. Newton
W. B. Geery....
W.J. Bailey....
Lynn P. Talley.
Jno. U. Calkins.
Harry Yaeger
H, I. Ziemer
C. A. Worthington.
J. W. Helm
R.R.Gilbert
R. B. Coleman
Wm. A. Day
Ira Clerk
Kansas City...
Dallas...
San Francisco.
Geo. L. Harrison..
..._ Geo. W. Norris
E. R. Fancher
George J. Seay
Eugene R. Black
J. B. McDougal....
_.
Cashier
* Assistant deputy governor.
W. Willett.
C. H. Coe.i
Ray M. Gidney.*
J. W. Jones.*
W. B. Matteson.i
J. M. Rice.*
Allan SprouU
C. A. Mcllhenny.
W. G. McCreedy.*
H. F. Strater.
Geo. H. Keesee.
John S. Walden, jr.*
M. W. Bell.
W. C. Bachman.1
K. C. Childs.»
J. H. Dillard.*
D. A. Jones.1
O. J. Netterstrom.
S. F. Gilmore.*
A. H. HailU
F. N. HalU
G. 0. Hollocher.»
C. A. Schacht.*
H. I. Ziemer.
Frank C. Dunlop.*
J. W. Helm.
Fred Harris.
W. O. Ford.i
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
R. M. O'Hara.
__ C. F. McCombs.
_ J. C. Nevin.
A. H. 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 branch
Omaha branch
Denver branch
Oklahoma City branch
Dallas:
El Paso branch.__
Houston branch
_
San Antonio branch...
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch
Seattle branch _
Spokane branch
Managing director
R. E. Towle.
L. H. Earhart.
J. E. Olson.
C. E. Daniel.
J. L. Hermann.
W. D. Gentry.
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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25 cents.
in
TABLE OF CONTENTS
Review of the month—The banking situation
'
.__
Growth of member bank credit—Total reported security loans—Open-market portfolios and loans
to customers.
Page
483
Legal reserve requirements of foreign central banks
Annual report of the Bank of Netherlands
Annual report of the National Bank of Czechoslovakia
Earnings and expenses of Federal reserve banks during six months ending June 30
502
503
506
532
National summary of business conditions
487
Financial, industrial, and commercial statistics:
Reserve bank credit and factors in changes (chart and table)
Analysis of changes in monetary gold stock
Gold movements to and from United States
Member bank borrowing at Federal reserve banks
Discount rates and money rates
Member bank credit,
Bankers' acceptances and commercial paper outstanding
Brokers' loans
Security prices, security issues, and building contracts awarded
Production, employment, car loadings, and commodity prices
Industrial production
Factory employment and pay rolls
488, 489
489
489
490
490, 491
492
492
492
493
494
495
496
Banking and business conditions in Federal reserve districts:
Federal reserve banks—
Discounts (chart and tables)
497, 498
Reserves, deposits, note circulation, and reserve percentages
498
All member banks—Deposits subject to reserve, reserves held, and indebtedness at reserve banks. _ 498
Member banks in leading cities—Prinicpal resources and liabilities
499
Building
500
Department stores—Indexes of sales and stocks
500
Commercial failures
500
Bank suspensions
500
July crop report
_
501
Financial statistics for foreign countries:
Gold holdings of central banks and governments
Gold exports and imports
Condition of central banks
Condition of commercial banks
Discount rates of central banks
Money rates
Foreign exchange rates
Price movements
510
:__ 510
511, 512
513
514
514
515
516,517
Law department:
Amendment to law with reference to election of directors of Federal reserve banks
Amendment to law regarding surrender of trust powers by national banks
Amendment to law regarding cost of examinations of member banks
Amendment to Regulation A regarding rediscounts by Federal reserve banks
, Amendment to Regulation J regarding check clearing and collection
Ruling—Effect of consolidation on Clayton Act permits
518
518
518
519
523
525
Detailed Federal reserve statistics, etc.:
Resources and liabilities of Federal reserve banks in detail and Federal reserve note statement
Condition of each Federal reserve bank at end of month
Maturity distribution of bills and short-term securities held by Federal reserve banks
Membership in par collection system
Bank debits
Kinds of money in circulation
Changes in national and State bank membership
Fiduciary powers granted to national banks
527
528
529
529
529
529
530
531
IV
FEDERAL RESERVE BULLETIN
VOL. 16
AUGUST, 1930
REVIEW OF THE MONTH
No. 8
any time in recent years. Member-bank
credit outstanding, as measured by the total
loans and investments of member banks in
leading cities, increased by $100,000,000 from
the end of June to the end of July to the
highest level that has ever prevailed, except
for a brief period last autumn. A further
decline in loans on securities, which brought
these back to the May level, and a renewed
decline in "all other" loans, were accompanied by a further increase of about $200,000,000 in the banks' holdings of investments
which at $6,290,000,000 on July 30 were at the
highest level on record, about $75,000,000
above the previous high point reached in the
early summer of 1928.
Preliminary figures have recently become
available, through the cooperation of the Federal reserve banks and the
Growth of
courtesy of the Comptroller of
J
member-bank
.
credit
the Currency, snowing lor a
comparatively recent date—
June 30—a classification of member-bank loans
and investments that is both more inclusive
and more detailed than that made available in
the current reports of member banks in leading
The banking situation during July was
characterized in general by a continuance of
pronounced ease, under the
The banking
persisting
influence of the same
situation
conditioning circumstances as
in other recent months. While there was a
temporary increase in the demand for currency
over the Fourth of July holiday, such as always
happens at this season, the subsequent return
of currency from circulation was of even larger
proportions. About $170,000,000 additional
currency was called out between the last
Wednesday in June and the first Saturday in
July, but by the last Wednesday in July—
which usually marks the low point for the
year—the same amount had come back along
with about $30,000,000 more. This net inflow
of $30,000,000 from circulation came at about
the same time as and fully compensated for a
net outflow of gold to foreign countries, so
that the loss of gold was without immediate
influence on conditions in the money market.
The gold exports, which went to France and
Canada, reflected strength in the foreign exchanges which was in turn a reflection of ease
in our own money market. Under the prevailALL MEMBER BANKS
ing conditions as regards money in circulation
[In millions of dollars]
and gold movements the reserve position of the
member banks continued easy. Their reserve
Change
June 30, Mar. 27, for
quarbalances almost always fluctuate considerably
1930 i
1930
ter
from day to day and varied in July by more
+577
35,633
35,056
than $90,000,000 between the lowest and Loans and investments—total10,
334
-1-346
10, 680
Loans on securities
highest points, but the daily average for the All
-267
14, 518
14, 785
other loans
+498
9,937
10,435
month was about $25,000,000 above the Investments—total
-26
4,059
4,085
United States securities..
+524
5,852
6,376
Other securities
corresponding figure for June, and excepting
for January, 1928, and November, 1929, was 1 igures for June 30 are preliminary and subject to revision.
at a new high level. Member-bank borrowings
at the reserve banks, on the other hand, now cities. These figures, which are summarized in
amounting to about $200,000,000 or one-twelfth the accompanying table, show that a growth
of their aggregate reserve balances, declined of $580,000,000 in member-bank credit during
during July and toward the end of the month the quarter reflected a growth of nearly
were at as low a level as has been reached at $850,000,000 in their combined holdings of
483
484
FEDERAL RESERVE BULLETIN
investments in securities and loans on securities—offset by a decrease of about $270,000,000
in "all other77 loans. The different classes of
loans secured by stocks and bonds are shown
in the second table, from which it appears that
the growth of $345,000,000 in security loans reALL MEMBER BANKS—LOANS ON SECURITIES
[In millions of dollars]
Change
for
quarter
June 30,
19301
Mar. 27,
1930
10,680
230
10, 334
260
2,357
2,344
+13
823
7,270
706
7,024
+117
+246
AUGUST,
1930
part arrived at after subtracting the call date
figures of member bank loans to brokers in
New York. It includes no security loans for
nonmember banks or nonbanking lenders except
those made at New York to members of the
Stock Exchange. The compilation is available
for quarterly intervals from October, 1928, to
June, 1930, and is given in the table, which
shows separately the security loans of the
member banks, by class of loan, and of other
TOTAL REPORTED SECURITY LOANS
Loans on securities—total
To banks
To brokers and dealers in securities
in New York City
To brokers and dealers in securities
elsewhere
To others
1
+346
[In millions of dollars]
-30
By member banks
Call date
Total
Figures for June 30 are preliminary and subject to revision.
fleeted a small decrease in loans to banks, absence of change in loans to brokers in New
York City, and increases of $120,000,000 and
$245,000,000, respectively, in security loans
to brokers and dealers in securities outside
New York City and to other customers borrowing on stocks and bonds.
During this same period, as shown by the
figures of the New York Stock Exchange, there
was a decrease of more than $900,000,000 in
brokers7 borrowings at New York City from
all classes of lenders, and the absence of any
change for the period in member-bank loans of
this description makes it clear that the whole
of this decrease was due to the withdrawal
from the stock market, at a time when rates
obtainable there were becoming progressively
less remunerative, of street loans placed by
nonbanking lenders and by nonmember banks.
By combining statistics from the member
bank call report and the monthly reports of
the New York Stock Exchange,
securityPloans ^ *s P oss ible to arrive at a more
comprehensive figure than has
heretofore been available for aggregate loans
secured by stocks and bonds. This aggregate,
here designated as total reported security loans,
includes those specifically reported on call dates
by all member banks and in addition thereto a
part of the brokers' borrowings at New York
City reported by the Stock Exchange—the
By
To
other
broklend2
ers
To
else- others ers
York where
To
brok-
To ers in
Total banks*
New
City
1928—Oct. 3
Dec. 31
1929—Mar. 27
June 29
Oct. 4
Dec. 3 1 .
1930—Mar. 27
June 30 3
_ 12,429
14,062
14, 613
15,144
16,974
12,835
12,644
12,050
8,819
10,172
9,693
10,094
10,314
10,505
10,334
10,680
274
269
274
335
320
357
260
230
1,899
2,556
1,879
2,025
1,885
1,660
2,344
2,357
850
975
1,014
921
939
803
706
823
5,796
6,373
6,526
6,813
7,170
7,685
7,024
7,270
3,610
3,890
4,920
5,050
6,660
2,330
2,310
1,370
1
Security loans to banks, not available separately prior to 1930, estimated
for 1928 and 1929 at half of total loans to banks.
2
Total borrowings at New York as reported for end of month by members of Stock Exchange minus loans to brokers in New York as reported
for call dates by all member banks; resulting figures, except in December
and June, reflect in part differences in these dates.
3 Figures for June 30, 1930, preliminary and subject to revision.
lenders on securities. Examination of the table
shows that the total of reported security loans
was at its peak last October and that since
then it has decreased by about $4,925,000,000,
of which about $600,000,000 was in the second
quarter of this year. On June 30, however, the
member banks had outstanding a larger volume
of loans on securities than on any preceding call
date and about $365,000,000 more than on
October 4, 1929.
The call-date classification of bank loans now
distinguishes between (1) those which reflect,
in combination with investment
Open-market
holdings, the member banks'
portfolios and
open-market policy, and (2)
loans to
customers
those which reflect the banks'
direct dealings with their own
customers. During the second quarter, as
appears from the table, it was in the openmarket portfolio that about $500,000,000 of the
485
FEDERAL RESERVE BULLETIN
AUGUST, 1930
increase in member-bank credit occurred, while view of the low return on short-term loans in
loans to customers, though altering somewhat the open market and also in view of the rapid
in composition during the quarter, increased decline in rates which accompanied efforts to
place additional funds in this category of loans.
MEMBER BANK LOANS AND INVESTMENTS (EXCLUSIVE
The nature of these developments becomes
OF LOANS TO BANKS)
more
evident when comparison is made, as in
[In millions of dollars]
the accompanying table, between changes for
the quarter in the composition of member-bank
Change
June 30, Mar. 27, for
quar19301
1930
credit at city banks, where an increasing volume
ter
of funds was available for investment, and at
Loans and investments—total
35,102
34, 529
4573
Loans to customers—total
.
Secured by stocks and bonds
___
Secured by real estate
Otherwise secured and unsecured
21, 559
8,093
3,127
10, 339
21,495
7,730
3,170
10,595
+64
+363
-43
-256
Open-market loans and investments—
total
_
Open-market loans—total...
Dollar acceptances purchased. __
Foreign acceptances purchased..
Commercial paper purchased
Street loans 2
Investments—total
_. __ _.
United States securities
Other securities
13, 543
3,108
169
71
511
2,357
10,435
4,059
6,376
13,034
3,097
175
79
499
2,344
9,937
4,085
5,852
+509
+11
-6
-8
+12
+13
+498
-26
+524
1
2
CLASSIFICATION OF MEMBER BANK LOANS AND INVESTMENTS (EXCLUSIVE OF LOANS TO BANKS)
[Preliminary figures in millions of dollars]
Amount June i Change from
30, 1930
| Mar. 27, 1930
Citi- Country City Country
banks ! banks banks 1 banks
Loans and investments—total..
Figures for June 30 are preliminary and subject to revision.
Loans to brokers and dealers in securities at New York City.
but $65,000,000. The increase in the openmarket holdings of the banks, furthermore, was
neither in any of the classes of open-market
loans nor in holdings of United States Government securities, but altogether in other securities. The detailed figures of these holdings are
not yet available for June; in March they consisted of bonds to the extent of about 80 per
cent, stocks to the extent of about 12 per cent,
and miscellaneous securities, largely of short
term, to the extent of about 8 per cent.
These changes are in accord with developments during the quarter in the general money
market, where bond prices showed a tendency
to advance despite relatively heavy flotations
of new issues while interest rates charged on
open-market loans declined to unusually low
levels. Rates on bank loans to customers also
declined but still yielded a return to the bank
that was well above that to be obtained on loans
in the open market. Under these circumstances
those member banks having additional funds
available for investment at a time when the
demand for loans from their customers was
inactive naturally chose to employ the greater
part of them in purchasing securities both in
Loans to customers
Open-market loans
Investments
1
22,044
13, 060
+696
-118
13,355
2, 792
5,897
8,203
317
4,539
+67
+193
+436
-3
-179
+64
Central reserve and reserve city banks.
country banks, where seasonal influences operated toward a contraction of loans and investments. The table shows that the demand for
loans from customers taken as a whole showed
little change at either type of bank, and that
city banks chose to employ the greater part of
the increased funds which came into their possession in purchases of investments which increased
by $435,000,000 rather than in short-term openmarket loans which increased for this type of
bank by $190,000,000. Country banks, on the
other hand, increased their holdings of investments by only $65,000,000 and met the full
seasonal contraction in their open-market
portfolio by withdrawing loans to the extent of
$180,000,000 from the short-term open markets.
From about the end of July to some time in
September or October the principal factor in
the banking situation is usually the autumn
increase in the demand for currency, which has
approximated in recent years about $150,000,000. In order to meet this demand, in the
absence of gold imports, an equivalent amount
of reserve bank credit in some form is seasonally
486
FEDERAL RESERVE BULLETIN
drawn into use. At the present time, with
member banks indebted to the reserve banks in
smaller amount than at this season of any other
year since 1924 and having in their portfolios, as
shown by June reports, a substantial volume
of acceptances, they enter this autumn the
period of seasonal increase in currency demand
in an exceptionally easy position.
Changes in Discount Rates and Bill Rates
AUGUST, 1930
At the Federal Reserve Bank of New York
the buying rate on bills of all maturities from
46 to 75 days was reduced from 2 to 1% per
cent, effective July 21. Buying rates on bills of
all other maturities remained unchanged.
Changes in Foreign Central Bank Discount Rates
The following changes have been made since
the 1st of July in the discount rates of central
banks in foreign countries:
July 10.—Bank of India, from 6 to 5 per cent, and
The discount rate on all classes and maturil
ties of paper was reduced from 4 to 3K per cent Bank of Switzerland, from 3 to 2 /{ per cent.
July 18.—Bank of Spain, from 5}£ to 6 per cent.
at the Federal Reserve Bank of Atlanta, efJuly 26.—Reserve Bank of Peru, from 7 to 8 per cent.
fective July 12; and at the Federal Reserve
August 1.—National Bank of Belgium, from 3 to 2}i
Bank of Richmond, effective July 18.
per cent.
FEDERAL RESERVE BULLETIN
AUGUST, 1930
NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled July 21 and released for publication July 25]
Industrial production decreased in June by
more than the usual seasonal amount, and factory employment and pay rolls declined to new
low levels. The volume of building contracts
awarded was large. Prices declined sharply,
and money rates continued downward.
Industrial production and employment.—In
June industrial production showed a further
substantial decrease, and the board's index,
which is adjusted for ordinary seasonal variations, declined to the lowest level since last December. Output of steel ingots declined in
June and early July more than is usual at this
season, while automobile production was
sharply curtailed to a level considerably below
that of the same period of the past two years.
Cotton consumption, already at a low level,
declined further in June. Output of bituminous coal and copper continued in small volume. Wool consumption and shoe production
increased slightly, and cement output, as in the
preceding month, was at a high level.
Factory employment and pay rolls decreased further in June. The number employed at steel plants and in the automobile,
agricultural implement, and cotton-goods industries declined more than is usual at this
season, and employment in the woolen-goods
and lumber industries continued at unusually
low levels.
The value of building contracts awarded in
June, $600,000,000, according to the F. W.
Dodge Corporation, was about 30 per cent
more than in May and the largest since last
July. The increase reflected chiefly unusually
large awards for natural gas pipe lines and
power plants; the volume of contracts for residential building was somewhat smaller than in
May. In early July the total volume of contracts was small.
Department of Agriculture estimates, based
on July 1 conditions, indicate a decrease from
last year of about 20,000,000 bushels in the
winter wheat crop and a corresponding increase in spring wheat. The corn crop is expected to be about 2,800,000,000 bushels, 7 per
cent larger than last year and 4 per cent above
the 5-year average. Area planted to cotton is
estimated at 45,815,000 acres—2.7 per cent
less than last year.
Distribution.—The volume of freight car
loadings in June and early July continued to
4519—30
2
be substantially below the corresponding periods of 1928 and 1929. Preliminary reports
indicate that the decline in department-store
sales from a year ago was of larger proportions
in June than in any previous month this year.
Wholesale prices.—Commodity prices declined more rapidly in June than in any
other recent month, and the index of the
Bureau of Labor Statistics, at 86.8 per cent
of the 1926 average, was about 10 per cent
below the level of a year ago. Prices of many
important agricultural commodities and their
manufactures declined further, and those of
certain leading imported raw products—silk,
rubber, and coffee—reached new low levels.
There were also further declines in iron, steel,
and copper. Prices of raw wool, hides, and
raw sugar increased slightly during June.
Early in July prices of meats were stronger,
but there were further declines in many other
commodities.
Bank credit.—Loans of reporting member
banks in leading cities declined somewhat
between the middle of June and the middle of
July, and on July 16 were $60,000,000 smaller
than five weeks earlier. Loans on securities7
decreased by $140,000,000, while "all other'
loans increased by $80,000,000. The banks'
investments increased further by about
$280,000,000 during this period and were in
larger volume than at any other time in the
past two years.
Member bank balances at the reserve banks
increased, and in the week ending July 19
averaged $60,000,000 more than five weeks
earlier, and at the same time their borrowings
from the reserve banks declined by nearly
$20,000,000—reflecting an increase in the
reserve banks' holdings of acceptances and
Government securities, a further slight growth
in gold stock, and a continued decline in the
volume of money in circulation.
Money rates in the open market continued
to ease, and in the middle of July rates on 90day bankers' acceptances at 1% per cent were
at a new low level, while rates on commercial
paper at 3-3% per cent were at the low point of
1924.
During July the reserve bank discount rate
was reduced at Boston from 3% to 3 per cent,
and at Philadelphia, Atlanta, and Richmond
from 4 to 3% per cent.
488
FEDERAL RESERVE BULLETIN
AUGUST,
FEDERAL RESERVE BANK CREDIT
RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES
MILLIONS OF DOLLARS
1926
MILLIONS OF DOLLARS
1927
1928
1929
Based on weekly averages of daily figures; latest figures are for week ending July 26
1930
1930
AUGUST,
489
FEDERAL RESERVE BULLETIN
1930
RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES
[Average of daily figures. In millions of dollars]
Reserve bank credit outstanding
Month or week
Bills dis- Bills
counted bought
1929—February
March
April
-.
May...
June...
July
August.
September
OctoberNovember
December
1930—January
February-.
March
__
_.
April
May
June
_
July
Week ending (Saturday)—
July 5
July 12
—
July 19
July 26
Other
United reserve
States
bank 2
securities credit
Factors of increase l
Factors of decrease
Total
gold
stock
NonUnexMoney Member
bank member pended
currency in
circu- reserve
(addeposits,
lation balances
justed)
etc.
funds
969
1,004
956
978
1,096
1,043
969
885
953
803
501
378
274
231
247
251
226
385
265
156
145
99
75
124
229
337
296
320
314
285
246
266
182
141
154
184
197
165
153
179
147
155
165
154
315
446
485
480
540
530
529
571
583
1,502
1,481
1,377
1,303
1,317
1,380
1,376
1,427
1,450
1,631
1,643
1,357
1,181
1,095
1,072
996
1,000
1,003
4,143
4,166
4,226
4,292
4,311
4,335
4,351
4,368
4,381
4,374
4,324
4,283
4,319
4,395
4,443
4,505
4,528
4,532
1,784
1,791
1,785
1,787
1,779
1,790
1,781
1,766
1,785
1,789
1,797
1, 784
1,781
1,797
1,781
1,779
1,775
1,789
4,686
4,709
4,679
4,684
4,687
4,764
4,777
4,811
4,810
4,845
4,943
4,652
4,556
4,533
4,518
4,497
4,489
4,483
2,357
2,337
2,308
2,296
2,314
2,334
2,322
2,335
2,386
2,521
2,395
2,349
2,305
2,330
2,350
2,356
2,392
2,417
357
361
366
370
376
376
382
387
392
395
399
394
393
397
400
398
395
282
252
213
196
145
155
166
151
595
589
581
574
1,076
1,039
1,003
953
4,536
4,537
4,538
4,528
1,783
1,783
1,796
1,793
4,555
4,526
4,470
4,436
2,412
2,410
2,441
2,414
391
389
390
1
For explanation see BULLETIN for July, 1929, pp. 432-438.
Includes "other securities," amounts due from foreign banks, and reserve bank float; for explanation see BULLETIN for July, 1929.
Backfigures—SeeAnnual Report for 1929 (Tables 1, 2, and 3).
2
ANALYSIS OF CHANGES IN MONETARY GOLD STOCK
[End of month basis. In millions of dollars]
GOLD MOVEMENTS TO AND FROM UNITED STATES
[In thousands of dollars]
Increase or decrease (—) during
month
Month
1928—October
November
December
Gold
stock
at end
of
month
4,142
4,128
4,141
Total (12mos.)-1929—'January..
February
March
April
May
June
July
August _
September
October
November _
December.._
Total (12mos.)_.
1930—January
February
March.
April
May
June _July?-..
4,127
4,153
4,188
4,260
4,301
4,324
4,341
4,360
4,372
4,386
4,367
4,284
4,293
4,355
4,423
4,491
4,517
4,535
4,516
1930
Through Through Through
net gold ear* domestic
Total import marking producor
opera- tion,1
export tions
etc
17.3
-14.0
13.2
13.3
6.7
23.3
-237.9
-14.4
26.4
34.4
72.4
40.6
23.4
16.3
18.9
12.1
14.4
-19.2
-82.9
1.2
—25.0
-15.8
2.8
4.3
5.7
-392. 0
119.6
34.5
47.2
25.5
24.8
23.1
23.6
30.2
34.7
18.4
17.6
17.5
-23.2
-64.4
-65.0
7.5
48.6
16.1
-7.5
-22.0
-1.0
-6.6
-4.5
1.0
-22.0
3.4
.9
2.1
0.7
0.9
0.7
3. 6
1.5
1.1
1.4
2.3
3.5
142.4
175.1
-55.4
22.7
8.8
61.9
68.2
68.5
25.9
17.6
-19.1
4.0
60.0
55.5
65.7
23.5
13.9
-25.3
2.5
0.0
13.0
0.5
2.0
2.0
-3.0
2.3
1.9
-0.3
2.3
0.4
1.7
9.2
i For explanation of this figure, which is derived from preceding col"
umns, see BULLETIN for December, 1928, p. 831.
p Preliminary.
From or to—
July (preliminary)
Imports
Exports
Imports
30,000
20
Exports
France
Germany
Italy
Netherlands
Canada .
Central America
__
12,500
2,424
71
1,699
12,929
773
114,032
1,767
102
2,455
47
50
26 232,199
9,663
9
18
1,102
124
178
69
1,004
1
449
171
7,015
457
15
125
42,501
13,938
Exports
289
8,497
156
6,062
Ecuador
Peru _ .
3,100
Venezuela
3,000
Urucuav
China and Hong
Kong
_
1,038
Dutch East Indies
Japan. _
_
_. 2,189
Philippine
Islands
New
Zealand
All other countries.. 1830
2 17,223
Total
Imports
7
50
26
1
9
15,887
836
11, 709
391
59,411
154
3,733
717
5,906
304
1,000
4
England
Mexico
Argentina
Brazil
Chile
Colombia
January-June
June
13
118
415
91
1 Includes all movements of unreported origin or destination.
2 At New York—imports, $13,996,000; exports, $42,501,000. Elsewhere—
imports, $3,227,000.
490
FEDERAL RESERVE BULLETIN
AUGUST, 1930
MEMBER BANK BORROWINGS AT FEDERAL RESERVE BANKS
[Monthly averages of weekly figures. In millions of dollars]
Reporting member banks in leading cities
Month
New York City
Total
Total
1929
Js.nus.rv
February
March
May
June
J U ly
August
SeDtember
- - -- - -
NovpmbGr
-«
891
893
978
991
951
972
1,100
1,013
974
885
944
755
Member banks
outside leading
citi esi
Other leading cities
Total i
1930
1929
462
371
247
225
226
222
218
1929
1930
247
174
81
71
59
53
53
663
659
740
725
661
670
801
717
706
634
655
490
190
131
166
162
145
165
319
196
166
74
60
80
1929
1930
39
21
1
17
11
5
Chicago
1930
473
528
574
563
516
505
482
521
540
560
595
410
1929
208
153
80
54
48
48
50
69
93
121
46
36
64
47
32
18
38
28
37
1929
1930
1
2
•
2
228
234
238
266
290
302
299
296
1930
215
197
166
154
167
169
166
268
251
289
265
-- i Includes (in small amounts) discounts by Federal reserve banks for nonmembers: (1) Bills discounted for intermediate credit banks and (2)
notes secured by adjusted-service certificates discounted for nonmember banks.
FEDERAL RESERVE BANK RATES
OPEN-MARKET RATES
DISCOUNT RATES
RATES IN NEW YORK CITY
[Rates on all classes and maturities of eligible paper]
Prevailing rate o n Federal reserve bank
Rate in
effect on
Aug. 1
3
Boston
New York..Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. _
Kansas City_.
Dallas
San Francisco
21/2
3^2
Date
established
July
June
July
June
July
July
June
Apr.
Apr.
Feb.
Apr.
Mar.
Previous
rate
3
20
3
7
18
12
21
12
15
15
8
21
m
3
4
4
4
4
4
41/2
41/2
BUYING RATES ON ACCEPTANCES
[Buying rates at the Federal Reserve Bank of New York]
Maturity
1-15 days-_.
16-30 days-.
31-45 days._
46-60 days..
61-75 days-_
76-90 days _.
91-120 days121-180 days
Rate in
effect on
Aug. 1
Date
established
June 30
—do
--do.....
July 21
_._do
June 30
June 20
2% ...do
VA
VA
VA
VA
VA
2
2lA
Previous
rate
2
2
2
2
2
Call loans 1
Month or week Prime
commercial
paper,
4 to 6
months
1929
July
August..
September
October
November
December
1930
January
February
March
April . .
May .
June
July
Week ending—•
July 5
July 12
July 19
July 26
Prime
bank- Time
ers'
accept- loans,
90 2
ances, days
90
days
U.S.
Treasury
notes Treasand
ury
Re- certifi- bondsa
New newal
cates,
3 to 6
months
6
5 Ms
5Vs
6 -6H
6H
514
634
5H
5H-6H 3%-4%
5
33/4-4
7 -9
4%-6
4%-5
9 41
8.15
8.62
6.10
5.40
4.88
9 23
8 23
8.50
6 43
5.44
4.83
4 55
4 70
M. 58
4 37
3.47
* 3.03
3 68
3 72
3.70
3 67
3.45
3.46
3%-4
334-3%
2^-334
2%-3
ZH-A
3H-4
2%-25A
7
3H-3M l A-2%
3 -V/>
17A
4.31
4.28
334-4% 3 56
4 -4H 3 79
3.05
21/2-S1A 2.60
23.4-3
2.18
4.64
4.32
3 69
4 00
3.12
2.62
2 20
3 39
3.36
4 2 95
3 00
2 41
4
1 89
1.83
3 51
3 50
3 40
3 46
3 41
3 37
3 37
2.38
2.40
2.20
2.00
1.87
1.85
1.90
1.84
3.36
3.36
3.38
3.37
4%-5
4^-5
3H-3 1 / 2
3 -3^
3 -3H
3 -3J4
7^-8
8%-9
8%-Q
434-0
4H-5
zu-zn
23/ 4 2.54
1%
V/s 2H-2H 2.48
1% 234-3 2.09
2.00
VA 2^-3
21/4
234
234
1
Stock exchange call loans; new and renewal rates.
Stock exchange 90-day time loans.
3 issues—3%, 3%, 4 per cent; yields calculated on basis of last redemption dates—1947, 1956, and 1954.
* Change of issues on which yield is computed.
2
3
NOTE.—Rates on prime bankers' acceptances. Higher rates may be
charged for other classes of bills.
Average rate Average yield
on—
on—
491
FEDEKAL RESERVE BULLETIN
AUGUST, 1930
PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES
WEIGHTED AVERAGES
Twenty-seven southern and
western cities
Eight other northern and
eastern cities
New York City
Month
1927
January...
February..
March
April
May
June
July
August
September.
October...
November.
December.
4.66
4.56
4.56
4.63
4.63
4.60
4.56
4.41
4.44
4.49
4.35
4.50
1928
4.56
4.44
4.59
4.72
4.97
5.09
5.38
5.56
5.63
5.63
5.56
5.63
1929
]930
5.74
5.73
5.81
5.85
5.88
5.93
5.88
6.05
6.06
6.08
5.86
5.74
1927
5.64
5.35
5.22
4.91
4.74
4.59
4.48
1928
4.99
4.98
4.88
4.90
4.95
4.93
4.90
4.87
4.77
4.79
4.82
4.76
4.73
4.76
4.81
4.91
5.04
5.36
5.57
5.59
5.80
5.80
5.82
5.91
1929
5.87
5.86
5.91
6.00
6.09
6.02
6.08
6.11
6.24
6.25
6.12
5.94
1930
5.88
5.66
5.47
5.22
5.13
5.06
4.81
1927
1928
5.72
5.71
5.65
5.57
5.59
5.54
5.52
5.53
5.61
5.56
5.56
5.60
1929
5.94
5.96
6.04
6.07
6.10
6.16
6.17
6.22
6.27
6.29
6.29
6.20
5.53
5.53
5.54
5.54
5.56
5.67
5.77
5.80
5.82
5.87
5.90
5.91
1930
6.12
6.04
5.98
5.86
5.75
5.69
5.62
NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given
on preceding page). All averages are based on rates reported for three types of customer loans—commercial loans, and demand and time loans
on securities. The method of computing the averages takes into account (a) the relative importance of each of these three types of loans and (6)
the relative importance of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included is
weighted according to the importance of that city in the group, as measured by the loans of all banks.
PREVAILING QUOTATIONS
Prime commercial loans
Fedefal reserve
bank or branch city
May,
1930
New York City
June,
1930
July,
1930
Loans secured by prime stockexchange collateral
May,
1930
June,
1930
Loans secured by warehouse
receipts
July,
1930
May,
1930
June,
1930
4^-5
41/3-6
41/3-5
4%-5
41/3-5
41/3-6
5 -5}
5 -6
5 -6
4
5 -6
6 -G
5 -6
6
5 -6
6 -7
6
5 -5
5J/2-6
6
5 -6
6
6
6 -7
6
41/3-5^3
4H-4H
July,
1930
4 -5
Interbank loans
May,
1930
June,
1930
41,3-5
4
414-41/
4
5 -5
4^3-5
5^3-6
5 -51,3
5 -6
July,
1930
-5
Northern and Eastern Cities
Boston
Buffalo
Philadelphia
Pittsburgh
Cleveland
Cincinnati
Detroit
Chicago
4J4-43
5 -6
41/2-6
5H-6
5 -5^3
41/3-5
5 -6
4H-5
5 -6
4 -6
5 -6
51/3-6
4J4-5
3H-4
5 -6
4 -5
41/2-51/
6
41/3-6
4^-51/2
4 -6
5 -6
5 -6
4 -5
5 -6
5j,3-6
51/2-6
5 -6
51,3-6
5 -6
5 -6
5 -51/2
5 ~hVi
H6
-hx/>
6 -6
51/3-6
6
5 -6
4 -5
5^i
41/2-51/2
5
5
5
5
-6
-6
-6
-5^
4
5 -51,3:
4 -5
5 -6
5 -51/35 -514
5%-6
5 -6
Southern and Western Cities
Richmond.
Baltimore _
Charlotte
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
St. Louis
Little Rock
Louisville
Minneapolis
Helena
Kansas City...
Denver
Oklahoma City
Omaha..Dallas
El Paso
Houston.
San Antonio
San Francisco
Los Angeles
Portland
Salt Lake City
Seattle
Spokane.
41/2-5^2
5 -6
51/2-6
41/3-51/2
4^6
51/2-6
6 -7
5 -6
6
5 -6
4 -5
6 -6i/ 2
6
41/2-6
6 -7
5 -6
6
5 -6
4^-5
6
6
•5 -15 1 /
51/2-6
6
51/3-6
5 -5J-
5 -5i/
5 -6
6 -8
6
5 -6
6 -8
6
6 -61/
5 -6
6
6
6
6
6
5 -6
/
41/2-5
6
6 -7
6 -7
6 -7
5 -5?
4 -5
6
6
4 -5
41/3-5
5 -6
5 -6
6 -7
6
51/2-6
6
8
6 -61,
6 -7
6 -8
6
6 -7
5 -6
6
6
6 -61/
6
6
51/3-6
6 -7
6 -7
6
6 -61,3
5 -6
6 -7
6
51/3-6
8
5^3-6
6
8
6 — 6 J-3
6 -7
6 -8
6
6 -7
6
6
6
6 -6I/2
5 -6
4^3-6
6
5 -6
5 -6
6 -7
6
51/3-6
8
51/3-6
6
8
6 -6J6 -7
8
6
6 -7
5^
6 -6K2
6 -61,
6
6 -6J6J,3-7
5 -51/2!
5-6
5 -5J
6 -8
6 -7
51/3-6
6 -8
6 -7
5^3-6
5 -6
5 -6
6 -7
4J4-5
e -8
4 -4^3
6 -8
51/3-6
6 -8
6 -8
6
51/3-6
6 -8
6 -8
6
5^3-6
6 -7
6
6^3-7
6 -7
7
61/3-7
7
6 -6^
6 -8
6
61/3-7
6 -7
6
61/3-7
7
5 -6
6 -8
6 -7
5^3-6
Y
5 -6
6 -7
6
4 -5
6 -8
5 -6
6 -8
6 -8
6
5 -6
6
5 -6
6 I
6 i
51/3-6 I
5 -6
5 -6
6 -7
5 -6
51/2-6
6 -61/3
6
5 -6
6
51/3-6
6 -7
6 -7
7
7
7
5 -5^3
5 - 6
5 -6
5 -6
6
5^3-6
51,3-6
6 -8
51/3-6
6
6
6
5^3-6
6
5 -6
6
5
6
6
5 -6
5%-6
5 -6
51/3-6
5 -6
5 -5^
6
5 -6
6 -8
5 -6
6
6
6
5 -66
5 -6
NOTE.—Rates shown are those at which the bulk of the loans of each class were made by representative banks during week ending 15th of
month. Rates from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the larger banks in their respective cities.
492
FEDERAL RESERVE BULLETIN
MEMBER BANK CREDIT
BROKERS' LOANS
REPORTING MEMBER BANKS
[In millions of dollars. Monthly data are averages of weekly figures]
I
BorLoans
Due rowings
to
In- banks at;
F.
R.
vestOn se- All ments
banks
Total curi- other
ties
BY MONTHS
BY WEEKS
Total:
1930—June 25
July 2
July 9
July 16
July 23
July 30
New York City:
1930—June 25
July 2
July 9
July 16
July 23
July 30
Other leading cities
1930—June 25
July 2
July 9
July 16
July 23
July 30
REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings on demand and on time. In millions of dollars]
Loans and investments
Total
Total:
1929—April
May
June
July
August
September..
October
November...
December
1930—January
February
March
April
May
June
July
New York City:
1929—April
May
June
July...
August
September...
October
November
December
1930—January
|
February
March
April
Hf
May
i
June
July
Other leading cities:
^1929—April
May
June
July
August
September. _.
October
November...
December
1930—January
February
March
April
May
June
July
AUGUST, 1930
22, 388
22,113
22, 231
22,479
22,465
22,646
23,124
23,663
23,012
22, 368
22,083
22, 352
22, 657
22,662
23,024
23,101
16,464
16,277
16,480
16,950
16,969
17,197
17, 706
18,041
17,444
16,821
16,542
16, 746
16,901
16,825
17,048
16,906
8,249
7,968
7,794
7,671
7,964
8,270
8,312
8,568
8,409
7,297
7,182
7,281
7,496
7,407!
7,507
7,837
8,349
8,001
7,664
7,493
7,649
7,829
7,852
8,117
8,078
5,437
5,344
5,468
5,804
5,688
5,803
6,108
6,380
6,021
5,705
5,584
5,720
5,868
5,878
6,099
5,984
2,729
2,653
2,749
3,045
2,845
2,892
3,191
3,340
3,112
2,945
2,909
3,115
3,383
3,459
3,701
3,558
15,092
14,931
14,950
14,983
15,058
15,139
15,288
15,314
15,011
11,027
10,933
11,012
11,146
11,281
11,394
11, 598
11, 661
11,424
11,115
10, 958
11,026
11,033
10.948
10.949
10, 922
4,663
4,565
4,582
4,670
4,734
4,762
14, 705
14, 590
14, 703
14,828
14,810
14,907
15,023
7,:
7,218
7,332
7,716
7,578
7,654
4*909
4,856
4,849
4,762
4,850
4^853
4,"""
4,851
9,073
9,059
9,149
9,234
9,390
9,543
9,608
9,792
9,476
9,027
8,871
8,781
8,631
8,513
5,924
5,836
5,751
5,529
5,496
5,449
5,418
5,623
5,567
5,548
5,541
5,607
5,756
5,837
5,977
8,497 6,194
2,709
2,545
2,532
2,738
2,604
2, 718
2,914
3,008
2,886
2,828
2,818
2,898
2,940
2,870
3,063
3,404
725
661
670
801
717
706
634
655
490
247
174
81
71
59
53
53
2,708
2,691
2,719
2,758
2,843
2,911
2,916
3,040
2,909
2,760
2,675
2,605
2,485
2,418
2,398
2,426
874
1,859
1,838
817
1,812
796
1,692
935
1,720
827
1,704
887
1,729 1,023
1,132
1, 981 980
1,959 931
1,909 902
1,929 952
1,961 982
1,974 931
2,019 1,009
2,094 1,100
162
145
165
319
196
166
74
60
80
39
21
1
17
11
5
6,364
6,368
6,430
6,476
6,547
6,632
6,692
6,752
6,568
6,267
6,196
6,176
6,146
6,095
1,835
1,728
1,736
1,803
1,777
1,830
1,891
1,875
1,906
1,897
1,916
1,946
1,959
1,939
2,054
2,304
4,065
3,998
3,938
3,837
3,776
3,745
3,690
3,654
3,587
3,589
3,632
3,677
3,795
3,862
3,958
6,071 4,101
563
516
505
482
521
540
561
594
410
208
152
80
54
48
48
53
From New
From private
York banks banks, brokers,
and trust com- foreign banking
panies
agencies, etc.
Total
End of month
January
February
March
April
May
June
July
August
September
October
November
December
1
1929
1930
1929
6,735
6,679
6,804
6,775
6,665
7,071
3,985
4,168
4,656
5,063
4,748
3,728
5,664
5,619
5,713
5,580
5,482
5,797
6,154
6,492
7,077
5,313
3,432
3,370
7,474
7
8,549
6,109
4,017
3,990
1930
3,529
4,026
4,409
4,139
3,201
3,227
1929
1930
1,071
1,060
1,091
1,194
1,183
1,275
1,320
1,390
1,472
796
585
620
616
639
631
654
609
527
462
Call loans, $3,021,000,000; time loans, $668,000,000.
MADE BY REPORTING MEMBER BANKS IN N. Y. CITY
{In millions of dollars. Monthly data are averages of weekly figures]
For banks
Month or date
Total
Total
In
New
York
Cityi
Outside
New
York
City 2
For
others
1929—June
July
August....
September
October...
November.
December.
1930—January...
February..
March
April
May
June
5,383
5,841
6,069
6,540
6,498
4,023
3,391
3,351
3,459
3,741
4,115
4,030
3 3,825
2,443
2,849
2,778
2,898
2,896
1,869
1,601
1,706
1,913
2,310
2,740
2,727
2,748
895
1,198
993
1,048
1,257
1,090
888
844
942
1,210
1,557
1,665
1,831
1,548
1,651
1,786
1,850
1,639
713
862
971
1,100
1,183
1,062
917
2,940
2,992
3,290
3,642
3,602
2,154
1,790
1,644
1,546
1,430
1,376
1,302
1,078
July
July
July
July
July
3,219
3,203
3,243
3,226
3,228
2,364
2,323
2,395
2,395
2,414
1,710
1,563
1,596
1,619
1,669
654
760
799
776
745
856
880
847
832
814
2
9
16....
23....
30....
779
1
2
Weekly reporting member banks in New York City.
Member and nonmember banks outside New York City (domestic
banks only); includes unknown amount for customers of these banks.
s Call loans, $3,204,000,000; time loans, $622,000,000.
ACCEPTANCES AND COMMERCIAL PAPER
[In millions of dollars]
23,140
23,080
22,987
23,106
23,096
23, 236
17,059
16,960
16,869
16,906
16,852
16,945
8,487
8,442
8,367
8,424
8,398
8,416
8,572
8,517
8,502
8,482
8,454
6,081
6,120
6,118
6,200
6,243
6,291
3,098
3,401
3,392
3,394
3,467
3,365
8,229
8,123
6,158
6,058
5,916
5,944
5,952
6,050
3,696
3,652
3,498
3,518
3,537
3.586
2,462
2,406
2,418
2,426
2,415
2,464
2,072!
2,065
2,0631
2,070|
2,1191
2,152
1,047
1,131
1,103
1,061
1,132
1,072
10,901
10,901
10,953
10,962
10,900
15, 034 10,895
4,791
4,790
4,867
4,906
4,861
4,830
6,110
6,111
6,085
6,056
6,039
6,065
4,010
4,056
4,055
4,130
4,125|
4,139
2,051
2,270
2,289
2,333
2,335
2,293
V "
8,014
8,070
8,202
14,911
14,957
15,008
15,091
15,025
End of month
January
February
March
April
May
June
July
August
September. . .
October
November
December.. ....
Bankers' acceptances outstanding
Commercial paper outstanding .
1927
1928
1929
1930
1927
1928
1929
774
785
809
811
775
751
741
782
864
975
1,029
1,081
1,058
1,056
1,085
1,071
1,041
1,026
978
952
1,004
1,123
1,200
1,284
1,279
1,228
1.205
L, 111
L 107
1 113
1,127
L, 201
L, 272
L, 541
L,658
1,732
1,693
1,624
1,539
1,414
1,382
1,305
551
577
606
599
582
579
569
591
577
567
570
571
541
503
483
458
407
411
387
351
304
274
265
267
600
611
603
555
430
427
421
383
265
285
316
334
1930
404
457
529
553
541
527
Figures for acceptances as compiled by American Acceptance Council;
for commercial paper as reported by about 25 dealers.
493
FEDERAL RESERVE BULLETIN
AUGUST, 1930
SECURITY PRICES, SECURITY ISSUES, AND BUILDING CONTRACTS
SECURITY PRICES
[Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures]
Common stocks (1926=100)
Selected groups of industrial issues
PreBonds1 ferred
Cop- Elec- MaIndusPublic
BuildRailstocks2 Total
trial road utility Auto- ing Chain Chem- per trical chinOil
and equipmobile equip- store ical
brass ment ery
ment
Month or date
Number of issues
60
1929—June
July_
August
September.
October
November.
December.
1930—January
February...
March
April
May
June
July
July 2
July 9
July 16
July 23
July 30
95
95
95
94
1
3
2
0
8
95.1
95 7
96 5
96 5
96 4
97 8
97. 9
97. 9
98. 2
98.7
98. 2
98. 4
98. 7
99.0
99. 1
20
404
337
33
34
13
127.7
127.0
126.3
126.8
126.4
123.9
126.4
126.5
126.9
127.8
128.2
127.6
126.8
125.9
126.1
125.8
125.6
126.1
125.8
191
207
218
225
202
151
154
156
166
172
181
171
153
149
149
203
210
216
194
145
147
145
160
165
168
157
135
136
233
273
304
321
277
195
201
242
241
241
241
196
134
134
158
169
165
172
152
114
113
145
148
149
155
139
104
106
270
315
320
238
305
214
228
271
281
289
294
259
204
196
149
156
163
171
160
143
140
137
143
143
142
136
125
124
209
231
242
264
250
224
215
135
145
155
162
152
134
132
117
125
125
127
116
100
98
102
100
100
101
97
90
89
240
254
266
282
257
223
217
146
144
153
154
150
136
135
143
144
141
122
122
126
]27
124
211
208
220
221
217
122
125
138
140
136
96
96
100
87
86
90
91
90
215
206
221
226
217
10
16
10
30
360
405
399
345
227
241
159
172
177
191
172
135
143
144
149
158
167
161
131
132
188
212
238
244
217
169
170
122
120
118
114
103
78
77
193
193
193
174
151
135
129
265
307
323
359
237
290
277
146
154
161
173
170
152
155
129
128
141
156
148
133
133
177
188
192
196
174
161
159
78
85
85
83
77
69
67
129
129
128
131
129
271
266
284
287
276
153
151
157
156
155
129
130
137
136
133
155
154
162
164
160
17
2
Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity.
20 high-grade industrials; average price.
DOMESTIC CAPITAL ISSUES
FOREIGN CAPITAL ISSUES
[In millions of dollars. Source: Commercial and Financial Chronicle]
[In millions of dollars]
January-June
June, 1930
1930
Textile
Steel
January-June
June, 1930
1929
1930
Class of issue
1929
Class of issue
ReNew fun ding
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
Refunding
527.9
48.7
4,086.3
267.9
4,804.5
859.4
377.8
47.4
3,321. 2 256.2
4,153.8
852.1
156.4
69.0
152.4
7.5
142.6
42.3
2.5
2.6
1,810. 6 190.5
52.3
290.7
1, 219.9 13.4
30.5
734.6
11.7
1,163. 5 374.7
113.5 21.9
2, 876. 8 455.5
4,354.1
5, 663.9
1.3
576 . 6
650.7
7.3
Government
Cor- Gov- Corpo- ern- porate ment rate
Gov-
Corpo-
203.4
31.8
577.7
19.9 199.3
342.4
193.4 31.8
New issues
__
Europe
_
42.8
Canada and Newfoundland
Latin America
U. S. insular possessions.. 103.8
4.8 23.1
Miscellaneous
10.0
Refunding issues
Total Government and
corporate
235.3
492.3
101.7
183.8
36.6 73.6
326.9
49.5
95.4
131.5
106.5
57.3
85.3
32.8
17.6
69.4
40.5
7.7
159.8
15.5
Total _
63.3
44.9
2.0
182.9
847. €
541.7
BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING
[Value of contracts in millions of dollars!
Total
January
February
March..
April
May _
June
1929
1930
1929
1930
410.0
361.3
484.8
642.1
587.8
545.9
324.0
317.1
456.1
483.3
457.4
600.6
138.1
129.5
197.2
256.8
192.0
189.8
66.6
74.8
101.5
123.1
116.6
96.8
3, Q31. 8 2, 638. 4
652. 4
488 9
445 4
445.6
391.0
316.4
1,103.3
199. 9
146 1
( 118.4
i 137.7
I 113.5
114.0
579.4
_- ___
_ _
Year to date
July
Ausiist
September
October
November
December.
Residential
Industrial
1929
1930
Commereial
1929
38.3
33.5
74.3
38.1
54. 6
93. 6
100.4
68.3
75.6
394.1
332.4
66.6 1
75 3 i
52.6 ._
60.9 i
39 7 '
67.4
489.6
91.3
72.0
76.9
67.7
101.8
33.4
63.1
56.1
55.8
68. 2 i
80. 8 !
70. 0
780
86.5
80.9
1930
Public works and
public utilities
Educational
1930
All other
1929
1930
54.1
72.9
77.0
73.2
73.3
59.1
66.5
57.6
71.5
152.1
139.4
120.8
112.1
85.8
105.3
149.7
134.9
251.9
17.7
22.6
37.5
29.9
38.2
43.4
19.0
31.2
35.4
35.4
36.9
48.9
24.1
27.3
47.2
57.1
50.9
40.9
34.0
28.2
62.6
63.7
41.1
50.2
409.6
608.0
194.5
119.3
117. 2
85.1
72.4
51.8
839.7
189.3
48.0
32.3
29.8
36.9
25.7
19.8
196.8
247.5
52.0
43.9
50.4
57.3
38.0
29.9
280.4
1929
1930
Figures for building contracts awarded are for 37 States east of the Rocky Mountains, as reported by the F W. Dodge Corporation.
1930
494
FEDERAL RESERVE BULLETIN
AUGUST,
1930
PRODUCTION, EMPLOYMENT/CAR LOADINGS, AND PRICES
[Index numbers; 1923-1925 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variations]
Industrial production *
Building contracts
awarded
Factory
employment
Commodity
prices t
Freight car loadings *
Factory
pay
rolls
Merchandise in
less-than-carAll
load lots
com- Farm
mod- prodities ucts
Unad- AdUnad- AdUnadAdUnad- AdUnad- Unad- Unad- Unad- Adjusted justed justed justed justed justed justed justed justed justed justed justed justed
Year and month
Total
1919.-.
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
Manufactures
83
87
67
85
101
95
104
108
106
111
118
84
87
67
87
101
94
105
108
106
111
119
Minerals
Total
77
64
89
70
74
105
96
99
108
107
106
115
63
57
81
84
95
122
130
128
135
117
107
108
82
90
104
96
100
101
99
97
100
98
118
77
81
103
96
101
104
102
102
107
84
91
79
86
100
98
103
107
103
103
106
72
87
93
96
99
104
107
105
104
104
139
154
98
97
101
98
104
100
95
98
97
158
151
88
94
99
100
110
100
99
106
105
1926
February
March
April
May
June
July
August
September
October..
._
Nnvfvmhftr
December
1927
January
February
March
April
May. .
June
July
August -.
September
October.
November
109
110
108
107
106
103
109
113
114
110
101
106
107
107
106
108
107
110
112
111
108
105
111
111
110
108
106
102
108
112
112
108
99
108
108
107
106
108
107
111
112
111
106
103
92
98
96
103
109
110
115
119
124
123
113
95
104
108
104
106
107
109
110
114
118
119
106
146
139
134
133
126
148
137
126
119
131
102
103
102
101
101
99
101
103
103
101
100
106
107
105
104
104
99
104
105
108
105
104
96
99
98
106
110
111
113
122
123
113
98
104
104
107
107
109
108
108
109
109
109
107
102
107
107
108
108
106
107
112
112
110
103
106
106
106
105
107
106
106
107
107
108
108
102
100
100
101
101
100
99
100
99
98
98
105
102
103
102
101
99
97
99
98
95
95
105
111
113
110
112
107
102
105
107
105
101
104
110
113
112
113
107
102
104
106
104
100
95
105
107
110
109
111
109
107
107
105
102
99
94
96
151
147
135
154
130
135
127
137
114
98
100
100
100
99
99
98
99
101
99
97
99
105
106
105
104
102
99
102
102
103
98
100
104
108
108
106
105
104
105
110
109
106
108
109
107
107
104
104
104
104
104
105
104
97
96
95
94
94
94
94
95
97
97
97
97
95
94
94
96
97
98
102
106
105
104
103
116
95
99
97
100
102
100
105
106
104
109
116
114
101
88
105
109
108
108
106
104
101
104
104
101
97
99
112
113
111
96
108
108
103
111
111
112
105
97
116
117
118
107
109
105
100
106
104
105
101
96
106
108
111
109
111
108
106
107
105
103
99
100
95
98
103
97
104
105
111
112
110
110
108
105
110
116
118
115
108
106
109
110
109
109
109
110
112
114
115
113
113
106
114
115
113
111
109
106
110
116
117
115
109
106
110
111
110
109
111
111
113
116
115
113
114
100
99
98
94
104
104
103
111
115
123
117
106
103
103
103
105
105
101
101
105
107
114
113
112
104
113
144
157
163
158
142
126
143
145
115
105
94
96
97
96
96
96
96
98
100
100
99
98
96
101
103
100
101
101
98
103
104
107
104
104
92
94
97
96
104
103
105
109
119
119
108
95
100
102
102
104
105
102
102
104
106
106
104
103
98
101
105
105
106
105
104
104
109
109
106
100
106
105
104
104
104
103
104
103
104
105
104
105
96
96
96
97
99
98
98
99
100
98
97
97
106
105
104
108
110
107
107
107
104
102
104
116
120
121
124
125
125
119
121
123
120
108
95
117
117
118
122
124
127
124
123
122
117
106
99
116
120
125
127
127
126
119
121
122
119
107
92
117
116
120
123
125
129
126
125
122
117
105
96
114
116
101
104
116
116
118
121
127
127
114
110
118
120
107
115
116
113
114
115
118
118
110
116
100
88
118
156
143
133
159
119
108
109
95
77
97
100
101
102
102
101
101
102
103
102
98
95
101
108
111
111
111
109
105
109
111
110
102
99
95
99
98
102
110
109
111
114
121
118
102
90
104
107
103
111
111
108
108
109
108
104
99
97
97
101
106
107
108
105
105
106
110
109
106
96
105
105
105
106
108
104
105
105
105
105
104
101
97
97
98
97
96
96
98
98
98
96
94
94
106
105
107
105
102
103
108
107
107
104
101
102
103
109
106
107
105
*100
104
107
104
106
104
P 101
102
110
109
110
106
PlOO
102
107
105
107
104
107
104
91
93
102
112
109
96
104
103
»100
79
77
111
118
111
146
93
93
93
92
90
88
94
97
98
97
94
90
89
92
90
93
97
95
97
99
95
101
98
94
94
98
101
101
101
98
102
102
100
100
99
97
93
92
101
98
95
96
93
89
1928
January
February
March
April
May
June
July
August.
September
October
November
1929
January
February
March
April
M a y . ..
June
July
August
__
September
October
November
December
1930
January
February
March
April
May
June
._
_
__
91
91
89
87
* Average per working-day, except for annual indexes.
t Wholesale price index of Bureau of Labor Statistics; 1926=100. Index numbers for all major groups of commodities are given on p. 517.
» Preliminary.
109
495
FEDERAL RESERVE BULLETIN
A U G U S T , 1930
INDUSTRIAL PRODUCTION, BY INDUSTRIES
[Index numbers of the Federal Reserve Board. Adjusted for seasonal variations. 1923-1925 average=100]
1920
1930
Industry
Apr. I May June
July
Aug. Sept.
Oct.
Nov. Dec
Jan.
Feb. Mar. Apr. May June
MANUFACTURES
IRON AND STEEL
136
117
137
120
119
101
106
Pig iron
Steel ingots
TEXTILES..-
Cotton consumption
Wool
Consumption
Machinery activity i
Carpet, rugloomactivityi.
Silk
Deliveries
Loom activity!
149
159
129
103
99
100
93
102
119
107
111
124
' 120
93
135
118
103
'138
91
115
151
132
FOOD PRODUCTS
Slaughtering, meat packing..
Hogs
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
140
122
142
116
115
98
106
89
90
148
158
128
98
101
106
91
99
126
124
118
125
118
117
101
109
91
96
148
158
130
96
97
104
124
101
94
r
125
r
121
91
138
122
101
"136
103
117
152
131
143
128
144
120
119
101
114
86
90
150
161
130
100
93
94
88
85
126
107
113
125
119
95
134
118
101
'131
101
120
169
135
84
130
121
94
143
119
101
128
100
120
178
148
99
126
120
94
145
119
96
162
46
130
113
106
142
59
156
114
105
86
143
55
175
117
103
93
145
126
147
121
125
102
109
92
98
138
142
130
97
92
94
86
91
125
113
90
127
122
93
134
119
109
' 144
92
120
150
137
155
127
158
121
122
101
107
93
95
149
160
128
96
90
90
87
83
117
109
103
128
' 119
92
133
120
107
' 131
100
118
180
142
148
55
93
101
93
84
152
131
154
118
119
97
109
85
83
146
156
127
96
94
TRANSPORTATION EQUIPMENT:
Automobiles
Locomotives
Shipbuilding
153
53
62
LEATHER AND PRODUCTS
Tanning
Sole leather i
Upper leatherCattle
Calf and kip
Goat and kid
Boots and shoes
78 i
91
118
156
139
100
107
100
108
104
89
94
82
88
145
153
128
96
95
101
82
88
125
92
106
123
118
92
139
120
97
'131
85
113
144
133
90
95
90
96
90
77
80
74
75
140
148
124
95
91
96
81
91
113
94
111
118
113
93
139
116
95
107
91
116
125
134
133
49
101
116
105
94
113
57
75
113
108
94
81
45
69
106
103
95
49
32
97
93
99
94
125
91
'130
76
93
123
100
96 !
116
106
74
104
153
118
75
111
158
120
108
136
125
102 i
144
123 |
100
147
117
88
145
108
83
70
151
90
110
144
138
147
142
111
146
137
145
145
116
154
126
130
137
118
164
127
133
123
122
168
122
126
120
118
174
125
127
131
113
172
122
125
125
109
149
119
126
112
110
117
113
122
106
165
194
93
141
125
144
161
166
126
142
109
173
168
196
103
140
126
149
158
163
121
142
101
178
170
199
110
140
126
151
162
167
125
139
100
172
171
205
95
138
123
151
141
146
105
131
97
160
176
209
108
142
131
152
119
123
87
133
99
163
141
123
147
116
120
90
136
100
168
178
215
103
142
121
146
114
117
87
135
99
168
171
209
93
136
110
139
94
97
74
130
102
95
132
104
86
134
143
139
121
122
93
102
76
135
126
124
120
112
94
102
72
143
119
122
124
114
99
81
145
121
119
127
107
91
103
106
140
121
125
120
119
103
116
140
107
123
119
115
94
100
103
102
78
85
72
69
141
145
133
96
87
97
116
92
127
' 122
'118
95
140
118
93
' 128
96
115
147
131
103
39
170
119
101
120
99
94
76
81
73
70
145
149
138
94
92
93
86
92
132
97
94
' 122
'11*5
97
'125
118
92
'131
111
119
'147
137
110
40
102
96
93
101
114
102
115
96
100
72
80
62
66
125
123
128
97
94
93
89
100
147
105
96
122
116
86
133
116
98
132
89
114
'149
132
113
102
114
98
94
71
77
65
66
150
155
140
90
85
92
141
101
90
121
'116
91
128
121
99
'126
106
117
' 149
130
109 I
48
80
98
98
97
!
i
!
!
111
104
112
90
91
70
74
69
60
117
121
111
98
94
94
142
104
105
119
113
89
120
111
99
133
90
115
'151
132
r
109
51
128
99
99
99
104
43
147
94
99
100
85
131
72
95
128
91
66
76
127
97
136
97
108
124
105
110
110
122
101
103
92
111
117
104
103
117
108
131
105
103
132
119
143
101
101
107
166
201
90
132
115
131
80
82
70
133
83
172
163
199
89
121
120
132
106
109
85
131
168
204
96
125
126
136
107
110
85
133
92
166
168
204
99
117
130
135
105
108
84
128
87
161
174
214
93
121
138
138
123
127
97
136
92
172
173
213
90
123
133
137
104
121
132 !
100
106
132
92
101
135
69
125
97
73
128
115
98
105
87
101
104
92
95
98
106
107
90
94
104
92
81
127
104
90
94
105
80
129
CEMENT AND GLASS:
Cement
Glass, plate
NONFERROUS METALS 2
Copper (smelter)
Tin (deliveries) i
FUELS, MANUFACTURED:
Petroleum refining
Gasoline i
Kerosene
Fuel oil i
Lubricating oil i
Coke (by-product)
RUBBER TIRES AND TUBES
Tires, pneumatic
Inner tubes
._
TOBACCO PRODUCTS
Cigars
Cigarettes
121
125
96
134
94
167
110
101
111
84
85
71
78
73
49
100
99
102
93
90
88
90
86
137
104
84
119
105
95
97
110
173
132
'103
97
94
170
210
90
117
126
132
v Hfi
v 122
P gj
141
91
183
MINERALS
COAL:
Bituminous
Anthracite
Petroleum, crude
Iron ore shipments
Copper (mined)
Zinc
Lead
Silver
142
116
125
103
2
92
131
98
118
106
114
114
I
|
j
'
r
89
78
124
108
85
99
81
i Without seasonal adjustment.
Includes also lead and zinc; see " Minerals."
» Preliminary.
Revised.
N O T E . — T h e combined index of industrial production is computed from figures for 58 statistical series, 50 of manufactures, and 8 of minerals
most of which are shown in this table. 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. T h e sources of data and methods of construction were described in the BULLETIN for February and March, 1927.
4519—30
3
496
FEDERAL RESERVE BULLETIN
AUGUST, 1930
FACTORY EMPLOYMENT AND PAY ROLLS
INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS
[ Without seasonal adjustment. Monthly average 1923-1925=100]
Factory employment
Month
1927
98.1
January
February... 99.7
March.. ._ 100.4
99.8
April
99.1
May
99.0
June
98.0
July
99.2
August
100.6
September
99 3
October
November __ 96.9
December
95.5
Annual index
98 8
1928 | 1929
94.2
95.7
96.6
96.0
95.7
96.2
95.7
98.3
100.3
100 2
98.8
98.1
Factory pay rolls
1927
1930
97.4
92.9
99.7
92.9
101.3
92.7
101.8
92.1
101.6
90.4
101.2
88.2
100.7
102.0
103.4
102 1
98.2
.
94.8 . . .
98.6
104.8
106.3
105.0
104.3
102.5
98.6
102.2
101.9
102 5
98.5
99.4
1928
1929
95.7
101.1
102.5
100.3
100.8
100.9
98.3
102.5
104.2
107 5
103 6
104.2
100.7
108.0
110.8
111.3
111.2
109.2
104.8
109.4
110.5
110 0
102.0
98.7
1930
94.2
97.4
98.0
96.7
94.1
90.3
80
1923
97 2
102 0
100 4
1924-
101 8 107 2
1925 1926 1927 1928 1929
Seasonal adjustment provisional
1930
FACTORY EMPLOYMENT: INDEXES BY GROUPS
Month
Iron
and
steel
Food
Machinery Textiles products
Paper
and
printing
Lumber
and
products
Transportation
Chemicals
equipment
CeLeather ment,
ToRubber bacco
Nonferand
clay,
rous
prod- prodprodand
metals
Petroucts
ucts
Autoucts
glass
Group mobiles
Group leum
refining
1929—March... _.
April
May
.
June
July
August
September..
October
November. _
December...
99.3
99.7
100.7
100.8
99.8
101.0
101.0
99.4
97.0
92.2
113.8
116.7
119.1
120.8
121.5
119.4
119.5
118.7
115.0
112.1
101.1
99.3
97.3
96.3
91.5
94.2
98.4
99.8
97.1
94.3
97.6
96.2
97.3
99.2
99.8
99.7
102.4
104.2
101.6
100.5
103.1
102.5
102.8
103.2
103.6
104.1
106.0
106.1
106.7
106.9
86.6
88.2
89.2
90.0
90.5
92.2
91.8
90.1
86.7
81.6
100.5
101.7
101.5
97.6
96.4
95.5
94.8
90.2
82.9
81.3
131.1
131.4
130.0
120.6
117.8
115.0
113.1
101.3
83.7
79.6
92.7
90.6
90.3
89.4
94.6
98.1
99.5
99.3
94.4
90.0
86.8
90.5
93.1
93.8
91.6
93.8
93.6
91.9
88.9
82.3
107.9
107.7
105.3
102.9
100.5
99.8
98.6
98.5
93.6
89.9
115.5
119.0
110.3
107.9
108.9
111.2
114.5
116.1
113.8
111.8
109.2
111.9
114.4
116.4
120.0
121.9
124.0
124.6
123.7
120.9
113.3
114.3
115.3
115.0
114.2
111.5
108.3
102.7
91.2
89.2
92.0
91.3
90.3
91.4
90.5
93.0
93.7
95.0
96.1
89.2
1930—January
February
March
April..
May
June.. _ _
91.7
93.5
92.8
93.0
92.7
90.0
109.9
109.3
108.5
106.9
103.6
100.1
92.8
92.9
92.9
90.3
86.8
83.6
97.4
96.7
95.0
94.0
94.5
95.6
105.1
104.0
103.7
102.6
102.4
101.5
76.8
75.0
75.0
74.2
73.4
71.7
83.2
83.9
83.2
84.0
84.0
80.2
85.7
89.7
91.0
93.9
95.3
88.8
91.4
92.4
91.5
89.8
86.8
84.5
74.7
75.3
78.4
81.2
81.7
80.4
85.9
84.6
84.3
82.9
81.2
80.2
110.6
110.2
112.5
111.7
104.6
101.8
120.8
120.9
118.5
116.1
114.1
114.0
89.7
87.9
87.2
88.6
88.3
88.0
84.2
88.9
89.6
88.0
89.4
89.2
FACTORY PAY ROLLS: INDEXES BY GROUPS
Month
Iron
and
steel
Food
Machinery Textiles products
Paper
and
printing
Lumber
and
products
Transportation
Chemicals
equipment
CeLeather ment,
ToNonferRubber bacco
and
clay,
rous
prod- prodprodand
metals
Petroucts
Autoucts
ucts
glass
Group mobiles
Group leum
refining
1929—March
April
May
June
July
August
September..
October
November, _
December. __
108.5
110.5
111.6
109.9
103.5
109.3
108.9
107.9
100.0
93.5
126.5
129.5
131.9
131.6
128.2
127.5
127.9
129.0
121.6
119.9
108.8
103.2
99.3
97.8
90.4
97.4
103.0
104.8
96.2
93.8
101.2
100.4
103.1
105.6
105.6
105.0
108.1
108.8
105.5
105.5
114.9
113.3
114.3
113. 6
111.4
112.8
116.3
117.8
117.2
118.2
88.4
90.9
92.8
92.2
93.5
94.7
96.6
96.8
89.2
82.7
113.9
117.0
116.0
107.9
97.1
106.8
103.3
99.8
89.4
85.6
148.2
152.0
147.1
130.9
110.2
128. 0
120.3
108.0
84.3
72.9
91.4
87.9
88.1
89.8
97.8
105.0
104.3
100.0
83.9
84.1
84.8
89.3
91.8
92.5
86.1
91.2
91.3
90.6
86.4
80.2
127.6
127.0
123.1
117.0
112.6
113.2
112.1
112.5
99.6
96.1
113.6
117.8
113.1
111.2
111.2
113.0
116.0
118.2
115. 6
114.0
112.1
117.1
118.9
120.0
123.3
125.1
129.3
129.4
126.3
124.8
123.6
124.4
125.7
120.6
115.1
110.9
104.9
100.9
85.9
85.0
84.4
86.1
86.1
88.5
87.9
90.6
93.4
94.2
94.3
88.8
1930—January
February-__
March
April
May
June
90.5
98.1
97.1
97.7
95.5
90.8
113.8
115. 2
115.1
113.4
108.3
102.7
92.2
94.1
96.6
89.3
82.7
77.8
102.5
101.6
99.7
99.7
100.7
102. 3
114.9
114.9
115.0
113.5
113.3
111.9
72.8
72.6
74.6
73.8
73.2
70.9
80.9
89.8
90.6
92.0
91.1
83.8
74.0
92.7
97.3
100.8
101.7
89.2
85.4
86.2
85.2
81.6
75.6
73.8
67.3
70.2
73.4
77.1
76.9
76.1
91.5
91:7
91.0
88.3
84.4
85.0
109.3
110.0
111.6
110.9
106.6
105.3
121.1
125.0
123.1
122.1
120.5
121.7
88.9
92.1
90.0
94.5
95.4
88.3
77.0
80.0
81.0
77.1
82.1
84.4
NOTE.—These tables contain index numbers of factory employment and factory pay rolls for certain months, together with group indexes for
important industrial components. The nature and sources of basic data and the method of construction were described and the indexes for the
period January, 1919, to November, 1929, were published in the BULLETIN for November, 1929, pp. 706-716.
497
FEDERAL RESERVE BULLETIN
AUGUST, 1930
BANKING AND BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICTS
FEDERAL RESERVE BANK DISCOUNTS-BY DISTRICTS
UllUOHS OF DOLLARS
1926
MILLIONS OF DOLLARS
( Weekly report date figures )
1927
1928
1926
1927
1928
1929
1930
Latest figures are for July 30; see table on following page
1929
1930
498
FEDERAL RESERVE BULLETIN
AUGUST, 1930
FEDERAL RESERVE BANKS—RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES
[Averages of daily figures. Amounts in thousands of dollars]
Federal reserve bank
1930
July
July
July
244,623 244,110
995,481 1,000,724
224, 764 224,669
332, 828 331,297
102,630
148,344
139, 462
467,890 491,505
114,241 116,227
77,680
72, 626
118, 571 124,274
60,458
55,770
305, 570 290,921
226,529
1930
1929
June
151, 387 149,559
1,021,197 1,010,955
141, 777 141,639
205,177 200,902
67,952
67,694
64,149
63,33-5
356,113 354,982
78,992
79, 235
53,457
51,828
89,660
90, 656
61,919
60,739
187,586 183, 523
July
149,503
947,997
137,442
190,197
Reserve percentages
1929
July
June
145, 339
163,698
127,813
189, 861
65, 062
119,437
191,832
71,268
52, 726
69,930
31,936
161, 365
150,669
181,080
131, 364
187,036
66, 513
127,120
210, 289
73,213
1930
July
July
1929
June
July
152, 796
313,054
153, 745
202,244
73,301
140, 969
335,250
60,158
66,022
74,013
42, 883
174,257
82.4
84.0
83.4
84.3
73.8
76.3
85.4
75.9
69.5
73.8
60.2
87.6
81.3
84.0
82.3
85.4
76.3
77.6
87.0
76.4
71.8
77.4
64.4
85.6
74.9
68.9
76.6
77.9
6S.0
64.8
82.6
56.1
78.1
77.5
62.3
82.5
3,169,856 3,212,839 3,078,382 2,476,724 2,457,689 2,384,979 1,390,267 1,441, 303 1, 788, 692
82.0
82.4
73.8
Boston
--New York
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. ._
Kansas City...
Dallas
San Francisco .
Total
1930
1929
June
Federal reserve notes in
circulation *
Total deposits
Total cash reserves
223,105
305,870
89,299
132, 785
567,505
78,175
93,672
129, 960
66,697
296,193
63, 967
352,011
79,087
53,975
93,698
64,204
184, 550
54,699
70,877
31,961
156,482
1
Includes "Federal reserve notes of other Federal reserve banks" as follows: Latest month, $20,707,000; month ago, $20,208,000; year ago
$23,427,000.
ALL MEMBER BANKS—DEPOSITS SUBJECT TO RESERVE, RESERVES HELD, AND INDEBTEDNESS AT FEDERAL RESERVE
BANKS
[Averages of daily figures. In millions of dollarsl
Reserves held
Net demand deposits
_ Indebtedness at Fed! eral reserve banks
Time deposits
Federal reserve district
Total
May
April
April
May
May
Excess
April
Boston
I\ew York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago. _____
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
1,342
7,134
1,137
1,520
535
550
2,604
676
423
829
623
1,269
1,363
7,067
1,147
1,509
543
564
2,604
685
428
831
630
1,283
970
3,389
1,121
1,663
556
450
2,092
532
451
368
241
1,750
970
3,355
1,112
1,666
554
440
2,076
535
455
362
237
1,744
145.2
962.7
134.8
189.9
63.9
63.0
346.9
77.5
51.0
87.4
61.4
172.8
147.1
952.8
135.5
188.0
Total.. .
18,645
18, 653
13, 584
13,506
2, 356. 4
2, 349. 5
May
63.9
65.0
345.8
78.6
51.3
87.8
61.5
172.3
45.1
May
April
April
1.4
9.8
2.1
3.4
1.6
3.2
7.5
2.1
2.7
4.1
2.1
2.3
17.7
58.0
29.8
21.0
17.2
26.9
20.7
15.5
3.6
14.3
8.7
11.8
15.6
53.7
28. a
26.4
15.9
18.7
22.7
13.9
3.1
12.2
7.9
12.8
42.4
245.2
231.1
DISCOUNTS OF FEDERAL RESERVE BANKS, BY WEEKS
DISCOUNTS OF FEDERAL RESERVE BANKS, BY MONTHS
[In thousands of dollars]
[Averages of daily figures. In millions of dollars]
Federal reserve bank
Boston
New York___.
Philadelphia__
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. Kansas City..
Dallas
San Francisco.
Total...
July 2
JulyQ
1930
July 16 July 23 July 30
Federal reserve bank
11,416
31,445
23, 584
24,106
18,305
30,146
18,475
16,406
4,118
10,085
11,007
7,937
8,895
28, 935
20, 972
17,434
19,446
27,628
17, 321
17, 303
4,251
9,755
12, 224
8,406
10,000
33,430
20,590
19,036
19,419
28,343
16, 740
13,135
4,335
9,441
12,815
9,817
260,413 236, 315 207,080
190, 570
197,10]
17, 590
48, 621
30,122
31,922
22, 649
29,552
19,840
16,019
4,629
11, 577
10,073
17,819
15,447
47, 254
25,638
28, 965
19,589
28,940
18, 756
16,556
4,051
11,178
10, 549
8,392
Boston _
New York....
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco.
TotaL. _
July
1929
June
12.6
44.0
24.4
24.9
19.8
28.9
19.0
16*3
4.2
10.4
11.5
10.0
17.3
57.1
28.1
23.6
19.7
30.4
18.1
18.1
3.8
14.2
10.2
10.6
226.0 I
251. 2
July
78.4
408.6
77. a
84.0
57.5
69.0
122.1
55.817.4
35. a
30.2
60.1
1,095. 6
AUGUST,
499
FEDERAL RESERVE BULLETIN
1930
PRINCIPAL RESOURCES AND LIABILITIES OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES, BY WEEKS
[In millions of dollars]
Federal Reserve District
Loans and investments:
July 2
July9
July 16
July 23
July 30
Loans:
July 2
July9
July 16
July 23
July 30
On securitiesJuly 2
July 9
July 16
July 23
July 30
All o t h e r July 2
July 9
July 16
July 23
July 30
Investments:
July 2
July9
July 16
July 23
July 30
U. S. Govt. securities—•
July 2
July 9
July 16
July 23
July 30
....
All other—
July2
July 9
July 16
July 23
July 30
Reserve with F. R. banks:
July 2
July9
July 16
July 23
July 30
Cash in vault:
July2
July9
July 16
_...
July 23
July 30
Net demand deposits:
July 2
July 9
July 16
July 23
July 30
Time deposits:
July 2
July 9
July 16
•_.
July 23
July 30
Government deposits:
July 2
July 9
July 16
July 23
July 30
Due from banks:
July 2
July 9
July 16
July23_.
July 30
Due to banks:
July 2
July9
July 16
July 23
July 30
Borrowings from F. R. banks:
July 2
July 9_.._
July 1 6 . . .
July 23
July 30
City
San New
St. Min- Kansas Dallas Fran- York
Louis neapolis jCity_
cisco
Total
Boston
Rich- AtNew Philadel- CleveYork phia
land mond lanta
23,080
22, 987
23,106
23, 096
23, 236
1,529
1,530
1,534
1,523
1,532
9,417
9,266
9,297
9,342
9,467
1,247
1,257
1,263
1,256
1,255
2,259
2,263
2,288
2,284
2,288
653
649
644
642
648
597
593
593
590
591
3,328
3,362
3,400
3,402
3,403
659
671
669
667
356
354
353
350
352
641
650
661
654
652
443
441
436
438
436
1,952
1,949
1,964
1,948
1,942
8,123
7,979
8,014
8,070
8,202
1,964
2,004
2,034
2,044
2,045
16,960
16, 869
16, 906
16, 852
16, 945
1,160
1,162
1,149
1,139
1,148
6,837
6,865
6,951
921
932
938
931
925
1,534
1,529
1,524
1,510
1,510
473
472
468
464
466
462
459
458.
455
456
2,597
2,640
2,655
2,664
2,658
506
516
515
512
517
231
229
229
225
228
420
431
440
433
430
330
329
328
328
328
1,337
1,333
1,336
1,332
1,329
6,058
5,916
5, 944
5,952
6,050
1,532
1,579
1,587
1,609
1,605
8,442
8,367
8,424
8,398
8,416
525
531
524
512
510
4,116
3,962
3,977
3,986
4,032
479
489
506
508
504
745
744
754
738
734
184
185
186
185
181
148
147
148
146
149
1,280
1,322
1,316
1,333
1,324
237
247
247
241
243
80
79
81
119
130
140
132
127
99
99
100
430
432
445
440
433
3,652
3,498
3,518
3,537
3,586
905
948
937
964
958
8,517
8,502
8,482
8,454
8,529
635 2,870
631 2,875
625 2,887
628 2,874
638 2,918
442
443
432
422
421
789
785
771
772
777
289
288
281
278
284
314
312
310
308
307
1,317
1,318
1,339
1,331
1,334
270
301
301
300
301
303
232
230
230
230
229
892
896
2,406
2,418
2,426
2,415
2,464
630
650
645
647
6,120
6,118
6,200
6,243
6,291
369
368
385
384
385
326
325
325,
325
330
725
734
764
774
778
180
177
176
178
182
135
134
135
135
135
731
722
745
738
744
270
274
152
155
154
155
152
151
150
148
147
148
125
126
124
125
124
220
220
220
222
222
113
112
110
110
109
615
616
627
616
613
2,065
2,063
2,070
2,119
2,152
433
425
447
435
440
2,851
2,861
2,915
2,930
2,932
157 1,210
156 1,207
170 1,213
168 1,229
166 1,242
85
83
83
79
79
340
348
364
374
373
83
80
80
81
82
62
63
62
62
61
318
327
340
344
346
35
35
33
32
30
72
72
71
72
70
94
94
66
65
63
64
62
331
333
341
333
328
1,095
1,088
1,096
1,110
1,122
170
180
193
194
195
3,269
3,257
3, 285
3,313
3,359
212
212
215
216
219
1,221
1,222
1,219
1,253
1,275
241
242
242
246
251
385
387
400
400
405
97
97
97
97
100
72
72
73
72
74
413
394
405
393
117
120
121
123
123
52
54
54
54
54
126
126
127
129
129
47
47
46
47
47
284
283
286
282
285
975
974
1,008
1,029
263
246
254
241
245
1,792
1,790
1,840
1,824
1,818
105
98
100
98
96
864
829
83
82
90
81
82
141
146
145
142
144
40
42
42
40
40
39
41
40
39
38
260
288
274
266
44
43
45
45
45
23
24
26
26
23
56
57
58
60
60
33
33
34
34
32
104
107
107
105
102
796
766
812
825
826
175
198
187
177
185
230
230
212
211
215
15
16
15
15
14
70
62
57
57
60
14
13
12
12
12
28
30
27
28
28
11
11
10
11
11
10
9
9
9
9
35
40
36
33
33
10
11
10
11
11
7
7
7
5
6
5
5
5
5
5
19
19
17
17
18
56
48
45
45
47
14
16
13
13
13
13, 740
13, 587
13, 784
13, 692
13, 798
914
896
918
900
6,298
6, 095
6,176
6,224
6,310
1,136
1,141
1,170
747 1,147
1,161
343
344
352
347
348
316
315
312
311
309
1,913
1,955
1,942
1,924
1,942
369
380
376
371
373
217
218
221
217
217
480
483
499
488
495
278
276
280
274
268
735
739
771
742
736
5,659
5,480
5,556
5,610
5,708
1,261
1,301
1,271
1, 276
1,303
510 1,988
513 1,986
512 2,007
513 1,999
515 1,992
317
318
319
322
328
985
988
988
998
1,001
249
251
245
248
247
244
242
243
242
244
1,304
1,310
1,373
1,354
1,317
229
234
235
244
238
128
129
129
129
129
192
192
193
193
186
151
151
152
152
151
1,016
1,011
1,005
1,007
1,005
1,438
1,435
1,451
1,444
1,437
633
639
704
685
651
2
2
1
15
12
11
10
9
64
49
45
40
36
5
5
66
70
73
176
173
187
188
192
214
216
227
236
222
142
110
96
90
93
188
163
208
198
152
133
129
126
125
131
215
224
237
239
238
273
291
298
285
276
1,131
1,103
1,061
1,132
1,072
378
374
354
362
338
2
2
1
1
10
7,315
7,326
7, 399
7,400
7,352
2,431
2,429
2,433
2,482
2,517
Chicago
193
147
134
120
109
15
12
11
10
9
70
53
48
43
39
17
13
12
11
9
18
14
12
11
10
15
12
11
9
9
15
12
10
9
9
10
8
7
1,583
1,484
1,604
1,653
1,565
58
54
66
84
71
208
170
153
159
160
107
79
77
111
139
124
136
155
149
82
88
79
83
76
79
78
76
297
276
325
313
264
3,401
3,392
3,394
3,467
3,365
145
141
141
135
126
1,213
1,184
1,150
1,219
1,162
199
202
213
212
216
303
313
345
359
358
111
111
107
112
110
98
100
102
99
96
532
523
504
512
4
4
3
1
1
18
20
8
5
10
5
4
2
1
1
16
13
9
3
5
8
5
3
4
3
11
10
10
"
7
no
1
1
3
3
3
4
1
77
Chicago
1
1
2
2
2
500
FEDERAL RESERVE BULLETIN
AUGUST, 1930
BUILDING CONTRACTS AWARDED
BUILDING PERMITS ISSUED
[Value of contracts in thousands of dollars]
[Value of permits in thousands of dollars]
1929
1930
Federal reserve district
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
Total (11 districts)
June
May
June
34,127
105,745
61, 659
49,240
37,666
26, 673
100,884
73,077
16,647
63, 727
31,128
34,247
122, 954
23,254
51,214
29, 943
37, 923
79,187
32, 876
12, 405
17, 216
16,196
33,050
110,180
38, 327
53,011
34,431
46,110
134,832
41,848
11,835
19,654
22,614
Boston
New York....
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago.
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco.
600,573
457,416
545,891
Total...
1930
Numcities
Federal reserve district
14
22
14
12
15
15
19
5
9
14
9
20
168
1929
June
May
6,350
42,172
11,483
13,218
6,187
2,848
18, 212
4,367
6,166
6, 269
4,135
16, 431
5,677
48, 712
7,473
13,226
8,492
4,158
25, 684
5,917
3,832
8,268
5,127
19,866
7,060
64,830
15,966
18,895
9,030
6,407
36,392
5,827
4,705
7,503
5,202
22,690
137,837 | 156,433
204, 507
June
Figures for building contracts awarded are for 37 States east of the
Rocky Mountains, as reported by the F. W. Dodge Corporation.
INDEX OF DEPARTMENT STORE STOCKS
INDEX OF DEPARTMENT STORE SALES
[Monthly average 1923-1925 = 100]
Without seasonal
adjustment
[Monthly average 1923-1925=100]
Without seasonal
adjustment
Number of
stores
Federal reserve
district
1930
June
Boston
New York
Philadelphia
Cleveland
Richmond _
Atlanta ..
Chicago
St. Louis
__ .
Minneapolis
Kansas City 1
Dallas.
.
San Francisco
Total
_ .
1929
May
1930
June
June
May
June
89
109
84
89
108
119
91
104
108
116
95
103
97
115
87
92
104
117
89
99
28
100
112
107
121
99
107
107
101
112
96
90
94
106
114
93
117
96
82
87
97
103
104
111
111
95
108
95
86
108
106
83
98
84
80
82
89
97
490
95
r
92
102
92
83
r
i Monthly average 1925=100.
97
109
98
109
102
122
105
85
106
116
100
104
112
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta .
Chicago
St. Louis.
Minneapolis.1
Kansas C i t y
Dallas
San Francisco
Total
]STumber
June
Boston
.
New York
Philadelphia
....
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total .
1
210
407
101
163
135
145
290
104
60
130
62
219
254
475
113
189
124
58
362
133
51
107
51
262
2,026
2,179
Figures reported by R. G. Dun Co.
June
June
184 3,980
372 21,337
62 2,962
159 3,828
138 2,286
100 2,744
253 8,105
98 1,779
47 1,826
115 1,574
27 8,455
212 4,256
1,767
63,131
May
9,078
14,195
1,498
3,023
3,068
2,338
8,389
4 959
514
2,263
982
5,234
55, 541
June
June
1929
May
June
34
42
45
49
28
29
76
19
14
21
21
30
88
104
78
88
90
89
103
86
65
104
72
99
94
109
80
92
95
91
111
91
69
110
79
105
93
101
83
92
94
94
105
88
70
112
72
99
92
108
82
88
94
93
110
90
67
93
109
80
88
94
91
110
89
67
97
105
87
93
97
99
112
91
72
76
102
77
104
76
102
408
93
98
95
96
96
98
All banks
1930
1930
1
IN JUNE, 1930
[Amounts in thousands of dollars I
Federal reserve
district
Liabilities
1929
May
May
BANK SUSPENSIONS
Revised.
[Amounts in thousands of dollars]
1930
1929
i Monthly average 1925=100.
COMMERCIAL FAILURES 1
Federal reserve district
1930
June
1929
36
59
57
55
41
94
19
18
27
22
34
Number of
stores
Federal reserve
district
With seasonal
adjustment
With seasonal
adjustment
1929
June
Num- De- 3
ber posits
Boston
New York
Philadelphia
Cleveland
Richmond...
Atlanta
Chicago
1
_
Member
banks 2
Num- De- Num- De- 3
ber posits3 ; ber posits
11,400
1 1,550
5 14,175
5 3,002
16 27,167
13 7,342
7 2,439
8
912
8
1,110
2
181
1 1,751
Nonmember
banks
1
3
4,188
2,535
8,181
1,341
1
11,400
4
2
14
10
7
7
8
2
1
1,550
9,987
467
18,986
6,001
2,439
762
1,110
181
1,751
2,888
3
7,469 St. Louis
1,248 Minneapolis
1
150
3,480 Kansas City
2,535 Dallas
1,329 San Francisco
6,436
1 895
Total
4 67 71,029
10 16,395
57
54,634
312
879
710
1 Banks closed to the public on account of financial difficulties by
2,192 order
of supervisory authorities or directors of the bank.
2
31,375
Includes 9 national banks with deposits of $15,930,000 and 1 State
member
bank with deposits of $465,000.
3
Subject to revision.
< Includes 1 nonmember bank for which deposits figures are not
available.
501
FEDERAL RESERVE BULLETIN
AUGUST, 1930
JULY CROP REPORT, BY FEDERAL RESERVE DISTRICTS
[Based on estimates, by States, for July 1 as made by the Department of Agriculturel
[In thousands of units]
Corn
Total wheat
Winter wheat
Spring wheat
Federal reserve district
Production, 1929
Estimate,
July 1,1930
Production, 1929
Estimate,
July 1,1930
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City_.
Dallas
San Francisco
Bushels
8,818
24,625
42,371
170,082
148,109
174,605
880, 741
312,957
294, 781
445,415
101,149
10, 654
Bushels
10,191
31, 730
48,527
177, 381
153,522
156,422
956,156
358, 734
314,498
494, 304
90,553
10,424
Bushels
110
5,373
18, 620
38,539
26,147
4,144
62,550
44,676
184,665
267,493
39, 923
113,550
Bushels
105
5,716
18,919
31, 074
26, 991
3,396
60,308
45,651
201,138
276, 932
28, 565
108,470
Total...
2, 614,307
2,802,442
805, 790
807,265
Tame hay
Oats
ProducProducEstimate,
tion, 1929 July 1,1930 tion, 1929
Bushels
Bushels
5,237
18,521
38,442
26,147
4,144
58,140
44,259
12,315
255,306
39, 580
75, 693
5, 572
18,823
30, 981
26, 991
3,396
55,124
45,106
10,614
266,240
28,351
66, 521
577, 784
557, 719
Tobacco
Estimate,
July 1,1930
Bushels
110
136
99
97
Bushels
105
144
96
93
4,410
417
172, 350
12,187
343
37, 857
5.184
545
190, 524
10, 692
214
41, 949
228,006
249, 546
White potatoes
Federal reserve district
Production, 1929
1
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
I
San Francisco
Total
_
_
j
!
;
i
!
Bushels
8,722
25,937
18, 771
64,498
26,875
15,814
501,169
51,166
283,837
152,447
49,434
34,904
1,233,574
Estimate,
July 1,1930
Production, 1929
Estimate,
July 1,1930
Production, 1929
Estimate,
July 1,1930
Production, 1929
Estimate,
July 1, 1930
Bushels
9,411
40,721
22,362
70,925
26,021
14,968
525, 908
57,452
306,639
164,817
55,293
34, 890
Tons
4,981
6,958
3,061
7,168
4,190
2,942
23,201
9,114
12,190
12, 348
1,284
14,278
Tons
4,745
6,391
2, 621
4,415
2,807
2,239
17,285
6,267
10,823
12,342
1,262
14, 234
Pounds
38,406
1,078
47, 601
146,439
740, 516
185,390
46,360
307, 662
4,508
2,714
Pounds
47, C76
1,398
55,461
152,230
764,390
193,122
51,181
324,102
4,800
3,310
Bushels
58, 593
28,010
23,623
19,695
37,845
11,964
44,914
13,313
47, 707
31, 933
3,122
39,077
Bushels
55,235
34,654
26,392
18,448
35,885
11,908
58,909
14, 767
59, 582
34,130
4,517
43,992
1,329,407
101,715
85,431
1, 520, 674
1, 597, 670
359, 796
398,419
502
FEDERAL RESERVE BULLETIN
AUGUST, 1930
FOREIGN BANKING AND BUSINESS CONDITIONS
LEGAL RESERVE REQUIREMENTS OF FOREIGN CENTRAL BANKS
Reserve requirements
Country
Liabilities against which reserves
must be held
Gold
Belgium..
Bolivia...
Notes
Notes
Notes plus other demand liabilities,
minus amount represented by
Federal loan debt.
Notes and other demand liabilities..
Notes and deposits
Bulgaria..
Notes and other demand liabilities..
Chile
Notes and deposits...
Albania. _
Australia.
Austria. _.
Notes and deposits.
Colombia
Czechoslovakia. Notes and other demand liabilities.
Danzig
Notes.
Denmark.
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
Guatemala
Hungary.
Italy..
Japan_
Java
Latvia
Lithuania
Netherlands..
Norway
Peru
Poland...
Rumania..
Russia
Notes and other demand liabilities
in excess of 1,200,000,000 markka.
Notes and other demand liabilities..
Notes
Notes and other demand liabilities..
Notes
Deposits due in 30 days or less
Special deposits
Notes plus other demand liabilities,
minus amount represented by
State debt.
Notes and other demand liabilities..
Notes in excess of fiduciary issue of
120,000,000 yen.
Notes and other demand liabilities..
Notes
Notes
Notes and other demand liabilities..
Notes in excess of fiduciary issue of
250,000,000 kroner.
Notes and other demand liabilities..
Notes and other demand liabilities.
Notes and other demand liabilities.
Notes
South Africa.... Notes, deposits, and bills payable.
Spain..
Sweden
Switzerland-
Notes up to and including 4,000,000,000 pesetas.
Notes above 4,000,000,000 pesetas
Notes in excess of fiduciary issue of
250,000,000 kronor.
Notes
Qualifying provisions, etc.
Gold and
foreign
exchange
Per cent \ Per cent
H Foreign exchange may not exceed two-thirds.
25
i 2 24
Reserve ratio to be increased at 5-year intervals ending Jan. 1, 1938,
the successive ratios being 24 per cent, 28 per cent, and 33^$ per cent.
30
!
40
1250
1 2 33H
2 50
2 36
2 60
2 25
2 30
2 50
2 50
50
100
Foreign exchange net. Government consent necessary for suspension
of reserve requirement.
Foreign exchange may consist only of undisputed balances with
foreign correspondents.
2 40
100
35
2 30
12
71/2
30
Silver in reserve may not exceed one-fifth. Foreign exchange may
consist only of deposits payable in gold on demand or on 3 days'
notice in New York or London.
Foreign exchange net. Silver ineligible after March 10, 1931. Government consent necessary for suspension of reserve requirement.
Foreign exchange may consist only of demand deposits payable in
New York or London.
Foreign exchange may consist only of demand deposits.
Reserve ratio of gold and foreign exchange to be increased to 30 per
cent by the end of 1930 and 35 per cent by the end of 1935. Gold to
constitute at least one-half the reserve.
100 per cent reserve must be held against circulation in excess of 100
gulden per capita. Excess also subject to tax. Foreign exchange
may consist only of demand claims on the Bank of England.
Foreign exchange may consist only of the bank's non-interest-bearing
demand balances with Bank of Norway and Swedish Riksbank,
less indebtedness to these 2 banks, and non-interest-bearing demand
balance on giro account with German Reichsbank. Government
consent necessary for suspension of reserve requirement.
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 Oct. 30, 1916, the bank was authorized to substitute British
Treasury bills for gold.
Fiduciary issue may be increased by authorization of Treasury.
Maturity of foreign exchange in reserve must not exceed 14 days.
Foreign exchange net. Government consent necessary for suspension
of reserve requirement.
•
Silver in reserve may not exceed one-thirtieth of total reserve requirement.
2 40
2 40
140
125
1 100
12 24
Reserve ratio to be increased at 5-year intervals ending June 24, 1939,
the successive ratios being 24 per cent, 28 per cent, and 3 3 ^ per cent.
240
Silver in reserve may not exceed one-fourth. Fiduciary issue may
be increased, subject to tax, by authorization of Minister of Finance.
1 100
Additional requirements for notes in excess of 100,000,000 lats.
50
i4o7 ilZZIIIIZII
100 j
I
2 30
25
j
2 40 I
Fiduciary issue may be increased, subject to tax, by authority of
i King and Storting.
50 I Foreign exchange may consist only of New York and London funds.
1240
Silver in reserve may not exceed one-twentieth of gold held.
35
125
38.8
1 45
48.5
1 60
50
j
Reserve may include platinum. Foreign exchange limited to foreign currency in vault.
! Silver in reserve may not exceed 8 per cent of deposits and bills payable. Government consent necessary for suspension of reserve
requirement.
Note circulation limited to 6,000,000,000 pesetas and may exceed
5,000,000,000 only with consent of the Government. Consent of
Government required for any reduction of gold holdings and can
not be given unless these holdings are in excess of requirement
necessary for a circulation of 6,000,000,000 pesetas. Silver in reserve
may not exceed 5 per cent of notes up to and including 4,000,000,000
pesetas and 10 per cent of notes in excess.
Gold reserve may not fall below 150,000,000 kronor. King and
Riksdag may extend the fiduciary issue by 125,000,000 kronor.
40
1 May legally include silver.
The bank may, subject to the payment of a tax, permit the reserve ratio to fall below the legal minimum.
300,000,000 markka.
2
3
FEDERAL RESERVE BULLETIN
AUGUST, 1930
503
ANNUAL REPORT OF THE BANK OF NETHERLANDS
The annual report of the president of the
Netherlands Bank, covering the year ended
March 31, 1930, was delivered to the general
meeting of shareholders on May 27, 1930.
Sections of the report dealing with economic
and financial conditions in the Netherlands,
and with operationsl of the Netherlands Bank,
are given herewith:
Decline in the price of silver.—An important
result of the decline in the price of silver is the
reduced purchasing power of those oriental
countries whose currency systems are based on
silver. This reduced purchasing power prevents selling by such industrial States as
normally market part of their products in the
Far East, so that they also are adversely
affected by the decline in silver prices.
For the Netherlands and the Dutch East
Indies the price decline is a matter of concern
in connection with a contemplated substitution of nickel for silver token coin. On the
one hand, whatever measure of security the
value of the silver content of a coin affords the
holder is steadily diminishing with the decline
in the price of silver. On the other hand, the
loss which the State will suffer in the depreciated value of the silver content of the old
coins, upon the eventual replacement of silver
coins by nickel, will be greater in proportion
as the price of silver continues to decline.
The Netherlands money market.—Money
rates in the Netherlands showed considerable fluctuations during the past fiscal year.
This was true especially of rates in the open
market. The average of the monthly rates for
loans on security during the period AprilOctober, 1929, was 5.32 per cent, the highest
monthly average during the period being 5.87
per cent in May, and the lowest 4.70 per cent
in August. For private discounts the average
rate for the period mentioned was 5.24 per
cent, the highest monthly average being 5.40
per cent in September, and the lowest 7being
5.02 per cent in August. For "call loans ' the
corresponding figures were 4.89 per cent for
the period, 5.47 per cent for Ma}^, and 4.29 per
cent for August. After September all quotations declined markedly. From October to the
middle of December the average rate for loans
on securities was 4.19 per cent, for private discounts 4.25 per cent, and for call loans 3.69 per
1
The report, available in Dutch, contains in addition a discussion of
the Young plan, the status of various European countries with relation
to the gold standard, the international money market, the silver market, etc., and tables showing in detail the operations of the Netherlands
Bank. For earlier reports, see FEDERAL RESERVE BULLETIN, September, 1929, September, 1928, August, 1927, August, 1926, etc.
4519—30
4
cent. Following the turn of the year a further
decline took place, and during the fourth
quarter of the fiscal year the corresponding
rates were 2.79, 2.57, and 1.97 per cent. For
the fiscal year as a whole the rate for loans on
securities averaged 4.4 per cent, the same as
the 1928-29 average; for private discounts
4.3 per cent, also the same as in the preceding
year; for call money, 3.9 per cent as compared
with 3.8 per cent in 1928-29.
During the first half of the period under
review there was only a slight difference in the
three rates. In the second half of the fiscal
year the Amsterdam rate was almost always
considerably below the London rate and generally lower than the New York rate. This
circumstance was undoubtedly an advantage
to the Amsterdam acceptance business, which
continued to develop favorably.
In spite of the tension which prevailed in
almost all money markets during the first half
of the year, the Netherlands Bank did not find
it necessary during this period to raise its rate.
After the advance of March 25, 1929, in the
discount rate—mention of which was made in
the previous report, and which made its
salutary influence felt at once—the discount
rate of our institution remained unchanged
until November 1, 1929, when we lowered the
rate by one-half of 1 per cent as a result of the
relaxation which had taken place. This measure was followed on November 16 by a second
reduction of one-half of 1 per cent, when, however, the rate on advances in current account
was reduced by a full per cent. When funds
became more plentiful after the turn of the
year, we proceeded on January 16, 1930, to
still another reduction of one-half of 1 per cent
in our rates, on which occasion the rate on
advances in current account was again reduced
by a full per cent. In this way the interest
rate on advances was made identical with that
on loans. These measures were intended ultimately to prepare the way for a form of
advances in current account which should be
more flexible and better adapted to the needs
of business. On March 7, 1930, all rates were
again reduced by one-half of 1 per cent, and
finally on March 25, 1930, the discount rate on
bills and acceptances was lowered once more
by one-half of 1 per cent. The rates for loans
and advances were left unchanged in this latest
reduction, in order to afford no inducement to
undesirable operations in interest arbitrage.
Capital issues.—The volume of new capital
issues during the past fiscal year was consider-
504
FEDERAL RESERVE BULLETIN
ably less than in the year 1928-29. As will be
seen from the table [omitted], domestic capital
issues in the amount of 263,000,000 florins
($105,726,000) and foreign capital issues in the
amount of 134,000,000 florins ($53,868,000)
were floated in the market during the period
under review; Treasury bills are not included.
For the year 1928-29 the corresponding figures
were 410,000,000 florins ($164,820,000) and
310,000,000 florins ($124,620,000). In the
first half of the period speculative activity in
the stock markets accompanied by rising stock
quotations and high rates of interest checked
the issue of fixed interest-bearing securities.
After the disappearance of these obstructing
factors, bond issues increased, but the depression which then set in throughout the business
world retarded the strong movement toward
the issue of shares. In the last quarter of the
fiscal year 1929-30 shares were issued in a total
amount of only 11,000,000 florins ($4,422,000),
as compared with 110,000,000 florins ($44,220,000) in the last quarter of 1928-29.
Foreign exchange.—Exchange rates during
the past fiscal year moved for the most part in
favor of the Netherlands, so that on balance we
were able to strengthen considerably our
portfolio of foreign bills, which had declined
sharply in February and March, 1929, as a
result of large deliveries of dollars and sterling.
On March 31, 1930, this portfolio had risen to
205,000,000 florins ($82,410,000), against 35,000,000 florins ($14,070,000) on March 31,
1929. Especially during the first months of
the fiscal year we purchased considerable
amounts of sterling and dollars. In August,
1929, the dollar quotation temporarily reached
the gold export point; in connection with this
movement we gave out dollars freely in considerable amounts on a number of days for the
protection of our stock of gold. In the latter
part of July the French franc also reached the
gold export point, so that we were called upon
to make gold available for export to France.
For the satisfaction of these demands we gave
out to a number of bankers, on July 30, August
6 and 7, gold in an aggregate amount of 6,200,000
florins ($2,422,400), after which the rate of the
franc very soon declined. This experience,
however, prompted us to build up a portfolio
of French bills, so that when in January the
franc again rose to the gold export point, we
were in a position to sell francs. Our relatively
small stock of francs, however, proved insufficient to force down franc exchange far
enough, so that again we found ourselves compelled to deliver gold for export to France in a
AUGUST, 1930
total amount of 10,400,000 florins ($4,180,800). Otherwise, the movement of the exchanges gave us no occasion to take special
measures.
Reserves.—Our gold stock showed a slight
net increase this year. At the end of April/
1929, when the German reichsmark was very
weak, and the Keichsbank considered it desirable to send gold to the Netherlands also in
support of mark exchange, we bought gold from
Germany at her request for about 10,000,000
florins ($4,020,000). Also in the course of the
year we bought from the Bank of Java, at
its suggestion, five successive consignments of
gold, to an aggregate amount of almost 23,000,000 florins ($9,246,000). On the other
hand, there were the sales of gold already mentioned which were destined for France, amounting altogether to about 16,600,000 florins
($6,673,200); and again, in March, 1930, we
sold gold to the value of 5,000,000 florins
($2,010,000) to a foreign bank of issue at its
request; this gold has remained earmarked
on deposit here in the bank.
We have proceeded with the issue of gold
10-florin coins in the same way as was explained in the report for 1927-28. A total
amount of 661,625 florins ($265,973) in gold
coin was put into circulation during the past
fiscal year, while an amount of 329,450 florins
($132,439) came back to the vaults of the
bank. In addition, 1,400,000 florins ($562,800)
were sent to Curagao, and an amount of 100,000
florins ($40,200) was earmarked for the Bank
of Surinam.
Clearing operations.—Clearing and current
account operations, and clearing turnover
showed an increase of 5.9 per cent, 5.9 per
cent, and 6.4 per cent, respectively, during the
first half year as compared with the corresponding period of the year before. The influence of the lessened business activity in
the country, which has been mentioned, was
reflected in the figures for the second half year
by a decline in all these lines of activity,
of 7.1 per cent, 5.6 per cent, and 12.2 per cent,
respectively, as compared with the correspoading period of the preceding year.
Reserve ratios.—During the year 1929-30
the demand obligations of the bank were
covered on average to the^extentfof J55.18
per cent by gold coin and bullion, and to the
extent of 79.79 per cent by the aggregate
reserve of gold coin, gold bullion, and foreign
exchange. For the years 1918-19 to 1928-29
inclusive, these average percentages were as
follows:
Fiscal year
1918-19
1919-20 .
1920-21
1921-22
1922-23
1923-24
1924-25
1925-26
1926-27 1927-28 .
1928-29
505
FEDERAL RESERVE BULLETIN
AUGUST, 1930
.
.
Percentage
Percentage of cover in
of cover in coin, bulcoin and
lion, and
bullion
foreign exchanges
67.37
58.42
56.97
57.71
59.07
58.26
52.82
50.57
51.57
50.77
54.04
76.95
67.09
63.38
63.19
69.82
66.71
69.02
76.33
77.24
71.91
80.19
The cause of the decline in the percentage of
gold coin and bullion reserve in the years
1923-24 to 1925-26 may be found in the fact
that during those years we sent a considerable
amount of gold abroad, in order to contribute
by this means to a more just distribution of the
available gold stocks of the world.
There was no occasion this year for either
adding to or drawing from the special reserve.
The special reserve, therefore, with the approval
of his Excellency the Minister of Finance,
remains unchanged on the balance sheet in the
amount of 8,000,000 florins ($3,216,000) for
the purpose for which it was created some years
ago.
BALANCE SHEET OF THE NETHERLANDS BANK AS OF
MARCH 31, 1930
Florins Dollars i
(in thou- (in thousands)
sands)
RESOURCES
Gold and silver coin
Gold bullion
Cash items
Correspondents abroad
Foreign bills
Domestic bills
Loans
,
Advances in current account
Investments in shares listed by the Amsterdam
Brokers' Association
Other investments
Net balance with banking correspondents
Interest accrued on loans
Interest accrued on advances in current account—.
Interest accrued on investments
_.
Commission account
Bank premises and furniture
Total resources
92,815
367,056
444
24, 037
205, 358
51,485
64, 990
71, 438
37,312
147, 557
178
9,663
82, 554
20,697
26,126
28, 718
18,137
7,369
104
400
180
164
30
5,000
7,291
2,962
42
161
72
66
12
2,010
909,007
365,421
836, 567
26,123
1,615
20,000
7,200
8,000
6,400
67
450
1
720
336, 300
10, 501
649
8,040
2,894
3,216
2,573
27
181
LIABILITIES
Notes in circulation
.
Current accounts
Other demand liabilities
Capital
Reserve fund
Special reserve (art. 9 of the bank act, 1919)
Pension fund
Unearned discount on domestic bills
Unearned discount on foreign bills
Expenses
Dividends payable
Balance of profits at the disposal of the general
meeting
_
Total liabilities
1
.
Conversion at par: 1 florin=$0,402.
289
1,864
749
909, 007
365,421
506
FEDEKAL RESERVE BULLETIN
AUGUST, 1930
ANNUAL REPORT OF THE NATIONAL BANK OF CZECHOSLOVAKIA
The annual report of the National Bank of
Czechoslovakia for 1929 was submitted to the
general meeting of shareholders on February
27, 1930. A selection from the address of the
governor, Dr. V. Pospisil, dealing with the
reform of the currency, and selections from the
report of the board of directors, dealing with the
currency, the money market, and prices, are
given herewith: 1
Currency
reorganization.—Czechoslovakia
took her place last year among the countries
which have completed the reorganization of
their currencies. Various measures governing
foreign exchange had been passed from time to
time according to a definite plan, until in 1925
conditions justified the drafting of a bank law.
This law provided for the establishment of a
joint-stock bank of issue which should be
legally obligated to maintain the stability of
the crown at the level established de facto
during the preceding year. It also provided
that later on a currency law fixing a definitive
monetary unit should be adopted.
Passage of the currency law was accelerated
on account of the fact that on various occasions,
and especially during the later months of the
past year, disturbing rumors were current that
the establishment of a gold currency would
bring about certain property changes and necessitate sacrifices on the part of the people.
Since the Government and the National Bank
of Czechoslovakia w^ere agreed as to the necessity of establishing a gold currency system,
they took the matter under consideration at
once.
Last year's report explained at some length
that all essential preliminaries for final action
had been concluded. It recommended that the
bank of issue should be put in a position to
influence the money market, and showed the
necessity of redeeming the State notes debt
more rapidly, as well as the means by which
this might be done.
Negotiations concerning the currency law
and the agreement for the speedier redemption
of the State notes debt were carried on at the
same time, and were concluded by the end of
last May. Political developments, however,
delayed final action, which, in the case of the
currency, required the passage of a currency
law; and, in the case of the State notes debt,
i Taken with some textual revision from the English version published
by the bank. In addition the report contains discussion of the Young
plan, the general international situation, Government finance, agriculture, industry, foreign trade, etc., and gives tables showing the operations
of the bank in detail. For earlier reports, see FEDERAL RESERVE BULLETIN, August, 1929, July, 1928, and June, 1927.
the ratification by Parliament of the agreement
between the Government and the bank.
Inasmuch as all preparations had been made,
both measures could have been acted upon and
finally settled before the publication of the
Young plan, which had, indeed, no influence
on the measures as regards the merits of the
case. The provision of the Young plan, however, that only such countries as are on the
gold or gold exchange standard may participate
in the Bank for International Settlements,
made it desirable for Czechoslovakia to expedite the passage of the currency law.
Following the final abolition (carried out by
the decree of December 28, 1928, No. 209 of
the Collection of Laws and Ordinances) of such
restrictions as still remained in force with respect to dealings in foreign exchange—which
for all practical purposes, had already been free
for some time—the method of fixing the rate
of the crown was changed. Formerly, the National Bank had maintained an almost unchanging rate of crowns in relation to dollars.
After the restrictions were removed the rate of
the crown became generally dependent on
supply and demand, yet its fluctuations in the
New York exchange market were usually within
more narrow limits than those of most other
European exchanges.
The currency law.—After the restrictions on
foreign exchange had been abolished the currency law was enacted by the Standing Committee of the National Assembly on November 7, 1929, and published as No. 166 of the
Collection of Laws and Ordinances on November 27, 1929. The relation of the Czechoslovak
crown to gold was fixed at 1 crown to 44.58
milligrams of fine gold. The act of 1925 had
stabilized the currency by obligating the bank
"to maintain the relation of the Czechoslovak
crown to the undepreciated foreign gold 7 currencies at the level of the past two years/ In
terms of United States currency, this meant
between 2.90 and 3.03 cents, which represented a theoretically possible fluctuation of
4.48275 per cent.
By the enactment of the currency law
Czechoslovakia established a gold-exchange
standard. The new reserve requirements
obligate the bank to maintain the following
metallic cover: Until the end of 1929 at least
25 per cent, by the end of 1930 at least 30
per cent, by the end of 1935 and thereafter at
least 35 per cent of the total note circulation
and other demand liabilities. At least onehalf the metallic cover must consist of gold
AUGUST, 1930
FEDERAL RESERVE BULLETIN
bullion and coin, while the balance may consist of foreign bank notes convertible into gold,
foreign full legal tender coins, and bills of exchange.
Section 3 of the currency law requires the
bank to purchase gold at a fixed price, but
only in a minimum amount of 12 kilograms
of fine gold; and to redeem its notes at its option
either in gold at the legal price, or in gold foreign exchanges at the rate of the day quoted
on the Prague Bourse, but only in a minimum
amount equal in value to 12 kilograms of fine
gold. The date on which this obligation is to
come into force will be determined by special
decree, published by the Government in agreement with the bank.
In order that the Czechoslovak crown may
obtain full recognition in the international exchange market, convertibility of the currency
must be established. Under paragraph 2 of
the currency law, the Government, in agreement with the bank, is authorized to issue a
decree establishing convertibility of bank
notes according to the system of the gold exchange standard. Only through the adoption
of such a measure can the Czechoslovak crown
rank with other currencies and become eligible
for inclusion in the legal reserves of other goldexchange standard countries.
The State notes debt.—The agreement relative to the speedier redemption of the State
notes debt has not yet been ratified by Parliament.
The intention of this agreement is to hasten
the repayment to the fund for redemption of
the State notes debt, of certain sums withdrawn
for partial amortization of short-term Treasury
bills of 1921. These withdrawals were authorized under Article XII of the bank law; they
were made in anticipation of larger receipts
from the capital levy than were finally received,
and in the belief that the volume of these bills—
about 1,500,000,000 crowns ($44,400,000)—
tended for special reasons to depress the exchange. Funds thus withdrawn have aggregated some 600,000,000 crowns, and are being
gradually returned according to the earlier
arrangement, which is still in effect. No further
withdrawals are to be made from the fund for
amortization of the State note debt.
The agreement also provides that the State
administration shall make certain additional
payments to the amortization fund; and finally,
that Government receipts from the bank—
dividends on capital stock subscribed for by the
State, and the share of the Government in the
profits—shall be used for redemption of the
State notes debt. These receipts from the bank
507
are not to be included, as heretofore, in the
regular annual payment of 110,000,000 crowns
fixed by agreement of February 2, 1927.
To sum up: Legal stabilization of the
Czechoslovak crown has been established by
the currency law; the maintenance of the crown
at its stabilized level depends upon the amortization of the State notes debt.
The central bank and the money market.—-
The reserve position of the currency is strong.
The latest return showed gold and gold exchanges amounting to 3,169,000,000 crowns
($93,802,000) against notes in circulation and
other demand liabilities of 7,136,000,000 crowns
($211,226,000)—that is, a gold reserve of 44.4
per cent.
The other part of the note cover is less satisfactory. Only 3.5 per cent of the circulation
is represented by commercial bills, while 52.3
per cent is represented by the remainder of the
State notes debt.
These percentages explain why the bank has
so little influence on the money market. Under
existing circumstances the official discount
rate—the most important instrument that a
bank of issue has at its disposal with which to
regulate conditions in the money market—is
more or less nominal in our country. Control
of the market could be made effective in an
emergency only by sharp advances in the discount rate, which would be undesirable from
the point of view of public and private credit
requirements.
There is urgent need of strengthening the
position of the bank of issue on the money
market, for only thus can we develop a greater
volume of transactions in commercial bills of
exchange. The charge for revenue stamps
used on these bills might well be reduced.
Reserves.—The gold holdings of the National
Bank of Czechoslovakia were further increased
during the past year. On December 31,
1929, they amounted to 1,261,428,856 crowns
($37,338,000), against 1,156,671,655 crowns
($34,237,000) on December 31, 1928, an increase of 104,757,201 crowns ($3,101,000).
Changes in the foreign-exchange holdings were
similar to those in previous years. During the
first few months they declined, but in August
began to increase gradually. The decline in
the first half of 1929 was greater than in the
previous year, owing chiefly to the changed
foreign trade balance; this in the first six
months of 1929 showed an adverse balance of
631,120,000 crowns ($18,681,000) compared
with a favorable balance of 770,820,000 crowns
($22,816,000) for the corresponding period in
1928. The gold and foreign exchange position
508
FEDERAL RESERVE BULLETIN
of the National Bank would indicate that the
balance of payments in 1929 was not unfavorable. Nevertheless, a large foreign trade surplus is necessary in order to reduce the country's
debts and to strengthen her economic postion—
even apart from questions of the money and
capital market.
Money market.—Except during the first few
months, large demands were made upon the
money market—chiefly for long-term credits—
while the open-market rate of interest averaged
somewhat higher than during previous years.
This tightening of the market was due to several causes. First, a large volume of funds was
absorbed by business, which continued to be
active until autumn. In particular, the building industry, which had previously been
financed by short-term credits, now found it
necessary to convert some of these into longterm loans; this had not been the case in 1928.
Second, the money market was influenced by
the unfavorable shift in the foreign trade balance. Again, the difficult situation of agriculture not only caused a decline in savings but
gave rise to increased demands for credit.
Finally, increasing internal requirements during
the first half of the year and the rising standard
of living checked the accumulation of savings.
These adverse factors were supplemented by
the disturbed situation in the international
money markets and the considerable rise in the
bank and open-market rates, which made foreign credits more difficult to obtain.
In spite of these difficult conditions both at
home and abroad, the National Bank of
Czechoslovakia did not feel obliged to change
its 5 per cent discount rate, even though dealings in foreign exchange were unrestricted.
The stability of the rate was of inestimable help
to the entire economic life of the country.
The average yield of Government bonds
reflected money-market conditions to some
extent. At the beginning of the year the yield
was 5,701 per cent, at the beginning of March,
5.775 per cent, and thereafter it averaged 5.76
per cent. The average yield for the year was
slightly above that of the preceding year.
At the beginning of the year, when available
funds were in considerable volume, some banks
invested their surplus funds abroad temporarily, with the approval of the bank; in the
following months, as demands at home
AUGUST, 1930
increased, these balances were gradually
returned to the bank of issue and the home
market. In the early part of the year the banks
also found profitable employment for their
surplus funds in fairly large purchases of
investment securities. These were gradually
disposed of later on to meet the increasing
demands of agriculture and industry. The
demand for funds became strong at the close of
June, when there was a marked expansion of
National Bank credit, and remained so until
autumn except for a short interval in the
summer.
As in previous years, the Czechoslovak market carried on its operations without the aid of
foreign credits. Short-term foreign indebtedness of the banks, however, increased somewhat, as shown by statistics compiled by the
bank of issue for its own use. After wide fluctuations during the course of the year, this net
indebtedness at the end of December, 1929,
amounted to 748,360,000 crowns ($22,151,000),
as compared with 635,000,000 crowns
($18,796,000) at the end of December,
1928.
Savings.—Savings deposits continued to
increase, but at a slower rate than during the
preceding year. Savings deposits at all Czechoslovak savings banks rose by 897,590,000
crowns ($26,569,000) in the first 11 months of
1929, compared with 1,194,500,000 crowns
($35,357,000) for the corresponding period in
1928. Peoples'credit and savings associations,
mainly in Bohemia, also recorded a less rapid
rate of increase. At the agricultural credit and
savings associations, however, deposits in 1929
rose by 322,840,000 crowns ($9,556,000)—
from 3,221,790,000 crowns ($95,365,000) to
3,544,630,000 crowns ($104,921,000)—as compared with an increase in 1928 of 299,550,000
crowns ($8,867,000)—from 2,922,240 crowns
($86,498,000)
to
3,221,790,000
crowns
($95,365,000). The farmers' mutual cash institutions in Slovakia recorded an advance of
80,530,000 crowns ($2,384,000), as compared
with 55,550,000 crowns ($1,644,000) in 1928.
At the country banking institutions savings
deposits rose by 62,510,000 crowns ($1,850,000),
while in 1928 the increase was only 17,110,000
crowns ($506,456).
The long-term credit market has been supplied to an increasing extent with funds ac-
AUGUST,
1930
cumulating on account of social insurance.
The resources of the Central Social Insurance
Institution rose by 735,600,000 crowns
($21,774,000) to 2,212,000,000 crowns ($65,475,000); those of the General Pension Institution by 474,780,000 crowns ($14,053,000) to
2,415,750,000 crowns ($71,506,000). If we
add the capital created in the form of private
insurance we find that the total of savings
thus created is considerably in excess of
1,000,000,000 crowns ($29,600,000) annually.
Capital issues.—New capital issues were
again in excess of the previous year, the net
increase representing 325,500,000 crowns
($9,635,000), against 271,800,000 crowns
($8,045,000 in 1928). The new issues were
allocated as follows: Banking 120,400,000
crowns ($3,564,000), textile industry 76,400,000
crowns ($2,261,000), paper industry 65,100,000
crowns ($1,927,000), metal industry 55,400,000
crowns ($1,640,000), and chemical industry
36,800,000 crowns ($1,089,000).
The situation in the money market brought
about an increased demand on the National
Bank for credit, beginning in June. By the
end of September and October the total volume
of credit extended by the bank amounted to
861,350,000 crowns ($25,496,000). At the end
of the year, owing to the improved foreign
trade balance and the easier conditions for
short-term foreign credits, the demand for
central bank credit declined. Although the
expansion was considerable in comparison with
previous years, the credit demand remained
well below the level which may be regarded as
normal under existing circumstances.
Movement of prices.—Prices in Czechoslovakia showed a considerable decline during
1929, which was reflected in the index of wholesale prices. The index for the year was 924
compared with 979 in 1928—a decline of 5.6
per cent. In January the index was 953; it
rose to 964 in April, and declined thereafter
until on December 1, it reached 876, a decline
of 77 points, or 8.08 per cent for the year as a
whole, and the lowest figure on record.
509
FEDERAL RESERVE BULLETIN
BALANCE SHEET OF THE NATIONAL BANK OF CZECHOSLOVAKIA AS OF DECEMBER 31, 1929
Czechoslovak
Dollars *
crowns (in thou(in thou- sands)
sands)
RESOURCES
Gold
1, 261,429
Silver
40, 547
Foreign bank notes, silver, and token coin
5,488
Balances abroad and foreign currencies advanced. 2, 203, 349
Foreign bills discounted
Foreign checks in course of collection
641
37,338
1,200
162
65, 219
620
19
2, 270,964
67, 221
Czechoslovak token coin
21,893
Local bills
397, 082
Other bills
128, 652
Securities discounted
395, 717
Advances on collateral
89,464
Sites, premises, furniture, and fixtures
86,195
Banking Office of the Ministry of Finance in
liquidation:
State notes debt
3, 761, 082
Assets of the Banking Office of the Ministry
of Finance in liquidation, in charge of the
National Bank of Czechoslovakia
362,458
Temporary resources:
2
In foreign accounts
773, 437
Interest due in 1929 to be collected in 1930
515
Other resources
17,454
648
11, 754
3,808
11, 713
2,648
2,552
Total resources, exclusive of contra accounts,. 9, 566, 342
Contra accounts
79,200
Total resources
111, 328
10, 729
22, 894
15
517
283,164
2,344
9, 645, 543
285, 508
Bank notes in circulation
•_
8, 229, 512
674, 845
Giro accounts
30, 380
Current accounts
,
405,000
Capital
1,800
Surplus
Reserve fund in accordance with section 135 of
4,133
the statutes.
Special reserve fund in accordance with Art. I l l
69,488
of the amendment of the Bank Law No. 102/25..
5,000
Building fund
Net profit:
326
Carry-over from the year 1928
r
90, 550
Results of the year 1929
Short-term Treasury bonds in circulation, taken
315
"over from the Austro-Hungarian Bank
Temporary liabilities (interest due in 1930,
6,342
already collected in 1929)
28, 891
State's gold treasure
19, 759
Other liabilities
243, 594
19, 975
899
11,988
53
LIABILITIES
1
Total liabilities, exclusive of contra ac9, 566, 342
counts
79, 200
Contra accounts
Total liabilities
1
9,645, 543
Conversion at par: 1 Czechoslovak crown=$0.0296.
2 Published as 733,437.
122
2,057
148
10
2,680
189
855
585
283,164
2,344
285, 508
510
FEDERAL RESERVE BULLETIN
AUGUST,
1930
FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars.
Month
Figures for end of month or latest available preceding date; see BULLETIN for June, 1929, p. 396, and for June, 1930, p. 372]
Total
(44
countries)
Ar- Aus- Bel- Bra- Can- EngGerFrance many
gen- tra- gium
zil
land
ada
lia
tina
United
States
10,132
1929—June
10,150
July
August _- _ 10,233
September. _ 10, 260
October
10, 292
November. - 10, 296
December.. _ 10, 290
1930—January
10, 356
February._. 10, 431
March
10, 502
10, 565
April
P10, 610
MayHO, 668
June
July
3,956
3,974
3,995
4,008
4,023
4,003
3,900
3,921
3,988
4,061
4,131
4,159
4,178
P 4,160
524
513
507
496
476
451
434
445
448
445
442
M41
108
P440
P91
139
141
141
142
143
151
163
164
164
164
164
167
167
111
113
114
109
97
89
88
124
126
109
91
151
151
151
151
151
151
150
139
127
127
90
90
89
76
76
77
77
.77
78
78
78
78
-79
79
80
P80
780
694
670
648
643
659
711
732
740
759
795
765
768
*>746
455
512
520
527
531
534
544
547
582
595
611
617
624
1,436
1,462
1,525
1,545
1,570
1,600
1,633
1,683
1,680
1,668
1,659
1,717
1,727
v 1,777
India
Italy
128
128
128
128
128
128
128
128
128
128
128
128
128
271
271
271
272
272
273
273
273
273
274
274
274
274
Neth- Ruserlands sia
Japan
542
541
541
541
541
542
542
520
477
453
443
434
434
176
181
178
178
178
180
180
177
176
174
174
174
174
28
Swit- other
zer- counland tries
Spain
494
495
495
495
495
495
495
495
476
476
477
477
477
93
103
119
132
142
142
147
147
150
156
167
177
203
233
96
98
98
103
103
105
115
108
108
108
112
112
112
706
699
703
704
708
708
708
711
712
709
719
*707
v 702
p Preliminary, based on latest available figures.
NOTE.—Table covers all countries for which satisfactory figures are available; see BULLETIN for April (p. 170), where separate figures for the
44 countries are given by years back to 1913. For the 16 countries here shown separately—all of which have held gold in recent years to the amount
of $90,000,000 or more—the figures are for central banks only except as follows: United Stores—Treasury and Federal reserve banks; Argentina—
Government conversion fund and Bank of the Nation; .Brazil—Bank of Brazil and Government stabilization fund; Canada—Government reserve
against Dominion notes and savings-bank deposits, and gold deposits of chartered banks in the central reserve; India—currency and gold standard
reserves of Government; Japan—domestic holdings of Bank of Japan and Government.
GOLD MOVEMENTS
[In thousands of dollars]
United States
Month
1929—June
July
August
September.
October
November.
December.
1930—January...
February..
March
April
May
June
Imports
Exports
Great Britain
Germany
Imports
Net
30,762
550
30,212
35, 525
34, 718
807
19,271
881
18, 390
18, 781 1,205
17,576
21,321
3,805
17,516
7,123 30,289 -23,166
8,121 72, 547 -64,426
12,908 8,948
3,'"'
60,198
207
59,991
55, 768
290
55, 478
65, 835
110
65, 725
23, 552
82
23,170
13, S
26
13, 912
Exports
Net
Imports
Exports
Netherlands
Imports
Net
681
6,812 21,085 40,001 -18, 917
716 48,012 22, 578 100,479 -77,901
879 26,849 17, 226 59,278 -42,052
851
9,088 18,301 41, 283 -22, 982
1,002 3,622 28, 591 26, 794
1,796
4,174 36, 249 27,844
919
8,405
806 10,290 65,343 16,439 48,903
629 4,423 41, 702 16,102 25,600
687 37, 565 38,961 34,074
4,886
769 14,350 38,258 12,826 25,432
703 17,967 42, 741 14,828 27, 913
6,596 45,388 61,134 -15,746
722
1,815 5,746 13, 747 20, 659 - 6 , 912
7,493
48, 728
27, 728
9,939
4,624
5,093
11,096
5,052
38,252
15,119
18, 670
7,318
7,561
Exports
190
129
103
116
177
107
297
248
80
89
81
75
34
Net
South
Africa
..
¥
I n d m
Net
Net
17
173 -22, 625
3,596
8
121 -14,816
4,164
2,522 -2,419 -20, 981 2,771
17
99 -15, 375
3,390
12
166 -15,812
3,146
15
92 -20, 922
4,408
17
280 -18,220
4,603
3,224 -2,975 -17,808
5,370
1,026
-946 -20, 786
3,844
10
79 -13,777
3,447
21
60 -18,134
5,953
19
56 -22, 798
6,452
11
18,190 v 9,198
23
f> Preliminary.
MOVEMENTS TO AND FROM GREAT BRITAIN
M O V E M E N T S TO A N D F R O M BRITISH INDIA
[In thousands of dollars]
[In thousands of dollars]
1930
June
From or to—
Imports
126
France
Germany
Netherlands
2
Spain and Canaries.
Switzerland .
United States
South America
276
British India
341
A ustralia
New Zealand.
Egypt
Rhodesia
_. . __
427
Transvaal
_ 12,145
383
West Africa . . -_
47
All other countries..
13, 747
Total....
Exports
11,553
7,749
20
1
333
1929
1930
January-June
Calendar year
Imports
Exports-
Imports
Exports
76,715
62,238
338
146
4,228
2,066
3,203
14,382
4
162,527
92,991
2,006
359
10 781
61,293
1,253
7
19,468
283
14,021
687
84,246
51
83
49
5,470
2
23,090
39 129
10 320
24 603
2,433
94
2,539
96,117
2,540
269
~~~3~786
4 641
184 954
10
4,216
10,334
1,003
8
33,434
20, 659 220,794 159, 624 303,725
377,505
235
From or to—
April
Imports
England
United States
Aden and dependencies
Arabia
British Oceania
Bahrein Islands
Cevlon
China
Mesopotamia
Straits Settlements..
Egypt
Natal
All other countries
Total
Exports
1929
January-April
Calendar year
Imports
Imports
Exports
1,304
3,451
10,461
22
51
151
213
27
192
95
172
105
206
3,447
264
313
4,733 - - - - - 53
1,341
198
901
273
14
934
6,163
4
1,045
1,287
7,701
119
4,151
188
2,613
19
6,867
29, 595
206
5,964
11
11
18, 628
14
64,275
Exports
1
28
19
48
511
FEDERAL RESERVE BULLETIN
AUGUST, 1930
CONDITION OF CENTRAL BANKS
[Figures are for the last report date of month]
1930
June
May
1929
April
June
Bank of England (millions of pounds
sterling):
Issue department—
Gold coin and bullion
Notes issued
Banking department—
Gold and silver coin
Bank notes
_..
Government securities
Other secutities
Discounts and advances......
Public deposits
Bankers' deposits
Other deposits1
Reserve ratio (per cent)
Bank notes in circulation 2
156.9
416.9
157.2
417.2
163.3
423.3
159.1
419.1
.9
58.4
48.9
15.3
15.9
21 5
63.8
36.1
48.8
358.5
61.1
45.6
11.5
6.8
13.2
59.0
35.9
57.3
356.1
.9
64.5
59.2
10.0
6.8
21.0
66.2
36.6
52.9
358.8
1.1
56.3
38.6
23.2
27.0
24.7
67.4
"36.1
44.8
362.7
ank of France (millions of francs):
Gold
Sight balances abroad
Foreign bills
„.
Loans and discounts.
Negotiable bonds
Note circulation
Public deposits
__•
Other deposits
44, 052
6,905
18, 728
8,984
5,395
72, 594
4,938
10,420
43, 809
6,873
18, 690
10,194
5,395
73, 078
5,363
10, 062
42, 351
6.902
18,736
8,296
5,395
70, 770
6,554
7,997
36, 625
7,300
18,450
10,497
5,769
64, 921
11, 041
7,075
•German Reichsbank (millions of
reichsmarks):
Gold reserve
Gold abroad
__.
Reserves in foreign exchange
Loans and discounts
Deposits
Reichsmarks in circulation
Rentenmarks in circulation
2,469
150
459
1,969
492
4,685
449
2,441
150
351
2,146
401
4,812
379
2,416
150
327
2,152
537
4,664
1,831
80
361
3,196
631
4,839
465
5,208 5,206
4,863 5,037
4,499 3,940
15, 846 15, 944
300
300
1,499 1,546
5,204
5,026
4,359
16,062
300
1,514
5,159
4,920
6,004
16, 753
300
1,529
895
749
85
1,186
693
1,064
728
244
1,462
691
22,493
5,190
22,151
19, 982
Bank of Italy (millions of lire):
Gold at home
Credits and balances abroad
Loans and discounts
Total note circulation
Public deposits
Other deposits
Bank of Japan (millions of yen):
Gold.
Advances and discounts
Government bonds
Notes issued
Total deposits
870
808
80
1,282
667
871
761
90
1,186
753
Commonwealth Bank of Australia
(thousands of pounds sterling):
Issue departmentGold coin and bullion
Securities
Banking department—
Coin, bullion, and cash
Money at short call in London
Loans and discounts
Securities
Deposits
Bank notes in circulation
2,215
1,897
6,261
13, 350
21, 208
41, 980
39, 797
15,813
10,834
13, 009
41,113
37, 701
Austrian National Bank (millions of
schillings):
Gold
Foreign exchange of the reserve..
Other foreign exchange
Domestic bills
Government debt
Note circulation
Deposits
169
231
365
146
102
982
36
169
199
346
255
110
1,044
37
1
1930
National Bank of Belgium (millions
of belgas):
Gold
Foreign bills and balances in gold.
Domestic and foreign bills
Loans to State
Note circulation
Deposits
Bank of Brazil (millions of milreis):
Gold....
Currency
Correspondents abroad
Loans and discounts
Securities
Note circulation.. _
Deposits
National Bank of Bulgaria (millions
of leva):
Gold
Net foreign exchange
Total foreign exchange
Loans and discounts
Government obligations
.
Note circulation
.
Other sight liabilities.
Central Bank of Chile (millions of
pesos):
Gold at home
Deposits abroad
Loans and discounts
Note circulation
__
Deposits against which reserve
is held
._
Bank of the Republic of Colombia
(thousands of pesos):
Gold at home.
Gold abroad
...
Loans and discounts
Note circulation
Deposits
Czechoslovak National Bank (millions of Czechoslovak crowns):
Gold...:
Foreign balances and currency...
Loans and advances
Assets of banking office in liquidation
.
Note circulation
Deposits
Danish National Bank (millions of
kroner):
Gold
Foreign bills, etc
Loans and discounts
Note circulation
..
Deposits
Bank of Danzig (thousands of Danzig gulden):
Balances with Bank of England..
Foreign bills, etc
Loans and discounts
Note circulation
._..
Deposits
Bank of Estonia (thousands of
krones):
Gold
Net foreign exchange
Loans and discounts
Note circulation
DepositsGovernment.
_
Bankers
Other.
Ratio of gold and notes in banking department to deposit liabilities.
Notes issued, less amounts held in banking department and in currency note account.
Figures not available.
r Revised.
2
3
1929
June
May
1,202
734
785
2,902 I
170 j
1,200
672
830
315
2,909
144
1,183
615
829
309
2,877
105
1,003
460
727
343
2,482
108
407 i
504 I
231
1,463 I
129
592
1,438
407
450
360
1,439
129
592
1,361
407
373
306
1,455
127
592
1,297
407
806
239
1,258
143
592
1,604
1,418
236
837
894
3,279
3,396
1,540
1,411
264
858
983
3,339
3,364
1,706
1,407
269
737
1,110
3,339
3,302
1,737
1,368
1,436
1,894
1,635
3,578
3,972
2,729
63
337
101
344
63
332
108
346
62
440
93
366
82
128
20,513 21,311
9,909
10, 6,50
13, 518 • 13, 591
30, 776 30, 719
6,445
6,452
20, 886
9,141
13,428
30, 095
6,199
25,869
29,438
14, 753
48, 656
9,817
1,313 I 1,313
2,135 I 2,052
433 !
319
1,262
1,872
515
1,157
1,781
861
343
7,196
439
345
•,896
491
350
6,854
401
405
7,612
415
172
172
107
366
39
371
30
172
98
83
362
31
74
366
34
!
63 I
201
100
340 !
j
85 !
April
June
I
13, 200
10,686
21,860
36, 505
2,175
14,710
11, 435
20, 037
36, 445
r 1, 541
14,820
12, 384
19, 425
36, 207
r 2, 084
16, 732
12, 612
22,436
38, 259
1,561
6,516 6, 500 6, 477 6,315
16,081 16, 917 18,169 18,887
25, 524 26, 628 28, 268 27, 552
30,176 30, 812 32, 327 31, 594
10,127
3,790
2,450
10, 034 11,439
3,535 3,302
1,934
1,584
10, 909
3,763
2,863
512
FEDERAL RESERVE BULLETIN
AUGUST, 1930
CONDITION OF CENTRAL BANKS—Continued
[Figures are for the last report date of month]
1930
June
May
1929
April
June
Bank of Finland (millions of Finnish marks):
Gold
Balances abroad and foreign
credits
Foreign bills
Domestic bills
Note circulation _
Demand liabilities
302
303
304
301
877
191
710
1,373
151
1,024
145
766
1,392
260
946
122
916
1,440
237
545
7
1,375
1,473
199
Bank of Greece (millions of drachmas):
Gold
Net foreign exchange in reserve. _.
Total foreign exchange
Loans and discounts
Government obligations
_..
Note circulation
Other sight liabilities
580
2,726
3, 555
258
3,489
4,894
1,505
603
2,667
3,786
241
3,489
4,943
1,460
621
2,716
3,424
233
3,489
4,991
1,525
594
3,242
5,439
141
3,656
5,494
1,780
National Bank of Hungary (millions of pengos):
Gold
Foreign bills, etc
Loans and discounts
Advances to treasury
Other assets
Note circulation
Deposits
Miscellaneous liabilities
163
32
234
79
84
449
71
46
163
19
••220
83
64
441
31
163
10
248
83
58
464
25
47
Bank of Java (millions of florins):
Gold
Foreign bills
Loans and discounts
Note circulation.
Deposits
139
45
56
274
51
139
38
63
273
139
37
64
269
51
24
49
89
56
45
101
77
24
53
91
56
.48
107
71
Bank of Latvia (millions of lats):
Gold
Foreign exchange reserve
Bills
Loans
Note circulation
Government deposits
Other deposits
Bank of Lithuania (millions of litas):
Gold
Foreign currency
Loans and discounts
Note circulation
Deposits
Netherlands Bank (millions
florins):
Gold
Foreign bills
Loans and discounts
Note circulation
Deposits
of
Bank of Norway (millions of kroner):
Gold
Foreign balances and bills
Domestic credits
Note circulation
Foreign deposits
Total deposits.
Reserve Bank of Peru (thousands of
soles): i
Gold
Gold against demand deposits
Foreign exchange reserve
Bills
Note circulation
Deposits
1
35
74
94
102
94
432
238
159
843
31
432
236
144
804
54
432
213
145
829
18
147
53
228
316
2
147
35
232
308
2
83
147
35
240
310
2
84
38,786
4,188
17,741
14,239
57,453
8,376
39,492
3,400
16, 747
15, 791
58,500
44,596
4,292
11,160
18,466
59,063
8,585
1930
June
1929
May
April
Bank of Poland (millions of zlotys):
Gold at home
_.
Gold abroad
Foreign exchange of the reserve...
Other foreign exchange
Loans and discounts
Note circulation
Current account of the treasury..
Other current accounts
483
219
298
112
Jank of Portugal (millions of escudos):
Gold
Balances abroad
. .
Bills
Note circulation
Deposits
National Bank of Roumania (millions
of lei):
' Gold at home
Gold abroad
177
Foreign exchange of the reserve..
17
Other foreign exchange
381
Loans and discounts
92
State debt
.'
34
Note circulation
463
Deposits
165 State Bank of Russia (thousands of
47
chervontsi):
Loans and discounts
Deposits
161
Issue
department—•
28
Gold
114
Other
precious metals
305
Foreign exchange
46
Note circulation
South African Reserve Bank (thou24
sands of pounds sterling):
47
Gold
90
Foreign bills
59
D omestic bills
44
Note circulation
104
DepositsGovernment
Bankers
Others
Bank of Spain (millions of pesetas):
Gold
Silver
Balances abroad
Loans and discounts
Note circulation
Deposits
437 Bank of Sweden (millions of kronor) :
176
Gold
151
Foreign bills, etc
779
Loans and discounts
21
Note circulation.
Deposits
National Bank (millions of
147 Swiss
francs):
46
Gold
275
Foreign balances and bills
318
Loans and discounts
2
Note circulation
97
Demand deposits
National Bank of the Kingdom of
Yugoslavia (millions of dinars):
50,636
Gold
3,090
Foreign notes and credits
9, 526
Loans and discounts
21,265
Advances to State
63,269
Note circulation
5,086
Deposits
June
292
62
5,356
3,919
1,425
36
9,687
3,797
18, 521
7, 345
.419,166
271
1,845
50
7,631
19,113
7,341
372, 550
196,057
18,103
4,212
9,361
121, 676
6,923
7,505
295
8, 550
i 7, 252
| 7,372
I 855
j 8, 979
1,635
4,787
287
93
178
1,501
2,966
5,196
714
Figures for June, 1929, have been converted from libras (par $4.8665) into soles (par $0.4000). See Federal Reserve Bulletin for M a y , 1930.
r Revised.
513
FEDERAL RESERVE BULLETIN
Al-(iVST, 1030
CONDITION OF COMMERCIAL BANKS
Millions of national
currency
Country
Current loans and discounts
Public and railway securities
N o t e circulation
I n d i v i d u a l deposits
Gold reserve against Dominion n o t e s .
Dominion note circulation
Argentina:
B a n k of t h e Nation—
Gold
Other cash
Loans a n d discounts
Deposits
Other b a n k s in Buenos A i r e s Gold
Other cash
Loans a n d discounts
Deposits
England:
Cash in vault and at b a n k s
M o n e y at call a n d short notice
Advances a n d discounts
Investments . .
Deposits.
France:
Bills a n d national-defense bonds
Loans and advances
Demand deposits
Time deposits
Germany:
Bill a n d treasury notes
D u e from other b a n k s
Miscellaneous loans
Deposits
\cceDtances
Italy:
Cash
Bills discounted
Due from correspondents
Due to corresDondents
Deposits
Denmark:
Loans and discounts
D u e from foreign b a n k s
D u e to foreign b a n k s
Deposits and current accounts
Norway:
D u e from foreign b a n k s
D u e to foreign b a n k s
Rediscounts
Deposits
Sweden:
Loans a n d discounts
Foreign bills and credits abroad
D u e to foreign b a n k s
Rediscounts
Deposits
Japan:
Cash on h a n d
Total loans
Total deposits
1
r
Millions of dollars
1930
April
Canada:
Gold a n d subsidiary coin *
M o n e y at call a n d short notice
i
May
1929
June
Mill ons of do liars
60
60
417
415
1,573
1,601
431
428
155
165
2,472
2,401
64
65
174
170
Mil ions of %esos
7
7
126
122
601
729
564
721
10
10
189
187
870
880
1,004
1,003
Mill ons of pounds
sterlino
187
189
187
144
137
133
1,204
1,177
1,231
231
233
225
1.742
1,712
1, 788
May
June
64
564
1,572
516
171
2, 596
59
205
64
594
1,559
523
168
2,560
59
197
61
594
1,566
525
187
2, 559
59
210
61
449
1,641
431
156
2,485
63
173
60
428
1,628
423
159
2,455
63
169
60
415
1,626
418
163
2,459
63
174
60
415
1,601
428
155
2,472
64
174
60
417
1,573
431
165
2,401
65
170
102
129
524
745
98
125
530
742
75
121
549
750
r6
113
534
668
99
532
649
98
525
631
*6
108
533
646
6
110
492
629
14
164
850
981
11
173
846
976
13
177
843
979
11
155
829
916
11
156
789
867
10
166
754
867
10
166
780
890
10165
759
875
917
694
5, 734
1,188
8,363
917
694
5,701
1,189
8,429
938
728
5, 813
1,185
8,615
935
692
5, 903
1,134
8,600
884
621
5,799
1,113
8,341
882
645
5,631
1,096
8,185
911
650
5,729
1,095
8,331
793
410
1,299
38
776
404
1,305
38
810
391
1,303
39
834
420
1,298
44
829
426
1 324
50
804
418
1, 314
58
773
440
1,325
57
- 750
276
2,039
2,867
125
770
282
2, 052
2,920
122
755
271
2, 076
2,921
117
62
454
284
721
160
Millions of kroner
1,831 i 1.814 !
114
109
82
83
1, 985
1, 984
Mill ions of kroner
1 241
1, 235 i
112
110
75
80
88
80
1, 726
1, 500
Mill ions of ki onor
4, 356
4,376
255
262
158
156
56
91
3. 661
3 692
Millions of yen
281
257
230
2, 160
2, 192
2, 129
2, 049
2,072
2,040
Febru- March
ary
January
April
Millions of fr ancs
rl9, 717 •
_
11,215
33,811
1,444
Millior s of reichsmarks
3,169
3 9*fi
3, 168
1,154
1,139
1 113
8, 642
8,709
8, 588
12, 265 12, 240 12, 297
491
481
487
Mi llions of lire
1930
60
441
286
710
161
1
April
i
May
June
897
666
5,857
1,127
8,478
921
699
5,993
1.132
8 701
755
275
2,059
2,916
116
776
265
2 046
2, 929
115
!
466
41
21
522
467
38
19
526
473
38
17
524
479
34
20
520
485
31
23
528
488
33
24
532
491
30
22
532
486
29
22
532
339
27
23
27
419
335
28
22
27
417
336
27
21
27
417
332
33
20
25
408
330
31
20
25
408
329
28
20
24
404
333
30
21
24
402
331
30
20
22
463
1,105
74
34
56
945
1,103
68
32
62
930
1,107
70
30
70
928
1, 146
80
33
42
965
1,159
71
32
41
970
1,166
72
38
42
980
1, 167
70
42
24
989
1, 173
68
42
15
981
117
917
941
154
914
938
127
933
920
138
1,071
1,033
119
1,075
1,028
114
1,080
1, 022
140
1,061
1,017
128
1,077
1,021
115
1,093
1,03a
N o t including a m o u n t s held abroad.
Revised.
N O T E . — B a n k s included are as follows: Canada—Chartered
b a n k s ; England—nine
London clearing banks; France—four commercial b a n k s
Germany—six Berlin banks; Italy—four private banks; Denmark, Norway, and Sweden—joint-stock
banks; Japan—Tokyo
banks.
514
FEDERAL RESERVE BULLETIN
AUGUST, 1930
DISCOUNT RATES OF CENTRAL BANKS
[Rate prevailing August 1, 1930, with date of latest change]
Country
In effect
since—
Rate
Country
Rate
In effect
since—
Country
Japan
Java
_.
Latvia
Lithuania...
Rate
In effect
since—
1
Rate
Country
1
In effect
since—
June
Nov.
Mar.
Aug.
2,1930
26,1929
22,1927
17,1929
m
July
Apr.
July
2*6 M a y
5*6
18,1930
3,1930
10,1930
28,1930
Changes: Belgium—August 1, from 3 to 2*6 per cent; India—July 10, from 6 to 5 per cent; Peru—July 26, from 7 to 8 per cent;
July 10, from 3 to 2*6 per cent; Spain—July 18, from 5*6 to 6 per cent.
Switzerland-
Austria
Belgium
Bulgaria
Chile
Colombia
Czechoslovakia.
Danzig
Denmark
Ecuador
5*6 May
21/2 Aug.
10 July
6 Oct.
24,1930
1,1930
2,1929
22,1928
England..
Estonia...
Finland.
France
3
8
6*6
2*6
May 1,1930
Oct. 3,1929
Apr. 28,1930
May 2,1930
May
June
June
May
Jan.
21,1930
25,1930
25,1930
3,1930
10,1930
Germany.
Greece
Hungary.
India
Italy
4
9
5*6
5
5*6
June
Nov.
May
July
May
8
4i/2
9
21,1930
30,1928
30,1930
10,1930
19,1930
5.48
4/2
6-7
6
Netherlands. 3
Norway
4/2
Peru.
8
Poland
6/2
Oct.
Mar.
Apr.
Apr.
10,1927
10,1930
1,1928
1,1930
Mar.
Mar.
July
June
25,1930
21,1930
26,1930
13,1930
Portugal
Rumania.
Russia
South AfricaSpain.
Sweden
Switzerland.
Yugoslavia..
71/2
9
8
6
6
MONEY RATES IN FOREIGN COUNTRIES
England (London)
Month
Switzerland
Bankers'
acceptances, 3
months
Treasury
bills, 3
months
4.32
5.05
5.33
5.21
5.21
5.32
4.29
4.96
5.30
5.18
5.21
5.35
3.41
4.33
4.51
4.43
4.67
4.23
2*6
2*6-3*6
3*6
3*6
3*6
3*6
5.80
5.80
6.31
6.63
7.49
7.50
7.51
7.07
7.30
7.57
9.65
9.89
5.13
6.33
6.97
6.85
9.32
7.90
4.20
4.39
4.64
5.36
5.37
5.30
4.46
4.78
5.05
5.81
5.88
5.30
3.28
3.31
3.39
3.45
3.34
3.26
5.38
5.47
5.59
5.35
4.76
5.39
5.48
5.63
6.19
5.30
4.75
4.54
4.35
4.39
5.45
5.15
4.23
3*6
3*6
3*6-4*6
4*6-4
4 -3*6
3*6-3
7.39
7.18
7.18
7.28
6.89
6.98
9.35
9.43
9.48
9.06
8.29
8.78
8.21
7.42
7.86
8.06
7.79
8.14
5.20
5.06
5.36
5.15
4.26
3.52
4.90
4.68
5.32
4.52
4.17
3.87
3.19
3.33
3.38
3.38
3.32
3.15
4.07
3.82
2.78
2.48
2.16
2.31
4.04
3.72
2.55
2.49
2.11
2.30
3.62
3.76
3.20
2.28
1.93
1.93
3
3 -2*6
2*6-1*6
1*6
6.33
5.53
5.12
4.46
3.89
3.58
7.71
6.72
6.35
5.57
5.00
4.80
6.03
6.01
5.57
4.40
3.62
3.74
2.99
2.80
2.50
2.52
2.29
1.89
2.85
2.94
2.61
3.08
2.53
1.93
2.97
2.71
2.60
2.61
2.44
2.06
1929—January
February
March
April
May
June
July
August
September...^
te
October
November
December
1930—January
February
March
April
May
June.
Netherlands (Amsterdam)
Germany (Berlin)
6.13
._
Bankers'
Day-to-day allowance
money
on deposits
Belgium
(Brussels)
France
(Paris)
Italy
(Milan)
Private
discount
rate
Private
discount
rate
Private
discount
rate
1
Private
discount
rate
Austria (Vienna)
M o n e y for
1 month
Day-to-day
money
Private
discount
rate
Sweden
(Stockholm)
Hungary
M o n e y for
1 month
Private
discount
rate
Japan (Tokyo)
Month
1929—January
February
March
April.._
May
June
July
August
September
October
November
December
__
_
1930—January
February
March..
April
May
_
June
Private
discount
rate
Money
for 1
month
3.97
3.97
3.97
3.97
3.96
3.97
3.50
3.39
3.37
3.44
3.49
3.50
5.83
6.00
6.31
6.75
6.83
6.75
6^6-6%
6M6-6M6
6*4 - 6 %
65/16-7*4
7*6 -7*4
7Me-7*4
7*4-85/6
7*4-8*4
7*4-8*4
7?,6-83/4
8 -9
8*4-9
4.04
4.93
4.94
4.94
4.57
4.40
3.50
3.50
3.50
3.50
3.50
3.50
6.75
6.85
7.01
7.18
7.00
7.00
7*4 -73/6
7*4 -7Me
7H
8
-8*6
73/4 -8*4
7*4 - 7 %
8*4 9
8*4-9
8*4-9*4
9 -10
834-10
8*6-9*4
3.40
3.41
3.31
3.33
2.87
2.78
3.38
2.91
2.70
2.57
2.36
2.11
7.00
6.95
6.57
6.43
5.81
5.50
6*6-7*4
6H6-6*4
5H -6
5
-5*6
4 H -5
4*6 -41*16
75/6-8%
7 -8
6?4-734
6*6-7*6
6*6 7
6 -6*6
Prime
commercial paper
Day-to-day ; L o J n | u P
mone
y 1 months
Call
Discounted money
bills
overnight
&%- 9%
6*4-8*4
6*4-8*4
6*6-8*4
7 -9
7 -9
7 -9
4*6-6*6
4*6-6*6
4*6-6*6
4*6-6*6
4*6-6*6
4*6-6*6
5.84-6.21
5. 66-5.84
5.66-5.84
5.48-5.66
5.48-5.66
5.48-5. 66
2.37
2.92
3.10
3.65
3.29
3.29
8M-10
83/4-10*4
824-10*4
9 -10*4
8*6- 934
8*6- 9%
7 -8*4
7 -8
6%-8
7*4-8
6*6-734
7 -7*6
4*6-61/2
4*6-6*6
5*6-7
5*6-7
5*6-7
5*6-7
5.48-5.66
5.48
5.48
5.48
5.48
5.48
3.10
3.10
2.92
3.47
3.47
3.10
7*6-10
7 - 9*4
63/4- 8*6
6*6- 814
5£6- 8
6*6-7*6
5*6-63/4
5*6-6*6
5 -6*6
4%-6
4*6-6
4*6-6
4 -6
3*6-5*6
3*6-5*6
5.48
5.48
5.48
5.48
5.48
2.74
3.83
3.83
3.65
3.10
72675/67->68*6-
85/s
8*6
8*6
9
85/6- 91/2
NOTE.—For sources used, methods of quotation, and back figures, see BULLETIN for November, 1926, April, 1927, July, 1929, November, 1929, and
May, 1930.
515
FEDERAL RESERVE BULLETIN
AUGUST, 1930
FOREIGN EXCHANGE RATES
[Monthly averages of daily quotations. 1 In cents per unit of foreign currency]
Country
Monetary unit
1930
Par
of ex
change
May
14. 0864 14. 0898
13.9541 13. 9529
.7219
.7208
2.9634 2,9655
26. 7556 26. 7556
Country
June
Monetary unit
July
EUROPE
1930
Par
of exchange
June
July
96.48 87. 2153
36.50 36. 5000
11.8349
11.
12.17 12. 0746
97.33 96. 4962
20.00 20. 0000
s 40. 00 8 400.0000
103. 42 92. 2102
19. 30 19.1300
84. 4773
36.1000
11. 3983!
12. 0777
96. 6328
20. 0000
38. 2500!
89.1731
18. 9748
82.0511
36.0000
10.8752
12. 0908
96. 5542
20.0000
37. 6923
85.4430
19.0000
32. 0607
44.6901
31.8181
35. 7697J
36. 0567
49. 3809
40. 23851
55. 8892|
26. 5046
37. 0400
26. 3800
31. 1427
35. 9971
49. 4070
40. 2292
55. 9132
26. 6238
36.9428
26.4839
31.1799
36.0598
49. 3597
40. 2565
55. 9408
May
SOUTH AMERICA
Austria
Belgium
Bulgaria
Czechoslovakia.
Denmark
Schilling
Belga
Lev
Crown
Krone
14.07
13.90
.72
| 2.96
I 26.80
England. _
Finland..
France
GermanyGreece
Hungary..
Pound
Markka
Franc
Reichsmark
Drachma
Pengo
Italy
Netherlands
Norway
Poland
Portugal
Lira
Florin
Krone
Zloty
Escudo
Rumania
Russia 2
Spain
Sweden
Switzerland
Yugoslavia..
Leu
Chervonetz
Peseta
Krona
Franc
Dinar
486. 65 485. 9675 485. 866' 486. 5691
2.52
2. 5172 2. 5172
2. 5173
3.92
3. 9222 3. 9241
3. 9343
23.82 23.
8627 23. 8498 23.8693
1.30
1. 2960 1. 2955
1. 2961
17.49 17.
4772 17. 4820 17.5117
I 5.26
5. 2414 5. 2380
5. 2383
j 40.20 40. 2255 40.1991 40. 2375
j 26.80 26. 7570 26. 7634 26.7913
I 11.22 11. 2020 11.2010 11.2085
! 108.05 4. 5013 4. 4983
4.4947
; .60
.5947
.5953
. 5955
I 514.60 3 515.00003 515.0000 3 515.0000
j 19.30 12. 2283 11. 7490 11. 5243
26.80 26. 8342 26.
26.8837
19.30 19. 3550 19.3669
19.4279
1. 7669 1. 7661
19.30
1.7704
14.1073
13.9754
.7218
2. 9658
26.7914
Argentina
Bolivia 2
Brazil
Chile
Colombia2
Ecuador
Peru 2
Uruguay
Venezuela 2
Peos.
Boliviano.
Milreis
Peso.
do__
Sucre
Sols
Peso
Bolivar_
ASIA
China 44
___.
China 4
China
Hong Kong 4__.
India
Japan2
Java
Straits Settlements.
Turkey
Mexican dollar. _
Shanghai t a e l . . .
Yuan dollar
Dollar
Rupee
Yen
Florin
Singapore dollar.
Turkish pound. _
27. 23
37. 54
26.63
27.03
36. 50
49. 85
40. 20
56. 78
439. 65
7
47. 0823 8 47. 0542
9
46. 9862
AFRICA
Egypt
Egyptian pound 494. 31 7 498. 67893 498. 6854 9 498. 3372
NORTH AMERICA '
Canada
Cuba
Mexico
DollarPeso
do_
100. 00 99. 8360 99. 9913 100.0697
100. 00 100. 0032 99.9403 99.9092
49.
47. 5356 47. 4135 47.1287
1
2
3
4
Based on noon buying rates for cable transfers in New York.
Averages based on daily quotations of closing rates as published by New York Journal of Commerce.
Chervonetz quotations nominal.
Silver currency. The figure given for parity represents gold value of unit in July, 1930, computed by multiplying silver content of unit by
New York average price of silver for July, 1930, which was $0.34656 per fine ounce. On the same basis, parity in July, 1929, for the Chinese-Mexican
dollar
was 41.50 cents; for the Shanghai tael, 57.22 cents; for the Yuan dollar, 40.59 cents; and for the Hong Kong dollar, 41.20 cents.
5
Monetary law of February 10, 1930.
6
Rate for Peruvian pound.
7 March, 1930.
s April, 1930.
« May, 1930.
Back figures.—See BULLETIN for January, 1930, 1929, and 1928
516
FEDERAL RESERVE BULLETIN
AUGUST, 1930
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES—ALL COMMODITIES
Canada
United States
Germany
France
England
Italy
Japan
Month
1929
January
February
March
April
May
June
July
August
September
October
November
December
__.
1930
97
97
98
97
96
96
98
98
98
96
94
94
93
92
91
91
89
87
Australia
1929
January
February
March
April
May
June
July
Aucust
September
October _
November
December
-
1930
157
156
157
158
156
158
159
160
163
161
158
154
_
151
147
144
146
148
Egypt
1929
January
February
March
April
May
June
July
August
September
October
November
December
.
-
109
106
101
101
101
100
Peru
1929
January
February .
March
April
May
June
July
August
September
October.
November
December
...
.
_..
_ __
186
185
189
185
186
186
187
187
186
186
184
182
1930
94
95
96
95
'93
'94
96
98
97
97
96
96
96
94
92
92
90
88
r
Austria
1929
1930
125
123
121
119
118
121
128
130
133
134
135
134
132
132
128
127
125
123
1929
94
93
92
92
90
90
181
181
180
179
179
178
1929
98
99
99
98
95
95
96
95
94
93
95
92
138
138
140
139
136
136
137
136
136
136
134
133
131
128
125
124
122
121
1929
1930
867
865
869
862
851
848
858
850
846
838
834
823
1929
808
791
774
111
774
750
1930
132
136
136
135
123
122
119
114
109
111
107
107
1930
88
85
85
89
86
1929
177
177
178
179
180
181
180
180
181
182
181
182
1929
657
660
654
648
643
629
624
598
608
607
603
596
1930
576
567
558
548
r
546
540
-
-.
106
104
100
96
96
1929
182
170
175
174
174
173
186
1929
145
144
143
140
139
138
142
143
143
140
137
134
1929
1930
131
126
125
123
121
116
Africa
1930
135
121
131
117
129
128
1930
139
139
140
137
136
135
138
138
138
137
136
134
132
129
126
127
126
125
1929
1930
139
139
141
141
137
134
135
134
132
131
130
128
126
124
122
121
120
119
Netherlands
India
South
1930
1930
160
162
164
161
162
163
163
165
167
168
165
165
1929
Czechoslovakia
China
Russia
Poland
1930
1930
Hungary
1930
100
100
100
99
98
98
97
97
96
96
95
95
1929
Belgium
Finland
1930
125
122
123
120
114
108
109
112
113
115
112
110
1929
1929
1930
131
126
122
122
118
146
146
147
144
142
141
141
142
141
140
137
135
Spain
1929
171
173
174
174
171
170
169
170
171
172
171
172
1929
1930
417
408
400
396
390
382
461
463
461
455
452
447
440
437
437
436
431
425
Denmark
1929
1930
151
159
154
150
148
146
149
150
150
149
147
146
143
140
136
135
132
130
New Zealand
1929
1930
155
155
154
154
155
155
155
155
155
155
156
156
157
156
155
154
172
172
172
172
1929
144
145
144
141
140
139
140
141
140
138
135
134
1930
228
226
226
225
223
222
220
218
218
216
211
205
201
199
196
193
189
181
Dutch East
Indies
1929
1930
149
149
150
148
150
149
149
148
148
147
146
144
143
141
139
138
Norway
1929
149
150
150
148
146
147
149
148
148
147
146
146
1930
144
143
142
141
140
139
Switzerland
Sweden
1930
1929
1930
131
128
125
124
123
1929
143
143
142
140
139
139
143
143
142
142
140
139
1930
136
133
131
129
128
126
NOTE.—All of the indexes shown, with two or three exceptions, are compiled by official agencies in the countries to which they relate, as indicated specifically in the BULLETIN for March (p. 124), where references are also given to sources in which currentfiguresof the index numbers may
be found.
The base periods are as follows: United States—1926; Australia—July, 1914; Austria—January-July, 1914; Belgium—April, 1914; Canada—1926;
China—February, 1913; Czechoslovakia—July, 1914; Denmark—1913; Dutch East Indies—1913; Egypt—January 1, 1913-July 31, 1914; England—1913
Finland—1926; France—1913; Germany—1913; Hungary—1913; India—July, 1914; Italy—1913; Japan—October, 1900; Netherlands—1913; New Zealand—
1909-1913; Norway—December 31, 1913-June 30, 1914; Peru—1913; Poland—1927; Russia—1913; South Africa—1910; Spain—1913; Sweden—1913Switzerland—July, 1914.
'
r
Annual indexes for the years 1925-1929 and in certain cases for 1913 and 1914 were given in the BULLETIN for April (p. 256).
Revised.
AUGUST,
517
FEDERAL RESERVE BULLETIN
1930
WHOLESALE PRICES—GROUPS OF COMMODITIES
Other commodities
UNITED STATES (1926 =
100)
All com- Farm
modities products
Total»
93 |
103
102
101
98
95
96
93
89
1929—June
December
1930—January..
FebruaryMarch
April
May
June
HouseHides
and Metals
Building Chemiand
and
Textile Fuel
Miscellighting metal
and furnishing laneous
leather products materials
materials cals
drugs
products
goods
products
Foods
99
97
96
94
95
92
91
93 I
91 |
90 |
107
105
104
103
103
103
102
90 i
90
89
88
87
86
85
82
81
80
79
77
78
78
76
105
102
101
101
101
99
97
95
ENGLAND (1913=100)
1929—June
December
1930—January..
February.
March
April
May
June
Meat
Cereals and
fish
Total
Other
foods
132
129
122
114
117
114
111
141
139
135
129
129
127
127
158
154
152
145
141
136
135
Iron
and
steel
FRANCE (1913=100)
Hides ChemiMinerals
and
Textiles
and cal prod- Rubber Paper
metals
ucts
leather
Cement
and
brick,
etc.
135
135
133
131
130
132
137
1929—June
December.
1930—January. _
February.
March
April
May
June
629
584
596
576
567
558
548
•-546
540
546
512
503
495
481
'483
488
Total
565 I
614
695
647
634
622
599
-570
587
Coal
131
115
121
128
127
124
122
121
119
117
115
115
115
115
114
114
114
130
130
129
127
122
119
117
456 I
432 i
424
419 !
411
431 ,
428
560
568
571 |
570 i
562
551
547
542
640
630
623
612
606
601
585
758
684
655
639
621
620
615
583
450
586
433
438
439
425
405
405
390
603
602
613
607
598
592
593
1929—June
December.
1930—January __
February.
March
April
May
June
All commodities
134
132
129
126
127
126
125
Total
126
122
116
110
112
111
110
Vegetable
foods
120
120
117
112
109
118
119
118
Cattle
126
128
123
116
113
110
109
Animal
products
146
134
129
118
Fodder
Provisions
122
105
115
115
115
118
118
117
115
no
109
no
Total
129
128
127
126
125
124
122
Industrial raw and semifinished products—Continued
Textiles
1929—June
December
1930—January..
February.
March
April
May
June
141
128
125
118
114
116
116
111
Hides
and
leather
123
116
116
114
111
110
111
112
Chemicals
Artificial Technical
and Rubber
fertilizers oilsfats
126
97
89
94
90
86
81
74
130
128
127
126
127
135
134
Coal1
Iron
136
130
138
138
138
138
136
136
135
130
130
129
129
128
128
126
Nonferrous
metals
118
112
112
111
109
103
90
87
Industrial finished products
Paper
materials Building
and paper material
151
127 i
127
127 !
127 I
127
126
126 :
144
141
134
131
131
.130
126
Industrial raw and semifinished products
Agricultural products
GERMANY (1913 = 100)
118
111
110
110
107
104
95
93
Industrial products
Animal Vegetable
products products
Total
Other
minerals Cotton
and
metals
Miscel-
Farm and food products
| All com
jmodities
92
91
91
90
Wool
Total
132
136
133
131
128
125
124
122
121
97
97
97
97
96
96
90
Industrial products
Foods
All commodities
97
93
94
93
92
91
91
90
89
96
96
96
96
95
95
93
90
Nonagricultural
commodities
151
151
150
150
149
147
145
161
158
158
157
157
156
153
Total
Producers'
goods
Consumers'
goods
158
138
172
156
156
155
153
152
152
151
140
140
139
139
139
139
138
169
168
166
163
162
161
161
NOTE.—Annual indexes for the groups shown in the table are given for the years 1913 and 1925-1929 in the BULLETIN for April (p. 257). Original sources for these indexes are: United States—Wholesale Prices of Commodities, Bureau of Labor Statistics, Department of Labor; England—
Board of Trade Journal and Commercial Gazette, Board of Trade; France—Bulletin de la Statistique G§n§rale de la France, Supplement Mensuel,
Statistique GSnSrale de la France; and Germany—Wirtschaft und Statistik, Statistisches Reichsamt.
1
The index for other commodities, recently published by the Bureau of Labor Statistics, includes the prices of articles In the all-commodities
index with the exception of those for farm products and foods; the nonagrieultural index omits merely farm products.
•" Revised.
518
FEDERAL RESERVE BULLETIN
AUGUST, 1930
LAW DEPARTMENT
Amendment to law with reference to the election of
directors of Federal reserve banks.
[PUBLIC—No. 435—71ST
CONGRESS]
[S. 3627]
There is published below the text of an act of
Act To amend the Federal Reserve Act so as to enable national
Congress, approved June 26, 1930, amending Anbanks
voluntarily to surrender the right to exercise trust powers and
to
relieve themselves of the necessity of complying with the laws
section 4 of the Federal reserve act with
governing banks exercising such powers, and for other purposes
reference to the election of directors of Federal
it enacted by the Senate and House of Representatives
reserve banks. This amendment merely clari- of Be
the United States of America in Congress assembled,
fies an ambiguity in existing law.
That subsection (k) of section 11 of the Federal Reserve
[PUBLIC—No. 437—71ST CONGRESS]
[S. 4096]
An Act To amend section 4 of the Federal Reserve Act
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4 of the Federal Reserve Act, as
amended (U. S. C , title 12, sec. 304), be further
amended by striking out that paragraph thereof
which reads as follows:
"Any candidate having a majority of all votes cast
in the column of first choice shall be declared elected.
If no candidate have a majority of all the votes in the
first column, then there shall be added together the
votes cast by the electors for such candidates in the
seeond column and the votes cast for the several
candidates in the first column. If any candidate then
have a majority of the electors voting, by adding together the first and second choices, he shall be declared
elected. If no candidate have a majority of electors
voting when the first and second choices shall have
been added, then the votes cast in the third column for
other choices shall be added together in like manner,
and the candidate then having the highest number of
votes shall be declared elected. An immediate report
of election shall be declared."
and by inserting in lieu thereof the following:
"Any candidate having a majority of all votes cast
in the column of first choice shall be declared elected.
If no candidate have a majority of all the votes in the
first column, then there shall be added together the
votes cast by the electors for such candidates in the
second column and the votes cast for the several
candidates in the first column. The candidate then
having a majority of the electors voting and the highest
number of combined votes shall be declared elected.
If no candidate have a majority of electors voting and
the highest number of votes when the first and second
choices shall have been added, then the votes cast in
the third column for other choices shall be added
together in like manner, and the candidate then having
the highest number of votes shall be declared elected.
An immediate report of election shall be declared."
Approved, June 26, 1930.
Amendment to law regarding surrender of trust powers
by national banks.
There is published below the text of an act
of Congress, approved June 26, 1930, amending
section 11 (k) of the Federal reserve act so as to
authorize national banks under certain circumstances to surrender their right to exercise trust
powers:
Act (subsection (k) of section 248, United States Code,
title 12), as amended, be further amended.by adding
at the end thereof a new paragraph reading as
follows:
"Any national banking association desiring to
surrender its right to exercise the powers granted under
this subsection, in order to relieve itself from the
necessity of complying with the requirements of this
subsection, or to have returned to it any securities which
it may have deposited with the State authorities for
the protection of private or court trusts, or for any other
purpose, may file with the Federal Reserve Board a
certified copy of a resolution of its board of directors
signifying such desire. Upon receipt of such a resolution, the Federal Reserve Board, after satisfying itself
that such bank has been relieved in accordance with
State law of all duties as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates,
assignee, receiver, committee of estates of lunatics or
other fiduciary, under court, private, or other appointments previously accepted under authority of this
subsection, may, in its discretion, issue to such bank a
certificate certifying that such bank is no longer
authorized to exercise the powers granted by this
subsection. Upon the issuance of such a certificate by
the Federal Reserve Board, such bank (1) shall no
longer be subject to the provisions of this subsection or
the regulations of the Federal Reserve Board made
pursuant thereto, (2) shall be entitled to have returned
to it ^ny securities which it may have deposited with the
State* authorities for the protection of private or court
trusts, and (3) shall not exercise thereafter any of the
powers granted by this subsection without first applying for and obtaining a new permit to exercise such
powers pursuant to the provisions of this subsection.
The Federal Reserve Board is authorized and empowered to promulgate such regulations as it may deem
necessary to enforce compliance with the provisions of
this subsection and the proper exercise of the powers
granted therein.'*
Approved, June 26, 1930.
Amendment to law regarding cost of examinations of
member banks.
There is published below the text of an act
of Congress, approved June 26, 1930, amending the seventh paragraph of section 9 of the
Federal reserve act and section 5240 of the
United States Revised Statutes with reference
to the assessment of costs of examinations
against member banks of the Federal reserve
system:
FEDERAL RESERVE BULLETIN
AUGUST, 1930
[PUBLIC—No. 434—71ST CONGRESS]
[S. 4851
An Act To amend section 9 of the Federal Reserve Act and section 5240
of the Revised Statutes of the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the seventh paragraph of section 9 of the
Federal Reserve Act, as amended (U. S. C , title 12,
sec. 326), is further amended by striking out the last
sentence thereof and inserting the following:
"The expenses of all examinations, other than those
made by State authorities, may, in the discretion of
the Federal Reserve Board, be assessed against the
banks examined and, when so assessed, shall be paid
by the banks examined. Copies of the reports of such
519
examinations may, in the discretion of the Federal
Reserve Board, be furnished to the State authorities
having supervision of such banks, to officers, directors, or receivers of such banks, and to any other
proper persons."
SEC. 2. That section 5240, United States Revised
Statutes, as amended by section 21 of the Federal
Reserve Act, is further amended in the third paragraph thereof (U. S. C , title 12, sec. 483) by striking
out the second sentence of such paragraph and inserting in lieu thereof the following:
"The expense of such examinations may, in the
discretion of the Federal Reserve Board, be assessed
against the banks examined, and, when so assessed,
shall be paid by the banks examined."
Approved, June 26, 1930.
REGULATIONS OF THE FEDERAL RESERVE BOARD
Amendment to Regulation A regarding rediscounts by
Federal reserve banks.
The Federal Reserve Board recently adopted
a number of amendments to its Regulation A
with regard to rediscounts by Federal reserve
banks. These amendments which are effective
on August 1, 1930, were adopted so as to make
the provisions of the regulations conform to
certain recent amendments to the law, as
follows:
1. In subsection (d) of Section I so as to
conform to the act of April 12, 1930, which
amended the fourth paragraph of section 13
of the Federal reserve act so as to permit
Federal reserve banks to rediscount for member banks the same amount of paper of any
one borrower which a national bank is permitted to acquire from a single borrower under
the terms of section 5200 of the Revised
Statutes as amended by the McFadden Act.
2. In Section VII so as to conform to the
act of May 29, 1928, which amended the third
paragraph of section 13 so as to permit the
rediscount of sight drafts (a) when drawn to
cover the shipment of nonagricultural, nonperishable, readily marketable staples as well
as nonperishable, readily marketable, staple
agricultural products, and (b) when drawn to
finance the exportation of such staples as well
as the domestic shipment thereof.
3. To conform to the provisions of the act
of June 17, 1929, authorizing the issuance of
Treasury bills, by substituting " obligations of
the Government of the United States" wherever the regulation previously contained the
words ' 'bonds and notes of the Government of
the United States" or "bonds or notes of the
United States," and adding a definition of the
first phrase by footnote.
Regulation A as thus amended reads as
follows:
REGULATION A, SERIES OF 1930
(Superseding Regulation A of 1928)
DISCOUNTS UNDER SECTIONS 13 AND 13a
ARTICLE A.—NOTES, DRAFTS, AND BILLS OF E X CHANGE
SECTION I.—General statutory provisions
Any Federal reserve bank may discount for any of
its member banks any note, draft, or bill of exchange:
Provided—
(a) It has a definite maturity at the time of discount
of not more than 90 days, exclusive of days of grace;
except that (1) if drawn or issued for an agricultural
purpose or based on livestock, it may have a maturity
at the time of discount of not more than nine months,
exclusive of days of grace, and (2) certain bills of exchange payable at sight or on demand are eligible even
though they have no definite maturity (see Section
VII, below);
(6) It has been issued or drawn for an agricultural,
industrial, or commercial purpose, or the proceeds have
been used or are to be used for such a purpose, or it is a
note, draft, or bill of exchange of a factor issued as such
making advances exclusively to producers of staple
agricultural products in their raw state;
(c) It was not issued or drawn for the purpose of
carrying or trading in stocks, bonds, or other investment securities, except obligations of the Government
of the United States; i
(d) The aggregate of notes, drafts, and bills upon
which any person, copartnership, association, or corporation is liable as maker, acceptor, indorser, drawer,
or guarantor, rediscounted for any member bank, shall
at no time exceed the amount for which such person,
copartnership, association, or corporation may lawfully become liable to a national banking association
under the terms of section 5200 of the Revised Statutes,
as amended;
i When used in this regulation, the words "obligations of the Government of the United States" shall be construed to include only bonds,
notes, certificates of indebtedness and Treasury bills of the Government
of the United States.
520
FEDERAL RESERVE BULLETIN
AUGUST, 1930
member bank, in form to be prescribed by the Federal
reserve bank, that—
(1) To the best of its knowledge and belief, such
notes, drafts, or bills of exchange have been issued or
drawn, or the proceeds thereof have been or are to be
used, for such a purpose as to render them eligible
for discount under the terms of this regulation, and
(2) That such notes, drafts, or bills of exchange
have not been acquired from a nonmember bank, or,
if so acquired, that the applying member bank has
received permission from the Federal Reserve Board to
discount with the Federal reserve bank paper acquired
from nonmember banks.
In the case of a member State bank or trust company,
every such application must contain a certificate or
guaranty to the effect that the borrower is not liable,
and will not be permitted to become liable during the
time his paper is held by the Federal reserve bank, to
SECTION II.—General character of notes, drafts, and bills such bank or trust company for borrowed money in an
of exchange eligible
amount greater than that which could be borrowed
The Federal Reserve Board, exercising its statutory lawfully from such State bank or trust company
right to define the character of a note, draft, or bill of were it a national banking association.
exchange eligible for discount at a Federal reserve bank
SECTION IV.—Promissory notes
has determined that—
(a) It must be a negotiable note, draft, or bill of
(a) Definition.—A promissory note, within the
exchange which has been issued or drawn, or the pro- meaning of this regulation, is defined as an uncondiceeds of which have been used or are to be used in the tional promise, in writing, signed by the maker, to
first instance, in producing, purchasing, carrying, or pay, in the United States, at a fixed or determmable
marketing goods 2 in one or more of the steps of the future time, a sum certain in dollars to order or to
process of production, manufacture, or distribution, or bearer.
for the purpose of carrying or trading in obligations of
(b) Evidence of eligibility and requirement of
the Government of the United States, and the name statements.—A Federal reserve bank must be satisfied
of a party to such transaction must appear upon it as by reference to the note or otherwise that it is eligible
maker, drawer, acceptor, or indorser.
for discount, and the member bank shall certify in its
(6) It must not be a note, draft, or bill of exchange application whether a financial statement of the
the proceeds of which have been or are to be advanced borrower is on file with it.
or loaned to some other borrower, except as to paper
A recent financial statement of the borrower must
described below under Sections VI (b) and VIII.
be on file with the member bank if it has discounted the
(c) It must not be a note, draft, or bill of exchange note for a nondepositor or a nonmember bank, and in
the proceeds of which have been used or are to be used all other cases unless—•
for permanent or fixed investments of any kind,
(1) It is secured by a warehouse, terminal, or other
such as land, buildings, or machinery, or for any other similar receipt covering goods in storage, by a valid
capital purpose.
prior lien on livestock which is being marketed or
{d) It must not be a note, draft, or bill of exchange fattened for market, or by obligations of the Governthe proceeds of which have been used or are to be used ment of the United States; or
for investments of a purely speculative character.
(2) The aggregate of obligations of the borrower
(e) It may be secured by the pledge of goods or discounted and offered for discount at the Federal
collateral of any nature, including paper which is reserve bank by the member bank is less than a sum
ineligible for discount, provided it (the note, draft, equal to 10 per cent of the paid-in capital of the member
or bill of exchange) is otherwise eligible.
bank and is less than $5,000.
Whenever the borrower has closely affiliated or
SECTION III.—Applications for discount
subsidiary corporations or firms, the borrower's
Every application for the discount of notes, drafts, financial statement shall be accompanied by separate
or bills of exchange must contain a certificate of the financial statements of such affiliated or subsidiary
corporations or firms, unless the statement of the
2 When used in this regulation the word' 'goods" shall be construed to
include goods, wares, merchandise, or agricultural products, including borrower clearly indicates that such note is both eligible
livestock.
from a legal standpoint and acceptable from a credit
(e) It is indorsed by a member bank; and
(/) It conforms to all applicable provisions of this
regulation.
No Federal reserve bank may discount for any member State bank or trust company any of the notes,
drafts, or bills of exchange of any one borrower who is
liable for borrowed money to such State bank or trust
company in an amount greater than that which could
be borrowed lawfully from such State bank or trust
company were it a national banking association.
Any Federal reserve bank may make advances to its
member banks on their promissory notes for a period
not exceeding 15 days, provided that they are secured
by notes, drafts, bills of exchange, or bankers' acceptances which are eligible for discount or for purchase by
Federal reserve banks, or by the deposit or pledge of
obligations of the Government of the United States.
AUGUST, 1930
FEDERAL RESERVE BULLETIN
521
standpoint or unless financial statements of such issued or drawn for an agricultural purpose, if the
affiliated or subsidiary corporations or firms are on proceeds thereof have been or are to be—
file with the Federal reserve bank.
(1) Advanced by such association to any memA Federal reserve bank shall use its discretion in
bers thereof for an agricultural purpose; or
taking the steps necessary to satisfy itself as to eligi(2) Used by such association in making paybility. Compliance of a note with Section II (c) may
ments to any members thereof on account of
be evidenced by a statement of the borrower showing a
agricultural products delivered by such members
reasonable excess of quick assets over current liabilities.
to the associations; or
A Federal reserve bank may, in any case, require the
(3) Used by such association to meet expendifinancial statement of the borrower to be filed with it.
tures incurred or to be incurred by the association
in connection with the grading, processing, packSECTION V.—Drafts, bills of exchange, and trade
ing, preparation for market, or marketing of any
acceptances
agricultural product handled by such association
for any of its members.
(a) Definition.—A draft or bill of exchange, within
These are not the only classes of paper of such
the meaning of this regulation, is defined as an unconditional order in writing, addressed by one person to associations which are eligible for discount, however,
another, signed by the person giving it, requiring the and any other paper of such associations which comperson to whom it is addressed to pay in the United plies with the applicable requirements of this regulaStates, at a fixed or determinable future time, a sum tion may be discounted on the same terms and condicertain in dollars to the order of a specified person; tions as the paper of any other person or corporation.
Paper of cooperative marketing associations the
and a trade acceptance is defined as a draft or bill of
exchange, drawn by the seller on the purchaser of proceeds of which have been or are to be used (1) to
defray the expenses of organizing such associations,
goods sold,3 and accepted by such purchaser.
(b) Evidence of eligibility and requirement of state- or (2) for the acquisition of warehouses, for the purments.—A Federal reserve bank shall take such steps chase or improvement of real estate, or for any other
as it deems necessary to satisfy itself as to the eligi- permanent or fixed investment of any kind, are not
bility of the draft, bill, or trade acceptance offered for eligible for discount, even though such warehouses or
discount and may require a recent financial statement other property are to be used exclusively in connection
of one or more parties to the instrument. The draft, with the ordinary operations of the association.
(c) Eligibility.—To be eligible for discount, agriculbill, or trade acceptance should be drawTn so as to
tural
paper, whether a note, draft, bill of exchange, or
evidence the character of the underlying transaction,
but if it is not so drawn evidence of eligibility may trade acceptance, must comply with the respective
consist of a stamp or certificate affixed by the acceptor sections of this regulation which would apply to it if
or drawer in a form satisfactory to the Federal reserve its maturity were 90 days or less.
(d) Discounts for Federal intermediate credit banks.—
bank.
Any Federal reserve bank may discount agricultural
SECTION VI.—Agricultural paper
paper for any Federal intermediate credit bank; but
(a) Definition.—Agricultural paper, within the mean- no Federal reserve bank shall discount for any Federal
ing of this regulation, is defined as a negotiable note, intermediate credit bank any such paper which bears
draft, or bill of exchange issued or drawn, or the pro- the indorsement of any nonmember State bank or trust
ceeds of which have been or are to be used, for agricul- company which is eligible for membership in the Federal
tural purposes, including the production of agricultural reserve system under the terms of section 9 of the Federal
products, the marketing of agricultural products by Reserve Act as amended. In discounting such paper
the growers thereof, or the carrying of agricultural each Federal reserve bank shall give preference to the
products bjr the growers thereof pending orderly mar- demands of its own member banks and shall have due
keting, and the breeding, raising, fattening, or market- regard to the probable future needs of its own member
ing of livestock, and which has a maturity at the time banks. Except with the permission of the Federal
of discount of not more than nine months, exlusive of Reserve Board, no Federal reserve bank shall discount
paper for any Federal intermediate credit bank when
days of grace.
(b) Paper of cooperative marketing associations.— its own reserves amount to less than 50 per cent of its
Under the express terms of section 13a, notes, drafts, own aggregate liabilities for deposits and Federal
bills of exchange, or acceptances issued or drawn by reserve notes in actual circulation. Except with the
cooperative marketing associations composed of pro- permission of the Federal Reserve Board, the aggregate
ducers of agricultural products are deemed to have been amount of paper discounted by all Federal reserve banks
for any one Federal intermediate credit bank shall at
3 A consignment of goods or a conditional sale of goods can not be no time exceed an amount equal to the paid-up and
considered "goods sold" within the meaning of this clause. The purunimpaired capital and surplus of such Federal interchase price of goods plus the cost of labor in effecting their installation
may be included in the amount for which the trade acceptance is drawn. mediate credit bank.
522
FEDERAL RESERVE BULLETIN
AUGUST, 1930
such paper for rediscount and shall state fully the facts
which gave rise to each application and the reasons
why the applying member banks feel justified in
seeking such permission. Such applications shall be
addressed to the Federal Reserve Board, but shall be
filed with the Federal reserve agent, who shall forward them promptly to the Federal Reserve Board
with his recommendations.
(c) The Federal Reserve Board hereby grants its
permission for Federal reserve banks to discount for
member banks paper bearing the signature or indorsement of Federal intermediate credit banks, if such
SECTION VII.—Sight drafts secured by bills of lading paper is otherwise eligible under the law and this
A Federal reserve bank may discount for any of its regulation.
member banks bills of exchange payable at sight or
ARTICLE B.—BANKERS' ACCEPTANCES 4
on demand which—
(a) Grow out of the domestic shipment or the exportSECTION X.—Definition
ation of nonperishable, readily marketable staples; and
A
banker's
acceptance
within the meaning of this
(6) Are secured by bills of lading or other shipping
regulation
is
defined
as
a
draft or bill of exchange,
documents conveying or securing title to such staples.
All such bills of exchange shall be forwarded promptly whether payable in the United States or abroad and
for collection, and demand for payment shall be made whether payable in dollars or some other money, of
promptly, unless the drawer instructs that they be held which the acceptor is a bank or trust company, or a
until arrival of car, in which event they must be firm, person, company, or corporation engaged generally
presented for payment within a reasonable time after in the business of granting bankers' acceptance credits.
notice of arrival of such staples at their destination
SECTION XI.—Eligibility
has been received. In no event shall any such bill be
A Federal reserve bank may discount any such bill
held by or for the account of a Federal reserve bank for
bearing the indorsement of a member bank and having
a period in excess of 90 days.
In discounting such bills Federal reserve banks may a maturity at the time of discount not greater than that
compute the interest to be deducted on the basis of prescribed by Section XII (a), which has been drawn
the estimated life of each bill and adjust the amount thus under a credit opened for the purpose of conducting or
deducted after payment of such bills to conform settling accounts resulting from a transaction or transactions involving any one of the following:
to the actual life thereof.
(1) The shipment of goods between the United
SECTION VIII.—Factors' paper
States and any foreign country, or between the
United States and any of its dependencies or
Notes, drafts, and bills of exchange of factors issued
insular possessions, or between foreign countries,
as such for the purpose of making advances exclusively
or between dependencies or insular possessions
to producers of staple agricultural products in their
and foreign countries;
raw state are eligible for discount with maturities not
(2) The shipment of goods within the United
in excess of 90 days, exclusive of days of grace, irreStates, provided shipping documents conveying
spective of the requirements of Sections II (a) and II (6)
security title are attached at the time of accepSECTION IX.—Paper acquired from nonmember banks
tance; or
(3) The storage in the United States or in any
(a) Except with the permission of the Federal Reforeign country of readily marketable staples, 5
serve Board, no Federal reserve bank shall discount
provided that the bill is secured at the time of
any paper acquired by a member bank from a nonacceptance by a warehouse, terminal, or other
member bank or bearing the signature or indorsement
similar receipt, conveying security title to such
of a nonmember bank; except that Federal reserve
staples, issued by a party independent of the cusbanks may discount bankers' acceptances and other
eligible paper bearing the signature or indorsement
4
For regulations governing the acceptance by member banks of drafts
of a nonmember bank, if such paper was bought by and bills of exchange drawn on them, see Regulation C.
5
the offering bank in good faith on the open market
A readily marketable staple within the meaning of these regulations
may be denned as an article of commerce, agriculture, or industry of such
from some party other than the nonmember bank.
(b) Applications for permission to rediscount paper uses as to make it the subject of constant dealings in ready markets with
such frequent quotations of price as to make (a) the price easily and
acquired from nonmember banks shall be made in definitely ascertainable and (b) the staple itself easy to realize upon by
writing by the member banks which desire to offer sale at any time.
(e) Limitations.—The Federal Reserve Board prescribes no limitations on the aggregate amount of notes,
drafts, bills of exchange, and acceptances with maturities in excess of three months, but not exceeding six
months, exclusive of days of grace, which may be
discounted by any Federal reserve bank; but the aggregate amount of notes, drafts, bills of exchange, and
acceptances with maturities in excess of six months,
but not exceeding nine months, which may be discounted by any Federal reserve bank shall not exceed
10 per cent of its total assets.
FEDERAL RESERVE BULLETIN
AUGUST, 1930
tomer or issued by a grain elevator or warehouse
company duly bonded and licensed and regularly
inspected by State or Federal authorities with
whom all receipts for such staples and all transfers
thereof are registered and without whose consent
no staples may be withdrawn; and provided
further that the acceptor remains secured throughout the life of the acceptance. In the event that
the goods must be withdrawn from storage prior
to the maturity of the acceptance or the retirement of the credit, a trust receipt or other similar
document covering the goods may be substituted
in lieu of the original document, provided that such
substitution is conditioned upon a reasonably
prompt liquidation of the credit. In order to
insure compliance with this condition it should be
required, when the original document is released,
either (a) that the proceeds of the goods will be
applied within a specified time toward a liquidation of the acceptance credit or (6) that a new
document, similar to the original one, will be
resubstituted within a specified time.
Provided, That acceptances for any one customer in
excess of 10 per cent of the capital and surplus of the
accepting bank must remain actually secured throughout the life of the acceptance, and in the case of the
acceptances of member banks this security must
•consist of shipping documents, warehouse receipts, or
other such documents, or some other actual security
growing out of the same transaction as the acceptance,
such as documentary drafts, trade acceptances,
terminal receipts, or trust receipts which have been
issued under such circumstances, and which cover
goods of such a character, as to insure at all times a
continuance of an effective and lawful lien in favor of
the accepting bank, other trust receipts not being
considered such actual security if they permit the
•customer to have access to or control over the goods
A Federal reserve bank may also discount any bill
drawn by a bank or banker in a foreign country or
•dependency or insular possession of the United States
for the purpose of furnishing dollar exchange as provided in Regulation C, provided that it has a maturity
at the time of discount of not more than three months,
exclusive of days of grace.
SECTION XII.—Maturities
(a) Legal requirements.—No such acceptance is
eligible for discount which has a maturity at the time
of discount in excess of 90 days' sight, exclusive of days
of grace, except that acceptances drawn for agricultural purposes and secured at the time of acceptance by
warehouse receipts or other such documents conveying
or securing title covering readily marketable staples
may be discounted with maturities at the time of discount of not more than six months' sight, exclusive of
days of grace.
523
(b) General conditions as to maturity of domestic
acceptances.—Although a Federal reserve bank may
legally discount an acceptance having a maturity at
the time of discount not greater than that prescribed
under (a), it may decline to discount any acceptance
the maturity of which is in excess of the usual or customary period of credit required to finance the underlying transaction or which is in excess of that period
reasonably necessary to finance such transaction.
Since the purpose of permitting the acceptance of
drafts secured by warehouse receipts or other such
documents is to permit of the temporary holding of
readily marketable staples in storage pending a reasonably prompt sale, shipment, or distribution, no such
acceptance should have a maturity in excess of the time
ordinarily necessary to effect a reasonably prompt
sale, shipment, or distribution into the process of
manufacture or consumption.
SECTION XIII.—Evidence of eligibility
A Federal reserve bank must be satisfied, either by
reference to the acceptance itself or otherwise, that the
acceptance is eligible for discount under the terms
of the law and the provisions of this regulation. The
bill itself should be drawn so as to evidence the character of the underlying transaction, but if it is not so
drawn evidence of eligibility may consist of a stamp or
certificate affixed by the acceptor in form satisfactory
to the Federal reserve bank.
Amendment to Regulation J regarding check clearing
and collection
Effective September 1, 1930, the Federal
Reserve Board has amended its Regulation J,
which governs the clearing and collection of
checks through Federal reserve banks, to read
as follows:
REGULATION J, SERIES OF 1930
(Superseding Regulation J of 1929)
CHECK CLEARING AND COLLECTION
SECTION I.—Statutory provisions
Section 16 of the Federal reserve act authorizes the
Federal Reserve Board to require each Federal reserve
bank to exercise the function of a clearing house for
its member banks, and section 13 of the Federal reserve
act, as amended by the act approved June 21, 1917,
authorizes each Federal reserve bank to receive from
any nonmember bank or trust company, solely for the
purposes of exchange or of collection, deposits of current
funds in lawful money, national-bank notes, Federal
reserve notes, checks and drafts payable upon presentation, or maturing notes and bills, provided such
nonmember bank or trust company maintains with its
524
FEDERAL RESERVE BULLETIN
AUGUST, 1930
Federal reserve bank a balance sufficient to offset the SECTION IV.—Time schedule and availability of credits
items in transit held for its account by the Federal
(1) Each Federal reserve bank will publish a time
reserve bank.
schedule showing the time at which any item sent to it
will be counted as reserve and become available for
SECTION II.—General requirements
withdrawal or other use by the sending bank. For all
In pursuance of the authority vested in it under
checks received, the sending bank will be given imthese provisions of law, the Federal Reserve Board,
mediate credit, or deferred credit, in accordance with
desiring to afford both to the public and to the various
such time schedule, and as provided below.
banks of the country a direct, expeditious, and eco(2) For all such checks as are received for immediate
nomical system of check collection and settlement of
credit
in accordance with such time schedule, immediate
balances, has arranged to have each Federal reserve
bank exercise the functions of a clearing house and credit, subject to final payment, will be given upon the
collect checks for such of its member banks as desire books of the Federal reserve bank at full face value in
to avail themselves of its privileges and for such non- the reserve account or clearing account upon day of
member State banks and trust companies as may receipt, and the proceeds will at once be counted as
maintain with the Federal reserve bank balances reserve and become available for withdrawal or other
sufficient to qualify them under the provisions of use by the sending bank, provided, however, that the
section 13 to send items to Federal reserve banks for Federal reserve bank may in its discretion refuse at any
purposes of exchange or of collection. Such nonmem- time to permit the withdrawal or other use of credit
ber State banks and trust companies will hereinafter given for any item for which the Federal reserve bank
has not yet received payment in actually and finally
be referred to as nonmember clearing banks.
collected funds.
Each Federal reserve bank shall exercise the func(3) For all such checks as are received for deferred
tions of a clearing house and collect checks under the
credit
in accordance with such time schedule, deferred
general terms and conditions hereinafter set forth, and
each member bank and nonmember clearing bank credit, subject to final payment, will be entered upon
shall cooperate fully in the system of check clearance the books of the Federal reserve bank at full face
value, but the proceeds will not be counted as reserve
and collection for which provision is herein made.
nor become available for withdrawal or other use by
the sending bank until such time as may be specified
SECTION III.—Checks received for collection
in such time schedule,2 at which time credit will be
(1) Each Federal reserve bank will receive at par transferred from the deferred account to the reserve
from its member banks and from nonmember clearing account or clearing account subject to final payment
banks in its district, checks l drawn on all member and and will then be counted as reserve and become availnonmember clearing banks, and checks drawn on all able for withdrawal or other use by the sending bank,
other nonmember banks which are collectible at par Provided, however, That the Federal reserve bank may
in funds acceptable to the collecting Federal reserve in its discretion refuse at any time to permit the withbank.
drawal or other use of credit given for any item for
(2) Each Federal reserve bank will receive at par which the Federal reserve bank has not yet received
from other Federal reserve banks, and from all member payment in actually and finally collected funds.
and nonmember clearing banks in other Federal
SECTION V.—Terms of collection
reserve districts which are authorized to route direct for
the credit of their respective Federal reserve banks,
The Federal Reserve Board hereby authorizes the
checks drawn on all member and nonmember clearing
Federal
reserve banks to handle such checks subject to
banks of its district, and checks drawn on all other nonmember banks of its district which are collectible at the following terms and conditions; and each member
par in funds acceptable to the collecting Federal reserve and nonmember clearing bank which sends checks to
any Federal reserve bank for deposit or collection shall
bank.
by such action be deemed (a) to authorize the Federal
(3) No Federal reserve bank shall receive on deposit
reserve banks to handle such checks subject to the
or for collection any check drawn on any nonmember
following terms and conditions, (6) to warrant its own
bank which can not be collected at par in funds acceptauthority to give the Federal reserve banks such
able to the collecting Federal reserve bank.
authority, and (c) to agree to indemnify any Federal
reserve
bank for any loss resulting from the failure of
i A check is generally defined as a draft or order upon a bank or banking house, purporting to be drawn upon a deposit of funds, for the pay- such sending bank to have such authority.
ment at all events of a certain sum of money to the order of a certain
person therein named, or to him or his order, or to bearer, and payable on
demand.
2
For rules for computation of reserves and penalties for deficiencies
in reserves, see Regulation D, Sees. I l l and IV.
AUGUST, 1930
FEDERAL RESERVE BULLETIN
(1) A Federal reserve bank will act only as agent of
the bank from which it received such checks and will
assume no liability except for its own negligence and
its guaranty of prior indorsements.
(2) A Federal reserve bank may present such checks
for payment or send such checks for collection direct
to the bank on which they are drawn or at which they
are payable, or in its discretion may forward them to
another agent with authority to present them for
payment or send them for collection direct to the bank
on which they are drawn or at which they are payable.
(3) A Federal reserve bank may, in its discretion
and at its option, either directly or through or from an
agent, accept in payment of or in remittance for such
checks, cash, bank drafts, transfers of funds or bank
credits, or other forms of payment or remittance, acceptable to the collecting Federal reserve bank. The
Federal reserve bank shall not be liable for the failure
of the drawee bank or any agent to pay or remit for
such checks, nor for any loss resulting from the acceptance from the drawee bank or any collecting agent, in
lieu of cash, of any other form of payment or remittance
authorized herein, nor for the nonpayment of, or
failure to realize upon, any bank draft or other medium
of payment or remittance which may be accepted
from the drawee bank or any collecting agent.
(4) Checks received by a Federal reserve bank which
are payable in its own district will ordinarily be forwarded or presented direct to the banks on which they
are drawn, and such banks will be required to remit or
pay therefor at par in such one or more of the forms of
payment or remittance authorized under paragraph (3)
hereof as may be acceptable to the Federal reserve
bank.
(5) Checks received by a Federal reserve bank
payable in other districts will ordinarily be forwarded
for collection to the Federal reserve bank of the district
in which such checks are payable; provided, however,
that, where arrangements can be made satisfactory to
the collecting bank or agent and to the Federal reserve
bank of the district in which such checks are payable,
any such checks may be forwarded for collection direct
to the bank on which they are drawn or at which they
are payable, or may be forwarded for collection to
another agent with authority to present them for payment direct to the bank on which they are drawn or at
which they are payable. All such checks shall be
handled subject to all the terms and conditions of this
regulation.
(6) Bank drafts received by a Federal reserve bank
in payment of or in remittance for checks handled
under the terms of this regulation shall likewise be
handled for collection subject to all the terms and
conditions of this regulation.
(7) The amount of any check for which payment in
actually and finally collected funds is not received shall
be charged back to the forwarding bank, regardless of
525
whether or not the check itself can be returned. In
such event, neither the owner or holder or any such
check, nor the bank which sent such check to the Federal reserve bank for collection shall have any right of
recourse upon, interest in, or right of payment from,
any reserve balance, clearing account, deposit account,
or other such fund of the drawee bank or of any bank
to which such checks have been sent for collection, in
the possession of the Federal reserve bank. No draft,
authorization to charge, or other order, upon any reserve balance, clearing account, deposit account, or
other such funds of a paying, remitting, or collecting
bank in the possession of a Federal reserve bank, issued
for the purpose of settling items handled under the
terms of this regulation will be paid, acted upon, or
honored after receipt by such Federal reserve bank of
notice of suspension or closing of such paying, remitting,
or collecting bank.
SECTION VI.—Other rules and regulations
Each Federal reserve bank shall also promulgate
rules and regulations not inconsistent with the terms
of the law or of this regulation, governing the details
of its check clearing and collection operations. Such
rules and regulations shall be set forth by the Federal
reserve banks in their letters of instruction to their
member and nonmember clearing banks and shall be
binding upon any member or nonmember clearing bank
which sends any check to such Federal reserve bank
for collection or to any other Federal reserve bank for
the account of such Federal reserve bank for collection.
Effect of consolidation on Clayton Act permits.
In a ruling published on page 28 of the
for January,
1925, the Federal Reserve Board ruled with
reference to consolidations of banks covered by
Clayton Act permits as follows:
FEDERAL RESERVE BULLETIN
The board holds that in any case where two or more
banks consolidate under a statute, either Federal or
State, which vests in the consolidated institution all the
rights, franchises, or interests of the consolidating
banks, the consolidated institution would, as a matter
of law, have the right to the service of any director of
any of the consolidating banks; in other words, that a
director who is serving a bank by the permission of the
Federal Reserve Board may, after his bank consolidates
with another, continue to serve the consolidated institution if the statute under which the merger was
effected gives to this institution all the rights, franchises, and interests of the constituent banks. The
board rules, therefore, that in such cases it will not
require the director affected to make application to the
board for a new permit, but the director will be permitted, without any formality, to continue to serve
the consolidated institution together with the other
banks which he was serving before the consolidation
took place.
The board's ruling further provided, however, that in every such case the Federal reserve
526
FEDERAL RESERVE BULLETIN
agent should consider and report to the board
with recommendation whether or not the situation existing as a result of the consolidation of
the banks involved has so affected the question
of competition between the banks upon which
the director was serving as to make advisable
the revocation of the permit formerly issued.
When this ruling was issued the question
whether the Federal Reserve Board should issue
a permit covering interlocking bank directorates under the provisions of the Clayton Act
depended primarily on the question whether
the banks involved were in substantial competition. Since this ruling was published, however, the Clayton Act has been amended so as
to provide that such a permit may be issued if
AUGUST, 1930
in the board's judgment it is not incompatible
with the public interest and may be revoked
whenever the public
interest requires its revocation. In viewT of this amendment, a Federal
reserve agent when reporting to the board
whether or not a permit should be revoked on
account of a consolidation, should consider, in
addition to the question whether competition
between the banks involved has been affected
by the consolidation, whether in view of all the
circumstances involved, the public interest
requires the revocation of a permit. In this
connection, particular consideration should be
given to whether the consolidation wTill result
in any restriction of credit or stifling of competition between the banks involved.
527
FEDERAL RESERVE BULLETIN
AUGUST, 1930
DETAILED FEDERAL RESERVE STATISTICS, ETC.
FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES IN DETAIL AND FEDERAL RESERVE NOTE STATEMENT
[In thousands of dollars]
1930
J u l y 31
1929
June 30
J u l y 31
RESOURCES
Gold with Federal reserve agents
Gold redemption fund with United States Treasurv.__
Gold held exclusively against Federal reserve notes
Gold settlement fund with Federal Reserve Board
Gold and gold certificates held by bank
_
1, 548, 714
36,814
1, 596, 214
36,677
1, 479, 499
73, 580
1, 585, 528
596,215
808, 691
1, 632, 891
603,134
776,147
1, 553, 079
666, 970
704,014
2,990,434
169,710
3,012,172
161,998
2, 924, 063
185, 356
3,160,144
02, 939
3,174,170
57,122
3,109,419
66, 661
199, 537
271, 828
1, 075,714
128, 375
1,735
103,883
23,955
44, 987
29, 580
130,110
127,838
74, 567
576, 301
200
581, 404
9,505
126, 579
20,704
576, 501
590,909
147, 283
7,272
706
20, 237
5,301
706
20,996
10,450
726
37, 847
_
934, 363
1,017, 578
1, 346, 587
_.
504, 367
19, 471
59, 584
13,918
509, 453
19, 982
59, 552
11, 758
611, 362
29, 563
58, 795
10, 285
4, 754, 786
4,849, 615
5, 232,672
19,471
1, 322,347
19,982
1,403,790
29, 563
1,749, 825
1,341,818
1,423,772
1, 779,388
2,395, 559
23,367
6,956
21,505
2,389,070
26, 523
5,879
33, 753
2, 355, 284
14,468
5,796
22,015
2,447,387
2,455, 225
2,397,563
504, 367
169, 638
276,936
14, 640
509,453
169, 723
276,936
14, 506
611,362
161, 565
254, 398
28,396
4, 754, 786
4, 849, 615
5, 232, 672
479,154
469,678
458,477
1, 703, 754
361, 936
1, 341,818
1, 746, 500
322, 728
1,423, 772
2,339,911
560,523
1, 548, 714
312, 743
1, 596, 214
373,354
1,479,499
1,102, 295
1,861,457
1,969, 568
2, 581,794
_
Total gold reserves
Reserves other than gold
Total reserves
Nonreserve cash
_
_
__
Bills discounted 1
Bills bought: 2
Outright
Under resale agreement
_.
Total bills bought..
___
__
_
United States securities:
Bought outright
Under resale agreement
_
Total United States securities..
Other reserve bank credit:
Other securities
Due from foreign banks
..
Reserve bank
_
float3.
__
Total reserve bank credit outstanding.._
Uncollected items not included in
float..
Federal reserve notes of other reserve banks
Bank premises
All other resources
Total resources
__
_
_
_
_._
_
_. ._
_
_
___
LIABILITIES
Federal reserve notes:
Held by other Federal reserve banks
Outside Federal reserve banks
Total notes in circulation..
_•
__
_
Deposits:
Member bank—reserve account
Government
Foreign bank
Other deposits
._
_
._
_ ___
_
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
Total liabilities....
_
__
_
__
.
_
__
_
.._
_
_
Contingent liability on bills purchased for foreign correspondents
._.
FEDERAL RESERVE NOTE STATEMENT
Fe deral reserve notes:
Issued to Federal reserve banks by Federal reserve agents
Held by Federal reserve banks 4
. _
In actual circulation
Collateral held by agents as security for note issued to banks:
Gold
_
Eligible paper
_
_
Total collateral
_
_
__
__ . .
_
__
___
_.
1,779, 388
1
Includes bills discounted for intermediate credit banks as follows: Latest month, $124,000; month ago, $656,000; year ago, $5,439,000; and notes
secured by adjusted service certificates discounted for nonmember banks as follows: Latest month. $31,000; month ago. $51,000; year ago, $122,000.
* Includes bills payable in foreign currencies as follows: Latest month, $1,065,000; month ago, $1 064,000; year ago, $2,061,000.
' Uncollected items in excess of deferred availability items.
* Excludes " F . R. notes of other F . R. Banks." which are consequently included in "actual circulation".
528
FEDERAL RESERVE BULLETIN
AUGUST, 1930
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON JULY 31, 1930
[In thousands of dollars]
Philadelphia
Cleveland
Boston
New
York
1, 548, 714
164,917
238,594 140,000 195,550
36,814
983
Total
RichAtlanta Chicago
mond
St.
Louis
Minneapo- Kansas Dallas
City
lis
San
Franoisco
RESOURCES
Gold with Federal reserve
agents
Gold redemption fund with
U. S. Treasury
Gold held exclusively against
Federal reserve notes
Gold settlement fund with
Federal Reserve Board
Gold and gold certificates held
by banks
14,803
2,448
2,030
63,000 103,200 199,000
65,045
45,345
75,000
1,478
1,771
891
1,564
1,339
2,269
24,300 214,763
985
6,253
273,397 142,448 197, 580
64,339 105, 469 200,478
66,816
46,236
76, 564
596,215
21,386
223,968
44,986
70,822
12,502
7,171 113,998
23,377
13,137
28, 537
8,652
27,679
808,691
31,608
486, 566
33,370
57,230
9,946
5,231 120,917
12,048
5,771
9,284
9,739
26,981
Total gold reserves
Reserves other than gold
2, 990,434
169, 710
218,894
12,981
983,931 220, 804 325, 632
47,434
8,910
8,408
86,787 117,871 435,393 102,241
8,352 15,693 24,213 13,349
65,144 114,385
5,111
6,036
43, 676 275,676
7,328 11,895
Total reserves
Nonreserve cash
3,160,144
62,939
231,875 1,031,365 229,714 334,040
12,935
5,822
3,593
4,081
95,139 133,564 459,606 115, 590
9,769
4,734
4,921
4,465
70,255 120,421
1,924
1,755
51,004 287, 571
3,686
5,254
1,585, 528 165,900
25,285 221,016
Bills discounted:
Secured by U. S. Government obligations
Other bills discounted
66, 637
132, 900
4,272
5,730
17, 751
16,545
11,116
10,129
10, 640
7,959
2,859
16,410
888
29, 367
7,989
8,464
2,986
10,257
462
3,861
2,117
7,312
1,786
10,962
3,771
5,904
Total bills discounted_..
Bills bought
199, 537
130,110
10,002
16, 932
34,296
30,101
21,245
697
18, 599
13,068
19,269
6,312
30,255
7,696
16,453
20,021
13,243
5,802
4,323
6,161
9,429
5,516
12,748
4,144
9,675
13,660
U. S. Government securities:
Bonds
Treasury notes
Certificates and bills.
49, 737
277,018
249, 746
1,296
17,246
25, 718
9,798
106,805
63,873
1,052
21, 731
27,419
765
28,443
26,134
1,313
6,457
7,824
163
6,769
4,515
20,681
23, 851
33,225
654
14,614
7,375
4,883
10,035
10,261
357
12,256
16,123
8,313
9,584
10,273
462
19,227
17,006
Total U. S. Government
securities
Other securities
576, 501
7,272
44,260
1,000
180,476
5,250
50,202
1,000
55,342
15,594
11,447
77,757
22,643
25,179
22
28, 736
28,170
36, 695
913,420
706
524,604
72,194
52
56,541
250,123
232
144,677
73,144
69
45,876
87,009
71
54, 937
41,175
30
37,097
49, 398 114,231
95
25
13,454 65,820
41,688
25
20,396
35,685
16
9,350
43,681
21
33,295
45,062
21
18,220
60,030
49
24,941
19,471
59,584
13,918
227
3,580
74
4,535
15,664
6,285
348
2,614
213
1,205
7,059
1,059
1,718
3,214
541
2,261
8,295
604
884
3,811
468
1,316
2,018
495
1,776
3,972
255
466
1,876
445
3,445
4,823
330
Total bills and securities.
Due from foreign banks
_.
Uncollected items _ _
Federal reserve notes of other
Federal reserve banks
Bank premises
All other resources
1,290
2,658
3,149
4, 754, 786
370,365 1,465,816 355, 571 489,461 183,379 208,459 660,681 187, 596 121,059 205,176 120, 780 386,443
Federal reserve notes in actual
circulation
1,341,818
139,360
Deposits:
Member bank—reserve account
Government
Foreign bank
Other deposits
2,395, 559 140,096 1,005,673 139,102 200,601
23,367
948
2,874
2,010
1,750
451
2,864
6,956
591
610
538
8,932
1,921
21,505
25
Total deposits
Deferred availability items
Capital paid i n . .
Surplus
._
All other liabilities
2,447,387
504,367
169,638
276,936
14,640
142,033 1,020,343 141,728
55,287
138,372 41, 597
11,863
65, 577 16,663
21,751
80,001 26,965 i
71
4,899
4281
Total liabilities
4, 754,786
1
370,365 1,465,816 355,571 489,461 183,379 208,459 660,681 187, 596 121,059 205,176 120, 780 386,443
Total resources „
LIABILITIES
_.
Reserve ratio (per cent)
83.4
•82.4
156,624 128,190 185, 631
87.6
85.1
204,882
52, 798
15 87fi
29,141
1,133
85.5
62,443 114,965 180,179
69,302
50,623
68, 725
30, 747 155,029
62, 615
3,195
256
148
59,448 349,502
3,811
1,385
817
220
524
485
76,728
1,816
220
316
49,044
767
140
152
90,605
1,536
183
99
58,056 164,089
788
2,487
183
421
42
8,323
66,214
35, 620
5,828
12,496
778
61, 538 354, 654
13, 619 63,600
5,365 20,118
10,857 40,094
2,115
2,036
79,080
21,721
5,277
10,877
1.339
50,103
9,273
3,064
7,143
853
92,423
30,373
4,316
9,162
177
59,069 175,320
17,010 25,097
4,348 11,343
8,935 19, 514
671
140
85.9
77.9
69.7
74.7
82,460 141,013 208,867
81,298
55, 263
79,251
28,688
11, 996
4,640
10, 526
73.9
75.7
56.8
87.1
FEDERAL RESERVE NOTE
STATEMENT
Federal reserve notes:
Issued to Federal reserve
banks by Federal reserve
agents
. .
Held by Federal reserve
banks *__
In actual circulation
Collateral held by agents as
security for notes issued to
banks:
Gold
Eligible paper
1
1, 703, 754 172,969
245, 556 147,466 218,890
33,609
1,341,818
139,360
156,624 128,190 185,631
62,443 114,965 180,179
69,302
50,623
68, 725
30, 747 155,029
1,548, 714 164,917
26,855
312, 743
258, 594 140,000 195,550
50,329 20,167 31, 550
63,000 103,200 199,000
25,345 37,873 36,304
65,045
18,967
45 345
io', 446
75 000
14,882
24,300 214,763
16,839 23,186
88,932
19,276
33,259
20,017
26,048
Excludes "Federal reserve notes of other reserve banks," which are consequently included in "actual circulation."
38,922 231, 799
361,936
8,175
76, 770
AUGUST, 1930
FEDERAL RESERVE
BANK DEBITS
KINDS OF MONEY IN CIRCULATION
[End of month figures.
[Debits to individual accounts. In millions of dollars] '
Number
of centers
New York City__
_
Outside New York City
Cleveland
Richmond _
Atlanta
Chicago. _
St. Louis
Minneapolis. _
Kansas City
Dallas
San Francisco—
MEMBERSHIP
IN
May,
1930
37,423
43,263
140
24,647
24,416
26,428
11
7
10
13
7
15
21
5
9
15
10
18
2,683
38,706
2,386
2,872
742
935
6,707
1,225
723
1,326
618
3,415
2,602
38, 539
2,272
2,739
771
1,026
6,513
1,231
716
1,320
643
3,468
2,875
44,327
2,878
2,907
754
1,118
6,946
1,363
791
1,425
674
3,634
141
62,338
61,839
69, 691
Gold coin. _
360,016
Gold certificates
885,820
38,798
Standard silver dollars
382,423
Silver certificates
1,263
Treasury notes of 1890
281,181
Subsidiary silver
117,108
Minor coin
277, 111
United States notes
1,483, 711
Federal reserve notes
Federal reserve bank notes.
3,248
National-bank notes
645,389
Total .
4,476,068
Nonmember banks
Federal reserve district
On p a r list
1930
UnitedlStates.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
_.
. _
..
Not on par list
1929
1930
1929
1930
1929
8,315
8,707
11, 559
12, 318
3,629
3,812
401
923
756
781
486
409
1,135
552
664
890
719
599
408
939
776
807
537
436
1,229
580
700
912
766
617
270
400
467
963
561
218
3,331
1,571
542
2,021
590
625
268
401
483
1,002
601
285
3,524
1,698
611
2,172
613
660
9
502
891
236
480
1,053
183
215
60
10
552
947
225
487
1,115
200
215
61
Incorporated banks other than mutual savings banks.
June 30
J u l y 31 p
358,575
954,465
38, 610
391, 773
1,261
281,167
117,193
290,260
1,466, 561
3,221
648, 382
357,236
994,841
38,629
386,915
1,260
281,231
117,436
288,389
1,402,066
3,206
650,779
356,138
1,001,949
38,108
381, 285
1,259
279,781
117, 237
287,857
1, 320, 250
3,155
639, 593
4,551,468
4,521, 988
4,426, 612
FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION
OF BILLS AND
SHORT-TERM
SECURITIES
[In thousands of dollars]
Total
With- 16 to 31 to
in 15
30
60
days days days
61 to
90
days
260,413
236,315
207,030
190,570
197,101
159,84419,1,839 32,429
137,809 20,
1,196 32,150
111,996 20,1,542 29,521
99', 648 17,947 29,033
105,806 18,141 28, 111
24,102
26,328
26,343
28,739
30,414
24,119
19,725
18,510
15,067
14, 558
92,947 31,., 189 28, 692 3,912
90,897 31,., 137 21,029 3,715
861909 40,109 23,831 15,590
73,456 30,306 28,720 15, 592
60,828 19,938 32,488 16,368
745
2,167
2,228
2,449
1,140
[Number of banks at end of June]
Member banks
M a y 31
v Preliminary.
SYSTEM 1
PAR-COLLECTION
In thousands of dollars]
Apr. 30
June,
1929
37,690
__
Total .
June,
1930
1
Federal reserve district:
Boston
New York _
Philadelphia
529
BULLETIN
Bills discounted:
July 2
July 9
July 16
July 23
July 30
Bills bought in
open market:
July 2
July 9..
July 16
July23._
July 30
Certificates and
bills:
July2.__
July 9
July 16
July 23
July 30
Municipal warrants:
July 2...
July 9
July 16
July 23
July 30
157,485
148,945
168,667
150,523
130,762
311,903 31,188
43,145 119,692]
43,080119,657!
310,338 29,757
48,027 117,402|
290,522
48,027 94, 576
272,554
249,757
31,527 82, 265
91 days
Over 6
to 6
months months
80
107
118
136
71
64,1301 53,748
74,070! 43,774
76,265 48,828
72,114 57,837
71,083 64,882
530
FEDERAL RESERVE BULLETIN
AUGUST, 1930
CHANGES IN MEMBERSHIP
NATIONAL BANK MEMBERSHIP—Continued
STATE BANK MEMBERSHIP
The following list shows the changes affecting State
bank membership- during the month ended July 21,
1930, on which date 1,146 State institutions were members of the system:
Date
1930
June 30
Federal reserve district
1930
July 1
No. 2.—NEW YOKE:
30
Fidelity Trust Co., New York, N . Y., title
changed to Marine Midland Trust Co. of New
I York.
July 1
June 30 { Power City Trust Co., Niagara Falls, N. Y.,
j absorbed the Niagara Falls Trust Co., Niagara
12
j Falls, N. Y., nonmember
„
$2, 000, 000
r.
28 | Pacific Trust Co., New York, N . Y., member.... 8, 000, 000
Merged with and under title of Manufacturers Trust Co., member.
_.. 27, 500, 000
July 16 Hudson Trust Co., Union City, N. J
1, 000, 000
Voluntary withdrawal.
No. 4—CLEVELAND
July
2
Central Trust Co., Cincinnati, Ohio, member,
absorbed the Brotherhood of Railway Clerks
National Bank, Cincinnati, Ohio
5
June
30
July
1
400,000
No. 6—ATLANTA
June 30 I Bank of Winter Park, Winter Park, Fla_
Closed.
May
60, 000
1
No. 7.—CHICAGO
July
5
16
May
1
June 30
Royal Oak State Trust & Savings Bank, Royal
16
Oak, Mich
.,
250, 000
Voluntary withdrawal.
Rochester Savings Bank, Rochester, Mich
50,000
Voluntary withdrawal.
Bank of Michigan, Detroit, Mich., member
5, 000, 000
Peninsular State Bank, Detroit, Mich., member.. 2, 500,000
Consolidated with and under the charter and
June 26
title of Peoples Wayne County Bank,
Detroit, Mich., member
11, 000, 000
Bank of Detroit, Detroit, Mich., member
4, 000,000
28
Consolidated with and under charter and title
of Guardian Detroit Bank, Detroit, Mich.,
5, 000, 000 July 1
member
No. 8.—ST. LOUIS
July 15
Natural Bridge Trust Co., St. Louis, Mo
Succession to Natural Bridge Bank & Trust
Co., St. Louis, Mo., member
200,000
Montana Trust & Savings Bank, Helena, M o n t . . .
Voluntary withdrawal.
July 14
Commercial Bank, Spanish Fork, Utah, member,
absorbed the First National Bank, Spanish
Fork, Utah
$125,000>
125, 000
250,000*
400,000
2,040, 00O
1,000, 000
3, 040,000'
No. 4—CLEVELAND
First National Bank, Somerton, Ohio
Absorbed by Citizens Trust Co., Barnesville,
Ohio, nonmember.
First National Bank, Centerburg, Ohio
Absorbed by Centerburg Savings Bank, nonmember.
Merchants' National Banks, Meadville, Pa.,
title changed to Merchants National Bank &
Trust Co.
Pennsylvania National Bank, Pittsburgh, Pa—.
Absorbed by Pennsylvania Savings Bank,
which was succeeded by the Pennsylvania
Bank & Trust Co., nonmember.
First National Bank, Wilkinsburg, Pa
Central National Bank
Consolidated under charter and title of First
National Bank.
25,000
25,000
200, 00O
250, 0(K>
100,000s
No. 5—RICHMOND
National Bank of Elkton, Md
Absorbed by Elkton Banking & Trust Co.
nonmember.
First National Bank, Batesburg, S. C
Absorbed by Peoples State Bank of South
Carolina, Charleston, S. C , nonmember.
Columbia National Bank, Columbia, S. C
Succeeded by Central Union Bank of South
Carolina, nonmember.
Home National Bank, Lexington, S. C
Absorbed by Peoples State Bank of South
Carolina, Charleston, S. C , nonmember.
100,000
125,000'
500,000
50,000
N o . 6—ATLANTA
No. 9.—MINNEAPOLIS
June 30
15
200,000
No. 3—PHILADELPHIA
National Bank of Kennett Square, Pa_
Kennett Trust Co., nonmember
Consolidated under charter of National Bank
of Kennett Square and title of National
Bank & Trust Co
National Security Bank & Trust Co., Philadelphia, Pa
Absorbed by Kensington Trust Co., nonmember.
First National Bank, Bedford, Pa., title changed
to First National Bank & Trust Co.
Central National Bank, Philadelphia, Pa
Penn National Bank
Consolidated under charter of Central National Bank and title of Central-Penn National Bank
June
150, 000
21
28
No. 12.—SAN FRANCISCO
30
25,000
First National Bank, Clermont, Fla
Succeeded by Citizens Bank, nonmember.
Calcasieu National Bank of Southwest Louisiana,
Lake Charles, La., title changed to Calcasieu
National Bank.
First National Bank, Birmingham, Ala
American-Traders National Bank
_
Consolidated under charter and title of First
National Bank
_..
..-
25,000
1, 500,000
2, 750,000
500,000
N o . 7—CHICAGO
Apr. 19
NATIONAL BANK MEMBERSHIP
The following list shows reported changes (except
suspensions and insolvencies) affecting national bank
membership, concerning which information became
available between June 24 and July 21:
Date
Federal reserve district
June
10
21
Capital
26
July
No. 2—NEW YORK
1930
July 2
American National Bank & Trust Co., Mount
Vernon, N . Y
Succeeded by American Bank & Trust Co.,
which is to merge with Mount Vernon
Trust Co.. nonmember.
$500,000
1
Chariton and Lucas County National Bank,
Chariton, Iowa
Succeeded by National Bank & Trust Co. of
Chariton.
First National Bank, Sigourney, Iowa
Absorbed by Union Savings Bank, nonmember.
First National Bank, Hamtramck, Mich
Absorbed by Hamtramck State Bank, which
changed its title to Peoples Wayne County
Bank, nonmember.
First National Bank, Pana, I1L.
Primary organization.
First National Bank, Westport, Ind
Succeeded by Westport Union Trust Co.,
nonmember.
First National Bank, Elmhurst, 111
Peoples Trust & Savings Bank, nonmember
Consolidated under charter and title of First
National Bank
100,000
75,000
100,000
75,000
30,000
100,000
100, 000
150,000
531
FEDERAL RESERVE BULLETIN
AUGUST, 1930
CHANGES IN MEMBERSHIP—Continued
NATIONAL BANK MEMBERSHIP—Continued
Date
Capital
Federal reserve district
New charters issued
Restored to solvency
^.
Increase of capital approved l .
$555, 000
400, 000
3, 502, 500
No. 8—ST. LOUIS
1930
June 14
30
30
July
1
15
17
First National Bank, Itta Bena, Miss
Absorbed by First Savings Bank & Trust
Co., nonmember.
First National Bank, Hopkinsville, Ky
Absorbed by City Bank & Trust Co., nonmember.
Lincoln National Bank, Hodgenville, Ky
Succession to Farmers National Bank
Cairo National Bank, Cairo, 111
Absorbed by Alexander County Bank, nonmember.
National Bank of Commerce, St. Louis, Mo.,
title changed to Mercantile-Commerce National Bank.
Clayton National Bank, Clayton, Mo
Succession to Clayton National Bank..
$200,000
100,000
26
July 9
100,000
60,000
30
July 1
9
10
15
Oklahoma First National Bank, Skiatook, Okla.
Succeeded by Exchange Bank, nonmember.
First National Bank, Columbus, Nebr
Absorbed by Central National Bank.
National Bank of Ness City, Kans., title changed
to First National Bank.
Farmers National Bank, Oklahoma City, Okla.,
title changed to City National Bank & Trust
Co.
Liberty National Bank, Kansas City, Mo
Absorbed by Fidelity National Bank &
l rust \yO.
Fourth National Bank, Tulsa, Okla
Succession to Producers National Bank
4, 457, 500
5, 940,000
800,000
43
Consolidation of national banks under act of Nov.
7, 1918
Consolidation of national banks and State banks
under act of Feb. 25, 1927
6, 740, 000
8, 440,000
850,000
9, 290, 000
Aggregate increased capital for period
Reduction of capital owing to liquidations, etc
Net decrease.
First National Bank, Hatton, N. Dak
Absorbed by Farmers & Merchants National
"Rcmlr
x>anK.
First National Bank, Max, N. Dak...
Absorbed by First State Bank, nonmember.
Security National Bank & Trust Co., Red Wing,
Minn., title changed to Red Wing National
Bank & Trust Co.
32
_
Total consolidations..
j
I
4,457, 500
6,740,000
|
2,282,500
25,000
25,000
i Includes 2 increases in capital aggregating $800,000 incident to
consolidations under act of Nov. 7, 1918; also 4 increases aggregating
$375,000 under act of Feb. 25, 1927.
Fiduciary Powers Granted to National Banks
No. 10—KANSAS CITY
June 25
Liquidations
Reducing capital
Total liquidations and reductions of capital..
55,000
110,000
100,000
No. 9—MINNEAPOLIS
June 18
Aggregate of new charters, banks restored to
solvency, and banks increasing capital
25,000
100,000
750,000
250, 000
250,000
During the month ended July 21, 1930, the Federal
Reserve Board approved applications of the national
banks listed below for permission to exercise one or
more of the fiduciary powers named in section 11 (k)
of the Federal reserve act as amended, as follows: (1)
Trustee; (2) executor; (3) administrator; (4) registrar
of stocks and bonds; (5) guardian of estates; (6) assignee; (7) receiver; (8) committee of estates of lunatics;
(9) in any other fiduciary capacity in which State
banks, trust companies, or other corporations which
come into competition with national banks are permitted to act under the laws of the State in which the
national bank is located.
No. 11—DALLAS
June 28
Home National Bank, Stanton, Tex
Absorbed by First National Bank.
_
Apr. 21
First National Bank, Emmett, Idaho
Absorbed by First Security Bank, nonmemDer.
Whittier National Bank, Whittier, Calif
Home Savings Bank, nonmember
Consolidated under charter of Whittier National Bank and title of Whittier National
Trust & Savings Bank
American National Bank, Glendale, Calif
Absorbed by First National Bank.
First National Bank, Huntington Beach, Calif...
Succeeded by First State Bank, nonmember.
25,000
District
No.
Location
Name of bank
Powers
granted
N o . 12—SAN FRANCISCO
June 30
July
1
5
Prospect Park, N. J_.
2
1 to 9
150,000
150,000
Rockaway, N. J
Bedford, Pa
Lynchburg, Va
Morris, 111
2
3
5
7
1 to 9
Ito9
1 to 9
1 to 9
300,000
200,000
Chicago, 111
Greenwood, Ind
Beloit, Wis
30, 000
_
Prospect Park National
Bank.
First National Bank
First National Bank
First National Bank
Grundy County National
Bank.
7 Terminal National Bank
7 First National Bank
7 Second National Bank
I[to9
I.to9
lfco9
50,000
Authorized to Accept Drafts and Bills of Exchange up
to 100 Per Cent of Capital and Surplus
The Comptroller of the Currency presents the followThe following member institutions have been
ing summary of increases and reductions in the number
and capital of national banks during the period from authorized by the Federal Reserve Board to accept
drafts and bills of exchange up to 100 per cent of their
June 21, to July 25, 1930, inclusive:
capital and surplus: First National Bank, Laurel,
Miss.; Mercantile-Commerce Bank & Trust Co.,
St. Louis, Mo.; Union Planters National Bank &
Trust Co., Memphis, Tenn.
EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING SIX MONTHS ENDING JUNE 30, 1930
CO
to
Earnings:
Discounted bills
Purchased bills
United States securities
Deficient reserve penalties
Miscellaneous
Total earnings
Current expenses:
SalariesBank officers
_. Clerical staff
Special officers and watchmen
Allother
Governors' conferences
Federal reserve agents' conferences
Federal Advisory Council
Directors' meetings
Traveling expenses *
Assessments for Federal Eeserve Board
expenses
Legal fees
Insurance (other than on currency and
security shipments)
_
Insurance on currency and security shipments
Taxes on banking house
Light, heat, and power
Repairs and alterations, banking house
Rent
Office and other supplies
Printing and stationery
Telephone
Telegraph
Postage
Expressage
Miscellaneous expenses
Total, exlusive of cost of currency
Federal reserve currency:
Original cost, including shipping charges—
Cost of redemption, including shipping
charges
Total, current expenses
Current net earnings
Dividends paid
Reimbursable expenditures of fiscal agency
department:
Salaries, employees
_
Allother
Total
—
Cleveland
Richmond
Atlanta
Chicago
MinSt. Louis neapolis
Kansas
City
Dallas
$837,843
139;727
790,471
7,195
51,027
$866,664
361,436
689,263
18,528
112,053
$465,378
189,276
193,005
13,401
22,150
$563,907
305,570
153,288
11,033
54,586
$891,677
422,734
1,280,986
20,217
232,855
$356,769
206,679
381,956
10,351
12,032
$91,775
162,786
348,670
3,367
26,054
119,353
142,166
7,398
146,365
$230,885
163,660
435,327
9,324
14,367
6,506,490
1,826,263
2,047, 944
883,210
1,088,384
2,848,469
967,787
632,652
824,180
853,563 I 1,351,756
56,875
462,716
18,089
47,004
269,117
1,612,582
84,916
244,128
68,833
452,059
25,433
43,059
111,150
509,431
57,900
134,463
93,672
303,796
32,034
50,355
120,325
211,303
22,688
18,508
161,477
831,452
136, 613
82,737
272,392
24,377
41,344
96, 500
323,675
36, 670
87,132
87,406
264,036
23, 581
40,591
127,833
507,725
48,072
71,627
300
4,197
3,369
480
7,215
14,639
530
3,647
7,432
563
3,584
9,589
453
4,009
7,282
536
11,629
9,905
740
6,095
9,445
800
7,054
8,313
59,999
171,291
17,114
29,771
396
136
797
3,163
4,938
800
13,459
4,966
701
5,337
10,137
543
1,050
8,530
9,179
29,676
1,867
131,099
2,526
38, 655
2,069
39,848
2,768
16, 526
593
14,476
2,052
53,495
6,901
14,369
847
9,144
11,969
5,225
11,915
5,631
27,526
6,131
223,397
14,842
40,837
17,419
16,768
13,264
13,390
23,935
14,205
14,323
19,653
13,302
21,459
298,060
746,292
177,672
82,200
155,153
206,377
211,300
105,173
244,475
865,867
239,323
368,837
37,916
60,900
11,596
2,415
207
7,981
18,014
9,910
2,923
95,270
22,311
21,764
61,424
204,037
37,955
12,979
31, 747
69,497
17,902
6,792
49,020
17,132
18,648
7,167
16,678
77,309
18,667
22,565
16,331
32.697
7,686
906
6,845
8,344
12,128
3,895
16,325
55,927
18.698
16,934
17,232
32,708
7,457
1,714
2,641
10,986
14,832
3,826
35,361
45,602
18,217
18,833
35,622
147,154
18,562
9,395
9,602
47,122
24,658
19,370
25,487
33,179
10,318
20,401
119,013
30,338
44,305
6,587
33,660
9,978
2,960
\ 535
8,641
9,832
6,350
20,580
38,335
8,233
18,195
7,222
38,520
9,005
3,138
57,382
40,600
30,677
27,343
148,951
52,012
98,558
41,283
20,059
10,927
4,027
604
20,051
14,407
13,889
6,455
84,642
31,625
30,453
9,500
2,582
8,772
30,878
5,533
18,367
11,787
10,844
4,355
28,939
65,623
9,626
23,186
13,692
19,416
9,284
5,195
750
7,950
9,874
4,606
25,915
43,295
12,716
22,459
19,402
40,522
12,662
13,309
86,551
21,708
19,442
7,598
34,783
61,022
11,347
38,218
13,215,123
930,142
3,179,457
937,558
1,239,188
718,700
634,221
1,790,635
638,408
457,625
855,161
637,789
1,196,239
1,291,115
138,242
217,154
91,274
84,234
31,655
400,624
46,681
50,806
39,257
90,243
9,611
6,934
6,643
6,262
3,600
4,552
11,214
3,242
3,121
2,300
8,994
14, 574,936
1,077,995
3,403,545
1,035,475
1,329, 684
791, 696
670,428
2,202,473
688,331
909,088
679,346
1,295,476
6,568,933
5,164,977
235,176
350,399
3,102,945
2,036,373
790,788
499,318
718, 260
475,716
91,514
179,197
417,956
162,537
645,996
606,806
279,456
158,845
141,253
92,623
-84,908
129, 708
174,217
131,903
56,280
341,552
61,942
17,748
3,441
806
7,120
2,799
4,878
1,010
7,927
690
2,557
1,195
2,640
3,363
4,140
5,153
1,012
»7,292
1,694
8,842
1,120
4,360
635
4,369
1,717
79, 690
4,247
9,919
8,617
3,752
3,570
7,503
6,165
9,962
4,995
Total
Boston
New York Philadelphia
$6, 729,131
4,241,488
8,913,204
126,840
1,133,206
$401,301
257,084
583,552
5,825
65,409
;i, 292,634
1,376,557
3,457,837
16,401
363,061
21,143,869
1,313,171
1, 335,924
5,922,458
457, 582
944, 595
396
763
7,750
77,919
99,194
45,754
1 Other than those connected with governors' and agents' conferences and meetings of directors and of advisory council.
2 Includes $2,500 officers' salaries.
San
Francisco
$321,400
536,626
456,683
3,800
33,247
FEDERAL RESERVE DISTRICTS
OKLA.
(piahomaCity
i...,
DALLAS®
KBiH J11
TEXAS
—
—
•
O
BOUNDARIES OF FEDERAL RESERVE DISTRICTS
BOUNDARIES OF FEDERAL RESERVE BRANCH.TERRITORIES
FEDERAL RESERVE BANK CITIES
FEDERAL RESERVE BRANCH CITIES
FEDERAL RESERVE BANK AGENCY
@FedFRASER