Full text of Federal Reserve Bulletin : December 1915
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON DECEMBER, 1915 WASHINGTON GOVERNMENT PRINTING OFFICE 1915 FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. WILLIAM G. MCADOO, Secretary of the Treasury, Chairman, CHARLES S. HAMLIN, Governor. FREDERIC A. DELANO, Vice Governor. PAUL M. WARBURG. W. P. G. HARDING. ADOLPH C. MILLER. JOHN SKELTON WILLIAMS, Comptroller of the Currency. H. PARKER WILLIE, Secretary. SHERMAN ALLEN, Assistant Secretary. M. C. ELLIOTT, Counsel. SUBSCRIPTION PRICE OF BULLETIN, The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. when it will be required. Foreign postage should be added Remittances should be made to the Federal Reserve Board. in TABLE OF CONTENTS. .Page. Work of the Federal Reserve Board Meeting of Advisory Council Meeting of Federal Reserve Agents Federal Reserve Banks as fiscal agents Attorney General's opinion on redistricting Committees of the Board Gold settlement fund Discount rates Informal rulings of the Board Press statements Additions to and withdrawals from intradistrict clearing system Fiduciary powers granted Law department Business conditions Distribution of discounts Acceptances Resources and liabilities of Federal Reserve Banks Gold imports and exports Circulars and regulations Index to volume 1 of Bulletin IV , Follows 393 394 395 395 396 400 401 403 404 407 408 408 409 410 421 426 428 432 434 435 FEDERAL RESERVE BULLETIN VOL. DECEMBER 1, 1915 1 WORK OF THE BOARD. During the month of November the work of the Federal Reserve Board has included the following elements: (1) Investigation and discussion of the present plans for intradistrict clearing and collection of checks with a view to improving and correcting the same. Reports have been submitted by a conference of transit men representing the banks and by a special committee representing the Federal Reserve Agents. The Board has had a conference with the executive committee of Governors in charge of this matter and has undertaken further investigation with a view to the making of a new order on the subject. (2) Attention has been given to the five appeals from the decisions of the Organization Committee relating to the division of the country into districts, and a report has been presented to the Board by a committee to which the various appeals had been submitted. An opinion relating to the whole subject was obtained from the Attorney General, but after further investigation it was determined to take no action in any of the cases for the present. (3) The Secretary of the Treasury has announced his intention to designate the Federal Reserve Banks as fiscal agents, such designation to take effect on January 1, 1916, and the Board has taken such steps as are necessary to cooperate in the undertaking of this new function prescribed by the law. (4) At conferences with the Federal Reserve Agents arrangements have been made for complete reports concerning the operation of each Federal Reserve Bank, the substance of the same to be supplied to Congress as & part of the Board's annual report. Other problems of the system have been fully discussed at these conferences. (5) The Board has prepared and issued a revised form of the bankers' acceptance circular No. 8 and regulation heretofore issued, the new draft including provision for the purchase of acceptances growing out of domestic operations and made by State banks. This regulation is printed elsewhere in this number. The Board has held three important conferences during the month: First, with. Federal Reserve Agents on November 4, 5, and 6; second, with the Federal Advisory Council on November 15 and 16; and the third, with the executive committee representing the Governors of Federal Reserve Banks on November 17, 18, and 19. The main outcome of these meetings is reviewed elsewhere in this issue. The Advisory Council meeting was the regular statutory session provided by law, while the meeting of Federal Reserve Agents was the first that has been held since last winter. It is now intended to have a regular semiannual meeting of Federal Reserve Agents. The meeting of the executive committee of Governors was held by appointment with the Board for the purpose of discussing the clearance plan proposed by transit managers of the several Federal Reserve Banks as the result of their meeting in Chicago early in November. Numerous applications for power to exercise fiduciary functions have been received during the month and have received due investigation. A list of those granted appears elsewhere in this issue and an additional number are still awaiting action. Volume I of the Bulletin. The December number of the Federal Reserve Bulletin will complete volume I, although it will contain but eight numbers. This is regarded as desirable that future volumes of the Bulletin may cover the calendar year. Included in this number is an index of the numbers issued in 1915, so that the eight numbers issued beginning with May may be bound as one volume. 393 394 FEDERAL RESERVE BULLETIN. DECEMBER 1, 1915. land on which the loan is made is within one hundred miles from the office of the bank Two slight errors occurred in the November making the loan." Bulletin. On page 349, under "Earnings and 3. A reduction of two-thirds of the present expenditures of Federal Reserve Banks from paid-in capital of the Federal Reserve Banks July 1 to September 30, 1915/' the name of leaving the subscribed capital and double as now constituted. the Federal Reserve Bank of Minneapolis was j liability 4. That theFederal Antitrust Act be amended used in place of that of the Federal Reserve ! so that the second paragraph of section 8 will Bank of Kansas City as one of four shown not ! read as follows: to have earned current expenses for the quarter. | "No bank, banking association, or trust In the list of banks in the intradistrict clearing j company, organized or operating under the system, on page 368 under district No. 2, the I laws of the United States in any city or incorporated town or village of more than two National Bank of Westfield, Wostfield, N. J., hundred thousand inhabitants, as shown by should have been listed as the National Bank the last preceding decennial census of the United States, shall have as a director or at Westfield, N. Y. other officer or employee any person who may Corrections. be connected in either of these official capacities Meeting of Advisory Council. with more than one other bank, banking association, or trust company located in the same Members of the Advisory Council of the place: Provided, That nothing in this section Federal Reserve Board held a quarterly meet- shall apply to mutual savings banks not having in the Board room on November 16. Nine ing a capital stock represented by shares: members of the Council were present, as fol- Provided further, That a director or other officer or employee of such bank, banking associalows: Daniel G. Wing, Boston; W. S. Rowe, tion, or trust company may, besides being an. Cincinnati; George J. Seay, Richmond; Charles officer or director in one other bank, be a diA. Lyerly, Chattanooga; James B. Forgan, rector or other officer or employee of not more Chicago; C. T. Jaflray, Minneapolis; E. F. than one additional bank or trust company Swinney, Kansas City; J. Howard Ardrey, organized under the laws of the United States or any State where the entire capital stock of Dallas; Archibald Kains, San Francisco. one is owned by stockholders in the other: The meeting of the Council was preceded by And provided further, That nothing contained a meeting of its executive committee held on in this section shall forbid a director of Class A of a Federal Reserve Bank, as defined in November 15. Federal Reserve Act, from being an officer On the morning following the meeting the the or director, or both an officer and director, in following statement was given to the press: one member bank." i The Advisory Council at its meeting held in | 5. That the antitrust act be so amended as Washington November 16 suggested several j to permit joint stock ownership by national amendments to the Federal Reserve Act, the j banks or banks organized to do business in chief among which are given below. These I foreign countries through branches established amendments have not received consideration j therein. or action of any kind by the Federal Reserve I 6. That the National Bank Act be amended Board. I to permit the establishment by national banks 1. That the work of the Office of the Comp- having an unimpaired capital of not less than troller of the Currency be absorbed and ad- $1,000,000 of branches, provided that no branches are placed outside of the limits of the ministrated by the Federal Reserve Board. 2. That section 24 of the Federal Reserve ! city where the bank itself is located. Upon the request of the Board for the views Act relating to loans on farm lands bo amended of the Council as to whether Federal Reserve to read as follows: "Any national banking association not situ- Banks can do anything with their member ated in a central reserve city may make loans banks to discourage or put a stop to the pressecured by improved and unencumbered farm ent high rates of interest on demand deposits, lands situated within its Federal Reserve dis- the Council held that the rate of interest paid trict, or in an adjoining district provided the to the public on deposits is regulated by the DECEMBER 1,1915. FEDERAL RESEKVE BULLETIN. accumulation or lack of wealth in the communities in which the banks do business. The Council also passed the following resolution: "That this Council is unalterably opposed to any provision whereby farm-loan bonds described in the Hollis bill may become security for loans from Federal Reserve Banks and to their being made a basis for acceptances by member banks." Meeting of Federal Reserve Agents. Federal Reserve Agents, who are also chairmen of the boards of directors of the Federal Reserve Banks, met in Washington for a threeday session, beginning on Tuesday, November 4. All of the agents were present, and several joint meetings were held with the Federal Reserve Board. The meeting was called for the discussion of a large number of problems originating in the work of the Board and the administration of the Federal Reserve Banks. Action was taken under which stated meetings of the agents will be held in Washington semiannully, in May and October. Federal Reserve Banks as Fiscal Agents. The Secretary of the Treasury has sent the following letter to the Federal Reserve Board, as result of which Federal Reserve Banks will become fiscal agents on Januar}^ 1, 1916: NOVEMBER 23, The FEDERAL RESERVE BOARD, 1915. Washingtont D. O. In accordance with the provisions of section 15 of the Federal Reserve Act, which provides that— 11 The moneys held in the general fund of the Treasury * * * niay, upon the direction of the Secretary of the Treasury, be deposited in Federal Reserve Banks, which banks, when I required by the Secretary of the Treasury, shall | act as fiscal agents of the United States # # #» I have determined to appoint the Federal Reserve Banks depositaries and fiscal agents in the manner thus indicated by the Act. In order that the reserve banks may not be embarrassed by the addition of an unduly large GENTLEMEN: 395 volume of business upon undertaking their functions in this connection, I have decided to make a beginning by transferring to each of the Federal Reserve Banks the funds of the Government now on deposit with the national banks in each of the cities in which a bank is located, thus giving to each of the reserve banks the funds held by the nationa] banks in its own city. Each Federal Reserve Bank will be required to perform on behalf of the Government the services which are now rendered by the national-bank depositaries located in said cities, as well as any other services incident to or growing out of the duties and responsibilities of fiscal agents. May I ask you to cooperate in carrying out the provisions of the Federal Reserve Act in this regard, and to take any and all steps that may be desirable to perfect such arrangements by the Federal Reserve Banks as will enable them to fully and satisfactorily perform these functions from and after January 1, 1916, the date on which it is my purpose to make the proposed arrangements effective ? I have designated Hon. William P, Malburn, Assistant Secretary of the Treasury, in charge of the fiscal bureau, to act for the Treasury Department in carrying out the details so far as this department is concerned. I have deferred action until this time in order that the organization of the Federal Reserve Banks might be completed and gotten into good working order through experience and practice, and with the hope that a satisfactory clearing and collection system would, by this time^ have been evolved. I feel convinced, however, that I should not longer delay giving these banks the opportunity of performing these services for the Government and enlarging their field of usefulness. Very truly, 3^ours, W. G. MCADOO, Secretary, It is estimated that the following amounts may be transferred to the several Federal Reserve Banks: Boston New York Philadelphia. ClevelandRichmond Atlanta Chicago St. Louis Kansas City Minneapolis Dallas San Francisco $796, 000 1, 437, 000 1,175, 000 285, 000 425, 000 520, 000 .1, 436, 000 850, 000 655, 000 225, 000 191, 000 441, 000 Total 8, 436, 000 396 FEDEEAL RESERVE BULLETIN. DECEMBER 1,1915. In order that it might have the information and advice essential to the discharge of this There is printed below the full text of an duty the Organization Committee was authoropinion rendered to the President by the Attorney General of the United States, Hon. "to employ counsel and expert aid, to take T. W. Gregory, on the power of the Federal testimony, to send for persons and papers, to administer oaths, and to make such investigaReserve Board to abolish existing Federal tion as may be deemed necessary by the said Reserve districts or Federal Reserve banks. committee in determining the reserve district and in designating the cities within such disDEPARTMENT OF JUSTICE, tricts where such Federal Reserve Banks shall Washington, November 22,1915, be severally located77 (sec. 2). SIR: I have your letter transmitting a reUpon the establishment of the Federal Request from the Governor of the Federal serve Districts by the Organization Committee Reserve Board for my opinion as to the power a certificate must be filed with the Comptroller of the Board to abolish any of the existing of the Currency— Federal Reserve Districts or Federal Reserve " showing the geographical limits of such disBanks. The Secretary of the Treasury, who is tricts and the Federal Reserve city designated ex-officio Chairman of the Board, unites with in each of such districts77 (sec. 4). the Governor in making this request; and you Having thus authorized the Organization ask that I comply with it. Committee to designate Federal Reserve cities The Act creating the Federal Reserve System and to create around each a Federal Reserve (38 Stat., 251, ch. 6) provided for an "Organi- District, the Act directed that— zation Committee" to be composed of the "the said committee shall supervise the organiSecretary of the Treasury, the Secretary of zation in each of the77 cities designated of a * * * (sec. 2). Agriculture, and the Comptroller of the Cur- Federal Reserve Bank rency (sec. 2). The Act then prescribes how these banks The Act also established a permanent body shall be constituted: known as the "Federal Reserve Board77 (sec. Every national bank is required to subscribe 10). to the capital stock of the Federal Reserve A reading of the Act shows at once that the Bank of its district in a sum equal to 6 per cent Organization Committee was created not merely of its paid-up capital stock and surplus, onefor the purpose of attending to the formalities of sixth payable on the call of the Organization organization or to serve as a stop-gap until the Committee or of the Federal Reserve Board, Federal Reserve Board should come into ex- one-sixth within three months, and one-sixth istence, but that it had an independent func- within six months, the remainder subject to tion to perform and to that end was invested call by the Federal Reserve Board when deemed with wide powers. That is to say, its function necessary (sec. 2). State banks declared was to organize the system as contradis- eligible by the Organization Committee, while tinguished from the function of the Federal Re- of course not required to subscribe, were auserve Board, which was primarily to administer thorized to do so (sees. 2, 4). If the subscriptions by banks to the stock of the system. This being the general scheme, the Act pro- any Federal Reserve Bank in the judgment of the Organization Committee do not provide an vided that the Organization Committee, (i as soon as practicable, * * * shall desig- adequate capital, the Organization Committee nate not less than 8 nor more than 12 cities to may offer the stock of such Federal Reserve be known as Federal Reserve cities, and shall Bank to public subscription; and if the total divide the continental United States, exclud- subscriptions by banks and the public fall short ing Alaska, into districts, each district to con- of supplying an adequate capital, the Organitain only one of such Federal Reserve cities" zation Committee shall allot to the United States such an amount of the stock of the (sec. 2). Federal Reserve Bank in question as the comIt provided further that these districts— " shall be apportioned with due regard to the mittee shall determine. Stock not held by convenience and customary course of business, banks has no voting power (sec. 2). and shall not necessarily be coterminous with No Federal Reserve Bank is permitted to any State or States." commence business with a subscribed capital of less than $4,000,000 (sec. 2), nor until authorAnd— 11 ized so to do by the Comptroller of the Curshall be known as Federal Reserve Districts, and may be designated by numbers77 (sec. 2). rency (sec. 4). Opinion on Redistricting. When the minimum amount of capital stock required for the organization of any Federal Reserve Bank shall have been subscribed, the Organization Committee is directed to designate any five of the subscribing banks to complete the organization and to execute and file with the Comptroller of the Currency a certificate of organization, stating the name of such Federal Reserve Bank, the city and State in which it is located, the territorial extent of the district in which its operations are to be carried on, the amount of its capital stock and the number of shares into which the same is divided, the name and place of business of each bank executing the certificate of organization and of each subscribing bank and the number of shares subscribed by each, etc. (sec. 4). Upon the filing of this certificate such Federal Reserve Bank becomes a body corporate, with the powers which are enumerated, amongst them the power— " to have succession for a period of twenty years from its organization unless it is sooner dissolved by an act of Congress, or unless its franchise becomes forfeited for some violation of law" (sec. 4). Acting under the authority of these provisions, the Organization Committee divided the country into 12 Federal Reserve Districts and designated in each a Federal Reserve city. Boston was designated as the Federal Reserve city for district No. 1; New York for district No. 2; Philadelphia for district No. 3; Cleveland for district No. 4; Richmond for district No. 5; Atlanta for district No. 6; Chicago for district No. 7; St. Louis for district No. 8; Minneapolis for district No. 9; Kansas Citv for district No. 10; Dallas for district No. 11; San Francisco for district No. 12. A certificate to that effect was filed on April 2, 1914, in the office of the Comptroller of the Currency. A Federal Reserve Bank was duly organized at each of these cities. On May 18-20, 1914, all filed their certificates of organization and thereby became bodies corporate with the rights and powers enumerated in section 4 of the Act. Their organization was officially announced by the Secretary of the Treasury, pursuant to the second paragraph of section 19 of the Act, and on November 14, 1914, pursuant to section 4 of the Act, they were authorized by the Comptroller of the Cureency to commence business. They have been engaged in business for a little over a year. Their statement for the week ending November 12, 1915, shows their capital, deposits, and total resources, as follows: 15730—15 397 FEDERAL EESEEVE BULLETIN. DECEMBER 1,1915. 2 Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta. Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Capital. Deposits. Resources. $5,171,000 11,059,000 5,273,000 5,945,000 3,352,000 2,417,000 6,635,000 2,778,000 2,495,000 3,027,000 2,753,000 3,941,000 $22,218,000 181,710,000 19,933,000 18,556,000 113,160,000 111,268,000 49,993,000 11,204,000 10,425,000 9,826,000 i 11,992,000 14,032,000 $28,615,000 196,544,000 25,206,000 24,501,000 21,669,000 16,629,000 56,628,000 13,982,000 12,920,000 14,080,000 18,671,000 17,973,000 54,846,000 374,317,000 446,192,000 i Includes Government deposit of $5,000,000. All of them have issued Federal Reserve notes, of which at present time $160,000,000 in round figures are outstanding. One has purchased a site for its bank building, and the others: have leased quarters for long terms. The question is, Has the Federal Reserve Board the power to abolish any of the existing Federal Reserve Districts established by the Organization Committee as hereinabove described ? As there can be only one Federal Reserve Bank in a district, a district can not be abolished without abolishing a bank. Therefore, inseparably linked with the question first stated is the further question, Has the Federal Reserve Board the power to abolish a Federal Reserve Bank ? And since, concededly, the power to abolish a Federal Reserve District or a Federal Reserve Bank is not granted in express terms, the question finally becomes, Is it to be implied from other provisions of the Act that Congress intended to confer that power? The Counsel of the Board held not, in an opinion dated March 1, 1915. Subsequently, Mr. Joseph P. Cotton, of New York, was consulted, and he reached the opposite conclusion in an opinion dated November 19, 1915. The Federal Reserve Banks are not banks in the ordinary sense. They are banks composed of banks. They touch the business life of the Nation in its most sensitive spot. Of all the processes of business, theirs is perhaps the most delicate. In determining whether Congress intended by implication to confer upon the Federal Reserve Board power to abolish one or more of these institutions, it is proper to consider that if the power exists at all it may be exercised not only now, but at any time in. the future. Certainly it was the expectation of Congress that the Federal Reserve Banks would extend their 398 FEDERAL RESERVE BULLETIN. DECEMBER 1, 1915. roots deep; that upon them as a foundation j debatable question, and has been most strenupermanent banking arrangements better than I ously and earnestly debated, is very persuasive aay we have ever known would be constructed; I that it did not* TPhe grant of such a power is and that they would become interwoven with never to be implied " (494). the business fabric of the cou a try. \ Again, it refers to— If these expectations shall be realized, and "the inference which irresistibly follows from in this discussion we must assume that they the omission to grant in express terms to the will be, the abolition of one or more of the commission this power of fixing rates " (506). And again— Federal Reserve Districts, and consequently of one or more of the Federal Reserve Banks, "The vice of this argument is that it is buildwhether for better or for worse, would pro- ing up indirectly and by implication a power foundly affect the currents of trade and alter which is not in terms granted" (509). the whole face of business throughout vast secStill again— tions of the country, to say nothing of the effect "And if it (Congress) had intended to grant upon the investments of member banks and the power to establish rates, it would have said perhaps of the public in the capital stocks of so in unmistakable terms' 1 (509). reserve banks. Whilst this seems to me decisive of the matIt must be acknowledged that the power to ter, I will nevertheless examine the provision of do such a thing is, to borrow a phrase of the the act which is put forward as a ground for Supreme Court, " a power of supreme delicacy implying that Congress intended to confer and importance"; and I am of the opinion that upon the Federal Reserve Board the power in the failure to confer such a power in express question. That provision, which is iound in terms would be regarded by the courts as section 2 immediately following the grant of virtually conclusive that Congress did not in- power to the Organization Committee to desigtend it to be exercised except by itself. | nate Federal Reserve cities and to establish A leading case in point is Interstate Com- ] Federal Reserve Districts, reads as follows: merce Commission v. Railway Co. (167 U. S., ' "The determination of said organization 479). There the question was whether the j committee shall not be subject to review exInterstate Commerce Commission, when it j cept by the Federal Reserve Board when found a* particular rate to be unreasonable, organized: Provided, That the districts shall was given the power by the act to regulate be apportioned with due regard to the concommerce as origin ally enacted to prescribe venience and customary course of business what should be a reasonable rate for the future. and shall not necessarily be coterminous with As in the present instance, the power in ques- any State or States. The districts thus created tion was not expressly given, but the commis- may be readjusted and new districts may from sion claimed that it had the power by necessary time to time be created by the Federal Reserve implication. Board, not to exceed twelve in all." Briefly stated, its contention was, that it was The merely negative statement that the expressly charged with the enforcement and determination of the Organization Committee execution ol the provisions of the act; that "shall not be subject to review except by the amongst other provisions was section 1 which Federal Reserve Board when organized" clearly required all charges to be reasonable and just can not be enlarged into an affirmative grant and prohibited every unjust and unreasonable of power to the Board to review and set aside charge; that in the nature of things it could everything done by the Organization Commit not enforce this mandate of the law without a tee. The reasonable view is that by that landetermination of what are reasonable and just guage Congress meant that the determination charges; and finally, since no other tribunal of the Organization Committee should not be was created to make that determination, it subject to review at all, except in so far as the must be implied that the commission was subsequent provisions specifically authorize a authorized to do so (167 U.S., 500, 501). review by the Federal Reserve Board. The The court, overruling this contention, held only subsequent provision authorizing a review that as the act did not expressly grant the of the determination of the Organization Comower the commission did not possess it. mittee of the Federal Reserve Board is conpeaking through Mr. Justice Brewer, the court tained in the sentence— said: I "The districts thus created may be read"The question debated is whether it (Con- justed and new districts may from time to gress) vested in the commission the power and time be created by the Federal Reserve Board, the duty to fix rates; and the fact that this is a I not to exceed twelve in all." S DECEMBER 1,1915. FEDERAL RESERVE BULLETIN. But the power to readjust districts does not necessarily carry with it the power to abolish districts and banks. On the contrary, it would be departing from the usual meaning of the language to give it that effect. In the affairs of business especially the word "readjust77 is associated with the idea of preservation rather than of destruction. When it is used in connection with any business or political entity we instinctively think not of the destruction of that entity but of its preservation in some other form. When it is used in connection with a geographical area, such as a district, we instinctively think of changes in boundary lines, not of the blotting out of anything. To illustrate, suppose the Constitution had provided that Congress should have power to readjust the States taken into the Union. Would it be contended that this included power to abolish States? I can not think so. Likewise here, in my opinion, the power to readjust districts refers to changes in boundary lines. This conception of the power is exemplified in the changes heretofore made by the Federal Reserve Board in the boundaries of the districts as fixed by the Organization Committee. To cite one instance, northern New Jersey was detached from the district of which Philadelphia is the center and annexed to the district of which New York is the center. But if what was meant by readjustment of districts were obscure instead of reasonably clear, there would still be no ground for implying the power to abolish districts and consequently to abolish banks from a power to readjust, districts and to add new districts. A power not expressly conferred can arise as an incident to the exercise of some other power only because essential to the exercise of that power or because included therein as a lessor power of like nature or effect. (The Floyd Acceptance, 7 Wall., 666, 680; Branch v. Jessup, 106 U. S., 468, 478.) No one would say that the power to abolish is a lesser power than the power to readjust. It only remains then to inquire whether the power to abolish districts and banks is essential to the exercise of the power to readjust districts. In other words, would the power to readjust districts, which is expressly conferred upon the Board, be nullified or rendered impotent if the power to abolish districts and banks is withheld ? I have not heard that contention made and do not see how it could be made. Obviously the power conferred can fall short of the power of abolition and still have a wide and useful 399 field of operations. From time to time much may be done to promote the convenience and efficiency of the system by readjusting the boundaries of districts, adding here and taking away there, without abolishing districts and without abolishing banks. The only grounds upon which a power may be implied are thus lacking here. Rather the specification of the pov/er to readjust districts and of the power to increase the number of districts carries with it the implication that Congress did not intend to grant the greater power to abolish districts. As the Supreme Court has said in similar circumstances: " * * * If Congress had desired to grant such authority it would have been easy to have said so in express terms/' (Tillson v. United States, 100 U. S., 43, 46.) Again it does not, seem reasonable to suppose that Congress would have authorized the Organization Committee to establish these very elaborate banking units if another body to be organized only a few months later was to have the power not only to make readjustments among them but to abolish altogether a substantial number of them. Finally, the power of readjusting districts and of creating new districts conferred by this provision upon the Federal Reserve Board is subject to two limitations only: (1) There must be "due regard to the convenience and customary course of business,') and (2) the number of districts can not exceed 12 (sec. 2). If, therefore, the power to readjust districts includes the power to abolish districts, I see nothing to prevent the Board from abolishing districts and banks until the number is reduced not only to eight but to six, four, or even one, if in the judgment of the Board 11 due regard to the convenience and customary course of business" dictates that policy. Assuredly Congress intended no such result. But not only does this provision afford no sufficient basis for implying that Congress intended to grant the powder in question; there is another provision in the Act which shows affirmatively, I think, that it did not intend to grant that power. Section 4 provides that— "Upon the filing of such certificate with the Comptroller of the Currency as aforesaid, the said Federal Reserve Bank shall become a body corporate and as such, and in the name designated in such organization certificate, shall have power ** * * " Second. To have succession for a period of twenty years from- its organization unless it %s 400 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. sooner dissolved by an act of Congress, or unless tion to confer this power can fairly be implied, its franchise becomes forfeited by some violation but on the contrary there is a provision which of ike law." shows affirmatively that Congress did not in- Here is an assurance by Congress that a Federal Reserve Bank organized under the provisions of this Act shall have the right to exist for a period of 20 years, except in two specific contingencies, i. e., unless it shall forfeit the right by a violation of law, or unless Congress itself shall shorten the period. The Federal Reserve Banks were organized, their capital subscribed, and large obligations undertaken by thorn on the faith of that express assurance and in the expectation of enjoying that right. Manifestly, to imply a power in the Federal Reserve Board to abolish Federal Reserve Banks at will would directly conflict with the rights and powers expressly conferred upon those banks by this section. A power thus expressly conferred can not be destroyed or seriously impaired by implying a conflicting power—at least not unless the grounds for the implication are irresistible, which, as we have seen, is not the case here. (Texas & Pacific Ry. Co. v. Abilene Cotton Oil Co., 204 U. S., 426, 440, 441, 446; Wilder Mfg. Co. v. Corn Products Co., 236 U. S., 165, 174, 175.) Finally, it remains to be observed that the reports of the committees • which considered this Act and the debates attending its passage, while discussing fully many different powers conferred or proposed to be conferred upon the Federal Reserve Board, contain no mention of the power here in question. This is very significant. It shows, I think, an entire absence on the part of Congress of any thought of conferring such a power. For, considering the far-reaching consequence of the power, it is not easy to believe that if the granting of it had been under consideration at all, the fact would not have been mentioned by some one in the course of the thorough and exhaustive discussion which the subject underwent in Congress. I sum up my conclusions as follows: First, concededly the power to abolish Federal Reserve Districts and Federal Reserve Banks is not conferred upon the Federal Reserve Board in express terms; second, it is a rule of statutory construction that the failure to grant in express terms a power of such great consequence raises a convincing presumption that Congress did not intend to grant it; third, putting out of view that presumption, there is no provision in the Act from which an inten- tend to confer it; fourth, the absence of any mention of such a power in the reports of committees and the debates dealing wdth the legislation shows that the thought of conferring it was not in the mind of Congress. I am of the opinion, therefore, that the Board does not possess the power in question. Very respectfully, T. W. GREGORY, Attorney General. The PRESIDENT, The White House, Committees of the Board. These committees of the Federal Reserve Board were esttblished on November 23 and supersede previous lists: Audit and examination.—Mr. Delano, Mr. Harding, Mr. Warburg. Clearings.—Mr. Delano, Mr. Harding. Discount policy.—Mr. Warburg, Mr. Miller, Mr. Harding. Executive.-—Mr. Hamlin, Mr. Delano, Mr. Miller. Foreign branches and agencies.—Mr. Warburg, Mr. Delano. Gold settlement fund.—Mr. Etarding, Mr. Warburg. Investments.-—Mr. Warburg, Mr. Harding. Issue and redemption.—Mr. Miller, Mr. Delano, Mr. Harding. Law.—Mr. Hamlin, Mr. Delano, Mr. Warburg. Operation oj Federal Reserve Banks: Boston: Mr. Warburg, Mr. Hamlin. New York, Philadelphia: Mr. Warburg, Mr. Delano. Cleveland, Chicago, Minneapolis: Mr. Delano, Mr. Warburg. Richmond: Mr. Harding, Mr. Williams. St. Louis, Kansas City, San Francisco: Mr. Miller, Mr. Harding. Atlanta, Dallas: Mr. Harding, Mr. Miller. Open-marlcet operations.—Mr. Harding, Mr. Delano. Member and State banks.-—Mr. Harding, Mr. Warburg, Mr. Williams. Organization and expenditures.—Mr. Delano, Mr. Harding, Mr. Miller. (a) Subcommittee, organization and staff: Mr. Delano, Mr. Harding. (5) Subcommittee, budget and expenditures: Mr. Delano, Mr. Miller. Relations ivith Federal Reserve Agents.—Mr. Miller, Mr. Delano. Relations with Treasury Department.—Mr. Delano, Mr. Miller, Mr. Williams. Reports and statistics.—Mr. Miller, Mr. Williams. DECEMBER 1,1915. GOLD-SETTLEMENT FUND. Combined balances of Federal Reserve Banks and Federal Reserve Agents carried in the goldsettlement fund of the Federal Reserve Board passed $100,000,000 at the settlement of November 18. This was the day before the expiration of the first six months of operation of the fund. In this connection the Federal Reserve Board gave the following statement to newspapers: More than $100,000,000 is now held by the Federal Reserve Board in its gold-settlement fund, made up of balances to the credit of the 12 Federal Reserve Banks and the Federal Reserve Agents. In the weekly clearing made by the Board to-day the balance in* the fund was shown to be $102,620,000, made up of deposits held to the credit of the Federal Reserve Banks and Federal Reserve Agents for the purpose of clearing balances between them existing at the close of business each Wednesday. Each bank telegraphs to the Federal Reserve Board a statement of the amounts due to other banks and the clearing takes place on each Thursday morning. Clearing operations were begun on May 19, 1915, and the fund is therefore now six months old. The first actual clearing was on May 26, each Federal Reserve Bank at that time being required to deposit $1,000,000 in the fund and an amount in addition equal to its indebtedness to other Federal Reserve Banks. Authority for clearings between Federal Reserve Banks is found in section 16 of the Federal Reserve Act, under which the Board is authorized in its discretion to exercise the functions of a clearing house for the Federal Reserve Banks. A regulation covering the matter was issued by the Board on May 8. Deposits by the Federal Reserve Banks in this fund are counted as legal reserve. On September 8, 1915, the Board authorized accounts to be opened with the 12 Federal Reserve Agents. The fund is now divided as follows: Balances to the credit of Federal Reserve Banks, $69,240,000; balances to the credit of Federal Reserve Agents, $33,380,000. These amounts are now held by the Board in gold-order certificates in denominations of $10,000. Deposits in the fund are, through the courtesy of the Treasury Department, made by Federal Reserve Banks through the sub- 401 FEDERAL RESERVE BULLETIN. treasuries. When a deposit is made at a subtreasury, advice is wired to the Treasurer of the United States at Washington who then causes gold certificates to be issued to the Federal Reserve Board. When payments are made from the fund, the operation is of course reversed. Transfers are, however, for the most part on the books of the gold-settlement fund by credits and debits between the 12 banks or between banks and the Federal Reserve Agents. The gold settlement fund is administered for the Board by officers connected with its organization who do the work in addition to their other duties. Its cost of administration during the first six months of its existence has been slightly in excess of $1,000. During this period balances of $719,688,000 have been settled. In providing for clearings between the Federal Reserve Banks the Federal Reserve Board agreed that the cost of operation of the gold settlement fund and such shipments of currency as were necessary should be apportioned by semiannual accounting among the 12 Federal Reserve Banks. The expense for the first six months of operation, ending November 20 ? 1915, was estimated at $1,037.30, an amount relatively so small that the Federal Reserve Board decided without creating precedent to charge this amount against the funds derived from the regular semiannual assessment for expenses of the Federal Reserve Board. A detailed statement of the expenses of the fund is as follows: Equipment.... Printing; Telegrams Consultation, prior to opening $412.01 196. 80 228. 49 200. 00 Total 1,037. 30 Total amount of clearings to Nov. 26y 1915. Total clearings. Previously reported Settlement of— Oct 28 Nov. 4 Nov 11 Nov. 18. Nov. 26. Total j $548,153,000 i ! 40,046,000 37.227,000 1 43,317,000 50,945,000 44,937,000 i 764,625,000 ! Balances.. $110,720,000; 9,385,000 3,934^000 5,729,000 8,953,000 8,727,000 147,448,000 402 FEDEKAL RESERVE BULLETIN. DECEMBER 1,1915. Gold settlement fund—Summary of transactions Oct. 22, 1915, to Nov. 25, 1915. Federal Reserve Bank of— Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total. Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total. Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago SULouis Minneapolis Kansas City Dallas San^Francisco Total. Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis KansasCity Dallas San Francisco Total Gold. Balance last statement, Withdrawn. Oct. 21, 1915. Transfers. ! Deposited. 620, 734, 339, Debit. Settlement of Oct. 28,1915. . 1810,000,000 Total debits. Net debits. Credit. $118,000 177,000 1,098,000 I 384,000 9,000 143,000 $118,000 500,000 2,300,000 55,470,000 10,000,000 118,000 Gold. Balance last statement Oct. 28, 1915. Withdrawn. 40,046,000 9,385,000 I Deposited. | Debit. I Credit. Net debits. I Total debits. $1,794,000 757,000 1,034,000 $6,272,000 9,893,000 4,919,000 788,000 3,153,000 ! 1,460,000 i 4,496,000 3,720,000 104,000 349,000 1, 738,000 573,000 111,000 0,000 90,000 63,170,000 I 2,450,000 3,934,000 Gold. $2,644,000 34,000 1,258,000 1,940,000 844,000 160,000 ,556,000 835,000 $5,264,000 4,492,000 3,163,000 4,934,000 7,169,000 2,745,000 11,336,000 4,659,000 4,982,000 2,908,000 7,000,000 4,518,000 40,046,000 9,385,000 63,170,000 824,000 337,000 ,365,000 591,000 468,000 605,000 Settlement of Nov. 4,1915. Transfers. 264,000 I 492,000 ! 163,000 ! 934,000 I 169,000 i i $400,000 I 745,000 ! 1 850,000 j . 336,000 I 4,659,000 4, 982,000 | 11,000,000 2, 908,000 ! 7, 000,000 ! 4, 518,000 1 1200,000 Balance i last istatement j WithNov. 4,1915.! drawn. 118,000 Net credits. $4,009,000 $6,653,000 17,132,000 ! 7,890,000 4,635,000 ' 5,459,000 627,000 964,000 3,219,000 4,584,000 1,608,000 2,199,000 3,503,000 ; 3,971,000 3,645,000 i 4,250,000 $9,242,000 T 1,100,000 700,000 I Total credits. 37,227,000 Total credits. Nov. 4, 1915, balance in fund after I Net credits. clearing. 478,000 136,000 885,000 082,000 193,000 i 268,000 ! 060,000 039,000 485,000 389,000 065,000 147,000 492,000 36,000 470,000 735,000 129,000 228,000 899,000 703,000 900,000 978,000 363,000 559,000 492,000 354,000 3,934,000 60,810,000 $294,000 40,000 808,000 564,000 319,000 1,381,000 37,227,000 Settlement of Nov. 11,1915. Transfers. Oct. 28, 1915, balance in fund after clearing. Nov. 11, 1915, [ balance in I fund after ! clearing. Total debit. Total credit. Net credit. $6,626,000 11,010,000 5,954,000 1,002,000 4,680,000 2,384,000 3,342,000 3,785,000 743,000 2,203,000 1,461,000 127,000 $1,097,000 I. : 1,000,000 j . . 2 250,000 | ! |. $5,529,000 16,739,000 5,440,000 863,000 4,676,000 1,572,000 3,048,000 3,141,000 148,000 1,659,000 490,000 12,000 514,000 139,000 4,000 812,000 294,000 644,000 595,000 544,000 971,000 115,000 $4,567,000 3,006,000 2,643,000 5,367,000 6,903,000 2,515,000 12,194,000 5,622,000 4,958,000 3,103,000 8,213,000 4,469,000 60,810,000 ! 2,500,000 • 5,250,000 j j 5,729,000 j 43,317,000 43,317,000 5,729,000 63,560,000 t $3,470,000 3,735,000 2,129,000 5,228,000 6,899,000 2,703,000 11,900,000 4,978,000 5,363,000 2,559,000 7,492,000 4,354,000 ~U. | ! | Net debits. Credit. 1 $5,729,000 ji $1,000,000 I Withdrawn. Settlement of Nov. 18,1915. Transfers. Gold. Nov. 11, 1915. Deposited.) Debit. $6,000,000 500,000 100,000 "is'ooo" I Credit. Net debit. $50,000 j i *i50, OCC 14,260,000 11,000,000 i j j j i 63,560,000 j 5,410,000 44,000 $6,115,000 1,936,000 $22,000 242,000 4,260,000 463,000 6,000 "439," 666' 69,000 2 230,000 11,090,000 i Transfer to Feder 1 Reserve Agent. Debit. i $5,000,000 j i I 1 Balance last statement, $4,567,000 3,006,000 2,643,000 5,367,000 i 6,903,000 I 2,515,000 i 12,194,000 i 5,622,000 j 4,958,000 i 3,103,000 ! 8,213,000 4,469,000 Deposited, j 0,000 264,000 I 264,000 j 8,953,000 2 Nov. 18, 1915, balance in fund after Net credit. clearing. Total debit. Total credit. $7,640,000 16,249,000 7,358,000 1,078,000 4,107,000 1,847,000 5,293,000 5,343,000 104,000 l,403,000i 505,000 18,000 $8,650,000 10,134,000 5,422,000 3,222,000 5,840,000 1,384,000 5,396,000 4,904,000 540,000 3,462,000 797,000 1,194,000 $1, 010, 000 436,000 2,059,000 292,000 1,176,000 $5,527,000 2,891,000 1,192,000 7,589,000 8,636,000 2,144,000 12,291,000 4,183,000 5,325,000 5,162,000 8,505,000 5,795,000 50,945,000 50,945,000 8,953,000 69,240,000 2, 144, 000 1, 733, 000 103, 000 Transfer from Federal Reserve Agent. Gold settlement fund—Summary Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas.. San Francisco Total 403 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. Balance last statement, Nov. 18, 1915. of transactions Oct. 22 , 1915, to Nov. 25, 1915—Continued. Withdrawn. $5,527,000 2,891,000 1,192,000 7,589,000 8,636,000 2,144,000 12,291,000 4,183,000 5.325,000 5,162,000 8,505 000 5,795,000 69,240,000 Settlement of Nov. 26, 1915. Transfers. Gold. Deposited. '$5*666,666' 96*666' Credit. Debit, $346,000 74," 666* 292,000 33,000 50,000 5,090,000 712,000 Federal Reserve Agents1 fund—Summary Total debits. 712,000 Total credits. $5,117,000 12,175,000 5,926,000 871,000 4,729,000 5i7,"666" 1,821,000 2,525,000 7,602,000 1,426,000 5,140,000 124,000 1,149,000 269,000 14,000 $4,864,000 8,169,000 8,724,000 2,106,000 5,2/1,000 1,304,000 5,077,000 3,714,000 629,000 2,395,000 929,000 1,755,000 8,727,000 44,937,000 $253,000 4,006,000 $15,000 "*""292*666* 322,000 Net debits. 44,937,000 Net credits. Nov. 26, 1915, balance in fund after clearing. 505,000 1,246,000 660,000 1,741,000 $5,259,000 3,885,000 3,990,000 9,170,000 9,268,000 1,409,000 9,736,000 2,757,000 5,797,000 6,358,000 9,165,000 7,536,000 8,727,000 74,330,000 $2,798,000 1,235,000 542,000 of transactions Oct. 22', 1915, to Nov. 26, 1915. Oct. 21, 1915, balance. Federal Reserve Agent at— Richmond Atlanta Minneapolis Dallas San Francisco.. Total. Week ending Oct. 28, 1915. Week ending Nov. 4, 1915. Deposited. Balance. Deposited. $7,300,000 8,500,000 $1,100,000 700,000 $8,400,000 9,200,000 1,000,000 4,400,000 $400,000 850,000 1,000,000 500,000 1,500,000 4,400,000 200,000 $8,800,000 10,050,000 1,000,000 1,500,000 4,600,000 21,200,000 2,300,000 23,500,000 2,450,000 25,950,000 Week ending Nov. 11,1915. Week ending Nov. 18,1915. Balance. Week ending Nov. 26, 1915. Federal Reserve Agent at— Withdrawn. Richmond Atlanta Chicago St. Louis Minneapolis Dallas San Francisco Total. Withdrawn. Deposited. Balance. $1,000,000 $8,800,000 11,050,000 $250,000 1,000,000 500,000 2,000,000 1,750,000 4,600,000 $230,000 250,000 2,500,000 28,200,000 230,000 Deposited. $150,000 4,260,000 1,000,000 5,410,000 Balance. Deposited. Balance. $8,800,000 11,200,000 4,260,000 1,000,000 2,000,000 1,750,000 4,370,000 800,000 200,000 260,000 000,000 000,000 750,000 370,000 33,380,000 33,380,000 DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Nov. 26, 1915. Maturities of 10 days . and less. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City... Dallas San Francisco. Trade acceptances. AgriculMaturities Maturities Maturities tural and of over 10 of over 30 of over 60 live-stock to 30 days, to 60 days, to 90 days, paper over To 60 days, Over 60 to inclusive. inclusive. inclusive. 90 days, 90 days. inclusive. inclusive. Commodity paper. 13 13 3 1 Rate for commodity paper maturing within 90 days. 2 Rate for commodity paper maturing within 30 days, 3 per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4J per cent; over 90 days, 5 per cent. 404 FEDERAL RESERVE BULLETIN. DECEMBER 1, 1915. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from time to time over the signatures of the officers of the Federal Reserve Board, which contain information believed to be of general interest to Federal Reserve Banks and member banks of the system: Payment for Unfit Notes. A committee of the Federal Reserve Board has had under consideration the question whether Federal Reserve Agents should be permitted to make transfers from the Federal Reserve Agents7 fund to the credit of their banks in the gold settlement fund, in payment of unfit Federal Reserve notes shipped by the banks to the Comptroller of the Currency. This committee has reported as follows, which report has to-day been approved by the Federal Reserve Board: "There is no objection to such transfers, provided that these transfers are being made in amounts which are multiples of ten thousand. It is important that the principle be observed that no payment or transfer should be made which can not be settled by the use of $10,000 gold certificates." No ruling has yet been made as to who shall forward and pay charges for shipment of notes. Liquidating Banks. I am instructed to advise you that the Board is of the opinion that the provision in section 5222, Revised Statutes, requiring a national bank to deposit with the Treasurer of the United States lawful money of the United States sufficient to redeem all its outstanding circulation within six months from the date of the vote to go into liquidation is mandatory, and this office has no authority to grant any extension of time. Acceptances. Your letter of October 19, inquiring whether a 90-day sight draft drawn by a firm in Calcutta on a company in Boston and accepted by that firm, covering a transaction involving the transportation of merchandise from Calcutta to Honolulu, should He accepted by you as an eligible banker's acceptance is received. My impression is that it could not be accepted as a banker's acceptance, but could be as a trade acceptance. It is supposed that the company is not granting a banker's credit in order to finance a shipment of goods from Calcutta to Honolulu, but probably the company has bought the goods in Calcutta and is shipping them to Honolulu as a consignment or as the consequence of a sale there. It is true that our regulation permits as eligible the acceptance of a firm " engaged in the business of accepting or discounting,' but my understanding is that this accepting must be done by the firm or corporation acting as banker; that is to say, granting an acceptance credit and not simply using its acceptance to finance its own transactions. T; Whether or not my reasoning is correct in this instance will, of course, depend upon the details of the transaction and the position therein occupied by the company. As to that, you will be in a better position to find out than the Board. OCTOBER 26, 1915. Use of Official Stationery. I am sending you attached a letter addressed to the Comptroller of the Currency by a director of a Federal Reserve Bank, and written on the letterhead of your bank, touching a matter in controversy between a national bank of which he is president and the office of the Comptroller regarding charging off some real estate owned by his bank. The matter in question has no reference to the activities of the Federal Reserve Bank or the writer's function as a director of the bank. Some question has in consequence been raised as to the propriety of his using the letterhead of your bank in this correspondence and over his signature as a director of said bank. I am inclined to think that bad taste has been shown by the writer of the letter in this matter, and I believe it would not be improper for you, in such way as you deem best, to call his attention to it. OCTOBER 27, 1915. Cancellation of Bonds. Your letter of October 28, asking that the bond of the Deputy Federal Reserve Agent of your bank be returned to you for cancellation, has been received and considered by the Board. These bonds were, of course, in force during the period that your associate served as Deputy Federal Reserve Agent and should therefore be retained as a part of the records of this office. If you desire to take up with the company the question of repaying any premiums for the unexpired period covered by these bonds, it should be sufficient for you to furnish to such company a certificate to the effect that your associate resigned as Deputy Federal Reserve Agent on a given date. A copy of this certificate may be filed with the bonds in this office as a mater of record. Although the premium was paid for one year, the bond will, of course, be effective only for the period of service as Deputy Federal Reserve Agent, and evidence of the termination of this service should be sufficient for the bonding company. NOVEMBER 1, 1915. Clayton Act Interpretations. I wish to acknowledge receipt of your letter of October 29, 1915, relating to the construction of section 8 of the Clayton Act. * You are advised that the Counsel for the Federal Reserve Board has ruled, in an opinion dated November 21, 1914, and printed on page 27 of the May Bulletin, that the two-year limitation of section 8 applies to all three paragraphs and not merely to the first and third paragraphs of that section. Regarding your second question, namely, whether the provisos in the second paragraph of section 8 apply to the entire section or merely to the second paragraph, you are advised that Counsel for the Board is of the opinion that all three provisos in that paragraph apply to the first as well as to the second paragraph of section 8, and that, therefore, a man may be a director or other officer or employee of two banks or trust companies if the entire capital stock of one is owned by the stockholders of the other, regardless of the amount of deposit, capital, surplus, and undivided profits, and regardless of the location of either bank. NOVEMBER 1, 1915. Your letter of October 4, requesting information regarding the requirements of the Clayton Antitrust Law, is received. Your letter has been referred to Counsel, who is of the opinion that a violation of the terms of that act would not be committed by your continuing to qualify after October 15, 1916, as a director and officer in five incorporated banks located in as many villages of less than 1,000 15730—15 405 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. 3 population each, organized and operating under the laws of Michigan, the total resources of none of which State banks exceeds $500,000, and at the same time continuing to qualify as a director and an officer of a national bank in the State, whose total resources are slightly in excess of five and one-half million dollars, provided none of the State banks in question is a member of the Federal Reserve System. OCTOBER 7, 1915. You are advised that the Clayton Antitrust Act does not prohibit an officer or director of a national bank with total assets of less than $5,000,000 from serving at the same time as an officer or director in a State bank or trust company with total assets of less than $5,000,000, provided, that the banks in question are not both located in the same city of 200,000 inhabitants or more. Section 8 of the Clayton Antitrust Act does not, therefore, prohibit a person from serving as a director of two banks of the kind and under the circumstances mentioned by you. NOVEMBER 18, 1915. Identification of Specific Goods Under Acceptances. The inquiry contained in your letter of the 4th instant, viz, whether or not the Second National Bank can give its assurance that its acceptance is based upon an import or export transaction without being able to identify the specific goods covered by the transaction, has been placed before the Federal Reserve Board. The Board has authorized me to say to you in reply that it is not necessary that the specific goods covered by the acceptance must be identified at the time of the acceptance. As a matter of fact, the law says that the transactions must ilinvolve" the importation or exportation of goods, and I refer you to a ruling of the Board in this respect, from which you may see that the goods may be purchased and shipped subsequent to the time of the first acceptance (p. 276 of the Bulletin of Sept. 1); provided, however, that there is a definite, bona fide contract for the shipment of the goods involved within a specified and reasonable time. In a similar manner, upon payment of the acceptance, the accepting bank may, for a reasonable period, accept new drafts for the financing of the original transaction, even after the shipment and delivery of the goods; provided, however, that such renewals be stipu- 406 FEDEBAL BESERVE BULLETIN. lated in the original contract as an incidental condition of the transaction of importation or exportation upon which the acceptance is based. Your correspondent appears to raise the further question as to the evidence that he mayaccept as covering his own certification in the matter. The Board feels that, in this matter, good faith must be relied upon to a large extent, and that a member bank would be justified in putting on the legend: "This acceptance is based upon a transaction involving the importation or exportation of goods;" provided, it is satisfied the statement by its customer is made in good faith. You are aware of the fact that the Federal Reserve Bank reserves the right to ask State member banks for evidence underlying the certification given to it, and the bank examiner may require evidence from the national bank. Member banks would, therefore, best protect themselves by stipulating for themselves the right at times to ask for substantiation of the assurances given by their customers that the proceeds have been or are to be used for transactions involving the importation or exportation of goods, unless the documents passing through the hands of the member banks furnish the acceptor with sufficient evidence of the transaction. NOVEMBER 9, 1915. Potatoes Not Security for Commodity Loans. By direction of the Board I have the honor to return herewith the file of papers relating to the use of potatoes as a basis for commodity loans at Federal Reserve Banks. The Board has directed me to say that, in its judgment, potatoes not being a nonperishable product, are unsuitable for use as a basis for rediscount under the commodity rate circular. NOVEMBER 10, 1915. Stock Adjustments. Your attention is invited to my letter dated March 13, last, relative to the matter of stock adjustments, in which you were requested to ask member banks to file their applications quarterly—that is, on the 1st days of January, April, July, and October of each year—in all cases where additional stock is applied for or where member banks desire to surrender or cancel a part of the stock held. With a view to having the practice uniform in the different Federal Reserve Banks, it is suggested that such applications be received DECEMBER 1,1915. during the first month of the quarterly period, at the end of which time they should, be forwarded to the Board, and that those received thereafter during that quarter be held and forwarded with others at the beginning of the next quarter, unless there is some special reason why a particular application should have action at an earlier date. It will facilitate the work here if a certificate of increase or decrease, as required by section 5 of the Federal Reserve Act, is filed as of the last day of each quarter. This will enable the office to adjust its records with those of the Federal Reserve Banks at the beginning of each quarter. NOVEMBER 16, 1915. Purchase of Commodity Loans. I acknowledge receipt of your letter of November 12 asking whether it would be proper for your bank to buy from member banks commodity loans without their indorsement, and have to reply that the transaction in question would fall under the open-market section of the Act (sec. 14), and more particularly paragraph C, which authorizes Federal Reserve Banks to purchase from member banks bills of exchange arising out of commercial transactions. So far, therefore, as concerns the propriety of your bank buying paper from its member banks without indorsement, there appears to be no question, provided the paper is otherwise eligible. You will note, however, that such purchases are limited in paragraph C to bills of exchange, while the commodity loans that you appear to have in mind are in form ordinary promissory notes or one-name paper. Unless, therefore, there is two-name commodity paper, or such paper can be created in connection with commodity loans, the transaction would not come within the provisions of the law, the "discount of notes (promissory notes)" being limited to operations under section 13 where the indorsement of a member bank is a prerequisite. NOVEMBER 16, 1915. Loans by Member Banks. The Act does not make it obligatory upon member banks to loan money to farmers on warehouse receipts, but if they do make such loans at 6 per cent it is possible for them to rediscount the notes at the Federal Reserve Bank for the district in which they are situated at 3 per cent, making a profit of 3 per cent on the transaction. This means that they may make a loan of $1,000 in your city, send the note to the Federal Reserve Bank with proper warehouse receipt and certificate of insurance attached, and receive a similar loan on this paper from the Federal Reserve Bank. This, as you will see, enables them to rediscount the paper and repeat the operation with a profit of 3 per cent in each instance. Interest rates which may be charged are generally covered by State law. A bank which replies to your request for a loan, that it has loaned to the limit, may, if it has notes which comply with the definition of commercial or other discountable paper, send this paper to the Federal Reserve Bank for rediscount and so be able to reloan the money which it thus receives. NOVEMBER 20, 1915. PRESS STATEMENTS. Various questions have been brought before the Federal Reserve Board with reference to the elections of directors which are now in progress. In some districts it has appeared that only one eligible candidate was nominated for a given place, and the question has arisen how the preferential voting system under the Act shall be carried on. The Federal Reserve Board has taken the view that where only one or two candidates are nominated preferential ballots may be limited to one or two choices as the case may be, without invalidating the ballot, but that where three or more candidates are nominated the preferential ballot must be completely filled. In the case of electors representing the several banks, empowered to cast the ballot of those banks, the Board is urging the election of such electors. Where directors7 meeting of member banks are not to be held for some time to come, it is permitting the elector chosen last ear to cast the ballot of the bank this year, a addition, however, the Board is recognizing the chairman of each bank as being in full charge of the process of electing electors and directors, and it has to-day sent all Federal Reserve Agents, in accordance with this theory, the Following telegram: "Organization Committee in holding previous elections acted as chairman of Board of Federal Reserve Banks, and its rulings were made in that capacity. Questions submitted involve interpretation of United States stat- S 407 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. utes. In making rulings in present election you may consult counsel for bank, or are at liberty to consult counsel for Board, who will advise you as to rulings by Organization Committee in previous elections for your information. While it is desirable that procedure in all districts should be uniform and suggestions are made to that end, determination of questions arising under statute rests with chairman of board of each bank." NOVEMBER 8, 1915. A committee appointed by the Federal Reserve Board to consider appeals from the decisions of the Reserve Bank Organization Committee regarding the determination of Federal Reserve districts and cities, to-day reported to the Federal Reserve Board that the following appeals are now pending: First, the appeal of Baltimore that it be selected in preference to Richmond as the Federal Reserve city of the fifth district. Second, the appeal of Pittsburgh that it be selected in preference to Cleveland as the Federal Reserve city of the fourth district. Third, the appeal of a group of banks in certain counties of Wisconsin that they be taken out of the Minneapolis district and added to the Chicago district. Fourth, the appeal of certain banks in the western half of Connecticut that they be taken out of the Boston district and added to the New York district. Fifth, the appeal of certain banks of Louisiana that they be included in the Atlanta district and operate through the New Orleans branch in preference to being included in the Dallas district. The committee asked for instructions as to whether these five cases be dealt with in a comprehensive way by considering the broader question of readjustment of districts or whether it should handle each question by itself. There was also presented to the Board an opinion of the Attorney General of the United States dealing with some phases of the legal right of the Board in regard to action on such appeals. After a general discussion of the whole situation, it was unanimously agreed that further investigation of the powers of the Board with reference to the whole question was required before any action could be taken, and the report of the committee was laid on the table pending the making of further investigation of the subject. NOVEMBER 22, 1915. 408 FEDERAL RESERVE BULLETIN. Intradistrict Clearing System. Additions to and withdrawals from the system since the publication of the lists in previous issues of the Bulletin are as follows: DISTRICT NO. 2. Additions: Orange National Bank, Orange, N. J. Mariner Harbor National Bank, Mariner Harbor, N.Y. Stapleton National Bank, Stapleton, N. Y. Withdrawal: First National Bank, Dtmellen, N. J. DISTRICT No. 3. Addition: Manayunk National Bank, Philadelphia, Pa. Withdrawals: First National Bank, Liverpool, Pa. Mount Jewett National Bank, Mount Jewett, Pa. DISTRICT NO. 4. Addition: First National Bank, Bucyrus, Ohio. Withdrawal: Commercial National Bank, Pittsburgh, Pa. DISTRICT No. 5. Withdrawal: National Bank of Greenville, Greenville, N. C. DISTRICT NO. 6. Addition: Farmers National Bank, Fayetteville, Tenn. Withdrawal: First National Bank, Quitman, Ga. DECEMBER 1,1915. Withdrawals—Continued. Houston National Exchange Bank, Houston, Tex. Citizens National Bank, Waco, Tex. Waxahachie National Bank, Waxahachie, Tex. Citizens National Bank,, Weatherford, Tex. City National Bank, Wichita Falls, Tex. DISTRICT NO. 12. Additions: First National Bank, Calexico, Cal. Citizens National Bank, Redlands, Cal. First National Bank, Santa Maria, Cal. Withdrawals: Citrus National Bank, Exeter, Cal. First National Bank, Fullerton, Cal. Fiduciary Powers. Applications from the following banks for permission to act under section 11 Qc) of the Federal Reserve Act have been approved since the issue of the November Bulletin, as follows: DISTRICT No. DISTRICT No. DISTRICT No. 7. Additions: Farmers and Merchants National Bank, Ben ton Harbor, Mich. First National Bank, Morrisonville, 111. Withdrawals: First National Bank, Waterloo, Iowa. Leavitt and Johnson National Bank, Waterloo, Iowa. DISTRICT NO. 11. 3. Trustee, executor, administrator, and registrar of stocks and bonds: Peoples National Bank, Laurel, Del. DISTRICT No. 5. Trustee, executor, administrator, and registrar of stocks and bonds: r First National Bank, Newport News, Va. DISTRICT NO. DISTRICT NO. 8. Addition: Staunton National Bank, Staunton, 111. Withdrawals: Simmons National Bank, Pine Bluff, Ark. State National Bank, Texarkana, Ark. First National Bank, Stuttgart, Ark. 2. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Long Branch, N. J. First National Bank, Hoboken, N. J. Essex County National Bank, Newark, N. J. Merchants National Bank, Newark, N. J. Peoples National Bank, New Brunswick, N. J. City National Bank, Plainfield, N. J. 6. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Tuscaloosa, Ala. DISTRICT NO. 7. Trustee, executor, administrator, and registrar of stocks and bonds: City National Bank, Clinton, Towa. Trustee, executor, and administrator; First National Bank, Traverse City, Mich. Withdrawals: First National Bank, Canton, Tex. DISTRICT No. 9. Coleman National Bank, Coleman, Tex. Trustee, executor, administrator, and registrar of stocks American National Bank, Fort Worth, Tex. and bonds: Farmers & Mechanics National Bank, Fort Worth, Tex. City National Bank, Oshkosh, Wis. First National Bank, Fort Worth, Tex. DISTRICT NO. 12. Fort Worth National Bank, Fort Worth, Tex. First National Bank, Gainesville, Tex. Trustee, executor, and administrator: Lindsay National Bank, Gainesville, Tex. First National Bank, Junction City, Oreg. DECEMBER 1,1915. FEDERAL RESERVE BULLETIN. 409 LAW DEPARTMENT. The following opinions of counsel have been are b}^ law required to carry reserve against authorized for publication by the Board since them in the same manner and to the same extent as such banks carry reserve against other the last edition of the Bulletin: deposits. Reserve Against Postal Savings Deposits. In prescribing reserve to be carried under All member banks must maintain the amount of reserve prescribed by section 19 of the Federal Reserve Act against the provisions of the Federal Reserve Act by member banks, a distinction is made between all public deposits, including postal savings deposits. time and demand deposits. It is understood NOVEMBER 5, 1915. by this office, however, that all postal savings SIR: This office has been requested to give deposits are subject to demand and can not be an opinion on the question of whether or not classed as time deposits. national banks are required to carry reserve Under the terms of the Federal Reserve Act, against postal savings deposits. therefore, all member banks should maintain Section 5191 of the Revised Statutes, which the amount of reserve prescribed by section 19 prescribes the amount of reserve to be carried of the act against public as well as against by national banks, did not exempt from its other deposits. provisions public deposits. The Secretary of Respectfully, the Treasury, on October 4, 1902, issued a cirM. C. ELLIOTT, Counsel. cular letter to the effect that the comptroller To Hon. CHARLES S. HAMLIN, and the Secretary would not enforce penalties Governor Federal Reserve Board. for failure to maintain reserve against banks failing to carry reserve against public deposits. The act of May 30, 1908, commonly known Nebraska Law Relating to the Guaranty of Deposits. as the " Aldrich-Vreeland Act/ 7 provided in The following opinion of the Solicitor of the section 14: Treasury holds that national banks located "That the provisions of section 5191 of the in Nebraska can not avail themselves of the Revised Statutes with reference to the reserve of national banking associations shall not apply privileges offered by the laws of that State, reto deposits of public moneys by the United lating to the guaranty of deposits: States in designated depositories." WASHINGTON, November 8, 1915. This act expired by limitation under its Hon. J. S. WILLIAMS, terms on the 30th day of June, 1914, but its proComptroller of the Currency. visions were extended, by section 27 of the SIR: I am in receipt of your letter of the 3d instant, inFederal Reserve Act, to June 30, 1915, with closing a copy of the banking laws of the State of Nebraska and requesting to be advised whether national banks the proviso that section 5191, above referred located in that State can be permitted to avail themselves to, and certain other sections which were of the State law for guaranty of deposits. amended by the act of May 30, 1908, be reSection 344 of the State laws referred to provides that—• enacted to read as such sections read prior to "Whenever by act of Congress, or by decision of a Federal court, or departmental construction of the national bankMay 30, 1908, subject, however, to such ing act, national banking associations located and doing amendments or modifications as were pre- business within this State are permitted to avail their deof the protection of the depositors' guarantee fund, scribed in the Federal Reserve Act. Ac- positors established by the law of this State for the payment of cordingly, section 5191 as reenacted does not deposits in closed banks, any such association, after examination at its expense by the State banking board or its exempt public deposits from reserve require- agent, and upon its approval as to its financial condition ments (which requirements have been mate- may participate in the assets and benefits of the deposirially reduced by the provisions of the Federal tors' guarantee fund upon terms and conditions in harmony with the banking law of this State to be fixed by said board: Reserve Act), and banks holding such deposits Provided, In the event national banking associations shall 410 FEDEBAL RESERVE BULLETIN. be required by Federal enactment to pay assessment to any depositors' guarantee fund of the Federal Government, and thereby the depositors in such associations in this State shall be guaranteed by virtue of Federal laws, that the associations having availed themselves of the benefits of this article, may withdraw therefrom and have returned to them seventv-five per cent of the unused portion of all assessments levied upon and paid by such associations." I do not know exactly what terms and conditions have been fixed by the State banking board of Nebraska permitting national banks to avail themselves of the benefits of the State law, but such terms and conditions would have to be in harmony with the banking laws of the State. These laws provide for assessments against the capital of a bank to raise and maintain a fund for the guaranty of deposits, sections 324, 325, 326, 327; for examinations and reports by State examiners, section 287; for the appointment of a receiver in case of insolvency or violation of the State laws, section 328; for such receiver to take and retain possession of the bank, its moneys, rights, credit, and property of every description, section 335; for priority in payment of claims, section 332, etc. These provisions would be in conflict with the laws of the United States pertaining to national banks. Section 5204 of the Revised Statutes of the United States prohibits a national bank from withdrawing or permitting to be withdrawn '' either in the form of dividends or otherwise" any portion of its capital; section 5234 provides for the appointment of receivers and their taking possession of the books, records, and assets of every description of an insolvent national bank; section 5241 prohibits any visitorial powers other than such as are authorized by the national-banking laws or are vested in the courts of justice; section 5236 provides for a ratable distribution of the assets of an insolvent national bank among the creditors without priorities except as to any deficiency that may be due the United States upon the redemption of the bank's notes, etc. I therefore answer the inquiry contained in your letter in the negative. I have refrained from discussing this matter at any length for the reason that it was very fully discussed in an opinion of this office of March 16,1908, to the Secretary of the Treasury (a copy of which I inclose herewith) in relation to national banks availing themselves of the depositors' guarantee fund under the laws of the State of Oklahoma. This opinion was approved by the Attorney General in 27 Opinions, 37, and 27 Opinions, 272. It appears, however, that he did not ground his conclusion on the fact that national banks are without the power to contract for insuring the payment of depositors in full. (Opin. A. G., Mar. 31, 1915.1) The copy of the banking laws of Nebraska which accompanied your letter is herewith returned. Very respectfully, LAURENCE BECKER, Solicitor. i See p. 29 of May Bulletin. DECEMBER 1,1915. GENERAL BUSINESS CONDITIONS. General business and banking conditions are described in reports made by Federal Reserve Agents for the 12 Federal Reserve Districts. Below are given in detail digests of conditions in the various districts substantially as reported by Federal Reserve Agents. DISTRICT NO. 1—BOSTON. There has been but little change in business conditions in this district during the past month. Business has improved but slightly, if at all. Economies which have been practiced by all classes for the last year or two are perhaps not being so rigidly observed, and the public generally is spending money more freely than in the past. This is presumably due to a large extent to the general improvement in conditions and especially to the fact that labor is more generally employed. Money rates show no advance, the tone being decidedly easy and the supply large. The withdrawals for the second payment of reserve to the Federal Reserve Bank and the withdrawal of the money deposited in connection with the Anglo-French loan have apparently had little effect on the local banks. Loans and discounts of the Boston banks show an increase over last month of $25,754,000 and demand deposits have increased from $324,482,000 to $338,489,000 in the same time. The amount "due to banks" by the Boston banks has decreased $6,502,000 in the past month. The excess reserve of Boston banks has increased as follows: November 13, 1915, $65,512,000; October 16, 1915, $78,831,000. Exchanges of the Boston Clearing House banks for the week ending November 13, 1915, were $196,767,337, as compared with $203,964,782 in the week ending October 16, 1915, and $138,952,738 in the corresponding week last year. Building and engineering operations in New England from January 1 to November 10, 1915, $152,925,000, compared with $144,494,000 in 1914, and show an increase during the last month of $14,017,000. DECEMBER 1,1915. FEDERAL RESERVE BULLETIN. 411 The boot and shoe industry does not show Exports and imports for October at the port of Boston compare with previous years as much improvement over last month, but a decided improvement over two months ago. follows: Orders are coming in steadily from the West Exports: and especially from the South. Wholesalers 1915 $8,703,362 1914 9,766,318 report that the stocks of retailers are lower 1913 6,518,390 than for some years and that in many cases Imports: retailers are asking for early delivery. Busi1915 11,854,449 ness in women's shoes has become a matter of 1914 11,059,171 styles and retailers hesitate to order any amount 1913 9,398,952 in advance. In men's standard styles the Receipts of the Boston post office for spring orders are good, especially in the cheaper October show an increase of about 2 per cent grade of shoes selling at $4 or under, the busiover the same month in 1914, and for the first ness in the better grades being more quiet. 15 days of November show an increase of The shoe business for European countries is $50,000, or nearly 15 per cent over the corre- pretty well cleaned up, there being but one sponding period of last year. order of any size reported in this district, that The Boston & Maine Railroad reports for the being for high boots. three months ending September 30, 1915, a net The cotton-mill situation is little changed. operating revenue of $4,164,745, as compared Labor is very fully employed and mills are runwith $2,944,590 for the same period in 1914, ning at capacity. The fine-goods mills are and net income of $1,374,474, as compared making money, due to a large extent to the with $126,619 in 1914. New York, New cutting off of importations of this class of goods Haven & Hartford Railroad reports for the by the European war. These mills are buying quarter ending September 30, 1915, net after cotton to cover orders as they are received. taxes, $6,470,688, an increase of $1,497,216 The mills in New Bedford are doing a good over the same period last year, and surplus business and several mills that have not paid over charges of $2,096,048, as compared with dividends for some time are resuming payments. $1,228,376 in 1914. In coarse goods the situation is not so satisfacThere were 156 failures in this district dur- tory, except in the mills making heavier fabrics. ing October, 1915, with total liabilities of Southern cotton mills have continued to put $1,970,300, as compared with 138 in October, out goods at prices lower than Fall River mills, 1914, with liabilities of $1,535,314. and consequently a larger share of the business The demand for money is small and rates re- than normal has gone to the South. The feelmain about the same as last month. Call loans, ing is that there is not much profit in the regu3 per cent; time loans, 3 to 3 | per cent for lar lines at current prices, if cotton to cover short dates and 3J to 4 per cent for six months. these orders must be bought at the present Commercial paper, 3 to 3J per cent. Town market, with the possible exception of some of notes, 2.10 to 2.40 per cent. Ninety-day the heavier goods. The dye situation is still bankers1 acceptances, 2 to 2f per cent. serious and the demand for cotton fabrics in the Woolen mills are extremely busy and the gray for dyeing has slackened perceptibly durworsted mills have shown considerable im- ing the last two weeks. provement during the last month. A very Bond houses report a good volume of busilarge percentage of the business of the woolen ness in high-grade railroad and municipal mills is emergency orders for European na- bonds. The savings banks have money to tions; in some places this is estimated to be invest, and one or two new issues legal for as high as 50 per cent. Demand for wool is savings banks in Massachusetts have been sold somewhat better and prices are stronger. quickly. 412 FEDERAL RESERVE BULLETIN. DISTRICT NO. 2—NEW YORK. Activity and improvement of trade and industry continued during October. Retail and department stores report business very much better, with an increasing demand for higher grade goods. Orders for steel are reported as very heavy, notwithstanding steadily advancing prices and output. Pig-iron production in October was 3,125,000 tons, which exceeds all previous monthly records. Leading wholesale houses have given information on various lines of business as follows: Dry goods and textiles—market conditions very good, sales large, payments prompt and anticipated. Leather—improvement in all lines, largely from foreign demand, but domestic sales large and growing and collections good. Coffee—sales much larger and collections better than a year ago. Sugar—very active, market showing general improvement and good collections. Meats and provisions—a great improvement in business during the past month. Real estate agents report more activity in renting offices and rents increasing in some buildings. New York Clearing House banks on November 20 report loans, etc., $3,131,463,000; deposits, $3,370,206,000; and excess reserves, $193,674,960. Compared with the figures • of October 2, loans, etc., increased $351,013,000, deposits $409,646,000, and excess reserves decreased $2,697,170. In October, $104,490,000 par value ot bonds sold on the New York Stock Exchange, an increase of $22,828,500 over September, and $26,639,081 shares of stocks, an increase of 8,141,284 over the previous month. There has been a marked increase in activity in the bond market and a strong demand for the railroad issues. The s^ock market continues active but the trading is more general in character with larger dealings in railroad shares. Other statistics for October, 1915, compared with October, 1914, are the following: Exchanges through New York Clearing House, $12,739,878,692.18, an increase of $7,130,441,714.09. These figures are higher than ever before, the DECEMBER 1,1915. previous high monthly record being $11,249,075,000 in January, 1910. New York City building permits, 66, for structures to cost $2,420,750, increased 28 in number, but decreased $1,130,325 in amount. New York State failures, 225, with liabilities $3,597,170, decreased 62 in number and $1,229,112 in liabilities. New incorporations in the Eastern States, $208,695,000, increased $173,207,500. The total for 10 months is $1,172,167,100, against $775,547,000 for the same period last year. Exports of merchandise from the port of New York, $172,680,402, an increase of $86,599,431. Imports of merchandise at New York, $77,121,468, a decrease of $35,297. The latest figures of the foreign trade of the port of New York show exports for the year to date, $1,316,546,827, against $751,998,543 for the same period last year, and imports, $811,260,119, against $827,451,913. A recent compilation shows the foreign loans and credits arranged here since the European war began amount to $843,250,000. A further credit of $15,000,000 to French banks has been arranged and negotiations are under way for a credit reported to be $50,000,000 to English banks. Between October 9 and November 15, imports of gold received at the assay office, New York, amounted to $85,816,700. From January 1, imports aggregate $339,950,000. Foreign exchange was fairly steady at low levels from about the 1st until the 20th of October when further weakness resulted from the great export movement. The range of quotations at closing rates was: Sterling, 4.724~4.61f; francs, 5.76J-5.97J; marks, 84J814; rubles, 35-33; lire, 6.22-6.47. DISTRICT NO. 3—PHILADELPHIA. Business conditions throughout this district are gradually becoming better and substantial improvement is being reported in nearly all lines. Mills and factories of all kinds are working at nearer normal capacity than for sometime. Some concerns have voluntarily increased wages and reduced working hours, and in many cases pay rolls are larger than they DECEMBER 1,1915. FEDERAL RESERVE BULLETIN. have ever been. There is a dearth of skilled mechanics, and labor generally seems to be fully employed. The railroads are enjoying unusually heavy freight traffic, and the net earnings for September of the principal railroad in the district were the largest for any one month in the history of the company, while gross earnings exceeded all months except August and October, 1913. Kepair shops are working at full capacity. Car movement reports continue to show large increases in the number of both loaded and empty cars being moved, for eastbound and westbound traffic. There are no idle good-order cars. Conditions in the iron and steel industries are very promising. Although the demand for war-order supplies is still large, domestic business has now reached an encouraging stage. * Considerable orders have been received for cars, locomotives, structural steel, rails, etc., prices are advancing, and the outlook is highly satisfactory. The October production of pig iron was the largest ever recorded in any one month. A decided improvement is reported in coal mining, many colleries working to capacity. Shippers, however, are confronted with a shortage of cars, which is likely to check the output to some extent. Crude oil and oil refining are operating at full time, with a good demand and increasing prices. Considerable foreign business is being done. The Delaware Kiver shipyards are busier than ever. The textile trades are running at nearly normal capacity, knitting mills in particular showing much improvement. Silk and lace mills are very busy, and four new mills are being built in eastern Pennsylvania. Many hosiery mills are doing a capacity business, but it is predicted that some will be compelled to close unless a supply of dyes tuffs can be obtained or white hosiery becomes popular. In many instances manufacturers of hosiery have increased their prices. J)rj goods jobbers report satisfactory domestic conditions. The foreign trade is not so good, with the exception 15730—15—4 413 of South America. Prices are advancing, due to increases in the cost of raw materials. Manufacturers of cotton waists and dresses have had an unsatisfactory season. Cloak and suit concerns report difficulty in securing raw materials, while clothing manufacturers say trade has been better than for two or three years. Good business is reported in the manufacture of men's neckwear, shoddy, and umbrellas. Manufacturers of stoves and heating apparatus report business good for heaters but poor for stoves, except for the cheaper grades, there being a demand for the latter in plants recently erected for laborers working in factories specializing in war orders. The leather market continues active and prices are high. Glazed kid dealers report a greater demand and firmer prices, while stocks on hand are only moderate. Boot and shoe manufacturing is increasing and in some lines is approaching normal. Tanning materials have shown considerable advances. The brick and lumber trades are still far from satisfactory, but are showing some signs of improvement. Prices are still very low and profits correspondingly small. Cement production is not up to normal, with only a fair demand. Prices are improved. The slate industry has suffered severely and shows no material improvement. Buying is quite active and business is good in chemicals, paints, and wall paper. The distributors of electrical apparatus and supplies report good conditions. Canneries have not done as well as usual. Agricultural conditions are generally good, and the farmers have had a prosperous year. In some sections the corn crop is only about 60 per cent of normal, due to storms during the growing season. The apple and cranberry crops are reported as satisfactory. The tobacco crop has been good, and it is curing nicely. There is increased activity in the leaf-tobacco market, and satisfactory conditions prevail with regard to cigar manufacturers. General retail trade throughout the district is improved, and merchants, anticipating a 414 FEDEKAL RESERVE BULLETIN. brisk holiday and winter trade, are buying freely. During October a new high record was established for goods shipped through the port of Philadelphia to foreign countries, amounting to $13,645,557, compared with $5,823,859 in October, 1914. Grain was the chief commodity shipped, valued at about $6,000,000. Imports were slightly ahead of last year, sugar, as usual, being one of the principal commodities. More member banks have been rediscounting with us, and most of our member banks report a better demand for money. Rates for money in Philadelphia show no change and are low, but the reports of condition of the banks in the local clearing house association suggest that surplus funds are beginning to be absorbed because of the increased business activity. DISTRICT NO. 4—CLEVELAND. Tremendous demand for steel products and unprecedented activity in the steel and allied businesses continue throughout District No. 4. Prices are highest since the early part of 1908, when they were maintained for the purpose of aiding liquidation after the panic. It seems certain that the steel supply of this country is taken up to the 1st of next July on a very full basis of operation. Glass factories in the district are operating to a fuller extent than for months. The output from automobile concerns and rubber manufacturers is at capacity. There is no lack of employment, but rather a scarcity of labor. Post-office receipts in the five largest cities of the district show $844,037.16 for October, 1915, as against $797,522.98 for the same month ]ast year. Building permits in six large cities of the district show $6,785,958 for October, 1915, as against $7,252,791 for September, 1915, and $4,807,425 for October, 1914. The building operations in these six cities up to November 1, 1915, are approximately $5,000,000 ahead of the 10 months of last year. There is a 40 per cent reduction in the total liabilities of commercial failures in this district DECEMBER 1,1915. reported during October, as compared with the same month in 1914. The coal trade shows little change over last month except a tendency to further improvement through the activity and advance in other lines. The lake season closes December 1. Garment manufacturers report a satisfactory season for winter goods, but not as large as anticipated, due to dealers not placing orders soon enough. The outlook for spring trade is good. Retail merchants state that merchandise is moving satisfactorily and that sales are considerably ahead of last year in fall and winter lines. Tobacco has all been housed and is ready to be marketed. The market will open about December 1. The weight of the crop is not as large as was anticipated on the basis of bulk, but the quality is good. From a credit and collection standpoint conditions are satisfactory, with occasional difficulty in the completion of contracts, due to inability of concerns to secure the necessary materials in line with original schedules, thus delaying payments. There is complaint, too, from some country merchants growing out of the fact that farmers have held their small grain in anticipation of prices that prevailed a year ago. Bank statements show record deposits, and as a rule large reserves, the exception being banks located in the agricultural portions of the district, where farmers are borrowing freely to buy cattle to feed this winter. A number of changes in ownership of industrial properties have occurred during the past month, and several important consolidations have taken place, effecting larger unite* of operation. Investors are expressing a preference for municipal bonds, as they have for two years past. Activity in public-utility is&ues is beginning, however, and the investment field is broadening. Money rates have been stationary and low during the month. DECEMBER 1,1915. FEDEKAL EESEEVE BULLETIN. 415 excellent position, both immediately and prospectively. November has witnessed a further developLabor is fully employed. ment of the very satisfactory general conditions heretofore reported as strongly in evi- DISTRICT NO. 6—ATLANTA. dence. The Carolinas sold cotton freely at top The general condition in this district for the prices and in doing so permitted general and generous liquidation. With the recent soften- past 30 days represent more a continuance of ing in the market for cotton, the planters are the favorable situation and outlook reported somewhat disposed to store it rather than force for last month than the introduction of any new features. its sale. Weather conditions for the past 30 days have The weather has been most favorable for been favorable for handling the remnant of the out-door operations. Many farmers, in decotton crop, as well as for the preparation and ferring the Handling of the remainder of their crops, are preparing some share of their land planting of the winter wheat crop in the for wheat. Tobacco, both natural and manu- northern part of the district, and the maturing citrus crops in Florida. factured, is in a satisfactory position. The tobacco sections of both Tennessee and Some coal concerns are now doing the largest Florida report light sales, with large stocks business in their history. At some points there held. Delivered prices for export are high, is car shortage. Mines are working at full but packers are unable to realize on account capacity and some concerns have ceased giving of difficulty in delivery and high ocean rates. out quotations on spot product. While a Retail dealers report that the mild weather heavy export demand continues, the consumption for domestic purposes is very greatly has retarded anticipated sales of heavy goods, increased. Prospects for the future are better but at the same time has prolonged the purthan fair, operators fearing only the possible chase of light stocks so that the amount carried over this season will be much smaller than handicap of shortage in labor. usual. The lumber industry is improving slowly, Collections are reported to be good both in and an increasing demand both for export and the wholesale and retail lines, the retail lines domestic uses is anticipated. reporting better collections than for a long Manufacturing enterprises are doing well, period. while jobbers are booking generous orders In the industrial lines steel and foundry from interior merchants desiring to replenish products are holding the high record previously exhausted stock. reported, and it is now a question on the part Collections are good. Commodity liquidaof producers as to the acceptance of orders tion has permitted borrowing banks to meet for future delivery which they may be unable their maturing obligations and has provided to fill. surplus funds. For these there is at the Textile mills are running at full time, and moment no real demand. Banks throughout the district are in a more comfortable position in some cases overtime. This has done much than for some years. Borrowers in many di- to sustain the cotton market by liberal purrections have been able to pay their indebt- chases of raw material. Lumber shows an advancing tendency. edness, due to their operations in the past season, and to settle a generous share of debts Recent purchases by the Russian and Italian Governments have tended to materially carried over from 1914. While the banks are not able profitably to strengthen this market. Railroads have puremploy their full resources, it is true that in chased more freely for the past 30 days than the district as a whole general business is in for any like period since 1910. DISTRICT NO. 5—RICHMOND. 416 FEDERAL RESERVE BULLETIN. Naval stores are congested at concentration points, but the statistical position of this industry indicates a substantial advance with the opening of export. Acreage for the next season's operation will likely be smaller than in years, due to the hesitancy of factors to advance funds to any but the most substantial operator. Building trades report small increase. Railroad earnings show a gratifying increase over last month, as well as over the same period last year. Money is plentiful for established demands only, with rates rather lower than at any previous time. DISTRICT NO. 7—CHICAGO. Business development in this district during November has been favorable and confirms former reports of general recovery. Advices from the steel and iron trade show increasing demands and output, and that almost all the new tonnage entered at the furnaces and mills was for domestic requirements. Accumulation of orders for future delivery in steel, equipment, cars, and heavy structural forms has been sustained and exceeds all previous experience. This movement has been accompanied with advance in prices. Confidence in the future is indicated by the large expenditures being undertaken for the purpose of enlarging outputs. Increased furnace and steel rolling capacity at Gary is announced to cost $7,500,000; a new grain elevator at South Chicago of the largest capacity in the world to cost $3,000,000; and an entirely new undertaking at Joilet to cost nearly $1,000,000 for the production ol materials for dyes tuffs. Most of the large cities in the district show building gains in the past month well over the figures of a year ago. The building gains at Chicago exceeded $5,700,000; at Detroit, $1,120,000; Indianapolis, $200,000; Sioux City, $95,000; Springfield, $90,000. There was also a good gain at Milwaukee. This has created extraordinary demand for prompt supply of materials. DECEMBER 1,1915. Advices indicate that general merchandising operations both retail and wholesale are in greater volume than at this season last year. Deposits in the 20 national and 89 State banks of Chicago, as reported at the call of November 10, reached the high mark of $1,155,340,537, the increase over the call of vSeptember 2 being $40,752,900. Commercial paper rates remain at the low figures heretofore prevailing and, with continued increase in bank deposits, there is nothing to indicate anything for the present but a continuance of low-interest rates. DISTRICT NO. 8—ST. LOUIS. Keports indicate a considerable increase in business activity in all parts of this district. Business men are generally confident and even optimistic in their views for the future. The improvement is noted in practically all lines. Jobbing interests are probably making the greatest gains, and their activity has resulted in an increased demand on the manufacturers. This, in turn, through larger pay rolls, has increased the buying power of the public, and is reflected in the increased activities of the retail merchants. The manifest improvement noted in the past 60 days has gone far toward wiping out the losses incurred in the early months of the year, and from reports business interests generally should show a comfortable increase at the close of 1915. In addition to the domestic demands, more and more firms are feeling the effect of the demand for goods for export, and this is a contributing factor toward the present prosperity. The abundant crops harvested this year have increased the buying power of all classes, confidence has been restored, and the outlook is altogether favorable. The weather has been nearly ideal for agricultural purposes. The rainfall was below the normal for the month, but plenty of moisture remained in the ground from rains during the summer. The warm sunny days in October greatly aided the harvesting of the various crops. This favorable weather helped the cotton in the southern parts of the district. The DECEMBER 1,1915. FEDERAL RESERVE BULLETIN. corn and other grain crops were aided materially by the absence of killing frosts. Cotton is not moving as freely as it was a month ago, farmers generally holding at least a part of their crop. There is but little demand for cotton for export, and this together with the comparatively small taking by eastern mills has resulted in a considerable holding of stocks at terminal points in the district. There is, however, no appearances of congestion, and it is probable that the crop will find its way to market in an entirely normal manner. Reports indicate that the tobacco crop in Kentucky and Tennessee is about the average. Other crops in this district, such as corn, oats, barley, potatoes, apples, small fruits, and truckfarm products, are bountiful The live-stock market does not show the activity noted in previous reports. The demand for horses for export has slackened and foreign buyers have largely withdrawn from the market. Hog receipts at the National Stock Yards, East St. Louis, are heavy but there is little demand and the prices are correspondingly low. The season's demand for mules from the South is reported to be better than in 1914 but is still not up to the normal for this time of the year. This fall there has been an unusual lack of demand for funds for crop-moving purposes. The banks in the reserve and central reserve cities have not had the customary call from country customers and hold reserves largely in excess of legal requirements. The same is true to a lesser degree of the country banks. In October there was some demand for funds from the cotton-producing sections of the country. The bank rate of discount to customers and to country correspondents continues low, the prevailing rate being from 4 to 5 per cent. There has been a considerable demand for commercial paper but the rate for best names has been so low that it hardly tempts the banks. There is also a scarcity of the best name paper. Generally speaking, the bond market has shown some activity and in some quarters a scarcity of marketable bonds is re- 417 ported. This is especially true of good municipal issues. In October the Federal Reserve Bank cleared 182,692 items, aggregating $63,532,030.66. This is a gain of nearly 32,000 in the number of items and of over $11,000,000 in total amount as compared to September. The clearings were the largest of any month since the bank has been in operation. This was due to increased business activity and the fact that our member banks are becoming more familiar with and are using more freely the collection facilities offered by the St. Louis Federal Reserve Bank. Exchange charges are being gradually eliminated throughout this district. The St. Louis Clearing House has amended its rules so that local business men and merchants should no longer ha^e to pay exchange on checks received by them drawn on member banks, located outside of St. Louis, that are members of our clearing system. This will mean a great saving to the public ab large. DISTRICT NO. 9—MINNEAPOLIS. The Comptroller's call of November 10 found 28 Minneapolis commercial banks with deposits which were $27,848,000 greater than shown in the call of September 2, 1915. The same banks show an increase in loans and discounts of only $3,424,000. This reflects a condition that prevails in many of the larger member banks in the ninth district. Deposits are high, while loans have shown only a very moderate expansion. With three months of the new crop-moving season already gone, the usual heavy demand for money for financing and marketing of the northwestern small grains is still lacking. September, October, and November demands have been light compared with former years, and the crop is moving so slowly that it has been largely financed on the farmers' money. November receipts at the Minneapolis and Duluth terminals have been very heavy, but very little grain has gone into store. The export and outside milling demand plus & heavy demand from Minneapolis and Duluth 418 mills and from the so-called outside mills within this district has absorbed the shipments about as fast as they have come in. An unusual amount of wheat is being held in temporary storage on the farms, and a disposition to expect high prices is general with the farmers throughout the district and as far west as the eastern slope of the Rocky Mountains. The milling output of the Minneapolis and Duluth mills is running between 475,000 and 500,000 barrels a week, and the outside mills are adding about 250,000 barrels to this production. Money rates are at about the same levels as a month ago. The best commercial paper has taken a rate of 4 to 4J per cent, and rates through the district show practically no change. Collections are somewhat better, and local busiis active. It is estimated that the Twin City banks are in a position to loan an additional $30,000,000 without effort, and a very similar situation prevails at Duluth, Winona, Fargo, Grand Forks, and other centers throughout the district. There has been a large amount of construction at all of the urban centers and an active demand at line yards for lumber and material for construction on the farm. Industrial conditions are good, and labor is fully employed. DISTRICT NO. 10—KANSAS CITY. Weather conditions prevailing throughout District No. 10 have been unusual in that the precipitation for the month of October and thus far in November has been far below normal. This condition, however, has not seriously retarded the preparation of ground and the planting and seeding of fall crops, most of which has been done. While there has been a decided inclination on the part of farmers to hold their wheat for higher prices, and this inclination has been general throughout the district, a considerable amount of wheat is now moving to the markets. The recent demand for money has been quite heavy, and many of the larger banks having the accounts of country banks have been compelled DECEMBER 1,1915. FEDEEAL RESERVE BULLETIN. to discount paper with their correspondents to meet the requirements. The demand is coming almost entirely from the country, the borrowing of city wholesalers and jobbers being below normal. The rates of discount prevailing throughout this district range from 6 to 8 per cent, with a few favored customers in reserve and central reserve cities who are accorded a 5 per cent rate. Wholesalers and jobbers report a fair volume of business, with improved collections, and retailers report trade as about normal. The money which is being received on account of general market transactions is being largely used in the purchase of live stock for fattening purposes, although there is more or less liquidation. Abundant crops have filled the granaries, and farmers and stockmen generally prefer to feed this grain rather than market at present prices. This has caused unusual activity in the cattle market, although prices have not been abnormal. For the month of October, 1915, the receipts of cattle at the principal live-stock centers of this district, as compared with the month of October, 1914, were as follows (figures for Sioux City, Iowa, are given for the reason that that market draws largely from the tenth district): 1915 Kansas City Omaha Denver St. Joseph Sioux City, Iowa $292,493 172,660 71,569 43,573 60,756 Increase. $274,976 124,148 65,781 38,364 34,869 $17,517 48,512 5,788 5,209 25,887 As an evidence of the extent to which grain is being withheld from the market, it is interesting to note the number of "feeders" going from the market to the feeding lots. During the month of October the total of feeders shipped and driven to the country from the Kansas City yards were 174,248, as compared with 139,660 for the corresponding month of last year, an increase of 34,588. When it is realized that feeders are selling at from $6 to $8 per hundredweight, say, about $7, and will average about 1,000 pounds each in weight, it will be seen that something in excess of DECEMBER 1,1915. FEDERAL RESERVE BULLETIN. $12,000,000 was invested in cattle for feeding purposes on the Kansas City market alone during the month of October, 1915, or an increase of nearly $2,500,000 over the same month last year. What is said of Kansas City in this connection is also true of other live stock centers in this district. The lead and zinc mining industry, on account of prevailing high prices, is still very active, and during the past several months has enjoyed the greatest prosperity in its history. The approach of winter has stimulated the coalmining industry, and conditions in connection therewith are about normal. The oil industry is more active than it has been at any time during the present year. This is accounted for by the fact that crude oil is now selling at or in excess of $1 per barrel, whereas less than four months ago it was selling at about 40 cents per barrel. There is great activity in the building trades and civic and public improvements, which is giving fair employment to all classes of labor, both common and skilled. The activity of the Kansas City trade territory is somewhat reflected by the fact that during the month of October the Kansas City Clearing House Association broke three records for that institution—those for the greatest clearings for one day, one week, and one month. The clearings for the week ending November 13 showed an increase of 27 per cent over the corresponding week of last year and of 67 per cent over those of two years ago. The big gain over a year ago is especially significant, because the business originating from the movement of grain is less now than a year ago,* so that the percentage given reflects a substantial expansion in general business. While the above applies to Kansas City only, nevertheless, the same general condition prevails with every clearing-house association in the district. With the approach of cold weather and the activities of the holiday season, it is expected that the commercial, industrial, and business conditions will materially improve, and the district, generally speaking, is facing the next few months with optimistic complacency. 419 DISTRICT NO. 11—DALLAS. Tabulated reports from the various sections of the eleventh Federal Keserve district, which includes all of Texas, southern Oklahoma; northern Louisiana, southern New Mexico and southeastern Arizona, show a gratifying recovery from conditions that existed at this period a year ago. Throughout the agricultural district reports show that the cost of production of the 1915 crop was largely reduced, and with restriction of credit and rigid thrift the crop was produced at about 60 per cent of the credit extended in normal years. With the marketing of the 1915 cotton crop at a fair price, the farmers generally are paying their indebtedness of 1914 and 1915 and increasing their cash on deposit in banks. With the reduction in the 1915 cotton acreage in the district came an increase in acreage of diversified crops. Agricultural districts have raised the largest feed crop in their history, and a year's supply is reported in the barns of the farmers. An increased volume is shown in the cattle and sheep industry throughout the district and on a more profitable basis than the average year's production. In the rice district of southeast Texas and Louisiana reports indicate an average yield at satisfactory prices. In the mining districts of New Mexico and Arizona the industry, while somewhat handicapped by conditions in Mexico, is progressing and has added more than its average to the wealth of the country during the last six months. Tabulation of the published statements of the national and State banks, on the call of November 10, shows a larger increase in deposits, with a corresponding increase in cash holdings and reserves than normal at this period of the year. It is estimated that only about 50 per cent of this year's cotton crop has been marketed. With the further marketing of the crop, and the continued feeling of confidence among the merchants and farmers throughout the district, the tendency is to increased activities 420 FEDERAL RESERVE BULLETIN. in all lines of business throughout the winter months. With increasing deposits and continued liquidation, money is plentiful and concessions are being made in interest rates. The demand for funds is not as large as usual at this time of the year. DISTRICT NO. 12—SAN FRANCISCO. Distance and difficulties of transportation have prevented the present abnormal foreign demands from giving important stimulus to the trade and industry of this district. It seems justifiable, therefore, to expect that small readjustments will be required west of the Rocky Mountains when these demands shrink at the close of the war. A concurrent increase of demand for lumber is not unlikely to fully offset the decrease in demand then for other products. So this district may justly hope for reasonable stability in its commerce. This constitutes a favorable outlook, for on the whole present conditions are good and growing better. There is perceptible betterment in lumbering, which is the major industry of Washington and Oregon. There have been important inquiries and considerable buying, which has somewhat strengthened the demoralized prices. Petroleum is benefitting by expanding consumption which, during October, reduced the amount in storage by a million barrels. Both crude and refined products have advanced in price. The unsatisfactory condition of ocean shipping is accentuated by the closing of the Panama Canal. Extreme rates paid are illustrated by a reported sale of a new 10,000-ton steamer at 25 per cent above cost, which was immediately chartered for a cargo to Europe DECEMBER 1,1915. at such rates that three voyages would realize the price paid for the ship. A foreign syndicate has arranged the Java-Pacific Line of four steamers for oriental trade, one steamer each month coming to San Francisco. The Japanese line is also reported as doubling the number of its ships. For lack of bottoms, export wheat from Washington, Oregon, and Idaho has been going East by rail. About half the crop of 60,000,000 bushels has thus far left growers' hands, present prices ruling around 82 or 83 cents to the farmer. Railroads are active. Good earnings shown warrant expectations of speedy entering upon the long-deferred purchase of lumber and other supplies for maintenance and betterment, a course which would stimulate many lines of trade and industry. Nearly all mining is active and prosperous. This is especially true of copper, lead, and zinc. There was shipment on November 15 of the first navel oranges of the season from Porterville, Cal. For some weeks a trainload will go forward every day. It is " coals to Newcastle" that Seattle in this same week has received a considerable shipment of oranges from Japan, with which country her October commerce exceeded $8,000,000. Reports from a number of cities are that both wholesale and retail trade is satisfactory, with instances of record volume. Banks report heavy increases of deposits, but loans have expanded very moderately. It is an interesting indication of a tendency contrary to frequent prediction as to long time rates that local trust companies and savings banks have made mortgage loans on San | Francisco property at 5 per cent. DECEMBER 1,1915. FEDERAL KESERVE BULLETIN. 421 DISTRIBUTION OF DISCOUNTS BY SIZES small number and amount of discounts hanAND MATURITIES. dled during the month, can hardly be regarded The total amount of commercial paper, exclusive of bankers7 acceptances, discounted during October was $15,050,200, compared with $14,405,000 in September and $12,233,700 in August. Considerable increases of discount operations for the month are reported by the Atlanta, Chicago, Minneapolis, and Kansas City banks. Of the total amounts discounted during the month, the share of the three southern banks was slightly over 60 per cent, the share of the four banks of the Middle West and Northwest over 31 per cent, and that of the four eastern banks less than 6 per cent. Trade acceptances aggregated $629,100 during the month, compared with $319,500 in September, while commodity paper discounted at special lower rates totaled $2,059,100, as against $905,600 reported for the month of September. Of the total trade acceptances discounted in October, about 64 per cent was handled by the Atlanta bank and its New Orleans branch and about 16 per cent by the Richmond bank. Of the total amount of commodity paper discounted during October by five banks and the New Orleans Federal Reserve branch, over 80 per cent was handled by Atlanta and its branch and over 17 per cent by the Richmond bank. The share of the three southern banks in the total discounts handled is shown to have declined from 68.2 per cent in August to 65.4 per cent in September, and to about 60 per cent in October. Inversely, the share of the western banks, exclusive of San Francisco, is shown to have risen from 17.5 per cent in August to 23.2 per cent in September and to 31.2 per cent in October. The number of bills discounted was 9,285, as against 9,173 in September, 9,240 in August and 10,155 in July. The average size of all notes discounted during October was about $1,621, as against $1,570 for the preceding month, $1,324 in August, and $1,304 in July. The October average was $1,737 for the four eastern banks, $1,570 for the three southern banks, $1,645 for the four banks in the Middle West and Northwest, and $2,864 for the San Francisco bank. The smallest average, $1,203, is shown for the Minneapolis bank. The average for the New York bank, $1,282, in view of the as typical or representative of the rediscount business in that district. Of the total number of bills discounted, 35.7 per cent, and of the total amount, 53.7 per cent, were bills in amounts from $1,000 to $5,000, as against 33 and 52 per cent in September and 29 and 54.4 per cent in August. A considerable portion of the largest-size bills (in amounts over $10,000) is commodity (chiefly cotton) paper, discounted at special, reduced rates. Small bills (in denominations up to $250) constituted about 20 per cent of the total number, though less than 2 per cent of the total amount of the paper discounted during the month. The relative number of small notes was about 30 per cent in July, 28.6 in August, 22.8 in September, and only 20 per cent in October. The largest absolute and relative number of small notes was handled by the Richmond bank, which reports 631 items up to $250 each, or about 25 per cent of the total number of items discounted by this bank during October. Atlanta reports 523 such items, or over 28 per cent of the total number of items discounted during the month. Over 60 per cent of the entire number of small notes discounted during the month is shown to have been handled by these two banks. As compared with September, the amounts of 30-day, 90-day, and particularly 6-month paper discounted show considerable increases, while the amount of 60-day paper accepted for rediscount shows a large decline, mainly for the three southern banks. The amount of agricultural and live-stock paper maturing after 90 days (6-month paper) discounted during the month was over $800,000 in excess of the September total, Atlanta, Chicago, and Minneapolis reporting the largest increases for the month. The number of member banks accommodated during the month was 796, compared with 762 in September, 693 in August, and 796 in July and constitutes slightly over 10 per cent of the entire number of member banks. The largest number of banks accommodated in any one district, 150, or 15 per cent of the total member banks in that district, is reported by Kansas City, while the corresponding total for the three southern banks was 389 as against 416 for September. 422 FEDEKAL RESERVE B U L L E T I N . DECEMBER 1,1915. Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks during the month of October, 1915, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] $100 Over $250 To $100. Over to $250. to $500. Over $500 to $1,000. Over $1,000 Over $2,500 Over $5,000 to $5,000. to $10,000. to $2,500. Bank. Over $10,000. Total. Per cent. 44 a-g Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San|Francisco. 3 19 23 15 400 288 29 30 39 195 220 23115. 235 17. 12 0.6 3.4 4.4 2.9 79.1 50.3 5.2 5.1 6.9 34.4 36.5 .9 3. 7.0 10.6 9.3 534 210.8 279106.9 42.8 56 21.1 99 33. 262 95.4 281106.8 13 5.3 6 21 37 51 527 292 164 95 136 280 293 26 5.5 14.3 29.9 37. 428.3 230.1 133.9 70.2 90.0 198. 5 34 35 70 459 354 234 107 169 296 308 47 220.9 17.0 g 7. 53. 60. 117. 793. 163. 258. 500. 74. 6 25.7 11 39.3 24 111.1 35 131. 2681. 056.0 2771; 090. 110 430.9 69 296.6 42 130. 127 451.4 204 750.7 79.3 21 20.0 44.8 79.2 528.0 636.3 187.6 320.3 75.4 336.1 466.5 61.3 29 107 157 213 !,499 .,851 672 407 503 .,271 .,441 135 12.0 35.0 12.0 148. 728. 37.3 76.4 10.2 323. 278. 148.5 54.5 137.2 296.2 391.1 3,260.2 3,466.1 1,227.0 953." 605.3 1,908.7 2,364.2 386.7 26.9 19.9 7 4 5 13. 15.5 1.5 0.4 .9 2.0 2.6 21.6 23.0 8.2 6.3 4.0 12.9 15.7 2.6 606 43.6 1,268 229.7 1,702 653.2 1,928 1,476.6 2,118 3,488.8 1,194 4,594.1 369 2,755.5 100 1,809.4 9,285 15,050.8 100.0 100.0 Total. 1PERCENTAGES 0 11 AMOUNTS OI EACH CLASS TO TOTAL. 11 B oston New York Philadelphia 2.5 . . . . 0.1 1 5 5 1 1 1 ? ?, 1 Richmond Chicago Minnftanolis Dallas San'Francisco Total .3 — 1.5 .7 6.4 5.1 3. 6 2.4 2.4 1.4 .4 .5 1.1 1.8 1.5 .2 6.5 3.1 3.5 2.2 5.5 5.0 4.5 1.4 1.5 4.4 1 9.3 4.4 13.2 38.8 20.3 30.1 24.3 17.5 31.7 17.1 42.6 24.4 21.2 19.2 47.2 28.6 37.5 33.7 32.4 31.5 . . . . 35.1 31.1 21.6 23.7 31.8 20.5 14.6 15.1 20.3 16.2 18.4 15.3 33 6 12.5 17.6 19.7 15.8 "ii.'s" 3.1 4.6 21.0 3.0 8.0 1.7 16.9 11 8 38.4 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100 0 100.0 100 0 100 0 9.8 23.2 30.5 — 18.3 12.0 100.0 10.1 10.4 10.1 9.6 13.1 6.6 10.9 7.4 14.9 10.4 22.0 Commercial paper, exclusive of bankers' acceptances, discounted during October by each of the Federal Reserve distributed by States and maturities as of date of rediscount. [In thousands of dollars.] Districts and States. District No. 1—Boston: Maine Massachusetts New Hampshire Rhode Island Vermont .... ............... Total District No. 2—New York: New York Total District No. 3—Philadelphia: Pennsylvania Total District No. 4—Cleveland: Ohio Pennsylvania West Virginia Total .... ... Paper maturing after 10 days but within 30 days. Banks, Paper maturing after 30 days but within 60 days. Paper maturing after 60 days but within 90 days. 2 0.4 14 i 3 7.0 6.0 13.0 5.0 17.0 5.0 27.0 5.0 24.4 25.1 Number of member banks. Number of banks accommodated. 75 70 170 56 18 48 2 435 7 Paper maturing within 10 days. Paper maturing after 90 days. 14 5 54.5 = 1 Total commercial paper rediscounted. _ 131 483 7 4.5 32.4 44.2 56. i 4 6 132.6 614 8 36.9 44.2 56.1 137.2 24 70 534 1 4 6 16.0 82.8 30.8 86.9 55 26 2 27.4 5 8 14.8 55 78 8 211.9 628 11 98.8 117.7 59.1 20.6 296.2 ============ 72 376 302 7 13 3 .2 23.7 53.2 10.2 103.1 44.5 53 31.9 32.3 12 6 74.1 158.7 204.1 28 3 23 .2 87.1 152.9 76.8 74.1 391.1 14 764 DECEMBER 1,1915. 423 FEDERAL RESERVE BULLETIN. Commercial paper, exclusive of bankers' acceptances, discounted during October by each of the Federal Reserve Banks, distributed by States and maturities as of date of rediscount—Continued. [In thousands of dollars.] Districts and States. District No. 5—Richmond: District of Columbia Maryland North Carolina South Carolina Virginia West Virginia Total District No. 6—Atlanta: Alabama Florida Georgia Louisiana Mississippi Tennessee Total District No. 7—Chicago: Illinois Indiana Iowa Michigan Wisconsin Total District No. 8—St. Louis: Arkansas Illinois Indiana Kentucky Mississippi Missouri Tennessee Total District No. 9—Minneapolis: Michigan Minnesota Montana North Dakota South Dakota Wisconsin Total District No. 10—Kansas City: Colorado Kansas Missouri Nebraska New Mexico Oklahoma Wyoming Total District No. 11—Dallas: Arizona Louisiana New Mexico Oklahoma Texas Total District No. 12—San Francisco: Alaska Arizona California Idaho Nevada Oregon Utah Washington Total Number of member banks. Number of banks accommodated. Paper maturing within 10 days. 14 98 80 73 137 104 1 4 38 31 44 8 3.3 506 126 95 55 115 5 18 97 32 22 47 3 4 27 10.7 385 135 15.9 317 197 348 75 51 15 5 55 2 1 988 78 61 157 61 69 18 81 20 7 11 1 6 3 10 7 6.5 467 45 31 279 65 152 116 87 .1 32 6 4 9 4 730 56 13.4 121 220 53 210 9 309 33 3 38 8 36 1.6 63 2 955 150 6 26 28 42 546 4 2 13 109 648 1 7 266 58 10 86 23 78 529 Paper maturing after 10 days but within 30 days. 14.5 Paper maturing after 30 days but within 60 days. Paper maturing after 60 days but within 90 days. Paper maturing after 90 days. Total commercial paper rediscounted. 6.6 1.9 194.2 94.3 204.1 15.1 40.5 15.2 426.9 448.6 526.5 18.4 40.8 36.6 438.1 399.5 260.1 33.1 0.1 4.1 16.6 21.1 95.8 51.9 1,066.6 959.0 1,018.4 68.5 11.8 522.2 1,476.1 1,208.2 41.9 3,260.2 3.0 2.2 44.8 77.7 71.7 33.0 363.3 306.1 731.2 113.3 1.3 198.0 182.3 6.5 315.2 14.9 199.3 100.2 335.7 136.2 47 8 158.1 13.6 789.7 493.5 1,456.0 282.5 49.1 395.3 242.1 977.3 1,713.2 517.6 3,466.1 12.3 37.6 139.9 7 5 111.2 66.4 17.0 401.4 5.6 10.0 62.0 32.6 294.8 7.2 21.5 280.6 57.1 845.0 12.8 31.5 49.9 268.6 418.1 490.4 1,227.0 42.3 7.0 10.2 15 0 61.1 61.0 5.0 .2 7.4 57.3 34 0 ' 22.6 20 2 3 1 22.4 21.0 276.2 67 2 11.2 41.3 133.4 24.3 3.7 143.9 95.6 30.4 85 3 33.6 94.0 470.8 6.7 139.2 399.5 375.2 33.0 953.6 1.0 9.2 6.5 1.3 4.0 .4 25.6 4 1 60.4 5.0 7.8 14.2 77.0 125.9 11.9 5.7 28.8 5.6 160.8 14.6 .6 22.5 14.3 366.0 32.8 18.1 65.9 108.2 47.0 168.5 177.9 198.5 605.3 27.3 128.2 .5 18.7 37.0 350.9 74.9 55.7 70.9 204.6 79.5 141.4 5.5 59.2 28.6 97.5 140.7 744.5 183.5 313.3 10.4 79.8 2.2 159.0 2.9 204.4 4.0 64.0 517.6 9.1 12.0 256.7 680.4 704.8 254.8 1,908.7 4 9 44.0 408.0 18 5 6 1 100.3 871.1 53 9 5 3 72.4 536.9 3 6 22.9 216.3 77 3 15.0 239.6 2,032.3 128 456.9 996.0 668.5 242.8 2,364.2 ic 26.8 41.5 8.9 i38.9 1.8 23.4 4.2 230.6 14.9 101.0 12.4 3 4 9.1 22.6 66.2 3.1 6 1.4 3.6 7.4 19.6 8.2 40.2 29 1.4 39.5 80.4 226.5 38.9 386.7 424 DECEMBER 1,1915. FEDERAL RESERVE BULLETIN. Commercial paper, exclusive of bankers' acceptances, discounted during October by each of the Federal Reserve Banks? distributed by States and maturities as of date of rediscount—Continued. RECAPITULATION. [In thousands of dollars.] No. No No. No. No No. No No. No No No. No. 1—Boston 2—New York 3—Philadelphia.. 4—Cleveland 5—Richmond 6—Atlanta.. 7—Chicago 8—St. Louis 9—Minneapolis 10—Kansas City 11—Dallas 12—San Francisco Total for October Per Per Per Per Per Per Per cent cent cent cent cent cent cent 435 614 628 764 506 385 988 467 730 955 648 529 7 8 11 23 126 135 78 45 56 150 128 29 7,649 796 for October for September for August for July for June for May for April Amounts Paper maturing after 10 days but within 30 days. Paper maturing after 30 days but within 60 days. Paper maturing after 60 days but within 90 days. 1.4 36.9 117.7 87.1 522.2 242.1 49.9 139.2 47.0 256.7 456.9 39.5 24.4 44.2 59.1 152.9 1,476.1 977.3 268.6 399.5 168.5 680.4 996.0 80.4 25.1 56.1 20.6 76.8 1,208.2 1,713.2 418.1 375 2 177.9 704.8 668.5 226.5 74.1 41.9 517.6 490.4 33.0 198.5 254.8 242.8 38.9 54.5 137.2 296.2 391.1 3,260.2 3,466.1 1,227.0 953.6 605.3 1,908.7 2,364.2 386.7 165.1 1,994.8 5,327.2 5,671.0 1,892.1 15,050.8 13.2 11.8 11.3 12.2 35.4 42.9 40.8 34.1 29.1 31.4 33.9 37.7 36.8 36.9 40.0 38.7 35.6 39.2 12.6 7.6 8.4 12.9 18.7 19.6 15.3 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Paper maturing within 10 days. Number Number of banks of member accommobanks. dated. Districts and cities. 5.0 98.8 .2 11.8 15.9 6.7 13.4 12.0 1.1 .9 2.6 .8 13.5 13.4 11.6 10.0 9.1 10.5 10.3 9.4 8.1 Paper Total maturing commercial Per cent. paper reafter 90 discounted. days. 0.4 .9 2.0 2.6 21.7 23.0 8.1 6.3 4.0 12.7 15.7 2.6 100.0 of trade acceptances x discounted by each of the Federal Reserve Banks during the months of September and October, 1915. [In thousands of dollars.] Federal Reserve Bank. Paper maturing Paper maturing Paper maturing Total trade Paper maturing after 10 days after 30 days after 60 days Paper maturing acceptances rewithin 10 days. but within but within but within after 90 days. discounted. 30 days. 60 days. 90 days. Sept. New York Cleveland . Richmond Atlanta, including New Orleans brannh i St. Louis Kansas City Dallas San Francisco Total Per cent Sept. Oct. Oct. Sept. ! i ! 2.8 .5 1 12.1 8.2 0.3 5.9 65.9 6.9 4.5 2.1 12.6 34.3 10.7 46.2 7.3 98.2 30.7 4.8 .. 2.1 8.1 24.6 1.7 .4 Sept. Oct. Sept. Oct. Sept. o o 1.5 1.3 4.7 11.0 2.8 Oct. .3 46.9 90.1 32.2 172.0 .6 29.4 8.7 4.1 5.4 210.9 33.5 176.7 55.3 357.3 56.8 1.6 10.6 03 42.3 276.0 3.2 10.3 11.9 30 1 10.3 3.2 Included in the total of commercial paper, shown above. 11.9 1.9 Oct. 48 2.7 100.1 259.2 12.3 45 2.5 28.8 402.6 37.1 319.5 100.0 629.1 100.0 59.5 22.3 Per cent. Sept. 0.5 3.3 Oct. O.T .4 15.9 81.1 3.9 14 .8 9.0 64.0 5.9 100.0 100.0 9.5 3.6 425 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. Amounts of commodity paper1 rediscounted by each of the Federal Reserve Banks from Sept. 8, date of first rediscount, to Oct. 30, 1915, inclusive. [In thousands of dollars.] Federal Reserve Bank. Richmond Atlanta (including New Orleans branch) St. Louis Minneapolis Dallas Amount of Amount of commodity commodity paper dispaper discounted during counted during September, October, 1915. 1915. Total amount of commodity paper rediscounted during September and October, 1915. 2.3 $364. 4 1,657.2 31.2 1.5 4.8 $460. 4 2,464.5 31.2 1.5 7.1 905.6 2,059.1 2,964.7 $96.0 807.3 -- Total . .. i Included in the total of commercial paper, shown above. Amount of commercial paper, exclusive of bankers' acceptances, held by each of the Federal Reserve Banks Friday of the month, Oct. 29, 1915, distributed by maturities. on the last [In thousands of dollars.] Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St Louis Minneapolis Kansas City Dallas San Francisco ... Total Per cent . . . Paper maturing within 10 days. Paper maturing after 10 days but within 30 days. Paper maturing after 30 days but within 60 days. Paper maturing after 60 days but within 90 days. 34.1 82.1 60.9 93.6 1,617.5 1,166.8 133.2 341.3 370.9 451.9 1,663.8 163.3 46.2 183.1 66.1 143.6 1,932.1 1,450.0 353.4 432.8 247.5 615.8 1,601.0 240.6 63.7 106.3 61.9 181.6 2,352.1 2,172.4 739.3 568.1 558.5 902.5 1,900.4 374.3 6.9 31.3 6.6 52.4 886.2 1,314.7 477.0 258.6 224.4 698.7 724.7 190.9 6,179.4 20.3 7,312.2 24.0 9,981.1 32.8 4,872.4 16.0 Paper maturing after 90 days. Total. Per cent. 0.5 1.3 115.1 25.9 501.2 630.3 66.3 212.0 207.0 297.3 47.8 150.9 402.8 195.5 586.3 6,813.8 6,605.1 2,333.2 1,667.1 1 613.3 2,875.9 6,187.2 1,016.9 1.9 22.4 21.7 7.7 5.5 5.3 2,102.9 6.9 30,448.0 100.0 100.0 6 9.5 20.3 3.3 426 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. ACCEPTANCES. 1 Bankers acceptances, by classes, held by the Federal Reserve Banks each week. [In thousands of dollars.J Nonmember banks. Member banks. Date. Oct. 26 Nov. 1 Nov. 8 Nov.15 N o v . 22 4,419 4,331 4,306 3,967 4,413 8,109 8,477 8,784 8,482 8,457 . . . 1 State banks. Trust companies. Private banks. 193 253 255 237 204 204 267 275 155 197 Total. 12,958 13,265 13,549 12,871 113,342 Acceptances indorsed by member banks: Private bank acceptances, $5,000. 1 Distribution of bankers acceptances held by Federal Reserve Banks, according to schedules on hand Nov. 22,1915, by classes of acceptors and sizes. Over $5,000 to $10,000. To $5,000. Over $10,000 to $25,000. Over $25,000 to $50,000. Over $50,000 Over $100,000. to $100,000. Total. Per cent. Class of acceptors. a.2 a Member banks... Trust companies. State banks Private banks Total., 3 A a -s a 3 A $475,385 145 $1,234,833 174 $3,105,719 286,743 97 753,330 126,250 149,227 20,240 "i 112,785 6,780 908,618 243 1,994,943 249 Percent 6.8 15.0 4,354,400 a < 40 $1,713,181 14 553,397 a-s a-| 3 A 0 A $792,000 531 $8,457,027 4,412,995 1,252,160 275,477 197,351 14 $1.135,909 " '580,696 57,546 54 2,266,578 1,774,151 17.0 32.6 63.4 33.1 2.0 1.5 2,044,160 863 13-, 342,850 100.0 13.3 15.3 100.0 Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays, Oct. 29 to Nov.19, 1915, [In thousands of dollars.] New Phila- Cleve- RichBoston. York. delphia. land. mond. Acceptances maturing within 10 days: Oct. 29 . . Nov. 5 Nov. 12 Nov. 19 Acceptances maturing after 10 days, but within 30 days: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Acceptances maturing after 30 days, but within 60 days: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Acceptances maturing after 60 days, but within 3 months: Oct. 29 . . . Nov 5 Nov. 12 Nov. 19 Total acceptances held: Oct. 29 Nov 5 Nov. 12 Nov 19 416 522 246 305 421 80 659 73 122 102 329 143 43 115 53 Atlanta. Chicago. San St. Minne- Kansas Total. Louis. apolis. City. Dallas. Francisco. 200 26 279 327 87 1 135 10 9 102 75 41 852 653 125 49 444 644 845 907 424 1,099 958 23 157 156 97 180 331 400 387 391 317 10 72 84 28 61 52 1,566 1,369 1,089 859 1,770 2,077 1,461 2,159 1,033 919 786 803 303 255 120 228 606 484 283 408 182 181 150 216 342 336 775 762 2,036 1 854 2,014 1,472 290 562 532 451 163 165 220 239 321 382 474 615 3,176 2,871 2,955 2,83? 4,880 5,014 4,647 4,918 1,528 1,783 1,751 1,797 558 558 100 100 550 623 100 100 1,571 1,532 1,475 1,475 f>0 100 100 100 50 28 212 50 25 109 61 100 1,239 2,180 954 1,031 209 270 7 70 80 173 175 96 2,801 1,876 3,201 3,10ft 118 118 77 137 147 139 81 130 168 191 157 225 5,993 5,833 4,304 5,215 166 191 206 211 121 137 157 145 49 81 107 97 98 177 194 172 3,586 3 885 4,678 4 164 471 469 341 358 433 439 429 521 336 343 308 307 561 650 13 619 13 774 13,138 587 593 427 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. Amounts of acceptances purchased by each of the Federal Reserve Banks from Feb. 19 {date of first purchase) to June SO and for the months of July, August, September, and October, 1915, distributed by maturities. [In thousands of dollars.] New Phila- Cleve- RichBoston. York. delphia. land. mond. Acceptances maturing within 30 days: Feb. 19 to June 30 July August September1 October Total Acceptances maturing after 30 days but within 60 days: Feb. 19 to June 30 July August September1 October Total Acceptances maturing after 60 days but within 3 months: Feb. 19 to June 30 July August September * October Total 109 43 64 42 37 Chicago. 1,032 10 41 29 3 28 141 103 42 69 61 1,960 598 310 226 119 13 633 29 71 35 16 101 24 18 26 17 61 33 18 30 67 9 23 4 17 35 43 23 17 25 17 4,093 698 512 211 761 2,241 755 746 533 311 164 160 715 6,275 2,899 1,046 931 741 1,014 8,145 1,977 1,443 1,557 2,196 1,876 521 140 994 351 732 1,524 426 593 351 570 162 276 87 94 246 397 &34 265 115 107 269 100 3,464 100 1,975 497 628 367 671 263 209 177 262 100 4,138 1,279 1,114 1,440 2,696 402 41 50 466 733 244 101 235 1,543 276 269 55 98 368 17 17 15 366 237 121 650 61 Total. 67 103 50 141 San St. Minne- Kansas Louis. apolis. City. Dallas. Francisco. 36 539 39 25 314 78 493 6,631 15,318 3,882 1,488 Total acceptances bought: Feb. 19 to June 30 July August September * October 3,134 1,063 987 781 1,782 10,227 2,253 1,815 1 662 2,335 2,353 801 303 994 1,394 298 170 137 430 336 Grand total . 7,747 18,292 4,881 2,335 Atlanta. 1 100 Corrected figures. 178 87 60 186 190 202 51 134 1,112 120 347 96 245 17,481 4,999 3,945 4,151 5,211 865 908 1,211 1,920 35,787 455 526 736 300 141 120 191 116 72 1,806 143 364 121 22,606 5,740 4,771 4 440 6,465 194 247 86 44,022 428 DECEMBER 1,1915. FEDERAL RESERVE BULLETIN. FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System, at close of business on Fridays, Oct. 29 to Nov. 26, 1915. RESOURCES. [In thousands of dollars.] Boston. Gold coin and certificates in vault: Oct 29 Nov. 5 . Nov. 12 Nov 19 Nov 26 . Gold settlement fund: Oct 29 Nov. 5 Nov. 12 Nov. 19 Nov 26 Gold redemption fund: Oct 29 Nov 5 Nov 12 Nov 19 Nov 26 Legal tender notes, silver, etc.: Oct. 29 . Nov. 5 Nov 12 Nov. 19. Nov. 26 Total reserve: Oct. 29 Nov 5 Nov. 12 Nov. 1 9 . . . Nov. 26 Commercial paper: Oct. 29 Nov. 5 . . . Nov. 12 Nov. 19 . Nov 26 Bankers' acceptances: Oct 29 Nov. 5 . . Nov 12 Nov 19 Nov 26 United States bonds: Oct 29 Nov 5 Nov 12 Nov 19 Nov 26 Municipal warrants: Oct 29 Nov 5 Nov 12 Nov. 19 Nov. 26 Federal Reserve notes, net assets: Oct 29 Nov 5 Nov 12 Nov 19 Nov 26 Due from other Federal Reserve Banks, net: Oct 29 Nov 5 Nov. 12 Nov 19 Nov. 26 All other resources: Oct 29 Nov. 5 Nov. 12 Nov 19 Nov. 26 Total resources: Oct. 29 Nov 5 Nov. 12 Nov 19 Nov 26 New York. Philadelphia. Cleveland. Richmond. San AtMinne- Kansas St. lanta. Chicago. Louis. apolis,. City. Dallas. Francisco. 13,738 14, 768 14,769 15,906 14,734 129,981 144,470 143,818 147,884 151,218 7,867 8,693 7,606 8,884 8,186 10,618 10,545 10,331 10,632 10,640 5,898 5,900 5,964 5,983 6,022 5,672 6,230 6,009 6.293 5,982 27,510 25,977 28,639 30,520 31,460 2,827 2,665 2,606 3,033 2,867 619 655 975 2,478 2,498 3,917 3,118 3,128 2,309 2,310 3,995 3,992 4,009 4,086 4,119 5,582 5,665 5,576 7,392 5,950 218,224 232 678 233,430 245,400 245,986 5,264 3,470 4,567 5,527 5,259 4,492 3,735 3,006 2,891 3,885 3,163 2,129 2,643 1,192 3,990 4,934 5,228 5,367 7,881 9,170 7,159 6,899 6,903 8,726 9,268 2,745 2,703 2,515 1,867 1,409 11,336 11,900 12,194 12,291 9,736 4,659 4,978 4,622 4,183 2,757 3,982 5,363 4,958 5,325 5,297 2,908 2,559 3,103 5,162 6,358 7,000 7,492 8,213 8,505 9,165 4,318 4,354 4,699 5,795 7,536 61,960 60,810 62,790 69,345 73,830 6 6 6 6 6 55 55 55 55 55 37 37 37 37 37 375 375 375 375 375 225 225 225 225 245 35 35 35 35 35 30 30 30 30 30 97 102 102 107 107 341 341 341 341 341 21 21 21 21 21 680 363 114 21 33 30,344 25,609 25,665 25,681 29,783 3,067 3,032 3,116 2,846 2,909 100 104 137 114 116 150 224 209 222 238 1,015 1,586 2,457 156 147 140 167 139 7 7 .7 13 19 269 166 162 169 176 324 196 185 198 217 7 12 4 33 18 37,058 31,567 31,806 32,173 37,212 19,688 18,607 19,456 21,460 20,032 164,872 173,869 172,544 176,511 184,941 14,134 13,891 13,402 12,959 15,122 16,544 13,532 16, 755 13,278 16, 750 13,379 19,636 15,198 20,917 15,781 8,792 9,382 8,958 8,607 7,874 39,808 38,602 41,848 44,397 43,653 7,677 7,825 7,403 7,418 5,798 4,638 6,055 5,970 7,846 7,844 7,191 5,945 6,495 7,747 8,951 11,660 12,021 12, 748 13,130 13,842 9,928 10,052 10,300 13,241 13,525 318,464 326,282 329,253 348,150 358,280 151 166 178 169 182 403 369 316 263 282 196 134 145 192 180 587 580 532 517 637 6,814 6,482 6,535 6,599 6,937 6,600 6,414 6,838 7,135 7,885 2,333 2,519 2,739 2,862 2,915 1,667 1,776 1,771 1,809 1,731 1,617 1,455 1,492 1,540 1,526 2,876 3,040 3,100 4,332 4.247 6,187 5,463 5,479 5,450 5,565 1,017 955 885 771 707 30,448 29,353 30,010 31,639 32,794 3,176 2,871 2,955 2,833 5,118 4,880 5,014 4,647 4,918 5,348 1,528 1,783 1,751 1,797 1,779 558 558 550 623 632 100 100 100 100 100 1,571 1,532 1,475 1,475 1,457 471 469 429 521 520 341 358 336 343 370 433 439 308 307 329 561 650 587 593 526 13,619 13,774 13,138 13,510 16,179 491 491 932 932 932 4,031 4,031 4,031 4,062 4,090 952 952 952 952 952 1,082 1,110 1,144 1,160 1,188 1,526 1,526 1,526 1,526 1,536 1,000 1,000 1,000 1,000 1,000 10,505 10,533 12,003 12,674 12,919 2,750 2,519 2,468 2,353 2,478 1,095 793 713 718 717 824 753 753 742 756 1,379 1,183 1,182 1,142 1,132 25,014 22,148 22,801 27,519 27,308 1,874 1,803 1,604 1,556 1,544 19,723 15,184 19,537 18,792 19,176 787 928 i 8,533 i 12,483 i 16,175 i 15,827 114,053 491 491 986 986 986 992 982 1,052 1,123 1,107 1,432 1,973 1,973 1,015 1,194 3,274 2,869 3,443 3,500 3,416 8,390 6,701 6,562 10,853 10,414 2,866 2,817 2,869 3,321 2,944 3,638 3,545 3,515 3,482 3,474 745 332 11,376 9,498 11,457 12,273 13,442 805 216 1,010 642 249 385 359 427 448 306 642 3,512 4,572 3,943 8,048 6,649 1,563 3,560 2,968 1,173 837 1,077 882 1,754 1,880 704 805 52 69 640 5 102 335 335 335 820 993 202 1,130 1,563 1,717 1,544 1,932 1,137 962 725 946 956 959 984 2 190 2,178 1,868 1 853 1,846 1,002 2,651 4 187 2,104 1,404 2,410 2 327 1,293 2,560 5,599 782 286 604 526 1,243 1 566 512 996 579 712 1,775 1 717 2,196 3,336 3,189 383 372 376 402 398 668 119 51 296 121 70 536 654 582 794 118 232 109 288 658 234 424 310 297 66 92 136 155 145 296 571 749 162 95 157 186 263 176 268 296 69 68 69 64 27,770 26,452 28,615 31,849 32,988 190,304 195,823 196,544 205,220 214,825 24,200 24,440 25,206 29,514 29,690 23,467 23,652 24,501 29,390 30,416 21,137 21,056 21,669 23,802 24,586 16,513 17,036 16,629 18,580 17,980 245 55,455 13,828 55, 730 * 14,844 56,628 13,982 58,563 15,091 59,035 15,880 63 63 11,882 11,989 12,920 15,590 16,136 708 599 302 923 329 1,243 1,371 1,767 1,546 675 531 555 655 706 792 178 131 115 250 2,323 2,597 2,668 1 222 1 227 1,227 1,232 1,252 496 311 92 102 118 3,645 2,962 3,275 3,662 4,633 14,089 18,327 12,857 18,538 14,080 18,671 16, 731 20,439 18,378 20,641 16,871 16,882 17,973 21,002 21,220 429,951 432, 719 446,192 471,773 485,342 i Items in transit, i. e., total amounts due from, less total amounts due to, other Federal Reserve Banks. Total for system. 325 429 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, Oct. 29 to Nov. 26, 1915—Continued. LIABILITIES. [In thousands of dollars.] Boston. Capital paid in: Oct. 29 Nov. 5 Nov. 12. Nov. 19 Nov. 26 Government deposits: Oct. 29 Nov. 5 . . . Nov. 12 Nov. 19.. Nov. 26 Reserve deposits, net: Oct. 29.. Nov. 5 Nov. 12 Nov. 19 Nov. 2 6 . . . Federal Reserve notes, net liability: Oct. 29. .* Nov 5 Nov. 1 2 . . . Nov 19 Nov. 26.. Due to other Federal Reserve Banks, net: Oct. 29 Nov. 5 Nov. 1 2 . . . . Nov. 1 9 . . . Nov. 26.. All other liabilities: Oct. 29 Nov. 5 . . . Nov 12 . . Nov. 1 9 . . . Nov 26 Total liabilities: Oct. 29 Nov. 5 Nov 12 Nov 19 Nov. 2 6 . . . 5,181 5,171 5,171 5,171 5,171 21,095 21,281 22,218 26,678 27,817 1,494 1 226 New York. 11,047 11,077 11,059 11,060 11,060 174,443 175,252 181,710 176,414 183,438 Philadelphia. Cleveland. Richmond. Atlanta. 5,269 5,272 5,273 5,270 5,270 5,945 5,945 5,945 5,945 5,931 3,349 3,349 3,352 3,353 3,353 2,417 2,416 2,417 2,418 2,417 5 000 5,000 5,000 5,000 5 000 5 000 5,000 5,000 5,000 5 000 7,768 7,802 8,160 10,364 10,712 5,395 5,721 6,268 7,755 7,199 4,874 4 754 5,000 4,923 5,354 3,622 3 817 2,854 3,318 3,266 146 151 157 162 167 79 82 90 89 98 21,137 21,056 21,669 23,802 24,586 16,513 17,036 16,629 18,580 17,980 18,931 17,522 19,168 17,707 19,933 18,556 24,244 23,445 24,420 24,485 6,635 6,634 6,635 6,638 6,639 2,778 2,778 2,778 2,780 2,780 2,492 2,493 2,495 2,496 2,497 3,025 3,027 3,027 3,026 3,030 2,767 2,753 2,753 2,755 2,756 3,933 3,933 3,941 3,942 3,942 5,000 5 000 5,000 5 000 1 5 000 48,820 49,096 49.993 51,925 52,396 11,050 12,066 11,204 12,311 12,995 9,390 9,496 10,425 13,094 13,639 9,687 8,994 9,826 12,959 14,422 6,515 6,531 6,992 8,748 9,151 1,377 836 1,227 4,045 4,254 3,926 3 936 3 734 746 926 105 Total for system. 54,838 54,848 54,846 54,854 54,846 15,000 15,000 15,000 15,000 15,000 12,938 12,949 14,032 17,060 17,278 343,554 346,063 359,317 384,997 397,952 13,918 13,661 13,007 12,923 13,385 2,398 6,580 13.998 16 433 2 416 2,914 3,775 3,748 3 894 27,770 26,452 28,615 31,849 32,988 San Francisco. St. Minne- Kansas Dallas. Chicago. Louis. apolis. City. 190,304 195,823 196,544 205,220 214,825 24,200 24,440 25,206 29,514 29,690 23,467 23,652 24,501 29,390 30,416 2,641 3,147 4,022 3,999 4,159 55,455 55,730 56,628 58,563 59,035 13,828 14,844 13,982 15,091 15,880 11,882 11,989 12,920 15,590 16,136 14,089 18,327 12,857 18,538 14,080 18;671 16,731 20,439 18,378 20,641 16,871 16,882 17,973 21,002 21,220 429,951 432,719 446,192 471,773 485,342 San St. Minne- Kansas Dallas. FranChicago. Louis. apolis. City. cisco. Total for system. Circulation of Federal Reserve notes at close of business on Fridays, Oct. 29 to Nov. 26, 1915. [In thousands of dollars.] Boston. Federal Reserve notes issued to the bank: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Federal Reserve notes in the hands of the bank: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Federal Reserve notes in circulation: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 New York. Philadelphia. Cleve- Richland. mond. Atlanta. 7,880 8,900 8,900 9,900 9,900 15,445 15,565 15,615 15,605 15,385 4,600 4,600 4,370 4,370 4,370 168,370 170,310 179,335 183,275 187,815 1,566 488 1,149 395 512 996 579 712 1,339 1,159 360 271 399 379 361 1,874 1,803 1,604 1,556 1,544 22,345 17,828 22.710 22,389 22,511 4,543 5,184 5,448 5,846 6,555 9,434 10,483 11,004 11,421 11,788 7,392 7,751 8,142 8,561 8,741 15,085 15,294 15,216 15,226 15,024 2,726 2,797 2,766 2,814 2,826 146,025 152,482 156,625 160,886 165,304 70,960 70,960 74,360 76,760 79,160 6,160 6,360 7,640 7,840 7,960 8,600 8,800 9,000 9,200 9,200 13,800 13.800 14,000 14,000 14,440 13,900 14,300 15,300 15,450 15,750 4,380 4,380 4,380 4,380 4,380 5,825 5,825 6,950 6,950 6,950 11,000 11,000 12,000 12,000 12,500 805 216 426 246 200 277 286 661 1,146 932 984 2,190 2,178 1,868 1,853 1,846 1,282 642 249 385 359 427 448 306 628 433 1,010 1,077 11,596 9,668 11,627 12,443 13,592 5,075 5,488 5,647 5,983 6,743 59,364 61,292 62,733 64,317 65,568 5,355 6,144 6,630 7,198 7,711 8,215 8,441 8,573 8,752 8,894 13,374 13,554 13,800 13,723 14,154 13,272 13,867 14,154 14,518 14,766 2,190 2,202 2,512 2,527 2,534 5,820 5,820 6,820 6, S20 7,820 745 332 1,173 837 1,502 1,104 758 430 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. Circulation of Federal Reserve notes at close of business on Fridays, Oct. 29 to Nov. 26, 1915—Continued. [In thousands of dollars.] Boston. Gold and lawful money deposited with or to the credit of the Federal Raserve Agent: Oct. 29 Nov. 5 . . . Nov 12 Nov 19.. Nov.26 Carried to net liabilities: Oct. 29 Nov. 5 Nov 12 Nov. 19. . Nov.26 Carried to net assets: Oct. 29 . Nov 5 Nov. 12 Nov. 19 . . Nov.26 5,820 5,820 6,820 6,820 7,820 745 332 1,173 837 1,077 New York. 70,740 70,790 74,190 76,590 79,010 11,376 9,498 11,457 12,273 13,442 Philadelphia. 6,160 6,360 7,640 7,840 7,960 Cleve- Richland. mond. 8 600 8,800 9,000 9,200 9,200 805 385 216 1,010 i 642 249 359 427 448 306 Atlanta. 8,500 8,800 8,800 8,800 8,800 9,650 10,050 11,300 11,200 11,500 4,874 4,754 5,000 4,923 5,354 3,622 3,817 2,854 3,318 3,266 St. Minne- Kansas Dallas. Chicago. Louis. apolis. City. 4,380 4,380 4,380 4,380 4,380 5,325 5,450 6,450 6,450 6,450 11,000 11,000 12,000 12,000 12,500 105 2,190 2,178 1,868 1,853 1,846 782 286 1,002 604 6,015 6,915 6,915 7,815 7,815 11,040 11,040 11,290 11 290 11,290 1,377 836 1,227 746 926 4,045 4,254 3,926 3,936 3,734 San Francisco. 4,600 4,600 4,370 4 370 4,370 Statement of Federal Reserve Agents1 accounts at close of business on Fridays, Oct. 29 to Nov. 151,830 154,005 163,155 166,755 171,095 13,918 13,661 13,007 12,923 13,385 1,874 1,803 1,604 1,556 1,544 1,566 512 996 579 712 Total for system. 19,723 15,184 19,537 18,792 19,176 26,1915. [In thousands of dollars.] Boston. Federal Reserve notes: Received from the Comptroller— Oct. 29 Nov. 5 Nov.12 Nov.19 Nov.26 Returned to the Comptroller— Oct. 29 Nov. 5 Nov.12 Nov.19 Nov.26 Chargeable to the Federal Reserve Agent— Oct. 29 Nov. 5 . . . . Nov.12 Nov.19 Nov.26 In the hands of the Federal Reserve Agent— Oct. 29 Nov 5 Nov.12 Nov.19 Nov.26 Issued to the Federal R e s e r v e Bank, net— Oct. 29 Nov.5 Nov.12 Nov.19 Nov.26 11,800 11,800 11,800 11,800 16,360 New York. 76,480 78,480 93,480 98,440 98,440 300 400 400 400 400 Philadelphia. 12,480 12,480 12,480 12,480 12,480 380 460 Cleve- Richland. mond. Atlanta. 10,000 11,000 11,000 11,000 11,600 16,600 16,600 17,600 17,600 18,900 540 40 40 40 40 4fin 480 15,100 15,100 15,100 15,100 15,100 St. Minne- Kansas Dallas. Chicago. Louis. apolis. City. 9,380 9,380 9,380 9,380 9,380 6,600 9,600 9,600 9,600 9,600 15,000 15,000 15,000 17,000 17,000 9,000 9,000 10,000 11,000 11,000 120 120 120 120 120 San Francisco. Total for system. 19,580 19,580 19,580 19,580 19,580 10,000 10,000 10,000 10,000 10,000 212,020 218,020 235,020 242,980 249,440 15 15 15 25 25 230 230 230 815 1,035 1,265 1,275 1,355 11,500 11,400 11,400 11,400 15,900 76,480 78,480 93,480 98,440 98,440 12,100 12,020 12,020 12,020 11,940 10,000 10,960 10,960 10,960 11,560 15,100 15,100 15,100 15,100 15,100 16,600 16,600 17,600 17,600 18,900 9,260 9,260 9,260 9,260 9,260 6,600 9,600 9,600 9,600 9,600 15,000 15,000 15,000 17,000 17,000 9,000 9,000 10,000 11,000 11,000 19,565 19,565 19,565 19,555 19,555 10,000 10,000 9,770 9,770 9,770 211,205 216,985 233,755 241,705 248,085 5,680 5,580 4,580 4,580 8,140 5,520 7,520 19,120 21,680 19,280 5,940 5,660 4,380 4,180 3,980 1,400 2,160 1,960 1,760 2,360 1,300 1,300 1,100 1,100 660 2,700 2,300 2,300 2,150 3,150 4,880 4,880 4,880 4,880 4,880 775 3,775 2,650 2,650 2,650 4,000 4,000 3,000 5,000 4,500 1,120 100 1,100 1,100 1,100 4,120 4,000 3,950 3,950 4,170 5,400 5,400 5,400 5,400 5,400 42,835 46,675 54,420 58,430 60,270 5,820 5,820 6,820 6,820 7,820 70,960 70,960 74,360 76,760 79,160 6,160 6,360 7,640 7,840 7,960 8,600 8,800 9,000 9,200 9,200 13,800 13,800 14,000 14,000 14,440 13,900 14,300 15,300 15,450 15,750 4,380 4,380 4,380 4,380 4,380 5,825 5,825 6,950 6,950 6,950 11,000 11,000 12,000 12,000 12,500 7,880 8,900 8,900 9,900 9,900 15,445 15,565 15,615 15,605 15,385 4,600 4,600 4,370 4,370 4,370 168,370 170,310 179,335 183,275 187,815 DECEMBER 1,1915. Statement 431 FEDERAL RESERVE BULLETIN. of Federal Reserve Agents1 accounts at close of business on Fridays Oct. 29 to Nov. 26, 1915—Continued. [In thousands of dollars.] Boston. Amounts held by the Federal Reserve Agent: In r e d u c t i o n of liability on o u t standing notesGold coin and certificates on hand— Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov. 26 Lawful money on hand— Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Credit balances in gold redemption fund— Oct. 29 Nov 5 Nov. 12.. . . Nov. 19 Nov. 26 . . . Credit balances with Federal Reserve Board— Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov. 26 As security for outstanding notes— Commercial paper— Oct. 29 . . Nov.5 Nov. 12 Nov. 19 Nov. 26 Total— Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov. 26 Memorandum: Total amount of commercial paper delivered to the Federal Reserve Agent— Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 5,820 5,820 6,820 6,820 7,820 New York. 70,740 70,790 74,190 76,590 79,010 Philadelphia. 6,160 6,360 7,640 7,840 7,960 Cleve- Richland. mond. 8,170 8,360 8,550 8,740 8,740 Atlanta. 450 250 St. Minne- Kansas Dallas. Chicago. Louis. apolis. City. 4,260 4,260 4,260 300 5,325 5,450 5,450 5,450 5,450 10,000 10,000 10,000 10,000 10,000 6,015 6,915 6,815 7,715 7,715 San Francisco. 9,540 9,540 9,540 9,540 9,540 126,480 127,495 133,515 132,695 136,535 ioo 100 100 430 440 450 460 460 220 170 170 170 150 5,820 5,820 6,820 6,820 7,820 70,960 70,960 74,360 76,760 79,160 220 170 170 170 150 6,160 6,360 7,640 7,840 7,960 8,600 8,800 9,000 9,200 9,200 100 100 100 550 560 570 580 580 120 120 120 120 120 8,500 8,800 8,800 8,800 8,800 9,200 10,050 11,050 11,200 ***"4,*266" 11,200 4,260 5,300 5,000 5,200 5,200 5,640 4,250 4,250 4,000 4,250 4,250 13,800 13,800 14,000 14,000 14,440 13,900 14,300 15,300 15,450 15,750 5,301 5,213 5,538 5,614 5,772 4,250 4,250 4,000 4,250 4,751 1,000 1,000 1,000 5,825 5,825 6,950 6,950 6,950 500 376 500 600 500 1,500 1,500 1,750 1,750 1,750 1,000 1,000 2,000 2,000 2,500 5uO 375 500 500 500 4,380 4,380 4,380 4,380 4,380 Total for system. 11,000 11,000 12,000 12,000 12,500 1,865 1,985 1,985 2,085 2,085 4,405 4,525 4,325 4,315 4,095 7,880 8,900 8,900 9,900 9,900 15,445 15,565 15,615 15,605 15,385 1,869 1 985 1,988 2,086 2,087 4,413 4 669 4,484 4,620 4,323 4,600 4,600 4,370 4,370 4,370 24,800 25,950 28,970 33,380 33,880 16,540 16,305 16,180 16,520 16,720 4,600 4,600 4,370 4,370 4,370 168,370 170,310 179,335 183,275 187,815 16,553 16,663 16,680 17,240 17,583 432 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915* GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to Nov. 19, 1915. Total. Vermont. St. Lawrence. Michigan. Duluth and Superior. 45 114 Chicago. Buffalo. 77 284 Dakota. Washington. Southern California. San Francisco. Laredo. 10 Alaska, Arizona. 19 El Paso. New Orleans. Florida. Porto Rico. Rhode Island. New York. Maryland. Maine and New Hampshire. [In thousands of dollars.] Week ending Oct. 22. Ore and base bullion Bullion, refined United States coin . . Foreign coin Total 32 479 8 6,705 480 7,224 480 3 150 6 2 4 23 24 42 2 5,767 10 8 153 4 3 1 24,333 5,791 — 361 159 49 167 42 24,335 1 234 1,053 15 37,285 38,587 • Week ending Oct. 29. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin 7 44 3 12 1 35 325 4,868 1 1 680 641 9,183 35 4,869 1 10,830 3 16 356 658 3 2 4,867 . . . 17,186 3 16 4,869 4 37 1 147 641 2,336 Total . 12 3 1,480 3,168 12 1,480 7 7 254 264 498 — 811 167 37 111 167 136 603 148 303 1 2,096 63 118 30 257 3 12 1 Week ending Nov. 5. Ore and base bullion Bullion, refined United States coin Foreign coin 16 407 . . . 11 321 Total 1 500 ... 11,744 4 4 8 8 8 105 498 • 501 18,203 Week ending Nov. 12. Ore and base bullion Bullion, refined United States coin Foreign coin 350 7 9., 833 2 225 2,637 1 9,483 Total 154 ... 13,847 3,638 726 7 I . i 726 154 5,735 63 148 6 60 39 2 37 4 16,710 1 Week ending Nov. 19. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin . . 13 8 ? 49 9 186 15 463 6 9,082 15 326 137 K 1 1,022 8,060 54 9 49 912 272 7 3,499 5,191 1 160 11 372 356 Ore and base bullion... 917 United States mint or 18 assay office bars 558 Bullion refined 10 **5* 455 1,333 3,429 13,006 . . . . 2,57i 10,706 25 15 30 22 49 12 United States coin 48,390 20,518 "3* 7 3,211 47,413 Foreign coin 8 996 11,650 50* 58,579 5 133 1 1,498 Total 8,394 5 13 ? 1,028 197 1 ... 9,752 Jan. 1 to Nov.. 19. . . . Total . 60,041 50 90,720 ! 3 3,236 407 811 1,501 IT3,708 61,353 8 7,078 5,816 1 13,336 6,921 8,131 86,562 39,323 6,939 40,224 1 155,585 4 161,264 1 1,498 1140,938 5 377,348 .... .... 5 133 433 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. Exports of gold, by customs districts, Jan. 1 to Nov. 19, 1915. Total. Vermont. St. Lawrence. Montana and Idaho. Michigan. Duluth and Superior. Dakota. Buffalo. Washington. San Francisco. Hawaii. Alaska. New Orleans. Porto Rico. New York. Maine and New Hampshire. [In thousands of dollars.] Week eliding Oct. 22. CJoiited States mint or assay office bars Bullion refined domestic United States coin Total 1,442 2 8 1 442 10 12 1 1 4 1,450 13 1 1,466 12 Week ending Oct. 29. Bullion, refined, domestic United States coin Total 17 1 18 483 17 x 501 483 483 Week ending Nov. 5. •Ore and base bullion United States mint or assay office bars Bullion refined, domestic United States coin Total. 29 95 4 13 95 46 1 5 30 5 4 108 6 147 Week ending Nov. 12. United States mint or assay office bars United States coin Foreign coin Total 200 3 1 450 1 1 653 1 200 3 452 655 Week ending Nov. 19. Ore and base bullion United States mint or assay office bars Bullion, refined: Domestic Foreign United States coin ... Foreign coin Total 1 10 25 26 10 7 1,012 1,012 25 2 i 10 500 1 10 518 279 5 120 25 41 20 508 134 4 828 4 2 6 6 2 i 11 1,523 6 2 1,576 Jan. 1 to Nov. 19. Ore and base bullion . . United States mint or assay office bars Bullion, refined: Domestic Foreign United States coin Foreign coin Total. 41 2 .. . 2 12,037 . . . . . 3.975 10 16,012 10 1 41 25 198 115 25 198 419 1 8 1 1 6 10 1 2 455 10 11 2 480 326 128 17 106 20 13,351 4,120 17 18,051 434 FEDERAL RESERVE BULLETIN. DECEMBER 1,1915. CIRCULARS AND REGULATIONS. The circular and regulation given below were issued by the Board on November 29: CIRCULAR NO. 19, SERIES OF 1915. WASHINGTON, November 29, 1915. OPEN-MARKET PURCHASES OF BANKERS' ACCEPTANCES. In Regulation R, series of 1915, relating to the discount of bankers' acceptances, the Federal Reserve Board provided for the purchase in the open market of bankers' acceptances based on the importation or exportation of goods. The appended regulation is intended to cover the purchase in the open market, not only of bankers' acceptances based on the importation or exportation of goods, heretofore covered by Regulation R, but also the purchase of certain domestic acceptances authorized by certain State laws. The Federal Reserve Board has determined that bankers' domestic acceptances, as defined and restricted in the appended regulation, are a very useful type of paper, and the Board has not felt justified, therefore, when admitting State banks and trust companies into the Federal Reserve System, in stipulating that such domestic acceptances should not be continued under reasonable limitations as a part of their business. Inasmuch as the making of these domestic acceptances has been recognized by the Board as the exercise of a legitimate banking function when authorized by law, it was thought that they are of the character to make desirable investments for Federal Reserve Banks. The Board has, therefore, issued the appended regulation, not only embodying the authority given in Regulation R, series of 1915, to purchase bankers' acceptances based on the importation or exportation of goods, but also authorizing the purchase of bankers' domestic acceptances within the limits prescribed in the appended regulation. II. Statutory requirements. Section 14 of the Federal Reserve Act permits Federal Reserve Banks, under regulations to be prescribed by the Federal Reserve Board, to purchase and sell in the open market bankers' acceptances with or without the indorsement of a member bank. III. Eligibility. The Federal Reserve Board has determined that, until further notice, to be eligible for purchase under section 14 at the rates to be established for the purchase of bankers' domestic and foreign acceptances: (a) Acceptances must have been made by a bank or trust company, or by some firm, person, company, or corporation engaged in the business of accepting or discounting. Such acceptances will hereafter be referred to as "bankers' acceptances." (6) A banker's foreign acceptance must be drawn by a purchaser or seller or other person, firm, company, or corporation directly connected with the importation or exportation of the goods involved in the transaction in which the acceptance originated, or by a "banker." The bill must not be renewed after the goods have been surrendered to the purchaser or consignee, except for such reasonable period as may have been agreed upon at the time of the opening of the credit as a condition incidental to the importation or exportation involved, provided that the bill must not contain or be subject to any condition whereby the holder thereof is obligated to renew the same at maturity. (c) A banker's foreign acceptance must bear on its face or be accompanied by evidence in form satisfactory to a Federal Reserve Bank that it originated in, or is based upon, a transaction or transactions involving the importation or exportation of goods. Such evidence may consist of a certificate on or accompanying the acceptance to the following effect: This acceptance is based upon a transaction involving the importation or exportation of goods. Reference No. . Name of acceptor REGULATION S, SERIES OP 1915. (d) A banker's domestic acceptance must be based on a transaction covering the shipment of goods, such transOPEN MARKET PURCHASES OF BANKERS' ACCEPTANCES. action to be evidenced at the time of acceptance by accompanying shipping documents, or must be secured I. Definition. by a warehouse receipt covering readily marketable In this regulation the term "acceptance" is defined as staples and issued by a warehouse independent of the a draft or bill of exchange drawn to order, having a definite borrower; or by the pledge of goods actually sold. (e) A banker's domestic acceptance must bear on its maturity, and payable in dollars, in the United States, the obligation to pay which has been accepted by an face or be accompanied by evidence in form satisfactory acknowledgment written or stamped and signed across the to the Federal Reserve Bank that it is based on a transface of the instrument by the party on whom it is drawn; action or is secured by a receipt or pledge of the character such agreement to be to the effect that the acceptor will defined in III (d) hereof. Such evidence may consist of pay at maturity according to the tenor of such draft or a certificate in general form similar to that suggested in III (c) hereof. bill without qualifying conditions. WASHINGTON, November 29,1915. DECEMBER 1,1915. (/) Bankers' acceptances, other than those of member banks, whether foreign or domestic, shall be eligible only after the acceptors shall have agreed in writing to furnish to the Federal Reserve Banks of their respective districts, upon request, information concerning the nature of the transactions against which acceptances (certified or bearing evidence under III (c) and (e) hereof) have been made. (g) The aggregate of bills, domestic and foreign, of anyone drawer, drawn on and accepted by any bank or trust company and purchased or discounted by a Federal Reserve Bank, shall at no time exceed 10 per cent of the unimpaired capital and surplus of such bank or trust company, but this restriction shall not apply to the purchase or discount of bills drawn in good faith against actually existing values; that is, bills the acceptor of which is secured by a lien on or by a transfer of title to the goods to be transported, or by other adequate security such as a warehouse receipt or the pledge of goods actually sold. (h) The aggregate of bills, domestic and foreign, of any one drawer, drawn on and accepted by any firm, person, company, or corporation (other than a bank or trust company) , engaged in the business of discounting or accepting, and purchased or discounted by a Federal Reserve Bank, shall at no time exceed a sum equal to a definite percentage of the paid-in capital of such Federal Reserve Bank, such percentage to be fixed from time to time by the Federal Reserve Board; but this restriction shall not apply to the purchase or discount of bills drawn in good faith against actually existing values; that is, bills the acceptor of which is secured by a lien on or by a transfer of title to the goods to be transported or ;by other ade- 435 FEDERAL RESERVE BULLETIN. quate security, such as a warehouse receipt; or the pledge of goods actually sold. (i) The aggregate of bankers' acceptances, domestic and foreign, made by any one firm, person, company, or corporation (other than a bank or trust company) engaged in the business of discounting or accepting, purchased or discounted by a Federal Reserve Bank, shall at no time exceed a sum equal to a definite percentage of the paid-in capital of such Federal Reserve Bank; such percentage to be fixed from time to time by the Federal Reserve Board. No Federal Reserve Bank shall purchase a domestic or foreign acceptance of a "banker" other than a member bank which does not bear the indorsement of a member bank, unless there is furnished a satisfactory statement of the financial condition of the acceptor in form to be approved by the Federal Reserve Board. IV. Policy as to purchases. Federal Reserve Banks should bear in mind that preference should be given wherever possible to acceptances indorsed by a member bank, discounted under section 13, not only because of the additional protection that such indorsement affords, but also because of the reason that acceptances discounted under section 13 may be used as collateral security for the issue of Federal Reserve notes. V. So much of Regulation R, series of 1915, as relates to the purchase in the open market of bankers' acceptances is hereby superseded. INDEX TO VOLUME 1. Acceptances: Page. Amendment to act regarding 52 Amount held each week, by classes 53, 84,169, 240, 292, 338, 385, 426 Amount purchased, distributed by maturities.. 241, 293, 339, 386, 427 Authority from Federal Reserve Board to purchase. 126 . Bankers' acceptances— Circulars and regulations on 44, 310,434 Paper of concerns not engaged in banking, eligibility of 362 Purchase of, in the open market 360, 365 Based on importation or exportation of goods. 91,276, 404, 405 Chart showing changes of 234 Circular and regulation on. 46 Commissions on, method of reporting 309 Conditions affecting negotiability of 21-23 Development of the acceptance business 52 Discount of, by member banks located in another district 98, 99 Distribution of, by classes of acceptors and sizes 54, 84,169, 240, 292, 338, 385, 426 Foreign acceptances— Crosstie and lumber exports 268 Importation or exportation of goods, transactions involving 91, 276, 404, 405 Forward discount rates 97, 98 Identification of specific goods under. 405 Indorsed by members of other districts as collateral security for Federal Reserve notes 98, 99 Limitations for acceptance credits 269 Member banks granted authority to accept up to 100 per cent 71 Renewals, right to discount 126 State bank acceptances, condition regarding purchase of 262 Trade acceptances, circular and regulation on. 216 Waiver of demand, notice and protest 277 Accounts of Federal Reserve Banks, date of closing. 212 Addresses. (See Speeches.) Advertising, right of national banks to advertise savings accounts 18-21 Advisory Council, meetings of 35, 303, 394 Agricultural paper: Circular and regulation on 38 Agricultural implements— Notes by dealers in, not classed as 212 Notes in part payment for, classed as 212 Agricultural paper—Continued. Need not be secured by chattel mortgage 72, 74 Notes by live-stock dealers not classed as 212 Notes in part payment for live stock classed as. 212 Primary purpose of loan must be agricultural.. 72 Proceeds used for commercial fertilizer 75 Twenty-five per cent limit fixed by Board 72 Aldrich-Vreeland currency. (See Emergency currency.) Appeals from decision of Organization Committee in determining'reserve^districts 30,85,142, 407 ^Report of committee of Board on 407 Assessments on Federal Reserve Banks for expenses of Board 118 Attorney General of tie United States: Opinion on franking of Federal Reserve notes.. 355 Opinion on power sof Board5to'abolish|Federal Reserve districts. 396 Bank examiners, conference of 217 Bankers' acceptances. (See Acceptances, bankers'.) Bills of exchange: Conditions affecting negotiability of 21 Purchase of, in the open market 360,365 Bonds: Municipal, purchase'of 221, 268 Government. (See Government bonds.) Bonds of officials of banks, cancellation of 404 Branch banks: Foreign branches— Establishment of joint branch banks in South America 308 Establishment of branches of Federal Reserve Banks in South America 313 Establishment of national-bank branches.. 51 Recommendations of Secretary of the Treasury concerning establishment of branch banks in South America 313 Report of Committee of Board on joint agencies in South America 348 Opening of branch bank of Federal Reserve Bank in New Orleans 123, 251, 298 State banks with branches converted into national banks 125 Conditions for admission to system 262 Additional branches 268 Trust companies with branches eligible for membership 126 Building and loan associations: Eligibility of 212 Mortgages held by, not eligible for rediscount.. 212 i INDEX TO VOLUME 1. Page. Business conditions throughout the 12 Federal Reserve Districts 55-59,106-111* 157-163, 225-232, 278-285, 322-330,373-380,410-420 Cable transfers, purchase of, in the open market-. 360, 365 Capital stock: Applications for reduction of, method of procedure 125 Applications for, to be filed quarterly 406 Certificates for increase-in, to be made in duplicate 211 Dividends on, payment of 220 To insolvent banks 267 Increase or decrease of— Applications for 74 Circulars and regulations on 42,148 Insolvent banks, repayment of stock subscription to 267 Laws passed authorizing State banks to subscribe for 150-156,182, 218, 263 Payment of subscription to 14,73 Surrender of, by member bank reducing its surplus 218 Surrender of, by banks transferred from one district to another 142 Tax on 13, 211,315 Billing of Solicitor of Internal Revenue on. 211 Charts showing movement of principal assets and liabilities of Federal Reserve Banks 233-235 Checks, clearing of. (See Intradistrict clearing system; Interdistrict clearing system; Gold settlement fund.) Circulars and regulations of the Federal Reserve Board: Circular 1. Issuance of circulars and regulations 36 Circular 2. Regulation A—Acceptance of statements in lieu of certificates of commercial paper 36 Circular 3. Regulation B—Commercial paper.. 36,37 Circular 4. Regulation C—Six months' agricultural paper 38 Circular 5. Regulation D (superseded by Circular 11). Circular 6. Regulation E—Time deposits and savings accounts 38, 39 Circular 7. Regulation F—-Purchase of warrants 39, 40 Circular 8. Waiver of demand, notice, and protest 41 Circular 9. Regulation G—-Increase and decrease of capital stock of Federal Reserve Banks 42 Circular 10. Regulation H—National banks as executors, trustees, etc 42,43 Regulation I—Loans on farm lands 43 Circular 11. Regulation J—Bankers' acceptances 44,45 Page^ Circulars and regulations of the Federal Keserve B oard—Continued. Circular 12. Regulation K—Acceptance by member banks 46 Circular 13. Regulation L—Clearings between Federal Reserve Banks 78,79 Circular 14. Regulation M—Membership of State banks 145 Circular 15. Regulation N—Changes in capital stock of Federal Reserve Banks 148 Regulation O—Issuance and redemption of Federal Reserve notes 215 Circular 16. Regulation P—Trade acceptances. 216 Circular 17. Regulation Q—Commodity paper. 310 Circular 18. Regulation R—Banker's acceptances 310 Circular 19. Regulation S—Open-market purchases of bankers' acceptances 434 Clayton Antitrust Act, interpretation of section 8 of 27,28,222,362,365,405 Clearing committee of Federal Reserve Agenta, meeting of 307 Clearing-house examination of banks 307 Clearing of checks. (See Intradistrict clearing system; Interdistrict clearing system; Gold settlement fund.) Collateral security for Federal Reserve notes, pledges of 36S Collateral trust notes: Manufacturers' notes secured by bills receivable not classed as. 127 Not eligible for rediscount 72,127 Commercial National Bank of Washington, foreign branches of 51 Commercial paper: Chart showing movement of 234 Circular and regulation on 36 Classification of commodity paper 307,406 Collateral trust notes not eligible as 72,127 Conditions affecting negotiability of 21 Drafts payable on arrival of car, eligibility of, for rediscount 219 Establishment of rate for 10-day paper 124 For reducing liability on Federal Reserve notes, indorsement of 363 Indorsements on notes 127 Minerals, unmined, as security 126 Notes used for purchase of merchandise 268 Pig iron as security 127 Potatoes as security 405 Proceeds used for purchase and shipment of goods to Cuba 268 Purchase of, by Federal Reserve Banks for member banks 347 Rebate of discount 308 Rediscounting for nonmember banks 213 INDEX TO VOLUME 1. Commercial paper—Continued. Single-name paper, purchase of, in the open market 365 Statements showing distribution of 166-168, 242-245, 288-292, 334-337, 381-384, 421-424 Timber, uncut, as security 126 Warehouse receipts, loans on 406 Committees of the Board, standing 77,400 Commodity paper: Circular and regulation on 310 Classification of 307,406 Establishment oi special rate on 312 Cotton: Warehouse laws 260 Warehousing of 180, 254 Cotton crop: Movement of 180,258 Government deposits for 260,301 Counsel of the Board, opinions of. (See Law department.) Credit information 347 Crops: Movement of 180, 258,301 Deposits for 259, 260,301 Currency: Increased demand for 314 Shipment of 12 Delano, Hon. F. A. D., address of, before American Bankers Association, Seattle, Wash 298 Deposits: Chart showing movement of reserve deposits... 234 Federal Reserve notes for redemption or credit. 276 Gold or lawful money for reducing liability for Federal Reserve notes 273 Guaranteeing of 29, 51,408 With nonmember banks 126 (See also Government deposits; Time deposits and savings accounts.) Deputy Federal Reserve Agent, compensation of.. 362 Deputy governor of Federal Reserve Banks; election of J. W. Hoopes as deputy governor of Federal Reserve Bank of Dallas 50 Digest of warehouse laws of Southern States 260 Directors of Federal Reserve banks: Class C director may serve on executive committee 211 Election of 211,407 Forms used in 361 Eligibility of, at time of election 103 Qualifications of 103 Directors of national banks, interpretation of section 8 of Clayton Act regarding 27,222,365 Discount rates: Establishment of 3 per cent rate for 10-day paper 124 Form used by Federal Reserve Agents in reporting 71 Right to establish 24-26 Discount rates—Continued. page. In effect April 25, 1915 29 In effect May 26, 1915 Ill In effect June 26, 1915 124 In effect July 28, 1915 214 In effect August 26, 1915 266 In effect September 28, 1915 343 In effect October 28, 1915 359 In effect Nov. 26, 1915 403 Discounts: Acceptances indorsed by member banks located in another district 98 Rebate of 308 Rediscountiug for nonmember banks 213 Dividends on capital ntock: Payment of 220 Payment of, to insolvent banks 267 Drafts and notes, collection of 346 Drafts payable on arrival of car, eligibility of, for rediscount 219 Earnings and expenditures of Federal Reserve Banks: November 16, 1914, to June 30, 1915.... 176-179, 331 July 1 to September 30, 1915 349-351 Election of directors of Federal Reserve Banks 211 Emergency currency: Distribution of 80, SI Federal Reserve notes on hand, in lieu of 50 Outstanding 29, 79 Retirement of 324 Examination of banks, by clearing-house examiner 307 Exchange of 2 per cent bonds for one-year gold notes and 3 per cent bonds 101,102 Executive Committee of Federal Reserve Banks, composition of 211 Expenses of Federal Reserve Banks 176, 331, 349 Expenses ot Federal Reserve Board: Assessment for 307 Statement showing 118 Exportation of goods, acceptances based on 91-97 Exports of gold^ 77,165, 236,287, 333,391,432 Farm lands, loans on, regulation on 43 Farm loans 309 Mortgage on undivided interest in 75 Federal Reserve Act: Amendment to, relating to acceptances 52 Index-digest of 15 Section 22, interpretation of 16-18 Federal Reserve Agents: Deposits of gold or lawful money with Board by. 273 Meetings of 347,395 Meeting of Clearance Committee of 307 Reports by, to Federal Reserve Board 13 Report of Committee on Clearings 369 Statement of accounts 248, 296, 342, 389,430 Summary of transactions, Federal Reserve Agents' fund 359,403 IV INDEX TO VOLUME 1. Federal Reserve Agents—Continued. Page. Federal Reserve Districts—Continued. Page. Transfer of balances in gold settlement fund to Counties transferred— account of 303 District No. 3 to district No. 2 86 Transfer of funds to gold settlement fund in Dit-trict No. 11 to district No. 10 86 payment of unfit Federal Reserve notes 404 District No. 5 to district No. 4 86 Federal Reserve Bank Organization Committee: Banks transferred— Appeals from decision oi, relating to reserve District No. 3 to district No. 2 87 districts 30; 85,142, 407 District No. 11 to district No. 10 87 Opinion of Attorney General on power of Board District No. 5 to district No. 4 90 to abolish Federal Reserve districts 396 Decision by Board regarding redistricting 85,142 Federal Reserve Banks: Decision by Attorney General on power of Board Accounts of, date of closing 212 to abolish 396 As fiscal agents 395 Discounts of member banks transferred from one Assessment on, for expenses of Board 118 district to another 102 Average time to destination between S3 Map showing 88, 89 Capital stock of. (See Capital stock.) Federal Reserve notes: Directors of. (See Directors.) Acceptances indorsed by members of other disEarnings and expenditures of— tricts as collateral security for 98, 99 November 16, 1914, to June 30, 1915. 176-179,331 As reserves for State member banks 318 Commercial paper for reducing liability on, inJuly 1 to September 30, 1915 349-351 dorsement of 363 Executive Committee, composition of 211 Deposit of, for credit or redemption 276 Expenses and investments of 331 Gold or lawful money reducing liability for, No authority to execute orders for securities for deposited with Board by Federal Reserve member banks 346 Agents 273 Resources and liabilities of, tabular statements Gold-order certificates for reducing liability on, showing 60,112,170, indorsement of 363 171, 246, 247, 294, 295, 339-341, 387, 388,428 In lieu of retired emergency currency 50 Right to act as collecting agents for other Interdistrict movement of 351 banks I 104,105 Redemption of 276, 306 Transferred from one district to another, adjustment of accounts 144 Regulation on issue and redemption of 215 Federal Reserve Board: Separation of accounts for preparation of 14 Appeal from decision of Federal Reserve Bank Shipment through the mails, franking of 355 Organization Committee as to Federal ReSilver certificates for reducing liability 127 serve districts 85,142 Statements showing circulation of 341, 388,429 Estimates for expenses of 118 Unfit notes for redemption, forwarding of 306 Expenses of 118 Transfer from agent's fund to gold settleAssessment for 118, 307 ment fund in payment for 404 Report of committee of, on joint agencies in "Federal," use of word, by State institutions 361 South America 348 Fiduciary powers: Staff of . 30 Applications for, approved by the Board 31, Standing committees of 77, 400 83,144, 214, 272, 320, 367, 408 Work of 5; 63,117,175, 251, 297, 345, 393 Applications for, to be submitted to Board 125 Federal Reserve Bulletin: Circulars and regulations on 42 May 1-63 Eligibility of national banks in Oregon to act June 65-113 as trustee, etc 319 July 115-171 Guardian, no authority to act as 269 August 173-248 Instructions to agents in the matter of granting September 249-296 of 33, 34 October 297-343 Investment of trust funds 306 November 345-391 Laws passed authorizing national banks to act December 393-435 as trustee, executor, etc 150 Volume 1, completion of 393 Receiver, no authority to act as 362 Federal Reserve Districts: Resolution by Board regarding legislation to Changes in 30, 85,142 remove restrictions 48 Adjustment of accounts between Federal Rules for guidance in passing upon applications for 380 Reserve Banks 144 Finance companies, paper issued by, not eligible for Procedure in transferring capital stock and rediscount 72 reserve balance 142 INDEX TO VOLUME 1. Fage. Page. Fiscal agents, Federal Reserve Banks to act as 395 Informal rulings of Board—Continued. Agricultural implements, notes in part payForeign agencies. (See Branch banks, foreign.) ment for, classed as agricultural paper 212 Forward discount rates, establishment of 97, 98 Agricultural paper— Franchises as taxable property under Regulation F . 221 Need not be secured by chattel mortgage.. 72, 74 Franking of Federal Reserve notes 355 Notes by live stock dealers not classed as.. 212 Gold imports and exports-... 76,164, 236, 286,332, 390, 432 Primary purpose of loan must be agriGold-order certificates for reducing liability on cultural 72 Federal Reserve notes, indorsement of 363 Proceeds used for commercial fertilizer... 75 Gold or lawful money deposited for reducing liaSecured by mortgage on live stock 74 bility for Federal Reserve notes 273 25 per cent limit fixed by Board 72 Gold settlement fund: Assessments for expenses of Board 307 Average time to destination between Federal Reserve Banks 83 Bankers' acceptances, paper of concerns not enCircular and regulation on 78 gaged in business of banking, eligibility of.. 362 Deposits in, counted as reserves 9 Bonds, municipal, purchase of 268 Establishment of 9,49, 82 Bonds of officials of banks, cancellation of 404 Expenses of operation, 6 months 401 Branch banks, foreign, establishment of joint.. 308 Opinion of Counsel regarding status of 9 Branch banks, trust companies with branches Report of committee of governors on ' 82 eligible for membership 126 Summary of transactions... 120,183, 264, 303, 357, 402 Branches of national banks 125 Transfer of balances to credit of Federal ReBuilding and loan associations, eligibility of.. 212 serve Agents 303 Capital stock— Government bonds: Applications for, to be filed quarterly 406 Allotment of 355 Applications for increase or decrease of... 74 Assignment of 2 per cent bonds 314 Certificates for increase to be made in Exchange of 2 per cent bonds for one-year gold duplicate 211 notes and 3 per cent bonds 101 Reduction of 125 Purchase of 99,127, 217,268,314, 355 Payment of subscription to 14, 73 In the open market 268 | Repayment of, to insolvent banks 267 Retirement of 355 | Tax on 13 Government deposits: ' Clayton Act, interpretation of section 8 362, 405 Federal Reserve Banks as fiscal agents 395 Clearing committee of Federal Reserve Agents, For movement of cotton crop 260, 301 ! meeting of 307 State banks as Government depositories 274 j Collateral trust notes not eligible for redisGovernors of Federal Reserve Banks: j count 72,127 Conference of, in Minneapolis, Oct. 20.1915.... 356 | Commercial paper— Election of R. L. Van Zant as governor of Fedj Notes used for purchase of merchandise... 268 eral Reserve Bank of Dallas 50 j Proceeds used for purchase and shipment Meetings of 15,47,122,356 i of goods to Cuba 268 Report of committee of, on gold settlement fund 82 1 Warehouse receipts, loans on 406 Guarantee of deposits 29, 51, 408 Commissions on warrants and acceptances, Guardian, authority to act as 269 forms for reporting. 309 Harding, Hon. W. P. G.: Commodity paper, classification of 307, 406 Address before Texas Bankers Association 66-71 Cotton-mill paper 73 Address of, at Birmingham, Ala 252 Currency, shipment of 12 Hamlin, Hon. Chas. S., address before Pan AmeriDate of closing accounts 212 can Financial Conference 136 Date when applicant bank becomes member.. 268 Importation or exportation of goods, transactions Deposits with nonmember banks 126 invol ving 91, 276,404 Deputy Federal Reserve Agent, compensation Imports and exports of gold. 76,164, 236, 286, 332,390,432 of 362 Informal rulings of Board: Directors of Federal Reserve Banks— Acceptances— Election of 211 Importation or exportation of goods, transForms used 360 actions involving 404,405 Dividends, payment of, to insolvent banks 267 Authority to purchase 126 Eligibility of small State bShks 212 Identification of specific goods under 405 Examination of banks by clearing-house examLimitations on acceptance credits 269 iner 307 Renewals, discount of 126 VI INDEX TO VOLUME 1. Informal rulings of Board—Continued. Page. Informal rulings of Board—Continued. Page. Executive committee of Federal Reserve Silver certificates— Banks, composition of 211 As lawful money 12 Farm loans, mortgage on undivided interest For reducing liability on Federal Reserve in 75 notes 127 Federal Reserve Act, index-digest of 15 For retiring circulation 13 Federal Reserve Agents, reports by, to Federal State banks with branches converted into national banks 125 Reserve Board 13 Federal Reserve agents' fund, transfers from, State bank branches 268 to gold settlement fund for payment of unfit State banks, reports of condition 309 Federal Reserve notes. 404 State banks, reserves carried with approved Federal Reserve Bank stock, tax on 13 ! reserve agents 75 Federal Reserve n o t e s Stationery, official, use of 404 Forwarding of unfit notes for redemption.. 306 i Tax on Federal Reserve Bank stock 13 Separation of accounts for preparation of.. 14 \ Timber, uncut, as security 126 Transfer from agents' fund to gold settleTime deposits and savings accounts 73,211 ment fund for payment of unfit 404 i Trust companies with branches eligible for Fiduciary powers— j membership 126 Applications for, submitted to Board 125 j Trust funds, deposits of 125 Rules for guidance in passing upon applicai Trustee, executor, etc., executive committee tionsfor 308 j approval sufficient on application 211 Finance companies, paper issued by, not eli; Use of word "Federal " b y State institutions... 361 gible for rediscount 72 • Warehouse receipts, loans on 406 Government bonds, purchase of 127 Window advertising. 362 In the open market 268 | Insolvent banks: Guardian, no authority to act as 269 ; Payment of dividends to 267 Indorsements on notes 127 j Repayment of stock subscriptions to 267 Insurance on unfit notes 306 Iuterdistrict clearing system: Internal-revenue tax imposed by act of October Circular and regulation on 78 22,1914 211 I Report of Federal Reserve Agents' Committee # Interpretation of Regulation B as to borrowers' ; on Clearings 369 statements 213 | Interest rates. (See Discount rates.) Investment of trust funds 306 | Internal-revenue tax imposed by act of October 22, Lawful money, definition of 12 j 1914 .....* 211 Liquidating banks, deposits for redeeming out! Interpretation of section 22 of Federal Reserve Act.. 16-18 standing circulation 404 | Intradistrict clearing system: Live stock, paper secured by mortgage on 74 I Circular of Federal Reserve Bank of Chicago on Minerals, unmined, as Security 126 establishment of 6 Money-order business, Board not to engage i n . . 127 Establishment of. 6,48,192 National-bank notes— Immediate credit at par granted Richmond For redemption, forwarding of 306 bank 367 Shipment of 12 List of banks in 195, 270, 321, 367, 408 Open-market operations 360, 406 Meeting of Clearing Committee of Federal Pig iron as security for commercial paper 127 Reserve Agents 307 Potatoes as security for commodity loans 406 Report of Clearing Committee of Federal Real estate loans 309 Reserve Agents 369 Rebates of discount 308 Joint agencies in foreign countries. (See Branch Receiver, no authority to act as, under section banks, foreign.) 11 362 Law department: Rediscounting for nonmember bank 213 Acceptances— Renewal notes, discount of 74 Based on importation and exportation of Reserve balance, violation of, by member goods, discount of 91-97, 276 banks 12 Conditions affecting negotiability of 21-23 Reserves by State member banks carried with Forward discount rates 97,98 approved reserve agents 75 Discount of, by member banks located in Reserves, date for payment of 361 j another district 98, 99 INDEX TO VOLUME 1. vn Law department—Continued. Page. Law department—Continued. pa.ge. Advertising, right of national banks to advertise Franchises as taxable property under Regulasavings accounts. IS tion F 221 Bills of exchange and acceptances, conditions Gold settlement fund, status of, in its relation affecting their negotiability 21-23 to reserves of Federal Reserve Banks 9 Capital stock of Federal Reserve Banks— Government bonds— Deduction of, in assessments for State taxaExchange of 2 per cent bonds for one-year tion 815 gold notes and 3 per cent bonds 101 Payment of dividends on 220 Purchase of 99 Surrender of, by member bank reducing its Government depositories, use of State banks as. 274 surplus 218 Importation or exportation of goods, transacClayton Antitrust Act, interpretation of section tions involving 91, 276 8*of 27, 222, 365 Laws passed authorizing State banks to join Collateral security for Federal Reserve notes, system 150-156,182, 218,263 pledges of 363 National banks, right of, to advertise savings Commercial paper— accounts 18-21 Conditions affecting negotiability of 21 Nebraska law relating to guaranty of deposits. 46 Drafts payable on arrival of car, eligibility Open market, purchase of single-name paper i n . 365 of, for rediscount 219 Pledges of collateral security 363 Single-name paper, purchase of, in the Possessions of the United States, acceptances open market 365 based on shipments to and from 93 Deposits of gold or lawful money with Federal Postal savings deposits, reserves against 408 Reserve Board b y Federal Reserve Agents... 273 Postal savings funds deposited with State banks 274 Deposits of national banks guaranteed by Qualifications of Federal Reserve Bank direcsurety companies 29 tors 103 B.egulation F, interpretation of 221 Deposits, guaranty of, Nebraska law relating t o . 408 Directors of Federal Reserve Banks, eligiReports of condition of State banks 319 bility of, at time of election 103 Reserves— Directors of national banks, interpretation of Against postal savings deposits 408 Clayton Act regarding 27, 222, 365 Deposits in gold settlement fund counted a s . 9 Discount of acceptances indorsed by member Federal Reserve and national-bank notes banks located in another district 98, 99 as, for State member banks 318 Savings accounts, right of national banks to adDiscount rates, right to establish 24-26 vertise 18-21 Discounts of member banks transferred from Section 22 of Act, interpretation of 16-18 one district to another 102 State banks— Dividends on capital stock, payment of 220 As Government depositories 274 Drafts payable on arrival of car, eligibility of. Laws passed authorizing State banks to for rediscount 219 join system 150,182,218,263 Eligibility of national banks in Oregon to act Liability of stockholders of 273 as trustee, etc 319 Reports of condition of 319 Exchange of 2 per cent bonds for one-year gold Surrender of stock by a member bank reducing notes and 3 per cent bonds 101,102 its surplus 218 Exportation of goods, acceptances based on 91-97 Tax on Federal Reserve Bank stock 315 Federal Reserve Act, interpretation of section Trustees, executors, etc.— 22 16-18 Laws passed authorizing national banks to Federal Reserve Agents, deposits of gold or lawact as 150-156 ful money with Board by 273 Eligibility of national banks in Oregon to Federal Reserve Banks as collecting agencies. 104,105 act as 319 Federal Reserve districts, discounts of memUnited States bonds— ber banks transferred from one district to Exchange of 2 per cent bonds for one-year another. 102 gold notes and 3 per cent bonds 101,102 Forward discount rates, establishment of . 97,98 Purchase of, by Federal Reserve B a n k s . . 99,100 Federal Reserve notes— Waiver of demand, notice and protest 277 Acceptances indorsed b y members of other Warrants, maturity of, under section 14 221 districts as collateral security for 98, 99 12 Deposit of, for credit or redemption 276 Lawful money, definition of As reserves for State member banks 318 Laws passed authorizing State banks to join system 150-156,182,218, 263 Pledges of collateral security for 363 INDEX TO VOLUME 1. Page. Liability of stockholders of State banks joining system 273 Liquidating banks, deposits for redeeming outstanding circulation 404 Live stock: Agricultural paper secured by mortgage on 74 Notes by dealers in, not classed as agricultural paper 212 Notes in part payment for, classed as agricultural paper 212 Map showing Federal Reserve districts 88, 89 Minerals, unmined, as security 126 Money-order business, Board not to engage in 127 j Movement of crops 180, 258, 301 Government deposits for 259, 260, 301 Municipal bonds and warrants, purchase of, in the open market 221, 268 National-bank notes: As reserves for State member banks 318 Forwarding of, for redemption 306 Shipment of 12 National banks: Joint branches of, in foreign country, establishment of 308 Laws passed authorizing national banks to act as trustee, executor, etc 150-156 Right of, to advertise savings accounts 18-21 State banks with branches converted into 125 National City Bank of New York, foreign branches of 51 v New Orleans, La., opening of branch bank at. 123, 251, 298 Nonmember banks: Collection of items drawn on 346 Rediscounting for 213 Notes and drafts, collection of 346 Open-market operations: Bankers' acceptances, purchase of 360, 365 Circular and regulation on 433 Bills of exchange, purchase of 360, 365, 406 Cable transfers, purchase of 360, 365 Government bonds, purchase of 268 Municipal bonds, purchase of 221, 268 Promissory notes not eligible for purchase in open market 365 Single-name paper, purchase of 365 Opinions of Counsel of Board. (See Law department.) Opinions of Attorney General. (See Attorney General.) Organization Committee. (See Federal Reserve Bank Organization Committee.) Pan American Financial Conference 35,128 Address of Hon. P. M. Warburg before 132 Address of Hon. C. S. Hamlin before 136 Participation of Board in 131 Report on 128 Report on, by Secretary of the Treasury, concerning branch banks in South America 313 Perrin, John, address of, before supervisors of State banks, Oakland, Cal 186 Pig iron as security for commercial paper 127 Potatoes as security for commodity loans 406 Possessions of the United States, acceptances based on shipments to and from 93 Postal savings funds, deposits of: In State banks 274 Reserves against 408 Press statements: Authorization of lower discount rates in southern districts 47 Bankers' acceptances 312 Directors of Federal Reserve banks, election of. 407 Election of R. L. Van Zant as governor and J. W. Hoopes as vice governor of Dallas bank 50 Establishment of intradistrict clearing system. 48 Federal Reserve notes in lieu of emergency currency 50 Gold settlement fund, establishment of 49 Guaranteeing of bank deposits 51 Meeting of governors of Federal Reserve Banks. 47 Nashville and Chattanooga, Tenn., designated as reserve cities 48 Report of committee of Board on appeals from decision of Federal Reserve Bank Organization Committee 407 Restrictions as to national banks acting as trustee, etc., resolution of Board regarding 48, 49 Special rate on commodity paper 312 Trip of Hon. A. C. Miller to San Francisco and other points 49 Trip of Hon. W. P. G. Harding to banks in southern district 47 Visit of Sir George Paish and Mr. Basil Blackett, of England, to discuss international exchange and cotton problems 50 Promissory notes not eligible for open-market purchase 365 Real estate, loans on 309 Receivers, no authority granted to act as 362 Redemption of Federal Reserve notes 276 Forwarding of unfit notes for redemption 306 Redemption of national-bank notes 306 Redistricting of Federal Reserve districts. (See Federal Reserve districts.) Regulation B, interpretation of, as to borrowers' statements 213 Regulation F: Interpretation of. 221 Franchises as taxable property under 221 Renewal acceptances, discount of 126 Renewal notes, discount of 74 Report of Federal Reserve Agents' Committee on Clearings 369 Reports of condition of State banks 319 Reserve cities, Nashville and Chattanooga, Tenn., designated as 48 INDEX TO VOLUME 1. Reserves: Page. Balances due State banks counted as 368 Carried against postal savings deposits 408 Date for payment of 361 Deposits held in gold settlement fund counted as 9 Federal Reserve notes and national-bank notes counted as, for State banks 318 State member bank reserves carried with approved reserve agents 75 Violation of reserve balance by member bank.. 12 Resources and liabilities of Federal Reserve Banks: Charts showing movement of principal assets and liabilities of Federal Reserve Banks.. 233-235 Tabular statements showing 60, 112,170,171,246,247,294,295,339, 387,428 Savings accounts 73, 211 Right of national banks to advertise 18-21 Short-time paper, establishment of rate for 124 Silver certificates: As lawful money 12 For reducing liability on Federal Reserve notes 127 For retiring circulation 13 Single-name paper, not to be purchased in the open market 365 Solicitor of Internal Revenue, ruling on internalrevenue tax 211 Solicitor of Treasury, opinion on Nebraska law relating to guarantee of deposits 408 Speeches: Delano, Hon. F. A. D., before American Bankers' Association, Seattle, Wash 298 Hamlin, Hon. Charles S., before Pan American Financial Conference 136 Harding, Hon. W. P. G.: Before Texas Bankers' Association 66 At Birmingham, Ala 252 Perrin, John, at Oakland, Cal 186 Warburg, Hon. P. M.— Before Pan American Financial Conference. 132 At Conference of Governors, Minneapolis, Minn 352 Wills, D. C , at Lexington, Ky 189 Staff of the Federal Reserve Board 30 State banks: Acceptances, conditions regarding purchase of. 262 Admitted to system 29, 251, 314, 347 Approval for membership; conditions 262 Branches— Additional 268 Conditions for admission to system 262 Converted into national banks 125 Eligibility of small State bank 212 Federal Reserve notes and national-bank notes counted as reserves 318 Government depositories 274 Laws passed authorizing State banks to join system 150-156,182,218,263 IX State banks—Continued. Page. Liability of stockholders of 273 Membership in, circular and regulation on 145 Reports of condition 309 To be made to Comptroller 319 Reserves carried with approved reserve agents. 75 Stockholders, liability of 273 Stationery, official, use of 404 Stock subscriptions. (See Capital stock.) Stockholders of State banks, liability of 273 Tax on capital stock 13, 211, 315 Telegrams, Government rates for official 77 Timber, uncut, as security 126 Time and demand deposits and savings accounts.. 73, 211 Circular and regulation on 38 Trade acceptances, circular and regulation on 216 Trust companies with branches eligible for membership 126 Trust funds, deposit of 125 Trustee, executor, etc.: Applications to act as— Approved 31,83,144,214,272,320, 367, 408 Executive committee approval sufficient.. 211 Rules for guidance in passing upon 308 To be submitted to Board 125 Circular and regulation on 42 Deposit of funds of 125 Eligibility of national banks in Oregon to act as. 319 Investment of trust funds 306 Laws passed authorizing national banks to act as 150-156 Receiver, no authority granted to act as 362 United States bonds: Assignment of 2 per cent bonds 314 Exchange of 2 per cent bonds for one-year gold notes and 3 per cent bonds 101 Purchase of 99,127, 217,268, 314,355 Retirement of 355 Volume 1 of Bulletin, completion of 393 Waiver of demand, notice, and protest 277 Circular and regulation on 41 Warburg, Hon. P. M.: Address before Pan American Financial Conference 132 Address before Conference of Governors, Minneapolis, Minn 352 Warehouse laws in cotton-growing States 260 Warehouse receipts, loans on 406 Warehousing of cotton 180,254 Warrants: Circular and regulation on purchase of 39 Commissions on, method of reporting 309 Maturity of, under section 14 221 Municipal, purchase of 221 Wills, D. C , address of, at Lexington, Ky 189 Window advertising 362 Work of the Federal Reserve Board 5,63, 117,175,251,297,345,393 O