Full text of Federal Reserve Bulletin : December 1916
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON DECEMBER, 1916 WASHINGTON GOVERNMENT PRINTING OFFICE 1916 FEDERAL RESERVE BOARD. EX OFFICO MEMBERS. WILLIAM G. MCADOO, Secretary of the Treasury, Chairman. JOHN SKELTON WILLIAMS, Comptroller of the Currency. W. P. G. HARDING, Governor. PAUL M. WARBURG, Vice Governor. FREDERIC A. DELANO. ADOLPH C. MILLER. CHARLES S. HAMLIN. H. PARKER WILLIS, Secretary. SHERMAN ALLEN, Assistant Secretary and Fiscal Agent. 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. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their directors may have it sent to not less than ten names at a subscription price of $1 per year. in TABLE OF CONTENTS. Bank investments in foreign obligations. . Review of the month Development of dollar exchange Refunding of Government bonds for 1917 Meeting of Federal Advisory Council Method of reporting reserves Growing use of acceptances . .., * Liability under acceptances. Classification of member banks for election of directors Operation of the clearing plan Fiscal operations of Federal Reserve Banks Fiduciary powers granted New national-bank charters granted Commercial failures during October Reserves of national banks Gold settlement fund Discount rates in effect Informal rulings of the Board Law department Business conditions throughout the 12 Federal Reserve districts Summary of Distribution of discounted paper o Acceptances, distribution of .. Federal Reserve Bank statements Gold imports and exports Earnings on investments of Federal Reserve Banks Foreign exchange rates quoted in New York during the period 1914-1916 Index to volume 2 IV . . ; 661 663 665 666 667 668 669 670 670 670 671 671 672 672 672 674 677 678 680 688 ,. 687 711 717 720 724 726 727 I-XI1 FEDERAL RESERVE BULLETIN VOL. 2 DECEMBER 1, 1916. BANK INVESTMENTS IN FOREIGN OBLIGATIONS.* * In view of contradictory reports which have appeared in the press regarding its attitude toward the purchase by banks in this country of Treasury bills of foreign Governments, the Board deems it a duty to define its position clearly. In making this statement the Board desires to disclaim any intention of discussing the finances or of reflecting upon the financial stability of any nation, but wishes it understood that it seeks to deal only with general principles which affect all alike. The Board does not share the view frequently expressed of late, that further importations of large amounts of gold must of necessity prove a source of danger or disturbance to this country. That danger, the Board believes, will arise only in case the inflowing gold should remain uncontrolled and be permitted to become the basis of undesirable loan expansions and of inflation. There are means, however, of controlling accessions of gold by proper and voluntary cooperation of the banks or, if need be, by legislative enactment. An important step in this direction would be the anticipation of the final transfer of reserves required by the Federal Reserve Act to become effective on November 16, 1917. This date could be advanced to February or March, 1917. Member banks would then be placed on the permanent basis of their reserve requirements and fictitious reserves would be eliminated. The banks would thus have a clearer conception of actual reserve 1 Statement issued to the press for use Nov. 28. No. 12 and financial conditions. It will then appear that while a large increase in the country's gold holdings has taken place, the expansion of loans and deposits has been such that, there will not remain any excess of reserves, apart from the important reserve loaning power of the Federal Reserve Banks. In these circumstances the Board feels that member banks should pursue a policy of keeping themselves liquid; of not loaning down to the legal limit, but of maintaining an excess of reserves—not with reserve agents, where their balances are loaned out and constitute no actual reserve, but in their own vaults or preferably with their Federal Reserve Banks, The Board believes that at this time banks should proceed with much caution in locking up their funds in long-term obligations or in investments, which are short term in form or name but which, either by contract or through force of circumstances, may in the aggregate have to be renewed until normal conditions return. The Board does not undertake to forecast probabilities or to specify circumstances which may become important factors in determining future conditions. Its concern and responsibility lies primarily with the banking situation. If, however, our banking institutions have to intervene because foreign securities are offered faster than they can be absorbed by investors—that is, their depositors—an element would be introduced into the situation which, if not kept under control, would tend toward instability, and ultimate injury to the economic development of this country. The natural absorbing power of the 661 662 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916 foreign countries in all parts of the world it takes occasion to suggest that the investor should receive full and authoritative data— particularly in the case of unsecured loans— in order that he may judge the future intelligently in the light of present conditions and in conjunction with the economic developments of the past. The United States has now attained a position of wealth and of international financial power which in the natural course of events it could hot have reached for a generation. We must be careful not to impair this position of strength and independence. While it is true that a slowing down in the process of credit extension may mean some curtailment of our abnormally stimulated export trade to certain countries, we need not fear that our business will fall off precipitately should we become more conservative in the matter of investing in loans, because there are still hundreds of millions of our own and foreign securities heFd abroad which our investors would be glad to take over, and, moreover, trade can be stimulated in other directions. In the opinion of the Board it is the duty of banks to remain liquid in order that they may be able to continue to respond to our home requirements. The nature and scope of these requirements none can foresee. Such a course is moreover necessary in order that our present economic and financial strength may be maintained when, at the end of the war, we shall wish to do our full share in the work of international reconstruction and development which will then lie ahead of us. At that time there will be a clearer understanding of economic conditions as they will then exist and The Board does not consider that it is called this will enable the country more safely and upon to advise private investors, but as the intelligently to do its proper part in the finanUnited States is fast becoming the banker of cial rehabilitation of the world. investment market supplies an important regulator of the volume of our sales to foreign countries in excess of the goods that they send us. The form which the most recent borrowing is taking, apart from reference to its intrinsic merits, makes it appear particularly attractive as a banking investment. The Board, as a matter of fact, understands that it is expected to place the issues primarily with banks. These would appear so attractive that unless a broader and national point fo view be adopted, individual banks might easily be tempted to invest to such an extent that the banking resources of this country employed in this manner might run into many hundreds of millions of dollars. While the loans may be short in form, and severally may be collected at maturity, the object of the borrower must be to attempt to renew them collectively, with the result that the aggregate amount placed here will remain until such time as it may be advantageously converted into a long-term obligation. It would, therefore, seem, as a consequence, that liquid funds of our banks, which should be available for short credit facilities to our merchants, manufacturers, and farmers, would be exposed to the danger of being absorbed for other purposes to a disproportionate degree, especially in view of the fact that many of our banks and trust companies are already carrying substantial amounts of foreign obligations, and of acceptances which they are under agreement to renew. The Board deems it, therefore, its duty to caution the member banks that it does not regard it in the interest of the country at this time that they invest in foreign Treasury bills of this character. DECEMBER 151916, FEDEBAL BESERVE BULLETIN, REVIEW OF THE MONTH. The outstanding feature of the month of November, as during October, "* b o t h i n respect to foreign trade and domestic banking conditions, has been the continued development of a large export balance in favor of the United States, and the discussion of means for the control of the compensating inward movement of gold. What the effect of this movement will be upon credit conditions, domestic prices, and other fundamental factors in the immediate economic situation, is proving a matter of primary interest; and closely allied to it is the question in what form the United States should accept payment for the goods it continues to send to foreign countries. This whole question constituted, among other topics of interest, a basis of discussion at the meeting of the Federal Advisory Council which closed its regular quarterly session at Washington on November 21, and which devoted its attention to a survey of business conditions throughout the country, to reserve conditions in the several districts, and, in this connection, to a consideration of the situation produced by the large and continued imports of gold. It was agreed that the first and most obvious step toward gold control to be taken in the near future, should be that of requesting Congress at its approaching session to amend the Federal Reserve Act so as to provide that the final steps specified in the Act be taken early in the year 1917 instead of in November of that year as now provided, so that balances with reserve agents should cease to he counted as reserve after February or March, 1917. This change would reduce materially the present excess reserves, and the so-called "reserves77 now kept by country banks with correspondent banks would henceforth be considered properly as bank balances only. This is a change which, under the law must be made not later than November 16, 1917. In the opinion of the Federal Advisory Council and of the Federal Reserve, Board it could be effected now or in 663 the near future without inconvenience and to the real benefit of the country. Both bodies agreed that it would be highly desirable to make this change at a time when it would cause no shock, and when the increase of real reserves with the Federal Reserve Banks would be effective in strengthening the control of the country's gold supply, and would at the same time minimize any apprehensions that might be felt because of its increasing volume. Members of the Board and of the Council expressed the view that there are no dangers necessarily inherent in further importations of gold in settlement of our heavy trade balances, provided proper methods be employed to control the gold and to prevent undue expansion. The consensus of opinion was that a general adherence to a policy of prudence and conservatism is desirable at this time. While all members of the Council reported excellent business conditions in crS. e r ° f R°"IiqUid t h e i r districts, statements were made that here and there some indications of increasing demand for credit facilities are to be noted, as well as a tendency on the part of some banks toward overinvestment of funds. Such overinvestment is apparently manifesting itself most decidedly in connection with foreign obligations of various kinds. There appears to be a danger that such unsecured foreign debts may be too largely assumed by American banks to the detriment of their liquid condition, and that should such overinvestment be too long continued it would tend to place the banking and credit system of the United States in a position analogous to that of sundry foreign countries. Special danger would seem to lie in the absorption of securities which appear to be of a self-liquidating nature, but which actually are not so. In this connection the Advisory Council announced itself as in entire accord with the views expressed by the Board prior to this meeting, suggesting caution and moderation in the use of those credits which, being open for a long period of renewals; lose their character 664 FEDEEAL RESERVE BULLETIN. as essentially self-liquidating transactions of short maturity. Total gold imports into the United States for the four weeks between OcImportation of gold. tober 20 and November 17 were 2,601,000, while total gold exports for the same period were $16,329,000. Net gold imports for the four weeks were $66,272,000, while net gold imports since January 1, 1916, were $386,004,000, compared with $359,292,000 for the corresponding period in 1915. Between October 20 and November 24 the Federal Reserve Banks increased their gold reserves from $384,284,000 to $459,935,000, while the amounts of gold held by the Federal Reserve Agents against Federal Reserve notes increased from $215,329,000 to $241,566,000, so that the aggregate gold holdings of the Federal Reserve System show an increase from $599,613,000 on October 20 to $701,501,000 on November 24, 1916. While the outstanding obligations of the national banks of the country Reserve situation. are steadily increasing, reserves (by percentages.) are either declining or are approximately steady at a point not far from that existing in the recent past. The latest complete figures are those furnished by the Comptroller of the Currency for September 12, 1916, and are as follows: Percentages held on— June 30, 1916. Banks in Central Reserve cities Banks in reserve cities Country banks : All national banks 21.32 23.80 25.75 23.86 Sept. 12, 1916. 20.39 24.80 24.29 Since the date of the Comptroller's last report actual changes in the reserve situation can be noted only as shown by the weekly reports of certain clearing houses. According to reports of the New York Clearing House, the reserve percentage of the 60 members of that institution, as compared with net demand de-' posits, which was, on September 16, 20.5, had DECEMBER l, 1916. declined on October 14 to 20.1 and on November 18 stood at 20.6. This included the returns from 31 banks which are members of the Federal Reserve system and 29 nonmembers. Very similar changes are shown by reports of the New York State banking department for State banks and trust companies in Greater New York. In Philadelphia there was between September 18 and November 20 a distinct falling off of the reserves of trust companies, while national banks little more than held their own. At the end of October both trust companies and national banks in Philadelphia showed a heavy reduction in reserves. In Boston reserves on November 18 were about $300,000 lower than on September 1.6. Total discount operations of the Federal Reserve Banks during October Discounts at reserve were $11,862,900, which is 18.7 banks. per cent of the total investments made by the banks during the month. Of the total paper discounted, $2,284,900 were advances to member banks upon their own notes, $2,921,000 commodity—chiefly cotton—paper and $383,200 trade acceptances (two-name paper). These three classes of paper, totaling 47 per. cent of the total discounts for the month, were discounted at special rates, while about 53 per cent of the paper was discounted at the regular rates. Reports from all quarters show a continuance of active business conditions accompanied by high prices and full employment of labor, as is shown by reports of Federal Reserve agents published elsewhere in this issue. Marked features of the conditions now prevailing throughout the country are the continuous advance of prices accompanied by steadily higher wages and larger business operations, scarcity of labor in nearly all industries^ and general car shortage. Increasing service is being rendered by the gold settlement fund, which Gold settlement during the past five weeks has operations. settled obligations amounting to well over $1,000,000,000. Thechange in ownership of gold resulting from settling operations FEDERAL EESEEVE BULLETIK. DECEMBER 1,1916. was $67,604,000, or 6.32 per cent of the total settlement. An interesting aspect of the work of the gold settlement fund is seen in the tendency to equalize the supply of gold throughout the country, drawing it away from the financial centers where it has accumulated. This distribution of gold followed and partly resulted from the payment of the final installment of reserves into the Federal Reserve Banks by their members on November 16, to which reference has elsewhere been made. Development of Dollar Exchange. During the past month there has been a preliminary development of the plan for furnishing dollar exchange provided by the amendment to the Federal Reserve Act passed on September 7. The act in question contains the following provision intended to facilitate the development of the business referred to: Any member bank may accept drafts or bills of exchange drawn7 upon it having not more than three months sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Federal Reserve Board by banks or bankers in foreign countries or dependencies or insular possessions of the United States for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries, dependencies, or insular possessions. Such drafts or bills may be acquired by Federal Reserve Banks in such amounts and subject to such regulations, restrictions, and limitations as may be prescribed by the Federal Reserve Board: Provided, however, That no member bank shall accept such drafts or bills of exchange referred to in this paragraph for any one bank to an amount exceeding in the aggregate ten per centum of the paid-up and unimpaired capital and surplus of the accepting bank unless the draft or bill of exchange is accompanied by documents conveying or securing title or by some other adequate security: Provided further, That no member bank shall accept such drafts or bills in an amount exceeding at any time the aggregate of one-half of its paid-up and unimpaired capital and surplus. 69948°—16 2 665 Applications have come to the Board from various sources for power to make acceptances of this class. Each such case has been considered on its merits, and in light of the intent of Congress as indicated in the provision in question where it is specified that the purpose in view in making such acceptances is that of "furnishing dollar exchange as required by the usages of trade.7' The following letter states the action taken by the board in this class of cases: The Board is in receipt of your letter of October 31 making application for the privilege of accepting bank or banker's drafts to run not longer than 90 days and drawn upon you by banks or bankers in the following countries: Chile, Brazil, Venezuela, Argentina, and Bolivia. You are hereby advised that, reserving the right7 to modify or revoke its approval on 90 days notice, the Board has decided to permit member banks to accept for drafts drawn upon them by banks or bankers in the following countries: Porto Rico, Santo Domingo, Costa Rica? Peru, Chile, Brazil, Venezuela, Argentina, and Bolivia. It is understood that such drafts are to be drawn for the purpose of furnishing dollar exchange as required by the usages and trade in the respective countries. The list thus given comprises all countries upon which the Board has thus far issued the authority to draw such drafts for the purpose of furnishing dollar exchange. On the other hand, certain applications for the making of drafts of this kind have been declined, the following letter illustrating the action taken in such instances: Under Regulation C, series of 1916, member banks, desiring to accept drafts drawn by banks or bankers in foreign countries for the purpose of furnishing dollar exchange, are required to make application to the Board setting forth the usages of trade in the countries in which the foreign banks or bankers are located, and the Board grants applications only when it determines "that the usages of trade in such countries * * * require the granting of the acceptance facilities applied for. The purpose of this Act and the regulation made pursuant thereto was to enable the 666 FEDEEAL RESERVE BULLETIN. American banks to provide dollar exchange in countries where the check is not the current means of remittance in payment of foreign debts, but where the three months' bankers' draft is generally used for that purpose. The Board is of the opinion that this custom does not exist in England or in France. If anyone in either of these countries desires to make remittance to the United States in pa}7ment of a debt or obligation, it is not customary, according to the information of the Board, to send a three months7 draft, and there should be no difficulty in securing in London or Paris cable transfers or checks on the United States. The Board is informed that the bankers' custom of selling three months' drafts in preference to checks originated in countries where the mail connections were irregular and the foreignexchange market was a limited one, and where it would have been difficult for the drawing banker to be certain that he could find a cover against the checks drawn by him in time to forward it by the same mail, whereas, in drawing a three months' draft, he would feel assured of being able to forward remittances before his obligation fell due. Such conditions do not exist in relations between England and France and the United States, and after consideration of all the circumstances the Board does not feel justified in granting your application. Question has been raised by [some Federal Reserve Banks as to their power to purchase acceptances drawn for the purpose of furnishing dollar exchange in this way. On that point the following ruling indicates the Board's position: Regulation B, series of 1916, section IV, authorizes the purchase of acceptances drawn "by a bank or banker in a foreign country or dependency or insular possession of the United States for the purpose of furnishing dollar exchange" on '•' a bank or trust company or a firm, person, company, or corporation engaged in the business of granting bankers' acceptance credits." The Board intended by this regulation to authorize the purchase in the open market of acceptances of member or nonmember banks or bankers drawn for the purpose of furnishing dollar exchange, provided the drawer is a bank or banker located in a foreign country or dependency or insular possession of the United States whose usages of trade have been de- DECEMBER l, 1916. termined by the Board to require the drawing of bills of this character. The Board has already ruled that banks or bankers in Buenos Aires may draw such bills, so that there would seem to be no objection to purchasing the acceptance in question. The time has so far been too short to ascertain what the development of the acceptance business thus indicated will be. Purchases of paper growing out of such operations at Federal Reserve Banks have naturally been small in the aggregate, but some of the banks have now. considerable individual holdings. Refunding of Government Bonds for 1917. Numerous inquiries have reached the Federal Reserve Board with respect to the policy to be pursued during the year 1917 in dealing with the conversion of Government 2 per cent bonds into 3 per cent securities, and the prescribed purchase of 2 per cent bonds by Federal Reserve Banks. The accompanying documents and letters are intended to furnish a complete statement of the status of the conversion question at the present time. A letter received from Assistant Secretary of the Treasury Malburn addressed to the Governor of the Federal Reserve Board on October 28, states the position of the Treasury Department as follows: The Secretary directs me to advise you that during the year beginning January 1, 1917, he will permit Federal Reserve Banks to submit $30,000,000 in United States 2 per cent bonds for conversion into 3 per cent conversion bonds and one-year Treasury notes in the proportion of half each. The Board may allot the total for the year to the banks and conversion of any portion of each bank's allotment will be permitted at any- period date during the year— the period dates as heretofore being January 1, April 1, July 1, and October 1. If, on October 1, 1917, any bank has not taken its full allotment, the Board may reallot the balance to other applying banks. Until further notice the policy will be continued of permitting no exchanges of one year Treasury notes for 3 per cent conversion bonds. DECEMBER 1,1916. FEDEEAL RESERVE BULLETIN, As heretofore required, applications for conversions must be submitted to the department at least 10 days before the conversion date and the 2 per cent bonds to be converted must be delivered not later than the day before the conversion date. The department will then be able to deliver the definitive bonds and notes within approximately 10 days after the date of conversion, and the issue of temporary or interim certificates will be obviated. Suspense accounts will be continued as a matter of convenience, but operations thereunder will be restricted to those connected with 2 per cent bonds available for conversion. Regarding the form and denomination of the one-year Treasury notes, experience of the past year has demonstrated that the coupon form in the $1,000 and the $10,000 denominations meets the requirements of the Federal Reserve Banks and, so far as it is possible to judge, the requirements of others. Accordingly, until the situation in this respect is changed, future issues of one-year Treasury notes will be made in coupon form and in the $1,000 and $10,000 denominations, and no provision will be made for issuing such notes in registered form. It further appears that practically without exception applications for conversion bonds have* been for those in coupon form and in the $100 and $1,000 denominations. Accordingly, only these two denominations in the coupon form will in future be available. In the registered form provision will be made for the issue of conversion bonds in $100, $1,000, $5,000, and $10,000 denominations. A communication sent to all Federal Reserve Agents under date of November 3, to the effect that the policy of the Board is based upon the letter from the Assistant Secretary of the Treasury, already quoted, is as follows: I inclose herewith copy of letter received from the Treasury Department from which you mil see that the Secretary of the Treasury will permit Federal Reserve Banks during the year 1917 to submit offerings up to 30 million dollars in United States 2 per cent bonds, for conversion half into 3 per cent bonds and half into one-year Treasury notes. The Board will approve the application of any bank for the conversion of all, or any portion of its full annual allotment on January 1, 1917, or at the beginning of any other quarterly period, to wit, April 1, July 1, and October 1. In exercising its discretion to 667 determine how much of the 25 million dollars in bonds it will require all 12 Federal Reserve Banks to purchase from member banks through the Treasurer during 1917, and in order to enable the Federal Reserve Banks, if they so desire, to accumulate more bonds than they now hold for conversion on January 1, the Board will consider the amount of bonds purchased by all Federal Reserve Banks during November and December, 1916. However, each Federal Reserve Bank must purchase its pro rata share, as determined by the Board, of the total amount of bonds allotted, deducting only the amount of bonds purchased by it after January 1, 1917. Meeting of Federal Advisory Council.1 The Federal Advisory Council, which held its regular quarterly session in Washington on November 20-21, devoted its attention to a survey of business conditions throughout the country, to reserve conditions in the several districts, and, in this connection, to a consideration of the situation produced by the large and continuing imports of gold. The Council considered means for making effective in a greater degree the transfer of vault money by member banks to their respective Federal Reserve Banks—a process rendered possible by the recent amendment to the Federal Reserve Act. It was agreed that this is a desirable development and that it should be encouraged. The Council announced itself as in entire accord with the views already expressed by the Board, suggesting caution and moderation in the use of those credits which, being open for a long period of renewals, lose their character as essentially self-liquidating transactions of short maturity. The Council renewed its recommendation that the National Bank Act be amended so as to enable national banks in reserve and central reserve cities to establish branches within those cities. i Statement issued to the press for use on Nov. 22. 668 FEDERAL RESERVE BULLETIN. Another recommendation made by the Council was to ask Congress at its approaching session to amend the.Federal Reserve Act so as to provide that the final steps specified in the Act be taken early in the year 1917, instead of in November of that year as now provided, so that balances with reserve agents should cease to be counted as reserve after February or March, 1917. This change would reduce materially the present excess reserves, and the so-called "reserves" now kept by country banks with correspondent banks would henceforth be considered properly as bank balances only. This is a change which under the law must be made not later than November 16, 1917. In the opinion of the Federal Advisory Council, and of the Federal Reserve Board, it could be effected now or in the near future without inconvenience and to the real benefit of the country. Both bodies agreed that it would be highly desirable to make this change at a time when we are certain that it can be done without any shock or jar, and when the increase of real reserves with the Federal Reserve Banks would be so effective in strengthening the control of the country;s gold supply, and would at the same time minimize any apprehensions that might be felt because of its increasing volume. While all members of the Council reported excellent business conditions in their districts, statements were made that here and there some indications of increasing demand for credit facilities are to be noted, as well as a tendency on the part of some banks toward overinvestment of funds. Members of the Board and of the Council expressed the view that there are no dangers that need come from further importations of gold in settlement of our heavy trade balances, provided proper methods are employed to control the gold and to prevent undue expansion. The consensus of opinion was that a general adherence to a policy of prudence and conservatism would be the surest means of maintaining our present prosperous conditions. DECEMBER 1,1916, Method of Reporting Reserves. Under date of November 2 the Governor of the Federal Reserve Board received a letter from the Comptroller of the Currency stating that it is his "intention to permit the banks, when they make statements under the next call, to show, on the face of their reports in their published statements, lawful reserve in the vault and with the Federal Reserve Bank as one item. Of course, in the schedule on the back of the report they will be required to show how much of their reserve is in their vault and how much in the Federal Reserve Bank." It will be remembered that Congress, in the Act approved September 7, 1916, authorized the member banks to carry vault reserves in Federal Reserve Banks if they desired, amending the Act to read as follows: Upon the affirmative vote of not less than five of its members the Federal Reserve Board shall have power, from time to time, by general ruling, covering all districts alike, to permit member banks to carry in the Federal Reserve Banks of their respective districts any portion of their reserves now required by section 19 of this Act to be held in their own vaults. Shortly after the adoption of this provision, the Federal Reserve Board issued a general authority to member banks to make the transfer in question, saying: The recent amendments to the Federal Reserve Act provide in part that the Federal Reserve Board shall have power "by general ruling covering all districts alike, to permit member banks to carry in the Federal Reserve Banks of their respective districts any portion of their reserves now required by section 19 of this Act to be held in their own vaults." In pursuance of the authority vested in it by this section the Board hereby rules that, effective September 18, 1916, and until further notice, any member bank so desiring shall be permitted to carry in the Federal Reserve Bank of its district any portion of its reserves now required by law to be held in its own vaults. Please inform the officers of your bank that they may advise the member banks of your district. DECEMBER 1. 1916. FEDEEAL EESEEVE BULLETIN. Sundry considerable transfers of v ault reserv es have occurred, particularly on the part of the larger city banks. Country banks have, however, hesitated to make the transfer. They are to-day obliged to report their vault cash as a separate item in published statements. The action of the Comptroller, as now announced, is intended to alter the mode of publishing statements of member banks. Hon. Paul M. Warburg, vice governor of the Board, in an address at Kansas City before the American Bankers' Association, referred to the question of reserve transfers as follows: Financial history has shown .that each crisis develops larger demands than its predecessor, and with our constantly growing pyramid of deposits and loans, and with the gigantic scale upon which financial transactions are now conducted, it is our duty to be prepared for ever larger demands. The fact that we are strongly forearmed, far beyond a limit expected to be actually reached, will be the only means of restraining these demands to safe and reasonable bounds. We ought to be able, therefore, to lose $300,000,000 to $500,000,000 and still have $200,000,000 or $300,000,000 of free gold to serve as a basis for emergency operations. I can not urge you too strongly, therefore, to cooperate to the utmost of your abilities in keeping your balances with the Federal Reserve Banks high and your vault money down to the minimum that your own till requirements will safely and conveniently permit. It is obvious that in strengthening the Federal Reserve Banks you are strengthening yourselves. If a country bank with $25,000 in capital and $150,000 in deposits keeps in its vaults $5,000 of $10,000 of gold, does it expect that, in case of a national emergency, it could protect itself with that amount of legal tender in the event the Federal Reserve Banks stopped paying in gold or stopped rediscounting ? If a country bank's depositors want cash they will be perfectly satisfied to take Federal Reserve notes. But the power to furnish these notes, or credit, is limited by the amount of gold held by the Federal Reserve Banks. While the $5,000 gold in vault of the member bank will not, therefore, protect it, the specie and legal tender notes held by all of them collectively (about $770,000,000) can be made to form the strongest possible bulwark of protection for all if deposited in the Federal Reserve Banks. 669 The following circular, covering the carrying of vault reserves in Federal Reserve Banks, was issued on November 20 by the Federal Reserve Bank of New York: Your attention is invited to the amendment of the Federal Reserve Act approved September 7, 1916, which authorizes the Federal Reserve Board to permit member banks to carry in the Federal Reserve Banks of their respective districts* any portion of their reserves now required by section 19 of the Act to be held in their own vaults. We take pleasure in advising you that the Federal Reserve Board, exercising the authority vested in it by this amendment, has ruled that until further notice any member bank so desiring shall be permitted to carry in the Federal Reserve Bank.of its district any portion of its reserves now required by law to be held in in its own vaults. The permission thus given offers an opportunity to all member banks both to be relieved of the responsibility for unused funds held in individual vaults, and to strengthen their reserves with their Federal Reserve Banks. It should also tend to encourage the concentrating of the reserves of each district with the Federal Reserve Bank, where they will serve as a proper basis for elasticity when demands for currency are made and will, of course, be immediately available in case of emergency. A number of our member banks are already availing themselves of this option, and it is hoped that others will also do so, by depositing with us from time to time such portion of their vault reserves as are not needed in the ordinary conduct of their business.. Growing Use of Acceptances. In Fall River and New Bedford, Mass., and Providence, R. I., use is now being made of trade and domestic acceptances to finance the cotton requirements of local mills. This, possibly, grows out of the demand for credit which reports indicate has increased during the last half of this month. The trade acceptances have been created by the cotton brokers, who have arranged to do so with the mill supplied. Local banks are said to have been able to market these acceptances 670 FEDERAL RESERVE BULLETIN. without their indorsement at rates about onefourth of 1 per cent below the current rates for commercial paper. Arrangements are also being made to finance cotton mills with domestic acceptances against their purchases, these being sold to the banks in the larger cities in lieu of rediscounts. Some banks in larger cities which have taken nearly all the acceptances which they are permitted to hold, the Board is informed, have arranged to turn over a portion of their own business to some of their correspondent banks in other cities. Liability Under Acceptances. The Comptroller of the Currency's September 12 condition report for national banks just issued shows that the aggregate liabilities of all national banks on acceptances in the foreign trade were $76,608,000, as against $69,303,000 on June 30, 1916. In addition, acceptance liabilities are reported by the Comptroller for other member banks as follows: In central reserve cities In other reserve cities Outside of reserve cities $2,268,000 2,358,000 58,000 Bankers Trust Company Guaranty Trust Company Columbia Trust Company Central Trust Company Equitable Trust Company $8, 957, 600 32, 436, 400 1,351, 700 1,450,000 7,021, 600 DECEMBER 1,1918, Classification of memberbanks for electing directors. Federal Reserve Bank. Groups. Num- Maximum capber of ital. banks. Group 1. Group 2. Group 3. New York Group 1. Group 2. Group 3. Philadelphia.. Group 1. Group 2. Group 3. Cleveland Group 1. Group 2. .Group 3. Richmond Group 1. Group 2. Group 3. Atlanta Group 1. Group 2. Group 3. Chicago Group 1. Group 2. Group 3. St. Louis Group 1. Group 2. Group 3. Minneapolis... Group 1. Group 2. Group 3. Kansas City... Group 1. Group 2. Group 3. Group 1. Dallas Group 2. Group 3. San Francisco. Group 1. Group 2. Group 3. Boston 134 134 134 210 208 209 210 211 211 235 263 256 172 170 178 139 136 114 349 325 323 149 157 163 301 222 232 300 323 314 210 215 196 175 172 172 Over $250,000... $250,000 $120,000.. Over $200,000... $200,000 $75,000. Over $200,000... $200,000 i $75,000.. Over $150,000... $150,000 $65,000 $4,000,000 $140,000 $60,500 Over $130,000... $130,000 $60,000 Over $120,000... $120,000 $59,000 Over $100,000... $100,000 $50,000 Over $60,000.... $60,000 $30,000 $3,600,000 $75,000 $35,000 Over $120,000... $120,000 $60,000 Over $120,000... $120,000 $53,499 Minimum capital. $250,000. $120,000. Less than $120,000. $200,000. $75,000. Less than $75,000. $200,000. $75,000. Less than $75,000, $150,000. $65,000. Less than $65,009. $140,000. $60,500. $15,230. $130,000. $60,000. Less than $60,000. $120,000. $59,000. Less than $59,000. $100,000. $50,000. Less than $50,000. $60,000. $30,000. Less than $30,000. $77,000. $36,000. $25,000. $120,000. $60,000. Less than $60,000. $120,000. $53,499. Less than $53,499, Operation of the Clearing Plan. The following table shows briefly the clearing operations of the Federal Reserve system for . the monthly period ending November 15, 1916; Total 4,684,000 with comparative figures for each of the three The New York State Banking Department preceding months: reports, as of September 20, acceptance lia- Operations of the* Federal Reserve interdistrict clearing system, Oct. 16 to Nov. 15. 1916. bilities of the following trust companies, nonI members of the Federal Reserve System:Nonmem- Total 51,217,300 Classification of Member Banks. There is printed below the classification of member banks of the Federal Reserve System into three groups by the several Federal Reserve Banks for the election of directors. The polls for these elections close early in December. Bank. Boston New York Philadelphia.. Cleveland Richmond.... Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco.. Total, Oct, 16 to Nov. 15 Sept. 16 to Oct. 15. Aug. 16 to Sept. 15. July 15 to Aug. 15. Average number of items handled daily. Average amount of daily clearing. Member banks in the district. ber ba"nks from which checks are collected at par. • 36,358 40,036 29,567 15,102 16,784 12,825 2 21,065 9,388 14,500 12,962 13,638 5,264 $11,816,884 24,164,709 15,348,837 8,128,766 7,850,981 4,442,127 12; 659,964 6,904,131 8,208,962 7,081,905 7,022,967 1,430,991 402 626 632 754 519 391 993 469 757 938 621 521 1242 313 292 490 303 451 1,286 851 1,100 1,414 229 1,088 227,489 115,061,224 204,891 97,666,107 177,397 I 78,559,704 133,113 59,301,696 7,623 7,618 7,618 7,624 8,059 7,459 7,449 7,032 1 All State banks in district. 2 Does not include Government checks averaging 2,418. Fiscal- Operations of Federal Reserve Banks. Transactions carried on by Federal Reserve Banks on behalf of the Government are proving of considerable volume, and have, during the past period, resulted in transfers of further funds from sub treasuries to several of the banks. In the following table is furnished a detailed statement of the balance of each Federal Reserve Bank at the end of the summer quarter (Sept. 30) and of the transfers to and receipts by each Federal Reserve Bank, as well as of checks paid and transfers by each, with the resulting balance at the end of October: Transactions of Federal Reserve Banks during October, 1916. Debits. Bank. Boston New York Philadelphia Cleveland Richmond Atlanta New Orleans, branch Chicago St. Louis Minneapolis Kansas City.. Dallas San Francisco Total Balance Sept. 30.1916. 032,384.03 500,610.79 018,024.91 241,487.51 996,403.57 153,60.7.54 720,364.64 067,045.14 795,098.81 096,820.92 982,437.45 204,974.38 823,280.06 Transfers. $7,000,000.00 4,000,000.00 Receipts. $1,594,566.48 16,695,453.83 2,672,281.41 728,564.12 2,648,488.93 161,929.47 1,573,396.00 3,978,382.12 1,187,473.95 559,066.36 2,797,885.37 252,050.98 1,955,100.50 138,632,539.75 111,000,000.00 136,804,639.52 Bank. Checks paid. Total Transfers. Balance Oct. 31,1916. $3,020,295.34 1 $1,606,^655.17 25,767,779.57 13,428,285.05 2,636,167.53 $2,000,000.00 14,054,138.79 488,178.87 1,000,000.00 11,481,872.76 520,256.68 12,076,000.00 14,048,635.82 505,514.49 1810,022.52 480,618.86 1,000,000.00 12,813,141.78 8,784,559,81 12,260,867.45 235,791.88 *2*666,666.*o6 12,746,780.88 715,367.89 1940,519.39 2,990,355.22 1789,967.60 615,119.04 11,841,906.32 956,245.53 1,000,000.00 12,822,135.03 147,716,250.71 19,076,000.00 Transfers to and from Federal Reserve Banks during of October, 1916. Received by Federal Reserve Bank at— New York Do Do Do Do Chicago. Do From— Assistant Treasurer, New Y o r k . . . Federal Reserve Bank, Cleveland.. Federal Reserve Bank, Richmond. Branch Federal Reserve Bank, New Orleans. Federal Reserve Bank, San Francisco, « Federal Reserve Bank, Philadelphia. Federal Reserve Bank, St. Louis.. Paid by Federal Reserve'Bank at— 129,644,928.56 1 Includes transfer of $40,000 in national-bank notes to Treasurer of United States for redemption and $36,000 transferred to depositary banks. month Amount. $2,000,000 1,000,000 2,000,000 1,000,000 1,000,000 2,000,000 2,000,000 11,000,000 Total.... Amount. To- Federal Reserve Bank, Chicago... Federal Reserve Bank, New York. Treasurer of United States Federal Reserve Bank, New York. National Exchange Bank, Baltimore, Md. New Orleans Branch.. Federal Reserve Bank, New York. Federal Reserve Bank, Chicago... St. Louis Federal Reserve Bank, New York. San Francisco. Philadelphia Cleveland.-... Richmond Do. Do $2,000,000 1,000,000 40,000 2,000,000 36,000 1,000,000 2,000,000 1,000,000 9,076,000 Total Fiduciary Powers. 'The applications of the following banks for permission to act under section 11 (k) of the Federal Keserve Act have been approved since the issue of the November Bulletin: DISTRICT No. Credits. Boston New York Philadelphia Cleveland Richmond Atlanta New Orleans, branch Chicago St. Louis Minneapolis, Kansas City • Dallas ." San Francisco 671 FEBEKAL BESEBVE BULLETIN. DECEMBER 1,1918. 1. Trustee, executor, and registrar of stocks and bonds: Portland National Bank, Portland, Me. Trustee: Cha'pin. National Bank, Springfield, Mass. DISTRICT NO. 4. Trustee and registrar of stocks and bonds: Merchants National Bank, Hillsboro, Ohio. DISTRICT NO. 7. Trustee, executor, administrator, and registrar of stocks and bonds: Whiteland National Bank, Whiteland, Ind. DISTRICT N O . 12. The following condensed summary shows the Trustee, executor, administrator, and registrar of stocks details of the shifting of funds necessary to and bonds: meet the Government's obligations: First National Bank, Walla Walla, Wash. 672 FEDERAL RESERVE BULLETIN. New National Bank Charters. The Comptroller of the Currency reports the following increases and reductions in the number of national banks and the capital of national banks during the period, from October 21 to November 24? 1916, inclusive: Banks. New charters issued to With capital of Increase of capital approved for With new capita] of* 11 $480, 000 7 % 040, 000 Aggregate number of new charters and banks increasing capital. 18 With aggregate of new capital authorized 2, 500, 000 Number of banks liquidating (other than those consolidating with other national banks) .'. * Capital of same banks. Number of banks reducing capital 2 Reduction of capital 415,000 DECEMBER 1, 1916. defaults, as reported by R. G. Dun & Co., numbering only 1,240, while the liabilities aggregated but 110,775,654. This compares with 1,599 suspensions in the same month last year, 1,686 in 1914, and 1,434 in 1913, while the amounts involved were, respectively, $25,522,380, $29,245,466, and 120,245,466. While October failures were less numerous in all years prior to 1913, this is only to be expected when the marked expansion in the number of business concerns during the past few years is taken into consideration. One feature that clearly reflects the improvement in conditions that has been taking place for many months past is the fact that the amount of October liabilities is much smaller than in any year back to 1916. Detailed figures by Federal Reserve districts follow: 100,000 Number of failures. District. Total number of banks going into liquidation or reducing capital (other than those consolidating with other national banks). Aggregate capital reduction 9 515, 000 The foregoing statement shows the aggregate of increased capital for the period of the banks embraced in statement was 2, 500, 000 Against this there was a reduction of capital owing to liquidations (other than for consolidation with other national banks) and reductions of capital of 515, 000 Net increase 1,985,000 In addition to the changes noted above, one bank, with capita] of $80,000, was placed in the hands of a receiver during this period. No. 1 No. 2 . . . . . No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 No. 10 No 11 No. 12 .. ... ........? Total, 1916 1915 1914 1913 1912 1911 1910 • .. .. 110 175 40 77 100 119 169 . 71 45 61 89 184 1,240 1,599 1,686 1,434 1,150 1,169 1,122 Liabilities. $825,361 2,358,642 410,820 1,030,850 1,568,475 530,163 1,438,967 332,163 273,594 263,126 599,966 1,143,527 10,775,654 25,522,380 29,702,178 20,245,466 15,762,337 19,270,106 18,977,696 Reserves of National Banks. The following comparative computation of reserves of. national banks, based upon official figures published by the Comptroller of the CurCommercial Failures During Octoberrency as of-June 30 and September 12, 1916. is Failure returns for the month of October intended to show actual reserve conditions made a more favorable exhibit than any cor- throughout the country in their relations to the responding period for several years, business Federal Reserve System: Central reserve cities. Country banks. Reserve cities. Reserves. June 30. Sept. 12. June 30. $350,294 155,794 $326,127 159,583 $173,853 150,276 $189,563 159,550 194,500 166,544 23,577 30,013 Excess With Federal Reserve Bank: Held . . Required Excess Either in vault or with Federal Reserve Bank: Required Sept. 12. 203,258 181,760 216,180 186,180 123,441 125,230 150.151 132,958 21,498 30,000 -1,789 17,193 129,828 Excess o. 129,828 In vault: Held Required Excess With Federal Reserve Bank: Held Required Excess June 30. Sept. 12. June 30. $233/856 180,064 $252,433 194.222 $758,003 486,134 $768,123 513,355 53, 792 58? 211 271,869 254,768 149, 404 143,826 164,697 155,136 476,103 450,816 531,028 474,274 5 578 9 561 25,287 56,754 129,828 132,985 129,828 132,985 Either in vault or with Federal Reserve Bank: Required 132,985 132,985 Excess reserve 100,184 100,184 a 106,366 106,366 With approved agents: Held & Required ' 108,291 108,291 116,806 116,806 208,475 208,475 223,172 223,172 533,936 1,442,581 466,164 1,275,253 1,522,323 1,343,786 178,537 Excess Excess 553,552 467,382 542,307 478,748 397,478 375,690 446,080 398,874 Total reserve: Held Required 491,551 432,181 Excess 86,170 63,559 21,788 47,206 Excess 59,370 67,772 167,328 a Not included in total excess reserve shown below. & Portion of the total amounts held which under the Federal Reserve Act is counted as member banks' reserve. 69948—16 3 Sept. 12. reserve Total reserve: Held Required Total. Reserves. In vault: Held Required With approved agents: Heldb Required. 673 FEDERAL RESERVE BULLETIN. DECEMBER l, 1916. 674 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. ber 16, by member banks was in large part responsible for the heavy volume of transacDuring the past five weeks the Federal Re- tions and probably also for the heavy moveserve Banks have settled obligations through ment of gold from the Federal Reserve Bank the Gold Settlement Fund amounting to of New York. $1,070,317,000, an amount somewhat larger clearings and transfers. Federal Reserve Bank, than the total obligations settled during the Amountfromof Oct. 20, 1916, to Nov. 28, 1916, inclusive. first eight months of the fund's operations. [In thousands of dollars.] The change in ownership of gold incidental to Total Transthe settlement was .$67,604,000, or 6.32 per clearings. Balances. fers. cent of the obligations settled. The tide of of— domestic exchange set heavily against the Settlement 13,955 194,653 6,156 Oct. 26,1916 17,631 199,060 450 Nov. 2,1916 Federal Reserve Bank of New York, which 22,721 193,691 3,600 Nov.9,1916 11,755 203,148 3,062 Nov. 16,1916 parted with gold amounting to $67,604,000, 259,447 ' 33,775 7,050 Nov.23,1916 which was divided among the other eleven 99,837 20,318 1,049,999 Total 3,328,769 322,614 106,050 banks. Previously reported 422,451 4,478,768 126,368 Total since Jan. 1,1916 The heaviest settlement thus far made was Total transfers, 1916 126,368 Total for 1915, including transfers . 1,052,649 that of November 23, with total obligations Total clearings and transfers, settled amounting to $259,447,000. The payMay 20,1915, to Nov. 23,1916. 5,657,785 ment of the reserve installment, due NovemGOLD SETTLEMENT FUND. Changes in ownership of gold. [In thousands of dollars.] To Oct. 19,1916. Federal Reserve Bank of- Balance to credit Oct. 19,1916, plus Decrease. j Increase. net deposits of gold since that date. 17,600 I Boston New York Philadelphia.. Cleveland Richmond Atlanta t Chicago St. Louis Minneapolis Kansas C i t y . . . Dallas. San Francisco. 223,816 48,187 11,733 24,021 21,175 7,206 10,439 6,152 25,260 35,406 31,049 Total N From Oct. 20,1916, to Nov. 23,1916, inclusive.* z | 231,022 231,022 i 13,830 75,184 8,287 10,203 13,361 635 28,164 2,939 2,652 6,927. 9,208. 4,589 175, Balance Nov. 23. 1916. ' 18,080 • 7,580 15,537 19,898 23,169 5,767 30,230 4,778 Decrease. Increase. 67,604 67,604 Increase. 4,250 7,250 9, .695 5,132 2,066 1,839 6,336 12,537 5,299 3,392 19,464.5 14,507.5 7,981 175,980 Total changes from May 20, 1915, to Nov. 23, 1916.2 67,604 21,850 291,420 5,140 296,560 1 Changes in ownership of gold during period Oct. 20,1916, to Nov. 23,1916, equal 6.32 per cent of obligations settled. Total changes in ownership of gold equal 5.24 per cent of total obligations settled. 2 ""65," 437 21,428 33,829 26,307 12,278 12,488 37,797 40,705 34,441 296,560 675 FEDERAL EESEEVE BULLETIN". DECEMBER 1, 1916. Gold settlement fund—Summary of transactions from Oct. 20,1916, to Nov. 28,1916, inclusive. [In thousands of dollars.] Federal Reserve Bank of- Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco l... Total . Federal Reserve Bank of— Boston . .......... New York Philadelphia........... Cleveland . ' • » . . . Richmond Atlanta Chicago .... St. Louis Minneapolis Kansas-City Dallas San Francisco Total 13,830 7,184 13,687 11,033 17,481 2,795 25,164 4,739 4,552 8 327.5 10,668.5 4,049 123,510 Balance last statement, Oct. 26, 1916. Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City . . Dallas San Francisco Total Balance last statement, Oct. 19, 1916. . 15,225 13,758 1,891 11,953 18,615 2,455 22,658 6,281 4,954 11,616.5 9,937.5 836 120,180 Balance last statement Nov. 2, 1916. 12,290 9 854 9,651 12,195 20,290 4,188 22,129 8,097 5,285 13,004.5 11,693.5 1,463 130,140 Transfers. Gold. Withdrawn. Net Debit. Credit. debits. Deposited. 1,100 500 4,000 1,000 560 240 1,056 1,100 3,880 550 6,156 Gold. Withdrawn. 6,156 Transfers. 10,000 2,935 13,904 513 20,478 47,498 23,371 13,493 14,253 7,446 26,751 17,972 5,249 12,249 6,761 3,539 17,543 33,594 31,131 13,835 16,808 9,229 26,472 19,588 6,180 13,637 8,017 3,026 17,631 199,060 199,060 20 250 500 2,000 200 2,760 12,720 450 Gold. 450 450 Transfers. Withdrawn. Deposited. 1,680 15,000 120 279 1,200 2,000 80 | 2,000 AQQ ... .... 15,200 3,600 4,252 15,578 Total debits. 2,891 23,192 47,273 23,037 11,639 10,863 9,580 24,487 17,006 4,784 12,295 5,902 3,633 22,721 193,691 1,600 3,600 Net credits. 7,760 342 2/555 1,783 1,616 931 1,388 1,256 17,631 Settlement of Nov. 9,1916. Net Debit. Credit. debits. i 13,955 Settlement of Nov. 2,1916. Total credits. 660" 4,970 194,653 Total ' debits. 200 Net credits. 845 14,850 37,645 2,074 19,908 850 16,094 16,344 2,134 7,334 25,792 " "i,494" 23,231 2,542 6,321 402 16,548 3,289 8; 553 325 2,033 Net Debit. Credit. debits. 600 600 400 10 480 i 194,653 946 Total credits. Deposited. 100 900 500 1,300 500 1,793 13,955 11,216 1,106 Total debits. 14,005 35,571 31,124 15,244 14,210 8,280 24,298 20,689 5,919 13,259 8,228 3,826 550 4,500 140 70 100 720 Settlement of Oct. 26,1916. Total Net credits. credits. Changes in ownerOct. 26, ship of gold. 1916, balance in fund ! after clearing. Decrease. Increase. 15,225 13,758 11,216 1,891 11,953 18,615 2,455 22,658 * " *2*566" 6,281 4,954 11,616.5 9,937.5 731 836 2,893 120,180 Nov. 2, 1916, balance in fund after clearing. 12,290 9,854 9,651 12,195 20,290 4,188 22,129 8,097 5,285 13,004.5 11,693.5 1,463 130,140 Nov. 9, 1916, balance in fund after clearing. 1 8,038 18,940 31,695 . . . . . . . . 1 10,076 29,135 6,098 14,189 15,899 4,260 16,455 13,375 2,512 1 19,582 6,689 . . . . . . . . | 797 26,535 2,048 1 23,777 17,876 870 8,967 7,476 2,692 7,377 13,060 765 ! 13,369.5 8,166 2,264 1 13.947. n 4,845 1,212 193,691 22,721 140,370 17,346 1,395 6,574 850 2,134 160 2,542 402 3,289 17,346 Changes in ownership of gold. Decrease. Increase. 2,935 13,904 529 713 18,081 7,760 342 2,555 2,233 1,616 931 1,388 1,256 18,081 Changes in ownership of gold. Decrease. Increase. 4,252 14,778 2,891 21,921 6,098 4,260 512 1,648 870 2.692 765 2,264 2,812 21,921 676 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. Gold settlement fund—Summary of transactions from Oct. 20, 1916, to Nov. 23, 1916, inclusive—Continued. [In thousands of dollars.] Gold. Balance last Federal Reserve Bank statement of— Nov. 9, 1916. Boston New York. Philadelphia Cleveland Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total . . 140,370 11,161 5,031 13,821 15,339 20,521 • 3,812 23,941 6,040 8,197 14,071.5 12,002.5 5,543 New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis MiTififtapolis Kansas City Dallas San Francisco . Withdrawn. 940" 800 1,100 660 18,338 40,021 33,200 13,236 16,159 10,033 24,616 18,180 6,878 14,325 6,517 1,645 203,148 203,148 300 1,927 2,762 5,300 3,062 3,062 nh 1,014 11,755 Transfers. Total debits. 500 5,550 2,612 19,722 73,033 32,395 16,833 15,791 8,769 30,728 28,455 6,530 14,842 8,688 3,661 7,050 7,050 33,775 259,447 38,000 ' 140 5,550 280 1,000 1 000 29,901 3 000 1,262 700 500 720 41,420 3,123 2,092 1,139 2,715 164 820 1,702 11,755 Settlement of Nov. 23,1916. Net Debit. Credit. debits. Deposited. Total Net credits. credits. 15,215 47,004 31,108 14,352 15,020 7,318 24,452 20,107 6,058 12,623 7,232 2,659 6,983 1,116 300 Gold. 4,920 139,480 3,062 Total debits. Net Total credits. credits. 25,641 43,132 34,911 22,192 20,259 11,384 34,017 27,193 8,021 19,735 11,913 1,049 259,447 • 1916, Changes in ownership of gold. balance in fund after clearing. Decrease. Increase. Nov. 16, Settlement of Nov. 16,1916. Net Debit. Credit. debits. 5,000 6,190 Balance last Federal Reserve Bank statement of Nov. 16, 1916. . . Deposited. 8,038 10,076 14,189 """2*460" 16,455 19,582 500 797 23,777 8,967 1,000 7,377 13,369.5 1,666 13,947.5 1,230 3,795 . .. Total. Withdrawn. Transfers. 5,919 2,516 5,359 4,468 2,615 3,289 1,491 4,893 3,225 33,775 11,161 5,031 13,821 15,339 20,521 3,812 23,941 6,040 8,197 14,071.5 12,002.5 5,543 139,480 Nov. 23, 1916, balance in fund after clearing. 18,080 - 7,580 15,537 19,898 23,169 5,767 30,230 4,778 8,988 19,464.5 14,507.5 7,981 175,980 10,045 1,116 1,927 715 3,123 2,092 1,139 3,015 164 820 1,702 1,748 13,803 13,803 Changes in ownership of gold. Decrease. Increase. 35,451 1,262 36,713 6,919 2,516 5,359 3,468 2,615 3,289 1,491 5,393 3,225 2,438 36,713 Federal Reserve Agents' Fund—Summary of transactions, Oct. 20, 1916, to Nov. 23, 1916, inclusive. [In thousands of dollars.] Week ending Oct. 26, Week ending Nov. 2, Week ending Nov. 9, Week ending Nov. 16, Week ending Nov. 23,1916. 1916. 1916. 1916. 1916. Oct. 19, Federal Reserve Agent 1916, at— DebalWith- Depos- Bal- With- Depos- Bal- With- Depos- Bal- With- Depos- Bal- With- pos- Balance. drawn. ited. ance. drawn. ited. ance. drawn. ited. ance. drawn. ited. ance. drawn. ited. ance. Philadelphia Richmond . Atlanta Chicago St. Louis Minneapolis Kansas City Dallas ancisco Total 3,700 10,000 12,550 2,950 , . . . 3,810 2,350 11,500 = 11,380 9,590 240 100 240 720 4,180 1,100 11,000 500 13,050 2,950 i, 666 4,810 2,350 11,500 11,380 560 9,910 67,830 580 3,880 71,130 ... 500 300 """566* 1,300 4,180 120 1,680 5,740 700 11,700 1,300 13,000 500 13,550 500 13,050 2,950 2,950 4,510 """266" 4,310 606" 3,550 600 2,950 11,500 400 11,900 10,880 10,880 480 11,050 660 10,570 300 4,960 76,930 300 2,460 72,290 320 940 8,700 1,100 14,600 660 14,210 2,950 5,310 ""766" 4,250 12,900 """"ioo* "'456" 11,430 10,900 150 5,160 81,790 390 3,850 85,250 2,460 7,900 500 13,500 13,550 2,950 "i,"666" 5,310 3,550 1,000 12,900 200 11,080 11,050 140 677 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Nov. 27, 1916. MaturiMaturi- Maturi- ties of ties of ties of I over 10 10 days 15 days j to 30 and less. and less.| days, inj elusive. Boston New York Philadelphia Cleveland Richmond Atlanta Atlanta (New Orleans branch) Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Maturities of over 15 to 30 days, inclusive. Maturities of over 30 to 60 days, inclusive. Trade acceptances. Maturi- Agricultural ties of and liveover 60 stock 30 Over 60 To 30 Over to 90 to 60 to 90 paper days, in- days, days, in- over inin90 clusive. days. clusive. clusive. days, clusive. Commodity Paper Member paper bought matur- in open collating eral within market. 90 days. 31 f 3| 31 3 4 3-J 4 3-5 ? 12 Rate for bills of exchange in open-market operations. Rate for trade acceptances bought in open market without member bank indorsement. 3 Rate for commodity paper maturing within 30 days, 3J per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4 | per cent; over 90 days, 5 per cent. NOTE.—Rate for bankers' acceptances, 2 to 4 per cent. 678 FEDEKAE RESERVE BULLETIN, DECEMBER 1,1916. INFORMAL RULINGS .OF THE BOARD. Below are reproduced letters sent out from time to time over the signatures of the officers or members of - the Federal Reserve Board which contain information believed to be of general interest to Federal Reserve Banks and member banks of the system: Dividends to Banks Transferred. Referring to your letter of October 23 in regard to liability for accrued dividends due to Oklahoma banks up to the time of transfer to district No. 10. A somewhat similar question arose in connection with the transfer of certain banks from the Philadelphia to the New York district, but in this case the Federal Reserve Banks concerned voluntarily entered into an agreement under which the New York bank assumed part of the expenses of organization and current expenses of the Philadelphia bank, and the Philadelphia bank allowed as a set-off to such expenses a proportion of its gross earnings. Other Federal Reserve Banks have been permitted to make a similar adjustment of accounts in cases where member banks have been transferred from one district to another. In each case, however, this adjustment has been a matter of voluntary agreement and the Federal Reserve Board is not of the opinion that it can require, as a matter of law, the Federal Reserve Bank of Kansas City to assume any part of the expenses of the Federal Reserve Bank of Dallas; nor does it believe that it can require the Federal Reserve Bank of Dallas to pay any part of its gross earnings to the Federal Reserve Bank of Kansas City. The Board is, however, of the opinion that the Federal Reserve Bank of Dallas is liable to the member banks transferred for unpaid dividends up to the date of transfer, and that the banks so transferred are entitled to present their claims for such unpaid dividends to the Federal Reserve Bank of Dallas, which institution is being advised accordinglv. OCTOBERS!, 1916. Fiduciary Powers in Kentucky. As stated on page 523 of the October, 1916, Bulletin, the Federal Reserve Board, upon adyice of its Counsel, has determined that there is nothing in the laws of the State of Kentucky which prohibits either directly or by necessary implication a national bank from exercising the fiduciary powers authorized by section 11 (k) of the Federal Reserve Act, and in accordance with this ruling the Board has issued permits to various national banks located in that State to exercise the powers of trustee, executor, administrator, and registrar of stocks and bonds. The opinion of the attorney general of Kentucky, to which you refer, reaches the conclusion that the exercise of the powers enumerated would be in contravention of certain statutes of Kentucky. In the opinion of the Board, however, these statutes do not either expressly or'by necessary implication prohibit the exercise of these powers by national banks and following the established policy of the Board, adopted after a careful investigation of the situation, it could not consistently adopt the opinion of your attorney general and decline to grant these permits. It is, of course, understood that neither the opinion of the attorney general of Kentucky nor a ruling of the Federal Reserve Board would be-conclusive in any case in which action was taken against the bank for the exercise of these powers.. The court, in the last analysis, would have to determine this question. It is therefore necessary for the member bank obtaining these permits to act under the advice of its counsel in determining whether the powers should be exercised. NOVEMBER 3, 1916. When Acceptances are Commercial Paper. Your letter of October 5 was duly received. The Board has found it necessary-to adhere to its established policy of not making any general ruling on the question of how much a bank may invest in any particular security, unless the inquiry should come from the bank desiring to make such investment; but I will state for your information that the Board has recently informed a bank that if a firm is a bona fide owner for value of the acceptances of any particular institution and such acceptances are sold to or discounted with a member bank, the acceptances could no doubt be treated as commercial or business paper actually owned by the party negotiating them, and would therefore be excepted from the limitations of section 5200. In other words, if such paper is in fact commercial or business paper, actually owned by the person negotiating it, it may be disposed of by a member bank and none of the parties thereto, i. e., neither the drawer, DECEMBER 1,1916. acceptor, or indorser, would thereby become liable to the member bank for money borrowed, within the meaning of section 5200, and in such cases the member bank could acquire such paper without limit. November 4, 1916. Clayton Act and Executive Committees. I wish to acknowledge receipt of your letter of October 31,1916, asking whether a person who is ineligible under the provisions of section 8 of the Clayton Anti-Trust Act to serve as a director of your bank may properly be made a member of its executive committee. That section of the Clayton Act provides in part that no member bank located in a city of more than 200,000 inhabitants shall have7 as "a director or other officer or employee ' any private banker or any director or other officer or employee of any bank or trust company located in the same place. It will be observed that the prohibition of the statute is not merely against directors but also "other officers or employees." Even though there may be some doubt as to the exact technical status of a person not a director who is made a member of an executive committee of a bank, the Federal Reserve Board can not give its sanction to an arrangement which, in substance, is a subterfuge to avoid the operation of the law relating to eligibility of "directors, other officers, or employees of member banks. Whatever his official title may be, a member of an executive committee of a"bank would seem, in effect, to be an officer within the meaning of the Clayton ActNovember 13, 1816. Mortgage Loans. Your letter of the 14th instant has been duly received and considered. •While the Board is very glad to be of any possible assistance to the banks in the matter of the exercise of powers granted by Federal statute you wall, of course, realize that it can not undertake to pass upon or suggest any particular form of mortgage or deed of trust, since this involves a consideration of the laws of the several States relating to this subject matter. The suggestion contained in the Bulletin, to which you call attention, was made in response to an inquiry received by the Board and was, of course, merely intended to outline in a general way a procedure that might be adopted, provided the laws of the State in whicn" the mortgage or deed of trust executed will permit 679 FEDERAL RESERVE BULLETIN. the transaction to be consummated in the form suggested. The Board is advised that in some States it is customary for the borrower to execute a deed of trust to a trustee securing to the holder or holders of certain notes described in the deed the payment of such notes with interest and of any renewal or renewals of same. Where this is done a bank may discount a note thus secured provided it matures within the time specified and is otherwise eligible under the terms of the Act. In such case the payment or cancellation of any particular note would not release the security. When all notes secured by a deed have been paid and canceled, under the laws of many of the States the trustee may execute a release deed, or, upon presentation of the canceled notes, the clerk of the court, the recorder of deeds, or some other authorized official, may provide for a statutory release of the deed of trust or mortgage. As pointed out in the Bulletin to which }^ou refer, where banks discount notes under such circumstances they should not enter into any agreement at the time of discount to renew such notes and should only discount those which will mature within the time specified in the statute. NOVEMBER 21, 1916. Agricultural Paper. Your letter of November 17 to the Federal Reserve Board, asking information as to loans, is received. The 12 Federal Reserve Banks do not deal directly with individuals. They do, however, discount the paper of national banks and other banks which are members of the system. Loans on cattle for breeding, raising, or fattening may be made under the classification of six months' agricultural paper, and the paper rediscounted by a national bank or State bank which is a member of the system, at its Federal Reserve Bank. The Government does not fix the rate of interest which national banks may charge upon such loans, but the rate at which such loans may be rediscounted by a national bank with the Federal Reserve Bank of your district is at this time 5 per cent. This means that after the loan has been made to you, the bank may send the note, if it complies with the regulation of the Board, to the Federal Reserve Bank and receive the proceeds thereof, at the rate of 5 per cent and reloan them to another customer. The rate of interest which may be charged in a given State is fixed by the laws of the State, NOVEMBER 21, 1916. 680 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. LAW DEPARTMENT. The following opinions of counsel have been authoritv of section 13 of the Federal Reserve authorized for publication by the Board since Act? (2) May a member bank purchase and hold the last edition of the Bulletin: its own acceptances, carrying them as newly acquired assets of the bank? Acceptances of Member Banks. (3) Are acceptances of member banks, made (a) The limitations imposed by section 5202. Revised under authority of section 13, subject to the Statutes, on the liabilities incurred by any national bank limitations imposed by section 5200, Revised do not apply to acceptances of such banks. Statutes, which limits the amount that any (6) A member bank may legally purchase its own ac- person, firm, or corporation may borrow from ceptances, but such a transaction is equivalent to a loan a national bank ? or advance to the customer for whom the acceptance was (4) If a member bank has the right to purmade and the liability of such customer becomes subject chase and hold its own acceptances, are such to the limitations of section 5200, Revised Statutes. acceptances, when purchased, subject to the (c) The limitations imposed by section 5200, Revised limitations imposed by section 5200 above reStatutes, on the amount of money which may be borrowed ferred to? by any individual from a member bank do not apply to In order to answer these questions it is necesacceptances of such bank. sary to consider the nature of the obligation (d) The power of member banks to accept drafts or assumed by a member bank when it accepts a bills ofc exchange should not be confused with the power to discount the acceptances of others. draft or bill of exchange drawn against it and the purpose of that part of section 13 which OCTOBER 27, 1916. SIR: Section 13 of the Federal Reserve Act, adds this new powder to those heretofore vested as amended by the Act of September 7, 1916, in national banks. Under the negotiable instruments law and vests in member banks the power to accept the decisions of the courts, a bank accepting a drafts or bills of exchange in certain specified draft or bill of exchange enters into a contract transactions. This section reads in part as substantially similar to that of the maker of a follows: note. An acceptance is defined by Norton on "Any member bank may accept drafts or Bills and Notes (fourth ed., p. 116) as "an unbills of exchange drawn upon it having not dertaking by the drawee to pay the bill when more than six months' sight to run, exclusive of days of grace, which grow out.of transactions due." The maker of a note assumes a similar obliinvolving the importation or exportation of goods, or which grow out of transactions gation, so that while the form of. the instrument involving the domestic shipment of goods pro- differs the legal effect is the same. vided shipping documents conveying or securThe use of a bank's acceptance, however, ing title are attached at the time of acceptdiffers from the use of its promissory note. .A ance, or which are secured at the time of acceptance by a warehouse receipt or other bank desiring to borrow money will ordinarily such document conveying or securing title execute its promissory note or bill payable and covering readily marketable staples/7 discount this note with another bank, receiving A number of member banks have submitted the proceeds in cash or in the form of a credit questions for the Board's consideration in ref- balance. Where a bank accepts a draft or bill erence- to the circumstances under which these of exchange for one of its customers, however, acceptances may be made. Briefly summar- it merely lends its credit responsibility to its customer in order that he may procure the ized the questions submitted are as follows: funds elsewhere. (1) Does section 5202, Revised Statutes, The holder of a bank's acceptance has the which limits the liabilities that may be insame legal rights against the bank as the holder curred by national banking associations, apply to acceptances made by member banks under of a bank's promissory note or bill payable, but FEDEEAL RESEEVE BULLETIN. DECEMBER 1,1916. 681 banks are not authorized by section 13 to use Fourth. Liabilities to the stockholders of their acceptance power for the purpose of bor- the association for dividends and reserve rowing money for their own use. They are profits. Fifth. Liabilities incurred under the prospecifically limited by the terms of the Act to visions of the Federal Reserve Act. the acceptance of drafts or bills of exchange— If, therefore, a member bank assumes the (a) Which grow out of transactions involv- liability of an acceptor in any of the trans-^ ing the importation or exportation of goods; (5) Which grow out of transactions involv- actions authorized by the Federal Reserve Act, as amended, such liability is expressly exempt ing the domestic shipment of goods; (c) Which are secured at the time of ac- from the limitations imposed by section 5202 ceptance by a warehouse receipt or other such above referred to by the fifth exception to this document conveying or securing title coyering | section, namely, "Liabilities incurred under readily marketable staples; (d) Which are drawn upon it * * * by the provisions of the Federal Reserve Act." Under authority of section 13 of the Federal banks or bankers in foreign countries * * * for the purpose of furnishing dollar exchange, Reserve Act, therefore, a member bank may as required by the usages of trade in the respec- incur authorized acceptance liabilities to an tive countries. amount equal to one-half of its paid-up and The use of the bank's acceptance is limited unimpaired capital stock and surplus in addito the foregoing purposes which are expressly tion to those liabilities which are limited bienumerated in the Act, and where it appears section 5202 to 100 per cent of its capital and that this form of obligation is used for unau- surplus. thorized purposes, or for the purpose of evad2. May a member bank purchase and hold ing restrictions imposed by statute upon the its own acceptances, carrying them as newly exercise of other banking powers, the sub- acquired assets of the bank? stance of the transaction engaged in rather In order to answer this question, it is necesthan the form of the obligation assumed should sary to determine the legal effect of such a be considered in determining whether such purchase; that is to say, whether or not the other statutory limitations are applicable. purchase of a bill by the acceptor before maConsidering the foregping questions in the turity extinguishes the debt and releases the order in which they appear— drawer and indorsers. When a bill is paid 1. Does section 5202,. Revised Statutes, which limits the liabilities that may be in- before maturity by the drawer or indorser, curred by national banking associations; apply there is no question but that the payer may to acceptances made by member banks under reissue and further negotiate it. (French v. authority of section 13 of the Federal Reserve Jarvis, 29 Conn., 347; Palmer v. Gardiner, 7 Act? 111., 143; West Boston Savings Bank v. ThompSection 5202, Revised Statutes, as amended son, 124 Mass., 506; Am. & Eng. Enc. of Law, by the Federal Reserve Act, provides that— 2d ed., vol. 4, p. 500.) No national banking association shall at While the authorities are not entirely agreed any t/ime be indebted, or in any way liable, to in the case of a payment before maturity by an amount exceeding the amount of its capital the acceptor, the weight of authority seems to stock at such time actually paid in and remaining undiminished by losses or otherwise, be that such a payment operates as a mere except on account of demands of the nature purchase of the bill and not a payment of the following : debt, and that the acceptor may in such case First. Notes of circulation. properly reissue the instrument before maSecond. Moneys deposited with or col- turity. The transferee may recover on it lected by the association. Third. Bills of exchange o.r drafts drawn against all parties as a bona fide holder for against money actually on deposit to the credit value. (Morley v. Culverwell, 7 M. & W., 174; Rogers v. Gallagher, 49 111., 182; Eckert of the association. 69948—16 4 682 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. v. Cameron, 43 Pa. St., 120; Am. & Eng. Enc. From the foregoing it seems clear that if a of Law, vol. 4, 2d ed., p. 501.) member bank merely contracts to pay an In such a case the parties to the instrument obligation at maturity by accepting a draft or are bound as though it had not passed through bill of exchange drawn against it and this the hands of the acceptor. (Rogers v. Galla- acceptance is discounted with a third party, gher, 49 HI., 182.) the customer procuring the acceptance can A few jurisdictions hold that the payment j not be said to have borrowed money from the by the acceptor before maturity extinguishes accepting bank but has merely borrowed its the instrument, and that a subsequent trans- credit, and such an acceptance should not feree can not hold the other parties liable. be treated as a liability for money borrowed (Beebe v. Real Estate Bank, 4 Ark!, 546; Long from such bank within the meaning of secv. Cynthiana Bank, 1 Litt. (Ky.), 29.) tion 5200. The purchasing bank, however, does not 4. If a member bank has the right to puracquire any new or additional assets by this chase and hold its own acceptances, are such transaction. It uses its cash resources to pur- acceptances, when purchased, subject to the chase its own obligation, thus reducing its limitations imposed by section 5200 above assets and its outstanding liabilities by the referred to? amount of the acceptance purchased. When a bank purchases its own acceptance, It is assumed that when the draft or bill of however, it has ceased to lend merely its credit exchange was accepted the customer procuring responsibility and has utilized its own funds in the acceptance entered into a collateral con- purchasing the rights of the holder of the tract with the bank to place it in funds by or acceptance. before maturity to pay the acceptance when As holder it would have recourse only on the due. As a result of this transaction the accept- collateral contract for reimbursement against ance of the bank would constitute a liability the customer for whom the acceptance was and it would have as an offsetting asset the made, and not against the other parties to the liability or guaranty of the customer. When bill, since the bank as the acceptor is the party the bank anticipates payment of or purchases primarily liable. Even though the bill were its acceptance it reduces its outstanding lia- secured by shipping documents, warehouse or bilities and reduces its cash resources by a trust receipts, this security could be realized corresponding amount, but retains its rights on only in the event that the customer deagainst the customer as one of its assets. faulted in his contract to furnish funds to pay If it should be claimed that since the bank the acceptance at maturity. Accordingly, has the right to reissue or to sell this accept- when the bank purchases its own acceptance ance at any time before maturity it should it uses its funds to anticipate the payment of continue to show it as an outstanding liability, a liability which its customer has agreed to it would, of course, be necessary for it to show pay at a later date, and in effect makes a loan the acceptance itself as an offsetting asset in of its funds to such customer. The evidence order to balance its books. of the debt thus created is the customer's conThe better practice, however, would seem tract to place the bank in funds to pay the to be to treat the liability as acceptor as dis- acceptance when it matures or to repay the charged and not to show the acceptance pur- advance or loan made by the bank when it chased as an additional asset. purchased the acceptance. The liability of 3. Are acceptances of member banks, made the customer under such circumstances should under authority of section 13, subject to the be treated as subject to the limitations of seclimitations imposed by section 5200, Revised tion 5200, which provides in part that— Statutes, which limits the amount that any The total liabilities to any association of person, firm, or corporation may borrow from any person, or of any company, corporation, or a national bank ? DECEMBER 1,1916. FEDERAL RESERVE BULLETIN. firm, for money borrowed * * * shall at no time exceed one-tenth part of the amount of the capital stock of the association actually paid in and unimpaired and one-tenth part of its unimpaired surplus. The same result would be reached if the accepting bank was called upon to pay the acceptance at maturity and the customer who procured the acceptance had not furnished to the bank the necessary funds with which to pay it. In either case the liability of the customer would be subject to the limitations of section 5200. It necessarily follows that where a bank accepts a draft or bill of exchange for one of its customers and immediately discounts such acceptance for the customer the transaction constitutes merely a subterfuge for permitting the customer to borrow money from the bank. Acceptances discounted in this manner should be treated as money loaned to the customer subject to the limitations imposed by section 5200, above referred to. DISCOUNT OF ACCEPTANCES. The purchase. or discount of a bank's own acceptance should not be confused with the purchase or discount of acceptances of third parties. From some of the inquiries submitted there appears to be a tendency to confuse the acceptance power of a member bank with the power of member banks to discount acceptances, and it therefore seems advisable to consider in this opinion the question of whether or not bills of exchange and acceptances discounted by a member bank are subject to the limitations of section 5200, above referred to. It should be remembered that national banks have had the power to discount bills of exchange and acceptances of third parties ever since the national banking system was created in 1864. The right to lend their credit by assuming the obligation of an acceptor, however, was not authorized until the passage of the Federal Reserve Act on December 23, 1913. According to the original provisions of this Act this power was limited to the acceptance of drafts or bills of exchange which grew out of transactions involving the importation or exportation of goods. 683 By the Act of September 7, 1916, it was extended to include acceptances in certain domestic transactions and those made for the purpose of creating dollar exchange. The exercise of this power, however, is in no sense the same as the exercise of the power heretofore vested in member banks to discount bills of exchange and acceptances. In determining whether the limitations of section 5200 apply to the discount of bills of exchange or acceptances it is necessary to consider the circumstances in each transaction. Section 5200 excepts from its limitations "the discount of bills of exchange drawn in good faith against actually existing value, and the discount of commercial or business paper actually owned by^the person negotiating the same." It is clear, therefore, that a bill secured by shipping documents, or by the pledge of goods actually sold, might be discounted by a member bank before acceptance without being subject to the limitations imposed by section 5200 since this would constitute a bill drawn in good faith against actually existing value. When such bill has been accepted by the drawee, and the documents attached have been removed, though the direct obligation of the drawee to pay such bill at maturity may be said to be substituted for the " actual value" against which the bill was originally drawn, nevertheless, when discounted by a bona fide owner for value, its discount would not be subject to the limitations of section 5200, since it would still come within the classification of " commercial or business paper actually owned by the person negotiating the same." Should the drawee who accepts the bill, however, attempt to discount it with a member bank it would be subject to the limitations of section 5200, since in that case the party primarily liable would in effect borrow money from the bank on his own obligation, and while such an acceptance might be in the form of commercial or business paper it could not be said to be " actually owned by the person negotiating it.7? In other words, a bill or an acceptance when offered for discount to a 684 FEDERAL RESERVE BULLETIN. member bank must be in fact as well as in form what it purports or is represented to be, if it is to be treated as coming within the exceptions to section 5200. For example, a bill secured by warehouse receipts and drawn by the owner of the godds against his agent or against a fictitious drawee for the purpose of borrowing money would not be a bill drawn in good faith within the meaning of section 5200. An accommodation acceptance not growing out of a commercial transaction and not representing any debt actually due from the drawee to the drawer of the bill, but drawn solely for the purpose of enabling one of the parties to the bill to borrow money from the member bank, would not be "commercial or business paper actually owned by the person negotiating it." Where, however, the bill is drawn in good faith against actually existing value, or where the person discounting the commercial paper is the actual owner of the debt represented by the acceptance, it would come within the exceptions to section 5200. Respectfully, M. C. ELLIOTT, Counsel. To Hon. W. P. G. HARDINO, Governor Federal Reserve Board. Banker's Acceptance Secured by Bill of Sale. A banker's acceptance drawn for the purpose of purchasing goods secured by a bill of sale of stock in hand is not eligible for purchase by Federal Reserve Banks under the provisions of Regulation B, series of 1916. NOVEMBER 4, 1916, SIR: One of the Federal Reserve Banks has purchased a number of time drafts accepted by a certain corporation which are marked "For the purchase of cotton seed and supplies for manufacturing purposes/7 The corporation in question holds a so-called bill of sale executed by the drawers conveying all their stock on hand consisting of cotton seed, cottonseed products, and other supplies. This bill of sale is in effect a chattel mortgage by the drawers covering their stock on hand. As indicated by Regulation B, 1916, Federal Reserve Banks may buy in the open market DECEMBER 1, 1916. bankers' acceptances growing out of transactions involving— (1) Foreign shipment of goods; (2) Domestic shipment of goods; (3) The storage of readily marketable goods provided the acceptor of the bill is secured by warehouse, terminal, or other similar receipts; and (4) The storage of goods which have been actually sold provided the acceptor of the bill is secured by the pledge of such goods. The question presented is whether the acceptor of the bills in question is secured by a "warehouse, terminal, or other similar receipt." A bill of sale is not a receipt similar to a warehouse or terminal receipt; it is merely in substance a chattel mortgage to goods in the hands of the drawer and not a receipt for goods sold in the hands of some third party "independent of the borrower" as contemplated by Regulation B and by special instructions No. (2). It has been suggested that even if not secured by a warehouse or similar receipt the acceptor is secured by a pledge of goods sold and in storage as provided in Regulation B, paragraph 4, quoted above. It is the opinion of this office that the acceptances in question do not come within this paragraph of the regulation because it is evident that the Board contemplated that "storage" means storage with some party other than the borrower or drawer. It would seem, therefore, that even if the bill of sale covering any and all supplies on hand should be construed to be a pledge of the goods sold, nevertheless, they can not be said to be goods in storage within the meaning of the regulation. Moreover, it is the opinion of this office that a general chattel mortgage of goods on hand securing the payment of any and all debts due to the acceptor is not a pledge of specific goods sold and in storage as contemplated by Regulation B. Respectfully, M. C. ELLIOTT, Counsel. To Hon. W. P. G. HARDING, Governor. DECEMBER 1, 1916. FEDERAL RESERVE BULLETIN. Advances to Member Banks. Eligible paper pledged as security for a promissory note of a member bank on which an advance is being made by a Federal Reserve Bank need not be indorsed by such member bank if such eligible paper is already in negotiable form. OCTOBER 26, 1916. SIR: The attached letter raises the question whether eligible paper pledged by a member bank as collateral security for its promissory note, on which advances are being made by its Federal Reserve Bank, should be indorsed by such member bank. If the paper to be pledged as security is made payable to the order of the member bank, it must, of course, be indorsed by such member bank in order that the Federal'Reserve Bank may have legal title and be in a position to realize upon the security in case of default. This question was discussed in detail in an opinion of this office printed on page 363 of the November, 1915, Bulletin. The only question to be considered is whether the member bank should indorse paper to be pledged as security, even though it is in negotiable form without such indorsement. Section 13 of the Federal Reserve Act, as amended, provides that any Federal Reserve Bank may make advances to its member banks on their promissory notes, provided such notes "are secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible for rediscount or for purchase by Federal Reserve Banks under the provisions of this act/ 7 etc. There is no doubt, of course, that bills of exchange and bankers' acceptances, as distinguished from promissory notes, need not be indorsed to be acceptable as security, because such paper is eligible not only for rediscount under the provisions of section 13, but is also eligible for purchase under the provisions of section 14 without the indorsement of a member bank. In no event, therefore, need a member bank indorse bankers' acceptances or bills of exchange which are already in negotiable form in order to make them eligible as security for its promissory notes. The question, therefore, resolves itself solely into a consideration of whether or not promis- 685 sory notes may be used as security without the indorsement of the borrowing member bank. Promissory notes can not be purchased by Federal Reserve Banks in the open market either with or without the indorsement of a member bank, but section 13 provides in part that: c 'Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice and protest by such bank as to its own indorsement exclusively, any Federal Reserve Bank may discount notes, drafts, and bills of exchange arising out of actual commercial transactions," etc. The test of eligibility of a note is the nature of the use to which its proceeds are put. If it is drawn for a commercial purpose, as defined by the Act, it is eligible paper, though of course in procuring its rediscount the member bank must comply with certain conditions precedent required either by the Act or the regulations of the Board. In the opinion of this office the indorsement of a member bank is a condition precedent to the rediscount of eligible paper and is not one of the essential elements of eligible paper. It is merely a statutory condition precedent to the rediscount of paper which is eligible for rediscount under the terms of the law; that is, it is one of the steps incident to the rediscount of eligible paper. It would seem, therefore, that the amendment to Section 13, authorizing Federal Reserve Banks to advance money to their member banks on the security of their promissory notes secured by such paper " as is eligible for rediscount or for purchase by Federal Reserve Banks," makes eligible as security all notes, bills, and acceptances of the kinds made eligible for rediscount or purchase by Federal Reserve Banks and does not require the additional indorsement of the member bank of such security. If the security is in negotiable form without the indorsement of the member bank, that is sufficient because the Federal Reserve Bank would then have the requisite legal title. As long as the member bank is bound on its note, its indorsement on the security would in no way strengthen the position of the Federal Reserve Bank. There is only one obligation, 686 FEDERAL RESERVE BULLETIN". and that is on the note, and in case of default the Federal Reserve Bank could bring suit against the member bank upon that note only. It could not also recover on the member bank's obligation as an indorser upon the security for that note. So in the case of insolvency the Federal Reserve Bank could file its claim only for the amount of the original note and not for the amount of the note plus the amount of the security. It seems clear, therefore, that it would be futile to require the additional indorsement of the member bank if the paper pledged as security is already in negotiable form, and that the law does not require such indorsement. Respectfully, M. C. ELLIOTT, Counsel. To Hon. W. P. G. HARDING, Governor, Federal Reserve Board. Time Deposits—Open Accounts. In order to consider an open account a time deposit under the provisions of Regulation D, series of 1916, the bank in which the deposit is made must require 30 days' notice of an intended withdrawal. NOVEMBER 13, 1916. SIR : In reference to a letter from a certain national bank relating to the establishment of time deposits—open accounts, it appears from the copy of the bank's rules that the depositor agrees "that no withdrawals may be made except on written notice given by the depositor at least 30 days in advance." Regulation D, series of 1916, in defining " Time deposits—open accounts," provides that that term shall— include all accounts not evidenced by certificates of deposit or savings passbooks, in respect to which a written contract is entered into with the depositor at the time the deposit is made that neither the whole nor any part of such deposit may be withdrawn, by check or otherwise, except on a given date or on written notice given by the depositor a certain specified number of days in advance, in no case less than 30 days. It is evident, therefore, that the rules of this national bank comply with the requirements of DECEMBER 1,1916. Regulation D, relating*to the establishment of time deposits—open accounts. The difficulty, however, is that the bank desires to permit withdrawals of these accounts before the lapse of 30 days after notice; that is, they apparently believe that the regulations merely give the bank the right to require 30 days7 notice and that it does not contemplate that such notice must necessarily be given in all cases and that the bank must not permit withdrawal before the 30 days have expired. In the case of savings accounts two things are required: (a) The presentation of the passbook or certificate whenever a deposit or withdrawal is made; (b) a printed regulation to the effect that the bank may require 30 days7 notice of a withdrawal. In the case of time deposits—open accounts— there is no necessity for the presentation of a passbook or any other form of certificate, but it is essential that 30 days7 written notice must be given by the depositor and that the bank must not permit the withdrawal before the lapse of those 30 days. It is the opinion of this office, therefore, that the rules of the national bank in question are satisfactory and in conformity with the provisions of Regulation D, series of 1916, provided it is not the practice of the bank to permit withdrawals of such accounts before the expiration of the 30 days7 notice required under the agreement referred to. If the bank contemplates permitting such withdrawals, it is not complying with the spirit and intent of the board7s regulation and it should be required to maintain the same reserve against those deposits that it maintains against other demand deposits. If Regulation D, series of 1916, were not enforced in this manner, banks could very easily turn the ordinary checking accounts into time deposits merely by procuring the agreement of the depositor that he would give 30 days7 notice if the bank should require it. Respectfully, M. C. ELLIOTT, Counsel. To Hon. W. P. G. HARDING, Governor Federal Reserve Board. DECEMBER 1,1916. 687 FEDERAL R.ESEBVE BULLETIN. SUMMARY OF BUSINESS CONDITIONS NOV. 23. 1916. District No. 1— Boston. General business.. Very good. Crops: Condition Outlook. Industries of the Active district. District No. 2— New York. Very active... Very good Light harvest ofE- Fair set by h i g h prices. Very busy.. Construction, building. Ahead of any pre- Fairly busy vious year. Foreign trade Increased Bank clearings .....do Increased 20 per cent over October, 1915. , Large increase Bankers' acceptances and call l o a n s firmer; other rates unj changed. Railroad, p o s t - | Increased Increasing; great office, and other s h o r t a g e of receipts. freight cars. Labor conditions.. Fair Well employed at high w a g e s ; fewer strikes. Bright Good Outlook.. Business very good Continuous rise in Remarks. in every line. prices of commodities and securities is causing too much speculation. Money rates I Increasing District No. 7— Chicago. General business... Active Crops: I Condition I District No. 3— Philadelphia. District No. 8— St. Louis. Most satisfactory ... i Yield below normal. I I j Good I Record preparations pp anticipated. I tiitd Hampered by short- j Generally • prosperage of labor and ous. cars. Average percentage Building above the average for the seashows increase. son. Exports still very heavy. Satisfactory... Increasing. do Easy and changed.. Excellent. Crops limited at this season of the year. Operating maximum output. Fair. Limited. Still showing in- Increasing. creases. Scarcity of labor Labor scarce and In demand at full Fair, with unfavorable outlook. wages. wages advancing. in many lines. Still promising Good. Favorable Good High prices for farm products and large profits from manufacturing h a v e created great activity in business generally. Increasing District No. 9— Minneapolis. Active Very active Spotted. H i g h prices prevailing. Large amount fall Winter w h e a t Fair Outlook. plowing accomacreage somewhat larger than plished. last year reported. Industries of the Busy Active Very active. district. C o n s t r u c t i o n , Fairly active Active Increase building. Foreign trade Larger than a year Bank clearings Increasing Increase ago. No change Money rates Low and steady... No change. R-a i 1 r o a d, post Postal receipts in- Increase Increase.. office, and other creased 13 per receipts. cent. District No. 6— Atlanta, Record clearings re- Still increasing I Increasing. ported in several centers. S e v e n large cities report 43.2 per cent increase over No- | vember, 1915. i un- Easy and slightly 4 to 6 per cent; de- Stationary. decreasing, mand easy. , Labor conditions.. Good Fair Satisfactory. i Good Outlook .j Little change anRemarks ticipated during next few months. District No. 5Piichmond. | Prosperous Very busy do District No. 4— Cleveland. Very good Favorable District generally prosperous; outlook shows no p r o s p e c t of Increasing District No. 10— Kansas City. Very active Wheat improved Good District No. 11Dalias. District No. 12— San Francisco. Good Winter crops good. Active. Citrus crop good. Above normal. Generally behind Practically all active. with orders. Normal for this seaIncrease son. Good Decrease 54 per cent increase. Increase Easy, with tendency No change. lower. Railroad increased Increase 25 to 50 per cent; post office, 24 per cent. No disturbances; Well employed general shortage. Favorable Bright Car and labor short- Less activity, but business on firm age only untoward b a s i s ; prospects elements. excellent for winter business; collections improved. Active, except lumber. 37 per cent over same month 1915. Increasing. 37 per cent over same month 1915. Unchanged. Increasing. Fair. For expansion. Car shortage acute; lumber situation improving; profitable activity in all lines. 688 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. GENERAL BUSINESS CONDITIONS. There is given, on the preceding page a summary of business conditions in the United States by Fedeial Reserve districts. The reports are furnished by the Federal Reserve Agents, who are the chairmen of the boards of directors for the several districts. Below are the detailed reports as of approximately November 23 : DISTRICT NO. 1—BOSTON. There is practically no line of trade that has not shown great expansion during the past year. In nearly every business the increased costs entering into production have resulted in higher prices to the ultimate consumer. This,"however, has acted as an incentive to further purchases before prices become still higher, rather than as a deterrent to buying. The public, generally, is becoming accustomed to higher and increasing prices. For this reason retailers are not so apprehensive as they were some months ago as to purchasing at current prices and passing the increase on to the consumer. Wholesalers and manufacturers, for the most part, have made considerable profits during the year; and in many instances are anxious to restrict their business rather than expand further at the risk of being overloaded with goods at the present price level in a market decline. The purchasing power of the laborer has increased, and this is exerting a great influence toward an even larger demand and further activity. The wage earner, as a rule, is receiving more pay than perhaps ever before; and this has to some extent offset the increase in the cost of living. The salaried or middle class, however, who have usually lived up to their full income, are now feeling the effects of high prices. Raw material of practically every kind has increased very radically, and it is not uncommon to find • that staples have increased from 50 to 100 per cent. The coal business has become demoralized in this section during the last month, due to a large increase in the demand, a decrease in the supply from the mines, and difficulty in getting transportation facilities. As soon as it was known that dealers were short there was a large public demand, and prices increased 25 to 50 per cent in a very short time. Dealers began declining orders except from regular customers and would sell to them only in small lots. The rush to buy, however, has, to some degree, quieted down, and prices in outlying districts have reacted a trifle from their highest point. The lumber market, which has not kept pace with the advance in cost of other building materials, has had a marked increase in activity and prices. Especially is this true of spruce, due to the inroads made on the supply by paper manufacturers. Car shortage and embargoes are interfering with the transportation of lumber. This, together with the coming of cold weather and the consequent difficulty in getting out logs, has made dealers reluctant to accept advance orders even at a premium, unless they have the stock on hand for making delivery. Cotton mills continue busy with no falling off in the demand. While cotton and otherproduction costs continue to advance, the mills are finding it possible to raise their prices proportionately, so that on -the whole they are having the most profitable period they have enjoyed for many years. With cotton prices on the present level, mills are only buying to cover requirements as they book orders and are taking no chances that any break in the market may find them with a surplus supply of cotton on hand. The high cost of leather and the inability of the manufacturers to get some grades at anything but prohibitive prices are the features of the boot and shoe industry. Retailers are reported to be willing to buy boots and shoes at any price and from retail stores. The dry goods business is extremely good, with retail sales well ahead of last year. Wholesalers state that many of their customers who DECEMBER 1, FEDERAL RESERVE BULLETIN, 1916. in previous years purchased a small stock in the fall and augmented it from time to time as needed are this year seeking to purchase their full requirements in advance. As many of these retailers have kept little or no record of their past requirements it is very difficult for the wholesaler, who. is himself having trouble supplying his needs; to treat all his customers equitably. In this' business, as in practically every other, collections are reported unusually good. The wool market continues strong and active, with advances registered in practically all grades. Wool is fully 50 per cent higher than two or three years ago, but with foreign conditions as they are and imports cut off dealers see no prospect of lower prices until some other source of supply is opened. Woolen and worsted mills, especially the former, continue very busy, and prices are keeping pace with the increase in the cost of the staple and other items entering into the product. The money market has a slightly firmer trend, with rates being marked up fractionally. There has been no abundance of money in Boston for a long time; rates, however, have been influenced by the surplus in New York and Chicago and have been lower than the condition of our banks warranted. Therefore, with the first sign of higher money in New York the market in Boston became firmer. Call money, 3-J to 4 per cent; six months7 money, of to 4 per cent, with the bulk of business at 4 per cent; year money, 4-| to 4J per cent; bank acceptances, 2\ per- cent indorsed,. 2-f per cent upward unindorsed; town notes due before January 1, 3 per cent; after January 1, Z\ per cent upward. Loans and discounts of the' Boston Clearing House banks on November 18 show an increase of $9,054,000 over last month and demand deposits have increased $15,502,000 in the same period. The amount "due to banks" on November 18 was $143,312,000 as compared with $150,161,000 on October 14. The excess reserve of these banks decreased from $38,188,000 on October 14 to $26,615,000 on November 18. 69948—16 5 689 Exchanges of the Boston Clearing House for the week ending November 18 were $277,309,318 as compared with $218,281,847 for the corresponding week last year and $189,721,963 for the week ending October 14. Building operations in New England have not abated and statistics show that the building and engineering operations from January 1, 1916 to November 15, 1918, amounted to $183,883,000, as compared with $158,498,000 for the corresponding period of 1915 and $171,048,000 for the same period in 1912, the highest previous year on record. Exports from the port of Boston for October, 1916, amounted to $19,706,548 as compared with $15,091,461 for September, 1916, and $8,703,362 for October, 1915. Imports for October, 1916, amounted to $9,386,899, an increase of $237,901 over September, 1918, and-a decrease of $2,467,550 from October, 1915. The receipts of the Boston post office for October, 1916, show an increase of $86,000, or about 9 per cent over October, 1915. For the first 15 days of November, receipts were about 3 per cent, or $12,000 under the corresponding period last year. Boston & Maine Railroad reports net operating income, after taxes, for September, 1916, as $1,386,172, as compared with $1,329,290 for the corresponding month of 1915. New York, New Haven & Hartford Railroad reports net operating income, after taxes, for September, 1916, as $2,187,435, as compared with. $2,200,888 for the same month last year. Owing to the large amount of tonnage going over their lines the railroads are finding it necessary to again make restrictions and on some lines embargoes are now in force.. The roads are having difficulty in handling cars as fast *as they come on the lines and one system reports some 5,000 more freight cars on its tracks now than at this time last month. DISTRICT NO. 2—NEW YORE. A number of new high records were made during the last month in commercial and industrial activities. All but a few reports indicate that no slackening was noted in the activity of 690 FEDERAL RESERVE BULLETIN. manufacturers and traders to supply the great demands of consumers. More railroad freight cars were needed on November 1 than at any time in recent years, the shortage being 108,010 cars. Excepting one month in 1909, three months in 1912, and one month in 1913, there has been an oversupply of cars during the last eight years. The further advance in prices which began three months ago has developed into a widespread and rather speculative movement in commodities and securities. Wheat is quoted at the highest price since 1398. Corn is dearer than at any time since the Civil War. Cotton sold at 20.04 cents on October 25. Various kinds of steel and leather have risen rapidly of late, some grades of each costing 100 per cent more than a year ago. The average salaried man is finding it burdensome to meet the additional cost of such necessaries as food, clothing, footwear, and coal. Merchants and large buyers of raw materials are uncertain and anxious about making important commitments. Manufacturers of standard goods which sell at fixed rates may be obliged to revise long-established terms. Labor is fully employed at high wages. It is noted that saving is common enough among the foreign element but often remarked that other workmen generally are spending too freely for luxuries and not taking advantage of an unusual opportunity to accumulate. Labor is less restless. With the approach of winter the labor situation is expected to be somewhat easier, as certain outside activities will cease during the cold weather. Crops have not been evenly good. There is less than an average yield of practically all except hay, but all dairy products have advanced, and such high prices are being realized for potatoes, onions, cabbages, carrots, wheat, corn, and buckwheat that many farmers have had a very prosperous year. On November 18, 1916, the New York Clearing House Association's statement shows loans, etc., $3,448,121,000, deposits $3,583,694,000, and excess reserves $79,897,080. Since October 1 loans, etc., increased $100,683,000, DECEMBER 1, 1916 deposits increased $115,861,000, and excess reserves decreased $9,292,990. Other statistics of October, 1916, compared with October, 1915, are the following: Transactions on the New York Stock Exchange, par value of bonds $143,543,000, an increase of $39,420,500. Shares of stocks, 28,348,361, an increase of 1,743,659. Building in.New York City, $11,542,880, an increase of'$2,150,255. Postal receipts, New York City, $3,095,923, an increase of $303,743. Failures in New York State, 153, with liabilities of $1,843,631, a decrease of 138 in number and $6,113,510 in liabilities. Production of pig iron, 3,508,849 tons, an increase of 383,358 tons. Foreign trade of New York for the four weeks ended October 28 shows exports $254,591,463, an increase of $50,149,104; imports $88,918,710, an increase of $18,689,976. Foreign loans arranged in New York during the last month include a1 new British loan for $300,000,000 and $20,000,000 against French municipal bonds. Negotiations for a new Russian loan of $25,000,000 and a credit of $50,000,000 to French merchants were also reported. In the foreign exchanges closing rates show only slight fractional changes in sterling and francs. Declines occurred in marks, guilders, lire, and roubles. The rate for call loans rose to 4 per cent on October 9 and 17, but ruled generally at 2\ to 2-J-. Time loans against collateral ranged from 3 to 4 per cent, according to term. Commercial paper has been steady at 3-| to 3J. On November 15 the Federal Reserve Bank of New York increased the rates for prime bankers' acceptances from 2-|-2f to 2f-2J, DISTRICT NO. 3—PHILADELPHIA. Manufacturing operations in practically all lines continue extremely active, and difficulty is still experienced in making satisfactory deliveries of goods. Wholesale distribution of merchandise is maintained in steady and satisfactory volume. The colder weather has been a welcome stimu- DECEMBER 1,1916. lant to the retail movement of seasonable goods, for which there seems to be a steadily increasing demand, with a noticeable call for the more expensive classes of goods, which is a reflection of the very general employment of labor and the prevalence of prosperous conditions. During the past month adverse conditions have affected the coal situation, and it is reported that as much as $7.50 a ton has been paid for spot bituminous coal. This price does not affect the delivery of coal under contract, and as most consumers have contracts for a yearly supply at fair prices, the price of spot coal does not affect them. The scarcity of cars is causing embarrassment. There is sufficient demand for coal to use the maximum allotment of a mine's cars, but the railroads are not furnishing over 60 per cent of the allotment, and some days very much less than that. As the mines can only be worked to the capacity of the cars furnished each day, the shortage of cars is curtailing the output of the mines, is responsible for much of the deficiency in the coal supply, and is interfering very much with the earnings of the miners. As long as the present demand for coal exists, relief will only be secured by an increase in the supply of cars. Steps toward this end, it is understood, have been taken by the railroads, and current reports show that large orders for equipment have recently been given. Theprders for railroad equipment is another one of the many causes which are giving increased impetus to the steel business. The prices of all iron and steel products have been advanced during the past month. Building operations show an increase of 31 per cent in October over, the same month of last year. Philadelphia reported a gain of 36 per cent, while other towns show an average increase of 20 per cent. For the first 10 months of the year, reports show an increase of 21 per cent over the corresponding period last year, the smaller towns making the better showing, their gain being 40 per cent, compared with 16 per cent in Philadelphia. Bradstreet's report building permits as follows: 691 FEDERAL RESERVE BULLETIN, Permits issued. City. Allen town... Altoona , Atlantic City. Harrisburg.., Philadelphia. Reading Scran ton Trenton Wilkes-Barre. Williamsport. Wilmington.. York Total.. Percent increase Oct., 1916. Oct., 1915. $128,500 96,900 127,100 140,500 4,055,000 145,300 79,900 297,539 88,500 61,600 204,100 45,700 $154,700 84,200 169,600 158,400 2,980,700 91,800 121,700 131,624 40,300 16,£00 200,000 12,400 - 17 + 15 - 25 - 11 + 36 + 62 - 34 + 126 + 120 +268 + 2 +262 5,470,639 4,161,924 + 31 Manufacturing plants under construction today are being erected at abnormally high costs, which would only be done provided the owners had in prospect abnormal profits to justify such unusual expenditures. The conditions in other lines of business have changed little in the past month. Dealers in leather report stocks depleted, and prices continually advancing. Many large shoe manufacturers are short of supplies; orders for 1917 are being taken only on the basis of prices ruling at the time of shipments. Tanners and dealers are asking extravagant prices, which as a rule are conceded. In the textile industries reports show an active domestic and export trade in cotton yarn. Stocks are low and the demand for yarn is heavy. Prices are firm and advancing daily. Wool prices are probably the highest ever known in this country; the market is firm and all kinds of woolen goods are selling at proportionate figures. There is mid-season dullness in the tapiestry mills. Some are working about 75 per cent capacity on replacement orders, while others are practically idle. Since,, the strike some time ago, many of the strikers have returned at wages practically the same as before. Quiet conditions are reported in the silk trade. Retailers are well stocked, and few new orders are being placed. Prices continue steady. The upward tendency to prices continues in staple lines of groceries, with the feeling among the wholesalers, however, that this movement 692 FEDERAL BESERVE BULLETIN. DECEMBER 1,1916. Goal and oil.—Coal operators are making every can not continue much longer. Retailers are buying freely. Collections are unusually good. effort to meet the demands of their regular The Philadelphia post office reports receipts trade, but on account of extreme car shortage during the month of October of $830,538, an and labor conditions are only partially and in increase over the same month last year of an unsatisfactory manner serving their patrons. $67,734. There was an increase of 19,113 in Free coal is selling as high as $5 at the mine and money orders issued, amounting to $246,236. $7.50 for coke at the oven. These unusual Bradstreets report 87 failures in the district prices have not benefited many companies during tiie month of October, of which 84 rep- whose deliveries are covered by long-time conresented concerns with capital of $5,000 or less. tracts. A number of industrial plants are This compares with 73 failures in September actually closed for lack of coal. Lake shipments have been extended to*Becember owing and 65 in August. The rates for money remain unchanged. to the open season and shortage, of coal in the During the past month the final instalment of Northwest. Altogether, however, the situation reserves was deposited in the Federal reserve is somewhat better than 30 days ago. Activity banks, but it is too early to determine whether in the oil fields continues. The new Kentucky or not the transfer of these funds from the development is attracting many operators. reserve city banks will have any effect on the Manufacturing.—There still seems to be a rates for money. demand largely in excess of the supply in almost every branch of the iron and steel busiDISTRICT NO. 4—CLEVELAND. ness, in fact most mills are sold up through Transportation and fuel are the over- the entire year 1917. Prices have advanced shadowing subjects in this month's survey since last month, the most notable being that of business conditions in a district which in steel rails. Car shortage is acute and curoriginates more freight than any like territory tailing shipments. Material is accumulating in the world. Changes outside of these two on the shipping beds, and mills are facing closing influences are slight. down to relieve the situation. The electrical Agriculture.—Timely rains have helped the business is still going along at top speed. crop situation and farmers now say that wheat, Glass factories are running full time, reporting of which there is an unusually large acreage, a larger volume of business than ever booked has never looked better at this season of the before. The rubber industry is booming, and year. High prices are being obtained for all automobile manufacturing is, with the excepcrops except hay. The market for loose leaf tion of a limited number of concerns, quite tobacco is opening in 50 or more towns in satisfactory. Increases in the prices of several Kentucky and Ohio, and the heaviest sales models indicate the situation. Manufacturers ever consummated are anticipated. Advance of knit goods and women's wear report a consales indicate the new crop will sell, because of tinued demand for the higher-grade goods, with its exceptional quality, at about 2 cents more all grades selling well. per pound than normal. The market for live Transportation.—Insufficient car capacity and stock, especially hogs and sheep, is active and motive power is the problem of all the railroads at selling prices highly profitable to cattle in this district. Its effect on the industries of raisers. The market for dairy products is in a the district is noted elsewhere in this report. similar condition. Railroads are in the market for equipment, Raw materials.—Prices of pig iron continue but deliveries are uncertain and prices are to advance, with better deliveries. The lumber almost prohibitive. The freight-traffic condemand has improved, especially for interior gestion shows no improvement and has caused a purposes. Prices are firmer but about the decrease of 6 per cent over last month in loads same as 30 days ago. billed within this district on one important 693 FEDERAL BESBEVE BULLETIN. DECEMBER 1,1916. trunk line. Traction travel shows slight in- carrying out contracts. High prices for matecreases in the centers, and suburban traffic rials have also hampered building. There is a scarcity of houses reported and a number of continues steady. Labor.—The labor situation is difficult, prin- building projects are in prospect. Building cipally because of the scarcity of both skilled contractors predict a much broader building and unskilled laborers. There are few labor season for 1917 in spite of high prices of matetroubles at this time and practically no strikes. rial and labor. Five of the eight large cities The noteworthy event from a wage standpoint in the district report decreases in the amount was the general advance of 10 per cent by the of building construction for October, 1916, United States Steel Corporation affecting over the same month in 1915, but only one 200,000 employees. Other advances in wages city reports a decrease in the number of permits are reported, one large iron works granting a issued. Comparative table follows: 10 per cent increase, this being the fourth general Valuations. Permits issued. advance made by the company during the past Increase Per cent increase two years. Factories employing female labor or OctoOcto- October. October, decrease. or deber, ber, crease. are finding it difficult to secure all employees 1915. • 1916. 1915. 1916. needed, and as a result the scale of wages has 341 Akron 484 $1,215.045 $1,077,088 i $137,957 111.3 advanced considerably. 1,344 865,575 823,880 141,695 1.357 14.8 Cincinnati. 1,405 3,097,501 5,262,355 2,164.854 1,229 Cleveland. 69.8 Trade {wholesale and retail).—Mercantile trade Columbus. 305 390,685 575,630' 184,945 269 47.3 127 302,225 223,395 178,830 61 D a y t o n . . . 126.0 continues at the recent maximum and surpasses Pittsburgh 409 1,374,960 875,790 1499,170 337 136.3 404 815,552 774,544 141.008 237 15.0 all previous, totals at this season. Store help Toledo 160 341,685 382,480 40'. 795 116 Youngstown. 11.9 for the retail trade remains inadequate to the 3,947 4,638 8,403,228 ,995,162 1,591,934 18.9 demand. Retail prices for necessities have advanced to such a point that efforts in several Permits issued Valuations year Per for year ending— sections of the district are being made to form ending— Increase cent inor associations for mutual buying at wholesale. decrease. crease or deOct. 31, Oct. 31, Oct. 31, Oct. 31, Jobbers and wholesalers of dry goods, shoes, crease. 1915. 1916. 1915. 1916. millinery, clothing, etc., report very good 4,44515,>,252,235 $12,112,486$6,», 860,251 130.6 2,267 business. Post-office receipts show an average Akron 15,455 16,29112!1,666,513 j 10,962,915 11,703,598 113.4 Cincinnati 6.5 13,997 14,523 30!1,610,205; 32,604,575 1,994,370 increase of 8 per cent over October, 1915. Of Cleveland 2,721 3,155 5,813,320, 6,894,625 1,081,305 18.6 Columbus 796 1,303 2,080,222' 3,325,110 1,244,888 59.8 the eight large cities in the district only two Dayton 107,950 3,700 4,23114! .7 Pittsburgh .4,989,0461 15,096,996 2,684 35.1 4,270 7,099,121! 9,593,984 2,494,863 Toledo. show decreases over last year, as indicated in Youngstown.. 1,052 404,504 13.2 1,315 3,051,390! 3,455,894 the following table: 42,672 49,533 81,562,052| 94,046,585 12,484.533 15. ! .i October, 1916. October, 1915. Per cent Increase or increase or decrease. decrease. Decrease. Collections.—Reports on collections this month are no,t quite so satisfactory as 30 days $7,302 13.5 $54,029 Akron $61,331 288,960 13,475 Cincinnati 285,485 ago. From some quarters come complaints 323,099 20,742 6.4 Cleveland 343,841 109,487 23,470 Columbus 21.4 that collections are a trifle slow, due to the fact 132,957 60,856 12,387 Dayton 73,243 20.3 332,546 Pittsburgh 44,199 376.745 13.2 that the existing high prices require more capi96,659 Toledo 96,331 1328 1.3 25,830 26,430 600 Youngstown 2.3 tal to do business. Occasionally customers are 104.897 i * 8.1 pleading inability to pay, due to car shortage 1,396,363 1.291,466 and congestion on railroads, being unable to i Decrease. ship goods and turn them into cash. CollecReal estate and luilding.—Building activities tions, however, are generally good. Money and investments.—Bank deposits conhave kept up well into the fall. Difficulty in obtaining sufficient labor is causing delay in tinue heavy and clearings are showing high 694 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. totals. Practically the whole of district No. 4 being raised than ever before, the scale of is abundant with available funds. The demand living is better and is generally thought to be for loanable funds is not as good as last month. going beyond the means of many, and inviting Six months' paper of the higher grade names trouble in the future. Manufacturing in all has been selling recently in the centers at 3J per lines is yielding satisfactory, in many cases cent and commercial paper brokers predict a 3 abnormal, returns, the volume being limited per cent rate for January. The supply of securi- only by scarcity of material and labor. ties of recognized standing is not sufficient to Agricultural.—Results from recently harfill the demand. Record prices are being made vested crops, heretofore referred to, may be for industrial shares, and there is large specula- summarized as having been on the whole most tive buying. Dealers with stocks in new enter- gratifying. prises are taking advantage of these conditions Building.—Operations continue in good voland are having little difficulty m placing their ume for this season of the year, and trade in masecurities with the public. It should be noted terials seems only to be limited by supplies, that all of the seven leading centers in the dis- which are scarce. Deliveries are delayed. trict report large increases in clearings over last Coal.—Decreased deliveries are reported, year. Clearings for these same cities for the with further advance in prices, due to scarcity first 15 days in November were $53,324,585 of labor and cars. Some method of more effimore than for the same period last month. cient utilization of present rolling stock is Table follows: essential as a relief to this situation. Cotton mills.—Conditions continue favorable Nov. 1-15, Nov. 1-15, Increase. Per cent High prices of cotton, 1916. increase. to the manufacturers. 1915. labor, and supplies have increased the cost of Akron $5,644,000 $10,207,000 $4,563,000 80.8 production materially, but mills are still able to Cincinnati 66,843,250 87,776,650 20,933,400 31.3 Cleveland 80,610,623 147,890,252 67,279,629 83.4 make reasonable profits, and some reports state Columbus 16,667,600 19,771,300 3,103,700 18.6 Pittsburgh 119,090,990 146,335,237 27,244,247 22.8 Toledo 15,884,976 24,011,170 51.1 that goods are bringing better prices in propor8,126,194 Youngstown 4,491,858 6,894,435 53.4 2,402,577 tion to 20-cent cotton than they were when cot309,233,297 442,886,044 133,652,747 43.2 ton was 5 and 10 cents per pound. Exports show an increase in value for the DISTRICT NO. 5—RICHMOND. past month of 50 per cent over last year, alThere is a continuance of reports of activity though the volume of cotton- is considerably and prosperity from all portions of this dis- smaller. Wheat and flour are being purchased trict, there being only occasional cases of dis- freely for export at continually advancing appointment growing out of special causes, prices, the demand being seemingly unlimited. these being mostly due to the violent storm Foodstuffs.—There is general complaint of damage and floods earlier in the year. the high cost of living, which has stimulated Farmers are realizing the highest prices in production in all lines, but supplies are far from years which more than make up for whatever meeting demands and must be enormously inshortage there may have been in quantity. creased to restore a fair equilibrium in prices. Cotton is selling at 20 cents per pound, tobacco The raising of peaches in the sand-hill area of at an average of 20 to 25 cents per pound, and North Carolina is reported to be largely on the other products almost .relatively as high. increase, more attention also being paid to the Mercantile activity is general, but limited to apple crop of <the State, and reports from the some extent by supplies of goods. Prices are entire district indicate more efficiency in the high both for jobbers, limiting profits, and for raising of fruits. Eggs, potatoes, cabbage, and consumers, who complain of the high cost of other garden products are in demand, and it is living. More home supplies are, however, hoped that the attention now being given by DECEMBER 1, 1916. FEDERAL RESEEVE BULLETIN". farmers to such products, for home and local consumption, will bring some relief to the situation. South Carolina reports a decreased acreage in rice, unsatisfactory yield, but good quality and higher prices. The export trade in rice to Cuba, Porto Rico, and the Central and South American States has increased enormously, and this will tend to move the surplus of the United States rice crop; we hope, before the opening up of the new crop season of 1917. The consumption of rice in the United States is only 5.31 pounds per capita; in Porto Rico it is 146.98 pounds. The Gulf States are to-day the largest producers of rice in this country. California has developed its rice-growing industry enormously within the last four years, and the estimated yield for 1916 is 2,000,000 bags. Live stock.—Farmers from this district have been making trips into Tennessee.and Kentucky, •resulting in the importation into this district of improved live stock and thoroughbred animalsA number of fairs have been held during the past two months, and, at these, sales of thoroughbred live stock" have been greater in volume than ever before, the stock bringing higher prices than at any time in the past. Much attention is being given to stock breeding, and progress in this direction during the next 12 months promises to be very noticeable. In the tick-infested areas farmers, are realizing the ease with which the pests can be eradicated. Campaigns have been inaugurated for this purpose, and the number of dipping vats built is encouraging. It.is predicted that this territory in the next few years will be entirely free of ticks. Money and hanking.—A great majority of banks report prosperous conditions, increase of deposits, and easy money. In some few instances, as is sometimes the case, it is still necessary, however, to urge liquidation of longstanding lines of rediscounts. The increased deposits indicate an unusual surplus of money among the farmers. The demand for rediscounts in the district is lighter than last year, although there have been some bank acceptances and commodity bills 695 made, representing the financing of cotton purchased for mill consumption. Peanuts.—Previous reports of normal yield of good quality are confirmed, and prices, like others, are higher than last year. Railroad earnings, clearings, and postal re- ceipts.—Railroad earnings continue to show improvement,, being limited, however, by scarcity of rolling stock. Bank clearings show an increase of 16 per cent over last year, postal receipts an increase of 19 per cent, and gross money-order business 22 per cent. Federal Reserve Bank clearings for the month ending November 15 show a continued increase over the previous month. General.—Industrial and agricultural activity continues in all directions, and weather coRditions have favored fall plantings which have had the benefit of light rains^ giving them a good start before colder weather. Each month strengthens the belief that the southeastern section of the United States is assured of substantial growth and development in the next few years. The chief basis for this is the great area of cheap lands available for agricultural purposes. Reports from New Hanover County, N. C , advise that on October 12, twenty-five or thirty of its leading farmers, at a gathering at the courthouse, formed a Federal farm loan association under the new [Federal Farm Loan Act. Two hundred and thirteen shares of stock were subscribed, since which time the total has been increased to 523 shares. This has been done for the purpose of availing of the Act, as soon as the Farm Land Bank, which is to cover that section, is located. DISTRICT NO. .6—ATLANTA. Business activity increased in the Sixth District during the month of November in nearly all lines over preceding month. Retail trade was somewhat disturbed by the unseasonable weather for the first half of the month, but with the present cool weather a vast improvement is shown over conditions that prevailed a year ago. 696 FEDERAL RESERVE BULLETIN. DECEMBER 1, 1918. Agricultural.—During October the producers advances to pay for the amount of the price sold the greater portion of their products to advance over 1915, which was approximately liquidate indebtedness, but in view of the re- 50 per cent. Fertilizer -manufacturers anticicent advance the tendency appears to be to hold pate larger consumption, as it was fairly well their surplus for a still higher market. It is demonstrated this year that the farmer can not estimated that the cotton crop of Georgia will raise cotton without the use of fertilizer, and it bring $175,000,000 and with correspondingly j is expected, regardless of the presence of the tremendous sums being received in other States boll-weevil in certain sections, that the manuin this district all business is expected to rise facturers will sell approximately the quantity, if not in excess of it, sold in the year 1915. to a high tide. Citrus fruits and early vegetables.—The outThere is considerable comment in the press and speculation among producers as to the size look for larger profits for growers of citrus fruits of the cotton crop which will be planted next is excellent. The fruit this year is% of higher spring. Many feel that the present high prices quality, and, the crop being somewhat short, of cotton may prove a menace and lead the the demand is largely increased. Fruits and farmer to overplanting next year. Fertilizer early vegetables from Florida are beginning to dealers are anticipating larger sales this year move rapidly. Since the beginning of the than for the previous season, in view of the in- season, September 15, the following number of cars containing Florida fruits and vegetables creased prosperity among the planters. It is estimated that 75,000 negroes have were forwarded from Jacksonville, High migrated to the manufacturing centers of the Springs, and Hampton: Grapefruit, 1,071 cars; North. Most of these were from the farms, and oranges, 1,798 cars; pineapples, 3 cars; vegewith the renewed activity in the coal district, tables, 27 cars; lettuce, 12 cars. lumber camps, and other fields in the South Pecans.—With the Christmas holidays drawnow drawing farm laborers (at this time of the ing near, merchants are replenishing their year idle) to the cities, the question of farm stocks, and large shipments of nuts of many help may prove a very serious one by the time kinds have already been received. The pecan the cotton-planting season arrives. industry is getting to be a factor in certain There is little or no movement of farmers sections of our district, and the yield this year toward the South and with foreign immigration is somewhat larger than in 1915, and prices cut off in the northern States it is to be expected will average about 82 cents per pound, which that the high wages for common labor will is an increase of approximately 4 cents over attract many more of the southern negroes to the previous season. Flour mills.—The steadily advancing market the northern industrial centers. While there may be increased planting on the part of many in wheat, as usual, has stimulated some buying farmers, this will more than likely be offset of flour, the results being that the mills have run by the lack of experienced farm hands. This, much stronger than usual. Information, howwith the inferiority of fertilizers and the general ever, is that stocks of flour in the Southeast are diversification movement now taking hold in not larger than common. The spring-wheat the South, leads many of the best authorities to crop was a very short one, which caused both predict the inability to market more than a spring wheat and hard winter wheat to sell higher than soft winter wheat. For this normal crop. Fertilizers.—With the high price of cotton reason the Southeast depends this year printhere is a very optimistic tendency among cipally on soft winter-wheat mills, and statistics fertilizer manufacturers. Last season there show that soft winter-wheat mills have unusuwas considerable decrease in consumption of ally large stocks of wheat. fertilizer owing to the high cost of material Cotton-oil mills.—This has been a very and the inability of the farmer to get proper active season for the cotton-oil mills. Scarcity DECEMBER 1,1916. FEDERAL RESERVE BULLETIN. 697 Overall manufacturers report exceptionally of seed and the high bidding has resulted in the mills buying in on a speculative basis. good business. Cotton mills.—Cotton mills are looking forOne large operator reports: "Those who have bought everything and sold nothing will prob- ward with satisfaction and encouragement to ably make some money, while those who have a continuance of the favorable conditions. tried to do a conservative business will do Prices of goods have shown advances and a well to break even.77 The shortage of cotton tendency that has fairly well taken care of the seed has caused oil mills to take interest in advance in the cotton market. Goods are peanuts and soy beans, which are being moving freely, and it is believed that as long largely used for the same purpose as cotton- as the war lasts this high-tide condition will seed. Peanuts are bringing from $60 to $70 continue. a ton, and considerable interest has been taken Brick industry.—The brick industry shows by the farmers in the production of this considerable improvement, probably 75 per product, which is proving very profitable. The cent increase over the year 1915. The demand fact that member banks of the Federal Reserve is steady at advanced prices, due largely to the System are permitted to make loans on peanuts increase in cost of coal and wood, which enter stored, where negotiable receipts can be pro- largely into the cost of manufacture of brick. vided, is strengthening the value and giving Car shortage.—Extra efforts are being made stability to this product. by transportation lines to relieve the car shortNaval stores.—Naval-stores products are age situation. The increased demurrage charge, firm and steady. Turpentine producers are effective December 1, will undoubtedly act as a realizing more from this product during the cure for delay in cars and failure of the foreign present season than for four years past, values railroads to return cars promptly. now being on a large basis. Certain grades of Lumber.—The lumber business continues rosin now selling at $6.35 per barrel of 280 to improve, although the volume of business pounds at the same date in 1915 were selling is not exactly nortnal for the season, accounted at $4.97. The increased value of rosin is for entirely by the car shortage, as shipments due largely to the enormous demand from have been reduced from 40 per cent to 60 per Europe for munition purposes, which has cent. Mills state if normal conditions prevail somewhat offset the heavy trade previously in regard to car shortage the demand will inenjoyed with Germany and Austria. Statis- crease and satisfactory prices will prevail. tics furnished us show the production for the Coal mining.—This industry has probably present season will probably be 15 per cent been affected more adversely in the past 60 more than last season, but the supply at the days than any industry in the district, due end of the season of 1917 will probably be originally to the car shortage, and recently less, the consumption greatly increasing. being hampered by need of laborers. The dePrices for the remainder of the season seem mand is extraordinary in view of this shortage to be on a good basis. of cars and labor, and the prices of commercial Wholesale and retail.—In the wholesale and coal for spot shipments are very high. Adretail dry goods lines delivery seems to be the vances in many cases are over 100 per cent of important factor, and with the prediction that normal prices. raw cotton may go to still higher levels, considDuring the year there has been one general erable uncertainty prevails. Jobbers report a advance in wages on the part of commercial good volume of business with many "fill in77 coal mines. On the part of mines owned by orders received. Orders for spring goods are a iron and steel producing companies there have strong feature, showing confidence in values as been three general advances amounting to well as willingness of retailers to anticipate their approximately 10 per cent with each advance. needs. The iron and steel business is extraordinary, 69948°—1 - -6 698 FEDERAL RESERVE BULLETIN. the products being in great5 demand at unusually high prices, and wage advances have been granted to keep plants turning out their maximum production. In view of the recent wage increase in the district to mine workers and miners, approximating about 10 per cent, effective November 15, the railroads and other large consumers of coal have agreed to advance their contract prices about 10 cents per ton. The labor situation in the coal and iron district is quite unsatisfactory. Thousands of negroes have left the district for northern labor markets, a movement which has depleted the working force of the mines to a very large extent. Mines are now relying on negroes brought from the farms. Within the past week or 10 days the car shortage situation has been somewhat relieved, but as coal must be loaded as mined, the difficulty now is onfe of labor. Prospects for next year are for considerably higher prices for coal both for spot shipments and contract shipments, as the cost of production will be considerably higher. Pig iron,—The sensational advance in pig iron during the month was marked by a rise to $20 per ton, a record price. The Birmingham companies continue to sell heavily, and have been compelled to withdraw quotations on some grades of iron. This is the highest mark that pig iron has reached in the district in some years, and it is believed that it may even exceed this mark. Despite the high prices it is said that five of the large companies operating in the Birmingham district have taken orders for virtually every ton of iron that the furnaces Gan make by June 1, 1917. Finance and collections.—Financial circles are stronger throughout the district. Banks made excellent statements during the past month, and deposits continue to grow and promise to be greater when the next call is issued by the Comptroller of the Currency. Collections continue good, especially with the wholesale jobbers. As an indication, one large wholesaler of dry goods and notions reports: "Our fall bills mature November 1 net; statements covering bills that customers had not discounted on October 1 were mailed to DECEMBER 1,1916. them on the night of October 30, and on November 1, 2, and 3, we received remittances covering 30 per cent of the total amount of statements mailed out on October 30, which was indeed something unusual." Wholesalers7 and jobbers' prices have advanced so materially that they are holding back the regular line for spring, until they can tell more definitely what prices are going to do. Advance orders for winter and spring are considerably more than usual, and although prices are high and continue to go higher, good merchants seem anxious to place their orders for future delivery. Country merchants are paying their bills, many of them availing themselves of the discounts. Cost of living.—Some of the large iron and steel manufacturers of the Birmingham district and producers in the coal regions have recently granted an increase in wages of employees but on the whole there has been very little change in the general wage proposition in our district. This is bringing the South to face the most serious living conditions it has ever known. Prices of the necessities of life have steadily advanced for more than a year and there appears no likelihood of a reduction in the near future. With the scarcity of labor, relief can hardly be expected through greater production, and the remedy must be found in curtailed consumption, or by a general increase in wages. Flour which at this time last year was selling for $5.50 per barrel is now selling for $9.50. Irish potatoes which were obtainable at 80 to 90 cents per bushel in 1915 are retailing in the neighborhood of $2 per bushel, and the same change has occurred in other commodities. DISTRICT NO. 7—CHICAGO. There is no recession in the general volume of business at the present time. Production and distribution are at high levels and authorities in most lines anticipate an active trade during the coming months. Bank deposits and bank clearings are large and money rates low. Savings deposits have increased owing to the active employment of labor at substantial wages, and among banks handling a large DECEMBER 1,1916. FEDERAL RESERVE BULLETIN. amount of this character of business, particularly those located in larger cities, difficulty is experienced in keeping their funds liquid and at the same time earning a living rate. Country banks seem well able to care for themselves and the gradual marketing of crops and livestock is tending to make the situation still easier. The car shortage, the high cost of certain raw materials, and the deficient labor supply are constantly before the merchants and manufacturers, but there is evidence that the car situation may be alleviated through the action recently taken in Detroit to accelerate the handling of incoming shipments. An anticipated falling off in the lumber business is expected to release cars to other industries. The increasing cost of foodstuffs and wearing apparel is a matter of general comment, but labor is fully employed and apparently able and willing to buy in a substantial way. Retailers are inclined to carry heavy lines, causing tardiness in collections in some directions. In spite of the high prices a good fall trade seems to be in prospect. Confidence in the continuation of the present prosperity seems to be gaining in some quarters, but the more conservative are watching for evidence of change and are handling their affairs accordingly. Banks located outside of the reserve cities report a better demand for funds, and in most of the agricultural communities the financial condition appears to be sound. The past year has proven itself a satisfactory one to the majority of those engaged in agriculture in this district, and those in the wheat section are preparing for a larger acreage than last year. Illinois and Indiana will show increases in winter wheat acreage, as will Iowa to a moderate extent. Michigan and Wisconsin do not produce enough of this staple to affect the national total to any material extent. Up to the present, conditions have been satisfactory to the growth of the plant although there was some late planting due to the dryness of the soil. 699 Agricultural implements.—Conditions in this line have changed but little since the last report, and manufacturers seem disposed to build a moderate production for next year. Selling prices may have to be readjusted owing to the costs of material and labor, and it is thought that this may restrict sales. Automobiles.—This is naturally a slow time of year for manufacturers in this line, but reports at hand indicate a satisfactory volume. The demand is keeping factories busy and large outputs are planned for next year. Fear of overproduction seems to be in the thoughts of some of the manufacturers. Building and building materials.—Building is active in some localities but has been retarded by delayed shipments of material. High structural cost has postponed some operations in this line. Cement is entering its quiet season with a reasonably satisfactory record. Coal.—The coal situation has received considerable publicity of late, but the manufacturers assert that the prices are caused by an increased demand for coal and the lack of railroad equipment for handling shipments from the mines. The business itself reports a prosperous condition. Distilling and brewing.—-There is little change to report since last month. We understand that whisky jobbers are replenishing their stocks from the production of former years, as it is expected that the 1917 crop will be the most expensive that has ever been made. Withdrawals from bonded warehouses are reported ahead of last year. Malt companies are operating to capacity. Dry goods.—Orders for spring delivery have been taken by wholesalers in generous quantities at advanced prices and we understand that manufacturers have recently quoted cotton blankets and napped cotton cloths for the fall of 1917 at from 30 to 50 per cent higher than for 1916. There is a shortage in certain lines, notably hosiery and underwear. Collections are generally satisfactory, but it is felt in some quarters that the merchants are buying too heavily, causing subnormal payments. The 700 FEDERAL BESEBVE BULLETIN. DECEMBER 1,1910. increased cost of merchandise requires more Mail order.—Concerns in this line report capital to finance the same stock. business in District Seven as considerably in Furniture.—Business in this line is good, excess of last year. with collections satisfactory, but the advances Pianos.—Little change is in evidence in this in raw material have forced up prices to a level industry. Orders are above normal, collections which makes the manufacturers apprehensive good, and raw materials scarce and higher in as to the future volume of business. prices. Labor is difficult to secure, and there Grain marlcet.—-The distributing movementhas been some labor trouble, but the difficulty of grain has been retarded by the car situation. is local and it is not expected to spread. Prices are higher than last month, caused Shipbuilding.—Companies in this line are by the heavy foreign demand and the short actively engaged, with their capacity taken for supply. some time to come. Manufacturers appear Groceries.—-Wholesalers report large sales satisfied with the outlook and there is no change. and profits, but they seem to be experiencing Steel.—Mills are operating at capacity and considerable difficulty in obtaining supplies, are booked well ahead. Orders are taken at particularly in the line of canned goods and attractive prices, and no decrease in activity some fancy groceries. The principal danger in is looked for in this line for several months at the situation appears to be for the retailer who least. is forced to buy fixed-price package goods at Watches and jewelry.—With the approach of an increasing cost to himself, and is also com- the holiday season more interest is shown in pelled to finance the purchase of his usual these lines, and certain authorities look for a stock of merchandise at the prevailing prices. record year. Collections are good, with excelCollections are said to be good. lent prospects for the next few months. Hardware.—Great activity is evidenced in Wool and woolens.—Prices of raw wool are this line, at advancing prices, and there seems well maintained, and manufacturers are operto be no complaint with regard to collections. ating with large forces. Collections are said A good business is anticipated for some months to be good, and the present condition-is exto come, and some factories in this district are pected to continue until the end of the war running both night and day. abroad, when authorities in this line urge that Leather.—The leather trade continues unu- a tariff protection will be necessar}^ It is exsually active with further advances in price. pected that the present high prices may to Stocks of finished leather are low, and shoe some degree curtail sales. manufacturers appear to have more business Clearings in Chicago for the first 16 business than ever before. Leather belting is fairly days of November were $1,306,000,000, being active, and collections throughout the indus- $352,000,000 more than for the corresponding try are reported as satisfactory. 16 business days in November, 1915. Clearings Live stock.—Cattle during the past month reported by 19 cities in the district outside of sold at substantial prices. It is thought that Chicago amounted to $266,000,000 for the first the high price of corn will force into the mar- 15 days of November, 1916, as compared with ket some cattle which the farmers originally $190,000,000 for the first 15 days of Novemintended to feed through the winter. ber, 1915. Deposits in the eight Central ReLumber.—This line of industry is only fairly serve City member banks in Chicago were active, but wholesalers and retailers in some $707,000,000. at the close of business Novemof the large cities are anticipating a good vol- ber 18, 1916, and loans were $484,000,000. ume due to the development of new building Deposits show an increase of approximately operations in their territory. On the whole, $9,000,000 and loans an increase of approxihowever, conditions are only fair. mately $8,000,000 over last month. ,1916. FEDEBAL RESERVE DISTRICT NO: 8—ST. LOUIS. Business in this district continues extremely active, there being as yet no indication of any diminution. This is true in practically all lines of industry. Our correspondents report taking the district as a whole, shipments at a high level, with collections the best in years and past-due accounts less than they have been for a decade. Prices are still advancing. This is due in great measure to the action of the farmer, who seems never to have made more money and who is spending it freely, so that the advance in prices has not yet reached the point where demand falls off. Luxuries, as well as necessities, find a ready market. It was expected that buying would slow down, pending the election of the President, but during November, in this district, the presidential election seems to have had absolutely no effect. Buying and selling went on without interruption, something that has not occurred within the memory of a number of our manufacturers who called attention to this fact. The agricultural portion of this district is in especially good condition. While the major crops—cotton, corn, wheat, and oats-—show a considerable reduction over last year, this is made up by the prices which the farmer has received for them. This, as stated before, is the foundation of the high level of business in this district. Since the farmer is in position to buy and pay cash, the merchant with whom he deals is in position to buy liberally from the manufacturer and distributor. The cotton crop in this district has never moved more rapidly, and banks in the cotton section have been able to handle the situation with a minimum of outside help. Memphis advises that the greater part of its cotton has already been marketed. It is reported that several of the agricultural parts of our district are in a more prosperous condition than they have been for years. In some instances, farmers and planters have paid bonuses to take up their loans, and after 701 their payment have increased their deposits in the banks. Both the country and city banks in this district have a great deal of money, and it has become a problem for them to keep it invested. It is reported that the hay crop, on the whole, is the largest ever raised, and this means there is an abundance of food for live stock. The car shortage is being felt, and because it is difficult to get prompt shipments from manufacturers, there is an unusual demand for shipments in the near future. Farmers are also feeling the car shortage, and are having some difficulty in marketing all of their crops, or rather' are having to suffer considerable delay. A comparison of the combined averages of crop yields, by States in this district, gives the following results, counting the 10-year average at 100 per cent: Kentucky makes the best showing, with 102.5 per cent; Tennessee next, with 101 per cent; then comes Illinois, with 95.7 per cent followed by Arkansas, with 92.4 per cent; then Missouri, with 78.8 per cent, and Mississippi, with 67.4 per cent. The St. Louis National Stock Yards reports considerable increases in receipts and shipments of cattle, hogs, sheep, and horses and mules for the month of October, 1916, over the month of October, 1915. However, at the present writing there does not seem to be very brisk buying in the cattle market. During November the demand for horses has come largely from the southern sections, good, smooth, southern mares t being in demand. There has also been a strong market for horses for military purposes. The demand for mules also comes from the South. St. Louis building permits issued during October, 1916, are 24 less than those of the corresponding month in 1915. However, there has been an increase in valuation over the corresponding month last year of $118,763. Memphis shows an increase of 30 building permits for October, 1916, over the corresponding month of last year, with an increase in valuation of $155,555. 702 FEDERAL BESEUVE BULLETIN. Postal receipts in St. Louis, Louisville, and Memphis for October, 1916, show substantial gains over the corresponding month of last year. Postal receipts in Little Rock show a slight decrease. Clearings throughout the district show a general increase. For the week ending November 11 the percentages of increases over the corresponding week in 1915 are as follows: Little Rock, 50.6 per cent; Quincy, 28.6 per cent; St. Louis, 25.2 per cent; Louisville, 5.4 per cent; and Evansville, 4 per cent. Deposits in all banks are at a high level. Mone}^ rates are unchanged. St. Louis banks are loaning to customers at from 4 per cent to 4J per cent. The rates to customers of banks in other portions of the district will range from 5 per cent to 8 per cent. DISTRICT NO. 9—MINNEAPOLIS. The gradual development of an acute car shortage, with increasing difficulty in supplying steam and fuel coal to outlying county points, has been the outstanding feature of developments during the month and has had a serious effect on many lines of business. The danger of a fuel famine has been averted for the present, and there is a sufficient supply of both hard and soft coal at the storage docks at Duluth and Superior to provide for the present necessities of the greater portion of the district which they serve. Another period of cold, sharp weather, such as accompanied the midNovember opening of the winter season, might easily precipitate an acute demand and cause much trouble. Concerns in the fuel business are so hampered in obtaining empty cars that coal is moving slowly to all of the country points, and orders are being scaled down in an effort to fairly distribute deliveries among the applicants. Coal stocks at Duluth and Superior docks on November 1 were 5,863,050 tons as against 6,600,750 tons a year ago. Considerable shipments were brought up the lakes during the first 15 days of the month. Lake navigation closed November 15, marine insurance expiring on that date. DECEMBER 1,1916. Great difficulty has been experienced by all the northwestern roads in providing grain cars in response to orders from country points, and a shortage of empties brought about uniform action by the roads to control the movement of cars to eastern points. There is severe criticism that railroads east of Chicago are not returning the cars sent to the seaboard loaded with flour and merchandise. The present situation is severely handicapping the flour trade, and in connection with recent price advances for wheat, is having the effect of cutting down the output in proportion to the reduced orders from the trade. The trade is buying cautiously and only for immediate needs. All the mills are endeavoring to load to full capacity to make the most of the available cars, and the same course is being followed by grain shippers. Reliable estimates place the amount of the northwestern crop that has been marketed at from 60 to 70 per cent. The farmers have been receiving, for the poorest grade of wheat, more than twice the returns obtained in a number of previous crop seasons, and notwithstanding the very heavy shortage in the total crop, financing of the grain movement has required fully as much if not more money than a year ago. Practically all of the requirements for crop-moving currency are being taken care of by the Federal Reserve Bank of Minneapolis, and present prospects are that the total will run considerably in excess of the $8,000,000 issued for this purpose last year. Prices have averaged extremely high during the month. Mid-November elevator stocks at Minneapolis and Duluth were 8,662,000 bushels as against 13,843,000 a year ago. Crop-year receipts from September 1 to mid-November were 47,402,000 bushels, as against 105,531,000 bushels a year ago, or considerably less than one-half. The coming of freezing weather has not stimulated shipments from country points to the extent that was anticipated. Clearings at important centers have averaged considerably higher than a year ago. The demand for money has been active, but rates DECEMBER 1,1916. FEDERAL EESEEVE BULLETIN. have remained practically stationary. Country points report a good demand, but deposits hold up well and rates show no change. From all points there are reports of a very large amount of farm improvement work under way, a large part of which is permanent conr struction, such as dairy barns, silos, and other facilities contributing to better efficiency in farm production. Line lumber companies and country yards have been doing a brisk business. Merchandising lines at country points have been doing a good business, with good collections. Wholesale and distributing concerns report a larger volume of business than a year ago, with good collections and a considerable reduction of book accounts. Urban construction has been active, but will be reduced somewhat by the coming of cold weather. It is being held back to some extent by the high price of practically all of the items in the building-material line. Observers are of the opinion that a considerable amount of building has already been deferred until spring in the hope of a lower price level. Labor is in excellent demand at very good wages and is scarce, especially in the trades. The demand is greater than the supply. Reports of wage increases are coming in from many lines engaged in commercial and industrial activities, but it is improbable that the present wage level has kept pace with the advancing cost of living. Flour, potatoes, meat, and many other items are considerably advanced over a year ago; potatoes, especially, are scarce and very high in price. The amount of fall plowing accomplished and the condition of the soil at the beginning .'of the winter both indicate a very favorable situation in the agricultural districts in the spring. It is believed that most farmers have taken note of the seed-wheat and seed-corn situation and have provided themselves against the planting season. The amount of plowing done is in excess of that accomplished for several years and will remedy the chief difficulty in connection with the 1916 crop season, which was insufficient and poor preparation of the soil. 703 Over the district as a whole, an encouraging condition of prosperity prevails. Trade and industry are very active, labor is being very well paid, money is easy at low rates, and the outlook is considered very good for the midwinter period. The principal lines of trade and industry do not anticipate any appreciable reduction in the present volume of business before spring, and in the industrial lines, especially, the probabilities are that the present rate of production will extend well through the first half of the coming year. DISTRICT NO. 10—KANSAS CITY. If there is any tendency toward a reduction in business activities, it is not apparent in any of the reports obtained. There is, however, every evidence that general conditions not only continue satisfactory, but that the future prospects are most encouraging. Domestic business has reached a stage where new records in every branch of trade and industry are taken as a matter of course. Doubtless the greatest impediment to the natural course of commerce is the shortage of freight cars. Shortage of raw materials and of labor continues to hamper trade in many lines. New high levels reached in prices of farm products have been naturally followed by higher prices in practically all the necessities of life, and, even though wages have increased, the wage earner maintains that this increase has not been commensurate with the present high cost of living. Labor conditions in the district, however, remain unchanged. A shutdown of two weeks occurred in the Oklahoma coal fields, by reason of a general strike, which was terminated by a joint conference of miners and operators agreeing on a compromise. October made notable records in the movement of live stock. Official figures show that the month witnessed gains in receipts of cattle, hogs, and sheep, as compared with last year, at each of the leading markets, being the first time when all showed gains in the same month. In the face of such receipts, however, prices averaged better than a year ago. Corn, labor, and other necessary feeding adjuncts are cost- 704 FEDERAL BESEBVE BULLETIN". ing the feeder more than ever before, and the light average weight of hogs received at all markets doubtless means premature marketing as a result thereof. At Kansas City, for instance, the average weight of hogs received was 171 pounds against 181 in September and 195 in October, 1915. While the cattle census shows a big increase over a year ago, the increase of production has certainly not been in any such ratio as market receipts during the past few weeks. Large numbers of grass cattle are being received, which, under ordinary conditions, would be held and fed out for the winter and spring markets. Stockmen are being urged to hold back their immature cattle and hogs, the heavy shipment of which means a sacrifice of the potential supply. The fact that New Mexico, Oklahoma, and Colorado purchased strings of breeding stock during the month reflects a satisfactory feed condition and a further extension of breeding operations in that territory. While some uneasiness was expressed in our last report as to the condition of the winter wheat, there is every indication at this time that it has materially improved, and with the recent rains and snows, quite generally reported, the crop should enter the winter under excellent conditions. An exhaustive survey made by a member bank at Omaha results in the announcementf based upon average yields for the last seven years, that this year's corn crop in Nebraska is 113 per cent of the normal crop, wheat 119 per cent, oats 140 per cent, alfalfa 136 per cent, and wild hay 96 per cent.' Six important crops in Colorado on November 1 were estimated to have an aggregate value of $53,500,000 as compared with a value of $40,750,000 in 1915. Farm products in Oklahoma for 1916 are estimated to be worth $14,750,000 more than those of 1915. The beet-sugar crop is enormous and the factories in this industry are running at capacity. Fall pastures have made a good growth and an additional cutting of alfalfa was secured in many localities. Record-breaking low temperatures were reported from many points during the latter part of October. With DECEMBER I , but one exception the precipitation in. New Mexico for that month was the greatest on record during a period of 25 years. Alfalfa has advanced from a comparatively insignificant asset in this district to a point of high importance. From an acreage of little more than 34,000 in Kansas in 1891, when it was still more or less experimental, the records for 1916 show the acreage to have reached almost 1,500,000, no other State having so large an area devoted to alfalfa. In Kansas it is by far the greatest of all forage crops. Nebraska and Colorado are the second and third States, respectively, in the point of production, the former reporting an acreage this year in excess of 1,000,000 with an estimated value of almost $24,000,000. The growth of this crop has been followed by the alfalfa milling industry, producing an alfalfa feed not only for poultry, but for beef steers, sheep, horses, mules, and for dairy use, and this industry has reached considerable proportions. The total production of alfalfa meal in the principal milling States in this district is now estimated to be 200,000 tons annually. The value of ore mined in the •MissouriKansas-Oklahoma district has now surpassed the entire production of 1915 by a considerable amount, although less ore has been produced in this time. Ore prices have been higher and steadier during the present year. Considerable trouble has been experienced by lack of water, and several shutdowns resulted. Drainage of the greater part of the productive area of the Leadville (Colo.) district is the one great factor holding promise of increased future activity in this field, the larger part of this territory having beenfairly thoroughly developed above water level. The October output of the Cripple Creek (Colo.) district showed a slight increase in volume, but a lower value. Renewed activity is reported in Colorado's tungsten district, large orders being reported at increased prices. It is claimed that there is very little of this metal stored in the mining camps. The State coal inspector of Colorado has issued a statement, showing that the production of coal in Colo- DECEMBER 1, 1916. FEDERAL RESERVE BULLETIN. rado during the first nine months of 1916 increased 18 per cent over a similar period last year. The development of the Mid-Continent oil field has settled down to a steadier and more satisfactory condition than a few months ago, when high prices ruled and promiscuous drilling was common. Operators generally predict a gradually increasing market in the field. October showed a good average month's drilling, with a satisfactory volume of new production, and a lessening of the tension caused by the detrimental pipe-line runs of the past few months. Extreme cold weather early in the present month caught many drillers unprepared, and considerable work was necessarily suspended. The total oil production of Oklahoma for the year, based on the present supply, is estimated to be approximately 95,000,000 barrels. There appears to be no lessening of general activities in Wyoming and Kansas fields, where important wells continue to come .in. Dealers in furniture report an excellent business, with material increases over last year. Customers are anxious for prompt delivery, notwithstanding the fact that prices of furniture, drapery fabrics, and floor coverings are from 20 per cent to 30 per cent higher than a year ago, and very hard to obtain. Inquiry of companies engaged in the lumber trade indicates business to date this year exceeding that of the same period for 1915byl0per cent, the month of October, 1918, showing an. increase of 15 per cent over that month in 1915, while October of this year shows an increase of 18 per cent over the month of September this year. A comparative statement prepared at the home office of one of the largest automobile factories shows an increase in volume of business in this territory for the first nine months of the calendar year 1916, compared with a similar period of 1915, of 95 per cent in volume and 120 per cent in number of cars distributed, the difference being accounted for by the lower list price of cars this year. This same factory, on a very close analysis of many 705 statistics, anticipates even a larger increase for 1917. • The same analysis last year missed the predicted sales but 5 per cent. The latest State report on automobile licenses issued for 1916 up to September 30 comes from Wyoming, where the increase was 76 per cent over the entire number issued in the year 1915. Dry-goods houses report that their current fall business has been in excess of any former year for the same months, and that their advance orders for spring goods, sold for shipment to retailers after January 1, are in some cases 100 per cent or more in excess of the orders taken for spring shipment up to this time last 3^ear. This increase they attribute largely to the improved purchasing power of the people in the district and partly to the threatened scarcity of merchandise. Retailers in this line report a steady and satisfactory sale of seasonable goods, and collections of both wholesalers and retailers are in proportion to their sales, in some cases even greater, which is quite unusual. October is announced as one of the best months ever experienced in clothing circles, the class of merchandise sold being of the highest and finest quality carried, and there is every indication of a continuance of these conditions for the remainder of the year. In retail jewelry, a line which is always considered a good index to conditions, a splendid trade has been enjoyed and has steadily increased. Authorities place the increase over last year as high as 50 per cent. Seasonal fall implement lines continue active. Tractor business is fairly active, many dealers contracting for spring delivery. While at this season of the year wholesale implement houses are generally cleaning out their stocks prior to inventory, the unusual situation as regards the materials market is causing these houses to stock as heavily as possible for spring requirements. Flour millers are having difficulty in supplying the demand for their product. The majority of the hard-wheat mills are running to capacity and are taking orders for shipment only within 30 or 60 days, and there is very little export trade reported. Generally, mills 706 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. are well booked up to January 1 with domestic An added evidence of our commercial activbusiness. Sixty-four flour mills in Missouri; ity is shown in the following statement of postKansas, Nebraska, and Oklahoma reported the offi.ce receipts for the first 10 months of 1915 following output and capacity for the week end- and 1916, in the centers named: ingNovember 4, as compared with the preceding City. 1916 Increase. 1915 week and one and two years ago: Output Capacity (barrels). (barrels). Week ending Nov. 4 Previous week , One year ago Two years ago 253.634 268,808 244,717 233,079 267,120 278,520 283,020 256,620 Export shipments by the reporting mills were 15,589 barrels for the week, 11,771 the week previous, 12,677 a year ago, and 30,951 two years ago. Building operations have not slackened. Country roads, mills and elevators, bridges, public buildings, and automobile assembling plants predominate. Several large bond issues having been well received at the recent election, prospects are excellent for public winter work. Building permits for the first 10 months of 1915 and 1916 as reported by important centers are as follows: Kansas City, Mo Omaha Denver Oklahoma City Lincoln Wichita St. Joseph Topeka Kansas City, Kans Pueblo Muskogee Cheyenne $2,578,645 1,212,881 1,143,835 404,387 382,000 256.223 316;490 340,488 170,677 109,005 92,269 47,374 82,879,002 1,368,961 1,288,767 490,665 413,739 349,753 327,128 364,554 174,011 124,433 102,713 67,685 $300,357 156,080 144,932 86,278 31,739 93,530 10,638 24,066 3,334 15,428 10,444 20,311 DISTRICT NO..II—DALLAS. Business continues at a high level and there is hardly an exception to this situation in any, section. Recent cold weather has been an impetus to retail trade, and as the fall has been rather backward, with more seasonable weather, merchants are encouraged over the volume of business. The shortage of freight cars continues to be felt in many lines. There has been some improvement in the situation within the past 30 days, especially in the way of providing equipment for handling cotton, but the dearth of facilities still exists, and 1916 1915 railroad officials report that the near future City. offers no solution of the problem. Advance, Number. Amount. Number. Amount. holiday buying has been in evidence recently, $9,871,844 and with early Christmas shopping another 30 3,091 $9,330,765 3,150 Kansas City 5, 702,702 1,088 1,273 4,085,100 Omaha 3,415,070 days should bring heavy trade. 2,778 2,370 2,208,050 Denver Wholesalers 1,726,160 '495 466 1,454,659 Lincoln 860,247 are booking satisfactory 687 576 850,595 St Joseph orders for spring 1,391,285 198 292 752,720 Wichita. 1,669,953 goods. 346 625 1,005,191 Oklahoma City The scarcity of raw materials and the 62,636 43 70 60,518 Cheyenne difficulty in obtaining goods continue to be 8,822 8,726 19,747,598 24,699.897 Total outstanding features. The bulk of the cotton crop has been marThe following is a statement of bank clearings for the first 10 months of 1915 and 1916, keted. There are a few scattering lots over the district, the car shortage having caused the as reported by the cities named: concentration of considerable cotton at com^ City. 1915 1916 Increase. press points. Most of the lots, however, are held by exporting firms, and there is little left Kansas City $2,692,434,128 $3,365,354,243 S672,920,'ll5 Omaha • 800,026,014 1,029,264,534 Never before has 229,238,520 in the hands of the farmers. Denver.. 401,394,000 541,989,297 140,595,297 St. Joseph 313,185,618 412,269,224 This is 99,083,606 the crop moved with such rapidity. Wichita 154,133,591 207,608,685 53,475,094 Oklahoma City 105,016,260 176,125,966 71,109,706 due to the high prices. * Ideal weather condiLincoln 97,265,822 142,898,794 45,632,972 Muskogee 32,906,669 54,868,609 21,961,940 tions have also contributed to this condition Pueblo 19,832,682 21,725,212 1,892.530 and prevented loss in the fields. DECEMBER 1,1916. FEDERAL RESERVE BULLETIN. 707 The rice industry has been unusually active, October, 1915, and also for the period from and reports received indicate that the yield in January 1 to November 1: Texas is the largest in history. Rice farmers Jan. 1 to Nov. 1 — October— are realizing more for their efforts this season than ever before, although everything used in 1916 1915 1916 1915 the production of the crop has advanced in Cattle. 713,937 76,960 100,876 651,317 ice from 50 to 100 per cent. Calves 1. 129,015 16,494 116,070 26,765 — 805,142 52,029 382,147 67,851 The peanut crop is about 60 per cent mar- Hogs Sheep 378,856 15,079 340,992 25,276 3,357 43,248 "11,686 keted. The quality is considerably better Horses and mules than last year. The pecan crop is almost a total failure; and sections where the returns The demand for good stock cattle has held from the crop contribute to business are feeling up, and the ranges of south Texas are again the loss of revenue. Such pecans as have been well filled. Range conditions throughout Texas raised, however, are of excellent quality and ,are generally satisfactory, except in the San are bringing good prices. Angelo country, where, on account of lack of There has been but slight change in the rain during the spring and summer months, banking situation in the past month. De- there is little grass. Ranchmen are therefore mand with banks is light and rates are easy. finding it necessary to buy feed, and on account Bank deposits remain at record figures. There of the high prices for the same stockmen are continues to be a good demand for bonds and shipping their cattle as rapidly as fattened. high-class securities, and brokers report that Recent heavy sales of wool in the Roswell it is difficult to obtain satisfactory offerings. section have brought considerable money to the Clearings continue to show large increases, sheep men and have stimulated business with and the six larger cities of the district reporting merchants. show an increase of 54 per cent for October At the present time there is a large moveover October, 1915. The figures are: 1915, ment of turkeys to the north and east and ship$165,977,039; 1.916, $254,820,311; increase, ments are heavy. At prices of 18 to 22 cents $88,843,272. Dallas reports the largest in- per pound, approximately double last year, crease, or 80 per cent. There were handled farmers are receiving good returns. through our district clearing house for the There is a good demand for lumber, at satisperiod, October 16 to November 15, 1916, factory prices. On account of the shortage of 340,952 items, aggregating $175,574,192. cars the demand is greater than can be accomWholesale trade is good and collections in modated. Export trade is good, but shipping keeping with the increased volume. space is hard to obtain, and rates are almost Receipts of cattle and calves at the Fort prohibitive. Retail dealers report.a good busiWorth market for the month of October were ness and high prices. the heaviest on record, over 100,000 head Manufacturers of brick, tile, cement, and being received. Prices were somewhat lower other building materials report their business during the latter part of October, on account as below normal; that shipments were mateof substantial receipts of common and poor- rially affected by the shortage of equipment grade stock. Heavy runs of hogs have con- during the months of August, September, and tinued from all sections, but particularly from October. There has been some improvement the Panhandle and southern Oklahoma. The in this respect since November 1. market has held up excellently, despite large Building operations of the district are normal receipts. for this season, it naturally being a period of the Following are the figures for the Fort Worth year when there is less construction than at market for October, 1916, as compared with other times. The following figures show the 708 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. number and valuation of permits issued in the Business of railway companies is above principal cities of the district during the month normal. While officials report that the freight of October, as compared with the same period traffic is slightly below the business handled last year: 1915—number, 1,663; valuation, 30 days ago, yet figures show a substantial $1,244,501. 1916—number, 1,158; valuation, increase over the same period of 1915. Pas$1,613,992. senger traffic shows a good increase, while New territory is being opened up, in the oil interurban business, especially excursion traffic fields and the outlook is encouraging. Whole- and local travel, is exceedingly heavy and salers and distributors are enjoying a good busi- increases for the month of October vary from ness and report an increase in volume of from 5 to 75 per cent. 35 to 40 per cent over last year. Demand for holida}^ goods is heavy, with The price for copper has shown a recent ad- mail-order houses steadily booking advance vance and the mines of New Mexico and Ari- orders, and the volume of business being hanzona are working full time, with maximum, dled is heavier than last year. Labor employment is normal in all occupaoutput. Post-office receipts at the principal cities in tions. It is expected that employment in the the district show good increases with one ex- building trade during the months of December ception. At Dallas the October receipts were and January will be dull, as that is the season the highest in the history of the post office. when there is considerable decrease in building The following are the figures at the principal operations. In other sections of the South offices for October over October, 1915, also a and Southeast there has been a considerable comparatives statement for the months of movement of colored and Mexican laborers to August, September, and October over similar northern States during the past 60 days. Colperiod last year: October, 1915, $316,819.94; ored laborers were promised various lines of 1916, $395,027.77. Increase, $78,207.83; per occupation such as hotel, restaurant, and yard work, while Mexican laborers were engaged for cent increase, 24.6. railroad and mining v/ork. Aug., Sept., Oct. Increase. DISTRICT NO. 12—SAN FRANCISCO. 1915 Austin .. Dallas El Paso. Fort Worth Galveston Houston San Antonio Shreveport Waco . ... 1916 Amount. Per cent. ,141,318.72 284,705.31 53,901.48 115,533.40 51,706.40 144,735.24 98,804.97 42,898.51 43,068.17 $44,085.41 348,030.85 103,716.56 128,721.46 46,167.67 165,650.22 130,624.59 47,352.43 45,134.79 $2,766.69 63,325.54 49,815.08 13,188.06 15,538.73 20,914.98 31,819.62 4,453.92 2,066.62 7 22 93 11 ill 14 32 10 5 S76,672.20 1,059,483.98 182,811.78 21 1 Decrease. The large increase at El Paso, it will be noted, is undoubtedly due in part to the concentration there of the United States troops. This, as has been commented on before, is being reflected in all lines of business in that section. Dealers in leather report that business is unusually heavy, with collections .good. On account of the large export business, it is difficult to obtain raw material and prices have, therefore, steadily advanced. With the exception of the ill effects due to the car shortage and the lack of ships, conditions in the Twelfth Federal Reserve District are very favorable. This shortage of transportation facilities affects growers of apples, potatoes, citrus fruits, grain, and practically all other products. Steps are being taken in the Northwest to hold the railroads liable for any losses incurred, as prices have declined in some cases because of the impossibility of getting the products to market. An embargo has again been placed on certain products by one important road. Barley stocks are exceptionally low in this locality and consequently the prices are ruling high, around $2.20 to $2.30 per cental, which is 60 to 70 cents above the average. Such prices restrict its use as feed. For the first time in the history of California, oats are being DECEMBER 1,1916. FEDERAL RESERVE BULLETIN. 709 shipped in and sold at prices below the market year's crop of navel oranges was shipped on for barley. Due to the shortage in the world October 14 to New Zealand. Heavy shipwheat crop, some farmers are holding their ments began about November 20. Opening grain in anticipation of such an extraordinary prices were about $1 above the opening prices price as $5 per hundred. Many elevators are of last year and 50 cents above any reported being built in Washington and Idaho and much in previous years. grain is being handled in bulk because of the It is estimated that the 1917 sugar crop of short supply and high price of bags. Hawaii will be from 625,000 to 650,000 tons. This district will produce 36,000,000 bushels This is not as large as the 1915 crop but will of potatoes this year, compared with 32,000,000 equal the average. The high prices realized are bushels in 1915—Washington and California giving enormous returns to producers. contributing most. The returns from this crop Precipitation in California has been about will be much above normal, high prices ruling normal. In eastern Washington there is quite because of short crops in the East. a deficiency and planting of winter wheat has The apple industry is in very satisfactory been held up for some time. condition, the market being fairly steady at A considerable frost in California about the good prices. The supply of ready-to-eat fruit middle of November did some damage to in the eastern producing districts is light this olives, oranges, and grapes, but the damage is year, while the apple crop of this district is reported as not serious. about 7 per cent above that of last year. Live-stock prices continue high and the outMany apples are being shipped to the Orient look very promising. Many trainloads of catand Australasia. tle are being sent from Nevada to California for The cotton yield this year in California is 484 winter feeding on the ranges, but stored feed pounds per acre compared with 156 pounds for is reported as ample. The turkey crop of the the entire United States. The average for the Pacific States is larger than it has been for past 6 years in California has been 426 pounds several seasons and present indications are that per acre compared with 186 pounds for the 10- prices will be about the same as last year. year average of the United States. A report The salmon pack of 1916 will equal, if not comes from Tempe, Ariz., of the long staple exceed, that of 1915. There are practically no Egyptian cotton selling at 45f cents per pound, j stocks on hand and prices are advancing rapidwith a production of 625 to 750 pounds per | ly. It is reported that a large percentage of acre in some instances. Imperial Valley cotton British Columbians pack has been sold to the has sold around 26 cents. There is a serious French Government as food for the armies. lack of labor for picking cotton. Some improvement is noted in the condition Due to early rains no large amount of Cali- of the lumber industry over that of a few fornia rice will be ready to mill before Decem- months ago. While actual production is below ber 1. Sales to date have been on a basis of normal, orders exceed both actual and normal $1.65 to $1.70 for No. 1 rough rice. The Japa- production. Unshipped lumber orders for nese rice crop is reported as being heavy, some transcontinental rail shipment now exceed 4,000,000 bushels above the average. 9,000 carloads. There has not been a time in The largest crop of dates yet grown in Cali- recent years when unfilled orders have shown fornia has just been harvested. Prices have such an accumulation, even during the severe varied from 35 cents to $1 per pound, according car shortage of 1907. to the variety and quality. Alaska, in common, with other mining reThe outlook is excellent for a large crop of gions, is enjoying the prosperity caused by citrus fruit. The quality of the fruit is above the prevailing high prices of metals. This the average and is testing up to the standard is due largely to the copper production of earlier than usual. The first carload of this the Kennecott mines, also to the increased 710 FEDERAL RESERVE BULLETIN. activity in production from the low grade deposits near Juneau. During the month of October Alaska shipped to the States products valued at $13,981,000, including $8,606,000 worth of canned salmon and copper worth $2,726,000. Mining throughout the district is steadily expanding. The output of copper is continually making new records with enormous profits, particularly in Arizona, Utah, and Nevada. Prices are higher than at any time since the Civil War, when they were quoted in depreciated currency as high as 55 cents per pound. Miners are reported as receiving as much as $13.50 per day. Since January 1, 604 oil wells have been opened. During ©ctober the petroleum production in California averaged 266,520 barrels daily, with shipments '303,652 barrels daily, occasioning a loss in stored stocks of 1,150,000 barrels. The amount now in storage is 47,318,150 barrels, which is the lowest amount in years. Charter rates on the Pacific are unchanged as compared with a month ago, and while in some cases double those of a year ago, are lower than in January and February, 1916. Exports from Pacific coast ports for the month of September, 1916, show a 30 per cent increase over, the corresponding month in 1915, while imports increased about 55 per cent. Imports in October exceeded exports by $10,000,000. DECEMBER 1,1916. Shipbuilding continues to be one of the most active industries on the Pacific coast and all the yards are occupied to the limit. New yards are being constructed and the old yards enlarged to handle the orders. The Union Iron Works has announced a proposed extension of its Alameda plant, on the east side of San Francisco Bay, to occupy 125 acres and cost $20,000,000, with ways large enough for superdreadnoughts. It is said that one-half of the new orders in the United States are from Norwegians and are distributed among the Portland, Seattle, and San Francisco shipyards. Besides ordering new vessels the Norwegians are buying interests in previously formed companies and are said to have already obtained control of two on this coast. Building permits for October, 1916, for 17 leading cities in this district show a 37 per cent increase over October, 1915, with the largest gains in Seattle and Los Angeles. Clearings for the same cities for October this year also show 37 per cent increase, Salt Lake City showing the largest increase with 63 per cent and Seattle second with 53 per cent. Clearings for the 17 cities in the first 10 months of 1916 aggregate $6,268,000,000, a 25 per cent increase over the same period in 1915. The figures for the semiannual weighing of parcel-post mail handled at the San Francisco post office for 15 days in October show an ncrease of 40 per cent over the same period last year. DECEMBER 1,1916. FEDERAL RESERVE BULLETIN. 711 DISTRIBUTION OF DISCOUNTED PAPER ta Federal Reserve Banks. October discounts of trade acceptances (two-name paper)— BY CLASSES, MATURITIES, AND SIZES. $383,200—while larger than the average for Commercial paper discounted by the Fed- the preceding 9 months, were about $200,000 eral Reserve Banks during October, 1916, less than in September and almost 40 per cent aggregated $11,862,900, compared with $14,- below the corresponding total for October, 308,700 discounted in September, 1916, and 1915. During the 10 months ending October $15,050,800 in October, 1915. Of the total of the present year the total of two-name paper amount of paper discounted during October discounted by the Federal Reserve Banks was and the preceding month the share of the 3 $3,199,300, the Richmond, Atlanta, and St. southern banks is 46.2 per cent as against 60 Louis banks together reporting over 75 per per cent in October the year before. The New cent of the total for the period. York bank for the first time during the presThe total number of bills discounted during ent year reports monthly discounts in excess October, 3,950, is the smallest monthly total of 1 million dollars, largely the result of reported during the present year. Inversely rediscounting in some volume by two New the average size of the paper discounted during York City banks. Over one-quarter of the the month, about $3,000, is the largest monthly October discounts is credited to the Atlanta average for the present year, and exceeds by bank, which reports over 1J million of cotton 85 per cent the October, 1915, average. Nearly paper discounted at the 3 per cent rate. The 45 per cent of the total paper is made up of October discounts of the Dallas bank show a the largest size bills, in denominations of over considerable decrease as compared with the $10)000, as against only 12 per cent shown for totals for the preceding months, and were only October, 1915, while the share in the monthly about one-third of the October, 1915, total. total of medium-size notes, i. e., in denominaDiscounts of the Federal Reserve Banks for tions of over $1,000 to $5,000, is over 30 per the 10 months of the present year totaled cent, as against 40 per cent in September, 1916, $126,250,100, compared with $127,671,300 in and 54 per cent in October of the past 3^ear. 1915. Small notes (in amounts up to $250) constiTotal discounts for the month include $2,- tuted about 13 per cent of the total number and 284,900 of advances to 9 member banks upon less than 1 per cent of the amount of bills distheir own notes secured hj discounted paper counted during the month. or United States bonds and notes, :also $2,~ About 5.8 per cent of the October discounts 921,000 of commodity paper and $383,200 of was 10-day paper, i. e., maturing within 10 trade acceptances (two-name paper). The days from the date of discount by the Federal aggregate of these 3 classes of paper discounted Reserve Bank; 31.2 per cent 30-day paper; at special, lower than ordinary, rates consti- 29.5 per cent 60-day paper; and 26.3 per cent tutes over 47 per cent of the total discounts 90-day paper. The amount of discounted 6for the month. month paper, i. e., agricultural and live-stock Nearly all the discounts of commodity paper paper maturing after 90 days from date of are reported by the Atlanta, Richmond, and discount by the Federal Reserve Bank, was St. Louis banks, Atlanta alone being credited $851,500, the Chicago bank reporting the with over 50 per cent of the total. The month- largest total of this class of paper. On the last Friday of the month the banks ly total is about 78 per cent larger than in September, 1916, and about 42 per cent in held a total of $21,061,700 of discounted paper, excess of the October, 1915, total. Discounts compared with $25,953,000 about a month of commodity paper for the present calendar before and $30,448,000 on the corresponding year totaled $14,949,500, of which over 87 per date in 1915. About 47 per cent of the total cent was handled by the Richmond and Atlan- represents the holdings of the 3 southern banks, 712 FEDERAL RESERVE BULLETIN. as against 60 per cent about the end of September and over 64 per cent on the nearest date in the past year. Of the 7,626 member banks reported at the end of the month, only 383, or slightly over 5 per cent, availed themselves of discount privileges during the month. The largest number, DECEMBER 1, 1916. 92, is shown for the Chicago district, the total being made up of smaller banks in agricultural communities accommodated through the discount of farmers' paper. The number of rediscounting banks in the 3 southern districts was 159, compared with 213 reported the month before and 389 in October of the past year. Commercial paper rediscounted by each of the Federal Reserve Banks during the month of October, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS, fin thousands of dollars.] 'Over $1(K)!Over$250:Over )!O $500 Over $1,000 Over $2,500 J t o $250. to $500. to $1,000. to $2,500. to $5,000. Over $10,000. Total. Per cent. Banks. g'ft Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City.... Dallas San^Francisco.. 21 .1 Total.. 108 9.5 1.5 .9 3.1 3.3 20.8 11.2 17. 1.5 3.3 3.3 2.0 3.0 5.0 •4. 4.01 6.2 45.3! 92.6 4.2| 14.9 12.8 4. 4.8 4.3 10 18.5 25.7 62! 107.7 8.3 21!i 38.4 22. 48 84.3 162 128.7 1921 328.9 138115.4 1531 261.0 245 198.4 286 4 7 4 . " 20.0 44 75. 51.4 126.0 29.7 51 19.5 49 81. 9.3 10 15.1 61.7 158.9 33.51 47.7 370.3 366.8 418.5 164. 115.7 84.3 156.6 18.1 4 38 38! 17 89, 9 5 25 11 33.4 271.5 301.0 128.1 684.0 47.8 32.3 172.8 67.0 334.5 604.9 220.0 10.4 451.8 441,920.1 440.0 176 1,035.1 74 307." 156 209. 881 1,671.3 657 3,023.0 ,012 1,398.0 231 1,317.1! 18 948.2 259 j 1,307.4! 11.1 182! 253.5! 345.8 186 783.3 74 117.3 1.6 3.7 $7,0 4.5 8.7 5,900 1.9 2.6 4,000 3.9 1.8 1,340 22.3 14.0 1, 16.6 25.51 4,60i , 25.61-11.8 1,380 5.8! ii.ij 5^700 6.6! n . 0 5,050 4.6| 2.1 1,390 4.7 6.7 4,210 1.9 1.0 1,580 71.1 740 296.2 801633.51,0061,691.4 5231,997.0 252 1, 884.2 128 5,280.0 3,950 11,862.9 100.0J100.0 3,000 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. Banks. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total To $100. =. 0.7 .2 .1 .1 .i .2' Over $100 to $250. Over $250 to $500. 0.3 .1 1.3 .5 1.0 1.6 1.2 .4 1.2 .1 .2" 1.3 .3 2.6 .6 1.3 3.0 5.8 1.3 Over $500 Over $1,000 Over $2,500 Over $5,000 to $2,500. to $5,000. to $10,000. to $1,000. 1.1 2.5 27 10.9 7.7 3.8 6.7 .3 14.2 1.5 1.0 4.0 4.2 10.3 12 5 40.2 19.7 8.7 4.1 7.9 34.0 5.8 9.7 31.3 10.4 12.9 2.6 5.3 14.2 5.0 .6 11.7 2.5 14.0 15.4 10 9 22.8 22.2 12.1 29.9 12.6 8.8 3.2 12.8 15.9 16.2 10.0 9.1 51.9 3.7 33.3 20.0 15.4 12.8 22.0 57.1 16.8 16.0 Over $10,000. 75.9 58.4 71 6 4.9 27.0 63.6 4.8 27.8 72.5 4.4 44.2 44.5 Total. 100.0 100.0 100 0 100 0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 713 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. Commercial paper discounted during October by each of the Federal Reserve Banks, distributed by States, and as of date of discount. maturities [In thousands of dollars.] Paper maturingof Number of Number banks member accommobanks. dated. Districts and States. District No. 1—Boston: Connecticut Maine * . Massachusetts New Hampshire Rhode Island Vermont Total District No. 2—New York: Connecticut New Jersey New York . . . •. Total District No. 3—Philadelphia: Delaware New Jersey Pennsylvania Total District No. 4—Cleveland: Kentucky Ohio Pennsylvania West Virginia Total.... 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 . . . i ! i i After 30 but within 60 .days. After 60 but within 90 days. 12.2 7.2 7.1 After 90 days. Total commercial paper discounted. 56 67 158 56 17 48 3 74.1 2 , 3 300.0 402 8 374.1 51.6 7.2 7.1 15 129 482 1 2 8 28.5 428.2 11.9 19.9 1.6 29.0 505.8 9.0 1.2 31.8 30.1 973.2 626 11 30.6 456.7 517.7 28.9 1.2 1,035.1 24 72 535 4 5 29.4 .8 31.8 205.0 17.0 7.2 5.5 10.6 . 83.7 223.6 631 9 30.2 236.8 24.2 16.1 307.3 69 374 3 11 8.3 19.5 47.3 29.7 20.2 35.9 30.9 10.7 7.1 95.8 113.8 755 14 8.3 '66.8 49.9 66.8 17.8 209.6 15 96 81 79 145 104 1 4 21 20 13 3 37.0 2.2 50.0 135.9 166.1 105.5 7.5 23.3 4.8 169.4 122.2 47.1 4.5 64.2 25.7 415.4 206.7 53.6 20.5 1.5 5.8 2.4 87.5 30.5 759.2 503.0 258.6 32.5 520 62 89.2 415.0 371.3 786.1 9.7 1,671.3 93 55 110 21 18 92 18 15 14 5 2 14 66.5 119.2 112.8 101.2 604 7 20.9 94.4 240.7 102.9 177.6 138 0 9.5 4.4 5.0 94.5 14.2 11.6 901 6 75.9 24.8 76.9 10.8 531.0 234.3 297.9 1 646.3 101.6 211.9 389 68 79.0 1,123.2 1,053:2 740.9 26.7 3,023.0 317 16 10.0 1.6 14.8 69.1 63.0 90.6 74.9 37.4 236.8 11.2 5.2 47.9 17.0 299.8 18.6 2.8 61.2 31.9 299.9 .7 2.0 263.1 150.9 941.9 32.1 10.0 224.3 365.5 386.1 395.7 1,398.0 2.1 .4 28.5 82.8 6.5 74.5 19.8 460.5 1.6 .7 1.3 272.0 - 5.8 51.0 3.3 6.0 18.9 269.0 38.4 134.2 9.8 81.2 46.2 1,001.5 276.5 358.4 672.6 7.8 299 13 : Within 10 days. After 10 but within 30 days. 100.6 300.0 39.4 39.4 7.5 196 354 76 51 12 60 3 1 994 92 26.4 67 157 61 67 18 80 2 8 1.4 .4 20 4 470 28 3 2 3 6 1.8 1.6 4.8 440.0 2 0 4.4 5.8 6.2 1,317.1 714 FEDERAL EESEEVE BULLETIN. DECEMBER 1,1916. Commercial paper discounted during October by each of the Federal Reserve Banks, distributed by States, and maturities as of date of discount—Continued. [In thousands of dollars.] Paper maturing— of Number of Number banks member accommobanks. dated. Districts and States. After 30 but within 60 days. 21 537.0 532.5 68.5 98.0 1,236.0 4 5 15.3 9.1 3.4 i.7 6.2 12 0 32.4 39.0 760 30 552.3 545.0 92.8 11Y.3 1,307.4 121 222 54 194 9 302 36 1 4 3 12 3 3 .4 3.3 22.7 3.2 14.3 .8 2.1 3.0 4.3 49.4 9.2 1.5 3.1 20.8 8.6 61.1 14.6 14.9 8.9 46.5 16.1 127.3 34.9 19.8 16.6 44.3 69.5 123.1 253.5 40.0 5.3 104.8 21.4 115.4 11.7 10.5 130.3 112.3 11.2 81.4 16.6 7.2 115.2 5.3 245.4 90.3 342.3 i District No. 9—Minneapolis: Michigan... Minnesota Montana . . . North Dakota.. South Dakota' Wisconsin 32 285 75 155 125 88 Total District No. 10—Kansas City: Colorado Kansas Missouri . Nebraska New Mexico . Oklahoma Wvoniin£' . . . . 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 2.5 11.1 2.6 938 , . . .. . . 1 i . ... . 22.6 i 6 11 28 33 543 1 5 2 21 621 29 40.0 246.9 152.5 204.9 139.0 783.3 5 1 8.2 34.2 12.3 49.4 6.2 7.0 110.3 7.0 .6 . 8.2 34.2 12.3 49.4 13.2 117.3 ,1 7 261 58 10 82 23 78 520 Total After 60 I but I After 90 within 90 days, days. ; Total commercial paper discounted. After 10 but within 30 days. Within 10 days. RECAPITULATION. [In thousands of dollars.] Paper maturing— Districts and cities. No. 1—Boston No. 2—New York No. 3—Philadelphia.... No. 4—Cleveland No. 5—Richmond No. 6—Atlanta No. 7—Chicago No. 8—St. Louis No. 9—Minneapolis No. 10—Kansas C i t y . . . No. 11—Dallas No. 12—San Francisco., Total for October.. Per cent Total for January-October, 1916. Total for January-October, 1915.. Number Number of banks of member accom- Within banks. modated. 10 days. 402 626 631 755 520 389 994 470 760 938 621 520 374.1 30.6 30.2 8.3 89.2 79.0 26.4 1.8 7,626 687.8 5.8 40.0 8.2 After 10 but within 30 days. After 30 but within 60 days. 7.2 51.6 517.7 456.7 236.8 24.2 66.8 49.9 415.0 371.3 1,122.2 1,054.2 224.3 • 365.5 276.5 358.4 552.3 545.0 16.6 44.3 246.9 152.5 34.2 12.3 After 60 but within 7.1 28.9 16.1 I 66.8 ! 786.1 i 740.9 386.1 672.6 92.8 69.5 204.9 49.4 After 90 days. 1.2 17.8 9.7 26.7 395.7 7.8 117.3 123.1 139.0 13.2 3,699.9 31.2 3,502.5 29.5 3,121.2 26.3 851.5 7.2 15,220.2 28,775.4 20,952.7 30,056.7 46,523.8 36,709.0 45,270.5 15,488.8 14,924.3. Total commercial paper dis- Per cent, counted. 440.0 1,035.1 307.3 209.6 1,671.3 3,023.0 1,398.0 1,317.1 1,307.4 253.5 783.3 117.3 11,8 126,250.1 127,671.3 3.7 8.7 2.6 1.8 14.0 25.5 11.8 11.1 11.0 2.1 6.7 i.O 100.0 100.0 715 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, 1915, date of first discount, to Oct. 31, 1916. Federal Reserve Bank. Total to Dec. 31, 1915. October, 1916. Total for first 10 months in 1916. Total to Dec. 31, 1915. Federal Reserve Bank. | Total October, for first 1916. | 10 months in 1916. ""I Boston New York Philadelphia Cleveland Richmond Atlanta (including New Orleans branch) Chicago.. * $14,300 $5,700 4,900 450,500 1,007,100 800" 29,900 147,000 37,700 $49,900 5,600 65,600 170,100 1,134,400 St. Louis Minneapolis... Kansas City... Dallas San Francisco. 769,000 8,200 Total. $167,800 $75,500 I 87,800 160,800 74,200 70,800 | 7,200 | $516,800 600 190,900 248,900 39,300 1,958,800 I 383,200 ! 3,199,300 Commodity paper discounted by each Federal Reserve Bank from Sept. 8, 1915, date of first discount, to Oct. 81, 1916. Federal Reserve Bank. Richmond Atlanta (including New Orleans branch) , St. Louis : Minneapolis Commodity Total to Dec. 31, 1915. •; October, 1916. Total for first 10 months in 1916. $2,881,400 $370,200 $6,445,400 7,032,300 99,800 25,300 1,560,600 972,500 6,567,500 1,219,000 19,800 Kansas City Dallas San Francisco. Beans Bran Coffee Cotton Flax Flour Hay . . . Hops Maize Oats Richmond. $6,399,700 Atlanta (including New Orleans branch). $500 6,800 125,000 5,391,800 ,, St. Louis. Minneapolis. $1,074,000 Total $17,800 $360,000 225,200 112,600 | 10,315,100 2,921,100 14,949,500 Kansas City. Dallas. $218,200 San Francisco. 5,000 7,600 10,500 24,000 112,600 14,949,500 $300 64,200 7 666 41,100 6,000 $360,000 4,600 858,800 8,100 6,445,400 j 6,567,500 i ib 8oo 145,000 1,219,000 19,800 360,000 225,200 Total. $500 6,800 125,000 13,084,000 3,000 140,000 400 64,200 9,900 30,200 360,000 47,100 5,000 7,600 886,100 179,700 400 Oil . . . . Total for first 10 months in 1916. $239,100 37,200 $3,666* 2,900 29,200 Peanuts Prunes Raisins Wheat Miscellaneous October, 1916. the ten months ending Oct. 31, 1916, distributed by 146,666 .... i j j Total paper discounted by each Federal Reserve Bank during classes. Class. Total to Dec. 31, 1915. Federal Reserve Bank. 1,000 Member banks' collateral notes discounted by each Federal Reserve Bank since Sept. 11, 1916, date when first special rate ' became effective, to Oct. 31, 1916. Federal Reserve Bank. Boston New York. Philadelphia Cleveland Richmond Atlanta (including New Orleans branch) October, 1916. $315,000 125,000 220,000 20,000 416,000 461,500 Total SeptemberOctober, 1916. $315,000 125,000 245,000 370,000 876,000 602,350 Federal Reserve Bank. Chicago St. L o u i s . . . . Minneapolis. Dallas Total. ; Total SepOctober, I tember1916. : October, ! 1916. $92,400 500,000 135,600 $92,400 200,000 500,000 220,000 2,284,900 3,545,750 716 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. Amounts of discounts of commercial'paperheld by each Federal Reserve Bank on Oct. 27,1916, distributed by maturities. Paper maturing— Federal Reserve Bank. After 10 After 30 After 60 Within 10 but within but within but within 30 days. 60 days. 90 days. Boston New York Philadelphia...... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $204,300 171,300 248,600 91,400 1,081,100 713,300 407,700 423,800 392,400 107,500 705,300 $184,200 513,500 43,100 102,100 975,400 765,300 447,900 354,300 1,148,200 128,500 801.800 55,100 $74,800 404,300 50,300 103,400 1,080,800 978,600 1,037,100 967,100 576,000 250,900 809,600 72,800 $7,400 3,200 12,300 52,700 613,300 518,900 527,500 624,100 239,900 141,900 543,000' 60,600 Total Per cent Amounts held on Oct. 29,1915 Per cent 4,580,000 21.7 6,179.4 20.3 5,519,400 26.2 7,312.2 24.0 6,405,700 30.4 9,981.1 32.8 3,344,800 15.9 4,872.4 16.0 After 90 days. $2,900 5,300 7,700 19,800 520,900 27,700 176,500 169,300 268,700 13,000 Total. $470,700 1,092,300 357,200 354,900 3,758,300 2,995,900 2,941,100 2,397,000 2,533,000 798,100 3,128,400 234,800 1,211,800 21,061,700 5.8 2,102.9 ""30,"448"6 Per cent. 2.2 5.2 1.7 1.7 17.8 14.2 14.0 11.4 12.0 3.8 14.9 1.1 100.0 100.0 100.0 100.0 717 FEDERAL RESERVE BULLETIN. DBCSMBBE 1,1916. ACCEPTANCES. Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file on dates specified, distributed by classes of accepting institutions. [In thousands of dollars.] Bankers' acceptances. JBankers' acceptances. Trade accept- Total ances bought acceptin open ances. market. Nonmember banks. Date. Member Trust banks. companies. 1915. Feb. 22 Apr. 5 May 3 June 7 July3....... Aug. 2 Sept. 6 Oct.4 Nov. 1 Dec. 6 93 3,653 5,038 5,242 4,342 5,350 6,087 9,000 8,477 12,311 7,820 8,189 4,516 5,267 5,407 6,305 4,898 4,331 5,172 1916. Jan. 3 Jan. 10....... Jan. 17 Jan. 24 Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Mar. 6 Mar. 1 3 . . . . . . Mar. 20 Mar. 27 Apr. 3 . . . Apr. 10 Apr. 17 Apr. 24 Mayl 15,494 16,492 16,908 16,348 15,834 15,681 17,581 17,661 17,436 17,182 20,323 20, £63 21,128 21,000 22,239 22,135 23,566 24,875 7,160 8,057 7,655 8,070 8,174 7,876 7,985 8,194 8,755 8,670 10,032 11,280 12,864 13,573 14,864 15,028 15,196 15,400 State Private banks. banks. Total, 93 11,593 13,347 9,960 9,770 11,129 12,884 14,373 13,265 18,154 20 132 253 275 110 110 192 161 352 472 343 204 396 93 11,593 13,347 9,960 9,770 11,129 12,884 14,373 13,265 18,154 362 370 425 363 356 336 347 392 408 408 470 408 411 473 476 564 584 585 822 938 1,010 1,441 1,510 1,456 1,851 1,841 1,841 1,781 1,631 2,467 3,078 3,262 3,405 3,442 3,504 3,430 23,838 25,857 25,998 26,222 25,874 25,349 27,764 28,088 28,440 28,041 32,456 34,718 37,481 38,308 40,984 41,169 42,850 44,290 10 10 10 180 180 180 489 528 460 460 462 546 678 629 722 874 1,321 1,438 1,477 23,838 25,857 26,178 26,402 27,054 25,838 28,292 28,548 28,900 28,503 33,002 35,396 38,110 39,030 41,858 42,490 44,288 45,767 Nonmember banks. Date. May May May May Member Trust banks. companies. 1916. 8 15 22 29 25,058 15,750 26,633 15,372 26,639 16,490 26,104 16,541 Junes 24,680 •17,029 June 12 27,354 19,209 June 19 32,011 19,490 June 26 33,155 18,722 Julys 32,989 18,921 July 10 34,144 20,201 July 1 7 . . . . . . 40,497 22,309 July 24 41,514 22,327 July 31 41,395 21,437 Aug. 7 39,695 19,060 Aug. 14 41,536 18,144Aug. 21. , . 43,058 19,849 Aug. 28 43,061 20,716 Sept. 4 41,413 20,356 Sept. 11 39,766 20, 747 Sept. 18 42,533 22,105 Sept. 25 40,309 22,636 Oct. 2 37,798 21,782 Oct. 9 36,957 23,195 Oct. 16 37,655 23,684 Oct. 23: 39,694 26,281 Oct. 30 37,993 27,951 Nov. 6 37,770 29,474 Nov. 13 39,494 28,434 Nov. 20 43,173 31,237 Nov. 27 46,118 32,527 State Private banks. banks. 671 773 690 690 644 622 560 552 471 620 593 610 724 738 754 736 734 " 726 760 743 711 712 705 784 867 733 1,014 1,383 1,670 1,704 3,493 4,960 6,038 5,895 7,007 7,865 9,067 11,009 11,830 11,827 13,193 12,977 13,619 13,940 13,443 12,623 12,673 12,491 11,531 11,443 10,795 9,944 10,251 10,230 10,718 11,829 12,147 12,802 13,854 14,636 Trade accept- Total ances bought acceptTotal. in open ances. market. 44,972 47,738 49,857 49,230 49,360 55,050 61,128 63,438 64,211 66,792 76,592 77,428 77,175 73,433 73,877 76,266 77,184 74,986 72,847 76,824 74,451 70,236 71,108 72,353 77,560 78,506 80,405 82,113 89,934 94,985 1,518 1,635 2,006 2,037 2,208 2,310 2,054 1,958 3,422 3,052 3,685 3,651 3,722 4,225 4,387 3,748 3,815 3,673 2,676 2,673 2,796 2,306 2,048 1,897 1,723 2,468 2,378 3,425 3,721 3,979 46,490 49,373 51,863 51,267 51,568 57,360 63,182 65,396 67,633 69,844 80,277 81,079 80,897 77,658 78,264 80,014 80,999 78,659 75,523 79,497 77,24"7 72,542 73,156 74,250 79,283 80,974 82,783 85,538 93,655 98,964 Amounts of acceptances held by each Federal Reserve Bank at close of business on Fridays, Oct. to Nov. U, 1916, distributed by maturities. [In thousands of dollars.] Within 10 days: Oct 27 Nov. 3 Nov 10 Nov 17 'Nov. 24 From 11 to 30 days: Oct 27 Nov. 3 Nov 10 Nov. 17 Nov. 24 . . From 31 to 60 days: Oct 27 Nov 3 Nov. 10 Nov 17 Nov 24 From 61 days to 3 months: Oct. 27 Nov 3 Nov. 10 Nov 17 Nov 24. . Total acceptances held: Oct 27 Nov. 3 Nov 10 Nov. 17 Nov ?4 ... Minneapolis. Kansas City. 812 521 907 954 609 1,404 549 169 459 359 551 413 91 273 471 579 466 155 93 227 247 669 736 528 1,033 949 1,383 1,501 933 1,263 1,313 ,61 735 778 1,266 1,585 423 501 622 574 454 344 222 302 277 271 372 652 672 748 651 1,602 1,880 2,035 2,052 2,190 2,461 2,725 3,100 2,651 3,187 2,082 2,559 2,787 2,109 2;262 1,154 1,198 1,240 1,349 1,655 1,854 1,346 1,334 1 517 l'l74 510 230 285 215 66 1,260 1,575 1,543 1,520 1,229 1,804 1,416 1,176 1,340 1,023 1,197 950 830 1,021 800 6,812 6,212 6^204 6,539 6,893 1,826 1,601 1,438 1,444 963 3,807 4,446 4,446 4,803 4,993 6,460 6,163 6,116 6,208 6,132 5,444 4,793 4,564 4,855 5,006 Cleveland. Richmond. Atlanta. 678 1,649 2,511 1,199 2,587 3,184 1,973 1,446 1,465 3,110 1,836 1,726 508 971 1,553 1,304 649 389 488 1,051 225 238 276 255 340 198 625 3,635 3,896 3,646 4,694 2,493 3,310 4,058 4 865 5,964 5,554 1,990 2,107 2 697 3,593 4,004 907 1,392 1,673 2,175 1 628 719 481 481 4,297 2 707 4,106 3,305 . 3,887 8,280 9 562 11,012 13,500 15,661 5,262 5 493 5,570 5,877 5,528 2,747 2 825 2,808 2,359 3,040 1,800 9,771 1 828 10,382 3,399 11,003 4 086 11 119 4,372 9,971 3,329 2,336 2,232 2 134 2,223 12,417 11,662 11 007 12,575 13,308 Boston. Acceptances maturing— St. Louis. New York. Philadelphia. 10,410 10,080 13 662 13,284 13,339 24,545 25,975 28 326 32,048 34.296 481 Chicago. Dallas. San Francisco. Total. 6 1,364 378 334 581 1,169 12,213 8,817 6,850 7,162 11,767 6 189 339 352 802 1,445 1,718 1,873 2,404 14,943 17,080 18,432 23,051 21,254 639 593 840 994 1,014 356 377 198 162 446 3,404 4,325 4,897 4,921 6,026 32,656 34,896 39,265 40,027 45,547 910 627 576 677 519 651 613 370 339 301 354 344 449 547 312 2,834 2,642 3,169 3,034 1,535 26,274 24,289 26,366 27,549 23,524 3,038 2,739 2,529 2.873 3,099 2,213 1,894 1,667 1,703 1,813 710 727 836 1,048 1,116 8,404 8,790 10,118 10,409 11,134 86,086 85,082 90,913 97,789 102,092 718 FEDERAL RESERVE BULLETIN. DECEMBER 1, 1916. Distribution by maturities of acceptances bought in open market by each Federal Reserve Bank during the calendar year 1915, and the first 10 months of 1916. [In thousands of dollars.] Acceptances m a t u r i n g - New" Boston. York. Within 30 days: Calendar year, 1915.. 6 months ending June, 1916 . . . July,1916 August, 1916 191 September, 1916 163 October, 1916 704 Total for 10 months, 1916 After 30 but within 60 days: Calendar year, 1915..". , 2,137 6 months ending June, 1916 . . . | 1,433 July,1916 1-..! 4 August, 1916 | 87 September, 1916 ! 723 October, 1916 .• I 100 Total for 10 months, 1916 | 2;347 After 60 days, but within 3 months: ' 11,471 Calendar year, 1915 6 months ending June, 1916... 24,049 1,391 July,1916 4,062 August, 1916 3,787 September, 1916 2,180 October, 1916 35,469 Total for 10 months, 1916 Total acceptances bought: 14,105 Calendar year, 1915 6 months ending June, 1916 . . . 25.832 1,395 July,1916 4,340 August, 1916 4,673 September, 1916 2;280 October, 1916 38,520 Total for 10 months, 1916 Philadelphia. Atlanta (includ- ChicaCleve- RK ii c nh- ing New land. mond. , Orleans go. I branch). 1,246 4,728 2,038 1,477 317 155 8,715 695 4,552 754 983 634 231 7,154 101 322 402 41 20 2,377 5,063 1,169 1,101 I 1,227 I 1,233 9,793 1,464 4.016 739 609 1,934 1,750 9,048 746 1,267 406 855 489 846 3;863 22,211 34,435 11,161 5,508 6,940 10,405 68,449 785 5,406 2,116 10,959 5,472 3,556 2,855 2,069 1,257 4,023 2,278 2278 3,981 2,344 24,588 14,206 25,834 7,565 2,963 44,226 19,527 7,061 14,368 5,049 3,663 3,661 2,153 6,591 2,787 11/ 5,962 3,190 86,957 40,790 18,854 579 905 400 1,781 7 270 San Minne- Kansas FranLouis. apolis. City. Dallas. cisco. 103 156 133 480 617 253 3,665 | 1,140 300 19 261 8 250 339 90 948 816 1,840 849 362 871 148 4,070 69 71 65 28 57 94 374 1,151 294 382 887 441 3,155 191 630 183 459 216 1,552 311 187 138 1,095 1,219 2,500 1,262 827 702 1,035 6,326 1,536 1,635 297 585 1,120 46 4,810 1,324 2,126 5,389 4,321 2,036 404 1,335 666 1,190 1^696 1,561 1,977 2,772 1,781 6,363 13,195 11,034 250 1,540 1,205 446 2,827 960 6,978 72 5,782 1,801 2,657 7,362 5,472 412 3,277 2,401 916 1,752 1,717 2,146 2,867 2,448 2,320 2,920 2,222 8,451 18,178 14,260 1,455 3,151 1,334 1,053 1,032 1,373 7,943 1,788 2,103 961 62 46 749 375 2,193 250 ""238" I I ! j 787 248 942 3,612 1,098 463 1,137 4,801 61 539 152 21 426 i 1,180 11,553 4,805 3,719 4,118 717 24,912 750 2,299 619 759 474 1,009 5,160 9,057 19,380 4,219 4,978 8,179 6,826 43,582 50 "n Total for system, 149 227 358 358 2,419 52,808 5,847 96,733 2,628 27,479 500 1,349 19,750 2,068 24,790 *388" 4,981 33,351 16,873 202,103 3,230 64,845 8,685 127,666 3,399 36,503 649 2,576 28,447 227 2,542 37,087 726 6,011 40,894 1,652 23;213 270,597 50 Amount of short-term investments (municipal warrants) held by each Federal Reserve Bank at close of business on Fridays, Oct. 27 to Nov. 24, distributed by maturities. [In thousands of dollars.] Warrants m a t u r i n g - Within 10 davs: Oct. 27..I Nov. 3 Nov.10 Nov.17 Nov.24 From 11 to 30 days: Oct. 27 Nov.3 • Nov. 10 Nov.17 Nov.24 ..... From 31 to 60 days: Oct. 27 Nov.3. Nov. 10 Nov. 17 Nov.24 From 61 to 90 days: Oct. 27 Nov.3 Nov. 10 Nov. 17 Nov.24 From 91 days to 6 months: Oct. 27 Nov.3 Nov. 10 Nov. 17 Nov.24 Total mimicipal warrants held: Oct. 2 7 . . . . Nov. 3 Nov. 10 Nov. 17 Nov. 2 4 . . . New Phila- CleveBoston, York. delphia. land. 1,717 889 387 75 Richmond. Atlanta (including New Orleans). Chicago. San Minne- Kansas St. Louis. apolis. City, Dallas. Francisco. 1,281 465 327 50 221 1,435 811 894 1,751 1,780 1,076 590 407 166 778 419 235 377 322 251 122 172 75 151 50 310 471 751 5,187 1,000 662 375 467 187 1,332 3,904 3,238 2,612 1,647 583 427 1,011 1,128 937 365 1,413 1,281 220 90 607 1,139 1,278 1,177 540 412 343 96 146 658 648 668 45 507 276 276 129 216 3,357 2,370 983 858 723 1,142 1,196 457 340 354 1,220 141 40 685 1,303 1,132 676 646 571 156 243 213 357 357 256 177 277 302 195 713 77 152 367 442 218 26 26 76 76 685 736 736 76 77 571 67 67 82 82 258 258 479 494 569 492 492 368 405 56 56 57 57 906 867 877 939 995 279 279 3,738 2,262 1,794 1,467 1,392 7,636 6,843 5,336 4,956 8,404 3,280 2,170 1,878 1,651 1,670 4,611 3,968 3,828 3,671 3,637 291 291 1,665 278 277 278 2 118 406 Total. 548 192 127 151 141 8,635 3,536 3,263 2,994 9,141 151 152 111 68 220 420 328 1,242 1,166 1,075 5,018 9,031 9; 285 7,667 4,806 183 122 102 112 220 220 160 152 15 1,216 1,320 279 398 9,799 7,086 3,211 3,672 3,541 358 255 255 76 102 38 38 90 90 12 12 38 37 498 336 336 167 67 3,401 1,800 2,263 1,639 1,518 181 181 181 486 84 34 34 34 34 371 333 333 19 6 36 36 36 171 129 129 129 129 3,037 2,645 2,668 2,623 3,157 3,795 3,109 2,609 2,252 2,457 1,429 1,110 975 623 1,609 1,463 1,263 1,193 1,208 562 465 470 344 308 2,853 2,305 2,113 2,011 1,910 29,890 24.097 20,691 18,595 22,163 25 D E C E M B E R 1, 719 FEDERAL RESERVE BULLETIN. 1916. Distribution by sizes of acceptances bought in the open market by all the Federal Reserve Banks during the month of October, and for the first 10 months of 1916. To $5,000. To $100,000. Over $100,000. Total. Acceptances bought in open market. October, 1916: Bankers' acceptances. Trade acceptances 729j$12,188,630 263j$12,054,571 111 144,967! 2j 87,904 Total.... Per cent. 12,333,597 30.2 Total acceptances bought during: September, 1916 August, 1916 July, 1916 June, 1916.. May,1916 April, 1916 March, 1916 February, 1916 January, 1916 5241 1,304,439 327j 916,682 5261 1,633,337 562: 1,533,168 335! 1,012,891 269! 847,351 288; 941,908 267] 789,675 194! 546,959 445 517,940 660! 11194,706 23 888,457 4221 Y,835,547 495| 4', 026,432 12,830, 111 739,638 737 " 238,168 853 960,425 755,224 312 219 420,116 281 305,281 313 578,432 983,554 356 234 548,326 159 307,989 196 113,726 720,758 217 220 2,0931$39,194,629 2 135 l,699,064 265 12,142,475 29.7 165 131 185 191 108 94 109 49 47 2,228 40,893,693 4.2 100.0 6,836,652 371 7,197,162 1,909! 37,086,508 5,744,106 35i 6,721,610 1,216J 28,446,405; 5,065,021 5,286,683 2,112] 36,503,643! 6,763,226 5,913,336 2,463 42,397,149! , , 5,698,417 4,221,630 1,059 2,697,334 3,332,8501 1,000 ,21,911,4671 18,499,116! 5,095,263 3,779,2231 1,071 22,918,051! 1,613,614 3,326,375 " " 12,416,830: 707 1,284,593 9,523,513| 6,835,609 5,340,003 7,662,059 8,209,613 3,262,880 3,896,184 4,539,671 1,830,851 1,857,477 T o t a l acceptances bought during 10 months ending October, 1916 3,78911,110, h86|3,654 29,822,811 4,878 83,554,6241,344 55,576,822 566 47,789,141 229J42,742,39114,460,270,596,375 1 Of the above total, bankers' acceptances totaling $34,700,582 were based on imports and exports, and $4,494,047 on domestic trade transactions. 2 Of the aoove total, trade acceptances totaling $156,947 were based upon domestic trade transactions, and $1,542,117 were drawn abroad on importers in the United States and indorsed by foreign banks. Total investment operations of each Federal Reserve Bank during the month of October, 1916, and for the 10 months ending October 31, 1916 and 1915. [In thousands of dollars.] Bank. Bills bought in open Bills market. discounted Bankers' Trade for member accept- accept- Total. banks. ances. ances. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St *;Louis Minneapolis... Kansas City... Dallas San Francisco. 440.0 1,035.1 307.3 209.6 1,671.3 3,023.0 1.398.0 1 317 1 1*307.4 253.5 783.3 117.3 2 279 8 11,'439! 7 *"*353."i 5,748.6 213.1 7 fi 3 181 7 960.0 156 9j 2,162.8 39.7 2,880.2 2 221 9 1,372.9 1,137. 0 726.5 5,083.5 1,928.6 2,279.8 11,792. 8 5,961.7 3,189.3 960.0 2 31Q 7 2,919.9 2,221.9 1,372.9 1,137. 0 726.5 6,012.1 investment Municipal warrants bought. United States bonds and Treasury notes. Total operations. All Total. State. other. City. 170.0 3,462.0 1,100.3 2,269.3 50.8 813.1 125.0 527.0 312.2 50.0 1,150. 6 Total: Oct., 1916... 11,862.9 39,194.6 1,699.0 40,893.6 10,030.3 6,340.0 Oct., 1915... 15,050.8 6,340.0 2 per cent. 180.0 10.0 100.7 3,562.7 100.0 1,200.3 3.1 2,272.4 50.8 5.0 5.6 816.1 2.0 1.0 125.0 1 527.0 j 312.2 50.0 11 IS-4 1,166.0 2.0 3 per cent. 2*6* 4 per 1-year cent. notes. Total. 250.0 250.0 2.06 3.6 235.2 10,267.5 2.0 1,370.1 1,055.1 5 06 145.0 ! 250.0 10 months ending Oct. 31, 1916 126,250.1 258,807.1 11,790.2 270,597.3 74,207. 43,656.9 826. 5 78,690. 8 37,481.25 3,647.88 4,153.0 10 months endins; Oct. 31, 53,647. 5 7,911.85 2,465.3 44,136.0 1915 127,671.3 44,136.0 1916 1915 2,186.7 2,437.2 1,098.2 1,226.8 3,260.2 3,466.1 2,062.3 1,951.6 934.3 2,301.8 2,364.2 671. S 2,899.8 16,640.6 7,469.3 4.06 5,675.36 2,682.1 5,347.7 5,134.0 3,664.0 3.210.3 3.0 1,702. 7 1,559.8 7,295.4 257.06 63,281.06 23,961.0 1,200.1 300.0 45,582.13 521,120.33 10,377.15 235,831. 95 Sales of United States bonds and 1-year Treasury notes during the month of October, 1916. [In thousands of dollars^] i At- | Chilanta. | cago. San Minne- Kansas St. Louis. apolis. City. Dallas. Francisco. New York. Philadelphia. 380. 0 130 0 50.0 son 0 110.0 j 160.0 20.0 25.0 56.0 124.0 40.0 i 360.0 130.0 550. 0 110.0 ! 180.0 20.0 81.0 124.0 1,575.0 Boston. Cleve- Richland. mond. i 3 per °spt bonds Total sales 40.0 Total. 25.0 1.050:0 ' 500. 0 7'20 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. FEDERAL. RESERVE BANK. STATEMENTS. Resources and liabilities of each Federal Reserve Banh and of the Federal Reserve System at close of business on Fridays, Oct. 27 to Nov. 24, 1916. RESOURCES. [In thousands of dollars.] 4 Gold coin and certificates in vaults: Oct. 27 Nov. 3 Nov.10.... 1 Nov. 17 Nov.24 Gold settlement fund: Oct. 27 Nov.3 -•Nov. 10 Nov.17 Nov.24...'. Gold redemption fund: Oct. 27.. Nov.3 Nov. 10 Nov. 17 Nov.24 Legal-tender notes, silver, etc.: Oct. 27 Nov.3.. Nov. 10 : Nov. 17 Nov.24 Total reserve: Oct. 27 Nov.3 Nov.10 Nov.17 • Nov.24 Five per cent redemption fund— F. R. Banknotes: Oct. 27 Nov.3 Nov.10 s Nov. 17 Nov.24 Bills discounted—members: Oct. 2 7 . . . . Nov.3 Nov. 10 Nov.17 Nov.24 Bills bought in open market: Oct. 27 Nov.3 , Nov.10 Nov.17 -Nov.24 United States bonds: Oct. 27 Nov.3 Nov.10 Nov. 17 Nov.24 One-year Treasury notes: Oct. 27 Nov.3 Nov. 10 Nov.17 Nov.24 Municipal warrants: Oct. 27 Nov.3 Nov.10 Nov. 17 Nov.24 Federal Reserve notes, net: Oct. 27 Nov.3 , Nov. 10 Nov. 17 Nov.24 Due from other F. R. Banks, net: Oct. 27..." Nov.3 Nov. 10 Nov. 17 Nov.24 Boston. New York. Philadelphia. 9,764 10,798 11,421 13,518 13,696 164,189 166,584 157,476 175,243 161,552 19,443 17,317 15,474 18,755 17,690 ! I ! ! | 15,225 13,758 12,290 8,654 8,038 10,076 12,161 5,031 18,380 6,680 1,891 9,151 13,869 13,961 15,537 i 11,953 | 12,195 16,455 14,539 19,798 5 5 5 250 250 250 250 250 702 5,231 424 1,893 210 2,859 159 12,328 183 13,977 25,696 23,512 19,674 25,843 32,264 183,428 177,381 170,661 192,852 182,459 Cleveland, 50 j 50 50 50 50 444 398 237 311 210 Richmond. Atlanta. 4,395 4,360 4,364 4,471 4,500 4,183 4,176 4,166 5,360 5,420 Chicago. St. MinneLoins. Kansas City. Dallas. San Total Franfor cisco. systems 26,396 29,449 27,928 27,004 27,808 5,003 5,440 6,215 7,680 8,366 5,937 5,750 6,266 7,230 7,354 4,101 4,235 4,179 4,613 4,660 3,582 3,726 4,086 4,129 4,182 11,272 10,909 8,581 9,205 12,358 274,001 278,157 265,897 293,441 283,730 2,455 22,658 ! 18,615 i "" 'nn 4,188 22,129 19,490 797 23,777 19,632 18,951 3,652 26,941 22,289 5,767 30,230 6,281 8,097 8,967 6,040 4,954 5,285 7,377 8,197 11,617 13,005 12,870 14,072 19,465 10,344 11,694 13,918 11,733 14,308 2,836 1,463 3,795 5,543 8,581 122,587 127,641 139,571 140,821 174,801 117 120 115 113 121 158 156 160 157 157 10 10 10 10 10 1,391 1,394 1,368 1,383 1,404 170 231 171 163 224 61 83 108 70 53 7,312 16,580 17,974 15,736 15,413 15,741 16,233 16,144 69 66 64 60 . 58 1,118 1,130 1,111 * 1,074 1,024 4,778 212 230 223 209 203 220 215 206 247 269 200 200 200 200 200 70 67 55 52 51 30 30 30 30 30 77 48 49 72 65 380 348 372 341 296 485 974 849 649 527 1,056 1,097 1,105 1,155 1,167 216 207 211 207 200 21,828 28,876 23,299 7,238 26,916 28,804 24,128 8,927 29,630 33,371 24,268 5,541 33,077 31,906 23,703 9,600 33,487 37,024 27,057 11,752 49,739 12,410 11,137 15,871 14,254 14,179 407,955 52,752 14,701 11,272 17,411 15,807 12,465 414,076 52,754 16,342 13,884 17,194 18,335 12,494 414,148 54,794 14,927 15,664 18,849 16,182 14,828' 452,225 58,765 14,362 16,572 24,294 18,871 21,002 477,909 370 370 370 370 370 50 50 •80 100 100 420 420 450 470 470 471 410 1,517 2,916 2,783 1,092 1,085 1,071 1,198 972 357 332 516 513 1,095 355 288 283 264 245 3,758 3,193 2,983 2,966 2,695 3,020 3,655 3,449 2,700 2,713 2,942 3,062 3,003 3,004 3,874 2,397 2,176 1,974 1,979 2,336 2,533 1,757 1,346 1,297 1,288 798 808 779 770 769 3,173 2,671 2,190 1,812 1,389 235 245 269 285 342 21,131 19,682 19,380 19,704 20,501 10,410 10,080 13,662 13,284 13,339 24,545 25,975 28,326 32,048 34,296 12,417 11,662 11,007 12,575 13,308 6,812 6,212 6,204 6,539 6,893 1,826 1,601 1,438 1,444 963 3,807 4,446 4,446 4,803 4,993 6,460 6,162 6,116 6,208 6,132 5,444 4,793 4,565 4,855 5,006 3,038 2,739 2,529 2,873 3,099 2,213 1,894 1,667 1,703 1,813 710 727 835 1,048 1,116 8,403 8,790 10,118 10,409 11,134 86,085 85,081 90,913 97,789 102,092 2,132 • 2,132 2,012 1,388 1,388 1,413 1,413 1,213 123 178 2,176 2,176 2,096 1,670 1,670 5,737 5,737 5,417 6,654 6,654 523 523 443 18 294 1,210 1,210 1,210 1,210 1,210 7,436 7,511 6,883 7,213 7,218 2,348 2,348 2,308 2,278 2,278 2,870 2,867 2,727 2,467 2,467 9,270 9,270 9,190 9,191 9,166 2,720 2,720 2,720 4,270 4,270 2,634 2,633 2,634 2,633 2,634 40,469 40,540 38,853 39,115 39,427 1,000 1', 000 1,000 1,000 1,000 1,205 1,205 1,205 1,205 1,205 1,174 1,174 1,174 1,174 1,174 718 718 718 618 618 1,070 1,070 1,070 i;070 1,070 824 824 824 824 1,517 1,517 1,517 1,517 1,517 891 891 891 891 891 700 700 700 700 700 963 963 963 963 963 705 705 705 705 705 600 580 500 500 11,435 11,367 11,347 11,167 11,167 3,738 2,262 1,794 1', 467 1,392 7,636 6,843 5,336 4,955 8,404 3,280 2,170 1,878 1,651 i;670 4,611 3,968 3,828 3,671 3,637 61 61 61 61 61 291 294 292 292 409 3,795 3,109 2,609 2,252 2,457 1,429 1,110 975 623 633 1,609 1,463 1,263 1,193 562 465 470 344 25 50 75 77 77 2,853 2,305 2,113 2,011 1.910 29,890 24,100 20,694 18,597 22,166 1,407 10,750 1,341 li 1,221 1 954 !' 824 1,137 .1,945 814 9, 862 2,406 >,534 520 599 642 904 342 390 367 316 294 1,711 1,891 2,332 1,702 1,356 16,846 17,749 17,613 14,256 15,414 1,524 1,912 4,237 2,664 7,928 6,754 2,071 4,532 2,415 5,403 225 133,197 134,778 i 35,065 i 59,773 1 43,263 1,299 1,306 1,071 1,067 1,028 372 796 430 1,708 791 3,798 4,666 4,019 4,412 9,569 8,443 8,244 15,833 9,638 1,208 817 1,164 1,032 904 1,239 6,323 5,218 5,495 7,533 10,057 i Items in transit, i. e., total amounts due from, less total amounts due to,other 1,523 2,904 1,717 3,757 3,512 -2,287 1,643 2,714 4,319 2,259 1,027 1,670 914 Federal Reserve Banks. 721 FEDEBAL BESEBVE BULLETIN. DECEMBER i, 1916. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays Oct. 27 to Nov. 24, 1916—Continued. RESOURCES—Continued. [In thousands of dollars.] All other resources: Oct. 27 Nov. 3 Nov. 10 Nov. 17 Nov. 24 ... Total resources: Oct. 27 Nov. 3 Nov. 10. Nov. 17. Nov. 24 Kansas City. New York. Philadelphia. 125 208 29 24 61 243 176 278 3,748 225 77 166 32 84 247 193 176 298 478 53 42. 138 132 61 395 599 144 147 251 424 271 385 544 160 347 260 300 229 319 39 37 46 28 41 197 168 141 194 203 46,116 42,890 41,723 56,538 55,457 232,154 230,812 228, 111 244,538 244,058 43,353 45,195 46,975 51,648 53,382 49,610 50,547 53,028 58,194 62,597 30,962 31,414 30,831 31,102 32,992 20,583 19,955 20,572 23,595 26,564 83,181 84,133 82,582 92,432 90,789 31,589 31,497 32,850 33,315 24,266 24,903 25,244 28,883 30,126 32,531 32,992 33,488 36,703 40,145 Boston. Cleve- Richland. mond. At- lanta. Chicago. St. MinneLouis. apolis. Dallas. 1,188 538 346 351 545 San ! Total Franfor cisco. system. 373 413 468 342 217 3,708 3,071 2,483 6,121 2,651 23,664 33,127 24,295 33,874 25,286 33,423 26,215 38,113 27,987 39,320 651,136 650,864 650,946 719,217 735,060 3,044 2,690 9 fiQ4 3 044 3,044 2,695 3,044 i 2,695 3,051 i 2,695 3,921 3,920 3,921 3,929 3,923 55,703 55,709 55,710 55,704 55,711 826 ' 1.826 1,709 816 1,720 1,640 448 1,643 2,678 2,875 2,007 2,344 2,282 29,982 28,686 23,339 25,171 26,319 16,945 17,490 16,829 19,760 22,100 26,502 27,047 27,456 31,800 33,070 551,918 552,386 556,462 622,254 637,072 LIABILITIES. [In thousands of dollars.] Capital paid in: Oct. 27 Nov. 3 . . Nov. 10 Nov. 17 Nov. 24 Government deposits: Oct. 27*.. . Nov. 3 Nov. 10 Nov. 17 . Nov. 24 Member bank deposits, net: Oct. 27 Nov. 3 Nov 10 Nov. 17 Nov 24 Federal Reserve notes, net liability: Oct. 27 Nov. 3 Nov .10 Nov, 17. Nov. 24 Federal Reserve bank notes in circulation: Oct 27 Nov. 3 Nov. 10 Nov. 17 Nov 24 Due to other Federal Reserve Banks, net: Oct 27 Nov. 3 Nov 10 Nov 17 Nov. 24 All other liabilities: Oct 27 Nov 3 Nov 10 Nov 17 Nov 24 Total liabilities: Oct. 27 . Nov. 3 •. Nov 10 Nov. 1 7 . . Nov 24 5,024 5,024 5,021 5,006 5,007 11,909 11,909 11,909 11,909 11,909 5,224 5,224 5,224 5,224 5,226 5,994 5,994 5,993 5,993 5,993- 3,340 3,340 3,340 3,340 3,341 2,479 2,479 2,479 2,479 2,480 6,679 6,681 6,682 6,682 6,683 2,794 2,794 2,794 2,794 2,794 2,605 2,606 2,608 2,609 2,609 1,668 1,358 929 2,583 2,584 4,178 2,517 3,462 2,974 3,070 3,919 4,015 3,975 3,328 3,400 1,399 1,460 1,463 1,463 1,526 3,904" 4,309 2,710 2,182 2,781 3,487 3,574 3,489 3,388 3,538 2,453 2,646 2,218 • 2,886 1,000 1,452 2,972 1,525 2,473 1,828 998 949 928 778 746 204 39,257 36,342 35,577 48,739 47,649 216,042 216,358 212,687 229,339 228,979 34,074 34,413 36,282 41,122 40,365 42,217 43,093 45,572 50,738 55,078 23,693 22,000 23,724 24,223 26,429 20,663 21,348 21,708 25,496 26,760 26,599 27,062 28,089 31,575 34,234 •19,649 20,650 21,507 22,867 24,537 12,228 11,349 12,142 13,840 16,259 3,924 3,097 3,249 2,676 2,298 2,352 2,272 2,414 3,839 4,234 74,049 75,234 74,889 82,755 81,603 9.203 1,031 1,039 '• 2 402 1,121 2,222 1,060 2,120 1,384 1,549 2,456 3,817 4,880 4,773 4,831 1.031 ' ...j 167 166 196 210 217 25 28 53 85 100 46,116 42,890 41,723 56,538 55,457 232,154 230,812 228,111 244,538 244,058 . . . . 235 136 135 147 146 152 43,353 49,610 45,195 ,50,547 .46,975 53,028 51,648 58,194 53,382 62,597 145 18 25 37 35 37 46 48 49 53 30,962 31,414 30,831 31,102 32,992 20,583 19,955 20,572 23,595 26,564 i Overdraft. 1,031 1,031 1,030 1,030 1,028 . 1 030 1 028 1,408 1 347 1,828 4 239 - 1^031 1.030 231 11,966 12,627 13,886 14,468 14,296 1,820 1,820 i I • 11 23 30 83,181 31,589 84,133 31,497 82,582 32,850 92,432 33,315 90,789 35,882 2 24,266 24,903 25,244 28,883 30,126 32,531 32,992 33,488 36,703 40,145 23,664 24,295 25,286 26,215 27,987 26 32 39 40 45 536 425 519 590 634 33,127 33,874 33,423 38,113 39,320 651,136 650,864 650,946 719,217 735,060 722 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. Circulation of Federal Reserve notes at close of business on Fridays, Oct. 27 to Nov. 24, 1916. [In thousands of dollars.] Chi- St Minne- Kansas! Louis. apolis. City. | San Total for Francisco. system. | 22,095 I 22,540 j 22,945 ! 23,349 | 23,805 3,175 3,170 3,159 3,152 3,148 13,916 14,797 15,751 16,734 16,722 15,415 16,593 17,151 17,723 18,423 10,368 11,014 11,477 11,466 11,443 234,876 240,534 247,873 255,702 258,081 1,169 1,249 1,107 1,082 1,299 1,306 1,071 1,067 1,028 891 530 467 574 516 817 1,164 1,032 904 1,239 509 501 519 580 256 1,711 1,891 2,332 1,702 1,356 20,254 20,596 20,261 17,032 17,633 I 20,926 21,291 21,838 22,267 23,117 1,876 1,864 2,088 2,085 2,120 13,025 14,267 15,284 16,160 16,206 14,598 15,429 16,119 16,819 17,184 17,767 17,733 18,627 19,020 19,344 25,240 8,657 24,908 9,123 24,663 9,145 24,730 9,764 24,809 10,087 214,622 219,938 227,612 238,670 240,448 3,175 3,170 3,159 3,152 3,148 10,569 10,450 10,404 11,387 11,375 15,415 16,593 17,151 17,723 18,423 16,736 16,694 17,506 17,960 17,960 23,037 10,368 22,506 11,014 22,441 11,477 22,610 11,466 23,260 11,443 219,502 225,060 231,339 238,458 241,566 1,711 1,891 2,332 1,702 1,356 16,846 17,749 17,613 14,256 15,414 New I Phila- Cleve- Rich- AtlanBoston. York. i delmond. ta. | phia. land Federal Reserve notes issued to bank: Oct. 27.. Nov.3 Nov 10 Nov.17 Nov.24 Federal Reserve notes in hands of bank: Oct. 27 Nov.3 Nov.10 Nov.17 Nov.24. Federal Reserve notes in circulation: Oct. 27 Nov.3 Nov.10 , Nov.17 Nov. 24 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Oct. 27 Nov.3 Nov.10 Nov 17 .' Nov.24 Carried to net assets: Oct. 27 Nov.3. Nov.10 Nov. 17 Nov 24 --Carried to net liabilities: Oct. 27 Nov.3 Nov 10 : Nov 17 Nov.24 I 11,121 11,071 11,336 11,280 11,230 8,797 8,714 8,674 8,580 8,465 81,831 ! 8,473 83,904 ! 8,939 86,032 10,291 86,032 89,176 12,255 13,163 1,407 10,750 ! 1,341 11,058 I 1,221 10,948 954 8,409 824 9,785 520 599 642 904 342 390 367 316 15,626 16,606 17,064 17,581 18;438 523 371 464 592 18,276 I 25,783 18,234 24,952 19,146 24,847 19,600 24,806 19,600 | 24,976 543 44 184 76 167 I 9,714 9,730 10,115 10,326 10,406 71,081 72,846 75,084 80,767 78,883 7,953 8,340 9,649 11,351 12,275 8,455 8,324 8,307 8,264 8,171 15,330 16,083 16,693 17,117 17,846 11,121 11,071 11,336 11,280 11,230 81,831 83,904 86,032 89,176 8,473 8,939 10,291 12,255 13,163 8,797 8,714 8,674 8,580 8,465 11,406 18,574 12,986 19,019 13,444 19,424 14,441 18,428 15,548 18,883 1,407 1,341 1,221 954 824 10,750 11,058 10,948 8,409 9,785 520 599 642 904 342 390 367 316 294 I 3,.924 3,097 3,249 2,676 2,298 i 1,299 1,306 , 1,071 1 067 ! 1,028 2,352 2,272 2,414 3,839 817 1,164 1,032 904 1,239 1,031 1,039 1,121 1,060 1,384 2,456 3,817 4,880 4,773 4,831 4,234 11,966 12,627 13,886 14,468 14,296 2,203 2,402 2,222 2,120 1,549 Statement of Federal Reserve Agents' accounts at close of business on Fridays, Oct. 27 to Nov. 24, 1916. [In thousands of dollars.] Philadelphia. Cleve- Richland. mond. Atlanta. Chicago. San Total St. Minne- Kansas for Louis. apolis. City. Dallas. Fran- system. cisco. 15,480 15,480 15,800 17,940 18,880 15,160 15,160 15,160 15,160 15,160 23,500 25,000 25,000 25,000 26,200 29,420 29,420 29,420 29,920 32,920 9,380 9,380 9,380 9,380 18,560 18,560 20,580 20,580 22,540 5,327 47,009 47,336 5,361 47,608 . 5,509 47,904 5,685 51,812 5,717 3,063 3,146 3,186 3,280 3,395 5,724 5,844 5,886 6,069 6,112 3,340 3,395 3,489 3,546 3,590 1,324 1,329 1,340 1,347 1,351 New Boston. York. Federal Reserve notes: Received from Comptroller— Oct. 27 .". Nov.3 Nov. 10 Nov. 17 Nov.24 Returned to Comptroller— Oct. 27 Nov.3 . Nov. 10 Nov. 17 Nov.24. Chargeable to Federal Reserve Agent— Oct. 27 Nov.3... Nov. 10 Nov. 17 Nov.24 In hands of Federal Reserve Agent— Oct. 27 Nov.3 Nov. 10 Nov.17.. Nov.24 24,880 24,880 24,880 24,880 24,880 5,739 6,329 6,564 6,620 6,670 148,400 148,400 153,400 153,400 153,400 19,141 101.391 18,551 103.; 064 18,316 105,792 18,260 105,496 18,210 101,588 10,153 10,119 10,291 12,255 13,163 19,560 17.160 19;760 16,320 12,920 1,680 1,180 8,020 7,480 6,980 6,980 6,980 12,097 17,776 26,080 12,014 19,1£6 26,025 11,974 19,114 25,931 11,880 18,931 26,374 11,765 20,088 29,330 3,300 3,300 3,300 3,300 3,300 2,150 2,5,50 2,050 1,350 1,650 3,485 2,986 3,025 5,525 1,984 2,203 2,249 •! 2,266 2,278 8,0,~6 16,576 8,051 16,357 8,040 18,331 8,033 18,314 8,029 20,262 4,881 4,881 4,881 4,881 4,881 2,660 1,560 2,580 1,580 3,540 21,000 23,220 21,000 23,220 22,500 j 23,220 22,500 I 24,220 22,500 24,220 665 687 729 757 757 1,731 1,773 1,861 1,907 1,9C7 20,335 20,313 21,771 21, 743 21,743 21,489 21,447 21,359 22,313 22,313 4,920 3,720 4,620 4,020 3,320 3,213 3,213 2,213 2,713 2,713 35,320 35,320 35,320 35,320 35,320 14,440 14,440 14,920 14,920 14,920 378,760 380,260 389,580 393,220 400,320 3,776 3,807 3,973 4,003 4,003 1,C12 1,526 1,543 1,554 1,577 81,194 82,736 83,937 84,938 89,169 31,544 ' 12,928 297,566 31,513 12,914 297,524 31,347 13,377 305,643 31,317 13,366 308,282 31,317 13,343 311,151 5,761 6,561 6, £00 6,511 6,341 2,560 1,900 1,900 1,900 1,900 62,fi90 56,990 57,770 52,580 53,070 723 FEDERAL RESERVE. BULLETIN. DECEMBER 1,1916. Statement of Federal Reserve Agents' accounts at close of business on Fridays Oct. 27 to Nov. 24,1916—Continued. [In thousands of dollars.] Issued to Federal Reserve Bank, net— Oct. 27 Nov.3 Nov. 10 Nov. 17 > Nov.24. Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notes— Gold coin and certificates on hand— Oct. 2 7 . . . . Nov.3 Nov. 10 Nov. 17 Nov. 24. Credit balances in gold redemption fund— Oct. 27 Nov.3 Nov. 10 Nov. 17 Nov.24 , Credit balances with Federal Reserve Board— Oct. 27 , Nov.3 Nov. 10 Nov. 17.. * Nov. 24 As security for outstanding notesCommercial paper— Oct. 27 Nov.3 Nov. 10 Nov. 17 , Nov.24 Total— Oct. 2 7 . . . . Nov.3 ! Nov. 1 0 . . . . . . : . . . . . . . . Nov. 17 Nov.24. Memorandum: Total amount of commercial paper delivered to Federal Reserve Agent— Oct. 27 Nov.3 Nov. 10 Nov. 17 Nov.24 San Total Minne- Kansas St. Franfor Louis. apolis. City. Dallas. cisco. system. New York. Philadelphia.- Cleveland. Richmond. Atlanta. • Chicago. 11,121 11,071 11,336 11,-280 11,230 81,831 83,904 86,032 89,176 8,473 8,939 10,291 12,255 13,163 8,797 8,714 8,674 8,580 8,465 15,626 16,606 17,064 17,581 18,438 22,095 22,540 22,945 23,349 23,805 3,175 13,916 3,170 14,797 3,159 15,751 3,152 16,734 3,148 16,722 10,500 10,500 10,800 10,600 10,600 78,815 81,215 83,614 87,053 85,853 3,820 3,820 3,820 3,820 3,820 8,140 8,140 8,120 7,940 4,560 4,560 ' >60 5,065 5,165 5,165 5,164 5,164 12,330 12,730 12,730 13,330 13,330 621 571 536 680 630 3,016 2,689 2,418 2,123 2,815 473 439 611 675 643 517 574 534 460 525 225 220 209 202 198 694 775 929 913 901 735 913 871 843 843 2,950 2,950 2,950 2,950 2,950 4,810 4,510 4,310 5,310 5,310 2,350 2,950 3,550 3,550 4,250 Boston. 15,415 18,276 25,783 16,593 18,234 24,952 17,151 19,146 24,847 17,723 19,600 24,806 18,423 19,600 24,976 10,368 11,014 11,477 11,466 11,443 234,876 240,534 247,873 255,702 258,081 I 4,180 4,— 5,860 7,760 8,700 11,121 11,071 11,336 11,280 11,230 81,831 8,473 83,904 8,939 86,032 10,291 89,176 12,255 13,163 8,797 8,714 8,674 8,580 8,465 3,460 3,460 406 486 444 341 348 > 964 1,409 1,314 1,258 1,213 11,000 12,500 13,000 14,100 15,200 13,050 13,050 13,550 13,710 14,210 4,220 3. " " 3,620 3,140 2,890 3,521 3,521 3,521 4,921 4,922 15,626 16,606 17,064 17,581 18,438 22,095 22,540 22,945 23,349 23,805 4,240 3,796 "716 3,507 3,058 3,525 3,523 3,534 4,933 4,930 3,347 4,347 5,347 5,347 5,347 3,175 3,170 3,159 3,152 3,148 13,916 14,797 15,751 16,734 16,722 3,348 4,348 5,348 5,347 5,349 15,415 16,593 17,151 17,723 18.423 4,270 4,270 4,270 4,270 4,270 924 790 790 11,500 11,500 12,400 12,900 12,900 137,980 140,740 143,439 146,157 144,777 10,340 10,340 10,340 10,340 10,340 458 444 427 416 543 10,382 10,730 10.350 9', 891 10,739 11,380 9,910 10,880 10,570 10,880 11,050 11,-" 11,050 11,630 | 10,900 71,130 73,590 77,550 82,410 86,050 1,317 1,286 1,221 1,190 1,290 1,540 1,540 1,640 1,640 1,640 2,746 2,446 2,, 406 2,196 1,716 18,276 18,234 19,146 19,600 19,600 25, 783 24,952 24,847 24,806 24,976 1,643 1,556 1,674 1,651 1,658 3,081 2,842 2,463 2,395 1,853 15,374 15,474 16,534 17,244 16,515 10,36S 11,014 11,477 11,466 11,443 234,876 240,534 247,873 255,702 258,081 15,817 16,065 16,735 17,833 16,848 724 FEDERAL EESERVE BULLETIN. DECEMBER 1,1916. GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts-, Jan. 1 to Nov. 17, 1916. [In thousands of dollars.] I i •aw Week ending Oct. 27. Ore and base bullion United States mint or assay office bars Bullion, refined Foreign coin Total 22 97 i i 1 11 12 54 41 152 186 251 213 2 38,086 213 38,524 2,433 215 38,086 41,421 2,433 22 283 9 1 11 164 2,487 139 11 5 5 330 28 Week ending Nov. 3. Ore and base bullion United States mint or assay office bars Bullion, refined Foreign coin Total 44 440 "i26* 314 358 330 154 30 43 27 74 26,605 6,962 72 27,055 6,962 33,567 34,529 Week ending Nov. 10. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Total 92 107 122 110 175 196 252 196 53 43 27 167 20 249 1 746 175 Week ending Nov. 17. Ore and base bullion United States mint or assay office bars Bullion, refined Foreign coin Total 47 712 4,876 99 419 10 422 270 12 4,8 10 99 5,033 135 121 12 115 2,887 2,548 624 293 5,905 58 Jan. 1 to Nov. 17. Ore and base bullion 2,177 United States mint or assay office bars Bullion, refined 20,000 32,614 United States coin . . . . 1,216 Foreign coin 1 28,644 Total. 20,002 64,651 320 473 97 46 ; 5 I. 9 I55 j 334 I 143 ! 198 Excess of gold imports over exports for 46 weeks, Jan. 1 to Nov. 17,1916 Excess of gold imports over exports for corresponding period, 1915 198 2,794 3,410 19 19,466 : |25,763 i 4,009 2,354 41,547 258,315 1,778 68,944 2,412 32 j4,958 j48,592 11,721 293 4,009 361,274 3,119 119,486 19,037 499,609 386,004 359.292 725 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. Exports of gold, by customs districts, Jan. 1 to Nov. 17, 1918. Alaska. Total. 1,250 Vermont. 1 043 St. Lawrence. 329 Montana a n d Idaho. 972 Michigan. 1,250 Duluth and Superior. 1 020 23 Buffalo. 329 Hawaii. 356 616 Dakota. Washington. Southern California. San'Francisco. Eagle Pass. New Orleans. Florida. Porto Rico. New York. Maine and New Hampshire. [In thousands of dollars.] Week ending Oct. 27. United States mint or assay office bars . ... Bullion, refined, domestic United States coin Foreign coin Total 1 1 6 500 386 3,721 23 6 501 4,131 30 30 Weekending Nov. S. Ore and base bullion United States mint or assay office bars Bullion, refined: Domestic Foreign United States coin Foreign coin 21 21 i 1,034 1,034 Total 1 10 1 308 58 106 10 2 424 2 58 1.039 i 21 11 4 319 1 173 13 1 3 1 5 1 1,561 Week ending Nov. 10. United States mint or assay office bars Bullion, refined, domestic United States coin 250 Total.. 1 1,643 6 2,546 1,644 6 2,796 Week ending Nov. 17. . t l , 750 \ > 1,750 1 275 2 5,950 1 6,227 5 25 5 j United States mint or assay office bars. . Bullion, refined, domestic United States coin Foreign coin.. 400 300 11 2,523 1 9 21 500 | 612 | 500 300 11 2,923 10 53 173 70 2 610 Total.. 1 43 24 3,953 1 1 4,410 Jan. 1 to Nov. 17. Ore and base bullion United States mint or assay office bars.. Bullion, refined: Domestic.... Foreign United States coin Foreign coin . Total.. 2 12 5 777 1,438 34,348 18 153 2 60,670 1 701 829 15 400 829 15 400 2 2 1 i 247 28,876 216 13 247 41 783 258 5 1451 i 4 4 9 12 21 29 85 1 14 5 1 3 50 4,239 845 90 30 16 50 4,061 13,736 520 2 11,990 954 . 30 16 14 1 1,620 750 1,422 7,003 1,458 71,319 19,831 2 3,608 764 113,605 726 FEDERAL BESERVE BULLETIN'. DECEMBER 1,1916. EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during October, 1916, earnings from each class of earning assets, and annual rate of earnings on the basis of October, 1916, returns. Average balances for the month of the several classes of earning assets. Bills discounted, members. Bills bought in open market. United States bonds. One-year Treasury notes. Municipal warrants. Total. Boston New Y o r k . . . . Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco $622,246 973,625 183,024 370,686 4,217,965 3,403,867 2,686,253 2,252,649 1,905,800 1,212,656 4,057,783 267,612 $10,325,569 23,612,985 11,883,545 6,695,267 1,849,669 3,806,134 5,912,307 5,367,649 3,050,300 1,916,637 312,317 7,868,255 $2,163,032 2,107,803 2,278,065 5,773,334 . 624,219 1,210,000 7,587,681 2,362,774 2,928,500 9,270,350 2,811,500 2,817,620 $1,000,000 994,750 1,174,000 1,105.097 1,057,548 824,000 1,517,000 891,000 688,700 963,000 620,000 500,000 $4,286,153 7,664,109 3,362,549 4,218,861' 62,364 3,798,564 1,540,026 1,674,900 592,101 7,260 2,836,000 $18,397,000 35,353,272 18,881,183 18,163.245 7,811,765 9,534,673 21,501,805 12,414,098 10,248,200 13,954,744 7,808,860 14,289,487 Total... 22,154,166 82,600,634 41,934,878 11,335,095 30,333,559 188,358,332 Earnings from— Bills Bills discounted, bought in open memmarket. bers. United States bonds. Boston New Y o r k . . . . Philadelphia.. Cleveland Richmond Atlanta.. Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco $2,081 3,243 595 1,409 14,730 11,070 10,752 7,243 7,605 5,209 16,516 1,213 $21,585 51,741 24,681 13,638 4,817 8,948 12,167 11,146 6,169 3,927 858 15,897 $4,330 4,146 4,356 12,658 1,545 2,744 15,869 4,664 o,496 16,943 5,386 4,742 Total... 81,666 175,574 82,879 Calculated annual rates of earnings from— One-year MuniciTreasury pal warnotes. rants. . ! ! | ! $2,500 2,603 2,967 2,795 2,687 2,082 3,793 2,251 1,750 2,434 1,575 1,250 28,687 290.672 Total. $10,472 $40,968 80,637 18,904 40,531 7,932 . 11,678 42,178 23,965 25,732 52,480 i 9,899 29,324 ! 4,020 25,024 ! 4,004 29,789 I 1,276 24,360 25 29,943 6,841 76,125 444,931 Bills dis-j Bills counted, i bought mem- | in open bers. | market. United States bonds. One-year MuniciTreasury pal warnotes. rants. Percent.] Percent Pei' cent. I Per 3.95 i 2.36 I 2.47 3.93 ' 2.33 2.58 3.84 ! 2.25 2.45 4.49 • 2.61 2.41 4.12 ! 2.92 3.07 3.84 ! 2.68 2.78 4.73 ! 2.51 2.43 3.80 2.33 2.45 4.71 2,22 2.39 5.06 2.16 2.42 4.87 2.00 3.24 5.34 2.02 2.39 4,35 2.12 2.33 Total. cent. Per cent. Per cent. 2.63 2.95 2.88 2.69 3.00 2.92 2.53 2.98 2.78 2.98 2.74 3.27 3.00 3.62 . 3.52 2.98 3.61 3.50 3.00 3.08 2.90 2.98 3.08 2.79 3.00 2.82 2.88 3.00 2.55 2.52 3.00 4.00 3.72 3.00 2.85 2.41 2.98 2.79 727 FEDERAL BESEEVS BULLETIN. DECEMBER 1,1916. FOREIGN EXCHANGE RATES QUOTED IN capital could be purchased in New York on NEW YORK DURING THE PERIOD that date for $39. The quotation of 82^against Berlin shows the equivalent of 400 1914-1916, Below are shown monthly ranges of rates of foreign exchange quoted in New York City on leading European, South American, and oriental money centers for the years 1914 to 1916. Quotations for the past two years were taken chiefly from the Commercial and Financial Chronicle's 1916 financial review, while those for 1916 were based upon daily quotations kindly furnished by the National City Bank and Messrs. Knauth, Nachod & Kuhne, of New York City. In addition; the New York Journal of Commerce was used for compiling the monthly ranges of exchange rates on oriental centers for the earlier period. The rates given are in nearly all cases those for sight drafts, bankers7 checks, or demand bills, except in the case of exchange on London, for which monthly ranges of rates for both sight drafts or demand bills and 60-day bankers7 bills are given. The rates in most cases are expressed in terms of United States currency. Thus, for example, the May, 1915, quotation of 475f against London indicates that this amount of dollars had to be paid in New York for a 60-day bankers7 bill of £100 payable in London. Similarly, the May, 1915, quotation of 39 against Petrograd denotes that a sight draft of 100 rubles payable in the Russian marks, this being the customary mode of quoting exchange on Berlin. Exchange on Paris, Milan, and Zurich, Switzerland, is quoted in terms of foreign currency, and declines in exchange, i. e., in the value of the foreign currency, are indicated by increases in the number of the foreign money units which can be purchased by $1 or $100. A comparison of the par rates of exchange with the rates actually quoted indicates to some extent the various rates of depreciation which European currencies, especially those of the belligerent countries, underwent in neutral markets since the outbreak of the world war. Based upon the official equivalents of the foreign money units as quoted by the United States Director of the Mint, the par rates of exchange on the several centers are as follows: London, $4.8665; Paris, Milan, and Zurich, 518 francs per $100; Berlin, $95.20 per 400 marks; Petrograd, $51.50 per 100 rubles; Amsterdam, $40.20 per 100 florins; Copenhagen, $26.80 per 100 kroner; Buenos Aires, $42.46 per 100 paper pesos; Rio de Janeiro, $32.42 per 100 milreis; Hongkong/* $46.10 per $100 Mex.; Shanghai,0 $64.10 per 100 Shanghai taels; Yokohama, $49.80 per 100 yen. aAverage of 4 quarterly quotations oft he U. S. Director of the Mint during 1913-1914, Monthly ranges of exchange rates on leading foreign money centers quoted in Neio York City during the years 1914 to 1918 February. January, Low. London: 60-day bankers' bills, dollars Sight drafts dollars. Paris - - -francs.. Berlin dollars- Petrograd , do.... Milan ... lire.. Amsterdam. dollars.. Copenhagen do— Zurich francs.. Buenos Aires dollars - Rio de Janeiro do.... Hongkong do— Shanghai do— Yokohama do 4.815 4.855 520| 944* High. Low. 4.81J 26.68 521| 64! High. JLOW. 4.69| *520 5§ 542 40& 24H529£ 1914 1916 1915 1914 High. 4.74 4.78 583 73 29.32 677£ 42A 271 526 655 45§ 27.90 513 46.35 if 47.60 1915 Low. High. 4.8355 4.8535 4.8425 4.859 4.77$ 4.79 9 ^ 514* 519| 40| 26.88 582 26.82 518| 64$ 49.95 Low. High. 1916 Low. 4.71J 4.75J 591 42 221 46.20 63 High. 728 FEDERAL RESERVE BULLETIN. DECEMBER 1,1916. Monthly ranges of exchange rates on leading foreign money centers quoted in New York City during the years 1914 to 1916—Continued. April. March. 1914 Low. London: 60-day bankers' bills, dollars. Sight drafts... dollars. Paris francs. Berlin dollars. Petrograd do... Milan lire. Amsterdam dollars. Copenhagen —do Zurich francs. Buenos Aires dollars. Rio de Janeiro do— Hongkong do Shanghai do Yokohama. do... 1915 High, j Low. 4.835 4.8575 518| 95* 51| 520 40} 26.80 518f 1916 High 4.89 4.867 Low. High, 1914 Low. 1915 High. High 4. 73} 4. 76J 593 76* 32 631 43} 30.20 517 42# 565 40 535 44.45 May. 1914 High. Low. 4.81} 526 47.25 ! 63|- i 49.95 Low. High. 4.79J 511 518| } 26.86 517J 46.70 Low. 1916 44.70 57 50} June. 1916 1915 1914 Low. High. Low. High. 4.75| 4.78 543J 82* 39 4.77f 4.80 531J 83} 41f 575* 39* 25.95 529§ 4.72 4.75-1 594J 75 30.60 647 41 29.70 524} 42 23 51 72 4.73 4.8575 4.76} 4.8755 516} 591f 95* 784 511 620 * 41| 30.80 26.82 516| 518 42.32 24£ 56.25 46.20 63§ 49.90 Low. 1915 High Low. 1916 High. Low. High London: 60-day bankers' bills, dollars Sight drafts dollars. Paris francs. Berlin dollars. Petrograd do... Milan lire. Amsterdam dollars. Copenhagen do...'. Zurich francs. Buenos Aires dollars Rio de Janeiro do,— Hongkong do— 46} 64 Shanghai do... Yokohama d o — 49. 75 25.75 533} 48.85 64} 49.90 44.60 57 4.867 4.891 515 95* 51* 516} 40* 26.90 515 46.90 64 49.90 Low. London: 60-day bankers' lars Sight drafts Paris Berlin Petrograd — Milan Amsterdam Copenhagen Zurich. Buenos Aires Rio de Janeiro Hongkong Shanghai Yokohama bills, dol....do... ..francs. , .dollars. ....do... .....lire. ..dollars. ....do... ..francs, .dollars. -do. ...do... ...do... ...do... 4.849 4.869 516| 95* 51 518f 4(4 26.81 43.60 59 49.90 1916 1915 High. Low. High. Low. 5.50 460 96} 51* 490 41} 27| 465 4.71 4. 75} 570§ 814 32 641 39f| 25.65 544 4.73* 4.77J 5534 4. 71 4.76H 591 71f 30.35 649-i 41f 28.05 530 41.39 24.40 47.50 65.50 46.45 64 49.90 42.70 44.30 56£ 49.40 43 56 4.72 4.75^ 592 72H 30.30 641| 41* 28 531 42.15 23.87 49 70 50| 4.72} 4.75| 590 77* 30.80 635 41| 30.10 523 42.25 24.50 51 72 August. July. 1914 4. 72} 4&75f 568 81 38 616 39| 25.95 543 40* 26.35 535 43 56 1914 Hiigh. 4.72 4. 75| 590f 30.80 637f 41* 29.10 528 42.25 24.76 50 72J 50J 1915 Low. High. 4.94 513 5.56 510 51 500 47.15 64 49.75 97 514 490 42 47.85 64} 49.75 1916 Low. High. Low. 4.52 4.55| 603 80| 31 653 39| 25.60 544 4.71^ ,71} 4,,76} 4.71| 4.75H 592 70| 30.30 649 41* 27.40 529f 41.30 24.15 50.25 71 50| 42.30 37 623 25.90 531 42.70 56 High DECEMBER 1, 729 FEDERAL RESERVE BULLETIN. 1916. Monthly ranges of exchange rates on leading foreign money centers quoted in Nevj York City during the years 1914 to 1916—Continued. September. 1914 Low, London: 60-day ...bankers' bills, dollars Sight drafts dollars.. Paris francs.. Berlin dollars.. Petrograd do Milan lire.. Amsterdam dollars.. Copenhagen do Zurich francs.. Buenos Aires dollars.. Rio de Janeiro do Hongkong do Shanghai." do Yokohama do October. 1915 High. 4. 94-| 512 4.96 5.061 505 97 541 40J 525 41f "Soi" 500 Low. High. 4.49 4.50 603 80^34 653 39ft 25. 55 545 40.34 22.10 42. 40 521 49 1914 1916 4.69 4.73 576-184* 35f 618 40| 25.95 525 41.55 23.70 43f 56 Low. High. 4. 71 4. 76a: 583f j 31.60 33.75 6425 41ft 27. 75 529i 42.39 24.29 52. 75 75* 1915 High. Low. 4.85*. 4.89 515ft 531 4.94 4.98 505 94i 48 517 42* 503 518 501 November. 1914 Low. London: 60-day bankers' bills, dollars Sight drafts dollars.. Paris „ francs.. Berlin dollars Petrograd do.... Milan , lire.. Amsterdam dollars.. Copenhagen do Zurich francs.. Buenos Aires dollars.. Rio de Janeiro do. Hongkong do. Shanghai do. Yokohama do. 4. 86-| 516 85f 42-1 540 401 25£ 520 4.88 4. 901 509* 88| 48 532 401 25| 515 Low. 4.60* 4.61* 599i 79j 32 651*, 41f 26.20 534 41ft 23. 20 43J 55| 49i 4. 7 1 | 582 811 33| 643 42 28.05 531 41| 23| 48i 63 50 Low. High. 4.58 4.60| .598 81ft 33 647 40| 25.90 540 41.11 23.11 43.10 55f 491 1914 1916 High. ! High. December. 1915 High. Low. 1916 Low. 475, 471! 67 29.25 673| 40| 523*. 43.12 23.02 53.60 77 501 High. 475H 471| 584J 30.75^ 665 41 27.15 517 43.40 23.96 56 87* 51 Low. 4. 8 1 | 4.84f 517ft 86 42 534* 40| 25 524 1915 High 4.86J 4.89ft 511 92* 43~ 523 40| 25J 518* Low. 4.67J 4.70| 588i 76 29| 661 411 26.30 533* 41| 23* 45.15" 60J 50 1916 High. 4.71 4.74| 581 791 32| 651* 43} 28.00 524 . 42 " 23| 47.35 63 50* Low. High. INDEX TO VOLUME 2. Acceptances: Page. Amendment to Act regarding 439 Bankers' acceptances— Distribution of, by sizes, maturities, etc... 44, 45, 91,92,141,142,194,195, 249,250, 298, 298,299,361, 362, 423, 496, 576, 644,717 Not included in aggregate of authorized acceptances when held by accepting bank 397 Regulations of Board on 529,530,532 Secured by bill of sale, eligibility of, for purchase 684 Based on export of goods, delay in shipment... 458 Bills of exchange— Drawn by drawee, eligibility of, for purchase 462 Payable "at sight" and accepted payable in three months 463 Payable on or before a certain date, eligibility of, for rediscount 394 Negotiability of 226 Presentment for acceptance 608 Commercial paper, when acceptances are classed as 678 Dollar exchange,, drafts drawn to furnish— Action of Board on applications for accepting 665 Amendment to act regarding 439 Regulation of Board on : 534 Eligibility of paper for purchase of raw material and payment for labor 65 Foreign treasury bills, purchase of, statement of Board regarding 661 Growth of the acceptance business. 590, 669 Limitations imposed by section 5200, Revised Statutes 64,.68O Member banks granted authority to accept up to 100 per cent of capital and surplus 215, 265,328,372,438,515 New York City trust companies engaging in the acceptance business 590,670 Paragraph in bill authorizing Board to grant acceptances up to 100 per cent of capital and surplus inadvertently omitted from conference report. 508 Recommendations by Board for amendment to section 13 of Act 323 Reference to, in address of Hon. W. P. G. Harding 587 Stamp tax, acceptances not subject to 211 Statement of acceptor's financial condition.... 13 Acceptances—Continued. page. To be eligible for purchase must be accepted by drawee 112 Trade acceptances— Amount of, discounted by Federal Reserve Banks 42,90,140, 193, 248, 297, 359,422,495, 575,643,715 Authority to buy bills of exchange drawn in foreign countries '. Ill Circular letter of Cleveland Federal Reserve Bank regarding 100 Form of, submitted by Cleveland Federal Reserve Bank 101 Involving importation or exportation of goods, eligibility of, for purchase. 168 New York company allowing discount where settlement is made by. 524 Purchase of, in the open market, regulation of Board on 532 Purchase and discount of, regulation of Board on 531,532 Act, Federal Reserve. (See Federal Reserve Act.) Addresses. (See speeches.) Advisory Council. (See Federal Advisory Council.) Agricultural paper 112,395,526,530,679 Regulation of Board regarding. 530 Agricultural products or implements, eligibility of paper covering purchase of 67,526 Allonges 610 Amendment to an act relating to deposits of gold bullion with Treasurer of the United States to secure gold certificates 311 Amendment to section 5202, Revised Statutes, permitting member banks to act as insurance and real estate agents 440 Amendment to section 8 of Clayton Act re interlocking directorates 205 Amendments to Federal Reserve Act. (See Federal Reserve Act, amendments to.) American Bankers Association: Amendments to Act recommended by nationalbank section of v Hearing of committee of, on check-clearing plan , 262 Reprint of article on commercial paper from Journal of 449 Assets and liabilities of leading central banks of issue, comparative statement 658-660 "Assured revenues," construction of, as used in section 14 170 i II INDEX TO VOLUME 2. Attorney General, opinions of: Page. Changing location of Federal Reserve Banks... 207 Minimum capitalization of $4,000,000 for Federal Reserve Banks necessary to commence business, but not a continuing requirement.. 209 Stamp tax on certificates of stock 172 Bankers' acceptances. (See Acceptances, bankers'.) Bill to limit use of words l' Federal'' and '' reserve''. 373 Bills, checks, and notes made payable in exchange, negotiability of 457,459 Bills of exchange: Domestic, purchase of, regulation of Board on. 530 Drawn by drawee, eligibility of, for purchase.. 462 Drawn in foreign countries, purchase of Ill Drawn payable "at sight" and accepted payable in three months 463 Exemptions under section 5200, Revised Statutes 1 227 Foreign, purchase of, regulation'of Board on. 529, 530 Negotiability of, waiver of rights by obligor... 226 Open-market purchase of, regulation of Board on • 532 Payable on or before a certain date, eligibility of, for rediscount , 394 Presentment of bills for acceptance 608 Bills of lading, reprint of act passed at last session of Congress 515 Bonds, municipal, eligibility of, for purchase, with original maturity of more than 6 months.. 524 chase of 524 Bonds, United States. (See United States bonds.) Boston Clearing House taken over by Federal Re^ serve Bank of Boston 317 Branches of national banks: Amendment to section 25 of Act as passed by Congress. 441 Foreign, right to establish in the United States. 224 Right to operate 74 National City Bank, New York City, opens branch at Petrograd, Russia 372 Recommendations of Board for amendments to section 25 of Act 327 Brodhead, J. Davis, appointed Class C director of Federal Reserve Bank of Philadelphia 509 Brokers' paper, suggestions for purchasing 375 Business conditions throughout the 12 Federal Reserve districts 29-38, 75-85, 124-135, 174-188, 228-243, 275-292, 333-354, 399-417, 465-490, 544-570, 613-638, 688, 810 Summary of ,. 333, 398,465, 544, 612, 687 Cable transfers and foreign bills of exchange, purchase of, regulation of Board on. 529 Capital and reserve deposits of Federal Reserve Banks 98 Chart showing 123 Capital stock of Federal Reserve Banks: Page. Cancellation and refund of, when member bank, liquidates 119 Capital required for State bank to join system. 64 Certificates exempt from stamp tax 172 Certificate of Comptroller as to capital and surplus not required on applications for additional stock 12 Dividends on— "Exempt from income tax 153 Payable to member banks on surrender of stock 17 Payment to member banks transferred from. one district to another 678 Increase or decrease of, regulation of Board on. 541 Minimum capitalization of $4,000,000 as a condition precedent to commencing business, opinion of Attorney General on 209 Surrender value of. dividends p a y a b l e . . . . . . . 17,168 Cattle, eligibility of paper secured by loans on 65, 112,329, 395, 679 Certificates of stock exempt from stamp tax. 172 Changes in Federal Reserve districts. (See Federal Reserve districts.) Charters to national banks issued since inauguration of Federal Reserve system , 265, 316,379,448,515,601,672 Charts: Capital and reserve deposits of Federal Reserve Banks 123 Deposits in national banks, State banks, and trust companies 266 Individual and bank deposits as shown by Comptroller's call 223,328 Check clearing and collection: Announcement of Board relative to circular issued by conference of bankers at St. Louis. . 374 Boston Clearing House taken over by Federal Reserve Bank of Boston 317 Circular letter of Federal Reserve Bank of Richmond on 598 Circular letter of National Association of Creditmen on 600 Circulars of the Board on 259, 542 Statement to press regarding . 260 Circulars of Federal Reserve Banks on.. 312-315, 598 Conference of clearing-house representatives with Board to discuss clearing plan °310 Cost of transportation of currency to be paid by Federal Reserve Bank 259,456 Hearing of committee of American Bankers Association on clearing plan 262 Inauguration of plan deferred to July 15 262 Member banks may continue to carry accounts with approved reserve agents 262 INDEX TO VOLUME 2. Check clearing and collection—Continued. Page. No compulsion on member banks to collect checks through Federal Reserve Banks 263 Operation of clearing plan.. 378, 445, 511, 590, 598, 670 '' Par " collection, meaning of 310 Par lists sent out with Bulletin 513 Statements by several Federal Reserve Banks regarding operation of plan 378 Checks: Made payable in exchange, negotiability of.. 457,459 Use of, in France, extract from Consular Reports 374 Circular, anonymous, re section 9 of Act, sent out from Philadelphia 53 Circular issued by conference of bankers at St. Louis relative to clearing plan, announcement by Board on 374 Circular by Tennessee bankers re discount operations of Atlanta Federal Reserve Bank 4 Circulars by Federal Reserve Banks on clearing plan 312-315,598 Circulars and regulations of the Board: Circular No. 20, regulation T (series of 1915).— Open-market operations 15 Cir. 21 (series of 1915).—Eligibility of candidates for directorships 16 Regulation T (series of 1915).—Open-market operations. 15 Circular No. 1 (series of 1916).—Check clearing and collection 259 Circular No. 2 (series of 1916).—Revision of regulations 530 Special instructions No. 1 of 1916.—Clayton Act 389 Special instructions No. 2 of 1916.—Consolidation of circulars and regulations 529 Regulations, series of 1916— Reg. A.—Rediscounts under section 13 of Act 530 Reg. B.—Open-market purchases of bills of exchange, trade acceptances, and bankers' acceptances under sec. 14 532 Reg. C.—Acceptance by member banks of drafts drawn to furnish dollar exchange. 534 Reg. D.—Time deposits and savings accounts 534 Reg. E.—Purchase of warrants 535 Reg. F.—Trust powers of national banks.. 536 Reg. G.—Loans on farm land and other real estate 537 Reg. H.—Membership of State banks and trust companies 538 Reg. I.—Increase or decrease of capital stock of Federal Reserve Banks 541 Reg. J.—Check clearing and collection 542 Ill Circulating notes: pag8. Right of national bank to increase amount of.. 65, 72 Withdrawal of 215, 224 Clayton Antitrust Act: Amendment to section 8 205 Answers to questions propounded regarding applications under Kern amendment 446 Applications under Kern amendment, number of, granted and refused 602 Circular of Board on 389 "Fiscal year," definition of, as used in 523 Forms for use in making applications under Kern amendment 391 Interpretations of 224, 329, 394, 679 Kern amendment and exceptions to section 8.. 396 Penalty for violation of...'.. 606 Press statement regarding applications under Kern amendment 514 '' Private banker,'' interpretation of 588 Savings and loan associations, status of, under. 118 State banks doing business in the District of Columbia subject to 526 Clearing-house balances, payment of 53 Clearing of checks. (See Check clearing and collection.) Commercial failures as reported by R. G. Dun & Co. 216, 267, 327, 377, 447, 515, 601, 672 Commercial paper: Agricultural paper, discount of 67, 526, 530 Amount discounted by Federal Reserve Banks each month 40-42, 86-89, 136-139,189-192, 244-247, 293-296, 355-359, 418-422, 491-495, 571-575, 639-643, 711-714 Amount held by Federal Reserve Banks each week 43,91,140, 193, 248, 297, 360,422, 495, 575, 644, 716 Article on, reprinted from Journal of American Bankers Association 449 Assignment of open account not eligible for rediscount 227 Bills of exchange, negotiability of 226 Brokers' paper, suggestions for purchasing 375 Cattle, paper secured by loans on. 65,112,329, 395, 679 Cotton loan paper, limitations imposed by section 5200 113 Discount rates figured from day of maturity... 461 Discount rates, when deducted 272 Eligibility of paper based on purchase of raw material and payment for labor 65 Indorsement of negotiable paper on separate piece of paper 610 Indorsement of member bank operates as waiver by such bank 524 Interest and discount rates on loans, method of computing 457 IV INDEX TO VOLUME 2, Commercial paper—Continued. Page. Deposits—Continued. Page. Legislative valuation of cotton used as security National bank deposits in the United States, increase of 376 for 524 Postal funds in nonmember banks 331 Paper of suspended bank, indorsement of 66 Savings, presentation of pass books in case of Promissory note, eligibility of, when payable deposit or withdrawal 168,534,611 "on or before " a certain date 394 Time deposits and savings accounts— Rediscounts with Federal Reserve Banks, limiRegulation of Board on 534 tations imposed by law 112,224,274,457 Savings accounts, when not classed as time Rediscounts under section 13, regulation of deposits 168,611 Board on 531 Commissioner of Internal Revenue, rulings of: Deputy Federal Reserve Agent: Designation as, from year to year 51 Acceptances not subject to stamp tax. 211 National bank examiners not to be appointed Dividends on Federal Reserve Bank stock exempt from income tax 153 to office of 2 Repeal of war taxes, effective September 8, Newsome, W. B., designated as, for Federal Reserve Bank of Dallas 107 1916 1 512 Thompson, H. B., designated as, for Federal Committees of the Board, reassignment of, August 28. 448 Commodity paper: Reserve Bank of Philadelphia 509 Amount of, discounted by Federal Reserve -Directors of Federal Reserve Banks: Banks : 43,90,140, Annual election of— 193,248, 297,360,422,495,575,643, 715 Classification into three groups., 670 Definition of word "staples" as used in ReguInstructions regarding 510,597 lation Q, series of 1915 523 Class A and B elected, for year 1916 3 Purchase of, regulation of Board on 532 Class C— Connecticut: Appointed for year 1916 3,52 Transfer of Fairfield County from district No. 1 Brodhead, I. Davis, appointed director of to district No. 2 154,169 Federal Reserve Bank of Philadelphia.. 509 Transfer of other counties in, deferred...... 169,309 Davis, W. J., director of New Orleans Cotton: branch, death of 309 Acceptances to finance export of 12 Hardy, Caldwell, appointed director of Legislative valuation to determine basis for Richmond Federal Reserve Bank 153 loans on 524 Martinez, Felix, Dallas, Tex., death of.... 152 Limitations imposed by section 5200 for loans on. 113 Meredith, E. C , resignation of, as director Counsel of Federal Reserve- Board, opinions of. of Federal Reserve Bank of Chicago 372 (See Law department.) McCormick, Vance C , director of PhilaCurrency, transportation charges on 115,259,456 delphia Federal Reserve Bank, resignaDavis, W. J., class C director of New Orleans branch, tion of 309 death of 309 Newsome, W. B., designated as Deputy Delano, Hon. F. A., visit of, to Federal Reserve Federal Reserve Agent at Dallas 107 Banks . 152 Norris, G. W., director of Philadelphia Depositaries for Indian funds, ruling of Interior DeFederal Reserve Bank, resignation of.i 438 partment on 266 Status of........ r 65 Deposits: Thompson, H. B., appointed director of. Capital and reserve deposits of Federal Reserve Philadelphia Federal Reserve Bank 509 Banks... 98 Wooten, H. O., appointed director of DalChart showing 123 las Federal Reserve Bank 205 Escheat law of Pennsylvania, applicability of, Election of A and B, instructions regarding.. 510,597 to national banks. „ 115,121 Eligibility of officers and directors 2 In national banks, State banks, and trust comEligibility of, for election, when residence outpanies, chart showing 266 side of district 607 Indian funds, depositaries for. 266 Lightcap, H. B., elected class B director of New Orleans branch 438 Individual and bank deposits as shown by Comptroller's call 222 List of directors whose terms expire in 1916 510 Charts showing 223,328 National bank examiners not to hold office a s . . 2 Individual deposits, loans, and discounts of Political office, holding of, by 2 national banks, 1910-1916, statement showReport of examination of Federal Reserve ing 506 Bank, directors to read and initial, * 206 INDEX TO VOLUME 2. Page. Directors of national banks, fees paid to 514 Disbursements of the Federal Eeserve Board 54 Discount and interest, method of computing 457 Discount rates: Establishment of 15-day rate on promissorynotes of member banks 513 Figured from day of maturity. 461 In effectDecember 24, 1915.. 11 January 27, 1916 63 February 24, 1916.... 110 March 24, 1916 -. 204 April 27, 1916... 216 May 25, 1916 308 June 22, 1916 319 August 1, 1916. 383 September 1, 1916 505 September 28, 1916 585 October25, 1916..... .. 656 November 27,1916. 677 Discounts, distribution of, by sizes, maturities, etc 39-43, 86-91,136-139, 189-192, 244-247,293-296, 355-359,418422, 491-495, 571-575, 639-643, 711-714 District of Columbia,. State banks in, subject to provisions of Clayton Act. 526 Dividends on stock of Federal Reserve Banks 5? 205, 373, 508 Declared by— Dallas 508 Richmond 5 Payment of additional 1 per cent 205 San Francisco . . 508 Exempt from income tax 153 Ruling of Board as to dates for closing books for payment of 511 Payment of, to member banks on surrender of stock.... 17 Payment of, to member banks transferred from one district to another . 678 Dollar exchange, drafts drawn to furnish: Regulation of Board on 534 Action of Board on applications for accepting. 665 Earnings of Federal Reserve Banks 373 Items charged against 12 Earnings on investments of Federal Reserve Banks, tabular statements showing . 149? 203, 307,370, 434, 505, 585, 656, 726. Earnings and expenses of Federal Reserve Banks: To December 31, 1915. ". 56-59 For quarter ending March 31, 1916 217-219 For six months ending June 30, 1916 . . . . 373,384-388 For nine months ending September 30,1916.. 593-595 Forms for reporting 68 Instructions as to reporting 68 Eaton, John N., article on commercial paper b y . . . 449 Election of directors of Federal Reserve Banks. (See Directors.) Employees of Federal Reserve Banks, tenure of office of 2,13,64 Escheat law of Pennsylvania, applicability of, to national banks 115,121 European central banks of issue, comparative statements of . *. 658 European payments to and loans arranged in the United States since outbreak of war 592 Examination of Federal Reserve Banks, directors to read and initial reports of 206 Examination of member banks, cost of, under new and old systems 122,213 Exchange rates, foreign, quoted in New York during period 1914-1916 727 Expenses of Federal Reserve Board: Assessments on banks for. 7, 8,318,319 Detailed statement of. . 55 Expenses of conferences of Federal Advisory Council, Federal Reserve Agents, and Governors. 57 Failures, commercial, in 1916. (See Commercial failures.) Farm land, loans on. (See Real estate loans.) Farmer, what the Federal Reserve Act has done for... 442 "Federal," bill to limit use of word 373 Federal Advisory Council: Election of members of, for year 1916 53 Expenses of conferences of 57 Meetings of— February 15, 100 May 16 261 September 18 438,509 November 20 667 Members to be elected in January 13 Members of, not to serve as officers of Federal Reserve Banks 3 Watts, F. O., election of, as member in St. Louis district 205 Federal Reserve Act, amendments to: Amendments as passed by Congress 439-442 Paragraph of bill authorizing Federal Reserve Board to grant permission to member banks to accept up to 100 per cent of capital and surplus inadvertently omitted from conference report 508 Passed by Congress and approved by President. 508 Promissory notes of member banks, advances on 440,513 Recommendations for amendments submitted by Federal Reserve Board 323-327 Recommendations by national bank section of American Bankers' Association 6 Ruling of Board on amendment permitting member banks to carry reserves in Federal Reserve Banks 508 VI IKDEX TO VOLUME 2. Page. Federal Reserve Banks—Continued. Federal Reserve Act, what it has done for the Minimum capitalization of $4,000,000 necessary farmer 442 (to commence business, but not a continuing Federal Reserve Agents: requirement 209 Conferences of 206, 310 Officers and employees: Designation as,, from year to year 51 List of, to be submitted to Board annually. 13 Expenses of conferences of 57 Tenure of office of , 2,13,64 Hardy, Caldwell, appointment of, as Class C Organization expenses of 12, 58,59 director at Richmond.. 153 Reserves, payment of, November 16, 1916 598 National bank examiners not to be appointed to office of 2 Resources and liabilities of 46, 93, Federal Reserve Agents' accounts, statement of, each 143,197, 252, 301, 364, week. 48,95,145,199, 254, 303, 366,429, 502, 581, 652, 722 426, 499, 579, 650, 720 Federal Reserve Agents' fund, summary of transacTenure of office of officers and employees.... 2,13, 64 tions. . 11, 63,110,167,222, 271, 322, 383, 455, 522, 605, 676 United States bonds, purchase of, resolution of Federal Reserve bank notes and Federal Reserve Board regarding 512 notes, difference in form and obligation 273 Use of Federal Reserve notes desirable in meetFederal Reserve Banks: ing currency demands 512 Assessment on, for expenses of Board... 7, 8, 318, 319 Federal Reserve Board: Capital stock of. (See Capital stock.) Announcement relative to circular issued by Capital and reserve deposits 98 conference of bankers at St. Louis on clearing Chart showing 123 plan 374 Circulars on check clearing issued by 312-315 Assessment for expenses of— Circular letter of Atlanta bank on warehouse Jan. 1-June 30, 1916 7, 8 and storage conditions 448 July 1-Dec. 31, 1916 318,319 Clearing plan— Circulars and regulations of. (See Circulars and Circular of Richmond bank on operation regulations.) of. 598 Committees of, reassignments of, Aug. 28 448 Statements regarding operation of.. 312, 378, 598 Conference with representatives of clearingBate of closing books 12 houses 310 For payment of dividends 511 Expenses of, detailed statement 55 Directors of. (See Directors of Federal Reserve Hamlin, Hon. C. S., appointed for 10-year term 437 Banks.) Harding, Hon. W. P. G., designated as Governor 437 Dividends declared 5, 205, 373, 508 Hearing of committee of American Bankers AsEarnings of 373 sociation on clearing plan *262 Items charged against ... 12 Meeting of, with American Bankers Association, Earnings on investments of, statements showto discuss proposed amendments to Act 6 ing 149, 203, 307, 370, 434, 505, 585, 656, 726 Members of, in attendance at meetings of bankEarnings and expenses of— ers' and other associations 261, 309, 510 To December 31, 1915 56-59 Order amending geographical limits of districts Quarter ending March 31, 1916 217-219 Nos. 7 and 9 596 Six months ending June 30, 1916 . .. .373, 384-388 Orders and resolutions amending geographical Nine months ending September 30,1916. 593-595 limits of districts 1 and 2 and districts 6 and 11 154 Instructions for reporting 68 Power of, to reduce number of Federal Reserve Examination of, directors to read and initial districts created by Organization Committee. 20-28 report of 206 Receipts and disbursements of 54 Fiscal operations of 671 Recommendations for amendments to Act subFurniture and equipment, cost of....... 58, 219,387 mitted by 323-327 Holidays, list of 68 Resolutions regarding purchase of United States Increase or decrease of capital stock, regulabonds under section 18 156, 316, 512 tions of Board on 541 Ruling on amendment to Act permitting memInvestment operations of, statements showber banks to carry reserves in Federal Reserve ing 196, 251, 300, 363, 425, 498, 578, 646, 719 Banks 508 Location of, opinion of Attorney General reWarburg, Hon. P. M., designated as Vice-Govchanging 207 ernor 437 INDEX TO VOLUME 2.. Federal Reserve Bulletin: January 1-50 February 51-98 % March .* .. -• 99-149 April 151-204 May 205-260 June 261-308 July 309-370 August 371-435 September .... 437-506 October 507-585 November 587-660 December 661-729 Bound copies of 53 Cost to directors of member banks 52 Federal Reserve cities, opinion of Attorney General re changing location of 207 Federal Reserve districts: Connecticut— Transfer of Fairfield County from district No. 1 to district No. 2 154,169 Transfer of other counties in, deferred-.. 169,309 Louisiana, transfer of certain counties in, from district No. 11 to district No. 6 99,153 Map showing 596 Michigan— Banks desiring transfer from district No. 9 to district No. 7, hearing of 372? 438 No action on petition for transfer , 596 Power of Federal Reserve Board to reduce number of 20-28 Texas banks asking transfer, action of Board on 205 Wisconsin— Petition for transfer of banks from district No. 9 to district No. 7, action on, deferred 264 Hearing on reopening of petition 372,438 Petition granted. *... 596 List of counties and banks transferred... 596,597 Federal Reserve notes: Amendment to section 16 of Act as passed by Congress 441 Circulation of, at close of business each Friday. 47,94, 145,199, 254, 303, 366, 428, 501, 581, 652, 722 Cost of, statement showing 58, 219, 387,595 Federal Reserve bank notes, difference in form and obligation 273 Interdistrict movement of, statements showing. 258, 435, 657 Issues of, are they cause of currency inflation.. 212 Recommendations by Board for amendment to section 16 of Act 325 Tax on -- 273 Transportation charges on 71. I l l Use of, desirable in meeting currency demands. 512 Fiduciary powers: Applications for, granted by Board. 14,7.0, 122,169, 225, 266, 328, 379, 447, 601, 671 VII Fiduciary powers—Continued. p age . Granting of, in Kentucky 678 Regulation of Board on 536 Section 11 (k), constitutionality of, decision of supreme court of Illinois 28 States in which national banks may exercise.. 523 Transfer agent, national banks not authorized to act as 456 Fiscal operations of Federal Reserve Banks 671 "Fiscal year," as used in Clayton Act, definition of 523 Foreign banking, amendment to section 25 re joint stock banks for 441 Foreign branches of American banks: Amendment to section 25 of Act, as passed by Congress 441 Recommendations of Board for amendment to section 25 of Act. 326 Foreign banks in the United States, right to establish 224 Foreign gold coin, amount held to secure gold certificates, amendment to Act of 1900 regarding 311 Foreign obligations, investments in, statement to press regarding 661 France, use of checks in, extract from Consular Reports 374 Gold certificates, issuance of, against gold bullion and foreign gold coin, amendment to Act of 1900 regarding 311 Gold imports and exports. 49, 96,147, 201, 256, 305, 368, 432, 503, 583, 654, 724 Classified by countries of origin and destination 430,431 Gold notes, 1-year, rights and obligations of Federal Reserve Banks to which issued 330 Gold settlement fund: Audit of , 9,165,320,603 Expense of operating, November 20, 1915, to May 20, 1916 315 Review of year's operations 268 Summary of transactions 9,10, 60-62,108, 165-167, 220, 268, 320-322, 380-382; 453-455, 520-522, 603-605, 674-676 Government bonds. (See United States bonds.) Government deposits: Fiscal operations of Federal lieserve Banks.. 671 Postal funds in nonmeiriber banks, deposit of.. 331 Ruling .of Interior Department on depositaries for Indian funds 266 Governors of Federal Reserve Banks: Conferences of 52,206,437 Expenses of conferences of 57 Leave of absence granted to Benjamin Strong of New York 315 ' Not to serve on Advisory Council 3 Grouping of member banks for election of officers 670 Hamlin, Hon. C. S., appointed for 10-year term as member of Board 437 YIH IKDEX TO VOLUME 2. Harding, Hon. W. P. G.: page. Informal rulings of the Federal Reserve Board—Con. page. Clayton Act— Address before Birmingham Chamber of Com"Fiscal year," definition of, as used in 523 merce— 160 Interpretation of section 8 of 224, Designated as Governor of Federal Reserve 329, 394, 523, 679 Board 437 Penalty for violation of 606. Extract from address of, before American InstiCommercial paper— tute of Banking 587 Discount rates, when deducted 272 Visit of, to Federal Reserve Banks 152 Legislative valuation of cotton used as seHardy, Caldwell, appointment of, as class C director curity for 524 of Richmond Federal Reserve B a n k — 153 Cotton loan paper, limitations imposed by secHolidays in Federal Reserve Banks, list of . 68 tion 5200 113 Imports and exports 592 Date of closing books of Federal Reserve Banks. 12 (See also Gold imports and exports.) Director of Federal Reserve Banks, eligibility Income tax, dividends on capital stock of Federal for election as, when residing outside of disReserve Banks exemptfrom 153 trict 607 Indian funds, ruling of Interior Department on deDirectors, class C, status of 65 positaries for 266 Discount, method of computing 457 Indorsement of paper: Dividends to banks transferred from one disBy member bank operates as waiver by such trict to another 678 bank 524 Eligibility of paper based on purchase of raw Of suspended bank 66 material and payment for labor 65 On separate piece of paper. 610 Federal Reserve n o t e s Inflation of currency, are Federal Reserve notes Cost of transportation Ill cause of 212 Tax on 273 Informal rulings of the Federal Reserve Board: Federal Reserve notes and Federal Reserve Acceptances— bank notes, difference in form and obligation. 273 Based on export of goods, delay in shipFiduciary powers— ment. , 458 Commercial paper, when acceptances are States in which national banks may exercise 523 classed as 768 Limitation imposed by section 5200, R. S. 64 Granting of, in Kentucky 678 Statement of acceptor's financial condiInterest, method of computing 457 tion 13 Officers and employees of Federal Reserve Banks, tenure of office of 13, 64 To finance export of cotton 12 Organization expenses of Federal Reserve To be eligible for purchase must be accepted Banks 12 by drawee 112 Paper of suspended bank, indorsement of 66 Advisory Council, members of, to be elected in Pass books, presentation of, in case of withJanuary. 13 drawal or deposit in savings accounts 168 Authority to buy bills of exchange drawn in Promissory notes, eligibility of, when payable foreign countries 111 "on or before " a certain date 394 Branches of foreign banks, right to establish in Real estate loans 272, 273, 606, 679 the United States 224 Loans on city real estate limited to one Bonds, municipal, maturing in six months, year 608 purchase of 524 Rediscounts with Federal Reserve Banks, limiCapital stock of Federal Reserve Banks— tations imposed by law 112,224,274,457 Applications for additional, certificate of Rediscounts, indorsement of member bank opComptroller as to capital and surplus not erates as waiver by such bank 524 required. 12 Reserves, vault, carried with Federal Reserve Surrender value of 168 Banks 608 Cattle, paper secured by loans on. 65,112,329,395,679 Savings accounts, presentation of pass books in Certificates of eligibility on farm-mortgage case of withdrawal or deposit „... 168 paper, execution of 12 "Staples," definition of, as used in regulation Check clearing and collection 456 Checks, bills, or notes made payable in exQ, series of 1915 523 change, negotiability of 457,459 State banks, capital required to join system... 64 INDEX TO VOLUME 2. IX Informal rulings of the Federal Reserve Board—Con. Page. Law department—Continued. page. State banks and trust companies joining sysBills of exchange—Continued. tem, status of 393 Negotiability of, waiver of rights by States in which national banks may exercise obligor 226 fiduciary powers 523 Presentment for acceptance 608 Tenure of office of officers and employees of Bills, checks, and notes made payable in exFederal Reserve Banks 13,64 change, negotiability of 459 Trade acceptances involving importation or exBranches of national banks, right to operate... 74 portation of goods, eligibility of, for purchase. 168 Circulating notes, right of national bank to inTransfer agents, national banks not authorized crease amount of 65, 72 Clayton Act— to act as 456 Kern amendment and exceptions to secUnited States bonds— tion 8 396 Purchase of, under section 18, amount to be State banks doing business in District of deducted..^. 12,64 Securing circulation, sale of, by national Columbia subject to 528 Consolidation of two or more national banks, banks 224 right to operate branches 74 insurance: Discount rates based upon date of maturity 461 For employees of Federal Reserve B a n k s . . . . . . 590 Dividends on surrendered stock 17 Right of national bank to write 73 Escheat law of Pennsylvania, applicability of, Insurance agents, amendment to section 5202, R. S., to national banks 115 permitting member banks to act as 440 Federal Reserve districts, power of Board to Interest and discount, method of computing 457 Interior Department, ruling on depositaries for reduce number of 20-28 Federal Reserve notes, transportation charges Indian funds 266 on 71 Interlocking directorates. (See Clayton Act.) Indorsement of negotiable paper on separate Intra-district clearing system, additions to and withpiece of paper 610 drawals from 14, 70,121,169,225,267 Insurance, right of national bank to write 73 Joint High Commission, meeting of, at Buenos, Liquidation of member bank, cancellation and Aires 152 refund of capital stock 119 Kern amendment to Clayton Act. (See Clayton National-bank notes, withholding from circulaAct.) tion; security for a loan 332 Law department: Acceptances— Negotiable paper, indorsement of, on separate piece of paper.: 610 Limitations imposed by section 5200, R. S. 680 Qualified, status of 463 One-year gold notes, rights and obligations of Advances by Federal Reserve Banks to memFederal Reserve Banks to which issued 330 bers on 15-day notes, security for 609,685 Postal funds, deposit of, in nonmember banks.. 331 Agricultural products or implements, eligiPower of Federal Reserve Board to reduce numbility of paper based on 526 ber of districts created by Organization ComAllonges 610 mittee 20-28 "Assured revenues," construction of, as used Promissory notes of member banks under secin section 14 170 tion 13, security for. 609,685 Attorney General, decision by, re stamp tax on Real estate loans— certificates of stock 172 Improvements as part of value of property. 608 Bankers acceptances— Maturity of 228 Not included in aggreate of authorized Power of national bank in central reserve acceptances when held by accepting city to make 609 bank 397 Purchase of, by national banks 120 Secured by bill of sale, eligibility of, for Subject to limitations imposed by section purchase 684 5200, Revised Statutes 171 Bills of exchange— Rediscount of the assignment of open accounts. 227 Drawn payable "at sight" and accepted Rediscounts with Federal Reserve Banks, limipayable in three months 463 tations imposed by law 224,274 Drawn by drawee, eligibility of, for purReports of condition of State banks prescribed chase in open market 462 by State authorities, right of Comptroller to accept 114 Drawer exempted from liability 227 INDEX TO VOLUME 2. Law department—Con tinned. Page. Sale of United States bonds by banks in process of liquidation 170 Savings accounts as time deposits 611 Savings and loan associations, status of, under section 8 of the Clayton Act.., 118 Section 11 (k), constitutionality of, decision of supreme court of Illinois 28 Stamp tax on certificates of stock, decision by Attorney General 172 State banks, form of report of condition prescribed by State authorities, right of Comptroller to accept 114 Time deposits— Open accounts 686 Savings accounts 611 Transportation charges on Federal Beserve notes 71 Unfit currency, deposit of, with Federal Reserve Bank to avoid expense of shipment to Washington 115 United States bonds in exchange for one-year gold notes 330 United States bonds, sale of, by banks in process of liquidation.... 170 Warrants, county, not eligible as security for promissory notes of member banks 609 Warrants issued in anticipation of assured revenue 1 170 Lightcap, H. B., elected class B director of New Orleans branch 438 Liquidating banks: Cancellation and refund of capital stock 119 Sale of bonds by 170 Loans on farm land and other real estate, regulation of Board on 537 •(See also Real estate loans.) Location of Federal Reserve Banks, opinion of Attorney General re changing 207 Louisiana, counties in,.transferred from district No. II to district No. 6 99,153 Map showing Federal Reserve districts 596 Martinez, Felix, class C director of Dallas, death of.. 152 McAdoo, Hon. W. G., attending meeting of Joint High Commission at Buenos Aires 152 McCormick, Vance C, resignation of, as class C director of Philadelphia Federal Reserve Bank.. 309 Member banks granted authority to accept up to 100 per cent of capital and surplus.... r 215, 265,328, 372,438, 515 Meredith, E. T., resignation of, as class C director of Chicago Federal Reserve Bank 372 Michigan, banks in, desiring transfer from district No. 9 to district No. 7, hearing of . 372,438 Miller, Hon. A. C , visit of, to Minneapolis Federal Reserve Bank 438 Millet seed, eligibility of paper based on purchaseof. 526 Municipal bonds, eligibility of, for purchase, with Page. original maturity of more than 6 months 524 National Association of Credit Men, circular letter of, on check-clearing system 600 National-bank charters issued since inauguration of Federal Reserve System...... 265, 316,379, 448, 515, 601 National-bank examiners: Doughton, J. K., appointed chief examiner for sixth district 100 Not to hold office as directors of Federal Reserve Banks 2 National-bank notes, withholding of, from circulation; security for a loan 332 National banks: Branches of— ** .Amendment to section 25 of Act as passed by Congress 441 Right to operate in the United States 74 Charters issued to, since inauguration of Federal Reserve System 265,316, 379, 448, 515, 601,672 Deposits, increase of 376 Examinations of, cost under new and old systems : 122,213 Fees paid to directors of 514 Not authorized to act as transfer agents........ 456 Right of, to write insurance 73,440 National City Bank, New York City, branch of, opened at Petrograd, Russia 372 Negotiability of notes, checks, and bills made payable in exchange 457,459 Negotiable paper, indorsement of, on separate piece of paper 610 Norris, G. W., resignation of, as class C director of Philadelphia Federal Reserve Bank 438 Notes, bills, and checks made payable in exchange, negotiability of 457, 459 Notes, drafts, and bills of exchange, purchase of, regulation of Board on 530 Open account, assignment of, not negotiable paper. 227 Officers and employees of Federal Reserve Banks: Annual election or appointment of 2,13 Tenure of office of 2,13, 64 Open-market operations, circular and regulation on 15 Opinions of the Attorney General. (See Attorney General, opinions of.) Opinions of counsel of Federal Reserve Board. (See Law department.) Organization committee, power of Federal Reserve Board to reduce number of districts created by.. 20-28 Organization expenses of Federal Reserve Banks. 12, 58, 59 "Par " collection of checks, meaning of 310 Pass books, presentation of, in case of withdrawal or deposit in savings accounts , 168 Political office, holding of, by directors and officers of Federal Reserve Banks ..., 2 Postal funds in nonmember banks, deposit of...... 331 IXDEX TO VOLUME 2, Press statements: Anonymous circular sent out from Philadelphia 53 Applications to act as director under Kern amendment to Clayton Act 514 Board not to interfere with matters of State legislation ... 1 121 Check clearing and collection 260 Decision of supreme court of Illinois re section 11 (k) of Federal Reserve Act 28 Investments in foreign obligations 661 Pennsylvania escheat law not applicable to national banks. 121 "Private banker," interpretation of, as used In Clayton Act 588 Promissory notes: Eligibility of, when payable "on or before" a certain date 394 Of member banks, advances on— Amendment to Act permitting 440, 513 Establishment of 15-day rate on 513 Security for 513,685 Purchase of, regulation of Board on 530 Raw material, eligibility of paper based on purchase of 65 Real estate agents, amendment to section 5202, Revised Statutes, permitting member banks to act as ,• 440 Real estate loans 272, 273 Amendment to section 24 of Act as passed by Congress 441 Certificates of eligibility on farm-mortgage paper, execution of 12 Improvements as part of value of property 608 Limitations imposed by section 5200, Revised Statutes 66,171,606 Loans on city real estate limited to one year.. * 606 Maturity of 226 One-year limit on 602, 606 Power of national bank in central reserve city to make 609 Purchase of, by national banks 120 Recommendations by Board for amendment to section 24 of Act 326 Regulation of Board on. 537 Renewal of 602 Receipts and disbursements of the Federal Reserve Board 54 Redemption of currency, deposit of unfit currency with Federal Reserve Bank to avoid expense of shipment to Washington 115 Rediscounts with Federal Reserve Banks, limitations imposed by law 112, 224, 274, 457 (See also Commercial paper.) Regulations of the Board. (See Circulars and regulations.) Repeal of war t a x e s . . . . . . 512 XI Reports of condition: Page. By State authorities, right of Comptroller to accept 114 T .. Form of statement prescribed by State authorities regarded as fulfilling requirements of Act. ... 99 '' Reserve,'' bill to limit use of word 373 Reserves: Amendment to section 11 as passed by Congress. 439 Amendment to Act proposed by American Bankers' Association 8 Capital and reserve deposits of Federal Reserve Banks 98 Chart showing. 123 Comptroller's call, method of reporting reserves in 668 Member banks permitted to carry in Federal Reserve Banks any reserves now required to be held in own vaults 508, 606, 668 Of national banks and ratios of reserves to lgans, statement showing 506 Payment of, on November 16, 1916 598 Recommendations by Board for amendment to section 11 of Act 327 Vault reserves carried Vith Federal Reserve Banks 606, 668 Resources and liabilities of Federal Reserve Banks each week 46, 93,143,197, 252, 301, 364, 426, 499, 579, 650, 720 Rulings of the Board. (See Informal rulings.) Savings accounts: Presentation of pass books in case of withdrawal or deposit 168, 534, 611 Regulation of Board on 534 When not classed as time deposits 168, 611 Savings and loan associations, status of, under section 8 of the Clayton Act 118 Speeches: Harding, Hon. W. P. G.: Before Birmingham Chamber of Commerce. 180 Extract from address made by, before American Institute of Banking 587 Members of Board before bankers' and other associations 261, 309 Warburg, Hon. P. M., before New York Credit Men's Association 102 Stamp tax:. Acceptances not subject to 211 Certificates of stock exempt from 172 "Staples," definition of, as used in Regulation Q, series of 1915 523 State banks: Admitted to system 6,122, 206, 372, 513, 590 Capital required to join system 64 Form of report of condition prescribed by State authorities— Regarded as fulfilling requirements of act.. 99 Right of Comptroller to accept 114 XII INDEX TO VOLUME 2. State Banks—Continued. Page. Membership of, regulation of Board on 538 Status of, when joining system 393 State legislation, Board not to interfere with 121 Strong, Benjamin, governor of New York Federal Reserve Bank, leave of absence granted to 315 Tax: On Federal Reserve notes 273 War, repeal of, effective September 8, 1916 512 Thompson, H. B., appointed class C director of Philadelphia Federal Reserve Bank 509 Time deposits: Regulation of Board on .. 534 Open accounts 686 Savings accounts, when not classed as. 168, 611 Trade acceptances. (See Acceptances, trade.) Transfer agents, national banks not authorized to act as 456 Transportation charges on Federal Reserve notes and currency 71,111,115,259,456 Treasury bills of foreign governments, purchase of. 661 Treasury notes, 1-year, rights and obligations of Federal Reserve Banks to which issued 330 Treman, Robert H., appointed deputy governor of New York Federal Reserve Bank. 315 Trust companies, admission to system, status of.. 393,538 Trust powers of national banks, regulation of Board on 536 (See also Fiduciary powers.) Trustee, executor, etc., applications to act as. (See Fiduciary powers.) Unfit currency, deposit of, with Federal Reserve Bank to avoid expense of shipment to Washington. 115 Uniform bill of lading act passed at last session of Congress, reprint of 515 United States bonds: Allotment of, for \ear 1917. 666 Conversion of 2 per cent bonds into 30-year 3 per cent bonds and 1-year 3 per cent Treasury notes. 153, 156, 215,264,300, 316,330, 512, 647, 666 Federal Reserve Banks not required to purchase more during current quarter of 1916... 156, 264, 316, 512 United States bonds—Continued, Page. Purchase of, under section 18 13 Amount to be deducted 64 In the open market 12 Resolutions of Board regarding..... 156,316,512 Sale of 3 per cent, at 103f, by one of the Federal Reserve Banks '..... 215 Sale of, by banks in process of liquidation 170 Sales of, by Federal Reserve Banks, statements showing 579,647,719 Statements showing conversion of 300,647 Table showing amounts allotted and converted 648 To secure circulation, withdrawal of 215,224 War, European, payments to United States since outbreak of 592 War taxes, repeal of 512 Warburg, Hon. P.M.: Address before New York Credit Men's Association 102 Attending meeting of Joinf High Commission at Buenos Aires 152 Designated as Vice Governor of Federal Reserve Board 437 Warehouse and storage conditions, circular letter of Federal Reserve Bank of Atlanta regarding ' 448 Warrants: County, not eligible as security for promissory notes of member banks 609 Issued in anticipation of assured revenue, purchase of 170 Municipal, purchase of, regulation of Board on 535 Willis, Hon. H. Parker, leave of absence granted to 152 Wisconsin: Petition for transfer of banks from district No. 9 to district No. 7, action on, deferred 264 Hearing on reopening of petition 372,438 Petition granted, order of Board regarding . 596 List of counties and banks transferred 596,597 Work of the Federal Reserve Board 1,51, 99,151, 205, 261, 309, 371,437,507,587, 663