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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




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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 drawn upon it having not more
than three months7 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

$8, 957, 600
32, 436, 400
1,351, 700
1,450,000
7,021, 600

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.

$2,268,000
2,358,000
58,000

Bankers Trust Company
Guaranty Trust Company
Columbia Trust Company
Central Trust Company
Equitable Trust Company

DECEMBER 1,1918,

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.

Total.

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

In vault:
Held
Required

166,544

23,577

30,013

Excess
With Federal Reserve Bank:
Held . .
Required

Sept. 12.

203,258
181,760

216,180
186,180

123,441
125,230

150.151
132,958

21,498

Excess
Either in vault or with Federal Reserve Bank:
Required

30,000

-1,789

17,193

129,828

Excess o.

129,828

With
approved
agents:
Heldb
Required.

673

FEDERAL RESERVE BULLETIN.

DECEMBER l, 1916.

June 30.

$758,003
486,134

$768,123
513,355

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

Excess

$252,433
194.222

53, 792

Excess
With Federal Reserve Bank:
Held
Required

June 30.

$233/856
180,064

In vault:
Held
Required

Sept. 12.

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

Sept. 12.

reserve
'

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

Total reserve:
Held
Required

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

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.
than the total obligations settled during the Amount of Oct. 20, 1916, to Nov. 28, Federal Reserve Bank,
from
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
domestic exchange set heavily against the Settlement of—
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

1,793
13,955

194,653

11,216

4,000

1,000

560

240
550

6,156

1,106

1,056
1,100

3,880

Gold.

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.

6,156

Transfers.

946

Total
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
194,653

Deposited.

Net
Debit. Credit. debits.

Total '
debits.

Total
credits.

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

100
900
500

20
250

200

600
660"

500
2,000

200

2,760

12,720

450

450

Gold.

450

Transfers.

Withdrawn.

Deposited.

1,680

15,000
120

1,300
500
600
400
10
480 i
4,970

279

1,200

80 | 2,000
AQQ

...

3,600

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

....

15,200

4,252
15,578

Total
debits.

2,891

2,000

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.

10,000

Withdrawn.

Net
credits.

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

Total
debits.

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

29,901

1,000

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.

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

Changes in ownership of gold.

balance
in fund
after
clearing.

Decrease. Increase.

Nov. 16,

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

Gold.

4,920

139,480

3,062

300

• 1916,

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—
balBal- With- De- BalBal- WithBal- WithWithBal- Withance. drawn. Depos- ance. drawn. Depos- ance. drawn. Depos- ance. drawn. Depos- ance. drawn. pos- ance.
ited.
ited.
ited.
ited.
ited.
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
To 30 Over 30 Over 60
to 90
to 60
to 90
paper
days, in- over 90 days, in- days, in- days, inclusive. days. clusive. clusive. 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

?

1 Rate for bills of exchange in open-market operations.
2
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 have as "a
director or other officer or employee7' 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
bills ofc exchange should not be confused with the power assumed by a member bank when it accepts a
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
transactions. This section reads in part as draft or bill of exchange enters into a contract
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.
Considering the foregping questions in the purchase of a bill by the acceptor before maturity 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.

Percent
increase

Oct., 1916.
Allen town...
Altoona
,
Atlantic City.
Harrisburg..,
Philadelphia.
Reading
Scran ton
Trenton
Wilkes-Barre.
Williamsport.
Wilmington..
York
Total..

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
Dayton...
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!
Cincinnati
1,666,513 j 10,962,915 11,703,598 113.4
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
7,099,121!
Toledo.
show decreases over last year, as indicated in Youngstown.. 2,684 4,270 3,051,390! 9,593,984 2,494,863 35.1
1,052
404,504
13.2
1,315
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.

$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

. ...

,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

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 $500 Over $1,000 Over $2,500
)!O
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




=
.
0.7
.2
.1
.1

.i

.2'

Over $100
to $250.

Over $250
to $500.

0.3
.1

To $100.

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 maturingNumber of Number of
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

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




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

74.1

2
, 3

300.0

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

. . .

3

402

. . . •.

Total
District No. 3—Philadelphia:
Delaware
New Jersey
Pennsylvania
Total

Within 10
days.

After 10
but
within 30
days.

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

39.4

7.5

i
!
i
i

196
354
76
51

12
60
3
1

994

:

100.6
300.0
39.4

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—
Number of Number of
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£'

After 60 I
but
I After 90
within 90
days,
days. ;

Total
commercial
paper
discounted.

After 10
but
within 30
days.

Within 10
days.

. . . .

Total

2.5
11.1
2.6

938

,

District No. 11—Dallas:
Arizona
Louisiana
New Mexico
Oklahoma.
Texas

1
i . ... .

22.6 i

6
11
28
33
543
621

Total
District No. 12—San Francisco:
Alaska
. . .
Arizona
California
.
Idaho
Nevada
- Oregon
Utah
Washington

. .

.. . .

1
5
2
21
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

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

$167,800

769,000
8,200

70,800 |
7,200 |

$516,800
600
190,900
248,900
39,300

1,958,800 I

Total.

$75,500 I

87,800
160,800
74,200

St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.

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

$239,100
37,200

$17,800

$360,000
225,200
112,600

2,921,100

14,949,500

Kansas
City.

Dallas.

San Francisco.

$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

112,600

14,949,500

$300

400

41,100

64,200
7 666
$360,000

6,000

4,600

858,800
8,100

6,445,400 j 6,567,500
i

ib 8oo

145,000
1,219,000

19,800

Total.

5,000
7,600
10,500
24,000

$218,200

$3,666*

Oil

. . . .

Total for
first 10
months in
1916.

the ten months ending Oct. 31, 1916, distributed by

2,900
29,200

Peanuts
Prunes
Raisins
Wheat
Miscellaneous

October,
1916.

| 10,315,100

,,

146,666

....

i
j
j

Total

paper discounted by each Federal Reserve Bank during
classes.

Class.

Total to
Dec. 31,
1915.

Federal Reserve Bank.

360,000

225,200

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.]




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—

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

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
(includK h
Cleve- R ii c n - ing New Chicaland. 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 2278
2,278
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

816
1,840
849
362
871
148
4,070

71

65

28
57
94

374
1,151
294
382
887
441
3,155

191
630

21
426 i 1,180
750
2,299
619
759
474
1,009
5,160

9,057
19,380
4,219
4,978
8,179
6,826
43,582

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

149
227

183
459

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

11,553
4,805
3,719
4,118
717
24,912

50

300

19
261
8
250
339
90
948

69

"n

Total
for
system,

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 PhilaBoston, York. delphia. Cleveland.

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

Municipal warrants bought. United States bonds and Treasury notes. Total investment
operations.
All
State. other. Total.

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.

2*6*

4 per 1-year
cent. notes.

Total.

250.0

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
1
1 IS-4 1,166.0
2.0

3 per
cent.

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

Boston.
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




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

! 18,615 2,455 22,658
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

74,049
75,234
74,889
82,755
81,603

2,352
2,272
2,414
3,839
4,234

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

145
18
25
37
35

43,353 49,610
45,195 ,50,547
.46,975 53,028
51,648 58,194
53,382 62,597

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

26
32
39
40
45

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

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
86,032 10,291
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

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

3,620
3,140
2,890

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

13,050
13,050
13,550
13,710
14,210

4,220
3. " "

4,180

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

13,916
14,797
15,751
16,734
16,722

3,348
4,348
5,348
5,347
5,349

924
790
790
11,500
11,500
12,400
12,900
12,900

15,415
16,593
17,151
17,723
18.423

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

3,347
4,347
5,347
5,347
5,347
3,175
3,170
3,159
3,152
3,148

4,270
4,270
4,270
4,270
4,270

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

9

1

11

164 2,487

139

11

283

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

26,605
6,962

358

330

154

30

43

27

74

72
27,055
6,962

33,567

"i26*

314

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

175

196
252

196
53

110

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
99

10

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

1

Total

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

58

106
10

2

58

1.039 i

21

11

4

319
1
173
13

1

3
1

5

2

424

Total

1

10
1

308

1

1,561

Week ending Nov. 10.
United States mint or assay
office bars
Bullion, refined, domestic
United States coin

1

2,546

1,644

Total..

6
6

2,796

Week ending Nov. 17.

. t l , 750
\ >
1,750

275
2
5,950

1

250
1
1,643

6,227

5
25

5

j

United States mint or assay
office bars. .
Bullion, refined, domestic
United States coin
Foreign coin..

400

1

300

11

2,523

1
9

|
612 | 500

Total..

300

11

2,923

10

173

1

53

43
24
3,953
1
4,410

21

500

70

2
610

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

1914

1916

1915

1914

High.

JLOW.

4.69|

*520

High.

4.74
4.78
583

26.68
521|

64!

542
40&
24H529£

73
29.32
677£
42A
271
526

655
45§
27.90
513

46.35

5§

1915

Low.

High.

4.8355
4.8535

4.8425
4.859

4.77$
4.79

9 ^
514*
519|
40|
26.88

582

if
47.60

26.82
518|

64$
49.95

Low.

1916

High.

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

44.70
57

50}

June.
1916

1915

1914

Low.

High.

Low.

High.

4.75|
4.78
543J
82*
39

High.

Low.

4.81}
526

47.25 !
63|- i
49.95

Low.

High.

4.79J

511
518|
}
26.86
517J

46.70

Low.

1916

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


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102