Full text of Federal Reserve Bulletin : December 1917

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ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

DECEMBER, 1917

WASHINGTON
GOVERNMENT PRINTING OFFICE
1917

FEDERAL RESERVE BOARD.
EX OFFIGIO MEMBERS.
WILLIAM G. MCADOO,

Secretary of the Treasury,
Chairman.

W. P. G. HARDING, Governor.
PAUL M. WARBURG, Vice Governor.
FREDERIC A. DELANO.
ADOLPH 0. MILLER.
CHARLES S. HAMLIN.

JOHN SKELTON WILLIAMS,

Comptroller of the Currency.

H. PARKER WILLIS, Secretary.

SHERMAN ALLEN, Assistant Secretary and Fiscal
Agent.
M. G. 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 officers and directors may have it sent
to not less than ten names at a subscription price of $1 per annum.
No complete sets of the Bulletin for 1915 are available.
Bound copies of the Bulletin for 1916 may be had at $5 per copy.

SECOND EDITION OF THE INDEX DIGEST.
The Federal Reserve Board has had prepared, primarily for
its own use, a second edition of the Index Digest of the Federal
Reserve Act, by Hon. Charles S. Hamiin, member of the Federa! Reserve Board, the first edition of which was published
in 1915. While the edition is primarily for the use of the Board,
enough copies will be printed to supply the demand of banks
and others who may desire to purchase them. Those who desire copies should at once remit $1 (bound in paper) or $1,25
(bound in cloth) to the Federal Reserve Bank of the district in
which the subscriber is resident. Copies of the edition, when
published, will be transmitted to the Federal Reserve Bank
for distribution.
in

TABLE OF CONTENTS.
Page.

.Review of the month
War-savings certificates
Loans to directors of banks under section 22 of act
Income from Liberty bonds exempt from taxation
Standardizing commercial paper
Use of coin-counting machines
Statement of Secretary of the Treasury regarding nonconiiscation of bank deposits
Use of gold coins as holiday gifts discouraged
,
Success of the second Liberty Loan
State banks and trust companies admitted to the system during month
Letters of State banking department of Oregon regarding State bank membership
By-laws of branch banks
Credit needs of farmers.
Instructions for handling coupons from United States bonds
Bank failures during past 3 years compared with preceding 33 years
Commercial failures reported
Federal Reserve notes and national-bank notes issued and redeemed
Banks authorized to accept up to 100 per cent of capital and surplus
Fiduciary powers granted to national banks
New national-bank charters issued
Principal changes in the condition of leading European banks of issue since outbreak of the war
Charts showing
Gold-settlement fund transactions
Operations of the Federal Reserve clearing and collection system
Informal rulings of the Federal Reserve Board
Law department
Business conditions throughout the Federal Reserve districts
Discount operations of the Federal Reserve Banks
Acceptances
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account of Federal Reserve Banks and agents
Earnings on investment of Federal Reserve Banks
Gold imports and exports
Discount rates in effect
Index to volume 3 of Bulletin

917
925
929
930
930
930
931
931
932
933
934
934
937
938
939
940
941
941
941
942
942
944,945
947
948
949
952
958
976
979
983
985
987
988
988
989

FEDERAL RESERVE BULLETIN
VOL.

DECEMBER 1, 1917.
REVIEW OF THE MONTH.

No. 12

Loan $3,808,766,150, subscriptions by Federal
Reserve districts being as follows:

On October 1? 1917, the Secretary of the
Treasury invited subscriptions
Per cent
The second Lib; Total subscripof overat par and accrued interest,
Quota.
tions received.
i subscriperty Loan.
' tion.
from the people of the United
States, for $3,000,000,000 of United States of Boston
8470,950,050
$300,000,000
59
York
1,550,453,450
900,000,000
72
America 10-25 year 4 per cent convertible New
250,000,000
380,350,250
Philadelphia
52
300,000,000
48(5,100,800
62
gold bonds, of an issue authorized by act of Cleveland
120,000,000
201,212,500
68
Richmond
90,695,750
80,000,000
13
Atlanta
Congress approved September 24, 1917, the Chicago
585,853.350
420,000,000
39
120,000,000
54
184,280;750
right being reserved to allot additional bonds St. Louis
105,000,000
34
140.932,(550
Minneapolis
120,000,000
25
150; 125,750
up to one-half the amount of any oversub- Kansas City
4
77,899,850
75,000,000
Dallas
39
210,000,000
292,671,150
scription. Final returns received from the San Francisco
twelve Federal Reserve banks, and made public
Total
! 4,617,532,300 3,000,000,000 I
54
on November 9, show that the total subscriptions were $4,617,532,300—an oversubscripEvery Federal Reserve district, as thus
tion of $1,617,532,300, or approximately 54 shown, exceeded its quotum of the
per cent of the amount offered. This is a $3,000,000,000 of bonds offered. The full
greater oversubscription than was received in amount of the subscription was not accepted
the case of the first Liberty Loan, when on this occasion just as on that of the first
$2,000,000,000 of bonds were offered, and a loan. In speaking of the amount taken the
subscription of more than $3,000,000,000 was Secretary of the Treasury says: "Having
received. It is estimated by the Treasury De- announced that only one-half of the overpartment that the second Liberty Loan was subscription would be accepted, the Govsubscribed for by approximately 9,400,000 ernment must, of course, faithfully observe
individuals, and in this number 9,306,000, or that basis. Whenever loans are offered to
99 per cent, subscribed in amounts rang- the public, the banks and the public ading from $50 to $50,000, the aggregate of just themselves both consciously and unsuch subscriptions being $2,436,469,350. j consciously to the basis of the offering, and
The fact that so large a number sub-1 it would be extremely unwise to alter it after
scribed for bonds is significant of the wide- | the subscriptions have been received." The
spread interest of the people in the purposes Secretary adds that the impression which has
of the war, and of their determined support of prevailed in some quarters "that another
the Government in all measures required for offering of Government bonds will be made in
its vigorous prosecution. In conformity with j the month of January, 1918/' is without founthe original announcement, the Treasury ac- | dation, as, "in view of the large oversubscripcepted 50 per cent of the oversubscriptions, j tion of the second Liberty Loan" * * *
making the total issue of the second Liberty! this will not be necessary."

917

918

FEDERAL RESERVE BULLETIN.

A definite plan with respect to the new warsavings certificates, whose issue
War-savings
J
*.t"f
tes w a s a n n o u n c e c *- some time ago,
has now been worked out and
placed before the country in a circular issued
by the Treasury Department, under date of
November 15. The sum of such war-savings
certificates outstanding is not at any one time
to exceed in the aggregate $2,000,000,000 (maturity value). The amount of war-savings
certificates sold to any one person at any one
time is not to exceed $100 (maturity value),
and it is not to be lawful for any one person at
any one time to hold war-savings certificates
to an aggregate amount exceeding $1,000.
The certificates will be obligations of the
United States only when one or more stamps
have been affixed thereto. Each war-savings certificate will have spaces for 20 warsavings certificate stamps, and each stamp
will have a maturity value of $5 on January 1.
1923, which will accordingly give each such
certificate, when bearing its full complement
of such stamps, a maturity value of $100 on
that date. The details of the new issue are
furnished on page 925 of this Bulletin.
Provision has been definitely made for a plan
designed to relieve any possible
congestion or disturbance of
the money market such as
might be caused by the payment of taxes due
between June 15 and June 25, estimated to
amount to over $2,000,000,000. Under the
authority of the war loan act, approved September 24, 1917, the Secretary of the Treasury
announced that he would receive subscriptions at par and accrued interest for a limited
amount of Treasury certificates of indebtedness, payable June 25, 1918, with interest
at the rate of 4 per cent per annum, from
November 30, 1917. Federal Reserve Banks
were instructed to receive subscriptions, and
certificates were issued in denominations of
$500, $1,000, $5,000, $10,000, and $100,000.
The certificates have been sold, payment
to be made upon allotment, but not before
November 30. Any Treasury certificates of

DECEMBER 1,1917.

indebtedness now outstanding were accepted
in payment at par with adjustment of accrued
interest. Allotments were made in the order
that subscriptions were received. As authorized by the war revenue act of October 3, 1917,
collectors of internal revenue will receive certificates of this issue at par and accrued interest, under rules and regulations to be prescribed by the Secretary of the Treasury, in
payment of income and excess profits taxes
when payable at or before the maturity of the
certificates, but these certificates will not be
accepted in payment of or on account of bond
subscriptions. The amount of the first issue of
certificates so sold is $691,622,000.
The certificates will be exempt both as to
principal and interest from all taxation now or
hereafter imposed by the United States, any
State, or any of the possessions of the United
States, or by any local taxing authority, except estate or inheritance taxes, graduated
additional income taxes C' surtaxes''), and
excess profits and war profits taxes, now or
hereafter imposed by the United States upon
the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates
authorized in the act of September 24, 1917,
the principal of which does not exceed in the
aggregate $5,000 owned by any individual,
partnership, association, or corporation, is also
to be exempt from the graduated income
taxes. After allotment and upon payment.
Federal Reserve Banks will issue interim
receipts pending delivery of definitive certificates. Qualified depositaries are permitted
to make payment by credit for certificates
allotted to them for themselves or their customers up to amount for which each shall have
qualified in excess of existing deposits when
so notified by Federal Reserve Banks.
During the four weeks between October 26
and November 23 discountCondition of operations of the Federal ReFederal Reserve

Banks

• •* •

- j

j. i

serve 13a-nks, meiiuy incidental
to the financing of the second
Liberty Loan, continued on a large scale.

DECEMBER 1,1917.

919

FEDERAL BESEBVE BULLETIN.

[000 omitted.]
Following the payment of the 18 per cent
installment (Nov. 15) temporary liquidation of
Net
Federal 'Reserve Bank.
Oct. 26.
Nov. 23.
increase.
discounted bills set in, especially at the New
York bank, whose holdings of collateral notes
Boston
$34,919
S67,808
secured by Liberty bonds and certificates of New York
302,188
99,263
401,451
23,599
Philadelphia
24,919
48.518
indebtedness show a decline between Novem- Cleveland
27,699
33,532
61,231
17,051
Richmond
12,509
29,560
ber 9 and 16 of over 92 millions. Renewed Atlanta
14,301
3,079
17,380
59,888
Chicago..
43,866
103,754
pressure was brought to bear on the Federal St. Louis
24,147
25,120
973
11,018
.Minneapolis
19,306
8,288
Reserve Banks during the following week, Kansas City
25,001
37,658
12,657
17,297
19,193
1,896
"Dallas
as the result, of the large Government opera- San Francisco
17,576
34,928
17,352
tions, mainly in New York City. Accordingly,
Total bills.
the New York Federal Reserve Banks holdings Total United States securities..
Total municipal warrants
of collateral notes secured by war bonds and
Total investments held
certificates show an increase for the week
ending November 23 from $151,531,000 to
While the increase of operations has reduced
$299,234,000, while the total holdings by all
the reserve percentage from 71.7 to 64.7, it is
the banks of this class of paper went up during
interesting to note that the gold holdings of
the week from $208,229,000 to $365,492,000.
Federal Reserve Banks increased from $1,503,Holdings of other classes of discounts show
436,000 to $1,604,704,000 during the same
either much smaller increases, or else, as m
period.
the case of collateral notes secured by comThe subjoined table shows the manner in
mercial paper, substantial decreases.
.
which the first installment of
T>
Acceptances on hand show an increase foi
Payments on
the period from $177,590,000 to $209,905,000-, second liberty the second Liberty Loan was
all the banks, except those of New York (a * j O a n «
paid for at the several Federal
part of whose holdings were purchased by liesorve Banks:
other Federal Reserve Banks) and Chicago,
Payments as of Nov. 15 on second Liberty Loan.
showing larger holdings on November 23 than
[000 omitted.]
on the last Friday of October. Aggregate bill Federal Reserve AllotCertifiCash.
Credit.
Total.
cates.
Bank.
ment.
holdings of ail the banks increased during the
four weeks from $271,712,000 to $449,474^000. Boston
| 8408,000 $74,000 SI 79,000 ; $40,000 3293,000
975,000
York
il, 151,000 118,000 701,000 ; 161,000
Government financing accounts for most of the New
57.000 ii4,ooo ;i 32,000
203,000
Philadelphia
j 295,000
79.000
308,000
j 410,000 108; 000 no.ooo
discounting done by the Federal Reserve Banks Cleveland
11', 000
54,000
318,000
SO'.OOO Richmond
! 183.000
3,000
06,000
21,000
42,000 i
Atlanta
| 83; 000
during November.
()", 000
326.000
Uii.000 •
Chicago
| 520,000 167,000
23,000
122'
, 000
&), 000
I 150,000
Investments of the Federal Reserve Banks St.Lrinis
6o,ooo: 30', 000
84,000
Minneapolis
j 132,000
5-4.000
20.000 :
90,000
10,000
City
\ .136,000
in United States bonds show practically no Kansas
«s;ooo 2<000
37,000
(), 000
Dallas.....*
j 74,000
22,000 ;
9,000
167,000
i 261,000
change for the period, while the holdings of San Francisco
50,000 : 28.000
Si), 000
.!?», 809,000
841,000 1,477,000 ; 4<>9,000 2,787,000
Total.
United States short-term securities, composed
of 1-year Treasury notes and certificates of
indebtedness, increased from $55,876,000 to I It is interesting to note from the above
i statement the large extent to which the loan
457,850,000.
In the following table are shown the changes j was paid in full by subscribers, being 73 per cent
between October 26 and November 23 in the i of the total accepted. It will further be noted
totals of discounted and purchased bills held I that of this amount about 53 per cent was paid
by each of the Federal Eeserve Banks, also I by credit. From this showing it is apparent
changes in the aggregates of other classes of I that a very large number of subscribing banks
I qualified as depositaries, and it is largely due
earning assets:

920

FEDERAL RESERVE BULLETIN.

DECEMBER 1,1917.

to the satisfactory arrangements made by the account of certificates of indebtedness and the
Treasury with qualifying banks that a pay- 18 per cent installment of the second Liberty
ment of almost $3,000,000,000 could be made Loan. The banks' increases in loans and inwithout creating any congestion or disturbance vestments include both direct investments in
in the money market. During the month Government securities and amounts advanced
certificates of indebtedness fell due and were to their customers in connection with subredeemed by Federal Reserve Banks to the scriptions to the second Liberty Loan.
amount of $935,197,000. There remained to
The reserve percentage for all clearing-house
be paid on December 15 $1,385,296,000 of cer- banks, representing the ratio of net demand
tificates maturing on that date, a small part of deposits to aggregate cash in vault plus amounts
which, however, was received in payment on
due from legal depositaries, including the FedLiberty Loan account. In order to avoid the
eral Reserve Bank, shows accordingly a decline
necessity of withdrawing so large an amount on
from
19.1 per cent for the week ending October
that date the Secretary of the Treasury has
20
to
18.1 for the week ending November 3.
called the series of $300,000,000 Treasury cerFor
the
subsequent three weeks higher average
tificates of indebtedness dated September 17,
percentages
obtain, viz, 18.7, 18.9, and 20.7 per
1917, and maturing December 15, 1917, for recent,
indicating
a lessening strain upon the
demption on December 6, 1917, at par and
liquid
resources
of
the banks.
accrued interest pursuant to the provision for
A similar development is shown for those
such redemption contained in the certificates.
On December 6,1917, interest on all certificates banks which are members of the Federal
of said series will cease to accrue.
Reserve system, and whose reserve percentage
The series of $400,000,000 Treasury certifi- was figured on the basis of balances due from
cates of indebtedness dated September 26,1917, the Federal Reserve Bank only (i. e., excluding
and maturing December 15,1917, has been called the amount of vault cash). From 16.1 per cent
for redemption on December 11, 1917, at par for the week ending October 20 the ratio thus
and accrued interest pursuant to the provision figured shows a decline to 15 per cent on Nofor such redemption contained in the certificates. vember 3 and an improvement to 16 per cent
On December 11,1917, interest on all certificates for the week ending November 23. Average
of said series will cease to accrue.
excess reserves of all clearing-house banks deThe series of Treasury certificates of in- clined from $94,943,000 for the week ending
debtedness dated October 24, 1917, and matur- October 20 to $62,405,000 for the week ending
ing December 15, 1917, will not be redeemed November 3. For the following week the
before maturity but will be paid on December average shows a gain of over 22 millions, while
15, 1917.
average excess reserves for the week ending
Between October 20 and November 23 the November 23 were in excess of 93 millions.
59 New York clearing-house
For the trust companies in Greater New
tlonofthl\anks. b a n k s reported increases of York reserve percentages, as figured by the
$620,164,000 in average weekly State Banking Department, show a somewhat
loans and investments as against decreases of similar development, the average of 21 per cent
$226,987,000 in average net demand deposits for the week ending October 20 declining to
and $44,725,000 in average legal reserves. ! 20.1 per cent for the week ending November 3.
%
Their average Government deposits show an
| An improvement to 21.2 per cent for the sucincrease of $679,113,000, from $191,989,000 to
i ceeding week is shown, wiiich is followed, how$871,102,000. These changes were caused
\
largely by the heavy demands on the New York ever, by a decline to 20.3 per cent for the week
banks by both their local customers and out-of- ; ending November 17. For the week ending
town bank correspondents in connection with j November 23 this percentage is shown as 21.8,
Government financing, including payments on ! indicating a reserve position stronger than for
the initial week.

DECEMBER 1,

FEDERAL RESEEVE BULLETIN..

1917.

Average excess reserves, including vault cash,
of the II clearing-house banks in Boston likewise indicate a successive decrease from
$18,527,000 to $16,853,000 for the two weeks
following October 20. For the subsequent
two weeks these averages rise, the average for
the week ending November 17, $20,318,000,
being $1,791,000 larger than for the initial
week. Excess reserves for the week ending
November 24 averaged $10,086,000, the lowest
level for the period under review.
For those Philadelphia clearing-house banks
which are also members of the Federal Keserve
system excess reserves proper (i. e.? disregarding amounts of vault cash) show much smaller
changes, the amounts varying between
$5,432,000 for the week ending October 20 and
$7,453,000 for the week ending November 10.
For the latter and subsequent weeks the list
of member banks includes the Girard Trust
Co., with considerable average excess reserves.
Excess reserves of these banks for the week
ending November 17 show a decline to
$6,534,000, followed by a considerable increase
to $9,583,000 for the week ending November 24.
During the past month the Board has designated as reserve cities Buffalo, N. Y., Toledo,
Ohio, Memphis, Tenn., Peoria, 111., Grand
Rapids, Mich., and Oakland, Cal., thus making
banks in those places subject to the reserve
requirement of 10 per cent against demand
deposits and 3 per cent against time deposits.
In view of the extensive fiscal operations
Reports by mem- which will be undertaken by
ber banks.
the Government during the
period of the war, it has been thought by the
Board desirable that those in charge of these
operations, the member banks themselves, and
the public should be able to have a clear view at
all times of the financial situation. To this end
the Board has decided that the member banks
in about 100 of the most important cities should
be requested to transmit once a week to their
respective Federal Reserve Banks a condensed
statement showing the principal items, such
as deposits, loans, investments, cash, Government obligations owned, and loans on such
securities. The preparation of these statements will involve but little labor and when

26416—17

921

tabulated they will reflect quite accurately the
changing conditions in money and credit.
The information given will thus be valuable
to the business community and to the banks.
It is intended that the figures be reported to the
Federal Reserve Banks at the close of business
on Friday of each week, beginning December 7.
and that a summary be made by each Federal
Reserve Bank and telegraphed to the Federal
Reserve Board not later than the following
Thursday, for publication when the Board's
weekly statement is issued on Saturday.
As the leading State banks and trust companies are now members of the system, it will
be possible for the first time regularly to publish
statistics which will include figures from both
the national banks and State banking institutions. The necessary forms have been transmitted, and each of the Federal Reserve Banks
has been requested to instruct the member
banks of those cities which are situated in its
district. Additional cities in each district will
be from time to time added upon request of the
Federal Reserve Bank of each district.
In this connection it should be noted that
a gratifying feature of the past month's operations has been the continued movement of
strong State institutions into the Federal Reserve system. In all, 59 institutions were admitted during the month, their total capital and
surplus being $134,511,731, and their combined
assets $1,190,986,947. State institutions in all
parts of the country are manifesting a patriotic
and public spirited disposition to cooperate in
the strengthening of the banking resources of
the Nation.
At the request of the Federal Reserve Board,
governors of Federal Reserve
Meeting of
Banks on November 8 met
Governors.
with it in Washington and discussed matters of general interest regarding
the administration of the system.
On November 19 the quarterly meeting of
the Federal Advisory Council
was held in Washington. The
meeting proved to be unusually
important on account of the significance of
the questions presented for consideration,

922

FEDERAL RESERVE BULLETIN.

prominent among which was that of rates
of discount, and the question whether the
Federal Reserve system could with propriety
be employed in any way to relieve the necessities of the industrial enterprises of the country. On both points the view of the Advisory
Council was the same as that which has guided
the Board, this view being that the system
must use every effort to maintain its liquid
character and that commercial paper regarded
as eligible for discount must be of a kind calculated to provide its own means of liquidation.
Admission of long-term obligations, or obligations short-term in form only, but requiring
continual renewal and incapable of settlement
within a reasonable time by the use of funds
growing out of« business transactions directly
financed by them, was regarded as unquestionably opening an avenue of danger to the
system, both because of the unliquid character
of the paper, and because of the very large
quantity of such paper almost inevitably to
be expected for discount under present conditions, should paper of this character be held
admissible for discount at Federal Reserve
Banks.
The attitude of the Council with respect to
rates of discount was distinctly that they could
to advantage be increased, such advance being
called for by the growing pressure upon bank
resources, and the necessity of discouraging
unnecessary applications for discount. Discussions during the sessions of the Council
covered other questions of general importance
affecting the system which are now pending,
and resulted in recommendations to the Board
which have been taken under advisement.
As the requirements of war financing absorb
a larger share of the capital
available in the financial
market, there is a disposition
on the part of borrowers to put their paper into
a form available for discount at Federal Reserve Banks in order that it may gain a wider
field of sale, and may be enabled to take advantage of the lowest possible rate offered at
any time. It is highly desirable that the paper

DECEMBER 1.1917.

of the country should in every possible way be
brought into conformity with the requirements
of the Federal Reserve Act and of the regulations of the Board, and that there be at all
times as large a proportion of banking discounts and investments in the form of strictly
liquid paper eligible for presentation to Federal
Reserve Banks as is possible. The campaign
of education which the American Trade
Acceptance Council is now carrying on is contributing strongly to this desired end. It is,
however, undesirable that in this process of
reshaping the commercial paper of the country
there should be developed any kind of paper
technically eligible for discount at Federal Reserve Banks, but in fact not conforming to the
spirit and purpose of the Act and the regulations under it. During the past month the
attention of the Board has been directed to a
plan for financing corporations for approximately two years by means of a series of 90-day
notes, issued under an agreement with the borrower providing for seven renewals. As statements have appeared in the press that notes of
this kind are eligible for rediscount by Federal
Reserve Banks, the Board thought it best to
state definitely that renewal agreements of this
nature destroy the self-liquidating character of
the notes and render them undesirable as investments for Federal Reserve Banks. This opinion is in harmony with the Board's ruling made
about a year ago in the case of certain acceptance credits, in connection with which the
Board laid stress upon the point that the discount market, which is intended to deal with
short term and commercial borrowings, should
not be made to exercise functions properly
pertaining to the investment market.
Changes in rates of discount at Federal Reserve Banks have been under
Rates of
advisement by the banks and
count.
by the Federal Reserve Board
for some time past, and after careful consideration on November 26 the Federal Reserve
Board suggested to Federal Reserve Banks
that the time had come to increase their
schedules in the near future, due consideration

DECEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

in fixing the proper moment being given to local
conditions. This suggestion has been generally
adopted by the banks, the schedule of rates
being approved by the Board on November
28, and resulting in the establishment of the
following rates:
Discount rales approved by the Federal Reserve Board.
Commercial paper maturing—

Federal Reserve
Bank.

"Within 15
days, including
member
banks' collateral
notes.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta.
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco..

16 to 60

I
Paper secured by U. S.
certificates of indebtedness or L i b e r t y
loan bonds, maturing—

Federal Reserve
Bank.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco..

61 to 90
days.

Agricultural and
live-stock
paper over
90 days.

Within 15
days, including
member
banks' collateral
notes.

16 to 90

Trade acceptances
maturing within—

Ito60
days, inclusive.

61 to 90
days, inclusive.

4
4
4
4
3*
4"
4
4

3i
4

4
4

4
4
4
4
4
4
4

NOTE 1.—Rate for acceptances purchased in open market 2\ to 4 per
cent, except for San Francisco, whose rate ranges from 2\ to 4£ per cent.
NOTE 2.—Kates for commodity paper have been merged with those
for commercial paper of corresponding maturities.

These advances in rates are in harmony with
the generally upward tendency of market rates
of interest in the country at large, and are a
recognition of the changed conditions of
demand for and supply of loan capital existing
throughout the country as a whole. It will be
noted that the so-called commodity rate has
for the time being been eliminated, the only

923

preferential rate retained being in favor of
paper secured by Government obligations.
The former classification under which preferential rates upon acceptances and short term
paper were established remains in effect. The
slight advances in rates now introduced are
likely to have their most important effect by
way of suggestion or caution to member banks
which might otherwise apply too freely for
discount during a period which should as far
as possible be devoted to timely reductions of
loans in harmony with the policy of accelerating
the absorption of Government obligations by
restriction and savings.
During the past month the organization, of
the proposed branches of reserye b nks at
!
^
Pittsburgh, Cincinnati, and elsewhere has been
given detailed study," and it has been determined to introduce, where conditions appear
to require such action, a new type of branch
organization. Elsewhere in this issue will
be found a draft of branch by-laws as
amended to meet the requirements of the new
plan. It will be noted that the principal distinction between this plan and the old branch
organization is found in the fact that under the
new plan no distinct area or territory is to be
assigned to a branch. Consequently no theoretical capital will be assigned to the branch,
nor will the member banks in any specific territory be required to deal with the branch. The
branch will be established upon the theory
that it is an office of the Federal Reserve
Bank of the district, opened for the convenience of such member banks as may desire
to use it. The routine operations of the
branch will be conducted by the manager
and the board of directors, subject to the
supervision of the directors of the parent Federal Reserve Bank and of the Federal Reserve
Board. A collection zone will be allotted to
each branch, and checks drawn upon banks
located in this zone may be sent to the branch
by any member bank in order to save time in
transit and to reduce float. The resulting
credit will be reported by the branch to the
Federal Reserve Bank.

924

FEDERAL BSSEEvE BULLETIN,

The member banks will continue to send their
offerings for discount to the Federal Keserve
Bank, except that any bank located in the collection zone allotted to a branch and having
signified its desire to deal with the branch may
have the option of offering its paper for discount to the branch. Paper which, in the
opinion of the directors or the discount committee of the directors of the branch, is eligible,
may be passed immediately to the credit of the
member bank on the books of the branch, subject to approval by the Federal Reserve Bank.
Each member bank located in the collection
zone of a branch bank will be expected to advise
the FederalReserveBank as to whether it wishes
to treat the branch bank as its Federal Reserve
correspondent. If a bank so elects, it will
transact all its Federal Reserve business with
the branch, except that it may send checks
direct to the Federal Reserve Bank or to any
other branch in its district for credit of its
account with its own branch. In the matter
of exchange transfers, currency shipments and
cash deposits and withdrawals, its dealings will
be with its own branch and not with the Federal Reserve Bank.
Each Federal Reserve branch will forward to
the Federal Reserve Bank of its district a daily
transcript of all business transacted, showing
in detail credits given for loans, reserve credits
given on account of collected items, and checks
paid for member banks. The Federal Reserve
Bank will then make proper entries on its
books in order to maintain a record of the reserves of all member banks in its district.
During the month of November the work of
the Board in connection with the control of the
country's gold supply, has continued. Certain branches of
^jojementof
foreign trade have found it
necessary to ask for the release of considerable
gold, and remedial action has accordingly been
taken, notably with respect to Mexico and Canada. A special conference with representatives
of the Canadian bankers resulted in the Board's
undertaking to release $25,000,000 of gold prior
to July 1, 1918, in amounts not to exceed

D3CKHBEK. 1. 1917.

$10,000,000 in any one month. This permission has not been largely availed of, because
the action taken of itself went far toward stabilizing exchange. Negotiations have been in
progress with various foreign countries looking to the establishment of a plan which would
result in the furnishing of exchange either
through deposits made with the Federal Reserve Bank in favor of such country, or through
some other means of relief. A notable example
of the purpose of these negotiations is afforded
by arrangements made by the Secretary of the
Treasury to supply to the importers of the
United States rupee exchange for the purpose
of satisfying the legitimate trade requirements
of the country. The embargo on gold exports
has made it difficult for importers of the
United States to find remittances for their
purchases in India. The Secretary of the
Treasury has placed in the hands of the Federal
Reserve Board the administration and apportionment of these rupee drafts and the Board
has taken the necessary steps so that merchants
requiring such remittances can make their applications through the Federal Reserve Bank
of their district and receive allotments to cover
their requirements. The amount of rupees
now available is estimated as sufficient to cover
immediate requirements of trade, and it is
hoped that further arrangements can be made
to take care of the future requirements as they
arise from time to time. The question of
gold export control has been given a new aspect by reason of the development of the larger
problem of control of foreign trade in general with a view to discouraging the importation of unnecessary articles. Regulations relating to the licensing of foreign exchange
transactions have also been worked out, and it
is expected will be put into operation at an
early date.
For the five weeks ending November 16 the
net outward movement of gold
totaled $4,101,000, compared
with $26,367,000 shown for the
immediately preceding five-week period. Gold
imports totaling $4,635,000 are credited largely

DECEMHEH 1,11)17.

FEDERAL EESEEVE BULLETIN.

925

to Canada, Mexico, Colombia, and other Amer- \ issue goes to press is that the campaign for the
ican countries, while gold exports, totaling; sale of the certificates will begin on December 1
$8,736,000 were consigned chiefly to Mexico, | or shortly thereafter.
Peru, and British India. Since January 1 of j The act of Congress of September 24, 1917,
the present year the country's stock of gold "To authorize an additional issue of bonds to
increased through net imports by $187,332,000, meet expenditures for the national security and
7
while the gain since August 1, 1914, is defense,' etc., provided, among other things,
$1,056,094,000, as may be seen from the for the issuance by the Secretary of the Treasury of two billions of war savings certificates.
following exhibit:
The act provided that these certificates were
(ooo's omitted.)
to be issued in small denominations and the SecExcess of retary of the Treasury was authorized to have
imports
over
stamps printed to evidence payments therefor.
exports.
The object of Congress was twofold: First, to
1
581,719 secure funds to meet the needs of the GovernAyg.ltoDec.31,1914
! $23,253 $101,972
31,426
420,529
Jan. 1 to Dee. 31,1915
; 451,955
155,793
529,952 ment; and, second, to make it possible for every
Jan. 2 to Dec. 31,1916
| 685,745
187,332
Jan. 1 to Nov. 16,1917
: 549,715 362,383
man, woman, and child in the country to lend
Total
| 1,710,668
654,574 1,056,094
money to the Government at rates of interest
1
equal to those carried by Government bonds,
Excess of exports over imports.
yet in such a way as to meet public conErratum.
venience.
On pages 844-845 of the October Bulletin
A committee, appointed by the Secretary of
two diagrams appear which show the move- the Treasury, has been working out the details
ment of the price of silver for the period 1882 and the machinery necessary to put this law
to September, 1917. The upper curve in either into effect, and the general plan is as follows:
diagram is intended to illustrate changes in the
Provision is made for the issuance of the
price of an ounce of silver, and the lower curve "war savings certificates.'7
The certificate
changes in the price of 371J grains of silver, takes the form of an engraved sheet bearing
the pure silver contents of an American dollar. upon its face the name and address of the
In the diagram the upper curve was erroneously investor or owner. It is given, without cost,
marked " ( 1 ) " instead of "(2)," while the to anyone who is ready to make the first inlower curve was marked '' (2)" instead of '' (1)." vestment for a large '''war savings certificate
Attention is called to this error, so proper cor- '. stamp," which sells during this December and
rections may be made in the reader's cop}7. ; January at $4.12, and thereafter through the
I months of 1918 at I cent more each month.
: Each certificate is designed to carry 20 of these
War Savings Certificates.
I large stamps, and since the value of each stamp
On page 730 of the October Bulletin refer- : increases with each successive month, the cerence was made to the committee on war savings ! tificate, which represents the combined value
certificates, of which Mr. Frank A. Vanderlip, i of the certificate stamps affixed to it, increases
president of the National City Bank of Newi in value each month in equal proportion. In
York, is chairman, appointed by the Secretary • other words, at the end of five years from the
of the Treasury under provisions of the act of ; date of issue, to wit, January 1, 1923, the GovSeptember 24, 1917.
; eminent will redeem and pay for each stamp
An enormous amount of detail work has been i on the certificate $5, and will redeem and pay
required and an immense amount of printing ; for a filled certificate containing 20 stamps
and engraving done;1 but the expectation as this : $100. This payment by the Government rep-

926

FEDERAL BESEBVE BULLETIN

DECEMBER 1,1917.

resents the original cost of the stamps, together years. Thus|eacM$4.12 paid in grows in value
with interest at the rate of 4 per cent each year, from dayftofdayjuntii it [becomes worth $5 at
compounded quarterly.
the end of five years.
It is expected to make arrangements with j To facilitate the accumulation by those of
banks to act as custodians of certificates for small means of the price of the certificate stamp
investors; and as a further protection any in- sold at $4.12 to $4.23, provision is made for the
vestor may, if he chooses, register his certifi- sale of 25-cent stamps which may be accumucates with the stamps thereto affixed, at any j lated upon a card and turned in as payment for
money-order post office.
! certificate stamps. This should appeal espeTo take care of the case of the investor who, , cially to school children; hence the committee
for any reason or at any time, must ask for the Ihas prepared an attractive card, known as a
refund of his money from the Government, j "thrift card," upon which the 25-cent thrift
provision is made so that on suitable notice he stamps will be affixed. Sixteen of these
will receive what he paid plus 1 cent per month thrift stamps, with the necessary small change
thereafter for each stamp on the certificate. to bring the total up to the price of the
This is slightly less than the rate of increment certificate stamp, can be turned in to pay for
he would receive if the stamps were held for such stamps.
their full term. This provision for redempAlthough the first issue of certificates and
tion is made necessary by the fact that cer- stamps are all to be printed as of the series of
tificates can not be sold and are not trans- 1918, provision has been made for anticipating
ferable nor payable to bearer. At the same their sale so as to enable holiday makers and
time this privilege is not given in order to en- Christmas givers to avail themselves of the
courage redemption, for the whole purpose of privilege of helping the Government in its need
the Government in borrowing these funds is and at the same time make worthy gifts to
to make a five-year loan, which purpose is their friends and little ones. With this object
nullified if the return of the money is demanded in view, it is intended to arrange for the issuby the investor.
ance and sale of the 1918 certificates and stamps
As all thoughtful people must appreciate, the early in the month of December.
Government is appealing to all its people for
Every post office in the land will have them
aid of one kind or another. From those who on sale; all banks and many stores and other
can fight it asks for military service; from those reputable agencies will also be prepared to
who can spare from their cash means (i. e., sell them. Many employers of labor will offer
earnings or savings, or both) it demands finan- their employees facilities for purchasing these
cial assistance, and this it takes partly in the war-savings certificates.
form of taxes and partly in the form of borrowFinally, the object of the loan in this form
ing. The difference between this method of is to give every man, woman, and child in
Government borrowing and that provided for the United States the opportunity of doing his
in the sale of Liberty Loan bonds lies in the or her bit to help win the war and aid in the
fact that in the latter case larger units are great task of bearing the torch of liberty to
dealt with and the interest is paid back to the
every land and every home. It is believed
lender every six months, while in the case of the
that the campaign of education about to be
war savings certificates, which bear the same
launched will serve the country in a permarate of interest as the last Liberty Loan bonds,
nent
and lasting way in developing habits of
a much larger number of units are dealt with
thrift
in all our people.
and the interest, because it is necessarily small,
The
Treasury circular relating to waris added to the principal and the accumulated
savings
certificates
is as follows:
sum paid at maturity, or at the end of five

DECEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

[1917. Department Circular No. 94. (War-Savings Circular
No, I.) Loans and Currency.]

owner of each war-savings certificate must be
written upon such, certificate at the time of
the issue thereof.
TSEASUIIY DEPARTMENT,
OFFICE OF THE SECRETARY,
War-savings certificate stamps, series of
Washington, November, 15,1917.
1918, will be issued in 1918 at the following
The Secretary of the Treasury offers for prices:
sale to the people of the United States an issue January
$4.12 ; July
$4.18
of United" States war-savings certificates, February
4.13 ! Augustm
4.19
4.14 ' September
~ '
4.20
series of 1918, authorized by act of Congress, March
4.15 October
4.21
approved September 24, 1917. Payments for April
May
4.16 November
4.22
y
or on account of such war-savings certificates J
4. 23
4,17 December
must be evidenced by United States war- June
savings certificate stamps, series of 1918,
The average issue price above fixed for the
which are to be affixed thereto. The sum of year 1918 with interest at 4 per cent per annum
such war-savings certificates outstanding shall compounded quarterly for the average period
not at any one time exceed in the aggregate to maturity will amount to $5 on Januarv
$2,000,000,000 (maturity value). The amount 1. 1923.
of war-savings certificates sold to any one
PAYMENT AT MATURITY.
person at any one time shall not exceed
$100 (maturity value), and it shall not be
Owners of war-savings certificates will be
lawful for any one person at any one time to entitled to receive, on January 1, 1923, at the
hold war-savings certificates to an aggregate Treasury Department in Washington, or at a
amount exceeding $1,000 (maturity value). money-order post office, upon surrender of such
War-savings certificates, war-savings certifi- certificates and upon compliance with all other
cate stamps, and United States thrift stamps provisions thereof, $5 in respect of each war(described below) may be purchased, at the savings certificate stamp, series of 1918, then
prices hereinafter mentioned, at post offices, affixed thereto; but no post office shall be reand at numerous banks and other agencies quired to make any such payment until 10 days
to be appointed by the Secretary of the Treas- after receiving written demand therefor.
ury. Advance sales will begin December
PAYMENT PRIOR TO MATURITY.
3, 1917. All sales of war-savings certificates
and war-savings certificate stamps made in
Any owner of a war-savings certificate, at his
December. 1917, will be at the January,
1913, price, and the date of issue of all certifi- option, will be entitled to receive at any time
after January 2, 1918, and prior to January 1,
cates so sold will be deemed January 2, 1918.
1923, at a money-order post office, upon surrender
of his certificate and upon compliance
DESCRIPTION OF WAR-SAVINGS CERTIFICATES. with all other provisions thereof, in respect of
war-savings certificate stamp, series of
A United States war-savings certificate, each
1918,
affixed to such certificate, the
series of 1918, will be an obligation of the amountthen
indicated
the following table; but
United States when, and only when, one or no post office shallin make
any such payment
more United States war-savings certificate until 10 days after receiving
written demand
stamps, series of 1918, shall be affixed thereto. therefor:
Each of such war-savings certificates will have
spaces for 20 war-savings certificate stamps,
1920
1921
1918
1922
Month.
1919
series of 1918, and each of such stamps thereto
affixed will have a maturity value of $5 on
$4.12
84.24
34.36
U. 48 U. 60
January 1, 1923, which will accordingly give February. 4.13
4.25
4.37
4.49
4.61
4.50
4.62
4.14
4.38
4.26
each such certificate, when bearing its full March 4.15
4.51
4.63
4.27
4.39
complement of such stamps, a maturity value May
4.52
4.40
4.64
4.16
4.28
4.41
4.53
4.65
4.29
4.17
of $100 on said date. No war-savings certi- July
4.42
4.54
4.30
4.66
4.18
4.55
4.67
4.19
4.43
4.31
ficate will be issued unless at the same time August
4.32
4.44
4.56
4.20
4.68
one or more war-savings certificate stamps September
4.57
4.45
4.21
4.33
4.69
October
4.22
4.34
4.46
4.58
4.70
November.
shall be purchased and affixed thereto, but no December
4.35
4.23
-1.47
4.59
4.71
additional charge will be made for the warsavings certificate itself. The name of the Jan. 1,1923, 85.

928

FEDERAL RESERVE BULLETIN.

REGISTRATION.

War-savings certificates may be registered
without cost to the owners at any post office
of the first, second, or third class, subject to
such regulations as the Postmaster General may
from time to time prescribe, and payment in
respect of an}" certificate so registered will be
made only at the post office where registered.
Unless registered, the United States will not be
liable if payment in respect of any certificate
or certificates be made to a person not the
rightful owner thereof.
WAR-SAVINGS CERTIFICATES NOT TRANSFERABLE.

DECEMBER 1,1917.

series of 1918, and upon such exchange the
owner of such thrift card must pay the difference between $4 and the current issue price of
war-savings certificate stamps during the
month in which such exchange is made, as
shown by the following table:
January
February
March
April
May
June

$4.12
4.13
4.14
4.15
4.16
4.17

! July
\ August
j September
| October
! November
| December

$4.18
4.19
4. 20
4.21
4. 22
4. 23

METHOD OF DISTRIBUTION AND SAL.;.

POST OFFICES AND FEDERAL RESERVE BANKS.
War-savings certificates are not transferable
and will be payable only to the respective
On or about December 3, 1917, war-savings
owners named thereon, except in the case of certificate stamps and United States thrift
the death or disability of any such owner.
stamps (together with thrift cards and warsavings certificates, with suitable pocket enTAX EXEMPTION.
velopes for such certificates) will be furnished
War-savings certificates shall be exempt, (1) to post offices for sale to the public and
both as to principal and interest, from all taxa- to agents of the first class and (2) "to Federal
tion now or hereafter imposed by the United Reserve Banks, as fiscal agents of the United
States, any State, or any of the possessions of States, for distribution to agents of the second
the United States, or by any local taxing au- class and also for sale to banks which are
thority, except (a) estate or inheritance taxes, agents of the first class; the classification of
and (6) graduated additional income taxes, such agents being hereinafter provided for.
commonly known as surtaxes, and excess prof- Post offices and Federal Reserve Banks will
its and war-profits taxes, now or hereafter maintain available supplies of stamps, certifiimposed by the United States, upon the income cates, and cards in amounts sufficient to meet
or profits of individuals, partnerships, associa- the requirements for such distribution and sales.
tions, or corporations. The interest on an
amount of bonds and certificates authorized
OTHER AGENCIES.
by said act of September 24, 1917, the principal
Banks, bankers, and trust companies; railoi which does not exceed in the aggregate
$5,000, owned by any individual, partnership, road and express companies; department and
association, or corporation, shall be exempt other retail stores; the duly authorized reprefrom the taxes provided for in clause (b) above. sentatives of labor, fraternal, and other associations; and other corporations, partnerships,
and individuals; who patriotically offer their
THRIFT CARDS AND THRIFT STAMPS.
services without expense, either to the United
Payments on account of war-savings certifi- States or to purchasers, will be among those
cates may also be evidenced by United States whom the Secretary of the Treasury will in his
thrift stamps, having a face value of 25 cents discretion appoint as agents to sell war-savings
each but bearing no interest. United States certificate stamps and the United States thrift
thrift stamps, however, must not be affixed to stamps and to issue war-savings certificates
war-savings certificates, but only to thrift and thrift cards.
cards, which may be obtained without cost.
Blank forms of application for appointment
Thrift stamps as such are not directly redeema- as agent, with necessary information as to
ble in cash, but each thrift card will have execution and filing, may be obtained from any
spaces for 16 such thrift stamps, and a thrift money-order post office, from agent banks,
card, when bearing its full complement of such or from State or local representatives of the
stamps, may be exchanged at a post office or National War-Savings Committee. Appointother authorized agency, on or before December ments will be made only under authorization
31, 1918, for a war-savings certificate stamp, of the Secretary of the Treasury.

FEDERAL BESEBVE BULLETIN.

DECEMBER 1,1917.

929

No agent shall sell any United States thrift
OTHER DETAILS.
stamp at any price other than 25 cents for
each stamp, nor any war-savings certificate
War-savings certificates will not be receivstamp at any price other than the current issue able as security for deposits of public money
price of such stamp during the month in which and will not bear the circulation privilege.
sold, as hereinabove specified.
The Secretary of the Treasury reserves the
right at any time to revoke any or all apCLASSIFICATION OY AGENTS.
pointments of agents, to withdraw war-savings
Two classes of agents will be appointed: I certificates, war-savings certificate stamps,
First, agents of the first class, who may neither ; or United States thrift stamps from sale, to
obtain nor hold at any one time in excess of | refuse to issue or to permit to be issued any
$1,000 of war-savings certificate stamps (ma- war-savings certificates or thrift cards, and
turity value); second, agents of the second to refuse to sell or to permit to be sold any
class, who may obtain at any time or times in war-savings certificates or war-savings certifiexcess of $1,000 of such stamps (maturity cate stamps or United States thrift stamps to
any person, firm, corporation, or association.
value) for sale to the public.
The right is also reserved to make from time
AGENTS OF THE FIRST CLASS.
to time any supplemental or amendatory regulations which shall not modify or impair the
Agents of the first class may obtain, for sale terms and conditions of war-savings certifito the public, from post offices, agent banks, cates issued or to be issued in pursuance of
or other authorized agents, war-savings certi- said act of September 24, 1917.
ficate stamps in any amount desired, not, howFurther details may be announced by the
ever, in excess of $1,000 (maturity value), Secretary of the Treasury from time to time,
together with an adequate supply of war- information as to which will be promptly fursavings certificates, upon payment for such nished to postmasters at money-order post
stamps at the current issue price thereof during offices and to other agents.
the month in which such stamps are thus
obtained. Similarly, agents of the first class
may obtain, for sale to the public, United
Indorsement by Directors.
States thrift stamps, together with an adequate
supply of thrift cards, in any amount desired
In a circular letter, dated July 24, it was sugupon payment for such stamp3 at 25 cents
each.
gested by the Board that in compliance with
AGENTS OP THE SECOND CLASS.
section 22 a resolution of tho board of directors
Agents of the second class will be required to of a member bank might be adopted, substandeposit with the Secretary of the Ireasury, tially as follows:
or with such agencies as he may designate,
That the president, cashier, or assistant cashier
United States bonds of any Liberty Loan, or of Resolved,
this bank be, and he is hereby, authorized to discount
United States certificates of indebtedness, the notes, drafts, or bills of exchange for
, a director of
aggregate par value of which shall be at least this bank, on the same terms and conditions as other notes,
bills of exchange, or other evidences of debt are
equal to the aggregate amount of war-savings drafts,
discounted for customers of the bank: Provided, The aggrecertificate stamps, at the issue price thereof gate
amount of such notes, drafts, and bills of exchange disduring December, 1918, as specified above, counted for such director and remaining unpaid shall at
: Provided further, That
plus the aggregate face value ox United States no time exceed the sum of $
any case in which any note, draft, or bill of exchange is
thrift stamps obtained by such agents, re- in
discounted under authority of this resolution a report shall
spectively. A further Treasury Department be made thereof at the next subsequent meeting of the
circular will shortly be issued specifying the executive and discount committee of the board and such
terms and conditions for the deposit of such report shall show the aggregate amount of liabilities of
securities, or of such other securities, the such director to this bank.
deposit of which may be permitted by such
In order to remove any doubt as to whether
circular under the conditions to be therein such a resolution would cover notes discounted
specified, and covering other matters of detail
particularly concerning such agents of the by a third party bearing the indorsement of
directors or attorneys, it is suggested that whersecond class.

26416—17

930

FEDERAL RESERVE BULLETIN.

DECEMBER 1,1917.

ever this is necessary the foregoing resolution savings certificates authorized by the act of
September 24, 1917, are entitled to exemption
be modified to read as follows:
from all income and war excess profits taxes
Resolved, That the president, cashier, or assistant cashier upon the interest received on a principal
of thi3 bank be, and he is hereby, authorized to discount
notes, drafts, bills of exchange, or other evidences of debt amount not to exceed $5,000 face value of such
executed or indorsed by
, a director, or
, the obligations. If, for example, the holder owns
attorney, of this bank on the same terms and conditions as $5,000 Treasury certificates of indebtedness,
other notes, drafts, bills of exchange, or other evidences of $7,000 4 per cent Liberty bonds, and $2,000
debt are discounted: Provided, The aggregate amount of
such notes, drafts, and bills of exchange discounted for war savings certificates, he will be entitled to
such director or attorney and remaining unpaid shall at exemption from graduated additional income
no time exceed the sum of S
: Provided further, That taxes and war excess profits taxes upon only
in any case in which any note, draft, or bill of exchange is the interest received upon $5,000 of the aforediscounted under authority of this resolution a report shall
be made thereof at the next subsequent meeting of the said obligations. It is immaterial whether the
executive and discount committee of the board and such 4 per cent Liberty bonds were issued to the
report shall show the aggregate amount of liabilities of liolder in exchange for Liberty bonds of the
such director to this bank.
first series or Treasury certificates of indebtedness, or whether issued upon a new subscription. The exemption is upon the income from
Income from Liberty Bonds Exempt from Tax* $5,000 face value of the obligations issued by
authority of the aforesaid act of September 24,
The income from not to exceed $5,000 face 1917.
value of Liberty bonds, Treasury certificates of
indebtedness, and war savings certificates
•Standardizing Commercial Paper.
authorized by the act of October 3, 1917, is
Progress in standardizing commercial paper
exempt from all income and war excess profits
is
shown by the following, which was sent out
taxes. The following was sent out from the
by
the clearing-house banks of Portland, Oreg.:
office of Commissioner of Internal Kevenue,
Treasury Department, under date of Novem- To our customers:
On November 14, 1917, the following resober 8:
lution was passed unanimously by the PortTo collectors of internal revenue:
land clearing-house banks:
"Resolved, That on and after December 1,
Attention is called to section 7 of the act of
Congress approved September 24, 1917, pro- 1917, the banks of the Portland Clearing House
viding for the issue of 4 per cent Liberty will accept commercial paper only when it is
date and for a
bonds, Treasury certificates of indebtedness, drawn with a fixed maturity
77
and war savings certificates, which reads as period of six months or less.
Referring to the above resolution, kindly
follows:
That none of the bonds authorized by section one, nor of note that on and after December 1 next the
the certificates authorized by section five, or by section six, undersigned will not accept notes drawn "On
of this act, shall bear the circulation privilege. All such demand/' but will require all obligations to be
bonds and certificates shall be exempt, both as to principal drawn with a fixed date of maturity not exceedand interest, from all taxation now or hereafter imposed by ing six months.
the United States, any State, or any of the possessions of
Canadian Bank of Commerce, First
the United States, or by any local taxing authority, except
(a) estate or inheritance taxes, and (b) graduated addiNational Bank, Ladd & Tilton Bank,
tional income taxes, commonly known as surtaxes, and
Bank
of California, Natl. Assn,
excess profits'and war-profits taxes, now or hereafter imUnited
States National Bank, Hiberposed by the United States, upon the income or profits of j
nia Savings Bank. Northwestern Naindividuals, partnerships, associations, or corporations.
The interest on an amount of such bonds and certificates
tional Bank.

the principal of which does not exceed in the aggregate
$5,000, owned by any individual, partnership, association or corporation, shall be exempt from thetax^s provided for in subdivision (b) of this section.

Use of Coin-Counting Machines.
You are hereby informed that holders
Following is a circular letter issued on No(whether individuals, partnerships, associations or corporations) of Liberty bonds, vember 21 by the Federal Reserve Bank of
Treasury certificates of indebtedness, and war Philadelphia:

DECEMBER 1,1917.

FEDERAL KESEKVE BULLETIN".

To the hanking institution addressed:
For your information your attention is again
directed to a letter on the use of coin-counting
machines, issued by the Federal Keserve
Board some time ago, but which is especially
appropriate at this time, reading as follows:
"The use of gold coin in machines for counting money has proved that there is quite a
serious abrasion of the coin. This draws attention to the fact that in our country, as well
as in Europe, the use of gold coin as currency
in the hands of the people is disappearing.
The public does not want to carry gold coin,
and its use leads to rapid abrasion and consequent loss of value. In the United States it
may be truly said that as a practical matter
coined gold is only used as security behind
gold certificates, or for foreign exchange purposes, where nothing else can be used in adjusting international balances.
"The manufacturers of coin-counting machines will undoubtedly make a strenuous protest against the enforcement of any order forbidding or discouraging the use of their machines for counting gold coin, but when the
matter is explained to them they ought to see
the importance of protecting the country's
gold supply and discouraging the wasteful use
of gold for pay rolls, especially when it is remembered that the recipient of gold coin would
in most cases much prefer paper money. Of
course, it is unnecessary to say that coincounting machines are very valuable in counting silver money, and their use in this way is
in no way objected to, silver coinage being
accepted by tale and not by weight.
" I t is suggested that the banks of your district bo invited to point out to corporations or
firms of their district using these coin-counting
machines that they should forego the slight
advantage or greater convenience derived from
the use of gold in making up their pay rolls
in view of the loss such use causes to the country by the abrasion involved and by the keeping in circulation of gold, which, if held by the
Federal Reserve Banks, would add to" the
greater credit power of the country."
Exemption From Certain Taxes,
The Commissioner of Internal Revenue has
written the Federal Reserve Board that, in his
opinion, Federal Reserve Banks are not subject to the tax upon charges for telephone,

931

| telegraph, and express service when such
charges fall directly upon the Federal Reserve
Bank.
Protection of Bank Depositors.
The Secretary of the Treasury on November
16 issued a statement as follows:
"Among the many absurd and vicious
rumors which are being put into circulation
these days, probably through pro-German
influences, is one that the Government proposes
to confiscate the money on deposit in the banks.
The absurdity of the statement is obvious on
its face, but I have received letters from,
several parts of the country which indicate
that this rumor is being circulated for an evil
purpose. Of course, these minors are wholly
without foundation. In fact, the Government
has no power to confiscate the money of
depositors in banks."
•'•; Christmas Gifts.
' •
The following circular letter, issued by a large
national bank in New York on November 16 to
its customers, affords a statement of the policy
that is being pursued by many institutions-re1garding the use of gold as holiday gifts.
.'
To our customers and friends:
The use of gold coins W holiday presents*,
during the war period, is b.eing discouraged by
the Government—not for the purpose of abolishing a time-honored'"custom, but, to put .it
plainly, to conserve its supply of gold ana thus
kelp win the war. :
. '
That ti hearty and willing ' response from
everyone will be forthcoming goes without
saying.
'
It occurs to us that -excellent substitutes cai.
be found, through the use of Liberty bonds,
war-savings certificates, :and United State's
thrift cards. These should not only prove to
be acceptable presents, but their use would encourage the further development of thrift—to
the importance of which the people of this
country are slowly awakening. '' Easy _ to
come, easy to go/' as the sayingis, can be safely
applied to money presents. Why not introduce the investment feature into your Christmas gifts? You will serve three purposes:
The spirit of the holiday time will be gratis
fied.

932

FEDERAL RESERVE BULLETIN.

DBCBMBBR l, 1917.

The necessity for saving and for thrift will bo of the war, and of their determined support of
emphasized.
the Government in all measures required for
Your country will be backed in itsfightfor its vigorous prosecution.
right.
"In conformity with the original announceWe will gladly furnish full details regarding ment, I shall accept 50 per cent of the overLiberty bonds, war-saving certificates, or subscription, making the total issue of the
United States thrift cards, and are in position second Liberty Loan $3,808,766,150. Allotto supply them at face value. No charge for ments will be made as follows:
our services. Your cooperation in this will be
direct support to a noble cause.
Amount.
Subscriptions.

Success of the Second Liberty Loan.

Amount.

Up to and including $2,488,469,350
550,000.
Over £50,000 up to 359,865,900
and i n c l u d i n g
$100,000.
Over 8100,000 up to
242,220,800
and including
$200,000.
Over $200,000 up to
756,586,700
and including
51,000,000.
Over $1,000,000 up to
470,425,600
and i n c l u d i n g
$8,000,000.
Over $8,000,000 up to
249,963,950
and including
$30,000,000.
$50,000,000
50,000,000

Allotment.

100 t>er cent
90 per cent, but
not l e s s than
$50,000 bonds.
75 per cent, but
not less than
$90,000 bonds.
60 per cent, but
not less than
$150,000 bonds.
50 per cent, but
not lcs^ than
$600,000 bonds.
41.20 per cent, but
not less than
$4,000,000 bonds.
40.8152 per c e n t . .

$2,488,469,350
323,879,600

The Secretary of the Treasury, on Novem181,665,800
ber 8, issued the following statement:
455,690,300
"On October 1, 1917, in Treasury Department Circular No. 90, the following announce235,582,300
ment was made: 'The Secretary of tne Treasury
103,071,200
invites subscriptions, at par and accrued interest, from the people of the United States,
20,407,600
for $3,000,000,000 of United States of America
Total
3,808,766,150
Total
4,617,532,300
10-25 year 4 per cent convertible gold bonds,
of an issue authorized by aci^ of Congress
approved September 24, 1917; the right being
reserved to allot additional bonds up to one- The subscriptions by Federal Reserve districts are as follows:
half the amount of any oversubscription/
" I congratulate the American people upon
Total subOverthe phenomenal success of the second Liberty
Quota.
scriptions
subscripLoan. Thefinalreturns just received from the
received.
tion.
12 Federal reserve banks show that the total
subscriptions were $4,617,532,300—an overPer cent.
$300,000,000
$476,950,050
59
subscription of $1,617,532,300, or approxi- Boston
900,000,000
New York
1,550,453,450
72
250,000,000
380,350,250
Philadelphia..
52
mately 54 per cent of the amount offered. Cleveland
300,000,000
486,106,800
62
120,000,000
201,212,500
This is a more gratifying result even than was Richmond
63
80,000,000
90,695,750
Atlanta
13
the first Liberty Loan, when $2,000,000,000 Chicago
420,000,000
585,853,350
39
120,000,000
184,280,750
Louis
54
of bonds were offered and a subscription of St.
105,000,000
140,932,650
Minneapolis...
34
120,000,000
150,125,750
Kansas City...
25
more than $3,000,000,000 was received.
75,000,000
77,899,850
"These financial operations, greater in mag- Dallas
210,000,000
292,671,150
San Francisco.
nitude than ever attempted by any other Gov3,000,000,000
54
4,617,532,300
Total.
ernment in the world, were not too great for
the American people. They not only absorbed
readily the full amount of the first and second
" I t is to the credit of the country that every
Liberty Loans, but in each instance over- Federal Reserve district exceeded its quota of
subscribed the loan by more than 50 per cent. the $3,000,000,000 of bonds offered. The
" I t is an immensety gratifying fact that the American people may well felicitate themsecond Liberty Loan was subscribed for by selves upon this extraordinarily satisfactory
approximately 9,400,000 men and women of result.
the country. In this number, it is estimated
" I t may be asked why I do not accept the
that 9,306,000, or 99 per cent, subscribed in full amount of the subscription. The answer
amounts ranging from $50 to $50,000, the is simple: The Government must never alter
aggregate of such subscriptions being $2,488,- the basis upon which it offers an issue of bonds
469,350. The fact that such a vast number after subscriptions are closed. Having ansubscribed for bonds is significant of the wide- nounced that only one-half of the oversubspread interest of the people in the purposes scription would be accepted, the Government

DECEMBER 1.1917.

must, of course, faithfully observe that basis.
Whenever loans are offered to the public, the
banks and the public adjust themselves both
consciously and unconsciously to the basis of
the offering, and it would be extremely unwise
to alter that basis after the subscriptions have
been received.
"The success of the second Liberty Loan,
like that of the first, is a distinct triumph for
the people of the United States. It not only
demonstrates their ability, patriotism, and
resources, but augurs the certain success of
any future loans that may be offered by the
Government.
"This great loan would have been impossible
without the loyal support and cooperation of
the people of the country, but even that support could not have been secured except for the
indefatigable, unselfish, and earnest work of
hundreds of thousands of splendid men and
women throughout the United States who
threw themselves into the task without reservation. I wish to thank all these splendid
volunteers and patriots, and I particularly
wish to thank tne bankers of America, the
Liberty Loan organizations which were formed
in every State, city, town, and community in
the United States, the women of America who
made a distinctive fight for the Libert}" Loan
through their own organizations throughout
the country, the Boy Scouts and Girl Scouts,
the newspapers and periodicals which gave, as
in the first Liberty Loan, the most effective,
unselfish and generous support through their
columns and otherwise, the press associations,
the business houses, the various patriotic organizations, cooperative and fraternal societies
and other organizations throughout the length
and breadth of the land which so generously
and earnestly gave their services to the great
cause. Thanks are due also to those employers
who, in such large numbers, gave the fullest
opportunity to their employees to subscribe to
the loan upon terms commensurate with their
ability
to make the required payments.
i
' I should like to make special mention of the
soldiers and sailors of America who came forward with subscriptions amounting to more
per capita than those received from the civil
population. These gallent men are not only
giving their services and their lives to their
country, but are lending their money as well
to strengthen the Government in this great
war for America's rights and world democracy.
"I understand that an impression prevails in
some quarters that another offering of Government bonds will be made in the month of Jan-

933

FEDERAL BESERVE BULLETIN.

uary, 1918, I desire to correct this impression.
In view of the large over-subscription of the
second Liberty Loan, I am glad to be
able to
| state that this will not be necessary.'5
State Banks and Trust Companies Admitted.
The following list shows the State banks and
trust companies which have been admitted
to membership in the Federal Reserve system
during the month of November:
Capital.

Total

Surplus.

Brooklyn Trust Co., Brooklyn,
N. Y .
.;.... SI, 500,000 82,808,481
St. Clair County Ravings Bank,
Port Huron, Mich
Citizens Bank, Clinton, Wis
Minors Deposit Bank, Lykcns, Pa|
Citizens Commercial' Trust Co..
Buffalo, N. Y
'.
Citizens Trust A Sayings Bank,
Columbus, Ohio
,
Savari?iah I'iank & Trust Co.,
Savannah, Ga
Manufacturers Trvut Co.. Brooklyn, N. V
'.
I
The "Baltimore Trust: Co., Balti- I
more, M"d
i
Citizens Savings &• Trust Co.,
Cleveland, Oilio
Manhattan Co.. New York-. N. Y .
Fidelity Trust Co., New York,
N.Y'.
Peoples Trust Co., Brooklyn, N-.Y.i
W. R. Grace & Co/s Hank, Now i
York, N.Y
".
i
Paoii State Hank, Paoli, Ind
i
Farmers Banking Co., Prairie !
Dopot. Ohio
•
Wayne Co. <£- Home Savings BanVv
Detroi t. Mich
....'!;
Baltimore Commercial Bank.
Baltimore, Af d
Industrial Trust Co.. Providence. :
R.I
Firs? Trust <fe Savings Bank.
Chicago. HI
'.
.'.
United Stales Bank of Chicago, I
Chicago, III
i
Austin State Bank, Chicago, 111..
Union Trust Co. of New York,
New York, N. Y
United States Mortgage & Trust
Co., Now York, N. Y
Marion Central Bank, Marion, Ala
Columbia Trust Co., New York. !
N.Y
i
Hillsboro Bank & Savings Co.,
ITillsboro, Ohio
Scandinavian Trust Co., New
York, N. Y
The Citizens Commercial & Savings Bank, Flint, Mich
B. Dansard & Son's State Bank
Monroe, Mich
Lapeer Savings Bunk, Lapcer,
Mich
.'
Farmers State Bank, Spring Valley, Minn.
Ohio Banking & Trust Co., Massillon, Ohio
Kaspar State Bank, Chicago, 111...
Union Hank, Jackson, Mich
Central Dank & Trust Corporation,';
Atlanta, Ga
Germania Bank of the City of New !
York

100,000
50,000
50,000

50,000
10,000
110,000

1,250,000

700,000

150,000

630,000

570,000

1,000,000

300,000

1,000,000

2,000,000

$40,270,029
1,319,436
478,360
679,897
18,196,063
5,271,822
S, 415,862
15,031,812

15,990,745
4,000,000 | 74,532,631
4,500.000 i 82,094,144
i
1,000,000 j 1,000,000 13,965,140
1,000,000 I 1,000,000 29,443,301

i,000,000
2,050,000

500,000 i
25,000 |

500,000
750

6,675,523
194,868

6,000

339,528

30,000 i
3,000,000

3,000,000 ! oH, 68 [,743

500,000

100,000 I 2, 668,945

3,000,000

4,000,000 I 71,783,303

500,000

500,000 ! 84,207,394

200,000
500,000

30,000
100,000

869,220
2,668,743

3,000,000

4,500,000

87,0-13,831

2,000,000

4,000,000 93,377,698
497,661
100,000 '

50,000

5,000,000
50,000

124,186,774

5,000,000
!

1,000,000
150,000 :
100,000 :
50,000 :
25,000 ;

12,000 |
1.500,000 |
175,000 I
20,000
10,000

551,959
11,359,362
3,438,805
1,627,265
545,282
149,092

5,000
87.500
300,000
100,000

1,307,036
6,476,754
4,388,130

1,000,000:

300,000

9,620,109

400,000 ;

600,000

8,731,76(5

150,000 :
500,000 .
400,000 s

FEDERAL RESERVE BULLETIN.

934

DlCCKMBBR 1, 1917.

contain many liberal provisions pertaining to
membership of State banks and trust companies. Prior to the enactment of these
amendments, I felt a hesitancy in recommendPassaic Trust & Safe Deposit Co.,
§100,000 $7,130,181 j ing membership to our State institutions, but
$200,000
Passaic,N. J
Utica Trust & Deposit Co., Utica,
200,000 11,850,975 \ since the privilege of retaining full charter and
400,000
N.Y
Bridgeport Trust Co., Bridgeport,
7,866,545 j statutory rights has been extended, all objec300,000
500,000
Conn
Kent State Bank, Grand Rapids,
! tions have apparently been eliminated, and I
500,000
500,000
Mich
9,419,740 I am of the opinion that eligible banks will
The City Trust & Savings Bank,
j
150,000
200,000
Youngstown, Ohio
find membership exceedingly advantageous.
Citizens Trust Co. of Utica, Utica,
4,752,034 j
400,000
500,000
N.Y
As I view it, the matter is both a patriotic
The Grafton Banking & Trust Co.,
10,641,931 |
30,000
duty and an economic, expediency. Aside
100,000
Grafton. W. Va. — •.
Exchange Bank of Kentucky,
1,180,082 | from the great need at this time for an effi25,000
50,000
Mount Sterling, Ky
Enderlin State Bank, .Gnderiin,
434,572 j cient mobilization of the banking resources to
10,000
50,000
N. Dak
'
Worcester Bank & Trust Co.,
395,250 fortify our Nation in meeting extraordinary war
1,250,000
500,000
Worcester, Mass
conditions, in my opinion, membership is going
Citizens & Southern Bank, Savan24,123,110
1,000,000 1,000,000
nah, G a
to prove very helpful in solving future probLadd & Tiiton Bank, Portland,
18,537,851 lems and meeting contingencies that are sure
Ores
I 1,000,000 1,000,000
Philadelphia Trust Co., Philadel21,427,913 to arise during the readjustment period after
}• phia, Pa
I 1,000,000 4,000,000
The Union Trust Co. of Pitts- I
Just now our Nation and the Federal
26,160,684 the war.
34,500,000
1,500,000
burgh, Pa
Reserve
system
needs the support of the banks;
The Union & New Haven Trust
500,000 137,516,868 later the banks are going to need the support
650,000
Co., New Haven, Conn
Peoples Bank & Trust Co. of
4,574,303
80,000
100,000
Westfield, N. J
of the system, and now is the time to make the
Qneida County Trust Co., Utica,
2,005,718 alliance.
250,000
250,000
&#
Westminster Bank, Westminster.
2,428,746
President Wilson, as you know, recently
25,000
100,000
S.C
453,433
75,000
300,000
Noel State Bank. Chicago, 111
issued a call urging all eligible State banks to
2,581,716
Grand Rapids Savings Bank,
400,000
350,000
Grand Rapids, Mich
8,479,169 affiliate themselves with the Federal Reserve
The Brunswick Bank and Trust
system to the end that the financial position
100,000
72,000
! .Co., Brunswick, Ga
1,049,176
The Citizens Bank of Norfolk,
of the country might be thereby materially
600,000
500,000
Va., Norfolk, Va
5,896,002 strengthened.
The matter, therefore, is en47,210,000 87,301,731 1,190,986,947 titled to the careful and thoughtful consideraTotal.
tion of every banker in the State, and if your
One hundred and seventy-six State institu- bank is eligible, a personal interview with the
of the Portland branch would seem
tions are now members of the system, having officials
advisable, in order that the advantages of
a total capital of $179,865,700, total surplus membership and the policies of the bank may
of $248,384,196, and total resources of be fully explained.
This department is ready and willing at all
$4,275,468,908.
times to cooperate with you in every way
possible.
Yours, very truly,
Membership of State Institutions.
Capital.

Surplus.

Total
resources.

The following letter, addressed to the officers
and directors of State banks and trust companies in the State of Oregon, has been issued
by the banking department of that State under
date of November 10:
Since the establishment of the Portland
branch of the Federal Reserve Bank of San
Francisco, State bankers are showing considerable interest in the Federal Reserve system, and this office is receiving many letters,
asking for information and advice regarding
applications
for membership.
;
The amendments to the Federal Reserve
act, approved by the President June 21, 1917,

S. G. SARGENT,

Superintendent of Banks.
Organization of Branches.
The following is a draft of by-laws for use by
branches of Federal Reserve Banks which organize as offices of the parent Federal Reserve
Bank and not as branches assigned a distinct
capital and territory. It is expected that the
by-laws, as thus presented, will be adopted in
practically this form by all branches which are
organized on the new basis:

DECEMBER l, 1917.

FEDERAL RESERVE BULLETIN.

By-Laws of Branch Bank of Federal Reserve Bank of

935

SEC. 3.—The collection zone for
branch shall
be known as the
zone, and shall include the following cities:

Pending the promulgation by the Federal Reserve Board
of rules and regulations, under authority of section 3, governing the operations of branch banks, the following bylaws have been adopted by the Federal Reserve Bank of
- branch shall make a daily
SEC. 4. Reports.—The •
, with the approval of the Federal Reserve Board: report to the head office on forms to be prescribed,
showing—
ARTICLE I.
(a) Amounts received on deposit for credit with the
SECTION 1. Name and place of business.—This branch head office.
(b) Checks paid for the head office.
shall have its principal place of business in the city
(c) Discounts recommended.
of
, State of
, and shall be known as the
(d)
Items received for collection and forwarded, and for
branch of the Federal Reserve Bank of
.
SEC. 2. Functions.—Under the direction of the Federal which credit should be given by the head office at the
Reserve Bank, hereinafter referred to as the head office, expiration of the time allowed in collection schedule.
SEC. 5. Reserve account.—The balance appearing to the
its functions shall be:
credit
of a member bank on the books of the head office
(1) To receive from any member bank within the collection zone assigned to it under section 3, Article I, of shall constitute its reserve, but member banks depositing
these by-laws, and from the United States, for credit with with the branch may charge the Federal Reserve Bank
the head office, deposits of current funds in lawful money, with all items on day of deposit unless drawn against banks
national bank notes, Federal Reserve notes, or checks and for which allowance is provided in collection schedule,
drafts payable upon presentation, and for collection, ma- in which case such banks may take credit at the expiration
of such time allowance. Member banks may likewise
turing notes and bills.
take credit for the proceeds of discounts recommended by
(2) When tendered by such member banks within its
the local board on the date that the local board or its diszone as may elect to deal directly with the branch, to recount committee recommends the granting of such disceive applications for rediscount under authority of seccounts, provided, the notes, drafts, or bills of exchange
tion 13 of the Federal Reserve act, and to transmit such,
offered for rediscount, or the note of the applying bank seapplications to the head office with the recommendation
cured hy eligible collateral, have been actually received
of the local board or of the discount committee selected
by the branch. The head office reserves the right to return
by the local board.
through the branch any items which may be determined
(3) To pay checks drawn against the head office by
to be ineligible or which, for any reason the head office is
member banks within its collection zone out of funds
unwilling to accept, in which case items so returned will
deposited with the branch by the head office for that
be charged to the reserve account of the bank receiving
purpose.
credit therefor.
(4) To act as a clearing house for member banks within
ARTICLE II.
its zone and such nonmember banks as may qualify as
clearing members.
SECTION 1. Number and quorum.—The number of di(5) To provide for the custody of unissued Federal rectors shall be five, of whom the manager shall be one.
Reserve notes under appropriate safeguards and to deliver A majority of the directors shall constitute a quorum for
Federal Reserve notes when authorized to do so by the the transaction of business, but less than a majority may
head office to member banks within its collection zone.
adjourn from time to time until a quorum is in attendance.
(6) To receive from any member banks or Federal ReSEC. 2. Vacancies.—Vacancies in the membership of the
serve Banks for collection and remittance, or for collection board shall be filled and successors selected in the manner
and credit with the head office, or with any other Federal provided by law.
Reserve Banks through the head office, items drawn
SEC. 3. Meetings.—There shall be a regular meeting of
against any bank within its collection zone.
the board on the Tuesday next preceding the first Friday
(7) To receive from any nonmember bank or trust com- of each month at 10 o'clock a. m., or, if that day be a
pany within its collection zone solely for the purpose of holiday, on the first succeeding full business day. The
exchange or collection, deposits of current funds in lawful manager shall be empowered to call a special meeting at
money, national-bank notes, Federal Reserve notes, any time, or shall do so upon the request of the Federal
checks and drafts payable upon presentation, or maturing Reserve Bank of
or the written request of any two
notes and bills, provided, such nonmember bank or trust directors. Notice of said meeting, if sent by mail, shall
company maintains with the head office a balance sufficient be mailed at least one day prior to date of meeting, and if
to offset the items in transit held for its account by the given by telegraph or telephone at least two hoursJbefore
head office and its branches.
the time of meeting.

936

FEDERAL RESERVE BULLETIN.

DECEMBER 1,1917.

SEC. 4. Powers.— (a) The board of directors shall super- branch are not specifically prescribed by the by-laws or
vise the operation of the branch under direction and con- the board of directors of the branch or the Federal Reserve
trol of the Federal Reserve Bank of
, subject to such Bank of
, they shall be the duties prescribed by
regulations as the Federal Reserve Board may prescribe, and the instructions of the manager.
and shall exercise the functions prescribed in Article I,
SEC. 3. Acting manager.—In the absence or disability
section 2, of these by-laws.
of the manager, the Federal Reserve Bank of
SEC. 5. Directors when present at directors' meetings may appoint an acting manager, who shall exercise the
shall receive a compensation of
dollars per day for powers and discharge the duties of the manager; and for
each day the board is in session, and an allowance to cover such services he shall receive a compensation to be fixed
actual necessary expenses incident to attendance at regu- by the Federal Reserve Bank of
.
lar or special meetings of the board.
SEC. 4. Cashier.—The cashier shall have such joint
SEC. 6. The directors of the Federal Reserve Bank of custody of all moneys, investments, and collaterals as
shall fix the compensation of officers, clerks, and may be delegated to him by the manager, subject to such
employees of the branch, subject to the approval of the rules as the board may adopt as to their safety. He shall
Federal Reserve Board.
countersign all checks for the payment of money signed
SEC. 7. All expenditures of the branch shall be subject by the manager. He shall keep the minutes of the board
to the approval of the directors of the Federal Reserve meetings and of all committees of the board and perform
Bank of
•.
such other duties as may be assigned to him by the manager,
SEC, 8. Order of business.— The following shall be the subject to the approval of the board of directors.
order of business at each meeting of the board of directors
SEC. 5. Acting cashier.—In the absence or disability
of the branch:
of the cashier, the board of directors of the branch may
(1) Reading and disposition of minutes of the last regular appoint an acting cashier, who shall exercise the powers
meeting.
and perform the duties of the cashier and shall receive
(2) Report of the manager, including information con- a compensation to be fixed by the Federal Reserve Bank
cerning banking and business conditions in the branch of
.
territory, as well as detailed summary of all business transARTICLE IV.
acted since last regular meeting and statement of present
COUNSEL.
condition, the latter to include:
(a) Statements concerning clearing operations.
| SECTION 1. The general counsel of the Federal Reserve
(b) All official correspondence received from the Federal | Bank of
shall act as counsel for the branch, and
Reserve Bank of
.
| shall represent the branch in such matters as may be
(3) Reports of committees.
assigned to him and shall approve all legal documents;
(4) Unfinished business.
and said general counsel may appoint a local attorney as
(5) Approval of reports and recommendations to Federal associate counsel, with a retainer to be approved by the
Reserve Bank of
.
Federal Reserve Bank of
.
(6) New business.
ARTICLE V.

ARTICLE

III.

AUDITOR.

OFFICERS.

SEC 1. The officers, who shall be chosen by the board
of directors of the Federal Reserve Bank of
, shall
be a manager, who shall be one of the directors of the
branch, and a cashier. They shall hold office during the
pleasure of the directors of the Federal Reserve Bank of

SECTION 1. The auditor of the Federal Reserve Bank
shall act; as auditor of the branch.
ARTICLE

VI.

BUSINESS HOURS.

SECTION 1. The bank shall be open for business from
9 a. m. to 2:30 p. m., on each day except Saturdays and
SEC. 2. Manager.— The manager shall preside at all di- Sundays, or days or parts of days established as legal
rectors' meetings and shall have general charge of the holidays. On Saturdays the bank shall open at 9 a. m.
branch and shall be officially designated as u Manager, and close at 12 noon.
Branch." The manager shall, jointly with the cashier,
ARTICLE VII.
have charge of all moneys received or paid out on account
of the branch and shall sign all checks for the payment of
AMENDMENTS.
money as may be authorized by the Federal Reserve
Bank of
. He shall have custody of all moneys,
These by-laws may be amended at any regular directors'
investments, and collaterals held by the branch, subject meeting by a majority vote of the entire board of directo such rules as the board may adopt as to their safety. tors of the Federal Reserve Bank of
, subject tc
In all cases where duties of subordinate officers of the the approval of the Federal Reserve Board.

D2CEMBEK 1, 1917.

Credit Needs of Farmers.
The Bureau of Markets of the Department
of Agriculture has tabulated reports from
banks in several States upon the credit needs
of farmers which can be supplied from local
sources; and the department has furnished the
results to the Federal Keserve Board. They
are here republished. with the consent of the
Department of Agriculture, as follows:
The accompanying returns indicate that of
the total amount of capital which the farmer
needs to borrow to plant crops this fall and
next spring in the various States mentioned,
namely, Montana, Idaho, North Dakota, South
Dakota, Nebraska, Kansas, Oklahoma, and
Texas, the amount available locally is inadequate. The extent to which available local
capital is insufficient to meet the borrowing
needs of the farmers in these States, varies
somewhat between the States and within each
of the States. Especially in Montana and
North Dakota, and to a less extent in Texas,
Oklahoma, and Kansas, is the insufficiency of
local capital apparent, while in the States of
Idaho, South .Dakota, and Nebraska, there is
little need on the whole for drawing
on outside capital to meet the farmers5 borrowing
needs for crop purposes. In Montana, the
estimated percentage of credit needs of farmers, which can be supplied from local sources,
is 60.6 per cent for the fall crop 1917, and 57.6
per cent for the spring crop 1918. In North
Dakota the corresponding percentages are 74.3
per cent and 71.7 per cent, respectively. In
South Dakota and Nebraska, on the other
hand, the percentage of capital available locally to meet the borrowing needs of farmers
ranges above 90 per cent, the exact percentages
for South Dakota being 92.6 per cent for the
fall crop 1917, and 92.9 per cent for the spring
crop 1918, the corresponding percentages for
Nebraska being 90.6 per cent and 93 per cent
respectively.
The need for outside capital to meet the
borrowing needs of farmers is especially apparent in some of the districts within the
States. Thus, in Montana less than one-half
of the capital needed in the north central district is available from local sources, the percentage for the fall crop of 1917 being 44.1
per cent and for the spring crop 1918 being

26416—17

937

FEDERAL EESERVE BULLETIN.

47.2 per cent. Similarly, only a little more
than one-half of the necessary capital is available locally in the northwestern and west central districts in North Dakota, the percentage
for the fall crop 1917 in the northwestern district being 59.9 per cent and for the spring
crop 1918 being 53.2 per cent, while in the
west central district the percentages are 56
per cent and 44 per cent, respectively. Likewise, in the southwestern district of Kansas
the capital available locally is 60.7 per cent
for the fall crop 1917 and 45.2 per cent for the
spring crop 1918. In the northwestern district of Oklahoma the percentage of available
local capital for the fail crop 1917 is 49.2 per
cent and for the spring crop 1918, 64.5 per
cent. It will be noted that in such States as
Montana, North Dakota, South Dakota, Kansas, and Texas the districts showing the
greatest lack of available local capital for crop
purposes are located in areas having relatively
slight rainfall.
Estimated percentage, of credit needs of farmers which can be
supplied from local sources.
[Figures based on reports from banks.]
MONTANA.
Percentage
available
locally of the total
amount of money
which farmers need
to borrow—
Districts.
To plant
crops in
fall of 1917.

To plant
crops in
spring of
1918.

60.6

57.6

88.7
41.1
53.4
77.5
100.0
61.5
53.5
100.0
88.5
70.4

85.1
47.2
53.0
71.2
100.0
60.2
57.5
100.0
86.6
59.4

Idaho

89.8

89.7

Northwest
North central
West central
Central
Southwest
South central
Southeast

93.1
0
83.8
97.0
95.0
99.4
86.8

9(3.1
100.0
57.9
94.9
93.7
94.6
88.5

Montana
1. Northwest
2. North central
3. Northeast
4. West central
4a. West central
5. Central
6. East central
7. Southwest
8. South central
9. Southeast
IDAHO.

1.
2.
4.
5
7.
8.
9

988

FEDERAL RESERVE BULLETIN.

Estimated percentage of credit needs of farmers which can he
supplied from local sources—Continued.

Estimated percentage of credit needs of farmers which can be
supplied from local sources—Continued.
[Figures based on reports from banks.]

[Figures based on reports from banks.]
NORTH DAKOTA.

TEXAS.

Percentage
available
locally of the total
amount of money
which farmers need
to b o r r o w -

Percentage
available
locally of the total
amount of money
which farmers need
to borrow—

Districts.

Districts.
To plant
crops in
fall of 1917.

North Dakota
2. North central
4. West central
5. Central
6. East central
8. South central
9 Southeast. . . .

To plant
crops in
spring of
1918.

74.3

71.7

59.9
87.0
97.8
56.0
77.4
100.0
80.5
78.8
86.8

53.2
79.7
95.2
44.4
73.3
96.9
74.6
78.2
87.1

SOUTH DAKOTA.
South Dakota
1.
2.
3.
4.
5.
6.
7.
8.
9.

DECEMBER 1,1917.

,
,
,
,
,
,

Texas
1. Northwest
2. North central
3. Northeast
4. Westcentral
4a. West central . .
5. Central
6. East central
8. South central
9. Southeast

To plant
crops in
spring of
1918.

81.5

82.8

71.9
98.0
91.8
100.0
62.4
83.3
99.2
77.7
93.3

69.3
9S.0
94.2
100.0
58.1
79.7
93.9
62.8
96.9

SUMMARY FOR IMPORTANT STATES.
92.6 I

Northwest
North central
Northeast
West central
Central
East central
Southwest
South central
Southeast

To plant
crops in
fall of 1917.

68.6
95.6
94.9
87.4
99.8
96.9
100.0
75.8
100.0

92.9
71.7
94.7
98.8
88.8
95.5
96.3
100.0
75.4
99.0

Montana
Idaho
North Dakota..
South Dakota..
Nebraska
Kansas
Oklahoma
Texas

60.6
89.8
74.3
92.6
90.6
83.0
88.4
81.5

57.6
89.7
71.7
92.9
93.0
84.8
81.1
82.8

NEBRASKA.
Nebraska
1.
2.
3.
4.
5.
6.
7.
8.
9.

Northwest
North central
Northeast
West central
Central
East central
Southwest
South central
Southeast

90.6

93.0

100.0
96.7
93.8
67.3
97.0
99.4
95.8
96.9
98.3

100.0
97.0
95.9
86.3
95.8
99.7
95.0
99.5
97.4

KANSAS.
83.0

84.8

81.0
92.5
99.2
73.5
79.0
98.9
60.7
84.7
95.9

89.1
95.2
98.0
66.1
85.2
99.8
45.2
88.1
97.2

Oklahoma

88.4

81.1

Northwest
North central
Northeast
West central
Central
East central
Southwest
South central
Southeast

49.2
96.7
95.0
94.3
97.4
94.1
84.6
98.3
98.3

64.5
96.6
96.8
90.4
86.8
54.2
86.1
89.4
91.1

Kansas
1.
2.
3.
4.
5.
6.
7.
8.
9.

Northwest
North central
Northeast
West central
Central
East central .
Southwest
South central . .
Southeast
OKLAHOMA.

1.
2.
3.
4.
5.
6.
7.
8.
9.

Coupons from United States Bonds,
The Treasurer of the United States on
November 5 issued instructions for the handling
of coupons from United States bonds, as
follows:
Coupons from United States bonds are
actually payable only on presentation to the
Treasurer of the United States, to an Assistant
Treasurer of the United States, or to a Federal
Reserve Bank or branch thereof. When so
paid they should be canceled by punching a
hole one-fourth inch in diameter in the middle
of the coupon and near the top thereof through
the words "United States" or immediately
thereunder. The hole must not be punched
through the date or number on such coupon,
nor through the amount thereon. Coupons
should be arranged according to loan and
denomination, 100 of the same kind being put
under a strap. The remaining odds, arranged
by loan and denomination, should be strapped
in 100s, leaving only one package containing
less than 100. Each strap should bear a statement in brief of the contents.

DECEMBBB 1,1917.

FEDERAL BESEBVE BULLETIN.

939

The total amount of coupons paid on any accept as a criterion the reduced proportion of
particular day should be charged in the Treas- losses sustained by depositors of failed banks to
urer's account of that date and listed in the the total deposits of the national banks during
"abstract of payments" on the transcript of the past three years as compared with the prethe paying office as "United States coupons ceding 33 years.
paid $
__," giving symbol number 17199,
Records which have just been compiled show
and forwarding in support of the debit a charge that for the 33 years from 1881 to 1914 the
document on Form No. 6518 (if a Federal losses to depositors which arose from bank failReserve Bank), or No. 1748 (if a sub treasury)— ures averaged annually during that period
"Statement of coupons paid—U. S. bonds." twenty-eight one-thousandths of 1 per cent of
This charge document must accompany the the aggregate deposits of the national banks
transcript in which the entry is made.
during those years. During the fiscal years
Coupons should be packed securely, sealed ending June 30, 1915, 1916, and 1917, the perand forwarded, by registered mail, to the centage of losses of failed banks to total deTreasurer of the United States, Division of posits of all banks has averaged only about
Banks, Loans, and Postal Savings, Washing- three one-thousandths of 1 per cent, or less
ton, D. C. A statement of paid coupons (Form than one-eighth of what these losses averaged
5686), properly filled out, must be inclosed during the preceding 33 years.
with the coupons. The date of this form must
This great reduction in losses is largely the
correspond »to the date of the transcript of the result of the improved system of national-bank
Treasurer's account in which the coupons are examination, of the greater thoroughness exercharged and the total amount shown thereon cised in these examinations, and of the policy
must agree with the amount charged in said of requiring national banks to observe more
transcript.
rigidly the provisions of the law intended for
All postal savings loans of series 1 to 6, in- their protection and the protection of their
clusive, must be listed by series on Form 5686, depositors and shareholders.
while postal savings loans of the seventh and ! The figures show that if the Government or
subsequent series must be listed under the head an insurance company had been insuring deof "Consolidated series."
posits of all national banks from the year 1881
In order to facilitate the verification of ! to 1914, it would have been necessary to charge
coupons and the clearing of such items, it is the banks an annual premium, of 28 cents per
urged that each paying agency prepare cou- thousand, or $280 per million, of deposits to
pons with care and forward them promptly cover the actual losses, but during the past
to the Treasurer the same day they are paid. three years under improved methods of exNothing in these instructions is to be con- amination the losses from national-bank failstrued as prohibiting the holder of United ures have been so greatly reduced that the payStates coupons from cashing them at any bank ment of less than 3 J cents per thousand, or less
or trust company that is willing to accommo- than $35 per million, of deposits would have
date its patrons in this respect, or at a post been sufficient to insure the payment in full to
office authorized b}^ the Postmaster General to all depositors of all the national banks which
cash such coupons. Coupons so cashed, how- have failed during the past three fiscal years.
ever, must under no circumstances be canceled
These figures were developed as a result of a
except by the Treasurer of the United States, special investigation recently made by the
an Assistant Treasurer, or a Federal Reserve Comptroller of the Currency into the subject of
Bank to whom they have been delivered for national-bank failures in the United States for
actual payment. Coupons previously can- the past 36 years, or since July 1, 1881, which
celed will not be so paid.
has just been completed. The investigation
was iiot carried beyond 1881 because detailed
figures for those earlier years are not available.
Bank Failures.
The record shows that the total approximate,
loss
depositors for these 36 years on account
The Comptroller of the Currency on Novem- of allto national-bank
failures was $36,671,000,
ber 19 made the following statement:
or 18.87 per cent of the deposits of these failed
The national banks of the country are now banks. The average annual loss in the 36-year
eight times as safe as they were during the 33- period for the entire country was therefore
year period prior to June 30, 1914, provided we $1,018,638.

940

FEDERAL RESERVE BULLETIN.

DECEMBER 1,1917.

The largest loss to depositors reported for
The reserve and central reserve cities in which
banks failing in any one year was for the year the depositors of failed national banks have
ending June 30,1897, when the losses to deposi- already received or are expected to receive eventors aggregated $3,815,608, and represented tually in the aggregate at least 90 per cent of the
152 one-thousandths of 1 per cent of the aggre- deposits of the banks which have failed since
gate deposits of all national banks at that time. 1881 in these cities, are New York, Chicago, St.
The proportion of losses to the total deposits of Louis, Boston, Pittsburgh, Baltimore, San
all banks for that particular 3^ear was more than Antonio, Louisville, Minneapolis, Kansas City,
forty times as great as the average for the past Mo., and San Francisco.
three }^ears.
The depositors of the failed banks in the
In 1897 the total deposits of all national central reserve cities which failed in this
banks amounted to $2,515,000,000 and the period received an average of 98.14 per cent;
losses to depositors from failed banks amounted, in the reserve cities they received or are exas above stated, to $3,815,608. For the past pected to receive an average of 82.65 per cent,
year, deposits amounted to $12,769,000,000, or j while the depositors in the country banks
over five times what they were in 1897, and yet ' received or are expected to receive an average
the total losses to depositors of banks which of 75.62 per cent.
failed in the year amounted to only about
The aggregate capital of all banks which
$369,000, or less than one-tenth of what the failed from 1881 to 1917 was $77,533,000, and
depositors' losses amounted to for banks failing the aggregate of their deposits at the time of
in 1897.
suspension was $194,361,000. The approxiOf the 500 national banks which failed be- mate average payment on deposits was 81.13
tween 1881 and July, 1917, 36 were restored to per cent, while the average percentage of losses
solvency. . Of the number that failed 11 were of depositors to total deposits of all national
located in the central reserve cities, of which .1 banks each year for the period was 23 onewas restored to solvency; 63 were located in thousandths of 1 per cent.
the reserve cities, of which 6 were restored, and
426 were country banks, of which 29 were
reopened. From 1881 to July, 1917, there
Commercial Failures Reported.
were 6 national bank failures in New York
The
highly
favorable features which have
City, 4 in Chicago, and 1 in St. Louis. The
faifed banks in New York City returned to characterized the insolvency record throughout
depositors 94.26 per cent of their deposits. this year continue in evidence, and commercial
The St. Louis bank paid 96.60 per cent, and failures in the United States during three weeks
the Chicago banks paid an average of 100 per
of November, as reported to E. G. Dun & Co.,
cent, with 1.38 per cent of interest added.
number
only 737, against 847 in the same period
Among the 54 reserve cities there are 24
cities in which there have been no national last year. In October—the latest month for
bank failures since 1881. The reserve cities in which complete returns are available—there
which there were no bank failures for the period were fewer defaults than for any October in
named are Albany, Washington, Richmond, over a decade, with the smallest liabilities, exCharleston, Atlanta, Savannah, Birmingham,
Galveston, Houston, Waco, Chattanooga, Clove- cepting those of 1916, since 1909. The expanland, Milwaukee, St. Paul, Cedar Rapids, Des sion in the indebtedness in comparison with
Moines, St. Joseph, Omaha, Muskogee, Okla- last year was about 82,000,000, or from
homa City, Tulsa, Los Angeles, Salt Lake City, $10,775,654 to $12,812,012, but there was a
and Ogden.
There were 15 reserve cities reporting only numerical reduction of 158, or from 1,240 to
1 national bank failure in this period. These 1,082. Aside from the first, second, and third
were Brooklyn, Baltimore, Fort Worth, Louis- districts, where there were, respectively, inville, Nashville, Indianapolis, Detroit, Dubuque, creases of 23, 44, and 29 defaults, and in the
Kansas City, Ivans., Topeka, Pueblo, Seattle, ninth district, where there was no change, the
Spokane, Portland, and San Francisco.
The only cities in which losses sustained by number was smaller than in October, 1916, in
depositors of failed banks aggregated in these all of the 12 Federal Reserve districts, the de36 years as much as $1,000,000 were Boston, creases ranging from 7 in the fourth district to
Philadelphia, and Cincinnati.
75 in the twelfth district. As to the amount

DECEMBER 1,

941

FEDERAL BESEHVE BULLETIN.

1917.

involved, there was more or less expansion in bank notes and Federal Reserve notes sepaevery instance, except the fourth, tenth, elev- rately for the year ending October 31, 1917,
enth, and twelfth districts.
are as follows:
Failures during October.
Number.

National-bank
notes.
Liabj

Districts.
1917

First
Second
Third.
Fourth
"Fifth .
Sixth
Seventh.
Eighth
Ninth.
Tenth..
Eleventh ..
Twelfth
Total

; 1916

133
219
69 .
70 i
69
64
152
f>5
4 5 '•

35 !
52 i
109 !
1 082

Federal Reserve notes.

1917

1916

110
175
40
77
100
119
169
71
45
fii
89
184

$1,260,557
3,087,784
942.480
903,909
1 698 482
699,113
2,246,269
453,481
274,920
181,995
392,822
690,200

$825,361
2,358,642
410,820
1,030,850
1,568,475
530,163
1,438,967
332,163
273,594
203,12G
599,966
1,143,527

1 210

12,812,012

10,775,654

New notes printed and delivered by
the Bureau of Engraving and Printing from Oct. 31,1916, to Out. 31,1917. §261,705,870.00 §1,291,280,000
Notes issued by Comptroller's Office
Oct. 31, 1916, to Oct. 31, 1917
976,400,000
325,570,430.00
Notes redeemed and d e s t r o y e d
through Comptroller's Office from
Oct. 31, 1916, to Oct. 31, 1917
128,730,806
Excess of national-bank notes re- 335,679,477.50
deemed and destroyed Oct. 31,1916,
to Oct. 31,1917, over amount issued
during same period
10,109,047.30
Excess of Federal Reserve notes issued
Oct. 31, 1916, to Oct. 31, 1917, over
amount redeemed and destroyed,
same period
847,660,395
Total amount of new notes in vault
Oct. 31, 1917
341,088,330.00
654,940,000
Reduction during the year in nationalbank notes in vault of
72,889,530.00
Increase during the same period in Federal Reserve notes in vault of.
177,120,000
Total amount of notes outstanding
Oct. 31, 1917
716,276,375.00
928,213,720
Reduction during the year in nationalbank notes outstanding of
9,792,915.00
Increase during the same period in
Federal Reserve notes outstanding of.
689,746,800

Notes Issued and Redeemed.
The Comptroller of the Currency issued on
November 20, the following statement relating
to the national-bank notes and Federal Reserve
notes issued and redeemed through his office
Acceptances to 100 Per Cent.
during the year ending October 31, 1917, toSince the Issue of the November BULLETIN
gether with the amount of notes of each class
the
following banks have been authorized to
in the Treasury vaults on October 31, 1917, and
accept
drafts arid bills of exchange up to 100
the amount of notes outstanding in the hands
per
cent
of their capital and surplus: Massaof the public on the same date:
soit-Pocasset
National Bank, Fall River, Mass.;
Total amount of national-bank notes
Mechanics
National
Bank, New Bedford, Mass.;
and Federal Ileserve notes issued
Importers
&
Traders
National Bank, New
through the office of the Comptroller of the Currency during the
York City; W. R. Grace & Co.'s Bank, New
year ending October 81, 1917
$.1, 301, 970; 430. 00 York City; First National Bank, Cleveland,
Amount redeemed and destroyed
Ohio: Savannah Bank & Trust Co., Savannah,
through office of Comptroller of the
Currency, during some period
464, 410, 082. 50 Ga.; Seaboard National Bank, New York
City; Franklin Trust Co., New York City; SeaTotal amount of notes outstanding
October 31. 1917
1, 644, 520, 095. 00 board National Bank, Norfolk, Va.; Market
Total amount new notes in vaults
Street National Bank, Philadelphia, Pa.
October 31. 1917

996, 028, 330. 00

The large increase during the year ($689,~
746,800) in the amount of Federal Reserve
notes outstanding is due mainly to the issuance
of Federal Ileserve notes against the deposit of
gold or gold certificates with the Federal Reserve Agents, amount of gold and gold certificates so held October 31, 1917, being approximately $600,000,000.
The figures as to the printing, issue, and redemption and amount outstanding of national-

Fiduciary Powers.
The applications of the following banks for
permission to act under section I l k of the
Federal Ileserve Act have been approved since
the issue of the November BULLETIN.
DISTRICT NO. 1.

Trustee, executor, administrator, and registrar of stock
and bonds:
Plymouth National Bank, Plymouth, Mass.

942

FEDERAL RESERVE BULLETIN".

Trustee, executor, and administrator:
Vermont National Bank, Brattloboro, Vt.
DISTRICT NO. 2.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Phillipsburg National Bank, Phillipsburg, N. J.
DISTRICT NO. 7.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Manchester, Mass.

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
27, 1917, to November 30, 1917, inclusive:
Banks.

New charters issued to
With capital of
Increase of capital approved for
With new capital of

12
$415,000
,.

13
2,070,000

Aggregate number of new charters and
banks increasing capital
25
With aggregate of new capital authorized
2, 485,000
Number of banks liquidating (other than
those consolidating with other national
banks)
Capital of same banks
Number of banks reducing capital
Reduction of capital
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks).
Aggregate capital reduction

8
335,000
2
52, 800
8
387, 800

The foregoing statement shows the aggregate of
increased capital for the period of the banks
embraced in statement was
2,485,000
Against this there was a reduction of capital
owing to liquidations (other than for consolidation with other national banks) and
reductions of capital of
387, 800
Net increase

2, 097, 200

Principal Changes in the Condition of European
Banks Since the Outbreak of the War,
Some idea of the effect of war financing on
the status of the principal European banks of
issue may be had from the following tables and

DECEMBER 1, 1917.

accompanying diagrams, indicating the
changes, month by month, in the amounts of
gold in vault, notes in circulation, and, in
the case of the French and Russian Central
banks, also amounts of advances to the Government carried on the books of the banks.
These figures are not specified in the reports
of the Bank of England or of the German
Reichsbank, and for this reason more general
figures showing the total loans and discounts
held by the two banks were chosen. Figures
of gold reserve include amounts of gold in vault
only, i. e., are exclusive of gold, reported as
held abroad by both the French and Russian
banks.
Notes in circulation shown by the latter two
banks represent practically the entire paper
currency of the countries in question. In
Great Britain the circulation is made up at
present largely of currency notes issued by the
treasury secured to a large extent by Government securities and to a much smaller extent
by a deposit of coin and bullion with the exchequer. On October 31, 1917, the amount
of currency notes outstanding was $911,057,000,
secured by $783,950,000 of Government securities, of $138,695,000 of coin and bullion, and of
$25,737,000, on deposit at the Bank of England.
In Germany the circulation of the country includes besides the Reichsbank notes also notes
of the other four banks of issue, which, however,
have but local currency and are relatively
unimportant, about 82.8 millions of Imperial
treasury notes, and over $1,300,000,000 of
notes of the so-called war loan banks.
Figures of "advances to the Government"
and "short-term bonds" shown by the French
and Russian banks measure to some extent
the degree of direct assistance rendered to the
Government through the issuance of bank
notes. Advances of the Russian bank as
shown under the caption " Short-term treasury bonds" indicate a practically continuous
growth since the outbreak of the war. Direct
advances to the Government are also specified
among the assets of the Bank of France, the
totals showing two considerable temporary
curtailments about the end of 1915 and 1916,

Bank of England—Continued.

following the consummation of the two funded
"rente" loans. For the Bank of England and
the Reichsbank figures indicating the total
loans and discounts outstanding were used,
viz, total "securities," held by the banking
Date.
department of the former, and total bills,
including treasury bills, held by the latter. As a
matter of fact the aid given to the Government
by these two institutions was primarily through
1917.
assistance to the private banks rather than by Jan. 31
Feb. 28
direct financing of the treasury. Both these Mar. 28
Apr. 25
banks of course have been discounting short- May 30
June 27
term treasury bills, but these bills are re- July 25
29
deemed by the Government from the pro- Aug.
Sept. 26
Oct. 31
ceeds of the long-term funded loans. This
procedure is most clearly indicated by the
course of curve 3 in the diagram, for the
German bank, which shows sharp declines
between March and April, also between September and October after the consummation
Date.
of each of the six large loans prior to October
of the present year.

Total gold and Bank of Engsilver in island notes in
sue and bankactual circuing departlation.
ments.
Millions Millions
of
!•
of £ . dollars. |

Jan. 27
Feb. 24
Mar. 31
Apr. 29
May 26
June 30
July 28
Aug. 25
Sept. 29
Oct. 27
Nov. 24
Dec. 29

1916.

Jan. 20
Feb. 23
Mar. 29
Apr. 2(5
May 31
Juno 28
July 28
Aug. 30
Sept. 27
Oct. 25
Nov. 29
Dee. 27

|[dollars.

Total securities
in banking
department.

of £ .

dollars.

58.3
139.7
141.6
124.3
137.6
121.0

283.7
679.9
089.1
604.9
669.8
588.8

1
1914.
July 29
Aug. 26
Sopt.30
Oct. 28..
Nov. 25
Doc. 30
1915.

f£.

:
!
i
i
i
1
.-...!
!

38.0
43.5
52.9
61.9
72.2
69.5

257.4
301.2
351.4
338.2

29.7
35.6
35.0
35.1
35.3
36.1

o9.2
63.9
53.9
55.2
61.7
52.2
60.9
07.3
61.5
56.2
52.5
51.5

336.8
311.0
262.3
268.6
300.3
254.0
296.4
327.5
299.3
273.5
255.5
250.6

168.9
34.7
166.4
34.2
171.3
35.2
168.9
34.7
160.1
32.9
168.4
34.6
163.0
33.5
3.1.8 i 154.8
159.6
32.8
159.6
32.8
162.1
33.3
171.8
35.3

184.9

52.2
254. 0
55.0 I 267.7
56.7 i
58.9 '
60.2
61.4
56.4
56.2
53.6
56.1
">6.0
54.3

275.9
286.6
293.0
298.8
274.5
273.5
260.8
273.0
272.5
204.3

33.8
32.5
33.6
34.1
35.4
35.9
36.0
36.2
36.5
36.7
37.7
39.7

144.5
173.2
170.3
170.8
171.8
175.7

[In millions of £ sterling and dollars.]
T

silvef W
bUVCr

130.2
633.6
129.9
632.2
898.4
184.6
962.6
197.8
926.1
190.3
992.8
204.0
245.4 I 1194.2
;
913.9
187.8
796.2
163.6
562.1
115.5
569.4
117.0
705.2
144.9

145.0
164.5
126.2
158.2
121.2 i
163.5
121.6 I
165.9
110.8
172.3
129.5
174.7
.117.4
175.2
134.1
176.2
137.6
177.6
144.6 I
178.6
183.5 j 146.5 |
193.2 I 163.6 1

Bank of
l

t
c Icircu

fa £

Total securities
in banking
department.

Millions Millions
Millions Millions
Millions Millions!
of
of
of
of£. dollars.
of £. dollars.
of £ . dollars.
56.7
54.3
54.0
55.2
55.1
57.5
53.1
54.3
55.1
58.0

275.9
264.3
262.8
268.6
268.1
279.8
258.4
264.3
268.1
272.5

39.6
38.6
38.3
38.2
39.0
39.4
39.7
40.4
41.2
42.4

192.7
187.8
186.4
185.9
189.8
191.7
193.2
196.6
200.5
206.3

196.1
199.8
183.6
151.9
160.1
145.5
159.5
163.4
151.8
151.9

954.3
972.3
798.2
739.2
779.1
708.1
776.2
795.2
738.7
739.2

Bank of France.
[In millions of francs and dollars.]
Gold in vaults.

Notes in circulation.

War advances to
Government.

Millions Millions Millions Millions Millions Millions
of
of
of
of
of
Of
francs. dollars francs. dollars. francs. dollars.
799.3

6,683.2

1,289.9

Decemberl
1915.
Jan. 28
Feb.28
Mar. 25
Apr. 29
May 27
June 24
July 29
Aug. 26
Sept. 30
Oct. 28
Nov. 25
Dec. 30

4,233.8
4,238.9
4,248.7
4,169.0
3,913.4
3,927.2
4,129.3
4,266.3
4,550.1
4,730.0
4,835.2
5,015.3

817.1
818.1
820.0
804.6
755.3
757.9
797.0
823.4
878.2
912.9
933.2
968.0

10,473.5
10,962.0
11,176.5
11,584.4
11,827.9
12.104.7
12)592.5
12,950.3
13,458.3
13,867.6
14,278.4
13,309.9

2,021.4
2,115.7
2,157.1
2,235.8
2,282.8
2,336.2
2,430.4
2,499.4
2,597.5
2,676.4
2,755.7
2,568.8

3,900.0
4,400.0
4,700.0
5,200.0
5,500.0
6,000.0
6,300.0
6,300.0
8,700.0
6,900.0
7,400.0
5,000.0

752.7
849.2
907." 1
1,003.6
1,061.5
1,158.0
1,215.9
1,215.9
1,293.1
1,331.7
1,428.2
965.0

1918.
Jan.27
Feb. 24
Mar. 30
Apr.27
May 25
June 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov. 30
Dec. 28

5,011.6
5,035.9
5,006.3
4,803.6
4,731.5
4,492.2
4,515.5
4,239.0
4,158.2
4,247.4
3,764.6
3,382.8

967.2 13,858.0
971.9 14,295.3
966.2 14,952.1
927.1 15,278.0
913.2 15,435.0
867.0 15,805.7
871.5 16,090.9
818.1 16,424.6
802.5 16,714.1
819. 7 16,589.2
726.6 16)119.5
652.9 16,678.8

2,674.6
2,759.0
2,885.8
2,948.7
2,979.0
3,050.5
3,105.5
3,169.9
3 225.8
3,201.7
3,111.1
3,219.0

5,400.0
5,700.0
6,700.0
7,200.0
7,500.0
7,900.0
8,300.0
8,400.0
8,500.0
8,600.0
6,500.0
7,400.0

1,042.2
1,100.1
1,293.1
1,389.6
1,447.5
1,524.7
1,601.9
1,621.2
1,640.5
1,659:8
1,254.5
1,428.2

3,326.9
3,198.9
3,252.4
3,294.5
3,239.9
3,253.2
3,263.6
3,274.7
3,282.3
3,289.0

642.1 17,328.2
617.0 17,888.5
627.7 18,459.8
635.8 19,009.9
625.3 19,479.4
627.9 19,823.1
629.9 20,201.7
632.0 20,568.9
633.5 20,994.8
634.8 21,705.3

3,344.3 8,100.0
3,452.5 8,800.0
3,562.7 9,500.0
3,668.9 9,900.0
3,759.5 10,500.0
3,825.9 10,600.0
3,898.9 10,700.0
3,969.8 11,200.0
4,052.0 11,650.0
4,189.1 12,150.0

1,563.3
1,898.4
1,833.5
1,910.7
2,026.5
2,045.8
2,065.1
2,161.6
2,248.5
2,345.0

1917.
Jan. 25
Feb.
22
705.6
Mar. 29
614.2
Apr.
26
589.8
591.8 j May 31
June
28
539.2
630.2 July 26
Aug. 30
571.3
652.6 Sept. 27
669.6
Oct. 25
703.7
712.9
796.2

111 15s- ;

merits.

1911.
4,141.3
July 30 x
August
l
September
...
1
October

Bank of England.
[In millions of £ sterling and dollars.]

Date.

948

FEDERAL BESEBVE BULLETIN.

DECEMBER 1,1917.

!
|
!
|

No bank statements issued.

944

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1917.

60LD IN VAULT, BANK NOTES IN CIRCULATION:ETC,
OFW£L£APIN6 EUROPEAN BHiifCS OF..fSSUE;SfNCE THE* OUTBREAKOF_TM£\IVAR.
1

• f

Isr ^

y! T.

kf s i M

\ ms
•

•
/

7000

eooo

7000

6000

fJ
5000

SOOO

4CW
J

j
i

2OO0
pa

4000

fQQQ
i

am.
1000

**^

Cizrref.- Gold, ut Phu&. CurveZsJwtes zn> &rv$tfa£wn,.
!

.}
bar

3500

^5 /|^>
rt

l i If

!
!

—

3CW

. If,

!•

\j
!

i
'•

\L \

•

/i\
•

2033
—1

•

\LJw—<
V
\ )—4

V-

/
-A

/' M

1600

300

/h
/!\

/OX)

//1
/
/\/

'"1 '
—\—

13
1

Z500

I.
!

aooo >

-- -

150Q

GOG

I
***
I

600-

?=* F—'

13]<4>

3500

J
1

J&fJ?

I&!f5

13 IP

Gzrv&l:&Gl& in, YajuZt. Qxrvc 2: J/bdes ui CirculaCww.
Cvurve3.° .3$ilZ$ Gtisc0vm£e&, iitcl, Jreasury jBills and, Jfdpojzces.

FEDERAL RESERVE BULLETIN

,1917.

GOLD IN VAULT.BANK NOTES IN CIRCULATION, ETC,
OF THE LEAPiNO EUROPEAN BANKS OFISSUE, SWCE THE OUTBREAK OF THE WAR.

I3I4-

IBIS
Cwrvel: &od
Carre2.- Jfotes in Actual Cv

'SIS

18 IF
Carve 3; Sect&rtuss in, Jd

!3Ip

:—:

Curve!.- Gold tit Vcuzfc. Gwve2.Jw£es in (Xra&lation,,
G&ri>e3.J?d,V(znjces &otine.Oav&nwneht since £h&7t&r*
26416—17

946

FEDERAL RESERVE BULLETIN.

Russian State Bank.

German Ueichsbank.

[In millions of rubles and dollars.]

[In millions of marks and dollars.]

Gold in vault.
Date.

1914.
July 2 1 . . . .
Aug. 2 9 . . .
Sept. 2 9 . . .
Oct. 2 9 . . . .
Nov. 2 9 . . .
Dec. 29....

DECEMBER 1,1917.

Notes in circulation.

Treasury shortterm bonds.
Date.

Millions Millions Millions Millions Millions
of
of
of
of
of
Rubles. Dollars. Rubles. Dollars. Rubles.

1,601.1
1,607.5
!1 1,613.5
1,622.5
1,554.2
1,553.6

824.6
827.9
831.0
835.8
800.4
800.1

1,634.1
841.6
2,431.4 1,252.2
2,613.3 1,345.8
2,706.3 1,393.7
2,814.7 1,449.6
2,863.9 1,^74.9

423.1
496.5

Gold in vault.

217.9
255.7

1914.
July 31
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 31

Discounts and
advances.

! Millions Millions Millions Millions Millions Millions
of
i of
of
of
of
of
Marks, i Dollars. Marks. Dollars. Marks. Dollars.

1,253.2
1,556.5
1,716.1
1 1,858.3
1 1,991.3
; 2,077.2

298.3
370.4
408.4
442.3
473.9
498.1

2,909.4
4,234.9
4,490.9
4,170.8
4,205.4
5,045.9

692.4
1,007.9
1,068.8
992.7
1,000.9
1,200.9

2,283.3
4,855.0
4,786.4
2,809.1
2,968.2
3,959.4

515.0
540.4
556.3
539.9
566.3
568.2
571.4
573.6
575.8
578.1
579.6
582.0

4,658.6
4,862.7
5,624.0
5,310.3
5,317.9
5,840.3
5,538.2
5,564.3
6,157.6
5,946.4
5,999.4
6,917.9

1,108.7
1,157.3
1,338.5
1,263.9
1,265.7
1,390.0
1,318.1
1,324.3
1,465.5
1,415.2
1,427.9
1,646.5

910.7
3,826.3
984.8
4,138.2
6,876.6 1,636.6
906.1
3,807.2
991.1
4,164.4
4,933.4 1,174.1
4,801.6 1,142.8
4,957.0 1,179.8
7,483.7 1,781.1
4,225.4 1,005.6
4,687.5 1,115.6
5,816.2 1,384.3

1,547.6 5,294.8 1,260.2
1,560.0 5,797.2 1,379.7
1,663.2 8,124.4 1,933.6
5,138.1 1,222.9
u, u»u. a 1,593.9
1,603.5
5,507.9 1,310.9
6,737.6
1,575.9
7,240.5 1,723.2 6,621.5 1,560.0
7,024.4 1,671.8 6,554.7 1,687.5
7,117.9 1,694.1 7,090.2 2,563.1
7,370.0 1,754.1 10,769.3 1,878.2
7,260.0 1,727.9 7,891.4 1,925.0
7,333.7 1,745.4 8,088.1 2,289.4
8,054.7 1,917.0 9,619.5

1915.
Jan. 29....
Feb. 21...
Mar. 29...
Apr. 29...
May 29...
June 29...
July 29...
Aug. 29...
Sept. 29..
Oct. 29...
Nov. 29..
Dec. 29...

1,557.3
1,569.0
1,571.3
1,573.2
1,574.2
1,577.2
1,578.6
1,585.5
1,590.8
1,598.3
1,608.3
1,611.7

802.0
808.0
809.2
810.2
810.7
812.3
813.0
816.5
819.3
823.1
828.3
830.0

2,997.9
3,076.8
3,198.3
3,277.3
3,416.3
3,582.6
3,831.8
4,092.3
4,621.8
5,018.0
5,164.6
5,304.6

1,543.9
1,584.6
1,647.1
1,687.8
1,759.4
1,845.0
1,973.4
2,107.5
2,380.2
2,584.3
2,659.8
2,731.9

859.6
1,001.0
1,131.5
1,453.3
1,592.0
1,549.1
1,847.2
2,368.7
2,395.5
3,140.0
3,326.9
3,244.6

442.7
515.5
582.7
748.4
819.9
797.8
951.3
1,219.9
1,233.7
1,617.1
1,713.4
1,671.0

1915.
Jan. 30
Feb. 27.
Mar. 31.
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept.30
Oct. 30
Nov. 30
Dec. 31

1916.
Jan. 2 9 . . . .
Feb. 29....
Mar. 29....
Apr. 29....
May 29....
June 29....
July 29....
Aug. 29....
Sept. 29...
Oct. 2 9 . . . .
Nov. 2 9 . . .
Dec. 29....

1,616.4
1,620.9
1,625. 7
1,628.8
| 1,541.5
i 1,540.3
i 1,547.4
| 1,551.0
:
1,553.3
1,558.8
1,466.8
1,472.6

832.4
834.8
837.2
838.8
793.9
793.3
796.9
798.8
799.9
802.8
755.4
758.4

5,604.5
5,806.5
5,935.9
6,254.1
6,286.2
6,443.1
6,753.1
6,960.9
7,304.1
7,844.9
8,235.2
8,591.3

2,886.3
2,990.3
3,057.0
3,220.9
3,237.4
3,318.2
3,477.8
3,584.9
3,761.6
4,040.1
4,241.1
4,424.5

3,375.9 1,738.6
3,781.4 1,947.4
3,849.4 1,982.4
3,762.4 1,937.6
3,520.0 1,812.8
3,795.2 1,954.5
3,762.2 1,937.5
3,894.6 2,005.7
4,818.5 2,481.5
5,367.8 2,764.4
6,073.4 3,127.8
6,534.1 3,365.1

1916.
Jan. 31
Feb. 29
Mar. 31
Apr. 29
May 31
June 30
July 29
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 30

2,453.5
2,457.1
2,460.1
2,461.8
2,464.4
2.465.7 !
2.467.8 !
2,469.0 i:
2,484.8
2,506.1
2,518.5
2,520.5

583.9
584.8
585.5
585.9
586.5
586.8
587.3
587.6
591.4
596.4
599.4

1917.
Jan. 2 9 . . . .
Feb. 2 1 . . . .
Mar. 29....
Apr. 29....
May 2 9 . . . .
June 29
July 2 9 . . . .
Aug. 29....
Sept. 2 9 . . .
Oct. 2 9 . . . .

1,475.4
1,474.9
1,479.5
1 479.8
1,479.5
1,480.9
1,291.6
1,297.9
1 295.2
1,295.2

759.8
759.6
761.9
762.1
761.9
762.7
665.2
668.4
667.0
667.0

9,204.6
9,557.2
10,277.8
11,186.6
11,765.3
12,592.0
13,646.1
14,676.2
15,887.0
18,362.1

4,740.4
7,126.5 3,670.1
4,922.0 7,640.4 3,934.8
5,293.1 8,339.4 4,294.8
5,761.1 9,372.9 4,827.0
6,059.1 9,053.8 4,662.7
6,484.9 10,193.3 5,249.5
7,027.7 11,162.6 5,748.7
7,558.2 12,037.4 6,199.3
8,181.8
9,456.5

1917.
Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept. 29
Oct. 23

2,524.4
2,527.3
2,530.6
2,532.6
2,567.1
2,457.3
2,402.2
2,403.0
2,404.0
2,404.5

600.8
601.5

Notes in circulation.

I
! 2,163.8
2,270.6
2,337.5
2,268.5
2,379.5
2,387.6
2,400.7
• 2)410.2
j
2,419.4
2,428.8
2,435.3
2,445.2

611.0
584.8
571.7
571.9
572.2
572.3

543.4
1,155.5
1,139.2
668.6
706.4
942.3

6,502.4
6,554.3
6,988.1

7,858.5
8,107.2
8,616.0
8,315.4
8,285.2
8,698.7
8,852.7
9,337.1
10,204.9
10,138.7

1,870.3 8,190.0
1,929.5 8,997.9
2,050.6 13,606.0
1,979.1 8,714.8
1,971.9 9,364.5
2,070.3 10,962.5
2,106.9 11,127.8
2,222.2 11,364.6
2,428.8 15,632.5
2,413.0 11.553.1

1,949.2
2,141.5
3,238.2
2,074.1
2,228.8
2,609.1
2,648.4
2,704.8
3,720.5
2,749.6

DECEMBER 1,1917.

947

FEDERAL KESERVE BULLETIN.

GOLD SETTLEMENT FUND.

including amounts standing to the credit of
Federal Reserve Agents, show a further increase
and now aggregate $737,612,110, as compared
with $679,184,260 on October 18 and $272,320,000 at the beginning of the present calendar
year.
Below are given figures showing changes in
the fund between October 18 and November 22,
inclusive:

Government financing, mainly payments on
account of subscriptions to the second Liberty
Loan and for the most recent issue of United
States certificates of indebtedness, apparently
account for the largely increased volume of
clearings through the gold settlement fund during the five weeks ending November 22, 1917.
Combined clearings and transfers for the week
ending November 22 show the record total of Amounts of clearings and transfers, Federal Reserve Banks,
from Oct. 25 to Nov. 22* 19T7., inclusive.
$1,092,920,000, total clearings and transfers for
[In thousands of dollars.]
the period under consideration amounting to
$4,352,629,000, or over 14.8 per cent of the
Balances
!
Total
Transfers.
; clearings.
adjusted.
total clearings and transfers through the fund
j
since its establishment in May, 1915. Changes Settlement of—
'
752,087
83,900
84,248
Oct.
25,1917
;
in the ownership of gold in the fund amounted
120,500
695,925
61,592
Nov. 1,1917
i
152,250
88,425
685,695
i
Nov.8,1917
1
to only 1.77 per cent of the obligations settled, i Nov. 15,1917..
45,923
i
71,490
96,890
113,000
Nov. 22,1917
i
979',
as against 7.42 per cent for the four weeks end377,078
541,140
Total
I 3,811,489
ing October 18 and 2.04 per cent from May 20,
1,509,004 1,708,365.5
Previously reported for 1917.... I 16,603,006
1915, to November 22, 1917.
Total since Jan. 1,1917.... 20,414,495
2,249,505.5
transfers Jan. 1, 1917, to
As may be seen from the table showing the Total
date
2,249,505.5
for 1916, including trans- \
changes in the ownership of gold, the New Total
fers
i 5,633,966
Total
for
York, Boston, and Chicago banks report a fers 1915, including trans- ! 1,052,649
heavy movement of funds to other Federal
Total clearings and trans- !
fers, May 20, 1915, to \
Reserve districts, mainly to Richmond, AtNov. 22,1917
29,350,615.5
lanta, and St. Louis. Balances in the fund,
Changes in ovmership of gold.
[In thousands of dollars.]

Total to Oct. 18,1917.

Federal Reserve Bank of—
Decrease.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco.
Total....

Increase.

From Oct. 18 to Nov. 22,1917, inclusive.

Balance
to credit
Oct. 18,
1917, plus
net deposits of
gold since
that date.

821,979
52,201
I
26,962
1
49,809.6 j
28,701.5 I
36,843
1-1,636
i
70,033
94,472.66 j
19,510
10,611
j
18,198
j
21,311
39,912.35 j
60,942.5
9,901
I
41,544.5
24,787
97,713

.1540,407

§576,422

576,422

67,499
93,993
26,626

576,422

j 375,899.11
1 Debit,

Balance,
Nov. 22,
1917.

Decrease.

$16
28,507
33,511
58,485.6
44,371.5
13,545
74,938.66
26,140
15,894
30,217.35
19,204
31,069

$21,963
23,694

375,899.11

77,190

19,534

Total changes from
May 20,1915, to Nov.
22, 1917.

Increase.

$18,444'
$600,116
$6,549
8,676 !
15,670 !
15,181 i
"i5,"529"!!".!!".!!!!I!!
9,303
6,282 i
77,190 !

600,116

74,048
102,669
42,296
52,024
50,499
35,039
19,007
51,247.5
50,847.5
103,995
600,116

948

FEDERAL RESERVE BULLETIN.

DECEMBER 1,1917.

Gold settlement fund—Summary of transactions from Oct. 18 to Nov. 22, 1917, inclusive.
[In thousands of dollars.]
_

Boston
New York
Philadelphia
Cleveland...
Richmond...
Atlanta
Chicago
St.sLouis
Minneapolis.
Kansas City
Dallas
San Francisco

Withdrawn.

I $17,779
! 46,601
41,947
57,672.4
31,021.6
3,793.25
63,381.18 j
20,958
!
9,908
i
40,524.45
! 14,441.4

Total

| 377,257.26

Weekly statements from Oct. 18 to Nov. 15,
1917.

Gold.

j Balance
! last stateFederal Reserve Bank of— I ment f Oct.
| 18,1917.

Net
credits.

Deposited, i Debit.

87,000

10,000
59,950
18,351.8
14,702.1
13,050
53,010.5
12,750
9,000
7,507
8,740.4
18,985
233,046.8

$11,200
15,600
44,965
10,489
12,382
7,620.75
84,102
2,405
17,290
6,894.9
4,200
14,540

$19,000
121,850 $412,000
79,000
54,000
46,000
6,000
4,000
7,400
36,600
31,000
15,000
10,000
27,390
49,000
3,390
24,300
8,000
65,000
63,350

$12,671
313,844

541,140

377,078

231,688.65 j 541,140

Nov. 22,
1917, balance in
fund after
close of
business,

$259,876
1,390,208
357,108
279,308
163,909
94,401
510,741
241,367
116,965
150,025
2,954
85,453
5,268 ; 162,068

$256,913
1,076,364
442,717
341,984
219,579
106,182
496,807
261,896
142,051
185,940
111,056
170,000

85,549
62,676
55,670
13,465
25,925
21,327
25,086
38,869
25,603
13,200

S16
28,507
33,511
58,485.6
44,371.5
13,545
74,938.86
26,140
15,894
30,217.35
19,204
31,069

3,811,489 ; 3,811,489

377,078

375,899.11

$9,708

Federal Reserve Agents' fund—Summary of transactions from Oct. 18 to Nov. 22, 1917.
[In thousands of dollars.]
!
Federal Reserve Agent at—

Boston
Philadelphia
Cleveland
Richmond
Atlanta.
Chicago..,
St. Louis.,

Balance
last
state
mcnt,
Oct. 18,
1917.

Gold
withdrawn.

Gold
deposited.

Balance,
Nov. 22,
1917.

$53,950
10,300
6,700
13,050
49,010
12,750

$2,000
54,624
30,000
31,500
38,070
87,479
33,805

$2,000
32,939 $32,265
300
20,000
24,800
31,470 *""6."456'
51', 889
90,358
1,405
22,460 i

Balance
last
state
Federal Reserve Agent at— | ment.
Oct. 18,
1917.

Minneapolis
KansasCity
Dallas
San Francisco

Gold
withdrawn.

j $18,500 i
i 23,360:
j
9,674:
i 26,366

Total

Gold
deposited.

Balance,
Nov. 22,
1917.

$8,000
500
2-300
14,850

$4,000
5,500
3,500
18.985

$14,500
28,360
10,874
30;501

| 301.927 i 117,959

177, 745

361, 713

Operation of the Federal Reserve clearing system,, Oct. 16 to Nov. 15, 1917.

Items drawn on
banks in Federal Reserve city
(daily average).

i
|
j
!

Num- !
! bor. ! Amount.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
KansasCity...
Dallas
."
San Francisco.
Totals:
Oct. 16 to Nov. 15, 1917.
Sept. 16 to Oct. 15,1917.
Aug. 16 to Sept. 15, 1917
July 16 to Aug. 15,1917.
June 16 to July 15,1917.
May 16 to June 15,1917.
Apr. 16 to May 15,1917.
Mar. 16 to Apr. 15,1917.

2,643! $12,368,304
5,350] 72.910,887j
16,616,966!
4,205,977
l'253 4,302,908
1,421
2,096,599
8,480 21,812.000
2,167i 11,556,021
2,599i 6,822,141
2,194! 6,569,828
1,205, 1,432,252
3,874 5,858,890
47,574
40,591
36,306
36,727
38,476
37,898
33,767|
31,162j

166,552,773
128,271,466
100,331,694
98,075.919
109,722,256
97,322,883
87,370,859
60,288,002

Items drawn on
banks in district outside
Federal Reserve city
(daily average).
Number.

Items drawn on
banks in other
districts (daily
average).

Total (exclusive
of items drawn
on Treasurer of
United
States
(daily average).

Amount

Items drawn on Num- NumTreasurer of
ber of ber oi;
United States mem- non(daily average). ber membanks ber
in
banks
dis- on par
trict
list.

43,779
65,812
44,406
22,098
24,298
14,050
29,056
13,374
16.784j
19; 569!
14,893
17,571

$23,817,376
101,457,819
3li 879,094
16; 929,534
16,353.131
7,192; 977
26,921,000
16,956,146*
10,268,184!
18,034,396
5,528,846!
8,800,307i

2,018 Sl,640.098::
397
241
15,887 6.610.037!
651
345
1,695 1,543,442!
628
298
'326
237,448j
756
565
183,541|
526
404
265
490,051i
431
337
1,424,000! 1,066 2,221
477 1,005
884,942j
V
768 1,024
64,150
267
955 1.525
748,
OOOi
1,184
633
116; 968|
220
224
538 1,163
3.554,297!
1,270

325,
293,742!
251,061!
243,625!
255,039]
250,2411
238,288
32,008j 34,693,542 231,777

I
283.938.810:
220,732,251!
182,303,483!
176,410,219!
197,489,6741
174; 238,737!
160,680,956!!
127.618,503

30,426
26,797
23,492
19,533
19,100
16.344
15,925
12,582

Amount. ^ " P

Amount,

37,331
38,592
19,477
19,167
20,850
11,318
18,641
10,979
13,274
16,599
13,137
13,358

$4,922,785
15,910,259
3,151,195
10,337,157
6,978,792
2,904,034
4,515,000
3,009,231
1,410,516
6,113,469
2,477,420
2,566,352

3,805;
21,870i
10,071J
1,401|
2,195J
1,3111
1,935!!
228
911j
776
551

$6,526,287
12.636; 673
11.910,933
2,386,400
5,071,431
2,192,344
594,000
2,390,894
2.035,527
5,351,099!
1.619,174!
375,065;

232,723
212,935
182,191
175,625
182,622
179.193
171,093
168,607

61,298.210
47,476.204
41,323,621
40,353,278
41,004.720
38,599,461
36,473,163
32,666,959

45,393
40,216
32,564
31,273
33,941

53,089,827
44,984,581
«44984581
,^x,Wx
40648168
40,648,168'
37,981,022
,9,0
46,762.698"
38314; 393

^urn-

17,496,974
13.518,566
li; 006,515
9,701,569
11,637.899
4,414,508
3,597,865
2,643.408

7,
7,747

9,210
9,052

7,718
...
7.
7,651
7,634
7.625

8,805
8,789
8.926
8; 607

DECEMBER 1,1917.

949

PEDEEAL BESEKVE BULLETIN*

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:
Drafts Drawn "On or Before 90 Days After Sight."
(To a Federal Reserve Bank.)

I have your letter of November 2, inclosing
a letter from the
Bank in regard to bills
drawn "on or before 90 days after sight."
I agree with you that we should not encourage or countenance this practice. If the bank
accepts, it ought to accept for a definite period,
otherwise the acceptance becomes in effect a
limited demand note, or rather a certified
check to be presented within a limited period
of time. If an acceptance of this kind
passed into the hands of a third party (other
than the acceptor or the drawer), this third
party could then according to his own requirements present this note for payment on any day
he pleased, and probably the acceptor could not
be put in funds in time. There may be conditions where the drawer—the goods being still
in course of transportation—would not be in
a position to cover the acceptor, even when
requested by the latter to do so.
All that is required, I believe, is an understanding with the Federal Reserve Bank that
it woula permit the acceptor to take up its
acceptance before maturity under rebate, and
if a Federal Reserve Bank wants to encourage
his business there is no reason why the Federal
Reserve Bank could not make such an arrangement. But any such agreement would
be a voluntary one between a holder of the
acceptance and the acceptor and could not
affect a fourth party who might happen to
become the holder of the acceptance.

The Board, after consultation with counsel,
is of the opinion that there is no provision in
the Federal Reserve Act which authorizes a
Federal Reserve Bank to rediscount a participation certificate, because even though the
original note is eligible for rediscount, a participation certificate nevertheless is nothing more
than the evidence of an equitable interest in
that original note, and does not in any way represent a legal claim against the maker of the note.
Should a Federal Reserve Bank rediscount a
participation certificate, there would be nothing
to prevent the holder or trustee of the original
note from selling or otherwise disposing of it to
a bona fide holder for value, in which event the
Federal Reserve Bank which had rediscounted
the participation certificate would have no
claim whatever against the maker of the original note, and no right to its proceeds against a
holder in good faith.
Entirely apart from the risk involved, it does
not seem that those sections of the Federal Reserve Act which authorizes the rediscount of
notes, drafts, or bills of exchange can possibly
be construed as authorizing the rediscount of an
[uitable interest in such notes, drafts, or bills
NOVEMBER 1,

1917.

Public-Service Corporation Paper.
(To a Federal Reserve Agent.)

Receipt is acknowledged of your letter of the
14th instant, asking for the views of the Board
as to the eligibility of notes of certain publicservice corporations.
The Board wrote some time ago, either to you
or to the governor of your bank, that this is a
matter which it could not cover by a general
ruling. It seems to be a matter for determination by the Federal Reserve Bank after an analysis of the statements rendered. If it is clear
NOVEMBER 5, 1917.
that the notes can not be liquidated within a
short time out of current assets accruing
through ordinary earnings, and that the borrowing is really for capital account, the notes should
Rediscount of Participation Certificate.
not be regarded as eligible. But, on the other
(To a Federal Reserve Bank.)
hand, if the note is given in payment of mateYour letter of October 24 raises the question rial or supplies which are necessary to enable
whether a Federal Reserve Bank may redis- the public-service corporation to furnish goods
count a certificate of participation in a note, (light, heat, or power) which it sells the public,
and for which the public will pay at the end of
such note itself being eligible for rediscount.

950

FEDERAL KESERVE BULLETIN.

30 or 60 day periods, the note might be regarded as eligible, provided the statement of
the corporation shows a satisfactory proportion
of cash and accounts receivable against current
liabilities. The cardinal test for eligibility is
undoubtedly the ability of the public-service
corporation to p&y the obligation within 90
days out of collections accruing from current
earnings.
NOVEMBER 17,

1917,

DfiCEMBSll 1, 1917.

"Are acceptances originating inside but payable outside subject to stamp taxes?' 7
I beg to advise that the matter was referred
to the Board's counsel for a ruling, which he
has rendered as follows:
" In my opinion questions should be answered
in the affirmative."
In support of his decision, counsel cites sections 800, 801, and 802 of the act approved
October 3, 1917.
NOVEMBER 13,

1917.

Tax on Promissory Notes.
(To Federal Reserve Banks.)

Eligibility of Mutual Savings Bank.
(To an individual.)

In December, 1914, Hon. Wm. H. Osborne,Replying to your letter of the 25th instant,
who was then the Commissioner of Internal
Revenue, advised the Board that the following I would state that you are correct in your
understanding that a mutual savings bank
rulings
had been made by his bureau:
i
'The rediscount of a note by a bank does without capital stock or stockholders is not
eligible, under the law, for membership in the
not involve any tax liability.
"A promissory note payable on demand is Federal Reserve system.
OCTOBEK 30, 1917.
not held to be renewed and subject to tax under the provisions of the internal revenue
act of October 22, 1914, when accrued interest
| State Bank Membership.
thereon is paid.
(To a State bank.)
"A promissory note may have interest pay- I
ments indorsed thereon without becoming i I have received }^our letter of the 25th
subject to tax if the life of the note is not con- instant, in which you refer to the restrictions
tingent upon payment of the interest and is which disqualify your bank from membership
not extended to a certain future date.
in the Federal Reserve system. From what
"A promissory note given for a fixed period you say, however, I am not at all sure that
which, when due, is allowed to run without your investments are of such a character as to
suit, is not held to be renewed upon payment disqualify you, for the Federal Reserve Act
of interest. This is looked upon as a forbear- has been amended so as to allow State banks
ance and not as a renewal; the holder not re- to become members and retain, at the same
linquishing his right for any stated period, and,
time, all of their charter and statutory privitherefore, no stamp is required in such cases.7' leges under their State laws. If you are auThe present commissioner, Hon. Daniel C. thorized under your law to invest in real estate
Roper, advises the Board that these rulings are mortgages, the fact that you have large indeemed to be consistent with proper enforce- vestments of this kind would not bar your
ment of the existing law. This information is bank from membership in the Federal Reserve
given you in order that it may be transmitted system. Of course, if you should wish to
to your member banks in such manner as may rediscount with the Federal Reserve Bank
be deemed expedient.
you would be obliged to offer eligible paper,
NOVEMBER 28, 1917.
that is, commercial paper having not longer
than 90 days to run, or agricultural paper or
paper based on live stock maturing within six
months.

Stamp Tax on Acceptances.

(To a Federal Reserve agent.)

OCTOBER 30,

1917.

With reference to your telegram of Novem- j
(To a Federal Reserve Agent.)
ber 8, reading as follows:
"Are acceptances originating outside but
I have received your letter of the 28th instant
payable inside this country subject to stamp in reference to the inquiry of
, as to
taxes ?
whether his institution can become a member

DECEMBER 1,

FEDERAL BESEEVE BULLETIN.

1917.

of the Federal Reserve system as far as the reserve feature goes, without becoming amenable
to all of the acts. I am inclosing for Mr.
—- information a copy of the Federal Reserve Act, as amended, and would refer you to
section 9 which sets forth fully the terms, conditions, regulations, restrictions, and limitations of State bank membership. I think you
will agree with me that the terms prescribed by
the act are liberal enough, and that the Board
can not, if it would, waive its right to make
examinations, although it may not choose to
exercise it, nor can it waive any of the other
provisions and penalties prescribed in the section.
If admitted as a member, the
would
not be disturbed in the enjoyment of the privileges or the exercise of the powers given by its
charter, excepting in so far as these would conflict with the provisions of the Federal Reserve
Act.
OCTOBER 30,

1917.

Method of Computing Discount.
(To a member bank.)

In reply to your letter of inquiry dated September 7 there is forwarded herewith a tabulated statement showing the methods used by
each of the Federal Reserve Banks in computing discount.
Aside from the fact that New York and
Boston Federal Reserve Banks figure discount
on a 365-day basis while all the other Federal
Reserve Banks use 360 days, the methods used
by the Federal Reserve Banks do not vary.
Discount is computed on the actual number of
days the paper has to run, the date of payment
of course varying in different States in accordance with the laws regarding holidays in force
in the different jurisdictions.
Differences in the number of days and the
amounts of discount shown in the above table
result from the fact that a number of banks
failed to take into consideration the fact that
March 3 was a Saturday, when notes are not
payable in some States, that July 1, 1917, fell
on Sunday, also from the use of the 365-day
basis by the New York and Boston banks
Instead of the 360-day basis, used by the other
banks.
OCTOBER 29,

1917.

951

Deposits With Nonmember Banks.
(To an individual.)

Receipt is acknowledged of your letter of
October 30, and in reply you are informed
that section 19 of the Federal Reserve Act
provides that—
"No member bank shall keep on deposit
with any State bank or trust company which
is not a member bank a sum in excess of 10
per cent of its own paid-up capital stock and
surplus."
This provision was clearly intended to apply
to State banks and trust companies which become members of the system as well as to
national banks. If there could have been any
doubt on this subject it is removed by that
part of section 19 as amended, which provides that:
$%." Banks becoming members of the Federal
Reserve system under authority of this section shall be subject to the provisions of this
section and to those of this act which relate
specifically to member banks."
NOVEMBER 3,

1917.

War Savings Certificates as Christmas Gifts.
(To a Federal Reserve Bank.)

Referring further to your letter of October
29, in which you inclose a letter from
,
dated October 27, with reference to the use of
gold as Christmas holiday gifts, I beg to advise
you that at a meeting of the Federal Reserve
Board, held November 18, the committee to
which this matter had been referred reported
that—
«* * * iT1 yiew of the general opinion that
old should be concentrated, the attention of
ankers, employers of labor, and of individuals should be directed to the new war savings
certificate plan as being an entirely suitable
and patriotic method of handling the matter.
These war savings stamps will be on sale by
December 1, descriptive literature is now on
the press, and the Treasury circular will be
issued within a few days/ 7
This report was approved by the Board.

NOVEMBER 19,

1917.

952

FEDERAL RESERVE BULLETIN".

DECEMBER 1,1917.

LAW DEPARTMENT.
"An agency requires no division of the capital
The following opinions of counsel have been
authorized for publication by the Board since stock, and the details of the business are few
and* are easily supervised by the officers of the
the last edition of the Bulletin:
bank, while a branch requires, in effect, a diviReal Estate Loans by Foreign Branches.
sion of the capital, the working force is organA branch bank of a national bank established in a foreign ized, and the business conducted as if it were
country, under authority of section 25, may make loans a separate organization, and it competes in all
on real estate located within 100 miles of the branch, pro- branches of the banking business with other
vided such loans conform in all other respects to the pro- banks in that locality the same as if it were an
independent institution." (Citing certain auvisions of section 24.
thorities in suppport of this proposition.)
NOVEMBER, 17, 1917.
This would seem to be particularly true of a
SIR: This office has been requested to give
consideration to the question of the right of a branch operating in a foreign country. Such a
branch bank of a national bank established branch must necessarily exercise the functions
in a foreign country, under authority of section possessed by the parent bank in competition
25 of the Federal Reserve Act, to make loans on with other local banking institutions and if it
is to meet such competition should not be
real estate.
Section 25 authorizes national banking asso- restricted in its operations to any greater
ciations possessing a capital and surplus of extent than the parent bank.
Section 24 of the Federal Reserve act pro$1,000,000 or more, under regulations prevides that—
scribed by the Federal Reserve Board—
Any national banking association not situto establish branches in foreign countries or
dependencies or insular possessions of the ated in a central reserve city may make loans
United States for the furtherance of the for- secured by improved and unencumbered farm
eign commerce of the United States, and to land situated within its Federal Reserve district
act if required to do so as fiscal agents of the or within a radius of 100 miles of the place in
which such bank is located, irrespective of
United States.'
district lines, and may also make loans secured
The act does not undertake to prescribe the by
improved and unencumbered real estate
functions of branches. It is to be assumed located within 100 miles of the place in which
that national banks are to exercise through such bank is located, irrespective of district
their branches the same corporate powers that lines; but no loan made upon the securare exercised by the parent bank, subject, of ity of such farm land shall be made for a
course, to such regulations of the banking busi- longer time than five years, and no loan made
upon the security of such real estate as disness as may be contained in the laws of the tinguished from farm land shall be made for a
foreign country in which the branch is located. longer time than one year nor shall the amount
While the branch has no separate corporate of any such loan, whether upon such farm
entity and obligations assumed by it become land or upon such real estate, exceed 50 per
obligations of the parent bank, it is to all cent of the actual value of the property
offered as security. Any such bank may
intents and purposes a separate organization make such loans, whether secured by such
in the exercise of its functions. It is in this farm land or such real estate, in an aggregate
respect that it differs from an agency.
sum equal to 25 per cent of its capital and
The Attorney General, in an opinion pub- surplus or to one-third of its time deposits
and such banks may continue hereafter as
lished in the " Opinions of the Attorney Gen- heretofore
to receive time deposits and to
eral 29, 81," discusses at some length the differ- pay interest on the same.
ence between an agency and a branch bank.
The Federal Reserve Board shall have power
In the course of his opinion he says:
from time to time to add to the list of cities in

FEDERAL BESEBVE BULLETIN.

DECEMBER 1,1917.

958

which national banks shall not be permitted to porate powers not possessed by the parent
make loans secured upon real estate in the bank and must confine its loans on real estate
manner described in this section.
to those specifically authorized by section 24,
It is manifest that a branch of a national it is the opinion of this office that such branches
bank located in a foreign country can not be may exercise any of the functions or corporate
situated within an}? Federal Reserve district, powers possessed by the parent bank subject
all of which districts are included within the only to the restrictions that are contained in
geographical limits of the United States. Land the National Bank Act and the Federal Reaccepted as security for a loan could not, there- serve Act, and subject, of course, to the laws
fore, be located in the same Federal Reserve of the country in which the branch is located
district as the branch bank. It could, however, which regulate the banking business.
be located within 100 miles of the branch bank,
In this view, section 24 should be construed
and the question arises whether a branch may as authorizing the branch bank to make loans
make loans on real estate located within 100 on real estate located within 100 miles of the
miles of its place of business if such loans com- 510.11011, provided such loans conform in all
ply in other respects with the provisions of other respects to the provisions of section 24.
section 24.
Respectfully,
The question arises in connection with a
M. C. ELLIOTT, Counsel.
branch established on the Isthmus of Panama
To Hon. W. P. G. HAHDING,
by a national bank located in Washington,
Governor Federal Reserve Board.
which is not a central reserve city. The manager of the branch bank makes the following
for Membership by Sfcit&
statement of local conditions:
There are a great many people here of perA State bank may make application for membership In
fectly sound financial standing, but there are
very few stocks, bonds, or other negotiable the Federal 'Reserve system as soon as it lias been granted
a charter and is authorized to commence business.
securities held by the moneyed classes.
• The ordinary procedure of a successful merNOVEMBER 10, 1917.
chant here is to put the bulk of his earnings
into improved real estate. These urban, prop- | SIB: The accompanying letter raises the
erties have so high a rate of yield that ordinary j question whether a State bank or trust combonds, etc., can not compete with them as pany may apply for membership in. the Federal
attractive investments. Therefore in. many Reserve system after organization but "before
cases when we make a loan if we wish, actually
to hold more than the names of the parties | the applying bank has actually commenced
who sign the document we are forced to take j business.
a mortgage on some of their property.
Section 9 of the Federal Reserve Act provides
that—
It thus appears that unless this branch is
Any bank incorporated by special law of any
permitted to accept the security of real estate
on loans made, it will be forced to make only State or organized under the general laws of
any State of the United States, desiring to
unsecured loans if it is to continue business in become
a member of the Federal Reserve systhe country in question.
tem, may make application to the Federal
It is hardly probable that Congress intended Reserve Board, uncler such rules and regulato require branches of national banks to tions as it may prescribe, for the right to subengage in the banking business in competition scribe to the stock of the Federal Reserve Bank
I organized within the district in which the
with local foreign banks under restrictions I applying bank is located. Such application
which would prohibit such branches from | shall be for the same amount of stock that the
obtaining the benefit of local securities, and applying bank would be required to subscribe
while the branch could not exercise any cor- to as a national bank. The Federal Reserve

26416—17

954

FEDERAL RESERVE BULLETIN.

Board, subject to such conditions as it may
prescribe, may permit the applying bank to
become a stockholder of such Federal Reserve
Bank.
Under this language a bank would clearly
be entitled to make an application as soon as
it has been granted a charter and is authorized
to commence business. This section further
provides that—
In acting upon such application the Federal
Reserve Board shall consider the financial condition of the applying bank, the general character of its management, and whether or not
the corporate powers exercised are consistent
with the purposes of this act.
This might seem to indicate that Congress
intended to permit only those banks to apply
for membership which are actively engaged in
exercising their corporate powers. The purpose of this provision, however, was manifestly to enable the Board to determine whether
the functions of the applying bank are banking
functions or whether it is engaged in a business
which is inconsistent with the provisions of the
Federal Reserve Act. It presupposes that the
applying bank possesses corporate powers, the
exercise of which would not be consistent with
the purposes of the act. If, therefore, the
charter of the applying bank does not contain
corporate powers which should not be exercised as a member bank, there would seem to
be no reason why the Board should not authorize its membership. In any event, there would
seem to be no reason why a bank incorporated
under a State law should not file its application with the Federal Reserve Board for such
action as it may deem necessary.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. W. P. G. HARDING,

Governor Federal Reserve Board.
Rediscount of Bank's Note given for Fluids to Replace
Deposits Withdrawn to Purchase Liberty Bonds.
A note executed by Bank "A" and discounted by Bank
" B , " the proceeds of which wore used to replace funds
withdrawn by customers to purchase liberty bonds, is

DECEMBER 1,1917,

| not eligible for rediscount by a Federal Reserve Bank,
since the proceeds were not used for an agricultural, industrial, or commercial purpose, or for the purchase of
notes or bonds of the United States.
NOVEMBER 1,

1917.

SIB: The attached letter presents for consideration the following case:
Bank " A " finds it necessary, on account of
heavy withdrawals made to pay for Liberty
bonds, to borrow on its note. It executes a
promissory note secured by stocks and bonds
other than bonds of the United States and discounts this note with Bank " B . " Bank " B "
subsequently offers the note of Bank " A " to
the Federal .Reserve Bank for rediscount.
You have asked whether in the opinion of this
office this note can be considered as eligible on
the ground that the proceeds of the original
discount were used to replace deposits withdrawn from Bank " A " by customers purchasing Liberty bonds.
Under section 13 of the Federal. Reserve Act
the eligibility of a note for rediscount is determined by the use of the funds derived from the
original negotiation of the note. The collateral
security of the note may indicate its use, but the
form of collateral is otherwise immaterial. In
other words, a note might be secured by railroad stocks and bonds, but the proceeds might
be used for an agricultural, industrial, or a
commercial purpose, in which event the note
would be eligible for rediscount, although it
would not be if the proceeds were used to purchase or carry the railroad stocks and bonds.
Applying this test to the case under consideration, it seems clear that the proceeds of the
note executed by Bank " A " and discounted by
Bank "B" were not used for an agricultural,
industrial, or commercial purpose. They became a part of the general assets of the bank,
having been borrowed to replace deposits withdrawn, and presumably were to be used to pay
depositors or to make loans to customers. If
it could be shown or assumed that these funds
were used by the bank to purchase or carry
United States bonds, the note in question would
be eligible for rediscount; but since there is no

DECEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

955

Stat. 34) are so far repealed by section 26 of
the Federal Reserve Act (Act Dec. 23, 1913,
38 Stat. 251), that the shareholders in the
plaintiff bank are exempt from taxation by
virtue of section 7 of the last-named act on so
| much of its capital and surplus as is invested
To Hon. W. P. G. HABDING,
in stock of the Federal Reserve Bank. A
Governor, Federal Reserve Board.
temporary injunction issued when the bill was
filed.
Deduction of Federal Reserve Bank Stock irons Tax
Under section 5219, the States are empowered
Assessments Levied on Shareholders of National to tax the shares of stock of national banks by
Banks.
including them in the valuation of the personal
The following opinion rendered recently by property of the owners in the assessment; of
Judge Sater of the United States District taxes. The only restriction on this power of
Court, Southern District of Ohio, Western taxation is that taxation thereon shall not be
Division, holds that Federal Reserve Bank any greater than is assessed on other monied
stock which is held by a national bank can capital in the hands of individual citizens of
not be deducted by such national bank in the State imposing the tax, and that the shares
making a. return of the value of its own stock of any national bank owned by nonresidents
of any State shall be taxed in the city or town
for the purposes of taxation.
where the bank is located and not elsewhere.
[United States District Court, Southern District of Ohio, Western
Division. First National Bank of Cincinnati, Ohio, Plaintiff, v. Peter Real property of national banks is by the
W. Durr, auditor of Hamilton County, Ohio, ot al., Defendants. No. same section made subject to local taxation to
86. On motion to dismiss.]
the same extent as other real property.
Sater, District Judge: The motion to disThe Legislature of Ohio, in pursuance of the
miss the bill operates as a demurrer. It- authority conferred by section 5219, has
admits that, after the plaintiffs cashier had declared that all the shares of stockholders in
made the return for taxation purposes of an incorporated State or national bank shall
plaintiff's resources and liabilities, with a be listed at their true value in money and shall
statement of the names and residences of its be taxed only in the city, ward or village
stockholders, the number of shares held by within which the bank is located. Section
each and the par value of each share, the 5408, Ohio G. C. A national bank is required
defendant auditor delivered to his codefehdant to keep at its place of business a full and correct
as county treasurer the tax duplicate authoriz- list of the names and residences of its stocking him to collect, as in the Ohio statutes holders and the number of shares held by each,
provided, the taxes charged against the owners which list shall at all times during business
of the shares of stock in the plaintiff bank, hours be open to the inspection of local taxing
which taxes so charged include the sum of officers. Section 5410. The cashier of such
$3,339.36, assessed on acount of the State, bank is required to make a return to the county
county and municipal taxes claimed to be due auditor of the bank's resources and liabilities,
on account of the plaintiff's ownership of with a full statement of the names and resi$4,320 shares of stock held and owned by it in dences of its stockholders, the number of
the Federal Reserve Bank of the district shares held by each and the par value of each
within which Cincinnati is located. The share. Section 5411. The auditor then deterplaintiff claims that the provisions of section mines the value of the shares of such bank.
5219. R. S. U. S. (Act June 3, 1864. see. 41, Section 5412. The taxes assessed on the
13 Stat. I l l , as amended Feb. 10, 1868, 15 shares or their par value are made a lien thereon

justification for such an assumption the note
does not, in the opinion of this office, come
within the classification of eligible paper.
Respectfully,
M. C. ELLIOTT, Counsel.

958

FEDERAL BESEEVB BULLETIN.

from the first Monday of May in each year
until they are paid. The duty is imposed on
the bank to collect the taxes due upon its
shares of stock from the several owners of the
shares and to pay the same to the county
treasurer. Failure to do so is attended with a
penalty. Section 5672. The bank, having
paid the tax assessed upon the shares held by
its stockholders, is authorized to deduct the
amount so paid from the dividends that are
due or that may become due on such shares,
and is given a lien upon the same and on all
funds in its possession belonging to its shareholders or which may at any time come into
its possession, for its reimbursement for the
taxes so paid on "account of its several shareholders, with legal interest, which lien may be
enforced in an appropriate manner.
Section 2 of the Federal Reserve Act required
every national bank to signify in writing within
60 days after the passage of the act its acceptance of its terms and provisions. Any bank
failing for one year to become a member of
the Federal Reserve Bank forfeited all of its
rights, privileges and franchises. The amount
of each national bank's subscription to the
capital stock of the Federal Reserve Bank in
the district in which such national bank is
situated must be 6 per cent, of its paid up capital
stock and surplus. For the subscription thus
made, the national bank becomes a shareholder
or stockholder in the Federal Reserve Bank,
but may not transferor hypothecate its shares,
each of which is of the face value of $ 100. (Sec.
3.) Section 7 provides that—
"'Federal Reserve Banks, including the capital stock and surplus therein, and the income
derived therefrom, shall be exempt from
Federal, State and
local taxation, except taxes
upon real estate.77
In Tennessee v. Whitworth, 117 U. S. 129,
136, Mr. Chief Justice Waite, in speaking of
taxable corporate elements, said:
" I n corporations four elements of taxable
value are sometimes found: 1, franchises;
2, capital stock in the hands of the corporation;
3, corporate property; and, 4, the shares of the
capital stock in the hands of the individual

DECEMBER 1,1917.

stockholders. Each of these is, under some
circumstances,
an appropriate subject of taxation.77
By the unambiguous provisions of Section
5219, the power of the States to tax national
banks is confined to a taxation of the fourth
of the above elements—i. e., the shares of stock
in the names of the shareholders, and to an
assessment of the real estate of the bank.
Owensboro National Bank v. Owensboro, 173
U. S. 664, 669; People v. Weaver, 100 U. S.
539, 549; State, Northward National Bank v.
City of Newark, 39 N. J. L. 380, 383; Flint v.
Board of Aldermen, 99 Mass. 141, 145; First
National Bank of Richmond v. City of Richmond, 39 Fed. Rep. 309.
When the plaintiff subscribed to the capital
stock of the Federal Reserve Bank, it permanently invested a portion of its capital and, it
would seem, of its surplus also. Capital is
thus defined in Bailey v. Clark, 88 U. S. 284,
286:
"When used with respect to the property of
a corporation or association, the term has a
settled meaning; it applies only to the property
or means contributed by the stockholders as
the fund or basis for the business or enterprise
for which
the corporation or association was
formed.77
Capital or capital stock (the terms being
often used synonymously) is not the same
thing as the shares of capital stock. In
Farrington v. Tennessee, 95 U. S. 679, 687
(quoted with approval in Powers v. Detroit &
Grand Haven Ry., 201 U. S. 543, 560), it is
said:
"The capital stock and the shares of the
capital stock are distinct things. The capital
stock is the money paid or authorized or required to be paid in as the basis of the business
of the bank and the means of conducting its
operations. * * * The capital stock and
the shares may both be taxed, and it is not
double taxation. The bank may be required
to pay the tax out of its corporate funds, or be
authorized to deduct the amount7 paid for each
stockholder out of his dividends.'
The Federal Reserve Act recognizes and
maintains the distinction between capital stock

DECEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

957

and the shares of capital stock. See Sees. 5 to Crocker-Woolworth National Bank, 92 Fed.
8, both inclusive. It will be further noted that Rep. 273. The courts have repeatedly ruled
the term "capital stock/' when used in refer- that in fixing the value of the shares of stock
ring to a national hank, has the same meaning of national banks for taxing purposes, the value
as when applied to a Federal Reserve Bank, due to the bank's ownership of nontaxable
The exemption from. Federal, State and local United States bonds as a part of its assets must
taxation, given by section 7 of such act, by be included. See, for instance, Cleveland Trust
express language extends only to the banks Co. v. Landers, 184, XL S, 111: Hager v.
organized under that act,' 'including the capital American National Bank, 159 Fed. Rep. 896,
stock (capital) and surplus therein, and the 401. C. C. A.,'6; Van Allen v. Assessors, 3 Wall.
income derived therefrom/' The correct in- 573; People"?;. Commissioners, 4 Wall at p. 258 ;
terpretation of such an exempting clause is National Bank v. Commonwealth, 9 Wall, at
gathered from Railroad Companies v. Gaines, p* 559; Home Savings Bank v. Des Moines, 205
97 U. S. 697, 707, in which it was said:
U. S. at p. 518, 519. The same rule applies to
"In general, a,n exemption of capital stock, nontaxable stock held by the plaintiff in the
'without more, may, with great propriety, be Federal Reserve Bank.
considered, under ordinary circumstances, as
The declaration in section 26 of the Federal
exempting that which, in the legitimate opera|
Reserve
A.ct that all provisions of law incontion of the corporation, coniesfcorepresent the
| sistent with or superseded by any of the procapital."
The exemption provided in section 7 does not visions of such act are to that extent repealed,
extend to national banks organized under the has no application to such a situation as is
national banking law. Had Congress intended presented by the bill, for the reason that the
that their capital stock should be relieved from exempting clause found in section 7 does not
relieve or purport to relieve national banks,
taxation, it would have said so.
The stock purchased by the plaintiff in the their capital and surplus from the taxation
Federal Reserve Bank is but a nontaxable in- authorized by Section 5219, and is therefore not
vestment of a part of its capital and surplus. inconsistent with and does not supersede the
As said in First National Bank v. Albright, 208 provisions, or any of them, of such last named
section.
IT. S. 548,553:
The temporary injunction is dissolved and
"The law does not consider the nature of a
the
motion to dismiss the bill is sustained. The
bank's investments not taxed in fixing the
same
ruling may be taken in cases Nos. 87, 88
value of its stock. Palmer v. McMahon, 133
U. S. 660."
and 89, if the issues involved in those respective
Whatever value the shares issued by the cases are the same as in this, which I underplaintiff national bank possess, they are to stand to be the fact.
Other questions have been raised by the
that extent taxable in the hands of their
owners and holders. Rosenblatt v. Johnson, defense, but their consideration is not deemed
104 IT. S. 462; City, etc., of San Francisco v. necessary.

958

FEDEBAL EESERVE BULLETIN.

DEC EM BEE 1,1917.

SUMMARY OP BUSINESS CONDITIONS NOVEMBER 23,1917.
District No. l-~
Boston.
General business
Crops:
Condition

District No. 2—
New York.

District No. 3™
Philadelphia.

Good
Trend toward Gov- j Very active
ernment work. |
Yield reported good

Outlook
Very busy.
industries of the dis- Busy
trict.
|
Construction, build- Mostly on Govern- j Very quiet,
ing, and engineerment work.
!
ing.

do
Very busy.
Very dull.

Foreign trade

District No. 4
Cleveland.

District No. 5—
Richmond.

District No. 6™
Atianta.

Not entirely satis- Satisfactory; good Good.
factory.
volume.
Fair
Prices high and re- Winter grains fab.
turns satisfactory.
Improved
Engaged as fully Running full on j Operating fall,
as practicable for remunerative I
war purposes.
Decided falling off. Private building \ Very little.
limited; Govern-1
ment work in !
large volume, i
Limited by re- ! Light
strictions and
scarcity of freight
room.
Increase
Increase
IncreaseFirm at. about
Plentiful at 5 to 6 ! Stiffening.
per cent.
per cent.
;
Increase
Increased
; Increase.

Imports increased; j Volume slightly de- Large.,
exports decreased.! creased; value |
J s u b s t a n t i a l l y ;• »
Increased
I Decrease
Increase
Bank clearings
Little change from ! Steady
No change.
Money rates
last month.
j
I Heavy
Railroad, post office, Spotty
and other receipts.
Unsatisfactory
| Labor supply Ic
Labor conditions
Scarce and wages j Slightly better— Scarce and wages . Fair,
! than demand.
high.
i Fairly good
Good
j Not unfavorable.,. Generallysatisfac- ', Good,
Outlook..
tory.
All energy devoted j 'Fuel and transpor- Fuel, transporta- General adoption Bank d e p o s i t s
Remarks.
of "necessities
t;o needs of the j tation
serfon s
high; collections
tion, and labor
only" policy,
Government.
; problems.
good; money beunsatisfactory.
and adjustments ing spent too
to fulfill Governfreely.
ment require*
ments.
District No. 7Chicago.
General business
Crops:
Condition
Outlook
Industries of the district.
Construction, building and engineering.
Foreign trade..
Bank clearings
Money rates

Active

District No. S~
St. Louis.
| Active
j
!

District No. 9—
Minneapolis.
i
!

Good

Good
..do..
Generally active.... Generally active... Active
Fair
Very quiet.
Very quiet.

Increase
Firm

Decrease..
Very firm.

Railroad, post office, Post office increase. Inerease
Increase
and other receipts.
Scarcity of labor
Labor conditions
Men scarce; high Good
wages.
Outlook
Remarks

Good

Favorable.

District No. 10—
Kansas City.

District No. 11Dallas.

Excellent
Large yield; much Fair..
soft corn.
Wheat good
..do..
Excellent
Very active
Little building... Ordinary building
below normal;
total operations
good, account
Governme n t ' s
activities.
Large; increase
Good..
overOctober,1916.
Increase
Increase
Firm;
demand
Slight advance.
good; a m p l e
funds.
Increase
,
Good
Fully employed; Unusual demand
but
1 i 111 * for skilled men,
trouble.
and actual shortage.
Good
Situation generally satisfactory.

j Cotton m o v i n g Large amount of General car short- Scattered r a i n s
have helped sitage; all imporfall plowing ac! slowly.
uation; drouth
tant labor
complished.
serious in port r o u b l e s adtions of district;
justed; Governbusiness at
ment regulation
larger c i t i e s
working well.
good, at cantonment points at
record figures.

District No. 12—
San Francisco.
Large volume.

Active.
38 per cent less than
a year ago.

Increase.
Firmer.
Very large.
Unsettled but less
For larger trade
and active industry.
Extraordinary returns for agricult u r a l products
and extraordinary wages to an
unusual number
of employees
have resulted in
active trade.

FBDEBAL RESERVE BULLETIN.

DBCEMBHB 1,1917.

959

GENERAL BUSINESS CONDITIONS.
There is given on the preceding page a summary of business conditions in the United
States by Federal Reserve districts. These reports are furnished by the Federal Reserve
Agents, who are the chairmen of the boards of
directors for the Federal Reserve Banks of the
several districts. Below are the detailed reports as of approximately November 23:
DISTRICT!1 NO. I—BOSTON.

Business in general follows the same trend as
during the last month or two, Government
business becoming an ever-increasing factor,
and domestic business, except in necessities
and lines pertaining to war, is gradually becoming less. This has been emphasized during/the
past month by statements emanating from
Washington that all our energies must be devoted to the carrying on of the war and all other
interests must be secondary.
The large oversubscription to the second Liberty Loan in this district is due to the patriotic
efforts of banks and business men who gave ungrudgingly of both their time and money for subscriptions and to further the success of the issue.
Although the banks in this district have had
heavy demands throughout the year from their
commercial customers; still the financing of
Liberty -Loan subscriptions dining the last
month has been accomplished without any undue disturbance to the money market.
The securities market has heen unsettled,
and this disturbance has extended to even the
highest grade of railroad bonds, which in some
cases have shown radical declines, carrying
them to a lower point than for many years.
The labor situation has been a most disturbing factor not only in domestic business but
also in plants engaged on Government work.
In the latter, strikes have been in progress
during the month.
The boot and shoe industry is spotty, and
manufacturers are using a good part of their
facilities on Government orders. Retail shoe
business is somewhat duller, due to general

economy and higher prices. In men's shoes
the lessening demand is attributed to the draft
of young men into the Army. Manufacturers,
in making comparisons of their business, find
that they are selling fewer pairs of shoes than
last year, but that their business in money
values is larger, because prices are on an average 30 per cent higher than a year ago. The
leather market continues firm, and many of the
large manufacturers are following a hand-tomouth policy in purchasing their requirements.
The wool market continues firm, with, a tendency upward.. The English. Government has
released 45,000 bales of Australian fine wool,
and this is reported to have all been shipped.
In fact, one small shipment has already been
received. This will be put on sale at auction
in Boston to be used for civilian purposes.
Wool and worsted mills continue to operate at
capacity. The November 1 statement of the
National Association of Wool Manufacturers
shows a very small percentage of idle machinery.
The cotton mills continue busy, although m
fine and fancy goods new orders are not keeping
up with production. Buyers are still conservative and are not speculating on the future.
For the most part they are unwilling to pay the
higher prices necessitated by increased production costs.
Print cloths and coarse goods are in better
demand, and in the former prices are advancing without any decrease in the demand.
Imports through the port of Boston, for the
month of September show some interesting figures, especially those from. Mexico, Cuba,
Egypt, and South Africa, which are largely in
excess of previous years. Exports during that
month to the United Kingdom and Italy
showed a marked decrease. The increase in
imports was largely in cotton, fibers, sugar,
and wool.
Money is firm, but not more so than it has
been for some time. Cotton brokers are considerable borrowers, as are wool men. Choice

960

FEDEBAL RESERVE BULLETIN.

DECEMBER 1,1917.

disruption of business or diminution of general
activity and prosperity.
Unsatisfactory transportation conditions
continue, and indicate that more rapid adjustment must be made if the strain upon the railroads is to be lessened and serious congestion
avoided, for despite the vigorous efforts which
the carriers are making, industries essential to
war preparations are seriously hampered,
especially the coal-mining industry and through
it practically all manufacturing.
With the exception of numerous complaints
concerning transportation and labor conditions,
the general comment from our correspondents
indicates active and prosperous business. Agricultural implements are selling well at prices
substantially higher than normal. Activity in
machinery manufacture continues unabated,
supported largely by Government orders.
Demand for railway, mill, and mining supplies
is lessening slightly. Building trade materials
are purchased only for limited immediate
requirements. The absolute necessity, however, of increased housing facilities in factory
and shipbuilding centers has led to special
efforts toward construction of this character.
The volume of business in rubber products
continues heavy, although there is hesitancy
among private buyers.
Sustained activity is the report from the
textile and clothing industries. Men's and
women's clothing is selling freely in spite of
sharp advances in prices. The hosiery and
underwear trades are fairly busy, with Government orders an important factor. Manufacturers of cotton textiles are hampered by difficulty
in obtaining raw cotton promptly, and particularly by the problem of labor supply.
Buying demand is excellent, with a tendency
not to question prices, buyers trading for
months ahead. Silks are selling readily and
with no sign of diminishing demand, orders
being placed ahead both for actual wants and
in anticipation of future needs. This fact,
DISTRICT NO. 2—NEW YORK.
taken with the report of active business in furs
Current reports from banks and business and other clothing, appears to indicate that the
interests of the district indicate substantial public is not stinting itself in the matter of
progress in war organization without serious clothing. Further evidence of the absence of

mill paper is selling at 5J per cent for six
months. Money on call ranges from 4J to 5
per cent. Time mone}^ is not overabundant,
with rates normally 5-J to 6 per cent.
The exchanges of the Boston Clearing House
for the week ending November 17, 1917, were
$374,002,763, compared with $277,309,318 for
the corresponding week last year and $240,038,634 for the week ending November 10,
1917.
Building and engineering operations in New
England from January 1 to November 14, 1917,
amounted to S183,694,00Q; as compared with
$183,883,000 for the corresponding period of
1916, the highest previous year recorded.
The receipts of the Boston post office for
October, 1917, show an increase of $40,575.58,
or about 5 per cent more than September, 1916.
For the first 15 days of October, 1917, receipts
were about 38 per cent, or $144,338.85 more
than for the corresponding period of last year.
The Boston & Maine Railroad reports net
operating income, after taxes, for September,
1917, as $1,233,734, compared with $1,386,173
for the corresponding month of 1916. The
New York, New Haven & Hartford Railroad
reports operating income, after taxes, for September, 1917, as $2,287,100, compared with
$2,187,4.35 for the same month last year.
Loans and discounts of the Boston Clearing
House banks on November 17, 1917, amounted
to $501,874,000, as compared with $456,701,000
last month and $455,402,000 on November 18,
1916. Demand deposits on November 17,
1917, amounted to $448,815,000, as compared
with $394,376,000 on October 20, 1917, and
$369,095,000 on November 18, 1916. Time
deposits on November 17, 1917, totaled
$25,560,000, as compared with $29,813,000 on
October 20,1917, and $28,951,000 on November
18, 1916. The amount "due to banks77 on
November 17, 1917, was $153,431,000, as compared with $144,914,000 on October 20, 1917.

DECEMBER 1,1917.

FEDERAL BESEBVE BULLETIN.

rigid economy is furnished by the heavy
volume of sales of jewelry and watches.
As a result of high prices and of overstocking
last year, the volume of business in men's
shoes is not quite up to the usual standard.
A tendency on the part of retailers to order in
smaller quantities and more frequently is
noticed.
Interior decorating and house furnishing
companies are experiencing a recession of
business, with buyers cautious and conservative, and as prices have advanced to the
maximum, which it is thought the public will
pay, further advances in the cost of raw
materials will mean curtailment of business.
The paper manufacturers are having a good
volume of business, though with narrowing
profit, because of increased cost of labor, fuel,
and wood. Pulp wood now costs twice as much
as three years ago, while the cost of labor in
this industry is reported to have increased 50
per cent. There is considerable unsettlement
in the drug and chemical lines, with demand
better than supply.
Conditions in the metals trades are very uneven. Practically all of the copper produced
in this country is now being taken by the
Government and the supply has been much
below the demand. Production of lead, on the
other hand, has outrun consumption. Exports
for last year were 225,000 tons of pig lead and
lead manufactured articles, or approximately
35 per cent of the entire production. The
exports this year have been trifling in amount,
and have been practically offset by imports
from Mexico.
The oil industry reports an upward trend
in prices of lubricating and fuel oils, but no
recent change in the price of gasoline or burning
oils. Burning oil is reported to be a drug in
the market, and fuel oils are bringing prices
as high as those obtained for the refined
product.
Conditions in relation to foodstuffs continue little changed, buying being careful and
for immediate needs only, with prices steady
at levels considered high by the trade. For

961

the past six weeks there has been a serious
shortage of raw and refined sugars in this
market, and although temporary relief has
| been found in the distribution of supplies herej tofore purchased for export to neutral nations
and now used to supply the home market, it
is expected that the available supply of sugar
will be very small until raw sugar from Porto
Rico and Cuba is received in large quantities.
An international sugar committee is arranging
for all purchases of foreign sugars that are to
be used both in this country and England,
France, and other allied countries.
The closing of the second Liberty Loan
showed subscriptions for this district of
$1,550,453,450, while the amount allotted was
$1,163,475,200, of which $949,239,980 has
already been paid in. Of these payments,
which included $59,051,300 realized from cash
sales of bonds, $687,741,746 were made in book
credit, $153,972,000 in Treasury certificates,
and $107,526,234 in cash. The bulk of the
cash thus paid in was at once redeposited in
banks which had qualified as depositaries, and
the entire transaction was handled without any
disturbance in the money market, which
throughout the loan campaign has been very
steady. Rates on call money have ruled close
to 4 per cent throughout the month, with
advances to 5 per cent on November 19, 20,
and 21, while the rate on commercial paper has
held steadily at 5-| to 6 per cent. The resources of the Federal Reserve Bank have
assisted greatly in the financing process. Its
loans and investments on November 19 reached
$456,000,000, their highest point.
DISTRICT NO. 3—PHILADELPHIA.

Manufacturing industries throughout the
district are running at high pressure, restrained
somewhat, of course, by the great difficulties
encountered in securing supplies and sufficient
labor. The great demand for cotton and
leather, in particular, has made it very difficult for manufacturers to get a quantity
sufficient to meet their needs. In the silk
industry complaint is heard of some dullness

962

FEDERAL RESERVE .BULLETIN.

DECEMBER 1,1917.

due to the economies now practiced on account DISTRICT NO. 4—CLEVELAND,
of the war.
The Government activities, thrift camThe shipbuilding industry along the Delapaigns, the Red Cross, and Y. M. C. A. camware River continues to increase and orders
paigns throughout this district have all further
for a very large tonnage are on hand. A
impelled business in this district to make the
number of extensive yards are under connecessary readjustments to a war basis. There
struction to take care of the increasing demand
is a decided tendency on. the part of all business
for shipping.
to serve the country and toward the policy of
Eetail trade continues to be about stationary,
"necessities only/ 7
with minor fluctuations above and below the
Business is not entirely satisfactory. There
general level of business. Increased wages
is a spotty inclination in some localities, and
and the tendency to economize have been
conflicting factors with which business has transportation and labor difficulties have some
detrimental effect in certain lines, but throughhad to contend.
out there is no material change for the worse.
The farmers have been quite successful this
Agriculture.—Harvest yields in corn and
year, though they were very much handicapped
foodstuffs
were not up to estimates, but were
by the lack of farm labor. Crops appear to
good,
except
that a large part of corn was not
be of good size and in excellent condition.
thoroughly
matured
and necessitated feeding
Tobacco growers have been selling a good
of
stock
or
conversion
into some form of manuportion of their crop at exceptionally high
factured
product.
Seasonable
weather during
prices,
the greater part of the month has aided fall
Building operations continue to be curplanting materially.
tailed owing to insufficiency of labor and
In northern Ohio the increased acreage of
materials. There is a pressing demand for
wheat
planted is estimated at from 25 to 50 per
houses in most industrial sections, but there
cent
over
last year.
is no immediate prospect of its being satisfied.
In the burley tobacco regions the lessened
The coal situation shows no improvement
crop
in pounds is more than offset by higher
during the past month, and in fact, the shortage
prices,
and the tendency is to dispose of the
is becoming a greater reality to the majority
crop
promptly.
Indications are that tobacco
of the people. The householders have felt
manufacturers
are
making financial preparathe inadequacy of the supply most of all, and
tions
for
the
handling
of the crop, and the
in Philadelphia it has been found necessary
to initiate a card system in order to equalize prospects show that the growers will.have an
unusually large money return on this year's
the distribution of an inadequate supply.
Opinion throughout the district seems to crop.
bo strongly in favor of granting the increases | Manufacturing.—Evidences of shortage of
in freight rates that the railroads are request- j iron ore begin to become general, and nearly
ing. It is recognized that improved transpor- all the steel mills are declining business other
tation facilities must be had in order that than for Government requirements. Inadequate fuel supply has curtailed operations in
business may be satisfactorily conducted.
The floating of the Liberty Loan in this some of the furnaces, though on the whole the
district was very successfully conducted. Pay- steel industry is engaged in Government conments thereon have been made without any tracts as fully as possible.
The pottery and glass business is very active,
noticeable disturbance of the money market.
Loans have expanded, rates for money have and the general conditions are reported as
become firmer and are quoted from 53^ to 6 healthful. The manufacture and sale of face
brick have shown a marked decrease. The
per cent.

DECEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

963

reports do not indicate any material changes unprecedented quiet tone, with no demand
in other manufacturing lines from last month, for any class of securities, even at greatly
except such as are required by labor and fuel reduced prices. Most investors seem fully
conditions.
imbued with the idea of loaning to the GovernMercantile lines.—The volume of the jobbing ment,
trade seems to be normal, with increased
Clearing figures in the nine principal cities
values. Some of the centers report increase show increases over the corresponding period
in quantity of goods and a large increase in | of last year.
money value sold to country stores. Retail ! The seriousness of our country's participatrade shows a slight recession, but it is about j tion in the war is being felt generally by busiup to the average for the season.
ness in this district, and the outlook is for the
Collections.—Collections are better than pre- tacit acceptance of the situation as it develops
viously, and the percentage of slow paper is from time to time and determination to make
perhaps lower than average, though some the best possible of it.
industries report arrearages incident to delayed deliveries. Postoffi.ee receipts show sub- DISTRICT NO. 5—RICH1VIOND,
Reports in the district continue to accentuate
stantial increases over the corresponding month
the disturbed conditions regarding labor, lack
of last year.
Building operations.—There is a decided of transportation facilities, and abnormal confalling off in all the larger cities except one ditions in many directions. Aside from these
in the number of permits and valuations for notes of uncertainty, the unprecedented high
new buildings. The demand for residence prices for cotton, tobacco, and other products
properties in the centers is still far greater than have kept business generally up to high-water
the supply, but the high cost of materials, mark. There has been an increased production
inadequacy of labor, and the approach of of wheat in the southern portion of the district,,
and general agricultural production has been
winter are deterrent to increased activities.
Transportation.—The general situation is very satisfactory.
not greatly improved, and in some parts of the Trade is in good volume, retailers reporting
district is worse than heretofore, The rail- particular improvement, some an increase of as
roads are evidently bending all energy to much as 20 to 25 per cent, the increase being
relieve congestion, but seem unable to handle principally due, however, to the very high
prices. Wholesalers in shoes, dry goods, nothe situation satisfactorily.
Labor.—The dearth of skilled mechanics tions, and other lines are active, but factory
continues, and common laborers are very deliveries are reported slow in all lines, due parscarce. Women are being freely employed ticularly to shortage in labor and freight faciliby manufacturers, transportation companies, ties. Collections are universally reported good.
and other employers of labor where it is possible Packers are doing somewhat less owing to high
to use them in place of men. There have been prices and difficulty in procuring supplies.
numerous wage advances in industries, and Flour mills are running to full capacity on a
all labor is fully employed. The uneasiness profitable basis.
Building is almost at a standstill, except
of a month ago is not so pronounced.
Money and investments.—The banks, despite Government work, but most of the cantonthe Liberty Loan payment, are able to meet ments in the district are about complete. This
legitimate demands, and money, though firm, will free quite a volume of labor for employis not denied to general trade. Rates through- ment in other lines. Shipbuilding is active and
out this district are steady at about 6 per cent. orders for military supplies continue in large
The investment markets are experiencing an volume.

964

FEDERAL EESEEVE BULLETIN".

Producers of coal emphasize particularly
difficulties in labor and transportation as being
their most serious problems, and say that but
for these the output could be made to take care
of the increased consumption. The railroads
are not able to furnish sufficient equipment to
keep pace with the increased fuel demand, and
are themselves complaining of the inadequate
supply and exceedingly high prices.
Cotton picking is about complete. Cotton
is selling freefy and about as fast as the railroads
can move it. This is the tenor of advices from
interior points, but the ports report a disposition to hold cotton for higher prices and business is restricted by lack of shipping facilities.
Normal freight rates to Liverpool were $1.50 to
$1.75 per bale, but are now $45 to $50 per bale.
The clothing trade seems to be a little slow in
general lines, attributable to mild weather and
the large number of men who have gone into
different branches of the Government service.
Manufacturers in all lines are running to
capacity. The consumption of cotton is large
even at present high prices, as products are still
yielding excellent profits. Munition contracts
in this district have been'about completed and
our largest locomotive plant is now running full
time on regular work for foreign shipment.
Wagons and agricultural implements are in
strong demand, but labor is scarce and wages
have advanced 40 to 50 per cent. The volume
of business is large, owing to the high prices,
but the number of vehicles and implements
shows a decrease. Implement dealers are urging jobbers to lay in supplies now and avoid
congestion and embargoes which are likely to be
encountered during the spring.
The leather market is strong, buying active at
full prices, collections good, and trade limited
only by the obtainable volume of raw materials.
Prices paid farmers for hides are the highest
for many years.
The peanut crop is only about two-thirds of
an average. Ordinarily prices range from 3 to
4 cents per pound, but are now 8 and 9 cents
per pound. The demand for peanut butter
and other food products has stimulated the
demand, which has resulted in these high prices.

DECEMBER 1,1917.

Tobacco has been selling freely and some
high grades bring unheard-of prices; in some
instances as much as $1 per pound, the average
price being 30 cents to 35 cents.
Money is readily obtainable, but the demand
is good, rates ranging from 5J to 6 per cent.
Farmers7 paper is being paid up more closely
than has ever been known and considerable
payments are being made on mortgages. Land
sales are unusually active at advancing prices.
Deposits in banks are the highest ever known,
but the demand for financing in every line has
offered ample employment for them. Clearings show an increase of 35 per cent and postoffice receipts also indicate a considerable increase. The latter is attributable to a considerable extent to the location of cantonments in
the district and the increased rates of postage.
Crop preparations are naturally limited in
extent at this season of the year, but fertilizer
manufacturers anticipate an active demand for
their goods at remunerative prices and are urging early shipments for the coming season.
The prices realized from crops in this district
have increased its wealth and resources to a
very appreciable extent, and trade activities
are reflected in the increased volume of business being handled by the Federal Reserve
Bank of Richmond.
The response of the people and the banks in
this district to the second Liberty Loan has
been most gratifying. The minimum apportionment to the district of $120,000,000 was
about 8 per cent of the banking resources and
the maximum apportionment of $200,000,000,
over 13 per cent of the banking resources.
The subscriptions reached the enormous total
of more than $201,000,000, the New York district and this district being the only two in
which the subscriptions exceeded the maximum
apportionment.
DISTRICT NO. 6—ATLANTA.

Business continues good. The Sixth Federal Reserve district subscribed to approximately $90,000,000 of the second Liberty Loan,
and while $40,000,000 was paid in on bond
subscriptions on November 15, the condition
of the banks of the district proved sufficiently

DECEMBER 1,1917.

FEDERAL BESBBVE BULLETIN.

strong to enable them to finance all payments
without creating any financial strain. It is
not expected that the next installment payment due December 15 will have any material
effect on business conditions generally, nor
interfere with the ability of financial institutions to care for the legitimate money or credit
requirements of the district. Bank clearings
continue to increase. There has been a noticeable stiffening of money rates during the
past month.
Wholesale and retail houses report an exceptionally large volume of business during November, with collections better and more satisfactory than at any time within the past
20 years. One wholesale house reports a collection of 70 per cent of their entire receivables due and not due on their books October 1.
Advance orders for spring business are in excess of last year.
There is considerable congestion in railroad
freight and passenger service and complaint is
made of delay in handling the mails. Difficulty is experienced in obtaining merchandise,
it being nothing unusual for express from
New York City to require 7 to 10 days in
transit. Railroad, express and postoffice receipts continue to increase. Industrial plants
are operating at high speed, though labor conditions are not so bright as in previous months.
Withdrawals for Army service are beginning to
have an effect, in addition to the inclination of
a certain element of labor "laying off" on
account of inability to withstand the influence
of a prosperous wage.
Cotton oil mills are largely employed in
crushing peanuts. On account of shortage of
cotton in certain sections and exorbitant
prices for raw products, and with an overabundant supply of peanuts, these mills find it
more profitable to crush peanuts than cotton
seed. The industry is proving profitable to the
peanut producer.
High prices brought about a considerable
marketing of cotton, and with plenty of freight
room it would not be long before the crop
would be in the hands of the spinners.

965

In the dark tobacco fields a large crop has
been housed and buyers are offering as high as
$21 per hundred, the low mark being $15.
These prices are beyond expectation, the average offered being about $18 per round.
The Florida citrus crop is possibly 40 per
cent short. Prices and demands, however, are
good. Splendid weather prevailed in Tennessee for planting winter crops, with something
more than an average acreage sown to wheat.
In Georgia, Alabama, and Mississippi the
weather has been unfavorable and very little
grain has been put in, though preparations
are under way for a good planting between
now and Christmas. For the first time in
many years winter grains will be planted in
the northerly section of Florida. Louisiana
has experienced an unprecedented drought, in
fact, some parts of Louisiana are over 30 inches
short of normal rainfall.
This has seriously
affected the cane crop, the cut being not over
60 per cent of a crop. Though the fertilizer
shipping season has not opened, indications
point to an increased use of approximately 15
per cent, with prices probably to range 33£ per
cent advance over previous year.
The people are seriously taking up the work
of food conservation and pledge cards are willingly signed by all classes of citizens. The
Tuesday "meatless days" and Wednesday
"wheatless days" prevail largely throughout
the district, especially in restaurants and
hotels. The general trend is to a more serious
view of the war and a clearer realization of the
necessity of a more rigid economy. In this
connection the sale of Liberty bonds has had a
strikingly good effect with wage earners and
salaried people who are the more numerous
subscribers to bonds. Objection to conscription has practically ceased, as evidenced by a
greater solidarity for winning the war.
DISTRICT NO, 7—CHICAGO.

Throughout the seventh Federal Reserve
district business involving necessities is active
with Government orders playing an important
part and labor in strong demand at high wages.

986

FEDEEAL EESEEVE BULLETIN.

Liberty Loan withdrawals have caused some
disturbance of banking equilibrium, but things
are adjusting themselves, and the promptness
of this adjustment in a given locality will v a ^
with the nature of its industries. Borrowing
in the market has been restricted practically
to short-term maturities owing to the present
abnormal market depression. During the Liberty Loan flotation investment houses generally dropped their own business for that of
the Government; however, the anticipated rekindling of interest in securities did not
develop, and no material improvement in this
direction is now in sight.
Winter wheat looks good in some localities,
though wheat, as well as rye, was sown late
in other sections and it is too early to forecast
accurately. Soft corn is much in evidence, but
no particular hardship is reported, as this is
being fed live stock, which is bringing high
prices. The bean yield is better than anticipated and potatoes average well, though frosts
have had some effect. Throughout the district increased acreage of winter wheat and
rye is reported. Monej^ rates are expected to
remain hard for some time to come.
This is the slow season for agricultural
implement concerns, and the usual condition is
aggravated by the bad weather in October
making a late season. The labor shortage and
scarcity of materials are noticeable.
The volume of pleasure automobile business
is causing manufacturers some concern, but it is
suggested that by directing their facilities into
other channels, such as truck and aeroplane
engine manufacture, hardship in this direction
will be minimized.
Building and construction are far below
normal, due to governmental restriction of the
use of certain materials. Scarcity of labor
and of all materials are equal factors.
The car situation is still to be considered in
the coal industry and demand exceeds the
available supply. Production in Illinois has
shown some improvement in the last two weeks.
Conditions in the distilling line are far below
normal, with no new activity promising.

DECEMBER 1,1917.

In dry goods advance sales are satisfactory
in dollars and cents volume. A tendency is
noted on the part of retailers to buy; more
conservatively and the demand for so-called
luxuries is expected to decrease inversely with
the increase in demand for Government
necessities. There is a scarcity of goods.
Collections are good.
Furniture manufacturers report business at
about the same level as last month, but they are
somewhat confused as to the future in the light
of rumors regarding possible Government restriction of loading of lumber for furniture factories. The car shortage is causing some
uneasiness. Collections are fairly satisfactory.
Scarcity of grain at terminals is mentioned as
a very unfavorable circumstance and contributing causes to the shortage are given as the
attitude of farmers who are delaying the usual
movement, also the shortage of carrying
equipment. Corn prices are working higher,
due to the unanticipated poor quality. Notwithstanding the high prices for oats, farmers
are said to be holding out for still greater
returns, and this is keeping receipts at terminals
light.
Difficulty in securing sugar and flour is
mentioned in the grocery line and the inability
to secure these staples effected a drop in sales for
some wholesalers during the last half of October. Retailers are uncertain as to what stand
to take as to increasing their stocks in the face
of price fixing and the wave of economy among
consumers. The volume seems good and collections are fair to good.
The hardware line appears to be in satisfactory position, with money value of sales
generally large and collections good.
The jewelry business suffered somewhat
during October and this is attributed to the
Liberty Loan campaign. Its volume decreased
from normal as established in the past year but
expectations are for a satisfactory resumption
of sales.
The leather industry is absorbed in Army and
Navy contracts and can afford to overlook a
falling off in demand from civilians. Tanners

DECEMBER 1,

1917.

FEDERAL RESERVE BULLETIN.

are busy, jobbers are quiet, and retailers report
satisfactory business. Collections are good and
labor for the present seems satisfied.
Receipts of live stock are in good volume and
this is expected to be maintained. The soft
corn has prompted feeding to an unusual degree
and prices are high.
Lumber distribution is handicapped by
shortage of cars. Orders, however, have been
well maintained for this time of year and prices
hold up well. Retailers are rather pessimistic,
due to the continued slump in building. Collections are not as good as they might be.
Mail-order houses report an increase for this
month over the same period last year.
Piano manufacturers generally report a
good volume of business with a scarcity of
skilled labor, materials, and shipping facilities.
Collections remain good.
Shipbuilders arc still working at capacity,
with labor shortage an outstanding feature.
Steel is also at capacity. The balance of production not required by the Government is
finding a ready market. Collections arc good.
A brisk demand from domestic sources is looked
for to take care of next year's business now that
the price question has been settled.
Raw wool is at top prices and difficult to procure in desirable quality. Some relief is expected from South America and Australia, and
the increased use of cotton mixed goods as a
substitute is suggested. The Government is
practically monopolizing the mills.
Clearings in Chicago for the first 21 days of
November were $1,560,000,000, being $170,000,000 more than for the corresponding 21
days in November, 1916. Clearings reported
by 20 cities in the district outside of Chicago
amounted to $297,000,000 for the first 15 days
of November, 1917, as compared with $267,000,000 for the first 15 days of November, 1916.
Deposits in the 12 central reserve city member
banks in Chicago were $837,000,000 at the close
of business November 20, 1917, and loans W3re
$594,000,000. Deposits show a decrease of
approximately $1,000,000 over last month and
loans an increase of approximately $24,000,000.

967

DISTRICT NO. 8—ST. LOUIS.

General business in this district continues
active. Especially is this true of those industries which are furnishing supplies to the Government. The requirements of the Government have had a tendency to divert the production of nan essentials to those things which
are needed for the prosecution of the war, and
in many instances orders of civilians and private enterprises are being turned aside to take
care of Government needs. The restraints
imposed by the Government have had a deterrent effect on some industries, and the scarcity
of supplies has retarded other lines, but on the
whole the stream of ordinary business is running freely and the present outlook is favorable.
Manufacturers of shoes and ready-to-wear
garments are especially busy, and wholesale
dry goods companies, hardware jobbers, drug
dealers, and retail stores all seem to be transacting a large volume of business. There has
been a good demand for all kinds of seasonable
merchandise. A number of country merchants are buying for the future, apparently
feeling that the prices will not be lower.
The prices on commodities continue high,
but are made more bearable in the country
districts by the unusually high prices the farmer
is receiving for his products, and in the city by
the full employment of labor at high wages.
Government reports in dicate that on November 1
the price index of all crops was 46.1 per cent
higher than a year ago and 104.3 per cent higher
than the average of the preceding five years.
Due to the prevailing high prices and the
campaigns by Federal authorities, there seems
to be a growing tendency on the part of consumers to economize and be more careful in
their purchasing. This is shown, by the more
general centering of demands in the staple
classes of merchandise. Signatures to the
food pledges have also been obtained freely,
and many restaurants as well as homes are
now observing meatless and wheatless days.
Collections throughout the district are reported good, except in a few sections where the
crop movement has been somewhat late.

963

FEDERAL BESERVE BULLETIN.

DECEMBER 1,1917.

The production of all crops this year in the j activities during October were considerably
State's within this district is estimated to be ; below those for the corresponding month last
TTA per cent above the average for several \ year. On account of the high prices of mateyears past. This year's corn crop in the States ; rials and the scarcity of labor, there is very little
within this district was estimated on November building going on, outside of extending factories
1 to be 389,339,000 bushels more than that of ; to take care of war orders and necessary places
1916. The potato crop also greatly exceeds1 of abode.
the production of last year. The winter wheat : The chief financial activities of the month
is now all planted, the acreage being consider- ; have been those involving the flotation of the
ably in excess of that of 1916. Rain is needed second Liberty loan. The subscriptions to
in some quarters.
'• this loan were closed on November 1, with the
On account of the cotton in the southern ; total subscriptions in this district aggregating
portion of the district having been damaged by ; $184,280,750, or $64,280,750 more than the
killing frosts early in October, the crop is ! minimum assigned.
considerably shorter than expected. Prices ' There has not been much change in bank
are high, but the cotton is not moving as : rates since the last report. The rate to cusrapidly as it usually does in a normal season. i tomers in the larger centers ranges from 5J
This is doubtless due partly to the holding of j to 6 per cent, with rates in the outlying discotton for higher prices and partly to the ! tricts slightly higher.
inability of exporters to get ocean tonnage. ! Commercial paper of the best names is being
The railroads are operating to capacity, but i offered at from 5 | to 5f per cent. There
there is still a considerable shortage of freight is a fairly strong demand from country banks
cars, which is causing delays in deliveries and for this time of the year, but the large city
handicapping ordinary business.
\ banks, as a rule, are not in the market for
Through intercession by the Government, j commercial paper.
the trouble between the coal miners and the ;
operators in Illinois has been settled, and the , DISTRICT NO. 9.—MINNEAPOLIS.
coal situation is improving. However, the i After a long period of very favorable fall
demand still exceeds the supply, due in great ! weather, the northwestern grain territory emmeasure to the inability of the mines to get ' braced in the Ninth Federal Reserve district
cars and abnormal consumption.
; is ready for winter. A large amount of fall
Labor continues scarce in this district. work has been accomplished. The farmers
Trained men in the different lines are especially j have been busy thxoughlut the month preparin demand. Unskilled laborers also find ready : ing their fields for spring planting. In the
employment. In many industries it has been , western part of the district, where the 1917
necessary to obtain women to do the work j crop was short, there has been unusual activity,
formerly performed by men.
and line elevator managers report that the
During the past month there has been a outlook is for an increased acreage of wheat and
decided increase over the previous month in other small grains next year. In western
the receipt and sales of cattle, horses, and mules North Dakota, where the serious losses on the
in the St. Louis market, with decreases in the 1917 crop have created a serious problem,
receipts and sales of hogs and sheep.
conferences are being called, under the lead of
Postal receipts for October in St. Louis, the State agricultural college, to prepare in
Louisville, and Little Rock show substantial advance to meet the shortage of seed, and to
increases over the same month last year, while consider plans of financing for farmers who
the receipts in Memphis show a slight decrease. need assistance.
Reports from Little Rock, Louisville, Mem- j The receipts of wheat at Minneapolis and
phis, and St. Louis indicate that building j Duluth terminals are considerably lighter than

DECEMBER 1,1917.

FEDEBAL RESERVE BULLETIN.

a year ago. To the middle of the month, the
total receipts were 7,000,000 bushels short as
compared with the same period a year ago, and
elevator stocks amounted to 2,607,000 bushels
as compared with 18,877,000 bushels a year
ago. The output of flour by the mills of the
district has been curtailed by the difficulty in
securing cars, and railroads are making every
effort to induce all flour shippers to load every
car received to its fullest capacity. Mills have
been warned that unless this is done there is
danger that some of them will have to shut
down for lack of cars.
In Minnesota, the public safety commission
has introduced war bread, which is being,manufactured under its direction, and distributed
from licensed stores at 6-J- cents for a full pound
loaf. A daily distribution of 9,000 pounds in
St. Paul and Minneapolis has already been
arranged for, and the amount will be increased
as additional stores are licensed. War bread is
not as rich and nutritious as bread ordinarily
sold, but is obtainable at a substantial reduction of price, and is in strong demand.
Business conditions over the district are
favorable. Retail trade at the larger centers
shows sume evidences of a disposition on the
part of buyers to purchase conservatively, and
to put some measure of control on the buying
of luxuries.
Retail trade at country points does not seem
to be much affected, and is in good volume.
The outlook is generally favorable.
Construction is in fair volume, but consists
chiefly of necessary business structures and
similar work that can not be deferred. A fair
amount of residence building is in progress,
although much of that class of work has been
deferred on account of the high cost of labor
and material. M.oney rates are very firm and
the demand at both city and country banks is
active. Industrial conditions are favorable.
The larger concerns have ample orders ahead
and labor is fully employed.

969

increase in bushels of 50 per cent over the 1916
crop. Frosts did considerable damage to the
corn, the extent of which can not yet be judged
accurately. The soft corn has created an
unusual condition in the way of a wide variation in prices bearing little relation to the
intrinsic value of the various grades. With
prices ranging from 25 cents to $2 a bushel, and
no accurate way of judging the amount of
moisture in the new corn, local dealers are
checking their buying rather than continue
under such, hazards.
While the wheat acreage asked for may not
have been readied, the amount planted is in
excess of that for last year. Missouri reports
an increased acreage over 1916 of 37 per cent.
Oklahoma has planted 2 per cent more. Reliable reports from Kansas and Nebraska are not
available, but indications are for slight increases,
probably about 5 percent, when the seeding is
finished. Complaints have been made that
dry weather east of the Rocky Mountains
injured some of the early planting, but rains
about the middle of November have restored
much of the damage.
At the local market for October, wheat
receipts were only one-fourth and shipments
one-eighth those for a year ago. Corn receipts
were 40 per cent more and shipments 43 per
cent less for the same two periods. At the
end of the month the visible supply of wheat
was only one-twentieth that for a year ago and
of corn four-fifths. The food administration
has been able to improve the conditions with
the mills and keep them going at almost full
capacity.
Live stock.—In this district for the firs I: 10
months of the year cattle receipts at the markets reached the total of five and a half millions. This is a fourth more than were marketed for the period last year, and the movement continues strong, owing principally to the
dry weather and short pasturage in the belteast of the Itocky Mountains, which forces
cattle to market in thin condition. Receipts
DISTRICT NO. 10—KANSAS CITY.
for October were 37 per cent over the previous
Agriculture.—The wheat crop of this year for month and 18 per cent over October a year
the district was only two-thirds that for last ago. The poorest grades, used for canning
year, but late estimates for corn indicate an purposes, are bringing about the same price as

970

FEDERAL RESERVE BULLETIN,

a year ago, but all other classes are selling at
great deal higher, beef cattle bringing from 30
to 40 per cent more* The movement of stock
cattle for feeding purposes continues strong,
and should remain so on account of the soft
corn to be utilized in feeding on the farms.
Some difficulty is being had on account of
shortage of stock cars for shipping feeders to
the north and east.
For the 10-month period hog receipts were
more than 7,000,000, being a decrease of 11 per
cent from the figures for last year. October
marketings, while 28 per cent less than for the
same month a year ago, showed an increase of
35 per cent over last September. Prices are
about 80 per cent in advance of those for last
year. Since the food commission established
a minimum price, the demand for stock hogs
has been greatly stimulated at prices almost as
high as for fat hogs.
The movement of sheep for October increased
17 per cent over the previous month and 12 per
cent over October, 1916.
Mining.—Production of all ores for the Missouri-Kansas-Oklahoma lead and zinc district
during the 10 months of the year, compared
with the same period a year ago, increased
100,000 tons, with an increased value of
$2,000,000. In spite of the lower average
price, stocks are practically three times as great,
but conditions promise no further increase in
the immediate future. Total shipments for the
month ending November 11 decreased 2 per
cent over the month a year ago. Prices for
zinc were slightly less than for September. Lead
prices averaged one-eighth lower, with an extreme drop of one-third.
Under war stimulus, Nebraska will this year
produce $2,500,000 worth of potash, which is
eight times the value of her entire mineral output seven years ago. Interest is being aroused
also in the potash beds of the Rocky Mountain
States, and official surveys of the beds are being
arranged for.
The coal situation has been serious. From
every part of the district has come the call for
fuel. Stocks are low, but owing to the moder-

DECEMBER 1,1917.

ate weather and the assistance of the Government authorities, actual want and suffering
have been avoided. The Kansas-Missouri output has been lessened and threatened entirely
by an incipient strike. Colorado will this year
produce 13,000,000 tons, nearly a third more
than last year, but will not reach the maximum
of 2,000,000 tons more, because of a scarcity of
labor and cars, which has curtailed the output
at a third of the mines. Increased development of the mines in Wyoming is being looked
to as a partial solution, and authorities are attempting to provide transportation facilities
accordingly.
Oil.—In the Mid-Continent field operators
complain that notwithstanding the high prices
for crude oil, full development has been limited
by the cost of labor and supplies and the difficulty in getting both. Yet, the number of
wells completed for October is nearly 40 per
cent greater than for September, with a slight
increase in total production. Piping from old
wells in Eastern States is being shipped in and
sold at good prices. The larger companies in
Wyoming fields have secured supplies with the
intention of drilling during the winter, there
being now in that State about 200 wells partly
completed.
The problem of waste gas at the wells in
Oklahoma is being handled by State authorities,
with the result of an estimated saving aggregating $500,000 a year.
Lumber and construction.—The lumber trade
is quiet. There is little local home building, as
many of those who would build have entered
the Army. High prices have eliminated the
speculator, while the question of labor acts as a
check in the larger cities. Some of the smaller
cities are notable exceptions. Owing to the
greatly increased production of oil near there,
Wichita has had a remarkable increase in building. During October Wichita, with an increase
of 661 per cent over October a year ago, is first
and Lincoln, with an increase of 517 per cent, is
second for all the cities reporting in the entire
country. The country trade is awakening, but
is not yet really active, for farmers are not yet

DECEMBER 1,1917.

.FEDERAL RESERVE BULLETIN.

used to paying the higher prices, and are busy
harvesting the corn.
Labor.—The strike record shows an improvement over the past few months and the middle
of November found no strike of any consequence existing or contemplated in the district. There were ten or twelve small strikes
of short duration. During the entire month
the miners of the Missouri-Kansas-Oklahoma
coal district threatened to strike and the situation was tense. Some of the men were out
for short periods, but in the middle of November a conference of all parties directly interested
was called and the miners yielded to the wishes
of the Government administrators.
From nearly every locality and industry
comes the call for laborers. The lack of farm
labor is resulting in the increased use of machinery for every purpose to which it can be
adapted. The cessation of Government building will probably be offset by the increased
demands of the National Army this winter, so
that immediate relief for the situation is not at
present in sight.
Mercantile.—Trade conditions are unusually
active; during the past six weeks many houses
have doubled their sales for the same period
last year. Orders for holiday goods are very
heavy. Groceries, drugs, and provisions are in
active demand at increasing prices. Garment
factories of the West are working to capacity,
there being an undersupply of men's garments
and an oversupply of women's ready-to-wear
clothing. There is a continued decline in the
sale of pleasure automobiles, but this is more
than made up by the increased demand for
auto trucks and tractors, while the auto accessory and tire trade continues to increase.
Financial.—The unusual business activity of
the month has been reflected in the bank clearings. Clearings for 14 cities in the district for
October passed the billion mark, with an increase of 30 per cent over the same period last
year and were more than twice the amount
two years ago.
Money is in marked demand, rates have
made a slight advance since last report, and

971

credit terms are growing shorter in all lines of
business, with both wholesalers and retailers.
DISTRICT NO. II—DALLAS.

Were it not for the unsatisfactory reports
from the drought-stricken areas of the district
the business situation could be reported as
generally favorable, with normal activities for
the season. The unprecedented period of dry
weather has, however, curtailed activities in
the South, Southwest, and West, and our correspondents there are discouraged over the outlook. Some rain has fallen in portions of these
sections during the latter part of the month
and has been very beneficial, It was hardly
sufficient to break the drought, and conditions
will not become normal until after heavy rains.
Agricultural conditions show little change
from 30 days ago. The bulk of the cotton crop
has been marketed, and there is no very large
amount left in farmers7 hands, though reports
indicate scattering lots held by merchants and
others in the district. Lack of export facilities
and shortage of cars at compress points have
retarded the movement. Exporters are finding it difficult to make shipments.
The outlook for the wheat crop in this district
is not encouraging. In some sections it has
been too dry to prepare the ground for wheat,
and farmers were afraid of losing the seed if the
grain is sown under present conditions. The
wheat already planted has failed to germinate,
on account of the dry weather, and unless rain
falls soon the areas planted in wheat will be
plowed up and put in other crops. The rice crop
has brought excellent returns and reports from
the producing sections are that growers have
sold all their crop and are unusually prosperous.
With peanuts bringing from $1.75 to $1.80 per
bushel in northeast Texas, and prices for other
commodities in proportion, conditions in that
section are good and farmers in excellent shape,
merchants are enjoying a good trade and collections are excellent. North and northeast
Texas may be said to be the one bright spot in
this district from an agricultural standpoint.
A good crop of beans has been produced in
the western portion of the district, though

972

FEDERAL RESERVE BULLETIN.

growers are somewhat disturbed by the Government price fixing, which gives them less
than what they expected for the output. The
alfalfa crop in that section is also excellent, and
the prices received are very high.
As one correspondent reports, "cattlemen
are strictly up against it on account of the
drouth." Those who have pear flats in their
pastures are feeding cottonseed cake and burnt
pears; others arc arranging to export to Mexico,
where excellent range conditions are reported.
A recent joint conference of representatives of
the Texas Cattle Raisers7 Association and Texas
Cotton Seed Crushers7 Association was held
looking toward relief for cattlemen in the Southwest and measures taken to provide feed for the
cattle in those sections. As a result of the conference a resolution was adopted fixing a maximum price of $50 per ton for loose cracked
cake, and $53.50 per ton for sacked cake, on a
basis of 43 per cent protein—this price on the
basis of f. o. b. mills. Grass is reported as good
in most parts of New Mexico and Arizona and
the cattlemen in those sections are in better
condition than farther south. On account of
the car shortage sheep and cattle men have been
unable to make shipments in the Albuquerque
section. As in other parts of the range country, rain is badly needed there and stock will
suffer unless water holes fill up before cold
weather sets in. It has been necessary for
stockmen to buy a largo amount of cottonseed
cake with which to feed during the winter
months.
Since the close of the second Liberty Loan
campaign banks of the district have boon occupied in making the second installment payment and closing subscriptions on the issue.
The payment of November 15 was made without undue confusion in the financial situation,
the depositary plan being used to a large extent
and payments made by credit in Government
account. There is a good demand for money,
and offerings with this bank continue heavy.
No advance is noted in interest rates and they
remain steady. Bank deposits are at good figures and continue to increase. Collections

DECEMBER 1,1917.

show some improvement with the marketing
of cotton and farm products. There has been
in some sections foolish rumors that the Government intended to conscript or seize all
moneys on deposit in the banks. Effective
steps were at once taken to meet and refute
these rumors and they have practically subsided without doing any substantial injury.
The prompt and conclusive answer to these
absurd rumors given by Secretary McAdoo,
published in the daily press, did much to compose the situation. It is a matter of congratulation that the banks over the district, both
State and National, are in such good condition,
and that their management, with a very few
exceptions, have met the duty of the hour so
nobly in their patriotic effort to make tho second Liberty Loan a success. Clearings show a
large increase for October over October 1916, or
36 per cent. With the close of the Liberty
bond campaign some activity is noted in bonds,
and brokers are receiving an increased number
of inquiries. In a statement issued by the
commissioner of banking of Texas under date
of October 27, attention was called to the unusually prosperous condition of tho State banks
on the call of September 11, 1917; the State
banks reflecting a stronger condition than has
ever been shown by a previous statement, which
indicates the prosperity existing in most sections of Texas at this season.
Lumber manufacturers report that the car
situation has become much worse in the last
30 days, so much so that at the present time
it is almost impossible to get cars, even to load
Government ship material; this even in the
face of the appeal of the Government Shipping
Board to the mills to get out their material.
The demand for retail yard trade is very light,
but prices are steadier and show an upward
tendency. Were it not for the car situation
conditions in the trade would be satisfactory.
There is some evidence of restoration of
normal building operations in the past month,
and with the completion of cantonment work
and aviation contracts, thus releasing workmen for ordinary construction, it is expected

I.)i-:cj:Mi;Ei: 1. 1 9 1 7 .

FEDERAL RESERVE BULLETIN.

973

the industry will be more active during the DISTRICT NO. 12—SAN FRANCISCO.
winter, Permits issued at the principal cities—
The President of the United States has
Austin, Beaumont, Dallas, El Paso, Fort Worth, appealed to all eligible State banks and trust
Galveston, Houston, San Antonio, Shreveport, companies to become members of the Federal
and Waco—in October, and the valuation of Reserve system in order to contribute their
the same, were larger than in September, but proportion toward fortifying the Nation to
show a decrease over October, 1916, the figures meet present and future financial strains growing
being as follows: October, 1916, $1,671,469; out of war requirements. He urges this as a
October, 1917, $989,034; decrease, $682,435, or patriotic duty, citing the solemn obligation
41 per cent.
to the country resting upon every bank officer
Wholesale and retail trade continues in good and bank director, and with deep meaning
volume, and sales are in excess of last year. says: "The extent to which our country can
Mail-order houses are enjoying an unusually withstand the financial strains for which we
busy season, with collections in keeping: es- must be prepared will depend very largely
pecially is this true at cantonment points.
upon the strength and staying power of the
All industries of the district are active and Federal "Reserve Banks."
running on full time.
In the twelfth Federal Reserve District there
Skilled labor in all its brandies is well em- are 1,299 State banks and trust companies,
ployed, and in various quarters there is con- having $148,000,000 capital and surplus and
siderable unfilled demand for skilled workers in $1,160,000,000 deposits. Those having capital
certain lines. This condition, however, is not and surplus such that they are eligible for
expected to continue, as the work on canton- membership are as follows, according to the
ments, aviation camps, and similar work is now annual reports of last year, when deposits were
being completed, and this means that several probably 25 per cent less than now:
thousand skilled workers, such as carpenters,
Capital
NumTotal
painters, plumbers, and electricians, will be out
State.
and
ber
deposits.
surplus.
eligible.
of employment.
The coal mines of Oklahoma are working to •\ri/ona
20 82,743,000 810.583,000
341 35.432,000 266' 008,000
capacity, and the car situation at the present California
20.782,000
Idaho
53
3'220,000
13; 342,000
18
Nevada
2,103,000
time is better than usual.
30,581,000
75
9,230,000
Oregon
30,298,000
00
Utah
6,789,000
Drilling is unusually active in the oil fields Washington
45,478,000
115 12,140,000
around Iowa Park, and new pipe lines are being
Total
742 78,512,000 423,072,000
constructed in that section. Local refineries
National banks, being under Federal juristhere are working to capacity. Drilling pipe
diction,
were all constituted members from the
is hard to obtain, and operations are hampered
outset.
In this district there are 534 national
on account of the water scarcity. A new field
banks,
having
$931,000,000 deposits. (Comphas recently been developed near Coleman.
trollers
summary
Sept. 11, 1917. Deposits by
Two wells have already been brought in there
summary
June
30,
1916, were $696,000,000.)
and pipe lines have been contracted for and
Thus
if
each
eligible
State bank and trust
are now being laid to pipe the oil a distance of
company,
whether
large
or small, should
several miles.
respond
to
the
President's
appeal,
the strength
To summarize business conditions in this disof
the
Federal
Reserve
Bank
of
San
Francisco
trict they may be said to be generally satiswould
be
increased
approximately
50
per cent
factory, and optimism prevails as to the outboth
in
capital
and
reserve
deposits,
and its
look. It is hoped that good rains will fall over
ability
to
render
aid
would
be
increased
in
the drouth-stricken area soon, and this should
like
proportion.
be a stimulus to all lines of trade.

974

FEDEBAJL EBBBEVB BULLETIN.

, 1917.

State banks and trust companies in this book accounts are correspondingly reduced.
district which have become members or have An acceptance carrying the responsibility of
both seller and buyer and growing out of a
made application are as follows:
sale of goods is a more desirable and more
surely liquid investment than one-name paper
Capital
Deposits.
! Number.;
and
State.
not necessarily growing out of sales of goods.
surplus.
Labor conditions in this district are still
0 I
Arizona
unsettled,
but as this is written there are no
California...
0:
Idaho
382,500
8839,000 important strikes.
Those in the copper disNevada
Si
Oregon
2 :i 2,110,000 17,515,000 tricts of Arizona have been settled and normal
Utah
0
9 3,758,000
Washington.
29,298,000 output restored.
Shipbuilders both about San
Total..
13 ! 5,950,500 | 47,052,000 Francisco and in the Northwest have returned
to work, although dissatisfied, it is reported,
Of eligible State banks and trust companies, with the increase of wages granted averaging
those holding two-thirds of the total deposits 35 per cent.
are in California, from which no application
The United States Mediation Board, Secrehas yet been received.
tary of Labor W. B. Wilson, chairman, has reThe State superintendents of banks in Idaho cently had many sessions here with various
and Oregon have circularized banks under their labor organizations in the endeavor to reach
jurisdiction, urging them to join the Federal such adjustments as will result in continuous
Reserve System. Those of other States, includ- operation of industries.
ing California, have expressed themselves as
In the Northwest reduced lumber production
favoring prompt response to the President's for the remainder of the year is anticipated.
appeal.
Mining products in Arizona will exceed those
Banks, whether small or large, member or of last year, copper having an estimated value
nonmember, may further aid the desired mobil- of $200,000,000; other metals, $60,000,000.
ization of gold by sorting out gold certificates Cotton acreage has risen to 38,850, with a
and shipping them to the Federal Reserve product valued at $6,000,000.
Bank (in amounts of $1,000 or multiples).
Car shortage is becoming serious, the only
The Federal Reserve Bank will pay express immediate relief lying in better cooperation by
charges on such shipments and, if desired, will shippers in heavy loading and quick discharge.
send Federal Reserve notes, charges prepaid,
The wheat crop in Washington will total
in return; or will credit upon its books or about 27,000,000 bushels, against 45,000,000
remit to other centers for credit. Those able last year. Fall planting is being hampered by
to ship gold coin should also write to the Fed- lack of precipitation.
eral Reserve Bank.
California citrus shipments for the year endThe increasing use of trade acceptances is ing November 1, 1917, surpassed all records,
making for sounder bank paper. Grain dealers aggregating 54,361 cars, the previous high recand millers of the Northwest adopted the use ord having been 48,548 cars in 1913-14. The
of trade acceptances on August 1. At a crop of navel oranges for the current season,
recent meeting at Portland of the West Coast curtailed by excessive heat last summer, is
Lumbermen's Association the use of trade estimated at 25 per cent; valencias, at 80 per
acceptances was embodied in the new terms cent; and lemons, at 71 per cent of normal.
of sale. Beginning November 1, drafts will
The raisin crop will exceed that of last year
be sent out twice a month for acceptance, by 35,000 tons.
no matter how small the account. To the
During October the shipments of petroleum
extent that trade acceptances are used, open from California fields exceeded production by

DECEMBER 1,1917.

FEDERAL HESERVE BULLETIN.

860,892 barrels, reducing stored stocks, on
October 31 to 33,795,115 barrels, being the lowest figure recorded since February, 1911.
Fifty-six new wells were completed during the
month, }delding an initial daily production of
14,860 barrels.
Building permits in 20 principal cities declined from $7,533,000 in October, 1916, to
$4,684,000 in October, 1917. Clearings show
an increase of 35.6 per cent, Ogden leading with
60.9 per cent increase and Tacoma second,
with 55.7 per cent.

975

The situation throughout the district is one
of great industrial and agricultural activity and
large volume of trade. The splendid response
| of this district in buying $290,000,000 of the
! bonds of the second liberty Loan evidences a
j widespread, fervent, and patriotic desire to
I serve the Nation, but there is as yet little evi! dence of an effective realization of the necessity of service by curtailing individual consumption of the products of labor in order
| that the Nation may consume instead for war
I purposes.

976

FEDERAL RESERVE BULLETIN.

DECEMBER 1,1917.

DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS.
During the month of October discount operations of the Federal Reserve Banks totaled
$2,681,165,854, compared with $548,164,104
for the month before, and $750,270,739 for
June of the present year, when Government
financing in connection with the first Liberty
Loan may be said for the first time to have
called into full play the discount facilities of
the Now York Federal Reserve Bank. Members obtained accommodation just as before,
in connection with the first Government loan,
primarily through the discount of collateral
notes of the shortest maturities secured by
Liberty bonds and certificates of indebtedness,
and to a smaller extent through the discount
of such notes secured by commercial paper.
Of the total discounts for the month,
$2,262,474,850, or over 84 per cent, represents
the amount of member banks' notes collaterated by Government securities, $307,725,601,
or over 11 per cent, the amount of such notes
otherwise secured, and only $110,965,403, or
less than 5 per cent, the amoTint of customers'
paper rediscounted with the reserve banks.
Of the total amount of collateral notes discounted during the month, over 90 per cent
represents the share of the New York bank,
which reports the discount during the month
of $2,152^680,000 of collateral notes secured by
Liberty bonds and certificates and of
$185,687,000 of collateral notes otherwise
secured.
Among total discounts for the month, trade
acceptances (two-name paper) figure to the
extent of $4,442,261, compared with $855,834
for September and an average of $1,191,804
for the nine months of the present year; also
$1,659,491 of commodity paper, compared
with $500,141 for September and an average
of $779,975 for the nine-month period ending
September of the present year. The largest
increases in the monthly discounts of trade
acceptances are shown for the San Francisco
and Cleveland banks, while Atlanta reports
nearly 70 per cent of the commodity paper discounted during the month.

Discounts for the 10 months of the present
year, including collateral loans to member
banks, aggregated $4,870,083,422, of which
$4,358,,327,401, or 83 per cent, were collateral
notes, while $15,168,499 are specified as trade
acceptances and $8,679,267 a commodity paper. As compared with corresponding 1916
figures, trade acceptances discounted by the
Federal Reserve Banks increased about 366
per cent, while commodity paper discounted
by them declined about 42 per cent.
Owing to the large preponderance of dayto-day and 15-day collateral notes among the
total discounts for the month, about 97 per
cent of these discounts is shown to have been
15-day paper (i. e., maturing within 15 days
from date of discount with the Federal Reserve
Bank), the proportion rising to 99 per cent in
the case of the New York bank.
On the last Friday in October the Federal
Reserve Banks held a total of $397,094,000
of discounted bills, as against $233,539,000
at the end of September and $197,243,135 at
the end of June, following the consummation of the first Liberty Loan. Of the total,
$208,965,000 is represented by collateral notes
secured by Liberty bonds and certificates of
indebtedness, $62,922,000 by collateral notes
otherwise secured, $7,994,000 by agricultural
paper, $109,065,000 by industrial and commercial paper, §6,064,000 by live-stock paper,
and the remainder, $2,804,000, by miscellaneous paper, including customers' paper secured
by Liberty bonds or certificates and nonmember
banks' paper indorsed by member banks. Over
two-thirds of the agricultural paper was held
by the Richmond, Chicago, Minneapolis, and
Dallas banks, while over 88 per cent of the
live-stock paper held is reported by the Minneapolis, Kansas City, and Dallas banks.
During the month the number of member
banks increased from 7,751 to 7,783 largely as
the result of accession to the system of State
banks and trust companies. The number of
i discounting members shows an increase from

977

FEDERAL RESERVE BULLETIN.

DBCBMBBK 1,1917.

946 in September to 1,129 in October, the largest number of accommodated members for
Chicago Federal Reserve Bank reporting the the month, viz, 222 banks.
Bills discounted by each Federal Reserve Bank during October, 1917, distributed by sizes.
To $100.

O v e r SI00 t o 8250.

Over S25010 $500.

Pieces. ! Amount.

Pieces.

Over $500 t o §1,000.

Over $1,000 to $2,500.

Banks.
Pieces.

Amount.

120
147

7,085

Boston
New York..
Philadelphia
Cleveland
Richmond.
Atlanta...
Chicago
St. Louis...
Minneapolis
Kansas Cit v
Dallas
."
San Francisco
Total
Per cent
Member banks' collateral notes ,

303
19

1,290
9,090
1 462

2
8
9

185
391
6-10

15 :
40 '•
43 !
83
69 :
145
244 ;•
73 1
32 i
47 ;
20
18 !

421

25,857
.02

779 :
!

Amount.

Pieces.

Amount.

Pieces.

172

4152.065
53.640
107.912
34.305
168' 133
121.380
357.019
64,917
102,686
102.649
40,639
34.859

196
16i
178
124
229
249
426
160
173
179
78
113

$360.427
303.750
323.378
238.230
406.930
452,317
1.125.156
334,442
269.509
291.522
134,903
214,092

1,340,204
1.21

2,286

4,454.656
4.01

$3,300
6', 698
8,094
4.794
12,655
22,715
42.277
13,484
5.063
9,347
3,863
2,982

113
48
IIS
30
172
115
320
99
100
126
54
24

$50.154
19.357
45.235
11.732
71,277
45,311
128,859
38.495
36,746
47,933
19,913
8.423

135,672
.12

1,319

523,435

66
133
42

188 •
149

438 !
88 !
149 !
131
55
43

1,654

.47

Amount.

Over $2, 500 t o $5,000.

Over 55,000 to $10,000.

Over $10,000.

Total.

Banks.
Amount.

Pieces.
Boston
.
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y . . .
Dallas..
San Francisco

275
1,083
144
142
238
205
766
351
86

Total.
Per cent
Member bank's collateral notes.

180
60
389
3.919
50

Pieces.

$1,236,759
5,283.681
635,353
561,212
1,009.598
861'. 700
3.444,565
1,657,852
329.125
791.899
222,327
1,817,512

115
325
38
58

17,851.583
16.06
231,800

1,577

Amount.

115
103
349
169
43

50
34
178

Amount.

Pieces.

$1,0-15.798
2,957,956
314,998
475.094
989,998
833,921
3,182,350
1,5«l. 167
377,016
422,954
234.521
1,459,224

84
471
23
t)0

13,874,997
12.5
886,462

1,462

Pieces.

82. 892.926
35,895.315
3,660.364
2. 754,253
lj 248', 418
2,207,718
11.459,186
*', 893,928
1.460,674
1,443.305
404,181
4,438,731

970
2,314
824
489
1,061
1.060
2,936
1,100

72,758,999
65.61
1:192 2,569,082,189

13,397

50
81
290
141
36

42
23
161

619

757
332
935

1.341

Amount.
85.741,429
44,526.111
5.102.419
4.079,620
3.907,009
4! 546'. 352
19,748,502
8^ 585.747
2^581,419
3.109.594
1,000,738
7.976,463
110.965.403
100.00
% 570,. 200.. 451

Bills discounted during the month of October, 1917 and 1916, and ttte 10 'months ending October, 1917 and 1916, distributed
by classes.
\

Federal Reserve Bank

Boston
New York
Philadelphia..
Cleveland
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City..
Dallas
San Francisco
Total, October, 1917
Total, October, 1916
Total, January-October, 1917
Total, January-October, 1916

Member banks' collateral
notes.

i Secured by i
! Liberty bonds Otherwise
j or U. S. certif- j secured.
i icates of in• debtedness. ;

Trade acCommodity
ceptances. '
paper.

Allother
discounts.

Total.

$5,407,719
$11,785,969
43,404,338 ! 2,382,893,111
4,892,718
16,819,730
3,477,933
26,296,120
3,505,956
25,101,509
2,982,491
16,973,352
19,748,502
96,229,964
8,203,177
25,871,747
2,521,600
7,658,319
44,425,928
2,710,574
11,721,642
951,468
15,388,463
7,057,175

;
$2,457,700 I 83,586,840
I 2,152,680,000 ! 185,687,000
3,002,500
8,714,811
9,331,500
12,885,000 j
19,745,000
1,449,500 j
7,683,000
4,744,000 I
31,889,462
44,592,000 i
7,875,000
9,411,000 ;
5,076,900 '
15,864,000
* *25,"i52,*334"
4,910,654
5,750,250
2,850,000
4,562,000

$333,710
1,121,773
184,701
601,687
214,403
417,228

186,650
1,146,633

299,981
59,819
399,020
109,270
700,669

218,619

307,725,601 |

4,442,261

1,659,491

104,863,651

2,681,165,854

414,900
15,168,499
3,256,000

2,921,100
8,679,267
14,949,500

6.450,598
487,908,255
104,557,748

11,862,900
4,870,083,422
126,250,400

j 2,262,474,850

2,076,302
4,358,327,401
3,487,152

$25,000

978

FEDERAL RESERVE BULLETIN.

Amounts

DECEMBER 1,1817.

of discounted paper, including member banks collateral notes, held by each Federal Reserve Bank on the last Friday
in October, 1917, distributed by classes.
[In thousands of dollars; i. e., 000 omitted.]
Member banks' collateral notes.
Banks.

Commerby
Agricul- Live-stock cial and in- Secured
Liberty
dustrial
tural paper. paper.
bonds
or
paper. U.S. certif- Otherwise
secured.
icates of indebtedness.

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City...
Dallas
San^Francisco.

$6
73
40
12
1,192
670
2,221
154
1,125
320
838
625

W-y-" Total....
Percent

Distribution,

2.0

4
16
306
40
156
1,225
2,096
2,039
182

$8,070
38,942
6,269
4,479
6,299
4,218
16,794
10,217
3,241
1,764
1,051
7,721

156,560
1,257
2,160
679
2,160
21,993
5,642
3,640
7,587
3,242
3,400

6,064
1.5

109,085
27.4

208,965
52.6

All other
discounts.

S629
17,361
2,676
2,905
2,693
4,083
11,125
5,525

Total.

310,873

31,523

213,624
10,242
38
441
89

9,598
11,320
11,528
52,173
21,719
9,231
23,764
9,450
13,574

25 I

11,997 |
2,282 j
1,646 ;
2,804
0.7

62,922
15.8

397,094
100.0

by sizes, of bills bought in open market by all Federal Reserve Ba/nhs during October, 1917, and the 10 months
endingr October,
1917 and 1916.
Oct
To 35,000.

To 825,000.

To 510,000.

To §50,000.

Acceptances bought in open market.
Pieces.

Amount.

Banker's acceptances.
Trade acceptances

1,745
40

3,392,215
149,648

Total, October, 1917.
P e r cent
September, 1917
August, 1917
July, 1917
Juno, 1917
Mav, 1917
April, 1917
March, 1917
February, 1917
January^ 1917

1,785
1,708
1,153
1,680
2,297
1,305
748
3S9
819
390

3,541,863
4.1
3,753,473
3,631,618
4,392.492
6,0531419
3,571,384
1,589,086
876,506
2,175,639
1,023,210

Total, 10 months ending October, 1917.

12,274

Total, 10 months ending October, 1916.

3,789

Pieces.

Amount.

Pieces.

Amount.

! Pieces.

Amount.

1,475
29

$28,622,639
499,253

461
7

820,117,296
234,608

954
864
851
1,497
890
270
175
777
483

6,781,630 1,504
7.8
7,930,927 1,893
7.108,253 1,164
6', 097,592 1,355
11,774,481 2,641
7,024,753 1,580
2,147,380
647
1,381,029
363
(5,324,018 1,248
1,706,009
300

29,121,892
33.5
34,648,570
21,217,335
26,495,822
46,144,288
27,835,025
13,231,092
6,970,406
22,307,962
5,238,206

672
426
256
793
442
257
171
401
152

20,351,904
23.4
29,109.172
18,089,978
10,722,807
34,140,652
18,681,746
11,003,120
7,185,125
16,483,974
6,898,412

30,608,690

7,583

58,270,132 ! 12,695 233,276,598 j 4,038

172,066,890

11,110,586

3,654

29,822,811 I 4,878 I

776
46

56,385,035
396,595

To 5100,000.

83,554,624 j

1,344

55,576,822

Total.

Over 5100,000.

Acceptances bought in open market.
! Pieces.
Bankor's acceptances..
Trade acceptances

239
3

Amount.

Pieces.

Amount.

819,650,679
170,976

$7,275,238

7,275,238
8.4 !
10,287,318
7,066,795
6,511,943
10,809,917
10,098,085
6,186,816 I
4,930,660
8,012,105
1,859,768

Pieces.

Amount.

4,738 1885,443.102
125
»1,451', 080

Total, October, 1917..
Percent..

242

19,821,655

September, 1917
August, 1917
July, 1917
June, 1917
May, 1917
April, 1917
March, 1917
February, 1917
January, 1917

279
180
152
306
181
87
86
180
48

23,317,006
15,008,823
12,643,409
26,300,940
15,377,503
7,155,097
0,801,912
15,273,481
3, 891,515

Total, 10 months ending October, 1917

j 1,747

146,497,341

405

73,038,645 | 38,742 713,464,296

Total, 10 months ending October, 1916

566

47,868,141

229

42,743,391

1
!
!
!
1

4,8

Per
cent.
98.3
1.7

86,894,182
100.0

5,559
3,837
4,328
7,597
4,444
2,047
1,209
3,474
1,384

14,460

109,046,466
72,122,802
60,864,065
135,229,697
82,588,496
41,312,591
28,151,638
70,637,179
20,617,180

270,676,375

1
Of the above amount, banker's acceptances totaling $71,275,629 were based on imports and exports and $14,167,473 on domestic trade transactions.
2 Of the above trade acceptances, $1,353,580 were drawn abroad on American importers and indorsed by foreign banks and §97,500 were based
on domestic trade transactions.

979

FEDERAL RESEKVE BULLETIN.

DKCEMRKU 1, 1917.

Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal Reserve Board,
or as reported by the Federal Reserve Banks on dates specified, distributed by classes of accepting institutions.
Banker's acceptances.
I

Date.

member ! NonmcmMember iI Nontrust
bar State
banks.
companies.
banks.

Private
banks.

Trade acceptances
bought in

Foreign
bank
branches
and agen-

Total.

Total acceptances.

open
market.

1915.
Feb. 22
Apr. 5
May 3
June 7
July 3
Auk. 2
Sept. 6
Oct. 4
Nov. 1
Dec. 6

!
1

893.000
3,653,000
5,038,000
5,242,000
4,342,000
5,350,000
6,087,000
9,000,000
8,477,000
12.311,000

37,820,000
8,189,000
4,516,000
5,267,000
5,407,000
6,305,000
4,898,000
4,331,000
5,172,000

15,494,000
15.C.81.000
17',] 82; 000
21,000,000
24,875,000
24, (580.000
32,989', 000
39,(505,000
41.413,000
37; 798,000
37,770;000
47,748,000

7,160,000
7.875,000
s; 670; 000
13,573,000
15,400,000
17.029,000
IS, 921,000
19,060.000
20,356', 000
21,782,000
29,474,000
33,232,000

362,000
336,COO
408,000
473,000
585,000
644,000
471,000
738.000
726,000
712,000
1,014,000
1,630,000

66,803,000
50.361,000
53;288,000
43,979; 000
49.192,000
69; 262.000
108,597', 000
112,433,000
85,148,000
94,597,000
ios; 111,000
131,997;000
127,94.2; 000
150,301,000

34,625,000
23,511,000
32,51 Si 000
20,328', 000
19,650,000
27,011,000
30,390,000
43,107,000
38,087,000
33,273,000
28,406,000
14,987,000
15,356,000
3.147.000

1,502.000
972; 000
1.090,000
'689,000
236.000
584.000
3,333;000
2,564,000
2,377,000
2,312,000
2;431,000
2,193,000
1,840,000
1,307,000

$10,000
10,000
10,000

."5110,000:
110,000
192,000
161,000
352,000
472.000
343; 000 i
204,000 ,
396.000 i

20,000
20; 000
132.000
253; 000
275,000

$93,000
11,593,000
13,347,000
9,960,000
9,770,000
11,129,000
12,884,000
14,373,000
13,265,000
18,154,000

393,000
11,593,000
13,347.000
9,960;000
9,770,000
11,129,000
12,884,000
14,373,000
13,265,000
18.154,000

1916.
Jan. 3...
Feb. 7..
Mar. 6..
Apr. 3 . .
Mayl..
June 5..

Julys..
Aug. 7..
Sept. 4.,
Oct. 2..
Nov. 6..
Dec. 4..
1917,
Jan . 1
Feb. 5
Mar. 5
Apr. 2 . . .
May 7
June 4
July 14-16
July 31
AUK. 15
Aug. 31
Sept. 15
Sept. 29
Oct. 35
Oct. 31

I
i
!
|
I
!
!
j
|
!

,
!
I
I

822,000 i
1,456,000 !
1,781,000 !
3,262,000 ;
3,430,000 i
7,007,000 j
11,830,000 !
13,940,000 !
12,491,000 !
9; 944,000 !
12,147,000 !
16.069,000 !
18,224.000 '
13,775', 000 I
20,581.000 :
16.830,000 !•
19; 177,000
21,077.000 i
38.082; 000 J
20,782,000 I
14,137,000
18,086,000
21,118,000
21,708,000
22,931,000
21,083,000

•

23,838,000
25,349,000
28,041,000
38,308,000
44,290,000
49,360,000
64.211,000
73; 433,000
74,986,000
70,238,000
80,405,000
98,679,000

8489,000
462,000
722,000
1,477,000
2,208,000
3,422,000
4,225.000
3,673,000
2,306,000
2,378,000
4,487,000

23,838,000
25,838,000
28', 503,000
39.030,000
45; 767,000
51,568,000
67,633,000
77,658,000
78,659,000
72.542,000
82; 783,000
103,166,000

8140,000
354,000
200,000
94,000
239,000
3,805,000
1,087,000
1,345,000
1,369,000
.1,329,000
2,286,000
1,471,000
2,153,000

121,154,000
88,759; 000
107.837,000
82,026,000
88,349,000
118*773,000
184,785.000
179,973,00n
j 40.894,000
149; 637,000
161,145,000
173,171,000
169,540,000
177,991,000

4,585,000
4,041,000
2,535,000
1,144,000
1,679,000
3,022,000
4.660,000
4', 242,000
2,300,000
4,952,000
7,246.000
6,942;000
8; 234.000
6,224,000

125.739,000
; ;
92;soo;ooo
110,366,000
83,170,000
90,028,000
121,795,000
189.44o.000
18^215,000
143,194,000
154,589,000
168,641,000
180,113,000
177,774,000
184,216,000

•

980
Amounts

FEDERAL BESERVE BULLETIN.

DECKMBBU 1,1917.

of hills discounted and acceptances and warrants bought by each Federal Reserve Bank during October, 1917,
distributed by maturities.
30-day maturities.

15-day maturities.
Banks.

i
! Warrants.

.Discounts.

Discounts. |

Total.

Warrants.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas..../
San Francisco

i
\
i
I
•
|
;
i
!
I

Total.
Percent

86,770,804
2,359,046,667 ! §336,151
11,962,123
22,775,905
21,964
21,490,550
263,965
13,236,274
673,000
80,684,929
18.419,492
o,120,615
111,000
41.639,057
10; 682,704
50.000
17; 185
9.609,799

556,770,804
2,359.382,818
li;962,123
22,797,869
21,754,515
13,909,274
80,684,929
18,419,492
5,231,615
41,639,057
10,732,704
9,626,984

$770,204
3,359,466
509,485
949,270
713,285
964,005
3.841,465
3'. 486,396
'617,798
373,504
66', 742
1,863,551

2,601,438,919 : 1,473,265

2.602,912,184
94.0

17,515,171

60-day maturities.

8831,629
6,375,587
1,684,876
1,840,209
3,270,684
1,942,062
3,841,465
3,486,396
' 927,798
373,504
! 1,466,742
| 2,144.22:?

861,
3,016,
1,175,
890
2.557,
'978,

i
!
I
i
!
|
!
i

310,000
1,400, 000
280, 672

10,670,004

| 28,185,175
.-.!
1.0

90-day maturities.

Banks
Discounts. I Acceptances. Warrants.
Boston
New York..
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

j
|
"I

Total
Per cent

SI, 274,929 I
5,802,649
716,249
1,467,251
1,606,785
1,590,045
0,783,293
1,730,583
1,110,637
826,044
303,531
1,923,702

i
|
j
i
j

25,177,758

Total.

8725,915 i
10,349,813 ! 8505,823
540 876 !
1,357,963 :|
491.853 ...
862;500
!
115,000
14, 775
2,821,632
510,129
17,790,456 .

505,823

82,000,844
16,658,285
1,257,125
2,825,214
2.098,638
2,458,545
6, 783', 293
1.736; 583
1'. 255,637
' 840,819
3,125,163
2,433,891

52,389,172 j
14,684,329 •
3,629,448 I
1,100", 987 !
1,276,167 i
1,083,456 !
4,138,169 i
2,186,082 i
606,235 i
1,260,034
337,863 ;
1,971,127 :

84,219.460
36,605; 010
2,429,493
4,865,740
1,507,500
957,002
2,714,170
'173,796

44,317,193
1.6

34,663,069 !

54,414,021 I

Over 90-day maturities.
Dis- ; Acceptances.
counts.

Warranis.

Acceptances. Warrants.

Discounts.

Warrants.

86,608,632
51,289,339
6.068,941
5;966;727
2.783,667
2,185!420
6,852,339
2,359; 878
621.405
1,27f>; 794
960,728
2,208,952

15,760
62S,865
297,825

Total.
Total.

170,132 j

Total.

! Dis- Accept-; War- !
! counts. ances. j rants. : Total.

S580,860 ; 8033,928

\$o, 010,728
! $17,426,697 i
!o0. 307,095
,016,52-1 12,434,216,730 I
565, .180
10,000 i 21,394,910 j
361.666
! 33,657,786 !
i 5;620,717
! 30,722,220 j
i 3,470,559
144,962 ; 20,588,873
; 3; 181,598 : . .
|
99,411,562
'' ' 173'. 796 I..
I 26.045,543
15,170 !
8; 209,489 I
r>;j6;ooo [
.!'
44.456,463 i
30,535 :..
16i622,139
900,497 L.
16,494,274
105,811 '..

67.6
97.9
78.6
78.1
81.7
82.4
96.8
99.3
93.3
99.9
70.5
93.3

32.4
2.1
21.3 ;
21.9 i
18.3
16.9
3.2
.7 !
6. 5
.1
29.5
6.7

Total.
Percent

2,370,937 ! 2,545,836 ; 510,701 : 5,427.474 ;2,681,165,854 186,894,182 i 1,186,656 12,769,246,692
j
IOO.O j
!
i
0-2 I
:
;

96.8

3.2 !

.181,214,788 | 811, 785, 969
S510,701 ! 510,701 |2,.382,893! i l l
.|
421.845 j ' !6819;
J
227; 767 I 26,2^6,120
.!
814,722 !
2r>,.10, 509
.!
93,572
16,973; 352
467,428
.1 1,249,536
96,229! 964
,!
43,194
25; 87l! 747
.1 173; 034 I
7,658; 319
I 327,289 ! 44,425, 928
.: 330.802 !
11,721. 642
,j
2O',224 ;
15,388' 463

782,108 i
43,194 •
173,034 i
327,289 !
330.802 :
20; 221 I

89,217,822
3.2

Per cent.

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas Citv...
Dallas
San Francisco.

419,420 i
2,425
225,060!
2,707
14,722 i 800,000 i
93,572 '

Total.

Ih
! k'

0.1
.7
.2

100.0
100-0
100.0
100.0
] 00.0
100. C
100.0
100.0
100. 0
100.0
100. C
100.0

! 100.0

981

FEDERAL RESERVE BULLETIN.

Disc EMBER, 1 , 1 9 1 7 .

Maturities of discounts, acceptances, and municipal warrarrfs held by each Federal Reserve Bank on Friday, Oct. £6, 1917.
[In thousands of dollars; i. e., 000 omitted.]
1 to 15 days.
Banks.

Bills discounted.

Acceptances
bought.

16 to 30 days.

Municipal
warrants.

Bills discounted.

Total.

Acceptances
bought.

Municipal
warrants.

Total.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas'City...
Dallas
San Francisco.

4,429
186,251
5,294
6,426
5,790
8,044
34,656
14,593
5,132
20,623
6,686
8,146

196

8,625
199,917
9,287
11,930
6,955
9,088
37,265
16,182
5,972
21,531
8,194
9,245

1,854
5,056
632
488
2,165
1,268
7,475
2,193
1,097
891
887
2,401

1,648
9,258
1,380
3,823
837
800
185
396
897
304
3,978
1,977

3,497
14,314
2,012
4,311
3,002
2,070
7,660
2,589
1,994
1,195
4,865
4,378

Total.
Per cent

306,070

38,121

344,191

26,407

25,478

51,887
9.0

31 to 60 days.
Banks.

Bills discounted.

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas....;....
San Francisco..
Total.
Per cent

Acceptances
bought.

2,615
8.789
840
1,952
2,713
1,487
5,618
3,893
1,975
1} 181
1,117
2,116

13,673
36,835
4,162
5,711
1,472
289
1,356
382
50
25
2,361
902

34,296

67,218

61 to 90 days.

Municipal
warrants.

14
....!

Over 90 days.
Banks.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total.
Per cent

Accepta r i c s ! Munici)al wax
counted
countcd. j b o u g h«t < |i *r a n t S t "

Total.

1,885

131

16,288
45,624
5,002
7,668
4,185
1,785
6,974
4,275
2,025
1,206
3,478
3,018

1,975
13,528
3,467
731
643
651
3,656
1,009
892
637
374
873

4,534
28,805
3,822
3,063
2,257
642
3,565
61
10

101,528
17.7

28,436

46,783

Bills dis- Acceptances
counted. bought.
10,
213

131

Acceptances
bought.

207
768
31
135
432
386
38
2.016
.3

1
23;

397,094

Municipal
warrants.

Total.

6,509
42,333
7,299
3,801
2,900
1,306
7,221
1,070
902
637
420
897

24
76

75,285
13.1

Percentages.

Total.

I
9
1
9
76
768
31
135
432

Bills discounted.

Total.

Municipal warrants.

Total.

24,046
88,564
13,357
18,101
5,731
2,775
7,715
2,428
1,787
1,237
7,847
4,002

155

34,919
302,188
23,609
27,711
17,051
14,456
59,888
24,147
11,028
25,001
17,343
17,576

177,590

233

574,917
100.0

Bills Accept-; Municidisances pal war- Total,
counted. bought.| rants.
32.1
70.7
43.4
34.6
66.4
79.7
87.1
89.9
83.7
95.1
54.5
77.2

67.9
29.3 I
56.6 i
65.4 i
33.6 I
19.2 I
12.9 i
10.1 i
16.2 I
4.9 i
45.2 I
22.8 !
30.9 I.

100.0
100.0
100.0
100.0
100.0
100.0
1.1
100.0
100.0
100.0
..! 100.0
3
100.0
100.0
100.0

982

FEDEBAL KESERVE BULLETIN*

DECEMBER 1,1917.

Total investment operations, exclusive of purchases of United States certificates of indebtedness, of each Federal Reserve Bank
during the months of October, 1917 and 1916, and the 10 months ending Oct. SI, 1917 and 1916.

Federal Reserve Banks.

Total,
Total,
Total,
Total,

Bankers'
Trade
acceptances. acceptances.

811,785,969
2,382,893,111
16,819,730
26,290,120
25,101.509
16,973', 352
96,229,964
25,871,747
7,658,319
44,425,928
11,721,642 j
15,388,463

579,994
851,540
565,180
945,028
020,717
470,559
181,598
173,796
536,000
30,535
900,497
587,60S

2,681,165,854
October, 1917
11,862,900
October, 1916
10 months ending October, 1917. -!., 870,083,422
10 months ending October, 1Q1G. 12(5,250,400

85,443,102
39,195,000
590,487,615
258,988.000

PJoston
,
Now York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis —
Kansas City...
Dallas
San Francisco.

Municipal warrants.

Bills bought in open market.

Bills discounted for
member
banks.

§60,734
455,555
"416," 638'

518,153
1,451,080
1,699,100
22,976,681
11,789,400

City.

Total.

So,640,728
50,307,095 $1,016,524
•1.505,180
7;361,666
c
,620,717
3,470,559
11,910
3.181,598
173,796
536,000
30,535
4,900,497
1,105,811
86,894,182
40,894,700
713,464,296
270,676,400

1,043,604
10,030,300
15,645,355
75,233,500

Total.

$1,016,524
' 10,000

810,000

144,962

8133,052 I

"i5,'i70

133,052
2,000
135,092
3,656,900

1,186,656
10,267,500
16,461,945
79,716,900

10,000
235,200
681,498
826,500

Total investment operations.

United States bonds and Treasury notes.
Federal Reserve Banks.

Allother.

State.

1-year
2 per cent. 13 per cent. 35 per cent. 4 per cent. Treasury
notes.

Total.

October,
1917.

October,
1916.

Octo- iOctober, I ber,
1917. ! 1910.

82,899,
16,640,
7,409,
5,676,
2,082,
5,347,
5,131,
3,004,
3,210,
1,702,
1,559,
7,295,

Per \ Per
cent, j cent.
0.0 ! 4.6
87.9 | 20.3
.8 ! 11.8
1.2 ! 8.9
1.1 i 4.2
.8 ! S.5
3.0 i 8.1
5.8
X: ! ! 5.1
2.7
2.5
11.5

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas.....'....
Sanlfranoisco.

815,050

825,000

100
134,000
1,200
1.000

$2,100

1,250

3955,000 I

$995,650

405,000 j

408,200
134,600
2,450
9,000

8,000

1,000 I.
10,000

1,000
10,000
3,400
10,750

3,400

10,750

Total, October, 1917
Total, October, 1916
Total, 10 months ending
October, 1917
Total. 10 months ending
October, 1916

3,100
5,060

173,300

13,997,200

186,540

44,325,710

37,481,250

3,647,880 |.

62,000

29,650

1,309,000 ! 1,575,050 2,770,821,742
250,000 I

63,900
4,153,000

§17,426,697
,435,212,380
21,394,910
34,005,986
30,850,826
20,591,323
99,420,502
26,015,543
8,210,489
44,466,463
16,025,539
10,505,024

257,060

7,059,000 I 65,032,350
300,000

45,582,130

13,282,100

100.0 i
; 100.0

5,005,642,013
522,225,830

United States securities held by each Federal Reserve Bank on Oct. SI, 1917, distributed by maturities.
United States bonds with circulation privilcge.

3 per cent i 4 per cent
loan of i loan of
191S
1J18.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City..
Dallas
San Francisco..
Total

]

1Q9--1
lHzo.

8750
850,000 I
50 j
S100
j
6,400 | 467,200
' 653," 060 "|$2," 378," 266"
j 915,100 j 237,000
! 6-10,600 j 21,000
I 1,802,500 i 307,300 2,581.000 | 1,708,000
!
100 i
j 323,050 j '"io'206' l' 199^ 180 ;" "266/256'
7,155,850 i 22,240
: 825,000
2,450,900 i 281.500
2,428,750 !.

jlo, 78-1,050 jl, 412,000 j 7,503,840 j 5,177,450

United States securities without circulation privilege.
3 per cent pjPnt 3i per cent 4 per I United
pent I States cer1-year
heny
of
Y
Treasury loan
„/
Loan off Libertyitiiicates
Loan
od indebtednotes.
1961. i » ' •
1942.
ness.
8529,000 82,19-1,000
1,255,500 4,493,000
549,200 2,548,000
414,800 3,271.000
1.909'000
16,366' I', 491,000
427,400 3,308,000
1,153,300 1,444,000
114,800 1,340,000
S38,500 1,784,000
1,233,000 1,430,000
. . . | 1,500,000

Total.

$80,000
8492,000 83,295,750
1,532,750 825,000 111,581,000 18,937,300
1 100
• 577,000 3,075,400
2,020,450
4,406,000 15,023,710
395,000
3,559,200
7,454,000
9,834,050
1,057.000 25,431,000
349' 000
4,026,400
871,000
4,071,040
i
120,000 11,001,040
7,492,800
3,400 i 2,091,000
' 3,270,000 7,215', 500

6,526,400 126,832,000
29,650 |32,925,000 114,224,390
I
Total United States bonds with circulation privilege, $29,937,940. Total United States securities without circulation privilege, 884,286,450.

983

FEDERAL KESEEVE BULLETIN.

DECEMBER 1,1917.

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve Systeyn at close of business on
Oct. 26 to JSTov. 23, 1917.

Fridays,

RESOURCES,
jln thousands of dollars; i. c. 000 omitted.]
Boston.
Gold coin and certificates in
vault:
27,5-16 j
Oct. 26
29,547
Nov. 2
33,251
Nov. 9
39,946
Nov. 1G
31,698
Nov. 23
Gold settlement fund:
22,047
Oct. 26.
19.687
Nov. 2
Nov.9
i 12', 721
11,104
Nov. 16
6,016 !
Nov. 23
Gold with foreign agencies:
3,675 I
Oct. 2 6 . . . . .
3,675 i
Nov. 2
3.075 !
Nov. 9
3'. 675
Nov. 16
3; 675
Nov. 23
Gold with Federal Reserve
Agent:
35.371
Oct. 26
37', 539
Nov. 2
36,182
Nov.9
31,692
Nov. 16
30,461
Nov. 23
Geld redemption fund:
1,000
Oct. 26
992
Nov. 2
1.000
Nov.9
l'.OOO
Nov. 16
Nov. 23
r,ooo !
Legal tender notes, silver, etc.
4,037 i
Oct. 26....
'.
4,368
Nov. 2
5,441
Nov. 9
5,046
Nov. 16
5,362
Nov. 23
Total reserves:
93,676
Oct. 26
95,808
Nov. 2
92,270
Nov.9
92;463
Nov. 16
78,212
Nov. 23
Bills discounted—members:
10,873
Oct. 20
11,995
Nov. 2
11,488
Nov. 9
36,286
Nov. 16
37,574
Nov. 23
Bills bought in open market:
24,046
Oct. 26
23,483
Nov. 2
28,742
Nov.9
Nov. 16
! 28,437
30,234
Nov. 23
j
United States Government j
long-term securities:
i
610
Oct. 26
!
610
Nov. 2
|
610
Nov.9
.1
tilO
Nov. 16
!
610
Nov. 23
;
United States Government \
short- term socuri ties:
!
Oct. 26
1 2,686
Nov. 2
| 2,686
Nov. 9
| 2,680
Nov. 16
! 2,536
2,456
Nov. 23
Municipal warrants:
Oct. 26
Nov. 2
Nov. 9
Nov. 16
Nov. 23

New
York,

Philadelphia.

281,218
308.420
309', 258
321,188
333,776

17,623 21,657
18,678 30,550
20,077 29,401
20,576 30,647
21,106 29,073

6,219
6,092
6,123
6,203
6,144

6,175
5,794
5)779
5,799
5,551

35,270 i
35.904 I
36)377 !
35,076 i
33,900 !

4,772
5,199
5)299
5.426
5)362

36,496
111.398
90)846
67,140
28,666

38,043 52,368
29,941 39,138
40,389 30,706
37,232 45,419
40,511 50,490

30,394
38,751
36,139
35,240
40,417

3,859
3,650
9,548
9,411
13,545

72,842
52,958
68.785
67) 007
72,007

21,158
19.801
22)205
21,923
25,640

1,837
1.837
1'. 837
1)837
1,837

1,575
1,575
1,575
1,575
1,575

18,112
18,112

.18,112
18,112
18,112

Chicago.

Rich- I Atmond. j ianta.

3.675
3)675
3,675
3)675
3,675

4,725
4,725
4,725
4,725
4,725

187,224 48.220 i 47,715 23,729
177.432 51,749 ; 44,223 28,614

177'. 146 49,785 j 47,014 32,061
174;325 50,529 ! 46,192 31,997
174,058 50,644| 18,121 31,940

12,225 25,082
12.197 25'. 954
12)206 28)581
12,238 30,017
12,531 32,682

401,113
501,311
507,403
526,792
530,045

5,370
4,580
10.871
14)070
15,894

38,480
20,846
25,646
20,508
30,443

15,679
17,059
13,579
15.603
27)504

I 27,231
I 20,706
i 24,289
' 19,053
! 35,529

363,967
378,514
385,724
303,710
386,662

2,100
2,100
2,100
2,100
2,100

2,625
2.625
2)625
2.625
2'. 625

1,838
1,838
1,838
1,838
1,838

2,888
2,888
2,888
2,888
2,888

52,500
52.500
52)500
52,500
52,500

40.058 81,372 27,075 35,625
39)027 74,371 30,059 32,491
36,904 86,231 33,375 29.477
39,892 98,474 38.359 29)353
43,851 81,692 38)847 29,325

30.620
30)314
30,287
30,209
30,186

26,303
26,485
27,772
27,757
29,039

26,380
30,129
30,020
31,127
35,784

614,692
602,433
616,254
629,906
023.948

517
515
51.5
515
514

818
870
89S
965
1,035

30
31
39
10
41

11,164
11,317
11,496
11,420
11,549

387 i

49,506
50,744
52,208
•52,525
54,058

7,350 2,100
7,350 2,100
7,350 j 2,100
7,350 2,100
7,350 2,100

950
950
950
950 i
950 j

12
35
21
52
31

715
664
639
615
594

540
585
667
535
573

391
398
411
431
462

40.276
4i;134
42,134
42,366
42,658

7C0
873
767 i
858 •
1,023 •

352
482
473
500
679

157
179
182
193
158

248
281
269
282
305

1.816
1)609
1,183
1,499
2,162

68,051
76,137
76,981
76,085
81,090

52,455
50,912
54,742
57,494
65,400

199,Oil
172,590
200,337
209,837
197,573

109,271 1126,829
! 105,866 119,153
! 115,643 5112.343
1113,820 127)535 i
1117,909 1133,119 j

213,624
277,754
298.963
223'297
351,111

10,242
11,321
9,287
16,046
22,914

'i 9,598 I 11,320

88,564
70.869
24)518
31,220
50,340

13.357
17)240
26,190
25,859
25,604

I
I
!
i
!

2,426
2,302
2,273
2,044
2.180

550
550
550
55C
550

i 12,630 ! 11,471
14,223 I 9,086
! 25,386 I 10,775
j 30,149 I 16)023
18,101 !
29,686 I
36,302 j
34,444 I
31,082 {

5,731
6,399
11,740
12,191
12,937

Total.

17,878 i 5,448
16,622 6,354
15,060
5,988
" ~~"
14,069
5,607
14,234
3,988

5,000
5,000
5,000
5.000
5; 000

508,326
661,496
642,496
628,131
602,270

San
Francisco.

Minne- Kansas
apolis. City. Dallas.

768
766
702
758
754

393
511
594
589
595

i
613 !
695
695
606
614

322
321
310
315
310

56,'180
58.620
64)430
69,172
73,317

37 I

493 |
522
505
588
528

211 I
187 I

213 I
222

01,688
56,625
58,412
60,49(5
62,458

77,735
(30,723
65,123
59.o23
67)793

57,386
58,970
56,798
58,989
72,47o

9,231
14.591
13)450
13,475
10,262

23,704
31,975
35,024
31,900
33,122

9,4"»0 .13.574 ,
10,535 i 15)030 !
10,211 10,370 I
10,423 10,1.11 i
8,375 18,080 j

397.094
503)905
510,154
487,850
056,002

1,781 1,237 i 7.847 4,002 :
1,976 ' 5.947 7)407 8,938
11,357 5)340 11,595 8.769
4,951 10,372 17)174
:
10)537
;
9,044 4,530 10,818 •'16,848

177,590
180,012
ISI',001
193,809
209,905

11,526 52,173
11,877 69,305
12,320 63.584
10,157 76.813
12,053 97)805
2,775
4,295
4,395
5,595 !
4,727 I

45
69
62
59 i

I
!
!
I
|

: 81,998
! 79', 9.19
i 86)00-1
| 83.308
! 107)146

7,715
7,696
5) 700
5,624
5,949

1.552,9-12
1'. 590'. S19
1'. 025) 5S5
1)036,853
1) 058,762

7,947
7,697
7,097
8,178
8,053

I
i
I
I
I

1,206
1,361
1,348
1,346
1,311

1,017
1)017
1,017
1,017

10 i
101
10 i
101
44 i

3.693
3) 737
3,514
3,529
4,824

i
16,074 3,128 i
6,074 ! 3)065 I
6)074 3,062 j
156,072 2,860
26,122 2,858 !

893 i 21,007 I 2.233 i
589 ! 21,007 2)233 I
889 21,007 I 2 233 I
898 ! 21,007 I 2)233 ;
i 21,007 2:233

2,364
2,364
2,364
2,364
2,364

8,945 ;
9,250 1
9,151 '
7,060 !
5,383 i
155 !
157
163 !
163 I
278 j

4,948
4,000
3,585
3,404
3,779

1,793 !
1,793 i
1,793 !
1,693:
1,693

1,800 8.853
1)860 8)851
* "'"" 8,849
1,860
1,8G0
8.849
1,860
8)849 i
3,037
2,183
2,183
1,819
1,810
10
25
25
25
25

2,210
2,210
1.784
2)210
2,222

3,972
3,972
3,972
3)972
3,972
2,252
2,802
2,285
2,824
2,054
46
46
46
4(1
46

i
I
!
j
!

2.519 !
2)519 !
2,455 !
2,455 ]
2,440 i

54,100
53,851
53,743
54,002
53,902

4,740 I
4,987 I
3,880 I
1,533 I
1,085 I

55,876
45,211
42,367
187,904
57,850
233
1,207
1,273
1^273
1,422

984

FEDERAL RESERVE BULLETIN.

DBCBMBJBR 1,1917.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays,
Oct. 26 to Nov. 23, 1917—Continued.
RESOURCES.
[In thousands of dollars; i. e. 000 omitted.]
Boston.
Due from other Federal Reserve
Banks, net:
Oct. 25
3. I l l
Nov.2
2; 504
Nov. 9
Nov. 16
17,452
Nov.23
Uncollected items:
18,598
Oct. 26
17,183
Nov.2
15,983
Nov. 9
30,708
Nov. 16
16,222
Nov.23
Five per cent redemption fund
against Federal Reserve
Bank notes:
Oct. 26
Nov.2
Nov.9
Nov.16
Nov.23
All other resources:
Oct. 26
Nov.2
Nov.9
Nov.16
Nov.23
Total resources:
153,600
Oct. 26
154,269
Nov.2
Nov. 0
!lol,779
Nov.16
1208,492
165,308
Nov. 23.

New
York.

2,520
9,514
55,216
81,000
65,570
80,127
60,973

944,230

1,100,512
' "•" —
1,043,431
1,121,908
1,103,527

Phila- | Clove-

6.497
5; 365
4,641
32,885
34,364
34,058
47,898
30,636

175,940
177,781
188,800
211,684
200,515

11,269
1,788
6,426
10,390
2,831

Richmond.

Atlanta.

Chicago.

2,036 ! 1,114
228 I 1,749

6,851

3,189 I 1,973
i 171

6,150
10,109

Minna- Kansas I
St.
Louis. apolis. I City. Dallas.

18,199 17,893 19,266 37,151
17,737 20,116 17,505 42,027
17,039 17,700 16,379 35,548
36,454 30,409 22,079 70,775
21,706 20,613 17,121 44,022

1195,648
J132,446
1197,556
!245,928
1231,776

141
35

100
148
62
139
100

108,691
118,076
119.719
136)500
134,973

97,229
96,782
98,101
105,558
106,730

2,512
11,006
980
1,923
2,001

6,756
1,380
9,988

2,263
728
241
286

! 6,395
I 8,489
I 8,995
!17,772
896

' 6,896
114,385
1
1,725
117,838
1 11,872

19,873
19,084
17,416
27,067
16,898

10,017
14,695
10,351
18,330
11,690

17,551
16,102
16,803
35,901
24,410

15,629
19,544
13,400
15,026
17,277

19,399
18,544
11,549
13,770
20,957

281,077
317,901
271,796
428,544
302,525

400
400
400
400
400

137
137
137
137
137

170

122
127
301
404
599

.
!.
i.
I
!.

345
426
1,547
2,069
1,470

1323,536
1329,761
393,708
380,244

Total.

6, 002
4,666
1,683
2,981

L1322,035

San
Francisco.

524
670
797

537
537
537
537
537
63
217
112
109

1,354
1,588
2,989
3,736
3,293

111,079 90.666 135,445 99,104 132,696 2,528,365
113,713 104,231 132,964 104,328 1139,243 2,721,534
111,103 99.421 134,873 98,986 138,146 2.697,170
129,861 109,350 153,722 102,479 152,123 3,012,406
120,731 100,730 150,021 116,353 168,161 2,956,130

LIABILITIES.
Capital paid in:
5,467
Oct. 26
5,467
Nov.2
5,701
Nov.9
5,701
Nov.16
5,701
Nov.23
Government deposits:
12,823
Oct. 26
Nov.2
6,528
359
Nov.9
Nov.16
1 42,256
Nov. 23
1 7,292
Due to members—reserve ac- I

count:

Oct.26
!
Nov.2
i
Nov.9
1
Nov.16
Nov.23
Due to nonmember banks—
clearing account:
Oct. 26
Nov.2...
Nov. 9
Nov.16
Nov. 23
Collection items:
Oct. 26
Nov.2
Nov.9
Nov.16
Nov. 23
Due to other Federal Reserve
Banks—net:
Oct. 26
Nov.2
Nov.9
Nov.16
Nov.23

74,592
78,523
f7,177
87,647
78,715

2,595
2,595
2,635
2,635
2,665

15,591 8,313 15,157 8,535
49,819 6,965 9,899 15,120
7,303 2,039 5,895
3,485 19,267 46,017 23,872
31,292 4,227 28,563 | 12,220

5,866
4,869
5,042
4,673
3,196

528,035
632,111
633,364
657,133
657,097

5,273
5,284
5,584
5,590
5,590

73,634
72,868
80,769
83,991
82,623

3,020

32,537
49,351
44,251
51,196
52,094
36,426
36,347
"58,* 907'

| 98,754 40,799
; 98,447 40,553
1103,998 45,104
1101,442 j 44,324
1104,785 | 42,257
390 :'.
609 I.
590 L
129 I.
78 j.

25,287
14,409
24,362
11,331
10,973
12,243
12,494
12,516
18,420
14,311

6,460
6,478
6,743
6,743
6,751

3,477
3,477
3,567
3,585
3,585

15,236
16,733
16,848
17,675
18,028

32,226
32,328
31,083
33,498
34,673

8,048
8,047
8,055
8,549
8,603

13,709 12,831
13,680 14,692
12,094 13,797
20,940 15,971
16,815 16,469

3,498

6,304

10,895
8,885
8,222
10,870
9,137

2,579
2,579
2,581
2,581
2,581

3,372
3,372
3,372
3,372
3,372

2,783
2,783
2,783
2,783
2,783

4,034
4,033
4,033
4,033
4,033

64,291
65,345
66,691
67,136

17,545
5,013 10,746 8,748 14,196
18,224 7,245 15,139 8,806 12,875 20,423
3,199
1,636
7,085 4,420 6,227 12,130
25,367 14,438 14,559 11,393 3,324 10,236
40,674 1,705
7,132 12,753 11,048

132,221
175,912
59,198
218,887
196,411

156,951
157,244
165,717
183,756
159,931

100 5,749
81 5,178
4349
137 I 4,349
72 I 5,911
485 | 5,984

28,693
29,072
30,349
31,934
27,285

3,305
3,443
3,443
3,444
3,444

I 19,945
I 19,330
*"* "*"
23,109
38,889
27; 807

46,537
47,814
48,844
48,562
46,682

39,587 67,612 38,854
42,028 66,858 39,785
41,753 71,251 40,578
42,917 74,968 43,450
46,395
41,271

18
19
46
482

39
10
7
36
36

2
2
2
2
2

12,960
14,129
13,964
16,073
13,592

4,209
4,516
4,746
5,252
4,614

10,962
10,027
9,977
13,695
12,162

6,105
5,664
5,117
6,451
6,915

1,572
55 I

1,6

3,' 894" I."!!".*!!"
1,8
7,093
9,063
* Difference between net amounts due from and net amounts due to other Federal Reserve Banks.
*i,*086

66,742
63,464
67,344
78,810
62,330

1,264,323
1,372,023
1,406,982
1,480,498
1,426,648

3,761
4,003
4,400
3,398
4,251

35,335
24,310
33;866
20,925
22,291

9,403
9,971
8,880
10,746
13,968

174,492
191,811
187,022
240,437
215,169

R 1, 1917.

985

JEDEEAL RESERVE BULLETIN.

Resources and liabilities of each Federal Reserve Banh and of the Federal Reserve System at close of business on Fridays,
Get. 26 to Nov. 23, 1917—Continued.
LIABILITIES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
i Phila- : Oleve- j Rich- j Atdel- ' hind. ; mond.! lanta.
York. ii phis.
;

Boston.

288,798
299,263
314,807
319,481
331,167

Oct. 26

Nov. 23

I 944,230
11,100,512
;1,043,431
jl,
l 121,908
1219—
11,103,527

45,547
48,024
50,927
53,8.10
56,574

! 59,613 60,898 42,896
! 63,155 ; 63,07444,071
j 66.076 : 67,876 46,969
j 70:429 • 70,432 48,748
73;151 74;687 51.379

2,320 •
2,479 .
2,496 •
2,700 :
2,876 i
153,600
154,269
151,779
208,492
|165,308

Total.

Federal Reserve notes in actual j
circulation:
Oct. 26
i 47,932
Nov. 2
; 50,644
Nov. 9
i 52,347
Nov. 16
i 53,805
N ov. 23
j 57,604
Federal Reserve Bank notes in |
circulation, net liability:
j
Oct. 26
i
Nov. 2
'
Nov. 9
:
Nov. 16
Nov. 23
!
All other liabilities, including
foreign Government credits:
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Total liabilities:
Oct. 26
Nov. 2
Nov. 9
Nov.
16
Nov. 16.

San
St. Kansas j MinneLouis. City. ! apolis. Dallas. Francisco.

Chicago.

414
437
485
473
546

175,940
1177,781
1188,800
211,684
" " ""'
200,515

!
j
j
i
!

153 :
163
115

ISO
259
360
225
87

112,144
115,494
123,573
131,236
137,024

j
!
i
j
I

38,582
41,064
43,197
47,298
50,932

34,583
35,683
37,851
42,018
43,599

39,239
39,959
43,249
44,005
45,096

81
19
130

42,614
43,221
44,281
46,471
47,409

135,648
192,446
""'
197,556

j 108,691 97,229
,
96,782
118076
118,076
98,101
119,719
245,928 136,500 ::105,558
-~" — j:106,730
;231,776 ;134,973

322,035
323,536
329,761
393,708
380,244

8,000
8,000
8,000
8,000
8,000

168 !
216 i

3,859
4,186
4,2454,383
4,583

244

111,079
113,713
111, 103
129,861
120,731

90,666
104,231
99,421
109,350
100,730

847,506
881,001
932,512
972,585
1,015,892

8,000 I.
8,000 !.
8 000 !.
8,000 i.
8,000 I.

274 L

221

34,580
37,349
41,359
44,852
47,270

'135,445
1132,964
[134,873
|153,722
150,021

•.

I 99,104
1104,328
98,988
102,479
116,353

132,696
139,243
138,146
152,123
168,161

.
!
I
i
i

2,528,365
2,721,534
2,697,170
3,012,406
2,956,130

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Banh at close of business on Fridays, Oct. 26 to Nov. 23, 1917.
In thousands of dollars; i. e., 000's omitted.]

Richmond.
Federal Ileserve notes received
from agent—net:
Oct. 26
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Federal Reserve notes held by
bank:
Oct. 26
Nov. 2
Nov. 9
Nov. 10
Nov. 23
Federal Reserve notes m actual
circulation:
Oct. 26
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Gold deposited with or to credit
01 Federal Reserve Agent:
Oct. 26
Nov. 2
IN OV. S
Nov. 16
Nov.23
j-gper delivered to Federal Reserve Agcni:

Oct. 26
Nov. 2
Xov. 9
Xov. 16
Nov.23

51,251
54,419
55,652
57,612
61,381

315,224
324,232
342,946
349,525
377,878

3,319
3,775
3,305
3,807
3,777

26,426
24,969
28,139
30,044
•16,711

47,932
50.644
521347
53,805
57,004

288,79S
299,263
314,807
319,481
331,167

35,371
37,539
36,182
31,692

63,320
66,939
70,355
I 73,959
j 77,474

San
Minne- Kansas
FranLouis. apolis. City. Dallas. cisco.

Atlanta.

64,215 44,313 ! 47,069
68,723 45,403 49,509
71,514 48,941 52,300
I 73,692 50,267 55,158
| 76,621 53,811 57,758

116,632
120,831
129,431
139,174
147,592

41,322
44,306
45,372
49,856
54,844

40,421
41,287
44,473
45,349
46,321

37,580
39,793
42,456
45,582
46,842

42,906
43,759
44,570
46,915
48,077

2,740
3,242
2,175
2,558
3,912

1,182
1,328
1,224
1,344
1,225

2,997
4,110
4,605
3,504
3,243

232
538
289
444
608

4,574
6,734
6.015
6)679
6,418

55,881
00.283
62)872
06,085
80,395

i 39,239
41,064 j 39,959
43,197 43,249
i 47,298 ! 44,005
! 50,932 | 45,096

34,583
35,683
37,851
42,018
43,599

42,614
43,221
44,281
40,471
47,409

34,560
37,349
41,359
44,852

847,500
881,001
932,512
972,585

3,707
3,784
4,279
3,530
4,323

3,217
3.049
3) 638
3,260
1)934

1,417
1,332
1,972
1,519
2,432

!
!
|
!

1,522
1,485
1,373
1,348
1,184

4,488
5,337
5 858
7,938
10,508

59,613
63,155
86,076
70,429
73,151

60,998
63,074
67,876
70,432
74,687

42,896
44,071
46,969
48,748
51,379

|
I
I
i
!

45,547
48,024
50,927
53,810
56,574

112,144
115,4G4
123,573
131,236
137,024

30,461

187.224 48,220
177.132 51) 749
177) MS ; 4J-) 785
174.225 : 50,529
174,058 150,044

47,715
44,223
47,014
46)192
48,121

i 28,729
| 23,6K
! 32,061
:
31,997
; 31.940

! 40,058
= 39,027
; 36,904
; 39,892
j
43,851

81,372
74,371
86,231
98,474
81,692

25,949
30,957

35,783 14,258 ! 8,886
47,019 : 14,259 I 14,991
43,788 12,036 I 22.076
180,842 !: 23,43c i 27)584: ! 22,966 I 15,294 41,321 : 11,526 :I 19)430
234,763 26)854 j 28,549 29,645 • 14,655 6(3,530 • 16,016 16,475

I
j
i
I
i

Total.

903,387
39,134
941,284
44,083
995,384
47,374
51,531 1,038,620
53,688 1,102,287

I 27,075 35,625 30,020 26,303 26,380
i 30,059 32,491 30,314 26,485 30.129
33,375 i 29,477 30,287 27,772 30)020
38,359 1 29>353 30,209 27,757 31.127
35)784
i 38,847 ! 29,325 30,180 29,039 |35)784

7,380
9,501
12,462
15,634
16,903

17,287
17,942
21,806
20,795
19,164

614,692
602,433
616,254
029,906
623,948

i 13,076 303,704
I 14,385 365,107
19:796 439,202
26)405 431,182
31,870 532,411

988

FEDERAL RESERVE BULLETIN,

DECEMBER 1, 1 9 1 7 .

Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, Oct. 26 to Nov. 23, 1917.
[In thousands of dollars; i. e., 000's omitted.]

Richmond.

New
York.

San
St. Minne-! Kansas |
FranLouis. apolis. ! City. ; Dallas. cisco.

Atlanta.

Total.

FEDERAL RESERVE NOTES.
Received from Comptroller:
Oct. 26
Nov. 2
NOT. 9
Nov. 16
Nov. 23
Returned to Comptroller:
Oct. 26
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Chargeable to Federal Reserve
Agent:
Oct. 26
Nov. 2
Nov. 9
Nov.16
Nov. 23
I n hands of Federal Reserve
Agent:
Oct. 26
Nov.2
Nov.9
Nov.16
Nov. 23
Issued t o Federal Reserve Bank,
less a m o u n t returned
to
Federal Reserve Agent for
redemption:
Oct. 26
Nov.2
Nov.9
Nov.16
Nov. 23
Collateral held as security for
outstanding notes:
Gold coin and certificates on
hand—•
Oct. 26
Nov.2
Nov.9
Nov.16
Nov. 23
I n gold redemption fund—
Oct. 26
Nov.2
Nov.9
Nov.16
Nov. 23

With F e d e r a l R e s e r v e
Board—
Oct. 26
Nov.2
Nov.9
Nov.16
Nov. 23
Commercial and bank paper,
required minimum—1
Oct. 26
Nov.2
Nov.9
Nov.16
Nov23
Total—
Oct. 26
Nov.2
Nov.9
Nov.16
Nov. 23

60,100 59,980 ! 151,440
81,900 64,980 j 155,320
65,600 ! 68; 300 ! 170^80
68,700 ! 69,109 •' 184,120
69,700 i 72,280 ! 191.720

79,880
80,880
80,880
80,880
88,320

532,760 92,440 ! 83,000
541,160 92.440 ! 84,600
560,960 99,240 . 84,600
574,960 101.960 i97,880
590,480 109/180 !

15,029
15,061
15,828
15,868
16, G19

108,016
108,808
109,094
111,915
112,182

14,080 ; 7,845
7,937
14,961
15,045 ••8,146
15,861 ! 8,248
8,319
15,946

6-4,651
65,819
65,052
65,012
71,701

428,74.4
432,352
451,866
463,045
478,298

78,360 76,155 45,993 I50,179
77,479 76,863 47,583 I55,099
84,195 I 76,454 51,161 ' 56,270
86,099 ! 89,632 54,187 59,008
93,534 i 89,561 55,031 62,148

13,400
11,400
9,400
7,400
10,320

111,520
; 108,120
i 108,920
! 113,520
i 100,420

1,680
3,110
15,040 10,940
9,940 ' 2,180
10,540
5,590
4,940 . 2,220
13,840
3,970 ,
12,140 15,940 I
3,850
16,060 ; 12,940 = 1,220 4,390 .

51,251
54,419
55,652
57,612
61,381

:
315,224
i 324,232
i 342,946
I 349,525
: 377,878

63,320
66,939
70,355
73,959
77,474

30,599
32,799
31,509
27,060
25,859

i 177,082
! 167,920
: 157,920
165,460
i 165,400

4,220
4,220
4,220
4,220
4,220

19,321
10,883
13,341
12,592
14,275

2,772
2,740
2,673
2,632
2,602

I 10,142
|
9,512
', 9,226
• 8,885
8,598

3,361
3,480
3,800

3,394
3,340
3,673
3,600
3,846

729
614
561
497
440

2,509
2,429
2,280
2,218
3,178

40,839
44,049
41,889
42,424
42,621

25,000
30,000
30,000
30,000
30,000

28,000
28,000
31,500
31,500
31,500

33,970
33,020
31,020
34,070
37,070

2,000
2,000 !
2,000 •
2,000 i
2,000 !

14,107 j 9,801 !
14.317 ! 9,881 [
U. 439 i 10,030 !
14; 513 i 10,092 i
11,669 10,132

4,908
5,229
5,709
5,766
5,828

57,280
57,280
59,480
59,480
61,480

55,840
55,840
57,780
61,380
I
i
!
i

8,589
8,703
8,717
8,841
9.069

7,468
7,484
7,918
7.934
7.945

146,532 ! 48,372
150,091 i 48,356
164,771 49,882
'• ~ "
178,354 53,446
185', 892 57,734
29,900 ;
29,280 !
35,340 !
39,180 i
38,300 I

118,632
j 64,215 44,313 47, C
; 66,723 i 45,403 j 49,509 120,831
71,514 ! 48,941 ! 52,300 129,431
j 73,692 i 50,267 I 55,158 139,174
I 76,621 j 53,811 i 57.758 147.592

;

3,579 !
3,578
3,604 I
3,604 !
!
:
I
i
!

80,928
73,973
85,899
98,199
81,479

56,720
j 58,720
! 61,720
I 64,740
j 66,740

63,980
64,180
64.180
64', 180
67,540

i 10,460 ! 11; 294
j 10,847 ! 11,401
i 10,884 i 11,800
!
11,163 j 11,615
! 11,198 i 11,653

48,711 I 46,280 52.686
48,577 47,873 | 52'. 779
50,763 50,836 i 52', 580
50,639
"" "~~ 53,577 52,565
52,411 55,542
55542 55,887
55887

44,460
49,460
52,820
57,220
59,420

1,337,680
1,366,760
1,424,040
1,484,600
1,540,720

5,326
5,377
5,446
5,689 !
5,732 j
39,134
44,083
47,374
51,531
53,688

214,903
220,006
222,856
227,505
229,293

1,122,777
1,146,754
1,201,184
1,257,095
1,311,427

7,050
4,050
4,490
3,590

8,290
7,290
6,290
5,290
6,090

8,680 ! 9,780
9,020
8,010
7,995
5,650
8,700 7,810

41,322
44,306
45,372
49,856
54,844

40,421
41,287
44,473
45,349
46,321

37,580 i 42,906
39,793 !
42,456 44,570
45,582 46,915
46,842 48,077

39,134
903,387
44,083
941,284
47,374
995,384
51,531 1,038,620
1,102,287

13,102
13,102
13,102
13,102
13,102

2,270 ! 14,480
I 14,480
14,480
14,480
14,080

267,166
249,495
250,689
243,030
243,111

2,513
2,513
2,513
2,512
2,512 j
444 !
398 !
332 !
275
213

1,502
1,488
1,757
2,042
2,030

! 2,023
i 1,889
j 1,875
! 1,751
1,723

23,060 ! 20,500
26,060 ; 17,500
29,105 14,500
33,805 14,500
34,305 14,500

219,390
205,470
205,800
218,475
209,140

1,990
1,954
1,927
1,849
1,826

2,349
2,331
2,318
2,403
2,185

1,989
1,938
1,869
1,826
1,783

33,204
32,111
32,187
31,843
32,524

26,360
28,360
28,380
28,380
28,360

I 9,474
! 9,674
I 10,974
1 10,874
12,474

24,391
28,191
28,151
29,301
34,001

314,322
320,827
333,378
355,033
348,313
288,695
338,851
379,130
408,714
478,339

15,880
16,880
19,470
25,920
30,920

128,000
146,800
165,800
175,200
203,820

15,100
15,190
20,570
23,430
26,830

j 16,500
I 22,500
! 24,500
! 27,500
; 28,500

15,584
16,789
16,880
18,270
21,871

7,011
35,260 14,247 I 4,796
10,482
46,460 = 14,247
8,796
15,396
43,200 ! 11,997 i 14,996
15,266 I 40,700 i 11,497 ' 15,998
13,907 ! 65,900 15,997 16,996

6,960
9,479
12,169
15,373
16,656

16,603
17,274
16,798
19,158
19,038

12,754
13,954
17,354
20,404
17,904

51,251
54,419
55,652
57,612
61,381

315,221
324,232
342,946
349,525
377,878

63,320
66,939
70,355
73,959
77,474

i 64,215
! 66,723
• 71,514
! 73,692
i 76,621

44,313. j 47,069 i 116,632 ,41,322 ! 40,421
i 41,287
45,403' ! 49,509 i 120,831 44,306
i
48,941 I 52,300 \ 129,431 45,372 I 44,473
50,267 I 55,158 ! 139,174 49,856 45,349
53,811 ! 57,758 j 147,592 ; 54.844 i 46.321

37,580
39,793
42,458
45,582
46,842

42,906
43,759
44,570
46,915
48,077

39,134
903,387
44,083
941,284
47,374
995,384
51,531 1,038,620
1,102,287

'<• For actual amounts see item "Paper delivered to Federal Reserve Agent" on p. 985.

987

FEDEKAL RESERVE BTJLLEIIls.

DECEMBER 1,1917.

EARNINGS

INVESTMENTS OF FEDERAL .RESERVE BANKS.

Average amounts of earning assets held by each Federal Reserve Bank during October, 191.7, earnings from each class of earning
and annual rates of earnings on the basis of October, 1917, returns'.
Average balances for the month of the several classes of earning assets.
Batiks.

Bills bought
in open
market.

Bills
discounted,
members.'

Boston
New York
Philadelphia..,
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas....:....
San Francisco..
Total.

S12,437,992
148,441,362
9,958,904
10,977,699
12,512,358
9,668;476
42,165,165
18,693,029
8,319,100
20,337,478
7,964,720
12,295,108

$24,080,653
81,873,716
15,298,910
20,148,591
5,181,221
2,323,311
8,446,702
3,429,396
2,482,800
2,245,478
7,314,505
5,856,875 |

313,771,389

178,679,958 !

Bills dis- Bills
counted, bought
mem- in open
bers. market.

United
States
securities.

83,295,750 i.
17,298,199
3,740,400
13,474,613 i
3,860,614 !i.
8,467,247
27,523,052 \.
4.161,465 :.
4,352,800 !
11,171,187 i.
6,301,516 I
7,161,113 !110,807,956 ;

Total.
339,814,395
247,744,442
29,005,633
44,611,095
21,554,193
20,535,139
78,134,919
26,283,890
15,166,200
33,754,143
21,627,006
25,312,894

3131,165 !
7,419 |
12,192
70,195 j
11,500 j
"46,'265* |
284,646

603,543,949

Calculated annual rates of earning from—

Earnings from—
Banks,

United States >. Municipal
securities.
warrants.

Municipal
warrants.

United
States
securities.

Municipal

Total.

Bills dis-j Bills
counted,! bought
mem- I in open
bers. ! market.

$124,
664,
84,
124,
66,
65,
226,
79,
47,
98,
65,
79,

Per cent. Per cent. Per cent. Per cent. Per cent.
3.85
3.47
3.03
3.56
3.09
3.53
3.47
3.29
2.6
3.70
3.31
3.06
3.41
4.06
3.73
3.29
2.91
4.62
3.29
3.94
3.44
2.82
3.62
3.86
3.44
3.48
3.66
3.89
3.60
3.32
3.20
3.43
3.79
3.24
2.80
3.58
4.38
3.08
3.68
2.75
4.89
3.97
3.29
3.41
2.41
4.82
3.22
3.65
4.14
2.68
4.07
3.51
3.70
3.23

warrants.

Total.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago.. „
St. Louis.
Minneapolis
Kansas City
Dallas
San Francisco
Total

89,185
49,445
9,738
33,351
9,248
25,900
74,750
9,855
10,111
22,846
13,947
19,619

.,
) 31,988
42,507

$73,218
237,876
43,065
56,422
15,121
7,008
23,788
9,432
6,492
6,845
19,629
17,467

| 922,777

516,363 j 287,996

842,016
377,336
31,328
34,795
41,834
32,765
128,224
60,545
30,791

260

48
"io9
858

1,727,994

3.47

3.40

3.06

3.54

3.37

988

FEDEEAL RESEKVE BULLETIN".

DECEMBB& 1, 1 9 1 7 .

GOLD IMPORTS AND EXPORTS.
Gold imports and exports into and from, the United States,
[In thousands of dollars; i. e., 000 omitted.]
Weekending—
Oct, 26,
1917.

Oct. 19,
1917.

Total since
Jan. 1,
1917.
Nov. 2, ! Nov. 9, i Nov. 16,
1937.

1917.

Total corresponding
period
during
1916.

IKPOBTS.

Ore and base bullion
United States mint or assay office bars.
Bullion, refined
'United States coin
Foreign coin

Total

535

169

247 :

192 |

"653"

1,168
32
12

361 i
326 i

328 !

1,199 !

1,381

934

1,707
1)334

1,466 !
437 i

1 :
503 :
538 ;

3,041

1,903 !

1,042 i

585

38 j

35 :

"35"

13,988
114
391,046
53,692
90,875

11,721
4,009
361,274
3,119
119,486

577

549,715

499,609

210
46,594
38,900
269,572

258
13,736
7,003
71,319

697

355,276

92,316

31
7,076

1,458
19,831

7,107

462

24 i

EXPORTS.

Domestic:
Ore and base bullion
United States mint or assay office bars.
Bullion, refined
Coin

Total..
Foreign:
Bullion, reiined.
Coin
Total

5S5

Total exports.

1,941

1,077

117
1,140
1.2

63
2,351 !

741

21,289
113,605

Excess of gold imports over exports since Jan. 1,1917, §187,332.
Excess of gold imports over exports since Aug. 1, 1914, $1,056,094.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Dec. 4, 1917.
Maturities.
Trade acceptances.

Discounts.

Within 15 .
days,
i including ;
member : 16 to 60
banks' i days.
collateral
notes. '

'Jos ton
New York
Philadelphia...
Cleveland
Bichmond
Atlanta
Chicago
St. Louis
Minneapolis....
Kansas City....
Dallas
San Francisco.,

61 to 90
da vs.

Agricultural and
live-stock
paper
over 90
days.

Secured by U. S. certificates of indebtedness or Liberty Loan
bonds.
Within 15 |
days, in- j
eluding :
member |
banks' i
collateral j
notes.

ltoSO j 61 to 90
days, ! days,
inclusive. i inclusive.
16 to 90
days.

^ j
3

'•

3$ \

8!
1!
3i

3-V i
4" !

4
4
4
4
4
4
4
4
4

Nct;e 1.—Rase lor. acceptances purchased in open market, 2£ to 4 per cent, except for San Francisco, whose rate ranges from 2%%o 4& per cent.
Note 2.—Rates for commodity'paper have been merged with, those for commercial paper of corresponding maturities.

INDEX TO VOLUME 3,
Page.

Abrasion of gold coin caused by USB O! coin-counting
machines
".
440,930
Acceptances:
Acceptance of drafts with documents attached . 765
Advertising space, acceptances based on
114,116
Allied purchasing commissions, drafts drawn
for purpose of financing sale of goods to
878
Applications to accept up to 100 per cent, resolution of Board regarding
658
Bankers' acceptances—
Drawn against shipment of goods from a
corporation to its branch or agent
690
Growth in use of
5,6,350,664
Regulations of Board regarding
540,541
Report of committee of Federal Reserve
Agents on
6
Bank's own acceptance, purchase of
28,691
Bills of exchange—
Drawn against actually existing value
195
Indorsement on
."
457
Payable with interest, negotiability of....
200
Regulation of the Board regarding
539, 541
Bullion and coin, bills drawn against
29
Chart showing amount held by Federal Reserve
Banks, 1915-16
56
Demand and sight bills, presentation for payment
31
Differential as to
28
Distribution of, by sizes, maturities, etc
63,141,
222, 319,412,487, 565, 641, 717, 815, 816,905, 977
Drafts or bills of exchange drawn for the purpose of creating dollar exchange, regulation
of Board regarding
542
Drafts or bills of exchange drawn against shipment of goods or secured by warehouse
receipts, regulations ol" Board regarding....
542
Draft drawn by purchaser of goods and secured
by bill of lading.
380
Drafts drawn on or before 90 days after sight.. 949
Drafts payable on or before a certain date, eligibility of, for discount.
291
Drafts payable with interest, negotiability of..
200
Drawn to"finance future importation of goods.. 527
Growing out of importation or exportation of
goods
28 .
Growth of the bank acceptance business
5, I
6,350,664 |
Limitations imposed by section 5200, II. S., and
section 13 of Federal Reserve act
28,
193,286,528, 696,879,881
List of banks granted authority to accept up to
100 per cent
859, 746,839, 941
Member bank's own acceptances, purchase of.. 28,691
Place of payment of
289, 379
Regulations of Board regarding
539-542
Shipment of goods from a corporation to its
branch or agent, eligibility of acceptance 950
drawn against
690
Stamp tax on
950

Page,

Acceptances—Continued.
State laws affecting bank acceptances, abstract
of
529-533
TradeAddresses on
9,10,243-245
Amounts discounted by Federal Reserve
Banks, statements showing
61.
139, 221, 317,408,486, 565,637, 716, 814,902, 977
Bills payable with exchange and collection
charges, negotiability of
830
Conference of National Credit Men's Association held in New York for discussion of
243
Form of
378
Growth of the trade acceptance business. 157,657
Inquiry by Board into use of, by business
houses
."
657
Report of committee of Federal Reserve
agents on promoting use of
8
Regulation of the Board regarding.,
540, 541
Trust receipts as security tor acceptance transaction
881
Warehouse receipts issued independent of the
borrower
30
Accounting plan submitted by Federal Reserve
Board and Federal Trade Commission
21, 270
Act, Federal Reserve. (See Federal Reserve Act.)
Acts passed by Congress:
Bondissues.
248, 345,749
Permitting the issuance of national-bank notes
of small denominations
837
Trading with enemv
851-860
War revenue acts. .1
248, 345, 749, 868-877
(See also Federal Reserve Act, amendments to.)
Advertisements of "clearing'' members
879
Advertising space, acceptances based on
114,113
Advisory committee of member banks, status of.
under section 8 of Clayton Act
118
Advisory Council. (See Federal Advisory Council.)
Agencies and branches. (See Branch agency;
Branch banks; Foreign branches.)
Agricultural paper
:
114, 540, 616, 890
Method of classifying
114
Regulation of the Board regarding
549
Statements showing amounts held by Federal
Reserve Banks
221,
317, 408,486, 565, 638, 717, 814, 902, 973
Aiken, Alfred L., report by, summarizing operation
of clearing and collection system in the Boston
district
- - - 162
Aliens, enemy, instructions of Board to Federal
Reserve Banks relating to transactions of American banks with
431, 655
(See also Trading with the enemy.)
Allied purchasing commissions, drafts drawn for
purpose of financing sale of goods to
878
Allied Governments, loans made bv the United
States to, April-September, 1917
731
989

§90

FEDEBAL RESERVE BULLETIN.

Amendments to Federal Reserve Act. (See Federal
Reserve Act, amendments to.)
American Bankers Association:
Offering services in connection with bond issue. 438
Resolution urging amendments to State laws
permitting deposit of reserves of trust companies with Federal Reserve Banks
335
American Trust & Savings Bank, Birmingham, Ala.,
statement of. regarding membership in system
370
Annual report (1916) of the Comptroller of the Currency, synopsis of
172
Assets of Federal Reserve Banks, changes in, January-September, 1917
758
Chart showing
759
Attorney General, opinions by:
Construing section 8 of Clayton Act regarding
interlocking directorates as affecting Statebank members
744
Income tax on dividends made payable in
Liberty bonds
601
Austria-Hungary:
National debt of, since outbreak of war
18
War loans raised by
349
Baltimore, establishment of branch bank in,
deferred
440
Bank failures during past 3 years compared with
preceding 33 years
939
Bank of England:
Foreign agency established with
5
Statements showing condition of.234, 329, 500, 681, 943
Bank of Eufaula, Eufaula, Ala., statement of,
regarding membership in system
365
Bank of France:
Branch agency established with
175
Statements showing condition of .234, 329, 500, 681,943
Bank of Italy, statement showing condition of
681
Bank of Japan, statement showing condition of.... 682
Bank of Leweilen, Leweilen, Nebr., statement of,
regarding membership in system
367
Bank of Montclair, Montclair, N. J., statement of,
regarding membership in system
356
Bank of Netherlands, statement showing condition
of
681
Bank of Spain, statement showing condition of
682
Bank of Wisconsin, Madison, Wis., statement of,
regarding membership in system
362
Bankers' acceptances. (See Acceptances, Bankers'.)
Belgium, loans made to, by the United States, AprilSeptember, 1917
731
Belligerent nations, national indebtedness of
10-19
Bills of exchange:
Drawn against actually existing value
195
Indorsement on
457
Payable with interest, negotiability of
200
Regulation of the Board regarding
539, 541
Bill of lading:
Draft drawn by purchaser of goods and secured
by bill of lading
380
Drafts for collection
114
Bonds of Federal reserve agents and assistants
decreased
615
Bonds secured by real estate as investment by a
national bank
456
Bonds, United States. (See United States bonds;
Liberty bonds.)
Branch agency at Memphis, Tenn., report on
168
Branch agencies, foreign, establishment of:
Bank of England
5
Bank of France
175
Philippine National Bank
239

DECEMBER 1,1917.

Branches of Federal Reserve Banks:
Branch at Baltimore, decision deferred
440
By laws for
586,935
Directors chosen for branches at Omaha and
Spokane
586
Established at Spokane, Y/ash., and Omaha,
Nebr
'.
586
New plan for establishment of
923
Proposed establishment of, in Portland, Seattle,
and Spokane
339
Proposed establishment of, in Pittsburgh and
Cincinnati
923
Branches, foreign, of national banks:
Not regarded as independent corporations
198
Real estate loans by
952
British short-time Treasury bills, statement of Secretary of the Treasury regarding
652
Broadway Trust Co., New York City, statement of,
regarding membership in system
360
Bullion and coin, acceptances against
29
Business conditions throughout the Federal Reserve districts
33-56,
119-134, 202-219, 293-315, 381-403,460-482, 551561, 620-633, 698-714, 796-811, 883-899, 958-975
By-laws for branches of Federal Reserve Banks.. 586,935
Cable transfers, comparative rates to principal neutral places in Europe
582. 683
Canadian short-term credit, statement issued by
, Secretary of the Treasury regarding
603, 652
Capital stock of Federal Reserve Banks:
Payment of stock subscription pending application for membership
287
Regulation of Board regarding increase or decrease of
548
Surrender of, by liquidating bank
457
Tax on, opinion by judge of United States
district court of Ohio regarding
955
Transfer of stock to a national bank acquiring
assets of a liquidated bank
199
Cattle, eligibility of paper secured by loans on
378,
690,763
Cattle raisers, letter of Board regarding interest
rates on loans to
659
Central State Bank, Dallas, Tex., statement of, regarding membership in system
364
Central Trust Co. of Illinois, Chicago, 111., statement
of, regarding membership in system
368
v .
Certificates of indebtedness. (See Treasury certificates of indebtedness.)
Certificates, war savings. (See War savings certificates.)
Charters issued to national banks. (See National
banks, charters to.)
Charts:
Annual and monthly price of silver and value
of pure silver in a silver dollar
844, 845
Assets of Federal Reserve Banks, changes in,
January-September, 1917
759
Clearing-house operations, 1914-1917; also check
collections of Federal Reserve Banks, 1916-17 635
Commercial paper, acceptances, and other investments held by Federal Reserve Banks,
1915-16
56
Course of dollar and sterling exchange on principal European neutral places
688,689
Deposit liabilities, reserves held in vault and
with Federal Reserve Banks, and reserve
percentages of national banks, 1914-1916. -. - 232
Deposits of Federal Reserve Banks, movement
of, during 1917.--.849

DECEMEEB 1,1917.

INDEX TO VOLUME

Charts—Continued.
Exchange rates in belligerent, neutral, and
silver-standard countries
408
Federal Reserve note circulation, movement
of, during 1917
849
Federal Reserve notes issued and cover of gold
and paper held by Federal Reserve Agents. 610
Gold holdings of Treasury, national banks,
Federal Reserve .Banks, and Federal Reserve
Agents, 1914-1916
233
Gold reserve of principal European banks of
issue, 1913-1916
7
332
Money in circulation, 1914-1917
563
Note circulation of principal European banks of
issue, 1913-1916
333
Principal changes in condition of European
banks since outbreak of war
944,945
Reserve and net deposits of Federal Reserve
Banks, 1915 and 1916
56
Reserves of Federal Reserve Banks, movement
of, during 1917.
848
Reserves of national banks, 1915-1917
484
Silver, movement in price of
483, 484
Error in numbering charts
925
Treasury certificates, first nine issues of, relative contributions of the several Federal Reserve districts
846
Check clearing and collection:
Advertisements of "clearing" members
879
Amendment to Federal Reserve Act regarding,
interpretation of
657,660
Attitude of a country banker on the exchange
question
740
Checks payable in exchange not authorized... 763
Circular letter of Federal Reserve Bank of New
York in connection with collection of maturing notes and bills
743
Clearing-house operations, 1914-1917; also check
collections of Federal Reserve Banks, 1916-17 634
Chart showing
635
Collection of maturing notes and bills... 658,661, 743
Circular of New York Federal Reserve
Bank regarding
743
Operation of the system
80
In the Boston district
162
Regulation of the Board regarding
549
Report of committee of governors on plan for
immediate availability of drafts
78
Summary of transactions, by months
6,
il5,171,268,354,455, 524, 613, 680,762, 841. 948
Christmas gifts, substitution of war-savings certificates for gold coin for use as
931, 951
Circulars and regulations of the Federal Reserve
Board. (See Regulations.)
Citizens State Bank, Memphis, Tenn., statement of,
regarding membership in system
371
Clayton Act:
Opinion of Attorney General regarding interlocking directorates as a,ffecting State bank
members
744
Permission granted by Board to serve as director
under, is continuing and good until revoked. 763
Substantial competition within meaning of.... 878
Clearing of checks. (See Check clearing and collection.)
Coin, bullion, and currency, regulations governing
export of
736-739
Coin-counting machines, use of, discouraged
^ 440,930
Collateral notes of member banks, amounts discounted by Federal Reserve Banks, statements
showing
61,139,
221. 317,408,486, 565, 637,716,814,902,977

991

Commercial failures throughout the United States:
By months
19,
113,167,267,374,440,520, 604, 677, 747,864, 940
In 1916....'
113
Commercial paper:
Amounts discounted by Federal Reserve Banks,
statements showing
57-66,135-144.
220-225, 316-321, 407-411,485-490. 563-567^
636-644, 715-721, 812-819, 900-909, 976-982
Amounts discounted for 3 months ending—
March, 1917
409
June, 1917
639
September, 1917
903
Amounts held by Federal Reserve Banks each
month, statements showing
62,140,
221,317,408,486,565, 638.717,814,902,978
Cattle paper
378,690.763
Chart showing amounts held by Federal Reserve
Banks, 1915-16
'.
56
Discount of paper for use in trading ixi United
States bonds or notes
158
Equity exchange, paper of
379
Fifteen-day notes of member banks, renewal
of
765
Participation certificate, rediscount of
949
Public-service corporation paper, [eligibility
of
949
Short-term paper advocated
733,739
Short-term paper, renewal of
879
Standardizing, resolution of Portland. Oreg..
clearing-house banks regarding
930
Commercial Trust & Savings Bank, Joliet, 111.,
statement of, regarding membership in system... 361
Commissioner of Internal Revenue, rulings of:
Federal Reserve Banks not subject to tax upon
charges for telephone, telegraph, and express
service
, 931
Tax on income from Liberty bonds
459,930
Tax on promissory notes
950
Commodity paper:
Amounts discounted by Federal Reserve Banks,
statements showing
61,139,
221, 317, 408, 486, 565, 637, 716, 814,902,977
Regulation of the Board regarding rediscounting of
540
Commonwealth Trust Co., Boston, Mass., statement of, regarding membership in system
362
Comptroller of the Currency:
Annual report of, synopsis of
172
Call for reports of condition of national banks,
changes in
604
v
Condition of national banks as shown by calls
of
161, 372, 665
Corn Exchange Bank, New York City, statement
of, regarding membership in system
. .^
359
Counsel of Federal Reserve Board, opinions of.
(See Law department.)
Coupons on United States bonds, instructions for
handling
938
Currency:
Custody of gold, lawful money, and Federal
Reserve notes held by Federal Reserve
Agents
691
National-bank notes of small denominations,
act authorizing issue of
837
National-bank notes and Federal Reserve notes
issued and redeemed during year
667,941
Regulations governing export of
736-739
Shipment of
615
Silver, monthly movement in price of
842

992

FEDERAL RESERVE BULLETIN..

Page.

, 1917.

Page.

Employees of Federal Reserve Banks:
Delaware, laws of, authorizing national banks to
exercise trust powers
697
Exemptions from military service not sancDenmark, National Bank of Copenhagen, statetioned by Board
591
ment showing condition of
082
Group insurance covering
28
Department of Agriculture, tabulated reports by, on
Enemies, alien, instructions of Board to Federal
credit, needs of farmers..'
'.
937
Reserve Banks relating to transactions of
Deposits:
American banks with
431, 655
Chart showing deposits of Federal Reserve
(See also Trading with the enemy.)
Banks during years 1915-16
56 England. (See United Kingdom.)
Federal land bank deposits with Federal ReExamination of national banks, payment for
374
serve Banks
379, 881 Examination of State banks, instructions to Federal
Government—
Reserve Agents in connection with applications
Banks not required to maintain reserves
for membership
592-594
against
458 Examiners, national-bank. (See National-bank exDeduction of, in determining amount
aminers.)
against which reserves must be carried.. 692 j Exchange rates in foreign countries
156,
Held by Federal Reserve Banks
847-850
328,405,576,582,683
Chart showing
.
849
Chart showing
406
Nonmember banks' deposits,rulings regarding. 617,951 Executive orders:
Statement of Secretary of the Treasury regarding
Exportation of coin, bullion, and currency.. 736-739
nonconfiscation of
931
Regulations for carrying out provisions of the
Withdrawal of, by foreigners
154
trading with the enemy act
860-863
Description of Federal Reserve districts
668 Expenses of Federal Reserve Banks. (See Earnings
Directors of branch banks at Spokane and Omaha,
and expenses.)
appointment of
586 Expenses of Federal Reserve Board. (See Federal
Directors of Federal Reserve Banks:
Reserve Board, expenses of.)
Classes A and B, election of
7,8 Export licenses in the foreign trade:
Instructions regarding
742
Export license lists. .583-584, 672-675,755-757,864-868
Class C, appointment of, for year 1917
7
Forms of application
585,674-676
List of, whose terms expire Dec. 31, 1917
743
Executive order defining rules for carrying out
Term of office
290
provisions of law
582,672
Directors of national banks, loans to, under section
Exports council. Executive order creating
582
22 as amended
614,695, 763,929 Exports of coin, bullion, and currency, regulations
Discount, method of computing
951
governing
738-739
Discount operations of the Federal Reserve Banks,
Failures:
statements showing
57-66,135-144,
Bank, during past 3 years compared with pre220-225, 316-321, 407-411, 485-490, 563-567,
ceding 33 years... .*
939
636-644, 715-721, 812-819, 900-909, 976-982
Commercial. (See Commercial failures.)
Discount rates:
Advance in, advised by Board
922 Farm land:
Loans on improved
613
Establishment of rate for short-term notes seRegulations of the Board regarding loans o n . . . 548
cured by Liberty bonds
425,429
(See also Real estate.)
In effect, by months
74,152,
231, 327,421,496, 575, 650, 728, 825, 916, 988 Farmers, reports tabulated by Department of Agriculture
on credit needs of
937
Revision and standardization of
235,241
Federal Advisory Council:
Dividends:
Meetings of
340, 92.1
Declared by Federal Reserve Banks
4, 507
Recommendations of, on amendments to act. 106-109
Rights of liquidated national bank to accrued.. 117
Dollar exchange:
Federal land banks, deposit of funds of, in Federal
Drafts drawn for purpose of creating, regulation
Reserve Banks..'.
379, 881
of Board regarding
T
542 Federal Reserve Act:
Rates in European countries
156, 582, 683
Amendments to—
Drafts:
Act as signed by President
511-518
Federal Reserve. (See Federal Reserve drafts.)
Amendments re State bank membership
Payable on or before a certain date, eligibility
remtroduced in Congress
*. 336
of, for discount
291
Check clearing and collection, interpretaImmediate availability of drafts at par, report
tion of amendment regarding
657,660
of committee of governors on plan for
78
Comparative Senate and House bills as inDrafts, notes, and bills of exchange:
troduced in February, 1917
177-187
Regulations of the Board regarding rediscount
Senate and House reports
188-192
of...
...
539,541
Effect of proposed amendment to section 19
u
Earmarking" of gold for foreign account
733
of act regarding reserves
109,285
Earnings and expenses of Federal Reserve Banks:
Hardwick amendment relating to check
For year 1916
89-93
clearing, interpretation of
660
For 6 months ending June 30, 1917
605-609
Letter of Board regarding new reserve reEarnings on investments of Federal Reserve Banks,
quirements
508
statements showing
73,151,
No action taken by Sixty-fourth Congress.. 235
230, 326,420,495, 574, 649, 727, 824, 915, 987
Proposed amendment authorizing banking
Election of directors of Federal Reserve Banks.
corporations to do a foreign banking busi(;SW'JDirectors.)
ness
450

DKCBMBBR 1,1917.

INDEX TO VOLUME 3.

998

PageFederal Reserve Act—Continued.
Page. Federal Reserve Banks—Continued.
New form of weekly statement
506
Amendments to—Continued.
New York Federal Reserve Bank, letter of,
Recommendations of Federal Advisory
with respect to banking cooperation in conCouncil on
106-109
trol of gold supply
659
Reprint of bill as adopted by the House and
Profit and loss account of
92
Senate
1
441-449
Relation of, to Subtreasuries, letter of Secretary
Section 22, interpretation of
614,694
of Treasury regarding
110-112
Submitted to Congress bv Board in DecemStock in, transfer of, to a national bank acquirber, 1918
."
98-106
ing assets of a liquidated bank
199
Synopsis of amendments as passed
501-503,
509-511 Federal Reserve Board:
Approval of plan for immediate availability of
Text of amendments as passed
511-518
drafts at par
78
Litigation involving constitutionality of secCollaboration with Federal Trade Commission
tion 11 (k)
'.
32
on accounting plan
21,270
Section 22, interpretation of
30,614,694
Conference with Federal Reserve Agents
4
Synopsis of amendments as oassed
501-503,
Employees of, exemption from military service.
591
509-511
Expenses of, assessment for—
Federal Reserve Agents:
Jan.-June
23,24
Bonds of, decreased
615
July-Dec
525,526
Conferences with Board
4
Harding, Hon. W. P. G., redesignated as
Gold and paper held by, against issue of Federal
governor
659
Reserve notes
'..".
610
Instructions regarding new reserve requireJoint custody with Federal Reserve Banks of
ments under amendments to act
508
gold, lawful money, and Federal Reserve
instructions to Federal Reserve Banks regardnotes
'.
691
ing transactions with enemy aliens
431,655
Report of committee on bankers' acceptances..
6
Receipts and disbursements of, for year 1916 . . . 87,88
Report of committee on promoting use of trade
Rediscounting privileges granted to nonacceptances
*.
8
member banks by, for use in meeting deFederal Reserve Agents' fund, summary of transmands caused by subscriptions to Liberty
actions under
27, 97,
loan
426,430
176,269,354,455,524, 612,680, 761, 841,948
Regulations issued by. (See Regulations of the
Federal Reserve Banks:
Federal Reserve Board.)
Agency at Memphis, Term., report on
168
Resolution regarding applications to accept up
Assets of, changes in, January-September, 1917.
758
to 100 per cent of capital and surplus
658
Assistance rendered in floating the Liberty loan. 497,
United States bonds, resolution regarding
577, 580, 588
quarterly allotment of
5
Branch agencies, foreign—
Warburg, Hon. P. MM redesignated as vice
Bank of England
5
governor
659
Bank of France
175
Philippine National Bank
239 Federal Reserve Bulletin:
January
1-74
Branch banks—
February
75-152
Branch at Baltimore, decision deferred
440
March
153-234
By-laws for
586,935
April
235-334
Directors chosen for branches at Omaha and
May
335-422
Spokane
586
June
423-496
Established at Spokane, Wash,, and
Omaha, Nebr
586
July
497-576
Proposed establishment of, in Portland,
August
577-650
Seattle, and Spokane
339
September
651-728
Proposed establishment of, in Pittsburgh
October
729-826
and Cincinnati
1
923
November
827-916
Capital stock of. (See Capital stock.)
December
917-1000
Condition of, compared with principal foreign
Bound copies of
158
banks
~.
681 Federal Reserve districts:
Deposits held by
847-850
Counties in divided States
668
Chart showing
849
Description of
668
Deposits of Federal land banks with
379, 881
Population of
668
Deposits by nonmember banks in
617 Federal Reserve drafts:
Directors of. (See Directors of Federal Reserve
Forms of
349
Banks.)
Instructions regarding use of
337-349,440,591
Postponement of date on which plan was to beDividends declared
-. 4,507
come effective
440
Earnings and expenses of—
For year 1916
89-93 Federal Reserve notes:
Amount in circulation during 1917
847-850
For 6 months ending June 30, 1917
605-609
Chart showing
849
Employees of, exemption of, from military
Amount issued during 1917 and cover of gold
service
591
and paper held by Federal Reserve Agents..
610
Furniture and equipment, etc., cost of
93,608
Chart showing
610
Insurance, group, covering employees of
28
Amount issued and redeemed during year... 667,941
Joint custody, with Federal Reserve Agent, of
gold, lawful money, and Federal Reserve
Cost of unissued
*
93,609
notes
691
Distribution of, to mints and subtreasuries-. 155,237

994

FEDERAL RESERVE BULLETIN".
Page.

Federal Reserve notes—Continued.
Federal Reserve note account of each Federal
Reserve Bank and agent each week--o9,147. 22$,
324,418, 492, 572r 647, 725, 822, 912, 985
Increase in cost of
743
Interdistrict movement of
648, 914
Note-Issuing capacity of Federal Reserve Banks 1.55
Paper drawn for purpose of trading in Government obligations, eligibility -as collateral for
issue of
45?)
Plan for forwarding unfit notes to Washington
for redemption
82, 242
Substitution of collateral, letter of 13card regarding
351
Unfit notes, shipment of, to Washington for
redemption
-'
82, 242
m
Use of note ernbloni on stationery not permissible
191
" Federal Reserve Svstem and the War," article by
Hon. W. P. G.-Havding
588
Federal Reserve System:
Private banks, membership of
093
Statements by State banks and trust companies
when joinin-:;
355, 596, 667, 834
Views oil Texas banker regarding operation of
system
i 59
VieVs oi" 32 State banks regarding advantages
of membershi p in
355-372
Federal Trade Commission, collaboration with
Board on accounting plan
2 i, 270
"Federal," use of the word, as part of title of member bank
615
Fiduciary powers:
Laws passed authorizing national banks to
exercise trust powers—
Delaware
528
Georgia
767
Washington
697
p
List of national banks granted fiduciary powers.
20,
115,167, 267, 375, 440, 507, 604, 678, 746, 889, 941
Litigation involving constitutionality of section
11 (k) of act . . . /.
.*
32, 254, 534
Argument of counsel before Supreme
Court of the United States
."
254
Decision of Supreme Court
534
Regulations of Board regarding granting of
trust powers to national banks
1... 545
States in which national banks mav exorcise,
under section 11 (k) of act
.". 30, 528, 697, 7o7
First Guaranty State Bank, Pittsburg, Tex., statement of, regarding membership in system
371
First State Bank, '"Bonham, Tex., statement of,
regarding membership in system
- 364
First State Bank. Dallas, Tex", statement of, regarding membership in system
356
First State Bank, Hamlin, Tex., statement of,
regarding membership in system
389
Food administrator, suggestions as to interest rates
to cattle raisers
.'
659
Foreign agencies, establishment of:
Bank of England
5
Bank of France
175
Philippine National Bank
239
Foreign banks:
Comparative statement showing condition of
Federal Reserve Banks and leading central
banks of issue
681
Statements showing condition of principal
European banks of issue
234,329. 500, 681,942

DECEMBER 1,1917.

"Page.

Foreign branches of national banks:
Not regarded as independent corporations
198
Real estate loans by
952
Foreign exchange rates *
156, 328, 405, 576
Chart showing
406
Foreign Governments, loans made by the United
States to, from Apr. 25 to Sept. 20, 1917
731
Foreign nations, public debt of
10-19
Foreign securities:
Investments in
_
2, 82, 236, 239
Address of Gov. Harding at Boston regarding
2
Letter to a national bank outlining policy
of Board on
82
Foreign war loans raised by belligerent countries. 349, 351
Foreigners, withdrawing of bank deposits by
154
Forms:
Export license
585, 674-676
Federal Reserve drafts
349
Trade acceptance
378
Fort Scott State Bank, Fort Scott, Kans., statement
of, regarding membership in system
366
France:"
Bank of France, statements showing condition
of
'.
234, 329, 500, 681,943
Branch agency of Federal Reserve Banks established at Paris
175
Loans made by the United States to, AprilSeptember, 1917
'.... 731
National debt of
11-13
War loans raised by
349
Franking privilege in correspondence relating to
bond issue
439
Georgia, law passed by Legislature of, authorizing
national banks to exercise trust powers
767
Gorman-American Bank, Minneapolis, Minn., statemerit of, regarding membership in system
357
Germany:
Amounts subscribed to fourth and fifth war
loans
351
National debt of
14-18
Statements showing condition of German
Reichsbank
."
234, 329, 500, 681,946
War loans raised by
349, 351
Gold:
Abrasion of coin caused by use of coin-counting
machines
440, 930
Control of supply oi'
1, 2, 659
Cooperation of State banks in New York with
respect to control of
659
''Earmarking" of gold for foreign account
733
Imports and exports of
71,
149, 229, 327, 422, 496, 575, 650. 728, 825, 916, 988
Regulations governing export of
736-739
Use of gold coin for Christmas gifts discouraged 931,951
Shipments of, to foreign countries
655
Gold settlement fund:
Audit of
611
Change in operation of fund caused by amendment to act
521
Circular letter issued by Treasurer's office regarding change in operation of fund
522
Expense of operation
94
Question as to extension of fund
238
Summavv of transactions under
25.
95,175, 268, 353,454, 524, 611, 678, 760, 840,947
Government deposits:
Banks not required to maintain reserves against. 458
Deduction of, in determining amount against
which reserves must be carried
692

DF.CKMBHR 1, 1017.

JTSTD.KX TO V O L U M E 3 .

Page.

995
Page.

Governors of Federal Reserve Bauks:
Informal rulings of the Federal Reserve Board—Con.
Meetings of.
7. :M7. 921
Clayton Ac:t—
Report of committee on plan for immediate
Permission granted by Board to serve? as
availability of drafts
'.
78
director under, is continuing and £oo(.l
Great Britain. (See United K/ingdom.)
viiitil revoked
763
Guardian Trust & Savings Bank. Toledo, Ohio.
iSii bstanlial compei-ition within meaning of.
878
(
statement of, rc3ga.rdi.ng memborehi.p in system :>(•}•••!
'u'-reiicy, shipment of, to cover reserves
6"J5
Harding. Hon. W. F . G.:
Cnsf.ody' of gold, lawful money, and Federal
Address at Boston, regarding investments in for'Reserve notes held hy Federal Reserve
eign obligations
2
Agents
'
69J
.Article by. on " T h e Federal Reserve Systern
Demand notes, eligibility of, for rediscount...
527
and the War"
."
588
Directors of national banks, loans to. under secMessage of. to COD. vent ion. of North Carolina
tion 22 as amended.
'.
(VI4, 763
bankers, business men, etc
"159
Discount, method of computing
951
Redesigns, tec! as governor of Federal Reserve
Equity exchange, paper of
379
Board
659
Federal land banks, deposits by, in Federal ReTrip to western Staix-s m behalf of -first Libertv
serve Banks
379
Loan
\
429
*: Federal," use of the word, as part of the
Harris, B . D., vice president of National City Bank
title of member bank
615
of New York, address of, on trade acceptances...
245 ;
Federal Reserve agents and assistants, bonds
Hibernia Bank & Trust Co.. "Mew Orleans, La..
of, decreased
(VI5
statement issued by, when joining the system..
067 \
Fiduciary powers. States in which, banks may
Idaho Banking Department, statement issued by.
•
exercise, under section 11 (k) of act
30
regarding State-bank membership
599
Indorsement on bill of exchange.
457
Imports and. exports, gold. (See Gold imports and
Insurance, group, covering employees of Federal Preserve Banks
28
exports.)
Income tax on investments in Liberty bonds,
Limitations under section 5200, It. S., and secopinion b y Attorney General mid Commissioner
tion 13 of act
'
' . . . 193, 280. 879
liquidated bank, surrender of stock subscripof Internal Revenue regarding
459, 60L 930 ;
tion by
157
Inflation of currency and its effect upon rise 'in
I
prices, from London Economist.
375 :
Loans to directors of national banks, under section 22 as amended
614, 76'>
informal rulings of the Federal Reserve Board:
Acceptances—
Morris plan bank, ruling as to directors of, under
Clayton Act and Federal Reserve Act
527
Allied purchasing commissions, drafts
drawn for purpose of financing sale of
Mutual savings bank, eligibility of, for membership
950
goods to
878 I
Bankers' acceptances drawn against ship!
Monmeinber banks, deposits with
951
Paper of a waterworks company
527
ment of goods from, a corporation, to its
branch or agent
T
.*. 690
Participation certificate, rediscount of
949
Bank's own acceptance, purchase ox
28, 691 '.
Public-service corporation pivper, eligibility of. 1)49
;
Based on advertising space
114
Potatoes as security, superseding ruling of Nov.
Bullion and coin, bills drawn against
29
10, 1935
'-...-" . . . v -'"614
Differential as to
.'
28
Real estate, bonds secured, by, as investment
Drafts drawn on or before 90 days after
for national bank
456
sight-..-.
'.
949
.Real estate loans, national banks subject to
Drawn to finance the future importation of
limitations imposed by section 24 of act
61; 1
goods
527 .
Renewal of short-term paper
879
Growing out of importation or exportation
Kerarve balances
285
of goods
.*
28
Reserves, computation ox
614
Limitations imposed by section 5200, R. S..
.Section 22 of act, interpretation of
30, 614, 763
and section 13 cf Federal Reserve A c t . . 28,
Section 5200 11. S. and section 13 of act, limita193, 286; 879
tions under
193, 286, 879
Member banjos own acceptances, purchase
Shipment of goods from, a corporation to its
of
28,691
branch or agent, eligibility of acceptance
Place of payment of acceptances
379
drawn against
690
Stamp tax on
950
Short-term paper, renewal of
879
Trade
287,378
State banks, conversion, of, into national banks . 690
Warehouse receipts as security
30 :
State bank mem.bersMp,*TulingsTegarding... 764, 950
Advertisements of " c l e a r i n g " members
879
Stationery, use of Federal Reserve note emblem
Agricultural and live-stock paper, method of
on, not permissible
'194
classifying
1.14 !
Slock subscriptions, payment of, pending approval of application for membership
287
Bill of exchange, indorsement on
457 ;
Tax, stamp, on acceptances
050
Bill of lading drafts for collection
I'M ;
Bonds of Federal Reserve agents &n& assistants
;
Tax, on promissory notes
950
Trade acceptance," form of
378
decreased
615 !
Treasury certificates and bonds as security
457
Bonds secured by real estate as investment for
United States 2 per cent bonds, purchase of
879
national bank
156
War Department obligations, purchase of, by
Capital stock, surrender of. by liquidated
member banks
\
288
bank
457
Cattle paper
378, 763, 690
'War-savings certificates as Christmas gifts
951
Checks payableJn exchange not authorized...
763
Warehouse receipts, paper secured by
456

996

FEDERAL EESEBVE BULLETIN.
Page.

DECEMBER 1,1917.

Page.

Informal ruling3 of the Federal Reserve Board—
Law department—Continued.
Continued.
Federal Reserve notes, paper drawn for purpose
Warrants, purchase of
29
of trading in Government obligations is eligiIn excess of the 25 per cent limit
1.94
ble as collateral security of
459
Nonnegotiable
193
Fifteen-day paper of member banks, renewal of. 765
Insurance agents, regulations under which national
Fiduciary powers, laws passed authorizing nabanks may act as
164
tional banks to exercise—
Insurance companies, licensing of, under trading
Delaware
528
with the enemy act.
838
Georgia
767
Insurance, group, covering employees of Federal
Washington
697
Reserve Banks
28
Government deposits—
Interlocking directorates. (See Clayton Act.)
Banks not required to maintain reserves
Italy:
against
458
Bank of, statement showing condition of
681
Deduction of. in determining amount
Loans made by the United States to, Apr.against which reserves must be carried.. 692
Liberty bonds—
Sept., 1917..'
731
War loans raised by
349
Taxability of income from, ruling of ComJapan, Bank of, statement showing condition of
682
missi oner of I ntcrnal Revenue regarding. 459
Note issued by bank to replace funcls with•Tones, Breckinridge, statement issued by, regarding
drawn to purchase, is not eligible for remembership of Mississippi Valley Trust Co
596-598
discount
954
Law department:
Acceptances—
Liquidated national bank, rights of, to accrued
Acceptance of drafts with documents atdividends
117
tached
765
live stock, paper based on
616
Demand and sight bills, presentation for
Member-bank acceptances, limitations imposed
payment
31
by section 5200, R. S
696
Draft drawn by purchaser of goods and seNational banks—
cured by bill of lading ia not eligible for
Foreign branches of—
acceptance
380
Not regarded as independent corporalimitations imposed by section 5200 U.S. 528, 696
tions
198
Limitations on member-bank acceptances
Real estate loans by
952
under section 13 of act
528
Usurious charges by
292
Place of payment of
289
Negotiable paper, bills payable with collection
State laws affecting bank acceptances, abcharges not classed as
880
stract of
529-533
Nonmember banks, deposits by, in Federal
Trust receipts as security for acceptance
Reserve Banks
."
617
transaction
881
Notes and bills drawn for purpose of trading in
Advertising space, acceptances based on
116
Government obligations, eligibility as collatAdvisory committee of member banks, status of,
te'ral for Federal Reserve notes
459
under Clayton Act
•
118
Paper secured by mortgage on real estate, eligiArgument of counsel before Supreme Court in
bility for rediscount
458
case brought to test constitutionality of secPrivate bankers as members of the Federal
tion 11 (k) of act
254
Reserve System
693
Bills of exchange drawn against actually existReal estate, paper secured by mortgage on,
ing value
195
eligibility for rediscount
458
Branch banks, foreign, of national banks:
Real estate loans by foreign branch banks
952
Not regarded as independent corporations.. 198
Renewal of 15-day notes of member b a n k s . . . . 765
Real estate loans by
*
952
Reserves—
Commissioner of Internal Revenue, ruling of, re
Against Government deposits, banks not
taxability of income from investment in Librequired to maintain
458
erty bonas
459
Deductions of Government deposits, etc.,
Deposits by nonmember banks in Federal Rej
in determining amount against which reserve Banks
617 j
serves must be carried
692
Deposits of farm land banks with Federal Re•
Synopsis of State laws relating to
767-795
serve Banks
881 j
Section 11 (k) of act, litigation involving constiDirectors of Federal Reserve Banks, term of
!
tutionality of
32, 254, 534
office
290 !
Section 22 of Federal Reserve Act, interpretam
Directors of national banks, loans to, under
j
tion of amendment to
694
section 22 of act as amended
694 \
State banks—
Dividends, accrued, rights of liquidated bank
!
Application for membership before commencing business
953
to
117 j
Drafts payable on or before a certain date, eliCapital subscriptions on entering Federal
gibility of, for discount
291
Reserve System
696
Drafts payable with interest, negotiability of..
200
Powers of, which become members of FedExchange and collection charges, bills payable
eral Reservejsysrem
696
with, negotiability of
880
State laws—
Farm land banks, deposits of, with Federal
Affecting bank acceptances, abstract of. 529-533
Reserve Banks
881
Relating to reserves, synopsis of
767-795
Farm land, loans on improved
618
Stock in Federal Reserve Banks, transfer of, to
Federal Reserve Banks, deposits by nonmema national bank acquiring assets of a liquiber banks in
617
dated bank
199

DECEMBER 1,1917.

INDEX TO VOLUME 3.

Law department—Continued.
Tax on Federal Reserve Bank stock, opinion
by judge of United States diisi-ict court of
Ohio regarding
955
Trade acceptances, bills payable with exchange
and collection charges, negotiability of
880
Trust receipts as security for acceptance transaction
881
Usurious charges by national banks
292
Warrants, purchase of
32
Washington, laws of, authorizing national banks
to exercise trust powers
897
liberty bonds:
Acts providing for issue of
248,345,749
American Bankers Association, services offered
by, in connection with
438
Arrangements for
341,423, 729, 734
Assistance rendered by Federal Reserve Baxiks
in
floating
497, 577, 580, 588
Circulars issued by Treasury Department regarding
. \ . . . 432-437, 505-506, 734-736,932
Cost of telegrams relating to
439
Coupons, instructions for handling
938
Distribution and allotment of, by Federal Reserve districts.....
506,578,932
Establishment of discount rate for short-term
notes secured by
425,429
Extracts from Official Bulletin regarding
599
Instructions by Board to Federal Reserve Banks
regarding conversion of outstanding bonds
into
341
National banks, subscriptions taken by
....
748
Note issued by bank to replace funds withdrawn to purchase, is not eligible for rediscount
954
Paper secured by, eligibility of, for rediscount.. 457
Personnel of Liberty Loan committees
437
Plans for placing second issue of
729, 734
Rediscount privileges granted to nonmember banks, in meeting demands caused by
subscriptions to
1
426,430, 509
Resolution of American Bankers Association
offering services in connection with bond
issue
438
Ruling as to use of franking privilege in correspondence relating to bond issue
439
Statement by Secretary of the Treasury regarding floating of second issue
734-736
Statement issued by Treasury Department regarding exchange of
*
600
Subscriptions announced... 497, 505, 506,829,917,932
Tax on—
Opinion of Attorney General of United
States regarding
601
Rulings by Commissioner of Internal Revenue regarding
459,930
Trip of Secretary of the Treasury and Governor
of Federal Reserve Board in behalf of
429
Licenses, list of articles requiring, for shipments
made to foreign countries
583,672,755
Liquidating bank, surrender of stock subscription
by
457
Live-stock paper
114,540,616
Method of classifying
114
Statements showing amounts held by Federal
Reserve Banks
221,
317,408,486, 565, 638, 717,814,902,978
Loans to allied Governments made by the United
States, Apr.-Sept., 1917
731
Loans to directors of national banks, suggested form
of resolution when making
614

997
Page.

Loans on farm land and other real estate. (See
Farm land; Real estate.)
London Economist:
Articles from—
Inflation of currency and its effect on rise .
in prices
375
"Our financial duty"..
518
Malburn, Hon. Wm. P., appointed chief national
bank examiner for New York district
80
Member banks, condensed reports by, required in
principal cities
921
Memphis, Tenn., branch agency at, report on
168
Mercantile Trust Co., St. Louis, Mo., statement of?
regarding membership in system
361
Merchants & Farmers Bank, Cheraw, S. C, statement of, regarding membership in system
361
Military service, exemption of Federal Reserve
Bank employees from, not sanctioned by Board. 591
Miller, Hon. A. C, visit of, to Federal Reserve Bank
of San Francisco in connection with branches to
be established
340
Money in circulation, 1914-1917
562
Chart showing
563
Morris plan bank, ruling as to directors of, under
Clayton Act and Federal Reserve Act
527
National-bank examiners:
Appointed for fifth and sixth Federal Reserve
districts
748
Malburn, Hon. Wm. P., appointed chief examiner for New York district
80
National-bank notes:
Amount issued and redeemed during year... 667,94!l
Text of act authorizing issue of small denominations of
837
National banks:
Advisory committee, status of, under section 8
of Clayton Act
118
(harters issued to
20,
115,167,266,374,450, 520, 604,678, 747,864,942
Reports of condition as shown by comptroller's
call.
161, 372,665
Comptroller's call for reports of condition of,
changes in
604
Distribution, by States, of 100 largest national
banks
19
Dividends, accured, rights of liquidated bank
to
117
Examination of, payment for
374
Failures of, during past 3 years compared with
preceding 33 years
939
Fiduciary powers granted to. (See Fiduciary
powers.)
Foreign branches of—
Not regarded as independent corporations. 198
Real estate loans by
952
Increase and decrease in number and capital of,
during fiscal year 1917
603
Liberty bond subscriptions, amount of, taken
by
748
Regulations under which national banks may
act as insurance and real estate agents
164
Report of condition as shown by last report
under old reserve requirement
665
Reserves of, method of computing, under
amendment to act..
602
Stock in Federal Reserve Bank, transfer of, to
a national bank acquiring assets of a liquidated bank
199
Usurious charges by
292
Negotiability of paper with exchange and collection
charges
880

998

JTEDEKAL EESEEVE BULLETIN.

Page.
Netherlands, Bank of, statement showing condition
of
681
Nonmeinber banks:
gfc Deposits of, rulings regarding
617, 951
Rediscounting privileges granted by Board to,
in meeting demands caused by subscriptions
&y:
to liberty Loan
"
426,430, 509
Norway, Norges Bank, statement showing condition
of../.
082
Notes, drafts, and bills of exchange, regulations of
the Board regarding rediscount of
539, 541
Ohio Bankers' Association, circular of, on war
service
852
Old Colony Trust Co., Boston, Mass., statement of.
regarding membership in system
370
Omaha, Nebr., branch bank established at
586
Opinions of the Attorney General. (See Attorney
General, opinions of.)
Opinions of counsel of the Federal Reserve Board.
'(See Law Department.)
Oregon, statement of Superintendent of Banks of,
regarding State bank membership
934
Pennsylvania, act passed by legislature of, permitling State banks to join the system
666
Philippine 'National Bank, designated as agent of
Federal Reserve Bank of San Francisco
239
Portland. Orog., branch of Federal Reserve Bank of
San Francisco in
339
'Population of Federal Reserve districts
oti&
Potatoes as security, ruling of Board, on
614
President of the United States:
Executive order prescribing regulations for
carrying out provisions of the trading with the
enemy act
860-863
Proclamations regarding export licenses in the
foreign trade. / .
582: 672
Regulations issued by, governing export of coin,
bullion, and currency
736-739
Statement of. regarding State bank membership 827
Press statements:
Amendments to Act proposed by Federal Reserve Board
98 |
Bank failures, statement by Comptroller of the
!
Currency regarding
939 j
Canadian short-time credit, statement by Secretary of the Treasury
603
Comptroller's call for reports of condition of
national hanks, changes in
604
Foreign loans, investments in
239
Form for reporting reserve position in Boston
clearing-house bank statement
83
i ncrease and decrease in number and capital of
national banks during year
603
Liberty bonds
432; 505, 600, 734
Statement by comptroller regarding
national bank subscriptions to
748
Limitations under section 5200, R. S
519
Message of Hon. W. P. G. Harding to convention
of North Carolina bankers, business men, etc 159
National-bank examiners appointed for fifth
and sixth Federal Reserve districts
748
Recommendations of Federal Advisory Council
on amendments to act
106-109
Reports of condition of national banks as shown
by comptroller's call
161,372, 665
Reserves held by national banks
373
Treasury certificates of indebtedness, issues of 240,
341,663,741,838
Private banks, membership of, in Federal Reserve
System
693

DECEMBER 1,1917.

Promissory notes:
Regulation of the Board regarding rediscount of.
539
Tax on
950
Real estate agents, regulations under which national
banks may act as.
164
Real estate:
Bonds secured by, as investment
456
Loans on—
National banks subject to limitations imposed by section 24 of act
691
Regulations of the Board regarding
546
Paper secured by mortgage on, eligibility for
rediscount
458
(See also Farm, land.)
Receipts and disbursements of Federal Reserve
Board
87, 88
Regulations governing the exportation of coin,
bullion, and currency
736-739
Regulations under which national banks may act
as insurance and real estate agents
'.
164
Regulations for carrying out provisions of trading
with the enemy act
860
Regulations of the Federal Reserve Board, 1917:
Reg. A—Rediscounts under section 13
539
Reg. B—Open-market purchases of bills of
exchange, trade acceptances, and bankers'
acceptances under section 14
541
Reg. 0—Acceptance by member banks of
drafts and bills of exchange
542
Keg. I)—'.rime deposits and savings accounts..
543
Reg. E—Purchase of warrants
543
Keg. F—-Trust powers of national banks
545
Reg. G—Loans"on farm lands and other real
estate
546
Reg. II—-Membership of State banks and trust
companies
547
Reg. I—Increase or decrease of capital stock of
Federal Reserve Banks
548
Reg. J—Check clearing and collection
549
Renewal of 15-day notes of member banks
765
Reserve cities designated
921
Reserves:
Computation of
614
Deductions of Government deposits in determining amount against which reserves must
be carried
458, 692
Effect of proposed amendment to section 19 of
act regarding
109,285
Federal Reserve Bank reserves, 1915 and 1916,
chart showing
56
Fictitious reserves carried in the form of reserve
balances
2
Form for reporting reserve position in Boston
clearing-house bank statement
83
Letter of Board regarding new reserve requirements under amendments to act
508
Member banks not required to maintain reserves
against Government deposits
458,692
Movement of reserves of Federal Reserve Banks
during 1917
847-850
Chart showing
848
National-bank, method of computing under
amendment to act
602
National banks, 1915-1917
[[ 483
Chart showing
484
State laws relating to, synopsis of
767-795
Resources and liabilities of Federal Reserve
Banks, statements showing
67
145, 226, 322, 416, 491, 570, 645, 722, 820,*910,983
Revenue act passed by Sixty-fourth Congress:
House report on
251
Text of
248

DECEMBER 1, 1917.

INDEX TO VOLUME 3.

Page.

Review of the work of the Federal Reserve Board,
by months
1,75,
153, 235, 335,423,497,; 7, 651, 729, 827, 917
Rulings of the Board. (See Informal rulings; Law
department.)
Russia:
Loans made by the United States to, AprilSeptember, 1917
731
National debt of, since outbreak of war
14
Statements showing condition of Bank of
Russia
234,329,500, 681,946
War loans raised by
349
Savings Bank of Richmond, Richmond, Va., statement of, regarding membership in system
356
Savings accounts, regulations of the Board regarding 543
Savings banks:
Mutual, eligibility of, for membership
950
Rediscount privileges granted by Board to, in
meeting demands caused by subscriptions to
Liberty bonds
426,430,509
Seattle, Wash., establishment of branch of Federal
Reserve Bank of San Francisco in
339
Secretary of the Treasury:
Letter regarding subtreasuries and their relation to Federal Reserve Banks
110-112
Statements regarding Liberty Loans
432,
505,600, 734, 932
Trip to Western States in behalf of the first
Liberty Loan
429
Section 11 (k) of act, litigation involving constitutionality of
32,254, 534
Argument of counsel before Supreme Court...
254
Decision of Supreme Court.
534
Section 5200, R. S., and section .13 of act, limitations under
28,193, 286, 519,528, 696, 879, 881
Section 22 of act:
Interpretation of amendment to
614.694
Resolution, suggested form of, to be adopted
when loans are made to directors, etc.. 614,695,929
Serbia, loans made to,"by the United. States
781
Short-term paper:
Advocated by Board
733. 739
Renewal of.."
K79
Silver:
Monthly movement of the price of
842
Charts showing
843. 844
Ratio of silver to gold, at various prices of silver.
843
Value of pure silver in silver dollar
843
Charts showing
844
Spain, Bank of, statement showing condition of
682
Spokane, Wash., establishment of branch, of Federal
Reserve Bank of San Francisco in
339. 586
Stamps, war-savings, plan for issue of
730, 925
State banks and trust companies:
Admitted to system during the year
158. 347,
439, 507, 603, 659, 734, 834, 933
Amendments to act regarding admission, of, reintroduced in Congress.
336
American Bankers Association, resolution of.
urging amendments to State laws permitting
deposits of reserves with Federal Reserve
Banks
335
Applications for membership before commencing business
953
Capital less than $200,000, status of, for membership
764
Capital subscriptions on entering Federal
Reserve system
(390
Conversion of, into a national bank
(390
Digest of procedure in connection with applications for membership
592

999

Page.
State banks and trust companies—Continued.
Examination of, instructions to Federal "Reserve
agents in connection with applications for
membership
\
592-594
Hibemia Bank & Trust Co., New Orleans, La.,
statement issued b y , when joining s y s t e m . . .
667
Idaho banking department, statement issued by,
regarding State bank membership
'.. 599
Jones. Breckinriclge, statement "issued by,
regarding membership oi Mississippi Valley
Trust Co"
".'
590 -598
List of, which have joined t h e svstem u p to
July 31, 1917
'
*
595
Membership in system, rulings regarding
764,950
Mississippi*Valley Trust Co.j statement'issued
by, regarding membership in system
596-598
New York State banks, cooperation of, i n conn o ! of gold supply
(>59
Opinion b y Attorney General construing section 8 ol Clayton Act regarding interlocking
directorates as affecting Stale banks
\
744
President of the United States, statement of,
regarding State bank membership
827
Pciinsylva-iiia, act passed by legislature of, permitting State banks to joiti the system
HOC
Powers of, which become members of Federal
'Reserve System
(196
Regulations of the Board regarding membership of
546
Statements issued b y new members which have
joined the Federal Reserve System. 355, 598, 667, 834
Statements o£ Superintendent of Banks of
Oregon, regarding membership of
934
Views of Federal Reserve Bank officer on advantages of State-bank membership
84
"Views of 32 State banks regarding advantages of
membership in system
355-372
State Department, warning as to banking transactions with enemy aliens
431, 655
State laws relating to trust powers of national banks. 528,
697, 767
State laws affecting bank acceptances, abstract of. 529-53
State laws relating to reserves, synopsis of
767-795
Stationery, use of Federal Reserve note emblem on,
not permissible..
194
Sterling exchange rates
582; 683
Stock in Federal Reserve Banks:
Payment of, pending approval of application
for membership
•
287
Regulation of Board regarding increase or decrease of
548
Surrender of, b y liquidating bank
457
Transfer of, to a national bank acquiring assets
of a liquidated bank
199
Subtreasuries, substitution of Federal Reserve
Banks for, letter of Secretary of the Treasury
regarding
'.
110-112
Sullivan Bank & Trust Co., Montgomery, Ala.,
statement of, regarding membership i n s y s t e m . .
359
Supreme Court of the United States, decision of, in
case brought to test the constitutionality of section l l ( k ) of act
.
534
Sweden Riksbank, statement showing condition of681
Swiss National Bank, statement showing condition
of
682
Tax on telephone, telegraph, and express charges,
ruling of Commissioner of Internal Revenue o n . . 931
Tax, stamp, on acceptances
950
Tax on Federal Reserve Bank stock, opinion b y judge
of United States district court of Ohio regarding..
955
Tax on promissory notes.
950

1000

FEDERAL RESERVE BULLETIN.
Page.

Tax on income from Liberty bonds:
Opinion by Attorney General of the United
States regarding
601
Rulings on, by Commissioner of Internal Revenue
459,930
Telegrams, cost of, relating to bond issue
439
Time deposits and savings accounts, regulations of
the Board regarding
543
Trade acceptances. (See Acceptances, trade.)
Trading with the enemy act:
Executive order prescribing
regulations for
carrying out i v - ":
j of
860-863
Lincensin;
companies under
838
Textof...
851-860
Treasury bills,
British
653
Canadian..
603, 652
Treasury certifi«
Redness:
Amounts he
al Reserve Banks, state35
ments aho^-ssssss* -" 416,490, 569, 644) 819, 909,982
Announcem"
^tary of the Treasury regarding fir * (ftscoiwU^' of
341
Allotment te
^eral Reserve Bank under
first nine i
846
Amount and
;ation of first nine issues of..
846
Issues of.. 2\ 67,341,423, 651, 663, 729, 741, 830, 838
Letter of Bo\ to Federal Reserve Banks regarding pu VJnase of
338
Paper secured by, eligibility of, for rediscount. 457
Treasury Department:
Circular regarding war savings certificates
927
Statements regarding Liberty Loans
432,
505, 600, 734,932
Treasury notes, discount of paper for use in trading
in bonds or notes
158
Treman, R. H., address of, on trade acceptances.. 9,243
Trust companies, regulations of the Board regarding
membership
546
(See also State banks.)
Trustee, executor, etc., regulations of the Board regarding national banks acting as
545
(See also Fiduciary powers.)
United Kingdom:
Bank of England—
Foreign agency established with
5
Statements showing condition of
234,
329, 500, 681,943
British short-time treasury bills, statement of
Secretary of the Treasury regarding
652
Loans made by the United States to, AprilSeptember, 1917
731

DECEMBER 1,1917.

Page.

United Kingdom—Continued.
National debt of, since outbreak of war
10
War loans raised by
349
United States bonds:
Amounts held by Federal Reserve Banks, statement showing... 416, 490, 569, 644, 721, 819,909,982
Circular of a Federal Reserve Bank relating to
purchase, etc., of, under section 18 of act
81
Conversion operations of Federal Reserve
Banks, statements showing
415
Coupons on, instructions for handling
938
Discount of paper for use in trading in bonds or
notes
158
Instructions of Board to Federal Reserve Banks
regarding conversion of outstanding bonds
into war bonds
341
Purchase, allotment, and conversion of, under
section 18 of act
5, 80, 238, 240, 341,507,879
War bond issue of 1898, subscriptions to
343
(See also Liberty bonds.)
Usurious charges by national banks
292
War Department obligations, purchase of, by
member banks
288
War bond acts of 1917, text of
345, 749
War loans raised by principal belligerent countries
349, 351
War-revenue act, reprint of portions of
868-877
War-savings certificates:
Committee appointed to handle
730
Plan for issue of
730,918,925
Substitution of, for gold coin as Christmas
gifts
931,951
Warburg, Hon. P. M., redesignated as vice governor of the Federal Reserve Board
659
Warehouse receipts:
As security for purchase of acceptance, issued
independent of the borrower
30
Paper secured by
456
Regulation of Board regarding drafts drawn
against shipment of goods secured by
542
Warrants:
Amounts purchased and held by Federal Reserve Banks, distributed by maturities
65,143,
223, 319, 413, 488, 567, 642, 719, 816, 907,980
Purchase of, rulings regarding
29, 32,193,194, 543
In excess of the 25 per cent limit
194
Nonnegotiable
193
Regulations of the Board regarding
543
Washington, laws of, authorizing national banks to
exercise trust powers
697
Wills, D. C , address of, on trade acceptances
243

Full text of Federal Reserve Bulletin : December 1917

FRASER