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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

DECEMBER, 1918

WASHINGTON
GOVERNMENT PRINTING OFFICE
1918

FEDERAL RESERVE BOARD.
EX OFFICIO M S 3 0 3 3 3 .
WILLIAM G. MCADOO,

Secretary of the Treasury, Chairman,
JOHN SKELTON WILLIAMS,

W. P . G. HARDING, Governor.
ALBERT STRAUSS, Vice Governor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.

Comptroller of the Ov;r'i-v:y,

J, 1, BRODERICK, Secretary..

M. 0. ELLIOTT, Counsel.

L, 0. ADELSON }

H. PARKER WILLIS,

^

_

J Assistant 8ficrvtxn-?.i,
-

Director, Division of Analysis and Research.

W. T. CHAPMAN J

W. M.. IMLAY, Fiscal Agent
M., T A COB SON, Statistician*




F. I. KENT,

Director, Division of Foreign Exdtange.




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, 1916, or 1917
are available.

TABLE OF CONTENTS,
Page.

Review of the month
1163
Resignation of the Secretary of the Treasury
1174
Transit and audit conference
1175
Meeting of Federal Advisory Council
1175
Act providing for consolidation of national banks
1177
After the war: The gold standard and currency in Great Britain (report of Lord Cunliffe's committee)
1178
New series of war savings stamps
1192
Status of trade acceptance movement, by J. H. Tregoe, secretary of the National Association o,f Credit Men
1193
Banking committees on taxation
1194
Indexes of business conditions
1194
Consolidated statement of farm loan system
1195
Committee appointed to study conditions in gold-mining industry
1195
Branches of American institutions abroad
1196
State banks and trust companies admitted to the system during the month
1196
Charters issued to national banks during the month
1197
Commercial failures reported
1197
Banks granted authority to accept up to 100 per cent of capital and surplus
1198
Foreign exchange rates in belligerent, neutral, and silver countries
1198
Charts showing
1200-1202
Index of wholesale prices
1203
Reports of total bank transactions
1206
Discount and interest rates prevailing in various centers. „
1209
Lost and recovered Liberty bonds
1212
Informal rulings of the Board
1215
Informal rulings of the Division of Foreign Exchange
1217
Law department
1218
Business conditions throughout the Federal. Reserve districts
1219
Gold settlement fund
,
1238
Operation of check clearing and collection system
1240
Discount operations of the Federal Reserve Banks
1241
Resources and liabilities of Federal Reserve Banks
1245
Federal Reserve note account of Federal Reserve Banks and agents
1247
Member bank condition statement
1249
Imports and exports of gold and silver
1252
Estimated stock of money in the United States
1253
Discount rates in effect
1254
Index to volume 4
1255




IV

FEDERAL RESERVE BULLETIN
VOL.

4

DECEMBER 1, 1918.
REVIEW OF THE MONTH.

The armistice arranged between the allied
Governments and the United
The armistice.
States, on the one hand, and
the German Government on the other,
announced on November 11, foreshadows the
end of the most remarkable era in American
finance, and the opening of another which will
be replete with new and momentous problems
demanding no less serious consideration than
those of war.
Changes in the financial outlook for the
Government were set forth by the Secretary
of the Treasury in a statement to the Senate Finance Committee on November 14.
Estimated revenue requirements for the year
will be perhaps $18,000,000,000. While there
is thus a material reduction in requirements,
it still remains true that the sums to be raised
are such as two years ago, or even a year ago,
would have been thought to call for the utmost
effort on the part of the community. This
makes it plain that, as pointed out in the last
issue of the FEDERAL RESERVE BULLETIN, the
present is no time for relaxation, either of our
financial precautions or of the measures which
must be regarded as vitally necessary to insure
the conservation of our banking and credit
resources for the purpose of meeting imperative
national needs, for the defeat and collapse of
Germany still leave the Nation with banking
and financial problems of first importance.
While the termination of the war has set
definite limits to the requirements of public
finance, the United States in common with the
rest of the world is confronted with the important economic problems and needs growing
outfof " reconstruction. ?'
Sales of certificates of indebtednessgand
bonds for the purpose of obtaining the funds
which must be had by the Treasury in meeting




No. 12

the contracts and other obligations already
incurred in the prosecution of the war will
be a continuing burden upon the banks of the
country for many months to come. The banks
will, at the same time, necessarily be called
upon to lay the foundations for the financing
of new trade growing out of the reestablishment of normal business and to assist in the
resumption of developmental enterprises necessarily suspended during the continuance of the
war.
Experience has shown the character of the
problems which must be met in
Shifting to the K #
.
, ,,
-,
ba is
nnancmg of the war, and
they are perhaps better understood to-day than at any time in the past.
The Board has emphasized the necessity of saving and conserving resources, the indispensable
requirement that, so far as practicable, longterm securities shall be paid for, either outright
or within the period of subscription, and has
laid especial stress upon the call for the limitation of industry to those lines which may properly be called " essential." These admonitions
will continue to have much the same force as
in the past, so long as the Nation is engaged in
completing its war financing and in facilitating
the transition to the peace basis. This transition will not involve any wide departure from
the principles already developed out of our
war experience but rather a modification of
the details of their application. The liquid
capital of the country may for a long time to
come be inadequate to meet the needs of the
world, and some process of husbanding or
rationing it must therefore be applied during
the period of reconstruction, just as has been
the case during the period of war. This
system of distribution or rationing—to use a
word already made familiar—can not be the
same and can not employ the methods that
have been found effective under a regime of
1163

1164

FEDERAL RESERVE BULLETIN.

military necessity; yet the object to be gained—
that of husbanding our resources and of distributing them in such a way as to promote
the process of return to normal conditions—
will be closely analogous to those which have
been pursued during the war. Some of the steps
which must be taken in the development of
this policy have already been indicated by the
War Industries Board and by other Government organizations which have shifted their
system of rationing or control in such a way as
to give preference to those industries which
are considered essential to industrial restoration
as against those which have thus far been
deemed essential to success in war. To the
private individual the process of shifting to
the peace basis must mean much the same as
the process of conserving resources during war.
In both cases it is incumbent upon him to
avoid undue waste, to limit his consumption
to what is necessary to efficiency, and to devote
his savings systematically and fully to the
strengthening of the banking and investment
position of the country. The erection of a
strong foundation for the peace industry of
the future demands the continued exercise of
self-denial and foresight just as during the war.
That the transition of the world
from a War

*?

a

PeaCe

basis

must necessarily exert an important and direct influence upon banking is,
of course, clearly obvious. Immediately the
problem will be that of preventing credit froxn
expanding too far and, so far as practicable, of
reducing any excess that already exists. The
economic history of the period immediately
succeeding wars of the past has shown that in
practically every instance there has been a
tendency toward the use of bank funds for the
purpose of promoting the development of
industries and enterprises involving a considerable investment of capital. The Federal
Reserve system is now in an exceptional
position for influencing the distribution and
use of banking credit upon an economic basis.
Prior to the entry of the United States into
the European war the volume of business at
Federal Reserve Banks was too limited, while




DECEMBER 1,

1918.

the available or free resources of member
banks were too large, to enable the Federal
Reserve institutions to exert more than an
incidental influence upon credit uses. The
period of belligerency has changed these
conditions, and the Federal Reserve Banks
now stand as practically the holders of the
entire reserve of the country—the directors
of what is probably to be regarded as the one
unexhausted reservoir of banking credit in the
world. To them is thus assigned a function of
surpassing importance—to maintain the liquid
character of the assets held against the demand
obligations of the banks, and, by regulation of
discount rates, to regulate, as conditions permit, the uses and limits of credit. This function
has almost of necessity been temporarily
suspended during the continuance of the period
of belligerency. So long as the United States
is in the market as the greatest borrower and
so long as its borrowings are intended for the
maintenance of the national integrity, there
can be no doubt that the policy to be adopted
must be one which should subordinate all other
considerations to that of success of national
finance. With the return of peace the close
of the period of urgent Government financing
through the sale of long or short term obligations comes in sight, and the resumption of
their function as a regulator of credit becomes
a duty for Federal Reserve Banks.
Reduction of loans on war paper is doubtless
a problem to be at once faced
' ^ b ^ t h e F e d e r a l Reserve Banks
and their members. The reasons for such action from the standpoint of
banking prudence are obvious. In former
numbers of the BULLETIN the Board has,
moreover, explained its view of the connection between these expanded loans and prices.
Return to stability of prices, as well as of economic relationships generally, must go hand
in hand with the reduction of the banks7
holdings of such paper. It is to the public
that we must look for effective aid in the accomplishment of this object. Direct absorption of the Government bonds now carried by
the banks through extensive popular saving is

DECEMBER 1,

1918.

FEDERAL RESERVE BULLETIN.

the only means by which real improvement
can be effected. Such saving means the creation of new current wealth through continued
activity in industry and its application to the
process of reducing outstanding purchasing
power in the shape of bank credit. As bank
obligations are restored to a condition of normal liquidity and as commercial paper growing out of actual transactions takes the place
of notes secured by bonds and certificates
of indebtedness, which now make up so large a
proportion of the assets of both Federal Reserve and member banks, prices will gradually
work toward a normal and stable basis. The
transition period will unquestionably involve
new and large needs for credit and capital.
It will require both the provision for natural
growth of industry, for the furnishing of aid to
businesses which are in process of transition
from a war to a peace basis, and finally for the
usual and permanent capital advances which
are required in carrying their regular financing.
The completion of the movement toward a
stable banking basis does not necessarily imply
a restoration of the older level of prices, since
the equation of supply and demand throughout the world is now different from what it
was before the war. Costs of production are
fundamentally altered and conditions of consumption have been widely changed. ' We
need notjf therefore, ^necessarily look for a
return to the older level of prices, and we certainly can not expect the restoration of that
older level in the case of any given commodity,
but the return to normal conditions in prices,
so far as these have been affected by inflation,
through the elimination of that inflation, is
not only a reasonable but a necessary expectation.
Present conditions in the world are different from those which have exConservation of •
isted after previous wars in
reserves,
that all leading countries are
involved. On former occasions these conditions
were more or less localized. In most countries
to-day there exists a condition of banking and
credit inflation, sometimes for one reason and
in other cases for others. But whatever the




1165

cause, the outward result and consequences
have much similarity. The necessities of the
war and the difficulties of obtaining supplies
have resulted in a far-reaching alteration in
the distribution of gold. Much of this gold
has accumulated in the United States, but
considerable portions of it have gone to the
countries which remained neutral throughout
the war—Spain, Holland, Switzerland, and
Scandinavia. The question ma}' be fairly
raised whether the return of prices and bank
credit to a normal level, can be expected without changes in the existing adjustment of the
gold supply of the world. It is probable that
the supplies of gold which are thus needed
will not be as great in many cases as they
were before the war, since it may be expected
that the use of gold in current circulation will
be far less than before. The movement of
gold, therefore, from the countries which
have acquired it to those which now need itwill undoubtedly be gradual and is a matter
of common concern to all of them. It is,
indeed, quite possible that peace adjustments
may be such as not to disturb in large degree
the continued holding of considerable quantities of gold by the countries which now possess them, notwithstanding that they still continue to be used as a basis for banking in. other
nations.
But, as in time the gold supply of the world
is gradually redistributed in accordance with
the needs and. requirements of circulation and
banking reserves in the different countries,
there will necessarily be alterations of the percentage relationship of the gold held to the
demand obligations of the banks in the COUDtrics which, are affected by such shifting of the
metallic supply. These changes in reserve
percentages need not, therefore, necessarily be
regarded as indicative of any abnormal sit/nation. Provided that the process of reducing
war obligations is steadily and conservatively
pursued, the supply of gold in reserves will
take care of itself and the liquidity of the
banks will be insured through the regulation
of the volume and quality of their assets iainiore freely and promptly than through the

1166

FEDERAL RESERVE BULLETIN,

reduction or amassing of quantities of the
reserve metal.
Coincident with the reduction of domestic
war loans there may probably
Aid to foreign b e
cted to develop a direct
countries,
demand upon our banKing resources for accommodation designed to facilitate the movement of goods to other countries.
Such accommodation has been extended in
large measure ever since the opening of the
European war—first, through the extension of
loans to belligerent countries. privately placed
with bankers in the United States, and later,
when the United States itself became a belligerent, through the issue of Government bonds
whose proceeds were advanced to foreign countries and were then used by them in payment
of supplies purchased in the United States. It
may be possible, as has already been intimated,
that additional credits may from time to time
have to be opened in favor of the allied nations,
but from this time forward the bulk of our
foreign financing will necessarily return to a
peace basis and the services of our banks
will lie in supplying the means for financing
the movement of consumable goods to the
foreign countries by which they are needed.
That this prospect opens a large new field for
American bankers is obvious. That it is a field
which opens new opportunities for the application of the acceptance principle and in other
ways calls for the skillful and intelligent
use of their credit resources is equally
clear. The connections which have been
formed by Federal Reserve Banks with foreign central banking institutions should now
be of material service in facilitating the development of trade and in applying to it those principles of general control which the experience of
the world in the management of reserves and
discount rates has demonstrated to be essential.
These demands will necessarily be made, since
they will represent the credits growing out of
the immediate requirements of the world—
requirements which can not be refused without impairing both our future prospects of
foreign business and the progress toward readjustment to normal conditions of industry.




DECEMBER 1,

1918.

They can not be wisely made by superimposing
a new structure of banking credit upon the old
one which has been developed in the process
of financing governmental requirements. Progress toward the new basis will thus be a judicious apportioning of our resources between the
necessities of new development and those of
reduction of already outstanding commitments.
It will require wisdom and self-restraint on the
part of the bankers of the country to make this
adjustment upon a feasible and effective basis,
In this connection the Board commends to the
banking and business community of the United
States the careful study of the report (elsewhere
reprinted in full in this issue) of the committee
appointed some months ago, under the chairmanship of Lord Cunliffe, then governor of
the Bank of England, to investigate the
question of currency and foreign exchanges
after the war. The report of the committee
takes the view that it will be imperative
after the war that the conditions necessary
to the maintenance of an effective gold standard be at once restored, and for this purpose recommends that the machinery which
British experience has shown to be the
only effective remedy for an adverse balance
of trade and an undue growth of credit be
once more brought into play. Otherwise there
will be grave danger of a progressive credit
expansion.
"Nothing can contribute more," says the
committee, "to a speedy recovery from the
effects of the war, and to the rehabilitation of
the foreign exchanges than the reestablishment of the currency upon a sound basis.'7
It believes that "the principle of the act of
1844, which has upon the whole been fully
justified by experience, should be maintained;
mainly, that there should be a fixed fiduciary
issue beyond which, subject to emergency
arrangements, notes should only be issued in
exchange for gold."
A general survey of the position of the
principal central banks of the
Position of w o r i d shows conclusively that
banking system.

*L

the problems of the United
States in bringing about a return to a normal

EEDEHAL KESEKVE BULLETIN.

DECEMBER I , 19.1.8.

basis of credit are in no sense special or peculiar. In practically all countries there has
been an enormous inflation of bank credits,
and particularly of those credits that rest
upon or are secured by Government bonds and
certificates of indebtedness. This inflation has
undoubtedly been greatest in the territory of
the Central Powers, but it has also been very
great in both France and England. The following tabulated statement shows in compact
form some of the principal features of the condition to which reference is thus made:
[000 omitted.]
Discounts and
advances.
1914

1918

Government
securities.
1914

1918

Central banks of allied
Bank of England
Bank of France
Russian State Bank...
Bankofltalv
Central banks ol Central
European powers:
German Reichsbank..
Austro-IIungarian
Bank

$230,222
$404,048
018,189
541,977
400,205 11,120,867
209,477
260,623
543,417

5,072,996

193,352 3 1,267,253

$143,343
80,582

§281,048
4,383,566
i 8,507,363
105,865
969,576
(2)

(*)

12,156 3 2,686,071

1 Latest available data as of Oct. 29,1917.
2 Advances to the Government are included with discounts and
advances.
3 Latest available data as of Dec. 7,1917.

Differences between the various countries are
thus differences not of character, but of degree,
and the United States is peculiarly situated
only in this—that inflation has not proceeded
in the United States to anything like the same
extent that is characteristic in many of the
other countries, so that our problem of restoring
a normal currency basis is to that extent easier;
and in that its gold reserve is far larger than
that of any other nation. It is therefore better
able to maintain the convertibility of its demand obligations upon request. An added
consideration is that there has never been any
suspension of the parity of our currency and
credit with gold. It is, however, true that as
we proceed further in the direction of the
restoration of normal conditions we find our
relationship toward other countries subject to
more and more extensive modifications. It




93190—18

2

1167

may therefore be open to some doubt whether
any one of the principal commercial countries
of the present date can succeed in making its
way back to its former status unless it does so
practically in combination with its principal
neighbors. The problem of reestablishment of
a normal level of prices and banking reserves
is thus, in fact, an international rather than a
local question and must be treated as such.
The return by any one nation to a normal level
of prices will give that nation an advantage
in its export trade that will react powerfully
on the price level in all other countries.
This state of affairs may make it advisable
that Government control of banking and exchange shall in some degree be continued until
the way is clear for a return to a policy of
unrestricted exports of gold. The early development of a policy which will provide for
steady progress toward the removal of these
restrictions at the earliest possible date is therefore highly desirable.
The unique position of the Federal Reserve
Position of the system, standing, as it does, at
Federal Reserve the head of American banking
sys em.
organization, makes it worth
while to note what the system has accomplished
during the years since the opening of the
European war, and particularly since the
United States itself became a belligerent.
Inasmuch as the organization of the new system was practically contemporaneous with the
beginning of the war, its present totals practically represent a complete growth from nothing. It was, in fact, almost exactly four years
ago that the banks on November 16, 1914,
opened their doors for business. A better
basis for comparison is therefore afforded by
taking the figures representing the situati©n
after a year had been afforded to the new system for the purpose of organization. In the
following table are set forth salient facts regarding the growth of the Federal Reserve
system, showing the condition of the Reserve
Banks at the close of 1914, a year after opening
for business, at approximately the date of our
entering the war as a belligerent, and upon the

1168

FEDERAL RESERVE BULLETIN.

DECKMIHSU 1, 1018.

Even subject to due modification at the
fourth anniversary of the system. A compact
points thus enumerated, the
review is thus afforded of the bare facts regardbalance sheet of the Federal
ing the increase in the scope and activity of resources. °
Reserve system exhibits a
the new banks.
condition of enormous strength. It is a
[000 omitted.]
notable fact that the average reserve percentage for the banks as a whole has never
Dec. 31, Nov. 19, Mar. 30, Nov. 15,
1914. I 1915.
1917.
1918.
fallen below 50, its extreme fluctuations,
therefore, lying between 50 and 80 per cent.
3241,321 $482,632 8938,046 82,056,777
Gold reserves
It is therefore capable not only of meeting
26,578 ! 32,173
9,282
53,039
Othor cash reserve
outstanding international obligations
514,805 947,328 2,109,816 large
267,899
Total cash reserves
without difficulty, but also of accommodating
45,149
104,579 2,175,085
9,909
939
40,193 I 63,415
122,955
Bills on hand
the business community with very large
Other earning assets
10,848
85,342 I 167,984 2,298,640
additional discounts. It is in a position to
54:854 | 56,075
79/903
18,051
Total earning assets —
258,018 384,170 j 706,905 1,605,677 finance, without embarrassment to itself, a
(-apital paid in
160,886
357,610 2,562,517 large volume of active commercial paper repre10,608
Net deposits
senting the movement of consumable comFederal Reserve, notes in
actual circulation
modities to market, and can expect to supply
Ratio of total reserves to not
deposit and Federal Re89.0
49.9
100.5 i
94.5
the requirements of its member banks with the
serve note liabilities combined
utmost ease so long as it adheres to the
It would not be fair to state the figures re- limitations and requirements laid down in the
lating to the actual operations of the Federal constituent act creating it. The immense
Reserve system without accompanying them requirements of war are such that they could
with the salient facts relating to the character easily impair the lending capacity of the
of the changes that have occurred in the opera- Federal Reserve system, as they have that of
tions of the banks. Reserve figures, for ex- other strong central banking systems, were
ample, show growth, not only because of the they to be indefinitely continued. But the
increasing strength and inclusiveness of the period of such drafts is now fortunately
system, but also because of the additional legis- approaching its end, notwithstanding the
lation adopted by Congress for the purpose of probability, if not certainty, of further large
concentrating the reserves of the country more issues of Government bonds during the current
largely in the vaults of the Federal Reserve fiscal year ending June 30, 1919. The fact
Banks. On the other hand, the issues of notes that the termination of this period is approachas is well known, have been enlarged, not ing does not, however, mean that a period of
merely for the purpose of meeting the needs of ease or lack of demand for capital has arrived.
trade but in order to render possible the with- On the contrary, the indications of the situdrawal and concentration of gold certificates ation are all to the effect that the needs of the
for the purpose of increasing the sums of community and of the world at large for proreserve money available as a support to our ductive resources are likely to increase rather
banking credits. In the same way, the im- than grow less, and that this increase may be
mense growth in the discounts of the banks expected to proceed rapidly in the near future.
should be studied in the light of the fact that One effect of the war has been to produce
on November 15 there were included in the re- shortages of materials of production in many
sources of the Federal Reserve Banks not less different directions, a fact which implies that
than $1,358,416,000 of war paper, or about the reserve stock of such articles, always
relatively small, as compared with total con75.6 per cent of the entire discounts.




.

;

.

_

•

DECEMBER 1,

1918.

FEDERAL RESERVE BULLETIN.

sumption, has been allowed to become exhausted. To meet all current demands and
thus to reestablish such reserve stocks will be a
task calling for the increase of production in
many lines, particularly as the current requirements of the European nations for material to
be used in reconstructing their industrial systems will constitute an abnormal addition to
regular needs. It must be expected, therefore, that the demands of the Nation and of
the world for capital and for goods will continue to be more or less active for a good
while to come. The fear of depression of
trade expressed in many quarters need not be
entertained with respect to trade as a whole,
but depression may be expected only in those
lines in which demand has been suddenly
suspended or curtailed in the process of
readjusting consumption and production.
This demand for capital must, however, be
met from the ordinary sources of saving and
accumulation and not through the creation
of banking credit. To rely upon bank loans
as the source from which to draw the means
for supporting industrial operations would
raise the question whether instead of resorting
to intensive saving, accompanied by reduction of prices, we had resolved to fall back
upon inflation of bank liabilities and of the
currency.
it is in pursuance of the principles thus
set forth that the Board has
ing uii- e n ( j e a v o r e d to during the lpast
necessary loans.
month to prevent some member
banks from drawing too heavily upon the resources of the Federal Reserve institutions for
purposes which, in its judgment, were in no
wise essential to the welfare of the community.
The attention of the Board has been in some
instances called to the fact that member banks
have applied for and obtained rediscounts
which appear to be largely in excess of their
natural needs or of the requirements of the
community they serve, and has noted that such
banks have used the proceeds of these rediscounts in purchasing paper in the open market
or in lending to nonmember banks at a profit.




1169

The proper comntercial activities of member
banks should in no wise be discouraged, and
the Board has no desire to obstruct the very
natural effort of bank officers to increase the
normal profits and business of their institutions.
It recognizes a duty, however, to caution the
bankers who have rendered and are rendering
such efficient service to the Government that
profit making and business expansion must for
some time to come be subordinated to the general welfare. Particularly does this caution
apply to those cases in which rediscounting
operations are sought for the purpose of developing resources from other sections primarily
to increase the profits or the business of the
banks in any given community. Rediscounting between Federal Reserve Banks has been
an indispensable element in the process of
financing the war and was made necessary both
by the Government's operations and by the
essential requirements of the various Federal
Reserve districts. Such rediscounting, however, ought not to be undertaken merely for the
benefit of member banks in a given district as
a means of enabling them to go outside their
natural field for the purpose of making profits.
Having knowledge of the fact that abnormal
demands upon banking resources may be expected for some time to come, directors of Federal Reserve Banks should exercise a reasonable
prudence in extending accommodations to any
member and should satisfy themselves by
proper inquiry that the accommodation sought
is intended for legitimate liquid requirements
and has not been applied for merely to increase
profits or expand the business of the borrowing
banks. While the directors, with the approval
of the Federal Reserve Board, might by advancing their discount rates curtail the credit
extended to banks which seek rediscounts solely
for the purpose of matdng a profit, such a course
might work hardship upon other member banks
which ask rediscounts for their own natural
needs and might therefore result in an enforced
and premature liquidation of legitimate requirements. The Board therefore believes that
in this, as in other cases, prudence in bank lend-

1170

FEDERAL RESERVE BULLETIN.

ing and careful distribution^of the supply of
credit available is preferable to the application
of an indiscriminate increase in rates of discount.
There is some ground for fearing that the
conditions which have thus far
Inflation a conresulted from loans obtained
tinuous menace.
from banks upon the strength
of Government obligations and granted by the
various institutions because of their belief that
such action was a patriotic assistance to the
public Treasury, will be continued through the
medium of loans granted by banks because of
their belief that such action is urgently necessary in the interests of the community and its
prosperity. A temptation to the extension of
such loans based upon long-term securities of
an industrial character will be furnished by the
fact that decline in prices is always difficult to
endure and is always opposed by many classes
in the community who regard it as synonymous
with lack of prosperity. The suggestion that
some measure be taken to prevent the restoration of the older relationship existing between
gold and prices is, in effect, one way of expressing the demand for a continued maintenance of
inflation. Wages and prices having assumed
new relations to one another upon a new basis of
relationship to gold, any alteration in this relationship tends to disturb the existing adjustment and necessitates an effort to restore the
older level of prices and wages. It is almost
invariably true that such readjustment would
inflict hardship upon some class in the community, due to the fact that wages and prices
seldom, if ever, decline in similar proportions
or in a manner precisely parallel in point of
time. Where the decline in wages is more
rapid than that of prices, the wage earner suffers correspondingly, and where prices fall off
more rapidly than wages similar hardship is
inflicted upon the producing element in the
community. It is therefore a natural instinct
to seek the maintenance of existing conditions
as nearly as may be, or if any change be contemplated to ask that it be a continuation of
an existing upward movement which each section of the community believes will afford to




DECEMBER 1,

1918.

it the possibility of advantage. This might be
regarded as merely a clash of class interests
were it not for the hazard to the general banking structure of the country, which is involved
in the continued progress of inflation of bank
credit, essential as this is to the maintenance
of an upward trend in prices.
Reports immediately following the consumOperations of nation of the fourth Liberty
Federal Reserve loan on October 19 indicate
an s
'
substantial liquidation of war
paper, primarily, of course, paper secured by
Treasury certificates. Holdings of this class of
paper on October 25 were 170.3 millions below
corresponding figures for October 18, on the eve
of the conclusion of thp loan. On October 24
and November 7 two issues of Treasury certificates fell due, though it may be assumed that
by far the larger portions of these issues had
been previously received by the Federal Reserve Banks in payment for Liberty bonds subscribed. At all events, the amounts redeemed
were not large enough to reduce appreciably the
pressure for loans, caused by the heavy calls for
funds on the part of the Government. It was
only on November 22, following the redemption
of the outstanding balance of the July 23 issue
of Treasury certificates and of the 4 per cent
tax certificates, that a downward trend in the
movement of discount operations is noticed,
resulting in declines from the corresponding
November 15 figures of 78.2 millions of war
paper on hand and of 10.3 millions of other discounted bills. This decline, however, affects
not all the Federal Reserve Banks, some of
them, notably the banks at Cleveland and Minneapolis, continuing to show large increases in
the amounts of war paper held. Total holdings of war paper on November 22—1,280.3
millions—are 187.9 millions larger than on
October 25, the Friday following the consummation of the most recent war loan, and 845.8
millions in excess of figures for June 28, the
Friday following the issue of the first series of
Treasury certificates under the fourth Liberty
loan. On November 22 the proportion of war
paper in the total discounts held by the Federal
Reserve Banks is practically the same as on

DECEMBER 1, 1918.

October 18, viz, 75 per cent. For the New
York bank this percentage is about 85 per cent
while for the Boston bank an even higher percentage obtains.
But little change is shown in the total holdings of acceptances, though the proportion
held by the New York bank shows an increase
from less than 35 to about 47 per cent. Increases in the weekly holdings of United States
short-term securities represent largely temporary Treasury certificates covering advances
to the Government by the New York bank,
and to a minor extent one-year 2 per cent certificates deposited with the Treasury to secure
Federal Reserve Bank notes, the circulation of
which increased by 24.8 millions. No appreciable increase in United States 'bonds on hand
is shown, the Federal Reserve Banks holding
in their own name but very small amounts of
Liberty bonds, and these only for the temporary accommodation of their members, the
bulk of their holdings being bonds deposited
with the Treasury to secure circulation. As
the result of the developments sketched the
Federal Reserve Banks' total earning assets
show an increase from 2,154.8 to 2,255.6
millions.
For the period under review the banks' gold
reserves show an increase from 2,035.3 to
2,060.3 millions, and their net deposits an
increase from 1,580.8 to 1,632.8 millions.
Federal Reserve notes in actual circulation
show an increase for the five weeks under
review from 2,502.5 to 2,555.2 millions, or at
the rate of slightly over 10.5 millions per week
as against an average of 51.9 millions for the
preceding four weeks. It is notable that the
Federal Reserve note circulation on November
22 was 7.3 millions less than the week before.
The ratio of cash reserves to aggregate net deposit and Federal Reserve note liabilities, which
on October 25 declined to 49.6 per cent, has
risen slightly and on November 22 stood at
50.5 per cent.
In the following table are shown the changes
between October 18 and November 22, 1918,
in the total discounted and purchased bills




1171

FEDERAL BESEEVE BULLETIN".

held by each of the Federal Reserve Banks, as
well as changes between the two dates in the
holdings of other classes of investments:
[000 omitted.]

Federal Reserve Bank.

I Oct. 18. j Nov. 22.

i
$138,129
771,003
132,469
140,038
74,044
92,427
290,046
86,767
54,612
84,161
58,367
136,629

$148,934
823,050
182,948
164,607
90,012
84,211
219,441
80,477
49,213
B0,248
49,305
105,773

2,058,692

2,078,219

19,527

28,205

29,134

929

67,738
197

148,180
27

80,442

investments i
! 2,154,832

2,255,560

Net decrease.

S10,805
52,047
50,479
24,569
15,968

100,728

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City....
Dallas
San Francisco..
Total
United States long-term
securities
United States short-term
securities
Other earning assets
Total
held

Net increase.

$8,216
70,605
6,290
5,399
3,913
9,062
30,856

170

Weekly reports from about 750 member
banks in leading cities for the
Condition of peT[0^ of October 18 to Nor
member banks.
.
vember 15 indicate an increase
of 360.4 millions in their aggregate holdings of
United States bonds, other than circulation
bonds, the total for the latter date—887.3
millions—being about 200 millions in excess of
the largest total shown prior to the conclusion
of the fourth war loan. For the central reserve city banks the increase in these bond holdings—composed mainly of Liberty bonds—is
156 millions, of which over 95 millions represents the increase at the Greater New York
member banks. United States certificates on
hand because of the large amounts delivered to
the Federal Reserve Banks in payment for
Liberty bonds subscribed show a reduction
from 1,730 to 954 millions. For the banks in
,the central reserve cities a decrease of this item
from 938.2 to 491.8 millions and for the Greater
New York banks a decrease from 808.8 to
M0.2 millions are noted. Loans secured by
United States war obligations show the largest
absolute and relative increase from 500.3 to
1,203.2 millions, the banks in the central reserve cities reporting an increase under this

1172

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

head of 413.6 millions and the Greater New from 78.9 to 78.7 per cent. For the banks in
York banks alone an increase of 390.7 millions. the central and other reserve cities slight rises
Combined holdings of war securities and loans of this ratio are noted. "Excess reserves7'
supported by such securities show a rise from show considerable fluctuations from week to
2,757.2 to 3,044.5 millions for all reporting week, the high level of 232.2 millions being
banks and from 1,218.9 to 1,336.1 millions for shown for October 25 and the lower level of
the Greater New York banks alone. Mean- 42.1 millions on November 15. For the cenwhile there has been an increase in other loans tral reserve city banks a similar development
and investments from 10,508.9 to 10,605.0 is noted, the high point- 148.5 millions—being
millions, and a proportionate increase at the reached on October 25, the Friday following
banks in Greater New York, with the result the close of the loan, and the low point -27.3
that the share of United States war securities millions on November 15.
and war paper combined in total loans and
During the month ending November 10 the
investments as reported has risen from 20.4 to
net outward movement of gold
Gold Imports
21.9 per cent for all reporting banks and from
was $2,517,000, as compared
and exports.
23.9 to 25.4 per cent for the New York banks.
with a not inward movement
of $284,000 for the month ending October 10,
For the two weeks following the close of the
loan the volume of Government deposits shows Gold imports for the month, amounting to
the large increase from 459.6 to 1.286.5 millions. $1,479,000, came largely from Canada, Mexico,
Since November 1 there have been withdrawals and Salvador, while gold exports, totaling
on a large scale7 though the November 15 total $3,996,000, were consigned chiefly to Chile and
of 869.4 millions is still over 400 millions in- Mexico.
excess of the total shown on October 18. CenThe gain in the country's stock of gold since
tral reserve and New York City banks report August 1, 1914, was $1,070,389,000, as may be
a similar development. Net demand de- seen from the following exhibit:
posits, on the other hand, move in the opposite
[000 omitted.]
direction, the two weeks following the close of
the loan witnessing a decrease from 9/796.3 to
Excess of
imports
Imports. Exports. over ex9,354.5 millions, and the two weeks in Novemports.
ber an increase back to 9,659.8 millions. Net
demand deposits of the New York banks follow Aug. 1 to Dec. 31, 11)!4
§104,972
i 881,719
3,253
31,426
420,529
1
451', 955 I
a similar course, declining from 4/222.2 on .Tan". 1 to Dec. 31, 1915
155,793
529,952
Jan. to Dec. 31, 1916
G8h,745 ;
372.171
181,542
553,713 !
Jan. 1 to "Doc. 31,1917
October 18 to 4,087 millions on November 1, Jsn. l t o Nov. 10, 19! 8
20'. 085
58,054 i
?,8, 500
and rising again to 4,199.1 millions on NovemTotal
1,070,389
1,773,320 |
702,031
ber 15. Total time deposits show a slight in' Excess of exports over imports.
crease from 1,441.3 to 1,443.5 .millions.
Aggregate reserve balances (with the Fed- Final figures compiled by the Treasury Deeral Reserve Banks) of all reporting banks department from the returns
The fourth and
aa
clined during the four weeks from 1,213.5 to
1,183.9 millions, while cash in vault went up subsequent Joans, .banks show that the success
from 380.7 to 386.2 millions. Because of the of the fourth liberty loan has been even greater
large investments in Government securities and than had been expected or than was indicated
the still larger increase in the holdings of v?2g in the preliminary announcement given in the
paper, the ratio of deposits to investments, last issue of the FEDERAL RESERVE BULLETIN.
notwithstanding the considerable increase in The approximate final figures for subscriptions
Government deposits, shows a slight decline for the fourth Liberty loan are now as follows:




f f

DECEMBER 1,

FEDERAL RESERVE BULLETIN.

1918.

1173

President his resignation as Secretary of the
Treasury and has announced his intention to
return to private life;
125.44
Boston
• SoOO, 000,000 8632,221,;
'
i 125.95 1
Therefore be it Resolved, That the Board deRichmond
280,000,000
200 j
119.75
59^763!
Philadelphia
' 500) 000.000
050 I
117.00 sires to put on record this expression of its ad702,059j
Cleveland
600,000,000
115.82 miration of the able and brilliant
145,944. 800 !
Dallas
; 126,000' 000
states115.06
210,000,000
211,6281 150 i
Minnea polis
11-1.17 manship
shown by the Secretary of the
•102,000,000
459.000; 300 !
San Francisco
113.99
260;000,000
296', 3S8, 000 \
St. Louis
1.13.59 Treasury in the discharge of his official duties
.800,000.000 2,041,778! 550 !
Now York:
600
113.48 during a period when he was confronted by
192.000; ooa
217,SS5,
Atlanta
200
113.32
29-1.649,
Kansas City
260,000)000
450 :
111.40 financial problems
of greater variety and
969)209,
870,000,000
Chicago....'
000 i
magnitude than hare ever faced the finance
6.954,875,200 .
Total
6,000,000,000
' 33,820,850 j .
Unitud States Treasury
minister of any government, and to testify to
116. 18 its deep appreciation of the splendid and inTotal
'
!fi, 989.017,000
spiring" example he lias left to ail who were
privileged to have association, with him., of
The rehabilitation of European industries to self-sacrificing and untiring; devotion to the
be effected at a time when urgent necessity for public interest.
Be it further resolved, That tho members of
renewed sales of securities still exists, suggests
the Board desire to express their profound
the probable effect of a double burden upon
Mr.
the banking resources of the community. Ad- regret at the retirement ofofficialMcAdoo and
the termination of their
association
ditional bond sales, unless preceded by an with him, and to assure him that he carries
elimination of inflated conditions, by genuine with him the cordial good wishes of each and
and rigid restriction of credit must either pre- every member for his future welfare and convent the banking mechanism of the country tinued success in whatever field lie may enter.
from functioning as it otherwise would in faciliThe usual quarterly meeting of the Advisory
tating the reconstruction of European industry
Council with the Federal ReBoard
Mondav and
and at the same lime assisting in the resump- MeetogofAdvisorv Conned.
•'
tion of domestic development, so long arrested
Tuesday, iNovember 13 and 19.
as a result of the war, or must be used as a
resulted in a full discussion of the business and
basis for the furnishing of the needed funds
banking situation of the country, with particuthrough Government advances to the allied
lar reference to the transition from war to peace
nations. Not all of the multifarious demands activities. Eleven members of the council were
which are now being made upon the resources present, and it was stated that reports from all
of the country can be complied with, but a sections of the country thus represented indichoice must be made between those of a greater cated that both bankers and business men view
and those of a less degree of urgency. Such an with equanimity and confidence the nation's
adaptation of resources to the use to be made ability to meet such problems as may confront
of them is unquestionably an essential element it during the reconstruction period. The subin the maintenance of banking soundness and ject of after-war policies, both domestic and
liquidity.
foreign, of the Federal Reserve system constiThe Secretary of the Treasury, in a letter tuted one of the most important topics of disaddressed to the President un- cussion at the meeting, and it was the unaniResignation of
der date of November 14 and mous view of the members that the policy of
the Secretary of
published elsewhere in this is- the Federal Reserve Banks should be as liberal
the Treasury.
sue of the BULLETIN, having as consistent with safety, while there should
presented his resignation, the Board has placed unquestionably be a systematic effort, in comon record the following resolutions:
mon with other allied countries, to restore the
Whereas Hon. W. G. McAdoo, ex oflicio free market for and movement of gold which
chairman of this Board, has tendered to the existed before the war. Attention was called




District.

Quota.

Subscribed. ! Per cent.

}

j

1174

FEDERAL RESERVE BULLETIN".

to the importance of reestablishing a free gold
market and of action on the part of Federal
Reserve Banks, designed conservatively to control and regulate the movement of gold be twee n
countries. An interesting recommendation
made by the council was to the effect that the
net earnings of Federal Reserve Banks should
be accumulated until the surplus funds of the
banks shall amount to 100 per cent of the paid
in capital stock of each such bank, after which
total net earnings in excess of such dividends
should be paid to the United States as a franchise tax.
Resignation of the Secretary of the Treasury.
The following correspondence between the
President and the Secretary of the Treasury
was made public in Washington on November 22:
NOVEMBER 14, 1918.
DEAR MR. PRESIDENT: NOW that an armistice has been

signed and peace is assured, I feel at liberty to apprise you
of my desire to return, as soon as possible, to private life.
I have been conscious, for some time, of the necessity
for this step, but, of course, I could not consider it while
the country was at war.
For almost six years I have worked incessantly under
the pressure of great responsibilities. Their exactions
have drawn heavily on my strength. The inadequate
compensation allowed by law to Cabinet officers (as you
know, I receive no compensation as Director General of
Railroads) and the very burdensome cost of living in
Washington have so depleted my personal resources that
I am obliged to reckon with the facts of the situation.
I do not wish to convey the impression that there is any
actual impairment of my health, because such is not the
fact. As a result of long overwork, I need a reasonable
period of genuine rest to replenish my energy. But more
than this, I must, for the sake of my family, get back to
private life to retrieve my personal fortunes.
I can not secure the required rest nor the opportunity
to look after my long neglected private affairs unless I am
relieved of my present responsibilities.
I am anxious to have my retirement effected with the
least possible inconvenience to yourself and to the public
service, but it would, I think, be wise to accept my resignation now, as Secretary of the Treasury, to become
effective upon the appointment and qualification of my
successor, so that he may have the opportunity and advantage of participating promptly in the formulation of
the policies that should govern the future work of the
Treasury. I would suggest that my resignation as Director




DECEMBER 1, 191Sc

General of Railroads become effective January 1, 1919, or
upon the appointment of my successor.
I hope you will understand, my dear Mr. President,
that I would permit nothing but the most imperious demands to force my withdrawal from public life. Always
I shall cherish as the greatest honor of my career the opportunity you have so generously given me to serve the
country under your leadership in these epochal times.
Affectionately, yours,
W. G. MCADOO.
The PRESIDENT,

The White House.

NOVEMBER 21, 1918.
MY DEAR MR. SECRETARY: I was not unprepared for

your letter of the 14th because you had more than once, of
course, discussed with me the circumstances which have
long made it a serious personal sacrifice for you to remain
in office. I knew that only your high and exacting sense
of duty had kept you here until the immediate tasks of
the war should be over. But I am none the less distressed.
I shall not allow our intimate personal relation to deprive
me of the pleasure of saying that in my judgment the
country has never had an abler, a more resourceful and yet
prudent, a more uniformly efficient Secretary of the
Treasury; and I say this remembering all the able,
devoted, and distinguished men who preceded you. I
have kept your letter a number of days in order to suggest,
if I could, some other solution of your difficulty than the
one you have now felt obliged to resort to. But I have
not been able to think of any. I can not ask you to make
further sacrifices, sorious as the loss of the Government will
be in your retirement. I accept your resignation, therefore, to take effect upon the appointment of a successor,
because in justice to you I must.
I also, for the same reasons, accept your resignation as
Director General of Railroads, to take effect, as you suggest,
on the 1st of January next, or when your successor is
appointed. The whole country admires, I am sure, as I
do, the skill and executive capacity with which you have
handled the great and complex problem of the unified
administration of the railways under the stress of war uses,
and will regret, as I do, to see you leave that post just as
the crest of its difficulty is passed.
For the distinguished, disinterested, and altogether
admirable service you have rendered the country in both
posts, and especially for the way in which you have guided
the Treasury through all the perplexities and problems of
transitional financial conditions and of the financing of a
war which has been without precedent alike in kind and
in scope I thank you with a sense of gratitude that comes
from the very bottom of my heart.
Gratefully and affectionately yours,
WOODROW WILSON.
Hon. WILLLIAM G. MCADOO,
Secretary of the Treasury.

FEDEBAL EESEBVE BULLETIN.

DECEMBER 1, 19.18.

Transit and Audit Conferences.

1175

Meeting of Advisory Council.

At the suggestion of Governor Harding of
On November 19, there was held a session
the Federal Reserve Board the transit man- of the Federal Reserve Board and Federal
agers and auditors of the Federal Eeserve Advisory Council in accordance with the
Banks met at the Congress Hotel, Chicago, 111., requirements of the Federal Reserve act.
on November 11, 12, 13, and 14 for the purpose This session is the last that will be held during
of considering matters relating to the clearing this year. The following members of the
and collection system, also questions relating Advisory Council were present: Mr. James B.
to transactions between Federal Eeserve Banks, Forgan, Chicago; Mr. L. L. Rue, Philadelphia;
including their branches.
Mr. J. P. Morgan, New York; Mr. Daniel G.
The meetings were attended by representa- Wing, Boston; Mr. W. S. Rowe, Cincinnati;
tives from all the Federal Reserve Banks and Mr. J. W. Norwood, Richmond; Mr. C. A.
from the Federal Reserve Board. The dis- Lyerly, Chattanooga; Mr. F. O. Watts, St.
cussion at the transit conference, which was Louis; Mr. John R. Mitchell, Minneapolis;
the sixth general meeting held by the transit Mr. E. P. Wilmot, Dallas; Mr. Herbert Fleishmanagers since the inauguration of the Federal hacker, San Francisco.
Reserve system, related mainly to the developThe session developed a full discussion of the
ment and improvement in operation of the business and banking situation of the country,
interdistrict clearing system. The principal with particular reference to the transition
topics covered were: (a) Operation of the from war to peace activities. Reports from all
clearing and collection system; (5) ways and sections of the country indicate that both
means to bring about additions to the par list bankers and business men view with equanim(items on about 19,000 member and non- ity and confidence the Nation's ability to meet
member banks are now collectible at par whatever problems may confront it.
through the Federal Reserve Bank); (c) soIn addressing the meeting at the opening
called "float" carried by Federal Reserve session Governor Harding reviewed the situaBanks; (d) harmonizing interdistrict time tion produced by the conclusion of the war,
schedules; (e) extension of facilities to member taking a retrospective view of what had been
banks; and (f) operation of the gold settlement accomplished during the last few years, a
fund.
paraphrase of which is in part as follows:
Discussion at the audit conference, the " When the banks were organized on November 16,1914,
fourth since the inauguration of the sy8tem, the shock given to credit institutions and industries byrelated both to uniformity in accounting reason of the outbreak of the European war had largely
between Federal Reserve Banks and reports subsided. Through the measures taken, and particularly
through the issue of the emergency currency provided by
submitted by them to the Federal Reserve the Aldrich-Vreeland Act, as amended by the Federal
Board as well as to internal accounting Reserve act, and through the reduction of member-bank
required reserves, the Federal Beserve Banks found themmethods.
The recommendations made by the two selves at the outset approaching a period of easy money. In
1915 and up to the early months of 1916, there was
conferences, at which nearly one hundred plethora of money that most of the Federal Reserve such a
Banks
separate questions were discussed, have been were unable to make expenses, and the control consubmitted to the Federal Reserve Banks templated over the banking situation by means of disand the Federal Reserve Board, and it is count rates vested in the Board and the Federal Reserve
expected that, as a result of the conferences, Banks was nullified. Discount rates all over the country
were abnormally low. As the Federal Reserve Banks
there will be greater uniformity in handling were unable to get business under the prevailing low rates,
interbank transactions and that many valuable they certainly would have gotten even less business at
improvements will be effected in internal higher rates. Owing to the urgent demands of European
belligerents for supplies and munitions of war for quick
accounting methods.




93190—18

3

1176

FEDERAL RESERVE BULLETIN.

delivery, and as the result of their policy of shipping
gold into this country in payment of their obligations here,
we experienced abnormally easy-money conditions, which
created a good market for foreign-owned American securities. The result was that we gained something over
a billion dollars in gold from January 1,1915, to January
1,1917. We saw a very large increase in the gold volume
of bank credits is a result of our gold expansion.
"The only period when the Federal Reserve Board was
able to exercise any effective control over the banking
situation was during the last two or three months of 1916
and the first quarter of 1917. You will remember that
during these months the Board discouraged the purchase
of municipal warrants, advanced discount rates, and advised the Federal Reserve Banks to put their affairs in
the most liquid shape possible, and that very material
increases in reserves had been effected by the 1st of April,
1917. I believe you gentlemen will agree with me that
the United States entered the war better prepared from a
banking standpoint than in any other line of activity.
After April 6, 1917, as you know, war necessities became
paramount and imperative. It is not within the power of
any group of banks or of any banking system to regulate
the financial demands of war. War is a hard taskmaster;
munitions and supplies must be had at all hazards and
transported to the front without delay, and the only
province of the banking community in this connection is
to 'come across' with the capital necessary to procure the
goods and man power required. The military organization makes its requisitions and all other activities must
adjust themselves to the military demands. Now, we are
approaching the time of general international readjustment and reconstruction, and while the war, as far as
actual hostilities are concerned, is ended, it is not over
in a financial sense and from a standpoint of permanent
adjustment. These problems of readjustment must be
met by the civil authorities of the various nations supported by their military and naval power.
"Indications are that we are coming back rapidly to a
peace basis. A great many of the restrictions imposed
by the War Industries Board and other branches of executive departments of the Government are fast being removed. For example, the domestic use of gold and silver
for industrial purposes and in the arts has been freed of
restrictions. I believe that the removal of restrictions
against the use of gold and silver in the arts will have a
very good effect because while it may result in the presentation of some Federal Reserve notes for redemption
there will be afforded an opportunity to demonstrate that
the Federal Reserve note is what it purports to be—
redeemable in gold—and will show the people that there
is no premium on gold in this country, which can be
obtained by the presentation of Federal Reserve notes.
"The restrictions imposed upon the exportation of gold
were made effective over a year ago (in September, 1917)
by an Executive order of the President which put the
whole matter in the hands of the Secretary of the Treasury,




DECEMBER i,

1918.

who, in turn, gave to the Federal Keserve Board power
to issue licenses in specific cases. The question arisen as
to|when the Board should advise that these restrictions
be modified or lifted entirely.
"The suggestion has been made that it would be wise
policy for the Federal Reserve Banks to reduce their rates
on bankers' acceptances against the exportation and importation of goods. Such a course would give the banks
quickly available resources in the shape of prime investments and would enable us to meet foreign competition.
There would be no reason then for anyone to hesitate as
between drawing in dollars or in sterling or feel obliged
to use sterling because of lower rates. In order to put
the banks in a position to give these low rates it seems
necessary to continue the existing rates on our internal
transactions. There does not appear to be any reason
why we should consider at this time any reduction of the
discount rate on 90-day commercial paper or member
banks' collateral notes.
"Upon the entrance of the United States into the wax,
the Federal Reserve Board, in line with its policy of
supporting the Government to the utmost of its ability,
established a differential rate on paper secured by Government obligations. The rate of interest on Treasury
certificates and Government bonds was established by
the Secretary of the Treasury after consultation with
various interests all over the country, and in order to
make it possible for banks to engage in these transactions
without being penalized the Board felt that it would be
helpful to establish a differential. The result has been
that the invested resources of the Federal Reserve Banks
are between 70 per cent and 80 per cent in paper secured
by Government obligations and the balance in commercial obligations, with the further effect that the Federal
Reserve notes outstanding are thus indirectly secured
proportionately by Government obligations,
" I t is evident that a reduction in the Federal Reserve
Banks' rate on bankers' acceptances will have a tendency
to restore the proper equilibrium in the banks' invested
resources and give them an opportunity gradually to work
off these obligations secured by Government issues.
"Whenever we establish a free gold market in this
country we should be particularly careful to see that it is
not one-sided and that it works both ways. Take the ease
of a bank which suspends business and then is reorganized
within a brief period. It as a rule provides for the payment of old deposits over a period of months or years in
installments. It then opens its doors for business; any
new deposits coming in are subject to payment in cash
on demand, old deposits being treated as time obligations
until due under the terms of the agreement. It seems to
me that whoever has authority in the matter should require, whenever we come to a free gold basis, some definite
understanding whereby such gold operations will be
engaged in as current business and upon a basis of reciprocity, so that whenever our trade balance should permit
or require there should be no obstruction to our drawing

'.

1. 1918.

FEDEBAL RESERVE BULLETIN.

in gold because of the erection of artificial barriers on
account of old war debts. Unless our free gold market is
established upon that basis, a nation might withdraw gold
and impound it as a reserve against its war debts instead
of treating the gold transaction as one of current business."

1177

Regarding after-war policies, it was recommended that the Federal Reserve Banks act
as liberally as is consistent with safety and
that consideration of the status of the gold
embargo be left in the hands of the present
committee of the Federal Reserve Board. The
reestablishment of a free gold market as soon
as can conveniently and property be done was
recommended as parr; of the after-war reconstruction plan.
As an amendment to the Federal Reserve
act the Advisory Council suggested the following changes:

The Advisory Council considered a number
of important questions, among them the attitude properly to be adopted with reference to
Federal Reserve notes. On this point the view
was taken that "during the period of readjustment and reconstruction on which we are now
entering sudden changes in financial conditions
are likely to arise which will have to be met
with practical banking judgment. It would
seem to be undesirable to take any steps to SEC. 7. After all necessary expenses of a Federal Reserve
check further growth in the volume of Federal Bank have been paid or provided for, the stockholders
Reserve notes issued. The expansion which shall be entitled to receive an annual dividend of 6 per
cent on the paid-in capital stock,
shall
has taken place recently incident to war be cumulative. After the aforesaid which dividend have
dividend claims
financing and which will continue under addi- been fully met all the net earnings shall be paid into a
tional Government financing and probably surplus fund until it shall amount to 100 per cent of the
through the reconstruction period is made paid-in capital stock of such bank, after which all the net
possible chiefly through the issue of Federal earnings in excess of aforesaid dividend shall be paid to
Reserve notes. Their issue and redemption | the United States as a franchise tax.
respond to the requirements of trade. NatuThe Council further reported that—
ral and not artificial methods should control
" I t is generally conceded that following the
the situation."
declaration of peace, this country will have an
As to the development of bankers' accept- opportunity to develop its foreign trade to an
ances the view was taken that this was likely extent impossible before the war. If we are
to be a matter of gradual growth to be brought to develop and maintain our export and import
trade it should be financed by American banks
about by a natural process of evolution.
and bankers, and it is therefore essential that
With reference to the question of drafts the member banks be granted additional acdrawn for the purpose of furnishing dollar ex- ceptance powers to properly lake care of the
change the Council took the view that the increasing volume of dollar exchange and
drawing of such drafts to create exchange from credits.
"We recommend that the Federal Reserve
countries other than those already prescribed
may later become necessary, but that the mat- act be amended as soon as possible so as to
allow member banks to accept
forter is one that can be best considered as con- eign transactions up to 200 peron purely their
cent of
ditions develop.
capital and surplus. This limit to include
So far as relates to the extension of American acceptances of foreign banks or bankers for
banking facilities abroad the Council held that the account of and uruler the guaranty of the
branch banking abroad may be considered to member banks. This acceptance power to be
have developed quite satisfactorily, and that in addition to that now provided by the act for
under peace conditions there will undoubtedly domestic acceptances.''
be a natural development which calls for no
special steps. In line with the position already
Consolidation of National Banks.
taken by the Board the Council held that the
question of the reserves of foreign branches
On November 7 the act to provide for the
might to very good effect be left entirely to the consolidation of national banking associations,
which has been before Congress for some tima
discretion of the parent institution.




1178

FEDERAL RESERVE BULLETIN,

past, became law through the signature of the
President. The text of the new measure is
as follows:
[PUBLIC—No. 240—65TH CONGRESS.]

[IE. R. 10205.]
An Act To provide for the consolidation of national
banking associations.
Be it enacted by the Senate and House of Representative of
the United States of America in Congress assembled, That

any two or more national banking associations located
within the same county, city, town, or village may, with
the approval of the Comptroller of the Currency, consolidate into one association under the charter of either
existing banks, on such terms and conditions as may be
lawfully agreed upon by a majority of the board of directors of each association proposing to consolidate, and be
ratified and confirmed by the affirmative vote of the shareholders of each such association owning at least twothirds of its capital stock outstanding, at a meeting to be
held on the call of the directors after publishing notice
of the time, place, and object of the meeting for four consecutive weeks in some newspaper published in the place
where the said association is located, and if no newspaper
is published in the place, then in a paper published nearest thereto, and after sending such notice to each shareholder of record by registered mail at least ten days prior
to said meeting: Provided, That the capital stock'of such
consolidated association shall not be less than that required under existing law for the organization of a national
bank in the place in which it is located: And provided
further, That when such consolidation shall have been
effected and approved by the comptroller any shareholder of either of the associations so consolidated who
has not voted for such consolidation may give notice to
the directors of the association in which he is interested
within twenty days from the date of the certificate of
approval of the comptroller that he dissents from the plan
of consolidation as adopted and approved, whereupon he
shall be entitled to receive the value of the shares so held
bv him, to be ascertained by an appraisal made by a committee of three persons, one to be selected by the shareholder, one by the directors, and the third by the two so
chosen; and in case the value so fixed shall not be satisfactory to the shareholder he may within five days after
being notified of the appraisal appeal to the Comptroller
of the Currency, who shall cause a reappraisal to be made,
which shall be final and binding; and if said reappraisal
shall exceed the value fixed by said committee the bank
shall pay the expenses of the reappraisal; otherwise the
appellant shall pay said expenses, and the value so ascertained and determined shall be deemed to be a debt
due and be forthwith paid to said shareholder from said
bank, and the share so paid shall be surrendered and after
due notice sold at public auction within thirty days
after the final appraisement provided for in this act.
SEC 2. That associations consolidating with another
association under the provisions of this act shall not be
required to deposit lawful money for their outstanding
circulation, but their assets and liabilities shall be reported by the association with which they have consolidated. And all the rights, franchises, and interests of the
said national bank so consolidated in and to every species
of property, personal and mixed, and choses in action
thereto belonging, shall be deemed to be transferred to
and vested in such national bank into which it is con-




DECEMBER 1,

1918.

solidated without any deed or other transfer, and the
said consolidated national bank shall hold and enjoy the
same and all rights of property, franchises, and interests
in the same manner and to the same extent as was held
and enjoyed by the national bank so consolidated therewith.
Approved, November 7, 1918.

After the War: The Gold Standard and Currency
in Great Britain.
Herewith is reprinted in full, as being of exceptional interest, the first interim report presented to the British Parliament of a committee
appointed "to consider the various problems
which will arise in connection with currency
and the foreign exchanges during the period
of reconstruction and report upon the steps
required to bring about the restoration of normal conditions in due course, and to consider
the working of the Bank Act, 1844, and the
constitution and functions of the Bank of England, with a view of recommending any alterations which may appear to them to be necessary
or desirable."
The membership of the committee consisted of:
Lord Cunliffe, governor of the Bank of England, chairman.
Sir Charles Addis, Hongkong & Shanghai
Banking Corporation.
The Hon. Rupert Beckett, Beckett & Co.
Sir John Bradbury, secretary to the treasury.
G. C. Cassels, Bank of Montreal.
Gaspard Fairer, Baring & Co.
The Hon. Herbert Gibbs, Antony Gibbs &
Sons.
W. H. N. Goschen, Chairman of the clearing
bankers' committee.
Lord Inchcape, of Strathnaver.
R. W. Jeans, Bank of Australasia.
A. C. Pigou, professor of political economy?
Cambridge University.
G. F. Stewart, ex-governor of the Bank of
Ireland.
William Wallace, Royal Bank of Scotland.
G. C. Upcott, of the treasury and ministry
of reconstruction, secretary.

DECEMBER 1,

INTRODUCTION.

1. We have the honor to present herewith an
interim report on certain of the matters referred
to us in January last. In this report we
attempt to indicate the broad lines on which
we think the serious currency difficulties which
will confront this country at the end of the
war should he dealt with. The difficulties
which will arise in connection with the foreign
exchanges will be no less grave, but we do not
think that any recommendations as to the
emergency expedients which may have to be
adopted in the period immediately following
the conclusion of peace can usefully be made
until the end of the war is clearly in sight and
a more definite opinion can be formed as to
the conditions which will then prevail. We
propose also to deal in a later report with
questions affecting the constitution and management of the Bank of England, and with the
applicability of the recommendations contained in this report to Scotland and Ireland,
in regard to which we have not yet taken
evidence. We have therefore confined our
inquiry for the present to the broad principles
upon which the currency should be regulated.
We have had the advantage of consultation
with the Bank of England, and have taken oral
evidence from various banking and financial
experts, representatives of certain chambers of
commerce and others who have particularly
interested themselves in these matters. We
have also had written evidence from certain
other representatives of commerce and industry. Our conclusions upon the subjects
dealt with in this report are unanimous, and
we can not too strongly emphasize our opinion
that the application, at the earliest possible
date, of the main principles on which they are
based is of vital necessity to the financial
stability and well-being of the country. Nothing can contribute more to a speedy recovery
from the effects of the war, and to the rehabilitation of the foreign exchanges, than the
reestablishment of the currency upon a sound
basis. Indeed, a sound system of currency
will, as is shown in paragraphs 4 and 5, in
itself secure equilibrium in those exchanges,
and render unnecessary the continued resort
to the emergency expedients to which we have
referred. We should add that in our inquiry
we have had in view the conditions which are
likely to prevail during the 10 years immediately following the end of the war, and we
think that the whole subject should be again
reviewed not later than the end of that period.




1179

EEDEIUL BESEIWE THTLI-J'.YilC.

1918.

THE

CURRENCY

SYSTEM

BEFORE

THE

WAR,

2. Under the bank charter act of 1844, apart
from the fiduciary issue of the Bank of England
and the notes of Scottish and Irish banks of
issue (which were not actually legal tender),
the currency in circulation and in bank reserves
consisted before the war entirely of gold and
subsidiary coin or of notes representing gold.
Gold was freely coined by the mint without any
charge. There were no restrictions upon the
import of gold. Sovereigns were freely given
by the bank in exchange for notes at par value,
and there were no obstacles to the export of
gold. Apart from the presentation for minting
of gold already in use m the arts (which under
normal conditions did not take place) there
was no means whereby the legal tender currency could be increased except the importation of gold from abroad to form the basis of an
increase in the note issue of the Bank of England or to be presented to the mint for coinage,
and no means whereby it could be diminished
(apart from the normal demand for the arts,
amounting to about £2,000,000 a year, which
was only partly taken out of the currency
supply) except the export of bullion or sovereigns.
3. Since the passing of the act of 1844 there
has been a, great development of the check
system. The essence of that system is that
purchasing power is largely in the form of
bank deposits operated upon by check, legal
tender money being required only for the
purpose of the reserves held by the banks
against those deposits and for actual public
circulation in connection with the payment of
wages and retail transactions. The provisions
of the act of 1844 as applied to that system
have operated both to correct unfavorable exchanges and to check undue expansions of
credit.
4. When the exchanges were favorable, gold
flowed freely into this country and an increase
of legal tender money accompanied the development of trade. When the balance of trade was
unfavorable and the exchanges were adverse,
it became profitable to export gold. The
would-be exporter bought his gold from the
Bank of England and paid for it by a check on
his account. The bank obtained the gold
from the issue department in exchange for
notes taken out of its banking reserve, with
the result that its liabilities to depositors and
its banking reserve were reduced by an equal
amount, and the ratio of reserve to liabilities
consequently fell. If the process was repeated

1180

FEDERAL RESERVE BULLETIN.

sufficiently often to reduce the ratio in a
degree considered dangerous, the bank raised
its rate of discount. The raising of the discount rate had the immediate effect of retaining money here which would otherwise have
been remitted abroad and of attracting remittances from abroad to take advantage of the
higher rate, thus checking the outflow of gold
and even reversing the stream.
j£,,. 5. If the adverse condition of the exchanges
was due not merely to seasonal fluctuations but
to circumstances tending to create a permanently adverse trade balance, it is obvious that
the procedure above described would not have
been sufficient. It would have resulted in the
creation of a volume of short-dated indebtedness to foreign countries which would have
been in the end disastrous to our credit and
the position of London as the financial center
of the world. But the raising of the bank's
discount rate and the steps taken to make it
effective in the market necessarily led to a
general rise of interest rates and a restriction
of credit. New enterprises were therefore
postponed and the demand for constructional
materials and other capital goods was lessened.
The consequent slackening of employment also
diminished the demand for consumable goods,
while holders of stocks of commodities carried
largely with borrowed money, being confronted
with an increase of interest charges, if not with
actual difficulty in renewing loans, and with
the prospect of falling prices, tended to press
their goods on a weak market. The result
was a decline in general prices in the home
market which, by checking imports and stimulating exports, corrected the adverse trade
balance which was the primary cause of the
difficulty.
"
n
6. When apart from a foreign drain of gold,
credit at home threatened to become unduly
expanded, the old currency system tended to
restrain the expansion and to prevent the
consequent rise in domestic prices which ultimately causes such a drain. The expansion of
credit, by forcing up prices, involves an increased demand for legal tender currency both
from the banks in order to maintain their
normal proportion of cash to liabilities and
from the general public for the payment of
wages and for retail transactions. In this case
also the demand for such currency fell upon
the reserve of the Bank of England, and the
bank was|thereupon obliged to raise its rate
of discount in order to prevent the fall in the
proportion of that reserve to its liabilities.




DECEMBER 1, 1918.

The same chain of consequences as we have
just described followed and speculative trade
activity was similarly restrained. There was
therefore an automatic machinery by which
the volume of purchasing power in "this country
was continuously adjusted to world prices of
commodities in general. Domestic prices were
automatically regulated so as to prevent
excessive imports; and the creation of banking
credit was so controlled that banking could
be safely permitted a freedom from State
interference which would not have been possible under a less rigid currency system.
7. Under these arrangements this country
was provided with, a complete and effective
gold standard. The essence of such a standard is that notes must always stand at absolute
parity with gold coins of equivalent face value,
and that both notes and gold coins stand at
absolute parity with gold bullion. When these
conditions are fulfilled, the foreign exchange
rates with all countries possessing an effective
gold standard are maintained at or within the
gold specie points.
CHANGES WHICH HAVE AFFECTED THE GOLD
STANDARD DURING THE WAR.

8. It will be observed that the fall in a number of the foreign exchanges below the old
export specie points which has taken place
since the early part of 1915 * is not by itself a
proof that the gold standard has broken down
or ceased to be effective. During the present
war the depredations of enemy submarines,
high freights, and the refusal of the Government to extend State insurance to gold cargoes
have greatly increased the cost of sending gold
abroad. The actual export specie point has,
therefore, moved a long way from its old
position. In view of our enormous demands
for imports, coupled with the check on our
exports due to the war, it was natural that our
exchanges with neutrals should move toward
the export specie point. Consequently, the
fall in the export specie point would by itself
account for a large fall in our exchange rates.
Such a fall must have taken place in the circumstances, even though all the conditions of
an effective gold standard had been fully
maintained.
9. The course of the war has, however,
brought influences into play in consequence of
1
In the abnormal circumstances at the outbreak of war the neutral
exchanges moved temporarily in our favor owing to the remittance borne
of liquid balances from foreign countries and the "Vi'U..hdniv>"<u of foroigm
credits.

DECEMBER 1,

1918.

FEDEBAL BESEBVE BULLETIN.

which the gold standard has ceased to be effective. In view of the crisis which arose upon the
outbreak of war it was considered necessary,
not merely to authorize the suspension of the
act of 1844, but also to empower the treasury
to issue currency notes for £1 and for 10
shillings as legal tender throughout the United
Kingdom. Under the powers given by the
currency and bank notes act, 1914, the treasury
undertook to issue such notes through the Bank
of England to bankers, as and when required,
up to a maximum limit not exceeding for any
bank 20 por cent of its liabilities on current
and deposit accounts. The amount of notes
issued to each bank was to be treated as an
advance bearing interest at the current bank
rate.
10. It is not likely that the internal demand
.for legal tender currency which was anticipated
at the beginning of August, 1914, would by
itself have necessitated extensive recourse to
these provisions. But the credits created by
the Bank of England in favor of its depositors
under the arrangements by which tlie bank
undertook to discount approved bills of exchange and other measures taken about the
same time for the protection of credit caused
a large increase in the deposits of the bank.
Further, the need of the Government for funds
wherewith to finance the war in excess of the
amounts raised by taxation and by loans from
the public has made necessary the creation of
credits in their favor with the Bank of England.
Thus, the total amount of the bank's deposits
increased from, approximately, £56,000,000 in
July, 1914, to £273,000,000 on July 28, 1915,
and, though a considerable reduction has since
been effected, they now (August 15) stand
as high as £171,870,000. The balances created
by these operations passing by means of payments to contractors and others to the joint
stock banks have formed the foundation of a
reat growth of their deposits which have also
een swelJfed by the creation of credits in
connection with the subscriptions to the various
war loans. * Under the operation of these

1181

f

causes the total deposits of the banks of the
United Kingdom (other than the Bank of
England) increased from £1,070,681,000 on
December 31, 1913, to £1,742,902,000 on
December 31, 1917.
11. The greatly increased volume of bank
deposits, representing a corresponding increase
of purchasing power and, therefore, Ibading in
conjunction with other causes to a great rise
of prices, has brought about a corresponding
demand for Tegal tender currency which could
not have been satisfied under the stringent
provisions of the act of 1844. Contractors are
obliged to draw checks against their accounts
in order to discharge their wages bill—itself
enhanced on account of the rise of prices. It is
to provide this currency that the continually
growing issues of currency notes have been
made. The banks instead of obtaining notes
by way of advance under the arrangements
described in paragraph 9 were able to pay for
them outright by the transfer of the amount
from their balances at the Bank of England to
the credit of the currency note account and the
circulation of the notes continued to increase.
The Government subsequently, by substituting
their own securities for the cash balance so
transferred to their credit, borrow that balance.
In effect, the banks are in a position at will to
convert their balances at the Bank of Engl'and
enhanced in the manner indicated above into
legal tender currency without causing notes to
be drawn, as they would have been under the
prewar system, from the banking reserve of
the Bank of England, and compelling the bank
to appty the normal safeguards against excessive expansion of credit. Fresh legal tender
currency is thus continually being issued, not,
as formerly, against gold, but against Government securities. Plainly, given the necessity
for the creation of bank credits in favor of the
Government for the purpose of financing war
expenditure, these issues could not be avoided.
If they had not been made, the banks would

* This process has had results of such far-reaching importance that it
may be useful to set out in detail the manner in which it operates. Suppose, for example, that in a given week the Government require £10,000,000 over and above the receipts from taxation and loans from the
public. They apply for an advance from the Bank of England, which
by a book ontry places the amount required to the credit of jmblic deposits in the same way as any other banker credits the account of a
customer when he grants him temporary accommodation. The amount
is then paid out to contractors and other Government creditors, and
passes, when the checks are cleared, to the credit of their bankers in
the books of the Bank of England—m other words, is transferred from
public to "other" deposits, the effect of the whole transaction thus
being to increase by £10,000,000 the purchasing power in the hands of
the public in the form of deposits in the joint-stock banks and the bankers'
cash at the Bank of England by the same amount. The bankers' liabilities to depositors having thus increased by £10,000,000 and their cash

reserves by an equal amount, their proportion of cash to liabilities (which
was normally before the war something under 20 per cent) is improved
with the result that they are in a position to make advances to their
customers to an amount equal to four or five times the sum added to
their cash reserves, or, in the absence of demand for such accommodation,
to increase their investments by the difference between the cash received
and the proportion they require to hold against the increase of their
deposit liabilities. Since the outbreak of war it is the second procedure
which has in the main been followed, the surplus cash having been used
to subscribe for treasury bills and other Government securities. The
money so subscribed has again been spent by the Government and returned in the manner above described to the bankers' cash balances,
the process being repeated again and again until each £10,000,000 originally advanced by the Bank of England has created new deposits representing new purchasing power to several times that amount. Before
the war these processes, if continued, compelled the Bank of England,
as explained in paragraph 0, to raise its rate of discount, but, as indicated
below, the unlimited issue of currency notes has now removed this
check upon the continued expansion of credit.




1182

FEDERAL RESERVE BULLETIN.

have been unablfe to obtain legal tender with
which to meet checks drawn for cash on their
customers' accounts. The unlimited issue of
currency notes in exchange for credits at the
Bank of England is at once a consequence and
an essential condition of the methods which
the Government have found necessary to adopt
in order to meet their war expenditure.
12. The effect of these causes upon the
amount of legal-tender money (other than subsidiary coin) in bank reserves and in circulation
in the United Kingdom are shown in the following paragraph.
13. The amounts on June 30, 1914, may be
estimated as follows:
Fiduciary issue of the Bank of England
£18,450,000
Bank of England notes issued against gold
coin or bullion
38,476,000
Estimated amount of gold coin held by banks
(excluding gold coin held in the issue department of the Bank of England) and in
public circulation
123,000,000
Grand total

179,926,000

DECEMBER 1,

1918.

required by the Government) would have been
checked, prices would have fallen, and a large
portion of the surplus notes must have come
back for cancellation. In this way an effective
gold standard would have been maintained in
spite of the heavy issue of notes. But during
the war conditions have not been normal. The
public are content to employ currency notes
for internal purposes, and, notwithstanding
adverse exchanges, war conditions interpose
effective practical obstacles against the export
of golkl. Moreover, the legal prohibition of the
melting of gold coin, and the fact that the importation of gold bullion is reserved to the
Bank of England, and that dealings in it are
limited have severed the link which formerly
existed between the values of coin and of uncoined gold. It is not possible to judge to what
extent legal tender currency may in fact be
depreciated in terms of bullion. But it is
practically certain that there has been some
depreciation, and to this extent therefore the
gold standard has ceased to be effective.

The corresponding figures on July 10, 1918,
as nearly as they can be estimated, were:
Fiduciary issue of the Bank of England
Currency notes not covered by gold
Total fiduciary issues *
Bank of England notes issued against coin
and bullion
Currency notes covered by gold
Estimated amount of gold coin held by banks
(excluding gold coin held by issue department of Bank of England), say
Grand total

RESTORATION OF CONDITIONS NECESSARY TO
THE MAINTENANCE • OF THE GOLD STANDARD
£18,450,000
RECOMMENDED.

230,412,000
248,862,000
65, 368,000
28,500,000
40,000,000
382,730,000

There is also a certain amount of gold coin
still in the hands of the public which ought to
be added to the last-mentioned figure, but the
amount is unknown.
14. As Bank of England notes and currency
notes are both payable at the Bank of England
in gold coin on demand this large issue of new
notes, associated, as it is, with abnormally high
prices and unfavorable exchanges, must have
led under normal conditions to a rapid depletion, threatening ultimately the complete exhaustion, of the bank's gold holdings. Consequently, unless the bank had been prepared to
see all its gold drained away, the discount rate
must have been raised to a much higher level,
the creation of banking credit (including that
i The notes issued by Scottish and Irish banks which have been made
legal tender during the war have not been included in the foregoing figures. Strictly the amount (about £5,000,000) by which these issues
exceed the amount of gold and currency notes held by those banks
should be added to the figures of the presentfiduciaryissues given above.




15. We shall not attempt now to lay doyni
the precise measures that should be adopted
to deal with the situation immediately after
the war. These will depend upon a variety of
conditions which can not be foreseen, in particular the general movements of world prices
and the currency policy adopted by other
countries. But it will be clear that the conditions necessary to the maintenance of an
effective gold standard in this country no
longer exist, and it is imperative that they
should be restored without delay. After the
war our gold holdings will no longer be protected by the submarine danger, and it will
not be possible indefinitely to continue to support the exchanges with foreign countries by
borrowing abroad. Unless the machinery
which long experience has shown to be the
only effective remedy for an adverse balance
of trade and an undue growth of credit is
once more brought into play, there will be
very grave danger of a credit expansion in this
country and a foreign drain of gold which might
jeopardize the convertability of our note i-sue
and the international trade position of the
country. The uncertainty of the monetary
situation will handicap our industry, our position as an international financial center will
suffer, and our general commercial status in

DECEMBER 1,

1918.

FEDERAL RESERVE BULLETIN.

the eyes of the world will be lowered. We are
glad to find that there was no difference of
opinion among the witnesses who appeared
before us as to the vital importance of these
matters.
CESSATION OF GOVERNMENT BORROWINGS.

16. If a sound monetary position is to be
reestablished and the gold standard to be
effectively maintained, it is in our judgment
essential that Government borrowings should
cease at the earliest possible moment after the
war. A large part of the credit expansion
arises, as we have shown, from the fact that
the expenditure of the Government during the
war has exceeded the amounts which they
have been able to raise by taxation or by loans
from the actual savings of the people. They
have been obliged, therefore, to obtain money
through the creation of credits by the Bank of
England and by the joint-stock banks, with
the result that the growth of purchasing power
has exceeded that of purchasable goods and
services. As we have already shown, the continuous issue of uncovered currency notes is
inevitable in such circumstances. This credit
expansion (which is necessarily accompanied
by an evergrowing foreign indebtedness) cannot continue after the war without seriously
threatening our gold reserves and, indeed, our
national solvency.
17. A primary condition of the restoration
of a sound credit position is the repayment of
a large portion of the enormous amount of
Government securities now held by the banks. It
is essential that as soon as possible the State
should not only live within its income but
should begin to reduce its indebtedness. We
accordingly recommend that at the earliest
possible moment an adequate sinking fund
should be provided out of revenue, so that there
may be a regular annual reduction of capital
liabilities, more especially those which constitute the floating debt. We should remark that
it is of the utmost importance that such repayment of debt should not be offset by fresh
borrowings for capital expenditure. We are
aware that immediately after the war there
will be strong pressure for capital expenditure
by the State in many forms for reconstruction
purposes. But it is essential to the restoration
of an effective gold standard that the money
for such expenditure should not be provided
by the creation of new credit, and that, in so
far as such expenditure is undertaken at all,
it should be undertaken with great caution.




1183

The necessity of providing for our indispensable
supplies of food and raw materials from abroad
and for arrears of repairs to manufacturing
plant and the transport system at home will
limit the savings available for new capital expenditure for a considerable period. This caution is particularly applicable to far- reaching
programs of housing and other development
schemes.
The shortage of real capital must be made
good by genuine savings. It can not be met
by the creation of fresh purchasing power in
the form of bank advances to the Government
or to manufacturers under Government guarantee or otherwise, and any resort to such
expedients can only aggravate the evil and
retard, possibly for generations, the recovery
of the country from the losses sustained during
the war.
USE OF BANK OF ENGLAND DISCOUNT RATE.

18. Under an effective gold standard all
export demands for gold must be freely met.
A further essential condition of the restoration
and maintenance of such a standard is therefore that some machinery shall exist to check
foreign drains when they threaten to deplete
the gold reserves. The recognized machinery
for this purpose is the* Bank of England discount rate. Whenever before the war the
bank's reserves were being depleted, the rate
of discount was raised. This, as we have
already explained, by reacting upon the rates
for money generally, acted as a check which
operated in two ways. On the one hand,
raised money rates tended directly to attract
gold to this country or to keep gold here that
might have left. On the other hand, by lessening the demands for loans for business purposes, they tended to check expenditure and
so to lower prices in this country, with the
result that imports were discouraged and exports encouraged, and the exchanges thereby
turned in our favor. Unless this twofold check
is kept in working order the whole currency
system will be imperiled. To maintain the
connection between a gold drain and a rise in
the rate of discount is essential to the safety
of the reserves. When the exchanges are adverse and gold is being drawn away, it is essential that the rate of discount in this country
should be raised relatively to the rates ruling
in other countries. Whether this will actually
be necessary immediately after the war depends on whether prices in this country are
then substantially higher than gold prices

1184

FEDERAL RESERVE BULLETIN.

DECEMBER 1,

1918.

throughout the world. It seems probable that LEGAL LIMITATION OF NOTE ISSUE NECESSARY.
at present they are on the whole higher, but if
20. The foregoing argument has a close concreclit expansion elsewhere continues to be
rapid, it is possible that this may eventually nection with the general question of the legal
control of the note issue. It has been urged
not be so.
in some cjuarters that in order to make possible
CONTINUANCE OF DIFFERENTIAL RATES FOR the provision of a liberal supply of money at
HOME AND FOREIGN MONEY NOT RECOM- low rates during the period of reconstruction
further new currency notes should be created,
MENDED.
with the object of enabling banks to make
19. It has been argued before us that during large loans to industry without the risk of
the period of reconstruction and perhaps for finding themselves short of cash to meet the
many years afterwards it will be possible and requirements of the public for legal-tender
desirable, even though the exchanges are ad- money. It is plain that a policy of this kind
verse, to keep money for home industry sub- is incompatible with the maintenance of an
stantially cheaper in this country than it is effective gold standard. If it is adopted there
abroad and yet retain an effective gold stand- will be no check upon the outflow of gold.
ard by continuing the present practice of Adverse exchanges will not be corrected either
differentiating between home money and for- directly or indirectly through a modification
eign money. It is held that relatively low of the general level of commodity prices in
rates should be offered for home money and this country. On the contrary, as the issue
charged on domestic loans, while gold is at of extra notes stimulates the conditions which
the same time prevented from going abroad by tend to produce an advance of prices, they will
the offer of high rates for foreign money. In become steadily more and more adverse.
our judgment, so soon as the present obstacles Hence the processes making for the withdrawal
in the way of international intercourse are of our gold will continue and no counteracting
removed, any attempt to maintain this differ- force will be set in motion. In the result the
entiation must break down, because it would be gold standard will be threatened with destrucimpracticable to prevent people from borrow- tion through the loss of all our gold.
ing at the low home rate and contriving in one
21. The device of making money cheap by
way or another to relend at the high foreign the continued issue of new notes is thus altorate. This could only be prevented, if at all, by gether incompatible with the maintenance of a
the maintenance of such stringent restrictions gold standard. Such a policy can only lead in
upon the freedom of investment after the war the end to an inconvertible paper currency and
as would, in our opinion, be most detrimental a collapse of the foreign exchanges, with conseto the financial and industrial recovery of this quences to the whole commercial fabric of the
country. Even, however, if differentiation, as country which we will not attempt to describe.
a post-war policy, were practicable, it would This result may be postponed for a time by renot, in our judgment, be desirable. For the strictions on the export of gold and by borlow home rate, by fostering large loans and rowing abroad. But the continuance of such
so keeping up prices would continue to en- a policy after the war can only render the remecourage imports and discourage exports; so dial measures which would ultimately be inthat, even though the high rate offered for evitable more painful and protracted. No
foreign money prevented gold from being doubt it would be possible for the Bank of
drawn abroad, it would only do this at the cost England, with the help of the joint stock
of piling up an ever-growing debt from English- banks, without any legal restriction on the
men to foreigners. It would be necessary at note issue, to keep the rate of discount suffithe same time to continue to pay for our essen- ciently high to check loans, keep down prices,
tial imports of raw materials by borrowing in and stop the demand for further notes. But
the United States and elsewhere, instead of by it is very undesirable to place the whole reincreasing our exports, thus imposing further sponsibility upon the discretion of the banks,
burdens of foreign debt. This process could subject as they will be to very great pressure
not continue indefinitely, and must sooner or in a matter of this kind. If they know that
later lead to a collapse. We are, therefore, of they can get notes freely, the temptation to
opinion that the need for making money dear in adopt a lax loan policy will be very great. In
the face of adverse exchanges can not, and should order, therefore, to ensure that this is not
not, be evaded by resort to differential rates.
done, and the gold standard thereby endan-




DECEMBER 1, 19.18.

FEDERAL RESERVE BULLETIN.

gered, it is, in our judgment, imperative that
the issue of fiduciary notes shall be, as soon as
practicable, once more limited by law, and
that the present arrangements under which
deposits at the Bank of England may be exchanged for legal tender currency without affecting the reserve of the banking department
shall be terminated at the earliest possible
moment. Additional demands for legal tender
currency otherwise than in exchange for gold
should be met from the reserves of the Bank
of England and not by the treasury, so that
the necessary checks upon an undue issue may
be brought regularly into play. Subject to
the transitional arrangements as regards currency notes which we propose in paragraphs
43 to 46, and to any special arrangements in
regard to Scotland and Ireland which we may
have to propose when we come to deal with
the questions affecting those parts of the
United Kingdom, we recommend that the
note issue (except as regards existing private
issues) should be entirely in the hands of the
Bank of England; the notes should be payable
in gold in London only, and should be legal
tender throughout the United Kingdom.
MACHINERY FOR THE CONTROL OF THE NOTE
ISSUE.

22. So far we have addressed ourselves to
the principles upon which the retention and
maintenance of an effective gold standard depend. We have now to consider the particular
machinery in regard to the control of the note
issue by which the observance of these principles can most effectively be secured, and what
modification (if any) may be desirable or permissible in the system in force before the war.
23. We would in the first place observe that,
while the obligation to pay both Bank of
England notes and currency notes in gold on
demand should, in our judgment, be maintained, it is not necessary for the maintenance
of an effective gold standard, nor do we think
it desirable, that there should be an early resumption of the internal circulation of gold
coin. For the present at any rate we think
that it will be more economical that gold
should be held in a central reserve as a backing
for notes in circulation. We do not think that
any legislation on this subject will be required.
People have by now become fully accustomed
to the use of notes, and it is probable that (except for the limited requirements of persons
proposing to travel abroad) they will continue
to circulate instead of gold coin much as they




1185

do at present. Informal action on the part of
the banks may be expected to accomplish all
that is required. If necessary, however, the
circulation of gold coin could be prevented by
making the notes convertible at the discretion
of the Bank of England either into such coin
or into bar gold, though for our own part we
should prefer to maintain the right of the noteholder to receive payment in gold coin and to
trust to the informal steps suggested above to
prevent gold from flowing into internal circulation.
24. Secondly, while it is a necessary condition of an effective gold standard that the import of gold should be free from all restrictions,
it is not necessary to allow gold coin or bullion
obtained otherwise than from the Bank of
England to be exported. In view of the fact
that it is convenient that the Bank of England
should have cognizance of all gold exports, we
think it desirable that the export of gold coin or
bullion should be subject to the condition that
such coin or bullion has been obtained from
the bank for the purpose. Manufactured gold
should be deemed to be bullion unless it is in
the form of articles containing a prescribed
fashion value (say, of 10 per cent). The bank
should be under obligation to supply gold for
export in exchange for its notes. These conditions will be sufficient to enable parity to be
maintained between currency and bullion, since
importers of gold will be free to sell it either
in the market or to the Bank of England.
25. Thirdly, in view of the withdrawal of
gold from circulation, it is, we think, desirable
that the gold reserves of the country should be
held by one central institution, and we recommend therefore that all banks should transfer
any gold now held by them to the Bank of
England, except such small amounts as they
may require to keep for the convenience of
travelers.
In our opinion, the prohibition against the
melting of gold coin should for the present be
maintained.
26. We have carefully considered various
proposals that have been laid before us as regards the basis upon which the fiduciary note
issue should in future be fixed. It has been
urged that the raising of the discount rate by
the Bank of England may be delayed too long
to check effectively an undue expansion of
credit, and that under the rigid restrictions of
the act of 1844 a famine of legal tender mpney
might ensue. Crises of this nature necessitating the suspension of the act arose in 1847,
1857, and 1868, and on the first (wo occasions

1186

FEDERAL RESERVE BULLETIN.

notes were actually issued by the bank in excess of the maximum authorized by law. On
this ground mainly it has been urged that these
rigid restrictions ought to be transformed into
something more elastic. To this end the following principal proposals, either separately or
in combination, have been put before us by
various witnesses:
(1) That the banking and issue department
of the Bank of England should be amalgamated.
(2) That the issue of additional notes, instead of being required to be covered pound
for pound by gold, should be freely allowed,
subject only to the condition that a prescribed
percentage of the total issue should be so
covered.
(3) That, while either an absolute figure for
the maximum fiduciary issue or a maximum
determined on a proportionate basis should be
prescribed by law, provision should be made
ior increases beyond this maximum upon condition of a tax being paid by the bank to the
Government.
These various suggestions we now proceed
to discuss.
27. First, the main effect of the amalgamation of the two departments of the Bank of
England would be to place deposits with the
Bank of England in the same position as regards convertibility into gold as is now held by
the note. It has been argued in favor of this
change that greater security would be given to
the deposits than under the present system.
After careful consideration we are unable to
recommend it. The deposits have at present
the full security of the reserve in the banking
department, and it is obvious that any such
additional security would be at the direct expense of the security of the note. In our
opinion it is desirable that the issue of currency
shall be subject to strict legal regulation, but
that the management of banking should be left
as free as possible from State interference. We
think that the amalgamation of the two departments would inevitably lead in the end to
State control of the creation of banking credit
generally, a contingency which we are convinced would greatly hamper the elasticity
and efficiency with which the banks are able
to meet the requirements of industry.
28. Secondly, the proposal to allow the issue
of fiduciary notes without limit, subject only
to a fixed percentage of the total issue being
held in gold by the Bank of England (or the
issue department of the Bank of England if




DECEMBER 1,

1918.

there is no amalgamation), appears to us objectionable for the following reasons. If, as
happened in general in the German Reichsbank,
other regulations keep the actual note issue
much below the maximum fixed by this proportion, the proportion is not effective and
produces no result. But, if the actual note
issue is really controlled by the proportion, the
arrangement is liable to bring about very violent disturbances. Suppose, for example, that
the proportion of gold to notes is actually
fixed at one-third and is operative. Then, if
the withdrawal of gold for export reduces the
proportion below the prescribed limit, it is necessary to withdraw notes in the ratio of three
to one. Any approach to the conditions under
which the restriction would become actually
operative would thus be likely to cause even
greater apprehension than the limitations of
the act of 1844.
29. This consequence might no doubt be obviated for a time if the joint stock banks themselves kept large reserves of gold and were prepared in the event of the depletion of the bank
of England reserve either by an external or by
an internal drain to use them to make good
the depletion and so dispense for the time
being with the necessity for withdrawing notes
from circulation. It is clear, however, that
unless the same steps in regard to money
rates and the restriction of credit were taken
as would be necessary if the depletion were actually operative, this remedy would be merely
a temporary palliative, since the causes which
had occasioned the drain would continue to
operate unchecked. If, on the other hand, as
some have advocated, the banks were given in
consideration for their assistance in such contingencies, in addition to the right to obtain
notes for the gold brought in, the right to receive advances in further fiduciary notes, the
result, so far as the right was exercised, would
be to neutralize the effect which the gold
brought in would otherwise have had in preserving or restoring the proportion of gold to
circulation, while the Bank of England would
be placed in the very dangerous position of
being under an absolute obligation to create
new credits at the very moment at which a
policy of credit restriction had become essential.
Incidentally we would remark that the minimum percentages proposed by the London
Chamber of Commerce, namely, 33 J per cent of
gold against the Bank of England note issue
and 20 to 25 per cent against a separate issue
of currency notes, would in our opinion be

DECEMBER 1, 1918.

FEDEEAL BESEEVE BULLETIN.

wholly inadequate. The percentage of gold
to the two issues, taken together, would actually be less than is now held. The Manchester Chamber of Commerce propose that
the proportion of gold to notes should be 40
per cent, while Sir Edward Holden was of
opinion that the bank should aim at that proportion of gold in respect to its total liabilities
on account of the notes issued and deposits.
For the reasons indicated above, however, we
have come to the unanimous conclusion that
there are substantial objections to basing the
note issue of this country upon any proportionate holding of gold.
30. There remains, thirdly, the plan of fixing a maximum absolute limit to the fiduciary
note issue, subject to the condition that this
limit may be exceeded on the payment of a
tax to the Government. It is obvious that, if
such a tax is to act as a deterrent, it must be
sufficiently high to secure that no profit should
accrue to the bank as the result of the emergency issue. As this profit necessarily depends to a larger degree upon the rate of interest at which accommodation is given to the
market, we do not think, in view of the great
uncertainty as to the future course of interest
rates, that it is practicable now to name any
figure which could safety be adopted for such
a tax. Unless it is fixed at a sufficiently penal
rate to secure that the normal fiduciary issue
is not exceeded except in circumstances of real
emergency, and then only for a strictly limited
period, the system may afford dangerous possibilities of excessive speculation and lend itself
to the development of crises which more
stringent safeguards might have averted altogether. This criticism has in fact been made
of the German plan, and we are not clear how
the arrangements recently adopted by the
United States, which have not yet been tested
by experience will actually operate. If it were
decided to adopt any such method in this
country, it would be necessary for safety to
take a very high rate which might in factprove to be unduly penal.
31. In view of the comparison with the systems prevailing in foreign countries which have
been put forward by various witnesses, we
would point out that these countries have not
in practice maintained the absolutely free gold
market which this country, by reason of the
vital importance of its position in international
finance, is bound to do. It has therefore been
open to them to have recourse to devices to
steady the rate of discount which, even if suc-




1187

cessful for this purpose, it would be inexpedient and dangerous for us to attempt.
MAINTENANCE OF PRINCIPLE OF BANK CHASTER,
ACT 1844, RECOMMENDED.

32. Having regard to the foregoing considerations, we are of opinion that the principle
of the act of 1844, which has upon the whole
been fully justified by experience, should be
maintained, namely, that there should be a
fixed fiduciary issue beyond which, subject to
emergency arrangements which we recommend below, notes should only be issued in exchange for gold. It is noteworthy that from
1866 till the outbreak of the present war no
suspension of the act was ever necessary. We
think that the stringent principles of the act
have often had the effect of preventing dangerous developments and the fact that they have
had to be temporarily suspended on certain
rare and exceptional occasions (and those
limited to the earlier years of the act's operation when experience of working the system
was still immature) does not, in our opinion,
invalidate this conclusion. We recommend,
therefore, that the separation of the issue and
banking departments of the Bank of England
should be maintained and that the Weekly
Return continue to be published in its presentform.
MODIFICATION OF PROVISIONS OF ACT OF 1844
IN RESPECT OF ISSUE OF EMERGENCY CURRENCY RECOMMENDED.

33. This conclusion, however, has not prevented us from considering with care the possibility of so modifying the act of 1844 as to
make provision for the issue of emergency currency in times of acute difficulty. It might, no
doubt, be sufficient to leave matters as they
were prior to 1914 and to risk the possibility of
the law having to be broken, subject to indemnity from Parliament, but upon the whole
we share the objections which have been expressed in many quarters to this procedure.
We are, therefore, of opinion that the provisions of section 3 of the currency and bank
notes act, 1914, under which the Bank of
England may, with the consent of the treasury, temporarily issue notes in excess of the
legal limit, should be continued in force. It
should be provided by statute that Parliament
should be informed forthwith of any action
taken by the treasury under this provision by
means of a treasury minute which should be
laid before both houses. The statute should

1188

FEDERAL RESERVE BULLETIN.

also provide that any profits derived from the
excess issue should be surrendered by the bank
to the exchequer. It will, of course, be necessary that the bank rate should be raised to,
and maintained at, a figure sufficiently high to
secure the earliest possible retirement of the
excess issue.
34. In connection with these emergency
arrangements we have considered the question
of the reserves which should be held by the
joint-stock banks quite apart from their normal
reserves of legal-tender money. As we do not
contemplate a resumption of the internal circulation of gold, no useful purpose would be
served by their accumulating gold which can
be more effectively employed by the Bank of
England in maintaining the exchanges and
supporting the note issue. We have considered
a proposal that they should be required to hold
a certain proportion of their deposits in the
form of treasury bills and other short-dated
Government securities, which, in the event of a
crisis, might be discounted with the Bank of
England and form the basis of an issue of
emergency currency, if required. While we
think it expedient that such reserves should be
held, we have come to the conclusion that it
would not be desirable to attempt any legal
regulation of the matter. Our attention has,
however, been called to the fact that a committee of bankers have recommended that
banks should in future be required to publish a
monthly statement in the form of Appendix 1
to this report showing the average of their
weekly balance sheets during the month. We
entirely concur in this recommendation and we
suggest that the statement of assets should be
amplified by the addition after "money at call
and at short notice77 of a heading "Government securities maturing within 12 months/ 7
If this is done, we think that the consequent
publicity will be amply sufficient to secure the
object which we have in view.
AMOUNT OF FIDUCIARY NOTE ISSUE AND GOLD
RESERVE.

35.' Having come to the conclusion that the
amount of thefiduciar}^issue should, subject to
what was said in paragraph 33, be fixed by law
at some definite amount, we have next to consider how large this fiduciary issue ought to be.
Assuming the restoration of an effective gold
standard, and given the conventional standards
of banking practice and the customs of the public as regards the use of currency, the amount
of legal-tender currency (other than subsidiary




DECEMBER 1, 19.18.

coin) which can be kept in circulation, including
the currency holdings of the banks and the
banking department of the Bank of England,
will determine itself automatically, since, if the
currency becomes redundant, the rate of discount will fall, and prices will rise; notes will
be presented in exchange for gold for export
and the volume of the currency will be reduced
pro tan to. If, on the other hand, the supply of
currency falls below current requirements, the
rate of discount will rise, prices will fall, gold
will be imported and new notes taken out in
exchange for it.
38. Under the arrangements which we contemplate virtually the whole amount of the
currency gold in the country will be held in a
central reserve at the Bank of England; and
the circulation, in the wide sense in which we
are using the term, will consist (apart from the
subsidiary currency, which we need not now
consider) in part of fiduciary notes and, as
regards the balance, of notes covered by that
reserve. The total circulation being automatically determined, it will follow that the
higher the amount fixed for the fiduciary issue
the lower will be the amount of the covered
issue and, consequently, of the central gold
reserve and vice versa, while, if the fiduciary
issue were fixed at a figure which proved to be
higher than the total requirements of the country for legal-tender currency, the covered issue,
and with it the central gold reserve, would disappear altogether. It is clear, therefore, that
the amount of the fiduciary issue must be fixed
at a figure low enough to make sure, not merely
that there will always be some covered issue,
but that there will always be ei covered issue of
sufficiently substantial amount to secure that
the covering gold which constitutes the central
reserve never falls so low as to give rise to
apprehension as to the stability of the gold
standard.
37. If the postwar requirements proved to
be no larger than the prewar requirements
(about £180,000,000, exclusive of subsidiary
coin, as shown in paragraph 13), it is clear that
the present fiduciary issue of £249,000,000
would have to be reduced by £69,000,000 before
any gold could be retained in the central reserve
at all. Even upon the supposition that the
policy of substituting notes for all gold outside
that reserve is completely successful, in order
to have a central gold reserve of £100,000,000
the fiduciary issue would have to be reduced to
£80,000,000 and, even so, we should have
£60,000,000 less gold in the country than before
the war.

DECEMBER i,

1918.

FEDEEAL RESERVE BULLETIN.

38. The prewar requirements, however, had
relation to the level oi prewar world prices, the
existing conventional standards in regard to
banking reserves, and the habits of the people,
both in regard to the amounts of money which
they carried in their pockets and kept in their
homes and to the use of credit instruments in
place of cash. It is probable that after the war
world prices will stand for many years, if not
permanently, at a greatly enhanced level, and
that the banks may 'well find it desirable to
adopt a higher standard for their holdings of
legal-tender money. Furthermore, any additional economy in the use of legal-tender money
which may 7take place though the extended use
of bankers checks and other credit instruments may be more than offset by the fact
that a larger share of the national income is
likely to be enjoyed by the wage-earning classes
who are the chief users of legal-tender money.
All these causes will tend to increase the amount
of legal-tender money which the country will,
consistently with the maintenance of a gold
standard, be able to retain in bank reserves and
general circulation to a point much above the
prewar figure, but the precise amount of the
increase can only be determined by experience.
39. Until sucn experience has been gained it
would, in our opinion, be dangerous to seek to
lay down any precise figure for the fiduciary
issue. The adoption of an unnecessarily low
figure would result in the accumulation of a
gold reserve of larger dimensions than is strictly
necessary for the protection of the gold standard and the security of our national credit—a
luxury which we shall be ill able to afford in
the difficult times which are ahead—while the
adoption of too high a figure would destroy the
gold standard altogether.
40. It therefore seems desirable to approach
the problem from the other end, and to attempt to fix tentatively the amount which we
should like to see held in gold in the central
reserve, leaving the ultimate dimensions of the
fiduciary issue to be settled as the result of
experience at the amount of fiduciary notes
which can be kept in circulation—in banking
reserves (including the banking reserve of the
Bank of England), and in the pockets of the
people—without causing the central gold reserve to fall appreciably below the amount so
fixed.
41. The prewar gold reserves were about
£38,500,000 in the Bank of England and an
amount estimated at £123,000,000 in the banks
and in the pockets of the people. If the actual
circulation of gold coin ceases and the whole of




1189

the gold is concentrated in the central institution, some economy is permissible in view of its
increased mobility. On the other hand, the
aggregate amount of currency required will undoubtedly be larger. We accordingly recommend that the amount to be aimed at in the first
instance as the normal minimum amount of the
central gold reserve should be £150,000,000,
and that, until this amount has been reached
and maintained concurrently with a satisfactory foreign-exchange position for a period of
at least a year, the policy of reducing the uncovered note issue as and when opportunity
offers should be consistently followed. In view
of the economic conditions which are likely to
follow the restoration of peace, it will be necessary to apply this policy with extreme caution
and without undue rigidity. When the exchanges are working normally on the basis of a
minimum reserve of £150,000,000 the position
should again be reviewed in the light of the
dimensions of the fiduciary issue as it then
exists.
REDUCTION OF PRESENT CURRENCY NOTE ISSUE
DURING INTERIM PERIOD.

42. If these arrangements are adopted, there
will be an interim period beginning after the
completion of demobilization during which itis probable that the present issue of currency
notes will have to be gradually reduced until
experience has shown what amount of fiduciary
notes can be kept in circulation consistently
with the maintenance of this reserve. It was
suggested to us in evidence that, until that
amount has been ascertained, steps should be
taken as soon as possible after the war to reduce
the uncovered issue at the rate of not less than
3 per cent per annum of the outstanding
amount, and that, subject to arrangements for
meeting a temporary emergency, the issue in
any period of six months or one year should not
be allowed to exceed the amount outstanding
in the preceding similar period. We think that
it would be highly desirable to aim at a steady
and continuous reduction, but we are disposed
to doubt whether it will be found to be practicable to work to any precise rule. We confine ourselves therefore to the general recommendation of policy indicated above. We entirely concur, however, in the suggestion that,
when reductions have taken place, the actual
maximum fiduciary circulation in any year
should become the legal maximum for the following year, subject only to the emergency
arrangements proposed in paragraph 33.

1190

FEDERAL RESERVE BULLETIN.

TRANSITIONAL ARRANGEMENTS PENDING REPLACEMENT OF CURRENCY NOTE ISSUE BY A
BANK OF ENGLAND ISSUE.

DECEMBER 1, 1918.

45. When the fiduciary portion of the issue
has been reduced to the amount which experience shows to be consistent with the maintenance of a gold reserve of £150,000,000 in the
issue department of the bank, the outstanding
currency notes should be retired and Bank of
England notes of low denominations substituted, the Bank of England fiduciary issue
being simultaneously increased by an amount
equal to the then issue of currency notes covered by Government securities. As the Bank
of England notes held in the currency note reserve and the gold against them wouid already
appear in the bank return, the only effect on
that return of the ultimate merger would be to
add to the total Bank of England issue the
amount of the fiduciary portion of the currency note issue as ultimately ascertained, and
to add the same amount of Government securities to the securities in the issue department.
46. The settlement as between the treasury
and the bank would take the form of the treasury handing over to the bank in exchange for
a like amount of currency notes withdrawn by
the bank from circulation the Bank of England
notes held for the currency note account, and in
respect of the remainder of the currency notes
withdrawn Government securities. These securities should be either ways and means
advances or treasury bills and other marketable securities, being part of the ordinary public debt, and should be taken at current market
value. In so far as any of the assets of the
currency-note redemption account at the time
of transfer might not come within these categories, they should be retained by the treasury
and other securities substituted. The Bank of
England notes of small denomination would be
issued by the bank in place of the currency
notes withdrawn from circulation, partly in
substitution for the Bank of England notes returned to them from the currency-note reserve
(which would be already covered by gold in the
issue department) and partly in respect of the
bank's new fiduciary issue based on the transferred securities. The profits of the increased
fiduciary issue would be payable by the bank
to the exchequer.

43. It remains for us to consider how and
when the present issue of currency notes is to
be replaced by the Bank of England issue.
There would be some awkwardness in transferring the issue to the Bank of England before
the future dimensions of the fiduciary issue
have been ascertained. We therefore recommend that during the transitional period the
issue should remain a Government issue, but
that such postwar expansion (if any) as may
take place should be covered not by the investment of the proceeds of the new notes in
Government securities, as at present, but by
taking Bank of England notes from the bank
and holding them in the currency note reserve,
and that, as and when opportunity arises for
providing cover for the existing fiduciary portion of the issue, the same procedure should be
followed. The effect of this arrangement
would be that the demands for new currency
would operate in the normal way to reduce the
reserve in the banking department at the Bank
of England, which would have to be restored
by raising money rates and encouraging gold
imports.
44. We should thus in course of time have
the currency note issue covered partly by the
£28,500,000 of gold at present held and partly
by Bank of England notes covered by gold in
tne issue department of the Bank of England;
the balance, forming the fiduciary part of the
issue properly so called, being covered by Government securities as at present. During the
transition stage the greater part at any rate of
the demand for gold for export will fall upon
the Bank of England, since currency notes are
not likely to be presented to any large extent
for actual payment in gold, but will be paid in
by the banks which collect them to the credit
of their accounts with the Bank of England,
the balances thereby created being used when
necessary to draw gold from the Bank of
England for export in the ordinary way. We
accordingly think that it will be desirable that
the Bank of England notes should likewise be
substituted in the currency note reserve, either
SUMMARY OF CONCLUSIONS.
immediately after the war or from time to
time by installments, for the £28,500,000 gold
47. Our main conclusions may be briefly
now held by that reserve, so that when the summarized as follows:
time is ripe for the final transfer the whole of
Before the war the country possessed a comthe gold reserve may be in the hands of the plete and effective gold standard. The provibank.
sions of the bank act, 1844, operated automat-




DECEMBER 1,

1918.

FEDERAL RESERVE BULLETIN.

ically to correct unfavorable exchanges and to
check undue expansions of credit. (Pars. 2
to 7.) ^
During the war the conditions necessary to
the maintenance of that standard have ceased
to exist. The main cause has been the growth
of credit due to Government borrowing from
the Bank of England and other banks for war
needs. The unlimited issue of currency notes
has been both an inevitable consequence and a
necessary condition of this growth of credit,
(Pars. 8"to 14.)
In our opinion it is imperative that after the
war the conditions necessary to the maintenance of an effective gold standard should be
restored without delay. Unless the machinery
which long experience has shown to be the only
effective remedy for an adverse balance of
trade and an undue growth of credit is once
more brought into play, there will be grave
danger of a progressive credit expansion which
will result in a foreign drain of gold, menacing
the convertibility of our note issue and so jeopardizing the international trade position of
the country. (Par. 15.)
The prerequisites for the restoration of an
effective gold standard are:
(a) The cessation of Government borrowing
as soon as possible after the war. We recommend that at the earliest possible moment an
adequate sinking fund should be provided out
of revenue, so that there may be a regular annual reduction of capital liabilities, more especially those which constitute the floating debt.
(Pars. 16 and 17.)
(6) The recognized machinery—namely, the
raising and making effective of the Bank of
England discount rate—which before the war
operated to check a foreign drain of gold and
the speculative expansion of credit in this
country, must be kept in working order. This
necessity can not and should not be evaded by
any attempt to continue differential rates for
home and foreign money after the war. (Pars.
18 and 19.).
(c) The issue of fiduciary notes should, as
soon as practicable, once more be limited by
law, and the present arrangements under which
deposits at the Bank of England may be exchanged for legal-tender currency without affecting the reserve of the banking department
should be terminated at the earliest possible
moment. Subject to transitional arrangements as regards currency notes and to any




1191

special arrangements in regard to Scotland
and Ireland which we may have to propose
when we come to deal with the questions affecting those parts of the United Kingdom, we
recommend that the note issue (except as regards existing private issues) should be entirely
in the hands of the Bank of England. The
notes should be payable in London only and
should be legal tender throughout the United
Kingdom. (Pars. 20 and 21.)
As regards the control of the note issue, we
make the following observations:
(1) While the obligation to pay both Bank
of England notes and currency notes in gold on
demand should be maintained, it is not necessary or desirable that there should be any early
resumption of the internal circulation of gold
coin. (Par. 23.)
(2) While the import of gold should be free
from all restrictions, it is convenient that the
Bank of England should have cognizance of all
gold exports, and we recommend that the export of gold coin or bullion should be subject
to the condition that such coin and bullion has
been obtained from the bank for the purpose.
The bank should be under obligation to supply
gold for export in exchange for its notes,
(Par. 24.)
(3) In view of the withdrawal of gold from
circulation, we recommend that the gold reserves of the country should be held by one
central institution and that all banks should
transfer any gold now held by them to the
Bank of England (Par. 25.)
Having carefully considered the various proposals which have been placed before us as regards the basis of the fiduciary note issue (pars.
26 to 31), we recommend that the principle of
the bank charter act, 1844, should be maintained, namely, that there should be a fixed
fiduciary issue beyond which notes should only
be issued in exchange for gold. The separation of the issue and banking departments of
the Bank of England should be maintained,
and the Weekly Return should continue to be
published in its present fonn. (Par. 32.) ^ i
We recommend, however, that provision for
an emergency be made by the continuance in
force, subject to the stringent safeguards
recommended in the body of the report, of section 3 of the currency and bank notes act, 1914?
under which the Bank of England may, with
the consent of the treasury, temporarily issue
notes in excess of the legal limit. (Par. 33.)

1192

FEDERAL RESERVE BULLETIN.

We advocate the publication by the banks
of a monthly statement in a prescribed form.
(Par. 34.)
We have come to the conclusion that it is
not practicable to fix any precise figure for the
fiduciary note issue immediately after the war.
(Pars. 35 to 39.)
We think it desirable, therefore, to fix the
amount which should be aimed at as the central gold reserve, leaving the fiduciary issue to
be settled ultimately at such amount as can be
kept in circulation without causing the central
gold reserve to fall below the amount so fixed.
We recommend that the normal minimum of
the central gold reserve to be aimed at should
be, in the first instance, £150,000,000; Until
this amount has been reached and maintained
concurrently with a satisfactory foreign exchange position for at least a year, the policy
of cautiously reducing the uncovered note issue
should be followed. When reductibns have
been effected, the actual maximum fiduciary
circulation in any year should become the legal
maximum for the following year, subject only
to the emergency arrangements previously
recommended. When the exchanges are working normally on the basis of a minimum reserve
of £150,000,000, the position should again be
reviewed in the light of the dimensions of the
fiduciary issue as it then exists. (Pars. 40
to 42.)
We do not recommend the transfer of the
existing currency note issue to the Bank of
England until the future dimensions of the fiduciary issue have been ascertained. During the
transitional period the issue should remain a
Government issue, but new notes should be
issued, not against Government securities, but
against Bank of England notes, and, furthermore, when opportunity arises for providing
cover for existing uncovered notes, Bank of
England notes should be used for this purpose
also. Demands for new currency would then
fall in the normal way on the banking department of the Bank of England. (Pars. 43
and 44.)
When the fiduciary portion of the issue has
been reduced to an amount which experience
shows to be consistent with the maintenance
of a central gold reserve of £150,000,000, the
outstanding currency notes should be retired
and replaced by Bank of England notes of low
denomination in accordance with the detailed
procedure which we describe. (Pars. 45 and46.)




DECEMBER 1, 1.918.

APPENDIX I.
PROPOSED MONTHLY STATEMENT TO BE PUBLISHED BY BANKS.

Statement of the averagefiguresof the weekly balance sheets during the month
of
, 19
.
LIABILITIES.

Capital:
Registered
£
Subscribed
Paid up
Reserve fund
Current, deposit, and other
accounts
Acceptances
Indorsements, guarantees,
and other obligations
Notes in circulation

ASSETS.

Cash:
(1) Coin, bank and
currency notes, and
balances with the
Bank of England.. £
(2) Balances ' with
London clearing
agents and with
other banks, bankers, or banking
companies in the
United Kingdom..
(3) Items in transit..
Money at call and at short
notice
British bills of exchange
Foreign bills, foreign bank
bills, and domiciled bills..
Balances abroad
Investments:
(1) Securities of or guaranteed by British Government".
(2) Indian and colonial
government securities,
British corporation
stocks, British railway
debenture and preference stocks
f
(3) Other investments...
Loans and advances
Other assets
Bank premises
Liabilities of customers for
acceptances, as per contra.
Liabilities of customers for
indorsements, guarantees,
and other obligations, as
per contra

New Series of War Savings Stamps.
The Secretary of the Treasury has determined upon the issuance of a new series of warsavings certificates and stamps to be placed
on sale early in 1919 and to be known as the
series of 1919. The new series will have a
maturity date of January 1, 1924, and in practically all respects will be issued on the same
terms and in the same manner as the present
series of 1918.
A new $5 war-saving stamp, blue in color,
bearing the head of Benjamin Franklin, the
apostle of saving and a former Postmaster
General, is in preparation. The new stamp
will be placed on sale early in 1919.
The same thrift stamps and thrift cards now
in use will be continued in 1919 and will be
exchangeable into new series of 1919 war-

DECEMBER 1,

1918.

FEDERAL RESERVE BULLETIN.

savings stamps payable January 1. 1924, in the
same way as the exchange has been made
during this year into the series of 1918 warsavings stamps.
Status of the Trade Aeeeptaee Movement.
Mr. J. H. Tregoe, secretary-treasurer of the
National Association of Credit Men, who lias
been active in the movement for the development of the trade acceptance and its application in the financing of American business, has
prepared the following statement for the FEDERAL RESERVE BULLETIN in which he sets forth
the observations and conclusions of his organization which should, he believes, have careful
consideration, especially as the National Association of Credit Men was the first organization to enter upon the task of introducing
the use of the acceptance method of settlement
between sellers and buyers.
Our first motive was to relate merchandise credits more
intimately with hank credits, and to help business to get
its affairs and methods in such shape that it could not be
taken unawares by untoward happenings, and be subjected to disastrous money strain. We pointed out that
this could be best assured to our merchants and manufacturers if they had in hand that class of instruments which
are most readily available for rediscount at the Federal
Reserve Banks. In other words, we pointed out that
American business men had been given a banking system
of great potential advantage to them, that the investment
preferred above all others under the law creating the system, was true merchandise paper which only our merchants and manufacturers could create. We argued that
for their own safety they should make their paper conform
to the rules for the most readily eligible paper for purchase
and discount at the Federal Reserve Banks.
We pointed out the advantage that business would get
in the formation of an open market for true merchandise
paper such as was most readily rediscountable at the Federal Reserve Banks and urged the folly oi! conducting
one's financial arrangements on open book account and
single name paper upon which open market transactions
could not be built.
Incidentally, we found through the testimony of those
of our member concerns who were quickest to see what
the Federal Reserve act had given American business,
that the trade acceptance in substitution for the openbook account is a great collection instrument, and that it
tends to eliminate abuses which apparently are inherent
in the open book account—abuses which are not only annoying but exceedingly burdensome, such as the neglect
of terms of sale, unreasonable claims, reckless returns, etc.




1193

This secondary reason for the adoption of the acceptance
naturally became first in the mind of many business men
as they saw in the acceptance a cure-all for costly abuses,
and also a means of simplifying collections. The result
was that they asked their customers for acceptances not
that they might usa them for financing their requirements
at the bank, but purely for collection purposes, and perhaps these concerns, if they borrowed at all, continued to
borrow on single name paper.
These concerns missed the first great point of the acceptance but we ask, should the Federal Reserve Banks
for this reason lose interest in the acceptance or feel that
they should not continue to give it a special position in
the rediscount, or give it in other ways their support? In
our opinion the Federal Reserve Banks should not change
their original policy with reference to the acceptance.
The fundamental potential advantage of the acceptance is
present in full force as it originally was; true that advantage has not been as widely appreciated even by large
business concerns as had been hoped, but through the
acceptance, a betterment in our system of high value has
taken place; from almost universal testimony we know
that mercantile credits have through the trade acceptance,
and the agitation for its adoption been greatly improved,
are far more liquid and collection troubles have been appreciably lessened.
Through the trade acceptance, the open book account
has been put through a severe test, and its shortcomings
have been widely recognized and it is, we feel, but a
question of time when we shall have a general substitution of the acceptance method for the open book account
method.
In this progress, we as an association, exerting ourselves
for better credit conditions in all phases, are deeply interested. We should think that the Federal Reserve
Banks would be no less so, for whatever benefits credit
conditions is vitally interesting to them and they should be
as patient in treating errors and misunderstandings and
even willful abuses which here and there have come up
in the adoption of the acceptance method, as we art; inclined to be and as they have been unfailingly in the past.
We feel that the Federal Reserve Banks should not lose
their interest even if the trade acceptance were used exclusively as a collection instrument, immediately, and
not as an instrument for discount, for the latter step is
inevitable as the number of acceptances grows.
The great thing to remember, to our mind, is that the
trade acceptance has stirred up more general interest in
the whole subject of merchandise and bank credits than
anything we have had in this generation. Through the
trade acceptance a vast number of people have been put
on notice of the existence of the Federal Reserve Banks as
live business factors, with which they have a real connection, and the educational work in general has been splendid. That there have been some teachings that have mislead is not to be wondered at, but our observation is that
the misunderstandings and the erroneous thinking have
been coming steadily to the surface and are being corrected.

1194

FEDERAL RESERVE BULLETIN.

Banking Committees on Taxation.
The Commissioner of Internal Revenue has
announced the formation of committees of
banks in various places throughout the country
for the purpose of dealing with questions of
taxation. A statement on the subject issued
on November 15 is as follows:
Following the lead of New York and Cleveland, committees of banking institutions on
Federal taxation are expected to be organized
in the principal cities of the country. The
object of the committees is to promote cooperation among the institutions they represent in matters pertaining to Federal taxation,
particularly in matters of administration.
Unity of action will be sought in a way to
benefit depositors of the banks concerned and
taxpayers generally.
Local problems will be handled by the committees. Problems requiring official interpretation will be submitted directly to the office of
the supervisor of business cooperation, Bureau
of Internal Revenue, at Washington, where, it
is promised, they will receive immediate
attention.
Suggestions and recommendations from the
committees relating to Federal taxation and
methods of administration also will be received
and considered.

Production lades.
In the FEDERAL RESERVE BULLETIN for July
plans were outlined for the establishment of a
series of indexes of business conditions. Certain of these have already made their appearance from time to time as they have been completed. It is now possible to make a definite
statement regarding the data available concerning the physical volume of trade and the
methods which will be employed in presenting
these figures.
Both the actual figures and relative figures
based upon these will be presented. The latter
are of two kinds. Current figures will be ex-




DECEMBER 1,

1918.

pressed as percentages of the averages of figures
for the same periods in each of the years 1911,
1912; and 19f3., An average will be struck, for
example, of the amount of grain received at
the more important seaboard points during the
months of October, 1911, October, 1912, and
October, 1913, and the figure for October, 1918,
expressed as a percentage of the average receipts during the earlier months. By the use
of this method allowance will be made for
seasonal variations in the amount of grain
received. But it is desirable for certain purposes
to show the actual seasonal variation as well.
Hence current figures will also be expressed as
percentages of the averages of figures for the
entire three-year period. To employ the previous illustration, an average will also be struck
of the amount of grain received monthly at the
more important seaboard points during the
years 1911, 1912, and 1913, and the grain receipts during October, 1918, expressed as a
percentage thereof.
Objection may bo raised to the above
method on the ground that- no allowance is
made for growth—in technical language, that
the secular trend is not eliminated. A comparison with conditions existing prior to the
outbreak of the war is alone afforded. , But
reflection will show that this is really no defect
at all. For the methods which have been developed for the elimination of the secular trend
are all based upon the theory of normal growth,
and require that when the disturbing factors
cease to operate this normal growth shall again
be resumed. Who, however, can maintain
that the conditions of the past few years may
not permanently have changed the direction of
the curve which shows this normal trend?
This brings to light the other objection to the
attempt to eliminate the secular trend; the
attempt is based upon past data only, and
hence data which are incomplete and insufficient for the solution of the problem, especially
at a time of great change" All that can be
done at present is to contrast conditions now
prevailing with those prevailing prior to the
outbreak of the great war, and thus indicate in
their totality the changes which have occurred.
The data which are available relative to the
physical volume of trade are twofold, and may
be termed, respectively, direct and indirect.
The former relate to the actual output and
movements of the commodity in question and
take several forms. In the case of certain
commodities, of which coal and coke as well as
certain of the metals afford examples, figures
of estimated total output are currently avail-

DECEMBER 1, 1918.

able. For certain other commodities, actual
figures of total output are available, as for new
tonnage and for manufactured tobacco. In
other cases, figures of output for a selected
portion of the industry may be obtained, as in
the case of steel ingots, also of Conneilsville
coke. Movements of commodities at important markets also afford an important
source of data. This is the case with grain,
both at interior and seaboard markets, as well
as with leaf tobacco, naval stores, and live
stock. Again, coal -shipment figures, as is well
known, are available, likewise figures of crude
petroleum runs from wells, and of lumber shipments. In the case of commodities for which
the supply of raw material is derived from
abroad, figures of imports may be used. This
is true with respect to rubber, tin, and silk.
For certain of the textiles, additional figures of
active and idle spindles and looms are available.
The indirect indices are less numerous, relating as they do to general activity rather than
to activity in any particular branch of industry.
Railroad operating statistics may be mentioned,
likewise statistics of commerce on the Great
Lakes as shown by the monthly reports for the
Sault Ste. Marie Canal and figures of vessel entrances and clearances in foreign trade.
The above affords a general indication of the
character of the data which will be presented.
They will be secured in large part from the
reports of various governmental agencies,
though similar data for other commodities as
well as data concerning movements at the
various markets may be obtained from trade
organizations, and to some extent from trade
journals. Careful selection from among the
data prepared by these various agencies has
been made.
Consolidated Statement of Farm Loan System.
In accordance with the provision of the farm
loan act, requiring that the Farm Loan Board
li
shall from time to time require examinations
and reports of condition of all land banks
established under the provisions of this act,
and shall publish consolidated statements of
the results thereof," the Farm Loan Board on
November 25 made public the second consolidated statement of the condition of the 12
Federal land banks as of October 31, 1918.
The statement of condition shows that the
banks have made loans to farmers to the
amount of $139,378,156. Their capital stock
has increased from $9,000,000 to $15,975,220.
They have issued farm loan bonds to the




1195

FEDEKAL BESEBVE BULLETIN.

amount of $140,122,200. They hold among
their assets United States Government bonds
and Treasury certificates to the amount of
$14,850,000. Their excess of expenses and
interest charges over earnings is $211,609.09,
which is a reduction of over $200,000 since the
previous semiannual statement, and amounts
to less than 1£ per cent of their present capital.
Three of the banks show an actual surplus.
Before the close of the present month two banks
will begin the repayment of the stock originally subscribed by the Government. The
total payments by borrowers overdue on October 31 amounted"to $86,073, of which $51,117
was less than 30 days overdue, and only
$10,730 was 90 days or more overdue.
Consolidated balance sheet of the 12 Federal land banks at
close of business, Oct. SI, 1918.
ASSETS.

Mortgage loans »
$140,883,441.37
United States Governinont bonds and certificates
14,850,008.05
Securities pledged as security lor deposits
of Government funds:
United States Government bonds
$430,000.00
Farm loan bonds
400,000.00
830,000.00
Cash on hand and in bants
3,343,087.33
Accounts receivable
".
40,527.81
Furniture and fixtures
223,387.09
Other assets
305,836.68
Total assets
Excess of expenses and interest charges over earnings..
Total

160,477,188.33
211,609.09
160,688,797.42

LIABILITIES.

Capital stock:
United States Government
National Farm Loan Associations
Borrowers through agents
Individual subscribers

$8,892,130.00
6,963,140.00
15,145.00
104,805.00

Total capital stock
Farm loan bonds outstanding
United States Government deposits
Bills payable (money and. bonds borrowed)
Accounts payable (due to borrowers, deferred payments
on loans in process of closing)
Reserved for interest on farm loan bonds, due Nov. 1,
1918
Other liabilities
Total liabilities

'.

15,975,220.00
140,122,200.00
830,000.00
680,000.00
919, 111. 57
2,010,703.72
151,562.13
160,688,797.42

Study of Gold Production Conditions.
Secretary McAdoo, on November 2, announced that he had invited the following
gentlemen to serve on a committee to study
present conditions in the gold-mining industry:
Albert Strauss, vice governor, Federal Keserve
Board; E. T. Baker, Director of the Mint;
Gov. Emmet D. Boyle, of Nevada; Dr. Edwin
F. Gay, of the War Trade Board; Pope Yeatman, of War Industries Board.
1
Represents mortgage loans plus accrued interest less amortization
payments.

1196

FEDERAL RESERVE BULLETIN".

Tho function of the committee appointed by
the Secretary will be to stucty the problem
carefully and thoroughly with a view to definitely ascertaining ail the difficulties confronting gold production and submitting suggestions
of sane and sound methods of relief.

Branches of American Institutions Abroad.
The following tabular statement showing
the total number of branches of American
banking institutions in foreign countries, classified by countries, is subjoined for convenient
reference:

£2 i 3
o j ©

Tb i ©
o ! P.

International Banking
Corporation
National City Bank
W. R. Grace & Co
Grace & Co
Mercantile Bank of The
Americas
Banco Mercantile Americano del Peru
Mercantile Oversea Corporation
Banco Mercantile Americano de Caracas
American Mercantile
Bank of Brazil
Banco Mercantile Americano de Colombia
First National Bank of
Boston
Equitable Trust Co
Guaranty Trust Co
American Foreign Banking Corporation
Panama Banking Co...
Empire Trust Co
Farmers Loan & Trust
Co. (Ltd.)
Total..

4;

PH ! P-H

2

-!

1
2

2

1

2

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.
Eight hundred and ninety-five State institutions are now members of the system,
having a total capital of $340,227,943, total
surplus of $392,291,571, and total resources of
$6,881,140,822.
Capital.
District No. 1.
Menotomy Trust Co., Arlington, Mass. 8125,000
District No. 2.
Floral Park Bank, Floral Park, N. Y . .
25,000
District No. 3.
Drovers and Merchants Bank, Philadelphia, Pa
200,000
Logan Trust Co. of Philadelphia, Pa... 1,000,000
Swedesboro Trust Co., Swedesboro,
N.J
.. 100,000




DECEMBER 1, 1918.

Surplus. Total resources.

7

4|

2

18

4

Capital.
District No. 3—Continued.
Northern Central Trust Co., Williamsport, Pa
Susquehanna Trust & Safe Deposit
Co., Williamsport, Pa
District No. 4.
Bank of Independence, Independence,
Ky
Minerva Savings & Trust Co., Minerva. Ohio
The Erie County Banking Co., Vermilion, Ohio

District No. 5.
Bank of Commerce, High Point, N. C..
District No. 6.
$25,000 $1,070,397 Georgia Savings Bank & Trust Co.,
Atlanta, Ga
Cherokee County Bank, Center, Ala...
717,762
25,000
District No. 7.
North Liberty State Bank, North
Liberty, Ind
State Bank of Blairsburg, Blairsburg,
40,000 1,165,617
Iowa
250,000 11,022,856 County Savings Bank, Algona, Iowa..
Sac County State Bank, Sac City,
20,000
724,576
Iowa

Surplus. Total resources.

§500,000 $150,000 S3,687,086
400,000 300,000 2,984,904
40,000

8,000

277,708

50,000

40,000

50,000

10,000

1,368,347
479,254

100,000

12,000

789,578

200,000
25,000

100,000

1,559,260
222,943

25,000

10,000

353,776

25,000
100,000
75,000

5,000
25,000

309,997
1,704,068
1,199,472

75,000

Total resources.

Capital. Surplus.
District No. 7—Continued.
Edmore State Rank, Edmore, Mich...
Auburn State Bank, Auburn, 111
Merchants and Savings Bank, Kenosha, Wis
Farmers and Merchants Bank, Nashville, Mich
American Savings Bank, Pontiac,
Mich
First State Bank of Holland, Mich

$7,500
25,000

S423,702
516,013

100,000

13,000

1,500,380

30,000

35,000

667,588

100,000
100,000

30,800
20,000

954,158
2,065,919

65,000

57,500

446,446

100,000
30,000
30,000

50,000
5,000

1,262,026
346,341
424,169

The foregoing statement shows the aggregate
of increased capital for the period of the
banks embraced in statement was
$2,752,100
Against this there was a reduction of capital
owing to liquidation (other than for consolidation with other national banks) and reductions of capital of
75,000

830,000
25,000

Net increase

District No. 9.

The Commercial Bank, Iron Mountain, Mich
Peoxries State Bank, Whitehall, Wis..
First State Bank, Stratford, S. Dak ..
Citizens State Bank, Westbrook,
Minn
Midland Trust & Savings Bank, St.
Paul, Minn
Commercial & Savings Bank, Sioux
Falls, S. Dak

25,000

7,000

223,892

214,136

26,890

292,758

100,000

3,000

565,915

250,000

100,000

5,548,671

District No. 10.

St. Joseph Stock Yards Bank, South
St. Joseph, Mo
District No. 11.

First State Bank, Corsicana, Tex
First State Bank & Trust Co., Snyder,
Tex
First State Bank, White Deer, Tex...
Stockmans State Bank, Corona, N.
Mex
Fannin County Bank, Bonham, Tox..

15,000 I

50,000
25,000

30,000
100,000

817,992

25,000 I

100,000

236,188
115,609

3,000 j
159,538
50,000 j 1,213,806

District No. 12.

Barnes Banking Co., Kay sville, Utah.
James M. Peterson Bank, Richfield,
Utah

2,677,100

Commercial Failures Reported.

District No. 8.

Farmers & Merchants Bank, Kickman, Ky

1197

FEDEBAL RESERVE BULLETIN.

DECEMBER 1, 1918.

50,000

50,000 j

436,801

48,000

23,000 |

553,198

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
26, 1918, to November 29, 1918, inclusive-

Numbering only 408 in the first three
weeks of November, commercial failures in
the United States, as reported to E. G. Dun &
Co., disclose a 45 per cent reduction from the
737 insolvencies of the corresponding period
of 1917. Moreover, the returns for October,
the latest month for which complete statistics
are available, show but 660 * defaults for
$13,980,306, against 1,082 in October of last
year, when, however, the liabilities were less
than $13,000,000. The October exhibit, numerically, is the best for any month back to
October, 1899, and, in fact, so few business
reverses have occurred in only three other
months since the figures were first compiled
in this form, namely, in August, July and
May of 1899. Separated according to Federal
Reserve districts, the October statement reveals an appreciably smaller number of failures than in October of 1917 in all of the
12 districts, except the tenth district, where
a slight increase appears. The showing as
to liabilities, however, is not so favorable,
the amounts being larger in the second,
fourth, eighth, tenth, eleventh, and twelfth
districts, although only in the second and
twelfth districts is the expansion especially
marked.
Failures during October.

Banks.

New charters issued to
With capital of
Increase of capital approved for
With new capital of
Aggregate number of new charters and
banks increasing capital
With aggregate of new capital authorized
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




12
11
23

1
0

2,752,100

75,000

1918
First
Second
Third
Fourth.
Fifth
Sixth
Seventh
Eighth
Ninth.
Tenth
Eleventh
Twelfth
Total

75,000

Liabilities.

Districts.

2,302,100

0
1

Number.

§450,000

1917

1918

1917

78
115
35
50
18
36
104
30
28
39
30
97

133 SI, 250,232 §1,260,557
219 4,295,328 3,067,784
69
480,298
942,480
70 1,464,848
903,909
69
221,300 1,698,482
64
381,858
699,113
152 1,472,745 2,246,269
65
631,661
453,481
45
191,417
274,920
35
325,617
181,995
52
410,202
392,822
109 2,854,800
690,200

660

1,082 13,980,306 12,812,012

1198

FEDERAL RESERVE BULLETIN.

Acceptances to 100 Per Cent.
Since the issue of the November BULLETIN
the following banks have been authorized to
accept drafts and bills of exchange up to 100
per cent of their capital and surplus:
Merchants National Bank, Providence, R. I.
Central Union Trust Co., New York City.
Union Trust Co., Chicago, 111.

FOREIGN EXCHANGE SITUATION.
Since midsummer of the present year the
discount on the American dollar, as measured
by the premiums on neutral currencies prevailing in the New York market, has shown a continuous decline. On the basis of maximum
quotations for each month since July, the
premium on the Dutch florin has declined to the
end of November by 26 per cent, the high quotation for November being about 5 per cent
above par. Swedish crowns show a decline
for the same period of over 27 per cent, the high
quotation for November being 29 cents, or 8.2
per cent above par. Danish crowns, which had
never during the war period reached the same
high premium as the Swedish currency, declined about 18 per cent, the highest rate for
sight drafts on Copenhagen during November
being 27 cents, or less than 1 per cent above
mint par. Swiss francs, on which a maximum
premium in excess of 32 per cent was quoted in
the New York market during August, show a
maximum premium of 5.3 per cent for November, a decline of over 27 per cent. An even
larger decline is indicated for the Spanish
peseta, the maximum premium for November
being 7.25 per cent, as against 37.31 per cent
for August. Chilean exchange followed a similar course, the high November valuation of the
Chilean peso being 25.51 cents, compared with
33.07 cents for August. On the other hand, the
November premium on the Argentine peso,
which had been stabilized before, went up from
about 5 to 7.2 per rent. Rates on Bombay and
Shanghai, owing to the stabilized price of
silver, show but little change, these quotations
moving more or less in sympathy with the




DECEMBER 1, 1918.

average monthly price of silver, as may be seen
by reference to the accompanying tables and
diagrams.
As regards rates on financial markets in
belligerent countries the effect of the successful
termination of the war and the approach of
peace is reflected primarily through an improvement in the exchange position of the French
currency, the discount on the franc declining
from 9.3 per cent for July to 3.9 per cent for
November, and closely approaching the discount on British currency. Quotations of the
pound sterling fluctuated within the very
narrow limits of about one-third of 1 per cent,
the high quotation for demand bills in November being 2.24 per cent below par. A similar
course is followed by the Italian lira, quotations
of which for the four months show but little
variation from the officially "pegged" rate of
635 lire per $100, equivalent to 15.75 cents per
lira. Exchange on Yokohama likewise shows
but little change, yen bills selling in New York
at a premium of slightly less than 10 per cent.
Until November but little change is shown in
the exchange position of the Brazilian milreis.
For the last month a distinct improvement is
seen, the high rate for November—27 cents—
being about 17 per cent below par, as against
24-25 per cent below par during the preceding
months.
Advices from neutral European points indicate a rather erratic course of the German
mark. Thus October quotations of the mark
in the leading neutral markets were invariably
higher than during September, as may be seen
from the table on page 1162 of the November
BiJLLETiN. During ^November a downward
course sets in, the most recently available
quotations of the mark in the principal European neutral places being as follows:
Date of
Par of
exchange. quotation.
Amsterdam
Switzerland
Copenhagen
Stockholm
Christiania

59.28
123.45
88.88
88.88
88.88

Nov.
Nov.
Nov.
Nov.
do

26
27
26
27

Quotation.
30.60
59.00
50.75
44,75
47.44

Per cent
of depreciation.
48.36
52.21
42.90
49.65
46.62

DECEMBER 1,

1199

FEDEBAL BESEBVE BULLETIN".

1918.

Movement of exchange rates (highest rates for sight drafts during month) in New York on principal financial centers
during period from June, 1918, to November, 1918.
1. BATES ON MARKETS IN B E L L I G E R E N T COUNTRIES.
London
(4.8665 «100).
1918.
June
July
August
September..
October
November..

4.755
4.7535
4.76
4.755
4.755
4.7575

Per cent.
97.71
97.68
97.98
97.71
97.71
97.76

Milan
(19.3=100).

Paris
(19.3=100).

17.5
17.5
18.26
18.28
18.29
18.55

Per cent.
90.67
90.67
94.61
94.72
94.77
96.11

11.29
12.48
15.71
15.7
15.75
15.75

Per cent.
58.50
64.66
81.40
81.35
81.61
81.61

Rio de Janeiro
(32.444-100).

Yokohama
(49.85=100).
I Per cent.
106.12
52.9
53.75 i 107.82
54.63 I 109.59
54.63 ! 109.59
54.63 i 109.59
54.75 | 109.83

25.64
24.94
24.21
24.0
24.6
27.0

Per cent.
79.03
76.87
74.62
73.97
75.82
83.22

Petrograd).
(51.5=100

U5.25
U5.0

Per cent.
29.63
29.15

i Cable rates.
2. RATES ON MARKETS IN NEUTRAL COUNTRIES.

June
July
August
September
October
November

1918.

3. RATES ON MARKETS IN SILVER COUNTRIES.

Bombay
(32.44-100).

June
July
August
September
October
November




1918.
38.5
i 35.73

Per cent.
118.68
110.14

Hongkong
(47.16=100).

79.0
80.5
88.0
90.0
87.75
80.0

Per cent.
167.51
170.70
186.60
190.84
186.07
169.64

i Rate for telegraphic transfer fixed June 18 at 35.73.

93190—18

6

Shanghai
(65.49=100).

113.5
116.5
125.0
135.0
134.0
124.0

Per cent.
173.31
177.89
190.87
206.14
204.61
189.34

Average
London
price of
silver
(£=4.8665).

1.07140
1.07003
1.07561
1.08510
1.08510
1.07464

Average
price for
1913—
0.60458
ccnt<»
100.
Per cent.
177.21
176.99
177.91
179.49
179.49
177.75




EXCHANGE*RATES IN NlzW YORK ON BELLIGERENT

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DECEMBER 1, 1918.

FEDERAL RESERVE BULLETIN.

WHOLESALE PRICES.
In continuation of figures shown in the November BULLETIN there are presented below
monthly index numbers of wholesale prices for
the period January to October, 1918, compared
with like figures for October of previous years,
also for July, 1914, the month immediately preceding the outbreak of the great war. The
general index number is that of the United
States Bureau of Labor Statistics. In addition, there are presented separate numbers for
certain particular classes of commodities in
accordance with plans announced in previous
issues of the BULLETIN.
There are further changes to be noted in the
list of commodities included in the calculation
of the index numbers for September. Quotations for two commodities, namely, brick
(common, run of kiln, salmon) and laundry
starch had to be omitted. On the other hand,
quotations for sulphur (brimstone, stick, crude.
New York) and canned peas (western, No. ;5
sieve), which had been dropped temporarily,
have been secured for the months of September
and October, and the commoditiesfagain included in the calculation of the index numbers
for the latter month. Index numbers for
October are provisional, due to the fact that
certain of the data were not received in time to
render them available for use in^the ^calculations.
A decrease in prices between: September and
October is indicated in the table which follows.
This is the first decrease during the present
year. The general index number of the Bureau
of Labor Statistics has fallen from 207 to 204,
the decrea.se being due principally to the fall in
the prices of raw materials, the index number
of the latter group showing a decrease from 204
to 198. Within the group the index number
for the forest products subgroup remains un-




1203

changed at 143, slight increases in the prices of
poplar and yellow pine siding being offset by a
decrease in the price of Douglas fir. The index
number for the mineral products subgroup
shows an increase from 180 to 181, due to the
rise in the price of iron ore and the slight
increases in the prices of certain classes of pig
iron, which were not offset by the slight decline
in the prices of pig tin, spelter, and sulphur,
Considerable decreases in the index numbers
for both the farm products and animal products
subgroups are noted, in the case of the former
from 255 to 240, in the case of the latter from
219 to 209. The decrease for the former subgroup is due largely to the decline in the prices
of cotton and of corn, though all the commodities included in the group show a decrease
in price, with the exception of wheat and tobacco, which remained practically unchanged.
The decrease shown for the animal products
subgroup is due principally to the decline in the
prices of live stock, especially hogs and cattle,
though silk to a slight extent shares in the
decline.
On the other hand, the index number for the
group of producers7 goods has increased from
203 to 205. Although linseed oil and certain
of the chemicals decreased in price, the decrease
was more than offset by the increases in the
prices of other articles in the group, prominent
among which were raw sugar, wood pulp,
cement, bar iron, and cast iron pipe.
The index number for the group of consumers' goods also shows an increase, from 209
to 210. Considerable decreases in the prices of
potatoes, various classes of meat, especially
beef (New York quotation), corn meal, and a
lesser decrease in the price of flour were outweighed by increases in the prices of other foodstuffs, notably eggs, dairy products, lemons and
oranges, granulated sugar, rice, and coffee, as
well as in the prices of hosiery and underwear.

1204

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

Index numbers of wholesale prices in the United States for principal classes of commodities.
[Average price for 1913—100.]
Raw materials.
Year and month.

Farm
products.

July, 1914
October, 1914
October, 1915
October, 1916
October, 1917
January
February
March
April
May
June
July
August
September
October

Animal
products.

Forest
products.

Mineral
products.

All commodities
Producers' Consumers1 (Bureau of
Labor stagoods.
goods.
Total raw
tistics index
material.
number).

102
100
105
151
227

106
105
105
122
190

97
96
92
96
129

88
85
92
133
150

98
96
99
128
178

92
95
101
148
185

102
102
135
181

99
101

240
242
249
243
226
232
237
246
255
240

•

174
176
178
193
201
198
209
215
219
209

130
131
135
137
138
138
140
143
143
143

171
172
172
170
173
171
180
180
180
181

183
184
187
190
189
189
196
200
204
198

181
184
187
190
192
194
196
199
203
205

192
193
189
193
194
197
202
205
209
210

185
187
187
191
191
193
198
202
207
204

180

1918.

.*

In order to give a more concrete illustration
of actual price movements there are also presented in the following table monthly actual
and relative figures covering the same period

for certain commodities of a basic character.
The actual average monthly prices shown in
the table have been abstracted from the records
j of the United States Bureau of Labor Statistics.

Average monthly wholesale prices of commodities.
[Average price for 1913=100.]
Corn. No. 3,
Chicago.

Cotton, middling,
New Orleans.

Wheat, No. 1,
northern spring,
Minneapolis.

Wheat, No. 2,
red winter,
Chicago.

fear and .'month.

SO. 7044
.7266
.6335
.9463
1.9620

114
118
103
154
319

SO. 1331
. 0692
.1203
.1723
. 2659

105
54
95
136
209

^ 1
1918.
January
February
March
April
May
June
July
August
September...
October

1.6850
1.6375
1. 5563
1. 5850
1.5250
1. 5125
1.5900
1. 6225
1.5313
1.3270

274
266
253
258
248
246
258
264
249
216

.3105
.3097
. 3291
.3350
. 2894
. 3066
.2945
.303S
. 3578
.3150

244
244
259
264
228
241
232
239
282
248




SO. S971
1.1020
1.0190
1.7569
2.1700

Cattle, steers,
good to choice,
Chicago.

Hides, packers',
heavv native,
steers, Chicago.

Average
price per

Average
Average
Average
Average
price per Relative price per Relative price per Relative price per
price.
price.
price.
bushel.
pound.
bushel.
bushel.
July, 1914....
October, 1914
October, 1915
October, 1916
October, 1917

I

Relative
price.

pounds.
I

103
126
117
201
248

112
115
170
220

SO. 8210
1.1086
1.1325
1.6809
2.1700

89.2188
9. 4313
8. 8750
9.9050
14.6750

108
111
104
116
173

I SO. 1938
! . 2125
! .2650
| . 2663
I .3375

105
116
144
145
184

220
220
220
220
220
220
228
226
227
227

13.1125
13.0750
13.2313
15.1750
16.4167
17.1750
17.6250
17. 8250
18.4100
17. 8563

154
154
156
178
193
202
207
210
216
210

!
!
i

178
159
143
148
169
179
176
163
163
163

I
2.1700
2.1700 I
2.1700
2.1700
2.1700
2.1700
2.1700
2.2231
2.2169
2.2155

248
248
248
248
248
248
248
255
254
254

2.1700 |
2.1700 I
2.1700 i
2.1700
2.1700
2.1700
2.2470
2.2325
2. 2363
2.2345

1
!
i
I

.3280
.2925
. 2625
.2719
.3110
.3300
.3240
.3000
.3000
.3000

1205

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

Average monthly wholesale prices of commodities—Continued.
[Average price for 1913=100.]
Hogs, light,
Chicago.
Year and month.

Average
price per
pounds.

July, 1914
October, 1914
October, 1915
October, 1916
October, 1917
January
February
March
April
May
June
July
August
September
October

$8.7563
7.9313
8.0125
9.6550
17.5550

Wool, Ohio, i - |
grades, scoured.

Relative
price.

Average
price per
pound.

104
94
95
114

SO. 4444
.4583
.6000
. 6857
1.3571

Relative
price.

Hemlock,
New York.

Yellow pine,
flooring,
New York.

Average Rela- j Average
price per tive | price per
Mfeet. price, i Mfeet.

94 $24.5000
97 24.2500
127 20.5000
146 23.7500
288 30. 5000

101 842.0000
100 42.0000
38.0000
39.0000
126 57.0000

Coal, anthracite, Coal,bituminous,
run of mine,
stove, New York
tidewater.
Cincinnati.

Rela- Average Rela- Average Relative price per tive price per tive
price. long ton. price. short ton. price.

128

84.9726
5.1947
5.1826
5. 6744
6.1426

98
103
102
112
121

82.2000
2. 2000
2.2000
3.7500
3.3000

100
100
100
170
150

128
128
135
135
135
135
135
141
141
141

6. 5000
6.5000
6.4642
6.2606
6.3000
6.3212
6.5968
6.5992
6.9000
6.9000

128
128
128
124
124
125
130
130
136
136

3.6000
3.6000
3.6000
3.6000
3.8500
3.7500
4.1000
4.1000
4.1000
4,1000

164
164
164
164
175
170
186
186
186
186

1918,
192
16.2125
197
16. 6938
206
17.4260
207
17.5100
207
17. 5000
15.5250 ! 184
213
18.0000 |
19. 7750 ! 234
237
20.0700 |
18. 093S i 214
!
Coal, Poeahontas, Norfolk.

4545
4545
4545
4545
4182
4182
4365
4365
4365
4365

309
309
309
301
301
305
305
305
305

Coke, Connellsville.

30.5000
30. 5000
30.5000
33. 5000
33.5000
34. 5000
34. 5000

126
126
126
138
138
14.2
142

Copper, ingot,
electrolytic,
New York.

57.0000
57.0000
60.0000
60.0000
60.0000
60.0000
60.0000
63.0000
(53. 0000
63.0000

Lead, pig,
desilverized,
New York.

Petroleum, crudc/j
Pennsylvania, ! Pig iron, basic,
at wells.

Year and month.
I Average Rela- Average Rela| price per tive price per tive
' long ton. price. short ton. price.
July,1914
October, 1914.
October, 1915.
October,1916.
October, 1917.

S3.0000
3.0000
2. 8500
4.5000
3.9080

100
100
95
150
130

SI. 8750
1. 6750
2.0000
3.1250
6.0000

4.4120
4. 4120
4.4120
4. 2440
4. 2190
4. 2320
4.6320
4. 6320
4.0320
4. 6320

147
147
147
141
141
141
154
154
154
154

6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000

Average
price per
pound.

Rela- Average
tive price per
price. pound.

Rela- Average
tive price per
price. barrel.

77 ! 80.1340
.1170
.1800
128
.2850
246
.2350

74
114
181
149

SO. 0390
.0375
. 0150
.0705
. 0795

85
102
160
181

SI. 7500
1.4500
1.7000
2.4000
3.5000

246
246
246
246
246
246
246
246
246
246

149
149
149
149
149
149
162
165
165
165

.0706
.0724
.0698
.0691
.0728
.0802
. 0805
. 0805
.0805

155
160
165
159
157
165
182
183
183
183

Rela- • Average Relative I price per tive
price, long ton. price.

3.7500
3.9375
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000

§13.0000
12. 8100
15.0000
98 19. 8800
143 33. 0000

87
102
135
224

33.0000
33. 0000
33.0000
32.0000
32.0000
32.0000
32. 0000
32.0000
32. 0000
33.0000

224
224
224
218
218
218
218
218
218
224

1918.
January
February...
March
April
May
Juno
July
August
September..
October

Cotton yarns,
northern cones,
10/1.

Leather, sole,
hemlock No. 1.

. 2350
. 2350
. 2350
.2350
.2350
.2350
. 2550
.2600
.2600
.2600

Steel, billets,
Bessemer,
Pittsburgh.

Steel, plates,
tank, Pittsburgh.

153
161
163
163
163
163
163
163

Steel, rails, open
hearth,
Pittsburgh.

Worsted yarns,
2-32's, crossbred.

Year and month.
Average
price per
pound.
July, 1914
October, 1914.
October, 1915.
October, 1916.
October, 1917.

Rela- I Average Relative I price per tive
price. | pound. price.

§0.2150
.1700
.1950
.3000
.4200

97
77
88
136

190

i
! 80.3050
!
!
.3200
!
.4050

.5363
.5536
.5745
.6162
.6332
.6437
.6412
.6400
.6100
.6100

242
250
260
278
286
291
290
289
276
276

Average Relaprice per tive
long ton. price.

.4600

108 819.0000
20.0000
113 24.6300
144 46.2500
163 49.3750

.4900
.4900
.4550
.4550
.4900
.4900
.4900
.4900
.4900
.4900

174
174
161
161
174
174
174
174
174
174

Average
price per
pound.

Rela- Average j Relative price per ! tivo
price. long ton. | price.

179
191

J.0113
.0115
.0140
.0350
.0325

76 $30.0000 !
78 30.0000 j
95 30.0000 i
236 35.0000 j
220 40.0000 |

184
184
184
184
184
184
184
184
184
184

.0325
.0325
.0325
.0325
.0325
.0325
.0325
.0325
.0325
.0325

220
220
220
220
220
220
220
220
220
220

Average
price per
pound.

Relative
price.

100
100
100
117
133

80.6500
.6300
.8500
1.1500
1.8000

84
81
119
148
232

156
190
190
190
190
190
190
190
190
190

2.0000
2.0071
2.1000
2.1500
2.1500
2.1500
2.1500
2.1500
2.1500
2.1500

257
258
270
277
277
277
277
277
277
277

1918.
January....
February...
March
April
May
June
July
August
September..
October




47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000

8000
0000
0000
0000
0000
0000
0000
0000
0000
0000

i
j
I
!

1206

FEDEEAL RESERVE BULLETIN.

DECEMBER 1,

1918.

Average monthly wholesale prices of commodities—Continued.
[Average price for 1913=100.]
Flour, wheat,
standard patents,
Coffee, Kio No. 7. 1914-1917, standard war, 1918,
Minneapolis.

Beef carcass,
good native
steers, Chicago.
Year and month.
Average
price per
pound.
July, 1914
October, 1914
October, 1915
October, 1916
October, 1917
January
February
March
April
May
June
July
August
September
October

Kelative
price.

Average
price per
pound.

Relative
price.

Hams, smoked,
Chicago.

,

,

Relative
price.

Relative
price.

Average
price per
pound.

Rela- Average
tive price per
price. '
"

Relative
price.

Average
price per
pound.

106 ! SO. 1200
103
.1200
97
.1200
116
.1200
172
.1300

97
97
97
97
105

SO. 0420
.0593
.0497
.0708
.0818

139
116
166
192

177
180
182
185
182
180
182
194
197
202

130
130
130
136
138
138
139
142
142
142

.0744
.0730
.0730
.0730
.0730
.0731
.0735
.0735
.0845

174
171
171
171
171
171
172
172
198
207

104
111
106
106
147

).O882
.0656
.0675
.0950
.0850

$4.5938
5.7563
5.5188
9.2800
10.5000

100
126
120
202

$0.1769
.1719
.1613
.1935

.1750
.1750
.1750
.2050
.2250
.2338
.2400
.2420
.2450
.2450

1918.
,

Sugar, granulated,
New York.

Average
price per
barrel.

$0.1350
.1438
.1375
.1375
.1900

,

Illuminating oil,
150° lire test,
New York.

135
135
135
158
174
181
185
187
189
189

.0853
.0833
.0891
.0903
.0873
.0841
.0855
.0853
.0959
.1040

10.0850
10.3000
10.0938
9.9850
9.5250
9.8250
10.7020
10.2100
10.2100
10.2100

220
225
220
218
208
214
233
223
223
223

.2950
.2984
.3028
.3075
.3025
.2994
.3025
.3225
.3281
.3361

.1600
.1600
.1600
.1675
.1700
.1700
.1710
.1750
.1750
.1750

REPORT OF BANK TRANSACTIONS.
Below are given figures of debits to deposit
accounts of clearing house banks in leading
cities for the weekly periods ending Wednesday,
November 6 to 27, in continuation of similar
figures printed in previous numbers ot the
BULLETIN. The number of centers from which
reports are regularly received has been well
maintained, the most important accession
during the month being Pittsburgh, Pa.
Efforts are being continued to make the report
as comprehensive as possible, so as to provide
data fairly comparable, both as regards the
number of centers covered by the statement
and, what is just as important, the number of
banks reporting at each center.

During the month there has been an almost
steady increase in the totals of debits, both to
individual and bank accounts. While a small
proportion of their increase is due to the larger
number of individual bank reports comprised
in the totals of some reporting centers, by far
the larger part of the increase shown is due
undoubtedly to the increasing volume of business handled by the banks. Increases between
November 13 and November 27 apparently
reflect to some extent the large payments by
check or draft on account of the November 21
installment of the fourth Liberty loan.
Figures of reporting clearing houses by Federal Reserve districts are as follows:

Weeklyfiguresof clearing-house bank debits to deposit account.
[In thousands of dollars; i. e., 000 omitted.}
Debits to individual account.

Debits to banks' and bankers' account.

District.
Nov. 6.
No. 1—Boston:
Bangor
Boston
Fall River....
Hartford
Holyoke
Lowell
New Bedford
New H a v e n . .
Portland
Providence..
Springfield...
waterbury...
Worcester...




2,802
267,650
12,477
19,711
3,904
6,513
6,414
15,704
6,993
28,107
17,111
6,685
14,031

Nov. 13. ! Nov. 20.
I
2,532
233,321
7,455
17,413
3,264
4,970
4,451
14,935
6,499
27,544
11,618
6,210
14,596

2,902
290,982
9,640
21,225
3,322
6,127
7,469
17,445
9,149
2ft,231
16,607
9,032
17,204

Nov. 27.

Nov. 6.

Nov. 13.

Nov. 20.

2,903

461

247,621
8,032
18,073
3,070
6,452
7,292
17,822
9,285
30,837
16,708

363

488

199.484

220,983

253,648

522

647

431

1,106

1,323

1,173

701
608
187
269

683
294
103
340

726
543
257
408

3,141
1,437

2,744
1,977

3,483
1,440

22,478

113
443

132
885

231
647

3,388

J,290

1,432

Nov. 27.

475
265,075
384
1,308
811
511
202
450
626
2,559
385
788
1,556

DECEMBER 1,

1207

FEDERAL RESERVE BULLETIN.

1918.

Weekly figures of clearing-house banlc debits to deposit

account—Continued.

[In thousand of dollars; i. e., 000 omitted.]

Debits to individual account.

Debits to banks' and bankers' account.

District.
Nov. 6.




Nov. 20.

Nov. 27.

19,280
2,358
53,031
3,458,829
2,607
23,479
13,115

14.154
2; 698
59,787
3,779,197
3,273
25,675
10,050

15,718
2,742
60,553
4,053,165
3,675
27,672
15,671

20,981
2,415
71,673
4,159,526
3,721
22,589
12,803

1,879
4,432
4,719
2,967
3,854
273,938
4,231
9,330
8,279
5,710
2,648
9,840
3,007

3,370
6,059
4,668
2,670
5,113
431,648
5,346
12,528
7,785
6,499
3,284
9,672
3,485

2,159
5,323
6,530
2,913
4,793
323,852
4,865
9,201
8,891
6,731
3,567
9,410
3,026

2,975
4,981
6,420
2>,950
4,238
332,868
3,868

13,442
51.009
115i847
23,905
11,203
6,280
2,406
3,875
1,001
1,944
140,040
2,283
18,806
6.257
9,581

11,420
49,758
120,043
17,945
8,753
6.390
2; 559
3,539
1,498
2,214
169,434
2,272
21,071
7,010
11,622

14,423
62,818
131,787
24,628
13,423
7,153
2,548
3,363
603
3,545
180,831
2,753
27,617
9,656
9,637

14,869 j
63,815
147,953
24,344
11,183
6,709
2,594
3,207

74,254
6.200
7', 268
16,035
3,957
25,954

75,180
8,500
9,974
17,567
4,330
26,994

28,073
9,266

No. 2—New York:
Albany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
No. 3—Philadelphia:
Altoona
Chester
Harrisburg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton
Wilkes-Barre
Williamsport
Wilmington
York...
No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensbnrg, P a . . .
Lexington, Ky - - Newcastle
Oil City
Pittsburgh
Springfield
Toledo
Wheeling
Youngstown
No. 5—Richmond:
Baltimore
Charlotte
Columbia
Norfolk
Raleigh..
W Richmond
No. 6—Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga
Jacksonville
Knoxville
Macon
Mobile
Montgomery
Nashville
New Orleans
Pensacoj'a
Savannah
Tampa
Vicksburg
No. 7—Chicago:
Bay City
Bloomington, III._
Cedar Rapids
Chicago
Davenport
Decatur, 111
Des Moines
Detroit
Dubuque
Flint
Fort Wayne
Grand Rapids
Tndianapolis
Kalamazoo
Milwaukee
Peoria
Rockford, 111
Sioux City, Iowa..
South Bend
Springfield, 111
Waterloo, Iowa

Nov. 13.

Nov. 6.

Nov. 13.

Nov. 27.

9,434

14,451

13,520

13,509

9,708
1,498,930
539
687
491

11,700
1,589,212
427
921
1,248

12,272
1,620,110
417
765
895

16,938
1,769,688
2 102
1,548
951

167
26
261,404

28
153
178
370,107

70
21
272
37
290,909

2
100
320
262
412,697

2,241
159
120
151

2.096
'174
98
432

2,220
212
104
237

2,459
147
67
260

50

39

41

53

45
39,158
111,590
3,167
214
48

71
35,111
109,652
4,720
474
7S

102
42,770
111,803
3,806
397
64

137
43,095
149,205
4,177
329

2,937
249,496
2,438
31,496
8 501
15,842

1,996
954
2,155
143.072
2; 305
6,499
5,722
356

1,838
1,139
2,275
282,915
2,118
7,272
8,147
412

2,984
584 |
3,274 ;
293,496
2,639
9,411
8,134
357

82,960
6,700
9,112
19,390
3.355
29;371

69,376
5,600
8,727
19,205
4,410
26,455

37,561
9,300
4,598
25,275
3,106
56,885

41,798
6,100
3,852
31,416
3,021
71,796

40,736
9,200
3,791
26,926
3,572
69,259

47,879
8,100
3,584
30,392
3,120
69,239

13,640
9,586
9,812
5,351
6.713
7; 049
0,545
19,768
54,365
2,208
16,045
3,507
1,900

23,610
8,679
11,903
10,406
11,226
4,659
6,163
6,119
4,109
20,179
65,597
1,920
12,247
4,445
1,874

25,855
8,454
13,160
9,309
11,231
5', 800
6,868
8,104
5,100
31,003
67,285
1,968
14,812
4.447
1,924

24,189
7,004
13,998
8,494
10,430
5,645
5,502
7,435
4,328

28,571
3,110
4,077
3,973
5,284
1,795
4,553
616
1,094
13,862
31,835
1,031
10,119
796
148

27,627
4,006
4,196
5,296
7,027
1,796
3,520
749
494
16,649
41,025
1,248
9,670
1.331
'213

29,392
3,590
4,714
5,637
7,333
1,700
4,268
851
558
15,337
43.298
1,012
8,550
1,306
231

28,951
2,720
4,673
5,176
7,155
1,691
4,306
902
485
15,673
40,375
1,442
8,600
1,046
171

2,2*0
2,117
U0,094
513,871
8,152
2,257
12,275
82,641
1,900
3,119
4,626
11,723
29,253
2,882
45,763
12,389
4,921
7,607
3,423
3,752
2,600

2,551
1,978
112,260
544,434
6,327
2,983
17,007
84,556
1,700
3,366
4,848
20,584
31,773
2,789
51,244
10,062
4,710
9,912
2,202
3,503
2,673 ]

3,549
2,203
1 13.224
697,652
7,138
3,356
16,122
118,205
2,549
3,844
5,187
15,185
32,509
3,099
59,596
11,920
5,012
13,664
3,001
4,727
3,180

3,134
1,777
113,767
657,715
4,264
2,241
16,860
109,110
2,300
4,776
4,476
15,309
28,992
3,103
53,437
13,074
5,654

532
837

632

611
723

714
641

625,174
1,777
652
31,347
49,305
1,637
52
1,881
4,643
24,334
523
31,953
1,621
207
11,819
2,425
2,009
1,244

649,593
1,637
406
31,215
53,520
1,800
54
1,995
5,300
24,618
511
29,395
2,075
165

14,099
9,547
5,902
3,081
10,054
3,254

24,940
57.762
2,017
10,945
3,839
1,630

2,722
4,124
2,601

66

508,410
1,415
354
28,305
36,329
1,400
34
1,409
4,691
20,104
507
26,260
1,561
166
6,314
2,811
1,759
992

512,924
1,375
410
35,C87
38.977
1,800
31
1,789
5,023
23,402
479
30,525
1,445
133
8,968
1,643
1,728

1 Figures comprise debits to both individual as well as to banks' and bankers' accounts.

93190-18

Nov. 20.

7

2,518
2,247
430,853
2,332
8,723
7,922
716

1,627
2,096

1208

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

Weeklyfiguresof clearing-house bank debits to deposit account—Continued.
[In thousands of dollars; i. e. 000 omitted.]
Debits to individual account.

Debits to banks' and bankers' account.

District.
Nov. 6.
No. 8—St. Louis:
Evansville
Little Hock
Louisville
Memphis
St. Louis
Springfield, Mo
No. 9—Minneapolis:
Aberdeen
Billings
Duluth
Fargo
Grand Forks
Great Falls
Helena
Minneapolis
St. Paul
Superior
No. 10—Kansas City:
Atchison
Bartlesville, Okla..
Colorado Springs...
Denver
Joplin
Kansas City, Kans.
Kansas City, Mo...
Muskogee, Okla
Oklahoma City
Omaha
Pueblo
St. Joseph
Topeka
Tulsa
Wichita
No. 11—Dallas:
Albuquerque
Austin
Beaumont
Dallas
El Paso
Fort Worth
Galveston
Houston
San Antonio
Shreveport
Texarkana
Tucson
Waco
No. 12—San Francisco:
Boise
Fresno
Long Beach
Los Ancrolcs
Oakland
Ogden
Pasadena
Portland
P.cno
Sacramento
Salt Lake City
San Diego../.
San Francisco
Seattle
Spokane
Stockton
Tacoma
Yakima




Nov. 13.

Nov. 20.

Nov. 27.

Nov. 6.

3,692
6,490
37,855
30,458
122,012
3,050

4,480
7,278
36,933
38,102
131,651
3,594

3,480
7,493
41,005
35,001
153,181
2,840

1,529
2,140
53,615
2,914
;
2,997
2,475
80,248

1,282
2,074
49,744

1,121
2,343
52,051
2,549
1,350

1,925

1,439
2,638
2,913
80,154
33,361
2,230

1,572
2,587
45,360
3,085
1,618
2,944
2,649
87,076
39,121
2,557

854
1,742
2,302
35,085
2,873
3,017
84,499
3,130
15,483
64,541
2,824
19,507
4,569
14,094
8,861

825
1,644
2,443
27,251
3,606
3,039
92,318
3,663
19,116
34,899
4,993
20,769
4,150
17,969
8,719

997
2,088
2,466
32,138
3,409
3,538
102,262
3,910
14,370
55,809
12,955
22,614
4,679
21,734
8,748

1,011
1,822
2,216
32,215
3,082
2,859
89,236
2,921
14,409
62.649
6; 222
25,841
3,564

1,497
2,235
3,106
28,018
4,914
15,512
6,614
21,446
i 6,196
5,182
1,284
1,759
2,960

1,715
3,900
3,435
26,739
5,162
13,634
5,422
20,817
17,593
5,846
2,001
1,643
4,511

1,644
3,006
4,231
31,830
6,117
10,866
6,974
26,540
16,938
6,556
1,186
1,900
3,691

1,459
3,625
3,935
33,567
4,936
12,377
7,667
28.599
16,124
4,506
1,419
1,503
3,277

2,018
5,971
2,019
45,395
11,456
3,248
1,963
39,682
1,497
11,180
13,948
3,722
130,085
42,133
8,754
3,991
12,476
1,894

2,629 !
6,115 I
2,399 i
43,849 I
9,758 !
3,481 i
1,938 I
36,596 I
1,321 i
12,296 .
14,474 ''•
5,060 !
144,016 i
46,646 i
8,003 1
3,997 !
11,847
2,378

2,606
5,996
2,456 I
46,865 i
11,343 !
7,265 !
2,338 '
45,030
1,752
13,669
19,989 !
4,896 !
160,622 i
54,112 I
9,216 !
4,983
11,314
2,450

2,574
6,523
2,421
61,624
12,063
2,673
2,226
60,466
1,663
12,066
19,704
4,970
173,151
55,686
9,396
4,930
11,420
2,404

4,499 j
3,225 !
57
32,193
2,553
5,291
96
23,977 i
1,442 !
4,266 j
21,237 I
151
105,895
18,123
8,750
3,185
7,454
196

4,497
46,708
31,926
151,114

2,190
84,943
45,178
2,931

8,503

Nov. 13.

Nov. 20.

Nov. 27

1,608
5,467
.18,932
26,525
115,923
3,950

1,638
5,734
20,565
30,778
126,882
2,987

1,370
6,624
22,768
30,083
145,461
3,215

1,507
962
4,693
3,777
1 833
6,421
3,726
81,926
134

1,268
896
6,183
1,089
1,635
5,716
3,334
96,508
47,662
204

2,360
930
6,046
3,325
1,786
5,828
3,698
92,444
49,319
141

405
96
675
23,182
672
4,627
163,205
3,465
11,765
70,484
985
14,904
1,358
4,562
10,653

581
75
764
24,458
682
5,632
172,025
2,143
10,765
41,483
1,138
15,015
1,617
4,895
12,551

678
48
663
37,197
790
189,098
2,968
11,643
60,226
1,192
15,611
1,483
6,200
14,392

3,415
2,896 I
260 I
59,498
8,003
33,707
4,018
44,363

3,685
4,800
300
55,063
7,765
37,786
4,778
56,321

3,955
3,720
537
72,034
8,398
39,990
5,802
49,873

4,511
6,821
429
74,091
8,989
24,420
5,446
52,890

3,301
466
1,660
1,877

3,600
815
1,822
2,152

4,328
669
2,160
2,046

3,555
467
1,735
2,117

6,245
5,171
68
32,904
3,221
4,403
156
25,609
1,086
6,320
18,242
'174
104,014
23,474
8.379
3,392
8,461
179

1 Figures comprise debits to both individuals as well as to banks' and bankers' accounts.

5,969
2,747
92
38,350
3,464
6,823
407
32,074
1,219
5,003
26,069 I
264 j

104,748 j
23,754
9,877
3,657
10.402
'657

1,932
22,805
29,635
146,327
2,165
1,015
1,181
5,473
2 950
1,762
*4,466
94,519
49,681
137
586
86
1,079
32,530
611
4,851
188,407
2,875
10,425
61,738
1,020
17,328
1,179
13,572

7,006
2,781
81
29,732
2,617
3,366
119
31,730
1,400
4,980
28,633
260
129,099
24,881
8,690
3,260
8,459
726

DECEMBER 1,

1918.

1209

PEDEKAL KESEKVE BULLETIN.

Recapitulation

showing figures for centers reporting both weeks.
(In thousands of dollars; i. e., 000 omitted.]

Federal Reserve District.

Number |
of centers
included. Nov. 6.

Debits to individual account.
Nov. 13.

Debits to banks' and bankers' account.

Nov. 20.

Nov. 27.

Nov. 6.

Nov. 13.

Nov. 20.

Nov. 27.

408,162
3,572,702
334,832
406,938
133,663
193,828
760,038
197,067
143,774
260,557
100,723
341,432

354,808
531,827
434,030
142,545
193,136
811,550
214,760
139,836
240,411
102,418
358,803

437,335
4,179,196
391,261
494,182
150,888
215,320
1,011,258
235,507
143,419
278,762
111,479
406,902

398,009
4,293,708
404,237
585,384
133,773
188,158
949,436
237,491
146,929
272,412
112,994
445,960

211,860
1,519,879
264,384
316,327
136,725
110,864
637,876
166,938
94,781
310,053
163,464
242,590

231,664
1,617,959
373,305
455,083
157,983
124,847
659,776
182,850
110,028
292,686
178,887
251,498

264,907
1,647,979
294,123
479,237
153,484
127,777
782,121
202,897
107,405
347,302
193,512
275,576

275,130
1,804,736
416,367
652,330
162,314
123,366

Grand total..

9.
10.
11.
12.

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

145 j 6,853,716

7,416,958

8,055,509

8,168,491

4,175,741

4,636,566

4,876,320

5,367,285

DISCOUNT AND INTEREST RATES.

In the following tables are presented actual
discount and interest rates prevailing in the
various cities in which the several Federal
Reserve Banks and their branches are located,
during the 30-day periods ending September
14 and October 15, 1918. Quotations are
given for prime commercial paper, both customers' and purchased in open market, interbank loans, bankers' acceptances, and paper
secured by prime stock exchange or other current collateral. Separate rates are quoted for
paper of longer and shorter maturities in the
first-named and last-named classes. In addition, quotations are given for commodity paper
secured by warehouse receipts and for cattle
loans, as reported from centers in which such
paper is current.
Quotations are also given of rates charged
on ordinary loans to customers secured by
Liberty bonds and certificates of indebtedness.
Assistance to customers to enable them to purchase such Government obligations is generally
extended at lower rates, either at the rate




202,864
108,553
340,505
184,970
287,820

borne by such obligations or at a rate slightly
higher. The table also shows quotations in
New York for demand paper secured by prime
bankers' acceptances, a type of paper which
has made its appearance in the New York
market during the past several months. Quotations for new types of paper will be added
from time to time as deemed of interest.
During the period under review, local conditions again appear to have exercised preponderating influence in causing increase in
some rates and decline in others. While in
certain centers there may appear to have been
an upward trend in rates, as in the case of
Minneapolis, in other centers the reverse
appears to have been the case. However,
customary rates in general, with few exceptions,
remain unchanged, movements in rates being
confined largely to fractional changes in high or
low quotations. Rates charged on loans to
individuals, secured by Liberty bonds and certificates of indebtedness on the whole are lower
than on ordinary commercial loans, or on
loans secured by other collateral.

Discount and interest rates prevailing in various centers.
DURING 30-DAY PERIOD ENDING OCT. 15,1918.
Prime commercial paper
Bankers' accep>tam fiR,
District.

City.

4 to 6
months.

30 to 90
days.

No. 1 .
No. 2....
No. 3
No. 4....
No. 5
No. 6
No. 7 . .
No. 8 . .
No. 9....
No. 10...

No. 11
No. 12...




Boston
New York «
Philadelphia
Cleveland
Pittsburgh
Cincinnati
Richmond
Baltimore .
Atlanta
Birmingham.
Jacksonville
New Orleans
Chicago
Detroit
St. Louis
Louisville
Memphis
Minneapolis
Kansas City
Omaha . .
Denver
Dallas
El Paso
San Francisco
Portland
Seattle
Spokane
Salt Lake

II. L.
6}
fi
ft
6
6
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ft
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C. II
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4* ft:!~fi ft
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30 to 90
days.
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ft* fi
ff fi
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ft
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fi
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b
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ft? fi

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other current

Interbank
loans.

4 to 6
months.

ft
ft
G
ft

fi
fi
fi
ft

6

6

Indorsed.
H. L. a IL L.
ft* 54 ft*
ff 5 5-5* 4* 4-1-

a
4J> 6

Unindorsed.
H L.
4*

ff

4^- ft* 4-3. 41 43
5 5 4g- 41
4t»r
6 b
41 4* 4 a
6 ft*
ft ft" 6
ft 5 ft*
fi 5 51-6
ft
ft*
ft fl
8
7 ft ft
7
ft? ft ft 6 ft ft ft
ft ft* ft
4A
X 6
fi 4" ft* ff 4 3 ft1 6
fi ft* ft' ft 4* ft
ft
6
ft fi
ft ft" ft
ft ft fi ft ft ft
ft ft fi 4? 4* 4? ft
fi ft fi
7
ft*- ft
7 ft" fi
fi ft fi
7 fi 7
fi 41 ft* fi 43. ft
fi
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ft ft-ft
ft
ft

ft
ft

ft ° 61U
4* ft
ft! ft*
41 4*

5?- ft
ft

4J1

43.
....

Secured by
Secured by Liberty
warehouse bonds and
receipts, certificates
of indebtetc.
edness.

Collateral loans—Stock exchange or

60 to 9() days.

Open market.

Customers.

Cattle
loans.

Demand.

3 months.

3 to 6
months.

H.

H. L.

II. L.

fi'
6
6*, 4*
ft" ft'
5
6
b
6
fi
7*
fi
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ft*
ft6
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6
7 ft
7
ft
8
ft
ft
8
8
7
8
7

8
ft
fi
fi
6

C.
ft
ft
ft
6
6
fi
fi

fi
fi
ft
6
6
7
fi
6
fi
ft
fi ' 8
7 " 7
"
fi
fi
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fi
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ft
ft

7
7

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8

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8
7
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fi
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ft
ft
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5

C.
fi
fi

ft
6

ft
ft
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6
b
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b
ft
ft
fi
ft
ft*
ft 7
ft 7 " 7
fi ft
ft ft "ft*
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ft ft
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8
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8
b
ft
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8

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ft
fi
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6

a Rates for demand paper secured by prime bankers' acceptances, high 6, low 4|.
b Rate on small loans.
c Rate in connection with fourth Liberty loan, 4£ per cent.

8
ft
ft
ft
8
7

ft

a
ft

II. .L.

a

H. L. C.

ft*

ff
5
b
ft

6
b

6

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5J 6

a

ft*
fi"
7
fi
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fi
fi
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fi
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8
7
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ft
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Q
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7
8

7

7
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6

5
ft
5
6
6
ft*
g
6

41 4*

\ 4
4*
4

4 JE
4jt
4J
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41
4i
16
7 5
4£
ft 6
ft

Q

8
8*
10
10

fi s
fi fi 7
fi fi
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8 8

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6* 7

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6
6
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6

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ft

a

fi

6
6
6

II. L. C.

5
5-6
6
6
5
6

41 5*
4* 6
c6 6
5
41
41
5
7
3*,

6
6
6
6
8
6

4$ 6
41 6

6 6

DURING 30-DAY PERIOD ENDING NOV. 15, 1918.

Bankers' acceptances,
60 to 90 da vs.

I

District.

6 6 I 6
5M ! 6
5" 6
6

Secured by
Secured by- Liberty
warehouse bonds and
receipts, certificates
etc.
of indebtedness.

6 6
5-1

ii.

L.

a ii.

7
8
8
6-J

H. L. C.

1..
2..
3..
4..




Cattle
loans.

City.

Boston
Now York"..
Philadelphia.
Cleveland
Pittsburgh...!
Cincinnati...
No. 5....| Richmond...
Baltimore
!
No. 6 1 Atlanta
Birmingham.
Jacksonville*..
New Orleans.
Chicago
j
No. 7
j ••etroil
No. 8..:. St. Louis
Louisville
,
Memphis
|
^Minneapolis..No. 0
Kansas City..
No.
Omaha
j
"Denver
!
No. n... Dallas
HI Paso
|
No 12... San Francisco.!
Portland
Seattle
Spokane
Sait Lake....

No.
No.
No.
No.

Collateral loans—stock exchange or
other current.

54
6"
6
5

5-6; 6
7 j8
7 7
6 15
\bi\
!6

L.

6 4 5-8
4
5"" 6
4\ 5
41 41
4* 6

. 8
8
8
8

6
6
6
8

6
8
8

17 6 4-J
; 6
j 8 41
I6 5

15

#

6

41

7 n
7
« Rates for demand paper secured by prime bankers' acceptances, high 6, low 4*}.
& Secured by fourth Liberty loan bonds.

a

41

l

I

1212

FEDERAL RESERVE BULLETIN.

SECOND 4 PER CENT BONDS DUE 1942.

Lost Liberty Bonds.

In the list given below is published the numbers of lost or stolen Liberty bonds that have
been reported to the American Bankers Association within the last month. In the event
that any of the bonds mentioned in the list
should be presented or any information received relative to their recovery it would be
appreciated if the data be reported to L. W.
Gammon, manager Protective Department,
American Bankers Association, 5 Nassau Street,
New York City.
FIRST 31 PER CENT BONDS DUE 1947.
Number. | Amount.
48143...
48144...
48145
i
107439
!
110764
j
164058
!
179669
1
208225
!
236593
!
240149
i
241376
;
271318
'
243067...,...'
343067
i
381852
!
629520
749335
749336
749337
749338
749339
749340
749341
749342
749343
749344
749345
749346
749347
749349
749350..
749351
749352
749353
774691
828824
824825
851492
882839
882840
8S2841
882842

$50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
• 50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

Number.

Amount.! j

Number.

Amount.

i

990050..
990051..
990052..
990053..
990054..
990055..
990056..
990057..
990059..
1069571..
1126488.
1138953.
1138965.
1196970.
1239210.
1261111.
1313684.
1468915.
1468936.
1501011.
1659053.
1720187.
1790543.
1831918.
1835846.
1854652.
1848332.
1886691.
1924415.
1946054.
1966636.
2563528.
6731496.
6731497.
6731498.
6832724.
914
32258...
37257...
37258...
52305...
52306...

S50
50
50
60
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
100
100
100
100
U00
110

sioo
84433
131622
131623
519615
590518
590528
590529
590530
590531
590532
596552
596553
596554
745689
773715
773716
831866
844334
849014
888182
899673
953385
1040119
1242956
1242957
1246214..
1338433..
1916519
3824550....
4765944
41898
41899
14218
50794
50795
50796
50797
50798
233498
453955...

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
500
500
11,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

i Registered.
FIRST 4 P E R CENT CONVERTED BONDS DUE 1947.

116613....
119796.
388531.
430436.
531409.
567506.
701738.
777335.
835029.




$50
50
50
50
50
50
50
60
50
50

928487..
928488..
1677711.
1704994.
2034029.
2076588.
3034030.
3727279.
19290...
325696..

§50
50
50
50
50
50
50
50
100
100

DECEMBER 1, 1918.

510558
522770
559202
594664
665353
1047950
1944335
1944336

S100
100
100
100
100
100
100
100
1,000

Number.

Amount.

47629
98015
116613. ..
194184
231608
231666
254273
312568
367237
367723
368813
399443.. .
440484
485187
567113
567114.
624626
763645
763646
763647
781587
781588
1
78(5800
802772....
802773
835029
855737
932504
939017
980105
1033489...
1067698...
1070131...
1148420...
1154568...
1164347...
1198815...
1198817...
1205793...
1207177...
1233035...
1254881...
1257096...
1424107...
1512035...
1512036...
1520956...
1544867...
1544868..1570688...
1570689...
1570690...
1637258...
1637259...
1717759...
1810753....
1841212...
1848636...
1857987...
1857988...
1857989...
1858203...
1904045...
1904046...
1904047...
1904048...
1904049...
1904050...
1922299...
1923940...
2049960...
2071032...
2115284...
2127815...
2127816...
2373914...
2456320...
2458310...
2467722...
2467723...
2467724....
2467725...
2482869....
2456920....
2554088....

$50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

n
o

50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

50

Number.

Amount.

2570799..,-2643919...
2643920..
2674358 .
2746068..
2807832..
2807833..
2903058..
2950592..
2995770..
3030941..
3044350..
3145940..
3145945..
3168646..
3297545..
3300192..
3342987..
3400301..
3432800.. ...
3455392..
3523804..
3802762..
3010737..
3613572..
3613573..
3622850..
3642259..
3710502..
3712172..
3779773..
3835079..
3835793..
3844601..
3861466..
3886897..
3914852..
3947560..
4066461..
4066462..
4091668..
4091859.. ...
4091860..
4091861.. ...
4091862.. ...
4091863.. ...
4091864..
4091865.. ..
4091866..
4091867..
4091868..
4091869..
4091870..
4091871.. ...
4091872..
4091873..
4091874.. ...
4091875..
4091876..
4091877..
4.091878.. ...
4091879..
4091880..
4091881..
4091882..
4091883..
4091884..
4091885..
4091886..
4091887..
4091888..
4091889..
4091890..
4091891..
4091892..
4091893..
4091894..
4091895..
4091896..
4091897..
4091898..
4091899..
4091900..
4091945..
4091946..

Number. Amount.

S50 4091947
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

4091950
4091951
4091994
4091995..!!.
4091996
4091997
4091998
4091999
4092000
4101895
4298887..!..
4323115
4385506.!.!.
4435837
4467259
4620143.!...
4630780
4711324. . .
4742220
4783266
4855848
4984813
5105260
5122315
5158996
521S302
.
5234417
5322448.
5352920.!!..
5352921
5372461
5397528
5415254
5494227
5519020
5522575
5S85360
5885361
5995294
6069595
6080152
6127488
6197115
6205189
6225225
6260662
6538903
6559381
6559382
6559383
6559384
6559385
6559386
6559387
6559388
6559389
6559390
6680822
6690186
6783119
7092997
7270604
7380295
7380296
7419797
7431223
7466999
7576791
7576792
7636538
7706649
7731535
7875844
17962
33266
54542
92502
143534
182383
191521 . .
191522
191523
192250
198192

$50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
100
100
100
100
100
100
100
100
100
100
100

DECEMBER 1,

SECOND 4 PER CENT BONDS DUE 1942-Continued.
Number.
250378
267407
295010
295011
295012
320675...
320676
320677
320678
338C01
395469.
412886.
431190.
431191.
431192.
447013.
451282.
467523.
483849.
545142.
574(511.
574612.
591165.
635631
652007
852009
652011
652010
659066
669502
699192
701206
701207
701221
721874
746151
746856
813079
821656
883296
1017244
1024686
1089427
1129894
1134126
1245327
1254640
1379764
1440493
1412060
1522577
1543383
1742317
1742318
1742319
1909774
2106420
2144974
2147795
2153279
21532S0
2153281
2153282
2153283
2153284
2166150....,i
2173030
2173031
2173032
2173033
2173034
2173035
i
2173036
:

Amount.

Number.

Amount.

S100
100
1100

2173037
2173038
2173039
U00 2173040
i 100 2173041
100 2173042
100 2173043
100 2173044
100 2173045
100 2173046
100 2173047
100 2173048
ioo! 2173049
100 2173050
100 2173051
100 2173052
100 2173053
j
100 2173054
!
100 21730(>5
j
100 2173056
;
100 2173057
i
100 2173058
!
100 2173059
100 2173060
100 2173061
100 2173062
100 2173063
100 21730(54
100 2173065
100 2173066
100 2173067
100 2173068
100 2173069
100 2173070
100 2173071
100 2173072
100 2189786
!
100 2345576
|
100 2399952
j
100 2399953
i
100 2435973
1
100 2566675
i
100 2567762
!
100 i 2652902
i
100 j 2663768
1
100 I 2704446
j
100 2762709
j
!
100 2762710
100 2802643
100 2807879
100 2856877
100 2835879
100 3181505
100 3284696
100 3486637
100 3487043
j
100 3487044
1
100 3487045
!
1C0 3506564
j
100 3687754
!
100
100
> t
100 3999337
1
100 3999338
\
100 4027493
1
100 4050491
|
100 4063835
!
100 4063836
i
100 4063837
i
100 4063838
j
100 4063839
i
100) 4003840
j
100 4063841
|
100 4063842
|
100 4063843
i
100 4063844.....
100 4063845

Number.

4063846.
IOO 4063847.
IOO 4063848.
IOO 4063849.
IOO 4003850.
100 4063851.
100 4063852.
100 4063853.
100 4063854.
100 4003855.
100 4003856.
100 4003S57.
100 ; 4003858.
4003859.
100 I 4063880.
100 I 4003801.
100 4003802.
ioo ! 4003883.
100 4003942.
100 40039-13.
100 4063944.
100 4063945.
100 4003940.
100 4003947.
100 4063948.
100 , 4003949.
100 i 4063950.
i
ioo r 4063951.
100 j 4003952.
100 !j 4003953.
ioo ; 4063954.
100 j 4063955.
ioo ! 4003950.
100 4063957.
100 4003958.
100 4083959.
100 4063900.
ioo I 4112925.
ioo i 4112926.
100 I4388570.
100 i 4398308.
j
ioo ! 4398309.
i
100 ! 4398311.
' 4398310.
100 ! 4406916.
100 4490859.
ioo ! 4507903.
100 14533...
100 30764...
100 89037...
100 107890..
100 112934..
100 112935..
100 . 194051..
!
ioo!; 290042..
100!; 324217..
100 378338..
100 599476..
100 599477..
100 599479..
100 599480..
100 444024..
100 474766..
100 579974..
100 599476..
100 599477..
100 599479..
100 599480..
100 557390..
100 557391..
100 557392..
100 557393..
100 557394..
100 1304053.
100 1304054.
100
100
100
100

sioo

1

Registered.

THIRD 4J PER CENT BONDS, DUE 1928.

Amount.
8100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
1C0
100
100
100
100
100
100
100
100
100
100
100
100
100
100
500
500
500
500
500
MX)
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
1,000
1,000
1,000
1,000
1,000
1,000
1,000

SECOND CONVERTED 4J PER CENT BONDS DUE 1942.




1213

FEDERAL RESERVE BULLETIN.

1918.

Number.
15425
15426 . ...
27125
37827
37834
37838. . ..
37839
37811
71757
73113
73114
74792
74793
122404
151878
175882
177880
181128
217558
23101-7
268403
:.
342144
362045
362046
385478
380035
380036
383234
521S28
541222
582359
582358
598161
618038
634500
678551
679757
7(57300
918296
928607
981544
992819
993472
1042712
1044895
1044896
1073022
1086520
1086521
1127242
1157909
1175798
1175799
1175800
1216935
1224193
1235837
1386655
1423278
1470609
1537192
1608741
1609742
1630481
1690044
1090644
1708902
1768109
2014003
2059981
2135276
2108368
2168309
2200329
2200330
2200331
2200332
2206495
2270819
2270222
2284394
2284395
2234710
2291883
2295498
2295-199
2820045

$50
50
50
150
150
150
150
150
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

Amount.

2482848
2482849
2515624
2570430
2570664
2589041
2605999
2651746
2764014
2879186
2890324
2890325
2890326
2890327
2890328
2890329
2890330
2890331
2901149
2985170.....
2989171
3009578
3023263
3023301
3023303
3023304
3044746
3069200
3249141
3292137
3311618
3510104
3552939
3564710
3564711
3573409
3653174
3663054
3683419
3753911
3753913
3912825
3926831
3927494
3939195
4062125
4312506
4385614
4432736
4456768
4595065
4706135
4960942
5144266
5354707
5371458
5401427
5406362
5431251
5521739
5615134
577S593
5778630
5779799
5878090
5877743 .
5968548
6150509
6202293 ..
6262294
6268193
6300939
6488556
6578934*
6776636
6776637
6889413
7074474
732S680
7414753
7436298
7469145
7489146
7579261*
7586481
7727589
7727893
1
Registered.

$50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

Number.
7766056
7870986
7936172
8211132
8309101
8309102
8309103
: 8309104
!
8309105
i 8309106
: 8309107
• 8309108
! 8309103
' 8309110
I 8309111
. 8309112
• 8309:113
830911-t . .
- 8309.115
.
8301)116
!
8309117
8309118
8309119
8309120
8309121
8309122
8309123
8309124
8309125
8309126
8309127
8309128
8309129
8309130
8309131
8309132
8309133
8324340
8570463
8583182
:
8039323
8790428
8827148
8868172
9330169
9382419
9667721
9920665
9927759
10032833
10397699
10562129
10642139
10707274
11232242....
11232243
11350838
11432828
11940159....
12110728
12147653....
12706751....
13122575
14668
14667
26204
42757
42758
78417
78418
78119
78423
78424
78430
78431
78433
78434
78435
78436. .....
78437
78438
78439
78440
89921 ....
i 220796
1
?74751
, 27-i752

$50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
100
100
100
100
100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1 100
1100
1100
100
100
100
100

1214

FEDERAL RESERVE BULLETIN.

Amount.

377087
377088 . ,.
441252
441857
450898
498348
521019
524740
674425
739708 .. .
899370
916533 .
920147
920148
920149 .
920150
920151
920152 . ..
920153
1073484
1105353
1105354
1117238
1178153
1221539
1221875
1222088
1346918
1452358
1530764
1586009
1591343
1719018
1737959
1737960
1737961. .
.
1804256
1834420
1876930
1882135
1888478
1924668
1924680
2084901
2122708
2122709
2390260
2300261
2390262
2390263
2390264
2500386
2517332
2517333
2546203
2555307
2591899
26003S6
2631792
2716999
2721001
2721019
2721050
2783119
2847205
3009062
3116301
3367203
3390323
3470854
3539850
3539G51
3609070
3609071
3897908
4138943
4138944
4138915...'..
4347790
4428895
4428306
4827580
5004713




Number.

S100

5092189.
5138217.
5138218.
5138219.
100 ! 5138220.
100 5138221.
100 ; 5161071.
100 i 5161072.
ioo i 5321479.
ioo ! 5398252.
100 ; 5398253.
100 5398254.
100 5398255.
100 j 5398256.
100 5398257.
100 5398258

100
100
100

100
ioo ! 5398260
100 |
100 I 5398262
100 5398263.
100 ! 5502658.
100 i 5502659.
100 5502660.
100 5502661
100 5502662
100 ! 5502663.
100 ! 5502664
100 ! 5502665
ioo i 5502666.
100 i 5502667
100 i 5662340
100 ; 5662341.
100 i 5662342
ioo! 5662343
100 5662344.
100 | 5662345.
ioo! 5662346
ioo i 5662347
100 5662348.
100 5662349
100 5662350.
100 I 5662351.
ioo! 5662352
100 5662353.
100 ! 5662354.
100 5662355.
100 . 5662356.
100 ; 5662357.
100 ; 5662358.
100 i 5662359.
100 ! 5662360.
100 i 5662361.
100 5662362.
100 5662363.
100 5662364.
100 5662365.
100 5662366.,
100 5662367.
100 5677796.
100 5898133.
100 5898131.,
100 6066042.
100 6096043.
100 6084174. ...i
100 6084175.
100 6084176.
100 6084177.
100 0081178..
100 60-84179..
100 60S'11.80.
100 60SS912.
100 6152548..
100 6152549.
1.00 6492086.
100 6521161.
100 6521462..
100 6521463.
100 6521464..
100 6521465.
100 18169...
1.00 181.70...
100 41508...

S100
100 115917..
100 I 134807..
;
100 i 175104..
j
100 i 228884..
.
ioo i 228885..
!
100 , 228886..
i
100 i 250965..
i
100 i 254029..
i
ioo i 254030..
ioo i 251031...
i
100 ;! 323192..
100 i 357665. .
i
100 ij 357669. .
100 "i 427317..
.
100 l 519911..
|
100 i 526077..
!
100 1 532550..
1
100 : 540220..
|
100 :| 754928..
ioo i 754929..
i
754930..
100 >\
754931..
100 , 754932..
|
100 i 754933. .
!
ioo ij 754934..
100 |; 754935. .
100 i 754936..
i
100 ; 754937..
!
100 j 750595..
j
100 I 940195..
!
100 i 67903...
i
ioo ij 70345...
ioo i! 91715...
100 <! 91716...
ioo j! 91718...
ioo Ij 91719...
100 I203461..
100 209266..
100 517311..
100 537978..
100 537979..
100 637980..
100 537981..
100 537982..
100 537983..
100 541163..
100 598021..
100 598022..
100 598023..
100 598024..
100 508025..
100
100 598027
100
100 598029..
100 598030..
100 598031..
100 598032..
100 598033. .
100 598034..
100 598035..
100 598036..
100 598037..
100
100 598039..
100 598010..
100 683400..
100 683491..
100 683492. .
100 083493..
100 683491..
100 683495..
100 683490..
100 683497..
100 G8349S. .
100 683400. .
100 936610..
100 936611..
100 942547..
100 942548..
1
500 1444806.
1
500
J
500

ii
1

Registered.

1918.

FOURTH 4£ PER CENT BONDS DUE 1938.

THIRD 4i.PER CENT BONDS DUE 1928-Continued.
Number.

DECEMBER 1,

S500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
600
500
500
500
500
500
500
500
500
500
500
500
500
1,000
1.000
1,000
1.000
1,000
1.000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1.000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1.000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
i;ooo

Amount.

68385
163426
454931.
454932
454933 ..
454934
671928
723034
723035
723036
723037
723038
723039.
723040
723041
723042 ..
723043
1153708 .
1525068
1808308
1808309
2380854 .
3101093
3101094.
3101095
3101096 .
3101097
3101098
3101148
3101149
3101150
3101151
3101152
3101153
3101154
3101155
3101156
3101157
3101158
3101159
3101160
3101161
3101162
3101163
3101104
3101165
3101166

850
50
50
50
50
50
50
50
50
50
50
50
50
50
60
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

Number.

Amount,

2609914
2609915
2609916..
2609917..
2609918 .
2609919..
2609920
2609921..
2609922 .
2609923
2609924
2609925
2609926 2609927..
2609928..
2609929 .
2609930
2609931..
2609932
2609933..
2609934
2609935..
2609936
2609937 .
2S09938
2609939
2609940..
26G9941
100 ; 2609942. .
100 I 2609943
100 . 2609944..
100 i 2609945
100 : 2609946..
100 ' 2609947
100 j 2609948 .
100 : 2609949..
100 i 2609950..
100 : 2609951..
100 ! 2609952..
100 ! 2609953..
100 ! 2609954..
100 i 2609965
100 2609956
100 2609957
100 2609958

S100

Amount.

Number.

$50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
100
100

3101167
3101168
3101169
3101170
3101171
! 3101172
i 3101173. .
! 3101174
3101175. .
3101176
3101177. ..
3101178
3101179. ..
i 3101180
3101181
! 3101182
3101183
3101184 ...
! 3101185
3101186
3101187
3101188
3101189
3101190
3101191
3101192 ...
36286
59624.
161849
161850
161851
161852.
161853
454930.
468342
468343
547566
927269
2363468
2363469
2363470
2363471
2609909
2609910
2609911
2609912
2609913

100
100
100
100
100
100
100
100
100
100
100
100
100
'100

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
10C
100
100
100
10C

100
100

Removals.
FIRST 3£ P E R CENT BONDS DUE 1947
807579.

$50 • '• 6680822.
SECOND 4 P E R CENT BONDS DUE 1942.

1512035
1512036
4507903

i
i
i

$50 i! 324:217.
50 j 474766.
j
100 !
i

&500
£00

SECOND CONVERTED 41 PER CENT BONDS DUE 1042.
45859S.
458599.
45860073977..

S50
50
50
500

!

I1 73978.
! 73979.
i 73980.
i

$500
500
500

T H I R D 4J P E R CENT BONDS DUE 1928.
1127241
1610751
2893996
2393997
3168624

I
$•">') i
50 j
50 !
50 i {W21402
i
50 i 0521463

,

S100
100
100
100
100

" 6521-16!
i
; (if.2.U6o
!
i 540226
'
. 036610
!
:: 936613

!
I
|
i
1

§100
100
500
1,000
1,000

1215

FEDERAL EESEEVE BULLETIN.

DECEMBER 1, 1918.

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:

(b) Supplementary applications.—A national bank which
has heretofore been granted permission to exercise any or
all of the fiduciary powers enumerated in section 11 (k) as
orignaly enacted, desiring to apply for permission to exercise additional powers, shall make application to the
Federal Reserve Board on a form approved by said Board
(Form No. 61b) Such application shall be forwarded to
the Federal Reserve Board in the same manner as an
original application.
(c) Pending applications.—A national
apFiduciary powers of national banks, revision of regula- plication for permission to exercise trust bank, whosefiled
powers was
tion F, series of 1917.
before the passage of the act of September 26,1918, if it de(To Federal Reserve agents.)
sires to exercise the additional powers enumerated in sec11
application
A revision of Regulation F, series of 1917, tion file (k), as amended, may withdraw such the original
and
a new application on Form 61a. If
which deals with trust powers of national banks application is not withdrawn, the Board will act upon it as
is now in course of preparation. The recent to the powers enumerated in such application, and the
amendment to section i l (k) of the Federal applying bank may later file a supplementary application
the additional
Reserve Act makes certain State laws appli- for(d) Applications powers desired on Form 61b.
heretofore refused.—A national bank
cable to the trust operations of national banks. whose application for permission to exercise trust powers
The laws of the several States dealing with this has heretofore been refused must file a new application on
Form 61a if it desires to exercise any of the powers enumersubject are not uniform.
From letters received it appears that counsel ated in section 11 (k) as amended.

for the several Federal Reserve Banks are not
agreed on the question of what powers ma}^ be
granted to national banks where the State laws
do not specifically enumerate the fiduciary
powers that competing State corporations may
exercise.
It is, of course, necessary that the policy
adopted by the Federal Reserve Board should
be uniform in the several districts, and at the
request of its counsel the Board has deferred
the adoption of a regulation superseding Regulation F, series of 1917, until he can communicate with counsel for the several Federal Reserve Banks.
In order, however, that the Federal Reserve
Banks may-be fully advised as to the method
of procedure to be followed in handling the applications for trust powers, the Board has
adopted the inclosed amendment to Article II
of Regulation F, series of 1917.
NOVEMBER 22,

1918.

AMENDMENT TO REGULATION P, SERIES OF 1917.

Article II, Regulation F, series of 1917, which relates to
applications for permission to exercise trust powers, has
been amended by the Board to read as follows:
II. Applications.
(a) Original application.—A national bank which has not
heretofore been granted a permit to exercise any trust
powers desiring to exercise any or all of the powers authorized by section 11, subsection (k), of the Federal Reserve
Act, as amended by the act of September 26, 1918, shall
make application to the Federal Reserve Board on a form
approved by said Board (Form No. 61a). Such application shall be forwarded by the applying bank to the chairman of the board of directors of the Federal Reserve Bank
of its district, and shall thereupon be transmitted to the
Federal Reserve Board for its action.
93190—18
8




War tax on currency shipments.
(To Federal Reserve Banks.)

In connection with your absorption of the
cost of shipping currency, there are quoted
below inquiry received by the Board and
response thereto:
"There is inclosed herewith a file on the
subject of exemption of war tax on currency
shipments to and from Federal Reserve Banks.
"We shall be very glad to have-some advice
as to whether we should paj^ full express rates
on shipments or whether the Federal Reserve
Bank will be construed as a department of the
Government justified to sign the exemption
certificate provided."
"Reference is made to your letter of November 18, regarding war tax on currency
shipments to and from Federal Reserve Banks
and file accompanying same.
"On page 931 of the FEDERAL RESERVE
BULLETIN for December, 1917, there was published an opinion of the Commissioner ot Internal Revenue that Federal Reserve Banks
are not subject to tax upon charges for telephone, telegraph, and express service when
such charges fall directly upon the Federal
Reserve Bank."
NOVEMBER 21,

1918.

Election of class A and class B directors.
(To Federal Reserve agents.)

The Board has been asked whether, under
section 4, as amended by act of September 26,

1216

FEDERAL RESERVE BULLETIN".

a chairman holding an election of directors may
refuse to count the vote of a member bank unless within the time limit prescribed by him the
bank has filed the necessary certificate authorizing one of its officers to cast its vote. The
Board has ruled that a member bank is entitled to have its vote counted if the certificate
in question is filed with the chairman at any
time before the polls are closed.

DECEMBER 1,

191S.

In reply you are advised that the War
Finance Corporation has no jurisdiction over
operations of Federal Eeserve Banks, and it is
not entirely clear to what rules of that corporation you refer in your letter. Your attention is directed, however, to section 27 of the
farm loan act, approved July 17, 1916, which
provides in part as follows:

Any Federal Reserve Bank may buy and sell farm loan
bonds issued under this act to the same extent and subject to the same limitations placed upon the purchase and
sale by said banks of State, county, district, and municipal
bonds under subsection (b) of section 14 of the Federal
Maintenance hj nonmember banks of clearing accounts Reserve Act, approved December 23, 1913.
with Federal Reserve Banks.
NOVEMBER 19,

1918.

(To Federal Reserve Banks.)

The Board has had frequent inquiries as to
the propriety of permitting nonmember banks
which maintain accounts with Federal Reserve
Banks for purposes of exchange or collection to
make use of the expression "Clearing member
of the Federal Eeserve Bank."
It would be improper to permit this, for the
reason that the banks are not members, nor is
the term "clearing member" authorized by the
act.
Any reference which may be made by a nonmember bank to its account with the Federal
Eeserve Bank should set forth the relation
which actually exists, and if nonmember depositing banks wish to call attention to the
fact that they have accounts with the Federal
Reserve Banks for exchange and collection
purposes, they may use this expression: "Nonmember depositor of the Federal Reserve
Bank, through which checks on this bank are
collectible/7
This is a brief statement of fact and can not
convey any misleading impression as to* the
bank's relation with the Federal Eeserve Bank.
This is a formal ruling which supersedes all
informal rulings previously made on this
subject.
NOVEMBER 22,

1918.

Eligibility of Federal land bank bonds.
(To an individual.)

Receipt is acknowledged of your letter of
November 1, in which *you asked to be advised "if Federal Reserve, Banks are permitted
under the rules of the War Finance Corporation, to advance funds on Federal land bank
bonds or joint stock land bank bonds, up to 100
per cent of thoir par value; or if not, up to what
per cent such an advance may bo made by the
Federal Reserve Banks."




Subsection (b) of section 14 of the Federal
Reserve Act reads as follows:

Every Federal Reserve Bank shall have power:
^ (b) To buy and sell, at home or abroad, bonds and notes
of the United States, and bills, notes, revenue bonds, and
warrants with a maturity from date of purchase of not
exceeding six months, issued in anticipation of the collection of taxes or in anticipation of the receipt of assured
revenue by any State, county, district, political subdivision, or muDicipality in the continental United States,
including irrigation, drainage, and reclamation districts,
such purchases to be made in accordance with rules and
regulations prescribed by the Federal Reserve Board.

As the bonds to which you specifically refer
mature in 1933 they could*hardly be treated as
eligible for purchase by Federal Reserve Banks.
NOVEMBER 6,

1918.

Use of gold com for Christmas presents.

The Board has been asked for an expression of
its views as to the propriety of using gold coin
for Christmas presents. About a year ago the
Board issued a statement giving some reasons
why, in its opinion, it was ixot desirable to use
gold coin for such purposes. There are still
some objections to the use of gold coin for gifts,
for wo are not yet through with war financing,
and the problems which grow out of tho war
and reconstruction will be live ones for many
years. There is a world-wide movement to
discourage the use of gold coin as a circulating
medium upon the ground that gold should be
concentrated in the banks as reserve and used
in the settlement of balances growing out of
international transactions.
New bills can be obtained readily for use as
presents, and Liberty bonds, war savings certificates, and Unitod'Statcs thrift cards can be
used, in tho same way to good advantage. We
should continue to encourage habits of thrift
and should frown upon extravagance and the
wasteful employment of anything which can be
diverted to a useful purpose.
NOVEMBER 26,

1918.

DKCEMBEB 1, 1918.

FEDEBAL EESEBVE BULLETIN.

1217

RULINGS OF THE DIVISION OF FOREIGN EXCHANGE.
Following are formal and informal rulings
made by the Federal Reserve Board, Division of Foreign Exchange, under Executive
order of January 26, 1918, and subsequent
to the issuance of "Instructions to dealers"
of January 26, 1918. The terms "person,"
"dealer/ 7 "correspondent," "customer/ 7 and
such other terms as have a special meaning,
?ire used in these rulings as prescribed in the
JExecutive order ab o ve.
Censorship.
in view of the frequency of the omission of the word
" dealer " on financial cables going out of the United States,
and the delay to cables resulting therefrom, it has been
thought well to reprint the following from "Instructions
to dealers," issued under the Executive order of the President on January 28, 1918:
For the purpose of preventing unnecessary friction
and delay to "dealers" in the carrying on of their foreign
business, the Board has made arrangements for the expediting of the foreign mail of holders of registration certificates. The detaiTof this arrangement can not be outlined,
but in order to obtain the quicker service and to conform
with these regulations "dealers" must stamp their envelopes
with the words "Foreign exchange, U. S. F. II. B. No. —."
For the sake of uniformity and greater efficiency, stamps
should be made as follows:
Foreign Exchange
U."S.F.R.B. No.—,
and should be placed, upon the lower left-hand corner of
the envelope in red ink. Each "dealer" should use the
number of his registration certificate.
Particular attention is called to the fact that no one
other than a "dealer" is authorized to use such stamp,
and if attempted it will result in extended delays of such
correspondence while its character is being particularly
looked into. The foreign exchange censors will have complete lists of "dealers" holding registration certificates.
"Dealers" are prohibited from inclosing customers'mail
in envelopes stamped for the foreign exchange censor
except under the following circumstances: Where a
'"'dealer" is engaged in some transaction which should
be expedited in' the interest of the United States, he may
submit the facts to the Federal Reserve Bank of his district, and such bank, in its discretion, may make the
following notation on the letter of the customer which
the "dealer" desires to inclose: "For exchange censor.
Approved, Federal Reserve Bank." This notation must
be signed by an officer of the bank. Such notation may
also be made by the Foreign Exchange Division of the
Federal Reserve Board. To prevent misunderstandings,
the attention of "dealers" is called to the fact that under
these regulations it will be necessary for them to stamp
all their mail v/hose destination is outside of the United
States, as heretofore outlined, without regard to whether
there is special need for expedition.




The same stamp must be used on cablegrams and must
be placed on the lower left-hand corner of every cablegram filed for transmission.
m All cablegrams must also bear as the last word of the
signature the word "dealer." (Example: Cablegram to
Foreign Bank, London, from. Third Bank, Chicago, would
readf
Foreign Bank, London.
Charge our account and pay John Jones, London,
one hundred pounds.
Third Bank, dealer.
Both the Postal Telegraph Co. and the Western Union
Telegraph Co. have agreed to carry the word "dealer"
as far as the cable censor at the local rate for one word from
the point of sending to the station of censorship. The
censor will delete the word "dealer" before the message
is released. (The censor's office is not in position to
assume the cost of carrying the word "dealer" if through
oversight it should not be deleted, but very positive regulations have been issued by the chief cable censor and errors
should not occur.)
No person other then a "dealer" is authorized to use
either the stamp or the word " dealer" in the manner outlined, and any attempt to do so will be dealt with as the
occasion warrants.
Purchase of securities abroad.
Until otherwise instructed, "dealers" in foreign exchange, as defined in the Executive order of the President
of January 2(3, 1918, are prohibited from transferring funds
to foreign countries for the purpose of purchasing securities, or making investments of any nature whatsoever, for
their own account or that of other "persons," as defined
in the Executive order referred to, except the buildingup of deposit accounts in connection with their regular
foreign exchange business, without first obtaining the approval of the Division of Foreign Exchange of the Federal
Reserve Board.
In connection with this order, attention is called to the
fact that no "person" in the United States can, under the
law, carry out any such transactions unless he is a " dealer''
or, if the transactions in themselves do not require that he
be a " dealer," that they be carried out through a regularly
registered '' deal er."
OCTOBER 28, 1918.

Credits covering goods in warehouse.
Until otherwise instructed, "dealers," as defined under
the Executive order of the President of January 26, 1918,
are hereby prohibited from issuing letters of credit or
making transfers of funds, for the purpose of purchasing
goods to be held in warehouse for future and indefinite
shipment, without first obtaining the approval of the director of the Division of Foreign Exchange, Federal Reserve
Board.
NOVEMBER 4, 1918.

1218

FEDEEAL EESEEVE BULLETIN.

DECEMBER 1, 1918.

LAW DEPARTMENT.
Uniform negotiable Instruments lav/ adopted In California.

OFFICE COMMISSIONER OF INTERNAL REVENUE,

Washington, November —, 1918.
In an informal ruling of the Board published
SIR: Reference is made to your letter of November 6,
on page 971 of the October (1918) BULLETIN, 1918,4 relative to the method of determining whether a
California was mentioned as one of the States draft* on a domestic bank is exempt from stamp tax within
in which the uniform negotiable instruments the ruling of the letter to you on June 19, on the ground of
connection with an export transaction.
law had not been adopted^ Since the publica- itsThe reason for holding such a draft exempt is, as stated
tion of this ruling, the Board's attention has in the letter of June 19, its direct connection with a process
been called to the fact that this law was adopted of exportation; it provides a financing method which perin California by an act approved June 1, 1917 mits the exportation to begin. This connection depends
solely on tjie function of the draft and not at all on the
(California Statutes, 1917, p. 1533).
length of time which the draft has to run. The letter of

June 19, stating that even though the draft is to be paid
Stamp Tax on drafts in connection with shipments of before the ocean voyage begins the connection with the
export transaction is not thereby affected necessarily
goods to seaboard.
holds that the length of life of the draft is immaterial on
The Board's attention has been called to the the question of exemption.
fact that some difference of opinion exists as to The ground of exemption is the function of the draft to
finance
and
the proper interpretation of the ruling of the attached an export transaction. Therefore the draft draft
papers should be examined to see that the
Commissioner of Internal Revenue, published represents all or part of the price of goods bought for export
on page 614 of the July (1918) BULLETIN, in and placed in a course of export in one of the ways speciregard to the application of the stamp tax to fied in article 31 of Regulations 42.
Respectfully,
drafts drawn in connection with shipments of

DANIEL 0. ROPER, Commissioner.
goods to the seaboard for export.
To clear up any misunderstanding, the [Treasury DeDartnxent. United States Internal Revenue. Eegulaquestion was again referred by counsel of the
tions No. 42.]
Board to the Office of the Commissioner of
ART.
on property
Internal Revenue, and there is published below actually31. Chargesexempt from shipped for export and
exported
a copy of the counsel's letter and the reply the exportation of property in thetax.—Amounts paid for
course of exportation to
thereto of the commissioner.
foreign ports or places are held to be exempt from the tax
WASHINGTON, November 6, 1918.

SIR: In June we had some correspondence on the subject
of revenue stamps on drafts drawn to finance sales of goods
to the allied purchasing commission, and your office
finally ruled as follows:
" I t is accordingly held that the stamp tax imposed by
subdivision 6 of Schedule A of title 8 of the act of October 3,
1917, does not attach to drafts on domestic banks in connection with the shipment of articles from the interior to the
seaboard where such articles have been sold to the United
States agent of a foreign purchaser for export under circumstances entitling the transportation within the United
States to exemption from the transportation tax."
The Federal Reserve Banks and member banks were
advised of this ruling through the FEDERAL RESERVE BUL-

LETIN, but it appears that the interpretation placed upon
it by banks in different parts of the country is not uniform.
In some instances counsel have advised the banks that
drafts drawn in connection with the sales to the allied purchasing commission are subject to the tax unless accompanied by shipping documents or other evidence showing
that the period the draft is to run is more or less coincident
with the time consumed in the shipment from the interior
point to the place from which the exportation is to be made.
In other instances counsel have taken the position that
if the drafts are drawn in connection with the actual sale
to the allied purchasing commission, they are exempt from
the stamp tax, whether or not the time the draft is to run
is a longer period than would ordinarily be consumed in
the domestic shipment of the goods. In order that the
matter may be definitely determined, will you be good
enough to let me know which of these is the correct interpretation of your ruling?
Eespectfully,




M. 0. ELLIOTT, Counsel.

imposed under section 500 of the act. Property may be
deemed to be in the course of exportation when it moves
under any of the following conditions:
(a) Under a through export bill of lading.
(b) Under a domestic bill of lading or receipt on which,
at point of origin, "For export", is marked or the foreign
consignee and destination are specified.
(c) Under a through bill of lading or through live-stock
contract to a place in Canada or Mexico.
(d) Under a domestic bill of lading or receipt marked
at point of origin, ' 'For export", wherein the Food Administration Grajn Corporation, Director of Overseas Transportation^ British Admiralty, or any export representative
of the United States or of a foreign Government, approved
by the Commissioner of Internal Revenue, is named as
consignee.
Provided, That in either case (a) or (6), the property so
consigned be delivered to a vessel clearing to a foreign port
or place, and a ship's receipt is taken therefor, or, in case
(c) the property so consigned be delivered at a place in
Canada or Mexico, or, in case (d), the property so consigned be delivered to such consignee.
_ If, when property is delivered to a carrier for transportation, it clearly appears that such goods are in the course
of exportation as provided in clause (a), (6), (c), or (d)t no
tax shall be collected on the amounts of any otherwise
taxable charges prepaid upon such property; but, unless
such property is delivered in such manner as is specified
in the proviso to such clauses, the total transportation
charges on such property, from the point of orkin to "
destination, are subject to the tax, and such tax must be
collected as and when the transportation charges thereon
are collected, if the transportation charges be billed collect,
or, upon delivery of the consignment, if the transportation
charges, or any of them, be prepaid.

SUMMARY OF BUSINESS CONDITIONS NOVEMBER 23, 1918.
Industries of the
district.

No. 1 — Boston

! iTcsit.ai in;?;.

Construction, building,
and engineering.

Busy.

• Crop condition.

District.

Increase in valuo

Foreign trade.
Decrease

Money rates.
Firm

I
No.
N 2—Now York..! Voiuv.io docmis- | Good .
| irr.r, except v:I inil s u<^; ^roHis
j

il<Uli"(\'«SL!113f:

I

L'C.ii.ori.s gocl
LCiioris gocl.

COL-

No. 3—Philadelphia! Very goo:!

Good

i

Reduced activity; j Normal seasonal in- Stimulated inter- Slightly lower
activity; outlook im- est; some uncer|1 many orders
proved" by removal
tainty.
cancelled.
of government restrictions.
j Very busy
j

r conditions.
l'ost-oiTice receipts More plentiful.
mixed.

| Building at low ebb,
! but prospects bright.

Continue firm

i Inactive

CO

Very little shortage
since armistice was
signed.

Increase

Tendency to in- Increase
crease.

Increasing

! No labor disturbance
| expected.

I

No. 4—(•lovoiand... j 3ati.J factory

Busy

being Inactive.
No. .ri—Richmond... Resuming a,c!;.i vily! Tobacco active at ! Limited only by I Preparations
made to resume
high prices; cot- | supplies * and
•After effects of
activity.
toil held for 30 : labor.
influenza.
Satisfactory..

No. 6—Atlanta
No. 7—Chicago

Good

| VMHHl but reflect- j Excellent
Good 1.)lib I l l i i i ' U l ing
conservatism.

No. S—St. L o u i s . . . ! Good.
No. 9—Minneapolis '

Win tor v/h e a t
excellent.

Continue active... Very quiet

Active demand, Railroad facilities i Thought to be imimproving: post
6 per cent.
proving.
oil ice in full volume.
, Stationary

Stationary

Firm

Head jus ting to Quiet.
peace basis.
Slow

do

No change .

Dull but promising re- Heavy on meats... Firm, 6 to 7 per Heavy
vival.
cent.

No. 11—Dallas

Inactive

I Condition good;
outlook' promis-

do

ing.

No. 12—San Fran- | Volume largo, colclsco.
j lections good.




i

Good

do

i
i

1

I

Fair.

1

Increase in postal Improving.
receipts.

No. 10—Kansas City! Continues active.. Condition normal; Active
outlook excellent.
-..! Satisfactory

.•

Firm at 6 per cent. Post-office receipts Scarce and restless.
decrease.

Dull but showing improving tendency.

j Active

Slowing down

do

Quiet

• Scarce.

GoodRecovering from influenza.

Increase in Octo- No changes: firm Railroad in creased; Unsettled and unber.
at 6 to 8 per cont. post office 21.8 per
satisfactory.
cent increase in
October.

Decreased: new proj- Increasing
octs under consideration.

Firm and station- Increasing
ary.

Full employment.

to

1220

FEDERAL RESEKVE BULLETIN.

DECEMBER 1, 1918.

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 NO. 1.—BOSTON.

The capitulation of the central powers and
the cessation of hostilities has so far overshadowed all other factors in the business
situation as to make them "wholly neglible.
In this district war industries had reached
their height in late September, and efforts
were being devoted almost entirely to the
prosecution of the war. By the middle of
October peace discussions were causing uncertainty and general hesitation and, and this
month finds business face to face with the readjustment period.
Already there are reports of canceled war
contracts and of labor being less freely em>loyed, and labor leaders are on the defensive
est there be a return to prewar wages and
hours.
Next in importance to labor is the question
of high cost inventories and the task of those
having a large stock carried at war prices to
continue domestic business on a profitable
basis while prices are becoming adjusted.
The money market remains inactive with no
change in tlie level of rates, 8 per cent beingquoted for practically all classes of accommodation. Banks have experienced some demand
the last few days from customers who have
delayed expenditures until the close of hostilities and are now either drawing down their
balances or borrowing to carry out their purposes.
Cotton mills are well sold up for the balance
of the year and buyers have little interest beyond small lots for immediate delivery. As a
consequence, business in mill centers is extremely quiet. The labor situation is much
better, and mills are beginning to have old
employees return who have been engaged in
munition plants and are now out of employment. Until manufacturers can ascertain what
part of their machinery is to be available for
civilian orders of an entirely different character

f




they have little interest in the market for raw
material, and purchases are unusually small.
The release of wool for civilian needs is the
principal feature of that market. However,
manufacturers are not anxious to make large
purchases until they are more certain of future
price levels. The wool trade will be in a good
position in case of a decline in the market, as
the entire supply is owned by the Government,
which is taking the clip being received from the
West. Manufacturers have so far had no war
orders canceled, upon which work had commenced, although the Government will permit
of cancellation at the option of the mill. It is
estimated that present contracts will carry
them until well toward the end of the ^ear.
As a result of the armistice, price restrictions
on shoes have been removed, although the restriction on colors will remain until June 1,
1919. The retail shoe dealers are, in consequence, somewhat uncertain as to whether or
not they should stock up heavily for the spring
trade. Manufacturers, however, have had
few cancellations of spring orders. The Italian
Government is in the market for a large number of civilian shoes, and it is expected that
orders from other foreign countries will follow.
In the dry-goods trade conditions remain
unchanged. There are many inquiries as to
the future course of prices, and some hesitation, but practically no orders are being canceled. Dry-goods merchants turn their inventories over several times a year, and even in
a falling market should be able to liquidate
without serious loss.
Boston clearing-house figures compare as
follows:
j Nov. 16,1918. Oct. 11,1918. Nov. 17,1917
Loans and discounts
Demand deposits
Time deposits.
Due to banks..
Exchanges

i S569,900,000 §521,285,000
506,633,000 450,092,000
13,515,000
14,685,000
116,028,000
120,528,000
318,703,051 1246,191,936
1

8501,874,000
448,815,000
26,560,000
153,431,000
374,002,763

5 days.

Building and engineering operations in New
England from January 1 to November 14,
1918, amounted to $139,206,000, as compared
with $189,058,000 for the corresponding period
of 1917.
The receipts of the Boston post office for October, 1918, show an increase of $138,788.80,

DECEMBER 1,

1918.

FEDEKAL RESEEVE BULLETIN".

or about 17 per cent more than October, 1917.
For the first 15 days of November, 1918, receipts were about 19 per cent or $100,752.48,
less than for the corresponding period of lastyear.
DISTRICT NO. 2—NE¥/ YORK.

Attention in this district is centered on the
roblem of readjusting business to a peace
asis, different lines reacting in different manners to the change in conditions since the
armistice was signed. In general, the volume
of business continued above normal until about
November 10, and then contracted with gradually increasing rapidity during the next fortnight. Sales by retailers, which were somewhat restricted at the beginning of the period
under report because of the influenza epidemic
and the spirit of war economy, showed a decided gain toward the end of November. On
the other hand, sales of manufacturers, jobbers,
and retailors decreased considerably after the
armistice was signed, especially in those lines
where it was felt that new conditions would
cause a fall in prices, the tendency being to
buy only for immediate requirements. Supply
of materials is generally satisfactory. The
eneral rise in prices was checked somewhat
ut there was no widespread decline. Profits,
as for some time past, are reported as decreasing, due to high wages, the shortage and
inefficiency of labor, and in some lines to large
overhead expenses as compared with tne
volume of business done. The tendency to
shorten credits continues, and collections are,
on the whole, good.
Labor.—Since the signing of the armistice
the labor shortage has almost disappeared, except for a very slight scarcity in the unskilled
class and of certain kinds of clerical workers.
Many firms report that former employees are
reporting back for their old employment and
that others are applying for work. There is
little unemployment, however, except that just
at present some workers, who have been employed away from their homes in war plants,
are returning to seek permanent positions.
The New York State Department of Labor
reports that the record August pay roll in the
State was surpassed by that of September by
5 per cent, but that October showed a falling
off of about 4 per cent from the September
aggregate. The decline, both in number of
workers and in aggregate wages, was felt in ail
of the eleven industry groups reported on,
being heaviest in the paper and textile trades.

E

f




1221

The decrease was due primarily to the recent
influenza epidemic.
Agriculture.—Crops were generally satisfactory. Apples, hay, oats, and onions were
very good; other products fair, except grapes,
which fell 40 per cent below normal.
Foodstuffs.—Trading in coffee on the produce
exchange has been suspended since November
1, except for liquidation of certain contracts.
Prices are firm and show little change. There
was no noticeable change in sugar, and the
recent increase in allowance to consumers has
had little effect on the demand. The demand
for most canned goods, except tomatoes, is
strong, but the supply is very light. In
general, buying by retailers has become more
conservative.
Building.—Building, other than Government
construction, continues to be inactive. With
the lifting of the limitation on the production
of building material and on construction work,
however, the outlook is for increased activity.
There is a fair amount of uncompleted work
to be finished, but the real effect of the raising
of this limitation, it is expected, will not be
felt until next spring.
Railroads.—The average daily loading of
cars of export freight at New York during
October was 44.5 per cent highor than during
September, due to the rapidly increasing
volume of freight for the United States Government. A comparative statement of traffic
handled at New York for 23 days ending
October 14 shows an increase of 19.4 per cent
in the tonnage as against a decrease of 9 per
cent in the number of cars used to carry that
increased tonnage.
Foreign trade.—The signing of the armistice
was a decided stimulant to interest in foreign
trade, offset, however, to some extent by
limited shipping facilities and by continued
political disturbances in some of the foreign
countries. There is considerable agitation just
now for improvement in port and terminal
facilities at New York Gity.
Textiles.—The cotton market has been irregular throughout the period under report. Short
sales are now forbidden by Government order.
With wool, the domestic supply is small and
the price is fixed. There was no release of
wool for civilian purposes until just at the
end of the period. In woolen goods, speculators have cut their prices 15 per cent to 25
per cent, and in cotton goods cjuotations are
down 1 to 3 cents a yard. Silk prices are
rather firm.

1222

FEDERAL EESEBVE BULLETIN.

DECEMBER 1, .1918.

Goal.—At New York City the supply of ending of the war, the consensus of opinion|is
bituminous coal is ample, but there is a short- that the period of readjustment will be relaage in anthracite of domestic sizes. Outside tively short, to be followed by an era of industhe city the fuel supply is reported as satis- trial activity in which the world will be reconfactory.
structed.
Paper.—The demand in the paper industry
Overtime and Sunday work has been abolhas been outrunning the supply, but with the ished in war and shipbuilding industries, but
announcement of the signing of the armistice it is believed that the campaign for construca slight hesitancy in placing orders was ap- tion of ships in the yards already built will be
parent.
carried steadily forward for some time.
Banking.—Clearings at New York for the 10
The foreign commerce of the district, which
months ending November 1 show a gain of 7.3 lias been choked up by the war, is expected to
per cent over the same period in 1917. They revive and create a new demand for labor. In
increased slightly after November 14. Loans addition, manufacturers expect a tremendous
of New York City banks increased during domestic demand for a great variety of articles
October somewhat faster than did their demand which our people have had to dispense with
deposits, including Government deposits. Out- because of the war. Municipal expenditures
side New York City, banks in general report for needed improvements, held in abeyance
that their deposits have increased both in during the war, are also under way. Another
amount and in the number of accounts.
method of providing needed work "will be railSecurities.—The stock exchange has been I road improvements and extensions.
fairty active, with attention directed more and | The situation as regards supplies of fuel
more toward those stocks which wo\ild pre- | reflects considerable improvement, no undue
sumably benefit by peace. Stock prices were scarcity being apparent, despite the loss in
irregular during November, the general list ris- output occasioned by the recent epidemic.
ing during the first week, but falling during The shipments of anthracite for the month of
the the next fortnight to a level slightly below October, as furnished to the Anthracite Bureau
that of the beginning of the month. Bond of Information, amounted to 6,286,366 tons,
prices continued their upward trend through as compared with 7,110,950 tons for October
the first week and then showed little net change last year and 6,234,395 tons for the month of
during the next two weeks. Liberty bonds September this year.
are fairly active, with no marked changes in
Jlailroad freight car movements continue
quotations.
heavy. The loaded car movement over the
Pennsylvania Railroad at Lewistown Junction
DISTRICT NO. 3—PHILADELPHIA.
during October totaled 105,589 cars,-as comA more normal situation has resulted from pared with 108,481 in September and 94,557
the waning of the influenza epidemic. Retail in October, 1917. Eastbound shipments of
trade has improved, and merchants express the bituminous coal increased 40.5 per cent over
belief that the buying during the balance of October of last year; miscellaneous westbound
the year will more than make up the loss caused decreased 24.1 per cent. During the first 14
by the epidemic.
days of November the number of loaded freight
In wholesale lines, however, conservatism is cars passing the junction was 46,027, as commanifest, many buyers displaying a disposition pared with 41,389 during the same period of
to hold back orders until more definite knowl- last year.
edge is available concerning the trend of prices,
While total pig-iron production in October
deliveries, etc. At the same time, inquiries surpassed that of September, the daily rate
continue fairly numerous, and though pur- was smaller; the output per day in October,
chases are mainly in small lots to cover imme- because of the restraint imposed by the indiate requirements, the volume of business in fluenza epidemic, fell to 112,482 tons from the
the aggregate is very encouraging. Manufac- high record of 113,942 tons in September, and
turers continue busy, practically all the leading the number of active furnaces on November 1
mills and factories operating to capacity and was unchanged at 365. Yet the aggregate
most of them still complaining of the scarcity production of 3,486,941 tons in October has
of help.
only been exceeded by the 3,508,849 tons of
While there is a strongly defined tendency to October, 1916. There are indications that a
mark time trying to sketch out the probable considerable volume of iron and steel business
breadth of the readjustment on account of the may soon be placed. Stove manufacturers and




FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

others who have been working under restrictions are already looking forward to a period of
greater freedom and are inquiring as to whether
they can obtain material without priority orders'
It is confidently expected that as soon as the
policies dictated at Washington will permit, the
placing of orders by "nonessentiar' users will
be started. There is every prospect that
eventually there will be a period of steady,
orderly demand.
There has been a downward tendency in
cotton-yarn prices while the Government is
adjusting contracts. The Government controls the wool situation, owning practically all
the wool in the United States. Some is now
being released for civilian use.
Mills manufacturing book and high-grade
printing papers are running on about a 75 per
cent basis, due chiefly to labor shortage and a
scarcity of wood pulp. The domestic consumption is not more than 40 per cent of normal, but the excess in production is readily
absorbed by the demand for export. As the
deficiency in the wood pulp can not be overcome before next summer, the output of fine
printing papers during the first six months of
1919 may be far below normal. The only
possible relief appears to be in the hope that
the Scandinavian countries have during the
war accumulated a large tonnage of pulp, which
with the release of ships will flow to this
country.
Sentiment among builders is particularly
optimistic, as they look for a pronounced increase in activity with the removal of Government restrictions and the probably better supply
of labor that is expected to follow a curtailment
of Government construction. There has not
yet been much change in lumber, but shipments
continue to improve and prospects are regarded as brighter. Building at present is at
the lowest ebb for a decade, the figures for
October being as follows:
j Number of permits.

1

Allen town
Altoona
Atlantic City..
Harrisburg.'...
Lancaster
Philadelphia..
Reading
Seranton
Wilkes-Barre..
Williamsport..
York




October,
1918.

October,
1917.

13
40
61
16
8
333
13
12
49
4
33

40
22
110
26
20
552
32
35
45
9
31

Values.
October,
1918.
$34,685
10,160
18,453
7,150
3,730
843,520
1,775
10,420
13,233
400
7,580

October,
1817.
$77,725
7.651
124; 113
146,160
8,800
2,030,475
24,125
236,905
41,851
60,872
42,450

1223

The money market has remained firm during
the past month, the prevailing rate for paper
being 6 per cent, with the banks buying verv
little.
Loans and discounts to member banks by
the Federal Reserve Bank during the month.
of October amounted to $215,323,196, of which
89 per cent represented notes secured by
Liberty bonds or certificates of indebtedness.
Bankers' acceptances purchased amounted to
$30,976,703. Total discount and investment
operations for the first 10 months of the year
amounted to $1,146,822,763.
DISTRICT NO. 4—CLEVELAND.
This district, by reason of its large part in
the manufacture of war materials and its prominence in the production of basic steel and iron,
is consequently affected possibly more than
others by the signing of the armistice, and
adjustments will be correspondingly severe.
Anticipated changes, together with peace celebration and the epidemic of influenza, have
decreased production. However, there is little
pessimism about the ultimate future, and it is
believed that in view of the dammed-up domestic demand and probable export requirements,
necessary readjustments can be accomplished
without undue strain to the business fabric.
Manufacturing.—Manufacturers
are concerned with the adjustments which peace will
finally impose. Cancellation of Government
orders, of course, is expected and has caused
some uneasiness and speculation as to future
prices and conditions. Up to the present time
but little slackening on this account has been
noticed.
Plate mills are ranning as full as conditions
will permit. Mills engaged in producing cotton ties report that orders have "been filled and
operations suspended for the season. Inquiries for pig iron are few. The tonnage moving
is chiefly of the steel-making grade.
Up to the middle of November the iron and
steei trade generally has been satisfactory,
and while some inquiry has been made as to
terms upon which cancellation of orders might
be made, yet this is to be expected and is not
causing any uneasiness. I t is believed that
conditions in these lines will right themselves
very quickly.
Many industries outside of those devoted to
war goods report large orders on their books not
subject to cancellation, and considerable new
small business is being offered.
There are many indications of a return to
their respective fields of industries which have

1224

FEDERAL BESEKVE BULLETIN.

been held in check by reason of the suspension
of the law of supply and demand and through
Government control.
Clay products.—Manufacturers of building
brick and tile report a scarcity of orders.
Other ceramic industries are reported quite
active. Little change is noted by window
glass manufacturers.
Fuel.—The demand for coke shows some
slackening, due to the belief that peace will
bring lower prices. The epidemic of influenza
has been most severe in the coal and coke
regions and has caused a very marked decrease
in the output. This condition prevails generally throughout all the coal fields.
In places in the Kentucky fields production
is reported to have been cut at least 60 per
cent for a period of about three weeks.
Agriculture.—Crops for this district have
been harvested for the year and with very few
exceptions it has been an exceptionally satisfactory year to the farmer, both on account of
the yield and the price obtained for his products. All sections report a large acreage sown
in wheat, and its condition is all that could be
expected at this time.
In the northeastern section the apple and
grape crops have been very good, although the
potato crop is reported to be only 80 per cent
of normal.
Corn husking is practically finished, and this
crop is very much more satisfactory this year,
both in yield and in condition, the late fall
allowing for proper maturing.
Generally it is believed that there has been an
increase in the number of live stock over a year
ago. There have been no epidemics or disease,
and hogs have been practically free from
cholera.
The tobacco crop is a very large one. It is
said to weigh heavier than usual this year, and
this, together with the increased acreage, will
make a very large tonnage. It is probable that
the moving of this crop will tax the banks in the
affected localities to the extent of their credit
powers.
Agriculture in this district has kept step with
the country at large in its "speed-up" program
made necessary by reason of the war.
The Governor of Ohio has named Thanksgiving week as a time to be set apart for celebration of the culmination food production
Erogram and big patriotic mass meetings will
e held at each county seat on Saturday of that
week.
Labor.—The prevalence of influenza has had
a very marked effect upon the labor supply,




DECEMBER 1,

1918.

particularly in steel and coal centers. Generally throughout the district it has tended to
lessen production. Aside from this, the labor
situation remains practically as heretofore—a
very strong demand, and shortages in localities.
The cancellation of calls in the selective
service has tended to relieve a heretofore expected shortage on this account. It is thought
that the return of the men from the camps and
from foreign service will gradually relieve the
strong demand. The changes likely to take
place in the industrial field tend to unsettle
labor. Improvement in supply of skilled labor
in some lines is noted.
Collections.—In a number of instances there
is reported a falling off in collections during the
past few weeks and in some cases it is reported
that pressure is necessary. These reports,
however, are sporadic and a number of large
concerns report that collections continue to be
exceptionally good and that they expect little
difficulty along this line by reason of the adjustments which will be made.
Transportation.—No complaints are registered this month of hardships occasioned by
lack of proper transportation facilities, and in
consequence it is believed that the situation is
better in hand than has been the case since last
fall.
.
Rolling stock and rails have been taxed to
their utmost during the past year and are believed to be in great need of repairs, and unless
these have prompt attention transportation
companies will be greatly handicapped in the
future.
Mercantile lines.—Wholesale and jobbing
houses report some hesitation in buying and
also state that business is not quite up to the
standard of the past few months, due in part
to the prevalence of influenza. The last few
days are said to have shown improvement in
nearly all lines. However, speculation as to
the effect the ending of the war will have on
present values tends to retard the placing of
orders.
Altogether the jobbing and wholesale business may be said to be in a satisfactory condition.
In the retail lines there was a decided falling
off for a time, but buying is now gathering
impetus, and with the lifting of the quarantines and the coming of seasonable weather it
is thought it will show an improved condition.
Money and investments.—The demand for
money is increasingly firm and there is a
tendency to higher rates. Bankers say that
concerns whose business has been held in

DECEMBER 1,

1918.

FEDERAL RESERVE BULLETIN.

abeyance through Government control and
other reasons are now looking forward to
means for financing their affairs when the
restrictions have been lifted. It is believed,
however, that care is being exercised and discrimination used until Government financing
has secured its requirements.
Building.—The building in process of construction is confined altogether to that for industrial purposes and for the housing of workingmen, which is absolutely needed. The outlook for this industry, however, is good and undoubtedly as soon as restrictions tiave been
lifted there will be general activity. However,
until the bans have been removed this industry
will probably be less active than heretofore on
account of the cessation of the demand for
essential building.
DISTRICT NO. 5—RICHMOND.
The foremost event in this district during the
past month was its subscription to fourth Liberty loan bonds of $352,400,000, the allotment
being $280,000,000. This gave the fifth district a percentage of 125.95, which was excelled
only by the Boston district.
Out of approximately $352,400,000 of fourth
Liberty loan bonds subscribed for in this district, $178,700,000 were paid for in full on
October 24, and upon the remaining $173,700,000 the initial payment of 10 per cent was
made.
In making these payments, $96,000,000 was
paid by credit in war loan deposit accounts.
Several calls have been made upon these deposits, leaving approximately $24,000,000 yet
unpaid, but the final call will require the pa}rment of this balance November 21.
On November 21 the second payment of 20
per cent on $173,700,000 of installment subscriptions was due. The actual payments will,
of course, exceed the amount due, as some subscribers will exercise the privilege of paying
subscriptions in full on a regular installment
date, rayments will undoubtedly be made to
a large extent by credit in war loan deposit
accounts.
The subsidence of the prevalent influenza
permitted the reopening of churches, schools,
and other places of gathering. The united
war work campaign has been brought to a
successful conclusion. Richmond has exceeded
its allotment of $416,000, and generally satisfactory returns are anticipated from the entire
district.
Trade has been spotted and below normal
during the influenza period, but on the whole




1225

prosperous and on a sound basis, both for
manufacturers, jobbers, and buyers. Dun's
last available monthly report of failures shows
27 in the fifth district, with a total of $245,000
of liabilities, as against 56 failures, with a total
of $715,000 of liabilities, during September,
1917. Stocks of goods are rather below normal
and buyers are cautious at present prices.
Collections have been restricted by the influenza, which compelled the closing of the
tobacco markets from October 10 to November
2, and by the slump of 5 cents per pound in
cotton. The reopening of the tobacco markets
has promoted the return to normal conditions
and relieved the stagnation to a material extent.
The average price of tobacco for the season, to
November 1, was 34 cents against 30 cents for
the same period last year. The reopening of
these markets resulted in a strong demand for
currency and the Federal Reserve Bank
shipped Federal Reserve notes to the amount
of $7,500,000 in six days.
The production of cotton has been increased
by the very open fall weather. The price of
spot month contracts in New York on October
14 was 31.45 cents per pound and on November
14, 26.35 cents, a decline of 5.10 cents per
pound. Since spot prices in the South fell
below 30 cents, farmers have sold very little.
Many are storing the staple and, where necessary, are borrowing sufficient amounts to
liquidate current obligations. Merchants are
getting in hand, or in storage, cotton to protect
obligations due them. There is a persistent
refusal to sell below 30 cents and many express
a determination to hold off for higher prices.
This refusal to sell at higher prices'when they
had the opportunity should be an object lesson.
Cotton is urgently needed abroad and foreign
shipments would appear to be the only relief
from the present embarrassing situation.
Manufacturing continues active with the prevailing restriction of supplies and labor. The
effects of the influenza are passing and mills are
resuming more normal operations. New business, however, is reported less active.
The coal trade is in better condition than for
some months past and no serious shortage of
fuel is anticipated. The weather in the district has been unusually open, which has served
to reduce fuel consumption.
The large volume of business moving is
reflected in an increase of 54 per cent in clearing-house returns. Deposits in member banks
have remained fairly satisfactory, but the
condition in the tobacco markets referred to
has caused some shrinkage. Money is in

1226

FEDERAL RESERVE BULLETIN.

strong demand at 6 per cent, and this is reflected in increased demands for rediscounts
at the Federal Keserve Banks, both for deposit
and installment payments on subscriptions for
fourth Liberty loan bonds. The volume of the
Federal Reserve Bank loans has approximated
SI00,000,000, over 65 per cent of which appears
to be on account of bond transactions.
The readjustment period confronting us
presents to this district, as well as the whole
country, vital questions of interest. As Government demands relax, the tendency will be
to release, first, labor; second, material; and
third, credit. These much needed essentials
can be devoted to peace industries, and will
facilitate their return to supplying the enormous reconstruction demands of the world.
The trade awaiting the industries of the district promises a continued and more stable
prosperity. Restrictions on building and other
essential construction are being removed and
labor is being affected by the decline in Government activities. All Sunday and extratime work has heen discontinued at the Norfolk
Navy Yard and other Government plants and
large manufacturers working on Government
contracts are following suit* One large corporation which has ceased taking on new employees is allowing its force to be gradually
reduced by the natural turnover of employees,
and during five days 700 employees have
found employment elsewhere and" left. As
Government requirements for material relax,
supplies for private work will be more readily
obtainable. As present Government obligations are met and new ones are restricted,
national demands on credit will also relax,
and we will gradually return to normal conditions. There is a general feeling throughout
the district that as soon as the readjustment
steps are successfully accomplished, we may
reasonably expect good business.
DISTRICT NO. 6—ATLANTA.

The recent decline in cotton has had a depressing effect on business in general, and while
it has created somewhat temporary pessimism,
the leaders of agricultural, industrial, and commercial enterprises are not inclined to underestimate the Nation's strength and power to
recuperate; and a gradual readjustment of
business and the proposed plan of demobilization of the Army give hope for a bright
future.
The cessation of hostilities, corning as it
does just previous to the holiday trade, it is
believed will have a better effect on business




DECEMBER 1,

1918.

conditions than had the war come to a practical
end early in the year.
It is an indisputable fact that the present
crop has cost more to produce than any crop
of cotton ever grown in the district and the
growers feel that they must obtain close to
35 cents per pound if they are to realize a profit.
This applies to short staple cotton. The long
staple cotton situation is reported rather
demoralized; the factors are reluctant to furnish advances, and producers are holding,
refusing to sell except at fair prices.
The farmers are being morally supported in
their holding movement and will probably
continue to receive sufficient financial assistance to enable them to hold the bulk of their
cotton off the market until higher prices are
established.
Business men think that the era of high
prices is here to stay for some years because
of the fact there is hardly a surplus in any particular line. The sudden termination of "the
war has caused a lot-up in business conditions
and there is little tendency to place orders
ahead at this time, owing to the unsettled condition of the markets and the uncertainty of
the time of withdrawal of Government restrictions. The general consensus of opinion is
that we should continue to conserve our resources and restrict credits generally, with the
exception that more opportunity be given to
those who are undertaking to produce food.
During the war little, if any, construction has
been carried on. This applies especially to
farm buildings, and it is hoped that there will
be a loosening up of credit along this line and
also of funds to purchase labor-saving machinery for farmers.
While the banks show a general willingness
to carry cotton, there is no large borrowing by
the producer for the reason that a large majority sold sufficient cotton early in the season
at a fair price to liquidate existing indebtedness, and the forced economy and restricted
credit due to Government regulation have left
farmers in a relatively better position to carry
their surplus crop than heretofore. They are
also better supplied with cattle and hogs.
The opinion is general that the Government
restrictions and regulations should be lifted
gradually. The sudden withdrawal of such
restrictions would no doubt cause a quick decline in prices; whereas a gradual change will
enable business to adjust itself to new conditions.
Banks are heavy holders of Liberty bonds
and certificates of indebtedness of their own

DECEMBER 1,

1918.

FEDERAL EESERVE BULLETIN.

investment, and collateral to notes of customers
and the sudden withdrawal of restricted credits
under Government regulation would cause a
sudden and heavy demand for loans, with the
accompanying tendency that easy money
would tempt many to venture into hazardous
investments and expand unwisely. This apprehension of sudden changes in values and
prices has surrounded business with an atmosphere of caution.
The plan proposed by the Government in
connection witn the demobilization of the
Army has met with approval, as a too rapid
demobilization would have a rather demoralizing effect on labor and business in general.
Labor conditions are viewed with extreme
uncertainty. Wages paid and rules practiced
with reference to compensation and extra time
during the war have somewhat demoralized
both skilled and unskilled labor for normal
conditions, and if the Army is demobilized
gradually it will tend to restore activity in
lines of industry at wages satisfactory to the
manufacturer with corresponding lessening in
prices of the necessities of life.
With the prevailing uncertainty and high
price of labor and raw materials, manufacturers
are inclined to play a waiting game until the
situation clarifies, and are not stocking up with
manufactured products. Mills are not making
contracts for future deliveries except in very
small quantities, in view of these changing
conditions. The manufacturer is inclined to
believe that he will more severely feel the withdrawal of Government regulations and demands for materials and this will, for a time,
disrupt lumber, cotton, and mineral products
in our section, as these trade organizations
during the war have largely surrendered the
civilian trade for preferential Government
orders and have not had time or opportunity
to determine any set policy. While there is a
general air of optimism, there appears to be
no definite idea as to what the future may
bring.
While collections are reported to be equally
as good as at this time last year, a considerable
portion of these collections is represented in
cotton now being held by merchants, and present prices are forcing the merchants to nold
the product until they can realize investment
represented.
With the contemplated increase in ocean
tonnage during the next six months, operators
are optimistic as to the demands for naval
stores, especially rosin, as such a demand would
come at a time when it would be impossible to




1227

increase the production, as the present crop is
about gathered. There will be no new production until late in the spring of 1919. This
would leave rosin and turpentine in a very
strong position with tendencies for upward
prices.
The brick and building industry have been
seriously handicapped during the war. Brick
stocks are now low, and, with little or no stock
being accumulated before spring, when the
season opens, this indicates higher prices, and
the tendency to hold stocks has tightened.
The lumber trade is inclined to be pessimistic,
at least as to the next 8 or 10 months, largely
on account of the ban placed on shipments of
lumber and the lessening of Government demands, and no great improvement is looked for
until matters adjust themselves to more normal
conditions. The lumber millmen are complaining that shortage and insufficient labor,
poor car facilities, and Government restrictions
are reducing the output. The cost of manufacturing lumber has been exceedingly expensive. The output is about 30 per cent less,
while the cost in conducting the mills shows
an increase of about 25 per cent. Considerable
decrease in orders is reported, and it is believed
that Government requirements will not be in
sufficient volume to keep the mills fully employed.
The mercantile business, while reported fair,
is not verv good, owing to the influenza epidemic, wKicn prevented many traders from
visiting stores, and resulted in a considerable
curtailment of sales. Business, however, is
increasing, and a large holiday trade is anticipated.
There is submitted herewith data showing
the loss of live stock in States in this district,
due to killing on railways' right of way.
Georgia
Florida
Alabama
Mississippi
Louisiana

$300,000
$350,000- 375, 000
150,000- 160,000
275,000- 300,000
300,000

The amount shown represents the value of
the animals killed during 1917. Of course, the
increased prices in meat and leather would now
make the prices much higher. Investigation
shows that the great majority of the animals
killed were immature—that is, young stock—
and within a few months would have been of
greater value, both from a food as well as a financial standpoint. The State councils of defense
have inaugurated campaigns looking to reduction of killing of live stock, appealing to officials
of railroads, employees, and the general public

1228

FEDERAL RESERVE BULLETIN.

to exercise all diligence to obviate this big
waste.
In the Alabama coal fields the influenza
epidemic was disastrous to the coal operators
in October. About 30 coal mines were forced
to shut down. The output for September,
1918, was 1,544,769 tons; for October, 1918,
1,425,219 tons—a loss in October, as compared
with September, of 119,550 tons. More mines
are now in operation and an increased output
is shown. Railroad service is reported improved. It is also claimed that within the
next 10 to 15 days all of the mines in this district will be opening and that conditions will
soon become normal.
The pipe plants (except the soil pipe people)
are practically out of business at the present
time, except for filling munition orders for the
Government. They have no open trade and
can have none so long as the transportation
facilities and Government restrictions are in
force. The soil pipe plants have had a fair
but limited business in filling orders for the
Government.
The pig iron plants report an increased output; orders for the Government are large, and
the demand from foreign Governments is
enormous. The production of pig iron in the
State of Alabama is all that could be desired.
The output in September, 1918, was 207,444
tons, and in October, 1918, 208,470 tons.
The steel mills are kept busy and are making
good showings as to output, with orders enough
to keep them employed, and are not handicapped in making deliveries. The structural
buildings, in course of erection, were somewhat
retarded during the influenza epidemic, but
conditions are becoming normal and good
progress is now being made in all lines of this
industry.
The citrus crop of Florida is reported good
and though only about 70 per cent normal,
shows an increase of about 50 per cent over
last year. Weather conditions have been
favorable and the crop is being marketed about
three weeks earlier than last year. The present crop is estimated at 5,550,000 boxes of
oranges and 2,900,000 boxes of grapefruit.
First grade oranges are now selling at $4 and
$4.50 f. o. b. ? with an occasional sale at higher
prices.
DISTRICT NO. 7—CHICAGO.
Business continues active and crop conditions are unusually favorable, two developments which ordinarily would be regarded as a




DECEMBER 1, 1918.

sufficient incentive for the making of plans on
a broad scale for the coming year. There is,
however, discernible in the business world
a distinct tendency to relax from the high tension of war-time production. So far tnis has
not manifested itself in the volume of business
but rather in the industrial morale. The climax
of the war, so far as the productive forces at
home are concerned, apparently passed with
the signing of the armistice with Germany.
The relaxation of tension in our business and
industrial forces is still manifesting itself in
business sentiment, although it is too early
to note the effect on output. It is to be expected that as the treaty making progresses
the pressure on the war industries will"relax,
but the consensus of opinion among bankers
and captains of industry is that the more gradually this shifting to peace pursuits can be
accomplished, the more orderly will be the
general readjustment. There is a disposition
on the part of all to cooperate with a view of
bringing this about.
GOVERNMENT CONTROL AS A SAFEGUARD.

Bankers especially—and they are supported
by many practical business men in this—are
urging the continuation of governmental control over the raw material supplies and the
exercise of priority shipment regulations during the period of readjustment as a means of
averting any suddden reaction in the business
world. It is the endeavor of all to avoid a
scramble or undue haste on the part of manufacturers who have been engaged on war contracts to return to their prewar business, as
this might result in a far-reaching unsettlement
which might be exceedingly injurious to general
business at this time and seriously affect the
future business situation.
The advices from business men of this district indicate a well-grounded belief that
the same attitude of business in meeting
and solving the war problems must continue
to manifest itself in the post-war period, at
least until the country has been readjusted to a
peace basis. This attitude is stimulating business confidence.
PLANNING CAUTIOUSLY FOR THE FUTURE.

Business men are looking ahead. An indication of this is found in plans being developed
for a resumption of public improvement work
to tide over the readjustment period and avert
unemployment. The activity of a Chicago com-

DECEMBER 1, 1918.

FEDERAL RESERVE BULLETIN.

mission studying labor conditions illustrates
this, as that body has asked the approval of
Washington of a plan calling for the expenditure, as soon as the treasury war financing has
been cared for, of upwards of $500,000,000.
These improvements include the resumption
of the work on Chicago railway terminals; the
Michigan Avenue and Chicago plan program
involving a governmental expenditure for harbor improvement; a $100,000,000 traction extension improvement in addition to the construction of a $40,000,000 transportation subway, and the building of a new gas plant and
otlier municipal betterments. In addition to
these expenditures is one contemplated by the
Illinois Highway Commission aggregating
$60,000,000 i"or hard surfacing of roads in the
State. The bond issue was recently approved
by the voters and now awaits a favorable investment market.
These expenditures of upward of $500,000,000
are expected to cover a period of five years and
necessarily wiil_ depend upon the attitude of
the Treasury Department, as they involve
bond issues. The proceeds from these expenditures, if approved, will, to a very large
extent, be distributed as wages. These improvements were planned prior to the war but
were halted by the pressure of Government
financing and other war requirements.
CANCELLATIONS RELIEVING ABNORMAL
PRESSURE.

At this moment there are few, if any, signs
of an actual let-down in war production. Such
cancellations of war contracts as have taken
place have operated simply to relieve the pressure elsewhere in essential productions and
have served as an equalizing factor rather than
a disturbing one. The banking situation is
sound and the reserve position affords assurance of the ability of the financial machinery
to care for essential business needs.
Necessarily, banking conditions continue to
reflect Government financing. Money rates
are firm at 6 per cent, but the credit situation
appears to be in an unusually liquid condition
and collections are reported good throughout
the district with a general expectation on the
part of business concerns that they will continue so the remainder of the year. The requirements of the Treasury, however, are still
pressing and the absorption of certificates of
indebtedness bv the banks continues.




1229

GRAIN PRODUCTION FORTIFIES THE WEST.

One feature that strengthens the position of
the Middle West is the bountiful crops, together
with the high prices for farm products. Industry in the West generally has not been fully
employed in the manufacture of war material
to the exclusion of other production, owing to
the fact that the East was filled up on war
orders earlier. Some industries were able to
continue their ordinary lines to some degree
while working on Government contracts until
the war requirements exceeded the eastern
capacity, hence the reversion to normal production will involve a less radical change here
than in the East. Furthermore, there has been
only a very restricted amount of new plant
construction for war purposes in this section,
which further strengthens the situation. I t is
generally believed by bankers and others that
after a short period, which will enable business
men to got their bearings under the new conditions, there will develop a very large volume
of general business from sources which have
been unable to buy during the war period.
EFFECT OF GOVERNMENT RELAXATION IS DISCERNIBLE.

The building; industry, which has been exceedingly dull for months, except in instances
of war construction, is beginning to reflect the
effect of the removal of restrictions on buildings
costing SI0,000 or less. Modification of the
food regulations is stimulating business among
the distributors of produce. Elimination of
flour substitutes is finding its reflection in an
increased flour business. The increased allowance of sugar to consumers, it is estimated by
wholesale grocers, will result in at least a 50
per cent increase in the sugar business. The
coffee situation, however, is unsatisfactory
and there is a serious shortage in the available
supply.
The sudden termination of hostilities in
Europe, together with the reversal of the position of the War Industries Board in the matter
of releasing wool for civilian use, has led to
some uncertainty as to probable average prices
for the next year's business, and this has contributed to considerable hesitation in making
commitments, so that practically nothing has
been done for the 1919 supply. "Unseasonably
warm weather also has resulted in the curtailment of business in woolens.

1230

FEDERAL RESERVE BULLETIN.

AGRICULTURAL PROSPECTS ARE EXCELLENT.

Speaking generally, however, the advices
over the seventh Federal Reserve district indicate a promising outlook from an agricultural
point of view. Seed has gone into the ground
under the most favorable circumstances; pasture is excellent, and there is a good crop of
clover and an increased acreage of wheat and
rye in most sections, due to favorable weather
for fall farm work.
Live stock continues to move freely. The
October receipts at Chicago were the largest of
any month during the last 9 or 10 years.
Prices are good, although those for hogs and
sheep have reacted some from the highest level.
Receipts of live stock at Chicago for the four
weeks ended November 19, 1918, compared
with the corresponding period of 1917, as
folio ws:
Cattle.
395,132
353,293

1918
1917

Increase

41,839

Hogs.

Calves.

Sheep.

802,228
546,101

554,538
365,916

16,926 | 256,127

188,622

40,584
47,510
i

1

Decrease.

UNCERTAINTY CONTRIBUTES TO CONSERVATISM.

There is in evidence throughout the district a
manifestation of caution on the part of business
men in making commitments until it can be
determined just what the future holds in store.
This is regarded as a favorable development,
because this conservatism is operating to keep
stocks of merchandise down and credits liquid
and is a check on unnecessary borrowings at
banks.
Clearings in Chicago for the first 18 days of
November were SI,236,332,213, being $21,128,960, or 1.73 per cent greater than for the corresponding 17 days in October. 1917. Clearings
reported by 23 cities in the district outside of
Chicago amounted to S341,784,200 for the first
15 days of November, 1918, as compared with
$314,371,700 for the first 15 days of November,
1917. Deposits in 12 central reserve city member banks in Chicago were 3917,600,000 at the
close of business November 18, 1918, and loans
were $632,100,000. Deposits show an increase
of approximately 820,600,000 over those of
October 17 last, and loans approximately
$10,100,000. Chicago post-office current receipts are running 11 per cent below those of a
year ago.




DECEMBER 1, 1918.

DISTRICT NO. 8—ST. LOUIS.

Since the ending of hostilities on November
11, the attention of business men has been
directed toward restoring their enterprises to
a peace basis. Manufacturers, who have been
engaged mainly on war contracts, are rearranging their plants to take on their former
work or new work. Other producers whose output has been restricted on account of the war
are preparing for increased activity with the
lifting of restrictions.
It is believed that the resumption of normal
demands and the production of commodities
which heretofore have been designated as nonessentials will offset the gradual curtailment of
war contracts. In fact, business men, as a
rule, have no serious misgivings about the
ensuing period of readjustment. They are
moving cautiously, but are looking to the
future in confidence.
The influenza epidemic is on the decline in
this district, and the bans placed on business
to combat it, in most instances, have been
lifted. Department stores, theaters, etc., are
now operating as usual, and schools, churches,
lodges, etc., are again open. This has materially hel'ped the retail trade. It is also being
stimulated by Christmas shopping, which is
being done early this year in response to the
requests of merchants. Reports indicate a
good demand for all kinds of seasonable merchandise. Collections throughout the district
are reported to be good, except in some of the
southern portions of the district where cotton
has been slow in moving.
There has been little change in banking situation in this district since last report. The
deposits in the banks have been well maintained, and there has been a good demand for
money. The bank rate to customers continues
firm at 6 per cent in the larger cities and somewhat higher in the country districts.
There has been some revival in the commercial paper market, though it is still considerably below normal. Brokers report a fair
demand from country banks, but very little
demand from the large city institutions. The
commercial paper rate is still 6 per cent for all
names and maturities.
Agricultural conditions in this district are
favorable. The winter wheat is reported
almost without exception as " the most promising ever seen." The weather since planting
has been ideal for its development, and it is
making bountiful pasturage. Reports indicate

DECEMBER 1,

1018.

FEDERAL RESERVE BULLETIN",

that the acreage planted is considerably in
excess of the acreage last year.
Latest reports indicate that the corn crop in
the seven States included in this district will
yield
1,010,734,000
bushels.
This
is
247,952,000 bushels less than the estimate for
last year, but 37,158,000 bushels more than
the average for the previous five years. In
Illinois and Indiana tne quality of this year's
corn is considerably better than the quality of
the corn in those States last year, but taking
the district as a whole the quality of the corn
is 2.5 per cent below the quality of last year.
In the drouth-stricken districts, the corn is
reported to be chaffy and light, while in other
sections heavy fall rains have caused it to
decay. More corn has been cut for silage
purposes than last year.
Tiie tobacco crop" in Kentucky and. Tennessee
was estimated on November 1 to yield 451,188,000 pounds. This is 57,222,000 pounds less
than the estimate for last year, but 28,855,000
pounds more than the estimate of October 1
and 24,491,000 pounds more than the average
for the previous five years. The quality of
the tobacco in the two States named is estimated to be about 4 per cent below the quality
last year.
The prosperity of the farmer is refloated in
the Government's report for November 1, which
shows that the price index of all crops on that
date was 3.1 per cent higher than a year ago,
and 97.3 per cent higher than the average for
the preceding five years.
The report of the St. Louis National Stock
Yards for October shows substantial increases
in the receipts of hogs and sheep, in comparison
with the corresponding month last year, but
decreases in the receipts of cattle, horses, and
mules. In the shipments of live stock, decreases are shown in all excepting sheep, in
which there was a slight increase over October
of last year. In comparison with September
of this year, the report shows decreases in the
receipts of all kinds of live stock, excepting
hogs, in which there was a decided increase.
Postal receipts during October in St. Louis,
Louisville, Memphis, and Little Rock all show
substantial increases in comparison with the
same month last }^ear. The reports for October
also show increases over September of this year,
excepting that of Memphis, which shows a slight
decrease.
Reports for October from leading cities in
this district show perceptible decreases in the
number of building permits issued and the
estimated cost of construction, in comparison




1231

with the corresponding month last year. In
comparison with September of this year, little
change is noted. Since the signing ot the armistice renewed interest in real estate, building,
etc., has been manifested, and with the lifting
of restrictions, increased activity in this line is
anticipated.
An improvement in the labor situation is
expected with the release of men from the
Army. Many concerns are eagerly awaiting
the return of experienced employees, while
others are desirous of obtaining additional help.
There is a good demand for both skilled and unskilled workmen in this district, and little difficulty is anticipated in furnishing employment
to those who return. Reports indicate that
there are practically no labor disturbances in
this district.
DISTRICT NO. 9—MINNEAPOLIS.

In view of the very critical seed corn situation that existed at the beginning of the 1918
planting season, the very good reports concerning supplies of seed" for 1919 are being
received with especial satisfaction. There is
considerable complaint in the corn-growing
sections of the district regarding the results
from corn grown from seed brought in from
eastern localities and points farther south. In
eastern and southern Wisconsin and in south
central and southern Minnesota considerable
corn from, such seed has shown an unsatisfactory result, again demonstrating the necessity of obtaining seed corn supplies locally in
order to make sure that the crop will develop
properly and mature before frost. Owing to
the very favorable fall weather, there is a very
lame amount of excellent seed corn in western
and northern Wisconsin and through all of
Minnesota and the two Dakotas.
Montana's corn crop, estimated at 2,100,000
bushels has been largely used for silage and fodder, and approximately half of the yield has
been harvested as ear corn. In Wisconsin, Minnesota, and the two Dakotas the production per
acre is considerably better than the average,
and in addition to the high percentage of
matured corn, which has cured in excellent
shape, the quality is very good. Wisconsin
and Minnesota have cut an unusual amount of
corn for silage. The proportion of the Wisconsin crop used for that purpose is being estimated as high as 52 per cent.
Reliable estimates indicate that Montana has
maintained its rank of second among the flaxproducing States of the country, with a production in excess of 3,000,000 bushels this

1232

FEDERAL RESERVE BULLETIN.

year. The quality is better than that of the
last crop. Figures for the two Dakotas are not
available but promise to show better flax production than was anticipated in the early fall.
The embargo on grain shipments to terminals has had a serious effect upon the movement of the wheat crop and held back a large
quantity of good grain which is ready to seek
a market. The terminal situation is gradually
improving, both at Minneapolis and Duluth,
with the promise that within a short time a
largely increased movement will occur. Marketing conditions have had the effect of slowing
down the liquidation process at country points,
yet the financial strength in the agricultural
portions of the district is so great that the discounts at the Federal Reserve Bank, which
reached $97,000,000 at the peak of the load in
October, were reduced within 40 days to less
than $30,000,000. This liquidation was paralleled by a corresponding heavy reduction in
the loans of the larger banks at commercial
centers to the country institutions. A better
movement of wheat will rapidly wipe out the
remaining obligations of the country banks to
their correspondents, and the reserve institution, leaving them with substantially increased
deposits and in a very excellent position to
meet spring demands.
Two factors of very considerable importance
may already be relied upon to further the
planting and harvesting of large crops next
year. Government price fixing as to wheat will
undoubtedly prevent any shrinkage in the 1918
acreage, and the influence of very profitable
returns from, the current crop will undoubtedly
bring about some further increase in spring
planting. The seed outlook is very favorable
and it is unlikely that there will be any shortage
of either fine or coarse grains. The only unsatisfactory item is clover which, when hulled,
showed a light and unsatisfactory yield in the
localities where clover seed is produced.
General rains during the month following the
period of dry weather have been of considerable
assistance in facilitating fall plowing, but
moisture is still an important factor in crop
prospects for next year and heavy winter snows
will be needed throughout practically all of the
grain-growing sections of the district if the
ground is to be in proper shape for spring
planting.
The last six or seven months show considerable deficiency as compared with the average
rainfall, and the fall rains that have so far
occurred have not been sufficient to create
normal subsoil conditions.




DECEMBER 1,

1918-

The approach of the reconstruction period
has created a general discussion of after-thewar 'conditions,. New labor problems will undoubtedly be created, and there is much conjecture as to the course that will be pursued by
the Government in reference to encouraging a
return to pre-war activities, particularly the field
of public improvements and building trades.
Throughout the district there are large numbers of public; enterprises, involving "a great
amount of city and county work, which has
been deferred until a more favorable time.
Building has been practically at a standstill
both in the larger centers and in the country.
These two elements may be depended upon to
afford considerable opportunity for employment both for returned soldiers and for employees who are likely to be released from active
service on account of changes in the industrial
field.
Banking and business conditions remain
much the same as during the previous month,
with a favorable outlook for the early fall and
winter.
DISTRICT NO. 10—KANSAS CITY.

The high tido of business in the tenth Federal
Reserve district shows a continued upward
sweep, in spite of slight and temporary checks
which may be attributed to special factors,
such as tho influenza epidemic, elections, the
financing of the fourth Liberty loan, and the
cessation of hostilities. As a whole, the situation is viewed with optimism and upon the
broad assumption that America's task of equipping and provisioning a large part of the world
has only begun.
Financial.—Demand for loans remains strong
and rates firm. Government financing is, and
will continue to be throughout the coming year
or longer, a strong factor. It is of the utmost
importance that bankers do not overlook this
fact. The demobilization of the Army will
take both time and money. This country will
be called upon to share to some extent with the
allies in enforcing final peace terms. The shipbuilding program is to be continued. The
Government has enormous outstanding war
obligations with various industries which must
be carried through or adjusted with due consideration.
The transition from a war to a peace basis.
will be gradual and the conservation of credit,
as well as continued thrift on tho part of the
people, are vitally essential, not only to this
Nation but to the reconstruction of the devastated countries in Europe.

DECEMBER 1, 1918.

FEDEEAL RESERVE BULLETIN.

Bank clearings reported by the 15 clearing
house cities in the district show October transactions amounting to $1,631,517,258, as compared with a totakxf $1,397,108,541 for October
of last year, and for the 10 months' period of
1918 the total clearings were 814,165,498,000,
as compared, with 810,166,133,000 for the corresponding 10 months in 1917.
Agriculture.—Abundant moisture and favorable temperatures have made ideal conditions for fall farming operations. Wheat was
never in better condition for winter, and it is
believed a summary would show 100 per cent,
or normal, as an average for the district. The
fine start is a big factor on the side of a successful harvest next summer, though rigors of
winter and other harmful influences are yet to
be reckoned with. Many farmers are grazing
down early planted wheat and putting weight
on cattle. There is apparently no fear that the
end of the war will lessen the demand for breadstuffs, and there is an increased acreage of
winter wheat estimated at 17 per cent for the
district.
Restrictions imposed by the Grain Control
Committee are limiting the movement to market requirements. Receipts of wheat are 40
per cent less than before the embargo was established, but 25 per cent larger than a year ago.
Receipts of corn are 45 per cent heavier and
oats about 60 per cent lighter than at this time
last year.
Domestic flour trade shows little life and
sales to the Government by millers of this
district unimportant, causing a slowing down
of milling operations to below 70 per cent of
capacity, with an output slightly below that of
last year at this time.
Live stock.—Meat animals to the number of
2,991,574 came to the six markets of this district in October. Of these 991,435 were cattle,
730,674 were hogs, and 1,269,465 were sheep.
Compared with October, 1917, there was an
increase of 3,778 cattle and 230,669 hogs and a
decrease of 102,334 sheep.
Prime fed and weighty steers are scarce and
prices range from $3.25 to §4.50 higher than a
year ago. Other classes fluctuate in price but
are generally higher than at this time last year.
A feature of the markets has been the heavy
purchases of cattle for feeders.
A move to stabilize the hog market was the
fixing of a minimum November price of $17.50
per 100 pounds, Chicago basis* for packers7
droves, based on agreed prices for pork products
under Government contracts for meat. The
plan imposes an obligation of participating




1233

packers to buy no hogs at less than the minimum price, the Food Administration furnishing
an outlet for the products and farmers cooperating to maintain a steady run of hogs at the
markets.
Packers increased slaughtering in October by
purchasing 7 per cent more cattle, 42 per cent
more hogs, and 45 per cent more sheep than they
purchased in October, 1917.
Petroleum.—With withdrawals from storage
of 2,250,000 barrels a month, production in
Kansas and Oklahoma falling off, and no prospect of making good the increasing deficit,
there is little hope of increasing petroleum production during the coming year to 100 per cent
efficiency. The end of the war is welcomed,
but with reconstruction work and an enlarged
shipping program, there is no assurance of any
less demand for petroleum products.
Daily average production of oil this month
for Kansas and Oklahoma is about 16 per cent
below the record for corresponding weeks last
year. Wyoming fields are producing much
more than in 1917, but the increase there is not
sufficient to offset the slump in other fields.
Field operations indicate a total of 1,106
completed wells and 42,813 barrels initial daily
production in October. With the exception of
a big well here and there the completions have
been what formerly were regarded as inconsequential. However, there is no let-up in the
search for oil, as the number of drilling wells
indicates. The oil men are completing all the
wells the labor and material situation will permit. A stage of development has been reached
where neglected "in-between" spots are being
prospected and deeper sands are sought in old
and well-settled districts.
Mining.—The immediate future of gold and
silver mining is not encouraging. With a
2,000-man shortage, and loss due to influenza,
it does not seem possible to operate the mines
this winter at much above 60 per cent normal
production.
Shipments of zinc blend ores in October were
30,370 tons, at an average of §54.70 per ton.
Calamite ore shipments were 1,921 tons, averaging $38.62 per ton. Lead ores shipped during
the month were 5,467 tons, averaging $100 per
ton. Stocks on hand November 1 were 19,650
tons of zinc ores as against 32,925 tons on the
same date last year; while stocks of lead ores
November 1 were 450 tons as against 7,485
tons November 1, last. Practically the entire
lead ore output is purchased weekly, rains
which prevented loading being the only reason
for any surplus stocks.

1234

FEDERAL EESEBVE BULLETIN.

A feature of the month was the fixing of a
ratio between prices of prime western spelter
and the price to be paid for Joplin second-grade
ores. The new buying schedule was considered an equitable division of profit and loss
between smelter and miner. Following the
taking effect of the new schedule, however, the
zinc ore industry was thrown into confusion by
the smelters reducing purchases approximately
4,000 tons for the week ending November 16,
causing an accumulation of 18,000 tons of zinc
concentrates. Producers decided at once to
curtail production by shutting down operations until the surplus is absorbed.
With many handicaps, little progress toward increasing production of coal is reported.
'^.Construction.—Building operations continue
inactive, "put the prospect of an early release of
labor and materials by the slowing down of
Government work and the return of the soldiers
from Europe offers encouragement for a resumption of activities in all lines of construction.
While lumber manufacturers are hopeful of
enlarging production, retail dealers are anticipating a rapid improvement in their trade on
account of the demands for materials for long
neglected farm improvements and housing improvements in cities. Eelease of steel and
cement is also expected to cause a resumption
of municipal construction and highway building
although the impression prevails that this class
of work will be slow returning to normal because of the necessity of carrying out the ship
and harbor program which is limitingSthe supply of these materials for other than Government work. Building permits in the cities of
this district in October were confined to repairs and bare necessities involving little money
and offering no comparison with former records.
Labor.—Added to the labor shortage October
and the first half of November saw serious
complications resulting from a general epidemic
of Spanish influenza among all classes of workers throughout the district. No branch of
industry escaped. The mines were especially
disorganized, many men being incapacitated
from one to two weeks. In many cases it was
difficult to maintain operations. Factories and
large industrial plants were affected in the
same waj^ and in the same proportion. Men,
on returning to their work proved unequal to
their former tasks.
There has been no appreciable improvement
in the labor shortage, although the situation is
no more acute during November, due to the rescinding of orders calling draftees during the




DECEMBER 1,

1918.

epidemic, followed by a virtual abandonment
of the draft with the cessation of hostilities.
Labor bureaus report applications for men far
in excess of the number of men registering and
but a small per cent of places filled.
Mercantile.—Business continues very active
except in building materials and tools. In
other lines a promising increase continued
through October and November to date, with
an upward trend. Especially marked is the
increase in textiles and furnishing goods.
Dealers say that men subject to draft, not
knowing with certainty the day they would be
called, had postponed the purchase of clothing,
but cooler weather resulted in last-minute purchases of wearing apparel regardless of when,
if at all, they might" be called. A stimulating
influence to "trade in women's wear, household
supplies, and holiday goods has resulted from
increased earnings of women, large numbers
having taken the places of men now in the
service and becoming wage earners for the first
time. Increased earnings of heads of families
also have contributed to the volume of this trade.
Precautionary health measures, due to the epidemic, cut down sales to some extent, but only
temporarily postponed the buying. Drugs
were veiy active. The grocery trade continues
heavy, especially in those things which can be
put away for winter use.
DISTRICT NO. 11—DALLAS.

The successful termination of the war has
created optimism everywhere, but at the same
time the close of hostilities brings us face to
face with a period of readjustment and presents
for solution problems which, at the present,
will be almost as difficult as when the district
changed from peace to a war basis early in 1917.
More seasonable fall weather and fine rains
over practically every section of the district has
greatly improved the business outlook since our
October letter. In the larger cities, especially,
conditions are much improved. Retail trade
after a rather dull period in October, is again
normal. Manufacturing is active; collections
are slow.
Wholesalers of dry goods report very little
buying among the country trade at the present
time on account of warm weather in October
and the dull business occasioned by the influenza epidemic. Wholesalers and jobbers also
advise that the sudden termination of the war,
and the many adjustments in their line which
will be necessary as the result, has caused a
condition of uncertainty and unsettlernent, and

DECEMBER 1,

1918.

FEDEEAL RESERVE BULLETIN.

they are "marking time' ; pending developments. They have large stocks of high-priced
goods on hand, and until market conditions become more settled and some definite basis can.
be formed as to future prices, buying will necessarily be curtailed and restricted to actual requirements. Some have already canceled orders for future delivery. The buying season
for spring and fall of 1919 will soon be here, but
on account of the conditions mentioned above
there is little activity. Large mail-order
houses report a temporary lull in business and
attribute it to the expectation of greatly reduced prices of merchandise.
The wholesale grocery trade has been ver\r
active in the past few weeks. This activity,
however, is attributable mainly to delivery of
stocks purchased in the spring and summer.
Tliere is a very strong tendency on the part of
the retailer to withhold purchases and to buy
in limited quantities, in anticipation of a drop
in prices with the end of the war. Wholesalers
are encouraging this practice in an effort to
prevent hoarding, but report that there is probably little basis for expecting any material
decline in grocery prices in the near future, as
with the extraordinary demand for food which
it now develops will be greatly increased for the
devastated European countries, it is not
thought there will be any substantial decline,
but rather an increase. Collections in the
trade are reported as unusually good.
Very heavy and general rains averaging from
2 to 6 inches in many localities have fallen
within the pa*t 30 days, with lighter rains
earlier in the fall, have as a rule insured excellent range conditions in the West and give
promise of a good wheat crop in the Northwest
where a very heavy acreage has been planted,
and. agricultural and live stock conditions are
much improved as the result.
The fall crop of sweet potatoes, peanuts, and
similar commodities is also being marketed at
this time. Our correspondents report that
there will be an unusually heavy increase in
the acreage planted in wheat, and that the
crop looks especially fine at this time. The
new crop of ribbon cane sirup is now being
marketed at the highest prices known. The
crop is large and the grade excellent. Outside
of the active preparation for next season's
crops and marketing of commodities produced
this year, farming conditions remain the same
as previously reported. At the present time
the crop prospects are excellent, but it should
be borne in mind that future weather conditions will determine the yields.




1235

Since the war is over there is a cheerful
feeling in the building trade, with both manufacturers of materials and construction firms.
It is expected that operations will rapidly be
restored to normal with the lifting of Government restrictions on ordinary construction
work. Building projects which have been
held up during "the war will, to a large extent,
be released under the recent orders of the
Council of Defense which eliminate priority
permits for structures costing up to $10,000,
and require State authority only on contracts
from $10,000 to $25,000. Space is in great
demand for both dwellings and commercial
purposes and the building trade reports that
indications point to an immediate renewal of
operations, the extent of which will be dependent on the ready supply of material and
labor. Pending the restoration of various
plants to peace-time industry the reserve stock
of building materials will prove no more than
adequate to the increasing demand. Manufacturers of lumber are slow to predict what the
immediate future holds for them. The immediate effect is that a large part of Government
orders are being canceled and held up, and, as
one manufacturer reports, "the mills are entirely up in the air as to what the results will
be."" The stock of lumber on hand at mills is
low and badly broken, and with the present
labor shortage and other factors there is no
immediate prospect for early replenishing.
The cancellation of building restrictions will
have the effect of creating a sufficient demand
to use such lumber as may be available for
several months to come, or until such time as
our allies and the European countries come
into the market for the enormous amount of
lumber they will unquestionably need in the
reconstruction period to come.
The banking situation is fully as active as
30 days ago. There continues an unprecedented demand for funds. Interest rates are
firm, and range between 6 and 8 per cent for
customer's paper. The rediscount operations of
this bank show a decrease of some $13,000,000
between October 15 and November 15. This
decrease is in member banks' collateral notes.
During the same period member banks, rediscounts increased $1,700,000. There is practically no change in the amount of member banks'
reserves. Some liquidation has taken place
within the past 30 days, but the seasonable
period of payments has not yet developed and
will not, unless there is a more rapid movement
of cotton. Banks in the interior are greatly
extended by reason of heavy advances on cot-

1236

FEDERAL EESERVE BULLETIN.

DECEMBER 1, 1918.

ton purchased on a high market, and with ditions in the near future of business in general,
ractically no movement these institutions are yet it seems reasonable to expect that the shift
nding it very difficult to maintain the required from war activities to those of peace will occareserves and balances with correspondents. On sion less disturbance in this district than in
account of the uncertainty of the market and others, because its products are such that an
the inevitable loss which would be sustained uninterrupted demand for them will continue.
by cotton buyers, there seems to be no relief
Interest rates in the industrial and agriculin sight. Now that the war is over it is hoped tural centers remain firm at 6 and 7 per cent,
that shipping facilities will be provided and the respectively.
cotton situation eased up considerably. At
Bank clearings for 18 principal cities of the
present the outlook is not very encouraging.
district in October amounted to"$1,316,659,000,
With the fine rains in the west and south- an increase of $260, 673,000, or 24.7 per cent,
western sections of the district, and the excel- over the same month in 1917, and $242,874,000;
lent crop prospects, member banks in those or 22.6 per cent, over September, 1918. From
communities are having an unusual demand for October 3 to October 30 total checks paid by
funds from their farmer customers for feed, clearing house banks in 17 principal cities of the
seed for crop preparations, and funds for cattle district amounted to 12,494,858,000, of which
purchases. These banks will unquestionably $1,472,483,000 were debits to accounts of indifind it necessary to seek outside assistance until viduals, firms, or corporations, and $1,022,375,000 were debits to accounts of banks and
their communities are again self-sustaining.
Clearings at Austin, Dallas, Fort Worth, Gal- bankers.
veston, and Houston, the only cities reporting,
Building permits for the 18 principal cities
show an increase of 1.3 per cent over the same totaled $3,114,000. Compared with October,
month of 1917.
1917, this was a decrease of $1,217,000, or 28.1
The final subscriptions to the fourth Liberty per cent. As compared with September, 1918,
loan were over $145,000,000, of which $66,- however, the decrease was $1,982,000, or 38.8
per cent, Tacoma alone among the reserve
500,000 was paid in full.
Exports from the Galveston district in Sep- cities showing an increase of 10 per cent.
tember aggregate $26,410,000, an increase of
During the first 9 months of 1918 there were
40.7 per cent over the same month of 1917, 828 commercial failures, with liabilities of
when the value of such exports was $18,765,000. $9,906,607, in California, Oregon, and WashPost-office receipts at the principal cities of ington, a decrease of 37 per cent in liabilities
the district show an increase of 21.8 per cent when compared with the same period in 1917,
which showed 1,223 failures, with $15,714,808
over the same month of 1917.
liabilities. The decrease from the 1916 period,
DISTRICT NO. 12—SAN FRANCISCO.
with 1,378 failures and $12,213,917 liabilities,
There has been full employment for labor, and was 19 per cent. For the United States there
industrial production to meet Government de- was a decrease of 12.5 per cent in liabilities
mands has continued its activity. Agricul- from the figures of 1917 and 20 per cent from
tural pursuits have followed a regular and sat- those of 1916.
isfactory course. The late crops—rice, potaThe 1918 sugar crop of Hawaii totaled
toes, and beans—were harvested without seri- 561,000 tons, as compared with 636,000 tons
ous loss. The seeding of winter wheat, with in 1917. The last 5,000 tons of the season
enlarged acreage, is unusually well advanced, were manufactured in November. Practically
on account of early rains in September, par- all of the output has already been shipped to
ticularly in the Pacific Northwest. Delay in continental United States, more than 100,000
moving commandeered stocks has prolonged tons being shipped in August. The grinding
warehouse congestion and retarded liquida- season for the 1919 crop, estimated at 600,000
tion. Mercantile collections in general have tons, has commenced.
been good. The epidemic of influenza, subGovernment estimates of the sugar-beet crop
siding in San Francisco under compulsory in the various States of the district are as
wearing of gauze masks from a maximum of follows:
2,304 new cases on October 25 to 75 on November 13, has interfered with distribution in the
December, Condition Condition
State.
Oct. 1.
1917.
(Oct. 1).
(Nov. 1).
retail trade and wholesale stocks are reported
Tons.
as increasing. While the termination of the
Tons.
1,1(32,000
1,331,000
90
86
war greatly changes the aspect of trade and California
1,094,000
762,000
94
101
Utah
347.000
312,000
91
Idaho
90
industrv, and injects uncertainty as to the con-

E




DECEMBER 1, 1918.

FEDEEAL RESERVE BULLETIN".

Washington will probably produce 60,000
tons this year, the present condition of the crop
being estimated at only 62. Prices for beets
having a 15 per cent sugar content have ranged
from $10 per ton in Utah end Idaho to $8.50
and $9.25 in California.
According to forecasts the California orange
crop for the year 1918-19 will total 14,322,000
boxes, distributed by districts as follows:
Northern California, 138,600; central California, 1,339,800; and southern California, 12,843,600. The 1917-18 crop was only 7,093,270
boxes, while that of 1916-17 reached 19,374,873
boxes. The condition of the crop on November
1 was 71, compared with 50 for 1917 and 85 on
a 10-year average. The fruit is running to
large sizes. Valencias of the season just ended
sold as high as $12 and $14 per box. Navels
of the new crop ready for shipment before
January 1 are expected to sell from $7 to $9 per
box, f. o. b.
The lemon crop improved from a condition
estimated at 86 on October 1 to 88 on November 1, the 10-year average being 86. The new
crop/ according to a resume of estimates, may
reach 4,000,000 boxes, almost a million in
excess of the bumper crop of two years ago.
The potato crop of the district this year is 20 per
cent less than last year. For the United States
there is also a decrease of 11.8 per cent, the
total production of the Nation being 389,912,000
bushels as against 442,536,000 in 1917. The
following are the district totals by States:
1918

1917

California...
Yv'asliington.
Oregon
Idalio
Utah
Nevada
Arizona

Bushels.
12,555,000
8,580,000
5,500,000
5,180,000
3,000,000
1,753,000
425,000

15,225,000
9,875,000
8,100,000
6,084,000
4,347,000
3,105,000
425,000

Total.

37,593,000

47,161,000

In California, Idaho, and Washington only
80, 70, and 66 per cent, respectively, of the
crops are grown for the market, the remainder
being consumed on the producers7 farms.
Between 30,000 and 40,000 bushels of certified
seed potatoes have been raised in the Willamette Valley, Oreg., this year for shipment to
California. The sweet-potato crop in California is estimated at 1,020,000 bushels, an
increase of 18,000 bushels over last year.
California raisin and bean crops have suffered from unfavorable weather conditions




1237

during September and October. November
reports place the season's total of raisins at
135,000 tons, with an average yield of 1,800
pounds per acre. The crop in 1917 was 163,000
tons.
The bean crop has suffered more in quality
than in quantity. The November estimate
forecasts a total of 6,258,000 bushels of beans
toiler than limas. The October estimate
of limas was 2,610,000 bushels, which brings
the total production up to 8,868,000 bushels, as compared with 8,091,000 bushels in
19i7.
In the Salt River Valley, Ariz., the long
staple cotton crop grown this year on 75,000
acres is estimated at approximately 35,000
bales. The condition in September was 96,
but later reports place it at 93. Last year the
production on 30,000 acres was 15,000 bales.
In the Imperial Valley the crop will total
70,000 bales, produced as follows: Short staple
and Durango from 80,000 acres in Mexico and
60,000 in California, and Egyptian (Pima) from
3,000 acres in California. The Mexican crop
is marketed in Calexico, Cal.
The salmon pack on the Pacific coast of the
United States for the season has been estimated at 8,300,000 cases, classified as follows:
Pink, 3,000,000; Alaska red and sockeye,
2,600,000; chum, 1,500,000; king, 700,000;
medium red or Coho, 500,000. British Columbia will probably produce 1,000,000 cases,
bringing the total up to 9,300,000 cases, as
compared with 10,124,894 in 1917. The Government has commandeered 60 per cent of the
chum, 65 per cent of the pink, 80 per cent of the
Alaska red, and 100 per cent of the sockeye
varieties.
The total production of crude petroluem in
California during September was 8,274,710
barrels, a decrease of 438,150 barrels as compared with August. From September 1 to
October 1 stored stocks increased 70,929
barrels.
During the four-week period ending November 2, an average of 122 lumber mills in the
Pacific Northwest reported a total production
of 284,389,447 feet, which was 24,157,553 feet,
or 7.83 per cent below normal. The first
week's production was 3.85 per cent below
normal, the second 4.01, the third 10.01, and
the fourth 13.08. The general situation reported last month has not improved, and the
congestion due to accumulating side-cut lumber has not been relieved.

1238

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

GOLD SETTLEMENT FUND.
The following review and accompanying
tables cover the two months' period from September 20 to November 21, 1918. Hereafter
data concerning the operations of the gold
settlement fund will be ^published quarterly.
Due to large payments at interior centers on
account of the heavy crop movements at this
season of the year and the large fiscal operations
of the Government involving large movements
of funds from New York to the interior and
concentration largely at New York City of
funds received in payment for subscriptions to
the fourth Liberty loan, the average weekly
volume of transactions through the gold settlement fund for the period under review have
been the largest of any similar period since the
inception of the fund. Combined clearings
and transfers for the nine-week period aggregated $10,256,341,000, averaging $1,139,593,000 per week against a like average of $928,448,250 for the preceding four-week period.
The movement of funds to interior centers
in connection with crop payments is reflected
clearly by the large net credit balances in the
daily settlements shown by the reserve banks
located in the leading agricultural sections.
The Chicago, Minneapolis, and Kansas City
Reserve Banks show particularly favorable
balances
Heavy demands on the banks in the New
York reserve district are reflected by the net
debit of $360,766,000 in the daily settlements
of the New York Federal Reserve Bank. On
the other hand, the net movement of funds to
the New York bank through transfers from
other Federal Reserve Banks, principally
transfers of Government funds for the credit of
the United States Treasurer, amounts to
$348,348,000, resulting in a net movement of
funds away from New York through transfers
and settlements of only $12,418,000.
Changes in the ownership of gold in the
banks' fund through transfers and settlements
during the nine-week period amounted to 1.38
per cent of the total obligations settled, as
against 2.45 per cent for the preceding fourweek period. Net changes in the ownership
of gold since the commencement of the operation of the fund on May 20, 1915, to November
21, 1918, amount to 0.88 per cent of the total




obligations settled during that period. The
largest gain in gold through transfers and settlements, $90,514,000, was reported by the
Federal Reserve Bank of Chicago, while
Philadelphia reported the largest decrease,
$72,780,000. <
Net deposits of gold in the banks' fund
amounted to $19,757,000, while net withdrawals of gold by Federal Reserve agents
aggregated $21,000,000, representing principally payments to the Treasurer for credit in
the gold redemption fund against Federal Reserve notes. The resulting net loss of gold in
the combined funds was 11,243,000. On
November 21 the total standing to the credit
of both the Federal Reserve Banks and agents
was $1,311,917,000, of which the banks' settlement fund constituted $442,362,000 and the
agents' fund $869,555,000, as against $465,787,000 and $847,373,000 before settlement on
September 20.
Below are given figures showing the operations of the fund between September 20 and
November 21, 1918, both inclusive:
Amounts of clearings and transfers through the gold settlement fund by Federal Reserve Banks from Sept. 20, 1918,
to Nov. 21, 1918, both inclusive.
[In thousands of dollars.]
Total clear- Balances
ings.
adjusted.
Settlements of—
Sept. 20-26
Sept. 27-Oct. 3..
Oct. 4-10
Oct. 11-17
Oct. 18-24
Oct. 25-31
Nov. 1-7
Nov. 8-14
Nov. 15-21
Total
Previously reported for 1918..
Total since Jan. 1,1918..
Total for 1917

Transfers.

953,752
1,028,560
1,049,820
994,260
1,208,208
1,26,3,293
1,011,226
955,719
1,100,780

53,310
27,891
49,230
55,665
41,041
110,241
64,037
54,940
119,880

28,00046,404
50,960
23,000
56,588
73,667
92,30a
93,743
226,058

9,565,618
29,880,258

576,235
2,319,468

690,723
3,149,992

39,446,876
24,319,200

2,895,703
2,154,721

3,840,715
2,835,504

CLEARINGS AND TRANSFERS.
Total
Total
Total
Total

for
for
for
for

1918 to date
1917
1916
1915

43,286,591
27,154! 704
5,533,960.
l, 052,649

Total clearings and transfers from May 20, 1915, to
Nov. 21, 1918
".
77.027,910-

1289

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

Changes in ownership of gold.
[In thousands of dollars.}
From Sept. 20,1918, to Nov. 21,1918, both
inclusive.

Total to Sept. 20.1918.

Federal Reserve Bank,
Decrease.

Boston
New York
Philadelphia .
Cleveland
HifihTrmnri .
Atlanta
Chicago
St. Louis
Mirmpfl polls
Kansas City
Dallas
San Francisco

667,053

^.

Total

. . .

667,053

Increase.

Balance to
credit Serat.
Balance
19,1918,
plus net
Nov. 21,
deposits of
1918.
gold since
that date.

Decrease.

100,645
140,489
23,155
40,067
76.950
49,043
8,712
50,182
30.338
90,965

62,350
39,000
105,508
58,299
10,811
7,916
75,080
28,717
111.027
35,050
6,444
23,614

34.694
26', 582
32,728
45,579
13,953
6,425
166,194
33,356
16,644
24,429
2,246
39,532

27,656
12,418
72,780
12,720

667,053

442,362

442,362

Increase.

141,884

50,507

1,491

10,621
4,198

Total changes from May
20, 1915, to Nov. 21,
1918.

Decrease.

Increase.

22,851

679,471

27,865
133,769
26,207
38.576
167; 464
53,682
36,383
39,561
26,140
1C8,883

3,142
90, 5U
4,639
27,671

.

15,918
141,884

679,471

679,471

i Debit balance.

Gold settlement fund—Summary of transactions from Sept. 20,1918, to Nov.1,1918, both inclusive.
[In thousands cf dollars.]
Aggregate Aggregate
Transfers,
withdeposits
Balance
drawals
and
last state* Gold
Gold
Federal Reserve
withand
transfers
ment,
Bank of—
from
Sept. 19, drawals. deposits. transfers
to agents' agents' Debits. Credits.
1918.
fund.
fund.
Boston
New York
Philadelphia......
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

67,683
42.716
71;539
53,355
25,117
11.640
80; 089
21,118
20.823
23i748
7; 622
40,339

150
10,000
17,275
9,020
6,085
37G
3,601
3,999

Total

485,787

40,310

2,500
1,710

4,817
6,284
7,398
3.964
7,779
2.046
If, 560
1,600
1,150
4.802
l',532
7,135

10,160
10,000
17:875
27,020
22,085
13,770
75,S81
7.999
33; 000
3:500
2,710
25,000

60,067

249,090

48,000
40,000
98,933
97,904
16,000
45.401
92'. 570
8; 960
39,022
101,500
63,433
39,000

65,333
388,348
46.235
14,' 459
10,078
39.670
85; 283

225,665 | 690,723

690,723

4,817
6)284
51,844
31.964
7:779
10; 046
71', 572
15.600
I', 150
14,802
1.532
8,275

7,532
285
24.500
9; 000

Daily settlements, Sept. 20,1918, to Nov.
21,1918, both inclusive.
Net
debits.

Total
debits.

Total
credits.

Balance
in fund
at close of
business
Nov. 21,
1818.

Net
credits.

863,225
38,792
83,781
818.236
360,706 3,249,341 2,888)575
38.500 1,065,131 1.045,049 """ii," 41.8"
806,302 '877,027
12', 085
82,810
518,293
18,950
527,357
28.014
316,539
16,881
320.779
21)121
56 1.082,626 1,180)427
97,857
19,630 '586,326
599,925
33,229
277.333
163 511
336,494
75,672
375'3 446
3f760
406,040
94,354
189,847
224,582
3-i 735
235,209
281,127
51,233
5,315
576,235 j 9,565,618 9,565,018
i

576,235

34,694
26,582
32,728
45,579
13.953
8)425
166,194
33:356
16)644
24,429
2,246
39)532
442,362

Federal Reserve agents' fund—Summary of transactions from Sept. 20, 1918, to Nov. 21, 1918, both inclusive.
[In thousands oi" dollars.!

Federal Reserve agent at—

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




Balance
last
statement
Sept. 19,
1918.
46,000
110,000

Gold withdrawals.

847,373 j

WithDeposits
drawals for through Total withtransfers
drawals.
transfers
to bank. from bank.

2,000
2.000
4,000
2,500
1,000
500
2,000 .
21,000 j

44.446
28)000

8,000
60,012
14,000
10,000 I

165,598 i

Total
deposits.

Balance at
close of
business,
Nov. 21,
1918.

4,000

10,000

15,000
18,000
16,000
13,400
72,380
4,000
33,000
1,000
1,000 j
25)000 !

47.446
28.000
2)000
10.000
64:01.2
14)000
2,500
11,000
500
3,140

15,000
18,000
16,000
13,400
72,380
4,000
33,000
1,000
1,000
25.000

52,000
110,000
66,963
100,000
58,000
36)170
198,386
43,631
41.800
45,360
10,684
106,561

208,780 i

ISO, 598

208,780

809.555

10,000

4,000
3,000

110,000
44.000
32', 770
3.90)018
53,031
11.300
55,360
10,184
84,701 i

Gold
deposits.

1240

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, OCT. 16 TO NOV. 15, 1918.
Items drawn on
i Items drawn on banks in district
banks in Federal outside Federal
Reserve city
Reserve city
(daily average). (daily average).
Num- Amount.




Amount.

Items handled
Items drawn on b y both parent Items drawn on
ber
banJrs in other
Treasurer of
ber
bank and
ol
United States
of
non
(daily average). memaverage).
member
ber
banks banks
in
on
Num- Amount. Num- Amount. NumNumdisber.
ber. Amount. ber. Amount. trict.
ber.

12,681.!§23, 361,974 69,093 810,
,478,198 81,774 S33,840,172 8,421811,743,655
.
L41,590|170,077,803 32; " ' " 16,099,956!
il4,585 9G, 579,291127^ 005 73,498,512141.
'~
' 156,676 49,563; 33,801,742 16>,999 11,988,556;
"'
17,432 28, 645,066 32,131 5,1
-"
3
5,077 6, 753,068 51,278 24,"232,512 56,355j 30,985,
2,914 4,443,925:
096,422 40,945 15, 662,178 43,058 22,758, 600 6,118 7,722,0521
j 2,113 7,0
! 2,541 2,7
752,637 20,700 7, 404,595 23,241 10", 157j 232 2.298 4,240,048!
'13,421 27,"711,000 52,924 12, 834,000 66,345 40,545,000 5', 475 1,266,000
685,658 32,999 16,258,206 1,014 1,245,904
572,548 28,264
i 4,735
369,194 22,521 13,711,313
342,119 19,507
! 3,014
974 1,980,794
3,890
151,106 53,914 15, 531,712 57,804 26,682,818 5,211 6,505,071
522,513 25,126 9,918,898 2,493 1,982,590
1,189
396,385 23,937 7,5
727,350 32,542 11,380,201 634
806,717
1,756
652,851 30,786 7,7

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals:
Oct. 16 to Nov.
1918
Sept. 16 to Oct.
1918
Aug. 16 to Sept.
1918
Oct. 16 to Nov.
1917

Number.

Total items
drawn on banks
in own Federal
Reserve district
daily average).

15,458
2,184 S3,305,
215 887,121
3,174 1,925,745
369 315,000
764 597,666
2,443 2,279,848
874
189,456
2,175 1,855,781

7,690 84,
421! 244
42,586 21,158,903
7171 331
9,530 " 315,070
629! 328
806: 688
3,689
041,958
5601 349
1,888 567,353
418; 317
3,661
619,528
10,409 669,000 1,321! 2,274
6,429 559,690
513 i 1,041
838
259,172
856 1,101
5,422 780,569
993 2,217
2,714 521,103
720 251
3,312 008,999
1,078

15,
l,
1,117,565 84,796
82,434 231.,014,467 550. 484189,103,098 632,918 420:
15.
.'. 64,931 208,639,006 49i ,44l|l69,025.374J560,372 377,
77,664,380 89,455
1,639.
15,
r
,
55,123182,321,867 441, 979|145,374,804;497.102 327. 698,671180,55/}
15,
!,723j 64,290,210:280,297 230i, 848,983145,393
47,574166,552,773 232,
;

70,025,26612, 19S 11.,356,075 98,168 52,790,232 8,58410,219
,
70,992,91913,03311,127,973106,539 51,048,149 8,51010,318
62,764,960:11,053 6,866,305 87, 213 45,695,643 8,42810,549
53,089,827!

30, 42617,496,974 7,826 9,210

DECEMBER 1, 1918.

1241

FEDEKAL RESERVE BULLETIN.

DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS,
During the month of October discount operations of the Federal Reserve Banks reached
a grand total of $5,903,982,877, compared with
$4,685,139,187 the month before, S3,002,889,591
for the month of May, marking the close of the
third Liberty loanj and $3,206,486,871 for
November, 1917, when the second Liberty loan
was brought to a close. Of the total bills discounted during the month under review the
share of war paper, i. e., member banks'notes and
customers' paper secured by United States war
obligations, was nearly 90 per cent, compared
with over 87 per cent the month before and about
85 per cent in May of the present year. About
63 per cent of the total discounts for the month
and 66 per cent of the war paper discounted during the month are shown for the New York
bank, Chicago following with over 9 per cent of
the month's total discounts and over 8 per cent
of the war paper discounted during the month.
Discounts of member banks' notes secured
by eligible paper totaled $53,202,467, compared with $35,178,979 the month before,
Boston, Minneapolis, and Kansas City reporting considerable increases in the discounts of
this class of paper. Trade acceptances discounted during the month aggregated $24,135,683, compared with $21,202,288 during
September. Of the larger total, $19,516,886,
as against $13,337,303 in September, represented transactions in the domestic trade, and
$4,618,797, as against $7,865,585 in September, transactions in the foreign trade. New
York reports about one-third of all the discounted trade acceptances and 87 per cent of
the discounted foreign trade acceptances. Discounts of domestic trade acceptances are more
evenly distributed, eight banks reporting over
one million each of these transactions. The
above totals are exclusive of $4,762,619 of foreign trade acceptances and $2,616,489 of domestic trade acceptances bought during the
month in the open market largely, by the is ew
York, Cleveland, and San Francisco banks.
Over 94 per cent of the paper discounted during the month was 15-day paper, i. e., maturing
within 15 days from date of discount with the
Federal Reserve Bank- For the New York
bank this percentage, because of the relatively
larger volume of collateral notes handled, runs
as high as 97.4 per cent. Discounts of sixmonth paper, which the month before had
declined to $5,704,756, show a total of
$11,931,131 for October.
Average maturities of the paper discounted,
except at the Minneapolis and San Francisco




banks, were higher than in September. The
average maturity of all paper discounted was
11.17 days, as against 10.38 the month before.
For all discounts the calculated average rate
was 4.21 per cent, compared with 4.24 per cent
in September, though at a number of banks,
because of the relatively larger amount of war
paper handled, longer average maturities go
together with lower average rates.
On the last Friday of the month the banks
held a total of $1,546,164,000 of discounted
paper, as against $1,713,430,000 on the last
Friday in September. Of the total discounts
on hand the share of war paper was 70.9 per
cent, compared with 71.2 per cent about the
end of September and 62.8 per cent on the corresponding date in May of the present year.
At the New York bank this share was nearly 82
per cent, even larger percentages obtaining at
the Boston and Philadelphia banks. Discounted trade acceptances totaled $20,273,000,
compared with $19,254,000 about a month
before. Of the larger total, $2,602,909, as
against $3,737,523, were foreign trade acceptances, all held by the New York bank. Agricultural paper on hand totaled $27,966,000,
compared with $35,440,000 on the last Friday
in September, while live-stock paper holdings
aggregated $36,891,000, of which oVer one-half
was reported by the Kansas City bank.
During the month there were 74 accessions to
membership, the number of member banks being 8,617 at the close of October. Nearly 42
per cent of this number, or 3,610 members, as
against 3,464 in September, discounted with
their Federal Reserve Banks during the month
under review.
In the following exhibit are given the number of in ember banks at the end of September
and October; also the number of banks discounting during the two months:
Number of member
banks in district.
Federal Reserve district.

dated.

accomino-

Oct. 31. Sept. 30. October. SeptemBoston
New York
Philadelphia
Cleveland
Richn 1 ond
A tlanta
.
Chicago
St. Louis
Minneapolis
Kansas Citv
Dallas
San Francisco
Total

421
718
656
809
561
419
1,314
512
855
994
726
632

421
712
655
806
559
415
1,281
505
852
992
720
625

229
366
318
165
235
216
596
204
211
356
457
257

211
346
305
185
229
194
589
190
291
300
355
269

8,617

8,543

3,610

3,464

1242

DECEMBER 1, 1918.

FEDERAL RESERVE BULLETIN.

Total investment operations of each Federal Reserve Bank during the months of October, 1918 and 1917.
Bills bought in open market.
Bills discounted for
members.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, October, 1918
Total, October, 1917

Bankers' j
Trade
acceptances. ! acceptances.

042,107
3,713, 305,674
215;323,196
157, 748,857
221 860,281
168, 736,349
492,495
545,899,519
154, 365,113
58i
117; 418,462
85, 423,080
161,347,744
5,903,962,877
2,681,165,854

S29.379.576
102,403,144 aS 3.164,645
20,593,547
25,000
21,668,568
3 1,574,037
7;087,997
8,715,137
30,683,643
2,377,280
3.915,000
6,969', 268
34,041
2,240,000
22.108,050
258,141,210
85,443,102

7,379,108
i;451,080

Total,

Municipal warrants.
City.

$29,379,576
105,567;789
20,618,547
23,242,605
7,087.997
8,715;137
30,683,643
2,377,280
3,915,000
7.003,309
2; 240,000
24,689.435

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
Total, October, 1918.
Total, October, 1917.




4J per cent.

51,222,350

United States
certificates of
indebtedness.

Total.

1918

29,500
8,200

§4,972,350
561,199,500
18,452,500
8,497,500
1,887,000
2,369,750
6,167,000
2,071.000
2,855,950
2,199,500
1,770,500
19.907,700

$338,394,033
4,380,072,963
254,394,243
189.488,962
230;835,278
179,821,536
582.343,138
159,347,799
65,136,063
126.621.271
89.433,580
205; 944,879

1,290,250

631,044,500

632,350,250
•1,559,400

300
10,000

300
1,186,656

19171

6,801,833,745

1,000
16,250
11,450

15,500
157,650

Total.

Total investment operations.

$3,750,000
561,199,500
18,451,000
8,497,500
1,886,000
2,338,000
6.167>000
2,071,000
2.844,500
2,199,500
1,741,000
19,899,500

1,500
§15,500

All
other.

$300

265,520.318
86,894,182 81,043,604 $133,052

United States securities.

3& per cent.

State.

1 Exclusive of purchases of Treasury certificates of indebtedness.
2 Includes 81,206,423 in the domestic trade.
3 Includes 81,260,282 in the domestic trade.
* Includes $149,784 in the domestic trade.
0 Includes S3,100 a* 3 per cent, §29,650 a t 4 per cent, and 11,369,000 of 1-year Treasury notes.

$17,426,697
2,435,196,730
21,394,910
34.065,986
30,856,826
20,691,323
99.420,562
26.045,543
8:210,489
44;466,463
16,625,539
16,505,024
2,770,806,092

DECEMBER 1, 1918.

1243

FEDERAL RESERVE BULLETIN.

Average amount of earning assets held by each Federal Reserve Bank during October, 1918, earnings from each class of earning
assets, and annual rates of earnings on basis of October, 1918, returns.
Average balances for the month of the several classes of earning assets.
Bills discounted
for members
and Federal
Reserve Banks.
Boston
New York
Philadelphia...
Cleveland
,
Richmond
Atlanta
Chicago
St. Louis
Minneapolis....
Kansas Citv....
Dallas
I...
San Francisco..
Total..

Bills bought in
open market.

$84,354,256
668,350,147
105,708,472
85,777,878
66,102,054
79,915,016
247,887,792
79,353,393 i
52,694,300 I
79,811,086 I
53,929,297
105,882,684
1,709,766,375

United States
securities.

$62,857,427
129,870,208
26,254,322
55,364,233
6,181,593 j
9,216,021 !
36,911.567 |
3,927:464 |
2,156,000 |
3,440,003 I
2,027,581 j
32,244,293 I

Municipal
warrants.

$46,642

$140,196,839
854,054,282
138,135,408
152,741,522
75,073,783
91,791,876
299,981,977
87,698,805
56,183,300
93,346,381
61,655,788
143,846,677

46,542

$2,985,156 i
55,833,927 !
6,172,614 !
11,599,411 !
2,790,135 !
2,614,297
15,182,618
4,417,948
1,333,000
10,095,292
5,698,911
5,719,700

360,450,712

Total.

2,194,706,638

124,443,009

Earnings from—
Bills discounted
for members and
Federal
Reserve
Banks.

Calculated annual rates of earnings from—

Bills
United Municipal
bought
States
in open securities, warrants.
market.

Bills discounted
United
for members and in open States Municipal Total.
Federal market. securities. warrants.
Reserve

Total.
_i__

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

•«6,426
108,035
13,143
33,838
6,004
5,4.97
28,723
8,388
3,911
20,397
10,145
12,579

S193

290,158
211,046
324,215
212,208
399,307

$190,961
454,727
99,344
198,476
25,284
34,228
130,293
16,200
7,895
11,215
7,712
124;972

$497,244
2,815,039
506,545
539,006
284,456
329,885
1,057.581
314', 746
222,852
355,827
230,065
536,857

6,131,517

1,301,307

257,086

193

7,690,103

8299,857
2,252,277
394,057
306,692
253,167
289,968

Per cent
4.19
4.09
4.38
4.21
4.51
4.27
4.27
4.30
4.72
4.77
4.63
4.59

Per cent. Per cent. Per cent, Per cent.
2.53
4.18
4.25
2.35
4.01
4.26
2.50
4.31
4.45
3.44
4.15
4.22
2.53
4.46
4.82
2.47
4.23
4.37
4.87
2.23
4.15
4.16 \
2.24
4.22
4.86
3.45
4.66
4.31
2.38
4.49
3.84
2.08
4.25
4.47
2.99
4.51
4.57

4.22

4.25

2.44

4.87

4.13

Bills discounted during the month of October, 1918, distributed by classes.

Federal Reserve Bank.

Boston
New York

Philadelphia
Cleveland

Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

Customers' Member banks' collateral notes.
paper secured
Trade
by United
acceptances.
Secured by
Otherwise
States war
United States
secured.
obligations. war obligations.
§10,594,500
385,000

1,'424^781
194,637
886,462
1,187,797
1,933,761

8246,158,850
3.413,439,359
163,310,194
117,207,932
204,682,578
123,190,750
417,479,346
121,609,800
36,595,950
78,272.256
69,063,022
138,511,760

350,000
270,081
814,000
12,293,087
5,000
10,222,000
16,548,559
1,595,240
125,000

«81,169,130
3 7,897,476
182,300
2,135,203
1,526,210
2,235,224
2,332,938
1,824,741
64,629
958,403
591,970
3,217,459

179,233,710

5,129,521,797

53,202,467

24,135,683

$39,492,285
80,049,179
26,131,220
9,701,676
5,162,993
3,880,671

All other

discounts.

Total.

Average

Average

maturity rate (per
in days. cent).*

§304,042,107
* §6,627,342
& 211,534,660 3,713,305,674
215,323,198
25,699,482
157,748,857
28,354,046
221,860,281
10,218,419
168,736,349
3S,615,704
545,492,495
104,198,876
154,899,519
30,035,197
58,365,113
11,287,897
117.418,462
6 20,752,782
85:423.080
12,985,051
7 17,559,764 j
16i;347',744

15.40
7.06
18.95
17.62
10.45
18.81
19.01
19.42
21.83
25.28
22.69
19.74

4.07
4.09
4.11
4.21
4.41
4.21
4.24
4.29
4.44
4.78
4.44
4.51

5,903,962,877

11.17

6 4.21

517,869,220

1 Boston and New York calculated on a 365-day basis; all other Federal Reserve Banks on a 360-day basis.
2 Includes $590,153 in the foreign trade.
B Includes $4,028,644 in the foreign trade.
* Includes $7,143 of bankers' acceptances.
6 Includes $996,478 of bankers' acceptances.
* Includes $4,415 of bankers' acceptances.
* Includes $62,425 of bankers' acceptances.
s Average discount rate on all paper discounted works out at 4.19 per cent if calculated on a uniform 360-day basis, and at 4.25 per cent if calculated on a 365-day basis.




1244

FEDERAL RESERVE BULLETIN.

DECEMBER 1,

19 J 8.

Amounts of discounted paper, including member banks1 collateral notes held by each Federal Reserve banh on the last Friday
in October, 1918, distributed by classes.
[In thousands of dollars, i. e., 000 omitted.]

Agricultural
paper.

Banks.

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

Customers'
paper secured byLiberty
Li ve-stock bonds or
paper.
United
States certificates of
indebtedness.
54

1
277
12
115
2,446
2,064
5,346
318
1,428
4,312
5,695
5,898

544
5,908
18,902
7,628
3,098

55,169
74,770
24,705
8,876
7,383
1,163
9,685
1,476
1,210
270
1,851
4,103

27,912
1.8

36,945
2.0

190,661
12.3

1

51
132
78
550

Member banks' collateral notes.
Secured by
liberty
Trade ac- All other
bonds or
ceptances. discounts.
United
Otherwise
States cer- secured.
tificates of
indebtedness.
;
I
i
I
i
i
!
'

22,422
401,141
53,650
52,251
37,182
44,368
142,720
43,046
12,168
33,492
13,821
49,498

145
284
23,539
542
75
8,358
1.247
125

905,759
58.0

34,830
2.0

11,021
98,266
12,551
16,221
12,622
26,521
53,551
25,442
17,646
14,489
15,435
26,019

2,281
20,273 !
1.3 ',

89,244
580,817
91,346
80,203
61,620
76,709
237,372
72,814
38,494
80,846
45,677
91,022

329,784
21.3

447
15,978
377
2,608
1,764
1,759
2,531
1,446
59
1,023

130
385

Total.

1,546,164
100.0

Includes $2,602,909 in the foreign trade.

Acceptances bought in open market and held by each Federal Reserve Banh on Oct. SI, 1918, distributed by classes of
accepting institutions.
[In thousands of dollars: i. e., 000 omitted.]
NonNonMember member member
trust
Statebanks.
companies. banks.
Boston
New York
Philadelphia
Cleveland
Rich mond
Atlanta Chicago

St. Loufc
Minneapolis...
Kansas City
Dallas
S a n Francisco .
Totals:
Oct. 31,1918
Sept. 30,1918
Au» 31 1918
Ocr,. 31,1917
Oct. 30,1916




.

.

.

.

.

45 462
97,963
28,188
44,392
9,783
12.323
34,942
3,61G
3 907
6 642
2,195
25,276
314,719
233,926
188,366
150,301
37,993

Trade acceptances bought in
Foreign
open market.
banks,
Private branches, Total.
banks.
and
agencies.
Domestic. Foreign, Total.

1,931

552
6,562
1,206
2,029

7.904
13', 558
1,968
4,684

30

528
473

25
r>6
100

70
198
17
2,949
2,859
1.7.17
2,1-17
27,951

310
7,183
175
1,268

124

1,022

1,823

5,040

11,669
2,479
8,264
1,307
733

30,242
27,551
19,167
21,083
11,829

14,006
13,999
8,450
2,153

54,786
125.739
3i;537
54,304
9,783
12 378
34,998
3,816
3 907
6.904
2', 195
33?17S
373,585
280,814
225,964
177,991
78,506

Total
acceptances.

2,451

2,605

5,056

1,377

371

1,748

34

34

119

2,047

2,166

54,786
130,795
31,537
56,052
9,783
12,378
34,998
3,816
3,907
6,998
2,195
35,344

3,947
2,745
2,201

5,057
5,761
6,605

9,004
8,506
8,806
6,224
2,468

382,589
289,320
234,770
184,216
80,974

DECEMBER 1, .1918.

1245

FEDERAL RESERVE BULLETIN.

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on
Nov. 1 to Nov. 22, 1918.

Fridays,

RESOURCES.
[In thousands of dollars: i. o. 000 omitted.]
Philadelphia.

Boston.
Gold in vault and in transit:
Nov. 1
Nov.8
Nov. 15
Nov. 22
Gold settlement fund, Federal
Reserve Board:
Nov.l
Nov.8
Nov. 15
Noy.22
Gold with foreign agencies:
Nov. 1
Nov.8
Nov. 15
Nov.22
Gold with Federal Reserve
agents:
Nov.l
Nov.8
Nov.15
Nov.22
Gold redemDtion fund:
ov.i.:
Ni:
Nov.8
Nov.15
Nov.22
Total gold reserves:
Nov.l
Nov.8
Nov.15
Nov.22
Legal tender notes, silver, etc.:
Nov. 1
Nov.8
Nov.15
Nov.22
'Total cash reserves:
Nov.l
Nov.8
Nov.15
Nov.22
Bills discounted:
Secured by Government
war obligations—
Nov.l.
Nov.8
Nov. 15
,
Nov.22
All other—
Nov.l
,
Nov.8
Nov. 15
Nov.22
,
Bills bought in open market:
Nov.l
Nov.8
Nov.15
Nov.22
United States Government
long-term securities:
Nov.l
Nov.8
Nov. 15
Nov.22
United States Government
short-term securities:
Nov.l
Nov.8
Nov.15
,
Nov.22
,
All other earning assets:
Nov.l
Nov.8
,
Nov.15
,
Nov.22
,
Total earning assets:
Nov.l..'.
Nov.8
,
Nov.15
Nov.22




3,491
3,779
3,377
28,785
51,928
41,187
33,763

Chicago.

7,022
7,708
7,515
7,574

25,310
24,979
24,683
24,531

1,337
1,252
2,111
2,206

21,901 15,233 70,050
9,074 12,655 78,177
9,941 ! 15,615 111,489
12,384
5,720 174,365

27,204
30,571
29,236
28,118

35,190 28,679
26,585 29,977
27,691 18,938
12,588 25,496

233
233
233
233

233 | 291
233 ! 291
233
291
233
291

6,336
6,226
6,278
2,311

216 36,206
346 38,073
118 26,242
194 28,264

276,733
277,226
277,615
277,341

97,456 57,306
71,893 40,171
36,818 46,078
32,209 32,657

32,233
32,876
47,321
32,983

408
408
408
408

2,011
2,011
2,011
2,011

408
408
408
408

67,769
67,261
66,878
65,436

285,627
283,856
282,983
282,650

95,935
82,212
80,314
79,221

142,152
140,880
151,484
133,130

5,950
6,094
6,271
6,641

24,903
24,992
24,992
24,992

7,000
7,500
7,700
7,700

440
554
1,212
3,250

106,111
129,182
118,523
109,625

686,730
659,978
624,419
619,203

160,865
130,637
134,618
120,180

3,055
3,943
2,663
3,725

43,394
43,483
43,211
45,029

547
637
974

109,166
133,125
121,186
113,350

730,124
703,461
667,630
664,232

161,412
131,274
135,592
120,988

93,849
116,843
134,813
120,908

514,153 98,049 69,571 59,780 53,964
574,655 123,571 73,214 65,318
580,548 147,006 77,002
45.508
555,534 146,472 95,473 69,306 32,742

525
525
525
525 |

175
175
175
175

816
816
816
816

60,967 45,844 188,236
60,384 45,315 190,989
60^89 I 44,924 197,842
59,973 i 44,956 204,702

8,313
8,310
8,325
8,366

48,992 48,158
48,790 53,007
46,173 57,772
53,131 57,531

10,515
10,729
11,108
11,790

3,158
3,246
3,338
3,332

211,556 89,504 72,559 294,927
212,908 82,132 70,238 305,690
226,784 82,470 72,770 345,938
63,342 416,204
198,152

80,924
84,092
81,091
87,020

6,244
5,958
5,897

4,285
4,385
4,541
4,917

663
661
677

211,983 90,167
213,342 82,793
227,221 83,147
198,637 81,392

72,725
70,423
72,977
63,548

296,369
307,025
347,284
417,729

83,031
86,146
83,196

184,276 54,162
158,336 54,264
143,363 52,234
116,878 42,984

20,737 18,885 32,832 95,032 32,084
19,374 20,197 36,556 93,887 31,255
17,903 20,412 36,538 81,640 29,289
16,380 18,049 38,357 66,548 34,064

110,459
103,678
94,444
95,312

17,958
15,239
10,992
15,890

43,863
30,710
11,941
15,448

129,944
134,045
166,938
172,204

36,613 60,571
42,343 60,597
33,262 57,934
20,586 52,754

1,760
1,760
1,759
1,413

1,400
1,400
1,399
1,399

1,348
1,358
1,359
1,362

4,416
4,416
4,416
4,416

35,938
37,089
37,027
94,558

6,182
6,318
6,318
6,299

3,371
3,439
3,560
3,732

8,111
8,122
8,115
6,670

383,833
386,437
375,527
371,498

11,922 23,289
12,370 39,175
12,823 36,748
2,103 43,506

449,248
435,452
433,885
435,892

204
204
204
204

321
321
321
321

5,829
5,829
5,829
5,829

48,322
48,044
47,981
47,850

24,215
24,129
24,102
22,523

93,642
100,773
106,037
117,814

1,149,859
1,145,640
1,166,579
1,168,917

1,271
3,759
3,794
3,715

2,156
2,156
2,155
2,155

315
135

162
128
132

1,104
1,102
1,039
1,178

318
222
225
234

791,894
850,867
880,356
919,007

160,150
188,829
198,937
190,609

73,233
74,957
78,129
2,052,229
2,046,591
2,056,777
2,060,265
53,456
54,248
53,039
55,992

95,336 I 78,883 47,712 128,777 2,105,685
91,638 I 82,322 48,083 151,207 2,100,839
97,627 71,278 48,438 154,240 2,109,816
82,509 77,784 34,833 172,247 2,116,257

20,336 55,527
14,394 47,506
13,887 51,362
15,971 40,518

1,252,904
1,316,967
1,358,416
1,281,245

54,183 29,750 37,858
28,405 53,542 28,995 37,537
25,019 49,740 28,768 33,175
22,222 48,831 29,749 30,210

493,049
480,271
439,392
428,190

14,167 35,070
9,943 29,999
11,908 31,057
21,655 22,804

6,993
7,442
8,212
8,613

2,195
2,940
2,910

34,656
34,299
34,175
35,045

377,066
374,522
377,877
368,784

126 ! 8,867
126 I 8,867
126 8,867
125 8,867

4,005
4,003
4,003
4,003

3,461
3,461
3,461
3,461

29,472
29,479
29,478
29,134

1,902
1,902
1,902
1,901

2,923
2,920
3,021
2,988

88,750
91,956
93,449
148,180

11

35
28
28
27

162,849 92,445 103,702 326,944 95,187 52,765 108,193 58,188 134,436
165,098 99,224 102,525 300,018 95,141 45,383 102,836 52,234 125,723
166,352 103,820 99,605 272,269 90,848 44,516 100,872 51,470 125,194
173,401 94,031 88,779 236,563 86,700 52,252 92,024 55,209 112,222

2.241,276
2,293,223
2,298,640
2,255,560

12,331
12,560
13,039
13,112

32,515
32,684
32,145
36,015

3,717
3,399
3,102
3,429

1,234
1,234
1,234
1,234
10,881
10,825
12,425
7,706

9,761
9,660
9,661
2,657

520
520
520
519

4,509
4,509
4,509
4,510

1,153
1,153
1,153
1,153

2,785
2,785
2,785
2,785

4,031
3,967
3,972
4,022

10.612
10,612
10,612
12,612

4,071
5,070
5,070
5,070

24 :

3,907
3,843
4,558
5,336

1,929
3,066
2,905
2,914

3,080
2,996
2,909

28 I
28
27
154,523
165,345
164,401
154,763

Total.

10,892
10,581
10,581
10,364

158
123
165
300

95,265 78,721 46,608 128,459
91,574 82,194 46,981 150,985
97.581 I 71,169 47,399 154,015
82; 450 77,652
172,013

1,442 2,107
1,335
2,054
1,346 I 2,105
1,525 ! 1 " ~

166
185
207
206

427
434
437
485

10,635
11,616
11,472
12,578

!

204
201
204
204

San
Francisco.

Minne- Kansas
St.
Louis. apolis. City.

Atlanta.

1246

FEDEBAL RESERVE BULLETIN.

DECEMBER 1, 1918.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays.
Nov. 1 to Nov. 22, 1918—Continued.
RESOURCES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
I
Boston.
Uncollected items (deduct from
gross deposits):
' Nov. 1
Nov.S
Nov.15
Nov.22
5 per cent redemption fund
against Federal Reserve bank
notes:
Nov. 1
Nov. 8
Nov.15
Nov.22
All other resources:
Nov.l
Nov.S
Nov.15
Nov.22
Total resources:
Nov.l
Nov. 8
Nov.15
Nov.22

47,592
47,108
62,061
64,470

New
York.

I Phila- Cleve- Richdelphia. land. mond.

Atlanta.

Chi- I St.
Minne- Kansas
cago. ; Louis apolis. City. Dallas.

San |
FranTotal.
Cisco.

51,216 43,493
P7,494 54,801
51,357 56,743
76,515 63,145

36,139
45,203
39,710
43,506

74,621
80,621
86,681
74,751

65,326
61,526
64,939
70,745

23,269
15,783
15,541
25,719

55,458
67,868
69,580
77,692

16,490
20,548
22,703
33,408

61,261
31,348
33,871
42,829

684.315
687,468
717,785
819,010

88
188

472
471
442
560

182
216
221
221

198
207
207
232

3,763
3,924
4,008
4,525

2,484
1,792
1,520
1,478

17,075
18,790
18,169
24,175

146,799 62,651
143,350 61,818
146,296 68,303
161,004 85,226

121
121
175
220

1,337
1,309
1,179
1,161

200
225
275
275

275
275
298
323

116
135
186
185

91
149
156
198

517
537
540
709

166
191
241
253

1,023
996
1,523
1,105

3,113
3,130
4,522
4,700

3,181
4,617
2,611
9,230

812
730
821
946

1,275
1,355
1,741
1,.P56

857
871

1,420
1,985
1,785
1,591

580
777
552
658

264
216
202

1.074
l) 124
1,119
1,086

992
1,197
807
766

312,425
346,695
349,346
333,908

1,673,267
1,702,117
1,699,983
1,750,104

387,594
386,763
405,718
406,328

427,135
1436,939
446,049
449,822

227,496
238,308
245,637
240,309

213.514
219; 171
213,314
196,870

699,871
690.186
708;559
731,343

244,290
243,781
239,876
247,364

171,722
153,108
157,974
160,888

244,080
254,621
243,291
249,146

123,564
122,278
123,639
124,437

3.776
3,785
3,785
3,785

2,90-4
2,909
2,911
2,916

3,609
3,610
3,632
3,654

3,121
3,118
3,123
3,139

Urn
327,156
310,277 5,052,114
315,032 5,104,244
329,008 5,148,418
5,219,527

LIABILITIES.
Capital paid in:
Nov.l
Nov.S
Nov.15
Nov.22
Surplus:
Nov.l
Nov.S
Nov.15....
Nov.22
Government deposits:
Nov.l
Nov.S
Nov.15
Nov.22
Due to members—reserve account:
Nov.l
Nov. 8
No.15
Nov.22
Collection itoms:
Nov.l
Nov. 8
Nov.15
Nov.22
Other deposits, i n c l u d i n g
foreign government credits:
Nov.l
Nov.S
Nov.15
Nov.22
Total gross deposits:
Nov.l
Nov.S
Ncv.15
Nov.22
Federal Reserve notes in actual
circulation:
Nov.l
Nov.S
,
Nov.15
Nov.22
Federal Reserve bank notes in
circulation—Net liability:
Nov.l
Nov. 8
Nov.15
Nov.22
All other liabilities:
Nov.l
Nov.8
Nov.15
Nov.22
Total liabilities:
Nov.l
Nov.8
Oct. 15
Nov.22




1

6,579
6,599
6,599
6,600

20,314
20,711
20,725
20,726

75
75
75
75

7,391
7,391
7,398
7,459

8,868
8,868
8,881
8,884

649
649
649
649

10,709
33,090
45,372
7,0S6

17,501
8,565
24.892
12;346

94,939
102,764
87,509
108,538

610,324
641,278
599,319
685,823

74,576
90,341
74,816
70,275

42,019
44,161
49,724
53,039

143,284
132,954
159,385
162,202

57,972 39,358
56,163 39,627
64,436 42,060
64,990 54,865

106,957
108,983
108,053
108,187

3,170
3,171
3,174
3,175

11,077
11,084
11.091
I!)103

116
116
116
116

32,649 23,572
28,274 3,268
48,756 26,726
10,655 32,808

4,020
4,041
4,044
4,044

40
40
40
40

216
216
216
216

56
45
36
40

111,383 47,841 39,652 197,044 53,776
121,736 50.155 43,033 205,724 55,513
113,152 50)789 I 38,259 209,632 51,615
115,240 51,947 I 40,784 229,169 56,899
i 24,603
30,005
26,432
24,683
14
19
17
11

53,333 45,277
60,051 47,?26
63,442 49,003
61,955 54,902
1,971
2,362
1,546
1,912

9,546
U36
7,430
3,753

79.36G
79,824
79,903
80,025
1,134
1,134
1,134
1,134

38

14,396 26,946 34,711 27,650
8,824 23,070 1,605 22,261
13,922 24,033 7,198 17,458
7,240 8,385 13,877
3,241

36,179
41,350
41,329
45,074

4,531
4,537
4,540
4,540

19,508
21,707
17,849
6,631

10,937
6,186
8,347
3,959

21,272
3,542
4,418
3,193

249,397
160,256
246,401
113,174

45,031 60,511
50,377 69,985
46,057 65,407
50,408 74,433

31,658
31,847
32.337
32; 340

75,758
83,243
81.057
88,171

1,442,493
1,545,998
1,449,949
1,604,033

25,220 37,726
9,718 36,251
11,334 33.408
12,438 40; 127

12,388
14,278
14,065
19,942

26,616
15,912
19,109
26,391

543,975
527,796
573,727
620.608

260
278
217
454

23
20
15
14

2
2
2
2

2
20
352

2,544
3,230
3,479
2,995

111,827
114,941
113,385
113,967

79,820
59,979
64,836
66,613

117,747
127,945
116.666
121)193

54,983
52,313
54,760
56,593

126,190
105,927
108,063
120,750

2,347,692
2,348,988
2,383,462
2.451,782

108,542 85.997
109,18S 87)171
111,636 87,131
110,935 87,483

111,899
111,998
111,653
112,160

190,954
62,192 193,748
61,063 196,210
59,847 197,397

2,515,504
2,558,196
2,562,517
2,555,216

147,667
180,015
182,605
168,663

893,214
911,489
915,513
966,867

156,120
149,772
165,978
168,073

168,298
169,973
180,140
182,497

98,416 91.215 287,059 128,963
100,329 96,127 269,742 125,378
106,040 88,741 281.818 118,293
100,262 72,718 30i; 421 126,132

152,460
153,267
152,980
150.983

722,007
730,483
723,355
718,784

217,924
222,840
225,022
222,906

242,113
249,764
248,204
248,597

122,088
130,770
132,125
131,960

116,070
115,450
113,910
115,609

384,530
391,325
396,231
398,554

2,396
3,269
3,514
3,950

20,329
21,404
21,615
23,761

3,662
4,079
4,557
5,033

4,701
5,031
5,475
6,111

865
984
1,162
1,696

1,589
2.871
2; 878
3,719

10,881
11,389
12,866
13,533

3,244
3,592
4,292
4,568

1,510
1,550
1.580
2)326

8,159
8,277
8,479
9,165

3,143
3,150
3,149
3,255

2,759
3,258
3,363
3,387

68,864
72,930
80,504

3,248
3,470
3,573
3,637

16,694
17,381
18,126
19,317

2,497
2,681
2,763
2,85,7

3.155
3; 303
3,349

1,991
2,068
2,153
2,231

1,430
1,512
1,571
1,609

6,008
6,430
6,337
6,516

1,765
1,838
1.870
1,944

1,453
1,461
1,478
1,512

2,666
2,791
2,861
2;974

1,457
1)495
1,535
1,603

2,722
2,807
2,856
2,934

45,086
47,237
48,472
50,867

312,425 1,673,267 387,594 427,135
346,695 1,702,117 386,763 430,939
349,346 1,699,983 405,718 446,049
1,750,104 406,328 449,822

227,496
238,308
245,637
240,309

213,514
219,171
213,314
196,870

699,871
G90,186
708,559
731,343

244,290
243,781
239.876
247)364

171,722
153,108
157,974
160,888

244,080
254,621
243,291
249,146

123,564
122,278
123,639
124,437

327,156
310,277
315,032
329,005

5,052,114
5,104,24.1
5,148,418
5,219,527

1 Overdraft.

1247

FEDERAL RESERVE BULLETIN.

DECEMBER 1, 1918.

Maturities of bills discounted and bought, United States Government short-term securities, and municipal

warrants,

[In thousands of dollars; i. e., 000 omitted.]
Over 90
days.

31 to 60
days.

61 to 90
days.

277,468
287,099
278,295
137,153 |

§140,584
123,119
116,666
162,837

$195,853
257,315
288,345
295,910

58,422
67,228
74,990
69,081 |

153,857
181,242
185,095
176,041

91,496
62,965
45,752
41,434

617
10,684
9,132
10,335

8,109
3,557
2,194
2,023

5
15
15
6

10

Within 15
days.
Bills discounted:
Nov.l
Nov. 8
Nov.15
Nov. 22
Bills bought:
Nov.l
Nov. 8
Nov.15
Nov. 22
United States short-term securities:
Nov. 1:
Nov
Nov. 15
Nov. 22
Municipal warrants:
Nov. 1
,
Nov. 8
,
Nov. 15
Nov. 22

15,688
15,701
18,481
69,029

Total.

816,275
16,830
17,776
20,102

81,745,953
1,797,238
1,797,808
1,709,435
377,066
374,522
377,877
368,784

04,199
61,913
63,569

88,750
91,956
93,449
148,180
24
28
28
27

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve bank at close of business on Fridays, Nov. 1 to Nov.

22,1918.

[In thousands of dollars: i. e., 000 omitted.]

Federal Reserve notes received i
from agent—net:
i
Nov.l
166,682
Nov. 8
167,814
Nov.15
167,931
Nov. 22
166,989
Federal Reserve notes held by
bank:
Nov.l
14,222
Nov. 8
i 14,547
Nov.15
i 14,951
Nov. 22
1 16,006
Federal Reserve notes in actual I
circulation:
i
Nov.l
: 152,460
Nov. 8
-153,267
Nov.15
1152,980
!
Nov. 22
150,983
Gold deposited with or to credit i
of Federal Reserve agent:
Nov.l
67,769 !
Nov. 8
67,261 I
Nov.15
66,878 !
Nov.22
65,436 ;
Paper delivered to Federal Reserve agent:
Nov.l
148,347
Nov. 8
159,169
Nov.15
158,203
Nov.22
148.934




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

Total.

87,414
88,563
88,328
88,487

120,141
119,544
119,198
120,173

61,771
62,850
62,395
61,102

204,286
208,797
208,561
211,338

2,710,680
2,743,686
2,761,812
2,768,777

5,017
6,029
6,154
6,597

1,417
1,392
1,197
1,004

8,242
7,546
7,545
8,013

911
658
1,332
1,255

13,332
15,049
12,351
13,941

195,176
185,490
199,295
213,562

j 384,530
391,325
396,231
398,554

108,542
109,188
111,636
110,935

85,997
87,171
87,131
87,483

111,899
111,998
111,653
112,160

60,860
62,192
61,063
59,847

190,954
193,748
196,210
197,397
!

2,515,504
2,558,196
2,562,517
2,5.55,215

188,236
190,989
197,842
204,702

48,992
48,790
46,173
53,131

48,158
53,007
57,772
57,531

48,322
48,044
47,981
47,850

24,215
OA i on
24,129
24,102
22,523

I 93,642
i nn nil
100,773
106,037
117,814

1,149,859
1,145,640
1,166,579
1,168,917

145,568 86,025 84,849 311,823
152,253 91,510 85,761 282,692
151,185 98,491 82,421 257,148
73,581 219,441
163,398

83,396
81,938
74,874
63,828

46,448
36,604
38,178
44,630

96,246
90,983
89,009
80,248

52,281 1115,063
46,329 ! 108,274
45,565 j 106,218
49,305 95,395

2,060,652
2,116,238
2,120,296
2,006,803

Phila- Cleve- Richdelphia. land. mond.

Atlanta.

Chicago.

254,175
260,103
259,506
261,153

130,239
140,695
141,938
141,836

119,055
118,727
120,230
118,447

408,371
411,124
417,976
424,837

113,559
115,217
117,790
117,532

91,177 13,819 12,062
87,590 9,339 10,339
14
101,442
11,302
105,650
12,556

§ !

8,151
9,925
9,816
9,876

2,985
3,277
3,320
2,838

23,841
19,799
21,745
26,283

217,924
222,840
225,022
222,906

242,113 1122,088
249,764 130,770
248,204 132,122
248,597 131,960

116,070
115.450
lie;910
115,609
45,844
45,315
44,924
44,956

Boston.

813,244
818,073
824,797
824,434

722,067
730,483
723,355
718,784

231,743
232,179
233,162
232,449

285,627 95,935 142,152
283,856 I 82,212 140,880
282,983 i 80,314 151,484
282,650 i 79,221 133,130
754,556
812,378
841,930
823,050

136,050
168,347
177,074
156,367

60,967
60,384
60,089
59,973

1248

FEDERAL KESEEVE BULLETIN.

DECEMBER 1, 1918.

Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Nov. 1 to Nov. 22, 1918.
[In thousands of dollars: i. e., 000 omitted.]
Boston.

New
York,

Phila- Cleve- Richdelphia. land. mond.

Atlanta.

San
St.
Minne- Kansas
FranLotus. apolis. City. Dallas. cisco.-

Chicago.

Total.

FEDERAL RESERVE NOTES.

Received from Comptroller:
227,580
Nov.l
229,020
Nov.8
229,020
Nov.15
232,540
Nov.22
Returned to Comptroller:
42,698
Nov.l
43,206
Nov.8
43,589
Nov.15
45,031
Nov.22
Chargeable to Federal Reserve
agent:
184,882
Nov.l
185,814
Nov.8
185,431
Nov.15
187,509
Nov.22
In hands of Federal Reserve
agent:
18,200
Nov.l
18,000
Nov.8
17,500
Nov.15
20,520
Nov.22
Issued to Federal Reserve
Bank, loss amount returned
to Federal Reserve agent for
redemption:
166,682
Nov.l
167,814
Nov.8
167,931
Nov.15
166,989
Nov.22
Collateral held as security for
outstanding notes:
Gold coin and certificates
on hand—
5,000
Nov.l
5,000
Nov.8
5,000
Nov.15
5,000
Nov.22
In gold redemption fund—
10,769
Nov.l
10,261
Nov.8
9,878
Nov.15
Nov.22
Gold settlement fund, Federal Reserve Board—
52,000
Nov.l
52,000
Nov.8
52,000
Nov.15
51,000
Nov.22
Eligible paper, minimum
required—
98,913
Nov.l
100,553
Nov.8
Nov.15
, 101,053
101,553
Nov.22




1

1,175,240
1,181,840
1,189,440
1,195,840

299,200
1309,780
1309,780
313,780

294,200
299,400
300,400
301,200

172,180
178,380
182,580
184,580

177,300
1183,640
1183,640
183,640

487,240
492,480
497,060
505,260

257,196
258,967
259,843
260,206

52,097
52,821
54,718
55,811

25,406
26,677
28,074
30,427

30,581
31,385
32,142
32,844

23,140
23,667
24,060
24,628

35,669
37,496
38,844
39,923

918,044
922,873
929,597
935,634

247,103
256,959
255,062
257,969

268,794
272,723
272,326
270,773

141,599
146,995
150,438
151,736

154,160
159,973
159,580
1159,012

451,571
454,984
458,216
465,337

125,194
124,992
126,875
126,387

15,360 14.619
24,780 12.620
21,900 12,820
25,520 9,620

11,360
6,300
8,500
9,900

35,105
41,246
39,350
40,565

43,200
43,860
40,240
40,500

254,175
260.103
259,506
261,153

130,239
140,695
141,938
141,836

119,055
118,727
120,230
118,447

408,371
411,124
417,976
424,837

104,800
104,800
104,800
111,200

813,244
818,073
824,797
824,434

231,743
232,179
233,162
232,449

16,887
15,116
14,243
13,910

13,457
12,939
12,793
12,555

110,000
110.000
110,000
110,000

82,478
69,273
67,521
66,666

527,617
534.217
541,814
541,784

135,808
149,967
152,848
153,228

111,480
112,480
112,480
112,480

150,700 98,920 219,440 3,561,280
150,700 99,920 224,320 3,609,760
150,700 99,920 224,320 3,629,140
152,700 99,920 227,320 3,660,540

22,606 16,956 22,139
22,808 17,167 22,736
22,925 17,402 23,082
24,893 17,643 24,107

19,289
19,625
19,745
20,198

15,154
15,523
15,759
15,982

562,931
572,078
580,183
591,693

94,-524
95,313
95,078
94,837

128,561
127,964
127,618
128,593

79,631
80,295
80,175
79,722

204,286
208,797
208,561
211,33S

2,998,349
3,037,682
3,048,957
3,068,847

11,635
9,775
9,085
8,855

7,110
6,750
6,750
6,350

8,420
8,420
8,420
8,420

17,860
17,445
17,780
18,620

113,559
115,217
117,790
117,532

87,414
88,563
88,328
88,487

120,141
119,544
119,198
120,173

61,771
62,850
62,395
61,102

2,000

13,102
13,102
13,102
13,052

2,861
2,660
2,542
2,500

1,756
1,605
2,870
2,679

118,000 60,000 40,170 186,023 46,131
118,000 58,000 40,170 189,700 46,130
118,000 58,000 40,170 196,324 43,631
100,000 58,000 39,770 203,026 48,631
112,023
119,223
108,022
128,023

10,750
8,750
20,750
18,750

158,740 j
158,740 i
158,740 I
158,740 I

147,800
147,800
149,800
151,280

13,402
14,130
12,734
14,380

2,503
2,503
2,503
2,503 '
967
2,384
2,089
1,973

69,272
80,311
81,849
81,863

3,171
2,642
2,251
2,683

73,211
73,412
75,306
73,491

,
2,213
1,289
1,518
1,676

220,135
220,135
220.134
220.135

64,567
66,427
71,617
64,401

287,669
293,996
287,145
300,070

204,286
208,797
208,561
211,338

10,081
10,081
10,081
11,581
3,250
3,164
3,337
3,258

2,710,680
2,743,686
2,761,812
2,768,777

200,176
198,176
210,176
211,626
10,081
9,712
11,476
11,253

81,776
78,586
78,352
78,793

33,300
38,300
41,800
41,800

45,360 10,884 83,561
45,360 10,884 91,061
45,360 10,684 94,561
45,360 7,684 106,561

867,907
868,878
878,051
878,498

39,256
35,556
30,556
30,956

71,819
71,500
71,217
72,323

110,644
108,024
102,524
93,524

1,560,821
1,598,046
1,595,233
1,599,860

2,962
2,684
2,621
2,490

For actual amounts, see item "Paper delivered to Federal Reserve agent," on p. 1247.

37,556
38,721
38,293
38,579

1249

FEDEKAL RESERVE BULLETIN.

DECEMBER 1, 1918.

MEMBER BANK CONDITION STATEMENT,
Principal resources and liabilities of member banks in leading cities, including member banks healed in Federal reserve bank
cities and in Federal reserve branch cities, as at close of business on Fridays from Oct. 25 to Nov. 15, 1918.
1. ALL R E P O R T I N G MEMBER BANKS.
[In thousands of dollars; i. e., 000 omitted..]
Boston.

New

j

Clevc-

| phi
Number of reporting
banks:
Oct. 25
Nov. 1
Nov. 8 . . . ,
Nov. 15
United States bonds to
secure circulation:
14,402
Oct. 25
14,402
Nov.l
14,402
Nov. 8
14,402
Nov.15
Other United States
bonds, including Liberty bonds:
29,566
Oct. 25
28,817
Nov.l
23.824
Nov. 8
21,784
Nov.15
United States certificates
of indebtedness:
80,056
Oct.25
77,311
Nov.l
82,877
Nov.8
80,119
Nov.15
Total United States securities owned:
124,024
Oct.25
120,530
Nov.l
Nov.8
:• 121,103
116,305
Nov.15
Loans secured by United
States bonds and certificates:
123,063
Oct.25
116,826
Nov.l
114,494
Nov.8
111,119
Nov.15....
Other loans and investments:
797,663
Oct.25
784,349
Nov.l
785,405
Nov.8
799,021
Nov.15
Total loans and investments:
1,044,750
Oct.25
1,021,705
Nov.l
1,021,002
Nov.8
1,026,445
Nov.15
Reserve with Federal
Reserve Banks:
81,809
Oct.25
66,732
Nov.l
72,353
Nov.8
59,121
Nov.15
Cash in vault:
29,951
Oct.25
27,455
Nov.l
25,S87
Nov.8
25,243
Nov.15
Net demand deposits en
which reserve is computed:
676,394
Oct. 25
682,006
Nov.l
689,529
Nov.8
695,323
Nov.15
Time deposits:
96,746
Oct.25
94,580
Nov.l
98,598
Nov.8
95,658
Nov.15
Total net deposits on
which reserve is computed:
714,500
Oct.25
719,812
Nov.l
728,509
Nov.8
733,444
Nov.15
Government d eposits:
178,776
Oct.25
153,240
Nov.l
140,258
Nov.8
112,771
Nov.15




104
104
105
100
50,610
49,950
50,311
50,311

53
53
53
53
492
492
432
492

407,405 85,415
386,815 79,992
372,942 69.823
363,238 66)965

Richmond.

Atlanta.

32

73

42,713
42.773
42,832
42,832

15,065
15,465
15,465
15,465

18,866
18,876
18,906
18,906

17,671
17,671
17,655
17,655

6,369 1 13,635
6,369 ! 13,710
! 13,710
i 13,715

119,174
117,271
106,434
101,912

52.502 48,871
50,649 45,333
49.169 39,042
51)230 35,829

141.342
144', 545
132,096
121,669

102,728 31,420
91,758 30,132
86,482 26,537
24,682

17,983
17,150
11.781
11,400

40,202 15,434 74,153
37,748 14,546 68,126
31,952 11,948 61,197
31,790 12,475 63,057

91,184
84,900
78,908
75,432

36,177
35,276
28,171
28,748

79,905.
77,842
72,732
70,344

57,978
54,464
52,824
55,473

138,221
131,193
127,458
128,268

2,235,380
2,149,210
2,075,290
2,108,959

84,495 19,273 10,335
101,559 20,445 10,372
97,910 22,068 8,873
92,821 23,839 8,630

8,676
9,130
8,927
8,783

7,544
7,419
7,329
7,243

13,349
12,629
13,659
13,061

1,165,738
1,243,057
1,199,817
1,103,248

24,253
24,253
24,253
24,109

385,876
366,155
398,447
459,696

56,107
54,700
47,015
46,573

67,292
64,426
62,104
65,862

31,937
34,514
31,105
29,868

43,243
43,038
36,176
41,625

843,891
802,920
821,700
873,245

153,014
148,184
128,330
125,030

229,179
224,470
211,370
210,606

111,692
109,416
104,527
105,207

107,179
103,836
90,683
92,919

617,982
670,417
622,829
632,018

160,091
152,553
104,169
162,759

68,540
82,129
81,039
82,476

34,963 17,427
38,569 20,999
37,479 21,041
38,028 22,471

262,936
255,179
237,484
227,381

750
751
752
753
17,923
18,180
18,177
17,929

34,505
34,505
34,505
34,505

267,510
267,646
268,077
267,690

42,093 11,825 26,068 24,615 29,563 1,018,439
37,097 11,757 20,384 21,738 31,562
981,960
34,716 10,021 27,070 22,699 31,756
919,592
33,095 10,977 24,839 25,069 30,706
887,313
949,431
899,604
887,621
953,956

1,445,468
1,438,332
1,433,273
1,419,894

380,261
387, < M
M
381,881
375,806

283,467 469,564
275,501 466,567
268,589 462,976
261,470 1459,213

185,667
187,325
189,639
190,789

549,249
550,490
550,906
558,554

10,635,191
10,657,690
10,651,835
10,605,037

433.488
443,781
429,210
432,170

1,792,899
1,795,070
1,768.667
1,740)099

496,718
492,949
482, S57
475,077

329,979
321,149
305,633
298,846

558,145
553.539
541,635
538,370

251,189
249,208
219,792
253,505

700,819
697,312
692,023
"1,883

14,036,309
14,049,957
13,916,942
13)917,244

32,542
30,725
34,404
33,974

28,524
30,577
29,362
26,846

148,380
141,673
148,903
150,816

37,617
33,684
34,017
31,042

23,565 55,028
22,884 40,212
23,798 48.038
22,666 42,866

16,373
15,608
16,317
16,824

61,556
48,682
52,569
53.065

1,361,704
1,375,056
1,268,928
1,183,856

31.681 19,046
35,481 17,364
33,049 20,137
35,316 20,187

15,918
17,434
16,499
16,287

60,347
58,565
60,152
61)268

12,022 10,148 16,861 12,906
12,202 9,994 16,801 12,088
12,317 9,534 16,724 12,761
12,839 8,776 16,037 12,773

21,905
21,263
22,277
24,104

382,602
372,526
383,672
386,173

220,246
219,922
213,739
223,573

1,075,569
1,045,085
1,067,776
1,106,281

255,646
250,888
257,204
257,930

212,617
210,667
213)685
215,173

382,979
356,563
368,904
384,465

145,192
144,011
151,496
142,609

429,617
414,470
118,819
428,177

9,533,914
9,354,518
9,510,287
9,859,838

222.180 56,556 91,315
257;677 57,762 93,820
223,006 58,537 92,531
223,257 56,294 91,214

371,980
364,638
376,548
376,355

74.113
73)493
73,585
73,429

45,875
45,305
46,287
43,200

59,783
59,491
58,490
57,879

24,625
21.881
25)209
25,084

121,895
121,808
122,265
122,287

1,438,992
1,469,576
1,451,249
1,443,510

274,893
209,954
270.284
276.9tfS

229,209
227,027
230,430
231,017

400,914
374,410
386,451
401,829

153,282 !-166,186
152,189 Hoi, 012
159,935 '455,499
150,858 464,803

9,963,188
9,793,871
9,974,027
10,090,526

4,225,718
4,202,156
4,254,971
4,242,478

621,928 977,437 383,887 308,882
640,873 1.018,290 387,257 318,946
627,317 977,578 391,814 317,48(5
623,124
391,045 316,780

5,687,591
5.675,493
5,69B,500
5,747,741

935,033
939,620
919,816
910,913

1,275.156
1,324,889
1,209,987
lr 259,915

530,542
535,242
£33,820
534,280

715,865
606,842 57,075
845,073 74,608
606,716 56,530

91,476
80,3fi2
88,886
83,390

131,000
123,575
132,698
131,421

20,867
20,004
21,637
21,892

4,490,831
4,397,744
4,476,172
4,521,258

606,679
598,326
625,570
609,060

257,894 15,987
260,307 15,814
259,834 16,359
263,316 15,537

Total.

101
101
101
101

I
!
i
|
!

San
St.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. City.
cisco.

724,076
725,890
745,716
744,896

314,068
308,946
311,677
331,093

4,558,126
4,465,513
4,543,847
4,589,777

612,351
003.911
631,423
614,574

794,077
806)526
816.000
815,292

333,511
328,904
331,932
350,517

248,085
248,610
241.950
251i385

1,178,054
1,146,003
1,171.557
1,210,002

258,382
520.223
480', 154
416,269

30.179
160,377
101,495
73,310

57.841 52,231
112', 798 38,864
87,453 34,458
82,628 18,434

28,683
39,022
26,001
19,473

42,492
106,574
(59,705
67,658

767,838
3S.723 29,212 3-1.571 5,845 10,903
47,887 13,753 45)117 21)339 27,271 1,286,465
9,331 29,878 15,330 21,253 1,047,074
31)758
800,423
25,903 6,670 21,013 11,43G 13,828

1250

FEDERAL RESERVE BULLETIN.

DECEMBER 1,

1918.

Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve bank
cities and in Federal Reserve branch cities, as at close of business on Fridays from Oct. 25 to Nov. 15,1918—Continued.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
[In thousands of dollars; i. e., 000 omitted.]
Boston.
Number of reporting
banks:
Oct. 25
Nov. 1
Nov. 8
Nov. 15
United States bonds to
secure circulation:
Oct. 25
Nov.l
Nov. 8
Nov.15
Other United States
bonds, including Liberty bonds:
Oct. 25
Nov.l
Nov.8
Nov. 15
United States certificates
of indebtedness:
Oct. 25
Nov.l
Nov.8
Nov.15
Total United
States
securities owned:
Oct. 25
Nov.l
Nov.8
Nov.15
Loans secured by United
States bonds and certificates:
Oct. 25
Nov.l
Nov.8
Nov.15
Other loans and investents:
Oct. 25
Nov.l
Nov.8
Nov.15
Total loans and investments:
Oct. 25
Nov.l
Nov.8
Nov. 15
Reserve with Federal
Reserve banks:
Oct. 25
Nov.l
Nov.8
Nov.15
Gash in vault:
Oct. 25
Nov.l
Nov.8
Nov.15
Net demand deposits on
which reserve is computed:
Oct. 25
Nov.l
Nov.8
Nov.15
Time deposits:
Oct. 25
Nov.l
Nov.8
Nov.15
Total net deposits on
which reserve is computed:
Oct. 25
Nov.l
Nov.8
Nov.15
Government deposits:
Oct. 25
Nov.l
Nov.8
Nov.15




i

ew

.7r\v\r
OiK.

70
70
71
71
4,278
4,278
4,278
4,278

Philadelphia.

Cleveland.

Richmond.

39
39
39
39

San
St.
Chicago. Louis. Minne- i Kansas Dallas. Franapolis. | City.
cisco.

Atlanta.

Total.

254
254
255
255

7

36,728 j 7,487
36.518 ! 7,487
36^879 7,487
36,879 7,487

4,471
4,471
4,471
4,471

2,098
2,098
2,098
2,097

3,600 !
3,600 i
3,600
3,600

1,119
1,119
1,119
1,119

10,556
10,556
10,555
10,555

2,340
2,340
2,340
2,340

4,596
4,596
4,596
4,597

4,060
4,311
4,308
4,060

18,400
18,400
18,400
18,400

99,733
99,774
100,131

19,776
19,237
14,442
12,928

336,351
326,121
314,840
309,379

78,880
72,785
63,485
61,311

21,477
18,718
18,520
16,336

7,414
6,940
6,930
6,881

6,206
5,295
3,436
3,416

91,552
91,169
81,152
73,573

31,014
27,425
25,927
24,901

4,776
4,655
4,465
4,615

8,979
10,170
11,090
9,798

7,532
6,515
6,501
8,768

6,378
7,720
8,134

620,335
596,750
558,922
539,314

55,339
52,712
61,947
58,524

366,066
347,423
381,250
440,211

44,263
42,533
35,808
35,735

26,470
22,584
23,212
23,661

8,464
8,459
7,623
6,694

8,123
8,309
6,947
8,148

38,860 24,327
33,641 23,391
34,312 21,043
32,750

4,114
4,061
3,073
3,025

16,428
14,256
12,598
12,388

5,672
5,292
4,455
4,967

30,929
27,387
24,186
24,487

629,055
590,048
616,454
669,423

79,393
76,227
80,667
75,730

739,145
710,062
732,969
786,469

130,630
122,805
106,780
104,533

52,418 17,976 17,929
45,773 17,497 17,204
46,203 16,651 13,983
44,468 15,672 15,164

65,897
61,372
57,525
54,289

11,230
11,056
9,878
9,980

30,003
29,022
28,284
26,783

17,264
16,118
15,264
17,795

55,707
53,507
50,720
50,295

1,349,123
1,286,572
1,275,507
1,308,620

98,130
90,155
90,449

579,628
622,535
573,430
586,510

154,529
146,310
157,909
156,104

17,609
19,313
18,846
19,161

15,486
16,114
16,676
17,041

4,896
4,904
5,528

62,853 14,183
79,779 15,182
77,252 16,723
72,752 18,535

6,139
6,318
5,593
5,487

1,259
1,336
1,432
1,463

2,536
2,410
2,564
2,612

6,117
5,718
5,678
5,439

961,502
1,010,500
971,456
979,487

555,726
587,526
544,619
559,666

3,871,086
3,858,505
3,917,033
3,896,670

551,246
570,271
558,374
554,493

284,554
283,312
286,252
284,182

75,194
81,239
81,767
80,215

63,055
60,785
61,429
60,741

891,594
893,493
882,501
872,807

278,661
280,369
275,426
271,217

140,860
132,805
127,567
122,551

178,881
176,738
177,400
171,936

42,342
42,984
44,243
43,544

208,467 7,141,666
206,914 7,174,941
211,334 7,167,945
210,801 7,128,823

733,249
753,908
715,735
724,251

5,189,859
5,191,102
5,223,432
5,269,649

836,405
839,386
823,063
815,130

354,581
348,398
351,301
347,811

108,656
114,850
115,094
112,928

84,017
82,975
80,316
81,433

1,085,978
1,099,201
1,076,336
1,053,001

358,741
356,923
349,674
344,041

158,229
150,179
143,038
138,018

210,143
207,096
207,116
200,182

62,142
61,512
62,071
63,951

270,291 9,452,291
266,139 9,471,669
267,732 9,414,908
266,535

67,957 687,502
53,869 582,450
57,890 618,295
45,146 577,662

63,299
51,536
68,984
50,973

25,928
18,598
23,409
20,352

6,630
5,620
6,360
6,367

8,074
6,618
6,571
5,589

107,530
99,468
104,694
106,265

28,890
25,457
26,337
22,566

11,185 23,222
11,644 15,080
11,676
10,488 15,791

4,320
2,847
3,255
3,630

22,636
17,915
20,754
19,240

1,057,173
891,102
966,920
884,069

19,178
17,671
16,016
15,327

116,719
110,551
118,676
116,580

17,322
16,322
17,817
17,955

7,109
8,076
7,183
8,290

1,460
1,482
1,532
1,582

4,147
3,792
4,171

35,290
33,670
35,753
34,857

6,449
6,377
6,757
6,615

3,169
3,122
3,303
3,138

5,660
4,608
4,990
5,145

224,063
213,372

521,247
521,581
528,647
529,980

4,181,100
4,087,003
4,166,137
4,199,132

535,310
525,527
554,408
537,704

169,165
164,637
193,179
175,267

60,187
59,228
59,183
63,409

45,161
42,611
43,047
43,014

738,621
709,063
726,477
750,717

184,070 99,247 137,707
176,033
178,107 94,100 126,817 34,164 164,385
182,281
135,437 37,694 169,874
180,771 96,918 151,826 38,871 172,763

6,883,111
6,707,223
6,893,619
6,940,372

26,107
21,225
25,481
22,366

205,034
209,144
208,707
211,362

9,175
9,277
9,010

107,575
106,509
107,518
108,002

5,612
5,498
5,513
4,142

14,104
14,216
14,347
14,737

139,880
130,717
141,027
140,959

529,079
527,949
536,291
536,690

4,228,416
4,135,267
4,214,300
4,247,908

538,063
528,310
557, 111
540,377

201,438
196,590
225,434
207,668

61,871
60,887
60,837
64,652

49,392
46,876
47,351
47,435

770,901
739,228
759,022
783,216

149,215
128,721
117,587
95,776

225,400
462,902
434,298
383,622

26,461
149,932
95,444
69,037

17,641
31,227
29,418
28,017

18,175
15,824
10,104
6,616

19,168
13,159
7,884
7,564

131,531
125,929
116,583
107,442

2,815
2,459
2,844
2,666

5,089
4,887
5,161
5,209

221,535

53,605 16,625
53,415 16,500
53,519 16,680
53,478 16,752

7,881
7,880
7,845

2,875
2,844
2,848
2,863

8,224
8,055
8,264
7,626

596,788
585,281
600,794
599,041

196,440
190,434
194,632
193,112

104,235
99,050
102,259
101,944

140,099
129,181
137,801
154,180

36,126
35,017
38,548
39,730

178,500
166,802
172,353
175,051

7,034,560
6,855,591
7,045,939
7,091,993

28,426 28,154
83,814 38,934
54,193
48,300 21,752

15,791
4,586
4,103
3,314

20,043
25,433
16,769
12,449

4,413
13,096
9,024
7,162

6,047
17,271
13,397
8,579

818,514
692,188

7,972

DECEMBER 1,

1251

FEDERAL RESERVE BULLETIN".

1918.

Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve bank
cities and in Federal Reserve branch cities, as at close of business on Fridays from Oct. 25 to Nov. 15,1918—Continued.
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES.
[In thousands of dollars; i. e., 000 omitted .]
Cleveland.
Number of reporting banks.
Oct. 25
Nov.l
Nov. 8
Nov. 15
United States bonds to secure circulation:
Oct. 25
Nov. 1
Nov. 8
Nov. 15
Otiier United States bonds, including Liberty
bonds:
Oct. 25
No v. 1
N o v. 8
Nov. 15
United States certificates of indebtedness:
Oct. 25
Nov.l
Nov. 8
1
Nov. 15
Total United States securities owned:
Oct. 25
Nov. 1
Nov. 8
Nov. 15
Loans secured by United States bonds and eertifieates:
'
Oct. 25
Nov.l
Nov. 8
Nov. 15
Other loans and investments:
Oct. 25
Nov.l
Nov. 8
Oct. 15
Total loans <uid investments.
Oct. 25
Nov.l
Nov. 8
Nov. 15
Reserve with Federal Reserve banks:
Oct. 25
No .1
Nov.S
Nov. 15
Cash in vault:
Oct. 25
Nov. 1,
Nov. 8
Nov. 15
Net demand deposit on which reserve is computed:
Oct. 25
Nov. 1
Nov.S
Nov. 1»
Time deDosits:
Oc-c."2o

Nov.l
Nov. 8
Nov. 15
Total not deposits on which reserve is computed 1
0 (• T.•. 25
Nov.l
Nov.S
No v. 15
Government deposits:
Oci.25
Nov.l
Nov. 8
Nov. 15




:

Richmond.

Chicago, i St. Louis.

Kansas
City.

I Da!!,,.

17
17
17
17

6
6

28
28
28
28

149
149
149
149

Total.

3fl
36
36
36

12
12
12
12

12
12
12
12

4,991
4,991
4,991
4,848

4,685
5,085
5,085
5,085

1,805
1,805
1,805
1,805

5,330
5,330
5,330
5,330

4,487
4,487 I
4,487
4,487

1,255
1,255
1'.255
1,255

8,485
8,485
8.485
8;485

55,700
56,220
56,279
56,136

81,839
76,196
71.569
71i758

:
I
!
|
!
j
i
i
!
!
:

20
20
20
20

24,722
24,782
24,841
24,841

-!
:
!
j
i
!
i
!
!
!
i
i
:
:

18
18
IS
IS

7,253
6,237
5,673
6', 751

25,009
23,096
19,986
18,362

19,826
39; 153
18.464
16;950

8,273
6,705
6,124
5,981

7,216
7,093 !
6,281 |
6,434 I

2,484
2,289
2,215
2,375

14,585
15,314
14,994
14,841

166,485
156,383
145,306
143,452

26,220
25,952
26,288
23,199

12,728
12,412
11,2*2
11,282

23,310
22,935
18;844
23,023

20,432
27,743
27,436
29,225

5,005
5,031
4,319
4,751

12.367 !
12,354 !
10,269 I
10,381 <

948
1,068
890
790

29,162
26,555
24,098
26,327

139,173
134,050
124,026
134,981

132,781
126.930
122; 698
125.798

24,972
23,640
21,946
22,881

53,004
51,11.6
43,915
46,470

51,063
49,001
47,705
47,980

IS,609
17,066
15.773
1(; Of55

24,070
23,034
21,037
21,302

4.687
4>!2
4,360
4,420

£2.232
50;354
48,177
49,653

361,418
346,653
325,611
334,569

10,721
11,934
li;750
12.002

7.707
?; 440
6.991
6i 996

3,236
3,364
3,422
3,396

4,812
4,899
4,891
4,775

105
225
225
211

82,757
81,906
81,340
79,914

151.065
153;112
150,653
149,816

11,92S

14,534
14,522
13,826

223,603
222,432
224,239
220,704

1,523,393
1,536,671
1,541,320
1,517,798

45,330 i
56.231 i
56,337 I
57,227 !

9,053
9,559 I
9,559
9,728

5,297
4.623
5', 910
5,445

86,261
98.275
99.085
99,810

520,945 !
521,785 i
529.835 !
oli;720 I

115,985
111,150
113.788
115'? 472

155,900 !
167,252 I
165.906 i
165,489 j

261,210 I
261,500
281,137
260,827

899,056 •
700,820
712,996 .
694,745 I

150,010 I
147.349 i
145', 293 i
148,081 j

219,625 ;I
230,302
221,571 :
223,961 ;

319,980
317,9-il
315.833
315:803

104.602
102,336
100,535
99,375

179,917
181,945
176,581
175,923

16,720
19.371
19,107
18,487

281.132
277', 409
273,326
275,802

1,971,072
1,977,473
1,970,242
1,952,177

52.269 I
51,764 I
46,412 !
49,488 i

11,273 I
10,940
11,513
11,957

13,435
17,341
15,615
14,092

=
j
!
!

20,257
20.837
21,347
21,401

7,501
6.948
7,2S3
7,230

38,132
13,117
15, S02
15,166

658
1.236
liSfiO
1,769

28,437
21,931
22.025
23; 239

151,960
144,114
141,357
144,342

fl, 215
6,057
6,886
6,952

6,599
7,792
7,225
7,106

I
I
I
!

10,084
10,706
11,184
12,447

4,446
4,535
4,122
4,772

5,689
5,810
5,650
5,312

442
553
G3S
570

8, G66
li;316
8,896
9,737

57,842
63,159
62,034
64,246

147,097
MS, 470
119,121
158,209

54,968 I
56,379 I
59,139 I
60;310 I

U S , 768
116,857
113,788
113,000

8,590
10.257
10'. 545
10; 833

1,112,196
1,139.946
1,137'. 307
1,177; 876

147.898
14,872 j
14s: 993
14,5.15
150,034 ! 14.548 !
150,135
14;408 I

30,474
30,709
30,833
30,940

3,413
4,278
4,253
4", 319

167,222
164,016
i.G3,3-;o
165;274
83.062
82', 998
83,084
83,397

127,910
126,070
123.038
122,282

10,050
12,090
12,368
12,081

192,141
.188/015
188,265
190,294

1,2*3,945
1,262,638
1,260,186
1,300,310

1,874
5,118
5,087
3,460

95,560
118;186
119,017
90,499

15,671 !
16.270!
17,433 !
17,320
427,662!
422,405 '
424,598 ;
436,227 i

101,575
101,055
103,700
110,214

116,314 :
120.507 I
113;073 •
123,779 ;

65,467 j
65,549 [
!
65,604
64,878 j

11,286
11,481
31,547
11,646

47,906 •
48,621 ;
47,873 j
46,535 !

4-17.302 !
442,009 ,
444,279 !
455,090 ;

104,901
104,499
107,164
113,738

36,511 ! 14,069
53,494
8', 052
74,978 : 5:432
51,147
3;S15

130,6S5 i 191,466
135.093 ! 193.168 !
127', 435 ! 194', 134 !
137,740 i 203,250 I

59,430 i
60,734 I
63,503 I
64,632 I
, t
23,046 ; 4.215 I 7,8?
24,975 I li'. 763 j 5,980
17,406 ! 7'. 288 \ 3,530
12,927 ! 12; 702 : 2,917

7,910 !
8,427 !
5,046 ;
3.337 j

46
377
250 I

I

401.378
407>144
407,776
406,258

1252

FEDERAL BESEBVE BULLETIN.

PKCKMBER 1,

1918.

IMPORTS AND EXPORTS OF GOLD AND SILVER.
Gold imports and exports into and from the United States.
[In thousands of dollars: i. o.f 000 omitted.]

Ten days \ Eleven i Ten days
ending I days end- ' ending
Oct. 20,
1918.

1 , 1918. :

Total Jan.
1 to Nov. 9,
1917.

Total

| ing Oct. ; Nov. 10,
31, 1918.
1918.

5

328

593 i

223 ;

"*77*

Ore a n d ba3e bullion
United States mint; or assay offlco b a r s .
Bullion, refined
United States coin
Foreign coin

86
5

"167";

12,969
6
38,717
6.784
' 178

13,952
114
386,369
53,692
95,055

684 !

390 j

58,654

549,182

129
1,035
6,817
30,163

210
46,594
38,897
268,878

38,144
. ... _..

354,579

405 !

Total.
EXPORTS.

'Domestic:

bi

United States Tnint o-' assay office1 b a r s . .
Bullion refinod
Coin
"

.

7
60 'i

i

63
366

1,153 i

2,342 I

!

427

1,220 i

2,340

i

Total

-—

Foreign:
Bullion refined
Coin

!

J .

i
!

Total

!

!

427

1,220 !

31
7,032

425
425
2,349

7,063

38,569

361,642

Excess of gold imports over exports since Jan. 1,1918, $20,085,000. Excess of gold imports over exports since Aug. 1,1914, 51,070,389,000.

Silver imports and exports into and from the United States.
[In thousands of dollars: i. e., 000 omitted.]
Ten days
ending
Oct. 20,
1918.

Ten days
ending
Oct. 31,
j

1918.

Total Jan. Total Jan.
1 to Oct.
1 to Oct.
31,1917.
31, 1918.

T e n days
ending
Nov. 10,
1918.

Total Jan.
1 to Nov.
10,1918.

IMPOSTS.

Ore and base bullion
United States mint or assay office bars..
Bullion, refined
United States coin
Foreign coin

1,494 I

1,451

2,509
1
153
50
195

36,677
51
19,818
1,037
3,942

27,867
131
6,334
991 ,
2,777 i

2,908

61,555

38,100

5,405
993
49

4
6,780
9,999
153

18
33,887
149,628
3,033

156
3,053
60,234
909

3.486
i;452
9

18
37,373
151,080
3,042

6,447

16,930

186,568

64,352

4,947

191,513

284
345

643
195

5,058
5,766

2,669
2,196

463
7

5,52!
5,778

310 I
22!
158

Total

192
27
166

20, W0
1.064
4,108
63,391

EXPORTS.

Domestic:
Ore and base bullion
United States mint or assay office bars..,
Bullion, refined
,
Coin
Total.
Foreign:
Bullion, refined..
Coin
Total
Total exports..

629

838

10,824

4,865

470

11,294

7,076

17,774

197,390

69.217

5,417

202,8(57

Excess of silver exports over imports since Jan. 1,1918, $139,418,000. Excess of silver exports over imports since Aug. 1,1914, §237,708,000.




DECEMBER 1, 1918.

FEDERAL RESERVE

1258

BULLETIN.

Estimated general slock of money, money held by Treasury and by the Federal Reserve system,, and all other money in the
United States Nov. 1, 1918.

I
General stock of
money in the
United States.

Held in the
United States
Treasury as
assets of the
Government.1

S3,079,784,766

3303.339,350

429,846,930
235,004,206

3,874,531

346,681,016
2,705', 737,855
71,647,260 i
721,471,138 !

7,493,225
32,590,498
1,010,839
20,010,397

Amount per
i Held outside the capita outside
the United
i United States States Treas! Treasury and
ury and
! Federal Reserve the Federal
I
system.
Reserve
system.

30,972,885

Held by or for
Federal Reserve
Banks and
agents.
i

Gold coin 2
Gold certificates
Standard silver dollars
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve Bank notes..
National-bank notes
Total:
Nov. 1,1918...
Oct. 1, 1918..
Sept. 1,1918..
Aug. 1, 1918...
July 1, 1918...
June 1, 1918..
May 1, 1918..,
A pr. 1,1918...
Mar. 1,1918...
Feb. 1, 1918...
Jan. 1. 1918...
Dec. 1,1917...
Nov. 1,1917..,
Oct. 1,1917...
Sept. 1,1917..
Aug. 1, 1917...
July 1,1917...

T

7,590,173,171.
7,322,423,723
7,092,955,371
6,895,089,799
6,742,225,784
6,615,007,782
6,540,954,630
6,480,181,525
6,351,548,056
6,271,603,039
6,256,198,271
6,020,127,909
5,823,854.335
5.642,264; 856
5;553,661,154
5,513.292; 894
5,480)009,884

399,321,725
380,246,203
369,937,060
390,798,058
356,124,750
348,322,704
321,192/308
339,850,674
330,927.176
332,576'. 125
277,043)358
248,167,148
242,265,377
242,469,027
239)654,267
248,268,325
253,671,614

..429,267,058 \
'472; 871,210 I
7,243,265 ;
3 1,200,390 I
* 45,383,025
141,334.255
7,015:841
20,823)757

!
!
!
I

2,125,198,801 !
2.084,774,897 !
2". 070,371,803 !
2)054,455,993 '
2.018,361,825
1)983,790,097
1,909.594,674
1,873)524.132 I
1,827,126)208 j
1.834,102,608 |
1)723.570.291 !
1,640,773)746 j
1,546,124,691 j
1,429,422,432 I
I', 373,987,061 '
1,395,982,728
1,280.880,714

8428.611,439
445)695,709
81,329,800
308)489,561
229,869,285
1,811.419
293.804)766
2,531)813,102
63,020,580
880.606,9S4
0,065,652,645
4,857,402,623
4,852,646,508
4,449,835,748
4,367,739,209
1,282,888,981
4,310)167,648
4)266,800,719
4,193,494,672
4,104,924.306
4,255,584,622
4,131,187,015
4,035,464,267
3,970,373,397
3,940.019,826
3.869', 041,841
?/. 9-15) 457,556

?,47.50
45.69
43.83
41.97
41.31
40.51
40.82
40.47
39.83
39.04
40.53
39.40
38.54
37.97
37.73
37.10
37.88

I
}

Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationalbank notes. Federal Reserve notes, and Federal Reserve bank notes.
l}
Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents,
* Includes standard silver dollars.
'<Includes Treasury notes of 1890.




1254

FEDERAL BESEEVE BULLETIN.

DECEMBEE 1,

1918.

DISCOUNT RATES.
Discount rates of each Federal Reserve Banh approved by the Federal Reserve Board up to Nov. 30, 1918.
Maturities.
Discounts.

Federal Reserve Bank.

Boston
New York i . .
Philadelphia.,
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
1

Within 15
days,
including
member
banks'
collateral
notes.

16 to 60
days.

61 to 90
days.

Agricultural and
live-stock
paper
over 90
days.

Trade acceptances.
Secured by TJ. S. certificates of indebtedness or Liberty loan
bonds.
Within 15
days, including
member
banks'
collateral
notes.

1 to C
O
days,
inclusive.

61 to 90
days,
inclusive.

16 to 90
days.

2 4$
4J
43:
4^:
2 43;

I4J;

4*

24.1
*4£
44
2 41
4*
44

Rate of 3 to 4$ per cent for 1-day discounts in connection with the loan operations of the Government. Rates for discounted bankers'
acceptances maturing within 15 days, 4 per cent; withm 10 to C days, 44 per cent; and within (;l to (-0 days, 41 per cent.
O
2 Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper re-discounted has been taken by discounting member banks
at rate not exceeding interest rate on bonds.
8
Rate for trade acceptances maturing within 15 days, 4i per cent.
NOTE 1.—Acceptances purchased in open market, minimum rate 4 per cent.
NOTE 2.—Rates for commodity paper have "
„ , .a. have been merged with those for commercial paper of corresponding maturities.
NOTE 3.—In case the 60-day trade acceptance rate is higher than the 15-day discount fate, trade acceptances maturing within 15 davs will be
taken at the lower rate.
NOTE 4.—Whenever application is made by ineiriber banks for renewal of 15-day paper, the Federal Reserve Banks may charge a rate not
exceeding that for 90-day paper of the same class.




INDEX TO VOLUME 4.
Page.

Page

Acceptances—Continued.
Acceptance corporation organized to finance cotSugar in bond, acceptance of drafts drawn
ton crop
"
930,939
against
520
Acceptances:
Time allowance for holding drafts after preAcceptance by member banks of drafts drawn
sentment for payment
1119
by dealers engaged in the export and domesTrade acceptances—
tic sale of the same character and class of
Amounts discounted by Federal Reserve
goods
438
Banks, statements showing
53,
Acceptance corporation, paper of, eligibility of. 634
135, 229, 342, 463, 552, 667, 776, 896,1024,1145,1244
Acceptance liabilities of national banks and
Amounts held bv Federal Reserve Banks,
State institutions
1114
statement showing342,
Acceptances without documents attached
311
463, 552, 668; 776, 897,1024,1146,1244
Bankers—
Bill of exchange drawn against actually
Acceptances growing out of export transacexisting value
.
_
974
tions
1
314,439
Discount if paid at certain timeL before
Bills payable elsewhere than in the United
maturity
871
States not eligible for rediscount
520
Draft drawn by a lumber corporation upon
Drafts secured by chattel mortgage on cata sales corporation, eligibility of
33
tle, eligibility of
309
Electrical goods, eligibility of drafts for
General Policy of Federal Reserve Board,
purchase of
310
regarding
257-260
Eligibility of, for rediscount
109, 971
Open market for
1054
Extension of time
870
Purchases by savings banks
953
Extract from address by Hon. W. P. G.
Banks granted authority to accept up to 100
Harding relating to
602
•oer cent of capital and surplus
13,
u
Extract from address by Hon. P. M. War80,184,296,402, 492, 597, 742, 859, 967,1100,1198
burg relating to
604
Bills discounted by each Federal Reserve Bank.
Financing sale of goods to a retail customer.
30
distributed by rates of discount
553,
Form of
200
668,777, 897,1024
Gas sold is "goods sold" within meaning of
Cattle, chattel mortgages on, as security for
437
Board's regulation
435
Canned goods, warehouse receipt for, as seInstallment plan, sales on, acceptances
curity
634
based on
437
Clearing and collection of, action of New York
Interpretation of section 5200, R. S., in
Clearing House, regarding
805,819-821
connection with
808
Discount of acceptances not paid at Federal
Insurance premium, draft drawn for
309
Reserve Bank
521
National Association of Credit Men—
Distribution of, by classes, maturities, etc
54-56, |
138, 230, 343, 464, 554, 669, 778, 898,1025,1146,1243 I
Article by J. H. Tregoe, secretary of,
Dollar exchange, drafts drawn for purpose of
relative to
1193
creating
1119
Resolutions of, regarding
606
Providing for discount if paid at maturity,
Drafts to finance sales to the United States
Government subject to limitations under seceligibility of
.
200
tion 5200, R. S
32
Secured by warehouse receipts - - : - -e
862
Draft drawn for purpose of financing sale of
Stamp tax on, ruling by Commissioner of
goods to Allied Purchasing Commission
435
Internal Revenue
977
Drafts with shipping documents conveying or
Union Discount Corporation organized to
securing title attached
198
finance cotton...
930,939
Drafts accepted by correspondent at the request
Use of, in financing cotton crop, article by
and under guarantee of national banks
311
Eufus R. Wilson, secretary of the National W'
Food Administration Grain Corporation, acAssociation of Cotton Manufacturers
713
ceptance of drafts of
976 Acts:
Growth in use of
11, 402,855 !
Amending Federal Reserve Act. (See Federal
Indorsements of
110,744 |
Act, amendments to.)
Limitations on loans by member banks
863 j
Amending State laws relating to State bank
Limitations imposed by section 5200, R. S., and
I
membership. (See Banking laws; State
section 13 of Federal Reserve Act
34, !
banks.)
311,638,808,863,867,1120 |
Consolidation of national banks
1177
Note of acceptance house or broker, eligibility
i
Creating Capital Issues Committee
304-306
P of, for rediscount
'.
108 !
Creating War Finance Corporation
300-306
Rediscounts and sales of, between Federal Rej
Federal control of railroads
296-300
P- serve Banks
777,1147 j
Federal Reserve. (See Federal Reserve Act.)
Release of shipping documents upon acceptForeign exchange bank, proposed amendment
ance of draft
634
to Federal Reserve Act creating... .-•
722-724
1255




1256

INDEX TO VOLUME 4.

Acts- -Continued.
Fa e
Liberty-bond acts—
"Second, supplement to
961
Third
306-308
Fourth
613
New legislation affecting
926, 961
Philippine National Bank Act as amended and
reenacted
728-734
;
R e d Cross, contributions to, b y national
banks
428, 498
Sale of silver dollars to provide bullion as
a means of remittance to foreign countries
366; 395-397
Adelson, L. C . appointed assistant secretary of
Federal Beserve Board
365
Advertising:
4
'Clearing m e m b e r , " use of words
1119,1216
Use of word ''Reserve "
521
Advisory Council. (See Federal Advisory Council.)
Agricultural implements, ruling of War Industries
Board relative to curtailment of use of iron and
steel i n manufacture of
1090
Agricultural paper:
Amounts held b y Federal Beserve Banks,
statements showing
53,
135, 229, 342,463, 552, 668, 776, 897,1024,1146,1244
Draining and tiling farm land, eligibility for
rediscount of notes used for
743
#
Notes for commodities used in farming, eligibility of, for rediscount
310, 312
Paper covering sale of agricultural implements,
eligibility for rediscount
1118
Silos, notes'given for purchase of, eligibility of..
971
Tractors, eligibility of notes given in payment
for
309
Aliens, ruling of Treasury Department relating to
income t a x on deposits of
163
Allen, Sherman P., resignation of, as assistant secret a r y of Federal Reserve Board
365
Allied Governments:
Loans to, b v the United States
21
War debts of
267-285, 375-394,1057-1077
(See also Foreign Governments.)
Allied Purchasing Commission:
Eligibility of drafts drawn for financing sale of
goods to
435
Stamp t a x on drafts drawn to finance sales of
goods to, ruling b y Commissioner of Internal
Be venue regarding
614, 972,1218
Alterations on notes
1118
Amendments to banking laws. (See Banking laws;
Federal Reserve Act.)
American Bankers' Association:
Report of Committee of Five regarding check
clearing and collection charges
962
Suggested amendment to Federal Reserve Act
relating to clearing and collection of c h e c k s . .
964
American Foreign Banking Corporation:
Branch banks of
735
Stockholders of
736
Annual reports:
Federal Reserve Board, transmitted to Congress
69, 79
Secretary of t h e Treasury, extracts from
18-24
Argentine:
Banking operations of the National City Bank
of New York in
943
Condition of principal banks in
739
Asia Banking Corporation, organization of, to
engage in foreign banking
818
Assessment for expenses of the Federal Reserve
Board:
January-June
24
July-December
608




Attorney General of the United States:
p
Opinions by—
*g©.
Charges for collection and payment of
checks
367-370
Granting of fiduciary powers to national
banks in New York
12
Australia, war debt of
272
Austria:
War bonds issued
1062
War debt of
283,1075
Austro-Hungarian Bank, statement showing condition of, 1913-1917...'
245
Baltimore, branch of Federal Reserve Bank established in
256
Bank clerks:
Classification of, as to nonproductive occupations under draft regulations
t..
597
Status of, under selective draft laws
957
Bank of France. (See France.)
Bank of Italy. (See Italy.)
Bank of Japan. (See Japan.)
Bank of Netherlands. (See Netherlands.)
Bank of Norway. (.See Norway.)
Bank of Spain. (See Spain.)
Bank of Sweden. (See Sweden.)
Bank transactions:
Plan for obtaining reports on
821-828
Weekly figures of clearing-house bank debits
to deposit account. 1002-1004,1103-1106,1206-1209
Banking laws, amendments to:
As reported by Committees on Banldng and
Currency of the Senate and House
414-434
Authorizing national banks to subscribe to
Red Cross
428
As passed
498
Bonds of officers and employees of national
banks
*
422
Branches of national banks
423
Circulating notes of rechartered banks
422
Consolidation of national banking associations
430
As passed
1177
Overdrafts
421
Penalty for false statements in obtaining
loans
" 424
.
Sale of bonds to redeem circulation oi a
bank in voluntary liquidation
425
Section 4147, R. S.—Oaths of nationalbank directors
421
Section 5137, R. S.—Purchase of real estate
by national bank for transaction of its
business
425
Section 5172, R. 8.—Engraved signatures
on national-bank currency
423
Section 5209, II. S.—Embezzlement, false
entiles, etc
426
Sections 5235, 5236, 11. S.—Guaranty fund
for bank deposits
429
Section 5239, R. S.—Providing penalties
for violation of banking laws
419
Usurious rates of interest
427
Federal Reserve Act, amendments to. (See
Federal Reserve Act.)
Laws relating to State bank membership—
Georgia/
978
Kentucky
315,526
Mississippi
315
New Jersey
,.
166
New York laws, amendment to, relative to
reserves on deposits
524
Provision in bond act subjecting notes secured
b y Liberty bonds and certificates of indebtedness to limitations under section 5200, R. S. 1055
Section 5208, R. S.—Certification of check
949

1XDEX TO VOLUME 4.

1257

Page.
Banking laws, amendments to -Continued.
^age- Business failures. (See Commercial failures.)
Canada, war expenditures, war debts, etc., of
271
Section 5209, R. S.—Embezzlement, false
entries, etc.. as passed
950 Canned goods, warehouse receipts for, eligibility as
acceptance.
(534
Banking laws. (See also Acts; Federal Reserve Act.)
Canners:
Bill-of-lading drafts, collection of, by Federal
Reserve Banks
438
Financial assistance rendered to, by War
Bonds:
Finance Corporation
!
831
Federal land bank—
Temporary credits to, recommended
607
Eligibility of
1216 Capital Issues Committee:
Not eligible as collateral for promissory
Act creating, text of
304-306
notes of member banks
33
Advisory committee announced
73, 77
Payment of interest coupons on, through
Brown, James B., designated as member of
364
Federal Reserve Banks'.
".. 435
Chandler, Dr. J. A. C , designated as advisor in
Right of national banks to make loans
connection with erection of school buildings.. 266
Conferences held with representatives of comsecured by
035
mercial bodies
156,170
Liberty. (See Liberty bonds.)
Branches of Federal Reserve Bants:
Delano, Hon. F. A., designated as member of..
364
Directors of—
Drum, John S., designated as member of
364
Birmingham
597
Flower, H. C , designated as member of
364
Cincinnati
14
Goff, F. H., designated as member of
364
Denver
14
Hamlin, Hon. C. S., deignated as member of..
364
El Paso
365
Instructions to applicants with respect to issues
Jacksonville
596
of bonds, stocks, etc
169
Little Rock
1056
Letter of Secretary of the Treasury to Samuel
Louisville
14
Gompers relative to restriction" of building
Memphis
817
operations during the war
264
New Orleans
15, 817
Local committees appointed throughout the
Omaha
15
Federal Reserve districts
156,167
Pittsburgh
15
Members of, nominated by the President
364
Portland
15
Organization of.
'
73, 77,156,167
Salt Lake City
385
Press statements issued by
167Seattle
15 j
171, 263-266, 399-401,494
Spokane
15
Report of work done to May 17, 1918
494
Directors of, to be elected annually
31
Report made by, to the Federal Reserve Board 696.
Establishment of, at—
704-708
Baltimore
10, 256
Resolutions of Federal Reserve Board comBirmingham.
695
mending advisory committee and others for
Detroit
10, 256
services rendered
697
El Paso
256,365,597
Rules and regulations of new committee
627-833
Jacksonville
596, 695
Superseded by new committee
364
Little Rock
1056 Capital stock of Federal Reserve Banks, dividends
Memphis
597
on, calculation of, when surrendered
201
Salt Lake City.,..
256, 365 Cattle:
Branches, foreign, of American banks. (See Foreign
As readily marketable commodity, ruling oi'
branches.)
Board regarding
309
Branches of national banks, bill authorizing estabChattel mortgages on, as security for trade aclishment of, as reported bv committees of House
ceptance
437
and Senate^
423
Drafts secured bv chattel mortgage on, eligiBranches of State baaks, membership of
522
bility of
1
1
'....I.
871
Brazil:
Cattlemen:
Banking operations of the Mercantile Bank of
Financial assistance rendered to, by War
the Americas in
737
Finance Corporation
691, 806, 828, 950
Banking operations of the National City Bank of
Certificates of indebtedness. (See Treasury certifiNew York in
943
cates of indebtedness.)
British East Indies, banking operations of National
Charters issued to national banks
15.
City Bank of New York in
946
92,184, 295,403, 508, 609, 740, 858, 967,1099,1197
British Government. (See Great Britain.)
Charts:
Broderick, J. A., appointment of, as secretary of the
Cash reserves and excess reserves of the Federal
Board
\
817
Reserve Banks, January, 1917-Februarv,
Brown, James B., designated as member of Capital
1918
'.
:' . 227
Issues Committee
364
Deposits, loans, and investments of national
Bullion:
banks—
Instructions in connection with the granting of
1913-1917
337
licenses for exportation of
499-501
1914-1918
503
licenses granted by Board in connection with
Deposits, loans, and investments of member
exportation of
501
banks in 100 leading cities
665
Bureau of Efficiency, report by, on consolidation of
Deposits and reserves of Federal Reserve Banks.
subtreasuries with Federal Reserve Banks
172-179
January-July, 1918
771
Business conditions throughout the Federal Reserve
Earning assets of Federal Reserve Banks, Jandistricts
35-52,
uary-July, 1918
770
111-129, 203-222, 319-336, 441-458, 527-547,639Exchange rates in New York on belligerent
660; 746-767, 873-892, 979-995,1125-1141. 1219-1237
countries, 1914-1918
.' 841. 1200




1258

INDEX TO VOLUME

| Coin, bullion, and currency:
Page.
Charts—Continued.
|
Licenses granted by Board in connection with
Exchange rates in New York on neutral counexportation of
501
tries, 1914-1918
843,1201
Instructions in connection with the granting of
Exchange rates in New York on countries with
licenses for exportation of
499-501
silver standard. 1914-1918
844,1202
Exchange rates in Switzerland on Berlin and
Collateral notes of member banks:
Vienna, 1914-1918
842
Amounts discounted by Federal Reserve Banks,
Federal Reserve notes outstanding and in cirstatements showing
53,
culation during 1917, also amounts of gold
135, 229, 342,463, 552, 667, 776, 896,1024,1145
and required paper held by Federal Reserve
Amounts held by Federal Reserve Banks,
agents
133
statements showing
53,
Foreign exchange rates in Sweden
381
135,229, 342,463, 668, 776, 897,1024,1146,1244
Foreign exchange rates in Switzerland
391
Colombia:
Loans and investments, demand and time deBanking operations of the Mercantile Bank of
posits, and Government deposits of New
the Americas in
737
York Clearing House banks, April-DecemBanking r operations of the National City Bank
ber, 1917
28
of" New York
"
947
Movement of prices, 1914-1918
505 Commercial failures 'in.
reported:
Net deposit and Federal Reserve note liabiliBy months
16,
ties, total reserves, and ratio of total reserves
89,183, 295,403,510, 609,741,856,967,1099,1197
to aggregate net deposit and Federal Reserve
During the year 1917
89
note liability during 1917
131
Commercial National Bank, Washington, D. C,
Reserves, circulation, and security holdings of
foreign branches of
735
Bank of England, Bank of France, and German Reichsbank
999,1000,1001 Commercial paper:
Amounts discounted by Federal Reserve Banks,
Reserves and deposits of Federal Reserve Banks,
statements showing
52-58,134January-July, 1918
771
141, 228-233, 341-346, 462-467, 551-558, 666-672,
Outline of organization of Federal Reserve
775-781, 895-901,1022-1029,1142-1147,1241-1244
Banks
374
Amounts discounted for three months ending
War securities and loans, amounts of, held by
December, 1917
136
member banks, January-October, 1918.. 1112,1113
Amounts held by Federal Reserve Banks, stateChattel mortgage, notes secured by, eligibility of, L
ments showing
53,
for rediscount
437, 871
135, 229, 342, 463, 552, 668, 776, 897,1024,1146,1244
Check clearing and collection:
Maturity of, when falling due on Sunday or
Acceptances, clearing and collection of.. 805, 819-821
legal holiday
108
Advertising "clearing member"
1119,1216
Nonmember bank, eligibility of paper indorsed
Amendment to rules of New York Clearing
by
520
House rules relative to charges
1056
Notes of a credit or finance company not eligible
Approval by Board of recommendations of
for rediscount
197
transit managers for change in practice
363,371
Note of acceptance house or broker, eligibility
Bill of lading drafts, collection of, by Federal
of, for rediscount
108
Reserve Banks
436
Rediscount of paper secured by war-savings
Charges for collection abolished by Federal
stamps.
637
Reserve Banks
931
Commissioner of Internal Revenue:
Conference of committee of American Bankers'
Banking committees on taxation announced by. 1194
Association with Federal Reserve Board
962
Rulings by—
Currency, payment of expenses incident to
Stamp tax on drafts in connection with
transfers of, in connection with
1093
shipments of goods to Allied Purchasing
Federal Reserve exchange drafts, limit of drawCommission
614,1218
ings of, increased from $250 to $5,000
806, 819
Stamp tax on negotiable instruments
316
Immediate credit for clearing-house items
806, 819
Stamp tax on parcel-post packages
17
Number of banks on par list for 12 months endStamp tax on renewals of promissory notes. 977
ing December 15, 1917
75
Stamp tax on trade acceptances
977
Opinion of Attorney General relative to collecTax on stock dividends
614
tion and payment of checks
367-370
Commodity pa^er:
Suggested amendment to Federal Reserve Act
Amounts discounted by Federal Reserve Banks,
submitted by committee of American Bankstatements showing
53,135
ers' Association
964
Report of Committee of Five of American BankDrafts to finance sales to United States Governers' Association on
962
ment not classed as
32
Perishable food products, eligibility of paper
Summary of transactions, by months
27,
107, 225, 340,461, 550, 663, 774, 894,1021,1161,1240
secured by
30
Transit department disbursements and service
Comptroller of the Currency:
charges for year 1917
103
Bills introduced in Congress to increase powers
of
163
•Checks, report by central executive council of
Statements by—
International High Commission relating to
518
Chile, banking operations of the National City Bank
Condition of national banks
182,1093
of New York in
944
Growth of resources of national banks
90
Liberty bond subscriptions sent in by
China:
national banks
372
Banking operations of the National City Bank
of New York in
945
New charters and capital increases during
%
Establishment of Asia Banking Corporation to
the year 1917
89
engage in banking in...
818 Conversion of Liberty bonds. (See Liberty bonds.)




INDEX TO VOLUME i.
Cotton:
Page.
Acceptance corporation organized to finance
cotton crop
:
930,939
Acceptances, use of, in financing cotton crop.. 713
Extract from address of Gov. Harding relative
to use of trade acceptances in financing cotton
purchases
602, 691
Growers and spinners, conference of, in New
Orleans and Washington.
691
Meeting of National Association of Cotton Manufacturers in New York to discuss use of acceptances in financing cotton crop
713
Warehouse Act, situation as to loans under, as
stated by R. L. Nixon, of the Department of
Agriculture
".
1094-1098
Council of State banking associations, organization
of
708-710
Counsel of Federal Reserve Board, opinions of.
(See Law department.)
Coupons on Federal land-bank bonds, payment of
interest on, through Federal Reserve Banks
435
Coupons on Liberty bonds, charges for cashing of,
statement of Secretary of the Treasury regarding.
13
Credit companies, notes of, not eligible for rediscount
197
Credit, conservation of
2,
249, 260, 486, 685, 802, 923, 924,1048
Investigation by Council of National Defense
on purchases by civilians
852
Letter of New York Federal Reserve Bank relative to
935
Preferred industries, list of, compiled by War
Industries Board
931-934
Restrictions on speculation recommended by
Liberty loan subcommittee in New York
935
Resolutions regarding, adopted by the board of
directors of the Federal Reserve Bank of New
York
741
Utah bank commissioner, letter of, regarding.. 936
War Industries Board, statement issued by, regarding
1078
Cuba, branch of National City Bank of New York
established in
938
Currency:
Concentration of gold in Federal Reserve
Banks
694
Instructions in connection with the granting of
licenses for exportation
499-501
Instructions relative to payment of expense
incident to transfers of, to" and from Federal
Reserve Banks
1093
Inflation of
.
924,1047
Licenses granted by Board in connection with
exportation of
501
Paper, amounts of, outstanding
18, 519
Stamp tax on shipments of
1215
Transportation charges borne by Federal Reserve Banks
931
(See also Money.)
Curtailment of nonessential credits.. 2,249,260,486,685
Customer's paper:
Rediscounts of, between Federal Reserve
Banks
.
778,1147
Secured by Liberty bonds for certificates of
indebtedness—
Amounts discounted by Federal Reserve
Banks
229,
342, 463, 552, 667, 775, 896, 1024, 1145,1244
Amounts held by Federal Reserve Banks.. 53,
135,229,342,463,552,668,776,897,1024,1146,1244
Delano, lion. F. A.:
Designated as member of Capital Issues Committee
364




1259

Delano, Hon. F. A.—Continued.
Page.
Resignation of, as member of Federal Reserve
BoW
587, 697
Resolutions passed by Boar A on resignation of.. 587
Denmark:
Exchange purchased and sold, first quarter
1918
835
Foreign exchange rates in
384
National Bank, statement showing condition
of
384,997
Public debt of
383
Department of Agriculture: _
Article by, on the relation of farm-credit statement to short-term credit for farmers
718-722
Investigation by, in connection with storage
conditions for perishable products
404
Investigation by, relating to financing of
grain'.
.
711-713
Joint action with Treasury Department relative to making loans to farmers
829
Statement by R. L. Nixon relative to cotton
warehouse loans
1094-1098
Department of Commerce, study by, on "Economic
Reconstruction—Analysis of Main Tendencies in
the Principal Belligerent Countries of Europe".. 1086
Department of Labor, index number of wholesale
prices to be furnished by
810-812
Deposits:
Depositaries in connection with the Liberty
loan
22
Federal Reserve Banks—
Increase in, during the year 1917
130
Movement of, January-July, 1918
768
Chart showing._ .^
"
771
Government, in connection with payment of
income and excess-profits taxes
494
Guaranty of, resolutions adopted by tho Board
relating to
595
Interest on, increase in
^
362, 690
Action taken by New York Clearing House
Association relative to
252,285-294
Statement of Gov. Harding relating t o . . 160, 285
Member banks, in 100 leading cities, JanuaryJune, 1918
I
'. - 664
Chart showing
665
National-bank deposits—
1913-1917
337
Chart showing
337
1914-1918
502
Chart showing
503
Public moneys in connection with payment of
income and excess-profits taxes
494
Ruling by Treasury Department relating to income tax on deposits of nonresident aliens.. 163
Deposits, loans, and discounts, and total investments of national banks, 1914-1918
502
Detroit, establishment of branch Federal Reserve
Bank at
10,256
Digest and rulings of the Federal Reserve Board . 571-586
Directors of branches of Federal Reserve Banks.
(See Branches of Federal Reserve Banks.)
Directors of Federal Reserve Banks:
Allen, Philip S., chosen a class B director of
Federal Reserve Bank of Boston
695, 817
Bruce, Howard, named as class C director of
Richmond bank
491
Class C, appointment of, for year 1918
13
Election of—
Amendment to act regarding
947
Classes A and B, election of, for year 1918.. 5,14
Groups, reciassification of
1055
Instructions to Federal Reserve Banks
regarding
950

1260

INDEX TO VOLUME 4.

Directors of Federal Reserve Banks—Continued.
Page. England. (See Great Britain.)
Page.
Election of—Continued.
Examination of State banks, instructions regarding. 1079
Excess-profits tax:
List of, whose terms expire December 33,
Deposits of public moneys in connection with.
494
1918
1092
Recommendation of Secretary of Treasury to
Summary of votes cast
5
chairman of Wavs and Means Committee
Time limit for voting
1215
relating to
600-602, 847--852
Metcalf, Jesse E., appointed as a class C director
of Fedora! Reserve Bank of Boston
817
Ruling of Commissioner of internal Revenue
relating to tax on stock dividends
614
Discount operations of the Federal Reserve Banks,
statements showing
52-58, Exchange rates, foreign. (See Foreign exchange
134-141, 228-233, 341-346.462-467, 551-558,666-672,
rates. 5
"
775-781, 895-901, 1022-1029, 1142-1147, 1241-1244 Executive order, regulations relative to foreign exDiscount rates:
change
81-85
Basis for figuring interest in discount transacExpenses of the Federal Reserve Board. (See
tions
T
.'
744
Federal Reserve Board.)
Changes in
487 Exports and imports:
Increase in
362
Gold
68,
By New York Federal Reserve Bank
7
152. 242, 357,481, 570, 683, 794, 914,1041,1159,1252
Month!v statement of rates in effect
67,
Silver
1041,1159,1252
152", 242, 357,482, 570, 683, 794, 914,1043,1161,1254 Export licenses. (See Licenses, export.)
Preferential rate approved in favor of customers'
Exports of coin, bullion, and currency, regulations
regarding
499-501
notes, secured bj fourth l i b e r t y loan bonds.
922
Rates prevailing in various cities, each month 812—
(See also Gold exports; Silver exports.)
815,1016-1018,1106-1108,1209-1211 Failures, commercial. (See Commercial failures.)
Re classification of
7 Farm-loan bonds. (See Federal land bank bonds.)
Farmers:
Dividends on Federal Reserve Bank stock:
Amendment to act suggested by Federal
Article by Department of Agriculture on the
Advisory Council relating to
1177
relation of farm credit statement to short
Calculation of, on stock when surrendered
201
term bank credit for farmers
718-722
Date for pavment of
521
Financial assistance rendered to, by War
Declared..."
5,593
Finance Corporation
69.1, 806, 828. 950
Tax on, ruling by Commissioner of Internal
Joint action by Treasury Department and
:i
Department of Agriculture relative to making
Iii venue
614
Division of Foreign Exchange, rulings of
864,
loans to farmers
.
829
973,1121,1217
"Notes of, for commodities used in farming,
Dollar exchange:
eligibility of, as agricultural paper
309, 310, 3.12
Amendment to act suggested by Federal AdFederal Advisory Council:
visory Council relative to
1177
Amendment to act suggested by, relative to
Drafts drawn for purpose of creating
1119
dividends on Federal Reserve Bank stock... 1177
List of countries in which, banks are drawing
Amendment to act suggested by, relative to
drafts to furnish
938
dollar exchange
1177
Policy of Board regarding exchange rates in
Conferences with Federal Reserve Board
160,
Spanish-speaking countries
158
490,49.1,931,1175
Dominican Republic, banking operations of NaExtract from address of Governor Harding betional City Bank of New York in
947
fore
1175
Draft regulations:
Bank clerks, status of, under selective draft law.
957 Federal control of railroads, text of act providing
for
296-300
Classification of bank clerks as to nonproductive
occupations
597 Federal land bank bonds:
Coupons on, payment of interest on, through
Meal tickets for use by drafted men en route
|
Federal Reserve? Banks
435
to camp, member banks requested to receive
j
Eligibility of
1216
for collection
T
938 |
Not eligible as collateral for promissory notes of
Draining and tiling farm land, eligibility for redisj
member banks
33
count of notes used for
*
743
Right of national banks to make- loans secured
Drum, John S.:
j
by
635
Designated as member of Capital Issues Committee
364 Federal land banks, statement showing condition of. 1195
Federal Reserve Act, amendments to:
Statement by, on relation of Liberty loan to war
savings stamp plan
164
As reported by respective committees on bankDutch East Indies, banking operations of the
ing and currency of the Senate and House of
National City Bank of New York in
946 ,
Representatives
414-434
Earning assets of Federal Reserve Banks, movement
!
Fiduciary powers, exercising of, by national
of, January-July, 1918
768 j
banks—
Chart showing
770 j
As reported by committee
415
Earnings of Federal Reserve Banks. (See Federal
!
As passed
948
•Reserve Banks, earnings of.)
j
Statement of Board regarding
1086
Earnings on investments of Federal Reserve. Banks,
;
Phelan bill (H. R. 11283) as passed by Senate
monthly statements of
65, j
and rejected by House. .
<
\ . 696, 714-718
151, 241, 356,480, 569, 682, 793, 913,1040,1145,1243 I
Proposed amendment creating a foreign exElectrical goods, eligibility of drafts for purchase of,
j
change bank
722-724
as trade acceptance
310 j
Reserve requirements, changes in, circular of
El Paso, branch of Federal Reserve Bank established
!
Federal Reserve Bank of New York regardin
256 !
ing
1088




INDEX TO VOLUME 4.
Federal Reserve Act, amendments to—Continued. Page.Section 4.—Election of directors—
As reported by the committee
414
As passed
947
Section II (k).—Trust powers of national
banks—As reported by committee
4.1.5
As passed
948
•Section 16.—Issuing of Federal Rrserve notes
in small denominations—
As reported by committee
418
As passed
948
Section 19.—Changes in reserve requirements—
As reported by committee
416
As passed
948
Section 22.—Providing penalties for violation,
of banking laws—
As reported by committee
413
As passed
\
949
Suggested by committee of American Bankers'
Association relative to clearing and collection of checks
984
Suggested by Federal Advisory Council, relative to dividends on Federal Reserve .Bank
stock
1177
Suggested by Federal Advisory Council, relating to dollar exchange
1177
Federal Re-serve agents:
Appointment of, for year 1918
14
Conferences with Federal Reserve Board
160
Rarnsay, Asa E., appointed at Kansas City
5
Federal Reserve agents' fund, summary of transactions under
27,
J06, 224, 339,460, 548, 662, 772, 893,1019,1239
Federal Reserve Bank notes:
Instructions to Federal .Reserve? and member
banks, regarding
493
Issue of, in lieu of silver certificates withdrawn
under coinage act
383, 396,493
$1 and $2 denominations ordered printed
487
Federal Reserve .Banks:
Condition of, December, 1914, November, .1915,
March, 1917, and November, 1918
1167,1168
Consolidation of, with subt.reasur.ies, report on,
by Bureau of Efficiency
172-179
F)irectors of, election of. (See Directors of Federal Reserve Banks.)
Directors of branches of. (See Branches of Federal Reserve Banks, Directors of.)
Dividends, pavment of
5,593
Date for..-.
521
learning assets, movement of. January-July,
1918
'
"....'..
768
Chart showing
770
K-arnings and expenses of
5, 99-104, 700
Surplus profits paid into United States
Treasury as franchise tax
6,12
learnings on investments of, monthly statement
(^Oj
15J, 241, 356,480, 509, 682, 793, 913, .1040,1145,1243
Federal Reserve exchange drafts, recommendations relative to.
819
Outline of organization of
373-375
Chart showing
374
Resolutions of Federal Reserve Bank of New
York, relative to conservation of credit
741
Resources and liabilities of
58,
142,234, 347,468, 559, 673, 782, 902,1030,1148,1245
Federal Reserve Board:
Adelson, L. C , appointment of, as assistant
secretary
365
Allen, Sherman P., resignation of, as assistant
secretary
.
365
Annual report of, transmitted to Congress
69, 79




1261

Federal Reserve Board- Continued.
Page.
Broderick, J. A., appointed as secretary of
817
Capital Issues Committee, report of, to.". 696, 704-708
(See also Capital Issues Committee.)
Conference with committee of American Bankers' Association on check clearinsr and collection
\
962
Conference with cotton growers and spinners..
691
Conferences with Federal Advisorv Council.. 160,
"490. 49L 931,1175
Conferences -with Federal Reserve ageivi?
160
Delano, Hon. F. A., resignation as member
of
."
587;697
Digest of informal rulings of, as primed in the
Bulletin
571-586
Expenses of, assessment for—
January-June. 1918
24
July-December, 19:8
608
Harding, Hon. \V. P. G., designated by the
President as governor of
810
Instructions in connection with licenses for
exportation of coin, bullion, and currency. 499-501
Licenses granted by. in connection with exportation of coin, bullion, and currency
501
Memorandum outlining general acceptance
policy
257-260
Resolutions of, commending the executive
committee and others of Capital Issues Committee for services rendered
697
Resolutions adopied by, on resignation of Hon.
F. A. Delano.^
".'.
.".
587
Resolutions adopted by, on resignation of lion.
P. M. Warburg
\
810
Resolution adopted by, on resignation of the
Secretary of the Treasury
.1178
Resolutions adopted by, relating to guaranty of
bank deposits
".
595
Strauss. Hon. Albert, appointed as member
and designated as vice governor
1056
Work of, in connection with licenses to export
gold, bullion, and currency
499-501
Warburg, Hon. P. M,. retirement as member
of
809,816
m
Correspondence with the President on
816
Resolutions adopted by the Board on
810
Willis, H. P., retirement of, as secreiarv of the
Board
*
817
Federal Reserve Bulletin:
Elimination of certain statistical statements
from
1142
Index-digest of informal rulings and opinions
of counsel of Federal Reserve Board
571-586
Federal Reserve exchange drafts, limit of drawings
of, increased from §250 to $5,000
806, 819
Federal Reserve notes:
Amounts outstanding and in circulation during
1917, and amounts of gold cover held by
Federal Reserve agents
132
Chart showing.
133
Banks urged to refrain from sending notes for
redemption until actually unfit for circulation
310
Circulation of, during year 1917. increase i n . . .
130
Federal Reserve note account of each Federal
Reserve Bank and agent
60,145,
146, 236, 350, 471, 562, 675, 7853 905,1033,1151,1247
Growth in use of
927
Interdistrict movement of.
147, 473, 787,1153
Issuing of, in small denominations, amendment
to act authorizing
948
Redemption of
310
Transportation charges borne by Federal
Reserve Banks
931

1262

INDEX TO VOLUME 4.

Federal Trade Commission, investigation by, Pa s e - Foreign exchange—Continued.
Policy of Board relative to, in Spanish-speakrelating to financing of grain
' 711-713
ing countries
158
Fiduciary powers:
Regulations governing
11,185, 622-627
Decision of Supreme Court of Illinois relative to
Results of inquiry as to exchange profits on
exercising in that State of trust powers by a
neutral countries
833
national bank
522
Rupee exchange—
625
Exercising of, by national banks—
Amendment to act regarding
948 Foreign exchange rates:
Changes in, since outbreak of war
836
Statement of Board regarding
1086
Rates in New York on belligerent countries,
Guardian, authority to act as
744
1914-1918
837,1198
List of national banks granted powers under
Chart showing
841,1200
section 11-k of act
15,
Rates in New York on countries with silver
80,184, 296, 402, 492, 607, 742., 856, 967,1100
standard, 1914-1918
840,1198
Opinion of Attorney General relative to granting
Chart showing
844,1201
of, to national banks in New York
12
Rates in New York on neutral countries, 1914Regulation F, series of 1917, revision of
. . . 1215
1918
839,1198
Surplus not treated as capital in connection
Chart showing
843,1202
with applications for
1118
Rates in Switzerland on Berlin and Vienna,
First National Bank, Boston, Mass., foreign branches
1914-1918
838, 842
ef
735,1079-1081
Chart showing
842
Flower, II. C , designated as member of Capital
Rates on markets in belligerent countries,
1914-1918
837,1198
Issues Committee
364
Rates on marketsin neutral countries, 1914-1918 839,
Food Administrator, suggestions by, relative to
1198
guaranteed price of wheat
1088
Rates on markets in silver countries, 1914-1918, 840,
Foreign banks:
1198
Condition of principal Argentine banks
739
Statements showing
67, 358, 684,1162,1199
Philippine National Bank, condition of, June
Foreign Governments:
30,1918
1085
Loans to, by the United States, to November
Statements^ showing condition of principal
1, 1917
21
banks of issue—
Neutral countries in Europe, public debts of.. 375-394
1913-1917
243-245
Securities of, held by national banks in the
1914-1918
996,1077
United States on December 31, 1917
263
Foreign branches of American banks:
War expenditures, war debts, etc., of principal
Establishment of
695, 735-739, 818, 938, 942
belligerent countries... 267-285, 375-394,1057-1077
Foreign operations of the Asia Banking CorForms:
poration
818
Applications for deposits of public moneys in
Foreign operations of the Mercantile Bank of
connection with payment of income and exthe Americas
936-938
cess-profit taxes
495
Foreign operations of the National City Bank
Bank examination, uniformity of
310
of New York
942-947
Foreign exchange operations
627
Tabular statement showing number of
1196
Farmers credit statement
719-722
Foreign branches of national banks, reserves of
1123
Meal ticket issued to drafted men en route to
Foreign exchange:
camp
938
Bill creating a foreign exchange bank—
Regulation of foreign exchange
85
Questionnaire sent out by Senator R. L.
Reporting sales of war savings stamps
89
Owen in connection with
832
Trade acceptances
636
Senate resolution asking for information as
Used in connection with capital issues
631-633
to exchange profits on neutral countries. 833 France:
Testimony of Governor Harding before
Bank of FrancesBanking and Currency Committee
724-728
Reserves, circulation, and security holdings
Text of
722-724
of
998
Control of
.
159
Chart showing
1000
Countries, list of, in which banks are drawing
Statement showing condition of—
drafts to furnish dollar exchange
938
1913-1917
243
Course of German exchange in neutral markets,
1914 and 1918
996
January-October, 1918
1162
Translation of article in Bulletin Mensuel No.
Division of, rulings by
864, 973,1121,1217
5, 1918, of the Societe de Banque Suisse, enEarnings on exchange with neutral European
titled "Le bilan de guerre," 1914-1918.. 1057-1071
countries
833, 835
War bonds issued
1062
Executive order regulating, text of
81-85 |
War expenditures, war debts, etc., of
274,1073
Forms for use in connection with
85,627 | Gas sold, trade acceptance drawn for, eligibility oi.. 435
Instructions to dealers in
185-196,622-625 Georgia, amendments to banking laws of, relating to
Kent, F. I., appointed as advisor on
11
State bank membership
978
Leffingwell, Hon. R. C , statement by, before
Germany:
Ways and Means Committee regarding
940
Course of German exchange in neutral markets,
Letter of Secretary of the Treasury to President
January-October, 1918
1162
of the Senate dealing with foreign exchange
German Reichsbank—
situation
626
Reserves, circulation, and security holdings
Lire exchange
624
of
998
Neutral countries in Europe
375-394 i
Chart showing
1001




INDEX TO VOLUME 4.
Germany—Continued.
German Reichsbank—Continued.
Statements showing condition ot*—
1913-1917
244
1914 and 1918
996
War bonds issued
1062
War debt of
280,1074
Goff, F.H., designated as member of Capital Issues
Committee
T
364
Gold:
Concentration of, in Federal Reserve Banks... 694
Imports and exports, statements showing
66,152,
242, 357, 431, 570, 683, 794, 914, lO41,1159,1252
Instructions in connection with exportation
of
4 9 9 -501
•Goldfcoin, use of, for Christmas gifts discouraged... 1216
Gold-mining industry, committee appointed to
study
1195
Gold settlement fund:
Daily settlement plan put into effect
591, 610-612
Summary of transactions under
26,105,
223, 338, 459, 548, 661, 772, 892,1019,'1238
Gompers, Samuel, letter to, by Secretary of the
Treasury, relating to restriction of building operations during the war
264
Government bonds, discount of paper secured b y . . . 863
(See also Liberty bonds.)
Government deposits. (See Deposits.)
Government, financing of, duty of national banks to
assist
I
313
-Government Official Bulletin, mention of
266
Governor of Federal Reserve Board, designation ofT
by President
810
Governor of Federal Reserve Banks:
Lynch, James K., appointed at San Francisco -.
5
Meetings of
256, 689
Morss, Chas. A., appointed at Boston
5
Grain financing, rejjort on, by Federal Trade Commission and Department of "Agriculture
711-713
Great Britain:
Bank amalgamations, report by special committee appointed by British Government on. 954
Bank of EnglandReserves, circulation, and security holdings
of
.". 998
Chart showing
999
Statements showing condition of.. 243,996,1072
Banking operations of National City Bank of
New York in
*-..
947
British Treasury bills, issuance of, in the
United States
940
Extract from report of committee of the British
House of Commons on national expenditure. 179-182
Loans to allies
1072
Report of Lord Cunliffe's committee to Parliament in connection with currency and foreign exchanges during the period of reconstruction
1178-1192
War bonds issued
1062
War debt of
269,1072
'Guaranty of bank deposits. (See Deposits.)
Guardian, authority to act as
744
Hamlin, Hon. C. S., designated as member of Capital
Issues Committee
364
Harding, Hon. W. P. G.:
Attendance at meeting of Committee of
Nat'onal Association of Cotton Manufacturers
in New York to discuss the use of acceptances
in financing the cotton crop
713
Designated as member of War Finance Corporation
364
Extracts from address by, relating to trade
acceptances in financing cotton purchases.. 602, 691




1263

Harding, Hon. W. P. G.—Continued.
Extract from, address of, before Federal Page.
Advisory Council
1175
Redesignated by President as governor of the
Board
810
Testimony before Banking and Currency Committee, relative to proposed bill creating a
foreign exchange bank
724-728
Holidays, maturity of notes when falling due on
108
Holland, exchange purchased and sold, first quarter,
1918
835
Hollander, Prof. Jacob H., report by, on holdings by the banks of Treasury certificates of
indebtedness
*
845-847
Hoover, Herbert, recommends temporary credits to
canners
.*
."
607
Hungary:
War bonds issued
1062
War debt of
234; 1075
Imports and exports:
Gold
66,
152, 242, 357, 481, 570, 683, 794, 914,1041,1150,1252
Silver
1041,1159,1252
Income tax:
Deposits of public moneys in connection with.. 494
Recommendation of Secretary of the Treasury
to Ways and Means Committee relating to 600-602,
847-852
Ruling of Commissioner of Internal Revenue
relative to tax on stock dividends
614
Ruling of Treasury Department relating to tax
on deposits of nonresident aliens
163
(See also Tux.)
Indexes of business conditions, announcement of
plans of Board for establishment of... 491, 597, 697,1194
Index numbers of wholesale prices
504,
810,1005-1015,1100-1103,1203-1206
Informal rulings of the Board:
Acceptances—
Acceptance corporation, paper of
634
Acceptance of drafts by State member
banks
1119
v
Acceptance house or broker, eligibility of
note of, for rediscount
- - -. 108
. Bills payable elsewhere than in the United
States
520
Canned goods, warehouse receipts for, as
security
634
Cattle, chattel mortgage on, as security
for
\ .\
......
437
Discount of acceptances not paid at Federal
Reserve bank
521
Draft drawn for purpose of financing sale of
goods to Allied Purchasing Commission.. 435
Drafts secured by chattel mortgage on cattle, eligibility of
*.
309
Indorsements of
744
Release of shipping documents upon acceptance of draft
634
Sugar in bond, acceptance of drafts drawn
against
520
Trade acceptances—
Drafts drawn for insurance premium.. 309
Electrical goods, including cost of installation, eligibility of drafts
drawn for purchase of
310
Financing sale of goods to a retail customer .;
30
Form
63G
Gas sold is "goods sold" within meaning of Board's regulation
435
Installment plan, sales on, acceptances
in connection with
437

1284

INDEX TO VOLUME 4.

iJ>
Informal rulings of the Board—Continued.
age.
Informal rulings oi the Board—Continued.
Form of draft
109
A cceptances—Continued.
•
Gas sold, trade acceptance drawn for, eligibility
Trade acceptances—Continued.
Page.
of
'1
435
Rediscount, eligibility for.
109,971 :
Gold coin, use of, for Christmas gifts discourSecured by warehouse receipts
863 .
;
aged. . . '
:
.1216
Warehouse receipts, corporation' issuing,
j
Government bonds—
must be organized in good faith
31 \
Discount of paper secured by
863
Advertising—
Eligibility of note of nonrnember bank
"Clearing member'••
1119,121G
};
used i n trading in
743
Use oi word "Reserve
521 j
Guardian, authority to act as
744
Agricultural paper—\
#
Holidays, maturity of notes falling due on
108
Agricultural implements, paper covering
!
Indorsement of acceptances
744
'sale c t eligibility of . . - . . - - . . .m
1118 \
r
Notes £ or commodities used in farming, elij
Indorsement of paper b y nonmembor bank, eligibility of, for rediscount
310 ;
gibility of, for rediscount
52,0
Rediscount of notes used for draining and
j
Installment plan, sales on, acceptances baaed
tiling farm land
743 ;
on
'....'.
437
£ilos, notes given lor, eligibility of.
971 j
insurance premium, draft drawn tor, as a trade
Tractors, eligibility of notes given for payj
acceptance
309
ment of
309 I
Interest, basis for computing, on rediscounts
\ Iteration oi notes
^
1118 |
between Federal Reserve Banks
109
m
Bank examination forms, uniformity of
310
Interest coupons on bonds of Federal land
Bill of lading drafts, collection of, by Federal
•
banks, payment of, through Federal Reserve
Reserve Banks
436 j
Banks
\
."
435
Bonds of Federal land banks. (See Federal
Interest on discount transaction, basis for :og;
land bank bonds.)
;
^ ^uring.
['. 744
Branch banks, directors of, to be elected anj
Limitations on loans b y member banks
863
Limitations under section 5200, R. S
197,11.20
nually
.- 31 |
:
Maturity of notes due on Sunday or legal holiCanned goods, warehouse receipts for, as security
j
day
"
.
;
108
for acceptance
634 |
National banks, right of, to make loans secured
Cattle as readily marketable commodity
309 i
by farm loan bonds
635
Cattle, chattel mortgage on. as security for trade
_ |
Nonmember bank
acceptance
437 j
Eligibility lor rediscount of paper indorsed
Chain of banks, eligibility for membership
971 j
by
'
'.':
520
Commercial paper,' maturity of, when falling
j
Eligibility of note of, used in trading in
due on Sunday or legal holiday.._.
103 •
Government; obligations
743
Coupons on bonds o( Federal land banks, pay\
raent oi interest on. through Federal Reserve
i
Notes of a finance or credit company not eligibanks
.- - 435 j
ble for rediscount
"
197,1120
Credit company, notes of, not eligible for redisj
Notes, right to alter
1118
count
197 ;
Perishable food products, eligibility of paper
Custody of shipping documents or warehouse
j
under commodity rate
30
receipts
971 [
Real estate, loans on—
Digest of rulings, as printed in the Bulletin.- 573-586 |
City real estate, right of national bank to
"Directors of Federal Reserve Banks, time limit
|
make loans on
30
for voting for
1215 ;
Loan by national bank on mortgage certifiDividends of Federal Reserve Banks, date for
j
cate issued by a trust company as the
payment of
521 i
direct obligation of that company
30
Dollar exchange, drafts drawn for purpose of
j
Redemption of Federal Reserve notes.*.
310
creating
".
1119 j
Rediscounts between Federal Reserve Banks,
Draft drawn for insurance premium as a trade
;
basis for figuring interest
109
acceptance
309 j
Release of shipping documents upon acceptDraining and tiling farm land, eligibility for
i
ance of draft
634
rediscount of notes used for
743 :,
•'Reserve," use of word for advertising pur:
Electrical goods, eligibility of drafts for purposes
521
chase of/.
310
Section 5200, JR. S., limitations under
197,1120
Federal land bank bonds—
Silos, eligibility of farmers' notes given for purCoupons on, payment of interest on, through
chase of
\
971
Federal Reserve Banks
435 \
State member banks, acceptance of drafts b y . . 1119
Eligibility of
1216 ;
Sugar i n bond, acceptance of drafts drawn
Right of national banks to make loans He!
against
520
cured by
635 :
Sunday, maturity of notes when falling due o n . 108
Federal Reserve notes, banks urged to refrain
Tax on telegraph, telephone, and express
from sending notes for redemption until actcharges
1.215
ually unfit for circulation —
310 i
Tax, stamp, draft payable on arrival or on deFiduciary powers—
i
mand after arrival of goods subject to
31
Guardian, authority to act: as
744 '
Tax, stamp, on drafts drawn to finance sales of
Regulation F , series of 1917, revision of
1215 ;
goods to Allied Purchasing Commission
614,972
Surplus not treated as capital i n connecTime allowance for holding draft after presenttion with applications for
1118 .
ment for payment
1119
" F i n a n c e " bills, purchase of, by Federal ReTractors used in agricultural operations, eligiserve Banks.
*
197,1120 .
bility of notes given in payment of
309




INDEX TO VOLUME 4.
Informal ruling of tlio Board- Continued.
f>Ll e
Warehouse receipt-* —
«Canned goods as security, eligibility for acceptance
(>34
Custody of
971
Notes secured by, eligibility of, for rediscount
!.'...."
*
.
634. 862
Receipt of custodian of wool may be regarded as
636
Illinois, decision of supreme court of, relative to the
exercising of trust powers by national banks
522
I ndoraements of acceptances
110, 744
i ndorsements on bills made payable to order of
drawee
"..'
110
Indorsement of paper by nonmember bank, eligibility of, for rediscount
520
I nstallmcnt plan, sales on, acceptances based on
- 437
I nsurance premium, draft drawn for, as a trade acceptance
309
Interest, basis for figuring, in rediscount transactions
744
.Interest coupons on Federal land bank bonds, payment of, through. Federal Reserve Banks
....
435
Interest on deposits
362, 690, 806
Action by New York Clearing House Association relative to increase in
252, 285-294
Statements of Gov. Harding relative to increase in
160, 285
Interest, statement showing rates prevailing in various cities each month
'I
812-815,
1016-1018,1106-1108,1209-1211
Internal revenue. (See Tax; Commissioner of Internal Rev enue.)
International High Commission, report by central
executive council of, relating to checks
518
Italy:
Bank of Italy, statement show ing condition of..
996
Banking operations of the National City Bank of
New York in
944
War bonds issued
1063
War debt of
277,1073
Japan:
Bank of Japan, statement showing condition of.
997
Banking operations of National City Bank of
New York in
946
Jones, Breckinridge, extract from an. address by, relating to State bank membership in the Federal
Reserve System
510-515
Kent, F. I., appointed as foreign exchange adviser..
11
Kentucky, amendment to laws of, relating to State
bank membership
315,526
.Law department:
Acceptances—
Acceptance by foreign correspondent at request and under guarantee of national
banks
311
Acceptance by member banks of drafts of
Food Administration Grain Corporation..
976
Acceptance by member banks of drafts
drawn in transactions involving export of
goods
".
314, 439
Acceptance by member banks of drafts
drawn b y dealers engaged in the export
and domestic sale of the same character
and class of goods
314, 438
Acceptance b y member banks of drafts secured by notes in turn secured b y chattel
mortgage on cattle
871
Acceptance of draft with shipping documents conveying or securing title attached
198
Acceptances growing out of export transactions
314, 439
Acceptance" without documents attached.
311




1265

department—Continued.
Acceptances—Continued.
PageDrafts drawn to finance sales to the United
States Government
32
Acceptances, trade—
Bill of exchange drawn against actually existing value.
'.
974
Draft drawn b y a lumber corporation upon
a sales corporation
.
S3
Providing for discount"if paid at certain
time before maturity
87.1
Providing for discount if paid at m a t u r i t y . .
200
Providing for extension of time
"... 870
Stamp tax on
97 7
Agricultural paper, note for purchase of commodities used in farming.
3!2
Banking laws of States, amendments to, relative
to State bank membership—
Georgia
978
Kentucky.
315, 52C
Mississippi
315
Now Jersey
VM>
Bills payable to order of drawee, indorsements
on....'
110
Bill payable with attorney's fees or collection
charges, negotiability of
'.
1\"
>
Branch of State bank, membership of
522
Capital stock in Federal Reserve Banks, calculation of dividends on, when surrendered
201
Cattle, notes secured b y chattel mortgage on.
eligibility of
87.1
Commissioner of Internal Revenue, ruling? b y .
(See Commissioner of Internal Revenue.)
Commodity paper, draft drawn to finance sales
to t h e United States Government
32
Decision of Supreme Court of Illinois relative
to exercising in that State of Iriift powers by
national banks
522
Dividends on surrendered stock in Federal
Reserve Bank, calculation of
201
Drafts secured by chattel mortgage on c a t t l e . .
871
Drawee, bills payable to order of. indorsements
on...'.
110
Farm loan bonds not eligible as collateral for
promissory notes of ID ember banks
33
Federal Reserve Banks, dividends on canceled
stock of
201
Fiduciary powers, decision of Supreme Court
of Illinois relative to exercising, in thatState b y national bank
522
Food Administration Grain Corporation, acceptance of drafts of.
976
Foreign branches of national banks, reserves of. 1.123
Georgia law relating to State bank membership.
978
Government, financing of, d u t y of national
banks to assist in
313
Illinois, decision b y supreme court of, relative
to the exercising of trust powers by a national
bank
522
Importation or exportation of goods, drafts
growing out of transactions involving
976
Indorsements on bills made payable to order
of drawee
110
Indorsement of notes i:without
recourse,"
eligibility of, for rediscount
745
K e n t u c k y banking laws, amendments to, regarding State bank membership
315, 526
Laws of New York, amendment to, regarding
reserves on deposit
524
Limitations on acceptance power of national
ban ks
'
311
Limitations under section 5200* R. S., and section 13 of the Federal Reserve Act
32.
34, 311, 638, 80S, 8G3, 867

1266

INDEX TO VOLUME 4.

Pa e
Law department—-Continued.
SLiquidated bank, calculation of dividends on
surrendered Federal Reserve Bank stock
201
Mississippi law relating to State bank membership
315
National banks, duty of, to assist in financing
the Government
313
New Jersey laws relating to State bank membership
....
166
New York banking laws, amendment to, regarding reserves on deposit
524
Note ^discounted by member bank as
liability of maker to bank for borrowed
money."
638, 867
Promissory notes, stamp tax on renewals of...
977
Railroad Administration, liability of, for damages on bills of lading signed by its agents.. 872
Railroad supplies, eligibility for rediscount of
draft given for
974
Reserves of banks in outlying districts of
reserve and central reserve cities
1124
Reserves of foreign branches of national banks.. 1123
Reserves on deposit, amendment to banking
laws of New York regarding
524
Savings account, 30 days' notice must be given
before withdrawal, to comply with regulation
of Board
,
199
Stamp tax pn negotiable instruments, decision
of Commissioner of Internal Revenue, relating to
316
t
Stamp tax on drafts in connection with shipments of goods to Allied Purchasing Commission
614, 972,1218
Stamp tax on renewals of promissory notes,
ruling by Commissioner of Internal Revenue
regarding
...
977
Stamp tax on trade acceptances
977
State banks— ^
Membership of branch
522
Rediscounts by member
638
State laws relating to membership—
Georgia
978
Kentucky
315, 526
Mississippi
315
New Jersey
166
Stock in Federal Reserve Banks, calculation of
dividends on, when surrendered
201
Trade acceptances. (See Acceptances, trade.)
War savings stamps, rediscount of paper secured
by.
637
Laws, banking. (See Banking laws; Federal Reserve Act; Acts.)
Leffingwell, Hon. R.G., statement by, before Ways
and Means Committee relating to foreign exchange. 940
Leonard, C. M., designated as member of War
Finance Corporation
364
Liberty bonds:
Amounts of, held by member banks
1109-1113
Conversion of first and second issues of, statement by Secretary of the Treasury regarding. 517
Coupons on, statement of Secretary of the Treasury regarding charges for cashing
13
Eligibility for rediscount of note of nonmember
bank used in trading in
743
Fourth Liberty bond act
613
New legislation affecting
926, 961
Holdings, subscriptions, etc., by savings
banks
856, 953,
Lost or stolen, monthly report of
515,
613, 740, 859, 968,1115,1212
Provision in bond act subjecting notes secured
by, to limitations under section 5200, R. S. . 1055
Purchase of, urged by the President
483




Liberty bonds—Continued.
Second Liberty bond act, supplement to
961
Statement of John S. Drum on relation of
liberty loan to war savings plan
164
Subscriptions sent in by national banks, statement of Comptroller of the Currency regarding
372
Third Liberty bond act, text of
306-308
Liberty loan:
Amounts subscribed to the six issues of certificates of indebtedness preceding the third
Liberty loan
558,1147
First, subscribers to, number of
1045
Second, subscribers to, number of
1045
ThirdAnnouncement of Secretary of the Treasury opening campaign
250
Distribution of Treasury certificates in
anticipation of third loan
359
Subscriptions to, announced
484, 509
Report at close of
359
Subscribers, number of
359,1045
FourthAct, text of, authorizing
613
Announcement regarding
801, 937
Amounts subscribed to the issues of certificates of indebtedness preceding the
fourth loan
921,1147
Letter of Secretary of Treasury to banks
regarding issues of certificates of indebtedness in anticipation of
612
Report at close of
1045,1173
Subscribers to, number of
1045
Report by Prof. J. H. Hollander, on holdings
by banks of certificates of indebtedness
845-847
Licenses, export:
Instructions in connection with exportation of
coin, bullion, and currency
499-501
New rules for obtaining, issued by the War
Trade Board
1089
Limitations under section 5200, It. S., and section
13 of Federal Reserve Act.. 32, 34,311, 638, 808; S63, 867
Liquidated bank, calculation of dividends on
surrendered Federal Reserve Bank stock
201
Little Rock, Ark., branch of Federal Reserve Bank
established in
1056
Live stock, loans on, bv War Finance Corporation.. 691,
806, 831, 950
Live-stock paper, amounts held by Federal Reserve
Banks, statements showing
53
135, 229, 342,463, 552, 668, 776, 897,1024, 1146,1244
Loans to foreign governments made by the United
States up to November 1, 1917
21
Luxuries, curtailment in purchase of
854
Lynch, James K., appointed governor of Federal
Reserve Bank of San Francisco
5
Maturity of notes due on Sunday or legal holiday.. 108
McLean, A. W., designated as member of War
Finance Corporation
364
Meal tickets for use by drafted men en route to
camps, member banks requested to receive for
collection
938
Member banks:
Abstract of condition of
796, 916
Amounts of war securities held by
1109-1113
Deposits of, in 100 leading cities, JanuaryJune, 1918
664
Loans and investments in 100 leading cities
664
Statements showing condition of, each month. 61-64,
148-151, 238-240, 352-355, 474-479,
564-568,677-681,788-792, 907-912,
1035-1039, 1154-1158, 1249-1251
(See also National banks.)

INDEX TO VOLUME 4.

1267

Mercantile Bank of the Americas, foreign branches
New York Clearing House Association—Continued. Pageof, report on
736-738
Action by, governing clearing and collection of
Meyer, Eugene, designated as member of War Fiacceptances
805,819-821
nance Corporation
364
Rules relative to check collection charges
1056
Miller, Hon. A. C, extract from address of, on conNew Zealand, war debt of
273
servation of resources
:
923 Nicaragua, banking operations of the Mercantile
Mississippi law relating to State bank membership.. 315
Bank of the Americas in
936
Monetary Commission, extract from report of, relaNixon, R. L., Department of Agriculture, statetive to volume of silver purchased and held by
\ ment by, relative to cotton warehouse loans.. 1094-1098
United States Treasury
397-399 j Nonessentials, curtailment of
855,922
Money:
"
I
Investigation by Council of National Defence
Estimated general stock of, in the United
|
on purchases by civilians in the United States. 852
States
506, 684, 795, 915,1042,1160,1253 j
Preference list compiled by War Industries
Board
:
932
(See also Currency.)
|
Morss, Charles A., appointed governor of Federal
|
(See also Credit conservation.)
Reserve Bank of Boston
5 I Nonmember bank:
National Association of Cotton Manufacturers, meetEligibility of note used in trading in Governing of committee of, in New York, to discuss the
ment obligations
743
use of acceptances in fina-ncing the cotton crop.. 713
Eligibility for rediscount of paper indorsed
National Association of Credit Men:
by.....
..:
520
Article by J. H. Tregoe, secretary of, relative
Norway:
Qto trade acceptances
1193
Bank of Norway, statement showing condition
Resolutions adopted by, relating to trade acof
382,997
ceptances
~
1
606
Exchange purchased and sold, first quarter,
N ational banks:
1918.....
835
Acceptance liabilities of
1114
Foreign exchange rates in
383
Act authorizing national banks to contribute to
Public debt of
382
the Red Cross
428,498 Opinions of Attorney General. (See Attorney GenBills recommended by Comptroller of the Cureral, opinions of.)
rency to increase safety of
163 Opinions of counsel of Federal Reserve Board. (See
Branches of, bill authorizing, as reported by
Law department.)
committees of House and Senate.."
423 Opinions of Internal Revenue Commissioner. (See
Charters issued to
15,92,
Commissioner of Internal Revenue.)
184, 295,403,509,609,740, 856,967,1099,1197 Panama, banking operations of the National City
Condition of, as shown by Comptroller's calls. 182,1093
Bank of New York in
946
Consolidation of, bill authorizing—
Paper currency outstanding
-z
18,519
As reported
430 Peru, banking operations of the Mercantile Bank of
As passed
1177
the Americas in
737
Deposits and investments of—
Philippine Islands, banking operations of the Na1913-1917
337
tional City Bank of New York in
946
Chart showing
337 Philippine National Bank:
1914-1918
502
Branches of
1085
Chart showing
503
Condition of, June 30, 1918
1085
Duty of ,'to assist in financing the Government.. 313 Philippine National Bank Act, text of, as amended
Fiduciary powers granted to
15,80,
and reenacted
728-734
184,296,402,492,607, 742,856,967,1100 President of the United States:
Foreign securities held by, as shown by CompAddress of, before Congress, relative to revenue
troller's call December 31,1917
263
legislation
497
Liberty bond subscriptions, amount of, sent in
Statement hyt on thrift and the purchase of
by
372
securities
483
New charters and capital increases during the
Prices:
year 1917
89
Extract from report of select committee of BritResources of
17,90
ish House of Commons on
179-182
In 1917, statement by Comptroller of the
Movement of, 1914-1918
504
Currency
90
Wholesale, index numbers of
810,1005,1100,1203
Right of, to make loans on security of farm-loan
Priorities:
bonds:
635
Preference list of industries and plants, com[See also Member banks.)
piled by War Industries Board.
931-934
National Citv Bank of New York, foreign banking
Rationing of industry
922, 931-934
operations of
735,937, 938, 942-947 Promissory notes, renewals of, stamp tax on, ruling
by Commissioner of Internal Revenue regarding. 977
Netherlands:
Public moneys, special deposits of, in connection
Bank of Netherlands, statement showing conwith payment of income and excess-profit taxes.. 494
dition, of
386,996
Foreign exchange rates in
387 Questionnaire sent out by Banking and Currency
Committee relative to bill creating a foreign exPublic debt of
385
change bank
832
New Jersey, act passed by legislature of, relating to
membership in system of State banks
166 Questions and answers by Federal Reserve Bank of
New York relating to State bank membership.. 615-622
New York, amendment to banking laws of, relative
to reserves on deposit
524 Railroad Administration, liability of, for damages on
bills of lading signed by its agents
872
New York Clearing House Association:
Action by, relative to interest rates on deposists. 252, Railroad supplies, eligibility for rediscount of draft
given for.
974
285-294




1268

INDEX TO VOLUME 4.

Railroads, text of act providing for Federal control Pa S e of
296-300
Ramsay, Asa E., appointed as Federal Reserve agent
at Kansas City
5
Real estate, loans on:
City real estate, right of national bank to make
loans on
30
Loan by national bank on mortgage certificate
issued by a trust company as the direct obligation of that company
30
Red Cross, act authorizing national banks to contribute to
.
428,498
Rediscounts between Federal Reserve Banks, basis
for figuring interest
109
Reserve, use of word, for advertising purposes
521
Reserves:
Amendment to New York laws regarding
524
Cash reserves and excess reserves of the Federal
Reserve Banks, Jan., 1917-Feb., 1918
226
Chart showing
227
Changes in reserve requirements
1055
Amendment to Federal Reserve Act, authorizing
948
Circular of Federal Reserve Bank of New
York regarding
1086
Movement of reserves of Federal Reserve Banks,
January-July, 1918
768
Chart showing
771
Ratio of, to aggregate net deposit and Federal
Reserve note liabilities during year 1917
130
Chart showing
131
Reserves of banks in outlying districts of reserve
and central reserve cities
1124
Reserves of foreign branches of national banks.. 1123
Resources and liabilities of New York Clearing
House banks, April-December, 1917
28,29
Chart showing
28
Resources and liabilities of Federal Reserve Banks,
statements showing
58,
142,234, 347,468, 673, 782, 902,1030,1148,1245
Resources of national banks. (See National banks,
resources of.)
Revenue legislation
926
Address of President before Congress relating to. 497
Recommendations of Secretary of Treasury to
chairman of Ways and Means Committee
relative to
600-602, 847-852
Revenue stamps. (SeeT&x.)
Rulings of Division of Foreign Exchange
864,
973,1121,1217 j
Rulings of the Federal Reserve Board. (See Informal rulings; Law department.)
Rupee exchange. (See Foreign Exchange.)
Russia:
Banking operations of the National City Bank
of New York in
944
Russian State Bank, statement showing condition of, 1913-1917
244
War bonds issued
1063
War debts of
276
Salt Lake City, branch of Federal Reserve Bank
established in
.
256
Savings accounts, 30 days' notice must be given before withdrawal, to comply with regulation of the
Board
".
199
Savings banks:
Bankers' acceptance purchased by
953
Condition of, as shown by^ report made by American Bankers' Association
952
Holdings, subscriptions, etc., of Liberty bonds 856, 952
Scandinavia, banking operations of the National
City Bank of New York in
944




Secretary of the Treasury:
Annual report of, extracts from
18-24
Letter of, to all banks regarding issues of certiiicates of indebtedness in anticipation of
fourth Liberty loan
612
Letter of, to President of the Senate, dealing
with foreign exchange situation
*>26
Letter of, to Samuel Gompers relative to building restrictions during the war
2C4
Recommendations of, to chairman of Ways and
Means Committee relative to revenue legislation
600-602,847-852
Resignation of
1173,1174
Resolutions passed by Board on
1173
Statements issued b y conversion of first and second issues of
Liberty bonds
517
Coupons on Liberty bonds, charge for
cashing
."
13
Deposits of public moneys in payment of
income and excess-profit taxes
494
Fourth Liberty loan.
801, 937
Income tax on deposits of nonresident
aliens
163
Report on law and practice relating to
checks, by central executive council of
the International High Commission
518
Subscriptions to the third Liberty loan
509
Third Liberty loan, opening of campaign
250
Section 5200, R. S., and section 13 of Federal reserve act, limitations under
32,
34, 311, 638,-808, 863, 867
Silos, eligibility of farmers' notes given for purchase of
971
Silver:
Act authorizing sale of silver dollars to provide
bullion as a means of remittance to foreign
countries
386^395-397
Exportation of—
Curtailment in.
807, 818
Number of licenses granted
501, 807
Extract from report of Monetary Commission
relative to volume of, purchased and held by
United States Treasury
397-399
Imports and exports of
1041,1159,1252
Price of, fixed at |1.01J per ounce
807: SIS
Retirement of silver certificates and breaking
up of silver dollars—•
Act authorizing
366, 395-397
Instructions to Federal reserve and member banks regarding
493
Spain:
Bank of Spain, statement showing condition
of
".
392,997
Exchange purchased and sold, first quarter,
1918
S35
Foreign exchange rates in
393
Public debt of....
392
Spear, Russell B., article by, on State bank membership in New England."..
1081-2084
Stamp tax. (See Tax, stamp.)
Stamps, war savings. (See War savings stamps.)
State banks:
Acceptance liabilities of
1114
Acceptance of drafts by State member bank.?.. 1119
Branch of, membership of
522
Council of State banking associations organized
708-710
Examination of, instructions regarding.
1079
Member banks, rediscounts by
£38

INDEX TO VOLUME 4.
State banks—Continued.
Membership of—
Article by Russell B. Spear on State bank
membership in New England
1081-1084
Comparative statement showing admissions
to system, January 1 and July 15,1918. - 735
Growth of..
696, 964
Jones, Breekinridge, extracts from an address by, regarding
510-515
List of, admitted to system to January 31,
1918
."....
92
Admitted to system, by months
16,
185, 294,408, 508, 609, 734,856, 966,1098,1196
Georgia laws relating to
978
Kentucky laws relating to
315, 526
Mississippi law relating to
315
New England membership
1081
New Jersey laws relating to
166
Number, capital stock, surplus, and total
resources, October 1, 1918..
964
Questions and answers relating to, made
up by Federal Reserve Bank of New
York
615-622
Stock of Federal Reserve Banks:
Calculation of dividends on, when surrendered. 201
Tax on dividends, ruling by Commissioner of
Internal Revenue relating to
614
Storage conditions for perishable products, chart
showing
404
Straits Settlements, banking operations of the National City Bank of New York in
946
Strauss, Hon. Albert, appointed as member of the
Federal Reserve 33oard and designated as vice
governor
1056
Subtreasuries, consolidation of, with Federal Reserve Banks, report on, by Bureau of Efficiency. 172-179
Sugar in bond, acceptance of drafts drawn against.. 520
Sunday, maturity of notes when falling due on
108
Sweden:
Bank of Sweden, statement showing condition
of
377
Condition of Swedish Riksbank
377,997
Exchange purchased and sold, first quarter
1918
835
Foreign exchange rates
379
Public debt of.....
376
Report on conditions affecting the status of
prices and capital issues
1091
Switzerland:
Banque Nationale Suisse, statement showing
condition of
389, 997
Exchange purchased and sold, first quarter 1918 835
Foreign exchange rates in
390
Public debt of
387
Tax:
Franchise, excess profits of Federal Reserve
Banks paid into United States Treasury as.. 6,12
Income, ruling of Treasury Department relating
to tax on deposits of nonresident aliens
163
Income and excess profits tax—
Deposits of public monevs in connection
with
\
494
Recommendations of Secretary of Treasury
to chairman of Ways and Means Committee relating to
600-602, 847-852
Stamp—
Draft payable on arrival or on demand after
arrival of goods subject to
31
On drafts in connection with shipments of
goods to Allied Purchasing Commission,
ruling by Commissioner of Internal
Revenue regarding
614,972,1218




1269

Tax—Continued.
Stamp—Continued.
On negotiable instruments, decision of
Commissioner of Internal Revenue relating to
316
On telegraph, telephone, and express.
charges
1215
Parcel-post packages, ruling of Commissioner of Internal Revenue
17
Promissory notes, renewals of, ruling by
Commissioner of Internal Revenue regarding
977
Trade acceptances, ruling by Commissioner
of Internal Revenue
977
Tiling and draining farm land, eligibility for rediscount of notes used for
743
Time deposits, 30 days' notice to be given before
withdrawal, to comply with regulations of the
Board
199
Total bank transactions:
Plan for obtaining reports on
821-828
Weekly figures of clearing-house bank debits
to deposit account.. 1002-1004,1103-1106,1206-1209
Tractors, eligijility of, notes given in payment of,
for rediscount
309
Trade acceptances. (See Acceptances, trade.)
Tracing with the enemy, statements issued by the
War Trade Board relative to
87,171,365
Treasury certificates of indebtedness:
Amounts held by member banks
1109-1113
Amounts subscribed to the issues of, preceding
the third Liberty loan.
558
Amounts subscribed to the issues of, preceding
the fourth Liberty loan
921, iO45,1147
Distribution of, in anticipation of third Liberty
loan
359
Holdings by the banks, as shown by report prepared by Jacob H. Hollander of the Johns
Hopkins University
845-847
Issues of
4, 71,153,161, 250, 359,366,
485, 518, 688, 699, 801, 951
Letter of Secretary of Treasury to all banks regarding issues of, in anticipation of fourth
Liberty loan
*
612
Provision in bond act subjecting notes secured
by, to limitations imposed under section
5200, R. S
1055
Savings banks, purchases by
953
Statem ent sho wing subscriptions, by districts.. 366
Subscribers to, number of
1147
Treasury Department, joint action with Department of Agriculture relating to loans to farmers.. 829
Treasury of the United States, excess profits of
Federal Reserve Banks paid into, as a franchise
tax
6,12
Trust companies admitted to the system. (See
State banks and trust companies.)
Trust powers. (See Fiduciary powers.)
Trustee, executor, etc. (See Fiduciary powers.)
Union Discount Corporation, organization of, for
financing cotton
930,939
Union of South Africa, war debt of
274
United States bonds, amounts held by Federal
Reserve Banks, statements showing
57,
141,233, 346,467, 558, 672, 781, 901,1029,1144
(See also Liberty bonds.)
United States, war debt of
278
Uruguay, banking operations of the National City
Bank of New York in
944
Venezuela, banking operations of the Mercantile
Bank of the Americas in
737

1270

INDEX TO VOLUME 4.

War:
Page.
Aiter-the-war problems—
Report of Lord Cunliffe's committee to Parliament in connection with currency and
foreign exchanges during the period of
reconstruction
1178-1192
Study on " Economic reconstruction— '
Analysis of main tendencies in the
principal belligerent countries of Europe," prepared by the Department of
Commerce
1086-1088
War expenditures, war debts, and note circulation
of principal countries
267-285,375-394,1057-1077
War Finance Corporation:
Act creating
95-98,300-306,364
Canners, financial assistance rendered to
831
Conditions under which paper collateraled by
obligations of, may be discounted
251
Financial assistance rendered to farmers and
cattlemen
m 691,808, 828-832, 950
Members of, nominated by President
364
Quarterly report of
1081
Statement issued by, as to operations of
496
Statements of Secretary of the Treasury regarding organization of
74,157
War Industries Board:
Preference list of industries and plants compiled by, in connection with conservation
program
931-934
Ruling relative to curtailment of consumption
of iron and steel by the agricultural implement industry
1090
Statement by, relative to curtailment of less
essential productive activities
1078
War revenue legislation
497, 600, 847,926
(See also Acts, Liberty bond.)
War savings stamps:
Agencies for sale of, circular of Treasury Department regarding
87
Forms for use in reporting sales of
89
n92
New series of
;---.-;
-.
Paper secured by, eligibility of, for rediscount. 637
Statement of John S. Drum on relation of
Liberty loan to war savings stamp plan
164




,"*>„
••.,,<••

War Trade Board:
Page.
Rules for obtaining export licenses
1089
Statements issued by
87,171,365
License to collect securities of alien enemies
in France and Great Britain
365
Warburg, Hon. P.M.:
Extract from address by, relating to trade
acceptances
604
Retirement of, as member of the Board
809,816
Correspondence with the President regarding...
816
Resolutions passed by Board on
810
Warehouse Act, situation as to cotton loans under,
as stated by R. L. Nixon, of the Department of
Agriculture
1094-1098
Warehouse, chart issued by Department of Agriculture showing suitable conditions for storage in 404
Warehouse receipts:
Canned goods as security, eligibility as acceptance
634
Corporation issuing, must be organized in good
faith
31
Custody of
971
Notes secured by, eligibility of, for rediscount 634,862
Receipt of custodian of wool may be re^-nrded as 636
Trade acceptances secured by
862
Warrants, municipal, amounts purchased and held
by Federal Reserve Banks, distributed by maturities
55,
56,139,140,231,232,343,464,555,669,779,899,1026,1247
West Indies, banking operations of the National City
Bank of New York in
944
Wheat, guaranteed j)rice of, suggestions of Food
Administrator relative to
1088
Wholesale prices, index numbers of.. 1005-1015,1100-1103
Plan for publishing
810
Williams, Hon. J. S., designated as member of
Capital Issues Committee
364
Willis, H. P., retirement of, as secretary of the Board 817
Wilson^Rufus R., secretary of National Association
of Cotton Manufacturers, article byt on use of
acceptances in financing cotton crop

713

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